It is rather odd how a conversation on money would be going on very well until you mention the taboo words – Salary, debt, Credit score and savings. If you try to delve deeper, people will now have excuses…. Oh, I am sorry guys, it’s already 5pm and I have a book club meeting….I just received an urgent message from my mom, I’ve got to go…Oh my! I have just remembered that I left my kitchen tap open, my kitchen must be flooded, see you guys…
Those that are brave enough to remain and go on with the conversation may be the few that have a six or seven figure salary, those that have financial freedom, those that have deep insight into these financial terms or those that will always lie about their figures 😉
Well, I have to admit that it wasn’t easy for me at first. I had all sorts of bad debts, very low credit score, meagre salary and to add salt to injury no form of savings at all…. That was so reckless of me 😦 Anyway, thanks to the financial insight I have now, I can now proudly have a healthy conversation on these taboo topics.
This doesn’t mean that I have reached the highest heights of financial freedom but I believe I am going up the ladder with each small but cautious step.
I want to share with you reasons why you need to open up and talk about these dreaded finance topics that are unwillingly spoken about. I believe that you can learn from my past mistakes and make better financial decisions.
1.Live within your means
Sweetie, you do not have to keep up with the Kardashians. You should cut your coat according to your cloth. I was in a group of female colleagues with whom we would go for a cup of coffee together after job and another friend of ours owned a clothes shop. As we passed by to say hi she would always mention of this new arrival of jackets, jeans, office wear, shoes etc and my wealthy colleagues would quickly jump in excitement to fit their sizes. Of course, I wouldn’t want to be left behind and look poor. This was out of my budget but anyway, I would brush off this guilty feeling of going out of the budget. And then came that statement from a colleague… Hey gal, you have worked yourself to be bone, you deserve to reward yourself gal!!!.. That statement always knocked out the senses out of me immediately and I would find myself asking for three pairs of a type of a shoe in three different colours.
Often, I would try to make impressions by paying coffee for these wealthy colleagues just to fit in. That was stupid, right? It’s important, not just in finance, but in life, to be who you are and the world will adjust to fit into your lifestyle.
2. Ask for directions from people who have been to where you want to go.
By that I mean, seek financial advice from people who have sound and professional advice on financial investment.
Family and friends may always be available to offer advice and will always be there for you in every step of the way. They are your support system but they may not have much insight on the financial investment you seeking to undertake.
People who have made it in the field you trying to venture into may be of great value here because they will share with you the hurdles they found on their way to success and will advise you on how to go about them.
During those days of bad financial decisions of my life, I sought advice from friends whom I had believed had knowledge in investing. But baby, I was wrong. I invested in a businesses that not only collapsed but left me deep into debt.
To avoid shying away from these finance topics seek financial advice from professionals and you will not lie about your loans.
3. Don’t put all your eggs in one basket.
I don’t know whether this idiom fits as a good heading for what I am trying to put across here….. Anyway, all I am trying to say is, if you are always shying from talking about your income them it’s time you sought one or more other manageable side hustles to make an extra income… When time comes, you will be talking of your salary with more confidence and contentment. It’s going to be a bigger figure…..like a six or seven figure 🙂 Yeah, more baskets (jobs)…. More income(eggs)
An extra income don’t hut anyone sweetie
4. How important is your credit score?
How many people or institutions trust that you pay money loaned to you back?
I was not aware of how crucial credit score was for my financial growth until I had made a total mess of my finances. I was in debt left, right and center. I had four credit cards, a car loan, salary loan and two more business loans. Without even telling you more, you all know that this was an indicator that I was hitting a dead end. What I had not learnt about the credit score was that a damaged credit score will do the following to you:
- It will limit your loan borrowing ability.
- Affects your mortgage interest rate
- It affects how much you pay for insurance as they assume that you may be as slippery as an eel.
- Affect the accessibility to rentals.
- When searching for jobs,they will ask for a clearance certificate from the Credit Reference Bureau.
- A credit company has the right to raise your interest rates if you have a poor credit history.
In a nutshell, with a bad credit score, you cannot borrow funds to invest, you may not have your dream job/salary and therefore little or no savings at all..
I have now worked my way up for a better score and I am on my way up.
5. Bite what you can chew
With the establishment of mobile lenders, people are tempted to borrow loans they cannot afford to pay.
I took mobile loans which I could not manage to pay because the timeline was too short and the interest was so dear.
When I look back the more I am convinced that I took the loans not because I really needed the money or I had a good repayment plan but I took then loans just because I was eligible to. What a a stupid way of handling money! It almost caused me a financial death. But I am wiser now. I qualify for many loans but I only borrow the money when I have an emergency and with a purpose to invest in something that will pay off.
6. Talk
Do not bottle things up…. talk! Through talking about your discontentment on your job, your debt, your savings or anything you feel you need to improve on, you may find a person or two who may give you a lead to a better job, a better saving method and much more. One may not understand how to help if they do not know what you are going through.
During that time when I was almost financially dead, I shied away from the said topics. I was jobless then. One day when I couldn’t take it anymore, I told one of my friends that I needed to talk to her about my situation. Amazingly, I came out of the conversation with a lead and the following day I walked to my new job with great confidence that my troubles were now going to end.
7. Save!
This is the only ticket! Of course not to heaven but to financial stability… to financial freedom. It’s not a common habit but if you only want to be safe , save!
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