Being an adult is overrated we have to worry about being physically healthy, mentally healthy, spiritually healthy and the one that everyone seems to forget about financially healthy. #adulting

So what does it really mean to be financially healthy? To everyone, the definition may be totally different but for me when I think about being financially healthy I think about being financially sound, being aware of my finances, knowing
where my money is going every month, having a clear understanding of my debt, my income, my investments and overall being extremely aware of my complete financial situation and what I want my financial future to look like.

According to the Center for Financial Services Innovation’s Consumer Financial Health Study, 138 million adults are struggling financially, this once included me! Even as a financial expert my finances have not always been financially healthy. When I first started my business, I exhausted my personal finances and even began to ignore them. I was so fixated on growing my business and helping everyone else with their finances, my own finances fell ill. My credit card debt shot up, I got behind on payments, I even almost lost my home. Just like if you ignore a health issue, it will not go away; if you ignore your financial health, it will only get sicker. In order to turn this around, I needed to have a financial check-up. I sat down with my family and explained to them what was going on, and just like I helped my clients, they helped me. Here is what I did: [Tweet “If you ignore a health issue, it will not go away; ignore your financial health, it will only get sicker. @CFSInnovation #FinHealthMatters”]

Accept that you messed up your financial health

This was huge for me. After always being financially on my game, buying my first house at 22, having a perfect credit score and being an extreme saver, I had to accept the fact that I allowed my finances to become ill. Once I accepted that fact that I messed up and forgave myself I identified where I went wrong and begin strategizing on how to fix it.

Get real about your current financial health and situation

Most people become financially ill because they completely ignore their finances and have no idea what financial shape they are truly in. During this financial check-up, you need to pull together everything with your name and a dollar sign and begin reviewing how much money you are making, all of your expenses and all of your debts. This will finally give you a complete view of where your finances are. [Tweet “Pull together everything with your name and a dollar sign and get real about your financial situation. @CFSInnovation #FinHealthMatters”]

Create a plan to improve your financial health

Now that you know exactly where you went wrong, how much income you are making, what your monthly expenses are, and how much debt you are truly in, you can begin creating a plan to turn things around. This could be looking for ways to increase your income, reducing expenses, negotiating with lenders to repay your debt or reduce your interest rates.

It can be very daunting to notice that you have allowed your finances to become ill. However, remaining aware of your financial situation will ensure that you remain financially healthy. True financial health means you are aware of your financial situation, you have a vision of where you want to be financially and that you are using your finances to live the lifestyle that makes you, the happiest you!

Check out the Center for Financial Services Innovation for more on #FinHealthMatters Day!

Ready to take the first step in improving your financial health? Let’s hop on a free Discovery Call!

Let’s talk about saving! It’s really not that difficult to reach your savings goals. These simple strategies will allow you to boost your bank account and get you closer to that special thing you are saving for!

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Many people may still be in a love hangover from Valentine’s Day. After all the chocolate has been eaten and the roses have wilted, there still is one uncomfortable topic that many couples have not had. Money! Although uncomfortable, it’s a subject that is necessary. When you’re dating with intentions on things becoming serious and even eventually marriage, this conversation is one that is extremely important. The topic of finances can seem awkward or an invasion of privacy but what could be worse than walking down the aisle and figuring out later that you don’t share the same financial goals or have a different outlook on money?

 

Here are some tips on how to prepare to have the money conversation with bae:

 Be open when talking money with bae

Just like every other aspect of a relationship, honesty is the best policy. No matter how awkward, you must mutually agree that it’s a conversation you’re willing to have. You both can choose how deep you wish the conversation to go. It shows maturity and can build a connection on another level. 

Ask Questions when talking money with bae

After hearing bae’s past experiences and future financial goals, there may be some things you didn’t understand and need to be elaborated on. Being prepared to ask questions is just as important as asking those dreaded “getting to know you” questions. The answers to those questions can shed light to what the future holds and even allows the opportunities to bounce ideas off each other. It’s important that you leave the conversation feeling like you learned something new. 

