HOW I GOT OUT OF POVERTY AND BAD DEBT || MINDSET SHIFTS

what's good my friends welcome to another episode of Finance Friday I'm very happy to have you guys on here two weeks ago I shared my job love story and some of the lessons that I learned after losing my job and how I was able to get through that particular season of my life and you guys really vibed with that video you gave me amazing comments and you found that realistic practical and so I thought it would be important for today's episode to just follow through with that story because one of the reasons I was able to come out of that situation was because I had to work a lot on my mindset and to shift my mindset from some things some things I was doing some ways I was thinking and now into a new mindset shift that helped me I strongly believe that that mindset shift helped me to be able to come out of poverty and to actually be able to get out of bad debt so that's what I want to share with you guys in today's episode five mindset sheets that I strongly believe helped me and could also help you to be able to come out of a poverty situation or just budget or a tough Financial place so stick around let's find out what those Minds mindset shifts are [Music] thank you um so I've said on this platform before that your money mindset is powerful not just your money mindset but your mindset around life generally and I've found that it is one of the most powerful tools that you can use alongside other physical tools to really shift and transform your life right um so I have written down these pointer so that I don't forget I want you guys to get all the juice um so the first thing that I had to change about my mindset was coming to a place of acceptance right I had to accept my situation for what it was at that time no running no hiding no lying about it no procrastinating no avoiding just pretty much facing your situation facing your finances and accepting that that is where you were right now I know a lot of us we we deal with things differently I'm not saying that you have to cope with stuff the way I cope with stuff but I have found that coming to a place of acceptance is more of a powerful move and one that could generate results for you than when you are in denial about your particular situation now when I lost my job one of the things that I was very tempted to do was just to keep like not to talk about it and not to process the fact that it had happened in fact I was very intentional in like hiding myself in the house and then applying for jobs and then just getting back to work that was my plan get back to work before people know that you lost your job and it was I think it was just a period of my life I was feeling a lot of like shame and I was feeling guilt I can't even tell you why I was guilty but it was just I felt shame about my whole situation I already was I already grew up poor I mean people who've known me from when I was really really young people have known my family like they knew I'm not like we didn't grow up rich so I think getting a job for me graduating into such a big deal and then going all the way there working in an investment company then ending up losing your job I didn't want people to know that that was happening to me or that um you know I was not doing very well and while that may be valid because not everyone needs to know your business there was also an aspect where I had to realize that I'm not just hiding from people I'm also hiding from myself like I'm not accepting that this is the situation I mean there's something powerful guys about accepting where you are about accepting that you know I've lost my job or I'm deep in debt and and that will really really help you to be able to kind of like view your finances and your situations for for what it really is where you really are right and what did that help me with when I accepted that I had actually lost my job and this was my situation I was deep in debt I did not have savings it kind of like put me in a mental space of okay I've accepted that this is happening I'm not gonna try to hide from it or run away from it I'm gonna face my finances and face the situation so that brought me to a place of actually being able to write down I listed down all my debts right I had mobile loans I had Circle loans I had an inherited loan like there was just so much going on and instead of running away from that I literally sat down and I was able to write down who do I owe how much do I owe them is there anyone here I need to pay on a monthly basis who can wait Etc and then I went into my savings account and I was like okay what exactly can I do here now I was able to look at like so can I prepare rent in advance for like three months can I be able to pay one of these things that are mandatory for you know at least a month or two in advance as I'm figuring myself out and one of the things that I did I because the money that I had saved was not enough I actually asked my former employer to send me part of the pension contribution that they were doing for the three and a half years that I worked there right and liquidating your pension guys listen if you have to liquidate your pension there's nothing left like there was nothing in my soccer account nothing in my bank account and I'm just left with this much savings and my only option was okay I'm just I'm 25 right I can start all over again but my bills need to be paid right now so I liquidated part of uh actually all of my pension contributions my personal contributions whatever my employer was already contributing was left there and that is the money that now I budgeted for and it was a good amount especially because I was living way below my means at that particular point I had like that money at least give me a push like I had like three to four months worth of expenses and that kind of like helped me to be in a space where I'm not panicking I'm now thinking okay now that I've taken these bills out of the way the ones that are making me lose sleep at night what exactly am I going to do about this situation that I am in so that's the first mindset ship you must accept because when you accept you deal when you deny you do not deal with the situation so when you come to a place of whether that is that you're in zero savings no emergency funds no job accept that you're in that situation and allow your mind to fully