This is where your path to financial freedom begins...

Do you own a home, or do you want to buy a home someday? If so, it's essential to understand how your debt-to-income ratio can affect how much home you can afford. Understanding your debt-to-income ratio can prepare you to make changes to your current debt and future savings methods. It can also help you achieve the "American Dream" of homeownership. Why Does Debt-To-Income Ratio Matter? Your home can be your largest asset and your most significant investment. Understanding your debt-to-income ratio can ensure that you can afford to pay for a future mortgage and enable you to retain your investment. Evaluating your budget and looking at your current and future financial situation can help you determine how much debt you can afford and be comfortable with. Financial institutions will also use this same method when determining the loan amount you are eligible for. Understanding & Calculating Your Debt-To-Income Ratio What is Debt-To-Income Ratio? Your debt-to-income ratio evaluates how much you owe to creditors compared to your gross monthly income. You can calculate it by dividing all of your recurring monthly debt payments by your before-tax income. For example, if your total monthly debt is $1,000 and your monthly income is $4,000, your debt-to-income ratio will be 25%. Most experts recommend that a healthy ratio is below 35% but that no more than 40% should go towards all debt payments, including a mortgage. Consider this rule of thumb when evaluating your next large purchase. Calculate your DTI Ratio here . Do you find managing your finances challenging? Book a complimentary consultation to discover the benefits of financial counseling.

Reducing credit card debt could be as easy as changing some of your regular spending habits. For example, you could eliminate your coffee purchases on the way to work. Instead, you can use the company-provided coffee and save over $1,000 a year. What about bringing your lunch instead of buying it from the cafeteria or a fast-food restaurant? I'll be generous and estimate that you could save at least $2,000 a year by packing a lunch instead of eating out daily. I don't want to forget to mention that it's a lot healthier and can decrease your waistline as well. Reduce credit card debt and build wealth in 3 easy steps. Steps to Pay Off Your Credit Cards Evaluate your previous month's credit card bills and find purchases that you could have paid cash for. Make a rule to pay cash for any purchases under $20. Write down your rule and keep it in your car or on your desk at work as a reminder. Follow these three steps to achieve your credit goals and build wealth.Here's a great book that can help you on your credit journey. Your Score: An Insider's Secrets to Understanding, Controlling, and Protecting Your Credit Score (Ad) See How to Get an 800 Credit Score to see how my husband and I built and maintained our credit score.

HR is a constantly evolving field. Changes to federal and state laws can be complex and overwhelming. Networking with other HR professionals enables you to be aware of changes in the industry. More importantly, you can share resources and ideas with other senior professionals. The complexity of laws and workplace situations can become even more challenging if you are an HR department of one. Networking with other HR professionals can enhance your knowledge and ability to tackle any situation you are presented with. How Do You Connect With Other HR Professionals? You can connect with other HR professionals in forums, professional HR organizations, professional networking events, and on LinkedIn. Multiple HR forums enable HR professionals to ask questions and share their knowledge in their area of specialization. By joining local and national organizations such as the Society for Human Resources Management, WorldatWork, and other organizations, HR professionals will attend events and receive valuable information relevant to the industry. Finally, LinkedIn is also a valuable resource that readily allows you to connect and share information, resources, and potential job opportunities. See my reference in 4 Expert Tips for Networking With Other HR Professionals. How Do I Connect During A Pandemic? Connecting with other HR professionals has changed during the pandemic and forced many organizations to use virtual events and resources to share information. Currently and in the future, organizations are offering virtual and in-person options as a means of networking. Some of these events provide virtual meetups before the event begins to enable connectivity. In the past, HR events were only available in person. However, offering a hybrid training method in the future will increase HR professionals' ability to attend events in which valuable resources are shared. 4 Best Practices for Networking Attend professional networking events that are relevant to HR and connect in person with others; Become a valuable resource by contributing to HR forums; Create content and ask questions that lead to value-added conversations; Make genuine connections on LinkedIn and follow up with individuals to get more out of a mutually beneficial relationship. Whatever method of networking you use can enhance your net worth. Poet John Donne said, "No man is an island...every man is a piece of the continent." This means that we work better together, and your value and career will prosper through networking and learning from others.

