Smart Money Moves with Anthony ONeal

CHARLOTTE, N.C. – Be smart with your money! We talked with financial expert, and host of “The Table” on YouTube, Anthony ONeal, about four financial tips you need to know before you’re 30 – but they can still help you even after then. Plus, you can check out Derek’s full, unedited interview below.

STAT: According to a new survey from GObankingrates, 80% of Americans reported that a lack of financial literacy has led to debt, overpriced loans and a reluctance to invest their money.

STAT: The survey also showed that one quarter of Americans didn’t feel comfortable with basic financial skills until the age of 30.

Learn how to budget

  • If you don’t tell your money where to go, you’ll wonder where it went. A budget is you telling your money what to do.
  • I recommend doing a monthly zero-based budget.
  • List out your income for the month minus your monthly expenses. That should equal zero. You’re putting every single dollar to work.
  • When you put this out in front of you, you’ll start to see areas where you can cut back on spending. Then you can put that money toward your financial goals.
  • A lot of people avoid budgeting because they feel like it limits their freedom. But your budget is simply you putting your financial goals into practice. How you spend your money should reflect what you care about.

Tackle your debt

  • Our culture teaches us that debt is a tool. But with the majority of Americans living paycheck to paycheck, that logic falls apart.
  • If you are carrying debt, prioritize paying that off. Debt will keep you paying for your past instead of focusing on your future.
  • Especially with interest rates increasing, it’s getting expensive to stay in debt.
  • I recommend working the debt snowball to pay off your debt. That’s where you list your debts smallest to largest, regardless of interest rate.
  • Attack the smallest one as hard as you can, make minimum payments on the rest. Then roll that to the next smallest debt.
  • You’ll build momentum that’s hard to stop.

Start saving

  • Set up an auto-draft on paydays to transfer money to your savings account. This way you’re not even tempted to spend that money.
  • I recommend having a separate savings account so you’re not tempted to pull money from it.
  • If you don’t have an emergency fund, a good rule of thumb is to save 3-6 months of expenses.
  • We know emergencies happen, and if you have no savings, you’ll be tempted to turn to debt which creates a vicious cycle.
  • Put your savings on autopilot and prioritize it.

Invest in your future

STAT: According to GOBankingrates survey, between 40-50% of every single age bracket, including people ages 18-65 and up, said a lack of financial literacy caused them to avoid investing.

  • I recommend investing 15% of your income into retirement.
  • If you’re working your way out of debt, that’s competing with your financial goals for your future. Focus on getting out of debt, so that you’re freed up to invest.
  • Once you get rid of your debt, reaching that 15% is much more attainable.
  • I recommend working with a financial advisor to help with your investments when you’re ready.