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Rap Wisdom: 4 Wealth-Building Tips We Can Use to Hustle Like Nipsey Hussle

by Finacial

As we approach the birthday of the legendary Nipsey Hussle on August 15th, it’s fitting to explore the financial wisdom he imparted through his music. Over the course of his career, Nipsey emphasized the significance of building wealth, leaving a legacy, and leveraging time. Here, we’ve pulled four powerful lyrics to illustrate his teachings and how they can be applied in our lives.

1. “Don’t Waste Your Time, It Don’t Make You Rich”

Maximize Your 24 Hours

Every individual is allotted the same 24 hours in a day, but it’s how we use these hours that defines our future. Nipsey highlighted the value of time, stating its worth surpasses even monetary riches. Consider the two shifts in your life: the 9-5 and the 5-9. While your 9-5 may cater to immediate needs, the hours after open a window to ventures that can lead to financial freedom. Side hustles, continued learning, or investments – the 5-9 is where dreams can become reality. Maximize it.

2. “Instead of trying to build a brick wall, lay a brick every day.”

The Power of Consistency

Building wealth isn’t a sprint; it’s a marathon, a sentiment Nipsey embodied both in life and in his lyrics. Instead of seeking immediate results, focus on consistent progress. Whether it’s saving a fixed amount each month, making steady investments, or methodically building a business, every little step adds up. Over time, those bricks you lay daily become a formidable fortress of financial stability. So, don’t be daunted by the magnitude of the end goal. Celebrate the daily wins and remember that progress always trumps perfection.

3. “Open trust accounts deposit racks… Million dollar insurance on my flesh…”

Smart Financial Planning

Trust accounts aren’t just for the super-rich. They offer a tool to manage, protect, and distribute your assets as per your wishes. Nipsey also emphasized the importance of life insurance, a powerful instrument to secure your loved ones’ future, even in your absence. Beyond just accumulating wealth, smart financial planning ensures your hard-earned money is protected, grows, and benefits those you care about.

4. “We playing the long game; we don’t want the money to stop when we go or when we can’t work no more. We want it to outlive us, we want it to be generational.”

The Vision of Generational Wealth

One of Nipsey’s most enduring messages is that of generational wealth. It’s not just about the here and now but ensuring that your prosperity impacts generations to come. This might involve investing in assets that appreciate over time, building businesses that can be passed down, or simply cultivating a financial mindset in the next generation. The dream isn’t just to live well but to ensure future generations thrive too.

In conclusion, Nipsey Hussle’s lyrics are a testament to his profound understanding of wealth and legacy. As we remember him, let’s also remember the financial lessons he shared and strive to integrate them into our lives. Building wealth, like life, is indeed a marathon – and every step counts.

For more wealth-building tips, sign-up for our newsletter and download the FOLA app.

What is a Roth IRA and How to Start?

by with No Comment Finacial

A Roth IRA is an individual retirement account that allows you to invest after-tax dollars that grow tax-free and can be withdrawn at age 59 and ½. Each year, the maximum contribution permitted in a Roth IRA account is $6,000. However, for investors age 50 and above, the maximum contribution allowed increases to $7,000.

Piggy bank with two eggs on top of bills.

The steps to begin investing in a Roth IRA consists of the following:

  1. Make sure you’re eligible – anyone who has earned income during the tax year is eligible to contribute to a Roth IRA; eligibility begins to phase out at $129,000 to $144,000 for single individuals and $204,000 to $214,000 for individuals who are married filing jointly
  2. Decide where to open your Roth IRA – consider fees to open or maintain an account, consider the customer service of the company you’re considering opening an account with, consider the cost to trade, etc
  3. Apply for your account – gather all of your basic information and apply for a Roth IRA account with the company you chose in step 2
  4. Begin investing – before you begin investing consider your goals for investing and choose what to invest in based on those goals
Woman on her phone with her laptop in front of her.

A Roth IRA account is a great tool to utilize when planning for your future. It allows you to take advantage of compound interest and have tax-free dollars to withdraw at retirement.

Most asset management companies offer a Roth IRA as an investment vehicle. Below are four asset management companies we recommend to start a Roth IRA with:

  1. Fidelity
  2. Charles Schwab
  3. Merrill
  4. J.P. Morgan
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Your Path to First-Time Homeownership: 4 Practical Steps for Success

by FinacialReal EstateReal Estate

Embarking on your journey to becoming a first-time homeowner is an exciting endeavor filled with anticipation and dreams of a place to call your own. As a beginner in the world of real estate, it’s crucial to have a clear roadmap to guide you towards success. In this blog, we’ll break down the process into four digestible steps, tailored to first-time homebuyers like yourself. Get ready to take charge of your homeownership journey and turn your dreams into reality!

Step 1: Cultivate the Right Mindset & Investment Strategy

Becoming a homeowner requires more than just finances—it starts with the right mindset and investment strategy. Begin by envisioning your goals and aligning them with your budget and lifestyle. Ask yourself questions like: What are your long-term plans? How does homeownership fit into your future? Research the local real estate market and identify areas that align with your investment strategy. By setting a clear direction from the start, you’ll lay the foundation for a successful homebuying experience.

