So as you may remember, I successfully completed a No Spend Year for 2019 with only purchasing sunglasses and nail polish off my banned items list. It was so effective in resetting my financial values, that I decided a second year would be an amazing idea.
So here we are, just about five months in, and I am wanted to give an update. Almost 18 months without buying any clothes, shoes, accessories, makeup or haircuts/dye has been life changing for me and really helped me better understand what I truly value. I’ve noticed something else lately though. Things are different today compared to my decision in January to sign up for another year of this. To be honest, I think this is one of the best things I’m seeing come out of this whole pandemic stuck in your house for the rest of time thing. It seems people I never would have imagined have stopped buying stuff and things. I’m seeing people not wearing makeup and also am starting to see the home haircuts and dye job pics showing up in my social media feeds. While I’ve been doing all of that for a while now, I get that my No Spend Challenge was a choice and others have had the choice made for them. With stores and hair salons being shut and stay at home orders put in place it’s forced people to not buy these items or services, but I’m thinking and hoping there may be some changed people after all of this is over.
So I think now would be a great time to declare a No Spend Challenge in your own life through the rest of 2020. Especially since there’s still so many uncertainties with how long all of this will last, may as well set a goal to see how long you can not spend money on certain items and what you can do with that money instead. You may also find that cutting your own hair isn’t so bad, maybe even rewarding, and I bet nobody has left your house and never returned over seeing you without makeup. Also, the clothes you have are getting a break right now, so they will be like brand new clothes once you get out of those pajamas when this is all over. Who all has changed their spending habits during the past month already?! Who’s ready to commit to doing it for the rest of the year?!
Man..it’s crazy to me that it’s 2020 and there are still folks running around rogue with their finances, thinking it’s not going to catch up with them. Several recent studies show that only about 40% of people are living that budget life. 😱
I have personally been living with a budget for over a decade, and I can promise you that this is one of, if not the biggest contributing factor to my current debt free and wealth building chapter of my life. I would definitely still be living beyond my means without a budget.
There is no better time then right now to put the money you make to work..and that money isn’t going to get to work without your help. So do me a favor, and if you are in the 60% of people who don’t currently budget, then make a pinky swear to yourself to start ASAP…after reading my quick tips of course. 😉
Tip 1-Live off of a zero budget. That’s a fancy way of saying that every single penny you have incoming should have a home for where it needs to go. The key to this is to assign your money jobs BEFORE you’re eyeballing that delivery menu on an empty stomach or you’re clicking on that BOGO sales ad that just landed in your inbox. So a few days before the month starts, you can sit down and map out your incoming vs outgoing. Mind that gap with some investing and savings. Which brings me to my next point.
Tip 2-Have a goal you are working towards. Whether it’s building your savings up, paying off debt, or investing in index funds to work towards financial freedom..you will be more successful minding the gap if you have short term and long term financial goals in place. Don’t let lack of planning cause you to live with a YOLO mentality..it’s true..you only live once..so get your shit together already. Nobody wants to keep hearing your “I’m broke and just barely getting by because they don’t pay me enough” talk, yet you’re driving a new car, eating out, constantly getting new clothes/AmazonPrime packages and texting your money problems on the latest IPhone. (sorry for being a little harsh..but seriously..someone had to say it)
Tip 3-Speaking of planning..plan for the unexpected. I’m talking about having enough in your savings to cover a bigger item, like a new transmission, your HVAC suddenly breaking down, your car insurance deductible from an accident, or taking your dog to the vet after they ate something crazy again. I don’t have time to get into details here on what’s considered unexpected, but if you have to ask if it’s an emergency..it’s not. Also, stuff that is recurring, like personal property taxes or Christmas gifts are NOT unexpected. You knew all damn year they were coming up..you should have separate money you’re putting back to plan for these annual recurring expenses.
