Curing Urban Addiction

Step #1: The Diagnosis

Join me on the journey to living the royal life in the big city without destroying your financial, mental and physical health in the process. There’s good news & bad news. Bad news first – it’s not going to be easy. The good news is that all three are interrelated so if you improve one then you improve them all! This blog serves as a resource of how to get your cake and eat it too!

As the old cliché says, Step 1 is always the hardest, admitting there’s a Problem. I can’t tell you how many times I made excuses for my own financial hardships. You know them all…I don’t make enough money…I’m accustomed to a certain lifestyle…I can’t cut anything else from my budget… I deserve that (fill in the blank with your own obsession) because I work hard… Well it is on sale (my personal fave)… Welcome to your intervention.

Despite the horrific economic problems we’re facing today, there are still some red flags which will let you know if you need “lifestyle rehab.” Take a look at the following red flags to see if you suffer from urban addiction:

1. Really if you don’t pass this flag then there’s no need to read any further. You are officially an Urban Addict. Not to be alarmed. I’m still in the 12-step recovery program myself. Last summer while in NYC I attended a FREE seminar sponsored by a wonderful organization called Women in Entertainment Empowerment Network Check out their website here. Anywho, the seminar focused on women’s health in all areas – spiritual, physical & financial. When it came to the finance portion I had already made up my mind that there was nothing the moderator could say that I hadn’t heard before. Then, as usual, the universe proved me wrong. The first thing the moderator asked was how many of you are living Friday to Monday? Huh? I’d heard check to check or Friday to Friday but never Friday to Monday. Then as she explained I discovered that not only was I guilty of living Friday to Monday but heck I could be the posterchild. Living Friday to Monday is when you get paid on Friday & by Monday you’re broke again. There are countless times when I couldn’t wait til my direct deposit posted because I had already figured out exactly how to spend it. And within a matter of hours sometimes less and a few mouse clicks I was flat broke (AGAIN!). Hell I didn’t even make it to Monday. Maybe I’m the only one, but I’m all about keeping it real. If this isn’t you then keep on reading.

2. What is your cash vs. debt ratio? This seems simple enough but could you tell me right this moment what yours is? I know, I know you don’t have time to figure it out but no fear Mint.com is here! I discovered this site about a year ago while reading Essence mag. It’s ridiculously easy & fast to sign up. Just go to Mint.com and register for FREE! Once you’ve registered then you connect all of your different financial accounts to this site (bank accounts, brokerage accounts, 401ks/IRAs, student loans, credit cards, etc.) This FREE online money management site instantly calculates all sorts of nifty tools from your cash to debt ratio, charts of your spending habits and much more. You can even set-up emails of weekly financial summaries and low balance alerts. So back to the point, if your cash to debt ratio is negative then you need rehab.

3. How long can you survive if you don’t work another day? You may have heard it several times before but with the current economic crisis it’s time to take heed if you haven’t been doing so already. Financial advisers suggest that you keep 3-6 months pay safely tucked away in an interest bearing savings account your retirement savings doesn’t count! Anywho, this is tough for most 20-somethings including myself so at the very least you should have 4-6 weeks of pay at any given time at your disposal in case that unexpected pops up and we all know that it always does. Now, it’s time to answer the question…how many weeks could you survive…3…2...1…less??? Eeek!!!

4. Is FICO your friend or foe? Do you cringe whenever someone tells you “We’ll just need to do a credit check”? Have you missed out on that dream apartment or condo or car because of Mr. FICO? The average FICO score in the U.S. is 723. And now with the current economic climate it is more important than ever to be "above average." Visit My Fico to learn more about how just a few points can dramatically change your credit outlook.

There are many other red flags, but for now we will deal with four of the most fundamental areas, which in some way affect every other aspect of your financial horizon. If you have found that you indeed suffer from Urban Addiction, no worries because you’re not alone. I am on the journey of recovery with you. Use this blog as a resource to help you transform your life into a more abundant life of fabulosity. I will be sharing my strategies with you as I implement them in my own life. I invite you on to join me in this adventure.

On the other hand, if you passed all of these flags with flying colors then more power to you. Maybe you can find some comic relief here as I share my tales of brokedom.

And by all means, PLEASE share your tips & personal stories with us by sending me an email to: shelbyrenee@blackheiress.com. I’ll post your tips for the entire blog community to learn from.

For the rest of us who need to cure our Urban Addiction, over the next few weeks I will focus on explaining the Urban Addiction 12-Step Recovery Program, which has saved my sanity. It includes the following additional steps:

Step #2: Trimming the Fat

Step #3: Hobby Hustlin’

Step #4: Night at the Museum

Step #5: Tea Baggin’

Step #6: Cash Only

Step #7: Swingin’

Step #8: Friends with Benefits

Step # 9: Golddiggin’

Step #10: DIYD

Step #11: These Choos Were Made for Walkin’

Step #12: The Morning After