EN
Kendra, my fiancée, has experienced a significant shift in her perspective on money over the past year. Previously, she viewed an annual income of $50,000 as the pinnacle of financial success. However, after a year of working on businesses together, her outlook has transformed, and she now believes that $100 million doesn't seem like an unattainable figure.
When asked about her financial planning, Kendra shared that we now plan our finances three to five years ahead. This marks a substantial change from her previous mindset, where she struggled to think beyond the current month due to a lack of savings. The experience of starting a business has encouraged her to think long-term and consider the future.
Kendra has adopted a more structured approach to budgeting. We now utilize a comprehensive Excel spreadsheet that tracks income sources, personal expenses, assets, liabilities, credit scores, and cash flow forecasts. While it may seem excessive, this detailed tracking has provided us with a better understanding of our finances, enabling informed decision-making, especially in the context of self-employment.
Kendra's knowledge of investing has grown significantly. Initially unaware of the concept, she now understands the importance of diversifying investments. She recognizes that investing in oneself is crucial, as it can lead to substantial financial returns. For instance, acquiring skills to build a successful business can transform a small investment into significant profits.
When discussing what she would do with a sudden windfall of £100,000, Kendra expressed a desire to donate to charities, particularly those supporting the homeless. However, her perspective has shifted; she no longer views £100,000 as a life-changing amount. Instead, she prioritizes investing in income growth, believing that this will enable her to contribute even more to charitable causes in the future.
Kendra has also become more knowledgeable about credit cards and their role in building a credit score. Initially unaware of their importance, she now actively manages multiple credit cards to enhance her financial standing. This newfound understanding has empowered her to make smarter financial choices.
Kendra prefers using cash for most transactions, as she is cautious about accumulating debt. However, she acknowledges the benefits of credit cards, particularly for earning rewards. By using credit responsibly and paying off balances promptly, she can enjoy the advantages of credit without falling into debt.
Our financial journey has led us to combine our finances, pooling our incomes into a shared account while maintaining a personal allowance for individual spending. This approach fosters aligned financial goals, which are essential for a successful relationship.
When it comes to wedding expenses, Kendra is not inclined to spend excessively. We have set a budget of £7,000 for our wedding, which includes rings and other costs. Our focus is on creating a meaningful experience rather than an extravagant event.
Kendra prefers purchasing store-brand products over name brands, recognizing that they often offer similar quality at a lower price. She has become more discerning about product ingredients, opting for options that provide better value.
Kendra's thoughts on car purchases have evolved as well. She would consider buying a nearly new car to avoid the depreciation associated with new vehicles. Her focus is on practicality rather than luxury, demonstrating a shift towards more sensible financial decisions.
Kendra has fully embraced the business world, showcasing her growth and adaptability. This transformation reflects her commitment to financial literacy and her desire to build a successful future together.
Q: What significant shift did Kendra experience in her perspective on money?
A: Kendra's perspective on money shifted from viewing an annual income of $50,000 as the pinnacle of financial success to believing that $100 million is not an unattainable figure.
Q: How has Kendra's approach to financial planning changed?
A: Kendra now plans her finances three to five years ahead, a substantial change from her previous mindset where she struggled to think beyond the current month due to a lack of savings.
Q: What budgeting tools does Kendra use?
A: Kendra utilizes a comprehensive Excel spreadsheet that tracks income sources, personal expenses, assets, liabilities, credit scores, and cash flow forecasts.
Q: How has Kendra's understanding of investing evolved?
A: Kendra's knowledge of investing has grown significantly; she now understands the importance of diversifying investments and recognizes that investing in oneself can lead to substantial financial returns.
Q: What does Kendra prioritize when considering a windfall of £100,000?
A: Kendra expressed a desire to donate to charities, particularly those supporting the homeless, but she now prioritizes investing in income growth to contribute more to charitable causes in the future.
Q: What has Kendra learned about credit cards?
A: Kendra has become more knowledgeable about credit cards and actively manages multiple cards to enhance her financial standing, recognizing their importance in building a credit score.
Q: What are Kendra's preferences regarding cash and credit?
A: Kendra prefers using cash for most transactions to avoid accumulating debt, but she acknowledges the benefits of credit cards for earning rewards when used responsibly.
Q: How do Kendra and her partner manage their finances together?
A: They have combined their finances into a shared account while maintaining a personal allowance for individual spending, fostering aligned financial goals.
Q: What is Kendra's approach to wedding budgeting?
A: Kendra is not inclined to spend excessively on their wedding and has set a budget of £7,000, focusing on creating a meaningful experience rather than an extravagant event.
Q: What are Kendra's preferences regarding brand purchases?
A: Kendra prefers purchasing store-brand products over name brands, recognizing that they often offer similar quality at a lower price.
Q: What considerations does Kendra have when buying a car?
A: Kendra would consider buying a nearly new car to avoid depreciation associated with new vehicles, focusing on practicality rather than luxury.
Q: How has Kendra embraced the business world?
A: Kendra has fully embraced the business world, showcasing her growth and adaptability, reflecting her commitment to financial literacy and building a successful future.