I’ll be honest, when I picked up #GirlBoss by Sophia Amoruso I never thought there would be so many valuable personal finance lessons in it. Business advice, tips, and motivation were my expectations, but what I received was a well rounded, personal account of someone who did the unexpected in her own way. Sophia Amoruso built a multi-million dollar business from the ground up with NO DEBT.
That’s a huge deal, however that’s not going to be the focus of this review. #GirlBoss was published two years ago, so there are tons of reviews and articles highlighting that huge accomplishment (she even mentions it in the book). I’d like to highlight some of the key money management tips that Sophia shares.
Here are 4 money lessons you can learn from #GirlBoss.
Tip #1 Know what you’re getting into before signing on the dotted line (or pen pad)
“I thought I was signing up for a rewards program, where I’d earn points toward a free bra or something. What I failed to realize at that moment was that I had unknowingly been bestowed my very first credit card.” -Sophia Amoruso, #GirlBoss
She goes on to explain how that one purchase ultimately ruined her credit which is why she was unable to take out any sort of business loan. This is something that happens quite often and most people aren’t truly aware of the effects until they’re ready to make a major purchase.
Lesson: Before signing up for anything, make sure you are fully aware of the details regarding the agreement. Credit card applications require a social security number, reward programs don’t. So, if you find that you are being asked to supply your social for a purchase, you are more than likely signing up for some sort of credit account. If the terms work for you and your budget, great! If they don’t, stop the process before you sign.
Tip #2: Pay all of your bills on time
“Big companies are like the mob — they never forget, they never give up, and they always get their money. Get them before they get you: Pay up, and pay on time.” -Sophia Amoruso, #GirlBoss
It’s very easy to turn a blind eye towards a bill that you have no intentions of paying. That’s either because you don’t have the money or you have other things that you’d rather do with it. HOWEVER, you will end up paying for it anyway! You’ll either pay the amount asked or the amount plus fees. Either way you’re going to have to shell out the cash.
Lesson:Don't ignore a bill because you can't afford to pay it. Click To Tweet
Creditors will work with you if you keep an open line of communication. Find out about any payment arrangements that can be made. See if your interest rate can be reduced. Discuss a possible modification. You have options, but they become limited the longer you wait.
Tip #3: You’re never too rich to be frugal
#GirlBoss is a rags to riches autobiography about Sophia Amoruso going from dumpster diving to gracing the cover of Forbes magazine with a net worth of $100 million plus. What I found to be the most interesting (and inspiring) is the fact that she continues to stress the importance of frugality. Whether it’s implementing a lean business culture or buying all of her office furniture from IKEA to purchasing a used Nissan Altima even after her business had amassed major success.
More importantly, stay in your financial lane! Even if your budget can handle a $1,000 shoe purchase, does it make sense? Don’t make large, irrational purchases. Continue to use a budget no matter how good your money is flowing.
Tip #4: Your situation doesn’t have to be permanent
Sophia went from stealing and dumpster diving to running a successful company that employs over 300 people. She had poor credit, no savings, and barely a place to live. If she looked at her situation at face value she more than likely would have remained there.
Lesson: Think beyond your present situation. Your finances may be all over the place, but that doesn’t mean it will be that way forever. Come up with a game plan that will get you out of a financial rut. Get laser focused on achieving your goals. #GirlBoss is a great example of how hard work and determination can allow you to shift your circumstance.
There is so much more greatness included in #GirlBoss that wasn’t covered today. I definitely recommend reading this book for inspiration, but as motivation to get your ish together.