Project Net Zero

Money is on a lot of our minds nowadays. Some people are worried how to pay bills this month because the government discontinued unemployment checks. Others of us are on Amazon every day buying our happiness to our doorstop. Either way, one thing is for sure: all of our spending habits have changed this year.

I am incredibly lucky to still have a job, and despite losing all of the income I was bringing in by teaching at the gym and braiding hair, I am still saving more than ever because I can barely spend any money. I’m cooking meals at home, having drinks at home, making coffee at home, not traveling anywhere… basically everything I spent money on BC (Before Covid), I can’t do anymore!

This change in spending habits came at a very interesting time, right after I got engaged. You may remember that my now-fiancé was the first person to whoop my finances into shape in 2017. He works in finance and needed to give me a crash course on how to be fiscally responsible. Now that we are talking about combining our lives and finances FOREVER, we talk about money a lot!

Back in 2017, he was horrified that I had credit card debt (not to mention my sky-high pile of student loans from law school), and he quickly taught me the importance of a retirement account. Also, I didn’t understand the concept of a savings account. I mean I did, but I didn’t have any money to put in said account.

I posted a blog in April 2017 to talk about my newfound addiction to mint.com. I finally gave in to my dad and boyfriend’s pleas to start budgeting and tracking money, and I became obsessed. At that time, I was checking my account every day. Now, it’s a little bit less, but it’s still fun to check! There’s something about watching the graphs populate that makes it fun to save. There is some science behind this; it’s all about the gamification. There are studies proving that this can work, and there are many apps that have been created specifically with this in mind. I love to look at the Trends tab with performance graphs and pie charts, and I love receiving the emails congratulating me about my increased credit score. The whole thing is fun. And since there’s nothing left in 2020 that’s fun, I was checking my mint the other day when I realized something… I’M ALMOST AT NET ZERO. That’s right, my net worth is approaching equilibrium. I told my fiancé and he said that when I get to net zero, we can throw an “Emily is Worth Nothing Party.”

Amazing News: I think I’ll get to Net Zero in a month or two.

Bad News: I was SO PSYCHED about the prospect of a party I didn’t realize that Covid would still be going on, so it was likely to be a party where I wear a party hat in the house and drink alone. Meh.

Anyway, I know you want to know how I got here. When I started using mint in September 2016, I had a net worth of $-107,000. At my lowest in November 2016, my net worth was $-111,612. Talk about daunting. I didn’t understand how I would ever dig myself out of 100K of debt by sticking to a $20/month coffee budget. You may recall my wake-up call was when my dad asked if I needed a payment plan to pay for my $120 state taxes. I was determined to try and get out of debt. Some of these tips and tricks you may be able to use, and some, I realize may not be applicable.

1. Track your spending. This is pretty straightforward. Over time, tracking spending does change spending habits. For me, when I realized my $100 bar tab would show up at the end of the month on my mint, I thought twice before ordering another round.
2. Get a roommate. I know, this seems dumb but BY FAR the most expensive thing each month in New York is rent. It’s astronomical. I never had a crazy expensive apartment, but I saved $500/month when I moved in with my boyfriend (now fiancé). The other day I added up how much I’ve saved on rent since we moved in together: $21,000 (42 months x $500). That’s a lot of moolah. Maybe you can’t move in with a boyfriend, but seriously consider how much of your paycheck you’re spending on rent before you sign a lease.
3. Credit Card Churning, baby! This is a complicated concept for some, but if you’re spending money anyway, spend it in a way that earns you money back! (Spend more and save more! HA) I wrote a whole blog on it before, so I won’t reiterate, but I have probably saved $10K-$15K in travel in the past 4 years by solely using points.
4. Set Goals. You guys know I’d rather set a goal than “make a resolution,” but SMART goals work! I had 4 financial goals in 2019, and by putting pen to paper and looking at them periodically, it kept me honest and committed. I surpassed them all! Make sure they are attainable, so you aren’t dejected.
5. If you have student loans, try to understand repayment options and interest rates. Again, I wrote an entire blog series on my student loans, so I won’t say it again. But it’s important to know the interest rates of your loans so you can pay off the high interest ones first. Maybe combine it with #3 and get a credit card to pay off some of them.
6. Take advantage of any retirement contribution from work. I am super guilty of NOT doing this. When my fiancé found out my work had a matching program that I was not taking advantage of, he literally texted me the next day at work to ask if I had signed up yet. And that means a lot because he does NOT text me during the day (we’ve worked on his texting; it’s gotten better since 2017). If your employer is matching any percentage of your contribution, take advantage. That is literally FREE money.
7. Advocate for yourself at work. I’m talking about raises. Have you been at the same job for years without pay increases? You are your own best advocate. You need to figure out how to get compensated for your work. Is this easy? Hell no! It’s super hard. I coach people every day on how to ask for raises, and it’s still not easy for me to do! If you are very lost on where to start, I recently listened to a podcast with Ramit Sethi, author of I Will Teach You To Be Rich, where he laid out a specific plan on how to speak to a supervisor about a raise.

I did all of the things I listed above, and more. Between lack of travel this year and decreased all-around spending, I am almost at Net Zero! Do I still have student loans? You betcha. Almost $100K still. But my retirement is growing, I have a 401K, a Roth IRA, a savings account, the whole deal. And more than the numbers, I feel like I’m in control of my finances for the first time in my life. Do any of you guys set financial goals? What’s the hardest part about it? Have you had any big achievements? What do you do to celebrate?