Break Your Budget
Michela Allocca
A 30-year-old American entrepreneur, who has built a net worth of more than a million dollars, shares the often overlooked first step to achieving financial freedom: knowing where your money is.
The first step we need to take towards financial freedom is not budgeting, investing or cutting expenses. It’s simply saber where is our moneysays the businesswoman and author Michela Alloccain an article no.
By age 30, Allocca had accumulated a net worth of over a million dollars thanks to her increased income, diligent savings, prudent investment — and sit down from time to time do math.
Before focusing on growing wealth, Michela Allocca, founder of the personal finance brand and author of “Own Your Money“, says that people need to have a clear image of what they already have.
How much money is in your retirement account? Do you have multiple retirement accounts? Do you have an investment account? If so, how much money is there and are you actively contributing to it? What about cash on hand — do you have enough money in cash or have too much because you are afraid to invest?
If you can’t answer these questions, then set aside a weekend morning or a weeknight to sit down and do some sort of “account audits,” suggests Allocca, who spent years in the corporate world before turning to content creation full-time. Since leaving her job, quadrupled your income.
Once you know where you are starting from, says the entrepreneur, you can calculate how much you actually need to achieve your goalwhether early retirement or becoming independent from work. “Understanding where our money is is really that first step,” says Allocca. “The problem is that many people they never do the math“.
Unfortunately, for many people, the problem isn’t knowing where the money is, it’s not having it to begin with — and the bills you have to worry about are the ones you have to pay at the end of the month…
