Chapter Zero: Money Pre-Check (Understanding your Financial Situation)

When I restarted my personal finance journey in 2018, I was dedicated to finding a blueprint that would help guide me down the right path. Unfortunately, I spent years trying to find a guide that did not exist.

Fast forward to 2021, I discovered the F.I.R.E. Flowchart on TikTok. It was everything I was looking for. As I began to navigate the flowchart, I noticed a lot of my experiences with personal finances were not represented on the chart.

The Financial Independence Blueprint for Black Women

The long days and painful nights I spent organizing, planning, evaluating and confronting my personal finances weren’t acknowledged at all. That’s when I realized the personal finance advice all over the internet was not addressing my needs and the needs of so many women who look like me.

Instead of complaining or ridiculing other personal finance gurus, I decided to share the tools and the blueprint that helped me attain financial independence.

I used the F.I.R.E. Flowchart as a base but, I added a pre-check and tools for each box in Section 0 and Section 1. Let’s start with the pre-check.

Chapter Zero- Money Pre-Check (Understanding your financial situation)

This post will discuss the Money Pre-Check (understanding your current financial situation).

Before you begin… I just want to say

I’m proud of you for taking the first step toward changing your relationship with money.
There is no cookie cutter method to dealing with your personal finances. Pen and paper, notes in your phone, download an app… do all three. IDC, just choose something and get started. Change up your methods as many times as you see fit. Don’t let not having certain tools/templates/apps/ gadgets hold you back from getting started.
The Money Pre-Check is the hardest, stressful, most time consuming part of your financial journey. Take it slow, be consistent, ask questions, be present and celebrate every single accomplishment.

Money Pre-Check

List your bills

Use the Bill Tracker to list all your bills.

Take a moment to sit down and list every single bill or expense you have on a monthly basis.
Include everything from rent/mortgage, utilities, subscriptions, loans, credit card payments, groceries, and any other recurring expenses.
Don’t forget to include irregular or occasional expenses like annual subscriptions or quarterly payments.
Be sure to add your due date

Benefit: Gain Clarity on Expenses

Listing all your bills will provide a clear picture of where your money is going each month. It will help you identify areas where you might be overspending or areas to cut back.

Check Pay-Stubs

Gather your recent pay stubs or income statements.

Analyze your statements
Check for accuracy (taxes, pre-tax deductions, withholdings, extra pay, bonuses, etc)
Contact Human Resources with questions, changes, updates, etc.

Benefit: Understand Your Income

Reviewing pay stubs helps you understand your take home pay, taxes and deductions
Begin to think about how much money you need to live comfortably while you build the life of our dreams

Check Credit Report

Check your most recent credit reports

Visit https://www.annualcreditreport.com/ or a reliable credit monitoring service
Request your free annual credit report from each bureau.
Review the report for any errors, inaccuracies, or suspicious activities.
Use your credit reports to assist with the next section

Benefit: Monitor Credit Health

Helps you identify any errors or inaccuracies that could negatively impact your credit score.
Allows you to detect any unauthorized activity or signs of identity theft.

List All Debts

Use the Debt Tracker to list all of your debts

Include credit cards, student loans, personal loans, car loans, and any other outstanding debts.
Be sure to include the current balance, interest rates, minimum payments, and due dates for each debt

Benefit: Face Your Debt Situation

Listing all debts provides a clear overview of your debt obligations. It will help you identify a debt repayment plan in the future.

Check Unclaimed Funds

Look up unclaimed funds in your name by visiting the official government website or relevant databases.

Enter your information and see if there are any unclaimed funds waiting for you.
Consider how these funds could positively impact your financial situation.

Benefit: Reclaim Lost Funds

Discovering unclaimed funds puts money back in your pocket that you might not have known was available. It can also provide you with an immediate boost to your financial situation.

Address Your Financial Trauma

Use the Financial Resiliency worksheet (COOMING SOON) to reflect on your past financial experiences

Record financial circumstances that may have left you feeling stressed, anxious, or overwhelmed
Write down any emotions, memories, or triggers associated with these experiences
Consider seeking support through therapy, counseling, fellowship, or self-help resources to heal from these past traumas

Benefit: Emotional Healing

Acknowledging and addressing financial trauma helps you recognize and release negative emotions associated with money. It allows you to develop a healthier relationship with money and make better financial decisions.

Define Your Relationship With Money

Start to make your own definition of money

Read books/ blogs, listen to podcasts, and talk to people with money about money
Reflect on your upbringing and early experiences with money. How were financial matters handled in your family?
Consider your current beliefs and attitudes about money. Do you view it as a source of stress, security, freedom, or something else?Think about any cultural, societal, or personal influences that have shaped your relationship with money.

Benefit: Gain Self-Awareness

Reflecting on your relationship with money helps you understand your beliefs and attitudes. It allows you to identify any limiting beliefs that might be holding you back from financial success.

The main goal of the Money Pre-Check section is to have awareness about your money past and present. Awareness is the first step to building a solid financial foundation.

This section is by far the hardest barrier in your financial journey. It’s long and emotional at times. Here are some tips that can help .

Set aside 1 hour per week to check in in on your money. No distractions and make it a priority.
Always remember your end goal.
Celebrate every small accomplishment in some way.

https://www.tiktok.com/@aleicia_/video/7266823144625818923?is_from_webapp=1&sender_device=pc&web_id=7293210093146015275