It’s a new year and new beginning. 2020 was an unique year that is going down in the history books. The way people make money and how our country operates has forever changed because of the events of last year. 2020 affected many people financially and caused many people to panic. Overall, 25% of U.S. adults say they or someone in their household was laid off or lost their job because of the covid-19 outbreak. It showed everyone whether or not if they were where they needed to be financially. Some people were not affected as much; however, for some it was a wake-up call. Hopefully, 2020 was a year that allowed people to take the necessary steps financially. Here are a few tips to give you hope financially.

January 10, 2021

By: Darius Malbon

1. Make A Budget

Making a budget is so important. I know it sounds cliché to hear make a budget; however, when you make a budget, you finally take control of your finances. You are now in charge and able to tell where every dollar goes in your budget. Many people feel like money is controlling them; however, they never spend the time to give themselves a plan. One thing I realized in life is that it’s nearly impossible to have a goal and progress if you don’t know where you currently are. You have to analyze your situation and be able to know where you start so that you know how to move forward.

Things to know:

1. You should always know how much money you make

2. You should always know how much money is in your bank accounts (checking/savings/brokerage)

3. You should always know how much money you are able to spend in a particular category

4. You should always have some tool that allows you to see where you stand financially (budgeting apps/spreadsheets)

Reflection 1: Create a budget so you can direct where you use your money.

2. Get Serious About Saving

One has to get serious about saving. Many people struggle in life because they are willing to spend their money but not willing to save. Humans love the instant gratification of pleasuring ourselves when we want; therefore, it allows us to spend our money freely. I am not saying to not spend money on things that we like, but you have to be willing to save money so that you have money in case of emergencies. Also, saving allows you to purchase things without having to go into debt. Debt is not a fun thing to have. One should always pay themselves first before spending money on other things.

How do you pay yourself first? You create a budget and determine a specific portion of your income that needs to go into savings. Put your money into savings before you do anything else.

Reflection 2: Rule of thumb: you should have at least 3-6 months of monthly income saved up into savings; however, the more the better.

3. Stay The Course With Long Term Investing

When it comes to investing, stay the course. Building wealth takes time to do. However, there becomes a point when the wealth increases exponentially due to compounding. Investors love the compounding principle which basically means your earnings create more earnings. Essentially, your money is working for you instead of you working for your money. Investing takes discipline and research to do it effectively. Also, there are many different avenues one can invest. The key is to find out what investments work best for you and your risk tolerance. I recommend getting a professional to help guide you in your financial investments.

Reflection 3: Investing allows you to grow your money and help beat inflation.

4. Stop Comparing Yourself To Others

Stop comparing yourself to others. Many people get in financial hardship because they are trying to keep up with their neighbor and for status. I will let you in on a little secret. People don’t truly care about what you have the way you may think. People have their own lives to worry about and their own struggles. Be smart with your money and be disciplined. Once one can focus on their own situation, what other people have doesn’t matter.

Reflection 4: Don’t go broke trying to impress people who don’t care what you have.

5. Focus On Your Behavior

Focus on your behavior. One has to train their brain to think about financial prosperity. Finances isn’t something one learns how to do in school. Because of this, we need to train ourselves to be smart and proactive when it comes to money. Having wealth isn’t everything; however, it gives you options. Make sure to create a plan first thing today but even with a plan, you still need to make sure you put the plan in action. You cannot expect to have financial freedom if you can’t even be discipline.

Reflection 5: Wealth doesn’t just happen, creating wealth is intentional.

Philippians 4:19 – And my God will meet all your needs according to his glorious riches in Christ Jesus.

Disclaimer: This is for general and educational purposes. Profits or losses are not guaranteed. We are not liable for your financial engagements nor outcomes.

Contact Info:

• Website: www.dariusmalbon.com

• Email: dariusmalbon@gmail.com

• Facebook: https://www.facebook.com/darius.malbon/

• Instagram: https://www.instagram.com/dmballer32/

Sources:

• Kim Parker, Rachel Minkin, and Jesse Bennet, “Economic Fallout From Covid-19 Continues To Hit Lower-Income Americans The Hardest” Pew Research Center, September 24,2020, accessed January 9, 2021 https://www.pewsocialtrends.org/2020/09/24/economic-fallout-from-covid-19-continues-to-hit-lower-income-americans-the-hardest/