Step 2: Secure the Bag – Financing Your Dream Home

With your mindset and investment strategy in place, it’s time to secure the bag—the financing for your dream home. Start by assessing your financial health, including your credit score, income, and debts. Explore various loan options available to first-time homebuyers, such as FHA loans or conventional mortgages with low down payment requirements. Consult with lenders, compare interest rates, and get pre-approved to determine your budget. Armed with a solid financing plan, you’ll be ready to make an offer confidently.

Step 3: Ensure Financial Readiness for Homeownership

Preparing for homeownership goes beyond the down payment and monthly mortgage payments. It’s important to consider additional financial responsibilities that come with owning a home. Create a comprehensive budget that accounts for property taxes, insurance, maintenance, and potential unexpected expenses. Build an emergency fund to handle unforeseen repairs or job loss. Educate yourself on homeownership costs and explore programs that offer assistance for first-time buyers. By being financially prepared, you’ll navigate homeownership with ease and confidence.

Step 4: Prepare for Closing – The Final Steps to Your New Home

As you approach the final stretch, it’s time to prepare for closing—the moment you’ve been working towards. This step involves thorough due diligence and attention to detail. Hire a qualified home inspector to assess the property’s condition, ensuring there are no hidden surprises. Review all documents carefully, including the purchase agreement and closing disclosure. Coordinate with your lender, real estate agent, and closing attorney to complete any necessary paperwork. Finally, schedule a final walkthrough to ensure everything is in order before signing on the dotted line. Celebrate as you officially become a homeowner!

Congratulations on taking the first steps towards homeownership! By following these four practical steps— cultivating the right mindset, securing financing, ensuring financial readiness, and preparing for closing—you’ll navigate the journey with confidence and clarity. Remember, this process is an exciting adventure, and each step brings you closer to the joy of owning your first home. Embrace the experience, seek guidance from professionals, and soon you’ll unlock the door to the home of your dreams.

Ready to secure your first home and be held accountable in achieving your financial goals? Join the FOLA Homeownership Challenge today and receive a free workbook to help you follow through and achieve your goals! Also, gain access to our Real In Real Estate course replay (valued at $294) when you fully complete the workbook and submit it to info@folafinanical.com. Click here to embark on this transformative journey, receive expert guidance, and connect with a supportive community of aspiring homeowners. Let’s make your dream home a reality together!

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How To Establish Business Credit

by with No Comment BusinessFinacialFinance & accountingUncategorized
Learn step-by-step how to establish business credit

When it comes to business credit, most business owners do not realize the benefits. One of the biggest benefits of business credit is that it is entirely separate from your personal credit. However, to be able to leverage the many advantages business credit has to offer, your business needs to have a solid foundation. A solid business foundation includes entity formation, bookkeeping, and an active business bank account.

The first step in building a solid business foundation begins with the formation of your entity. The most common entity types are Limited Liability Company (LLCs) and Corporations. When you first start your business, it is important to register your business, apply for an Employer Identification Number (EIN), and apply for a DUNS number. Your EIN is a number similar to your social security number. It is how the IRS identifies your business. Your DUNS number is how your business is identified with the credit reporting agency Dun and Bradstreet.

Another important step to take before applying for business credit is to set up proper bookkeeping for your business and open a business bank account that can be linked to your bookkeeping software. Having proper bookkeeping in place will make it easier for you to prove that your business has adequate cash flow. Similarly, a business bank account separates your business expenses from your personal expenses which to accurately prove profit and loss  

Next is to establish trade lines with your suppliers. If you buy supplies, ingredients or other materials from third-party vendors, those purchases could help build your business credit. Many suppliers extend trade credit, which means they allow you to pay several days or weeks after you receive the inventory. If you have this type of accounts-payable relationship, ask your supplier to report your payments to a business credit bureau. Your business credit score will get a boost as long as you stick to the terms of the trade agreement.

You need at least three tradelines to get a Dun & Bradstreet Paydex score, which measures past payment history. Even if you don’t work with a lot of suppliers, you can set up tradelines with any small vendor, such as your water or office supplies distributor. If those vendors don’t report to a credit bureau, you can list them as a trade reference on your account, and Dun & Bradstreet will follow up to collect your trade data.

A business credit card can be one of the best tools for building business credit. Additionally, many business credit cards offer benefits and rewards for your spend, from cash back to travel points.

If you have thin or poor personal credit, you may want to begin your card search by improving your personal credit score, since many card issuers will use your personal history to evaluate creditworthiness. If that isn’t possible, applying for a secured credit card will likely be your best choice.

While secured cards typically don’t offer rewards and may have a low ceiling for how much you can spend, they can still be valuable for contributing to your business credit profile. And some issuers will allow you to upgrade to an unsecured card if you can demonstrate a consistent pattern of responsible repayment.

In conclusion, having a good foundation for your business is the key to being granted business credit. Once given, you can then leverage your business credit to scale your business. If you need help building your business’s foundation, apply to become a client of Fola Financial!