It is the last week of Financial Literacy Month 2018, and with 5 days until April concludes, I hope that the first quarter of the year has been met with financial success. Nonetheless, whether you have achieved your financial feat, or are still working towards the finish line, I am beaming with pride. To help continue your education, below I present the transcript from a chat I participated last Wednesday, April 18th: Your Financial First Aid Kit: Actions for Economic Preparedness
Hosted by Winnie Sun, The Wealth Whisperer (@SunGroupWP), on Twitter, the nearly two hour-long chat was dedicated to helping individuals understand the importance of economic preparedness, and how a lack thereof can have devastating effects. It was an honor to tweet alongside fellow women of all intersectional identities, as well as financial professionals whose passion for increasing financial literacy awareness mirrors my own! As such, I encourage you to click the aforementioned link, as well as let me know what your responses would have been! Q1: In your opinion what constitutes an emergency that warrants you tapping into your emergency funds? #WinnieSun Wealth With Whitney: Laptop crashing, unexpected purchase, and replacing broken, essential, items around the house. #WinnieSun Q2: How much should we have earmarked for our emergency fund? Do we change this amount over time? How do you know how much money you should save for the case of an emergency? #WinnieSun WWW: If one's current financial status allows, having roughly $1,000 saved as an initial benchmark is encouraged as this amount should have been reached over time. Additionally, your fund should always be increasing, so as to be prepared to cover unintended costs. #WinnieSun Q3: Would it be a good idea to have different “levels” of emergency funds to prepare for different levels of emergencies? Why or why not? #WinnieSun WWW: Because every emergency is as unique as the individual, allotting set amounts to emergency funds accounts will vary. Nevertheless, it is always beneficial to have rainy day funds as a whole. #WinnieSun Q4: Why is it so important to have a financial plan in place in the case of emergency? #WinnieSun WWW: Too often individuals find themselves battling crippling debt due in part to poor financial planning. Although there are factors that contribute to such poor habits, the first step to financial security is preparedness. Personal financial planning is important. #WinnieSun Q5: What information / documents should you keep in a safe place? Do you keep backups of these documents in a separate location (safe deposit box, the cloud, etc.) #WinnieSun WWW: Birth certificates, life insurance policies, social security cards, copies of medical records, wills, etc. should be kept in safe and secure places. Likewise, clear copies should be made of these documents and kept hidden, yet easy-to-find, too! #WinnieSun Q6: Is it smart to stash some of your emergency funds in physical cash? Why or why not? And if so, what ratio of money should be saved in cash vs. in an account? #WinnieSun WWW: While I understand that many still fear commercial banks, I advocate opening bank accounts. As such, emergency funds should be deposited in an account of your choosing, and it is crucial that customers review banking policies and FDIC policies to quell fears. #WinnieSun Q7: What are the first steps to take if you are unexpectedly let go from your job, business fails, or if you endure a dramatic pay cut? #WinnieSun WWW: Review current funds available and map out a 6-8 month survival plan. Once your budget has been set, talk to a financial professional (if you can afford one) to learn how to stretch your dollars even further! #WinnieSun Q8: What technology / apps do you like to use to keep your finances organized? #WinnieSun WWW: BillGuard, Goodbudget, LevelMoney, and Mint! I even wrote a piece about the following apps, and more, here: https://wealthwithwhitney.weebly.com/home/apps-money-management-and-you … #WinnieSun Q9: What is your financial strategy in the case of market volatility? How can market volatility be used to your advantage? #WinnieSun WWW: Do your best to learn what "market volatility" is, and its effects, while continuing to work to ensure that steady income is being earned. #WinnieSun Q10: When is insurance a good idea? (i.e. renters insurance, flood, earthquake, / life insurance, etc.) #WinnieSun WWW: Insurance is a must-have! Financial protection is important and truly helps to alleviate debt, as well as alleviates collective family stress due to scrambling to pay leftover expenses. #WinnieSun Q11: Does your business or career have an emergency plan in place? #WinnieSun WWW: I am thrilled to be enrolled in a wonderful benefits/retirement plan that has "employee-matching". I am comfortable knowing that I have a financial plan in place in addition to the independent saving I do each pay period. #WinnieSun Q12: What investments/items can you purchase or be educated on to increase your future safety/peace of mind? #WinnieSun WWW: Financial organizations have been gracious about providing free materials to interested learners, therefore I encourage downloading free workbooks + worksheets. Likewise, research free or cost-effective workshops geared toward personal financial planning. #WinnieSun Q13: What money obstacles have you encountered in the past and what did you learn and apply to help minimize the financial impact of emergencies in the future? #WinnieSun WWW: As an Economics major with all of the resources at my disposal, I still possessed abysmal saving habits. After nearly hitting rock bottom, I had to open my notes, employ techniques, and practice. It was hard work, but I was successful. #WinnieSun
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April is Financial Literacy Month, and as such, educators, government entities (Consumer Financial Protection Bureau, Federal Reserve Bank, Internal Revenue Service), non-profit organizations, and the various financial literacy Twitter handles, will dedicate this month to helping North Americans improve their fiscal knowledge. Thus, whether one chooses to jumpstart their education by downloading free financial workbooks and worksheets, participating in a month-long #MoneyManagementChallenge via Instagram and Twitter, or by purchasing bestselling financial literacy books, the end goal should be to amend poor money management habits, as well as eradicate crippling existing debt, which is often caused by frivolous spending and minimal tracking of funds.
