You see, when you’re a kid that grew up in the 90’s with a musician father and a brother who’s life revolved around hip hop, Wu-Tang Clan was a staple in my house. I was always listening to music about artists struggling and making money always from Notorgious BIG to Jay Z I learned that even if you grow up poor, if you have enough grit, you have a “chance”. Of course, our American society doesn’t make that happen if you start waaaaaay at the bottom. But, it’s not impossible. So if you happen to dig yourself out of hard economic times, what should you do with that extra cash?
Well for one, what’s the point of keeping your money under your mattress? I am not one to stash away loads of money. Buuuut I do keep 3 months worth of rent/mortgage somewhere at all times because as Biggie said, “more money, ‘mo problems”! Meaning, the moment you come up with some sort of extra money, something happens happens–tire goes flat, AC breaks, you break an ankle, or your cousin needs cash.
The goal should be #1 to find a way to make more money. My opinion? Always look to get promoted. How is it that some people end up being cashiers or secretaries forever? Not that there’s no honor is those jobs, but you’re never going to reach that money goal if you stay still! What are you good at, what extra classes can you take, what else can you do to get a raise or get promoted? If your current job sucks, where else can you work? Work is work and you’re very likely to always have a nasty boss or co-worker so that is something we all need to suck-up. Get thick skin and don’t let those people get in the way of your cash-making! But yeah, when we say work hard, that’s what we mean. Put in extra hours that make you MONEY! Can you take a night course? Does your job offer extra training so you can be the top percent of experts in a field? Is there another company that pays more for what you do currently?
Finally, making more money often requires risk and sacrifice. You sacrifice self-time, family-time, parties, netflix-time, ect. But it’s only for a short time. I studied like a crazy person for two years in nursing school while friends went out to clubs and frat parties. But look at me now! I don’t even remember those two years and don’t even keep in touch with any of those “friends”. I hang out with like-minded people and those that support my journey. I never lost sight of my end goal. I risked taking an $80,000 loan to pay for my Master’s degree. I then again, sacrificied time to go back to school and work to get experience.
The most important lesson? Pay it all off ASAP! This is not the time to buy stuff for yourself because you “deserve it”. That’s where everyone trips up.
So how about a little fun? Sure, but the key is—if you cannot pay your credit card at the end of the month–DO NOT BUY IT!!! Do you deserve a vacation? Of course you do! But does have to be to Dubai? NO! Can you take a few days off and go to the beach? Of course! Going into debt while you’re already in debt is the perfect recipe for financial disaster. It took me 5 years to pay off my loan and now FINALLY I have a little extra cash-flow! First thing was again save up to keep 3 months cash in the bank. Anything extra turns into play money.
Don’t fall into the trap of social media having to have a nice car, clothes, makeup, or special containers to organize your laundry room. Focus on what you really need. Can you hold off on buying those Jimmy Choos but can take the kids to the waterpark?
Should you pay off your car or go back to school? Which one has the best payoff? Are you ACTUALLY going to finish school and will you get a high-income job afterwards? If not, then don’t do it and pay off your car instead! Want to do both? Sell your current car and get a cheaper one! There’s tons of ways to shift around your money. The key is to never spend more than you have. Even if you want to Y.O.L.O remember, the next day life goes on and bills will still be there. Live within your means and focus of what you can do to increase your income in a legal way! Live a C.R.E.A.M mentality to not lose focus on your future plans. Be happy with what you have NOW. A new face primer or a new pair Louis Vuitton pumps will not make you happy everyday! It’s cool that day, then the feeling is gone.
My final point. What if you DO have a little extra cash. Keep saving or spend it? Now here is where I say YOLO baby! Life is short as they say. Making memories, having new reason to laugh, new experiences, tasting new food, traveling to new places, upgrading something that will make your life easier..that’s making it! Then you do your “I deserve this” purchase. But again, within reason, and within your budget! What if I died tommorow, will I regret not buying this or going here? If the answer is yes, DO IT! Hussle hard and PLAY harder!!