Today we’re chatting about the importance of having a money buddy. Someone that will hold you lovingly accountable to your money dates and financial goals. Talking about money ranks up with there with religion and politics--- we just don’t do it. It’s taboo to bring it up and women would rather share sex tips than insights on how to earn additional 5% on their investment.
When we don’t talk about it, we are robbing ourselves of learning valuable information from each other that will support our financial independence. Men do it all the time. In fact, one of my guy friends was able to negotiate a moving bonus that was double the amount that the company was offering. How did he know to negotiate for a higher amount? Because a mutual friend shared that he was able to receive that amount because it was the going rate.
A couple of months ago, one of my girlfriends texted me saying she needed some money chat time. I love supporting my friends with financial information whenever I can, so she came over that evening to sip champagne on my condo's veranda.
She was upset about her student loans. Her initial loan amount was $27,000. She had paid off $12,000. So her balance should be $15,000. Or so she thought...
She had paid $12,000, but her outstanding balance hovered around $25,000. How could that be?! I asked her if she had been paying attention to how they allocate her payments. What percentage of her payment was going to interest versus the principal?
As it turns out, most of her payments had only been applied to interest. At the rate she was going, she would ultimately pay $60,000 on a $27,000 loan. I told her that she had to call her loan company every single month to make sure that the majority of your payments are being applied to the principal. Otherwise, they will continue to screw her over. As we finished our bottle of bubbles, she felt relieved and ready to take action. Now, whether this was due to my advice or because of some liquid courage...
In either case, when you have conversations about money, at the very least you will feel less alone. And more than likely, you will gain additional financial wisdom and are more motivated to reach your goals. It could be about student loans, investment tips, how to price your services or ask for that raise.
That's why it is so key to find your money buddy. Someone you can trust and someone who you know will hold you lovingly accountable to your goals. Besides, isn’t way more fun to do things with a pal?!
Your challenge for this week is to find your money buddy and have a money date.
Your buddy can be a girlfriend, your sister, spouse, mom...anyone! Here are five items for you two to cover during your first date. Grab a mimosa and let’s do this!
Share your money story. What did you learn about money growing up? What were your experiences with money as a child and young adult?
What are your BIG, BOLD dreams?
Share what keeps you up at night. What are you most worried about when it comes to money?
Share your goals. What are the specific financial goals you want to accomplish in the next 3 months?
Snap a photo and check in on social with the hashtag, #MoneyandMimosas, so I can say hi and cheer you on!