I was reading an article in USA Today that described how Hip-Hop artists held a summit in Houston, Texas. This group of singers, song writers and performers traded stories on losing money, saving money and how to spend money. Their audience was largely youth, but you would have thought you were in the middle of a financial planning conference. The only difference was the style of language and the amount of bling! 

Here are a few of my favorite tips that were given out: 

Bun B (started UGK): If you’re going to spend $30,000 on a diamond necklace, make sure it isn’t the only $30,000 you have.  

Monica: Stay away from credit cards. If you have to have one, keep only one and then keep it in your wallet! 

Solange Knowles: Write down what you really spend. I didn’t know what I really spent. But now I’m a new mother, so I set up a college fund for my son. 

Rev. Run: When I got my first check, I bought a house. If you think you can rent and it will prosper you, it won’t. Buy the cheapest house in an affluent neighborhood. Use your skills of decorating and refurbishing, and you gain equity. 

LeToya Luckett (original member of Destiny’s Child): Pay your tithe to whomever it may be to. Don’t worry about what the preacher’s going to do with the money. Is he gonna buy a new helicopter or a new car? Don’t worry about that…Do what God sent you here to do.” 

As I finished the article I bust out laughing. This is the same sort of advice I had heard over the years from financial advisors of different companies. It was great to hear it in plain English (I’m sure there are English professors who would argue that point) and listen to the stories of people who had made a few mistakes financially, like me, but managed to get their finances under control and become wealthy. Here they were, like me, trying to educate others about the basic principles of building and maintaining wealth.  

Some of these artists had learned their financial lessons the hard way and they didn’t want others to suffer similar fates. One singer strongly recommended that people check on their credit reports twice a year after losing $4,000 because a long time friend filled out a credit card application using his name. Identity theft is definitely on the increase. My husband had his social security number used by a woman in Arkansas a few years ago. We had recently moved and were trying to open a new account at the local bank. The bank refused our application due to this woman’s delinquency. It took only a few days to iron out the problem, but it was a mess all the same.  

The take home message from the Hip Hop Financial Summit was this: 

• Track your expenses-know where your money is going
• Put some money aside from every paycheck
• Give some of your money away to help others
• Obtain credit reports
• Buy houses wisely and then fix them up

These are the basic steps you need to start on to build your savings to a point where you can start investing either in homes or different types of funds. You don’t need much. Many funds will allow you to open an account with $2,500. Listen to these Hip-Hop Artists; they know exactly what they are talking about!