As 2021 comes to a close, it can be deeply valuable to spend time reflecting on this past year and considering where you would like to focus your energy around goals for the year ahead. You may find it helpful to set personal, family, career, spiritual, health and wellness, and of course, money goals.

The ultimate desire behind setting financial goals is abundance, a feeling I describe as overflowing fullness. The most sustainable way to welcome greater abundance into your life is learning how to set supportive money goals.

I’m here to share my best practices. Let’s dive in!

Schedule it

Before you sit down to begin creating your money goals, plan a day and time to do so. Put it in your calendar or planner – whatever works for you! This helps for several reasons including, accountability, follow-through, and showing up to the exercise in the right headspace.

I also encourage you to create a grounding environment for your exploration. When I prepare for my scheduled money check-ins, I like to have a warm beverage, usually tea or lime water, with me. I find it supportive to light a candle, burn incense or turn on my diffuser because aromatherapy anchors me in my body, and being in my body is when I feel the most secure.

Compassionate clarity

Once you’ve set aside time and created a supportive environment, it’s time to gain compassionate clarity around where you currently are and where you wish to be. The key here is compassion. Take time to recognize all that you accomplished this past year and the challenges you overcame. Leave judgment at the door of whatever room you’re sitting in. I invite you to think about or journal around the following questions:

• Where do I already feel abundant in my life (relationships, career, mentors, wealth, creativity, health, spirituality, etc.)?
• Where do I desire greater abundance (relationships, career, mentors, wealth, creativity, health, spirituality, etc.) in my life?
• In the areas of my life where I desire greater abundance, what does that look like, tangibly? Jot down a few bullets for each area identified.

Feel it out

Now that you’ve identified the areas of life where you desire greater abundance and have visualized what it looks like tangibly, it’s time to explore what it will feel like. Often, our minds trick us into thinking we want certain things, and once we have *insert something, course, trip, etc.*, we don’t feel any different. It didn’t add value to our lives.

To set money goals that will leave us feeling fulfilled, it’s essential to explore the desired abundance in greater depth. I invite you to sit with your eyes closed or with a soft gaze on the surface in front of you. Visualize accomplishing every one of the bullet points you jotted down in the previous exercise. As you imagine each, consider:

• How does it make you feel? 
• What space does it create in your life? 
• What does it allow you to do more of? What does it let you to do less of? 
• How does it feel in your body? Does excitement creep into your stomach? Are you flooded with a sense of warmth? Or perhaps you feel constriction- a telling sign that this may not be in alignment with your true desires. 

I encourage you to spend time here in this exercise. Our bodies hold innate wisdom that we often don’t take advantage of because we tend to live largely in our minds.

The importance of timing

Now that you’ve gained mental, emotional, physical, and possibly even spiritual clarity around your most aligned desires, you can begin creating and prioritizing your money goals based on timing. If you’ve ever worked with a financial planner or wish to in the future, you’ll learn that a driving factor behind their financial advice is timing.

I want you to compile the list of bullets you made for each area of your life into one list. These are now the subjects of your money goals. Next to each bullet, identify when you’d ideally like to reach the goal: within one year, 2-5 years, beyond five years.

For example, if you drive a 2007 Subaru Forester that costs you $500 in repairs each time you go in for an oil change (*raising hand*), you may choose to set a financial goal around saving for a down payment for a car. Identifying whether you desire or need the new car within the coming year or two years from now will significantly impact how much money you’ll contribute towards this goal each month.

Set those money goals!

Join me in taking a deep breath. You’ve made it to goal-setting!

In this step of the journey, you’ll understand how much money you’re comfortable putting towards each money goal and whether the desired timing is supportive and realistic. At this time, you’ll need to have an accurate sense of your monthly disposable income or after-tax income less your fixed expenses (rent/mortgage, car payments, utilities, groceries, insurance premiums, property taxes…).

If you don’t already know this number, reference your pay stubs or bookkeeping records, if self-employed, to determine your income and then reference your credit card statements, online accounts, etc., to identify fixed expenses. The amount of money left is disposable income, which you choose to put towards financial goals or day-to-day living expenses. 

Begin to assign your disposable income to the goals you wish to accomplish within the year first, then 2-5 years, then beyond five years. I invite you to play around with this part of the exercise! Keep in mind that for the first few months after setting money goals, allow yourself to update them where it feels necessary.

These are not meant to be etched in stone, and your expectations and desired timing are allowed to change if you feel that the goals you set are too aggressive and have caused your daily life to feel restrictive. Or perhaps you weren’t ambitious enough, and after the first month, you realize you could put more towards your short-term money goals.

The journey doesn’t end here!

During the first week of every month, set aside time to check in with money. Nurture the relationship, check in with your goals, acknowledge your progress, and identify areas of improvement.

Setting supportive financial goals that welcome greater abundance into your life is a practice and a journey. As with anything new, you may not get it right instantly. Compassion, grace, and celebration go a long way. You got this!

Moving your body regularly.

Creating a morning routine.

Setting solid boundaries.

Attending Sunday brunches (I mean, this is totally self-care!)

But I barely hear about financial self-care. 

You know…the habits and rituals that allow us to reach our financial goals and create our desired financial reality.

In this blog post, I dive into 13 ways to practice financial self-care in your life.

1. Set empowering and fun money goals

Since you’re here right now reading a blog post on financial self-care on a blog called Life Goals, then I’m going to make the wild assumption that you’ve set financial goals before.

Setting short-term, mid-term, and long-term financial goals is a crucial part of your financial journey.

Having these in place helps you create a practical plan to achieve them, hold yourself accountable, track your progress, and stay motivated through the process.

Moreover, your financial goals serve as a blueprint for creating your desired financial reality. 

The key to making your financial goals fun and empowering is to determine the why behind them. 

Why is this goal important to you? What will become possible when you achieve this goal? And why is THAT important to you?

Journal on this. Really feel into the purpose of your goals. Check-in on your goals regularly to make sure they’re still empowering. 

If they don’t, you have full permission to throw them away and create new ones! After all, what’s the point of goals if they’re not empowering?

2. Give gratitude

Being grateful for what you currently have in your life connects you with abundance. 

The essence of an abundance mindset is focusing your attention and energy on all that you already have instead of focusing on what you don’t have or lack. 

The same concept applies to money. 

If you desire more financial abundance in your life, practice giving gratitude for it every time it comes in AND out of your bank account. 

When your paycheck hits your bank account…

When a new client invests in your services…

When someone buys your product…

When you pay your bills…

When you treat yourself…

When you buy a gift for a loved one…

Take a second to reflect on what that money has allowed for and provided for and say “thank you.” 