How can you use tuition reimbursement to fund your college education and achieve your professional goals? Tuition reimbursement is when employers reimburse employees for education-related expenses they incur. Employers provide tuition reimbursement for employees to upskill in their current profession. Employees can complete degrees or start degrees that will enable them to enhance their existing workplace skills. Providing tuition reimbursement benefits employers because employees will use the skills learned and apply them to the workplace. How Does Tuition Reimbursement Work? When employees seek tuition reimbursement, they typically seek approval from their supervisor before enrolling in a college or course. You will be eligible to enroll in the class(es) when consent is received. Tuition reimbursement must be applied or benefit the employee's current profession. Electives are allowed if part of a degree program that applies to your career. In addition, you must take courses through an accredited institution for them to be eligible for reimbursement. 5 Ways to Get a College Degree With No Debt When Will I Be Reimbursed? Typically, you will pay for the course, receive a passing grade, and provide your transcript and invoice to your employer for reimbursement. Some schools allow employees eligible for tuition reimbursement to delay payment until after the course is completed. This way, the employee does not have to pay out of pocket. You must receive a passing grade in the class to receive tuition reimbursement. It does not benefit your employer if you do not pass the course. See my feature in Top 10 Things Every College Grad Should Know About Money How Long Do I Have to Work for My Employer? Some employers require employees to sign reciprocity agreements when applying for tuition reimbursement. These agreements vary by employer and can include a rating scale on what the employee would have to repay the employer if they exit the organization within a specific time. However, other employers do not require employees to continue working for them after course completion. Is Tuition Reimbursement Taxable? The IRS allows for non-taxable tuition reimbursement of up to $5,250 per calendar year. After the employee exceeds this limit, the tuition reimbursement is taxable and included in the employee's gross income. Do I Qualify for Other Financial Aid, or Need to Fill out the FAFSA? Yes. Employees can complete the FAFSA and apply for any grants or loans for which they are eligible. Grants received do not have to be repaid and can be used before using the employer's tuition reimbursement program. See my feature in Dear Graduate, Here's What To Know About Your Money How Do I Find Out More? Ask your employer for their tuition reimbursement policy and determine if there is a reciprocity agreement. You should also evaluate if an annual or semester course limit extends your service requirement to your employer if a reciprocity agreement applies. Looking for Companies That Offer Tuition Reimbursement? Google the company and see if its website mentions tuition reimbursement. If it doesn't, you can always call the human resources department and ask.

A side hustle can increase your income and enable you to use the knowledge and skills that you have built over a lifetime. If you work in a profession that can translate into an independent side hustle, not only can you enhance your skills, but it could also benefit you at work. Providing a service to others can also give you a source of internal satisfaction and increase your desire to gain more knowledge to improve your competitiveness in the market. 4 Ways to Increase Your Income with Side Hustles Advertise Your Skills on Fiverr Show Your Creative Side Using Canva Design Websites for Small-Business Owners Start a Blog Fiverr   Fiverr is one of the growing sites that provides gig opportunities to individuals with graphic design experience. Fiverr uses freelance designers located worldwide to provide low-cost marketing services to customers. More experienced designers can charge an increased rate for their services. If you have experience creating logos or websites or understand search engine optimization (SEO), Fiverr is constantly looking for sellers. The best part is that you can work with Fiverr from the comfort of your own home. Side Hustles Ideas Canva Canva is the entrepreneur's dream. With Canva, you can create social media posts across multiple platforms. Canva also has a content calendar where you can schedule your posts without leaving its site. Do you have experience creating carousel posts? It's not as easy as you think. If you are a wiz with social media and graphic design and have a creative eye, many small-business owners would be interested in your skills. See my feature in 10 Tools That Small Business Owners Should Have Web Design Do you work in a profession where you are required to maintain your employer's website? Or, do you have a small business and created and updated your own website? Hundreds of small business owners have not started a website out of a lack of know-how or fear. I have helped multiple non-profits like D.R.E.A.M. Financial Academy  create their website using free resources on the internet. The entrepreneurs that you work with may not know where to start. Providing this service using your knowledge, skills, and abilities can be done with no money and can help you earn between $500 - $1,000 per build. Blogging Writing is a great way to share your knowledge with the world. Picking a topic that you know a lot about can impact your audience. However, when blogging, you should first define your audience, choose a topic that you are passionate about, and ensure that it's a topic that people will be interested in reading. For example, not everyone will be interested in the different grass varieties available in Florida, but they may be interested in ways to eat healthier or manage their finances. So how do you make money blogging? You can increase your revenue stream by authorizing ads on your site through affiliate marketing and offering your business services and other digital products. Want to learn more about side hustles an becoming an entrepreneur? Check out my business formation course.

