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

What are your retirement goals? Have you considered what your retirement future will look like 10, 20, or 30 years from now? If not, it's never too early to start planning for it. Imagine that your retirement will be a world of new adventures and experiences to keep you active and in the game. Here are a few tips to prepare for your financial wellness in retirement. Your Path to Retirement Planning 1. Envision Your Retirement Envisioning your retirement can consist of imagining and writing down how you will enjoy your retirement future. Will you spend time with friends and family? Will you take up a new craft that you've been interested in for years? Will you travel or spend time at home gardening? Whatever you will be interested in, keeping a log of the top five things that you will accomplish in retirement will help you enjoy your first day and beyond. You won't have to punch a clock any longer, so this will be your time to enjoy your 365-day annual weekends. See my feature in the Retirement Planning Guide. 2. Manage Your Cash Flow When you retire, you may be on a fixed income, and the annual increases you may be used to receiving will stop. So, it's essential to manage your cash flow in retirement. If you are 40 today, the Social Security Administration has found that you may live to be at least 90. If you are looking to retire at 65, you will spend about 25 years in retirement. That's why managing your fixed and variable expenses can help ensure you have enough money in retirement. Your fixed expenses can consist of your food, mortgage, utilities, and healthcare. Your variable expenses can consist of vacations, hobbies, gifts, and charitable giving. Identify now what expenses you may have in retirement and the expected costs of each. Three Ways To Plan For Retirement 3. Will You Need To Replace Your Health Insurance? What do you do about health insurance if you are eligible for Medicare? You may have to obtain coverage through your spouse's employer, find an individual health insurance policy, or enroll in COBRA. An article by Fidelity has found that a 65-year old retired couple could spend up to $285,000 on health care expenses in retirement. It's essential to identify now what benefits you can enroll in when you decide to retire and how you can become eligible. For example, some employers require that you be enrolled in their healthcare plan before retirement to maintain your eligibility to stay on their plan. 4. Determine The Income You Will Need Once you envision your retirement and identify the fixed and variable expenses, you can determine how much you will need. A couple of factors to consider are: Your retirement age and your life expectancy Your eligibility for Social Security benefits and the age you will elect them The amount of all of your retirement income sources The rate of inflation in your retirement years Income tax rates Your healthcare needs or the needs of your significant other or dependents See my feature in How To Make Yourself a Retirement Millionaire. 5. Identify Your Income Sources Where will your income come from in retirement, and how much will it be? You may be eligible for social security benefits at the time of your retirement in addition to your retirement income. Will you be eligible to withdraw funds from an IRA, 401(k), company-funded defined benefit plan, with or without tax consequences at retirement? Are other benefits available such as a military retirement or disability income? And how much money do you have in savings? Identifying your retirement income sources and the tax consequences can help you determine which sources to use first. 6. Develop a Financial Support Team On your journey to preparing for financial wellness in retirement, it's vital to develop a trusted financial team to help you successfully navigate your retirement. A financial professional can help answer any questions relating to your financial wellness and help you create a household budget, and recommend strategies for your retirement income. A tax advisor can guide you in choosing the best options for collecting your retirement income and any tax implications of your financial decisions. In addition, an estate attorney can help you develop estate planning strategies for your heirs. Whether you value tranquility, adventure, culture, or community in retirement, coming up with a plan today can help guide your decisions in retirement and beyond. So, catch up on that needed R&R, hike the trails, travel, or volunteer the 10,000-plus days of your retirement away with a secure financial plan in mind. Do you need assistance with planning for your future retirement? Let's work together to see how you can achieve your retirement goals.

