If the first thing that came to mind when you read the words “real cash money” in the headline was a pair of grown men named Baby and Weezy, then we need to talk.
Of course, Hip-Hop heads are familiar with the N’awlins CEOs and their legendary Cash Money Records roots, but at a certain age everybody needs to lay back and get their mind on their money and their money on their mind.
The idea of blowing money fast at the club or balling out during All Star Weekend may seem cool in your 20s, but don’t let these rappers fool you ’cause there ain’t no future in your frontin’. If you got it like that then by all means do you, but most of y’all know you need to stop lying.
What you need to do is start working smarter so you can play harder — especially if you’re creepin’ on 30 or already past that milestone mark of maturity (ahem, Baby). The best way to do that is by tightening up your financial future and focus on your business, man.
Hit the flip for 10 things we all need to learn about real cash money.
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Photo: WENN.com
1. BENEFITS ARE FOR YOUR BENEFIT SO USE ‘EM, BRUH
By age 30 you should not only be working, but holding down a job that offers benefits — and we’re not talking about free snacks in the break room or breath mints in the reception area. While retirement is likely the farthest thing from your mind, it shouldn’t be. If you’re job offers a 401(k) or a Roth IRA (self-employment), take advantage of it.
No one likes the idea of even more money coming out of their paycheck, but unlike taxes, where it feels like you’re just paying “the man,” a retirement plan is just you putting away a stash for your own future.
Whether you make weekly, monthly or quarterly contributions, your retirement plan should start long before you need it because over time it can create that early exit from the workforce you’re already dreaming about.
2. SAVE FOR A RAINY DAY
Dodging your landlord on the first of the month should never be your regular M.O. because the struggle is real. Checks get lost in the mail and unexpected expenses can pop up at any given moment, that’s why by age 30 you should have learned to plan ahead.
Experts advise having at least 6 to 9 months of living expenses in an emergency savings account in case times get tough. Understandably, that’s not a reality for most, but that doesn’t mean you can’t put a few coins in the stash.
Set up an automatic deduction to transfer whatever funds you can spare every payday so you don’t even have to think about it. Having a few rainy day funds tucked away is better than having none at all. Real talk.
3. APPRECIATE ASSETS THAT APPRECIATE
If you’re still living in your mama’s basement but have only name brand clothes in your closet and a 2015 car in the driveway, it may be time to reassess your priorities.
It’s okay to have a fondness for the finer things in life, but if the majority of what you spend your money on decreases in value the minute you cop, then you’re what’s often referred to as ’hood rich. The money you spend for that luxury car note or high-priced rent could better be spent on a first-time homeowners loan. Buying property is one of the wisest investments anyone can make — at any age.
Instead of trying to keep up with the Joneses, everybody should be trying to keep up with you.
4. A BUDGET ISN’T THE PLACE YOU PICK UP A RENTAL CAR
Nine times out of 10, living check to check comes down one thing: budgeting. Anyone that’s holding down a salary job knows exactly how much they get paid each pay period, so it’s not like the money just gets up and “disappears.” You spent it, and it’s your responsibility to keep track of those expenses.
If payday always becomes turn up day, you’re just hustling backwards.
While it’s okay to treat yourself to a good time, that should be after all of your household bills are accounted for. Set up a budget plan in Google Docs or Microsoft Excel that not only accounts for your monthly expenses, but also includes spending money for food and transportation.
Once all your bases are covered the remaining balance is your “play money,” but if that figure isn’t enough to buy a round for your friends at the bar then maybe you just need to stay in more.
5. GET CHARGED UP, BUT WISELY
A big part of being an adult is establishing credit once you’re out of your parent’s crib. Unfortunately, credit of the bad variety is a lot easier to earn than the good kind.
College students often get lured into signing up for their first credit card and make the mistake of viewing it as “free money” when that couldn’t be farther from the reality. Only pay the monthly minimum on a card with a high interest rate can quickly turn a few small purchases into a big headache that costs you several times more than the sticker price.
Having no credit history at all can be just as bad, because lenders have nothing to go off of and they’ll just assume the worst about you and your spending habits.
The best way to keep your credit clean is to be easy on the plastic and shop around for low interest rates and credit cards with useful perks like bonus points for every dollar spent. Of course, you should do your best to steer clear of unnecessary charges by paying those bills on time. Set up direct deposit payments and you’ll see that credit score soar.
6. THE BARE MINIMUM IS NEVER ENOUGH
The gift and the curse of getting a great college education is the bill that follows you around for years long after you’ve chunked up the deuce to life on campus.
Student loans are the bane of any graduate’s existence, but avoiding them won’t make it go away. It might feel like it’ll take forever to pay these loans off, but if you aren’t keeping up with the monthly minimum that’s how long it’ll will take.
Speak with a loan representative and make sure Sallie Mae is getting paid on time — again ignoring payments can crush your credit score. Whenever possible, try to put a little extra on that payment to help get that monkey off your back even quicker.
7. FAMILY COMES FIRST
If you’re writing kids off on your taxes, it’s only right that you break them off with a little something for their troubles by investing in their future college education. You don’t want them falling into the same loan trap as you, right?
One easy way to do that is by setting up a tax advantage 529 savings plan. If you assign yourself as the beneficiary, the funds can be directed at any family member you choose should your kids not to attend college. And the best part? It all grows tax free — the government will never see a dime of that crucial nest egg.
8. IN SICKNESS AND IN HEALTH
As you get older, you might start to realize that you’re not as invincible as you once were. Even with a good diet and weekend pickup games, your health will eventually turn into struggle at some point. There’s no warding off the effects of Father Time.
Instead of waiting for bad knees and illness to slow your swag, research HSA health savings accounts. Regular contributions can be deducted from your paycheck and grow tax-free.
Even if you are blessed and not stressed with health issues, you can use the money down the road if chronic illnesses do take their toll. Remember, it’s always better to be safe than sorry. So pay up now you won’t be crying to the poorhouse later.
photo: John Saint-Hilaire / WENN
9. WHERE THERE’S A WILL THERE’S A WAY
Although it can be a scary thought for most folks, it’s never too early to have a last will and testament drawn up.
Along with attaining a revocable power of attorney, who can make medical and financial decision for you should you become incapacitated, establishing a will can make sure your wishes are honored should an accidental death occur.
You can’t come back from the dead, so make sure you choose someone you trust to protect your loved ones and make sure what money and assets you did have get distributed as you saw fit. This is especially true for anyone who has children.
10. GET YOUR MONEY RIGHT
If you’ve reached the end of this list and still have questions, there’s no shame in the game in seeking out business and monetary advice from stockbrokers, financial advisors, or CPAs (certified public accountants) to get a better handle on how to make the best of your bread.
Money management ain’t easy so having a financial coach on your side can help make the journey that much easier.
Go to a major banking institution like a Wells Fargo and get set up with an advisor you can trust and let them worry about your financial future for you.
Remember, your money should work for you, not the other way around.