comprehend where you really are at because I think that once you do that you're now able to get into Solutions mode you're able to be like okay these are the debts this is these are all the bills I need to pay where is the money coming from so I was able to really think fast and kind of like okay what can I liquidate what can I do to pay for my bills immediately you see when you have like a three months break then you're able to kind of like come back um you know give yourself that breathing space to think okay in the next three months I need to have gotten another source of income so what exactly is that going to be so that's the first thing the second mindset shift was just realizing and understanding that no one is coming to save me and that can be tough guys it is very tough when you have to actually realize that fine um I know I can you know do you guys have these ankles let me know in the comment section do you have these uncles that keep telling you to send them your CV or these family members I did all that like I was I was calling everyone I knew every connection like you know I'm I'm out of a job can I send you my CV do you guys have this do you guys have that and I'd get very demoralized every time like someone would be like I'll get back to you in a week or by end month and it's three months down the line and that person has not talked to you or you even call them and find out actually they forgot all about that CV you sent them right that was one of the experiences I I had to go through right and one of the things that I had to in the process of accepting I also had to shift my mindset from this uh CV ankles oh CB daddies will not um save me the government will not save me my degree will not save me in fact the world does not owe me nothing just because I had a degree in economics and finance and I had three years working experience in an Investments firm and I was cute and smart and all that the world does not owe you anything I think understanding that no one is coming to save me put me in a mental state because remember we're talking mindset shift it put me in a mental stage to be able to show up for myself and stop the pity party I I had a pity party for a while and you know just every time I would see people doing well I'd just be like oh but you know these people have connections you know this person's father wax out his uncle works there or her mom recommended her and when you're just focused on justifying why every other person is doing well and you're not you will never show up for yourself so understanding that no one was coming to save me and that I actually had to take take matters into my own hands and and take control right so I was like okay do I have connections I had none is my mommy and daddy reach that they're gonna make just some phone calls and I'm gonna get a job absolutely not and my uncles for series showing up for calling me back absolutely not even my friends as in so I have to show up for myself I have to do what is good for me and this is where I I kind of like put down the pride in fact for a moment I was just like you know what this degrees don't matter what can I do to make money right now because my bills do not care that I do not have a job they need to be paid right now and and being in that place it humbled me because I I didn't start choosing jobs I was like whatever that I can do to make money as long as it's legal and it's moral according to my values I'm gonna do it so even if you see I mean even if some people would be like wait you have a degree in economics and you're doing freelance right getting paid 200 more by page I didn't care about that at that moment because I had accepted this is where I was but I wasn't also gonna sit down and pity myself I had to show up for myself and in the process of actually doing the online jobs freelance writing then I was able to stumble into other online opportunities which led me to what I am doing right now so you must realize no one is coming to save you you have to get up and do the work you have to get up do the research go on to this online platforms make it your daily job if you're jobless make it to your job to go online and figure out how other people who are Freelancers and they are not employed how exactly they are making money I did that for like two to three months before I was able to finally like get my first paid gig where I did like an article and I was paid for it so you have to save you no one is coming to save you if someone else comes along whether that's a relative or a friend that maybe gives you an opportunity or gives you a business idea or gives you some money or tells you there's an interview somewhere please show up that let that be a bonus but you have to show up for you that's a lonely Journey you still end up feeling a bit like why am I alone why isn't anyone showing up for me but stop focusing on that and start realizing I mean I'm so proud that I can say I'm self-made right like everything I did I worked for it myself right so that's another thing that really helped me the third mindset shift that helped me to be able to come out of poverty and bad debt especially was budgeting and consistency is not for the rich people only so before I learned about budgeting and I started appreciating its place in getting me to Financial Freedom I used to think that budgeting is just something rich people do in fact I've asked this question myself and I've also have had clients as middle like Susan what exactly am I budgeting for this 10K I earn this um 5000 on a daily or you know on a weekly basis or on a monthly basis what am I budgeting for the moment I pay my bills the amount is over I have nothing left so there's no room for me to budget and that is one of the most faultiest mindsets you can ever have if you want to come out of poverty and if you want to come out of bad debt listen guys we've talked about budgeting so many times on this platform I'm pretty sure you've seen it online on other platforms you've read about it budgeting Works take it from me consistently budgeting and sticking to a budget what whether you have little money whether you have moderate income or you have a lot of money budgeting is not just for rich people only and when that settled in me when I understood that you know budgeting is a skill it is a tool I can learn it and use it for my own Advantage