I Swear We're Almost Done

Are you sick of me talking about our Dry January Credit Card Debt Challenge yet?! Next year, let’s call it DJCCDC for short. Or not. We have a little more than a week left in the month so let’s finish strong and move on to even more financial fun*

*fun might be a strong word?

Let’s wrap this Dry January Debt Challenge with a quick recap and next steps. Remember, just because we focused on paying down credit card debt in January doesn’t mean we completely abandon the journey in February. Stick with it! You can do it!

If you’ve been working on paying your down debt, send me a note to tell me about your progress! I want to hear about it and cheer for you!

Here’s our foolproof process for paying down credit card debt:

1. Take inventory of your debts (week 1)

2. Choose either the avalanche or snowball method (week 2)

3. Track your spending (also week 2)

4. Automate as much as possible (week 3)

Now that we’ve laid the foundation, let’s talk about carrying this process forward. This isn’t rocket science, folks. I actually know a rocket scientist and the sh*t they do on a daily basis is WAY more complicated. Yes, there’s some legwork at the beginning. Once you get to step four and you’re automating your finances, the only thing standing in the way of you and reaching your debt-free goals (and all other financial goals)…is you.

So what separates those who reach their goals and those who don’t? Consistency. Patience. Stoicism.

Hear me out…

Building great financial habits, and thus a robust balance sheet, takes time. Not days, weeks, or months — it takes years, decades. You must set yourself up for success (automate to prevent self-sabotage!) and then make the choice to build in a positive direction every single day. Consistency!

All great things take time. Which is why human pregnancy lasts approximately 8 billion years. I’m currently 28.5 weeks pregnant, but it feels like 8 billion years. There are no get rich quick schemes here. Wealth building, like growing a small human potato, is a process. If you don’t practice patience you’re far more likely to react to short-term headlines and make impulsive choices (hello, Amazon purchase I made at 2am last night). Paying off debt, and then staying out of debt, takes time and commitment. Be patient with the process. Be patient with yourself. Go get yourself a popsicle. Oh sorry, that one is just for the super pregnant people.

Stoicism is underrated. If you’re unfamiliar with the concept, essentially stoicism calls for us to focus only on what we can control, to make the best of the cards we are dealt, to be mindful, and practice self-control. All things this 28.5 week pregnant woman currently cannot do. I blame the hormones. These traits, however, are crucial when pursuing better money habits. Focus on you and your habits - not on news headlines, not on politics, not on what others are doing/saying/promoting.

Money is so tied to our experience as a human, we can’t help but apply our emotions to it (rational or not). So my advice to you as you pay off debt and begin pursuing other financial goals is to take baby steps. You’re going to have to make changes to the way you think about money, relate to money, and tactically manage it. To make the changes sustainable, you have to break it down into baby steps. Trying to eat this elephant in one bite will surely discourage and overwhelm you and you’ll be back at square one with no lasting improvements. Baby steps, babyyy!!! Also, at 28 weeks pregnant, I do feel like I could eat an entire elephant, but alas, that’s neither here nor there.

Finally, if you’re struggling with overspending, impulse buying, making choices that are self-sabotaging your financial future, etc. There’s likely a deeper underlying cause and I highly encourage you to seek help from a professional. Ain’t no shame in the therapy game. There are very qualified financial therapists out there who can help you work through these issues. There are better days ahead for you, all it takes is a bit of action on your part.

Ew, this post was way too sincere and not enough funny. I apologize, it won’t happen again!!

Things you should know this week:

1. Starting next week we’re going to focus on all things INDEX FUNDS! What are they? How do I invest in them? What do I need to know about these lil beauties? If you have questions ahead of time, let me know and I’ll try to address them over the next few weeks!

2. I started reading Scott Galloway’s The Algebra of Wealth. Great read, I really enjoy his work (I’ve probably mentioned him in every newsletter thus far).

3. To reiterate a lot of what we talked about today, watch this great video featuring Mel Robbins and Tiffany Aliche (The Budgetnista).

4. Lastly, since we’re going to learn about index funds, a great Instagram account to check out is Personal Finance Club. Jeremy is awesome and you will learn a lot from his posts.

I love to love ya - talk to you next week. Send my husband positive vibes as I enter the 3rd trimester and fully go into psychotic nesting mode.

-Catie