3. Cultivate a deeper relationship with money

While other factors, like how your parents viewed money and culture, influence your feelings, beliefs, attitude, and perception of money, you ultimately control the narrative.

YOU have the power to choose how you relate, engage, and connect with money. To reconcile your relationship with money. 

How’s your relationship with money currently? Is it supportive and empowering? Or stressful and avoidant? If the latter, what are you ready to let go of so that you can move on more powerfully?

A deeper relationship with money can take some time to develop, especially if you’ve experienced financial trauma or have deep-rooted limiting beliefs around money. Be patient and compassionate with yourself and take it step-by-step. 

4. Create a solid money management system

I find so much joy and pleasure in having radical financial awareness. 

I believe it’s one of the essential elements of successfully managing your personal finances. 

One of the core elements of radical financial awareness is clarity around how you manage your money. 

A solid money management system allows you to:

• Have more control of your finances and know exactly how and where to redirect your money.
• Track your progress towards your money goals.
• Plan for upcoming expenses like trips, moves, and other big investments. 

I highly recommend managing your money in a way that feels good and in alignment with you! 

For example, some of my clients enjoy logging their income and expenses in a bullet journal and getting all creative with its design. While I, on the other hand, prefer a well-structured and streamlined spreadsheet. 

Keep in mind that there’s not a one-size-fits-all approach to budgeting. It may take some time to find a system that works for you, so the key here is to pivot and try different methods instead of giving up! 

5. Organize your bank accounts

Instead of just having one checking account and one savings account, organize your finances into several accounts.

I have two personal checking accounts: one for my bills and one for my everyday spending. 

This helps me ensure I have what I need to pay my bills and see how much I can spend on my “wants.”

I also have one savings account with Ally, which allows me to divide my savings into separate categories without needing multiple savings accounts. 

You can create up to 10 different savings buckets within the same account and dedicate each one to a specific goal like a yearly trip, an opportunity fund (aka emergency fund except we plan for opportunities, not emergencies!), or a big move across the country. 

Keeping your money in separate bank accounts can offer you peace of mind and organization when it comes to your finances.

NOTE: Having multiple bank accounts can come with bank fees. You can reduce or eliminate bank fees by setting up direct deposit or banking with an online bank. Some of my favorite online banks are Ally, Discover, and Charles Schwab.

6. Automate your savings

One of the best things you can do for your financial health is build your savings and invest in your future. 

To do this, you need to make sure that you’re managing your money, paying yourself first, and transferring money into your investment accounts regularly. 

Establishing healthy money habits like these can feel overwhelming and challenging to navigate at first. This can lead to inaction, procrastination, or just straight-up giving up on our financial goals.

Setting up automatic transfers to your savings and investment accounts can help you effortlessly build your wealth and reach your goals.

Additionally, automating your finances can help you control your spending, pay off debt, and remove the stress of keeping up with due dates. 

Don’t know how much to save or invest? This is where a solid money management system (aka “budget”) comes in. 

7. Read a good money mindset or financial literacy book

If you’re someone who loves reading and immersing yourself in a good book, this one is especially for you!

An excellent money mindset book can offer you a new perspective on money and wealth, while a financial literacy book can give you the free education you need to create a solid financial foundation.

Two of my all-time favorites are I Will Teach You To Be Rich and Happy Pocket Full of Money.

8. Look at your bank accounts regularly

Checking your bank account regularly offers you clarity and helps you be more in control of your finances.

This may sound like an easy way to practice financial self-care, but it could be the most challenging and scariest thing to do if you’re feeling avoidant about your finances. 

If this is you, I encourage you to start small by carving out 10-20 minutes every week to check in on your spending. If doing this weekly is too much, maybe start biweekly or monthly.

Add this time to your calendar to remind yourself to check-in. 

The goal here is not to pressure yourself to master your money management but to ease your way into financial awareness. 

9. Invest

The best way to multiply your currency to reach financial independence and not have to trade your time for money forever is investing.

Whether you choose to invest in stocks, cryptocurrency, or real estate, begin by learning the basics! Then, continue to expand on that knowledge through hands-on experience. 

Having a basic understanding of how investing works will offer you more confidence and peace of mind at the start of your investing journey.

I’m also a huge proponent for asking questions and seeking guidance from others who are either professionals or people you trust and know have had success in this area. 

10. Pay yourself first

Paying yourself first is sending money to your savings and investments when you get paid BEFORE all the other mandatory or discretionary expenses kick in. 

I see many people make the mistake of “seeing how much is left” after bills and other expenses are paid to determine how much to save or invest. But if saving and investing is your goal, then this is not the most supportive way to reach it.

Instead of making paying yourself first a non-negotiable, you’re leaving it up to chance.

When we let external circumstances dictate whether we save or not, we’ll find that our savings goals become a lot more challenging to reach. 

YOU are your most significant investment so treat yourself like it by paying yourself first. 

Pro tip: Start with paying yourself 5-10% of your income and work your way up from there!

11. Celebrate the financial abundance in your life

When money shows up in your life, do you take a moment to celebrate it? 

Celebrating the financial abundance that comes into your life and bank account helps train your brain to look out for more of it!

The more we celebrate the things that we want to achieve, the more receptive we become to them.

It’s important to keep in mind that financial abundance doesn’t always look like a paycheck. It can also look like this:

• Receiving a discount
• Unexpected refunds
• Receiving gifts
• Landing paid opportunities like brand partnerships
• Affiliate sales and commission
• Getting a raise
• Bonuses

And so on. No matter how it shows up, it’s worthy of celebration. 

I invite you to celebrate in whatever way feels good for you next time you receive money!

12. Have regular money dates

Every Friday, I like to put on some sexy music, light incense, or a candle and get intimate with my finances. This is one of my absolute favorite weekly rituals! 

A money date is a time that you set aside to check in with your finances.

Some activities that you can do during your next money date are:

1. Create a money management system (aka budget) for the month or week.
2. Update your expense and income tracker.
3. Transfer money to your savings and/or investing accounts.
4. Make a gratitude list, listing everything that money has allowed for and provided for this month or week.
5. Journal on how you can strengthen your relationship with money.
6. Create a list of ways that you can call in more money this month.

The vibe and flow of your money date are entirely up to you. Just get creative and have fun with it!

13. Listen to a high-vibe money manifestation playlist

Music is such a potent tool that amplifies emotions within us. 

Listening to high-vibrational money manifestation music can bring feelings of abundance, gratitude, empowerment, and confidence into your body.

Plus, it’s just straight-up FUN.

I created this Spotify playlist (sorry, Apple users!) for you to vibe to whenever you desire! 

