How to Create a Shared Financial Plan

Building a successful relationship often means being on the same page financially. Couples who plan together succeed together! Here’s how to create a shared financial plan that strengthens your bond and sets you up for success.

1. Open Up the Conversation

Start by having an honest discussion about money. Talk about your income, debts, savings, and financial goals. Make it a judgment-free zone where you can express your thoughts openly.

Example: Schedule a monthly “money date” where you sit down with a coffee (or wine 🍷) and discuss your finances.

2. Set Common Goals

Identify short-term and long-term goals that both of you want to achieve. Whether saving for a vacation, buying a house, or planning for retirement, having shared goals will motivate you.

Example: Decide to save $200 each month towards a dream vacation to Italy. Track your progress together and celebrate small milestones along the way!

3. Create a Joint Budget

Work together to draft a budget that reflects both your income and expenses. Allocate funds for essentials, savings, and a little fun money for each of you.

Example: Use budgeting apps like Mint or YNAB to manage your finances in real time, ensuring you both stay on track.

4. Acknowledge Differences

Acknowledge and appreciate each other’s strengths and weaknesses. Use these strengths to your advantage by deciding who will manage specific financial responsibilities, like paying bills, tracking expenses, or managing investments. But the key is to keep each other informed.

Example: One partner handles the monthly bills while the other focuses on long-term savings and investment strategies.

5. Review and Adjust Regularly

Regularly review your financial plan and make adjustments as needed. Life changes, and so should your financial strategies.

Example: Review your quarterly budget and make necessary tweaks to accommodate changes like a job promotion or a new financial goal.

Creating a shared financial plan isn’t just about numbers; it’s about building a future together. By following these steps, you’ll not only improve your financial health but also strengthen your relationship.

Create a Budget That Works

Building a life in a new country is exhilarating! Between navigating cultural differences and climbing the career ladder, finances can quickly become overwhelming.Especially for immigrant professionals, who may be juggling unfamiliar expenses and supporting loved ones back home

The good news? Many immigrant professionals are smart and have the skills to master their money, too. Here's how to create a budget that works for your specific needs, fuels your future, and lets you send that extra support package home without breaking a sweat.

First, we must Understand the unique Financial Situation that most immigrant professionals face.

We might have:

• Debt accrued in our home countries: Student loans, mortgages, or helping family back home.

• Fluctuating income: Freelancing gigs, contract work, or currency exchange rates impacting salaries.

• Financial goals spanning two worlds: Saving for a dream home here while supporting loved ones back home.

• The financial burden of being caretakers of multiple generations: our kids and parents, some of them living with us.

Keeping these unique needs in mind, let’s break down the budgeting process into 4 clear steps.

The 4 Pillars of the Immigrant

Professionals’ Budget

Step 1: Understanding Your "Why"

As immigrant professionals, we often carry a strong work ethic. We strive to establish ourselves, support family back home (sending money home, or "remittances," is a common thread for many), and build a secure future. However, this drive can sometimes lead to financial mismanagement.

Budgeting in a new currency with unfamiliar costs can feel daunting. But by understanding your "why"—your personal financial goals—you can create a budget that empowers you, not restricts you.

• Why do you work so hard?

• Why do you need more money?

• Why did you come to the Diaspora?

• What kind of life do you see yourself living? Today, Tomorrow? Next year.

  These questions can help formulate your “Why” and help shape your values.

Step 2: Track Everything, Every Penny

For a month, track every single income and expense. Use the Digital Financial Planner to help you keep track of your income, expenses, bills, and subscriptions. Include essentials like rent, groceries, and bills, but don't forget those sneaky daily expenses, phone top-ups to call family, and ethnic food cravings.

Knowing what comes into and out of your home puts you in control of your money.

Step 3: Categorize Your Expenses

Once you have a month's worth of data, group your expenses into categories. Common ones include:

• Fixed Costs: Rent, utilities, insurance

• Variable Costs: Groceries, transportation, entertainment

• Debt Repayment: Student loans, car loans

• Savings Goals: Retirement, emergency fund, dream home (here or back home)

• Family Support: Sending money back home

• Community Support: Money spent for being a member of the community or association

P.S The Monthly Budget, included in the Financial Planner, has allocated Categories to make this easy for you

Step 4: Make Adjustments as needed

Now, look at your income (after taxes) and your expenses. Set Realistic Income and Expense Limits

If you have underestimated your expenses or overestimated your income and need extra money. This is where you might need to make some adjustments:

• Negotiate a raise: You deserve it! Research industry standards and market your value.

• Find cost-saving swaps: Explore local grocery stores for ethnic staples, and find free or low-cost entertainment options (e.g., library events, park picnics).

• Prioritize ruthlessly: Decide what's most important and allocate funds accordingly.

Maximizing Your Dollars for Dual Dreams

Here are some immigrant-specific budgeting hacks to consider:

• Leverage currency fluctuations: Send money home when the exchange rate is favorable. There are online tools to track these fluctuations.

• Explore international investment options: Consider investing some of your savings in your home country, offering higher returns. (Always research thoroughly and consult a financial advisor)

• Utilize immigrant-friendly financial institutions: Look for banks or credit unions with experience serving immigrant communities. They might offer better loan terms or tools for sending money back home.

Budgeting for Family Support and Your Future

Remember that budgeting isn't about deprivation.

It's about empowering yourself to achieve your financial goals.

• Communicate openly with family: Discuss their needs and your budget limitations. Brainstorm cost-effective ways to support them, like sending care packages instead of large sums.

• Plan for emergencies back home: Set aside a small emergency fund specifically for unexpected needs back home.

Taking control of your finances isn't just about numbers but financial fulfillment, and a big part of that is being able to do the things that are aligned with your values.

By budgeting effectively, you can achieve your long-term goals, support loved ones back home with peace of mind, and maybe even treat yourself to that dream vacation (here or back home—the choice is yours!).

Stop the Late Fees! What is the Difference Between Statement Due Dates and Closing Dates ?