It's a new year, and I have new goals. Resolutions are fleeting, so I dumped those a long time ago. In the words of Tony Robbins, "Setting goals is the first step in turning the invisible into the visible." You want your goals to be visible, and writing them down and tracking them using the SMART method can help you achieve them. You can accomplish your goals by budgeting your income and keeping an accurate record of your weekly and monthly expenses using a budget tracker. Zero-Based Budgeting Using the zero-based budgeting approach, I account for every dollar of income and expenses at the beginning of each month to ensure that every dollar has a purpose. For example, when my paycheck was deposited on December 31st, I ensured that my savings, monthly expenses, investments, and other incidentals were accounted for until my budget reached $0. Creating a budget helps ensure that I don't overspend and guides me in achieving my goals faster. Income & Expenses At the beginning of every month, I use an Excel spreadsheet to track my income. My husband and I have a separate account for household bills and groceries, and we both deposit a portion of our income into our joint account to cover the costs. Every six months, we have conversations to review our expenses and adjust our deposits as needed for changes to our monthly expenses. We also have a joint savings account and separate savings accounts for our individual goals. This helps keep the peace in my household. Calculating My Budget Here's an example of how I distribute my monthly income and expenses: Household Expenses = 15% Utilities, Charity, Tithes, Groceries Joint Savings = 27% Vacation, Home Improvements, Emergency Fund Individual Savings = 18% For Gifts, Treating Myself, and Future Goals Investments = 29% Stocks, Retirement, Wealth Fund Miscellaneous = 10% Gas, Hair Salon, Starbucks! Individual Life Insurance = 1% See my feature in 5 Money Lessons For New College Graduates. What Happens Next? I create a new budget for the next month and continue the cycle. Using a zero-based budget enables me to achieve future goals for myself and my family. We can also pay cash for our vacations and any needed repairs or upgrades to our home. The end goal is that we want to remain debt-free, financially independent, and live life as we see fit.

Over the years, I have been teaching my children how to manage their finances. With this comes questions, and I may not always have the answers. This is common when parents teach their children about finances because we think they should know the answers or the questions have never come up in our personal lives. My youngest daughter continually asks questions about investing, credit, and budgeting. Here are a few of the questions. When Did You Start Investing? My daughter began investing when she was 14, and I have encouraged other family members to start investing for their children even earlier than that. I started investing in my twenties. This combination of investments included savings bonds, certificates of deposits (CDs), and retirement accounts. At that time, I was focused on saving instead of building my wealth using stocks, money market accounts, or ETFs. Now, I invest heavily in these investment vehicles and have started dabbling in cryptocurrency. Whether you started in your teens, twenties, or thirties, it's never too late to begin investing. It's essential to know your risk tolerance when it comes to investing. This is one reason why I delayed the riskier investments. I didn't feel comfortable risking my hard-earned income when I still had kids at home and other financial obligations that were a priority. If you don't know your risk tolerance, talk to a trusted advisor and your partner, so you're all on the same page when making financial decisions. See my feature in How To Make Yourself A Retirement Millionaire. How Often Do You Pay Your Credit Card? I added my children as authorized users on my credit card to get experience managing credit and building their credit scores simultaneously. When you add an authorized user to your credit card, their purchasing and payment activity can affect your credit and theirs. As a result, I had a conversation with my children to let them know that it's essential to stay aware of their credit card balances. This included knowing credit card due dates and knowing when interest would be charged on their purchases. So, I encourage them to pay their credit card balances at least semi-monthly to avoid any late fees or interest. See my feature in 9 Secrets Habits of People With Credit Scores Above 800. How Often Do You Balance Your Checking Account? The answer to this question depends on my purchase activity for the month. I balance my checking account at least twice a month. Balancing my budget semi-monthly helps me ensure that all paycheck deposits, automatic transfers, bills, and regular monthly expenses are accounted for. It also helps me keep my spending in control. If I notice that I'm spending more on groceries than the previous month, I work to find different ways to stretch our meals or cut back on other spending categories. See my feature in Conversations To Have Once Your Teen Starts Earning Money. Getting Comfortable With Questions Whatever the questions are, it's okay to be uncomfortable at first. As I mentioned, I don't always have the answers, and you may not either. But after a while, you will find that it gets easier to answer the questions and share information with your teens. If you don't know the answer, let them know that and find the answer together. Finding the answers together can encourage your teen to continue the money conversation and prepare them for making financial decisions on their own.