This can also be a great way to set the vibe for your next money date ;)

Money Management Is Self-Care

Having solid money habits and rituals is one of the pillars of financial wealth. 

It’s not always about the #biggains or quantum leaps (although we love these too), but about creating sustainable habits that will effortlessly fuel your wealth and deepen your relationship with money.

Take it step by step, day by day, and watch the results of your habits compound into MAGIC.

Be sure to try one of these practices for yourself and DM me on Instagram to let me know it goes!

From painting to candle making, so many viable businesses are turning hobbies into revenue streams. It makes sense to turn a passion into a career.

After all, if you find a job you love, you’ll never work again! Not to mention, those talents and skills you may have otherwise kept hidden can be shared and enjoyed by everyone! And who knows, there may be a real market for your type of products or services. 

While some hobbies might not be enough to turn into a full-time job or multimillion-dollar enterprise, they can be enough to give you some extra spending money!

How to turn a hobby into an income source

Here are some tips to turn your hobby into a business:

1. Research

If you have a special hobby or skill, try getting on the net to conduct market research. For example, if you are skilled in oil painting or like to create jewelry in your spare time, try doing a Google search or browse various online marketplaces such as Etsy and eBay for listings. See how they’re being marketed, what prices they are selling for, and your potential customer base. 

Conducting market research helps you study the available market and analyze the competition, giving you more selling potential once you start building your brand.

2. Make a business plan

Before you start monetizing your hobby, you need to create a plan. Do you need a website to market your goods?

If you’re a keen writer, should you look at posting adverts on websites such as Upwork or Fiverr? For those with hobbies in the arts & crafts field, you might gain greater success by starting an Etsy store or a Facebook or Instagram Business. 

The second half of your plan should also involve establishing your costs. How much will you sell your product or services for? How much do you need to set aside for things like postage or marketing?

Identifying a business plan and listing everything from your products and services, sales and marketing strategy, and a financial plan will help you jump into your brand development more easily and find a platform that will bring in more paying customers.

3. Build your brand

Take small steps when it comes to building your brand. You might want to market your products or services to your close friends or family first. This can help you test your concept and receive valuable feedback to market your product better. 

You can start by offering a free trial or pitch your idea to potential customers using a “no risk” strategy if you’re selling a service. For example, you can offer an article or blog post, marketing service, or graphic design concept for free in return for exposure or potential onboarding.

The proof is in the pudding. When you start marketing products or services that you believe in, the first real job is convincing people to believe in your product and services. So those early stages of building your brand should really be focused on marketing, word of mouth, advertising, and proving yourself until one sale is made, then two, then three, and so on.

4. Turn your skills into a career

What if your hobby isn’t a product but a skill?

For example, you might be a passionate horse rider who takes a keen interest in animals. You can take this love of caring for horses (or cats, dogs, fish – you name it!) and create a career out of it! For example, you could find a job in equine care, you could consider becoming a dog walker, or you could even become a farmhand.

The same thing applies if you’re an avid gardener. While you can grow, cultivate and sell your own vegetables, you can also turn this hobby into a paying career by working in a nursery or finding a job in horticulture.

Just because it’s a hobby doesn’t mean it can’t turn into a rewarding career! Try to let go of limiting beliefs and explore the potential your hobbies and passion projects have. 

It’s hard work, but it can pay off

Turning a hobby into a successful business doesn’t happen overnight. It takes a lot of time and dedication.

If you’re serious about turning your hobby into a revenue-producing side gig, then you have to start approaching your hobby as if it is your job. This means taking the time to cultivate your skills, research the industry and your competitors, learn about sales and marketing, and keep pitching your product via advertising or word of mouth.

If you’re good at what you do and there’s a market for your product, then you’re likely to make a nice profit and find great satisfaction in doing so. Play around with it, take the dive and see what happens! You might just find those skills you have really do pay off!

Despite their economic hardships, millennials have demonstrated healthy money-saving habits. This may in part be thanks to the fact they grew up with technology – allowing them to be savvy when it comes to cutting costs, spotting the best deals, and finding creative ways to save.

What ways? you ask.

Here are some of the tried and tested ways millennials are saving money:

1. Establishing goals

Establishing long-term goals is the best thing millennials can do in order to budget better and spend smarter. 

When a goal is big enough, taking the necessary steps to save for it becomes easier. For most millennials, common financial goals include:

• Paying off student debt
• Saving for a house
• Purchasing a car
• Travel
• Having more savings

Having financial goals to aim for can really set the stage for good money habits and a life of financial stability.

2.  Making a budget – and sticking to it

One of the more common money mistakes people make is forgetting to budget. 

Budgeting really comes down to being mindful of your spending habits. One of the easiest ways to set and stick to a budget is to monitor your monthly expenses in terms of incoming and outgoing cash. 

By being aware of how much you have, how much you owe, and how much you’re spending, you’re making it easier to know exactly what you’re dealing with. 

Millennials have been turning to budget apps and online budget planning calculator to keep track of their spending and calculate how much they need to put away into their savings and how much they need to stay on top of monthly bills. 

3. Automating finances

Technology plays a huge role in helping millennials save money. If there’s a financial need to be filled, there’s now an app to do it!

Automating your finances is just one of the tech-assisted things you can do to help save money.  

From automating deposits into a savings fund to signing up for automatic debits from your bank. This process of pre-planning your finances takes budgeting to the next step and is a clear-cut way of simplifying your bills and adding to your savings. It also gets rid of the temptation to spend your earnings before you budget and save. 

4. Saving where possible

Yes, millennials are aware of being dubbed the “smashed avocado generation” as a sarcastic nudge toward their sense of entitlement. Costly coffees, fancy brunch meals, and a penchant for finer things has earned millennials the reputation of being frivolous and often irresponsible with money.

Thankfully, the younger generation are bouncing back and are understanding the seriousness of saving. 

In fact, a recent survey by Bank of America found that 73% of millennials are saving more – and more than half (59%) of this generation have $15,000 or more in their savings account.

5. Having a side hustle

A lot of millennials have found creative ways to make more money. One of those is the side hustle.

If you have room in your schedule, or if you’re currently working part-time, think of ways you can source an extra income. Whether it’s selling your crafts on Etsy or pet-sitting of a weekend, having a job on the side keeps your savings healthy and helps you to purposefully utilize your free time.

For millennials who are students or who owe student loans, a side gig can be a great way to cover these school-related debts without having to severely dip into your main savings. 

Take the first step to save today

Millennials have had a rough start to their financial journey. However, creative thinking and the aid of technology has helped this generation become more savvy when it comes to spending and saving. Because of this, more young people are finding a sense of financial freedom or in the least, a more optimistic outlook on their financial futures. When it comes to money management for millennials, the key is to find solutions in the way of basic budgeting, tracking spending habits, and cutting costs wherever possible.