Working and raising a family can be amazing experiences, but keeping track of finances can be a headache. One common source of confusion is credit card statements. Terms like "statement due date" and "closing date" are often used, leading to missed payments and late fees.

This guide will break down these terms and equip you with practical tips to avoid those pesky charges.

Statement Due Date: The Drop-Dead Date for Payments

Think of the statement due date as the red line in the sand. It's the last day you can make a minimum payment on your credit card without a late fee. Missing this deadline can damage your credit score and incur additional interest charges.

Here's how it works:

• Billing Cycle: This is the period during which your credit card activity is tracked. It typically lasts around a month but can vary depending on your issuer.

• Statement Closing Date: This marks the end of your billing cycle. Your upcoming statement will reflect all your purchases made up to this point.

• Statement Due Date: This falls typically 21-25 days after your closing date. It's the final day to make at least the minimum payment to avoid late fees.

Example: Let's say your statement closing date is June 15th. Your statement will be generated with all your purchases until that date, and the due date for a minimum payment might be July 10th.

Tip :

• Set Up Automatic Payments: Schedule automatic payments for at least the minimum amount a few days before the due date. This ensures timely payments and eliminates the risk of forgetting. Paying your bills on time helps improve your credit score.

• Consider Early Payments: Make payments before the statement closing date. This minimizes interest charges, especially if you carry a balance.

Closing Date: When Your Statement Takes Shape

The closing date is when your credit card company stops recording transactions for your current billing cycle and starts preparing your statement. SoFI says your credit card closing date determines your billing cycle, usually 28-31 days.

Here's the key difference:

• Transactions made after your closing date will appear on your next statement.

Example: Going back to our previous example, if you make a purchase on June 16th (after the closing date of June 15th), that transaction will show up on your July statement, not the June statement.

Tip :

• Strategic Purchases: If you're nearing the end of your billing cycle (close to the closing date), consider delaying non-essential purchases until the next cycle. This can help you manage your upcoming statement and avoid carrying a balance into the next month.

Remember:

• Your closing date and due date are usually found on your credit card statement or by logging into your online banking portal.

The Grace Period: Your Buffer Zone (But Use it Wisely!)

Many credit card companies offer a grace period between your statement closing date and the due date. You won't be charged interest on your balance during this time if you pay it in full by the due date.

However, this grace period is not a free pass to carry a balance! Interest starts accruing on any remaining balance after the due date, even during the next billing cycle.

Understanding the difference between statement due dates and closing dates empowers you to manage your finances effectively, especially when juggling the complexities of work and raising a family. By utilizing the provided tips and staying on top of your billing cycle, you can say goodbye to late fees.

From Survival to Thrival: How Immigrants Can Achieve Financial Freedom in the Diaspora

As immigrants, we come to the diaspora seeking better opportunities and a brighter future. We leave behind our families, friends, and familiar surroundings to pursue our dreams. However, living in a foreign land can be harsh, and financial struggles are a common experience for many of us. The stress of making ends meet, dealing with debt, and struggling to send money back home can be overwhelming. But what if I told you that financial freedom is within your reach? In this post, we'll explore the secrets to achieving financial freedom as an African immigrant in the diaspora.

The Struggle is Real

We've all been there - working multiple jobs to make ends meet, living paycheck to paycheck, and struggling to send money back home to our loved ones. The stress and anxiety can be overwhelming, and it seems like there's no way out. But there is hope. We don't have to be held back by our financial circumstances. We can break free from the cycle of poverty and debt and achieve financial freedom.

Breaking Free from the Cycle

The first step to achieving financial freedom is to break free from the cycle of poverty and debt. This means creating a budget, saving regularly, and investing in yourself. It's not easy, but it's worth it. We need to take control of our finances and make conscious decisions about how we spend our money. We must prioritize our needs over wants and sacrifice today for a better tomorrow.

Building Multiple Income Streams

Having one source of income is not enough. We need to diversify our income streams to achieve financial stability. This could mean starting a side hustle, investing in real estate, or pursuing alternative sources of income. We must think outside the box and explore different ways of making money. We can't rely on just one source of income to meet our financial needs. Whatever side hustle you decide to pursue, avoid the six big mistakes people make when creating side hustles, as this Nasdaq article outlines.

Investing in the Future

Investing in the stock market, starting a business, or pursuing higher education can seem daunting, but it's essential for achieving financial freedom. We need to think long-term and make sacrifices today for a better tomorrow. We need to invest in ourselves and our future. We can't afford to be complacent and expect things to get better on their own. We need to take action and make things happen.

Overcoming Cultural and Social Pressures

As immigrants, we face unique cultural and social pressures that can hinder our financial progress. We may feel obligated to send money back home to our families, even if it means sacrificing our own financial well-being. We may feel pressure to maintain a certain image or status in our community, even if it means going into debt. We need to find a balance between our cultural obligations and our financial goals. We must prioritize our financial well-being and make decisions that align with our values and goals, even if it means saying NO to those we love.

Achieving financial freedom as an African immigrant in the diaspora requires hard work, dedication, and a willingness to take risks. It requires breaking free from the cycle of poverty and debt, building multiple income streams, investing in the future, and overcoming cultural and social pressures. But the reward is worth it—financial freedom, peace of mind, and the ability to live on our own terms.

Join our community of like-minded individuals on the same journey, and let's achieve financial freedom together!

5 Simple Money Hacks for Busy Moms

Can We Afford This?" to "Dream Vacation Here We Come!"

Hey mamas! Ever feel like your bank account is playing hide-and-seek with your dreams? You're not alone. Between endless grocery lists, unexpected school supplies, and that-one-toy-they-absolutely-must-have, managing money can feel like wrangling toddlers – messy and unpredictable.

