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Having learned to overcome money regrets, the author and co-host of the Money Feels podcast aims to “coast” into retirement.
Alyssa Davies doesn’t let complex calculations get in the way of making sound financial decisions—though she does advocate for tracking your spending. “I strongly believe that money is less about numbers and math, and more about emotions and feelings,” she writes on her award-winning blog, Mixed Up Money. A lot of personal finance advice comes off as prescriptive, which can lead to shame and guilt, she believes. Want better control of your finances and your future? Start by letting go of those feelings, she says.
There’s a tone of healing and self-care in everything the Calgary-based author does—from her most recent book, Financial First Aid, to her new podcast, Money Feels, which she co-hosts with her friend and fellow finance expert Bridget Casey. Davies talks about having “healed” her own relationship with money, and now she has goals of CoastFIRE—an offshoot of the Financial Independence, Retire Early (FIRE) movement for those who want to secure the ability to live well in retirement long before they stop working. She hopes to achieve this by age 35. Read on for more of her attitude toward money and more.
Most of my financial heroes and influences come from within the personal finance community. This is because we have such a tight-knit group of people, and we all teach each other, are willing to discuss complex topics, and help boost one another. For example, I’m a huge fan of Erica Alini, author of Money Like You Mean It. I also love Chelsea Fagan [founder] of The Financial Diet for her transparency and candid thoughts about controversial money topics.
I spend most of my free time on hobbies I cannot monetize. I struggle with resting and relaxing, so I make sure I prioritize things like soccer, reading and spending time with my family and friends. I would also never say no to a day spent window shopping for home decor.
I’d focus more of my time and energy on advocating for those who cannot advocate for themselves. I’m passionate about affordable housing and wealth redistribution, so I’d spend most of my efforts there. Otherwise, I’d be living on a beach in Portugal with my husband and two kids—and I probably wouldn’t exist online in any capacity!
One of my earliest money memories is going to the bank with my mom to open my first account and get a debit card. I remember putting our little bank books into the ATM to print off our purchase history and being amazed.
An Aqua CD. For those who don’t know, Aqua is the Danish-Norwegian Europop group who are famous for the timeless song “Barbie Girl.”
My very first job was working at a Dairy Queen. I didn’t have my license or a car at the time, so my parents had to drive me. I don’t remember what I did with my first paycheque, but I’m confident most of it was spent within the next few days, and some of it would have gone to ice cream while I was at work—a vicious cycle.
Success is not about timing the market as an investor. Instead, it’s about time in the market. Just being consistent with your contributions, doing as much as you can as early as you can, and having a plan for your financial future is enough.
Try to add a sinking fund or increase your emergency fund, if nothing else makes you feel secure when struggling financially. And if you don’t yet have an emergency fund, take stock of what your barebones budget looks like and consider your options if you lose your job unexpectedly or face another financial emergency.
To cut back on everything you enjoy when feeling a financial pinch. Instead, it’s important to focus on your fixed expenses first. Consider making more permanent changes in your budget, rather than attempting to cut smaller costs that bring you joy. Things like coffee, takeout and hobbies will move the needle on your budget less than negotiating your rent or taking inventory of all your subscriptions. It’s better to cut anything you pay monthly at a fixed price, because it saves you from worrying whether you’ll be OK the next month.
At this point in my life, I’d love a large sum of money all at once. That’s because I’m attempting CoastFIRE by 35—a more laid-back version of the Financial Independence, Retire Early (FIRE) strategy that involves front-loading your retirement accounts as early in life as possible, so that you can coast to retirement with less worry. If I got a lump sum, I’d likely invest it to hit my savings goal a few years earlier, buy more time in the market and let compounding do its magic.
Negotiating. You can negotiate nearly everything in life, and many people discount the value of doing this. One example is to be bold and contact your lenders to see if there’s anything they can do to decrease your interest rates. You might be told “no,” but it’s still worth asking. If they say “yes,” and you can lower your interest rate on your credit card, that might give you the ability to pay off more than your monthly minimum and get ahead of your debt. The same goes for phone bills, salary, subscription services, and even everyday purchases at department stores.
Many people who want to build wealth find the journey exhausting and see little progress and reward. Most things with money take time, but when it comes to building wealth, once you finally achieve one hurdle, progress comes faster and faster each time. It is a slow burn at the beginning, but it’s worth it, because each year that passes provides you with more and more financial freedom.
A money regret for me is not investing at the same time I was paying off my debt. Had I given myself a few more years in the stock market in my early 20s, I would be much closer to achieving my financial independence goals. But at the time, I thought I couldn’t do both, and I was more interested in paying off my debt as fast as possible. Of course, neither way is wrong, but knowing what I know now, I would do a few things differently.
Value to me is anything that makes my life more convenient. I’m not interested in buying more “stuff.” I want to spend my money on things that give me back time.
The first purchase that made me sweat was buying my home. It was a massive amount of money, a long-term investment and a big responsibility. Yet, surprisingly, it took me little to no time to choose a property. I had been researching and doing the math on my ideal home for five years before the closing date. Three years later, it’s still my favourite purchase ever.
I used to label debt with adjectives like “good” and “bad”—which many financial experts will do. Today, I view debt a little differently. Many people cannot achieve the milestones or goals they’ve set for themselves without taking on debt. And many wealthier people don’t even consider it “debt”; they see it as leverage. So, I’d say that debt can be a tool in the proper context and with good intentions.
A family vacation to Phoenix. We hadn’t travelled since my first child was six-months old, so it was well worth the money to have her experience an airplane ride again and have my now one-year-old have his first chance at the same.
Scarcity: The New Science of Having Less and How It Defines Our Lives. It’s an excellent look at the science and psychology behind having too little and its significant impact on our ability to function in society. I highly recommend it. Money is extremely psychological, and I’m super into the behavioural aspect of finance. It aligns with what Bridget Casey and I speak about on our new podcast, Money Feels.
I always keep a $50 gas gift card for an emergency. You never know when you might need a backup plan.
My iPad and Apple Pencil. I love drawing illustrations for my social media platforms because it is relaxing and fun.
My current money goals are to achieve two things by age 35: CoastFIRE, and an income of more than $150,000.
It depends on the numbers. For me, renting is always the better decision for your budget. But owning my home was an emotional investment. I love having permanence, security and my own space to build roots with my family.
I lease my vehicle, which would make many financial experts cringe. But, because we have two young kids and our life changes so much year after year, I like the flexibility of making a significant change in our vehicle needs every few years. I also love not worrying about maintenance and having a new car.
Both! It’s best to have both short- and long-term financial goals that you’re striving to achieve.
You might not have a spreadsheet, but everyone is on a budget. After all, we only have so much money each month. So as long as you’re intricately aware of your income and expenses and can adapt as needed, you’re probably doing okay. But I always encourage people to do monthly check-ins of some kind.
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