We were all speechless and left in complete shock when the passing of Prince was announced. With little to no indication that anything was wrong and him having recently successful tour stops in every city, he visited, his death was not expected at all. The shock continued when we all learned that Prince, who is reportedly worth over $300 million dollars, died without a will! Then a few weeks later Snoop Dogg announces that he also does not have a will and does not care what happens to his money after he is gone (but he also has a wife and kids, therefore they will get it all!)

This prompted many conversations about what happens to your money and belongings when you are gone and who in fact does need a will? I mean if these multi-millionaires are walking around without wills, what should us thousandaires do?

Here is the lowdown on what happens when you don’t have a will and how to determine if you need one:

Without financial will the state decides who gets your money.

No will, no say. That’s pretty much what it balls down to. Without having a will in place and you do not have a spouse or children, you are giving the state the right to say what happens to your money and belongings. In Prince’s case, since he did not have a spouse or any living children. His sister requested to open probate, which is the process to begin divvying up Prince’s things. She requested to become the administrator of his estate and named herself and Prince’s other half-sibling beneficiaries. Some of which he has not spoken to in years. Once this process begins they will split up his current assets and will also be in line for any further earnings….so basically they are all set financially, even the ones he did not talk to (we will never know if this was his wishes or not).

Without financial will there will be no control over everything you worked for.

Some people say that having a will is like being in control from the grave. This is not of interest to some, however, others would like to have some say as to what happens to the wealth that you have worked your entire life to accumulate. When you don’t have a will in place you give up complete control of your assets.

Without financial will your estate will pay more in taxes.

When a loved one passes away, there is an inheritance tax that needs to be paid on any money and/or property that is inherited. When you do not have a will in place, this tax can be higher, thus leaving your loved ones with less of an inheritance as each individual is taxed separately. If you have a spouse, in most states your spouse is exempt from this tax, this exemption can also apply to your children and other dependents as well.

So, back to the big question. Do you need a will? I think everyone should have a will as it makes things easier on your loved ones and you can be sure that everything you worked for is left to the way you want.

If you do not have a will and are ready to get one, download the free will-prep checklist and you can have a will done for less $80 with LegalZoom. Trust me, it’s better to have something than nothing.

While in Charlotte at FinCon 2015 (basically a conference for financial blogger and finance geeks, which I am one of). I was interviewed by Experian! In this interview I chat about how my “dream job” turned out to be a major disappointment and how I used this to launch my own business and discover my passion in my 20’s.

During the interview, there was an amazing artist drawing the key points that I was making which turned into this dope image below. Experian also gifted the image to me once the interview was over. I was beyond excited until I realized that this drawing was huge, about 3 feet all and I had to scramble to find a way to ship it back home since I could not take it on the plane (that’s another story).

Nonetheless, it was great to sit down and chat with the awesome people at Experian.  You can check out the full podcast interview here.

@experian gave me the BEST gift after my podcast interview! All of my key points were illustrated! Thanks so much! Wish I could carry it on the plane! @fedex here I come! #fincon15 #financesdemystified #domosays

A photo posted by Dominique Broadway (@dominiquebroadway) on Sep 19, 2015 at 3:32pm PDT

Getting your first paycheck can be a really exciting time! It can also be a really confusing time. If you received a paper check for your first pay day, you may be thrown off by all the abbreviations and deductions. If you received your pay via direct deposit, you’re probably seeing less money that you expected. Your pay stub is packed with important financial and tax information you may not know how to interpret but don’t panic! We’ve got you covered.

Pay Period

This is especially important for hourly employees. The pay period is the number of days for which a regular, hourly employee gets paid. Salaried employees will receive the same pay irregardless of hours and days worked. Pay periods vary by employers but will likely be weekly, bi-weekly, monthly or twice per month on specific days (i.e. the 1st and 15th). Make sure that all your hours and days are accounted for in this period.

