Financial Lessons you need to learn right before you hit 25.
- Credit Credit and Credit. Everything and anything you need in your early twenties and thirties depends on… you got it CREDIT! So when you get those lucrative $500-dollar crappy credit card offers during college, DECLINE THEM! Instead, get a secured credit card which acts as a debit card except with the benefits of it being reported on your credit report. Plus, you can’t ever be late on it. Its amazing!
- Loans are the secret prostitutes of the financial world. They feel amazing when the money comes, but you feel the long term effects by the time you’re finished with them! They are the leeches that suck your soul and lead you to do your demise. But, if you must take out a loan, make sure you get the lowest interest rate possible! When your money is drained every month, you start to take it out on others. i.e. Alcohol, smoking, spouse or your sanity 😉
- Establish a savings that you cannot tap into by going to an ATM- Sit down and start to save one tenth of your paycheck. Use an app like Acorns or Qapital to help you save for a goal. Transferring money is not do-able on the same day basis. Don’t believe that your will power is stronger than you when it comes to money. Just save that money.
- Life is not like a penis, when it becomes hard, you don’t screw it. Pay attention to your spending habits when your undergoing struggles. They help you determine the kind of investments you will pick up when your older. You have to learn to master the ability to not live above your means. Careful how you spend that $100 on a bottle or on a grand night that will you cost ten more nights. As you grow older, these habits become permanent. In 10 years, you’ll retain the ability to spend a lot more, if you hold off on spending now. You don’t want to smell bankruptcy in your earlier years.
- Ask your employer about their 401k plans and the options available to you. Getting your employer to match every dollar you save is god sent and can only benefit you in the long run. The long run doesn’t have to 65, 55 or even 45. If you start fresh out of college, your reality can be 35 and six figure returns.
- Pay very close attention to trending topics and be sure to ride the wave. It is essential to remember to NOT get sucked into it, but rather learn to profit off of it. Every couple of years, a new trend starts to become the norm. Years ago, it was Flappy bird, then it progressed to Fidget spinners and then gradually it has gone to Fort Night. In each of these trending times, there was money to be made off it. For instance, Flappy bird became such a big phenomenon, at some point the game became scarce—so scarce that individuals who had the game on their phone sold their phones for 500% markup. If you believe you have extensive knowledge or a means to contribute to the trend, start to monetize it. This can mean anything from selling the trending item to blogging about hacks about the trending item so that you create your own central hub of knowledge that others keep coming to you for. There are also other types of trends, namely ones that are timeless. Jordans are a great example of these vintage items that sell for astronomical figures once they have been retroe’d or have become rare.
- Credit and its power is infinite. Your credit can mean a house, a car, and a stable life—or it can mean financial doom, having to continuously borrow and being in debt until you pass. This means DO NOT LEND YOUR CREDIT LINE TO ANYONE. DO NOT co-sign for anyone’s car, mortgage or anything else outside of your spouse. Doing so can mean life long obligations, credit score nightmares that will take over 3 years to recover and in some cases a solid 10 years!
- Do NOT spend your paycheck hooking up your car. A car is a depreciating asset, which means it is only going down in value as you drive it each day. If you want a timeless car or a luxury vehicle, save up for it. In the meantime, look into a vehicle that you can lease for less than $100 and whose gas tank wont take you more than $25 to fill up. A Toyota Corolla or a Honda Civic are both very reliable vehicles with very long shelf life and very little maintenance. Hold off on that Benz or sports car you are trying to make your dream car.
Investing is very important. Hire a Financial Advisor as early as you can. Explain to them your situation and what your looking for out of investing at this time. They will set you up with a portfolio that makes the most sense for your budget. If you have trouble or don’t understand them, feel free to reach out to us at email@example.com — We will be happy to set you up with something for your budget