I often hear that money isn’t everything, or that it’s not important. Though this is just my humble opinion, I think money, or resources, are vital to living a lengthy prosperous life. I also want to add that money can be translated to assets, a plane ticket to see an uncle, or paying for medical treatment of a loved one. Since I operate from a space of abundance, I don’t limit myself to the things I can have or achieve. Fortunately, in life, God used my brother as a vessel to guide me to begin my financial journey towards better financial health. As a first generation Nigerian-American, I was passed down various essential tools, but financial literacy wasn’t one of them. This caused my brother and I to devote countless hours to learn the game and try to master it. Hence I said try because we acknowledge we are lifelong learners, but we are aware how far we’ve come. Sharing these tips with you brings me so much joy, since these are the first but essential steps I followed to enter alignment. .
- Life insurance provides financial protection for your family members in the case of your passing. Additionally, after a certain number of years, you can actually pull money out of It and put it towards an asset( house, business, car).
- Max out your 401k if you’re working for a company. There is when part of your paycheck gets deposited into an investment account that grows over the years
- Max out your IRA if your income allows. This is a special individual retirement account (IRA) that allows you to save towards retirement. There are two main types you should learn about. But regardless, I recommend to max it out at $6,000 if your under 59, and $7,000, if you’re over 59.
- Emergency Fund- This is so crucial. Experts recommend saving 3-6 months of your living expenses in the case of unfortunate events falling upon you.
- Aim for a tier 1 credit score- A credit score close to or above 700 is considered teir 1. Your credit score dictates how easy it is, and the amount of interest you pay on a car, house, credit card, and so much more.