Talk Tuesday - Why is yo ass broke?
Have you ever wondered why you never have any money? Do you always have to have the latest fashions or cars? Is going out every weekend with your friends more important than your financial freedom...if you answered yes to all 3 questions, then that is the reason yo ass is broke. Now is the time to take control of your financial health and make some simple changes to set yourself up for a comfortable life. I'm going to split this up into a two part series where I will be sharing some helpful tips to get your finances in order. I will break this up into 5 topics each, so let's get started!!!
Live below your means: What's does living below you means actually mean....well not going out buying that new bag or shoes when your rent is do. Not living in the most desirable neighborhood when you know you can't afford the rent. Having Louis Vuitton taste on a knock off budget, that would be living above your means. If you cant afford to have your "want" over your "needs", then, don't go broke trying to get it. We have got to stop trying to keep up with the Jones, because we don't know how they get their money or how they save their money. Stop competing with your friends and compete with yourself. Challenge yourself to save more and spend less on something you can do with out. Instead of going out to eat everyday for lunch while your at work, bring your lunch. If you spend an average of $5 a day on lunch, that equals $25 dollars a week. That turns into $100 month. At the end of the year you have spent $1200 on lunch for work. Let's say you like frozen meals...the average cost for a frozen meal is $2. That equals $40 a month and a cost of $480 for the year. Buy doing something as simple as that you can save $720 a year, average. With that money saved, you then you could go out and reward yourself because you saved for it.
Have a Checking/Saving Account: I went out and got myself my first checking and savings account when I was 15 years old. Oh you couldn't tell me shit....well I wish someone did, lol. I was so proud of having my first account that I went shopping and I was writing checks, then I had to tell myself, hold up...this stuff isn't free...I'm paying for this out of my hard earned money. I had no one to educate me on what the purpose of a checking account and how to really use it. There are so many people who have never had a checking account because they don't trust the banks, they don't want the "man" taking their money...and a million other excuses. The first thing I say do is educate yourself. There are several local banks and credit unions to choose from, so make an appointment to speak with a Banker and see what makes them the best bank and why you should bank with them. Banks are dying to get your business because they too are into making money. Banks have Licensed Financial Specialist/Planners/Advsiors/Bankers, that can help you during any stage of of your financial journey. Don't hesitate to ask questions and take notes, that's what they are there for. By doing so you can eliminate what financial institution will or will not work for you and your goals.
Limit your Credit Card/ Revolving Accounts: We have all feel victim to this, especially if we were never taught the importance of good credit. You know...when you were a young adult and those pre-approved credit card applications would come in the mail. PAYDAY!!!! I know I am guilty of that as well and I had to learn the hard way...so let me stop you before you make the same mistakes I did....YOU DON"T NEED A BUNCH OF CREDIT CARDS!!!! Whewwww, did you get that, good. Things have changed from when I received my first credit card until now. Banks and lending companies are not handing out loans or card like they use to, and actually that is a great thing. They are saying us from ourselves. Limit yourself to 1 or 2 major credit cards. If you have never had a credit card, I recommend starting with a secure credit card. It will help you because with a secure credit card, your limit is based on your "deposit" or what you "secured" the card with. If you open a secured credit card with $500...$500 is your limit. Also, do your research on the type of credit card you will need to fit your needs. Remember, this goes back to #1, Live within your means. Credit cards should be used for emergency purposes and an occasional treat for yourself. The lower the interest rate the better for you...I will talk about that in the next bullet. Also, don't max out your credit cards and pay more than the minimum amount due. What is the purpose of having a credit card if it is always maxed out and your only paying the minimum amount due.
Know your Credit Score/Credit Report: We have all seen those commercials offering a free credit report by calling them...let me let you in on a little secret, THEY ARE NOT FREE!!!!!. The only official free service is from www.annualcreditreport.com. This is backed by all three credit reporting agencies, which are Trans Union, Equifax, and Experian. You should review your credit report at least once a year to make sure there are no discrepancies and no stolen identity issues on your report. By clicking that link you will be able to get all 3 reports once a year, for free. If you need them again, there may be a fee involved. Also, check your your FICO score also known as Credit score. Normally there is a fee to get your FICO score, but it whats a small fee to your credit security? I use www.myfico.com. It is trusted by the BBB (Better Business Bureau) and all 3 credit reporting agencies. Your credit score determines how banks and lending companies lend to you. Poor credit score...high interest rates. Great credit score...better and lower rates. Simple ways to improve your credit score are: Always pay on time and pay more on your credit cards and loans. DO NOT close any accounts that you no longer use, especially if you have had the account for a long time. Doing so can actually decrease your credit score. Instead of closing them, just keep a 0 balance. And do not open any more charge accounts or credit cards...be happy with what you have.
Talk to a Financial Planner: The best thing you can do is actually sit down and talk to a Financial Planner and discuss what your goals are. Most banks offer this service for free, so why not take advantage of something that comes with doing business with your bank. By talking to someone they will be able to set you up with a Financial Blueprint. If you are dealing with a Licensed Financial Planner, they can set you up with anything from Certificate of Deposits to Life Insurance. The first step is to sit down and start planning....so what's stopping you?
