In an experience thousands of Americans have shared, Tiffany Aliche watched herself go from financially secure to broke and deeply in debt in a matter of weeks. What she did in response has served as a roadmap for women across the country.
Aliche took control of her own financial future and used what she learned to create a set of ten principles that have proved invaluable for more than a million women. In her book, she outlines her principles, explains the fundamentals of budgeting, and provides a blueprint for getting “richish.”
Rethink Money and Success
As we’ve seen over the past two years, professional and financial stability can vanish in a heartbeat. The question then becomes what to do when the worst-case scenario happens?
Aliche spotlights becoming “financially whole” as the goal and demonstrates how the way you think about your finances can have a dramatic impact on how quickly you’re able to rebuild.
According to Aliche, being financially whole equals the ability to not worry about unexpected financial disasters. It means your finances are all working in sync for you - not the other way around.
For many, thinking or talking about money inspires feelings of anxiety and shame -- especially for women. Aliche claims you can overcome these feelings by implementing a few basic practices.
Budget Like a Pro
Your budget is the foundation of your financial freedom. Taking the time to create and manage a strategic budget gives you the power to say yes to life (vacations, purchases, and more).
According to Aliche, budget is verb -- an action. She explains that too many think of their budget as a stagnant list that lives somewhere in their filing cabinet. Money masters realize that budgeting requires you to track input and output every month -- in the most specific manner possible.
According to Aliche, effective budgeting is a process.
There it is. Your foundation for financial freedom.
Embrace Your Inner Squirrel
Squirrels are known savers - it’s almost instinctual. They copiously gather and save acorns during acorn season to ensure that, come winter, there is plenty of food to eat. As they collect their acorns, they dig holes and plant them. As the weather cools and winter settles in, they calmly take to their dens and feast on the acorns they’ve collected over the past months. Smart savers survive the winter. Those who haven’t mastered the skill struggle.
Taking ownership of your finances is not much different. Rather than spending money as it comes in (splurging), embrace your inner squirrel and save it for a “rainy day.”
Once you’ve gotten fairly good at saving, shift the way you save. Go from saving money now so you can spend money later to saving money now so you can make money later (either through investments or by using your savings as a safety net during emergencies).
Save Strategically
Now it’s time to start actually setting aside money for each of your savings accounts.