Episode 10: Create a Purposeful Financial Life
The guest today, Paige Pritchard created an online community for women to create a powerful financial life. She shares her story and talks about shifts in your mindset on money and the biggest impactful change to start today to hit financial goals. Some of the advice she gives includes, focusing on the fundamentals, treating your money like a relationship with a person, and that your money should have priorities. Paige created her blog after paying off $98,000 of student loan and credit card debt by the age of 27, buying her first home at 25, and building a six-figure retirement portfolio by her 29th birthday. Know that it is never too late to gain confidence to learn and have a system for your finances.
Paige’s story: Created her blog after paying off $98,000 of student loan and credit card debt by the age of 27, buying her first home at 25, and building a six-figure retirement portfolio by her 29th birthday.
Never too late to gain confidence to learn and have a system for your finances
Your twenties is the best time to save and get your financial life in order
Grew up in Coppell, went to Texas A&M, saw financial issues in her household and through student loans.
Was ashamed and embarrassed of student debt
Marriage is a team in everything, including money and debt.
Money is emotional
You can choose how to use your money, women have a preconceived notion that we are bad with money. We need to shift that mindset that we can control our money and choose what to spend it on
Treat your money like a person, value your relationship with money, value your money, be responsible with receiving money
Money should have a priority, spend your money on what should come first. First start with your needs: roof over head, water, heat, groceries, basic clothing. Second is make your minimum debt payments. Third is funding your financial goals and not going straight to spending on your wants.
Focus on learning the fundamentals
Your budget should be very fluid and flexible
Here are some of their Biggest Takeaways from the Episode:
Pay yourself first
Cover your needs
Meet your minimum debt obligations
Fund financial goals - monthly or per pay check contribution amount to your goal (savings goal or trying to get out of debt)
Then what’s left over after that - that’s what you go have fun with.
“Do not save what’s left after spending, spend what’s left after saving” Warren Buffet
A great activity to teach kids about Money Management: Label Three Jars - Give, Spend, Save and have them put their money in each. This will help teach them at a young age, that you don’t get to spend all that you make.
Another great recommendation, for older kids, simply show the math, if you just save $200/month - this is what this money will turn into when you are 65.
Living on a Budget is hard work, you will screw up on your budget, but you just keep trying! Key is checking in on your budget on a regular basis.
To get started paying of debt:
First, list out all your consumer debt
Pick your plan of attack
Dave Ramsey - Debt Snowball - smallest to largest - your order or plan of attack. Then pay off one at a time. The psychology behind it, you’ll have quick wins in the beginning to help keep you motivated.
Debt Avalanche - separate debt by the highest interest rate to the lowest interest rate, and start paying off the debts with the highest interest rates first - will save you the most money in the long run.
Books mentioned:
The Heart of Money: A Couple's Guide to Creating True Financial Intimacy by Deborah L. Price
Think and Grow Rich by Napoleon Hill
The Science of Getting Rich by Wallace D. Wattles
Where to find Paige:
Instagram: @paigelpritchard
Check out her workbook on her website!