Learn some money basics from “your financial preschool teacher.”
- Most Americans do not receive a good financial education as children.
- Tiffany Aliche grew up around honest and open conversations about money, which helped her when she encountered financial problems.
- She has 10 solid tips to improve your money management skills.
Tiffany Aliche is a financial educator, writer, and podcast host who goes by the name of “The Budgetnista.” Tiffany grew up in a household where money was discussed openly and freely, and she quickly managed to save money and buy a house in her twenties while working as a preschool teacher. Unfortunately, she then ran into difficulties with her job and her debts and had to rebuild her financial life from scratch. Now, her mission is to teach financial skills to Americans, with a particular focus on young people (and in fact, she’s described herself as “your kindergarten financial teacher”). Thanks to Tiffany’s efforts, her home state of New Jersey now has Law A1414, “The Budget Law.” It requires high school students to learn financial literacy in New Jersey schools.
Tiffany has 10 steps to “getting good with money.” They are meant to lay out the basics of good money management and then expand on those fundamentals.
1. Budget Building
Not only do you need a budget, but you also need the right bank accounts and automations (like autopay and direct deposit) to support that budget. Without a budget, it will be harder to see where your money is going and where you can save and learn how to spend better.
2. Save like a squirrel
Tiffany believes in the oft-repeated financial advice that you should have at least three months worth of expenses in your savings account, in case of an emergency. You should also save for other financial goals, such as investing.
3. Unwind your debts
In order to get out of debt, you need to know how much you owe and to whom. Then you can come up with a plan to get out of it and use online bill payment as well as automatic payment to do just that.
4. High score
Did you know that you can request three free copies of your credit report per year, one from each of the three credit bureaus (TransUnion, Experian and Equifax)? Your bank may also offer credit monitoring. Tiffany Aliche says you should aim for a credit score of 740 or higher.
5. Learn to win
Tiffany also tells people to invest in themselves by keeping track of their skills and contributions at work, and using that information to get a raise. You can also take care of a side and earn more money using these skills.
6. Invest like an insider
Investing for retirement is another key money move. Tiffany notes that it’s all about figuring out what your goals are, coming up with an investment plan, and leaving your money alone to grow.
7. Be good with insurance
Good insurance coverage is essential for your financial security. You need to make sure you have the right types of coverage for your life and situation, including life insurance, which isn’t mandatory like auto and home insurance often is, but is still a smart purchase. for your peace of mind.
8. Get Rich
Tiffany advocates learning to calculate your net worth, then developing a plan to increase it based on your financial goals. This should be a monthly exercise in your overall money management plan.
9. Choose your finance team
Having the right finance professionals by your side throughout this process is critical to your success. This may be a financial planner, an accountant, an insurance broker and an estate planning lawyer.
10. Leave a legacy
Tiffany notes that no matter how many assets you have, you need to have a plan for what happens to them after you leave. Take inventory of your assets (real estate, stock portfolio, even personal property like valuable jewelry) and work with a lawyer to determine where they will end up.
Budgetnista’s tips cover most of the financial basics that many of us unfortunately didn’t learn in school. The first five will help you with the basics, while the last five focus on helping you retain and grow your wealth. Many people have had to find their own way when it comes to personal finances, and it’s hard to find someone who can’t relate at least one financial regret. Tiffany Aliche’s financial advice is grounded, accurate and actionable, and her advice is worth heeding.
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