In case you missed it, we sat down with Chinae Alexander for our second event in the wellness series. This time, Chinae sat down with Shannon McLay to discuss the importance of being financially well.
Shannon is the CEO of The Financial Gym, a financial planning service that provides "trainers to whip your assets into shape!" Chinae kicked off our conversation by being really vulnerable about a time when she was $23,000 in credit card debt.
Talking money can be tough, and discussing finances has become taboo in today's society. Chinae and Shannon discussed debt, money, credit card, and investing, and how it ALL applies to self-care and relationships.
Talking through your finances aloud, whether through a consultant, a family member, or friend, can help you become more aware and confident when approaching your finances and taking ownership. As part of the event's exercise, every attendee was given a handout from The Financial Gym, so each person could calculate their own financial digits.
Calculate your digits below, so you too can become financially fit!
15% = your minimum gross monthly savings
6 = months of fixed expenses saved in emergency savings account
750 = minimum credit score
35% = max amount of credit card utilization at any given time
35% = goal debt / income ratio
2 = minimum number of investment accounts you should have (1 taxable-brokerage, 1 non-taxable- IRA, 401K, SEP, IRA, etc).
Need to save more money, Shannon relayed one of her favorite strategies that we loved! It's called Goal-Based Savings. Instead of having a savings account, boringly titled, "Savings," most online banking platforms will allow you to rename your accounts. Get personal!
What is your savings account for? Are you saving for a trip to Hawaii, your kid's college tuition, or a gym membership? Whatever it is, literally change the name of your account to that goal. If your account is called "Trip to Hawaii," you are going to feel much more inclined to want to put money into the account and less likely to take money out and spend without really thinking about and prioritizing. Is what I'm about to spend money on worth taking money away from my trip to Hawaii?!? Well, when you put it that way...