Did you know that 61% of Americans are $400 dollars away from a financial hardship?
How many times have you swiped your card and said “this may not have been the best decision?” Often times we don’t see the improvement in our finances that we desire because of a lack of planning. Does planning cure everything… no, but it can help us assess our current situation and strategize on how to make the necessary improvements we need to progress. Have you ever heard of the 50/30/20 rule? This rule suggests that your after tax income should be allocated to 50% needs, 30% wants, and 20% savings and debts.
We all know that life happens. Unexpected things come up all the time. In order to have a greater chance of enduring those unexpected financial issues, we must create a safety net. This is called an emergency fund. Financial planners suggest that you should have at least three to six months worth of expenses tucked away for things like a loss of a job, repairs, or unexpected medical expenses. An excellent way to start off your emergency fund is banking your tax refund along with saving 20% of the money you earn each week.
I remember during my freshman year of college, credit card companies would pitch a tent and offer struggling college students free pizza if they applied for one of their cards. Fast forward to today, some of my friends are still trying to pay off large credit card bills incurred during that time. Debt can be one of the most crippling adversaries to financial peace. There’s tons of resources out there but the main two that have been personally impactful to me and my friends are Brass Knuckle Finance by Jarim Person-Lynn and Total Money Makeover by Dave Ramsey. Lastly, remember your best ally in getting out of debt is Strategy, Sacrifice, & Self Control.
Taking ownership of your financial future involves educating yourself, doing the work, and learning from others’ stories. The key to building wealth is often talked about as “7 streams of income.” Let me break those down for you:
Those are the building blocks of owning your financial future. It doesn’t happen overnight. It’s a lifestyle.
Want to learn more? Check out some of the resources below and check back here often — we’ll be coming out with more information, and eventually an online course, in the near future.
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