I want to put out there that I’m not a professional, and so this is part disclosure and part reassurance of my motives.
I’ve recently lost 25 lbs. Not a ton of weight by any stretch, and I’m taller than average so I guess I “carried it well”. But still, I felt kind of gross and so I read about losing weight, chose a strategy to do it, and followed through. Basically the strategy was the calories I ate had to be less than the ones I burned (this is called CICO – calories in, calories out). It wasn’t sexy or gimmicky, but it was free and very effective. The thing is, I didn’t take any advice from those naturally thin people who seem to eat candy bars for breakfast, or overweight people who hadn’t found a solution. But I also didn’t pay attention to the ads trying to sell me an expensive diet plan or weight loss program. I wanted advice from experts (doctors) or my fellow “losers” – the ones who had been there, figured it out, and lost weight.
Being financially fit is a lot like being physically fit. I don’t want to hear advice from a trust fund kid or a filthy rich lawyer or something. I especially don’t want to hear advice from someone who is broke! When I was looking for money advice, I wanted to hear a rags to riches story, someone who had made mistakes and turned it around. Dave Ramsey’s story resonated with me when he talked about declaring bankruptcy with two small children, being scared and vulnerable and having to figure out how to build his life back up.
And that’s kind of where I was, drowning in debt with no direction. Here’s the irony – I majored in Business in college, took lots of finance and economics courses, and then got my first “real” job as a Financial Advisor at Morgan Stanley! I passed my Series 7 license exam, as well as Series 66 and 31. (These are required licences for registered representatives who are selling stocks and things at an investment firm.) The Series 7 is a six-hour exam, so I had to study my ass off and it was no joke – you were fired if you didn’t pass after six months.
But the hysterical part of this is that I was 21 years old, with lots of student loan debt and an overpriced BMW payment. I had zero savings and a really great downtown loft with garage parking. I soon upgraded to a mortgage and some expensive home repairs on credit. My partner got a car payment as well, and I assumed that soon we’d be spending on a nice wedding.
So while I do have some financial management and investment experience, I also have the “drowning in debt and brought it back from the brink” experience. I’ve done the things I talk about and I know they work. So while your mileage may vary, and personal finance is personal, these principles work. But I’m not your doctor, just someone who lost the weight and wants to help you do it, too.