Paradise Found: Lessons Learned .... How I became a Master of My Finances

Guru (Teacher)

"Class is in Session!"... and as if I was actually sitting in University, I sat up a little taller and held my pen to my notebook, ready to take in all and any information Suze Orman was willing to give me through the television screen. As she flashed her white teeth and her perfect smile, she began with telling her class "After a few years of being a stockbroker, in 1987 I opened up my own firm and had another major setback where one of my employees ripped off all my money. It closed me down for a year or two and I ended up $250,000 in debt. That situation turned out to be the greatest thing that ever happened to me because that's where I learned to stand in my truth. That's where I learned that the truth will always lead you to a better place and a bigger place."

Her words rang truer than true, no better lesson has ever been taught... and I can only tell you I am in a MUCH better place than I was a short year ago.....

Last year, I decided to get my Masters. No, I am not going to school for anything... I decided to become a Master of My Finances. (a MMF if you will) It was not a light decision, or even one that presented itself with any real choice. I HAD to get a grip on my finances. I HAD to do something. I HAD to start kick kick kicking... or I was going to drown in my sea of debt.

I've never had a problem with debt before. I always made really good money, and I always lived within my means.. or so I thought. When I look back on my spending in my 20's and 30's I could have done more to sock money away. I could have spent less, invested more, and had a nest egg... but instead I bought new cars, had nice things, and lived the American Dream. Because I managed to stay afloat, I figured I was ok - it was all manageable, and it was manageable... until I got divorced, moved out on my own, bought a truck I couldn't afford, administered expensive medical treatments to a terminally ill dog, and to kick me when I was down, lost my job ... and then the Debt Monsters began to lurk....

My first instinct was "If I close my eyes... they can't see me"... and I hid under the covers from the Monsters. But they did see me. They called me, they knocked on my door, they sent me harassing letters, they denied me credit, they devastated my credit score, and they made me a laughable joke to any financial institution that I asked for a loan... oh, the monsters saw me alright. They took my new truck, they took me to court, they made my life a living hell. I became afraid of my mailbox and my telephone. My confidence in myself was waning... I felt like a failure. I was living the American Nightmare.

For the first time in my adult life, I had to turn to the bank of Mom & Dad to help me. Humiliation cut like a knife. I had no real plan on how I was going to pay them back, let alone Destiny's Care Credit Card, Toyota, or any of the other bills that were swamping me. I had no idea what to do... where to start, or how to right the ship.... all I knew was I had to do something.. I am a grown woman who has been acting like a child. I had to take the covers off my head and look the Monsters in the eye.. I turned to Suze Ormans books, Dave Ramsey's blog and website, and started to absorb everything I could about money management and budgeting. I Googled "Get out of Debt" daily, and read countless articles.

"The Universe provides to those who seek and are willing to do the work..."

Then one day.... in walks Cindy Parran Brochu, Financial Coach. Fate is a funny thing... we met through a mutual acquaintance, and we decided to have coffee. After one hour of talking with her, I knew that the Universe sent me my Guru ... my teacher. Her Financial Fitness course was just what I needed to attain my MMF... (Master of My Finances) degree.

Cindy helped by doing what I was too overwhelmed to do... she poured over my finances. She made me accountable to track my expenses, my expenditures (yes, those trips to Dunkin Donuts add up!) and then once that was complete, she helped me create a spending plan. Her advise was clear and simple - she advised me to talk to my part time employers to see if they could give me more hours until I could get my coaching business afloat. She advised me to look at my insurance policies and get new quotes, and to go to my cell phone provider and get a more affordable plan. And she advised me to take the covers off my head and look at my Monsters... that's right, I needed to talk to them. She advised me to track my money, and start treating my money with respect. The formula ended up being simple: Make more, Save More, Spend Less.

While Cindy gave me the tools and the know how - she did not do the work for me.... that was all up to me. I have to thank my good friend Aileen's blog Kaizen Vision where she suggested to use Mint.com ... it is a FREE personal finance tracking tool that actually makes budgeting fun and easy. Best of all, you can get an app for your phone so you will always have your budget tracker with you. This was the first major step to getting my MMF.