But what if I told you there's a way to take control of your finances without feeling like you're depriving yourself (or your little ones)? Here are 5 MOM-APPROVED hacks that will have you saying "buh-bye" to budget blues and "hello" to your dream life:

1. The Penny Jar Pantry Challenge: Turn Spare Change into Savings Superpower!

We all have that overflowing jar of loose change. Instead of letting it gather dust, transform it into a saving machine! Here's the trick:

• Pick a category: Is it a family vacation, a new wardrobe, or that dream kitchen renovation?

• Play the "Change Game": Every time you get loose change, round up your purchase to the nearest dollar and toss the difference in the jar. For example, a $3.75 bill becomes $4.00, with the extra 25 cents going straight to your dream fund!

• Get the Family Involved: Make it a fun challenge! Decorate your jar with your savings goal and track progress together. Seeing that jar fill up will motivate everyone!

2. The "Unsubscribe Fairy":

How many monthly subscriptions are silently draining your bank account? Streaming services, gym memberships you never use, and that magazine subscription you haven't touched in months all add up!

Become the "Unsubscribe Fairy"! Dedicate 15 minutes this week to comb through your bank statements and online accounts. Cancel anything you don't love or use. This quick audit can free up surprising amounts of money each month.

3. The "Meal-Plan Mama": Cut down your Groceries billdddk Without Sacrificing Flavor. We all know grocery bills can be a budget buster. Here's how to be a "Meal-Plan Mama" and save:

• Plan It Out: Dedicate 30 minutes each week to plan your meals. Consider what's on sale, utilize coupons, and incorporate leftovers for lunches.

• Embrace "Meatless Mondays": Studies show plant-based meals are budget-friendly. Explore delicious meatless recipes that are easy on the wallet and the waistline.

• The "Freezer Flex": Stock up on staples when they're on sale. Freeze fruits, veggies, and meats for future meals, saving money and last-minute grocery store dashes.

4. The "Craft-tastic Cashback": Turn "Screen Time" into Savings Time!Instead of mindless screen time, get crafty with the kiddos! This quality time doubles as a money-saving hack:

• DIY Gifts & Decorations: Encourage them to create homemade gifts for loved ones for birthdays and holidays. This saves money and teaches valuable skills.

• Upcycle & Repurpose: Turn old clothes, jars, and containers into something new! Embrace the "Pinterest Mom" spirit and create unique treasures that cost next to nothing.

5. The "Envelope Budget": Cash is Queen (and in Control!) Feeling overwhelmed by digital transactions? The "Envelope Budget" is your new BFF:

• Categorize Your Spending: Divide your cash into envelopes for groceries, gas, entertainment, etc. Allocate a set amount to each category.

• Stick to the Plan: Only spend the cash allocated to each category. Seeing the physical money dwindle keeps you accountable and prevents overspending.

Bonus Tip: The "Mama's Night Out" Money Jar

Being a superhero mom is exhausting! Set a small monthly amount for a "Mama's Night Out" fund. A massage and dinner with friends – investing in yourself prevents burnout and energizes you to manage those finances like a champ!

It is okay to take a break, kick back and relax. After, you need to recharge to keep the house running smoothly.

Remember, mamas, you are the CEOs of your households! Taking control of your finances empowers you to create the dream life for yourself and your family.

Taking Care of Aging Parents

As our parents age, they may need our financial support. Many immigrants and women have taken on the role of caregivers for their aging parents. This can be a daunting task, especially if we are also trying to raise our own families and save for our own retirement. However, there are ways immigrants and women can help their parents without putting their own financial health at risk.

Here are a few tips:

1. Start by talking to your parents about their finances. This can be a difficult conversation, but it is important to understand their financial situation and what they need from you. Find out what their income and expenses are, and what their retirement plans are.

2. Help them assess their assets and liabilities. This will give you a better idea of their financial strengths and weaknesses. If they have any assets that they can sell, or if they have any debts that they can consolidate, this could free up some money to help them with their expenses.

3. Look into government programs and benefits. There are many government programs that can help seniors with their financial needs. These programs can provide financial assistance, healthcare coverage, and other services. Senior Lifestyle has a list of organizations that you can reach out to for assistance.

4. Consider setting up a trust or other financial vehicle. This can help protect your parents' assets and ensure that they are used for their intended purpose.

5. Get legal documents in place. This includes a power of attorney, a living will, and a health care directive.

6. Be prepared to provide direct financial assistance. If your parents need help paying their bills or other expenses, you may need to provide them with direct financial assistance. However, it is important to do this in a way that does not jeopardize your own financial health.

7. Help your parents downsize their home. If your parents have a large home, they may be able to save money by downsizing to a smaller home. This can also help them to stay more independent.

8. Talk to your parents about long-term care options. As your parents age, they may need long-term care, such as a nursing home or assisted living facility. This can be a costly option, so it's important to plan ahead.

9. Be prepared to make sacrifices. If you do decide to financially support your aging parents, you may need to make some sacrifices in your own life. This could mean cutting back on your own expenses or delaying your retirement plans. If you plan on living with your parent, this could mean giving up your space and privacy and your family sharing their space as well.

Throughout this process, you should also use these tips to take care of YOU.

• Get organized. This will help you to track your parents' income and expenses, and to make sure that they are getting the help they need.

• Be patient and understanding. Aging can be a difficult time, and your parents may need your emotional support as well as your financial support.

• Don't be afraid to ask for help. If you are struggling to support your parents, don't be afraid to ask for help from your siblings, other family members, or friends.

• Set boundaries. It is important to set boundaries between your own responsibilities and your parents' needs. This means saying no when you need to, and taking time for yourself to relax and recharge.

• Delegate tasks. Don't try to do everything yourself. Ask for help from other family members, friends, or a professional caregiver.

• Take care of your health. Make sure you are getting enough sleep, eating healthy foods, and exercising regularly. This will help you stay strong and healthy so you can care for your parents.

• Take care of your mental health. Take care of your mental health. Caring for aging parents can be stressful. Find ways to manage stress, such as meditation, yoga, or spending time with loved ones. Do things you enjoy.

