We all want to achieve some level of financial success. Whether it’s to purchase our next piece of property or the next pair of retros, securing the bag is non-negotiable. But when we get it, we can’t seem to hold on to it. Where do we start? How do we save? How much?
Financial literacy is one of the keys to closing the generational wealth gap and will allow us to support and sustain our communities without assistance. But how do we get there? We had Gabriel Cloud, a Morehouse graduate and Financial Services Consultant at EY (Ernst & Young), share his top five tips for achieving financial wellness.
1. Live below your means (Budget and stick to it).
I live by my budget, and I am always transparent with myself about my income and what I have to spend. I created an excel spreadsheet that has all my streams of income, average monthly expenditures and savings plans. Be realistic with your goals. Get accountability partners who are also serious about financial freedom. You all can hold each other to your goals. We all can use a little help living within our means.
2. Don’t let social media fool you.
Do not get caught up seeing your peers travel, dripped out in labels, partying, driving luxury cars. etc. In a day of social media we are constantly comparing our lives to other people, this causes us to get in debt/become broke trying to keep up with manufactured and photoshopped lives. Worry about you and your personal stability. Always strive to be a better version of yourself—never another person.
3. Invest in your favorite brands.
Find a simple investment app and get in the habit of letting your money make money for you. $5 here $20 there (in the right places) does more than we think. A lot of our favorite brands could be paying us dividends, if instead of purchasing a product we use that money to invest, so we can get a return. Read, watch videos, and learn about different forms of passive income.
4. Build your credit: apply for one credit card that has rewards (Gas, Travel, etc.).
Keep the balance below 30%. Pay it off every month to develop a credit history when you are young. A long and healthy credit history will assist you in car loans, house loans, business loans etc.
5. Factor in a “Treat yourself fund”: Life is more than just accumulating money in the bank.
Building meaningful relationships, experiences, and rewarding the self is also necessary. Maybe you can’t be a jetsetter and travel the world every weekend, but you can save a little bit of money to go on a planned trip once or twice a year.