Tip 4-Check for trends and opportunities. For example, if you are noticing a large chunk of your money is going towards gas, then it might be time to explore a more fuel efficient ride. If you are spending over $100 each time you hit up Target, then it might be time to keep your ass out the store. Luckily, there are other ways to shop now, including carryout or delivery, so that could possibly help keep you to the items you need vs want. Also, if you find yourself doing a great job, like going two weeks without eating out..then celebrate. Rewarding yourself (within reason) for good behavior is a great way to train yourself on new spending habits.
Tip 5-Give yourself a cash allowance. Let’s be honest..little things come up and having some cash on hand is a great way to take care of these little things. For example, if you slept like crap and really NEED a Starbucks latte..go get yourself one. Or the neighbor kid hits you up for buying some Girl Scout cookies, and nobody can say no to those Caramel Delights, nor should they say no. Much like crash diets, budgets don’t work if they are so strict that you feel deprived, week after week, month after month. This will make you more likely to fall off the budgeting bandwagon, so plan to allow a little flexibility sometimes.
Tip 6-Make it easy. Budgeting is a long term wealth building strategy..not a get rich quick scheme..remember that as you set things up. Keep it simple and keep evolving as you and your needs change. Setting up autopay on everything is about as easy as it gets for your fixed expenses. Also, for tracking, I used a paper check register up until last year..lol. BUT it was easy and worked for me. Now I have a word doc that lists out all my recurring expenses, along with an app called Spending that tracks all incoming/outgoing expenses. Don’t get so caught up in trying to figure out the details to a point where you don’t ever start. Any way you track is better than not tracking at all..so get to it already.
You know I am happy to share my tracker if interested and answer questions, so ask away.
Because I mean..what’s better than a full damn year of doing a No Spend?! I can’t think of anything except for doing it for a second year in a row!!
Yes you read that right..another No Spend Year for 2020!! If you’ve been busy shopping at the latest BOGO sale or living that AmazonPrime “what’s in this new box” lifestyle, then you may have missed my multiple posts about not buying certain things for all of 2019, along with my updates and all the ups and downs of the journey. I encourage you to look back at my previous No Spend posts to catch up, but I will also summarize here.
I banned buying any of the following items for all of 2019:
Clothes, shoes, accessories, purses, makeup, haircuts/dye/waxing (undergarments and socks can be replaced as needed). I think I added household decor items to my banned list, but I hate throw pillows anyway, so I don’t really need to ban them..lol.
I DID fail and buy a pair of sunglasses, along with a new nail polish, so I wasn’t 100% successful, but I have come a LONG way from who I was before my No Spend Year. I will take the under $15 total for the year versus the $3,000-$4,000 total I was likely spending before per year. It’s also changing my lifetime expenses, which the average woman now spends around half a million dollars in their lifetime on vanity items. 😳 (more to come in a future post on this topic)
I have to say, I was certain I would die when I started this. Well, if you haven’t picked up on it from the fact I’m writing this..I actually did not die. I in fact LIVED..lived like I never have before..completely free of others opinions about my same old clothes, about my hair showing grey or being “slightly” uneven from cutting it myself, or showing my makeup free wrinkly face for a year straight. Damn that shit was freeing and turns out most people didn’t even care or notice the clothes or makeup free face, or at least they didn’t say anything. Now the hair, people had very strong opinions either supporting me and saying they do their own hair also, or telling me to leave it to the professionals. Overall, it wasn’t as drastic of a change for me to ban these items as I anticipated.
I really haven’t lost anything except for the weight of worrying what others might think..and turns out I really don’t give a shit, which honestly surprised me a little (keeping it real..after 35 years of caring to some extent about impressing others, it’s been a big change). What I gained was a LOT..more money in my account, more time since I am no longer shopping or putting makeup on every morning, and a lot of inner reflection on my values and getting comfortable in my own skin. I can truly say that I have never felt prettier or happier with who I am and what I look like, inside and out.