Be Proactive when talking money with bae

 You have all of this information about their financial history….now what? Use this intimate conversation to help each other in the areas that need improvement. Create an action plan. Does he not know his current credit rating? Encourage him to get a copy of his credit report to review. Is she ready to invest her money but doesn’t know where to start? Encourage her to do some research and speak with a financial advisor. Not only help create a plan, but hold each other accountable to stick to the plan. If you don’t know the answers, that’s okay, there are so many tools and resources that can help.  

Having the money conversation is just as important as knowing each other’s career goals or religious stance. When you’re at the appropriate point in your relationship, knowing the financial plans can set you up for a successful future. If you chose 2016 the year to be financially free, that is even more of a reason to have the money talk with bae. Healthy relationships start with good communication- even during the most difficult topics. Having the conversation may not be easy but is something you’ll thank yourself later for. 

 

Check out some tools Dominique offers to help you and your bae get your money right. 

 

It’s that time of year for firing up the barbecue, enjoying an ice cold beer around the bonfire, or an informal dinner under the stars. There’s nothing better than a summer party, while the days are long and the air is warm but unfortunately, parties often aren’t too kind to your wallet. Plan a flawless summer soiree for little to nothing with these money saving tips.

Enlist a co-host to have a party in a budget

Planning a party is not only cheaper but also easier when you have a co-host! You don’t have to shoulder the burden of doing all the shopping, organizing, set up and clean up alone. Choose a friend or family member to co-host with. Flip a coin to decide who’s place you’ll be using and switch the next time around. Sit down together and create a list with two columns, one for yourself and one for your co-host. Place different responsibilities under each column. Create a shopping list the same way.

Organize a Pinterest Pot-Luck to have a party in a budget

This idea is fun for guests and easy for you! Tell your friends you’re throwing a Pinterest Pot-Luck Party. Randomly select recipes from Pinterest (try to choose dishes equal in level of difficulty and price to make) and hand them out to guests. Guests will make their Pinterest dish and bring it with them. You will provide dinnerware, drinks, and a lovely location. There will be plenty of food to go around and much to talk about! Added bonus: People take them dish home with them, so clean up is a breeze!

Brunch instead of dinner to have a party in a budget

Dinner parties are fun but they’re often more expensive than if you were to get everyone together for brunch. Breakfast items are much less expensive and take less time to prepare. Not to mention, they can also be family friendly! Tell your friends to save the babysitter money for another time and bring the kids along. Prep outside with kid friendly toys and games while serving the adults mini quiches and mimosas.

Or choose one dish buffets to have a party in a budget

A one dish buffet is a guaranteed hit! Too many options often feel like the host tried too hard and guest may feel pressured to try everything. Choose something you know your guests love and give them the option to customize. For example, create a taco, potato, pasta or burger bar. Make a bunch of the main ingredient (i.e. chicken and beef for tacos) and then line up a variety of toppings to choose from (i.e. cheese, lettuce, assortment of peppers, sauces, sour cream, etc.). For pasta bars set out a white and red sauce, an assortment of noodles and mix-ins for the taking (i.e. broccoli, artichoke, onion, sautéed peppers, etc.) This gives guests a sort of “activity” while allowing them the freedom to “create their own” meal.

Controlled bar and BYOB to have a party in a budget

If you’ve been to just about any bar recently, you know booze is expensive. So if you’re providing it for your party, you’ll need a classy way to cut corners. Try a controlled bar with only one or two signature mixed cocktails. Or tell your guests you’ll be providing an assortment of beers and anything else is BYOB!

The time has come, to start paying back those student loans. If you’re like most freshly graduated former college students, you’ve been dreading the day you enter the repayment zone. It’s time to jump in, don’t be afraid and whatever you do, DON’T IGNORE IT! In 2012, 600,000 borrowers defaulted on their student loans. We can only imagine what that did to their credit report and overall financial future. Don’t put yourself in sticky situation. The best way to attack your student loans is to understand your options. If you weren’t aware, there are several repayment options available. There’s sure to be one that fits your income, situation and level of comfort.

