Teaching Financial Literacy to Women in Recovery

May 13, 2019 By Deanna 5 Comments

When we get free of something, we have a desire to help others get that same freedom. I’ve found that to be true in my recovery from drug addiction/alcoholism, Christian walk, and debt freedom.

I’ve been helping women in recovery for years, but just recently starting teaching financial literacy to them. I did my first pilot course and am encouraged!

The Birth of Financial Literacy 101

I wrote on my blog that I was working on a financial literacy curriculum for women in recovery. Amazingly, a few requests came in from women running groups at local sober houses. The funny thing is that they didn’t even read my blog but simply knew my debt freedom story.

Sometimes when you put something out in the universe, it gets answered.

What better way to get motivated than to have a live session scheduled. So I scheduled our first three teaching sessions at a local women’s sober house and got to work on my curriculum.

Trial By Fire

I learn best by doing so while I prepared a PowerPoint that was used, the ladies really guided the course. They took me back to the basics with some of the questions they asked:

How do I find out how much my debts are?
I am not even sure who I still owe money to. How do I find out?
What if I haven’t paid taxes in years?

It’s totally understandable as drug addiction/alcoholism can take a person so far down that they neglect all responsibilities. I personally was high functioning while in addiction and tried to maintain my responsibilities. I still surfaced with a lot of debt but I knew who I owed.

This first week reminded me that no one story is unique and if I’m going to be teaching to an array of women in recovery, I need to start at the very basics.

You can view my PowerPoint here.

The Steps of Financial Literacy 101

People in recovery are used to following steps and so I decided the best way to design a curriculum was to break it down into bite-size steps.

Step 1 – Dream!

I asked the ladies to take 5 minutes to think and write down some of their aspirations in life. Here are the questions I asked them to ponder and write on:

What are your aspirations now that you are sober?
Do you have career goals?
What does living a life of purpose mean to you?
In your eyes, what does financial success look like?

After they did this a few women volunteered their answers.

It’s always good to start with the goal in mind. If you know what you are working towards, it makes the journey, and the steps, more purposeful.

Step 2 – Identify Your Debt

If you don’t know what the problem is you cannot work on it. Here’s where we had to start with the very basics. I taught them to go here to obtain a free credit report. You’ll see from the requested future lessons, they want a live demonstration of this and a lesson on how to read a credit report.

As one is identifying their debt, I suggested they write down all their creditors, the balance of their debt and the associated interest rate.

Step 3 – Breathe

I recognize that looking at the problem head-on can be a lot to take in all at once. Additionally, it can be overwhelming. This is why I included this step to stop, breathe, and trust the process.

I talked about how if we acknowledge the problem we can now formulate a plan to tackle it. It is really the first step towards gaining freedom.

Step 4 – Order of Precedence

Here’s where we start to order the debts in a specific order. While I used the debt snowball to get out of debt, I’m now a fan of combining the debt snowball and the debt avalanche to pay off debts.

Regardless of interest rates there are a few types of debts which must be placed at the top of the list always. Those are debts to the IRS and payday lenders (ugh).

IRS
Payday Loans
Any debts with a balance of $1,000 or less go next. Line them up from the smallest balance to largest.
For debts with a balance greater than $1,000, you’ll line them up from the highest interest rate to smallest.

Step 5 – Income

The women in this particular sober house are not working initially. However, once they become three quarters, they are to obtain a job. We spent a little time talking about income.

Some of the ladies had jobs waiting for them and so those would be ready to work on their budget. Most would be finding a new job so we went onto step 6.

Step 6a – Employable Skills

In this first part of step 6, I had them list past jobs they’ve had and the skills acquired. I gave them an example from my own life. I waitressed for many years and found that the skills I developed were:

Organization
Ability to prioritize
Customer service skills
Managing customer & colleague expectations
Communication

Step 6b – Training and Education

In this part of step 6, I had the ladies list any formal education and/or training they’ve received. Additionally, I reminded them it could include on the job training.

Step 7 – Budgets

Here is where things got fun! The woman running the group volunteered to bring her numbers so that we could set her up on a budget. So I was able to do a live budget with the ladies!

I have four budget templates that I’ve created on Google Sheets based on the typical pay periods:

If you use any of the above Google sheets, you’ll need to go to file –> make a copy –> and save yourself a copy so you can edit it.

Here is where I talked about using a basic checking account for paying bills, savings account for emergency funds, and cash envelopes for the rest. I think that utilizing cash envelopes when first employing a budget, is the easiest way to stay on track.