It is also important to remember that you are not alone in this. There are many resources available to help you support your aging parents. Talk to a financial advisor, a social worker, or a elder law attorney to get more information and advice.

Providing financial support to aging parents can be a challenge, but it is also a rewarding experience. By following these tips, you can help your parents to live a comfortable and secure retirement without putting your own financial health at risk.

4 Tips For Creating a Budget that Prioritizes Your Values

Your budget prioritizes the things you value and gives you permission to spend.

Do you ever feel like you're not in control of your money? Like you're always spending more than you earn? If so, you're not alone. Many people struggle with their finances.

One of the best ways to take control of your money is to create a budget. A budget is a spending plan that helps you track your income and expenses. It can help you see where your money is going and make sure you're not overspending.

But a budget is more than just a way to track your spending. It's also a way to prioritize the things you value. When you create a budget, you decide what's important to you and how much money you're willing to spend on those things.

For example, if you value travel, you might make sure to include a travel fund in your budget. Or, if you value spending time with your family, you might budget for dining out or going to the movies.

A budget doesn't mean you have to give up everything you enjoy. It just means you have to be intentional about your spending. And when you have a budget, you can give yourself permission to spend money on the things you value.

So if you're ready to take control of your money, create a budget today. It's the first step to financial freedom.

Here are some tips for creating a budget that prioritizes the things you value:

1. Start by listing your income and expenses. This will give you a clear picture of your financial situation.

2. Decide what's important to you. What are your financial goals? What do you want to spend money on?

3. Allocate a budget for each category.Be realistic about how much money you can afford to spend.

4. Review your budget regularly. As your income and expenses change, you may need to adjust your budget.

Creating a budget takes time and effort, but it's worth it. A budget can help you take control of your money and live a more fulfilling life.

Tips to Save Money on Your Next Memorial Day Trip

Memorial Day weekend honors the brave men and women who have served and sacrificed for our country. It's also an opportunity for families and friends to gather and celebrate the unofficial start of the summer season. For many, this means planning a memorable getaway without breaking the bank. In this blog post, we'll explore various ways to save money on travel during Memorial Day weekend, from finding affordable accommodations and transportation to choosing budget-friendly destinations and activities.

Saving Money on Lodgings

• Book early or last minute: To score the best deals on accommodations, consider booking your stay well in advance or at the last minute. Early bookings can help you secure lower rates, while last-minute deals are often available as hotels try to fill empty rooms.

• Use discount websites: Websites like Hotels.com, Expedia, and Priceline offer discounted rates on hotel rooms. Compare prices across multiple platforms to ensure you're getting the best deal.

• Consider alternative accommodations: Explore options like vacation rentals through Airbnb or VRBO instead of staying in a hotel. These can often be more affordable, especially if traveling with a group.

Saving Money on Transportation

Travel during off-peak hours: If you're flying or taking a train, avoid booking during peak travel times, such as Friday evening or Monday morning. Traveling during off-peak hours can result in significant savings on fares.

Use fare comparison websites: Websites like Kayak and Google Flights allow you to compare prices across multiple airlines and travel dates to find the best deals.

Consider alternative transportation: Instead of flying, consider taking a bus or train, which can be more affordable. Companies like Megabus and Amtrak offer budget-friendly fares, especially if you book in advance.

Saving Money on Attractions

Research free or discounted attractions: Many cities offer free or discounted admission to museums, parks, and other attractions during Memorial Day weekend. Check local tourism websites for information on special offers and events.

Use discount cards: Some cities offer tourist discount cards, such as CityPASS or Go City, which provide discounted admission to popular attractions. These cards can help you save money on entrance fees and skip long lines.

Affordable Destination Ideas

National parks: Memorial Day weekend is an excellent time to visit one of America's stunning national parks. Enjoy hiking, camping, and sightseeing at destinations like Yosemite, Zion, or Acadia National Park. Be sure to check the National Park Service website for information on park fees and reservations.

Beach getaways: Enjoy some fun in the sun without breaking the bank by visiting affordable beach destinations like Myrtle Beach, South Carolina, or Galveston, Texas. These locations offer beautiful beaches, family-friendly attractions, and reasonably-priced accommodations

Budget-Friendly Activities for Families

Picnics and barbecues: Save money on dining out by packing a picnic or hosting a barbecue at a local park or beach. This is a great way to enjoy quality time with loved ones while keeping costs low.

Outdoor activities: Take advantage of the warm weather by participating in budget-friendly outdoor activities like hiking, biking, or kayaking. Many parks and recreation areas offer low-cost or free equipment rentals during Memorial Day weekend

To further cut down on travel costs, consider using creating a travel budget and saving ahead for your vacations.

By taking advantage of these deals, you can enjoy an unforgettable Memorial Day weekend getaway without breaking the bank.

With a little research and creativity, it's possible to plan an affordable and memorable Memorial Day weekend getaway. By following these tips and using resources like your budget, you can save money on lodgings, transportation, and attractions while still enjoying quality time with friends and family. Happy travels

Unique and Budget-friendly Mother’s Day gifts

Mother's Day is the perfect opportunity to show your mom how much you care and truly express your love and appreciation for all your mother does for you.

From handmade cards and crafts, thoughtful gestures, personalized presents, or DIY projects, there are countless ways to show your mom how much she means to you.

Finding the right present can be challenging whether you’re looking for a heartfelt card or an extra special gift.

If you're on a budget and need inspiration, this article will provide creative ideas for unique Mother’s Day gifts that will make your mom feel loved without breaking the bank. From small gestures of love to meaningful presents, we'll go through tips on picking the perfect gift tailored to make your mom feel special regardless of your budget.

If you're looking for a unique way to show your mom just much you care, read on for some great ideas. 

DIY projects and handmade gifts are a great way to show your mom how much you care on Mother's Day.

