January 16, 2014
A Millionaire’s Mindset at 18 yrs. old
“Alize” Young in age, but wise in years!
Alize is an 18 year old who was raised predominately by a single mother that was nearly drowning in debt stemming from a double income household. Eventually the two income household became one; however the debt became her responsibility. Alize says that her mother decided to get out of debt and within three years she was debt free. Our conversation began with a question; what is your view of an emergency fund? The young 18 year old lit up and said that it is very important to have one so that when something unexpected happens the money is there. She shared that her mother is her inspiration and taught her the importance of having an emergency of at least $500.00 and her mother has at least $1000.00 for her emergency fund. Alize said soon after funding her emergency fund, she had car trouble and the money was there for the repairs. Alize credits her mother for teaching her to save for a rainy day that will come.
I was inspired by Alize’s wisdom and understanding of the importance of cultivating positive behaviors regarding her money. She says that her mother encouraged everyone in their household to save a dollar a day, placing it in a jar. The culture of debt freedom is being shared with Alize’s friends and she is the stronger influence, refusing to spend all of her earnings on consumables and entertainment. Alize aspires to build her credit and we discussed ways that can be accomplished and still maintain control of her spending. Most of you have heard this, but again there are at least two things I advised Alize to do; 1) Apply for a share secured loan using her own funds or 2) Apply for a visa card using her own funds as collateral. Contact your credit union or bank and inquire about these options. While there are other types of loans available, these will serve the same purpose of building credit, however create less risk. Credit cards are not bad, it is the misuse of them and that is when it becomes a financial disaster for some.
Alize is a millionaire in the making, she has developed great behaviors at a very young age and is not afraid to work. She is vibrant, intelligent, wise, positive, open-minded, a leader and will succeed at whatever she decides to do in life. Way to go Alize! You are off to a great start and thank you for sharing your story. Find a great financial adviser that can show you how to invest your money so that you will be able to live well now and retire well later in your golden years.
Please leave a comment and share with us how you are creating a debt free culture in your household and community. What are your thoughts on this subject?
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