Gross Wages vs. Net Pay

This is the part that breaks many hearts. Gross wages is that number you look at on every paycheck and think, “Wow, I never even got to see you.” Your gross wages are your pre-deduction compensation. For example, if you make $18.00 per hour and work a standard 40 hour work week, then your weekly gross wages are $720.00. Chances are Uncle Sam takes about 20 percent of that and with your other deductions, you’re probably left with about $575-495 as your net pay or take-home pay. Depressing isn’t it?

THE DEDUCTIONS

Federal Income Tax

Yes, the federal government always gets a piece of the pie. There’s no way around this, so the first step is acceptance. How much money is withheld for federal tax varies. It depends on how much you earn and how you filled out your W-4 (Employee’s Withholding Allowance Certificate). Depending on your family size, if your married or single, you may claim allowances for yourself, spouse and dependents. Every allowance taken results in less money being withheld for federal taxes (more money on your check). Take fewer allowances and a larger amount will be taken for your federal taxes. As always, you have a chance of getting that money back when you do your taxes at the beginning of the year.

State Tax

You may or may not have to pay state income tax, depending on the state in which you reside. There are seven states with no income tax and two that only tax dividend and interest income. If you reside in one of these states, count yourself lucky. 

Medicare

You will be required, along with every working American, to contribute to Medicare. Medicare is an insurance plan that provides medical benefits to citizens age 65 and older and for people under that age with certain disabilities. You will be putting in 1.5 percent of your gross wages from each check.

Insurance

If you chose an insurance plan (medical, dental, or life) through your employer, monthly premiums for these will be deducted directly from your pay. Ensure that you understand the cost of each and how they will be deducted before signing.

Retirement

If you’re smart and already started your retirement savings plan, such as a 401(k) (learn more here), then you’ll have this deducted from your gross pay as well. Typically, when signing up for your 401(k), you select a percentage your of your pre-tax income or a set amount to contribute to your retirement account. The amount chosen, will be deducted from each check and deposited into your savings account.

Social Security

The government requires that working citizens contribute 6.2 percent of their gross income into the Social Security fund. The Social Security fund is a supplemental retirement program that provides benefits to Social Security recipients.

That all probably sounded daunting but don’t worry, there are ways to manage your income (after deductions) and still live comfortably. Need help managing your money and figuring out how to make your take-home pay work for you? Set up a Discovery Call today!

You made it through four years (or four and a victory lap for some of us) for this very moment. You received your first paycheck from that grown up job you’ve dreamed of! But before that first check ever touched your hands, you should have taken care of a few things first. You remember that stack of papers you skimmed through and signed on your first day of work? Somewhere in there should have been a benefits package and that package is possibly the most important stack of documents you’ll receive at work. Here’s what you’ll want to look for:

Benefit Package #1 – 401(k) 

Yes. The name alone sounds boring. You’ve probably heard your parents bring it up at some point. You know, that thing that has to do with retirement. That’s a long way off huh? Not as far as you think! Your 401(k) is a savings account that is going to allow you to not have to work for the rest of your days, so pay close attention to it. Retirement is expensive and inflation is always happening. You’ll need at least a couple mil to rest on your laurels after age 65. Your investments will grow, so the earlier you begin contributing to your 401(k) the better!

Benefit Package #2 – Company Match

Many employers have a 401(k) match program. This means, whatever you contribute to your 401(k) each year, they will duplicate that investment. So, if you have no idea how much you should put into your 401(k), start by putting in the minimum required to receive your company’s match. If you can swing it, try to match their max contribution. So, if they will only match up to $1,500 per year, ideally, you’d like to contribute at least $1,500 per year so you can get the max benefit available.

Benefit Package #3 – Flexible Savings Account (FSA)

With your health insurance, you may be offered a Flexible Savings Account option. This account is for health expenses, such as doctors copays, specialty treatments, and prescriptions. The great thing about your Flexible Spending Account is that the money is taken from your paycheck tax-free. There is one draw back! FSA is a use it or lose it account. So if you don’t use the money you put in, you don’t get to withdraw it. To bypass this, you’ll want to speak with your employer to see if a Health Savings Account (HSA) is available.

