Are you spending next month’s money to cover this month's expenses? If so, no matter how much money you make, you are living paycheck to paycheck.
I want you to have the best year possible and as we continue in this fourth quarter, it is imperative that we are strategic and intentional about how we finish this year. So many of us live paycheck to paycheck and we don’t even know it, but we still have time to change our financial situation before the end of the year. This requires us to get out of debt.
If you are someone who finds yourself with multiple five or six-figures worth of debt, now is the perfect time to position yourself on the road toward financial freedom for 2021. Our guest today is a student in my Purpose 2 Platform program who took inventory of her debt and realized that she and her husband had more than $670,000 of debt. By intentional planning and budgeting they were able to pay off over $300,000 and all she and her husband did was face the numbers.
Rho Thomas is an attorney, mindset strategist, and personal finance coach who believes that true wealth is having control of your time. She helps lawyers make intentional lifestyle and money decisions to regain control of their time, build wealth, and live the lives of freedom and choice they deserve. She has been featured in outlets such as Yahoo! Finance, Refinery29, and Mic and hosts the Wealthyesque podcast, which explores how lawyers can achieve lifestyle freedom through mindset shifts and financial independence.
Debt doesn’t have to stop you from your purpose and Rho is an excellent example of that. Her story resonates with anyone in debt, and proves how even those who appear wealthy can still struggle financially. It’s time to face your numbers.
Key discussion points from this episode include:
Determining your net worth - 09:54
Steps taken to tackle your debt - 13:21
Setting boundaries and taking control of your money - 20:00
Universal lessons for any income level - 24:02
Calculating your financial independence number - 28:22
Words of encouragement for anyone looking to tackle financial independence- 39:50
This episode is brought to you by my new book, Redefine Wealth for Yourself. We have compiled the greatest lessons and exercises that we’ve learned on the Redefining Wealth Podcast to bring you the ultimate guide to redefine wealth for yourself.
Want to stop chasing money, find fulfillment, and live your life’s purpose? Pre-order your copy of the book by visiting patricewashington.com/preorder/.
Face the Numbers Takeaways
“I knew that we had debt, but we had taken it in pieces.” - Rho Thomas
“Because our debts were so large, our net worth was negative.” - Rho Thomas
“It’s important to look at what’s actually happening with your money and not just assume that because you’re following all the rules that you’re okay.” - Rho Thomas
“Once you’ve got your money together, then that gives you options.” - Rho Thomas
“My No Game is strong!” - Rho Thomas
“76 percet of households live paycheck to paycheck.” - Patrice Washington
“We all need to know how much money we’re bringing in and how much money is going out.” - Rho Thomas
“A lot of people are living paycheck to paycheck and just don’t realize it.” - Rho Thomas
“If you are spending next month’s money on this month’s expenses, no matter how much money you’re making, you are living paycheck to paycheck.” - Rho Thomas
“A lot of us spend so much money trying to look like we’re wealthy, instead of actually using that money to build wealth.” - Rho Thomas
“There is a blessing in downsizing.” - Patrice Washington
“The financial independence number gives you a goal to reach for.” - Rho Thomas
“I would rather have money and not need it, than need it and not have it.” - Patrice Washington
“What could have been a complete crisis becomes a mere inconvenience when you have the money.” - Patrice Washington
“As you put one foot in front of the other, make sure you track your progress.” - Rho Thomas
Redefining Wealth Rapid Wisdom Questions
And with that, let’s dig into Rho’s responses to our Redefining Wealth Rapid Wisdom Questions.
Define Success:
“Success is being the best version of myself that I can be and living the best life that I can.”
Define Wealth in 3 Words or Less:
"Control of time"
One Book that Has Redefined How You See Wealth:
The Millionaire Next Door by Thomas J. Stanley
Your Money Or Your Life by Vicki Robin, Joseph R. Dominguez, Monique Tilford
Fill-in the Blanks … “My name is ___ and the truth about wealth is ___”:
“My name is Rho Thoms and to me the truth about wealth is it gives you options and allows you to take control of your life.”
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