Holiday gift-giving is a time of joy, and the expression you see on someone's face when they open that perfect gift can confirm that you found the perfect gift. Gisele Bundchen stated that "Christmas and the holidays are the season of giving. It's a time when people are kinder and open-hearted." When searching for the perfect gift(s), keeping your budget in mind is also essential. Here are tips to keep your holiday budget on the right track. Top 4 Ways To Budget for the Holidays Set Spending Limits Plan Holiday Meals Budget Early Stick to Your Budget Set Price Ranges for Gift-Giving Budgeting for the holidays begins by estimating what you plan to spend for gifts, travel, and food. If you have children, budgeting for presents keeps your budget on track by designating what you will spend on each child. If you have a significant other, agreeing on gift purchase limits for each other can help ensure that one partner doesn't overspend. You can also preplan your travel by budgeting at least six months in advance and establishing a limit for flights, hotel fees, and even souvenirs. Your budget for the holidays will depend on the size of your family and network of friends. Here are some estimated price ranges that you can use: Gifts for family - $100-$200 Gifts for friends - $20 - $50 Holiday dinners for four - $150-300 Travel - $500 - $1,000 Holiday Decorations $100 - $500 See my feature in How to Budget for the Holidays. Meal Planning During the Holidays Food can be expensive around the holidays because you may spend more time at home cooking with the family. Establishing a menu and meal budget can help keep costs under control. Planning a potluck where everyone is responsible for one dish can help defray grocery shopping costs. Budget Early You can start budgeting for the holidays early to have money designated for any purchases or travel you or your family plan to do. Preplanning your budget reduces stress levels that tend to increase around holiday time. Most importantly, it reduces the need to pay for purchases using credit cards, which can charge excessive interest rates. Setting a budget for holiday dinners, gifts, travel, and even holiday decorations can ensure you keep your budget on track. Stick to Your Holiday Budget Once your holiday budget is set, stick to it. You can stick to your holiday budget by: Preplanning travel at least six months in advance Shopping around for cost-effective flights and hotel accommodations Establishing price limits for gift-giving Having a potluck dinner where everyone brings a dish Reusing holiday decorations Do you find managing your finances challenging? Book a complimentary consultation to discover the benefits of financial counseling.