These gifts are thoughtful and unique, but they will also make your mom feel extra special because she'll know that time was taken to create something special for her, from a knitted scarf, homemade card, or handmade jewelry to a collage of unique photos. If crafting isn't your thing, you could also bake her favorite treats or make her a personalized mug with her favorite sayings. 

Here are some more creative ideas for unique Mother’s Day gifts to make your mom feel special.

• Send her a gift basket filled with her favorite items 

• Plan her a Spa Day or arrange to have a chef come and cook her a special meal at home

• For the mom who is a Beyoncé fan, surprise her with tickets to her upcoming concert

• Give her photo Albums and mementos to Capture Special Moments 

• If mom is a sports fan, the NY Post has a ticket guide for every game. Why not surprise Mom to watch her favorite sports?

• A Surprise Subscription Box of something she loves she can enjoy throughout the year. 

DIY projects, handmade gifts, or gifts that were well thought out and bought out are great options to show your mom how much time you took to create something special for her.

Whatever you decide, make sure it's personal and meaningful to your mom! 

5 ways to save money on school supplies

Getting kids ready for school is an emotional time for many parents. The last thing any parent wants to worry about is ensuring their little one has everything they need to excel in school.

Here are five things you can do to ease your back-to-school shopping experience.

1. Plan your shopping

It would be best to have your shopping list printed and ready to go before you head out the door. Attempting to guess which items are on your supply list and figuring out where to go next are things that can be avoided. Eliminating these tasks can save you time during the day.

2. Use cash back apps

Cash back apps like Rakuten, get back some of the money you have been spending. While using cashback apps, don’t forget to compare prices. Saving money and getting cash back ensures you get an even greater bang for your buck.

3. Use coupons

Many shopping sites are offering coupons online and in-store during back-to-school events.

Other sites like honey compare prices and give you the best coupon deals. Major brands like Amazon, Walmart, Target, and even your local grocery store may also have items at a great bargain.

4. Shop at discount marts

Shop at discount stores like dollar stores, thrift stores, or garage sales, where you can find quality back-to-school items for a great bargain.

Consider the amount of time you have before school starts. Scouting discount stores for a great deal can be time-consuming.

5. Budget before you spend

Budgeting allows you to see what expenses are a priority and what expenses you can wait on.

A new pair of sneakers may not be an immediate need, but a school bag might be a necessity. Prioritizing your shopping list allows you to budget so you do not go into debt to buy things that are not needed.

5 Ways Immigrants Can Build Wealth Fast

Most immigrants especially first-generation immigrants carry they burden of taking care of not only their nuclear family but the needs of their parents and extended family as well. So building wealth as an Immigrant becomes challenging because the needs of the family often supersedes the income that comes in.

Because of the cultural and financial demands of taking care of the extended family, the importance of building wealth as an Immigrant is even more important. The Urban Institute estimate that it cost about $70,000 to take care of a parent in the US. This kind of financial burden can cause emotional, and physical stress and even ruin relationships.

On the flip side, the absence of financial stress will build stronger family and community bonds.

There are 5 things that are necessary for an immigrant to do as they embark on their wealth building journey. They are :

1- Save at least 15% of annual household income

This number, based on a Fidelity study on somebody who started saving at 25 years. Unfortunately most first-generation immigrants immigrated at a later age. So they are already running behind on time to invest.

The truth is, most immigrants might not be able to contribute 15% of their income into their retirement account. The best thing would be to get on a budget and just start as soon as possible

2- Save money in Tax-sheltered accounts first

The contributions and earnings in tax-sheltered accounts will not be taxed until the money is withdrawn from the account. If your company offers a 401K plan , consider taking at least the match. This is basically FREE money given by your company so turning it down is walking away from free money.

Also make use of your tax favored accounts like your ROTH IRAs and HSAs accounts 

1. Roth IRA contributions are after tax but you withdraw earning tax-free.

2. HSA- Offers triple tax benefits.  You put money tax free, it grow tax free and you withdraw the money tax free. Money can be used for qualified medical expenses. 

3- Automate your savings 

Automate your savings from your paycheck directly to your savings account

Ensure that you are paying yourself first but putting money in your retirement savings. As we know, life happens. How then can you reduces the chances of you not choosing to save? You Automate.

Have the money withdrawn directly from your paycheck before the rest hits your bank account. Removing the likelihood that you might forget or be influenced to redirect the funds somewhere else makes automation one of the important secrets to saving money.

4-Have a Fully Funded Emergency Fund in Place

You do not want unforeseen circumstances to throw you off your game as you try to build wealth. Have at least 3-6 months of your monthly expenses saved in a separate account for those moments when unforeseen events will happen. You will want to have money for those unexpected emergencies or calls from family members you take care off. In order to be able to save money, you might have to cut back on your expenses for a little while.

5- Get out of Debt

Get out of Debt. Take Back your Income

Debt ties up your money you should be investing. Debt steals time and money from you and prevents you from making use of compound interest. If you bring more of your income home you can bring home, the more money you have to invest.

So before you start saving for retirement and building wealth, you want to have a retirement plan and avoiding financial pitfalls.

Building wealth and trying to navigate a new financial system can be challenging. The most important thing is to make a plan and just START.

5 Financial Pitfalls to Avoid Taking On More Debt

Financial pitfalls can be very costly and can set you back financially for many years. 

In order to be able to move forward in your financial goals and not derail from them, you needs to identify these financial pitfalls and put measures in place to avoid them. 

So which financial pitfalls should you avoid this year?

1. Not setting boundaries

Many people have a hard time setting  boundaries, financial or otherwise. Setting financial boundaries, or boundaries, in general, is one of the single most important things that you need to do before you start taking control of your money. If you don't have boundaries in place. This will lead to impulsive purchases and poor financial decisions. 

2. Not investing

In investing we make use of compound interest. The longer you delay investing, the less time your money will be able to work for you.

The reason is that compounding is dependent on time. So the longer your money stays in a tax favored account, the more profit you will get from compounding. Thus investing early rather than later, is beneficial for building wealth. Whenever you do start investing, make sure you put measures in place to reduce your financial risks.  

