finances

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    Letting Go of the Past: Forgiveness

    Last week, I finished listening to Eckhart Tolle’s The Power of Now. It had been on my “to-read” list for years, when by a stroke of fate a dear friend offered to lend me her audio copy. I plan to do a full review of the book in the coming weeks but for now I want to focus on one important element—forgiveness of the past.

    Recently I started thinking about the first twenty-five years of my life. In The Power of Now, we learn that to live in the future or the past is to suffer. The only way to exist in true harmony is to live in the now. After all, the past is not real, the future is not real. The past and the future only exist in our minds. The only thing that is truly and completely real, is the now.

    The challenge with this, however, is that until we can accept, understand, and move on from the conditioning of the past, we can not experience true freedom. And in order to truly accomplish this, we must experience true forgiveness of the past—forgiving others & ourselves completely.

    As I reflected upon these truths, I realized that I have been holding on to a tremendous amount of pain from my own personal history. There is so much past that continues to haunt me and impact me in the now. One of the greatest sources of pain revolves around my former lifestyle.

    I spent so much of my life caught up in a false sense of self. I spent incredible amounts of money on material possessions that I now perceive as worthless (clothes, jewelry, useless electronics, etc.) For some reason, I fell into the marketing. I bought it—all of it. (You can read more about my journey into financial prison and my subsequent journey out in previous posts.)

    But that’s not really the point, the point is that I ended up here. I can sit around and feel sorry for myself, angry that so much of my life was wasted, frustrated that I’ve only paid off a fraction (albeit a substantial fraction) of my debts so far; but if I did all of that where would it get me? It wouldn’t get me anywhere except maybe on a private jet to my own personal pity party. No thank you.

    Instead of wallowing, I am grateful. Grateful that I have come this far. Grateful that I’ have learned these lessons and changed the direction of my life by the age of 25 (soon-to-be 26). Grateful to be surrounded by a community of people that support me and believe in me. Grateful to have discovered my life’s true purpose and passion. Grateful to be doing what I love (even if only part of the time). Grateful to be safe, secure, healthy, strong, and beautiful.

    As I move through these emotions of gratitude for what I have now and what I am now, I find that the pain of my history slips away. I believe that I am finally on a path toward true forgiveness of the past. The reality is that it happened. I made mistakes, like all fallible human beings do. However, without making those mistakes, I may never have come to this place, to this now.

    The past grants us wisdom & grace. The memories that haunt us the most, are usually the memories that taught us the greatest lessons. Forgiveness will come from acceptance. So, the trick to true forgiveness is true acceptance. Once we can accept our past unconditionally, we can live fully in the now.

    I am making my way on this journey slowly. For most of my life, I focused almost entirely on the past—heart breaks, mistakes, errors in judgment, loss, failures, and so on—but that was a tragic mistake. What I now know is that the past is gone, the only thing that matters is now. And likewise, the future is a distant place that exists only in my mind. The only thing that matters is right now.

    Transforming the way that I think has been a challenging process, but I have come a tremendous distance already and I will keep on pushing forward, always.

    Now I ask you, reader, what pieces of your past are you holding on to? Are you willing to accept those pieces unconditionally so that you may truly forgive and live in harmony & light? Will you join me on this journey?

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    My Journey to Financial Freedom | Part 2: The Climb

    Emergency Fund

    Three years ago, I was nearly $60,000 in debt. I had a Bachelor’s degree that didn’t appear to be worth its weight in salt and a job that couldn’t cover a fraction of my monthly bills. I was terrified.

    Today, I am closer to complete financial freedom than I ever dreamed possible. Last week, I paid off my last remaining credit card balance. This two-part post is a celebration of this incredible milestone in my journey.

    In part one, I explained how I got to that terrible place. In part two, I will explain how I’m getting out of it (and how you can do it, too).

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    1. Change the way you think about spending money. For most of my life, I believed that money was made to be spent. I believed that I *deserved* to spend every dollar that I earned on some material thing that would “make me happy.” I coveted material possessions—clothes, jewelry, electronics, cars. What I realize now is that money is not meant to be spent. You only need to earn enough money to survive. You should have enough money to buy only what you need. There is no need for excess.

    “You’re not your job. You’re not how much money you have in the bank. You’re not the car you drive. You’re not the contents of your wallet. You’re not your fuc*ing khakis.” (Fight Club)

    This shift in mindset is hard to adjust to at first. You may not like the reactions that you receive from people. Believe me, I’ve been called cheap a few times, but I pay no mind to it. I would choose cheap over poor any day.