One of the ladies said that if she had cash envelopes in her purse she’d want to spend them all quickly. My suggestion was to keep them in a small safe at home and as you needed to use them, take them with you. However, I reminded them this is where the self-discipline comes in. When the money’s gone in an envelope, there is no more to spend so use it wisely.

What if there’s not enough money left at the end of the month when I do my budget?

This is also where I talked about the possibility of not having enough money left over at the end of the month to pay debts. In these instances, I reminded them to always take care of food, shelter, and water first. Next, they will need to call their creditors and explain why they are not yet able to pay them.

Additionally, I recommended that if they have any student loan debt and cannot pay it, they will need to call their student loan provider and apply for a deferment.

Communication with creditors is key when trying to work on your finances. Lastly, I advised them to never give a creditor access to their checking or savings account and to be firm when calling them as they may try to guilt them.

Future Topics

As I concluded my 3rd and final lesson, I asked them what else they would like to learn in the future. Here were their responses:

Secured versus unsecured credit cards
Calculating car payment and interest rates
- Truth & Lending
How to use Microsoft Excel
Building up credit
How to pull your credit report
- How to read your credit report

I will be working on these lessons and will go back in the summer to teach them.

Closing Thoughts

Before I could teach these ladies, I needed to share my story with them. Afterall why would they want to listen to me? Moreover, why would they trust me? Once they found out that I am just like them, they were interested in what I had to say.

These women want a fresh start. Additionally, they are looking for hope. It can be scary to look at a bunch of past debts; however, if they know there is a method to pay it off, it’s easier to swallow.

If sobriety is going to stick, a person has to know how to manage their lives and that includes their finances. I am eager to help provide the tools needed to women in recovery so they can find the same freedom I’ve found…

Theme pic by Tim Mossholder on Unsplash

Finding My Voice

April 4, 2019 By Deanna 14 Comments

All my life, I’ve doubted myself. I’ve looked to other people to tell me what I should think and do. I’ve asked so many different people about my life, that I’m swirling in a sea of voices. But there’s one voice that I’ve drowned out, and that voice is mine.

The Role of a Mentor

It’s probably no surprise that when I was in the throes of addiction, my mentors (if you want to call them that) were not healthy people. The people I sought approval from did not have my best interest at heart. Nor did I.

Through my recovery, I’ve learned to surround myself with healthier people. Additionally, I found mentors who are worthy of that title.

Mentors can come in many forms – sponsors, pastors, counselors, teachers, authors, etc. I’ve had them all. I’m grateful for them. They guided me and offered advice when my brain was healing and the fog was lifting.

When I wasn’t really quite sure what a healthy response was, they taught me. Furthermore, through these mentors, I learned to form healthier relationships.

Life is an evolution and lately, I’ve been having a new epiphany about the role of a mentor.

Mentors are really good. However, I believe the most important job of a mentor is to encourage their mentee to think for themselves. And as a Christian, the most important job of a pastor is to encourage their sheep to learn to hear the voice of God for themselves.

For some reason, I’ve always been drawn to mentors who will talk and think for me.

It’s not their fault. It’s what I was looking for. And it was what I needed at one time.

Finding My Voice

However, tonight as one of my mentors was talking I realized something. I realized no one is really listening to me. Additionally, I realized it’s because I’m always asking what other people think of my decisions.

I’m not really sure I need that anymore.

Sure, there is a time and a place to bounce things off of the important people in our lives, but overall, I know what I need to do. Furthermore, I have access to the same God and hear clearly.

I realized I don’t really need the approval of others if I have the approval of God.

Moreover, I’ve realized I really have something to say. And now I have the confidence to say it.

When The Teacher is Ready, The Students Will Appear

There is an Asian proverb that says, “when the student is ready, the teacher will appear.” I am experiencing the converse of that proverb is also true. I’m ready to teach and I have students lining up. Women are asking for my guidance.

Let me repeat that to convince myself it’s real, women are actually asking for my guidance.

Am I going to sit on the sidelines and let fear prevent me from embracing this? The old Deanna would say yes, but Deanna 2.0 says heck no!

In my writing, I’m getting to know my true self. Maybe you, as the readers are seeing it? I don’t know because I cannot look in from your perspectives.

However, I am noticing something. Whenever I bare my heart and soul, you leave heartwarming comments or send me emotion filled emails.

I don’t know if this blog is changing anyone’s life but I know it’s changing mine.

I’m finding my voice…finally.

Where Do We Go From Here?

So the thing I wrote vaguely about in my post on Monday, is that I feel led to go to Africa. I suspect I may be called to teach orphans there but first I must go on a short term mission trip and see if what’s on my heart is God’s will for my life.