I am sure you've heard the phrase that 'nothing is certain but taxes and death.' There are many types of taxes that individuals must pay that consist of federal, state, payroll, self-employment taxes, and more. Taxes paid fund schools, roads, the government, and many other things. So, why do we pay taxes, and which ones apply to you? Here are four types of taxes that you need to know. As an Advertiser, this post may contain affiliate links to E-file. Federal & State Income Taxes You may see federal income tax deducted from your gross pay if you work for an employer. When you completed your W-4, you would have selected the allowances or adjustments you wanted to withhold from your paycheck. You can adjust these withholdings throughout the year if you think too much or too little tax is deducted from your gross pay. State income tax is also deducted from your gross pay like federal income tax. There are seven states with no payroll income tax. Many fixed-income retirees live in states with minimal to no state tax requirements. You can E-File a State Tax Return using E-file. If you qualify for their Basic Software, you could also qualify to file your federal taxes for free See my feature on Yahoo, where I discuss how to manage your tax refund. Self-Employment Taxes If you own a business, you may be subject to the self-employment tax. If you operate your business consistently and its sole purpose is profit, this tax may apply to you. Depending on the type of business you establish, you may be able to file a Schedule C with your tax return, or you may have to file a business tax return. Property Taxes If you own property such as a home, you will have to pay annual property taxes on the home's value. These taxes are collected by the city where you live, and tax rates can differ based on the value of your property. Some states allow property tax exemptions for specific individuals. For example, Florida offers a $5,000 property tax exemption for eligible disabled veterans. If you are a 100% permanent and total disabled veteran in Florida, you can apply for a complete property tax exemption. However, eligible residents must still pay specific non-ad valorem assessments. Sales Taxes Whenever you make a purchase in-store or online, you may see that you must pay tax on your items. Sales tax can apply to groceries, furniture, vehicles, travel, clothes, and any other things you can consider. Some states may charge a sales tax on food items, and others may not. Many states offer a tax-free holiday during the beginning of the school year as a way for families to save money on their purchases. Not only is this beneficial to the consumer, but it can also increase sales for business owners. See my feature in the Back-to-School Budget Planner to see how you can take advantage of your state's tax-free shopping.

As a parent, you can teach your child how to budget by having conversations about income, spending, and saving every day. Even the most minor thing can be a positive discussion about money habits. Having a family money conversation with your children at an early age can motivate them to learn more. You can accomplish this by starting with age-appropriate discussions to boost your child's financial literacy and yours too. Here are a couple of tips on how you can get the conversation started. Budgeting For Groceries One of the most significant expenses as a parent is the grocery budget. Your family can save money by planning meals together. You can accomplish this by inventorying your freezer and pantry items to determine what groceries you need for the week or month. Keep a few staples such as dry goods, beans, pasta, and canned vegetables stocked in your pantry. These are fillers in the meal and have a long shelf life. Keep a stock of proteins, frozen vegetables, and prepared oven meals in your freezer. Planning meals as a family and in advance allows you to reduce your grocery budget and teaches your children grocery shopping habits. It can also eliminate the need to stop at fast-food restaurants on the way home from work. Helping Children Set Money-Saving Goals Teaching your children about money, budgeting, and saving for goals can help them build a solid financial future. When my husband and I have conversations about money, we bring the children to the table to encourage them to talk about money and goal planning. Teaching your children to save funds they receive from an allowance, holidays, or birthdays for a goal they have set for themselves creates an invaluable teaching moment. Their savings goal could be to purchase a toy, a new dress, or books. When they finally make the purchase, children tend to value the item that much more. See my feature in Conversations To Have Once Your Teen Starts Earning Money . Helping Children Track Expenses Once your child sets a goal, teaching them how to track their expenses is essential. Your child can track deposits, interest, and purchases using a check register, Excel spreadsheet, or budgeting app. Tracking their flow of income can help them realize how money flows and encourage them to save for short-term and long-term goals. It can also show them the result of spending their hard-earned savings and guide their future spending. Talking with Your Children About Credit Does your child know what happens when you swipe your credit card? They may or may not know that you have to pay for purchases after using your credit card. Teaching your child how credit works is essential when teaching them how to budget. Whether for furniture or grocery purchases, it is vital to show them that you must repay all purchases. Have a conversation with your child to show them how you repay your credit card purchases and the result of any interest you may pay for carrying a balance on your credit card. Ultimately, it can reduce any credit card debt they incur as adults.

