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Going where the money reside in 2021

Some peace of mind would be nice too.

By Jemma Aydin Published 3 years ago 3 min read
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Going where the money reside in 2021
Photo by Kelly Sikkema on Unsplash

After realizing the impact that financial anxiety has had on my life, I have decided to get back into the driver’s seat this year.

Financial trauma, which experts define as “dysfunctional reaction to chronic financial stress” is a reality for one third of millennials (Forbes). These dysfunctional reactions include negative/intrusive thought patterns related to money, fear, withdrawal from relationships, and decreased joy. I have fought to find and hold on to sources of joy in my life, but this has been challenging and sometimes fleeting in the face of persistent financial stress.

Reading through this article, I saw a lot of my own dysfunctional reactions and felt seen. While I want to tackle this head on, I want to be aware of my own trauma, manage my expectations and honor my journey to healing.

My specific goals for this year are:

Earn More Money

While perhaps a more miserly person could stretch my paychecks a little further, even they would have hard time making them meet. When I get down to it, I don't actually make enough money to make more meaningful progress on my debts and maintain my minimum standard of living in an expensive area. And frankly, I'm not prepared to live with less than I already do. After crunching the numbers and increasing tenure at my job, I finally decided to ask for a raise. Though this request seemed well received and is currently under consideration, I made the decision to start seeking new professional opportunities this year.

My position at a small non-profit is undervalued both within the organization & the broader market in our area. For this reason, I'm choosing to focus on chasing a higher salary rather than devoting my personal time to a side hustle.

Pay Down Debt/ Improve My Credit Score

A low credit score is going to be a major obstacle to finding my own place in the near future, another important goal for me. Renting an apartment will generally require a credit check and in the event of bad credit, a co-signer (which I don't have access to). I am super jealous of my friends quarantining in their own spaces.

Because of my financial...entanglements, ditching my shared living situation is out of reach at the moment. Improving my credit score over the course of the year is something I can focus on that can bring me closer to having my own bachelorette pad. Luckily there's no where to go but up :')

Nonetheless, I am making progress slowly but surely in paying off my credit card debts. Based on my current income and expenses, slowly has been the operative word here. I would like to use any additional income to target these debts. Of course, some debts are more important than others...

My number one priority is to get right with Uncle Sam. That's right folks, I owe some back taxes to the IRS, an agency renowned for its tenacity in collecting what's owed. In my early attempts to gain control of my debt, I mistakenly prioritized my credit card debt. After credit cards are charged off, they stop accruing interest. So while I hated dodging pesky phone calls from collection agencies at all hours of the day, my credit card debts were actually the only ones NOT accruing interest.

Save $1,000 for My Starter Emergency Fund

Having a financial safety net (no matter how small) is crucial to my well-being. My goal is to save $1,000 this year. Like many people, I’ve used credit cards to cover unexpected expenses with credit cards where I didn’t have savings or family members to fall back on. And I am quite literally still paying for it.

This year, I would like to have a savings account—and not a revolving one. The key to doing that will be setting aside a relatively small amount that I won’t immediately miss over the course of the month and keeping my goal conservative.

In the past, I have often avoided facing my finances head on because of the anxiety and overwhelm it would stir up. Suprise! My debt didn't go away. This year, I'm facing it head on and keeping my eye on the prize: peace of mind, the freedom to do what I want and comfort in my surroundings.

Recommended Resources:

personal finance
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Jemma Aydin

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