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Yappin With Yari - Blog
Dealing with finances shouldn’t be a hard thing to do, right? Wrong. Just like many people my age, it’s been a STRUGGLE.
Hello everyone––I’m Yari, a 1st Gen girl from the city of Azusa, CA. I graduated from Gladstone High School then made the trek up north to Cal State East Bay in Northern California, where I pursued my Bachelors in Marketing. Go Pioneers!
I’m now back at Azusa and enthusiastically working here at Foothill. Working at credit unions made me realize how misguided and misinformed I was when it came to my finances. So, I thought there has to be others out there with the same sentiment.
I created “Yappin with Yari” to help inform and educate my generation about smart money management, the way I see it.
Watch the videos, read the articles, and let me know what you think...
Busting Down Credit Union Myths
Twentysomethings are known to live an expensive lifestyle, let me tell you something, we will not let FOMO – the “Fear of Missing Out” - get in the way of our finances! Now don’t get me wrong guys, I’m all about living life to the fullest. However, this doesn’t mean we don’t take care of business when it comes to saving.
I know saving when you’re in your 20’s can be the last thing on your mind (trust me, I know), but in reality it should be a top priority. We have so many goals, aspirations and plans, it starts to become overwhelming at times we don’t know where to start. No worries though, I’m here to help! I’ve got some tips and tricks to help you start saving towards those goals of yours.
- All About Me! – Automate your savings! The easiest way to ensure you actually save is to pay yourself first! Check with your employer to see if they allow you to make payroll deductions; where you can choose a certain amount to come out of your paycheck each time you get paid, to go to an account of your choice. If not, you can always set this up as an automatic transfer on your online banking!
- I like it, I want it, I got it – Set Goals! By having a specific reason/amount to save, it makes it much easier and realistic. Best practice is to set them by time; Short term, mid-term and long term goals. Whether it’s your emergency fund, a car or your future house having a time limit will help you reach that goal faster. Since you have a specific reason to save for, you will have something at the end where you can “reward” yourself, making saving a rewarding feeling!
- Fat Stacks Take Time to Build – Save for retirement! I know it may seem like a LONG time from now, but trust me you will thank yourself later. The fact that you’re younger makes it easier for you to be more aggressive since you don’t have as much debt or asset obligations. Fortunately, many employers help out by offering a 401K. Take advantage of this, since the money taken out of your paycheck is before taxes – most employers offer a matching percentage for employees enrolled in the 401K – AKA free money in your pocket! If your employer does not offer a 401K plan, you can always take advantage of opening an IRA savings account!
- Let it grow, let it grow – Take advantage of compound interest! If you know your money is going to be sitting there for quite some time, you definitely want to put it in a savings account that has compound interest. Compound interest is when you earn interest on top of the dividends posted, basically you’re making more money faster.
- Living at home be like… – Underspend on rent! We are KNOWN to be the generation that decides to live with their parents in order to save. If you do decide to move out, you want to make sure you underspend on your rent. Your rent payments should be kept below 30% of your income. This can be hard, especially here in California, but a great way to keep it under 30% is to have roommates. You’ll have the freedom/privacy you want while maintaining your rent payment low.
- “Nah, I’m good” – Know your needs vs wants! This may seem like a small tip, but it’s actually really important for you to differentiate your needs and wants. An example of this is when you’re buying a car. You need a reliable car, but do you really need the more expensive model or will the base model complete your need for a car? This will save you more money than you think, leaving you with some change you can put aside for those goals!
- Ballin' on a Budget – Be a smart Shopper! You don’t have to buy the most popular brand when it comes to shopping for products. Most of the time buying the stores generic brand, is the smarter way to go since they usually are cheaper. If you’re obsessed with coffee like me, sometimes we just have to settle for 7/11 $1.69 ice coffee (which is bomb btw). Remember a little can go a long way when it comes to saving!
I know some of these may seem easy, but temptation is everywhere! These are a couple of tips and tricks you should take into consideration when trying to figure things out in your 20’s. Do you have any advice for the Twentysomethings out there? LET ME KNOW! You can email me here.
I always hear how Millennial's SUCK at managing their money. After reading an article from an Australian economist stating how Millennial's can't afford a home because we are spending way too much on avocado toast and coffee. Well I am here to prove him wrong by teaching you how you can enjoy your coffee and avocado toast while still saving for that big move!
4 Things You Should Know About Credit
Let’s be real, talking about your credit score can be a huge headache at times – “do this,” “don’t do that,” “that is going to hurt your score.” I can literally write a whole essay on how credit works and how it can affect your everyday and future decisions, however we all know no one has time for that. Now, I didn’t realize how big of an effect my credit score would have until I graduated high school, and went off to college.
First things first, what on Earth is credit? Basically, it’s a score that tells lenders how responsible and trustworthy you are when it comes to lending you money. Your credit score helps determine the level of risk a lender is willing to take when letting you borrow from them. The higher your score, the lower the “risk”. Get me?
Now that we got that out of the way, here are 4 things you should probably know about your credit.
- You technically have more than 1 credit score –Yup, you read that right. See, there are three credit bureaus; Equifax, Experian and Transunion. These bureaus calculate your credit score using five factors; payment history, inquiries, types of credit, length of credit, and credit usage. Depending on which bureau the lender reports to, will result in your credit score. So don’t freak out if different lenders give you a different credit score when shopping around for a loan, they probably use a different Bureau.
You might have also heard of something called a FICO score. Your FICO score is the average of your three scores from each bureau.
- Your score affects the interest rate you receive – Want to buy a car for the first time? Maybe a house one day? How about a credit card? Well, you better pay attention to your credit score or else you can be spending a lot of money. Remember the interest rate is the percentage of money you will be paying to the lender in addition to the amount you borrowed, less is better. Normally the higher your score the lower your interest, and vice versa.
Don’t freak out guys, when you are just starting to build your credit it is totally normal to have a lower credit score and a higher interest rate. The longer you have credit, and manage it responsibly, the better your score will get.
- It can affect more than just your interest rate –Did you know some employers check your credit report?! Whoa! Since your credit report technically tells people how “responsible” and “trustworthy” you are, it can help employers make a decision on hiring you.
If that doesn’t seem like a big deal, when I was in college my friends and I were trying to find an apartment together. We found the perfect apartment (right across the street from campus!) but little did any of us know, they needed to check our credit report before us signing a lease. Luckily our parents were nice enough to help us out with their credit, since we didn’t have any established.
- Get a free copy of your credit report –Did you just say FREE!? Yep. You can get a copy of your credit report for free annually from each of the 3 credit bureaus. Unfortunately, to see your actual credit SCORE, they might charge you, but all you have to do is go onto www.annualcreditreport.com, enter you information and BAM you’ll get your report in minutes!
Remember, it’s a necessity for you to look at your credit report to ensure there is no fraud and that all loans/inquiries were made by you. If you suspect any fraud, you can dispute it with the credit bureaus you got the report from
Not that bad right? Knowing these things will hopefully help you make better decisions when it comes to dealing with your credit. Obviously credit has a big impact on you, the more you know about it, the better! Best of luck you guys!
Do you have any advice for the Twentysomethings out there? LET ME KNOW! You can email me here.