Millennials have many advantages in growing their financial habits, especially in the wake of this global pandemic. With more lockdowns, young people are forced to seriously look at where their money is going and realize they are able to cut costs or eliminate expenses in areas they previously splurged on such as going out, taking away, and gym memberships. 

Sounds amazing right? Let’s dive in…

First, Let’s chat about Passive Income. This is a popular buzzword we hear floating around the internet quite a bit lately. But, is it real? What does it even mean?

“Passive income is income that requires no effort to earn and maintain.”

Here’s the thing. This is kind of impossible. There is nothing that exists on this earth that requires NO effort to produce. However, there are low-effort options that do not depend on the hours you work to create cash flow. Instead of calling this passive income, I like to call it Exponential Income. 

“Exponential income is income produced from the impact you make rather than the hours you put in. The outcome of EI is exponential”. 

As a membership mentor who has helped clients create impactful passive and exponential income streams, here are some of my favorite methods and a few tips to maximize them!

Passive income/exponential income options for business owners & creatives

1. Evergreen courses 

This is a type of educational course you create & set up once, then run ads or marketing strategy too, that allows for a set it and forget it type of course model. Now, you’ll still need to advertise this course and submit updates as needed but this form of “Passive Income” is fairly passive!

2. Doors open & close course

Another educational course option with planned launch events. Many times entry to this type, of course, is only available in the launch window. It’s still a great option for passive income but will take some larger launch-week style planning & execution. 

3. Community membership

This type of membership can be a great option for business owners, creatives, hobbyists, or enthusiasts of any kind to connect. Some common topics are mom-based interest memberships, business-based interest memberships, and really anyone! The goal of community membership is to bring like-minded people together online, in-person, or both! 

4. Front end low-cost membership

This is one of my favorites! I love recommending front-end memberships to clients who have an audience who may not be quite ready to invest in their 1:1 or high-ticket offers. A front-end membership allows members the opportunity to learn and grow at a lower rate, in a group atmosphere, with dripped content. This is likely my very favorite way to serve the masses, make an impact and create true exponential income. 

5. Back-end support membership

Back-end support memberships are perfect for clients who have graduated from your program but still want access to you for support. This can be a long-term strategy you can use to create community & ensure your clients are wildly successful. 

6. Subscription boxes

If you’re in the product industry or would like to be, subscription boxes are an easy way to create consistent sales. They’re also an awesome financial projection tool. If you create hand-made goods or have a niche market (like brides or moms) this can be such a fun strategy to add to your business. 

7. Hybrid subscription (product + education)

Product + Education memberships aren’t something you see every day, but they’re a fun way to incentivize members, and maybe even create some buzz around your offer. An example of this would be something like a membership for moms that sends out a cute mom t-shirt or swag every month. When the packages are delivered, members love to share the goods on Instagram, so it works as a passive advertising strategy (UGC) as well!

8. E-book

E-books can be used as a quick pocket offer or a mini-course in PDF version. They’re great for growing your email list, while also making a small profit on each one. These are typically used to start the client journey, build trust & authority and give clients a small win. 

9. Stock photos for content creators

If you’re a photographer or content creator, selling your work with rights of use is a great way to create some quick cash on work you’ve already created! 

For any and everyone

Passive income is not just for business owners! Anyone who is looking to create a little extra cash or an entire income stream can do so through passive, or exponential income. 

10. Investing in the stock market

Investing is not just for the wealthy! You can start small, use apps on your phone, or hire an advisor to help you invest just about any amount of money consistently in the stock market.

11. Affiliate links

Who hasn’t swiped up to buy? I’m pretty sure we’ve all done it. Well, you don’t need to be an influencer or Blogger to make money from affiliate programs. Creating an amazon store is a great place to start, applying for like to know it, and partnering with some of your favorite brands directly are all easy options! You also don’t need the 10k swipe-up feature on Instagram to create income in this way, but you will have to talk about the products and make your links readily available to your audience.

12. Renting out your car on an app like Turo

Got a car you don’t use, or one you don’t use often? Renting your car on Turo is a great option for creating extra income. Think AirBNB, but for your car.

13. Investing in house flips

Not really a Chip and Joanna Gaines type? That’s ok, you can still flip properties! If you’ve got some cash to invest, you can partner with house flippers as a “silent partner” to create some passive income. There is some risk to this one, but it’s definitely one of the most passive options out there.

14. Rental properties

If you’ve recently inherited a property, downsized, or became an empty nester renting out your home could be a great option for you! To make this more passive, you’ll want to hire a property manager, but to maximize profits you can always manage the property yourself.

15. Air BNB

Another option for properties you own but don’t occupy – AIRBNB! Short-term rentals can be fun & super profitable! Especially when you include little extras like photo ops to help promote your listing for free! 

Now that we’ve got your wheels turning, I’d love to hear which option is most appealing to you? Let’s connect on Instagram and chat about all things passive income! If you need some help making the decision, you’ll find tons of resources there as well, and my inbox is always open!

When I told coworkers that I was completely debt-free – none of them believed me or denied that this was possible for someone so young to be debt-free.

It was harder to tell them, due to the fact that in our society, it is so common for someone to have huge sums of debt than to be debt-free.

Interestingly enough, they gave excuses for me (like the fact that I don’t have kids, etc., etc.) instead of congratulating me. (Maybe due to being in a toxic work environment or…) Maybe because it’s the fact that being in debt is more okay to our society than having freedom and being completely debt-free!

WHAT?! I’m here to show you it’s time to normalize freedom and especially financial freedom! 

$200k of Debt Paid Off in 3 Years

So in this post, I want to tell you all about paying off my $200k of debt in 3 years! 

Because that’s a lot of debt! I’m also going to explain how minimalism can help you with your money and at the end I’ll be giving away my secret to how I paid off my debt SO fast and how you can start too.

Now, $200,000 is A LOT of Debt.

So how did I end up in SO much debt? 

For a long time, I didn’t know what kind of job or career I wanted. Like many millennials I was checking off the boxes, the “should” boxes.

You know what they are:

get good grades so you can…

go to a good college/university so you can…

get a good job so you can…

buy a car and…

buy a house and…

have a good retirement.

I started checking off all these boxes and was fully in it. And also, fully in $200,000 in debt from student loans and a mortgage… 

But now that I had this house and life, I realized I wanted out of this societal trap of shoulds. I realized that I was only checking off these boxes because I should and not because I wanted to. 