I encourage everyone to try a No Spend, even if it’s for one day or week or even a month. If you can commit for a year, I promise it will change you as a person. One of the joys of a No Spend is that you get to customize it to fit your life and determine your own banned items list. Also, I have a ton of quick tips that helped me and can help you also. First, stay out of the stores all together and keep emails about deals out of your inbox by hitting that unsubscribe button. Clean out your closet to donate unworn items and organize it so you can easily find the items you do love to wear. Take care of your appearance in other ways..drink more water, eat a healthier diet, exercise, and stop damaging your hair with heat and product and let it dry naturally and embrace whatever your natural appearance is. I fought my wavy brown hair for years trying to straighten it, curl it, make it blonder, etc. and turns out my natural hair is pretty awesome once I stopped damaging it. Find friends to swap clothes with for those times you get bored or have an event and nothing to wear. Find a friend or two to join you and help keep you accountable. Learn to fall in love with yourself and embrace your flaws as perfect imperfections rather than trying to cover them up. Finally, make a goal of what you will do with the money you save and put it towards making a big dream a reality and share your progress.
Now I just need to know..who is ready to join me this year?!
There will be a whole 365 days in 2019 for us to have set goals, have taken action, worked hard, and to have crushed those goals. Year end is a great time to throw modesty out the door and recognize how great your year was and how awesome you are for all that was accomplished. If you did the work, then I don’t care who you are, you deserve to celebrate, so go on..brush your shoulders off.
If you instead stayed on the couch all year again, and your biggest accomplishment was only gaining 10 lbs from all the junk you ate while binge watching all the Netflix original series..well then..might be good to reflect on that also. Still playing the “victim of your situation” game and convincing yourself that you can’t change or grow because “insert your excuse here”. Did that binge or pity party help you or hurt you?
Not trying to brag below I promise you..just trying to prove that you CAN do big things if you set big goals and are ready to take action and put in the work. You can and should think differently about life and the pursuit of happiness..question things and don’t just do what everyone else is doing because it’s easy. Also, I’m sharing some stuff that makes me feel vulnerable and gives a private look into some events in my life over the past year.
If you’re not ready to grow and celebrate success, then please stop reading this and head back to your latest Netflix binge. If you are ready, but not sure where to start, start by grabbing a pen and paper and write down everything you accomplished this year that makes you feel proud to tell others and makes you feel like you have grown as a person. Then go share it with the world!!
See my list below: My 2019 Accomplishments
Started MySemiBasicLife.com blog and InstaGram account
Grew organically from 150 followers to 1250 followers
Helped teaching my youngest to read and my oldest to read and rehearse lines for a major part in a play
Bought 1st rental property end of March 2019
Bought 2nd rental property in August 2019
Bought 3rd rental property in December 2019 (this one with a full cosmetic rehab)
Was a guest on not one, but two podcasts, and submitted an idea to one of my favorite podcasts, and got to speak with the producer and provide input on a new series (can’t share any more info..sworn to secrecy..lol)
Became debt free after selling our cars and paying off the remaining of our $165,000 in consumer debt. Nobody to impress now that I’ve changed my value system and if I don’t have the cash for it, then I’m not buying it.
Completed a No Spend Year of no clothes, shoes, accessories, purses, makeup, haircuts/dye. Turns out I don’t give a shit what others think of me after all, and I don’t need makeup or new clothes to try and impress anyone. “Letting myself go” in the eyes of society by not wearing makeup, rocking my grey hair, and not buying the latest clothing trends feels a lot more like getting comfortable in my own skin. I’ve never felt prettier on the inside and out then I do right now. I also learned to cut my own hair..not getting accepted into cosmetology school anytime soon..lol, but I can do it and it’s fun and free.
Joined a real estate mastermind group and joined a local real estate investors group and have networked and made several great connections in the industry
Attempted my first seller finance deal (didn’t work out but was a great learning experience and made some new connections in the process)
Helped land a few really big accounts at work that required a lot of work and were out of my comfort zone
Was matched with a little sister through Big Brothers/Big Sisters and continued to volunteer on the family selection committee for Habitat for Humanity
Survived a lot of loss including losing a good friend to glioblastoma, losing my dog of 17 years, losing a terminal puppy we adopted, a dwarf hamster, and a pet rat. Lastly, there was an advanced stage breast cancer diagnosis for my mom with lots of biopsies, dr visits, chemo rounds, lots of soups/casseroles and will be leading in to surgery/radiation/hormone replacement in 2020.
