The #1 Financial Literacy Rule

Financial literacy is a crucial life skill that rich parents teach their children 💸 🚨 But there is one financial literacy rule everyone should know: live below your means. 

To anyone out there watching this who is surviving paycheck to paycheck 💳— this isn’t applicable to you at this moment. You need to focus on increasing your income 📈, then focus on saving, investing & paying down debt.

But for anyone who’s bought an espresso martini 🍸 in the past 6 weeks — pay attention! So so many people can easily live below their means by simply being a tad 🤏🏼 more intentional about their purchasing decisions.

The Startling Reality: NBA Players and Financial Woes:

In the 2021-2022 season, the average NBA player enjoyed a staggering income of around $8 million 🏀⛹️‍♀️ While this figure might seem like a ticket to lifelong financial security, the shocking truth is that a more than half of NBA players face financial difficulties within just a few years of retirement 🤯

Statistics reveal that an astonishing 60-65% of NBA players go broke within the first five years of leaving the league ✋🏼 Reaffirming that high income alone does not guarantee financial stability.

Living Below Your Means:

Living below your means means spending less than you earn. It's a simple yet powerful principle that has been practiced by financially savvy individuals throughout history 🏦🔎 Rather than succumbing to lifestyle inflation – the tendency to spend more as you earn more – living below your means advocates a prudent approach to finances.

Here's how you can make it work:

1. Budget Wisely:

Create a budget that tracks your income and expenses 📥 Prioritize essential expenditures, savings, and investments.

2. Avoid Debt:

Be cautious about taking on excessive debt, especially for non-essential items. Focus on paying down existing debts 💰🧾

3. Save and Invest:

Allocate a portion of your income to savings and investments ✍🏼🏡Consider income-generating assets like stocks, real estate, or a small business.

4. Frugal Living: 

Embrace frugality by making smart choices about spending. Differentiate between needs and wants ✔️❌

5. Emergency Fund:

Build an emergency fund to cover unexpected expenses without derailing your financial plans ⚠️

6. Retirement Planning:

Contribute to retirement accounts like 401(k)s and IRAs, ensuring you secure your financial future 📈

Some of y’all don’t even have to change your life too much!! 👀 Cancel that gym membership you never use, negotiate your car insurance, ask for a raise!

If you focus on:

1. Increasing your income (upskilling, asking for a raise, freelancing, etc.) 🤑

2. Living below your means ⬇️

3. Investing/saving the difference 🫱🏻‍🫲🏼

You can let out a huge sigh of relief knowing that you are on top of your shtuff 👏

Want to work from home and set your own work hours? Have you considered freelancing? Well I have a cheat sheet for everything: clients, invoicing, accounting, workflow, pitching, marketing, taxes, healthcare, etc! Alllll in my 115+ page How To Freelance Guide ✨📖 You got this!!