Oh no! Your budget has taken a nosedive, and you don't know where it all went wrong. Trust me, many of us have been here and have not figured out where the money is at the end of the month. There are many reasons why this could happen to you. Here are some reasons why your budget didn't work this month and how you can get it back on track. How Eating Out Too Much is Costing You These costs come from not taking lunch to work and picking up dinner from a fast-food restaurant on the way home. Look at your bank account and see how much money you've spent eating out in a month. To save money, eat breakfast before leaving home and consider taking your lunch. Preparing your meals can reduce your eating out expenses by two-thirds. Tips to Save Money on Groceries How Your Utility Bill Could Cost You Hundreds You may be wasting money by not making repairs to your home. A running faucet or toilet can increase your utility bill. Leaving lights on when you leave a room also creates an added expense. Take an inventory of your home and identify needed home repairs that cause your utility expenses to increase. Remember to flip the switch when leaving a room. Not Having a Grocery List If you don't have a grocery list when you enter a store, this can lead to impulse shopping. You may not always remember what you need, so shopping every aisle to jog your memory can increase impulse buying. To combat impulse buying, create a grocery list before you leave your home. Having a grocery list eliminates the need to browse every aisle, and you can reduce your monthly grocery expense. You Have Too Many Cell Phone Subscriptions Cell phone subscriptions can add up. The click of a button on your phone can enroll you in a free trial. However, if you don't cancel that free trial or use the app on your phone, you could be wasting money. Evaluate your cell phone bill and determine if there are any apps that you pay a subscription fee. If you don't use them, cancel your subscription. Another way to decrease your cell phone expense is to cancel the subscription before the free trial ends. Canceling subscriptions allows you to use the app during the trial, and you are in control of the renewal. Do you find managing your finances challenging? Book a complimentary consultation to discover the benefits of financial counseling.

Your priorities in planning for retirement may change as you age. When planning for retirement, four things to consider are your income, home mortgage, future planning, and managing debt. Balancing your income, debt, and life's unexpected challenges as you age is essential to preparing for a financially secure retirement. Read on for four things you can do to prepare for retirement. 4 Ways To Plan For Retirement Find Your Retirement Number Evaluate Your Mortgage Plan in Advance Manage Your Debt in Retirement How to Find Your Retirement Number Knowing how much income you will need for retirement can help you keep track of your goals. When calculating your retirement number, consider the age you claim social security, any retirement contributions, your current salary, and the age that you want to retire. In a recent MoneyRates article, I discussed that "To maintain a resemblance of your current financial situation, plan to have 80% of your current annual income. If you will be retired for 30 years and earn $80,000 annually, your retirement savings goal would be $1,920,000." Calculate your retirement number on NerdWallet. Your priorities of planning for retirement may change as you age. When planning for retirement, four things to consider are your income, your home, planning for the future, and managing debt. Balancing your income, debt, and life's unexpected challenges as you age is essential to preparing for a financially secure retirement. Considering Your Mortgage in Retirement Your home and whether or not you have a mortgage is a significant factor in making retirement decisions. When preparing for retirement, you should consider whether your mortgage will be paid off or if you are interested in a reverse mortgage. Reverse mortgages are confusing and risky, so considering all of your options is essential. Whatever you decide, your home and the equity you have built over the years can be a financial safety net. What's a Reverse Mortgage? Planning for Your Retirement Future One of the financial concerns of retired people nearing retirement is medical care. As we age, we tend to require more medical attention. To prepare for medical concerns, evaluate the medical plans offered by your employer after retirement. Preparing should also include considering long-term care insurance. Many people may need long-term care insurance, but those who are more likely to need it are individuals with chronic illness or disability, older persons, women, and people living alone. Managing Debt in Retirement Planning for retirement at an early age enables you to keep your retirement plans on track. Paying off your mortgage early, carefully considering refinancing opportunities, and estimating your income and expenses throughout your life can keep your debt in check. Completing annual checkups on your retirement savings and income can prepare you for a financially secure retirement. Retirement savings and income can prepare you for a financially secure retirement. Do you need assistance with planning for your future retirement? Let's work together to see how you can achieve your retirement goals.