I started understanding what exactly is budgeting and what is not budgeting so some of the things I had to unlearn is that budgeting will restrict me budgeting when it is done well it's not supposed to restrict you it's actually supposed to help you to be able to live your best life life okay um I had to unlearn that budgeting is just having a list of your bills if you're listening to me right now and budgeting to you is just writing down the rent utilities transport and food that is not budgeting budgeting is sitting down with the 10 000 that I have earned and racking my brain about how this money will cater for this four very important categories my needs my debts my savings and Investments and my ones as a last option right so it is it is not just having it's it's pretty much looking at okay if I earn 50 000 if I earn 40 000 if I just can't get 20 000 what can I do to ensure that this money serves at least two to three of these categories sometimes it won't serve all the four sometimes it will just be able to pay for your needs and to be able to pay for your debts or sometimes you'll just if you don't have debts it's gonna pay for your needs and just the rest very little is going towards saving for like things like your emergency fund or school fees but ideally a budgeting is a budgeting is a spending plan that should include all of these four categories and when I started doing it is when I started figuring out okay this one is not enough what can I stop I stopped doing my nails I started doing my hair from home because I'm slashing all the things that would make me not rather would would make me spend money on things that are not Necessities right real life budgeting will probably make you realize that you don't earn as much as you think or you don't have enough money and there's absolutely nothing wrong with that that will push some of us to either make some drastic lifestyle changes or to be able to uh be pushed to to be to want to make more money and to increase your sources of income so for me one of the things that worked well for me is that I wasn't really interested in I mean I grew up poet there's pros and cons to it one of the pros is that you don't you you already bottom of the barrel so you're not trying to compete with people I didn't have a lot of Lifestyle going on um so I lived with my mom in a single house with my younger brother that's what we could do I mean that's what we could manage then at that particular point and that was just my life was I when you looked at me from the outside of course I tried grooming myself and looking nice and I mean no one can tell no one needs to know and even if people know that is remember acceptance number one point number one this is where I am right now and this is what I can afford to do right now your opinions do not pay my bills that's just what was up at that particular point in my life so when I was budgeting and I realized I honestly cannot afford to make my hair I started making it from home I cannot go afford to go out with my friends all the time in fact I remember that season of my life a couple of my friendships suffered because now I can't meet you guys as often as unless you guys are paying for me I can't yes I know it sounds like a joke but I cannot pay for a cup of tea at Java right now or wherever it is even if it I know it's 250 but that's that's my fair for the whole maybe week or two days but you have to get there so when I started understanding that I can use budgeting as a tool as a skill that can get me from point A to point B I started incorporating it so I drew up my budget and I started racking my brain about where is this extra money going to come from I need money to pay my debts I need an emergency fund because I have seen what can happen when I lose my job without an emergency fund that's the situation that I was in right so budgeting is not just something that rich people do it is something that you can do at your 10K income level 50k income level 100K income level 1 million income level everyone should budget because budgeting is simply an intentional spending plan for your hard-earned money so if you do not know how to budget guys and if you've never done a budget before I actually have a done for you Excel sheet for 750 Shillings Kenya Shillings only that you can get um and I'm gonna link it down in the description box below and it is done for you in the sense that I've been able to curate it in such a way that you will see all the things you need to budget for we have somewhere where you can budget for savings and Investments debt repayments your bills your wants your short-term projects like those cuttings you want to change in your house school fees long-term projects like land acquisition and even a food and shopping list so that you can be able to track how much food that you guys actually how much are you spending on food on a monthly basis because that's one of the areas where I find that a lot of my clients bleed money that is a very good starting point for anyone who's never budgeted before and you want to start practicing don't budget in your head don't take mental notes work with that template it is editable you just have to enter the numbers and we have that budget that can it can last you from January all the way to December so please uh click the link uh in the description box that is going to be labeled budget tracker to be able to get your budget tracker for 750 Shillings only and they're gonna thank me I promise you okay now if you've already been doing an Excel sheet you've been doing a budget and it is not working out very well for you I will also link uh down below a budgeting master class I have done a three-hour self-paced uh training for you guys who've been trying to figure out budgeting like you probably have the Excel sheets you've been trying to work with them and you've also been trying to use some mobile apps but budgeting it just seems like it doesn't like you right it's not working for you I have a master class where I've been able to take you through a step-by-step guide on how you can change your budgeting from a budget that's not working something you hate doing to something you thoroughly enjoy doing I want to teach you guys how to budget for your best life the catch here is if you get the master class you do not have to get the budget tracker because the