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:
- 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.
- 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.
- 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.
- 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.
- 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!
by Nadya Logan | Aug 18, 2015 | Lifestyle+Culture
The holidays are nearing soon, and if you have a big family like mine, then you probably started saving for gifts in January. For those of you have not, and are interested in doing so, here’s a way to begin budgeting your funds.
According to Mint, a financial management company powered by Intuit, the 50/20/30 rule “can help twenty-somethings sort out the complicated world of personal financeâ€. Meaning that not only can this budgeting guideline be useful during the time leading up to the holidays, but it can be used during all times of the year.
As reported by the chart, 50% of your income should go to anything you’d classify as an “absolute necessity of lifeâ€. This can include, but is not limited to: Rent, Transportation, Groceries, and Utilities. If you would be homeless if you didn’t pay for it, then more than likely, you should be investing 50% or less of your income on it.
The company also advises that you put 20% of your income into your financial priorities. For instance, if you’re 24-years old, you understand that retirement is something that you will need in about 30-40 years from today and you may have student loans to pay back—which is why putting 20% (or more) of your money into any financial obligations that you are taking care of now (and possibly in the future) would be the responsible thing to do. This way, if our economy tanks, and the government runs out of money to fund social security, you will be able to take care of yourself.
As stated on the website, 30% of your income should go to “voluntary obligations that enhance your lifestyleâ€. Things that can be considered a voluntary obligation could be eating out, a gym membership, shopping, or your cell phone/internet/cable plan. But although all of these things are considered a luxury, most people cannot function successfully in our society without having a good cell phone plan or eating out every once in a while, whether for business purposes or personal pleasure.
And as I stated in the beginning of this article, the holidays are coming up soon. So you can mark your mother’s STRONG Box yearlong subscription into your voluntary-obligation category.
If you want more information on the 50/20/30 rule, you find it at https://www.mint.com/budgeting-3/the-minimalist-guide-to-budgeting-in-your-20s
by Jasmine Shirley | Jul 18, 2015 | Learn + Grow
I was a young mother and although I was blessed to keep my life at home I needed to provide for my little one. I had heard all of the “horror” stories about parenthood, so to be sure that I was able to provide financially I started saving. Saving early has put me in the position to shop, travel and live comfortably at the age of 24. Here are 5 ways I was able to get here:
- Take advantage of gift cards
- When the holidays rolled around and those relatives that didn’t know what to get me gave me gift cards your girl saved them like my life depended on them. Gas cards, movie cards, restaurant cards, save them and use them whenever you are able to
- The envelope method
- The envelope method is used typically when budgeting and to save you will need a budget honey. Once my money was deposited into my bank account I would leave the amount needed for any automatic transactions such as phone bill, rent, etc.
- Then I would take envelopes and label them according to my expenses: gas, food, shopping, etc.
- The money, if any, that was left over and not needed for my automatic expenses is the money that I would take out and distribute into the envelopes.
- Buy a Safe
- Target has a few safe options you can purchase. I purchased a safe that I kept in my room. The money that I was not using for going out, shopping or eating out I would put away in this safe and pretend to forget about it
- Over time I would continue to add to the safe instead of making envelopes for leisure activities and soon I needed a bigger safe.
- Get a savings account
- I got a savings account once I got the hang of budgeting my own money. One I opened a savings account I had a certain amount of money deposited into my savings account each paycheck.
- I started off with just $5 and began to add more when I got multiple jobs or more income
- More Income
- When school was out or I had extra help with my child I was able to work multiple jobs at a time. With more income there is more money that can be saved.
- Consigning clothes was something I really got into. As the trends changed or the need for more money came I would go to consignment shops, Plato’s Closet, and sell any and everything they would take.
- Saving my change really made a difference in my income. I would throw my change in a water jug or my old save and every 6months to a year I would go to CoinStar and cash it in. You will be surprised what your change can add up to.
Spread Love and Happy Saving!
Jasmine Shirley
by Torrie Oglesby | Jul 6, 2015 | Learn + Grow
CASH OVER CARD: How having cash helps you to not overspend.
Repeat after me, “CASH IS KING.”
This is something successful CEO of Nasty Gal, one of the fastest growing companies, Sophia Amoruso lives by. She’s never had to talk out a loan for her company and has never had to declare bankruptcy unlike a lot of other companies and she credits that towards only spending what she has and not a dime more.
Dave Ramsey, a financial author and mentor, also operates under the same kind of thinking using and preaching the envelope system.
It’s extremely easy to fall into the quickness of swiping our debt cards and credit cards. It’s how our society works now. Swiping all day but never balancing our check books or budgeting how many times we can actually afford to swipe our cards. Studies show that people spend less when they actually can touch and see the cash that they are spending
This is why I’m suggesting that you too, learn to operate with cash and not your card. Here’s some easy steps to get in the habit of spending cash instead of swiping your card and how to organize it the Dave Ramsey way!
- Know your current expenses.
Know what needs to go out and what can stay in. Be mindful of automatic bills that get withdrawn, be sure to not overlook them and get the cash out if it needs to be in your account instead.
- Find out how much cash to withdraw.
After you know your outputs, budget how much goes towards what and the total of cash that needs to come out.
- Organize your cash with envelopes.
Have titles for each envelope. For example: Tithe, Gifts, Gas, Groceries, Eating Out, Household Goods, Fun Activities, Clothing and whatever else you and your family decide to budget out for.
Now this is the trick, when the envelope is empty of money, YOU’RE DONE. No getting more money out of your account or taking money from other envelopes. You are done spending in that category until next pay day. When there is no more cash that means no more spending. This takes self-control and discipline which this system will help you to develop and cultivate.
With love and big smiles,
torrie.
by Jasmine Shirley | Jul 2, 2015 | Learn + Grow
Has your frivolous spending been getting the best of your finances? Have you been working hard to save but fall victim to the triggers of spending? Well ladies I have found some encouraging messages to help you. *Disclaimer: I am not the creator of the content provided. The following information can be found on www.myfabfinace.com. This piece was written By Jessica Baptist.*
“How to Conquer Your Spending Triggers Like a Champ”
Here are some examples of some triggers you may lie and tell yourself followed by advice to overcome the trigger:
•“I Deserve It” Advice: “Temporary purchases won’t give you a permanent solution or solve the underlying issue.”
•“Everyone else has one” aka “Keeping up with the Joneses. Advice: “Use the images you see on the internet as inspiration, not an indicator of what’s really going on.”
•“I’ve reached my goals; let’s celebrate!” Advice: “Wait a week after the win to celebrate, that way you can really celebrate what’s important: the next step in your life.”
•“It’s on sale!” Advice: “Don’t fall victim to marketing messages. You were getting along just fine and you can live without it!”
Most importantly, acknowledge the factors that trigger spending and how they appear in your life.
Spend wisely and stay strong ladies,
Jasmine
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