Benefit Package # – Discounts!

Many companies have savings plans with other vendors that they only disclose once a year. Ask the appropriate department about local discounts, i.e. coffee shops, gyms, grocers, floral shops, etc. Some medium-size and larger companies have discounts with wireless and cable providers, insurance companies, and more! Be sure you’re taking advantage of all that’s available. Get every bit of savings you can!

Understanding the ins and outs of all your benefits for the first time can be difficult. Don’t be afraid to utilize your HR department for assistance. If you don’t feel comfortable talking to a stranger about your finances, income and savings plans, your parents, older siblings and friends have all been through it too. They are an excellent source of knowledge. Want to discuss your future and develop a retirement plan that works for your income and your lifestyle? Contact Dominique to today!

Tax time to some, can mean a large bill from the IRS, for others it can be the boost in cash that will jumpstart your finances for the year. The tax refund is also often said to be a gift from the government, however you are actually receiving back excess money that you paid to them. Now the big question is how do you truly take advantage of this influx of cash that will be arriving? It is very common that people will begin to plan how they are going to spend their tax return as soon as the new year begins, then when the tax return actually arrives, all of the money is allocated out and it never really feels like you received any extra cash that month. Here are five ways to spend your tax return wisely and use it to move you one step closer to reaching your financial goals:

Jumpstart Your Emergency Fund To Avoid Blowing Your Tax Refund

Applying your tax refund to your emergency fund, is one of the easiest and most fulfilling ways to use your return. Being that cash is king, as many say, it always fulfilling to look in your bank account and see a nice amount of cash available in the event of an emergency. Using your funds to pay down credit card debt is equally as important, however the amount of available credit can always be reduced, so in the event of any emergency it is always better to have access to your own funds.

Pay Down Debt To Avoid Blowing Your Tax Refund

Using your tax refund to pay down some of your existing debt can help to relieve tons of financial stress. Debt such as high interest credit cards tend to eat away at your monthly cash flow, so the sooner you eliminate this type of debt the better. Eliminating credit card debt can also free up more cash on a monthly basis. You can also apply your tax refund to your mortgage and save yourself some money on interest and reduce the time that it takes to pay off your home.

Contribute to a Retirement Account To Avoid Blowing Your Tax Refund

With the extra cash on hand, you may be more inclined to save for retirement. You can always open a IRA or Roth IRA to save additional money for retirement. At work, you may be more comfortable increasing your 401(k) contributions to save more for retirement.

Take a Trip To Avoid Blowing Your Tax Refund

You only live once, so why not enjoy it a little! Using your tax refund to take that vacation that you have been putting off is not a bad thing. Plan a trip that can help you relax and keep your sanity from the hustle and bustle of life. This is one sure fire way to at least remember what you did with your tax return through memories and photos!

Invest In Yourself To Avoid Blowing Your Tax Refund

Spending money on ourselves is something that we all like to do! Now is the time to take that class that you have been thinking about or hiring the personal trainer that will help you reach your fitness goals. Investing in yourself is a great way to wisely use your tax refund. Your new skills could help you reach your professional or life goals.

Let’s Schedule a Discovery Call to learn how you can strategically make the most of your tax return!

[ctt template=”4″ link=”pYKf6″ via=”no” ]Don’t blow your tax refund, here are 5 ways to make the most of it.[/ctt]

“I’m broke, I’m worthless…..”. Have you ever heard anyone say these words? Have you ever said these words? I think we have all been there before. Bank accounts looking kind of low and it automatically makes us feel like crap and less of a person. I personally have been there and yes, it can really mess with your self confidence. However I am here to tell you that You ARE NOT Defined By Your Financial Situation!

Stay Positive

I know this can be a hard task to do when your bills and outstanding debts are constantly lingering in your thoughts. Positive thoughts can literally make or break you when it comes to getting out a bad financial situation. When those negative thoughts come to mind about your money, replace them with positive thoughts.