The part that scared me the most about Cindy's advice was looking and talking to the Monsters. They were intimidating and scary. They were demanding, bossy and made me feel badly about myself. I am a good person! I am in debt because I was saving my love of my life, my Destiny... what is the matter with you people? Why do you have to be so mean?!! So I got Pre-Paid Legal (Legal Shield).... and they talked to my Monsters for me. They sent my Monsters letters, and they told my Monsters to behave and they will get their money. They even told one Monster to get lost, because they didn't have a leg to stand on. Bye Bye Monster... Buh Bye.

MAKE MORE ...

I followed Cindy's advice, and was given more hours at my job. I was lucky, I know... but I do trust that my hard work and knowledge paid off, and my employers appreciate me. I also decided to raise my coaching rates - I have three years experience as a coach, I am certified, and I have worked with many clients who have become very successful. I felt good about the raise, and it certainly helped in the "Make More" category. I was afraid I would lose clients or turn people off by asking for more money, but it actually had an opposite effect. I believe my clients saw the value in what I offered and were willing to pay more.

When you value yourself, other people see the value in you...

I also started looking for ways I could make more money - I sold some flys that I tied, I sold some books on Amazon, and did some odd jobs for extra cash.

SAVE MORE ...

Second, I tackled my debts.... one by one, I entered them into a snowball spreadsheet (hint... Google "snowball debt spreadsheet" and you will find one to use for free).

Next, I went to my Credit Union, and set up two savings accounts - one for my "snowball" and one for "shit happens." I calculated my exact expenses, and set up my direct deposit to cover that in my checking account. Any thing that was left over went into "snowball" and "shit happens" respectively. In a few months time, I had enough money to pay off Toyota, and have a nice comfortable cushion should any other monsters come lurking. I see you Monster... I got my eye on you...

SPEND LESS ...

Because of Mint.com, I suddenly realized that I was spending on average $25.00 a month at Dunkin Donuts. That's $300.00 a year.... and I don't even LIKE their coffee!!! (I'm a Tim Hortins girl) I made a budget to spend just $10.00 a month at "coffee shops", and set budgets for everything from "Fast Food" to "Gas"... I started making a game with myself to stay under budget, and when I did, I put that savings against my Snowball. Take THAT you stupid Monster!

I also took Cindy's advice and got new quotes on my car and motorcycle insurance. Thanks to my friend Chris Signore of Garnsey Insurance, I saved $150.00 a year on insurance AND got rental insurance.... a big stick against those "shit happens" monsters. Die Monsters! Die!!!

Finally, I changed cell phone providers and went on MyHoney's family plan - saving me $100.00 a month! In Yo Face Monstah!! Who's your Master?! OH YA.

Now that I feel like the debt monsters are at bay, I am ready to tackle the credit report monsters. Through the advice of my friend Tracy, I went to my credit union and flat out said "I am here to repair my credit, what can you do for me?" They suggested a secured loan. Essentially, I put money in an account, and borrowed the same amount of money against the savings account. I took the money I borrowed, and put it into the same account. I then set up automatic payments allowing the credit union to automatically draw the payments from that account. So, for the amount of 3.55% interest, and in the course of a year or so, I will have "good credit" reporting to the agencies. Down Bad Credit Monster! Down!!

Now that I am a MMF, doors are opening up for me in ways I never expected. I am able to relax more, work with better suited clients, grow my business and be a better employee, daughter, girlfriend, friend, sister and tenant. I am no longer burdening my relationships with the conversations of lack, fright, or desperation. My friends and family no longer feel guilty that they can't help me. Because of my budgeting prowess I can actually pick up the tab once in a while when MyHoney and I go out to eat. I hold my head up higher and feel more confident about myself. Call me the Debt Monster Whisperer....

I always wanted to be "Financially Independent".. but "Independence" doesn't mean going about it alone - it's about aligning yourself with good Guru's .. people who are strong in areas in which you are weak. Be a good student... listen to their advice, and be willing to take action. Get your head out from underneath the covers - look at the monsters... they are not as scary as you think. Sit, Monster Sit. Good boy. (arf!)