Recent high school graduates face many challenges when planning to enter college. One of these challenges is determining how to manage their finances when applying for financial assistance. Creating and maintaining a budget can allow for the successful management of an individual's finances while in college. Budgeting can help reduce the stressors of academic life and enable them to achieve their financial goals. Budgets are specific to everyone. Here are some tips for recent graduates to prepare for college. 3 Financial Planning Strategies for College Borrow Smart Pay on Your Loans while in College Establish a Budget How to Borrow Smart for College When borrowing money for financial aid, it's essential to understand the difference between federal and private loans. Federal loans have a lower fixed interest rate and have better repayment terms than private loans. These can include your Stafford, Perkins, and Direct Plus loans. Alternatively, private loans may have higher interest rates that are variable and are based on your credit history. These loans may not offer repayment assistance and can require a cosigner, like a parent. If loans are needed, only accept the minimum amount required. See my feature in Dear Graduate, Here’s What to Know About Your Money Pay on Student Loans While Enrolled If you have additional funds available while in college, pay the interest as you are enrolled. Paying the interest will reduce your future monthly payments when you graduate or enter the repayment period. Understanding loan repayment options, when payments are due, and where to send your payments can prepare you to start reducing the balance on your loan. In addition, developing a budget while in college will allow you to pay, at the minimum, the interest on your loan and help you save towards future financial goals during and after graduation. Establish a College Budget In 5 Money Lessons for New College Graduates, I discussed ways new college graduates could begin budgeting and saving. Here are some more valuable tips. Establish a budget when the first paycheck is received. Set up automatic savings deposits through payroll deduction. Pay more than the minimum on student loans and credit card payments. Pay off credit card balances in full monthly. Use a debit card to pay for purchases under $100. See Back to School Budget Planner to find additional ways to save. Using these valuable tips and suggestions can create a successful money management roadmap.

When saving for retirement, each generation has challenges and advantages. Challenges young adults face are student loan debt, lower income levels, childcare expenses, homeownership expenses, and a lack of financial knowledge. These factors can decrease the funds available to set aside for retirement. These expenses are also current and need to be paid immediately, which leads to retirement savings being less of a priority. Generation X are mid-life individuals who are nearing retirement in a few short years. To eliminate income inequity in retirement, it's essential to start planning now. How Millennials Can Plan for Retirement Younger adults should focus on increasing their financial knowledge to secure their financial future. It’s common for younger adults to graduate college, gain employment, and not understand the benefits offered by their employers. Inquiring about retirement plan options, evaluating plan documents, and the risks and benefits of the funds within the plan should be a top priority. Understanding these factors can help make sure that you are educated on the benefits available to you. Finally, taking advantage of the employer matching options at the beginning of your career can help you build a secure retirement. The matching contributions in retirement plans are free money and beneficial to growing a retirement fund. See my feature in Top 10 Things Every College Grad Should Know About Money. How Generation X Can Plan for Retirement Individuals in their 40s are nearing the age of retirement in a few short years. During this time, you should attempt to boost your retirement savings. You can accomplish this by maximizing the retirement contributions offered by your employer. If you receive an annual pay increase, adding another percentage to your contributions could be used to make sure you build a financially secure retirement. The most significant factor is to take advantage of the employer’s matching contributions. If your employer matches the first six percent of retirement contributions, take advantage of the free money offered to you. Saving For Retirement: Tips to eliminate retirement income inequity Eliminating Your Mortgage for Retirement Individuals in their 40s should focus on debt elimination. Most people in their 40s have children who are no longer in daycare and tend to have steady income increases. If either of these is the case, you can start focusing on reducing or eliminating their mortgage payment. Tips to Eliminate Your Mortgage in Retirement: Evaluate your monthly income and expenses. Determine where a surplus can be applied to the principal of your mortgage. Pay an extra dollar amount to the principal of your mortgage. These steps will allow you to cut your monthly interest payment and knock years off a 30-year mortgage. See my feature in Money Advice for Your 40s in Accredited Debt Relief

