Are You Financially Okay? Let’s Tackle It Together.

Hi loves! Are you financially okay? That’s right finances, who loves talking about this specific topic? Hardly anyone. I found as a Financial Advisor many people don’t know how to handle their finances or even if their financially okay. The older generations do seek help when they feel it is needed, but what does my generation do?

We seek for answers online, from what our parents did, or our friends. But how do we know the information online is legit? We don’t. That’s the problem today and our schools don’t teach us on the importance of savings, credit, debt, taxes. I could go on. 

But today on Karen Giuliana, I want to start that conversation. I normally write about beauty, travel, fashion, and fitness, but today I want to start sharing my knowledge with all of you. I want to be a guide for you to seek financial advice from and ask about your current financial life.

It’s a hard subject for everyone to discuss so don’t feel dumb or shocked if you don’t have all the pieces there yet. I’m going to share today on seeing if you’re financially okay. Let’s get started:

Do You Have A Savings Plan?

A savings account is one of the first things you should have before saying you’re financially okay. Why? Because it’s an emergency fund, a fund for a future house or life change. Yeah, sure having a savings account with 100 buck is nice, but what does that provide.

If your tires went out today and you need 4 brand new tires, would you be able to afford it without any help? For most Americans the answer is NO, in a recent poll about 40% of Americans that responded said they couldn’t cover an emergency of $400 dollars or more.. I don’t know about you, but tires on the cheap end run for about $700 or more when you include the labor and taxes. So, 1 emergency and you’ve almost wiped out your savings account. 

Just having a savings account isn’t enough. You need to be putting money away regularly for it to be useful. Start small, put away $20 dollars a week. I’m sure we all spend $20 dollars weekly on something frivolous as coffee or breakfast. Make your own at home and put that money away. By the end of the month that equals to $80. The year $960.

Now each year, you’ll grow your savings into a bigger fund to cover emergencies without hurting yourself. Start small and if that’s doable go up another 5 bucks. Challenge yourself. To be financially okay, you should have a decent amount saved for yourself in case of an emergency or a percentage of your gross salary.

What About Credit?

The sad part of my job is that I see so many young adults who are afraid to get credit cards and wait until they are out of college or almost 30 before they actually apply to get a credit card. You shouldn’t be afraid of credit cards. Just BE SMARTER! I got my first credit card at 18 and all I did with it was use it for gas and buying college books. I spent it on things I needed.

That is the MOST IMPORTANT concept. Don’t buy things you know you can’t afford and just put it on the card. You’ll get trapped into debt and paying interest fees. Use it on things you NEED and already have the money in your checking account to pay for it. 

I would literally buy gas every week and transfer the money from my checking to pay the credit card every week. When it was time for the semester to begin, I was going to spend the thousands of dollars’ books cost anyways so might as well put it on my credit card and pay it from my checking account. Here you pay no interest and you’re building your credit.

By the time I was 22, I went to Ford to buy a new car and due to my credit being so well built and also having a great paying job, I got an offer for 6 years at 0% interest to buy my car. INTEREST FREE at 22 years old. It’s rare you hear that, but it’s clearly doable. 

You don’t want to be 25 or older and just getting your first credit card, because you’ve wasted 7 years already of potentially building your credit. And by 25, you’re probably already looking to either buy a car or rent and have no credit. It becomes harder to get credit the older you get without having credit. Don’t be afraid of credit just smarter. To be financially okay, you need to have some type or kind of credit.

Do You Know Where To Get Financial Advice?

One thing, I see a lot of is younger people are afraid to ask for help? I get it, if I didn’t work in a bank I probably would be looking at blogs and website as well. I do recommend, however, to go ask your bank for education. We’re there to help guide you and answer your financial questions. Will the bank associate try to sell you something? Of course, it is their job.

But you have the power to SAY NO! Some bank associates are pushier than others, I’ve seen it and honestly, I would tell you to go in asking for advice and let them know you need to get more information. If they try to sell you something, simply say, “No thank you.” If you feel you want to get whatever they are selling you on, do it. Follow your gut, it’s your financial life. 

To Wrap It Up

I hope if anything, I got you thinking. Thinking about your current finances and if you’re financially okay? It is a lot of information and I really just hit the surface of things. I plan to go into more details over the next months with my blog. I want to be a resource to all of you.

One of my passion is finance, I’ve been in the banking industry for 8 years and counting. I see so many people who struggle, don’t struggle, have money, don’t have money and it all starts with EDUCATION. You need to know the basics before you can begin to apply the work. So start putting some money away first, start thinking about your credit, and know where to get the best advice for you. 

If you have any questions, feel free to leave a comment below or even contact me through here. I’m always up to help you with your finances and be a guide for you all. My thoughts and advice are completely my own and in no way affiliated with my current employer. 

XOXO

Karen Giuliana