Building your resume can sometimes feel like an art form. You should include the required items on your resume, like your job title, dates of employment, and your job accomplishments for each role. However, there are also items that you should leave off of your resume to avoid various types of discrimination. The following are standard items that you may include on your resume that can subject you to bias and how you can prevent it. This post contains affiliate links and I will be compensated if you make a purchase after clicking on my links. Don't Put Your Address on Your Resume Including your address on your resume lets the potential employer know that you are near their physical office. Adding your address can be advantageous if the employer is looking for someone who does not require relocation expenses or looking for a remote opportunity. However, this can lead to zip code discrimination. Zip code discrimination occurs when there is bias based on where you live in a specific city. To avoid bias based on your location when crafting your resume, you can enter the city and state in which you live. If you are selected to move forward, you can provide more detailed information as needed. Remove Your Graduation Dates from Your Resume If you're a recent college grad or have had your degree for 20-plus years, this can show employers that you are someone who continues their education or is experienced in your field. Many employers look for recent college graduates because they can hire them at a lower salary due to their inexperience in their field. On the other hand, if you graduated 20 years ago and your graduation date on your resume could lead to age discrimination. Recruiters or hiring managers may be able to calculate your age based on when you graduated from high school or college, which can cause you to be passed over for that sought-after opportunity. The solution is to enter the degree you received and the college you received it from without your graduation date. Advertiser Disclosure See my feature in 8 Things to Do After Being Laid Off. Edit a Lengthy Employment History When applying for an opportunity, you want to show the employer why you're the best candidate for the job. Displaying that you are the best candidate may mean that you want to include all of your relevant experience on your application. Right? The answer is sometimes no to this situation if it may lead to age discrimination. If you are applying for entry-level or management-level positions, the past 30 years of your work history may not be needed. It's essential to include your most recent and relevant work history in your resume and keep it to, at the most, two pages in length. See how to Organize Your Job Job Search. Remove Photos, Headshots, and Selfies from Your Resume You will rarely include your photo on your resume, but it may be required for some professions. If you are submitting a curriculum vitae or are looking for employment in the medical field, these are two instances in which a photo may be required. Presuming that you are not entering the medical or teaching industry, you should leave your picture off your resume. Most employers will pass over resumes with photos to avoid any potential discrimination or unconscious bias. A best practice is to use your headshot for your LinkedIn profile or website. After you've updated your resume, you need to ensure that you are prepared for the interview. Here are a couple of tips from me and other HR professionals on how you can prepare to land your next career. Advertiser Disclosure

Debt can take many forms, including payments due on auto loans, credit cards, mortgages, payday loans, student loans, and even borrowing from retirement accounts. Debt management may seem like a chore, but keeping track of what you owe can help you build a solid financial future and eliminate future financial stressors. Read on to discover the four most common types of debt. Managing Your Credit Cards It's no surprise that credit cards top this list. You may see credit card offers on television, in your mailbox, and even in your emails. It's essential to monitor your credit card usage to ensure you use it responsibly and not for every purchase you need to make. A good habit is to pay cash for any purchases under $20. See my feature in 10 Signs Your Spending is Out of Control. Finding the Best Auto Loan For most individuals, transportation is a need. You need it to get to work, go grocery shopping, and ensure that you have a reliable means of transportation. As a result, you may require an auto loan if you don't have the cash on hand to pay for your new or used car in full. To control your auto loan debt, it is essential to consider the loan's total cost and evaluate your loan options. If you are a member of a credit union, you may be able to get a better deal than the dealership is offering. Understanding Mortgage Loans Mortgages typically last between 15 and 30 years. This debt never seems to go away. However, you can reduce the time you have to pay for a mortgage by paying more toward the principal. I lowered my 30-year mortgage to eight and a half years by adding additional payments toward the principal every month. This method saved my family over $140,000 in interest. 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) How to Fund Your College Education Providing that you want to increase your income or move on to the next step in your career, you may need to take out a student loan. However, other options can help you avoid student loan debt. You can find scholarships or grants and use employer tuition reimbursement to fund your education. If you still require a student loan, federal student loans are preferred over private student loans. Federal student loans give you a better interest rate, and loan forgiveness may be available if you work in public service for ten years.

