With continued reports of a looming recession on the horizon, there's no time like the present to assess your financial health and even make a few adjustments where necessary.
During the 2022 ESSENCE Festival of Culture, Certified Financial Educator Christian Lovell sat down with Comedic Actress and Social Media Influencer Lala Milan on the Wealth & Power stage to talk about all things budgeting with a little help from our partners at AT&T. In between sharing a few relatable personal lessons learned from years of bad spending habits and poor financial decision-making, the ladies took the audience through Christian's 4-step system designed to help you reach financial wellness.
Scroll through below to see 5 things we learned from their conversation and then watch the video above to hear their discussion full, including a complete breakdown of Christian's 4-step system. For more of everything you missed at the 2022 ESSENCE Festival of Culture, visit our official video content hub HERE.
01
Every Dollar Has A Job
"I use the zero-based budgeting method, which means every dollar I have has a job, down to the penny," Christian says. "Because when you don't give every dollar a job, that's when your money disappears. How many people have gotten paid and at the end of the 2 weeks, they're like, 'I don't know where my money has gone.' So, prioritize what you care about, spend some money on yourself, and cut out what's unnecessary."
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02
Spending On Yourself Should Be Part Of Your Budget Plan
"I started my journey in a very restrictive place. I was six figures in debt and I was like, 'I need to restrict every single penny. I can't spend anything on myself, I need to fast-track my goals. But again, I was in that cycle of over-restriction and then I would go splurge. I would go to the mall and buy everything I saw because I had restricted for so long and that's not a healthy lifestyle to live. So, make sure you allocate a certain percentage of your budget to spend on yourself."
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03
Savings
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04
Credit Cards Are Not Evil, It's How You Use Them That Matters
"Get out of high-interest debt and stay out of high-interest debt. Use your credit card to buy your gas, buy your food, treat yourself a little bit. Put as much expenses as you can on that credit card, but make sure you're paying off that balance monthly and not carryibng a balance month-to-month because that's what gets people in trouble because then you'll be paying $100 on your credit card with $75 going to interest and only $25 is going to the principle. You're not going to make any progress like that. Credit cards are not evil, it's how you use them that matters."
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05
Pursue Your Long-Term Financial Goals While Budgeting Is Possible
"Pursue your long-term goals. That could mean investing in real estate, investing in the stock market or retiring early. What that might look like is creating a plan that works for you in long-term goals."
