Unlock Your Financial Future: 21 Savage’s Powerful Money Tips for Broke People
In the accompanying video, rapper 21 Savage cuts through the noise with direct, no-nonsense personal finance advice aimed squarely at those looking to improve their financial standing. His journey from humble beginnings to significant wealth empowers countless individuals, demonstrating that financial success is achievable for anyone willing to learn and apply fundamental principles. These actionable money tips are designed to guide you toward a more secure financial future, even if you feel like you’re starting from scratch.
From Two-Bedroom Apartment to Bank Account: 21 Savage’s Journey
21 Savage’s credibility in offering financial advice stems deeply from his personal experience. He vividly recalls growing up with six other family members in a two-bedroom apartment until he was fifteen, often lacking school clothes and basic comforts. This upbringing instilled in him a profound understanding of scarcity and the desire to build a better life.
His story serves as a powerful testament: “y’all can do it too.” This isn’t just about accumulating wealth; it’s about breaking cycles, celebrating personal victories, and, crucially, learning to manage money wisely when you finally have it. After his hit single “Bank Account” soared, 21 Savage took his message beyond music, launching a campaign that donated $1,000 to 21 teens, specifically to educate them on personal finance.
1. Master Your Money Flow: The Power of Budgeting
The first foundational step to financial empowerment, as 21 Savage advises, is to “write down how much you make and what you have to spend, necessities.” This simple act is the cornerstone of effective personal finance. You gain clarity on your financial situation when you understand exactly where your money comes from and where it goes.
Beginners can easily implement this by tracking their income for the month and then listing all their essential expenses. These “necessities” typically include rent or mortgage payments, utility bills, phone service, transportation, and groceries. Distinguishing between fixed expenses (like rent) and variable expenses (like food, which can fluctuate) helps you identify areas where you might adjust your spending. This process creates a basic budget, a vital tool for taking control of your financial resources and stopping money from slipping through your fingers unnoticed.
2. Fuel Your Growth: Focus on Making More Money
21 Savage’s second powerful tip challenges a common misconception: “whatever you do, don’t focus on your money, focus on making more money.” Many people mistakenly believe that once they reach a certain income level, they can relax. However, true financial growth often comes from a relentless pursuit of increasing your earning potential, not just managing what you have.
This mindset encourages continuous “hustling” and exploring new income streams. Consider developing new skills, taking on a side gig, or negotiating for a higher salary in your current role. The goal is to avoid complacency and consistently look for opportunities to expand your financial capacity. Actively seeking to generate more income creates a robust financial foundation, ensuring you’re always progressing toward your financial goals rather than standing still.
3. Future-Proof Your Finances: Investing for Passive Income
The third crucial piece of advice from 21 Savage revolves around making your money work for you. He urges, “make sure you got something to where your money is gonna make money for you.” This concept is known as passive income or investing, and it’s essential for long-term wealth building and eventually enjoying financial freedom in your “late 30s, early 40s.”
Passive income means generating earnings without actively trading your time for money. Investing is one of the most effective ways to achieve this. For beginners, investing doesn’t have to be complicated. Simple options might include high-yield savings accounts, Certificates of Deposit (CDs), or low-cost index funds and ETFs that track the broader market. The key is to start early, even with small amounts, to harness the power of compounding interest, where your initial investment and its earnings generate further earnings over time. This strategy ensures that your money grows quietly in the background, providing a cushion and opportunities for future enjoyment.
Navigating Investment Choices: A Beginner’s Lens
The video also showcases 21 Savage’s impromptu investment game with $21, offering a fun, simplified look at diverse asset classes. While a real investment strategy requires more than $21, his choices highlight key considerations for beginners.
Understanding Different Sectors
When given options like Uber, Lyft, or NYC Cab, his choice to split between Uber and Lyft reflects an understanding of market leaders in a growing sector. For a beginner, this translates to researching companies or industries you understand and believe have future potential. Similarly, the choice between Oil, Gold, and Bitcoin illustrates a mix of traditional assets and emerging technologies.
- Oil: Represents a fundamental commodity always in demand, often seen as a stable, long-term investment.
- Gold: Often considered a safe-haven asset, holding its value during economic uncertainty, though not typically a high-growth investment.
- Bitcoin: A volatile but potentially high-growth digital asset, appealing to those willing to take on more risk for higher reward.
His decision to invest in Medicaid over other options underscores the concept of impact investing – aligning your investments with your values, even if it’s a small symbolic amount. While you wouldn’t typically “invest” in government programs directly as a retail investor, this highlights a broader principle of supporting what you believe in, whether through ethical companies or social impact funds.
Investing in Yourself
Perhaps one of the most insightful moments came when presented with Chipotle, Taco Bell, or Qdoba, and 21 Savage declared, “I would just open up my own restaurant.” This highlights a crucial investment principle: investing in yourself. Developing entrepreneurial skills, learning new trades, or furthering your education can often provide the highest returns. Creating your own business or income stream directly leverages your skills and passion, offering a level of control and potential for financial growth that passive investments alone cannot.
These money tips for broke people, straight from 21 Savage, are more than just advice; they are a blueprint for taking control of your financial destiny. By diligently budgeting, relentlessly seeking to increase your income, and wisely investing for the future, you can build a strong foundation for lasting financial success.
