Thrive Not Just Survive: 2019 Action Plans for Quarter 1 & Quarter 2
In our first post in the Thrive Not Just Survive series, we discussed facing our financial reality and we realized we are NOT where we deserve to be, yet. Yet is key!!! Living our best life may not be what we see everyday. Right now, we see struggle, sacrifice, lack and a constant cycle of tug of war financially. I’m sure if we were to be fully transparent with each other, we would all share very similar struggles of merely surviving.
*Disclaimer* I mistakenly deleted the first post in the series. No I didn’t have a backup copy. I will try to rewrite the post and reshare it
Many of us can declare how we want better. We have a zealous desire to blossom financially. I can admit I want to fix my situation just as bad as I need air to breathe. For the rest of my life, I want to no longer survive but eventually thrive. We are going to commit ourselves to get climb out of this situation of being broke and having bad credit. Our new reality will be that we have all that we need to thrive not just survive and experience everything we have dreamed of and more.
Have a seat! We are going to go through actionable steps or should I say baby steps to visualize and plan this growth out.
THRIVE ACTION PLAN
Shall We Begin, Sis?!
Remember that we are navigating through this journey based on a couple of key factors—credit and savings. If you are thriving in credit and savings, this content may not be particularly designed for you. We will catch up with you sis! However, if you have a credit score lower than 617 and savings less than $500, we need to follow the following action plan. Please try to follow these steps in sequential order.
First thing : Get your free credit report now and start cleaning it up.
For the next three months, our focus is on correcting and disputing errors. I would hate to see you pay down debt that you don’t owe or can dispute and not be liable to pay. There are so many lenders who will offer removing items on your credit like closed accounts if you simply write a letter. You can also submit letters asking for pay to delete as well so that you are not paying the full amount of debt.
Second thing: Create a strategy for making debt payments
After you have disputed everything, sit down and analyze how you will get your balances down. Create a strategy like a snowball effect to get your balances down. Pay the smallest debt first. So, let’s say you have a medical bill in collections for $157 and a credit for $2242. I want you to pay the medical bill first. You will feel so accomplished knowing that you have removed one debt and can now move on to the next.
Third thing : Live Below your means for the next 90 days-120 days
It’s not that long I promise. Time flies. For the next two quarters, let’s say until June, live below your means by 10%-25% to save for a secured credit card. More than likely your credit score is not high enough to get approval on a credit card. It’s ok. Some of us have all been there. The goal is to get out of it. Let’s aim to save $200-500 and use that money to secure a credit card. Here’s the thing though, we are using this for a dual purpose though. It is a way for you to both have a cushion for the four walls, food, shelter, utilities and transportation and also a very tried and true method of credit restoration. Since we are also looking at this card as our “emergency fund”, you should only use 30% of the balance.
Fourth thing: Save for the Untouchable Emergency Fund
After you have funded the secured card and managed it well, the 10-20% percent you saved for your secured credit card shift that to an untouchable savings or what they call the emergency fund. Your goal should be one month of expenses and a little cushion. This is the most critical step. Saving an untouchable emergency fund will finally allow us to see growth thriving.
The first two quarters of the year will help us gain discipline and keep us out of the damaging mentality of lack. We’ll begin to feel more confident and notice we value ourselves more by not being impulsive. Money and credit is a tool. We we begin to shift our views of money and credit our financial reality changes. By June or July, we should be slaying our credit report, have a secured credit card that will build our scores as well as have money saved up for a rainy day. PROGRESS, SIS, PROGRESS!
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