Debt by Generation

• Gen Z: -$9,593⁠
• Millennials: -$78,396 ⁠
• Gen X: -$135,841⁠
• Baby Boomers: -$96,984⁠
• Silent Generation: -$40,925⁠

As shown in the graphic above, it is very apparent that our parents (I’m a millennial) have a lot of debt whether or not they are okay with it. Influencing the next generation (us, millennials) is not cool – especially not with something like debt! 

Due to the fact that it is so normal to be in debt, a lot of people are okay with having a mortgage to pay every single month or a car loan payment for the rest of their lives. This was not the case for me! 

Not another statistic! 

I was not okay with being another stat. Once I realized that I was doing all this because for some reason I thought I should – I wanted a way out! 

I wanted to be free. Free from the ‘shoulds’.

I wanted freedom. I didn’t want to be stressed out by this debt. And I surely didn’t want money to stress me out. I wanted to be in control of my finances. 

I also didn’t want to have to be limited when going out to eat or when deciding between having something or not – whether it was a plant to decorate my house or (expensive) avocados for my favorite avocado toast! #classicmillennial

I started by getting into self-help books and all the books on money management to self-educate myself (even though I did work at a big bank). And I decluttered my whole life after reading The Life Changing Magic of Tidying Up – which kickstarted my minimalism journey!

Clarity and ACTION

Because I was so clear that I didn’t want to be another person in debt forever. I took massive action, this included everything from educating myself to selling the things I didn’t want, taking on extra shifts, and also diversifying my income!

I was clear about the fact that I wanted to be free to travel and free to not have to choose between one item and another based on a budget.

What helped me on this debt-free journey

I was so determined to no longer have debt after five years of deciding I wanted to be debt-free. So I gave myself 5 years to get it together and make things work! 

Some of the things that helped me on this journey included: 

• Having a positive mindset 
• Believing in myself (but also taking the steps to prove to myself that I could do it) 
• Making good early decisions (For example, I did not get into more debt. When needing a new car, I purchased a used one instead.)
• I diversified my income! By getting a second job! 

What did I want? 

Due to the fact that for so long I was following society’s shoulds. I lost what I actually wanted for myself.  So at the same time that I was trying to pay off my huge amounts of debt, I was also trying to figure out what exactly I wanted. I became obsessed over figuring this out, so *insert a lot of self-help books, courses, and learning from all the money gurus!*

One thing was clear:

I wanted to not have any debt as soon as possible. 

And I wanted to learn about how I could make my money work for me! Now, let me tell you it wasn’t easy but I figured it out. 

If you are also craving this..

You can download my secret to see what I figured out. >>> MY SECRET

My results: 

Because I was able to learn so much, diving headfirst into all the books and courses I could get my hands on. 

I was able to pay off my debt of $200,000 in 3 years!

And ALSO because of this, I was able to have the freedom to quit my (“career” type) job, backpack throughout Australia with my boyfriend, and go on last-minute trips to places like New York and Costa Rica! 

I was also able to explore new passions that allowed me even more freedom like working online and finding other things I enjoy. And ultimately living the way I want to live.

I discovered that through my experience I actually really love all things money, money management, and minimalism – all the things that helped me on my journey to becoming debt-free.

The catalyst to my freedom was my money management, but I truly believe that having your finances in order and feeling good about them will help create more happiness and fulfillment for you too!

Related article: Money Lessons I Wish I Knew In My 20s

What I now teach others

Using all of the information that I learned over the years, my corporate experience and my experience, and my knowledge working at a bank – I now help new online entrepreneurs create personal and business finances that complement each other. 

Because I believe that your finances ultimately determine how you can live your life, run your business, and have the freedom to pursue your dreams.

In my coaching, I focus on how your money management can spark joy (money minimalism), create more happiness for your life and so you no longer feel limited or intimidated by your finances.

Money and minimalism

Why I teach about money and minimalism, other than the fact that money minimalism played a huge role in my debt payoff success – I also believe the techniques and methods taught about minimalism will help you too! 

Minimalism isn’t just about having zero possessions. I believe the blog Becoming Minimalist, defined Minimalism so well:  

“It is marked by clarity, purpose, and intentionality. At its core, being a minimalist means intentionally promoting the things we most value and removing everything that distracts us from it.”

The Ways in Which Minimalism Helped Me Become Debt-Free

1. I got clear. I knew what I wanted (to be debt-free)
2. I got rid of A LOT of things. I was able to sell these things too. Thus, I was able to appreciate more of what I had and also not want to purchase more things. 
3. And overall simplifying things!

Beyond the Money

Money was a huge catalyst for my growth, happiness, freedom, and overall improving my quality of life as well as how I viewed my life! 

Because I was able to quickly pay off my debt, I am living breathing proof that your current money situation shouldn’t feel impossible. If I can do it, so can you!

I was not a high-income earner, I had two minimum wage jobs for most of my debt payoff! 

But what I did have was the determination and willingness to make some sacrifices and learn more each day, and the belief that I could do it!

Although what I did lack was guidance, support, and accountability which is now what I provide my clients along with my knowledge and expertise! 

My hope is that my story will inspire a spark in you to better your money situation! :) Whether someone’s in debt, living paycheck to paycheck, or if you just want to make your money work for you! 

If you are looking to get started right now, you can learn my secret and how to begin your financial journey.

Download my secret debt-free blueprint.

The Holy Grail of most working professionals’ annual earning aspirations. The pinnacle of achievement. A sum that we equate with wealth, success, and even happiness. Something most Americans desire but only 9% of us will ever achieve. An amount a person may spend her entire career working toward… Except for me.

With my $10k signing bonus, my $70k annual salary, and my $55k end-of-year bonus, I earned a total of $135,000 my first year out of college.

I was 23-years-old.

A PSA on the value of money

Now, before you start swearing at me under your breath or rolling your eyes and assuming this is just another “money doesn’t buy happiness” piece, just breathe. The truth about money, as with most things in life, is that its value is relative. If you’re making $30k per year and living comfortably, then a higher salary is a nice-to-have. If you’re making $30k per year and living below the poverty line, then a higher salary is a necessity.

The greatest truth of all? There is almost no way to convince a person who has never made six-figures that more money is not the sustainable route to liking your job, feeling less stressed, or enjoying your life. This is especially true if you don’t already like your job, feel good, and enjoy life currently. That’s why I’m not even going to try.

I’m also not going to sit here and tell you that money is evil and loving your job will make up for financial instability. In fact, it is my humble opinion that having money is better than being broke. The problem with money is not that we think we need it when we don’t. The problem is that we heavily and misguided outweigh the impact that more money will have on our overall happiness and wellbeing.