Repayment Options For Student Loans #1 – Standard Repayment Plan

If you choose this plan, you’ll pay at least $50 per month (typically much higher if you’ve taken out the average student loan amount) for up to 10 years. This popular plan, chosen by 2/3 of all direct loan borrowers, has its perks! You’ll pay off your loans quicker and pay less interest than you would with other plans. However, this plan is for those who feel financially stable enough to make the higher payment typically required.

Repayment Options For Student Loans #2 – Graduated Repayment Plan

You will start out with a relatively low payment and your payment amount will increase every two years. This plan is great for those who aren’t comfortable making large payment initially but believe their income with steadily increase over time, allowing them to raise their payment gradually. The great thing about this plan is, you’ll still pay your loan off in 10 years. However, you will pay a bit more interest than if you chose the standard plan.

Repayment Options For Student Loans #3 – Extended Repayment Plan

This plan is simple. Your payment can be fixed or graduated but instead of 10 years, you’ll be allotted up to 25 years to pay off your loan. The benefit? Well, stretching the time out typically allows for a smaller payment but you’ll definitely pay more interest in that extra 15 years. It’s important to note, there are eligibility requirements to qualify for this particular plan. You must have over $30,000 in outstanding loans as a Direct Loans borrower OR a FFEL Program borrower. Example: John owes $12,000 in FFEL Program loans and $32,500 in Direct Loans. John’s Direct Loan balance qualifies for the Extended Repayment Plan but his FFEL Program loans do not.

Repayment Options For Student Loans #4 – Income Based Repayment Plan (IBR)

Struggling to make your set payments? Don’t stress. You may be eligible for the income based repayment plan. With this option, your monthly payments will be capped at 15% of your discretionary income. Each year, you will be required to submit documentation of your income (tax returns) and your payment will be reevaluated based on income and family size for up to 25 years. If you haven’t paid off your loan in full after making qualified payments for 25 years, the remaining balance will be forgiven. Note that you may have to pay income tax on that forgiven amount. Find out if you qualify for this option here!

Repayment Options For Student Loans #5 – Pay As Your Earn Repayment Plan (PAYE)

Maximum monthly payments will be 10% of your discretionary income. Like the IBR, the payment will be adjusted each year based on income and family size and you must qualify to use this plan. This plan has a repayment period of up to 20 years. As with any extended repayment period, your payments will be lower but interest paid will be higher.

Repayment Options For Student Loans #6 – Income Contingent Repayment Plan (ICR)

Payments are based on your adjusted gross income, family size and the total amount of your Direct Loans (Federal Stafford Loans  and FFEL not eligible). You pay based on a 12 year repayment plan that’s multiplied by an income percentage factor or 20% of your discretionary income, whichever is less. To take advantage of this plan you don’t have to qualify for a financial hardship as you would with IBR or PAYE.

Still worried about your student loan payments? Not sure which payment plan is right for you? Need help fitting your payment into your budget? Set up a call with Dominique to get everything straightened out!

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!

If you just landed your first office job you’re probably feeling two things: excitement and panic! Getting your first real job should be all fun but worrying about what you’re going to wear and how you’re going to afford it can bring all celebration to a screeching halt. If you look into your closet and realize you’re only suited to attend Coachella, the beach, and your bed, don’t worry, you’re not alone! Luckily, putting together a work appropriate wardrobe is easy and inexpensive… when done right. The tips below will help you shop smart, look professional and still have enough cash left over to make it to happy hour at the end of your first week!

Check Your Closet for Items That May Pass as Business Attire

As you sift through the screen print t-shirts, worn tennis shoes and super deep V-necks, you’re sure to stumble upon at least a few items that will qualify as work appropriate. Those black pumps that used to kill it in the club, may be a bit scuffed but if they’re under 4-inches and can be wiped cleaned, throw them in the workable pile! Every item helps, so comb every inch of that closet.