3. Not having insurance

Insurance protects the assets that you acquire as you build wealth, and also prevents you from going into debt. When emergencies or unforeseen events like a car breakdown, illness, job loss or death happen you want to have measures in place to take care of those emergencies or replace that income without going into debt.The easiest way to overcome these roadblocks is by having insurance. For Example, car insurance  will protect you if your car breaks down, health insurance takes care of your bills when you need to make that emergency trip to the hospital,  life insurance will protect your beneficiaries if you pass away. 

4.Using debt as a wealth building tool

A lot of people are comfortable with debt because “everyone has debt”.Society has normalized debt preventing you from appreciating the disadvantages of having debt. Sometimes in building wealth, you have to go against what society deems as normal. 

People usually go into debt because they do not have enough money saved up to cover expected or unplanned expenses or emergencies that may arise. It is estimated that 51 million Americans saw an increase in their credit card debt as a result of the pandemic.
Debt ties up your income thereby delaying investing. It takes up  money. You could otherwise have used to invest and make use of compound interest.  To break away from the masses and build wealth faster, you need a mindset change. Understanding the debt takes up your income,delaying your ability to invest, is the first step to getting rid of your debt. 

5. Buying a house without budgeting

The advantages of buying a house include;

• Being able to customize the features exactly how you want them

• It gives you that sentimental value because you have a place that you can call home and your kids can come home to.

• It can be a good investment 

On the other hand , buying a house like any investment involves taking risks.

Often times when people compare renting and buying they fail to compare the true value of buying a house. They usually compare the monthly mortgage to the rents that are paid every month.  The actual comparison should be,

The mortgage, annual taxes, costs of renovations and repairs of the house against the rents that are paid every month. 

Other costs that should be taken into account include:

• Cost of closing the sale

• Cost of selling the house

• Relocation costs

Consider computing your numbers before you buy a house, then compare it to how much you're paying in rent.

Financial pitfalls are easy to miss but can slow down your financial progress. Being mindful of them helps you avoid them.

What are other financial mistakes that can cause a person to take on more debt?

4 Simple Reasons why you need a Financial Plan

Imagine you got angry at home and you decide to meet your friends at the tennis court to let out some steam. You reach for the car keys, get in the car and start the car. The problem is you do not know how to drive and you do not have directions to where you are going.

 That is what not having a financial plan looks like. 

1. Setting goals is important because it helps you map out a plan. Two emotions drive most of our financial decisions: GREED and FEAR. GREED because we want more or FEAR because we are afraid of losing or missing out. Without a plan, your financial decisions will be based on 1 of those 2 emotions. Because we want our financial decisions to be well thought out and not based on emotions, we need a financial plan.

2. A financial plan keeps you focused. Setting goals helps fuel your ambition. When you write down your goals, it keeps you accountable and inspires you to aim for those things you never thought possible. 

3. Your financial plan propels you forward. There are days when you will not feel like working on your goals, or your focus starts to shift. A plan can act as a visual reminder to keep you pushing forward and serve as motivation on those days.

4. It converts your dreams into reality. Turns large dreams into smaller more achievable stepping stones. This is because it helps you develop actionable steps you need to take to make your dreams come true.

These are 4 of the main reasons why you should get a financial plan before engaging in any financial undertaking.

5 Important Reasons Why You Need a Budget

Aside from putting you in control of your money, there are 5 other important reasons why you need a budget. These include:

1. Creates a Savings Plan. A budget when done correctly, tells you how much money you can afford to save each month. It is important to take the time to learn how to budget, because you will be creating a solid foundation upon which you can build wealth.

2. Creates a spending plan.You are able to deduce from your income, how much money you have available to spend. Your budget is your guiding compass for how you should spend your money. Without which, you easily get lost financially.

3. Keeps track of how money is spent. Monitoring your budget and reviewing your spending regularly ensures that you are being mindful about the way your money is spent. If you determine that you are spending more money than you would like to, there are definitely things you can do to save some money.

4. Prevents impulsive spending. Budgeting prevents you from utilizing your money on unplanned expenses. Due to the fact that you have a plan for all the money that you have coming into your home, you are less likely to indulge in unplanned expenses.

5. Puts you in control of your money. The great thing about the budget is, you are in control of your money.This allows you to prioritize the things that are most important to you.

Your budget is flexible and is meant to guide you. It changes as your financial needs change.Schedule time to regularly review your budget and make adjustments as needed.

The 3 Best Budgeting Apps

Budgeting does not have to be hard.
Using budgeting apps to make your budget, track your expenses, and monitor your progress can help you reach your financial goals faster.
As an added benefit, having your budget readily available;

• Is great for financial planning.

• Helps couples who are budgeting together to stay on track.

• Is helpful for tracking expenses.

When you start to budget, we encourage you to handwrite your budget so that you can get into the habit of tracking your expenses and being intentional with creating your budget.

3 of the best budgeting apps we have used include:

1. Mint : This personal finance application gives you the option to keep track of spending, create a budget, and work on monitoring your credit score. You can link your bank accounts and it automatically tracks your expenses. Mint allows you to track and plan your expenses in one place. The Mint app is completely free and available for both iOS and android devices.

2. Every Dollar : Allows you to create a monthly budget and track your expenses. The free plan requires that you manually update your budget, while the paid plan allows you to connect your bank account to the app so your items on your budget are automatically updated.  An added bonus of the Every Dollar App is that it gives you recommended percentages for each of the 11 categories in your budget, there is flexibility to adjust these percentages to reflect what is most important to you. There is a free plan and a paid plan. Every Dollar App is available for both iOS and android devices and it syncs across your devices.

3. You Need A Budget(YNAB) : Helps  you build a budget suited to your lifestyle and tracks your expenses from your bank accounts. You can also make adjustments to your budget as needed. It also allows you to set goals for each item on your budget. It breaks down your expenses into 5 categories : Immediate Obligations, True Expenses , Debt Payments, Quality of Life, and Just for Fun.  The annual plan is $83.99 but you can try it out free for 34 days. YNAB is available for both iOS and android devices.