The startling reality is that other factors that are inherently less flashy than dollar signs are the true indicators and predictors of long-term, sustainable success and stability. Does a raise feel good? Yes! But is a raise going to feel as good as you believe? And will this feeling last as long as you expect? Unfortunately, no.

But while I had to learn these lessons firsthand, it’s my hope that by sharing my experiences you can dodge these bullets altogether. Remember, money is not the enemy. It’s just not exactly what it’s cracked up to be.

My early career journey 

In the fall of 2012, I was a shell of myself. Two and a half years in sales on a Wall Street trading floor had taken its toll. Stressful days gave way to wine-soaked happy hours. Anxiety-ridden evenings at the beck and call of a Blackberry (remember those?) led to insomnia or my personal favorite secret weapon, self-medicating with NyQuil.

I had many frustrations at this early point in my career, but two of them stood well above the others:

1. I had ZERO idea what I really wanted to do with my career and,
2. I felt completely and irrevocably STUCK in my soul-sucking job.

Thus, my unhealthy and ineffective cycle continued. If I carved out even an hour to think about my ideal career, I always ended that time more anxious and confused than when I started. After all, you can’t simply force clarity on yourself. Attempting to do so is the mental equivalent of a cardiothoracic surgeon performing her own open-heart procedure—messy, lacking in perspective, and ultimately, disastrous.

My professional epiphany

One of my favorite concepts in psychology is cognitive dissonance. It’s the idea that our thoughts and beliefs cannot exist in opposition to our behaviors and actions without causing distress. In layman’s terms: we’re not good at being divided. You can’t stay in a job you tolerate (much less hate!) for very long without either losing your mind or accepting your reality as an inescapable truth.

One day I was walking on the 8th floor balcony with one of my colleagues. I noticed that several men were working repairing the bridge next to the building. Before I could even finish drawing his attention in that direction, he started gushing to me about how he had studied engineering in college and loved construction. Once he had wrapped up his bridge soliloquy, he confided in me that the only reason he was working in finance is because that’s “what successful people do” and he thought it was the best way to make money.

I don’t think many of us realize that these are the real stakes of our career decisions. We put off finding purpose and fulfilling our potential for the next promotion or raise in salary. I mean, what’s five more years, right? Or three? Or two?

This is where cognitive dissonance becomes key. Change your behavior or change your belief. One has to give. Stay in the wrong place long enough, and you begin to accept your situation as fate. You may even forget about that purpose or passion that once fueled your beliefs.

My favorite lessons for career clarity seekers

The irony of pursuing success is that you have to experience unsustainable success to really know what’s going to make you happy long term. As someone who experienced one of our well-accepted societal definitions of career “success” — I can tell you, unequivocally, this one truth about your career:

No amount of success on paper will ever make an unsustainable career a better fit for you.

If you’re not already on the path of pursuing purposeful and meaningful work, you’re on the path to burnout, self-medication, anxiety, and stress. No change in salary, status, or any other shiny object is going to alleviate the fundamental fact that you were made for something else—something better for you, something more impactful, and ultimately, something more sustainable.

I didn’t experience a true career fit and the satisfaction (and salary!) that comes with it until I was 29 years old. While that felt really late to me, I know I’m one of the lucky ones. Every day in my career clarity program we see clients who are 30… 40… 50… even 60… who have never experienced work they love. But what they lack in clarity is something we can fix.

Something that’s harder to fix is disbelief.

So, what will you choose to believe? That you have to accept your fate and work in misery? Or that you can fight for and achieve clarity? That you can actually have work you love that pays what you’re worth or that the only route to “success” is one that will require you to make significant concessions in happiness and wellbeing?

I’ve lived on both branches of this decision tree. I know in my heart we all have a purpose in this world and I believe we can fulfill that purpose professionally. If you need to borrow my confidence, do it! That nagging feeling you’re made for more is there for a reason.

Ultimately, I quit my job on Wall Street armed only with the belief that I could find my true career clarity. What will you choose to believe?

The word sage describes someone who has become wise through reflection and experience. If you give someone “sage advice,” you’re imparting insights gained through your own observations and personal experiences. Because experience comes with the passage of time, we sometimes assume that only an older woman can be a true Sage. But the Sage is not confined by chronological age, as even the young can be wise.

Below is a brief profile about this incredible woman as well as some guided questions and exercises to help you draw out the sage from within. For more trailblazing women and useful exercises, I hope that you check out my new book FOUR FACES OF FEMINININITY.

“Don’t sit down and wait for the opportunities to come. Get up and make them!” – Madam C.J. Walker

For a woman who got famous by helping others feel beautiful, Madam C. J. Walker’s story is less glamorous than you might expect. But although she faced early struggles, this wise inventor and businesswoman was never ashamed of her humble roots. Addressing a business convention, she said: “I am a woman who came from the cotton fields of the South. From there I was promoted to the washtub.

From there I was promoted to the cook kitchen. And from there I promoted myself into the business of manufacturing hair goods and preparations. . . I have built my own factory on my own ground.”

It’s no exaggeration to say Madam Walker created a business empire from less than nothing. But it didn’t happen overnight; it took a winding path to earn her celebrated title of America’s first female self-made millionaire. Before she was Madam Walker, Sarah Breedlove was born the youngest of six children to Louisiana sharecroppers, the only one in her family born into freedom after the signing of the Emancipation Proclamation. By the age of seven, she’d lost both parents. By twenty, she’d gotten married, given birth to a beautiful daughter, and become a widow. With nothing left to lose, Sarah packed her bags and headed north with her daughter to St. Louis, where she spent many years working as a laundress.

When her hair began to fall out due to scalp conditions common to African American women of her time, she drew on her grounded, inner Sage. A logical woman by nature, she explored all her options, including a variety of home remedies. She even worked as a saleswoman for a hair-growth-serum company to continue her research. As it turned out, her breakthrough didn’t come from a bottle or beauty shop but, as she related the story, was delivered to her in a dream. When she woke up, she trusted her inner instincts and ordered the products she’d dreamed about. She crafted her own formula, tried it out, and before long her hair was growing faster than ever. She’d found her calling.

Soon after, she moved to Denver, where she met and married journalist Charles Joseph Walker. She took his name, also lending it to her product line. Dubbed “The Walker System,” it included shampoo, pomade, and a hot comb. To promote these products and showcase the sleek, shiny hair they created, Madam Walker did door-to-door sales and demonstrations. The Walker System was soon in high demand.

In the following years, Madam Walker split with her husband but kept his moniker, as the business was thriving. The company had factories, salons, and training sites all over the East Coast and continued to grow at an amazing rate.