Remember you are in control of your financial freedom. You may have been uninformed before, but I have given you a few tips to get the ball rolling to making better choices in you life when it comes to money. Make sure you check back next week as I cover the remaining 5 tips I have. Until next time....Stay Fabulous!!!!
Live below your means: What's does living below you means actually mean....well not going out buying that new bag or shoes when your rent is do. Not living in the most desirable neighborhood when you know you can't afford the rent. Having Louis Vuitton taste on a knock off budget, that would be living above your means. If you cant afford to have your "want" over your "needs", then, don't go broke trying to get it. We have got to stop trying to keep up with the Jones, because we don't know how they get their money or how they save their money. Stop competing with your friends and compete with yourself. Challenge yourself to save more and spend less on something you can do with out. Instead of going out to eat everyday for lunch while your at work, bring your lunch. If you spend an average of $5 a day on lunch, that equals $25 dollars a week. That turns into $100 month. At the end of the year you have spent $1200 on lunch for work. Let's say you like frozen meals...the average cost for a frozen meal is $2. That equals $40 a month and a cost of $480 for the year. Buy doing something as simple as that you can save $720 a year, average. With that money saved, you then you could go out and reward yourself because you saved for it.
Have a Checking/Saving Account: I went out and got myself my first checking and savings account when I was 15 years old. Oh you couldn't tell me shit....well I wish someone did, lol. I was so proud of having my first account that I went shopping and I was writing checks, then I had to tell myself, hold up...this stuff isn't free...I'm paying for this out of my hard earned money. I had no one to educate me on what the purpose of a checking account and how to really use it. There are so many people who have never had a checking account because they don't trust the banks, they don't want the "man" taking their money...and a million other excuses. The first thing I say do is educate yourself. There are several local banks and credit unions to choose from, so make an appointment to speak with a Banker and see what makes them the best bank and why you should bank with them. Banks are dying to get your business because they too are into making money. Banks have Licensed Financial Specialist/Planners/Advsiors/Bankers, that can help you during any stage of of your financial journey. Don't hesitate to ask questions and take notes, that's what they are there for. By doing so you can eliminate what financial institution will or will not work for you and your goals.
Limit your Credit Card/ Revolving Accounts: We have all feel victim to this, especially if we were never taught the importance of good credit. You know...when you were a young adult and those pre-approved credit card applications would come in the mail. PAYDAY!!!! I know I am guilty of that as well and I had to learn the hard way...so let me stop you before you make the same mistakes I did....YOU DON"T NEED A BUNCH OF CREDIT CARDS!!!! Whewwww, did you get that, good. Things have changed from when I received my first credit card until now. Banks and lending companies are not handing out loans or card like they use to, and actually that is a great thing. They are saying us from ourselves. Limit yourself to 1 or 2 major credit cards. If you have never had a credit card, I recommend starting with a secure credit card. It will help you because with a secure credit card, your limit is based on your "deposit" or what you "secured" the card with. If you open a secured credit card with $500...$500 is your limit. Also, do your research on the type of credit card you will need to fit your needs. Remember, this goes back to #1, Live within your means. Credit cards should be used for emergency purposes and an occasional treat for yourself. The lower the interest rate the better for you...I will talk about that in the next bullet. Also, don't max out your credit cards and pay more than the minimum amount due. What is the purpose of having a credit card if it is always maxed out and your only paying the minimum amount due.
Know your Credit Score/Credit Report: We have all seen those commercials offering a free credit report by calling them...let me let you in on a little secret, THEY ARE NOT FREE!!!!!. The only official free service is from www.annualcreditreport.com. This is backed by all three credit reporting agencies, which are Trans Union, Equifax, and Experian. You should review your credit report at least once a year to make sure there are no discrepancies and no stolen identity issues on your report. By clicking that link you will be able to get all 3 reports once a year, for free. If you need them again, there may be a fee involved. Also, check your your FICO score also known as Credit score. Normally there is a fee to get your FICO score, but it whats a small fee to your credit security? I use www.myfico.com. It is trusted by the BBB (Better Business Bureau) and all 3 credit reporting agencies. Your credit score determines how banks and lending companies lend to you. Poor credit score...high interest rates. Great credit score...better and lower rates. Simple ways to improve your credit score are: Always pay on time and pay more on your credit cards and loans. DO NOT close any accounts that you no longer use, especially if you have had the account for a long time. Doing so can actually decrease your credit score. Instead of closing them, just keep a 0 balance. And do not open any more charge accounts or credit cards...be happy with what you have.
Talk to a Financial Planner: The best thing you can do is actually sit down and talk to a Financial Planner and discuss what your goals are. Most banks offer this service for free, so why not take advantage of something that comes with doing business with your bank. By talking to someone they will be able to set you up with a Financial Blueprint. If you are dealing with a Licensed Financial Planner, they can set you up with anything from Certificate of Deposits to Life Insurance. The first step is to sit down and start planning....so what's stopping you?
Remember you are in control of your financial freedom. You may have been uninformed before, but I have given you a few tips to get the ball rolling to making better choices in you life when it comes to money. Make sure you check back next week as I cover the remaining 5 tips I have. Until next time....Stay Fabulous!!!!
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