“Save Your Money”

I have never been great at money issues. But I’ve never really had a lot of money to manage. I mean, there was a time when my family and home had money, I just wasn’t allowed control of any of it. What I have done is learn. Whether it’s the years of business school, the genius money-minds I’ve had the privilege to be around, or the reading and observing I do, I have a few simple ideas that can make a huge difference in your wealth and bottom line. As a real estate agent, I guide people on the largest financial decision of their life. I find myself very responsible for their financial health.

Buy Something, Not Everything

First of all, OWN REAL ESTATE. I am not saying that because I’m a Real Estate Agent. The truth is actually the converse. I am an agent because I know that is the basic building block and first step to any type of wealth and security. It is my mission to “help people”. Paying rent is putting money in someone else’s pocket. Paying mortgage is putting money in your own future pocket. Owning real estate works to build wealth in two ways, tax deductions and equity. It’s a reward for having a steady credit life, like marriage is the reward for having a steady relationship life, both of which give you a tax write off because of our archaeic tax codes that champion societal norms. You don’t have to agree with them to take advantage of them. It is also like a bank for future wealth. You can borrow against the value of what you own. You can also sell and make a profit. The money you put into it you can always get out of it.

Secondly, don’t spend what you haven’t got. Credit cards should be reserved for emergencies only. And that does not mean the emergency that I absolutely need this thing from Target. Credit is beneficial to increasing wealth, but it has to be micro-managed. You should always, when possible, use other peoples money to make money. But, if that money is borrowed, it HAS to be repaid, preferably before it comes due. Is what you are purchasing on credit worth the price plus the interest? Because the credit company is going to get some amount of interest. It’s almost like credit is only for advanced financial people. Beginners need not apply!

Also, BUDGET. More importantly, live within your means. My favorite financial advice is, “you only have 2 options, increase what comes in, or decrease what goes out”. I like to start with what goes out. What does it take for me to like my best life? I have to write it down and add it up. Then, I can say, this is how much I need to make, every month, every year, whatever. I can increase my income to match that number, or I can take things out that are not as important as others. If I write everything down, I have a better look at where my money is going to make that decision. Increasing income could mean getting a second job, asking for a raise or promotion, or changing careers completely. Those kind of decisions take time and preperation. Most of the time, it is easier and quicker to decrease the amount that goes out. This can lead to some equally difficult decisions. Learn how to live on salary and use bonuses or commissions (surprise money or saved money) to fund the “wants”. In the end, being real about what you have, what is a need and what is a want.

Lastly, SEEK ADVICE. I am an avid reader. I am a life-long-learner. So I use books to teach me. How do you learn? Do you need to seek advice from a professional? If so, look for one with your interest at the heart of their business, someone who owes you a fiduciary responsibility. This is NOT someone who is hired by a fund or company to seek clients. Do you learn from the people around you? If so, surround yourself with the people that exemplify what you want to achieve. Don’t keep surrounding yourself with people that move you backwards, socially, emotional, or financially. That may mean that you have to step out of your box to find new folks that help you step up your game.

Money is a big topic. I was brought up in a traditional Southern family where we weren’t allowed to talk about money. But I’m okay talking about everything! If we don’t talk about it how do we teach it, learn it, or change it? Make yourself some financial goals for the new year! They are just as important, if not more so than all your other ideas for a resolution. If you have any questions about real estate, feel free to ask!