Saving for retirement may not seem like a priority when you are young. When college students graduate, they tend to be ready to conquer the world, but are they ready? Not possessing adequate financial knowledge about preparing for retirement after college can lead to a failure to invest in a secure retirement plan. Before starting a job after college, millennials should educate themselves on the barriers to retirement and ways to be financially ready to retire. Learning from Your Retirement Planning Mistakes Most millennials in their 30s have had adequate time to prepare and learn from the mistakes of not investing in their retirement early. Not investing early has caused some millennials in their 30s to have to catch up and recover from not investing in their 20s. Still, it will allow them to have a significant financial cushion in place at retirement age. However, 20% of younger millennials in their 20’s may not have adequate funds for retirement. Younger millennials want to chart their path in life. They may not follow the traditional method of staying in one profession throughout their lifetime and do not seem to value loyalty to a specific employer, nor do they want to commit to one career for the long term. This method of professional employment may not enable them to become “vested” into an organization’s retirement plan or increase their income level consistently due to “job hopping” and constant career changes. See Millennials May not be Retiring Soon—But They are Already Planning for it. Barriers to Retirement One of the most significant barriers preventing millennials from being financially ready to retire is employers shifting from pension plans to defined contribution plans or 401(k)’s. The shift to defined contribution and 401(k) plans compels an individual to remain with a company long enough to become vested in a retirement plan. Ultimately, not contributing to a voluntary retirement plan offered by employers is like throwing money down the proverbial drain and can lead to reduced funding availability in an individual’s retirement years. How much are you going to need for retirement? Steps to Prepare for Retirement To be financially ready to retire, millennials should take the following steps: Educate themselves on the retirement plan offered by their employer (vesting, funds, and fees). Invest a percentage that takes advantage of the employer contribution match. If you are self-employed, seek out a retirement plan contribution option. Evaluate their monthly income and expenses to determine where to find more cost savings to invest in retirement. See my feature in Top 10 Things Every College Grad Should Know About Money Preparing for your retirement in your 20s is the best way to maximize the benefits offered by your employer. Take advantage of the offerings as soon as possible and continue to increase your contributions as your financial situation changes. It’s never too late to invest in yourself.

Have you ever looked at your bank statement and realized that you earned a whopping one dollar in interest from your bank? Or are you charged ATM fees, overdraft fees, or fees for not having $500 in your checking account? These fees might signal that it's time to reevaluate who you bank with. I switched my banking institution when I realized that I was receiving minimal benefits from the funds in my savings account. As a result, I researched other banks and the savings account benefits. Investigating multiple banks allowed me to compare the pluses and minuses of each institution's offerings. Typically, the bank is not giving you money, but you give the bank your money to hold, protect, and ultimately increase it. See How one simple decision could save you $750 a year. Reasons People Look for New Banks There are other reasons you may be considering a new bank: The bank does not align with your financial goals The bank does not have a local branch in your area Customer service and financial guidance is non-existent Finding a bank you are comfortable with and have easy access to via the internet or locally can create a sense of solace when protecting and growing your money. How to Find a Better Bank When looking for a better bank, you should evaluate the fees associated with the account you are trying to open and if the bank can grow with you as your financial situation changes. See my feature in 10 Steps to Finding A Better Bank Following are some recommended questions to ask: Is a direct deposit required? Are there ATM fees, and if so, do you offer ATM rebates monthly? Is a savings account required to have a checking account? Is a minimum balance required to open and maintain the account without fees? How Banks Actually Make Money Did you realize that if you are required to keep a minimum balance of $500 in your account, you may be charged fees that penalize you for not having the available funds? Understanding the minimum balances required and any other benefits the bank offers can create an informed banking relationship. Finding Optional Banking Products The basic checking and savings account is what most consumers start with. However, when looking for a good bank, you should evaluate other investment products available at the bank. For example, does the bank only offer basic checking and savings, or does it offer products like Certificates of Deposit or high-yield savings accounts? Banks that provide expanded options can guide you as your financial situation changes and eliminate the need to switch banks in the future.