Okay, sis, it’s time we had the talk. You know, the talk—the one where I tell you how to stop living paycheck to paycheck and start living your best life, free from the chains of debt and dependency? Think of it like Mean Girls but with more financial planning and fewer “you can’t sit with us” moments.
Financial independence is like owning your own magic wand. It gives you the power to live life on your terms: You want to take that vacation to Paris? Yes, girl. You want to buy a house without relying on a co-signer (or begging your parents)? Say less. You want to feel like a boss without answering to anyone? I thought you’d never ask!
So, grab your Pink Drink and settle in. Here’s how to take those first steps toward becoming a financially independent queen—because, let’s be real, you deserve it. 😉
1. Get Your Sh*t Together
First things first: know where your money’s going. You can’t just charge your card and hope for the best. Well, you can, but that’s how we end up buying random sh*t we saw on TikTok on a Tuesday and then wondering why we can’t afford rent at the end of the month. (Been there, done that.)
Steps to Start:
- Track. Every. Little. Penny: I knowww, it sounds boring and tedious, but trust me, you need to know where your money is going. You’re not the Kardashians—throwing money around won’t magically solve your problems. Apps like Mint or YNAB are perfect for tracking your expenses. You’ll thank me later when you’re no longer surprised by your credit card bill.
- Set a Limit: As much as you’d love to, you shouldn’t buy whatever you want, whenever you want. I get it—you’re a queen and deserve all the things. But let’s be real: put a cap on things like dining out, shopping, or anything that doesn’t directly contribute to your financial glow-up. Every once in awhile, treat yourself. But basically, don’t make it an everyday thing.
- Be Realistic: You can’t cut out all the fun stuff (I know you need your Starbucks). Just prioritize what really matters and where you can cut back. Like, maybe we don’t need that cute Hello Kitty throw at Ross. (Because we have five at home)….haha, I wish I was kidding. *Cries in $100 poorer*
Your budget is your roadmap to financial independence—don’t let it just sit there. Depend on it like the GPS on your phone. You wouldn’t just drive around aimlessly, right? Don’t waste your gas, girl!
2. Build an Emergency Fund (Because Life Happens, Like, Always)
Let me tell you something: Life is like a rollercoaster. One minute you’re enjoying the ride, and the next, your car breaks down or your favorite pair of jeans rips right where your thighs touch (tragic). That’s why you need an emergency fund—a cushion so you’re not wondering how you’ll pay for things when life happens.
Steps to Start:
- Save a Safety Net: Aim for three to six months’ worth of living expenses. I know, that sounds like a lot, but start small. Maybe put away $100 a month until you have a nice little nest egg. Don’t touch it unless it’s an actual emergency. (No, your favorite brand going on sale is NOT an emergency)
- Automate It: It’s the same as setting a reminder with Siri—except instead of reminding you to take the trash out, it’s building your financial future. Set it up once, and watch your emergency fund grow effortlessly, without even having to think about it. It’s like having a personal assistant for your money, working behind the scenes while you focus on living your best life!
- Separate It: Don’t be that person who dips into their emergency fund because they “need” a new tumbler. Keep it in a separate account, so it’s not tempting to blow it on an another overpriced Stanley. (Seriously, why are they so damn expensive?? #YETI for life)
Trust me, babe, nothing feels more empowering than knowing you’ve got cash stashed away for when life gets messy.
3. Start Saving and Investing
Okay, now we’re getting into the fun stuff. Saving and investing isn’t just for the Wall Street boys—it’s for everyone who wants to live a life of financial freedom.
The goal is to get your money working harder than you do—because honestly, it should be the one hustling while you’re sipping cocktails and winking at that mountain of a man across the bar. You work hard enough, so why not let your money do some of the heavy lifting? Start investing and watch your cash multiply while you kick back and let the world be jealous of your financial freedom.
Steps to Start:
- Contribute to Retirement Accounts: You might be like, “Ugh, retirement sounds so far away.” But girl, the earlier you start, the more you’ll have when you hit those golden years. If you’ve got a 401(k) at work, try to contribute enough to get that employer match. It’s free money—who says no to that?
- IRA, Baby: It stands for Individual Retirement Account. If your job doesn’t offer a retirement plan, don’t stress—just open one yourself! Even if they do offer a plan, it’s still a good idea to open one. With a Roth IRA, you put in money that’s already been taxed. And when you retire, you get to pull out everything you’ve earned completely tax-free.