When analyzing spending, it is important to note that it does not operate under a standard one-size-fits-all model. Therefore, when examining expenses one must remember that individual circumstances, and reasons, played crucial roles into the overall decision-making. As a result, this month’s dialogues and lessons should not be rooted in dictation and instruction regarding what to, and what not to, spend – conversations should offer suggestions to hone money management and tracking skills. Zeroing in on tracking, as the relationship between humans and technology progresses, smartphones continue to occupy every aspect of daily life. Thus, as we routinely check emails, ESPN, text messages, weather apps, and beyond it is time to add tracking our spending into the equation. While there are a majority of North Americans who lack access to technology, such as Internet connectivity and smartphones, those who are privileged to possess this modern wonder, the time to amend fiscal habits is upon you! Thus, when it comes to budgeting, investing, and money management as a whole, smartphones have made enhancing personal financial planning simpler. Furthermore, reputable sources such as Business Insider, CNNMoney, Forbes, and countless others, have positively written about the multitude of apps available and their easy-to-use capabilities. So, as you begin researching which app best fits your financial needs, be sure to explore the following options below: BillGuard BillGuard helps you track your spending by type of spending, the month in which purchases were made, and the location. Likewise, users have free access to their credit score and the various identity protection tools. The many benefits of the app include: availability on all iOS and Android devices, free download, and syncing of both checking and savings accounts. Goodbudget Determined to make budgeting less of a chore, Goodbudget encourages users to electronically budget for every aspect of life (ex: car insurance payments, cell phone bill, dining out, groceries, and student loan payments) by inputting total amounts for each type. The benefits of this app include: availability on iOS and Android devices, no purchase to download, and retrieval of up to five years of payment history. LevelMoney This app first subtracts repeated expenses and designated saving amounts from your paycheck. Next, the remaining amount is divided to help you decide what to spend daily, weekly, and monthly. Very similar to the aforementioned apps, benefits include: availability on iOS and Android devices, free download, and syncs to both checking and savings accounts. Mint Created by Intuit, the well-known name behind TurboTax, the Mint app is an all-in-one money management resource. As such, it is designed to help you create your budget by categorizing spending, then calculating average monthly spending so as to ultimately properly track how finds are being dispersed. Additionally, the app alerts you to when the next bill payment is due, what you can pay, and how to avoid late fees. Bonus benefits of downloading the app include: availability on iOS and Android devices, free of charge, syncing of checking, credit, and savings accounts, and free credit score. Penny As communication transitions from verbal to electronic, Penny may be a desired app! Created for individuals with a penchant for texting, the app allows users to text questions then receive answers. Thus, after syncing all relevant accounts to the app, questions can be posed. Responses can include graphics (charts). Penny is available for free download on all iOS and Android devices. Wallaby Wallaby provides users with a list of the transactions made so as to help optimize credit card rewards. To assist in this optimization, the app notes which card is best to use in order to receive points and rewards. Additionally, the app tracks how much of one’s credit limit has been used. Benefits include: availability for both iOS and Android devices, free of charge to download, and syncs to all accounts. Wally Wally is keen on helping those truly master tracking their personal expenses. As such, the app electronically logs your daily, weekly, and monthly expenses through photographed receipts at the end of each day. Convenient and easy-to-use, the app clearly details where your money is being dispersed. Additionally, Wally is available to those with iOS and Android devices and is completely free. However, the app does not sync to accounts. You Need a Budget You Need a Budget (YNAB) was designed to help individuals eradicate living paycheck-to-paycheck as well as help in the eradication of existing debt. A practical app, once accounts have been synced users are then instructed to assign every dollar to a category – groceries, household items, student loans, travel fund, etc. Next, with the dollar amount assigned, users are forced to live realistically within the means budgeting the expenses from actual income. Moreover, YNAB encourages flexibility by employing multiple solutions and suggestions to amend and restructure budgets to best-fit needs. Finally, users are provided additional resource materials such as free workshops, weekly newsletter, and YouTube tutorials. Available on all iOS and Android devices, it is of importance to note that the app is only free for 34 days, after the trial-period has ended the cost is $50 per year. |
WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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