My creative moguls in the making, let’s have a discussion on finances. They are a critical part to your business at all stages of development and the better handle you have on them, the quicker you can break even and begin to see profit. From now until Haute Hemisphere’s first birthday (August 24) I am making a few changes to help all of my artistic entrepreneurs reach their goals. I have been on a mission finding reliable financial mavens to gives tips and suggestions to increase your wealth so you can save and build your brand.
To kick off this series I bring to you Tiffany Aliche, of The Budgetnista . I couldn’t be more excited to share her knowledge as I am always on twitter reading and retweeting all her posts. Remember her name, I'll be back to share what I learned from her bestseller The One Week Budget .
HH: Tell us about yourself, your book (The One Week Budget), and the live richer movement.
TA:I’m a schoolteacher turned personal, financial expert. In 2008 I started The Budgetnista, a professional and educational services firm that specializes in the delivery of financial literacy.
In January 2011 I self-published a fun, financial read and bestselling book entitled, The One Week Budget (#1 Amazon / budgeting), which teaches readers how to manage their money over a period of 7 days.
I wrote the book because I wanted everyone I knew to LIVE RICHER. LIVE RICHER means to purposefully and passionately pursue your ideal life. It’s a movement I started to teach people to experience every-day life with more fun, for less money
HH: What do individuals in the 20's age bracket need to know about finances?
TA: The top 10 most important thing 20-somethings need to know about money are:
1) Begin budgeting. All your financial successes or failures will begin with how well you budget.
2) Begin taking care of yourself financially. Try not to lean so heavily on your parents. The sooner you take financial ownership for your life, the sooner you can make mistakes, and the sooner you can learn from them and do better.3) Save and pay down student loan (debt) at the same time. It doesn’t make sense to be debt free, but have no money saved. If an emergency arises (and it will), you’ll have to get into debt (credit cards), to handle it.
4) Choose passion over money. If you begin your career chasing money, you will end with money. If you chase purpose and passion you get money and everything else.
5) Begin building good credit. Pay what your creditors ask or more and on time or before.
6) Don’t go to grad school unless you’re absolutely sure, and even then, find a way to get someone else to pay for it. Trust me. Nothing kills a dream like knowing your career path can’t possibly pay off your schools loans.
7) Begin saving for retirement now.
8) Get health insurance. The cost of medical and dental care without it is unreal.
9) Do not borrow money for your wedding.
10) Do not rush to get a house. The Budgetnista House Buying Rules:
· Do any big, major, fun thing you want to do first, before buying a house (ex: travel the world). Mortgages have a way of leaving little-to-no money left over for such things.
· Make sure you love your job. If not, having a home may make you stay at a place you hate, because you have a big financial responsibility (i.e. mortgage)
· Make sure the area is where you really want to live for a number of years.
· Make sure it’s an investment. If you had to rent out your home for whatever reason (hardship, move for a new job or love etc.), would what you could get in rent, cover your mortgage and other home expenses? It should. Structure your deal to make sure a potential tenant can cover your monthly housing cost.
HH: How can creative minds with entrepreneurial actions live richer during the infant stages of business development? What kind of goals and savings plans should be implemented?
TA:New entrepreneurs can begin to LIVE RICHER by:
- Living by percentages. In the beginning, your money will be funny, so you may not know what you’ll make month-to-month. My percentages are: 10% charity, 10% retirement, 5% debt-pay-down, 5% taxes, 5% travel, 65% life (bills, business expenses, etc.)
- Opening multiple accounts with a free, online bank to house your percentages. Use bankrate.com to find the best, free bank.
HH: How does an entrepreneur build credit wisely?
TA:An entrepreneur builds credit wisely by borrowing small amounts (if possible), then paying back creditors on time and in full.
HH: How can one build a business while paying off college loans?
TA:Sometimes building a business and paying off college loans don’t mix. I suggest applying for deferment for forbearance while you work toward getting your business up and running.
HH: Which books do you suggest reading to gain a better understanding of personal finances?
TA:
1) The Richest Man in Babylon by George Clason2) The One Week Budget by Tiffany “The Budgetnista” Aliche
3) The Automatic Millionaire by David Bach
Tiffany “The Budgetnista” Aliche is a speaker and passionate teacher of fun, financial empowerment. She is also the best selling author of the book, The One Week Budget (#1 Amazon / budgeting). Her company, The Budgetnista, specializes in the delivery of financial literacy education.
Tiffany is the financial literacy expert for City National Bank, and she and her financial advice have been featured on the TODAY show, Pix11 Morning News, News 12 New Jersey, ESSENCE Magazine, FORBES.com, The Star Ledger, Ebony Magazine, FoxBusiness.com, MSNBC.com, Redbook, CBS MoneyWatch.com, Black Enterprise, USA TODAY, VIBE.com, as well as numerous online publications. She also blogs about personal finance, for The Huffington Post.
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