The ushering in of the new year enables you to start afresh with your future goals. It gives you time to reflect on your past and current plans and give them new life. If you set your financial goals for the year, did you accomplish them or make progress? If you did, congratulations! If you did not, that's okay too. Here are five financial goals that can guide you in building wealth and securing your financial future. How to Set a Budget and Stick to It Setting a budget for your expenses, savings, and future goals can help you keep your budget on track. Determining what you will spend on groceries, personal care, entertainment, and even gifts can help ensure that you don't overspend in those categories. It's essential to keep track of your budget using a notebook, Excel, or a banking app to ensure you know how much you're earning, spending, and saving every month. Keeping track of your income, expenses, and savings will enable you to make adjustments to your budget. Pay Down Your Debt Reducing your debt can save you money in the long run. You save money by reducing the fees and interest that you are paying for your purchases. Here are three ways that you can reduce your credit card debt. Start an Emergency Fund You can't always predict when emergencies will occur, but you can plan for them. While establishing your budget, you can create a separate account to save for emergencies. Building an emergency fund for unexpected expenses can eliminate the need to use credit or loans to cover the cost of home repairs or your medical needs. A popular rule of thumb is to set aside at least three to six months of your monthly expenses in an emergency fund. Plan For Retirement The earlier you start to plan for retirement, the better. Setting a goal to begin your first paycheck of the year with an adjusted retirement savings rate can reduce your taxable income. Pretax contributions to a 401(k) or 403(b) can be made automatically through your employer using a payroll deduction. Your retirement savings will occur before your regular pay enters your checking account! If you've already started planning for retirement, continue building your retirement by maximizing the employer match. It's free money. After maximizing the employer match, contribute additional income to prevent future debt later in life. See my feature in MoneyRates: Retirement Planning Guide Improve Your Financial Literacy You are one step closer to improving your financial literacy if you've read this far. Expand your financial knowledge by  reading financial books like The Psychology of Money and discussing your financial situation with a trusted resource. Having conversations about money can bring up financial options that you have not considered when managing your money. There are also many YouTube videos and other free resources that can guide you in building wealth and securing a solid financial future. Need additional financial insights? Feel free to reach out to me for a one-on-one  consultation .

