Financial Freedom as a Single

Your singleness is the time to do for you right? To buy that new fragrance or shirt. To travel the world as much as you can. To start something, work on something, or finish something. No matter what you do as a single, money is somehow involved. 

This season of my life, in the year 2023, I made a declaration that I want to live financially free. Financial freedom can mean so many different things to many different people. For me personally, it means no debt [excluding student loan debt because let’s face it, that is a very common, well known debt to millions across the country] and budgeting more. Credit card debt is avoidable if you are wise and knowledgeable in how you handle your money. 

Growing up, I learned 2 different sides of money. On one hand, it is more than okay to take that vacation and/or buy what it is that you want whenever you want it many times because YOLO (You Only Live Once) and you work hard so why not? On the other hand, if you don’t have it, don’t do it. It is better to pay off your credit cards even if it means sacrificing a vacation or forgoing that much needed hang out with friends. If you have to pick up an extra job or work the summertime [if you work in the school system], then do so because you don’t ever want to have outstanding bills or statements. The former can improve overall mental health because it allows you to treat yourself, however, can cause financial stress later on if you do not budget well. The latter frees you from overall debt, however can take the fun out of life because you are constantly working to make ends meet. [I am providing 2 pretty extreme scenarios so that you get my point.] Now that you are dealt these 2 hands, which hand do you take from?

Since I began my career at 24 years old, I would say that I was always financially stressed even though God has helped me to pay my monthly rent on time and I was able to pay off every credit card bill in full when the statement came. My relationship with money was stressful because I never wanted to be without. Even after tithing, I still found it difficult to be content in life because I was always worrying if I had enough EVEN THOUGH God found a way to make sure I had more than enough. My lack of faith and trust in God when it came to money has always been a battle up until this very point in my life.

Since the beginning of February, I have been seeking God on how to become financially healthy and still live a content life. I want to budget more and that is my goal. I do not want to be “stingy” with my money nor do I want to constantly look at my finances to see if I can afford this or that because who wants to live like that? More times than not, I buy things that I want, not necessarily need. While that is okay every now and then, the road to budgeting involves focusing more on your needs than your wants. Whether your credit card debt total is $400, $5,000, 0r $45,000, I believe that with God’s help, wisdom, and knowledge, you can become financially healthy no matter what your debt is.

I also believe that God does not place people in your life by accident. God has definitely heard my prayers because He began to answer in ways that I would have never thought of. One day at work, I was talking to a colleague about a case in their office and another colleague came in. We were all talking about my case and a few other cases that we mutually shared. At one point, I do not remember how but the conversation turned to money but I openly asked, “What is the best way to manage your credit cards because I get mixed answers? Do you pay the minimum when the statement comes at the end of the period? Because I heard that that is how you build good credit. Or do you pay your bill in full? What will help increase and stabilize your credit score?” One colleague instantly jumped in and gave such an insightful answer. My colleague stated [paraphrased], “My brother is an accountant and I would seek him for financial advice. The best thing to do is to not have credit card balances and if you do use your credit card, pay it off completely when the statement comes. Many times, I would use cash instead of my credit card which helps me to see how much I can spend. During COVID, I did not use any of my credit cards. They all had zero balances. When we were back in the schools and COVID was getting under control, I checked my credit score, and it had jumped significantly. And you remember Ali that that was the time that my family and I bought a house.” The conversation continued but I walked away with the keypoint that no credit card balance is the best thing to have for financial freedom and positive growth in your credit score. If you can use cash more or if you are disciplined in using your credit card but not racking up a high balance, you are in good standing. 

Furthermore, I have a close friend, Cici, who works at a financial firm remotely that helps clients make wise financial choices. She knows all about investments, savings, insurances, retirement, debt management, and so much more. I went by her house the other night to hang out and I gained even more knowledge about financial freedom. [Why pay for financial advisors when you have someone in your circle if you just ask around?!] After a 4-5 hour long conversation with her and her brother, who is also a financial wiz as I like to call him, I learned so many keypoints. One thing that Cici asked me was, “What are my short-term and long-term goals when it comes to money?” Short-term: pay off all credit card debt. Long-term: travel 1-2x/year. And that is a question that you should ask yourself as you begin the journey to financial freedom.

