Today’s episode features Gina from The Frugal Convert.
Gina has a powerful story of being alone and broke at age 19 with a child to take care of.
She didn’t let her circumstances define her and took control of her life.
Then over time, things began to slip again and she realized she needed to change at a more conscious level.
Now she’s a full-fledged frugal convert and closing in on financial independence.
Listen, learn, and let us know what you think about Gina’s wild ride.
Episode Summary
Gina’s “Jar of Pickles” Moment
Gina found herself 19, newly married, and pregnant and totally broke.Her then-husband took her phone, car, credit cards…everythingShe was hungry and alone in her home and had nothing to eat but picklesThen she found herself on the floor cryingGina then started going through all the bad decisions she’d made in her life that led to thisBut then she decided she could take controlShe divorced him and life moved onNow she’s married to the man of her dreamsGina takes steps back again
Things were going well for a while after her wake-up momentThen Gina got comfortable and started racking up credit card debtShe and her husband were happy and well employed but her habits hadn’t changedThen they found themselves in over $100k in debtEarlier in life, she had racked up debtShe had done this because her rent was $1150, she was going to college, had a kid, and only earned $1200 per monthGina would get a loan to consolidate her debt but then keep racking up more with the new limitMaking Habits Stick
Gina realized that she would have to really change her habits to turn her life aroundHer first step was to start really tracking her spendingIt wasn’t cold turkey, she just lowered the frequency of disposable spendingEating out once a week instead of three times a week, etcShe admits she tried to make a budget before she tracked her spendingThat is generally a big mistake and leads to failureWithout a point in time, it is hard to make reasonable projectionsShe also says that a budget should be a living documentIt can’t be something you set and never adjustGina utilizes an excel spreadsheet and breaks it into four categoriesThe first is survival – food, utilities, rentThe second is debtThe third is extras – Netflix, eating out, etcThe fourth is fun money – even if you still have some debt to pay offRedefining Frugality
It’s not about deprivation, it’s about reprioritizationIt is fun and rewarding to be frugalYou become picky about what you spend your money on and only focus it on things you’re excited aboutShe also began to realize that she was actually just buying things because it was a habitIt wasn’t that she needed them or even wanted them long termNow she’s much more into decluttering and keeping things simpleFinally, Gina walks us through how this is all possible in Los AngelesShe also shares budgeting with her kidsThey don’t feel deprived, they are just getting educated and comfortable with moneyLeaving A Legacy
She really wants to follow her passions full time and step away from traditional workGina also wants to get more into real estate and having extra streams of incomeIn 2007 they had bought a condo, then the 2009 crash happenedHer husband lost his job because it was tied to the mortgage industryShe was furloughed due to the turndownSo her focus will be on diversifying their income streamsHer real passion is going out and being hands-on with moms in the welfareShe wants to develop programs they can use to take control of their financesKey Takeaways
When Life Hands you Lemons: Gina had every right to be down on life and never crawl out of her low spots, but she always learned and improved herself.Behind Every Paycheck is a Passion: Gina acknowledges that her day to day job isn’t her passion, but she has a plan to make that passion come to lifeCall to Action
We often talk about what we NEED to retire, as an exercise, calculate out what your Survival portion of your budget is (Rent, food, utilities, etc). It will help you identify your trade space when working towards financial independence
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Gina’s Information
Gina’s Website: The Frugal Convert
Instagram: @TheFrugalConvert
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