Ask Friends & Family to Fill Up Your Closet With Business Attire

Remember that friend or roommate who borrowed almost every shirt you loved (and didn’t ask)? Well, now it’s time for them to return the favor. If they’re the same size or close enough (getting items tailored is relatively cheap), give them a call! Ask them for office wear they’re no longer using or wouldn’t mind letting you borrow for your first month on the job. If they have been in the work force for a year or more, chances are they’ve upgraded their wardrobe but still have some of those beginner items still laying around.

Make a List of Business Attire That You Want To Be In Your Closet

Every woman needs a LBD (Little Black Dress) and every newly employed professional needs the staples! Pick your neutral base: (black, navy, grey and tan)

• 3 pairs of slacks (or full suits)
• 1 skirt, pencil or A-line (ladies)
• 1 dress (ladies)
• 3 blazers/jackets
• 2 belts (black and brown)
• 3 ties (gentleman)
• 4 dress shirts (2 short sleeve, 2 long)
• 2 pair of dress shoes (Ladies: 1 heel, 1 flat)

If you do this properly, all of these items should mix and match. You can wear a few of the items more than once per week, completely undetected.

Choose Bright Colors For Your Business Attire

This is the fun part! Now you can make that dull wardrobe above fit your fun side. Pick blouses, statement jewelry, sweaters, and hair accessories that brighten things up. What’s great about this part, is these items tend to be exceptionally cheap and are often found in the clearance section. This makes it easy for you to stock up and be both fashion forward and work appropriate.

Tip: Pick colors that accentuate your skin tone, cuts that highlight your shape and mostly solids so it’s easy to mix and match.

Find Ways to Cut Costs When Filling Up Your Closet With Business Attire

Some items are simply cheaper than others. For example, blazers tend to be expensive but a sweater or cardigan is also an acceptable way to layer without breaking the bank. Be on the look out for these kinds of switches if you’re nearing your spending limit. Search the rack for damaged items. Minimally damaged items (missing a button, small snag) can often be discounted at checkout. Chances are you know someone who can fix it for free or super cheap!

Skip the Expensive Stores When Filling Up Your Closet With Business Attire

If you’re thinking of going to Brooks Brothers or Macy’s and making it out under budget, think again! Want the style you love at a price you can afford? Check your local thrift stores and consignments shops. You’ll find deals that are unbelievable! Want the big department store options without the price tag? Try TJ Maxx, Marshalls, Ross or JC Penney. We live in the digital age so don’t forget the online discount and resell options like, Ebay and Etsy.

Make a list When Filling Up Your Closet With Business Attire

Whether we’re on a budget or not, shopping is fun and it’s easy to get out of hand! Make a list of everything you need and cross items off as you go. When the list is completed, go home! This will keep you from over shopping or venturing off to get items you don’t actually need.

Need more tips on how to shop smart? Set up a Discovery Call 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]

Being a Homeowner Is Not For Everyone

The “American Dream” used to include homeownership, specifically a white picket fence. With the downturn in the housing market and so many people underwater in their homes (owing more than what their houses are worth), it has freaked many people out, especially millennials when it comes to homeownership.  Oh and we can’t forget to include the student loan payments that essentially equal the mortgage payments that could have been.  Even with these potential barriers to being a homeowner, the upsides of owning a home are still there.

I was having a conversation about homeownership with a friend recently, and it wasn’t the first time I have had this convo with someone. She explained to me that she may not ever want to become a homeowner, as she didn’t think it was for everyone, especially not her. I totally understand where she was coming from, as I stated before, with all of the negative things surrounding homeownership over the past few years, it would freak any potential homeowner out.

My response to her was this, “I agree being a homeowner is not for everyone, but it is for the person who would prefer to pay a mortgage for a maximum of 30 years instead of paying rent for the rest of their life.”  She immediately agreed and stated that she never thought about it that way.

In addition to not having to pay rent for the rest of your life, there are tons of other benefits such as the mortgage interest you can write off every year (gotta take advantage of this tax credit while it’s still around), and being able to pass on a asset to the people you care about the most, to name a few.  If you are diligent in doing research on the area you are purchasing in, only buying a home you can afford (even if the interest rate increases) and obtaining a fixed rate loan if possible, you should be fine!

What are your thoughts on being a homeowner?

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