    2. Keep a budget. I highly recommend using Mint.com. I started using it in September and it has been one of the most transformational and useful tools throughout my journey to financial freedom. It allows you to sync up all of your accounts (loans, checking, savings, etc.) in one place. Then it keeps track of every transaction that you make and sorts/organizes all of the data for you. It allows you to track your spending over time and by category. It gives you incredible perspective and insight about where your money goes each month/year. It has been a truly eye-opening experience for me.

    If you’re unwilling to try Mint, you can keep a budget on a spread sheet or even by hand. However, the important thing is to be completely conscious about where every dollar you spend is going.

    3. Use a debit card. To reap the full Mint.com experience you should use a debit card for every purchase you make. Using the debit card will automatically flag each transaction you make into the appropriate category. So if you go to Shoprite, it will get marked as groceries. If you go to Home Depot it will get marked as home. If you stop at the gas station it will get marked as automobile, and so on.

    I use my debit card (linked to my checking account) for almost every single transaction that I make. I also have all of my monthly bills (like my auto insurance, utilities, and gym membership) automatically debited from the same checking account each month. It makes keeping track of my spending that much easier. Plus, I do not like dealing with cash. The debit card is quick, easy, and is accepted almost everywhere now.

    Whether or not you use Mint.com it is a good idea to use a debit card simply because you can review all of your purchases and purchase amounts on your monthly statement. Trying to keep track of receipts is a hassle that I don’t have time for.

    4. Pay off credit cards and cut them up. Paying off my credit cards was my first priority. For awhile I tried “credit card surfing.” Let me just tell you from experience, it’s overrated and it really doesn’t work. The idea is that you surf from credit card to credit card by transferring balances. A lot of companies will give you 0% APR for 6 months if you transfer your balances over to them. After the 6 months, you “surf” to a new card with another promotional rate.

    The problem with this tactic is that it gets messy quickly, it becomes difficult to keep up with, and if you lose track you will end up getting burned by high APRs, finance fees, cancellation fees, etc. Also, it probably doesn’t look great on your credit report if you’re opening up a new card every 6 months or so.

    It is much safer and wiser to just stop using credit cards! My theory is simple and has taken me very far: If you can not afford to buy it, then you can not afford it. Period. It is simple logic.

    5. Eat in. This is one of the easiest changes to make, but it also comes with an enormous, positive impact. When I started closely tracking my spending habits, I was shocked to see how much I was spending on eating out. A meal at a decent restaurant goes for about $25 per person. If you eat out twice a week, that is $3,120 a year. If you grab lunch out during the work week, it’s about $8 a day. That’s $2,080 a year. Put those together and you could be spending $5,200 a year or more on dining out! That is outrageous and completely unnecessary.

    Since I started eating in and packing lunches, I’ve taken my monthly food spending from $500 down to $200 or less! Over time, that means enormous savings. Check out 5dollardinners.com for some awesome, inexpensive recipes. I love it! Also, investing in a crock pot was one of the wisest decisions I ever made—chili, sausage & peppers, and goulash will be your new (delicious, cheap) best friends. (Here are some more tips for eating healthy & mindfully.)

    6. Direct deposit money into savings every month. This is my final—and perhaps most important—tip. When I began my journey to financial freedom, I opened a savings account with ING Direct. It is an easy-to-use online savings account and it gives you interest on the money that you save. It also allows you to set up easy direct deposits.

    I started out small, depositing $50 a month into my savings. As I learned to keep my budget tighter and tighter, I increased the amount that I put into my savings each month. Currently, I am putting away $500+ per month and hope to get closer to $1,000 per month in the very near future.

    When you direct deposit the funds, it comes out automatically. It is painless because you don’t have to do a thing. Because it’s automatic, after awhile you don’t even notice that it’s missing. (I remember reading that on another blog several months ago and thinking, “Are you out of your mind?! I’m not going to miss it? Yea right!”) But I can honestly say that after a few months, you adjust to the missing money. You truly do not miss it once it becomes normal for that amount to be deposited into savings automatically each month.

    It has been one of the best decisions that I’ve made and because I’ve worked so hard to get to this place—I don’t touch that money! I am keeping it there for a rainy day or to pay off my student loans someday in one fell swoop.

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    As I stated at the start of this post, three years ago I was almost $60,000 in debt; I was twenty-three years old; and I was scared to death. Today, I have my finances under control! I am on the road to financial freedom and you can get here, too. Truly, it is not as hard as it seems. With common sense and a bit of dedication, it will happen. Paying off my last credit card balance was like taking chains off of my wrists for the first time in seven years. The feeling was completely priceless. If I can do it, anybody can.

    So, what are your financial goals? Have you ever been in financial prison? How did you free yourself? If you’re still there, what are you going to do to break free?