You’ve nurtured your child for over 18 years, aiming to prepare them for a successful life. Now they’re ready to fly solo—finding a place to live, a car to drive, and a way to earn a living.
Reflecting on our youth, perhaps you faced similar struggles: mine was the old clunker (’80 Mercury Zephyr), long hours, and that less-than-ideal apartment (complete with unwelcome roaches). But we persevered.
Back then, the financial strategy was simple: keep the bank account above zero. When we wanted something expensive, we took the advice to get a credit card. It seemed harmless—”building credit,” they said. But that’s where the debt cycle began. Monthly payments became the norm for cars, houses, and other desires. And by our late 30s, stress and nonexistent savings were constant companions.
Then came enlightenment: zero-based budgets, living within our means, and eliminating debt. Within a decade, we were debt-free and building substantial savings.
Now, here’s the twist, and I know it might be unpopular but: Never advise young adults to get a credit card just to build credit. It’s one of the worst pieces of guidance. Instead, teach them zero-based budgeting and the art of paying cash for everything. And if they need to buy a house? Manual underwriting—where banks assess qualifications beyond credit scores—can be the answer. Credit scores are not required for life!
Imagine if you’d received this advice at 18. Your wealth might have soared. So, pass it on: cash is king, and debt needn’t be a rite of passage. 🌟💰
Feel free to ask if you’d like more insights or have other questions! 😊
