Get Good with Money summary

Learning to create and manage a budget is your first step toward financial wholeness. Your budget is your say yes plan – it allows you to indulge your dreams, be they a tropical vacation or going back to school.

Budgeting is an active task, requiring you to track how much you bring in every month and to know your fixed and variable expenses. Throughout the process, try to be as specific as possible.

Squirrels are master savers. During acorn season, they gather their bounty, even digging holes and planting the acorns for later (otherwise known as investing). When winter arrives and there’s nary an acorn in sight, the squirrels aren’t worried. They tuck into their cozy homes and live off the savings they stored during better times.

Typical human behavior, on the other hand, is the opposite. We like to splurge when times are good – “Live for the moment!” But to get good at saving, you’ve got to save like a squirrel – the second step to financial wholeness. 

The flipside of savings is, of course, debt – a heavy topic. But you’re in luck! Digging out of debt is the third step to becoming financially whole.

It doesn’t matter whether you’re dealing with a mortgage, student loan, or credit cards; to begin tackling debt, you need to shift the way you think and talk about it. Instead of describing the state of owing money as “I’m in debt,” say, “I have a debt to pay.” Debt isn’t a place, so don’t let yourself get stuck there.

OK, it’s time to get some more money flowing into your bank account! It’s easy to feel stuck when you’re living on your noodle budget and struggling to build your savings. But remember your power. Ever heard of the goose that laid golden eggs? That’s you – figuratively, of course!

There are a couple of ways you can increase your income, the fifth aspect of financial wholeness. They involve upgrading your current earnings, as well as hacking the side hustle.

Money is like a plant; if you put it into an investing account, it’ll grow. This growth happens because of something called compound interest, which is when your money makes money and this money – the interest – makes you more money. 

Basically, your interest earns interest. 

Insurance is tricky. It can feel like a waste of money – until you need it. And then, if you don’t have it, you could be in real trouble. Getting good with insurance is the seventh step to becoming financially whole. It’s thinking of insurance as a safety net if there’s ever a crisis.

First, if you don’t already have it, get health insurance. Employers usually provide a few options. If you’re self-employed and live in the US, healthcare.gov is a good resource for finding the right policy.

The most surefire way of achieving your financial goals is to seek out support, advice, and expert guidance; this is your money team. Putting together a team of financial professionals and accountability partners to keep you on track is the ninth step to financial wholeness. 

Say you rent your apartment, have some savings, and have set up a 401(k) through your job. Your money team might just be a financial educator, plus your partner or peer group. Make sure they’re what Aliche calls dream catchers: empowering people who are enthusiastic about financial growth.