Started a gratitude journal that I write in every night.
Started a daily morning meditation and manifesting the life I want practice.
After my leg injury finally healed, was back up to running over 5 miles until I got bit by the neighbor’s dog..lol
Stopped two nasty habits that I have battled on/off for years, smoking and drinking. I still occasionally have a beer or drink, but not like I used to and have been smoke free since 6/1/19!! I’m now focused on enjoying my current situation more and building a life I don’t need to escape from. No judgment to my friends that are still doing these things..just doesn’t fit in my life any longer.
I read 45 books this year!!
Experienced 6 figure net worth growth through all of the above focus, hustle and sacrifice
Wow..I DID ALL OF THAT IN ONE YEAR??!! I did notice that I didn’t have as much of a focus on my marriage or kids this past year, and plan to make sure I am placing more focus on those areas of my life in 2020. Of all of those accomplishments, I am most proud of the self love and belief that I can do anything..because clearly I can after seeing my list!! Also, with the belief in myself, I have noticed my risk tolerance is completely different. I am ready to take on risks instead of turning away from them, because I know I will learn and grow from any mistakes, so bring them on!
Did you write a list of goals at the beginning of 2019 that you can compare your end of 2019 accomplishments to? If not, no worries, because I didn’t write any goals out at the beginning of the year either. 2020 marks the beginning of a new decade and new opportunities to start fresh for all of us. Make it the year you stop saying “someday” and finally replace it with today.
Anyone else brave enough to share their year in review??!!
Intro time! I want to learn more about all of you, so please share as little or as much as you want. I will get it started. 👋
My personal residence in the Kansas City area is what I call “the zoo”. Always lots of dogs and kids running in and out and if the garage is open, then let yourself in. 😉
I have two awesome kids..one who is learning to read and the other is reading lines in her latest city theater play. I have a very patient and supportive husband, with a beard, who breaks gender stereotypes by cooking, doing dishes, AND the laundry. 🧺
A few hobbies include meditating, yoga, running, reading, writing, eating but not cooking, and volunteering on the board for Habitat for Humanity and as a big for big brothers and big sisters. I work for an insuretech company and my degree is in sociology with a minor in psychology and I LOVE people watching. 👀
When I look back on what we’ve done this year since I started mysemibasiclife, it’s been a journey of finding our values, embracing minimalism, doing a No Spend Year, paying off $165,000 in debt, buying two rental properties, and continuing to build wealth through diversification. 💰
My goal is to help you take control of your mindset and financial future, so you can design a life and a legacy to leave your mark on this world. 🌎
I’m an open book, so ask me any questions and tell me about yourself. 👯♀️
I know I’ve shared in the past that I am a big fan of the zero budget, which means that before each month starts, I go count every single penny I will have coming in, compare it to what’s going out, plan for any variable expenses for the month, and then put the rest to work. Since paying off the last of our debt, these remaining funds have grown as high as almost 70% that I am using to fund our real estate portfolio and other savings/ investment goals. When I put that all in writing, I know some of you on the FIRE journey (Financial Independence Retire Early) are probably pretty in line with this strategy and aiming for the same, or maybe already achieving it.
I also realize for someone who is anti-budgeting or brand new to budgeting, then my current path probably seems pretty extreme and even intimidating. Just know that I didn’t start here..I started somewhere though, and sometimes just getting started is the hardest part. So I have a middle ground solution for those that just want to dip the very tips of their toes into figuring out once and for all the following two things without counting every penny 1) where is my money going and 2) is that where I want it to go?
So here is a really quick and easy way, inspired by the book “Your Money or Your Life” By Vicki Robin. If you haven’t read this book, please do yourself a solid and follow the affiliate link below and pick up a copy, and maybe grab a few extra for gifts. It is a very influential book that will CHANGE YOUR LIFE.