I’ve told my family about it so I can write about it.

A lot will have to happen before this short term trip can occur but I’ve started to take action. Mainly, I’ve reached out to a pastor who leads short term mission trips to Uganda. I put the word out that I’m interested in going on one in 2020.

From there, it’s yet to be determined what will occurs after…

Teaching Here and Now

For now, this teacher (me!) has students here to teach and that is namely women who want to do better with their money.

I have a full-time day job which I enjoy a lot. Additionally, I blog on the side which brings me a lot of joy. As we’ve just established is allowing me to find my voice!

Now, though, I’m ready to guide some women in their financial endeavors.

How will I have time for all of this? Great question. As I’ll be working on some financial curriculums, I may have to reduce the number of posts I release per week. Currently, I post on Mondays and Thrusdays and I’m religiously disciplined about it.

For now, I’m not changing anything about my blog but I will begin working on some financial curriculums geared towards women. Potentially, I see the possibility of teaching them at recovery and sober houses. I’m sure, as the curriculums begin to take shape, I’ll get more clarity of where to teach them.

The Curriculums

As I think more seriously about teaching to women here, I think about the basics in financial literacy:

Budgeting
Saving
Spending
Giving
Getting out of debt
Investing
Planning for the future

As I meet more women in recovery, there seems to be no shortage of those who need to gain financial literacy. Being in the personal finance world, I see so many great teachers already out there and it’s easy to think, who the heck am I to teach on this stuff too? #ImposterSyndrome

And then I’m reminded that people are most apt to listen to someone who’s come out of the trenches themselves, dug their way out of debt, found freedom in budgeting, learned about investing, became mindful about spending, and is embracing a high savings rate. That’s me!! And I know I have nothing if I don’t give it away.

So I’m ready to take up this mantle as a teacher. After all, this is not a dress rehearsal.

Closing Thoughts

I’m continually reminded that life is an evolution and we are either growing or dying. We need to be willing to take calculated risks and go for our dreams, our purpose, and our passion.

Who is not being helped when I’m not living on purpose? Seriously, if I’m meant to help others in this manner, then who am I to say no?

So I’m ready to guide women into getting their financial ducks in a row so that they too can have the capacity to dream, be on purpose, and find their passion.

How about you? Are you ready to take action in your life? Who is not being helped because you are not doing your purpose?

Theme Photo by Frida Bredesen on Unsplash

The Only Requirement for Membership is a Desire to Achieve Financial Independence

March 28, 2019 By Deanna 5 Comments

So as many of you know, I’m 9 years sober. Additionally, I dug my way out of debt and now am on the path towards financial independence.

I had the idea for this post the other day when I was telling someone the similarities I see with people in recovery and people in the Financial Independence Retire Early (FIRE) community. This post is a dedication to the people in both communities.

Membership is Free

In recovery programs, the requirement to join is minimal. Basically, you need only have a desire for help. You don’t even have to have quit whatever addiction you want to recover from to join. You simply need the desire to quit.

Many people who come into recovery want to stop but don’t know how. However, in being surrounded by an entire community who has found a way to abstain, they find hope. Within that glimmer of hope, many people find sobriety if they have the ability, to be honest with themselves and others.

I came into the FIRE community when I was still paying off my debt and had very little saved for my retirement. People welcomed me with open arms and cheered me on. Furthermore, those who had gone before me were willing to share how they achieved financial independence.

I soak up as much information as possible from the community. Now that I’m above the line financially, I’m taking the appropriate action steps in saving for my retirement.

Seriously, the only desire for FIRE membership is a desire to achieve financial independence.

Commonalities Between People in Recovery and People in the FIRE Community

I was asked this question in an interview the other day – what similarities are there between people in recovery and people in the FIRE community? It’s a great question that I’m qualified to answer being I straddle both.

If you humor me, I’ll share some of the similarities I see…

Intentionality

People who are going for the audacious goal of financial independence are very intentional with all things surrounding money. This intentionality can include all sorts of things like:

Those things don’t just happen by mistake. They happen with effort, planning, and oh yes, intentionality!

I don’t know about you, but this fox looks pretty intent!

People may stumble into recovery because things are out of control. However, in order to stick and find a fulfilling recovery, one needs intentionality. This includes things like:

Admission
Asking for help
Taking direction
Trusting something bigger than you
Believing
Reviewing past resentments & relationships
Identifying your part
Letting go
Making amends
Forgiving yourself
Forging healthy relationships
Helping others

Tenacity

The quality or fact of being very determined.

