6 Things I NO LONGER DO as a Financially Literate Girly | Money Mindset Shift

Summary

In this insightful video, the speaker shares her journey towards financial literacy and empowerment, outlining six practices she avoids to maintain financial stability. She emphasizes the importance of not maximizing spending, avoiding disposable items, resisting lifestyle inflation, investing wisely, not comparing her financial journey to others, and questioning societal norms. Her approach to personal finance is both intentional and sustainable, aiming for financial freedom and independence without compromising on life's essentials.

Takeaways

• 💰 Maximize financial wisdom by not stretching finances to the limit, especially for significant purchases like homes.
• 🏠 Avoid the common trap of living paycheck to paycheck by not taking the maximum mortgage loan.
• 💡 Be aware of additional expenses beyond the mortgage, such as taxes, condo fees, and maintenance costs.
• 🚫 Stop wasting money on disposable items and opt for sustainable or reusable alternatives to save money and reduce waste.
• 👗 Use personal examples, like switching to a menstrual cup, to demonstrate how sustainable choices can save money.
• 🛍️ Resist lifestyle inflation by not increasing spending proportionately with income growth and questioning the need for new purchases.
• 💸 Use tricks like thrifting or setting a maximum spending limit to save money and invest the difference in a portfolio.
• 📈 Embrace investing as a crucial part of financial literacy and start small to build wealth and work towards financial independence.
• 🤝 Do not compare your financial journey to others, as everyone's goals and paths are unique.
• 🧐 Question societal norms and actively live according to your values and aspirations, rather than passively accepting what society dictates.
• 💡 Financial literacy is a transformative and empowering journey that teaches as much about what to avoid as about what to pursue.

Q & A

What is the main focus of the speaker's journey in personal finance?

The speaker focuses on financial literacy and empowerment by avoiding certain practices that can lead to financial stress and instead adopting habits that promote intentional and fulfilling living.

Why is it important not to maximize spending according to the speaker?

Maximizing spending, especially on significant purchases like houses, can lead to living paycheck to paycheck and financial stress, leaving no room for unexpected expenses or financial freedom.

What is the 'welcome tax' mentioned in the script, and how does it affect the speaker's decision-making?

The 'welcome tax' is a significant sum of money that must be paid shortly after purchasing a property in Canada. It influenced the speaker's decision to avoid spending the maximum mortgage loan to prevent financial strain.

How does the speaker avoid falling into the trap of lifestyle inflation?

The speaker resists the temptation to increase spending proportionately with income growth. Instead of using additional income to upgrade their lifestyle, they focus on investing in their future and maintaining financial well-being.

What strategy does the speaker use to combat lifestyle inflation and save money?

The speaker sets a maximum amount they are willing to spend on a desired item and seeks to find it at a lower cost, thrifting or finding it secondhand. The difference is then invested, turning the act of saving into a game.

Why did the speaker choose not to invest in disposable items?

The speaker avoids disposable items to promote sustainability and save money in the long run. They opt for reusable or sustainable alternatives that can reduce waste and lead to greater financial savings.

How does the speaker approach investing in their financial future?

The speaker emphasizes the importance of investing as a non-negotiable part of their financial strategy. They start small, educate themselves, and seek advice to ensure they are making informed investment decisions.

What is the speaker's perspective on comparing one's financial journey to others?

The speaker advises against comparing one's financial journey to others, especially on social media, as it can lead to unrealistic expectations and stress. Instead, they encourage focusing on personal financial goals and progress.

Why is it important for the speaker to question societal norms regarding personal finance?

Questioning societal norms allows the speaker to ensure that their financial decisions align with their values and aspirations. It helps them avoid making choices that do not contribute to the life they want to lead.

What is the speaker's advice for those on a journey to financial literacy?

The speaker encourages considering which practices to leave behind to move forward more confidently and intentionally. They also suggest embracing financial savvy as a means to gain independence and the freedom to choose.