With continued reports of a looming recession on the horizon, there’s no time like the current to evaluate your financial health and even make a number of adjustments where mandatory.

In the course of the 2022 ESSENCE Festival of Culture, Certified Financial Educator Christian Lovell sat down with Comedic Actress and Social Media Influencer Lala Milan on the Wealth & Power stage to discuss all things budgeting with a bit of help from our partners at AT&T. In between sharing a number of relatable personal lessons learned from years of bad spending habits and poor financial decision-making, the women took the audience through Christian’s 4-step system designed to enable you reach financial wellness.

Scroll through below to see 5 things we learned from their conversation after which watch the video above to listen to their discussion full, including a whole breakdown of Christian’s 4-step system. For more of every part you missed on the 2022 ESSENCE Festival of Culture, visit our official video content hub HERE.

01

Every Dollar Has A Job

“I take advantage of the zero-based budgeting method, which implies every dollar I even have has a job, right down to the penny,” Christian says. “Because while you don’t give every dollar a job, that’s when your money disappears. How many individuals have gotten paid and at the tip of the two weeks, they’re like, ‘I don’t know where my money has gone.’ So, prioritize what you care about, spend some money on yourself, and cut out what’s unnecessary.”

02

Spending On Yourself Should Be Part Of Your Budget Plan

“I began my journey in a really restrictive place. I used to be six figures in debt and I used to be like, ‘I would like to limit each penny. I can’t spend anything on myself, I would like to fast-track my goals. But again, I used to be in that cycle of over-restriction after which I’d go splurge. I’d go to the mall and buy every part I saw because I had restricted for thus long and that’s not a healthy lifestyle to live. So, make certain you allocate a certain percentage of your budget to spend on yourself.”

03

Savings

04

Credit Cards Are Not Evil, It’s How You Use Them That Matters

“Get out of high-interest debt and stay out of high-interest debt. Use your bank card to purchase your gas, buy your food, treat yourself a bit of bit. Put as much expenses as you’ll be able to on that bank card, but make certain you’re paying off that balance monthly and never carryibng a balance month-to-month because that’s what gets people in trouble because you then’ll be paying $100 in your bank card with $75 going to interest and only $25 goes to the principle. You’re not going to make any progress like that. Bank cards should not evil, it’s how you utilize them that matters.”

05

Pursue Your Long-Term Financial Goals While Budgeting Is Possible

“Pursue your long-term goals. That might mean investing in real estate, investing within the stock market or retiring early. What which may seem like is making a plan that works for you in long-term goals.”