Meet Violet! She's saved ~$90,000 in 12 years after realizing that most people in her field were living paycheck to paycheck and she didn't want to end up broke. Now she's focused on her financial future and building long-term wealth. She's made great progress and has some major plans to take her wealth building efforts to the next level. Enjoy her story!
"It takes extra discipline to cutting down on the things you don't need. Before you embark on a purchase, always crosscheck if your assets are way higher than your liabilities, if NO? Then you don't need that purchase."
What was your "enough is enough" moment?
I was nominated to attend training for work as an entry-level banker. During one of the sessions, the facilitator asked participants who had worked for 5 year's to put up their hands, they were quite a number.
He then asked those who had worked for 5 years or more if they could come up with $1500 right then and absolutely no one had that amount. Around the same time, my boss was terminated and he had no money to go back home to his family after being a manager in a commercial bank over so many years, he had to resort to borrowing money from his co-workers to buy his plane ticket. That was when, I realized living paycheck to paycheck was a not a guarantee to be financially stable.
How much debt did you pay off in total? How much money did you save in total?
I didn't really have debt. I lived below my means and saved up $90,000 over the last 12 years. I invested all funds saved in a term deposit account, bought stocks and also invested in real estates. So I have my investment diversified. I have also saved over $1,000 in my emergency account and every month interest return from my gratuity account goes into my emergency savings account.
How did you keep yourself motivated?
By abiding strictly to my monthly budget. This cut across Savings, phone bills, gas, tithe, my employees pay, Internet subscription, parents, clothing, and kids account. I am also very disciplined in my spending. I plan my summer vacations well ahead of peak time. I shop the sale only whenever I am on vacation and still look elegant.
How did you manage the days where you just wanted to go out and spend money?
I go into my miscellaneous account or clothing account. I do not get to buy clothing every month.
What would be your money advice to your younger self?
Start little by little to save. "The journey of a thousand miles starts with one single step". Get your mind in the savings mode and continuous education by familiarizing with various investment options and following coaches like you on IG and Twitter.
What steps are you taking to ensure you meet your ultimate savings goals?
To save 25% of my ROI in my retirement account and a 100% from gratuity investment to emergency funds. With these options, I will stay liquid all through.
What advice would you give anyone reading this looking for encouragement?
I would advise everyone reading my money story to stay focused and stop making excuses why you can't save or pay down on your debt. It takes extra discipline to cut down on the things you don't need. Before you embark on a purchase, always crosscheck if your assets are way higher than your liabilities, if NO? Then you don't need that purchase.
I stopped eating out too, which was one of my major weakness. I had to pack my meal every morning to work and I eat dinner at home. This saved me close to $1000 in a year. I always advise people to clear up their debt gradually and start clean. The truth is you can't give what you don't have...this was what informed my decision to start mentoring and helping individuals struggling with their finances to become financially stable and start their journey to building wealth.
Thank you so much Violet for sharing your incredible money with us. It is definitely inspiring! Keep up the great work - you are on your way to an amazing future!