This is also known as perseverance! So whether you are aiming to create a life of sobriety or to save for financial independence, you will need to possess this little trait.

While staying sober happens one day at a time, quality recovery is more than just not picking up. It’s about the things listed above so that you can heal, restore, and find a more meaningful life.

It’s a rich life too but you need to work through the muck in order to find the riches. In trudging the road of happy destiny, you’ll need to be tenacious in your effort.

Achieving financial independence does not happen overnight. Although, it does happen via making small decisions over a lifetime. The little things snowball into big things and one day with the glory of time & compound interest, you’ll hit it.

However, that is nothing to scoff at. There are always pressures to give into lifestyle creep and/or to keep up with the Joneses. Your best self-defense mechanism, IMHO, is to find what truly makes you happy.

When I was paying off my debt and making all kinds of sacrifices, I realized something. That something was that I was no less happy. My relationships with my family and friends are where I find the most joy in life. Getting out of debt and curbing my spending taught me how to enjoy relationships naturally without spending a lot of dough.

All this to stay, the marketers are really good at trying to get you to spend your hard earned money. So in order to stay the course, you’ll need to stay focused and determined. Moreover, you need tenacity.

Purpose

I see this as a common overlap with the FIRE community and the recovery community. We all seem to find our purpose and calling in life once we enter one of these communities.

I don’t want to shame anyone if you haven’t yet found your purpose. It takes time but just know that if you are in either community you on the road to discovering purpose in life.

People looking to retire early are typically retiring to passion projects that have a lot of purpose and meaning in their lives. Usually, when you are passionate about something, you are really good at it. Typically, when you are really good at something, you can earn money. See retirement can still be about making money!

I discovered my purpose in life is to teach. I was thrown off of it when I headed deep into the throes of addiction, but I’m back on track. Furthermore, I re-kindled this passion and purpose in working with women in recovery.

Today I get to teach in ways I wouldn’t have imagined.

Closing Thoughts

So do you think I’m crazy for the parallels I’ve drawn between the FIRE community and people in recovery? I totally see it and wanted to give insight because I suspect many people who read this blog are in one or the other but not both.

There is a lot of common ground.

Moreover, I hope you know that if you have a desire to join either community, you’ve already hit the minimum requirement for membership. Perhaps you simply have the desire to achieve financial independence, we’ll you are in! If you don’t know where to start, you can virtually participate in blog comments, forums, and Facebook groups. For in-person meetups, check out some local groups or a CampFI.

Or perhaps you have a desire to get sober and if that is the case you are welcome into recovery. If you don’t know where to go, please see my recovery resources page. Additionally, feel free to send me a message.

Desire is just the first step. If you have that awesome! You are ready to take the next step. The next step requires action and reaching out to someone in the community. 🙂

P.S. I got to be interviewed by Curt & Wendy on the House of FI podcast and you can listen to it right here!

How Sobriety Lead me to Faith and Financial Freedom

March 4, 2019 By Deanna 9 Comments

Hello everyone! I was given the opportunity to share my story with the readers of Bible Money Matters. It’s an awesome website run by an impressive young man, Peter Anderson. Their tagline is: Give more. Save more. Live more.

If you haven’t checked out their site yet, I highly recommend that you do as there is a lot of valuable content there.

Anyway, I wanted to make sure you had a chance to read my guest post for Bible Money Matters, so here it is…

How Sobriety Lead me to Faith and Financial Freedom

It was a hot August evening in 2016 and I was praying feverishly. My house was in foreclosure and my attorney was going to court the next day to ask for a waiver of deficiency.

I had come so far and yet, here I was…another loss.

As I prayed the Lord took me to Deuteronomy:

At the end of every 7 years, you shall grant a release of debts. – Deuteronomy 15:1

What a Difference 7 Years Can Make

I asked God, why me? Why does this scripture apply to me now? The Lord put it on my heart to think about where I was 7 years prior.

So, I calculated it out and immediately fell to my knees sobbing.

It was 7 years to the month when God delivered me from an abusive relationship and drug addiction. Heck, it might have even been 7 years to the date.

When you get out of such wreckages, you don’t always note the date.

Absolution

My attorney went to court the next day and the bank bought the house back. Additionally, they waived the deficiency. I again cried and was overwhelmed at His grace and mercy. Up to this point, I had been making an effort to pay off my debt, but I was completely underwater on this house. I moved out a year prior and pursued a short sale for a couple of reasons:

Some major things broke
It was no longer a safe neighborhood for a single woman

Once the foreclosure was completed I knew it was time to turn up the heat and repay the remainder of my debt. God showed me favor and I needed to do my part.