It was during these years that Madam Walker began enjoying the benefits of her empire, driving luxurious cars and moving into a beautiful home outside Manhattan. Although she’d become dazzlingly wealthy, she always sought to spread her good fortune around. Even at the height of her success, Madam Walker remembered where she came from, donating time and resources to causes close to her heart and encouraging her legions of employees to do the same. She gave generously to up-and-coming musicians; donated to establish a black YMCA in Indianapolis, where her company was headquartered for many years; and funded anti-lynching efforts.

In just a few years, Madam Walker shattered the standards of what was possible for a black woman in America. This savvy inventor faced more obstacles than most and conquered them all with intelligence and conviction.

Here are some guiding questions and exercises that will help you understand and access the Sage within you:

1. Who is the wisest person you know? We tend to associate wisdom with old age, and it’s true that people who have lived long, full lives are often insightful and observant, but sometimes younger people can be just as astute. Think of someone in your own life who is truly wise and explain how that wisdom manifests.
2. Do you trust your intuition? Listen to your gut? If you get a bad feeling about a person or situation, do you allow yourself to bail? If you’re truly excited about a project or endeavor, do you dive in? Why or why not? How could you allow yourself to cultivate that trust even more?
3. What aspects of your spirituality guide your life? If you don’t consider yourself a spiritual person, do you believe in concepts like luck, fate, or karma? How do these influence you and coexist with your rational side?
4. Think about a time when you felt disconnected from your intuitive, spiritual, wise self. What happened that made you feel as you did? If you could hop in a time machine and advise your past self in that moment, what would you say?

Exercise:

Wisdom is different than intelligence. You can gather intelligence through study, but wisdom comes from time and experience, too. Write about something you know now that you didn’t know last year. And I don’t mean, “I learned how to poach an egg.” Pick something deeply personal, something universal, or both—something that speaks, “wisdom.” Then pick something you know now that you didn’t know five, ten, or fifteen years ago. If you enjoy this journey of discovery, consider interviewing women in your life and asking them to share the most valuable wisdom they’ve acquired over the years.

Exercise:

Tap your intuition by focusing on your inner life. Sit quietly with a pen and paper and meditate on these questions:

1. What do I need right now?
2. What should I let go of right now?

Don’t think too hard before you begin writing; just list anything that floats into your mind. Put your list or essay aside for five to seven days and then read it. What rings true? What was driven by something in the moment that distracted you? Use another aspect of your Sage self—wisdom—to sort truth from invention. Then, make a plan to add or subtract elements from your life, as your intuition advised you to do.

Excerpt from Four Faces of Femininity by Barbara McNally. © 2020 by Barbara McNally. She Writes Press, a division of SparkPoint Studio, LLC.

The good news is that budgeting doesn’t have to restrict you. In reality, they give you freedom, because they give you permission to spend money on the things you want to spend money on as long as you’ve already budgeted for the things you have to spend money on.

Even if you’re convinced that budgeting is a good idea, you might not be sure how to get started. After all, budgeting is all about telling your money where to go. But how can we do that if we don’t know where it should be going?

Luckily there are a few budgeting systems out there that provide guidance for aspiring budgeters to figure out where they should be spending their hard-earned money every month. 

1. 50/30/20 Budget

Do you ever struggle to figure out how much of your money should be going toward wants versus needs? Plenty of budgeting gurus today like to guilt us for spending money on lattes, but surely it’s okay to spend some of our money on things that bring us joy?

That’s where the 50/30/20 budget comes in. 

This budget breaks down exactly what percentage of your income you should be spending on wants, needs, and savings. It helps to make sure you’re putting enough money aside for bills and savings but also lets you spend money on yourself without beating yourself up about it later. 

Under the 50/30/20 budget, the first 50% of your income goes toward needs. This category includes your regular monthly bills like your rent, insurance, utilities, cell phone, and groceries. 

The next 30% of your income goes toward wants. This category is anything you don’t have to spend money on, but you want to. It includes eating out, clothes, makeup, home decor, monthly subscriptions, and any other fun or entertainment you spend money on. 

The final 20% of your income goes toward savings and debt. This category includes those pesky student loan payments we’ve all got, as well as credit cards and other debt. It also includes money going into savings. This would be your emergency fund, as well as any long-term savings goals you’re working toward like that vacation you’ve been dreaming of. 

The fact that this budgeting system is based on a percentage of income instead of a flat amount means you can easily adapt it to fit your income level. It also leaves a lot of flexibility to spend your money where it does the most for you. 

The downside of this method is that it’s not great for people with a lot of debt. Someone with a huge amount of student loan debt might be spending nearly 20% of their monthly income on debt, which doesn’t leave much room for saving. 

This method also might be challenging for people living in a region with a high cost of living. In some parts of the country, you might just not be able to get away with only spending 50% of your monthly income on needs. 

2. Envelope System

Chances are that most of us have put together a budget at some point, and then completely failed to follow it. Swiping your debit or credit card can make it easy to lose track of how much you’re actually spending. Not to mention, it’s easy to justify going just a little over budget. But that “just a little bit” adds up a lot over time. 

The envelope budgeting system is one that encourages you to use cash. At the beginning of the month, you take out the cash you’ll need for all of that month’s spending. 

Each spending category gets its own envelope for the money budgeted. And once the money is gone, it’s gone. Sure, you can pull money out of one envelope to make up for a shortfall in another. But you can only spend as much cash as you’ve got in your purse. 

A big downside to this budgeting system is that plenty of people don’t carry cash these days. There’s also a security issue with carrying cash. If you lose your debit card, you can have the bank shut it down and issue you a new one. If you lose $1,000 in cash, it’s gone.

3. Pay Yourself First

How many times have you told yourself you’d put any leftover money into your savings account at the end of the money, only to find you had spent it all by then? If you struggle to put into your savings account every month, then this budgeting trick is probably exactly what you need. 

Under the ‘pay yourself first’ budgeting method, transferring money into your savings account is the very first thing you do with your money every month. Instead of saving what you have left after spending, it requires that you only spend what you have left after saving. 

Way too many of us are neglecting our emergency fund, so now more than ever we need to start paying ourselves first.

The one challenge with this budget might come for those with an irregular income, who genuinely don’t know how much they’ll be able to put into savings each month after paying their bills.

4. Zero-Based Budget

The zero-based budget is one where every dollar gets a job. As soon as you have money come into your bank account, you tell it where to go. 

This budgeting system is great for people who tend to overspend in one or more of their spending categories. It’s easy to tell yourself that the money is there, so why not spend it?

Well, in the zero-based budget, the money isn’t there anymore because it’s already been budgeted for something else. 

