Reflecting both silently and vocally today, I find that my gratitude cup runneth over. As such, I extend a heartfelt "thank you!" for making Wealth With Whitney your source of discussion, education, thought, and above all else, home. After 6 years of endlessly writing, and pausing to pursue a graduate degree, I launched this venture (my baby) in June. Thus far, I am impressed at the progress that has been made, and I am eager to continue building upon this brand until every brick is securely in place and financial lives slowly improve. Moreover, I am excited to grow personally and professionally with you the readers and tweeters.
Without further delay, I am pleased to announce that 2018 looks affirming; 2018 looks bright; and 2018 looks metamorphic. Let us bring these adjectives, as well as our dreams, to fruition. I anticipate the collaboration necessary to transform our financial lives, which will enable us to break free of capitalism's restraints, and experience fiscal breakthroughs!
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As the holiday season continues to drive 100 mph in the fast lane, participants cannot help but feel overwhelmed. From celebrations and decor dedicated to Christmas, Hanukkah, and Kwanzaa, to the intense competition to finish holiday shopping at record speeds, it is a safe assumption that credit/debit cards have been autosaved on favorite sites. Likewise, I am certain that wallets have been opened more than once for a few. However, for others with ironclad budgets, free-flowing spending has been minimal. Nevertheless, a common theme emerges – counting down the days until 2017 as a whole concludes. So, with under two weeks left until we bid a long-overdue adieu to the year, there is more than enough time to readjust your finances, so as to make the optimal money moves in 2018. To help you jumpstart your work, below you will find valuable financial tips:
Budget, and Budget Some More Essential to successful personal financial planning, budgeting should become an added addition to your 2018 routine. Thus, when your financial goals are declared at the start of the year, manually or electronically planning what will be spent or saved will commence healthy fiscal practices. Likewise, budgeting will help ensure that money is allocated properly. Pay Yourself First Before our paychecks have been dispersed, every dollar has been compartmentalized. As a result, the excitement of output (monetary reward) courtesy of input (hard work) fades. Nevertheless, once you have received your earnings, put away the amount you intend to save before you do anything else. Example: if you resolve to save 10% of expected earnings, accomplish this task before funds are allocated to other sources. Convert Google Calendar Into A Financial Calendar Google Calendar (arguably) has become the leading source in prioritizing one’s social and professional life. As a result, it would not be absurd to hold one’s financial life in the same esteem. Essentially, having a financial calendar will allow for payment due dates to be clearly outlined, as well as assisting in tracking pay dates and expected income. As dates and dollar amounts change, be sure to amend your calendar as needed. Follow The Money Tracking, although tedious, is necessary. Therefore, if you decide to manually track your funds, utilize paper and a pencil/pen to write down how much is spent daily, weekly, and monthly. Moreover, possessing a Money Diary will be a key aid in completing this task. In your diary, list what you have purchased, the cost, and reason(s) for purchase. The end goal is for your diary to be a teaching tool to further your financial education as a consumer. Cut Your Expenses There are expenses that we can all afford to cut, which include but are not limited to: $5 cups of coffee (Starbucks is a vice of mine), buying $12 lunches, and regularly eating out at restaurants. Solutions to these problems can be: bringing coffee from home in a thermos, brown-bagging (bringing food from home), and eating out at restaurants twice a month. Moreover, if you can decrease your food-related expenses to $10 a week, that’s a total average of $40 a month saved! Explore Better Banking Options Between black banks, commercial banks, and federal credit unions, banking options are plentiful. Exploring the multitude of banks available, as well as their in-person and online banking features, can help you manage your finances at an optimal rate. As such, be sure to thoroughly research your options, and possible fine print, before making the switch. When It Rains, It Pours, So Carry An Umbrella Having an emergency fund, or rainy day fund, at one’s disposal is not only a crucial component of financial planning, but a necessity as unforeseen events occur, unfortunately. As a result, utilizing proper financial planning tools forces you to carefully plan for future expenses. Keep Your Receipts While one can argue that keeping physical receipts for purchased items is a gift and curse (the gift is visually assessing what was bought, the curse is the clutter), I nonetheless applaud this financial hoarding. However, when it comes to keeping physical records of finances as a whole, the act is rarely employed. Therefore, to encourage healthy tracking habits, find the method that is right for you. Whether it is creating an Excel spreadsheet, or utilizing free financial apps, the opportunities to track spending are endless. If you lack access to electronic sources, explore using financial notebooks and workbooks. Retirement and 401(k)?...OK! Your financial plan for 2018 should include an outline for prospective investments as well as future retirement. In comprehending how your level of planning is linked to daily practices, let us look closely at employment. Although