“I WILL get through this…My net worth DOES NOT equal my self worth…”

Create a Strategy to Improve Your Situation

It is very easy to do nothing when you are feeling overwhelmed with your finances. In fact, that is what most people do, we ignore the letters that are coming in the mail, send the calls from bill collectors to voicemail and just flat out stop paying our bills. This obviously is not the answer and no matter how much you ignore the problem it will still be there. To create this strategy, sit down and determine all of your options. This could be looking for ways to increase your income, cutting back on certain expenses to free up extra cash or even seeking outside guidance to walk you through creating this strategy to get you back on track.

Ask For Help

Asking for help is one of the most difficult tasks for most people. In order to ask for help, you have to admit that you messed up and you have to tell other people about your problem. This is the main reason people don’t like to ask for help. You automatically assume that people will judge you, and look down upon you. But believe it or not, most people have been in your shoes at one point or another and they can share their experiences, resources and be a sounding board as you work on changing your situation.

It’s very critical to know that you are NOT alone in your financial journey. Everyone has been through a tough financial patch, including some of the richest people in the world. Even Donald Trump has filed bankruptcy 4 times! You are not defined by your money situation, its just temporary, you can get through this.

Need more demystified financial advice? Sign up for our Financial Coaching Newsletter or Let’s Schedule a Discovery Call for advice specific to your situation!

Mid-Year Financial Check-Up!

It’s Halftime!!  This is the time of year when we re-evaluate all of the goals and resolutions that we set in the beginning of the year.

Here are some tips and areas that should be reviewed to determine your progress in meeting your financial goals for the year.

1-Your Personal Spending Plan

Knowing where your money is going throughout the month is key to being in control of your finances.  If you currently have a spending plan in place, this is a great time to review it and ensure that you are not over extending your self in various areas.  Double check your fixed expenses such as mortgage and car payments, utilities and insurance premiums and make sure you are paying yourself prior to spending on extracurricular activities and entertainment. (Check out www.mint.com to help in managing your cash-flow and to create a budget)

2-Debt | What’s Your Pay It Down Plan?

Have you made any progress on your debt-paydown plan?  Review your current credit card statements and compare them to your January 1st balances. Have the balances remained the same, increased or decreased and review if there has been any changes in your interest rate.  Many people are motivated to begin by paying the smallest debts off first then tackling the larger ones last.  If you are just beginning to tackle your debt,this strategy may work for you.  Also set a date in which you would like the first credit card to be paid off.  Stick to this date and create a payment schedule to match.

3-Investments and Savings | Set It and Forget It

Review your retirement accounts and ensure that your target asset allocation is still in place.  This is the perfect time of year to rebalance your accounts.  Hopefully you are now half-way to your year-end savings goal.  If not, don’t worry, there is still time to jumpstart your savings.  Set-up automatic savings from your checking account directly to your savings or investment account.  If you set-up smaller amounts, perhaps weekly or bi-weekly there will be less of a strain on your monthly cash-flow.  So its kind of like you are tricking yourself to save!

4- Personal and Asset Protection | Life Happens!

You can have the best financial plan in place and then life can happen!  This is a great time to ensure that you have an adequate amount of insurance coverage in place.  With life changes such as a birth of a child, marriage, job loss, death, divorce and several other circumstances, a insurance review is in order.  Be sure to also review your beneficiary designations on all accounts.

5- Estate Planning & Other Critical Documents

People often talk about their wishes once they pass on, however are these wishes and plans documented?  If not, there is no time like the present to place these concerns into focus.  Although this preparing and organizing for your eventual passing can be make you feel uncomfortable, it is very important to have a plan in place outlining your wishes and requests. If you haven’t reviewed or created your family trust, wills, or power of attorneys, now is the time to do so. In addition, if you have children, ensure that you have guardianship provisions in place.

Yes, there is a lot to review! If you are just getting started don’t worry, if you put these tips into action you will be on track for a prosperous second half of the yeara Let’s make the second half great!