Being financially free can be an overwhelming and daunting task especially if you are struggling a lot financially. However, I want to share with you some tips:

1. My number one advice that my mom gave me that my mentor had also given me years ago is to involve God. Don’t leave Him out of it. Ask Him for wisdom. Ask Him for help. Pay your tithes and offerings. Giving back to God pleases Him more than anything else. There are so many scriptures in the Bible that talk about tithing. Leviticus 27:30 tells us, “A tithe of everything from the land, whether grain from the soil or fruit from the trees, belongs to the Lord; it is holy to the Lord.” Proverbs 3:9 tells us, “Honor the Lord with your wealth, with the firstfruits of all your crops.” This is the biggest and best way to achieve financial freedom. Even though that $300 could be used to finish paying off that $300 credit card balance, tithe first. God will multiply everything that you give back to Him, good measure, pressed down, shaken together, and runneth over in Jesus Name (Luke 6:38)!
2. Work on paying off all credit card debt. You can start by tackling the credit card with the lowest balance or the one with the highest balance. Me personally? I go for the one with the lowest balance and focus on that. I know that I can pay it off in no time which would bring great satisfaction when I see a zero balance. There are times where I have focused on the highest balance credit card. I would not put any charges on that credit card and put the charges, if I must, on the credit card with the lowest balance, and focus on clearing the high balanced one. As I put charges on the lowest balance credit card, I do monitor the account so that I am able to pay off that credit card when the statement comes. I may even use cash. Either way, it depends on your preference. You should not focus on all your credit cards all at once because it will be overwhelming. But hey, if you can handle it, go for it!
   1. Check to see if your credit card has “grace” periods when it comes to interest rates. Some may say that we won’t charge any interest for 15 months and that can be so helpful. It’s the interest that really increases your debt!
3. Having a savings account is truly up to you. My mom had one but barely kept money in it [only the minimum] and never encouraged it. However, my dad did and always encouraged it. So, it truly is personal preference. 
   1. You can enroll in automatic deposits from your checking account into your savings account if you decide to open up a savings. You can set up how much they take out, when they take it out, and how often per month. Telling yourself, “Oh, I’ll put in $15/month” would not work unless you are very disciplined. 
   2. You can use a bank or a credit union (or both) to open up a savings account. Research first!
   3. With your savings, know what it is for. Is it for your monthly extracurricular fees? Is it for when you want to hang out with friends? Is it for vacationing? Is it for buying gifts when the holidays come around? Is it for buying a car/house?
      1. I do want a Vacation savings account so that is also in the works for this year so I know that that is the only money I have to travel. If there is no money in it [because I keep taking money out to pay my bills for example], then that means I cannot travel!
   4. I want to remind you that with every savings account, you do not have to go broke. You can put as little as $5.00 every paycheck or every month. Start small if you must and do not touch the money unless it is being spent for what it was originally meant for! As you make more money, you can increase how much you put into your savings. 
4. If you use your credit card, make sure you can pay it off in full. Best practice as I am learning from my mom is as soon as you put a charge on your credit card, you are more than welcome to pay it off in full right there and then. You do not need to wait until the statement arrives.
5. If you do use your credit card for a big purchase (e.g. a car, a washer/dryer, a refrigerator), try not to add on any other charges, and pay it off little by little. 

Take a moment to sit and think about all of your expenses. Create a plan. Write it all down. And most importantly, be patient on the journey. 

Remember, it is NOT about how much you make but HOW you use your money. Do you know that the richest people have gone bankrupt? Check the internet and you will see. You can be making in the $30k, $40k, $50k, or $60k range and that is very little money when you think about how much things cost nowadays like groceries, rent, gas, etc. But with the help of God, you can be credit card debt free, not go broke, and still live a full, abundant life! 

Becoming financially healthy is not an overnight process. It takes a lot of discipline, sacrifice, prayer, and knowledge. You are going to make mistakes but do not let that stop you from getting back up. 

PLEASE NOTE THAT I AM NOT A FINANCIAL ADVISOR IN ANY WAY. THIS BLOG IS SOLELY BASED ON CONVERSATIONS. WHAT I SHARE WITH YOU MAY OR MAY NOT WORK FOR YOU. I STILL HAVE A LOT TO LEARN BUT I AM WILLING TO PUT IN THAT WORK TO BECOME FINANCIALLY HEALTHY. 

IF YOU HAVE OTHER WAYS TOWARDS FINANCIAL FREEDOM, LET ME KNOW IN THE COMMENTS BELOW!

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