The Price of Style: Mastering Intuitive Money Management with The Fit Financial 

I’m Amanda Hanquist, The Fit Financial, and today we are delving into the intriguing topic of "the price of style." How much are we really spending to keep up with the Kardashians, and how can we become intuitive with our money?  

Money talks, so it's time to cash in and listen. 

Are you caught in the trap of "keeping up with the Kardashians"?  

Are you making real money, but having nothing to show for it?  

You’re not alone, more than 25% of the population out there makes great money but feel broke. 

We’re going to explore the true cost of style and discuss how the 'keeping up' mentality jeopardizes your financial future. Along the way, discover ways to build long-term wealth while still enjoying your money responsibly.  

After all, you deserve to enjoy your money and be financially free too. 

Making real money often comes with a lack of financial education, leading to mindless spending. Breaking down how to use money wisely, learning how to be connected to your money can lead to an entirely different outcome as early as this year.  

This all comes down to behavioral and emotional spending, which can lead to empty promises, leaving you feeling financially strained. 

So, let’s address the 5 foundational principles of money management 

5 Basic Principles of Money Management 

1. Emergency reserve:  

Life happens, and it can be easy to put life’s emergencies on credit, leaving you behind and in long-term trouble, so prioritize having 3-6 months of expenses saved in a liquid savings account.  

Liquid just means you can easily access it in a short period of time, less than a week. I’m a firm believer in that if you don’t have emergency savings, any fun or fee spending is a hard no, so say goodbye to the cute shoes on amazon for the event and dig something out of the closet for now. 

If you need to start with 1 month and work your way up, start there. The goal is to work up and accomplish it. Speaking of goals, that’s our next principle. 

2. Set goals: 

Create short and long-term goals, regularly reviewing and adjusting them. 

When you have a goal, you can have a purpose and a meaning behind what you’re spending, so when you get frustrated or tempted, you can look back and remind yourself about your why. 

Why have a short term and a long term? In the human mind, we thrive with accomplishments. So, if we’re only stashing and saving for 20 years from now, most likely we’ll struggle to relate to that goal, day-to-day. Also, when we have different buckets with different goals, we can keep track of it easier also. 

Having a short-term financial goal, such as saving for a vacation, a small home renovation or paying off high interest debts can help you feel accomplished and get rewarded in a timeframe you can comprehend. 

Whereas long-term goals will be more like retirement savings, seeking financial freedom, paying off a mortgage, or funding your child's education, these are farther out and feel less rewarding in the short term. Having these goals leads to our next principle, which is a plan to implement them. 

 3. Create a financial plan: 

Establish a financial plan that aligns with your goals. Working with a certified financial planner who is trained to implement the 5 pillars of financial planning can be helpful in attaining your goals. These pillars include Tax planning, Investment management, Retirement Planning, Risk management and Estate Planning, this also includes debt planning and management. There are a couple of ways you could go about this step, and it depends on your specific situation.  

You can seek a one-time financial plan where you would have a detailed assessment, overview and recommendations based on your current situation or an ongoing financial plan where you would gain ongoing recommendations as life happens. 

See what a financial plan might look like for you 

 4. Pay off bad debt:  

It’s important that if you have high interest debt, or debt that is costing you more in interest than what you could earn on it in savings or investing, 10% or higher, that it is paid off as quickly as possible.  

Most high-interest debt is accumulated from depreciating assets such as clothes, furniture or vehicles. It’s recommended that any high interest debt be paid off in 2 years or less. 

 
This could be one of your short-term goals that can feel immensely rewarding to accomplish this goal, especially if this has been a struggle for you. Plus, it’ll feel like getting a pay raise when it’s done. 

 5. Live below your means:  

It's no surprise that inflation is a real thing, we’ve all witnessed it since 2021 and whether we like it or not we will someday need to be faced with the harsh reality that we won’t always want or have the ability to earn income. So where does that income come from?  

It comes from living below your means now so you can aim to save at least 20% of your income for your future, aka your long- term goals. 

Influencers and The Impact of Buying 

Influencers and tempting apps can wreak havoc on your goals. Just consider this, social media influencers are losing their trust in the consumer market today. In fact, the reality of the influencer is not as it might seem online, and their glamour is a mere glimpse of their own underlying issues.  

Some temporary solutions like unfollowing your influencers, updating your social media preferences, limiting screen time, and temporarily deleting certain apps (i.e. LTK, Amazon, Wayfair, etc.) can be super helpful to help you regain control of your money, at least until your high interest debt is paid off and your savings goals are met. 

Remember that financial wellness is a journey, not a destination. We've learned to be intentional with our money, making conscious choices that align with our goals and values. 

By prioritizing emergency funds, setting clear goals, and creating a solid financial plan, we lay the foundation for long-term success. Tackling bad debt and navigating the allure of constant consumption can serve as a roadmap to financial freedom. 

Temporarily stepping away from the influence of social media and tempting apps allows us to regain control over our spending habits. As you embark on this financial journey, remember that achieving financial freedom doesn't mean sacrificing all enjoyment. It's about finding a balance that allows you to both enjoy your money and build a secure future.  

To learn more about how you can achieve your financial goals, contact us! 

About the author: Amanda Hanquist 

Follow The Fit Financial 

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