10 steps towards financial wholeness | Tiffany Aliche
Nov 21, 2023
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Financial educator and bestselling author Tiffany Aliche shares 10 steps towards financial wholeness, including budgeting, side hustle tips, building a financial team, insurance importance, and finding the right financial advisor. She discusses her personal experiences with scams and financial struggles, and emphasizes the significance of balancing work and family.
Financial wholeness focuses on mastering ten key components of personal finance to ensure stability and a good quality of life, rather than solely on attaining wealth and financial freedom.
Creating a budget is crucial for achieving financial wholeness as it helps individuals take control of their money, make intentional decisions, and align their spending with their goals and values.
Increasing income through negotiation, side hustles, and skill development is an essential aspect of financial wholeness, as it provides more opportunities for achieving financial stability and reaching goals.
Teaching children about money from a young age and gradually introducing budgeting principles and financial team concepts can help instill financial responsibility and independence in them.
Deep dives
The Importance of Financial Wholeness
Financial wholeness is a term coined by Tiffany Aliche, founder of the Budgetnista, as an inclusive and realistic alternative to financial freedom. While financial freedom focuses on attaining a certain amount of wealth and not having to work anymore, financial wholeness emphasizes mastering ten key components of personal finance to ensure stability and a good quality of life. These components include budgeting, savings, credit, debt management, learning to earn, retirement and wealth investing, insurance, creating a financial team, net worth, and estate planning. By focusing on these aspects, individuals can achieve financial stability, take care of their families, and leave a legacy, even if they don't become millionaires.
The Power of Budgeting
Budgeting is the foundational step towards financial wholeness. Creating a budget helps individuals take control of their money and make intentional decisions about their spending. A budget serves as a roadmap, allowing people to allocate their income towards bills, savings, and spending in a way that aligns with their goals and values. Automating the budget helps reduce stress and ensures that bills are paid on time. Budgeting is not about saying no to everything, but rather about making conscious choices and having a plan to achieve the things that are important to you.
Increasing Income and Automating Savings
Increasing one's income is an important aspect of financial wholeness, whether through negotiating a raise, exploring side hustles, or learning new skills. Automated savings is another key factor in achieving financial wholeness. By setting up automatic transfers to a high-yield savings account or retirement account, individuals can build a savings cushion and work towards their financial goals. Automating bill payments also helps ensure that bills are paid on time and avoid late fees.
Teaching Kids About Money
Teaching children about money from a young age sets them up for financial success. Starting with basic concepts like the exchange of money for goods and introducing the idea of savings can lay a strong foundation. As kids grow older, parents can gradually introduce budgeting principles, allowance, and financial team concepts. By aligning money lessons with their children's goals and interests, parents can help instill financial responsibility and independence.
Financial Independence and Partnership
In the podcast episode, the speaker discusses the importance of financial independence within a partnership. They emphasize that both partners should have enough money to take care of themselves and their responsibilities. This ensures that if one partner is unable to contribute financially, the other partner can still manage on their own. They suggest having separate checking and savings accounts for personal and joint expenses, as well as individual and joint investment accounts.
Preparing for Financial Independence
The episode also explores the scenario of one partner staying at home to raise children and the importance of ensuring their financial independence. The speaker recommends having money set aside for the stay-at-home partner to cover their own expenses and have financial security in case the partnership ends. They stress the need for open financial conversations and setting aside money specifically for the stay-at-home partner's personal use.
The Importance of Financial Planning and Support
The speaker shares their personal experience of seeking financial advice and working with a financial planner. They highlight the importance of having a financial plan tailored to one's goals and making informed decisions based on the planner's guidance. They also mention the need for finding a financial advisor who is willing to answer questions and not push their own agenda. Lastly, they stress the significance of having insurance, creating a plan for assets, and documenting important financial information to prepare for any unforeseen circumstances.
#59: Tiffany “The Budgetnista” Aliche, is a financial educator and New York Times bestselling author of ‘Get Good with Money’. In this episode you will learn:
• The difference between financial freedom and financial wholeness
• 10 steps towards financial wholeness
• The financial scam to avoid
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