Buy now, pay later (BNPL) is prevalent in today's consumer market. Buying now and paying later enables you to purchase economical or big-ticket items without using your credit. The advantage is that you don't pay interest on things you would typically buy using a credit card or loan. It's best to consider other key factors when evaluating whether buying now and paying later fits into your budget. Let's review some key points to examine below. Is Buy Now, Pay Later Interest-Free? Using BNPL, you can finally purchase items without being charged interest. BNPL enables you to pay for the item's actual value and can help you keep your budget intact. Typically, you would pay between 12% to 25% interest on your overall purchases when using a credit card. Estimating what you are paying for an item can be challenging if you do not pay your balances off monthly. BNPL eliminates the guesswork. How Affordable is Using Buy Now, Pay Later Sometimes it may be challenging to purchase items that are not in your budget. Using the BNPL model, you may feel that you can now afford purchases that you have been delaying for months or years. These items could include furniture, appliances, clothing, or even groceries. During the holiday season, prices increase, and using BNPL could be an excellent opportunity to enjoy this time of year. See Top 4 Ways To Budget For The Holidays Do You Need a Credit Credit Check Or Approval for BNPL? BNPL does not require a credit check or pre-approval. When you enter a store or shop online, you can select BNPL without it affecting your credit. This means that it will not show up on your credit report as an inquiry. If you want to make a home purchase soon, the BNPL model is advantageous because your debt-to-income ratio and credit are examined closely during this time. Can I use BNPL If My Credit Cards are Maxed Out? Is your credit card maxed out? If so, BNPL can provide you with another method to afford your future purchases. However, if your credit cards are at the maximum, this may be a sign that you should reduce your spending and start paying down your debt. BNPL may be enticing because you don't have to pay the balance right away, but it can encourage you to make additional purchases that you can't currently afford. Are there Penalties or Late Fees for BNPL? There are penalties for not abiding by the agreements set in the BNPL model. It's essential to ensure that you pay the installments or the total balance of your purchase so that additional fees are not added to your total amount due. These fees are similar to what you would be charged if you paid for your credit card, utilities, or cell phone bill after the due date. So, try not to overextend your budget and keep track of when your bills are due by enrolling in automatic reminders. Overspending BNPL can encourage overspending. It's essential to know your limits when using BNPL. BNPL is a tool, and you should use it in moderation. Evaluate your priorities, future goals, and budget to determine if you need to purchase the items in your cart. Conducting a self-assessment of your financial roadmap can help ensure that you control your financial situation.

Financial technology can be accessed from anywhere. You can access financial technology from home, work, and even while you're on vacation. Leveraging financial technology can help you achieve your banking and savings goals. Opting in for financial alerts can be accomplished by logging in to your financial institution's websites and setting up alerts specific to your financial goals. Here are five ways that you can take advantage of fintech. Setting up Low Balance Alerts Opting in for low balance alerts lets you know when your checking account balance reaches a certain level. This notification will help you cover any expenses or purchases that you plan to make. You will also be able to reduce your spending so that your balance does not decrease further. Some banks will charge you fees for not maintaining the minimum required balance. Reducing your spending can eliminate insufficient fund fees that can continue to drain your bank account balance. Opting in for Monthly Statement Notifications Getting notified that your statement is ready can trigger you to log into your account to view your income and expenses for the month. Reviewing your credit card statements will give you a breakdown of your purchases, interests, and any fees you were charged for the month. Being aware of your monthly income and expenses can help you find ways to save or cut back on your spending. Verification Of Deposits And Withdrawals You can sign up for text alerts on your phone when deposits or withdrawals are made on your account. Being notified of deposits informs you that your paycheck has been deposited and the amount. In addition, if you are looking for a transfer from someone else, you can be notified when it has made it to your account. Getting notified of withdrawals from your account triggers you to check and ensure that any withdrawals are legitimate. Payment Due Notifications Opting in for notifications that your payment is due is very beneficial. Payment due notifications can help ensure that you don't miss payments for your utilities, credit card, mortgage, or other loan balances. It can also eliminate any fees or interests that may be charged because of late payments. If your bank does not offer financial technology, you should see my feature in 10 Steps to Finding a Better Bank to recognize how you can make the best of your banking needs. Fraud Alerts Opting in for fraud alerts is essential. Fraud alerts can notify you of suspicious activity that occurs on your accounts. Getting notified of fraudulent activity on your checking account is highly advantageous because you have 60 days to report the activity or risk losing your refund. In addition, if there's fraudulent activity on your checking account, it's essential to stop that as soon as it happens because it takes time for the banks to do their investigation, up to 45 days. During that time, you may risk missing your mortgage, car, or utility payments. These missed payments and fraudulent activity can affect your credit and your credit score. What other ways can financial technology help you achieve your financial goals? Leave a comment below.