The best part of using budgeting apps is that it is easily accessible on your phone.
When your budget is always with you, you can easily double-check your spending, thus moving you closer to achieving your financial goals.

5 Ways to Improve Your Finances in 2023

The past few years have made people a conscious a their finances. So it is no surprise that more people are looking for ways to improve their finances in 2023

A readiness to improve your finances is the first step. To have lasting results, will require consistency and dedication.

Here are 5 easy steps that you can take to improve your finances in 2023.

1.Set financial goals and map out a plan.

Imagine you decide to meet your friends to hang out. You reach for the car keys, get in the car and start the car. The thing is you do not know how to drive and you do not have directions to where you are going.

 That is what not having a financial plan looks like. 

• Setting goals is important because it helps you map out a plan. A plan identifies where you are on your financial journey and what steps your need to take to get to the next level.

• A plan keeps you focused and fuels your ambition.

• Your financial plan to improve your finances will propel you forward. There are days when you will not feel like working on your goals, or your focus starts to shift. When you have a written plan, it acts as a visual reminder to keep you pushing forward and serve as motivation on those days.

• Your plan converts your dreams into reality.

2. Budget.

A budget is a foundation for building wealth.

• A budget helps you reach your financial goals. Helps your track your money and protects the money you already have saved up.

• A budget gives you a plan on how to spend your money . With a budget, you are able to tell your money what youwant it to do for you. YOU are in charge!

• It is important that your create a budget before you spend your money.

3. Pay down debt.

Paying down debt frees up money that: 

• Allows you to do the things you enjoy, love and want to do. Some of these might include; spending time with family, taking vacations, or just working fewer hours.

• Increases your earning potential. Paying off debt frees up your income allowing you more money to live on. 

• Reduces your stress. You will have less to worry about and more money to spend doing the things you love.

4. Have your fully-funded emergency fund in place .

An emergency fund puts a road block between you and a financial disaster. 

• It prevents you from going into debt. With an emergency fund in place, unforeseen disasters become glitches not a crisis.

• Consider putting this money into an online savings account  or money market account, where you can access it, without penalty, if and when you need it.

An emergency fund protects your financial plan.

5. Invest.

Before investing, get financially educated. At least know enough to ask the right questions about your investments. This can be done through reading personal finance books, magazines or blogs or by , taking personal finance courses like the Beyond Financial Reset Personal Finance Course. Personal Financial Education is a lifelong process and things are constantly changing so you want to stay in the know.

Lastly, plan to save at least 15% of your gross household income in retirement accounts.

Remember to keep your financial plan simple and easy.
Small, consistent changes, is all it will take for you to get to you where you want on your financial map.

You can do this !  

4 Easy but Effective Ways to Reduce Your Investment Risks

Each of us has different ideas of how we want to live our lives.

For you it may be wanting to spend time with family, travel the world and experience different cultures. For others, it may be wanting to relax with friends  and do nothing.

To be able to achieve the lifestyle you want, you need money, the knowledge to make informed financial decisions and the time to actually live that life.

Investing gives you and opportunity to be able to make money, so you can take off time to live your life the way you want.

All investments carry risks. One thing that should be at the forefront of your mind when you are planning to invest is how you can minimize the risk from your investments.

“All investments carry some amount of risks”

— BFR

To minimize your chances of making harmful financial mistake, you should consider doing these 4 things.

1.   Determine what your goal for investing is.

To meet your investing needs, you will have to figure out;

• What kind of lifestyle you want to live

• How much you need to fund that lifestyle

If you are planning on retiring, you will factor in;

• Where you plan to retire

• How you will continue to take care of your expenses when you stop working

• The healthcare costs you might incur

For example, your reason for investing may be to retire in 10 years so you can and travel the world. Knowing where you will travel to, how much it will cost to travel to those places and how much you will need to have if you do not want to keep working, will help you develop a plan.   

2.   Have an Investment plan

With an investment goal in place, you can move forward with crafting an investment plan. An investment plan helps you make informed investment decisions and is not based on how you are feeling at any given moment.

Your investment plan should take into consideration what your investment goals are, how much risk you can tolerate, and your current financial situation.

To determine how much income you have available to invest, you should start by making a budget. Your budget will guide you as to how much disposable income you have available to invest.

Should you find yourself in a situation where you do not have any money left over after taking care of your expenses to invest, it may be time for a lifestyle change. Find ways to reduce your spending and bring in more money.

• Switch the cable for something cheaper like Roku or SlingTV.

• Buy Generic instead of brand name products.

• Use coupons by searching on sites like Honey to get the lowest price on your purchases.

• Take your lunch to work.

Then redirect the money you save towards your investing goal. Every dollar adds up.

3.   Make use of tax-favored accounts

Tax-favored means that you do not to pay taxes on the profits you make in some cases up to a certain amount. How cool is that?

So taking advantage of this opportunity that the government has given is a great way to jump start your investment.

While there are other types of Individual retirement accounts, the 2 accounts you should consider looking are a 401K and a ROTH IRA.

A 401K is a retirement plan that is offered by your employer, and gives employees an opportunity to contribute a portion of their paycheck in that account. In most cases, the employers match the employees contributions up to a certain percentage 4-6%  sometimes.

So basically it is free money that is being given to you by your employer.  Not taking the match is walking away from free money.

“Not taking your 401K match is walking away from free money”

— BFR

Another retirement savings plan to consider is the Roth IRA. The Roth IRA is a Retirement Savings Account that allows your money to grow Tax-free. So you pay taxes on the money before you put the money, but whatever you make on the after that is yours.

There is a limit to how much you can contribute to your Roth IRA…. Usually, $6000 to $7000 depending on your age, so please consult with your tax advisor.

4.   Diversify your investments

Diversification simply means putting money into different types of investments.

