How I Transformed My Finances In Just One Year

I am a thirty-seven-year-old woman, and I hold a senior-level position at a marketing agency. Yet, like most other millennials, my salary barely provides enough money to pay the bills. For most of my twenties and early thirties, I was okay with making ends meet with a tiny excess towards savings or retirement.

As long as I’m getting by, I’m doing fine… right?

Unfortunately, something happened in 2022 that made me realize just how dangerous living paycheck to paycheck is: my partner died.

In the blink of an eye, I went from “barely getting by” to trying to maintain a household for myself and my two children on half the income. I quickly ate through what little savings I had, then resorted to using credit cards and payday loans to make up the difference in our monthly expenses and my income. I picked up extra side jobs, but even if I pushed myself to work 80 hours, it was never enough to close the ever-growing gap between my monthly expenses and income.

And yet, as I sit and write this all down two years after my partner’s death, everything has changed. I paid off nearly all my debt, I have two months’ worth of rent in my savings account, and there’s money to spare most months.

How did I do this? By implementing these common-sense strategies.

I Started Using a Budgeting App

Before I could change my spending, I needed to understand where my money was going each month. This probably sounds like a given, but so many of us set things on autopay, run through the Starbucks drive-thru, and barely stop to think about what we’re doing.

I tried several budgeting apps and finally settled on Monarch because of its features and customization options. I categorize my transactions and verify that I’m sticking to my budget twice weekly. I also periodically look at my month-over-month spending trends to make sure I am accurately allocating my funds.

Instead of hoping I can afford my utilities, I know I always have them accounted for in my budget. I also can tell at a glance whether I have money for fun activities like seeing the new Wicked movie with my friends or buying my kids a new board game.

The best part? You can enjoy a free 30-day trial of Monarch to see just how incredible it is.

I Turned Trash Into Cash

Nearly everyone accumulates items over time. Sometimes, you store items you don’t need in a closet or on a shelf. I was no exception, so I took those items I didn’t want or need and listed them on Facebook Marketplace and eBay.

Some items, like printers and webcams, were easy to part with. Other things, like my partner’s desk chair and clothes, were more challenging to sell. At the end of the day, though, I knew none was something I needed, and all of it had value to someone else.

I sold items for $50 here and $15 there. Over just a few months, I brought in over $1000 and cleared out tons of clutter in my house.

I Double Dipped on my Time

Working multiple jobs forced me to burn the candle at both ends, which was unsustainable. Thankfully, a friend recommended a side hustle I could do alongside my full-time job without investing additional time: pet sitting.

Through the Rover app, I started offering house-sitting, dog walking, and daytime pet visits. It’s the perfect opportunity for someone like me who works remotely because I can hang out with dogs or sit with a cat in my lap while I work and get paid for both. It’s a much more rewarding second job than retail or fast food, and I have developed lovely relationships with repeat clients.

I Negotiated Down My Debt

When I realized how deeply I was sinking into debt, I briefly considered working with a debt consolidation company. Their advertisements made it sound so easy—just sign up, and they’d handle everything for me. However, a little research revealed how costly and problematic these services can be. Not only do they often charge high fees, but they can also damage your credit score in the process. That’s when I decided to take matters into my own hands.

I called every credit card company and loan provider I owed money to and explained my situation. I was honest but calm, detailing the financial strain I was under after losing my partner. While it was nerve-wracking initially, I quickly realized that most customer service reps genuinely wanted to help. To my surprise, many of them were willing to negotiate.

In several cases, I settled my debts for nearly half of what I owed. Some companies offered lump-sum settlement options, while others allowed me to restructure my payments into smaller, more manageable installments.

The best part? Because I handled the negotiations directly, the impact on my credit score was minimal compared to what might have happened with a debt consolidation company.

Taking this route required time, persistence, and a willingness to face some uncomfortable truths about my financial situation. But in the end, it was worth it.

Improving Your Finances is Easier Than You Think

When I started this journey, I felt completely overwhelmed by the insurmountable grief and the financial instability I faced. But each small step I took—whether it was tracking my spending, selling unused items, or negotiating with creditors—added up to significant progress over time.

The key was consistency and a willingness to change how I approached money. To turn things around, I didn’t need to win the lottery or find a high-paying side hustle. Instead, I focused on maximizing the resources I already had and making thoughtful, intentional decisions about how to use them.

If you feel like your finances are out of control, know it’s never too late to start. Identify one small thing you can do today, like reviewing your budget or calling a creditor. It might not seem like much at the moment, but those tiny actions have a way of snowballing into big results.

Remember, you have the power to improve your financial situation. It’s not about perfection; it’s about progress. And with patience and persistence, you’ll be amazed at what you can achieve.