Making changes to a few of your daily habits can help fix your budget and create a stress-free financial future. There are benefits to creating a spending plan and setting goals for the future. A couple of advantages are less stress around financial uncertainty, increased funds for emergencies, and even the ability to travel by paying cash for vacations. Let's take a closer look at how you can control your financial future, identify financial priorities, and increase your income. As an Amazon Associate, I earn from qualifying purchases. 10 Money Habits to Help You Take Control of Your Finances Identify Your Income and Expenses Define Your Goals Create a Spending Plan Start an Emergency Fund Use a Monthly Budget Planner Pay Your Credit Card Bill Monthly Cook More Meals at Home Plan Your Grocery Shopping Avoid Unnecessary Spending Start a Side Hustle 1. Identify Your Income And Expenses Write down your income and expenses. Your income can come from multiple sources, especially if you are a business owner or consultant. When creating a budget, use income from steady sources, like a paycheck, disability payments, or pensions. Your monthly expenses could include your rent or mortgage, insurance, car loans, gas, utilities, groceries, and more. 2. Define Your Goals After you have identified the surplus income that you have, you can create your financial goals. Goals can be short-term, mid-term, or long-term. If you are single, establish your goals and identify someone who can keep you accountable for achieving them. If you have a significant other, you can plan your goals together. Some couples also find it easy to have individual savings goals as well. 3. Create A Spending Plan A spending plan can be specific to you. There are two rules of thumb that some individuals use. The first is the 50/30/20 rule of thumb. The second is the 70/20/10 rule of thumb. For example, 50% of your income will go toward your needs, 30% toward your wants, and 20% toward your savings. The key is to set a spending plan, stick to it, and make any necessary adjustments as needed. 4. Start An Emergency Fund For the most part, emergencies are unpredictable. Creating an emergency fund for unexpected expenses can reduce the need to use your credit card for emergency events. A good rule of thumb is to set aside three to six months of your monthly income in an emergency fund. 5. Use A Monthly Budget Planner Use a weekly or monthly budget planner to keep track of your income and expenses. This will help you identify the money coming in and the money going out on a steady basis. A budget planner also helps you keep your spending under control and can guide you in adjusting your budget due to fluctuations. 6. Pay Your Credit Card Bill Monthly 7. Cook More Meals At Home Cooking at home is cheaper than eating out at a restaurant. Changing your habit and cooking at least one extra meal a day at home can save you at least $300 a month. Involving your significant other or children in meal planning can help ensure commitment from everyone. 8. Plan Your Grocery Shopping And Meals Planning your grocery shopping can reduce the time that you are in the grocery store. It can also eliminate the need to go down every aisle looking for what you need. Creating a list before leaving home can get you in and out of the store quickly. You can even involve your children in meal planning to develop more creative ideas for family mealtime. To further control spending, schedule your grocery pickup online using an app. Online scheduling can reduce impulse buying that results from browsing the aisles or shopping while you're hungry. 9. Avoid Spending Unnecessarily Avoid making purchases when you are bored or when your emotions are running high. Shopping from boredom can cause you to make purchases that you don't really need. Shopping from sadness, anger, and even happiness can cause you to make purchases that you may end up regretting later. One tip to avoid unnecessary spending is to walk away from your online shopping cart and see if you still want to make the purchase the following day. 10. Start A Side Hustle If your income does not cover your monthly expenses, try and find other creative ways to save. If that doesn't work, you can start a side hustle to increase your income. Most side hustles consist of skills or knowledge that you already possess. So, starting a side hustle can be a seamless transition to taking charge of your financial future and enhance the skills you already have. For more tips and tricks on how to control your finances, schedule a consultation today to learn how a financial workout plan can help.

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.