April is Financial Literacy Month and I wanted to send over some expert tips from my client Tatiana Tsoir, CPA/MBA and certified finance coach. Like it or not, finances are something we all have to contend with and for many people, the concepts of financial success are not easy to grasp.
A recent survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt and about 6% have more than $10,000 in credit card debt. Although 6% may seem like a small amount, that means that based on the survey results, 14 million Americans have over $10,000 of credit card debt.
Tatiana says that financial success often begins with a firm foundation of financial understanding. She has the following tips for Money Skills Everyone Should Know By Age 30.
-Know The Terms: Many people do not understand the terms of their credit cards, bank accounts, loans, or cash advances. Know what you are getting yourself into and whether it is going to help or hurt your financial situation.
- Check Your Attitude: Knowing your own attitude toward money is essential in understanding how you approach your finances and whether or not an attitude adjustment is needed. Maybe you grew up in a family where money was openly discussed. Or, maybe you grew up in a family where budgeting was unheard of and money was spent like you had an unlimited supply. Whatever it is, take the time to know yourself and your habits.
- Know The Flow: It is imperative to know how much money you are bringing in each month, and how much and where you are spending it. If the former is bigger than the latter - you’re good. If it’s the opposite - you’re screwed. Understand the priorities of your budget, things like rent, utilities, healthcare, and credit card debt should come before things like dining out, entertainment, or other items that are wants over needs. Maybe you don't realize just how much money you are spending on Starbucks and fast food. Maybe you have subscriptions services you really aren't using.
- Stash It: Start setting aside a little bit of money for no reason whatsoever. Just 50-100 bucks a month can make a drastic difference in your safety net. If possible, consider investing even a small amount of savings and you will enjoy the side effects of the power of compounding, let your money work for you as hard as you are working for it. Make sure you are putting money away for your retirement. If you are working for a company with 401K benefits are you maximizing the potential?
-Use Your Resources: Use software or programs like Mint or Truebill to track expenses. Check out things like digit.co to help you save painlessly.
Financial literacy isn’t just a superficial concept. It’s a must-do or must-have for everyone. Can you afford your current lifestyle? Are you digging yourself into a hole of insurmountable debt? You need to know if you can afford to have a dignified retirement or if you will be working until you die. You need to know if you can pay your medical bills and living expenses. Do you have money available in the case of an emergency or job loss? You have to know that you have confidence in tomorrow, no matter what’s thrown at you.
Please let me know if you would like to schedule an interview for financial literacy month! I am happy to coordinate.
KT Media Strategies
Tatiana Tsoir, CPA, MBA, is a Transformative Business & Finance Coach, Certified Life Coach, Author, Speaker, and Podcast Host. A fervent believer that the key to freedom lies in entrepreneurship, Tatiana specializes in helping individuals prepare and transition from the antiquated 9-5, to starting and running their own companies.
Over the last 16+ years, Tatiana has used her expertise in tax planning and price psychology to help hundreds of businesses become more profitable, stabilize cash flow, and pay less in taxes through a combination of tax strategies, operational planning, and commitment to excellence.
In her signature mastermind program ” Something That’s Yours,” she supports women in learning to color outside of the lines and go after their bold dreams so that they can be their own boss and make money doing what they love.
Tatiana is a frequent speaker at conferences, is the author of "Dream Bold, Start Smart: Be Your Own Boss & Make Money Doing What You Love" and host of the podcast Talk to Tatiana in which she has conversations with world experts about their entrepreneurial journey. Tatiana has been featured in Parents Magazine Business Insider, GoBankingRates, Bankrate, CBS, The List, The Daily CPA, NTD, Thrive Insider, Forbes, US News Money, and National Speaker Association.