Financial Lessons Learned the Hard Way

By Wanda Rosado Marrero

As a single mom living in New York City, I have learned a thing or two about conserving money. As with most good habits, it requires training and knowing your own limits. Herein, I share a little of what I have picked up along the way.

Start a savings account
And add to it every month– even if you only add $50 a month. It never fails: a rainy day comes and you need money for situations that pop up, like car repairs, utility bills, rent increases, a loss of a job, and so on. Try to save as much as you can, so when times get bad you have something to fall back on. Don’t go into debt to do this, but use a budget and see how much you can put aside each month and stick with it.

Stay out of debt!
Credit cards are a trap and can get out of hand quickly! If you have to use a credit card, keep track of what you’re charging and make sure you have the funds in the bank to cover. Paying the minimum amount on a card is only going to cost you more in the long run, because of interest. It’s better to keep your debt as low as possible and only use the credit cards in an emergency.

Communicate
If you have a partner taking this path of financial wellness with you, make sure you talk money issues with each other. Knowing that you’re on the same page with your financial goals is crucial. Whether you prefer to have your monies in a joint account or individual accounts, that is up to you, but you need to work together in order to keep the family budgeted and debt free. Save together and work for your future well-being.

Clip Coupons
It can’t hurt to save money on the things you were going to buy anyway, right? It just takes a little organization and time, but can save big bucks over a course of months. Be careful to only purchase items you use and don’t buy unnecessary items just because they are discounted.

Brown bag it
Bringing your own lunch to work or school can save you hundreds of dollars through the course of the year. If you drink coffee, make your own coffee before leaving the house. Look at it this way, if you spend $10 on food while out during the day, multiply that times 5 days a week. That’s $50 a week, $200 a month, $2400 a year!

Turn off the lights
This is not only good for your wallet, but for the environment, too. Conserving wasted energy conserves the dollars in your pocket.

Work with a professional
You don’t have to do it alone. Saving money or knowing how to make money off your savings is not common knowledge. Giving advice on investments is what a brokers and other financial experts get paid to do.

Research
You have to do your work in researching the best ways to put your money to work. When using a professional, there is a rule that every investment advisor needs to adhere to and that is “Know your client.” A good investment advisor will ask what your goals are and whether you can take risks. If you can afford to lose a little money, then you can invest in stocks or bonds that carry a good yield, but also are sensitive to market risk. The volatile ups and downs of the stock market is not for the weak of heart, and when you invest, you need to understand this.

You want safety? Look into less risky and more conservative investments like insured products, for instance. These products have insurance mixed in with the investment to protect either the income or the principal of the product. They still might have some risk because of the market.

Regardless, you really need to speak to the broker to see what can work for you. And yes, do your homework. Ask for brochures and any back-performance of the product you are considering. Remember, brokers work on commission or fees, so make them work hard for their paycheck!

Wanda Marrero

Wanda Rosado Marrero
Queens, New York
Born on her grandmother’s farm in La Pargara, Puerto Rico in 1956, Wanda then moved to Miami, Florida to join her father. Her family later moved to Brooklyn, New York. She has been educated in various public school curricula, academics, music, art, and business. Newly single and recently laid off from a Wall Street firm, Wanda is seeking to find her next step in life. She and her college-age son live in Queens, New York.