Understanding credit is a basic element of financial literacy. It’s very important to understand how it works because if used properly, it can help you; if neglected and allowed to erode, if can cost you missed opportunities and on several hundreds of thousands more over a lifetime.

When building credit, you have to first start by getting credit. Sometimes it comes to you via unsolicited credit card offers, and sometimes it’s not so easy to figure out. Many times, it needs to be built from nothing, primarily because lenders are hesitant to offer credit to someone with no credit history. No worries, though, because you can start with a secured credit card, which uses your money deposit as collateral for the credit.

I often joke tongue-in-cheek with my attorney wife that I can’t make her do anything, all I can do is “offer good counsel”. I’m offering the same advice to all millennials who care to take note. Trust me, as the father of four intelligent 20-somethings, I have a great appreciation for the millennial mind. They demand more freedoms and often challenge the “status quo” of how things have always been done. They want to know why. They aren’t shy about speaking up for their beliefs and taking charge. From observing many millennials, I’ve noticed they often have a desire to help others and fulfill inspiring missions, and their life goals may not necessarily align with those of the generations before them.

My perspective is largely based on the things I’ve learned from 34 years of professional finance experience, along with trial and error from the school of hard knocks. I would love having middle-aged sage/seasoned James to counsel 30-year-old newly married James who was trying to figure things out. I qualify that by saying, through it all I’ve been abundantly blessed. However, for those not seeking to take the long way, my debt payoff strategy will make your life better.