Adulting sucks. But when you do it right (I should say do it the best you can), the fruits of your labor come through in a time of crisis.
Like most people in their early twenties, I made ALL the common mistakes when it came to money management. I had and still have student loans. I didn’t scrutinize my bank statement every month. I paid a couple of bills past due and I took on unnecessary financial obligations.
Long story short, my credit score and savings account suffered.
I thought back to my Mom's Nigerian version of “The Grasshopper and the Ant” bedtime story; where Ant ultimately told Grasshopper he’s not sharing and Grasshopper shriveled up, died, and got eaten by a crow. Or my Dad forcing me to read “Rich Dad Poor Dad” in middle school. They gave me financial guidance growing up, my family never lived in excess, and they navigated the 2008 recession like Magellan. So I couldn't reconcile the stress I was having with money. I was stuck in a job I HATED because I had bills to pay. I was sick feeling like was two or three paychecks away from the chips falling.
At some point in my mid-twenties, I did a financial upheaval. Finances are like boxing. If you don’t get adequate training, you’ll get knocked out early in the match. I started fighting. Self-help books were in heavy rotation and minimalism became my mantra. I became hyperconscious about what I was spending, where, when, and who I was spending money with. Low and behold after editing my financial (and social) life, my bank account began to swell.
Fast forward to now…
The Coronavirus hits. Everyone around me is stressed about their jobs. I’m not. Not because I’m 100% my job is secured, but because I’m living way below my means and I have multiple streams of income. If I lost my job today, I could survive on just my liquid savings for at least six months.
My utility bills are few and small. I’ve kept my credit card balances low. Most of the time, my cards float around 7% utilization. I’m not worried about making minimum payments. At the moment all my cards are paid off. Everything is on autopay.
Since I’m fortunate enough to work from home, transportation costs have gone down. I always meal prep, so I don’t spend a lot of money on takeout and delivery. Most importantly, I haven’t been tempted to spend the extra funds on aimless online shopping.
Low and behold I’ve invested more money into stocks and retirement, put more money into my savings, and my credit score jumped 45 points during the quarantine.
The best measure of progress isn’t surviving a crisis, but thriving in one. If I had to navigate economic stress like this three years ago, I’d be in ruin. I pinch myself every morning and thank God I cleaned up my act when I did. My story isn’t typical, yet I don’t believe its exceptionally unique.
Ladies, all of us can do this. Don't wait for the next downturn to get your act together. As women, we already suffer from being paid less on the dollar compared to men. We also have to consider the pink tax for products and reproductive health needs. The feminine dollar has to stretch a bit farther and longer. The disparity in wealth rears its ugly face in times like this and economic equality will not happen overnight. It’s in our best interest to plan, plan, and plan some more! It takes a lot of discipline and sacrifice, but the peace of mind I have right now is priceless.
You should have it too…