One way to get started thinking about the two questions posed above is to make two lists. One should include your top 3-5 things that you value, and the next should list your top 3-5 things you spend the majority of your money on each month. That can give you an idea on if your values align with your spending each month. For your first time doing this, you should expect some room for improvement, so don’t be too hard on yourself and just focus on how you can get better. Before any purchase, simply ask yourself “is this aligned with my values?” If the answer is no, put that delivery menu up or put that shirt back on the rack.
Want to really make some value based budgeting and spending become your new normal? Another eye opener activity to help with this is to go back and add up how many hours you have worked for all your life and how much earned income over your lifetime you have made, and then compare it to what you have in savings/investments/assets. Is there a huge deficiency? Great way to see how all those little things quickly add up. Find 3 ways right now that you can start keeping more of your money and write them down.
Does anyone else currently do value based budgeting?
I posted back in May with our first 6 month check in on our net worth, and I cant believe another 6 months has passed since that first post I made on this topic. Here we are though, so you know I had to do some reflecting on our progress. I knew that we had made a lot of money moves, but I was like damn girl..go on with your bad self. 💃🏻 I was very happy with seeing a 58% increase since this time last year, and wanted to help others with ideas on how you can do the same!
So, how did we do it?!
1. Goal Crushing-Did you know that you are 42% more likely to achieve a goal JUST BY WRITING IT DOWN?? This is one of the easiest ways to increase your net worth, or really a way to change anything in your life, even outside of finances. You’ve heard me talk about always having 2-3 goals and then a few “micro goals” to help you break it down and make a plan to get to those bigger goals. Go ahead..go get your paper and pen..I will wait. 📝
2. Becoming Debt Free-It’s always nice to increase those assets, but make sure you are decreasing those liabilities first. See number 1 if you aren’t sure how to become debt free and also do some research on debt snowball vs debt avalanche. While we are on this topic, please promise yourself that you will stop adding new liabilities. 🙅♀️
3. Investing in myself-Two years ago, I only read two books the whole year, and I used social media as a rabbit hole of memes and scrolling through pictures of people that I didn’t even talk to in high school, binge watching Netflix, drinking several nights a week and I listened to a ton of murder podcasts and rap music. This past year, I have read almost 40 books, created a community of sharing and encouraging others changing their lives through financial literacy, stopped drinking, started exercising more consistently, and I still listen to murder podcasts and rap music, but sprinkle in podcasts about financial independence and real estate investing also. 📚😎
4. Buying real estate-Did you know that 90% of self made millionaires grew their wealth through real estate? Refer to numbers 1,2, and 3 above or refer to my previous posts on real estate if you’re not sure where to start.
5. Investing in our 401k’s and other tax advantaged accounts-If there is a match and/or tax advantages, that’s a good indicator you should be maxing these out. If maxing all of your options out seems like a lofty goal that makes you want to stop reading anything I ever write again, then please start with the employer match, then next open a Roth, then contribute to your HSA. You can choose your contribution amount, sometimes as little as $50, and even pause contributions if needed. Always remember that something is better than nothing.
6. Lifestyle Design-Read my previous post on lifestyle design vs lifestyle creep. Inflating your expenses to match your income is a silent wealth deflater. It’s easy to let your WANTS slip into your NEEDS category. Trust me..I know because I was guilty at one point myself. 🙋♀️ Once I got real real honest with myself, we were able to cut out unnecessary expenses that weren’t in line with our values, got back to basics and are now sitting at a 66% savings rate. 🙌🏼
7. Increasing self worth-Not only should you focus on increasing net worth, you should focus on increasing self worth. I promise you the two go hand in hand. Leave behind those limiting beliefs that are holding you back already-bye Felicia. 👋 You ARE amazing and you CAN blaze your own damn trail and you CAN become whatever you want to be..yes you!
What are you waiting for?? Go get you some worth. 😉