Everyone thinks they know all they need to know about money, but for the most part we only know how to spend it. We spend $121.6 billion on housing; 32.1 on cars, $27.7 on clothing; and $17.7 billion on health insurance (Statistic’s Brain). In 2014, 79% of African-Americans were facing credit card debt. We are sharing eight very simple tips that we thought should awaken your financial curiosity, maybe?
Take Control of Your Own Financial FutureStop thinking you have to wait until you have big money (or in the finance world windfall) before you should start reviewing your money. We should always be mindful of our finances. It’s also not wise to allow others to manage your money. Not everyone has your best interest at heart.
Know Where Your Money Goes
Tracking where you are spending and possibly wasting is a must! Know where your money is going and see where you should be cutting back. “Nothing buts” may account for a great deal of your “I don’t know what happened to it” money. These are those “nothing but $5” items or “nothing but $3” items. They typically fall under $7.
Start an Emergency Fund
If you are paying attention to the current events, an emergency fund is needed in these times. Who knows what could happen? An emergency funds consists of 6-9 months of household spending. If you have debt, you should add another $1,000 to your savings.
Start Saving for Retirement Now
While they have been saying it all along, Social Security will be depleted by 2034. For those who don’t get it, think of your baby or a friend who just had a baby this year. Now, by the time that child is graduating from high school, social security will be gone. For those of us who are dreamers, think about how we want to retire early. We might can do so but can we sustain is a totally different question. Get your money up if you plan to live comfortably. And even if you do not, the one question we can all ask ourselves, “When we are older in age, no longer able to work or create like we used to do, where will our income come from?”
Get a Grip on Taxes
As you work your way at up in your career, it’s important to know about taxes. That nice salary you are envisioning can be deeply cut into by taxes. You may need to up your desired pay to be sure you are taking home enough in the end. Did you know can get your taxes monthly instead of getting a lump sum once a year?
Guard Your Health
Health issues are the number one reason for bankruptcy in America. Take preventative measures to protect your health to avoid emergency doctors visits and other medical expenses. However, do not neglect your health by also avoiding your annual checkups, exams, and such.
Guard Your Wealth
Guarding your wealth means being more financial savvy and fully exploring your options as opposed to traditional banking habits. Traditional banks tend to have higher fees. Online banking has a variety of options that may be more fitting.
Learn self control.
This is the biggest tip! If you don’t need it, don’t buy it, and certainly don’t finance it! That’s where we are really going wrong. Don’t make a habit of purchasing on credit, and if you do purchase something on credit, don’t purchase it until you really have the money saved up for it. We have to practice self-restraint.
We have to do better, not just as individuals but as a community, so stay tuned for more financial tips.
-Fancy and David Greer (Financial Advisor at Greer Enterprises, LLC)