Creating a Financial Foundation

Overview

This video shares six steps to help you build a solid financial foundation while you’re here, so when you move on, you’re in a stronger position.

Moving is a chance to reset habits. By being intentional now, you can reduce stress, avoid debt, and build wealth for the future.

Conscious Spending Plan:
- Forward-looking, not restrictive like a budget.
- Spend intentionally on what excites you; cut ruthlessly elsewhere.
- Aim to spend 15% less than you earn.
- Four categories:
  - Fixed costs (50–60%).
  - Short-term savings (5–10%).
  - Long-term savings (10–15%).
  - Guilt-free spending (20–35%).
Starter Emergency Fund: Save $1,000 quickly to cover small crises without debt. Only use for true emergencies.
Pay Off Debt with Snowball Method:
- List debts from smallest to largest.
- Pay minimums on all, plus extra on the smallest until gone.
- Roll payments into the next debt.
- Builds momentum and lowers future obligations.
Build Larger Emergency Fund: Save 3–6 months of expenses. Provides peace of mind if you lose your job (typical job search = 10–22 weeks).
Invest 15% of Income: Prioritize retirement accounts (401k, IRA) or real estate. Think in terms of Robert Kiyosaki’s definition: assets put money in your pocket, liabilities take money out.
Invest in Yourself: Education and skill-building often provide the best return on investment.
Automate Everything:
- Track expenses with tools like Quicken or YNAB.
- Use sub-savings accounts for goals (CapitalOne 360, Ally).
- Automate transfers and contributions so saving and investing happen without effort.
Final Encouragement: Even small amounts matter. Starting with $10/month is better than nothing. Success here benefits both you and us — we’re rooting for you.