G.Y.S.T. 101-1:Finances

Alright Whelps, so you're 18 now, an adult right? You've got it alllll figured out right? Boy do I remember that feeling. Thinking I knew exactly how my life was going to play out. Boy was I wrong.

I had a lot of great ideas - more like goals, that I had every intention of fulfilling. The thing about life that I didn't realize at the time, was that I was going to be struck by reality at every turn, good, bad, inconvenient and ugly. Doesn't matter if you're dumb, smart, or well intentioned. Karma's a bitch, and she's a cruel mistress. So in true big-sister fashion, allow me to provide a few pointers.

1. Open a long term savings account, the sooner the better. Put away 5-10% of what you make, have it automatically deducted from your paycheck, leave it alone, and forget that it exists. Doesn't matter how much the regular sum is, you'll be pretty surprised by the lump sum you have put away by the end of the first year. Not starting this when I started getting regular paychecks is probably the biggest regret I have as a now 26 year old trying to buy a house and pay off my worthless degree. When people say save your money, I get the desire to roll your eyes, but really it makes a huge difference.

2. Open a very low credit card line, say $250. This is important, any time you make a large purchase, they are going to want to see credit history. Now pay attention, the card companies and many others will say that they want to see you using it, but this doesn't mean max it out and keep the balance long term. When you use it, try not to use more than 30% of the total amount allowed. For a line of $250, that's $75. Now, in order to keep the account in use, and in the best standing you can, 10% is the best amount you could use. So, if you're aching for your own Netflix and Hulu subscription, put those on your credit account, and automatic payments to pay off the total balance at the end of the month. After a few weeks to months, you should see your credit score begin to skyrocket, and you could be awarded with a higher credit line after awhile, which can be helpful if you find yourself in an emergency situation.

Now disclaimer, if you find yourself in an emergency situation, and you are forced to max out your card, DONT LET YOUR MAXED BALANCE LINGER FOR LONGER THAN YOU NEED IT TO. The interest builds a lot faster than you think it will, and the minimum payment will do little to help pay down the principal before the interest starts to accumulate faster than what you are paying monthly, so always pay more than the minimum. When I did the opposite, it actually took twice as long to pay it off, and i ended up paying a thousand dollars or more than what I originally "borrowed" from the credit card company.

3. Pay attention to the boring conversations, especially if they sound like they are important to someone at the time. You can learn a lot from others mistakes if you give the idea more than a moments thought. Of course we learn from our own mistakes, but why can't we learn from other's mistakes too. Utilize your curiosity and the google search function to learn. So many practices I have had I've learned because I asked google the questions I was too proud to ask someone in person. (Even though more seasoned adults often have a lot of good answers to offer).

4. Don't be too proud to ask for advice or help figuring something out. Its better to be uncomfortable for a few minutes when asking a question, than to avoid asking and spending extra time and money trying to fix something you could have avoided if you had just listened to someone who have been through it before. Even if you don't take the advice that has been given, there is a lot to learn and decide with if you give it the opportunity.

I have a lot more G.Y.S.T. Advice, so if you're curious, please leave a question or a comment, and maybe we can all help each other.

Stay blessed y'all.