Let That Debt Go!

Posted on June 23, 2020 by Yoye

“The decision to go into debt alters the course condition of your life. You no longer own it. You are owned.” - Dave Ramsey

Growing up, I distinctly remember having a lot until we didn’t. Then not having much was our norm. Let’s just say I preferred the former better than the latter. This is all in hindsight because my parents and extended family made sure we had ample fun, laughs, and sit-down conversations with us as children to where it didn’t seem as if we were poor.

I have witnessed my immigrant parents work double shifts, my aunt go to school in this country to earn a degree she already had in her home country (to provide a decent life for her family), and watch my retired grandmother take care of all of her grandchildren and hustle (babysit and be the neighborhood candy lady). All of this work could have been building blocks to prepare my parents for a good retirement and set us up for a good future. But, even though they had good intentions and were successful in acquiring property of their own and weren’t lifetime renters- they were not on the same page, which led to many issues with how their money and future financial planning.

For example, my father always had a plan and worked very hard at his day job and his business. But people always had their hand out for help and he would always fall to his sentiments. After all, we as a family made it as far as we did based on the cultural ideal of L’Union fait la Force, which means with unity we are strong or powerful. Though we advanced through this sense of unity and duty, it often hurt us more. I’ve never wanted to experience the harsh and painful lessons my father did.

My mother was a very hard worker but she was a big spender and never seemed to have a plan. When she ran out of money, she would always borrow from other people and did not care if she paid them back. My sister and I were always pressured into lying for her when people came to collect their money. I also never wanted to experience that as an adult.

These experiences led me to my personal plan of financial stability.

“Every time you borrow money, you’re robbing your future self.”

-Nathan W. Morris

Here are my personal tips:

1. When family and friends call you to complain about their financial problems in hopes of you handing over your money, complain about your financial problems when they are done.

2. Only give what you can afford to not receive back. This will help save relationships with people if they cannot pay you back when expected.

3. Save in good and bad times. Emergencies and random expenses are always around the corner.

4. Open an online account that yields a high interest.

5. Live below your means if possible.

6. Consider community college and state universities (with scholarships and grants) to avoid unnecessary debt.

7. Get life insurance.

8. Learn about finances (Dave Ramsey, Stock/Bonds, and real estate/IUL accounts)

9. Go to your bank and send a percentage of your money to an account that you cannot access until a certain date.

10. Always ask about the interest rate if you are borrowing.

“If I can never depend on your help financially, don’t come ask me for my help.”

-Yoye

These strategies have worked for me so far, but I have asked a few friends of mine that have done well for themselves financially to give you more ways to use your money as a tool to build your wealth. Below you have tips from Junia Fleurantin. She has managed to achieve her wants and secure her needs through these strategies:

Financial peace from Junia Fleurantin (Teacher):

1. Honor God: Pay tithe and offering (don’t worry about what happens to the money because God will honor you; think of how you pay car insurance every month just in case you get in an accident, but with God there’s no just in case, He’s faithful and will honor you)!

2. Pay off debt/snowball if possible

3. Don’t carry a balance on a credit card (will accrue unnecessary interest)

4. Have a savings (save a lump sum a month as you are able; start small at $250- $500 a month)

5. Budget to zero: give every cent a place to go

6. Meal Prep: budget to eat out once a month; will save a lot of money that you can save or help to snowball debt

7. Celebrate accomplishments by rewarding yourself small.

8. Budget wisely: in your means (don’t do anything to please someone out of your means; IT’S OK TO SAY NO!!!!)

9. Delayed GRATIFICATION because nothing done impulsively is not worth it !

10. You reap more than you sow SO spend wisely

11. When budgeting, budget higher (if monthly bills are $1,200 total, budget $1,500 total monthly if possible ($300 cushion for unexpected emergencies (no need to scratch the head if it happens; it’s already there).

12. ***During COVID**** Use the money that you would use to pay loans in forbearance to pay toward navient (if applicable).

13. Call your energy provider and ask for budget billing. Since we are in Florida, we use Florida Power and Light (FPL) Budget Bill and the Energy Analyzer.

“Pay God, Pay yourself, owe nobody, then budget to 0”

-Junia Fleurantin

Tips from Ezra Dieuveille (Insurance Agent/Business Owner)

1. "Forgive Yourself." Most people are afraid to build their finances because of the past mistakes or shortcomings they experienced. But one thing that we need to know is that even millionaires and billionaires can tell you so many mistakes that they have made financially but it did not stop them from continuing on. So let go of what may have happened in the past and use them as life lessons and not life shackles.

2. "It's a brain game." Finances are more just being good with numbers, it's about building better spending habits majority of the time. Find a way to make saving money fun. If you save one thousand dollars then the next hundred use it for a spa day or take yourself out. Find ways to save and then enjoy a little. Your brain will start being trained to enjoy saving because there will be a reward at the end.

3. "Learn from professionals." What do LeBron James, Michael Jordan, Shaq, Tom Brady, and Dion Sanders have in common? Besides that they are athletes, what they had in common is that they had a coach. No matter how good you are, you can be better. You can learn more. Sit down with a professional to discuss how to diversify your financial portfolio. For example, did you know that keeping all of your money in a checking or regular savings account loses you money? Are you scratching your head in disbelief? Well it's true. It's called inflation. As the value of money decreases your money sitting in a regular savings account does not adjust with the rate of inflation, hence your five thousand dollars is no longer worth it as prices go up. Sitting with a professional, you will learn that you want to put most of your money in a money market account or mutual fund so your money grows as prices increase.

"Forgive Yourself."

Ezra Dieuveille

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