Sometimes I don’t understand how this is how we as a species choose to live. In the world we live in today – money is at the root of our society. Most people need it to eat, to drink, to bathe, to sleep, to get help. The list goes on and on. You need it to exists and all I can think about is how we made it up. We made all of these rules we live by up. People are living in conditions that almost every single person to ever come by these words could never truly fathom. There’s millions whose life could be radically altered by the flimsy paper or numbers on screen that represent them. We could choose to make sure everyone has the resources to be comfortable. We just, as humans, decided there would be currency that we must have to do things while on this planet.

Since that is our case, and it likely never will change, it’s one of those things we almost absolutely need. People fall into a few categories. Either you have financial abundance, enough to splurge, just barely enough for necessities, or completely lack the adequate amount to routinely be provided for. Money completely shapes the trajectory of life. At any point in life. From the beginning to our very last breath. You could just as easily have been the child placing your meager belongings on the river bank to go bathe yourself as you could be that one snuggling into your plush comforter while falling asleep in your own room. The one disassociating through life or the one that for the most part is protected and content. The relative probabilities of which of those it could be are endless and for a multitude of reasons besides just money (perhaps we can go down that rabbit hole another time though).

Unfortunately, on top of coming onto the earth playing roulette with our circumstances, not only do some of us not have funds, but many don’t get to learn how to handle them either. I’ve seen two sides of the spectrum for managing finances. One of my parents valued it too much while the other not enough. I’d like to say I’m a balance between those two styles. I grew up with more financial abundance than most of my immediate family ever had, certainly more than any other previous generation. However, compared to most of the friends around me I grew up with significantly less. There were times we didn’t have electricity nor I a real bed, but there was food, toys, and adventures too. I’ve never been in the position where I didn’t have a roof over my head or a meal to eat, but some of my family has so I can empathize with that. A life of constant survival means not everyone gets the chance to learn or reflect on their financial circumstances. Several don’t get to change their situation at all.

I fortunately believe I am on the path to change mine. I was blessed enough in this life to have been chipping away at it since I was young. I’ve seen a multitude of circumstances people monetarily find themselves in. I‘ve absorbed how different people approached it and lived life in spite of where they found themselves. I first hand saw the importance of preparing for my future, while also not just holding out until then to enjoy all I have obtained and accomplished.

Throughout my (limited) years of adulthood, I have gotten into a more stable financial position. I had a little over 70k in student loans upon graduation, but I’ve had a steady income the last few years. My overarching financial goal is to achieve financial independence sooner, rather than later, and be able to share the abundance throughout my life journey. I will not, however, wait until this is done to experience moments the money I do have can afford. So, for now and from here until then, here are 5 personal rules I like to keep in mind when it comes to my finances:

1. Always pay off my credit card: I try to do this twice a month so that I see the money depleting in my checking account. Besides my rent, all my purchases go on my card. I have one with rewards so at least that way I’m getting something for the $ I’d blow anyway. There’ve been a few times I maxed cards for emergencies. When that happened, I tried my best to pay more than the minimum & not use it until I got it down where I could pay it off.

2. Build Emergency Savings: Typically the recommended goal is to save 3-6 months expenses. I’m really paranoid I’ll be in a situation where I can’t afford essentials so I am aiming more for 3 months worth of my paychecks for now. This is for anything unexpected that I must pay like car repairs, fees, bills if I lose my job etc. I assess and adjust the amount I have in this savings account as needed.

3. Use a High Yield Savings Account: I used to deposit my money at Wells Fargo until I realized the percentage they pay you for keeping your money there is close to .001% while other accounts can go as high as 4.0 – 5.25%. Yes, it’s annoying to create a new bank account, but it‘s for free additional money. It also helps me separate what I intend to keep stored for an extended amount of time in another account than the one I am used to pulling out of.

4. Don’t have to budget everything, but do keep an idea of what I can afford to pay for so I don’t go beyond my means: I could die tomorrow so I won’t be too stingy, but I do remember the Esmeralda of the future deserves just as much financial stability as my present self. I pay future Es first by either saving or investing so she can live accordingly later on too.

5. Check interest for debt vs investing: I have a set order of financial operations each month. First I try to ensure my bills are paid. After that, I save a set amount to go to my emergency fund (or if that is full then anything else I am saving for). For any additional funds beyond that I tend to compare the interest rates of my debt. Anything on a credit card will always get extra $$ I have first. Then I’ll check loans and apply any extra cash on hand for the ones with the highest interest rate. If my debts have an interest rate of 6% or less, then I pay a little more than the minimum bill amount for the debt and go invest the rest – this is because I believe throughout the course of my repayment I will have earned more money investing than I would lose by not paying the debt.