Financial Fundamentals

Darryl Boyles, Personal Finance Coach, helps his clients develop a healthy relationship with money. As the founder of Bridge The Gap, Darryl uses his money story to help hundreds break the paycheck-to-paycheck cycle and create a life they love. He is the author of One Paycheck at a Time: Financial Solutions for Everyday People, where he reveals a powerful money management system to help readers spend less time worrying about money and more time enjoying life. He is a proud husband, father, realtor, and speaker.

Rosalind: Thank you Darryl for taking the time to do this but for those who are not familiar with you, can you tell me more about your background and how you came to the realization that living paycheck to paycheck wasn’t enough?

Darryl: Being raised in a household where money wasn’t available in abundance, I noticed that I was repeating the same cycle that I grew to hate. I came to the realization that I didn’t have to live this way. One day, I met a millionaire who challenged my entire thought process towards money. I witnessed he and his wife living a lifestyle based on what they choose to do and not what they could afford to do.

Rosalind: That’s powerful! A lifestyle based on what they choose to do and not what they could afford to do…There is so much in that statement but many Americans live paycheck to paycheck. What do you say to the person who is struggling financially and almost everything they have goes to paying their bills or household expenses?

Darryl: If you’re struggling financially, here are some tips to get on the right track:

1. Take ownership of your current finances. Don’t blame or criticize anyone else for the amount of money that they have.

2. Identify exactly what you would like your finances to look like. To do this, you would need to identify the exact amount of money you would like to earn down to the dollar. The destination is more important than your current location.

3. Take a true assessment of where you are financially and identify the habits that got you there.

4. Make the commitment to improving your finances a priority. You would be surprised how thing could change once making a commitment.

Rosalind: Over the years, I have tried to save using different methods. There was one method that I saw on Facebook with paying yourself one amount for the first week and then continue to increase it as the weeks went by. I didn’t stay on that method long! Just the first payments to myself were hard! The concept of saving is difficult for many. Why is that?

Darryl: I think there are multiple reasons why people find it hard to save their money. One of the main reasons is not realizing how important savings are once that emergency arrives and it is too late to prepare. Also having a false sense of security of the next coming paycheck. If people would start to realize that their next paycheck isn’t as secure as they think, they would make savings a priority.

Sale items really are not that good of a deal. If you save enough of the sale money, you could have the capital to invest in that business you want to start.

Having a false sense of security of the next coming paycheck...

Rosalind: That is so true I believe that so much more now than I did when I first started my career. I have learned that saving money definitely requires discipline. What are some ways in which you have disciplined yourself? What have you opted to give up?

Darryl: Discipline is definitely one of the biggest traits required to build your cash reserve. One of the ways I’ve disciplined myself is keeping my goals in mind. My main goal with my finances is to become financially free. Financial freedom isn’t an age but it’s a dollar amount. The ability to have complete control of my time while generating the income to provide the quality of life that I and my loved ones deserve outweighs impulse spending.

That impulse spending will get you every time! It got me for the holidays but I will admit that I’ve done better than in past years.

Rosalind: So let me ask you this, when researching savings accounts, what type of benefits should we look for or stay away from?

Darryl: I always recommend people to open an online savings account. The money in that account typically takes 1 to 2 days to transfer. This will eliminate impulse shopping which causes most people to double dip into their savings and spend money on things that don’t align with their financial goals. But, please make sure any account you open is FDIC (Federal Deposit Insurance Corporation) insured.

Rosalind: I’ve heard so much whether it be in the news or through my own personal research about the stock market and I have to say, it is a bit intimidating. Many people are scared of the stock market simply because they don’t understand how it works. Can you provide a short explanation of how it works and give examples of the types of stock to invest in as a newbie?

Darryl: The stock market is simple a place where you can buy a piece (called a share) of a company. Warren Buffet’s advice is for new investors to open a “Low Cost S&P 500 Index Fund” and let our money grow as the years go on and the economy grows. This account gives us the ability to own a small percentage of the top 500 companies in the U.S. Instead of a one share of one company we a small piece of the best performing 500 companies.

Rosalind: If there was one piece of advice that you wish you had received when you were younger about the importance of saving your money, what would it be?

Darryl: One of the things that I wish I knew earlier in life was that the small consistent dollar always adds up. I once believed the myth that I didn’t make enough to save, so I didn’t save anything at all. But the truth is, no matter how much you save, as long as it is consistent--it will always add up and grow. Most working adults don’t have at least $1,000 saved but they could reach that $1,000 mark by saving at least $19.25 weekly for one year.

Rosalind: Wow, I will have to try saving the $19.25 a week and see what happens at the end of the year. Darryl this has certainly been eye opening and thank you so much for the tips that you have shared.

To learn more about money management tips from Darryl, check out his book called One Paycheck At A Time available on Amazon and join his Financial Fundamentals group on Facebook.