Home / Money and Finances / 15 Minutes to Financial Freedom
fifteen minutes financial freedom on green background timer

15 Minutes to Financial Freedom

/5 Comments/in , /by Mary Hunt

Ever found yourself facing the daunting task of explaining financial freedom in just 15 minutes? Emily did, and she reached out for help. As I pondered over this challenge, it struck me: if money management isn’t rocket science, why can’t we simplify it?

fifteen minutes financial freedom on green background timer

The email message contained a single-word subject: Help! The sender, I’ll call her Emily, had been asked by her community group leader to give a 15-minute presentation on how to achieve financial freedom. She was honored to have been asked, excited to do it, but also panicked by the thought. She asked if I would help.

My first thought was I couldn’t even introduce myself in 15 minutes. How could I, Emily, or anyone else tackle that subject in just 15 minutes? But then I got to thinking: If money management is, as I believe, not that difficult, why couldn’t she do it? Why couldn’t I do it? I decided to give it a try.

Save

Do not confuse saving money with spending less, as in “I save money when I buy things on sale.” You are not saving at all; you are spending less. Saving money means that you actually put money into a safe place for some future time. Do that. Starting right now and forevermore, make it a rule that you will put some amount of your paycheck into a savings account before you spend any of it. Make it automatic, and you won’t miss what you don’t see. Goal: 10 percent of all you receive goes straight into savings.

Give

Give away the same amount as you save. Just give it away—no strings attached—as an act of gratitude for what you have and how you are blessed. The goal is to give away 10 percent of all you receive.

Live

Rein in your lifestyle so that it fits into 80 percent of your net (take-home) pay. Pare down your lifestyle. Reduce your spending in every area of your life, and you will be able to achieve this goal—probably sooner than you ever dreamed.

Credit

You need only one credit card. Pick the MasterCard or Visa you’ve had for the longest time. Cut up all the others (but don’t close those accounts because it could do terrible things to your credit score). Now, you cannot use them. If you have a balance on the one card you keep, do not carry that card with you. You’ve given up that privilege until you are able to pay it down to $0 every month.

Debt

The only debt that is safe for you to carry is secured debt (mortgage, car, or anything with collateral). All others are dangerous to your wealth. Make a plan to pay off all of your credit card and other unsecured debts quickly. This is critical to your financial health.

Anticipate

Not all of your expenses occur monthly. Figure out a way to set aside a little bit each month to handle irregular, intermittent, and even unexpected expenses. Knowing that you have the money for that semi-annual insurance payment, family vacation, and summer camp tucked away ahead of time and ready to go will do wonderful things for your peace of mind.

Cash

It’s proven that you will spend about 30% more if you depend on plastic to pay for day-to-day spending, even if that plastic is a debit card! Leave the plastic at home. Live as much as possible with cash. Inconvenient? Yes. That’s the point.

Plan

Society wants you to believe that living spontaneously brings freedom. Just the opposite is true. You need to have a spending plan (a way that you “pre-spend” your paycheck on paper, which some call a budget) so that you know ahead of time where the money will go. Write it down and then stick to it. Take control of every dollar so you are telling it where to go, then pay attention to make sure it does as told.

Support

You need to know that you are not alone. The best way to do that and to keep your focus every day is to get support. Find a community. There are thousands of people who are getting control of their financial lives. Sign up for the Everyday Cheapskate daily or weekly newsletter. You’ll receive daily support and encouragement in your email inbox. Join in and get involved.

There you go, Emily—Financial Freedom in 716 words and 15 minutes. Put this into your own words, and you’ll be good to go. Best of luck with your presentation. I know you’ll do well because you have that secret ingredient shared by dynamic speakers—passion.

 

Question: How do you stay motivated and accountable in your journey towards financial freedom? Any community or support systems that have been particularly helpful for you?

 

 

Print Friendly, PDF & Email

More from Everyday Cheapskate

high yield savings account man dropping quarter into mason jar

The Boring Money Move That Earns You $400 to $2,000 a Year (High-Yield Savings Explained)

estate sale what to buy used and what to avoid

7 Things to Always Buy Used (And 5 You Never Should)

luxury car driving down mountain highway how to lower car insurance premium

How to Knock $200+ Off Your Car Insurance Bill (Without Switching Companies)

negotiate medical bills female nurse with calculator and ipad negotiating a bill

How to Negotiate Medical Bills and Cut Costs 30-50%

financial independence sparkler and american flag in night sky

What My Debt Taught Me About Real Freedom

how to build a $1,000 emergency fund jar with coins and plant

How to Build a $1,000 Emergency Fund When Money Is Already Tight

how to splurge on a budget woman drinking fancy coffee luxury treat smiling

How to Splurge on a Budget Without the Guilt

woman grocery shopping pushing cart with apples and cauliflower

How to Read a Grocery Store Sale Cycle (And Stop Overpaying)

bill glasses and pen how to negotiate your cable and internet bill

The Word-For-Word Script That Cuts Your Bills by $600 a Year



Please keep your comments positive, encouraging, helpful, brief,
and on-topic in keeping with EC Commenting Guidelines



Caught yourself reading all the way 'til the end? Why not share with a friend.

5 replies
  1. Anita says:

    Lots of truth here. I’m thankful that my dad taught me these guidelines – and lived them. It wasn’t until I was older that I realized what a gift that was.

    Reply
  2. MoreFreedom2 says:

    Mary’s advice is great. I’m nearing retirement. I started saving saving and investing about 15% of every dollar I’ve earned. Now I have a bankroll that amounts to about 70% of every dollar I’ve earned over 30 years, on which to retire. I was a cheapskate (but not cheap) before I learned who Mary, who does it better.

    Learn the mathematics of compound interest, then you can do the math to see how you can achieve financial independence. You don’t have to be a great stock market investor, as I had perhaps average returns on my investments, with gains and losses over the years.

    Reply
  3. Jan Schal says:

    Such good advice! Especially useful for those just starting out. When I was in high school (and I’m old now, so it was a while ago), we had a Consumer Education class. We learned how banks, loans, the stock market, and consumer credit works. We learned how to write a check and balance a check book. I got my respectful fear of debt from this class. Does anyone teach this stuff anymore? Your books should be mandatory reading for students these days. I especially like that you advise to give away as much as you save. What do I have that was not given to me? Grateful giving is a very good way to live. You rock, Mary!

    Reply
  4. Ann says:

    Mary said, “CREDIT You need only one credit card. Pick the MasterCard or Visa you’ve had for the longest time. Cut up all the others (but don’t close those accounts because would do terrible things to your credit score).” My question is, How do I not pay the annual fee if I leave them open, but don’t use the Visa card? I’ve been using the rewards credit to pay the $49.00 annual fee.

    Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

12 Genius Organization Hacks to Get Your Garage Looking Great!tidy organized residential garagecozy midcentury modern home office on a budgetHow to Create a Home Office on a Budget: Creative Tips Practical Ideas