Financial Report Card: Natasha G.

This post is one in a series from real actual life. Along the financial journey, we do some things well and others not so well. We learn as we go, and benefit from sharing our stories.

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Natasha G., 31 (she/her)

Professional coach and business owner, Chicago

Looking back at your 20s, how would you grade yourself in the five key areas of personal finance?

Creating income: B

I went into the corporate world right out of college. That made things pretty simple to start with. I knew there was a pay gap, and I negotiated every year, base salary and bonus. Two years in, I was doing the work of multiple people and running the whole function myself. I did my research based on market data, so I knew my worth. I knew that if the company appreciated me, they would meet me where I wanted to be.

I had an entrepreneurial mindset and was always trying different things. I bought my first rental property fairly early. I wanted my approach to money-making to be transformational rather than transactional, and I took the long-term perspective. I had a goal in mind to hit six figures by a certain age and was able to accomplish that. Knowing how to generate income helped me start my own business years later.

Spending less than you made: A+, later B

A mentor told me, “Always have your ‘eff you’ money.” The first few years, I was very good at this because I’d started really young with saving. I’d get money for good grades and for my birthday. I learned to save all year long. I grew up in a single parent household and was a first generation college student, so financial independence was important. My uncle taught me the importance of paying things on time, even ahead of schedule.

I got scholarships my entire school career. I learned that people will pay you for fellowships (during college). My employer paid for grad school. I always had enough not to freak out, and enough for my mom not to freak out. I love to travel and would save up for that before spending it. I had the perspective that I was my own fallback plan.

Later when I was working, I co-founded an organization to help women connect and develop their careers. The first year, everything was donated to us through the support of small businesses in the city, which was helpful.

The corporate world trains you to get a check every two weeks. It’s easy to get used to that. Now I work for myself, contract based, with clients who have their own businesses. My income is less scheduled. It took a while for me to learn to manage that efficiently.

Paying down debt: A+

This is essential. According to my credit score, I’m doing very well here. I learned that for me it’s a "must" not to have things hanging over my head. But credit cards get tricky. “I thought I just paid it down!”

The struggle is real even if you’re paying minimums. I learned to be very careful here because racking it up is easy, and you end up paying over and over. Now I’m even more conscious than I used to be. I’ve learned why and how to use credit, and to focus on those habits I was taught early on. I do still have one student loan I haven’t paid off yet.

Investing in your future: A-

I was always focused on this. I researched and learned a lot. I got into “Rich Dad, Poor Dad” on Youtube. I read The Truth About Money. I listened to the “Bigger Pockets” podcast. I asked a friend who worked at an investment firm. Later on I received coaching. I also learned a lot being in the nonprofit industry and seeing how they raise money.

I thought about what I wanted to be: a passive vs. an active investor. If I have $10,000, how do I use it? Retirement vs. my property vs. my business?

Real estate is where I really did well. I started early with a multifamily investment property, and then got my feet wet by buying something to flip. It was a huge headache really, and not necessarily a great investment, but I did make a profit. It was still a very good experience. My older sister was a great role model here. She’s now a broker but she had to figure all of that out on her own, and I learned a lot from her successes and failures.

I could have been more aggressive with my 401(k). I contributed about 10 percent but didn’t do the maximum. I always thought about how I could use that money for other things.

Knowing your money: B

I have a handle on this overall. I have a budget and a rough spending cap, that’s important. I have investments. I check all my accounts regularly, more often than monthly. So I’m on the ball with those things but I could always be a little more diligent. Now I’m working on the fine lines and the nitty gritty. I’m reading more into insurance policies and developing a better understanding of mutual funds for my 401(k).

Taxes are still challenging. I wasn’t taught that at all. Now I’ve made the choice to hire an accountant, because owning property and having a business make taxes complicated. The IRS is serious, so I’d rather let a professional handle it for me.

My husband and I have separate finances, but I keep an eye on them for both of us. Right now we’re planning some travel and trying to decide where to live. City? Burbs? A farm? We’re thinking about buying property together.

I’m at an inflection point now. What do I want the future to be? I’m running my own business, choosing my clients, shifting my work as needed. But I don’t want to spend my whole life working.

People are starting to get tired of hustle culture and asking questions about new ways of being, working, and living. Who knows if you’ll get to enjoy it all? Is Social Security even going to be a thing? I’m interested in stories of people who started with zero and people who live in minimalist ways.

I’m better at giving now than I was when I worked in corporate. That has to do with the psychology and mentality around it, more related to how I perceive myself. I’ve been more focused with it in the last couple of years.