- What makes a Roth IRA so great is that your money grows without the IRS taking a piece of your pie every time you withdraw it. Plus, you can take out the money you originally put in whenever you need it—no penalties. The real magic happens if you leave your money alone to grow until you’re 59½ and the account’s been open for at least 5 years. That’s when you get to pull out all your earnings completely tax-free!
- And the best part? There’s no “required minimum distribution” (RMD) like with traditional IRAs, which means you get to decide when and how you take your money out. The earlier you start, the more time your money has to grow. So what are you waiting for? Start putting money in your Roth IRA and let it build you a nice pile of money. Your future self will be living the dream, and the IRS won’t be invited to the party.
- Start Investing (Even If You’re Scared): If you’re still over here thinking “stocks” are something only the Wall Street kids understand, it’s time for a reality check. You don’t need to be a financial genius to get started. Look into low-cost index funds or ETFs—they’re like the beyoncé of investing: low maintenance but high returns. “I’m on that new vibration.” ~
Read more about Low-Cost Index Funds and ETFs here.
Investing now will have you living the life you want, while everyone else is still trying to figure out how to get their savings to grow. Be that woman.
4. Pay Off Your Debt, Like, Now!
Debt is like that annoying ex who just won’t leave you alone. It drains your energy and your bank account. So let’s snip it asap, okay girl?
Steps to Start:
- Get Rid Of High-Interest Debt First: If you’ve got credit card debt with crazy high interest rates, that should be the first to go. These interest rates can be super high, sometimes 20% or more, which means you’re basically paying more in interest than actually lowering your balance. Imagine trying to fill a bucket with water, but there’s a hole in the bottom—no matter how much you put in, it keeps draining away faster than you can catch up. Not fun.
- To fix this, focus on paying off this high-interest debt as fast as possible. Try paying more than the minimum payment and use strategies like the debt avalanche (paying off the highest-interest debts first) or the debt snowball (starting with the smallest debts). The faster you pay it off, the less money you waste on interest, and the sooner you can be debt-free!
- Cut Back Where You Can: Look, I love a good Whataburger and Netflix as much as the next girl, but if your credit card debt is piling up, it’s time to make some cuts. Maybe skip the weekly UberEats order and start cooking more at home. Or cut a subscription you don’t watch as often. Whatever it is that you don’t “need” (Which, let’s be honest, is probably going to be most of your expenses) cut it off. It’s gonna hurt, but once you cut one, then another, it really does get easier!
- Consolidate or Refinance: If you’re drowning in debt, look into combining them all into one loan with a lower interest rate. You can check with your bank or a local credit union to compare their rates and plans. It’s like taking all your bad decisions and rolling them into one manageable, less stressful situation. Yay!
Once you get rid of debt, you’ll feel lighter and ready to start building wealth. Believe when I say you’ll feel like a total boss!
5. Find Ways to Make Extra Money
While budgeting is important, sometimes it’s not enough to just save. You also need to find ways to bring in more money. Which sucks, but it’s the truth.
Steps to Start:
- Ask for a Raise: If you’ve been at your job for a while and you’re killing it, don’t be shy. Ask for that raise. You deserve it, and your boss will appreciate your confidence. Just channel your inner Serena Williams and go for it! Or find a higher-paying job LOL (It’s actually the best way to get a significant raise! Look while you still have a job and negotiate your offer. I promise it’ll pay off, literally.)
- Side Hustles Are Your Friend: There are endless side hustles nowadays, from driving for Uber, selling your old clothes on Poshmark, Selling Printables on Etsy, etc. Side hustles are your key to extra cash!
- Learn Something New to Earn More: Invest in yourself. If you want to learn a specific skill or trade, take that online course, attend that workshop, and level up yourself! More skills = more opportunities = more money! Girl Math. If you’re not in a good place to spend money, YouTube is your new best friend. Almost everything I’ve wanted to learn is on there, you just have to take the time to watch and learn. 🙂
Take Control Like the Queen You Are
So now that you have the steps, it’s time to start acting like the Queen Bee you’re destined to be. Build that budget, stash that emergency fund, start investing, pay off that clingy debt, and get creative with ways to increase your income, period. You’ve got this, and I’m over here cheering you on like it’s the season finale of RuPaul’s Drag Race.
Now go out there and show the world who’s boss. Financial independence? It’s not just a dream. It’s your future calling. And I’m here for it.
