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?

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Resolutions 2018-2019

As 2018 comes to a close, I want to check in with you guys on your resolutions. Did you make any? Did you stick to them? I wrote a blog last year where I challenged you to make a few, and it’s only fair to tell you guys how I did with mine, as well. Quick refresher, my three resolutions were:

  1. Plan myself less; have 1-2 FREE nights/week.
  2. Get back in the pool and start swimming again.
  3. Do more weight training to become stronger. 

The first one was a half-win. I booked myself permanently for Tuesday nights as “date nights,” which made my free time 1/7th less. However, I told my emoji-bf that our date nights didn’t need to be excursions all the time; it could be Netflix & chill. Sure enough, we did that a lot. I did a better job of not making plans on Fridays, which I always regret when I make them. I am so busy all the time, especially with travel (another blog coming soon on my 2018 travel recap), that it’s nice to sit at home and veg out every once in a while. I think I will continue this resolution and roll it into 2019.

Speaking of rollovers, my second and third resolutions were actually leftover from 2017. I did a much better job at these! For swimming, I moved to an apartment that was closer to a gym with a pool, which was incredibly helpful. Before Tuesdays became date nights, I was swimming every Tuesday. Also, after I unfortunately sprained my ankle AGAIN over the summer, swimming provided a great alternative cardio workout. I even swam for weeks using a buoy between my legs, and only using my arms. I felt so much stronger, and my ankle always felt better after stretching just by dragging through the water resistance. I have fallen off the swimming a bit in the past 2 months because of date night and because it’s COLD! I don’t like being wet and walking the (albeit short) 9 blocks home.

Swimming is always easier with a friend to push you!

My last resolution to weight train more has been incredibly successful, again thanks to my proximity to a new gym. I found two classes a week that I enjoy: A Sunday morning boot camp class, and a Wednesday evening TRX interval class. Between these two classes, I have increased my strength and I have gained self-esteem by realizing I can do things I didn’t realize before (like hold a handstand against the wall for a full minute!) Adding non-cardio workouts to my routine has helped me stick to a diversified schedule, and the secret was just finding instructors I liked, and small classes to keep me accountable.

I get down on myself when I fail at resolutions, so it’s important to recognize success where I can find it. I am all about positive reinforcement, even for myself. I like to recognize and pat myself on the back occasionally. Some of my ongoing resolutions that I have been able to stick to are:

  • Make coffee at home. I prefer iced coffee, so I used to buy it out every day. I have been incredibly successful at making it in advance at home. I have spent a mere $169 on coffee shops in 2018. This may seem like a lot, but I used to spend $75/month! That’s a reduction of $731 for the year.
  • Speaking of saving money and budgeting, I have continued to stick to my mint. I may not be saving yet but, but at least I know where each of my dollars is going. That’s the first step.
  • Travel more internationally. As I mentioned before, a blog about my 2018 travel is coming soon. I have fallen off a bit with my travel blogging, but I did make it to three countries outside the US this year, and two of them were new!
  • Tweet more. Last year at this time, I had about 510 tweets. Now I have 1,147! Not bad! I’m still working on it. Follow me @longlegsbigcity!
  • Save for retirement. My work has helped me with this; they have an amazing plan where if I put in 6%, they put in 8%! It’s basically unheard of. I was doing really well before our Commander in Idiocy crashed the market last week. Oh well.
  • Read 4 nonfiction books/year. I have succeeded! This year I read 41 books so far, and 12 of them were nonfiction. My nonfiction selections were: Becoming, The New Jim Crow, Tuesdays with Morrie, Lean In, So You Want to Talk About Race, So You’ve Been Publicly Shamed, Lucky, Wild, When, Shrill, The New Rabbi and What Happened. Follow me on GoodReads for recommendations!
Traveling internationally for the first time with a backpack! (and Purple Bear)

I’m excited for 2019, and I will try and continue these resolutions, as well as add on a few more. My two main resolutions are:

  • Food prep more and bring lunch to work. This means traveling less on the weekends, so I have Sundays for food shopping and cooking. We’ll see if I succeed. I have my doubts because I already have 3 weddings on the calendar.
  • Get BraidInManhattan.com up and running and monetize the braiding hobby into a braiding business! Right now, I purchased the domain and I have it redirecting to my Instagram (I’m up to 1,336 followers!). For 2019 I want to do more hair for weddings, prom, events, etc. Do you know anyone who needs a stylist?

What are your resolutions? Do you have any? Leave them in the comments or let me know how you did with your 2018 ones!

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“Saving” Money Using Mint.com

HAPPY CINCO DE MAYO!! How much money am I going to spend today on margaritas? It’s no secret that drinking is expensive. And living in NYC, there are so many other things that cost money. You’re always either paying with time or money, and since no one ever has any time, the question is always how to save money. Recently, I started using mint.com, and I have not been more addicted to a website since I discovered Facebook. I have the app and I sign on twice a day. It’s that serious.

Here’s how you use mint:

  1. First, you import all of your accounts. So easy having everything in one place!
  2. Then you create settings so they email you every time a large purchase is made. What an awesome idea! You can keep an eye on your credit card security!
  3. Then, you go through every single transaction you made and you create categories. The OCD in me LOVES this step. Carefully put each expense in a category. Such a sense of satisfaction when everything is labeled!

Things are fabulous! Ease of use, fraud alerts, categories, color coding, SO FUN!

And it IS all fun and games until you realize that it’s your actual money and that your “net worth” (which is the largest number on the screen, front and center) is approximately $-100K in the hole. Not so fun anymore. Quick reminder here again not to go to law school. Cue self-hatred and regret.

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