employment does not operate under a one size fits all model, most gainful employment should be accompanied by a highly-competitive salary, and benefits that complement living and thriving under capitalism. As such, these generous benefits allow for proper saving habits and proper allocation of funds into 401(k) plans. Remember, how much you want to save will depend on how much you can save. Accountability, Accountability, Accountability Building towards a prosperous financial future can be an overwhelming feat, especially when tackled alone. Thus, sharing your goals with a trusted friend or family member, who is also working toward the same financial future, can be cathartic. As such, having an “accountability partner” not only helps you stay on course, but provides a source of dual encouragement. In the moments where you, or your partner, feel tempted to splurge, talking through your decisions, together, can double your chances of success. The holidays are upon us, and whether careful planning occurred, or you have decided to “wing it”, the season as a whole can be a financial burden. Thus, with Christmas 19 days away, even the savviest shoppers feel the pressure to execute holiday shopping effortlessly. When examining such pressure further, we find that family, children to be exact, are sources/a source of pressure. Likewise, if you have a tight budget, or are living paycheck-to-paycheck, your plans will more than likely be adjusted. Nevertheless, should the pressure begin to rapidly mount, talk to your doctor about the benefits and setbacks of heavily relying on Excedrin to relieve headaches. On a serious note, allotting time to plan can help avoid the additional stress incurred due to overspending. Thus, as you rev up your shopping engines once more, having cruised at 130 mph during Black Friday, or are starting to take your first lap, I emphasize the importance of discussing and defining needs vs. wants with children.
To start, use their favorite monthly magazine or circular found within their favorite stores. Next, provide your child with scrap paper and a pen, which will be used to draw a line down the middle of the page. One side of the page should be labeled “I want this!” while the other is labeled “I need this!” Then, looking through the magazine or circular with your child, help them count the total number of marked items. Utilizing this total number, have your child classify which items are “wants” and “needs”. Once they are finished, have them tally up the score. If one side is larger than the other, debrief and talk through the choices. Finally, commence joint research on the difference between cost vs. price and worth vs. value. When researching, it is key to note that, often, cost, price, value, and worth are frequently used interchangeably although their definitions differ. For example, the price attributed to an item is the amount of money required to purchase a good or service, whereas the cost of an item is determined from the viewpoint of the customer. In examining value, when a customer values a good or service, they are expressing how much they “love” it. Thus, while value is not numerical, one can compare the value of two or more items, especially when the products serve the same purpose. Moreover, it is not uncommon for people to equate price with value. However as prices fluctuate, your value for the item may not. For instance, if you intend to purchase a backpack for your child at the price of $20, the backpack may be viewed as great value. Conversely, if you intend to purchase a sweater for your partner at the price of $60, the sweater may not be viewed as important, therefore not valued. As a result, it is important that people learn to differentiate between price and value. Furthermore, in researching worth, you will discover that the term is used to refer to the cost of a good or service being bought or sold. Example: If you are a homeowner, your house may be worth $900,000. In this case, worth determines how much your house will sell for in the real estate market. With new terms and definitions at your disposal, incorporating your understanding with a few simple tricks, will not only help you get organized for the holidays, but will ensure that your efforts are successful. The first trick is a go-to classic – set a budget. After taking inventory of your routine monthly bills such as groceries, rent, and utilities to name a few, subtract those expenses from your overall budget. The remaining amount is a ballpark estimate of how much you will be able to spend on gifts. Thus, as always, early action planning and realism will help in making sure you do not overspend. The second trick is to make a list. Being prepared with a typed list, crossing items off as you go, and checking it twice and thrice, saves you from leaving anything off and anyone out. The third trick is to decide how you are going to pay for your purchases, and stick to it. Essentially, firmly sticking to using either cash, credit, or debit allows you to not only budget properly, but avoid flip-flopping between payment methods. Such teetering can result in declined cards, overdrawn accounts, and dreaded overdraft fees. Finally, be sure to frequently monitor your spending as you hop from site to site and store to store. While you may be equipped with a budget, it will be easy to veer off course and dip into saved funds. Avoiding post-holiday surprises is the name of the game. Although unforeseen hiccups can arise, preparedness is key. The goal of the financial holiday season is to incur minimal to non-existent credit card debt, and sidestep ongoing low balance account alerts. To accomplish this feat, be alert and come to all counters (tables) competent. |
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