2017 was the 2nd hardest year of my life by far, especially with regards to my finances. It was the first year that I was fully on my own and, I got the brunt of it. I didn’t land a full time job until the middle of the year and even then, my paycheck every 2 weeks went to bills, bills, and more bills. My bank account was consistently in the negatives, my car had been repossessed, I was always behind on rent (read as barely making rent) and my credit card bills were defaulting.
THE STRUGGLE WAS EXTREMELY REAL
It was one of those years where it felt like I was drowning in debt that I couldn’t get out of. Only a few people around me knew what was happening and even then, I felt so embarrassed at my situation. Pile grief on top of that, I was a complete mess.
I knew that I needed to make a change because at the rate I was going, I didn’t see any glimmer of hope or light in sight. So towards the end of 2017, my sister and I sat down and talked about the steps we needed to take together, and separately, in order to get our financial situation right side up again and the below is how I turned my financial situation around in two years.
The first thing we knew we needed to do was move into a smaller apartment. We made the decision to move from our 2 bedroom apartment (which was way above our income means), to a 1 bedroom unit (that is currently well below our income means). Yep, two 20 something year olds sharing a room, like we did when we were younger.
This move required a complete mentality shift: Sacrifice now to enjoy later. We sacrificed the luxury of having a 2 bedroom home in order to effectively get our money back right, and this was our biggest expense. With our current living situation, the portion of rent that I currently pay is around 21% of my monthly income, which has allowed my money to go further.
Because of this temporary sacrifice, we are now in a position where we can move to a new place, with everything we want, and we can actually afford it this time.
Rule of Thumb: Your rent should be no more than 30% of your monthly income. There are varying factors to that, but that’s a sweet spot to ensure you can effectively make rent each month.
The second thing we currently do is share a car. Having two vehicles is extremely convenient and comfortable, so sharing a car has required us to be mindful of one another and open to accommodating when someone needs to get something done. Two cars meant additional expenses that we wanted to avoid. We’ve eliminated extra costs by now only have to pay for one car insurance policy, one car note (that has officially been paid off as July 2019), and both pitching in for repairs as needed.
| TIP 1: If you’re looking to downsize, be open to the possibilities of finding homes that may not necessarily be your first choice. In this instance, you can’t be too picky, as you may miss out on a great deal. But ALWAYS follow your gut. Your home is your sanctuary and you should feel at peace while there.
Because I now have more disposable income from downsizing (and for transparency: I was promoted mid-2018 and I’ve been grateful to land consistent paid brand deals), my next step has been to pay off/down my outstanding credit card debt. Luckily for me, I do not have an insane amount of CC debt. But for the debt I do have, I wanted to make sure I was letting it work for me, vs. me working for it.
The approach I have taken is paying more than the minimum balance up to twice a month. This strategy has helped me to bring down my usage level, helping to increase my overall credit score. As of this post, I have officially paid off a store credit card, brought another bank card down to under 30%, and close to bringing my 3rd bank credit card down to 30%. And all it took was extra discipline.
You also want to make sure that you’re keeping your credit card usage at around 30% of the total limit. I know, that seems hard and strict but trust me, it’s most definitely worth it and will help foster discipline in not spending money that technically, isn’t yours.
| TIP 2: Once you’ve been consistently making payments on your credit card, ask to see if they can provide a credit line increase. This will be a positive reflection on your credit report. BUT, do not spend more just because you have more. Keep your spend levels the same so that way your usage is low.
I didn’t grow up with understanding the importance of saving. It wasn’t until I had experienced serious financial emergencies that it finally clicked: I needed a steady savings account. After some thought, I decided to make one specifically for emergencies/unexpected expenses, one for travel, and one for me, personally.
My emergency savings has and will always come first. This is the savings that I make sure no matter what, there is money being deposited at the very minimum, 2x a month. This can increase to 3-4x a month when I receive brand checks from paid sponsorships. This is always one of the first transactions I do after I get paid (after paying my tithes) without any hesitation.
In the beginning, I wanted to spend the money. It was there, staring right at me. But as it continued to grow, I realized the satisfaction that came from knowing, if anything were to ever happen to us financially, we are in a secure enough position to handle it.
DISCLAIMER: Saving is most definitely a luxury and a privilege. There are many out there who are living paycheck to paycheck (which I have experienced) and simply do not have the means to save at the moment. If this is your current reality, please do not feel ashamed or less than.
| TIP 3: You don’t have to start off with saving huge lump sums. Save what you can and do with the rest what you need to do.
As I mentioned earlier, I’ve been able to land paid collaborations that have helped with increasing my overall income. It’s a great feeling to have two income streams, especially when one encompasses just being me and sharing things that I am passionate about. I was able to land my first 4 figure deal back in July 2019 and am extremely thankful that God has been providing these levels of deals since then.
But to get to the level of getting paid for this required me putting in extra work. From shooting more content, creating more videos, it has led to it being something that I can get paid for. But maybe you’re not a blogger/influencer. Maybe you just need some extra cash that can help pay some bill, or pay a loan, or money that can just go in a savings account. We all have something we are good at. Something, even if it’s just one thing, that can be monetized. Find what that is for you, and work at it. Pray for the strength to keep at it, for the grace for doors to be opened. I promise in time, you’ll begin to reap what you’ve sowed.
In 2017, I was a Postmates driver because I needed extra money in addition to the part time gig I had (before I landed a full time gig). There’s Uber/Lyft, TaskRabbit, Handy, and a plethora of other direct to consumer services. You can do freelance work on the side if you’re an artist. Or maybe you know how to code and build websites. Even if just for a few hours a week, just as long as you’re bringing in additional funds to help offset some expenses. It doesn’t have to be forever. But I promise you, it’ll go a long way.
Lastly, I had to really take a step back and evaluate my relationship with money and finances. Even in times of abundance, I always felt some level of lack. I’ve always felt very apprehensive because I was living in this fear that everything will be taken away from me at any given moment. And while that fear can sometimes creep up every now and then, my mentality has shifted in a way that I don’t allow myself to wallow in that fear.
I knew that in order to win this battle, it would require more than just my own doing. So, I started actively praying about it. Praying for peace and stability when it comes to my finances. Praying that money will easily flow to me vs. feeling like I need it, and praying for the spirit of generosity because there’s a deep desire to help those who are in difficult situations.
And I finally prayed that God would release me from the strongholds that money tries to keep me in. This burden felt somewhat like a generational curse, and I knew it had to end with me and my sister. I wanted to live freely. And because my relationship with money was a struggle, I felt in bondage to it.
I can say that now, things are looking up. As much as all these tips have definitely helped me, coming at this from both a physical AND spiritual standpoint has been a game changer.
So there y’all have it. The 5 active ways on how I turned my financial situation around in one year. I hope my story was helpful and encourages you in whatever stage of your financial journey you’re on. I’m rooting for you!
Until next time…
Thaina Blot | 7th Apr 19
This is soooo good Seyi! Especially the final section about your relationship with money, whew that spoke to me. Thank you for shedding light on a topic that more of us should be talking about!
thedailyseyi | 15th Apr 19
Yesssss thank you so much for reading boo
Tomah Roberts | 6th Apr 19
Love the post Seyi. Compromising is definitely needed when you’re trying to save.
thedailyseyi | 15th Apr 19
Definitely! But once you get into the habit of putting away a certain amount, it gets so much easier!