The struggle with this budgeting system is that you’re only budgeting with money you already have. For people who live paycheck-to-paycheck, this can make it really difficult to plan ahead with your budget. It’s also a very hands-on type of budgeting, which is a struggle for plenty of people.

Which budgeting system is right for you?

So how do we know which budgeting system is best? In the end, the best budget for you is the budget you stick to. Take some time to experiment with the different budgeting methods to see which works best with your lifestyle. 

The other good news is that you can do a combination of these! Each of these strategies is one piece of the puzzle that you can use in combination with the others.

You set your own work hours, you negotiate your own deadlines, and more often than not, freelance projects are a labor of love. People tend to freelance in fields that they’re passionate about, so these jobs are more fulfilling moneymakers. What a perfect setup! 

However, even though you’re your own boss, it’s not smooth sailing all the time. Some issues are ones you can solve on your own, like lack of motivation, being stuck in a rut, needing to adjust your workload, etc. These are things you have control over. 

But some issues are more complicated because there’s an unpredictable, free-floating radical in the mix: the client. Without clients, there is no freelance work. You could be the perfect freelancer: let’s say you never miss a deadline, they always love your final product, your pricing is fair, and you’re a great communicator.

Even with these great qualities and more, problems with clients can still crop up unexpectedly. 

So how do you keep clients happy while also staying true to yourself and your work? How can you set and keep reasonable boundaries for all parties?

The freelancer-client relationship can be a tricky one to navigate sometimes, but we’ve got some tips for all stages of the process.

The Beginning

The first-impression stage is how you set the tone of the relationship for both you and the client. You’ve come into contact and verbally (or in an unofficial form of written communication) agreed to work together. It’s safe to assume that in most cases, your goals are the same: both parties are hoping to like the final product and to like each other, and possibly even work together long-term if everything goes well. 

Entering a freelancer-client relationship also takes some trust on both sides. Neither of you wants to be taken advantage of, and the easiest way to make sure this doesn’t happen is to create a written agreement or contract outlining the work to be done, the timeline for the project, and the agreed-upon payment method, price, and deadline.

If it fits your project, you should also include in the agreement what will happen if your client sends the finished product back to you for edits. How many times can they send it back? How much will you charge for the extra work? 

If your client doesn’t want to sign a written agreement, be wary. This agreement will help if you need to take legal action for whatever reason down the road (for both you and your client), and if they don’t want to sign it, then they may not be planning on holding up their end of the deal.

Lastly, this doesn’t necessarily need to go into the contract, but if it makes you more comfortable, you can put it there: your working hours.

Some of us don’t plan our days hour by hour, and we jump between projects frequently, especially if we’re working for more than one client at a time – so don’t promise specific time availability if you don’t have it.

But you can at least tell them (preferably in writing) when you aren’t reachable. For example, if you don’t check emails or take work calls between the hours of 8 pm and 8 am, if you don’t work on Sundays, etc.

This will put it all out in the open at the beginning so hopefully, your client won’t be frantically calling at 11 pm, pushing you for edits to be done by 8 am the next morning. 

Just because you set your hours doesn’t mean you should be expected to drop other personal commitments and sacrifice your sleep and mental health to satisfy clients. Set your boundaries early, so it’s not a surprise if something comes up later. If they don’t like it, they can find a different freelancer.

The Middle of the Project

So, you’re doing the work you agreed to do. Hopefully, all this entails in regards to boundaries is enforcing the ones you’ve already set up at the beginning of the relationship. Still, unexpected things can happen.

Maybe you have a question or you need your client to send you more information or files – reach out and ask. If they don’t respond, keep asking and do as much as you can without it, so you’re not scrambling before the deadline.

If it’s essential, reach out again and let them know if they don’t send whatever it is by a certain date/time, you cannot continue without it. Always be clear and firm in your communication. 

If you find that a client is demanding unrealistic deadlines or requests, let them know that the timeline isn’t realistic and the reasons why. You can also point back to the terms you agreed on.

If they continue pushing or start threatening, tell them you are working on projects for other clients as well and that you need more time and suggest another date. Make sure you have that signed copy of the written agreement if your client tries to pull something shady.

Don’t let your client push you. Don’t give in on your boundaries because if you do, they will push you to do the same thing in the future. Stay firm in what you agreed upon, as this will either earn you respect or your client will go find someone else (which is fine because you no longer have to deal with the stress of them disrespecting your boundaries). 

The conclusion of the project

So you’re done with your work and you’re turning in the final product. Now what? Well, hopefully, it’s payday.

First, your client may decide to change something – which is okay as long as it’s within the parameters you set for extra work at the beginning of the project (if it’s not let them know and you can decide how to proceed). Once the final product of the project is agreed upon, you’ll send your invoice. Now all you have to do is wait. 

Payment is the part where a lot of my clients try to get tricky. They either tell me that they want to pay less, or they conveniently forget to answer the reminder messages I send the day before the payment deadline. 

When someone asks to pay less than the price we agreed upon, the answer is always no. If some catastrophic event happened and they want to pay in installments instead, that’s fine, but otherwise, I insist on having it all at the same time.

Some clients may ask for an extension. Depending on how long it is and how badly you need the money, that’s your call. If you do decide to extend their payment deadline, make sure you set a limit on the number of extensions they can ask for, or they will keep trying to do this until you eventually forget about it. I usually don’t give extensions (because they typically ask after they’re already late and therefore have created their own extension), and in special cases, I only give one.

Other clients will go completely silent when it’s time to pay. Instead of asking for an extension, they won’t say anything and hope you don’t notice. They won’t respond to your calls, messages, or emails until it’s convenient for them, if at all. 

After the deadline has already passed, they may say “oh sorry, it’s been a busy week! I will have it done ASAP.” This isn’t ideal but it usually means they’re at least planning to pay you at some point. Tell them that’s fine but to be mindful of the deadline next time.

Maybe you put a late fee into the agreement you signed – if so, add that to the invoice. If it’s a long-term client, I usually set a “dealbreaker” limit. In my contracts, I put limits on how many late payments I will tolerate before I end our cooperation. For example, three consecutive late payments and our collaboration is suspended.

It’s stressful to be chasing people down for money all the time. You have better things to be doing, such as freelance work for better, more respectful clients. If they don’t like you enforcing the written agreement when it comes to the payment, speak to a lawyer if you can. As long as you can prove that you’ve upheld your end of the deal, you will be fine. Even just the mention of a lawyer will get some clients to pay up pretty fast.

Other than the payment, the end of the project should be smooth sailing as the work is done. Hopefully, you can even cultivate a long-term working relationship with the client or get them to leave you a review to help you land new jobs.

Got a tip to add that we didn’t mention? Let us know!