Wealth is your birthright. 

Nothing is out of your reach. You can buy your dream home, pursue an advanced degree, launch your own dream business, and travel the world—seated in business class, honey. 

These are the words of Karen Arrington from her book, Your Next Level Life. She’s the founder of the Miss Black USA Pageant & Scholarship fund. And she does a phenomenal job of explaining how to create all the money you need in a portion of her book. 

When I read her four-letter words, “Wealth is your birthright,” I perked up in my seat and felt the power of those words coursing through my veins. Why? Because I’d never heard anyone mention wealth as a privilege from birth, just as your name. Or at least not in those exact words. The thing is, you don’t have to come from a generation of money to be wealthy. You can determine your wealth.

(Are you clenching your pearls yet?)

Money matters. I’ll say it again for anyone hiding in the back, money matters. Let me explain what I mean. Often, money is so taboo to talk about, and for some, it makes them uncomfortable to think about their financial future. But, unfortunately, there’s no way around it because you need money to live. If you’ve been pledging to be smarter with your finances for years, and you haven’t, why not? If you told yourself, “I’m going to manage my finances better in 2020, and you’ve failed to keep your promise to yourself thus far, why? 

Perhaps, you don’t know how to accomplish it. Maybe, you’re afraid of what the outcome will be. Maybe, you feel defeated, and you’ve given up. Whatever it is, there are ways to help. 

I was listening to Balanced Black Girl podcast (episode 53: Building Financial Wellness) a few days ago, and Tonya Rapley, of My Fab Finance who was a guest explained simple/practical tips to examine and manage your debt. (1) Resist the temptation to eat out. (2) Put five-ten dollars in savings each week. (3) Check-in with yourself before making a larger purchase over $100. (4) Know your debt to achieve your financial goals. (5) Invest. 

There’s no one size fits all when it comes to finances. Everyone’s situation is different, understandably, but there are simple ways to manage and improve your finances based on your situation. 

Disclaimer: I’m not a financial adviser, accountant, or money expert. These are things that I’ve incorporated into my life that have worked for me.  

Protect your credit: Your credit is your lifeline. Without decent credit, it will hinder you from purchasing a house, car, or any other large purchase that you may need a line of credit to do so. Dave Ramsey New York Times best-selling author of Total Money Makeover explains, “The only way to truly improve your credit score is by paying off debt and committing to a debt-free lifestyle today.” He also says, there are four ways that you can improve your credit score:

  • Paying your bills on time
  • Paying off debt
  • Carrying a balance that is less than the credit limit
  • Disputing inaccuracies  

Invest in a savings account: As you know, life can pack a major punch sometimes. Things happen. And when illness strikes, a job is lost, a tragic death occurs, or any other unforeseen circumstance happens, you need security. Suze Orman, explains in her book, Women & Money building a financially secure life starts with laying a foundation that will support you when the unexpected happens. An emergency savings fund is not just a foundation you need. It is the foundation you deserve. She recommends an eight-month reserve to have maximum protection from whatever storms my form. In her book, she breaks down the following:

Determine your monthly cash needed (MCN) $ _______

Multiply your MCN by 8 to set your Emergency Fund Goal:

_______ x 8 =_______ your Emergency Fun Goal

Set a Monthly Savings Goal to Build Your Emergency Fund

Divide your Emergency Fund Goal by 12: $ ______

Divide your Goal by 24 $ ______

Divide your Goal by 36 $ ______

Divide your Goal by 48 $ ______

Divide your Goal by 60 $ ______

Invest in a 401(k): The reality is, you’re going to get older, and you need retirement to live. If you haven’t invested in a 401(k), check with the human resources department at your employer and open up an account. Typically, your employer will match your contributions. Rule of thumb to remember: If you don’t contribute enough to collect the full amount, you are missing out on free money. 

Invest in a 529 college savings account: If you have children, this is crucial that you open up an account for them. Once your child receives their social security card—you can open an account. The benefits of a 529 college savings plan are well worth it. This account can grow at an exponential rate if you’re consistent. For more information, click here. 

Don’t settle for a life of financial mediocrity. Set your financial goals high and manage your financial wellness well. Position yourself for security that will be your safety net. And remember, you don’t have to be wealthy or rich to set yourself up for financial security in the present and future. Do what you can, with what you have now. 

How are you setting your financial goals for 2020?