Financial advice from “Bank of Mom & Dad” money coach
“Bank of Mom & Dad,” which airs at 9 p.m. Wednesdays on SoapNet, is an entertaining and information show.
Each episode, money coach Farnoosh Torabi helps the parents of a twenty-or-thirty-something woman drowning in dept. Farnoosh offers practical tips to help get finances in order and spending habits under control.
Here are a few of Farnoosh’s tips that can be applied to anyone’s budget:
Cash and Credit
•• Check your bank account every day, just as you’d step on a scale each morning to manage your weight. Knowing your financial weight will keep you from going overboard.
•• Credit cards make us feel richer than we are. Cash is king! Did you know paying with cash instead of credit can actually save you money in the long run? Credit experts say a cash diet saves you 20% a year because you literally can’t spend more than what you have.
•• Don’t O.D. on plastic… Two credit cards in your name are plenty. Opening up too many cards during a short period of time will generate more inquiries on your credit report and can dent your score.
•• Never lend money you cannot live without to friends and family. Otherwise, expect things to get awkward… fast.
Payroll
•• Automatically save 5-10% of your take-home pay (or net income) for a rainy day each month. Save up until you have at least six months’ of living expenses tucked away.
•• Diversify your income (just like your investments). Never bank on one job lasting forever. Find extra revenue streams through part-time and freelance work to support you in case you ever need more money.
•• Make sure your housing costs are not more than one third of your take-home pay.
Shopping
•• Before you spend, take pause and remember your goals. If you want to buy a house in a year – does a $300 pair of shoes really fit into the equation?
•• Always ask for a discount, even if you don’t see a “sale” sign! Don’t be shy. Haggling can save you a pretty penny, especially in a down economy.
•• Comparison shop to find a better-priced deal. Before making a purchase, search online and call around to seek lower prices.
College Students
•• Stay focused. Be conscious that more time in school means more money. Some advice – don’t fall behind on signing up for classes and try to decide your major within the first year of school.
•• Taking general courses your first year that will apply to all majors will help, too.
•• Use your library. We often forget the free benefits of our local library. A free membership gives you access to books, DVDs and periodicals for which you’d otherwise pay out-of-pocket.
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