Happy, Happy Money

This morning, I saw a quote that basically said once you figure out money, everything in your life becomes easier.  Given that we live in capitalist society, I would agree with that.  Money is inert but it solves problems & generates a certain type of freedom.

Lately, there's been a lot of talk about student loan debt, for profit schools, and inability to ever retire.   When I started college, I had no clue about student debt and how that would end up dictating my career choices and lifestyle.  Long story short, I was pretty broke through my 20s but, eventually, became debt free. Although, trying to pay off Navient turned into an exercise of red tape, requiring assistance from Elizabeth Warren's office (another story, another time).  Anyway, because of my experience growing up in a working class family & navigating post school debt, I ended up with a volunteer gig doing financial literacy seminars for inner city, college bound students. 

As we're moving into a new season and a time of reinvention, I wanted to share some of the concepts that I share with my kids:

Practical Tips

1. Never spend more than you earn.

2. Always pay your credit cards off & any debt down.  Better yet, don't get into debt.

3. Read your contracts. Know your obligations and for how long you will have them.  Think about how these obligations will dictate future life choices - because they will.

4. Budget for all your expenses - not just the big ones.

5. Use contraception #momoneymoproblems

6.  Save for a rainy day.  There's nothing worse than having a crisis and no way to make it better. 

7. Keep an emergency $20 bill tucked in your wallet.  You never know when you'll be stuck somewhere where you can't pay with your phone or cards.

8. Always have skills that will enable you to support yourself & your lifestyle.  Never stop learning.

9. Insurance. Insurance. Insurance.  Health, dental, car, renters'.  If you're inclined to get other types of insurance, make sure you know what the policy covers & decide whether it meets your needs.  Pet insurance is a notorious one for never covering what you need.

10. Take care of your health & well being.  Eating out, smoking, etc. are expensive and often not great for you. 

Emotional Tips

1. Find what you love about your work and value that.  It's almost impossible to love your job all the time - and you won't.

2.  It's better to be broke in your 20s when all your other friends are & you have no pressing obligations or dependents.

3. Spend money on experiences, not stuff.

4.  Earning your own money is empowering and intellectually stimulating at any age.  Over the years, I've worked with various age groups but mostly retirees.  By their own admission, those who worked part time or had outside obligations felt healthier & happier.

At the end of my seminars, I always recommend the book Happy Money: The Science of Happier Spending, where 2 Harvard researchers explain from a scientific standpoint how spending money in certain ways can make you happier & more fulfilled.  I recommend it for those starting fresh, starting over, or just looking for a new way to think about old concepts.

If you have any tried & true money tips, leave them in the comments as I share this blog with my kids.