With 2024 on the horizon, many of us are beginning to contemplate our future goals. What new ideas do we want to bring to life? What areas of our lives need improvement? Personally, I have always struggled with my finances. While I consider myself stable, I have never been able to invest or save as much as I would like. And I know I’m not alone in this struggle, especially in our current economy.
That’s why I was thrilled to have the opportunity to speak with Rachael Hanible, a personal finance coach, author, and certified financial instructor. Rachael, a 36-year-old native of Philadelphia, has an inspiring story. She has paid off over $92,000 in debt, saved a year’s worth of her income, and boasts an impressive credit score of 846. In our conversation with xoNecole, Rachael shared her finance journey and offered some valuable tips for those of us looking to make money moves.
When asked about her journey to paying off her debt, Rachael explained that it was a combination of factors. She had student loan debt, a car note, and credit card debt. Despite growing up poor, Rachael always believed that she was destined for wealth. She woke up one day with the idea of being debt-free, even though she didn’t know anyone who had achieved that. After finishing college, she revisited this idea and began formulating a plan.
Rachael’s process involved calculating her debt and realizing how much was being added to her student loan daily. She wanted to cut down the number of days she owed that money, so she started making extra payments. She began with an extra $5 towards her student loans and an extra $20 towards her car note. As she found and grew more income, she remained consistent with this approach. Now, almost 13 years later, she is debt-free in both areas.
When asked about her relationship with money, Rachael admitted that it wasn’t always positive. However, her studies in business law sparked her interest in investing and financial literacy. She began educating herself on topics like ROTH IRAs and investing, which led her on a journey of learning and growth.
Before achieving her current financial success, Rachael’s biggest splurge was shoes. She has over 100 pairs, but she believes in treating herself occasionally. She also shared that she used to teach Excel classes in her apartment to make some extra money. She values integrity over income and appreciates how her journey has come full circle.
Currently, Rachael’s major financial goal is to pay off her 30-year mortgage in eight years. She is averaging about $3,000 a month towards savings and home loans. When asked about her decision to turn her financial skills into a business, Rachael explained that she had been helping people for years, and eventually, people started suggesting that she should start charging for her services. This led to the development of multiple streams of income, including teaching classes for kids, writing books, and teaching about real estate, budgeting, and credit.
Rachael faced challenges in the beginning, as financial literacy was not a popular or widely discussed topic. People didn’t initially see her as relatable, and she had to fight through those misconceptions. However, she found support from her mother, a pastor, her big sister, and her best friend. They provide her with encouragement and guidance in both business and personal matters.
Through her work with diverse clientele, Rachael has noticed unhealthy spending habits tied to mindset. Many people don’t believe that freedom, luxury, or wealth is attainable for them, regardless of their financial situation. Rachael believes that once we shift our mindset, we can hold onto wealth and make better financial decisions.
Rachael defines wealth as freedom and options. It’s about being able to make decisions on your own terms and not being limited by financial constraints. When it comes to investing, Rachael has a traditional 401k, Roth IRA, brokerage account, and high-yield savings account. She believes in having an emergency fund and setting a “freedom number” to prepare for unexpected events. After that, she suggests splitting your income between investing and saving.
In terms of budgeting, Rachael emphasizes the importance of being detailed. Many people work hard for their money but have no idea where it goes. Small expenses can add up quickly, so it’s crucial to track every dollar. By being mindful of our spending and making intentional financial choices, we can achieve our financial goals.
Rachael’s story is an inspiration to anyone looking to improve their financial situation. Her journey from debt to financial freedom showcases the power of determination, discipline, and education. By adopting her tips and mindset, we can all work towards achieving our own money moves.