master class comes with a free budget tracker that you can actually use to apply what you've learned during the class so I'm gonna link those two resources down below so that you can be able to start budgeting for your best life if you have never done it before okay now let's move on to the fourth mindset shift that I had to develop and that is developing a wealthy person mindset you guys know there's such a thing as a scarcity mentality and a poverty mindset and if you've grown up in poverty you know it all too well there are things you cannot spend money on you're like you know it's only because I had to start unplugging myself from that place of poverty if you've grown poor you've grown up poor some of those things stick with you and you don't even realize it because they're pretty much second nature some money habits and some money mindsets I started asking myself what do wealthy people do I'm not saying fake it till you make it I'm saying start asking yourself you know a wealthy person's mindset get into that and start understanding how do wealthy people think and what do wealthy people do and I started kind of like uh reading up and reading Finance books and exposing myself and I learned wealthy people plan strategically so with my small coins I started planning strategically wealthy people do not just save because they understand that you cannot save your way to wealth you must invest your money what is the difference between saving and investing saving is just preserving your Capital it's Capital preservation while investing is capital multiplication so wealthy people understand that on top of just saving I need to invest I need to put my money where it's earning interest and it's growing that's the only way to make wealth in the long term so I started thinking okay I need to educate myself on how to invest my money and how to grow my money how to invest and grow and multiply my time right so when you start exposing yourself and you start Desiring a wealthy person's mindset I'm telling you the way you think and the way you behave changes and your habits and your behaviors guy guys become your destiny I believe because I started thinking like a wealthy person even before the money came and I started exposing myself to what do wealthy people do how do they think what are some of the resources they must absolutely invest in and I started doing that that changed my mindset which in turn changed my behavior and my habits and I believe that is changing my destiny even up to right now wealthy people invest in knowledge they invest in networks they read they Network in other words they build their knowledge Bank most of these people are willing to pay crazy amounts of managers to get the right help and to get the right um information now we live in a day and age where you can watch YouTube videos like what you're watching right now you can get free courses with people like Alx or with on on skillshare on um udemic free courses or something that will probably cost you less than two thousand or three thousand Shillings and get the right information changing your mindset and moving from a scarcity mentality to an abundance mindset will make you wealthy and eventually will help you get out of poverty and being um in debt and it did that for me all right lastly you need to know your numbers and to know your Financial Freedom numbers every time someone would tell me you know what would they take for you to to you know we keep saying I just wish I came into some money I wish I had this you know I wish I had money I wish I I I I got this job but most of us do not even know what would it take for you to Achieve Financial Freedom what would it take for you to get out of debt what is that income goal when you say that I want to get a good job that pays me a lot of money Define a lot of money you need to know your numbers don't just work with abstract figures how much debt do I have I think I've told you that I listed that down so start asking yourself what would it take exactly how much write it down somewhere put it on your vision board it works and start working towards that like when I listed my debt and I knew like I had like 300K in loans I was like you know what this is the number this is what I'm crashing this year I need to bring it down to 200 or to 150 know your numbers when you say I want a job that pays me well baby girl how much is well do you want fifty thousand a hundred thousand two hundred thousand put figures I found that when you put figures to what it takes to get to Financial Freedom what what is a good salary what Define good salary Define debt Freedom even go ahead and calculate your financial Independence number and find out how much would I need to have in Investments so that I can be able to Achieve Financial Freedom I've shared this before one of my goals by the time I'm age 45 is to have my passive income exceed my active income so that I can start slowing down and working less instead of just saying I want Financial Freedom I've gone ahead and calculated exactly how much I would need to have in Investments so that I can be able to Achieve Financial Freedom by the age of 45 guys nothing fires you up more than a clearly defined goal and that clearly cut out strategy because one once I was able to Define that then I was able to start working backwards and asking okay I need 32 million invested somewhere by the age of this you know by 40 or 45 million so I have like another 20 something years or 18 years left to go or five years left to go so how can I achieve this goal in this timeline that I still have left so I hope that that gives you perspective on why it is so so important to clearly Define those numbers so Guys these are the five mindset shifts that I experience I hope this was helpful for you guys you can let me know in the comment section down below if you found it inside rightful and if you have any questions you know what to do so thank you so much for watching remember to do the necessary share this video like it leave me a comment and remember to subscribe so that you can be notified every time I upload a new video thanks so much for watching I'll see you on the next episode foreign [Music]

Channel: Susan Wanjiku

Views: 484,920

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Id: IPL2lHSNm-E

Length: 27min 13sec (1633 seconds)

Published: Fri Mar 03 2023