This past week was a giant leap in my area of Oola Finance. I took my dreams a step further. I did it without much thought other than the fact that I wanted to reach my financial goals. And yes, I am leaps and bounds ahead of where I thought I would be at this point in time.
For starters, someone from American Fidelity came to our school to discuss finances. I have always done what I felt was right, which was to have both long and short-term disability. I usually meet with this person to just check if there are any changes to my policies such as an increase in price or coverage. Everything was the same. However, this year I took it a step further.
I noticed she had brochures on life insurance, and I only have what the school district provides; $50,000. I got to thinking -- it would be nice to leave a little more for my children. And so, I took out another $100,000 policy. I felt satisfied at the time. However, after getting home I started thinking. Although it is nice to leave my kids money, it would be nice to have a savings account. A light bulb went off in my head. And so, I rethought my purchase and made a change; a paradigm shift, really. You see, my thinking has always been about my kids. However, it is time I think about myself; my dreams and what my retirement looks like. And so, the next day I went back to the American Fidelity rep and made some changes.
Sorry kids, but I returned some of that life insurance. I need to get my retirement on firm footing. So, I kept $50,000 in life insurance and decided to fund a 403b, which is an IRA for teachers. It is funded with pre-tax dollars. And so, I am putting $150.00 per month away into that. It will feel more like $120.00 per month I am putting away since it is pre-tax. Here's the reality; if I rely on myself to put away money into savings, it probably won't happen. However, if I don't even see the money before it's invested, then although I will feel a pinch, I will always make it work in my budget. By doing this, I need to stop my Starbucks "fix" on Tuesdays and Thursdays on the way to tutoring. I'm okay with that. Thursday, I stopped home, fixed a pot of coffee and took a cup with me to tutoring. It really is just that simple. Now, that little change alone in my budget won't fund the account and my life insurance but it's a start. I will be revising my budget because the reality is, I have $150.00 in my right hand (403b) but I am down the $150.00 in my left hand (my budget). And so, I will have to figure out where the money will come from; making these changes doesn't just happen. It takes some serious planning and effort.
The next thing that happened later in the week was rather serendipitous. I had an old credit card debt from when I was married. I had hoped it would somehow "go away" but the truth is, it's time to put that card to rest. It was not a big balance but I could never really afford to pay it off. Not sure I can now but am going to make it happen. Since I didn't have a car payment this month, I put $300 towards it. I then set up a payment plan for the next 2 months to pay off the balance. That will be one less debt hanging over my head. Again, things will be incredibly tight for the next two months but by May, that pinch will be over. And my credit will be one step closer to being fully restored. My other credit cards will be paid off by the end of summer, after I work summer school. All of that, brings me closer to me being debt-free and a more secure retirement.
The actuality is, reading my Oola plan over and over again has the ideas solidified in my head. As opportunity arises, I find myself seizing the moment. I don't know that I could plan this much better than it has worked out. Yes, it has taken more time than I anticipated when I wrote my Oola life plan in November. However, the extra time has given me the opportunity to figure out how best to implement it. As it turns out, it was perfect timing for the American Fidelity representative to pay a visit. I have very little spare time, and her coming to school helped make my financial goals happen. As for the credit cards, I knew those would be paid off by the end of summer. I didn't realize that the one I had thought about so often would enter into the fray but I am thankful that will soon be a dim memory of the remnants of my past.
I write this blog not to boast but to let others know, that planning for the future takes not only writing down your plan but implementing it. You have to get serious. I never thought I would be the age of retirement and yet, it is looming around the corner and I am far behind where I should be. However, if you are willing to give up those extras such as a 2 times a week Starbucks habit, then it will happen.
I am a late-bloomer when it comes to financial-savvy. However, as time goes on, I am willing to make my dreams happen so that when it comes time to retire, my future will be on solid ground. I hope this will encourage others that no matter what your age, you CAN make it happen! Financial peace is possible. And if you wonder how to get the ball rolling, I suggest visiting Dave Ramsey's webpage at http://www.daveramsey.com/home/ Invest in his Financial Peace University. For me, it was integral to my learning about making a budget, becoming debt-free and planning for my future.
This song is dedicated to the OolaGuys who have shown me that not only can I change my world, but I can help change the world around me. Thank you, Dr. Troy Amdahl and Dr. Dave Braun!
"If I Could Change the World" by Eric Clapton
https://youtu.be/2TL90rxt9bo
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