Her Money: 5 Financial Words of Wisdom

by Altimese Nichole | Oct 20, 2015 | Lifestyle+Culture

Growing up in a single family home was tough at times. All financial responsibility for the home fell on my mother – and she worked two jobs the majority of my childhood to make ends meet. In the midst of the difficult journey, my mother took the time to pour invaluable wisdom in my life— after all, we were all we had.

One of the many things she taught me while growing up was centered around finances. Having a financial background and career, she made it a point to teach me core financial nuggets of wisdom. If your heart is open to receive, I would like to share a few with you:

1. Credit is EVER-REY-THANG!

So is credit really everything? YES. Credit is EVERYTHANG!!!

“If you have a bill due and no grocery in your house and your contemplating on which one to pay—pay that bill first. Because of your decision to pay that bill, you can easily go to the bank to request a 0% APR loan, which will help you to pay for those grocery for your home. But never, ever neglect your bills unless unforeseen circumstances force you into that position. If that’s the case, communicate with your collectors. If you tell them upfront, they’re more willing to help you through it vs. a lack of communication and an abundance of unpaid bills.” ~ My mom

It sounds crazy but America’s score of your responsibility matters. They don’t see you struggling to pay your bills but that score will follow you wherever you are in life, for the rest of your life. I am a personal testimony of this. While in college, I followed my mom’s advice and used ONE credit card to build my credit (which is still the same company for the one credit card I have now as an adult). Within one year, my score doubled. I needed a car but had no down payment since I was still in school. I went to a dealership and within a few hours I drove off the lot with a brand new car, a 4% interest rate, and no down payment needed. Don’t be fooled; protect that credit score the way you would protect your most valuable possessions.

2. Make Credit Cards Work for YOU

“To build credit, get ONE credit card (all you need is one) and put $100 or $200 dollars on it each, and PAY IT OFF. Continue to do that each month and it will trigger your score in a positive way.”~Mom

Never have an on-going balance on your card. By doing so, your become obligated to pay interest. Additionally, get a card that has a great rewards system. This will help you earn points toward free gift cards, flights, hotels, and more. I personally know quite a few people who pay their bills through their cards to maximize their points. Let me explain… Instead of using the money that they ALREADY HAVE in their bank account to pay their bills directly, they go through a process: they pay their bill with their rewards card first, wait for the points to accumulated, and then pay off the credit card in total. IF (and only if) you’re highly engaged with monitoring your card and you’re self-disciplined to do this would it be recommended. However, this method uses the credit card to the advantage of the consumer.

3. Use the Cash-and-Carry Method

“Every now and then, assess your spending habits and do a financial clease through the cash-and-carry method. Carry just cash and keep your receipts. At the end of the month, see what you’re really investing your money in.” ~My mom

Have you ever noticed that if you take out money from the bank, you tend to hold onto it much longer than you would the money on your debit card? When we physically see the money transaction, we tend to think twice about our purchases. If you’re trying to get a handle on your finances, I highly encourage the cash-and- carry method, leavening your cards at home. For emergencies, dust that check book off, and carry it with your cash! Why the checkbook? Checks are so archaic yet so very intentional. To write a check, you’re deliberately thinking about the money you’re spending—and you will have access to your account, should life throw you a curveball.

4. The Co-signing Trap

“Never co-sign unless you’re married to the person you’re co-signing for. Even in that case, be careful. The co-signer holds the primary responsibility for the loan. So, should the initial borrower fail to make payments, the collector has the right to immediately go after the co-signer. Just don’t do it. Not for friends and definitely not for family.” ~My mom

Her words said it all. No explanation is needed.

5. Ignorance Isn’t Bliss

“Just because you don’t know about financial responsibility it doesn’t give you a pass to do immature things when it comes to money. Financial matters involve numbers. Numbers don’t lie and care nothing about concept, ideas, hopes and dreams.” ~My Mom

Make financial education a personal goal in your life. Read books, research the companies your working with, and learn about 401k’s and investment opportunities. Financial matters are personal yet brutally public if not handled properly. Educate yourself. In a world with all information at our fingertips, we truly have no excuse anymore.

Have you ever received great financial advice? Please share with the STRONG community!