If you’ve been following the Money Talks series, you know it addressed some of the ways wealth is unequally distribution in America.
Now, we want to share some advice from financial experts about how to build your wealth.
Buy life insurance outside of your job
Millions of Americans lost their jobs, and their benefits, thanks to COVID-19. That company life insurance plan can’t do much for you if you don’t work for that company anymore. Consider buying a life insurance plan outside of your work-provided plan, if you have one.
If your company does provide life insurance and you’re still employed, keep your plan. It’s tempting to cut it to reduce the deductions from your paycheck, but don’t let go of that life insurance.
Life insurance ensures your family and your debts will be taken care of after you die. It’s also a way to transfer wealth to your family and ensure they can afford to bury you. No more GoFundMe funerals, y’all.
Examine your spending
This one seems like a no-brainer, but seriously. Look at your spending. Take three months of your bank statements and look at your expenses. Try to determine what spending is based on your cost of living and what spending is on extra things.
Use this to make a budget. Again, this one seems like a no-brainer too. It doesn’t have to be a bare-bones Dave Ramsey approach, but get serious about where you’re spending your money.
What’s important in creating a budget is ensuring that your income is greater than your expenses. If your expenses are more than your income, you should make some adjustments. You may be able to trim some spending to make up the difference. Or, you may have to adjust your income.
Having a budget is about knowing how you spend your money. Knowing how you spend your money empowers you to make good choices about that money. Are you spending your money on cocktails every weekend or are you putting more into your 401k?
It’s hard to save money. It’s especially hard right now. Even if you’re saving as little as $20 every paycheck, you’re saving something. Those savings are important, because you want to be able to continue investing in your means of living, even when you encounter bumps in the road.
Get professional advice about your finances
I’m not a professional financial advisor, but there are a lot out there. If you really want to dig into your finances and determine how you can best use your money, find a financial advisor.
Watch the full Money Talks episode here: