Finance

It’s not necessarily how much money one earns in life that can make them financially secure, yet how one manages their money. Knowing how to budget in order to cover the cost of living in general, while saving for unexpected expenses, makes all the difference. Save first, treat yourself from time to time, but remain prudent and never overspend.

Treat your bank account with the accuracy of a surgeon’s hand. Overdrafts are expensive and it damages your good name.

No matter how successful you become, never purchase a boat of any kind. If the urge takes you, rent the best one you can.

As with a boat, if you get the urge to buy a motorcycle, rent one first.

Have at least two lawyers on your cell phone that you know personally.

Know how to shop for health insurance, understand deductibles, HMO, PPO, and the different life insurance options.

Don’t waste money. The average female slave sold for more than $350 in the late 1780s.

Whenever possible, support the black small business owner, especially a restaurant. Get to know the owners, they’ll soon learn your favorite dish.

Be honest on your tax returns, the peace of mind of not being audited by the I.R.S is invaluable. Not owing the I.R.S. is priceless. You never want to know that feeling.

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If you must, borrow money from friends or family, yet try your best to never use a payday loan. Interest at pay off on a payday loan can be as much as 150 percent.

If you need to hide money, put it inside your favorite book, in your favorite chapter, then you’ll never forget where it is.

Until you’re well established financially, pack your lunch and eat out only once a week, preferably on Friday for dinner or lunch.

Start investing for your future early, your biggest wealth-building tool is your income, just ask Dave Ramsey. If you don’t know of him, Google him.

Before supporting the local Scouting organization, research how the money is being spent.

Try not to set up an automatic draft until you’re financially capable.

Don’t write checks if you don’t have the money to cover them. First, it’s illegal. Second, you’ll incur overdraft fees from the bank, in addition to fees from the company to which you wrote the check.

Choose quality over price, and always ask the reason why something is discounted.

Collect reward points that never expire. If they do expire, make sure there’s a cash-out option.

Learn how to use an investment calculator. One hundred dollars invested in the market in 2002 is now valued at more than $550 today. Do the math on the value of $100 invested every month since 2002.

Know how to read the stock ticker, along with market reports. Read market trends analysis and forecasting journals.