Spreading out investments to reduce risk is putting your money across many companies minimizing your risk should one company be affected by the downturn of the market.

If you have a mutual fund and one company suffer a major decline or loss, some others may not go down as much or may even increase. As such your overall losses may not be as bad minimizing your risk.

On the other hand, if you bought just one stock and it when down 50%, you lost 50% of that 1 stock.

 You can safely invest and live the life that you desire. You just have to take the necessary precautions, do your research and make smart financial decisions. Gaining knowledge is the first and most important step when preparing to invest.

Whatever you decide to do, please consult a financial advisor you trust before making any investment decisions.

How to stop spending: 8 ways to save money

It is very tempting to spend when you are trying to work on your financial goals. With the advent of online shopping, all it takes is a click of the mouse or a swipe of a finger and your purchase is on the way. Many shopping sites are making it very easy to save your credit card information and are using adverts to make their products harder to resist.

The good news is, there are things you can do to remove the temptation and stay focused on your goal.

1. Make a budget before the month ends and before you receive your income and make sure you stick to it.

2. Cancel subscriptions you are not using. The cable that you barely watch or the gym you have been planning to go to are all recurring expenses that steal your income.

3. Unsubscribe from newsletters and emails. Those deals that are delivered in your email are a trigger for you to spend. So why not remove the trigger. If you do not know there is a deal, you will not go looking to buy. A good app to use to unsubscribe is unrolled.me app

4. Use coupons, discount codes and cash back apps to shop. Make sure you are shopping for things that are on your budget. Honey will show you coupons and search other sites for cheaper deals for you. Another site, Rakuten gives you cash back on purchases you make.

5. Use cash. When you use cash, you feel the weight of your spending. Remove your credit and debit card information that is saved online. When you have to input that information every time, it gives you a few extra seconds to rethink your decision.

6. Use a shopping list when you go out grocery shopping and never go shopping when you are hungry.

7. Negotiate your bills with your service providers.Most service providers have loyalty programs for longterm customers or discount programs to keep customers. So before you commit to your next billing cycle, make sure you are asking for a deal. What is the worse that can happen?

8. Plan meals. Planning meals helps you with your grocery shopping and also reduces impulsive shopping. The random trips to the fast food restaurants because you cannot figure out what to cook is $30 extra dollars you have saved. Plus, you can get the family involved and make it a fun, family bonding activity.

Learn to Say No to Your Family’s Financial Request

Learning to say NO is one of the most valuable lessons we have learned on our financial journey.

Although it is a skill that was not easy to develop, it is one we are are very grateful for. Being unable to say No was is one of the factors that contributed to our debt load.

Growing up, we were taught the needs of elders, our family and the community took precedence over our personal needs. Saying No is often times perceived as being selfish, negative or ungrateful. And thus, guilt often sets in when we place our needs before those of others.

Needless to say, as Africans, the love we have for our family can often times lead us to make irrational emotional financial decisions.

The first thing we had to do was admit to ourselves that our inability to choose us over others was causing us financial problems. When we read Boundaries by Dr. Cloud and Dr. Townsend, we realized that sometimes when we say Yes to others , we are saying No to ourselves. By so doing, we are unable to make our dreams possible.

It is our responsibility to say no to the things that are keeping us from our goals and it is our right to say Yes to the life we want to live.

Next we had to find ways to minimize the damage it was doing to our financial life. That meant developing the ability to say no.

Here are 5 tips to help you say NO and protect your financial dream

1. Be honest. Lies can turn to guilt.— “I’d love to help, but financially, this it really not a good time for us”

2. Be direct but polite. Thank the person for the request or for thinking of about you.— “Thank you for thinking about me to be your bridesmaid, I’m unable to make that commitment right now. If things change, I’d keep you updated”.

3. Do not prolong the request. It will increase your stress and make the situation more awkward. ——Don’t tell them “ I’d think about it” when you do not plan to. Unless you plan on may be talking it over with someone, for instance your spouse.

4. Practice saying No.

5. Consider your self worth and your dreams with every request. Remember every time you say yes, you are saying No to something else. —— “What a great idea! Unfortunately, my family’s budget is maxed out at this time. Maybe next time.”

Learning to say “No” to others will allow you bring your dreams to fruition. The quest for financial independence should not alienate you from your loved ones; both can co-exist.

Finding that balance can be challenging but it is possible. Find what works for YOU.

Our Reset. Our WHY

In 2017, we did a total financial reset and decided to work towards building the life we have always dreamt of. We were over $300,000 in debt with no house and had two kids we were struggling to feed. Both of us had graduated from school. Jay from pharmacy school and Sylvie from nursing school. We were stressed out, frustrated at the financial mess we had on our hands, and disheartened by the toll it was taking on our marriage.

Where did we go wrong?

As immigrants in pursuit of the American dream, we had worked hard, gone to school, gotten good jobs, yet the American dream was nowhere in sight. What we had instead was a pile of debt; student loans, medical bills, car loans, lots of credit cards and a long list of financial mistakes. What was more, the financial commitments, expectations from our community and the needs of our extended family was getting us deeper in debt. We were barely trying to make ends meet. Struggling to stay afloat, we resorted to shuffling funds from one credit card to another and applying for even higher limits.

And when we thought we were at breaking point; Jay’s income was cut in half while Sylvie was in school amassing more debt through her master’s program.

How were we going to take care of our kids? Put a roof over their heads?

We went into survival mode. We did a total reset. Instead of trying to keep the house from falling by shifting funds from one credit card to another, we decided to start rebuilding from the ground up. This time with a better foundation. We needed a solid plan. Plagued with questions such as; how do we climb out of the financial pit hole we are in? How do we prevent this financial distress from happening? We got to work. Our financial journey had begun. A journey, though challenging at times, has become the turning point of our lives in the US.

When we were $300,000 debt, we were in so much distress and felt frustrated at our circumstance. Sometimes we were angry at each other for not being able to provide for kids or felt disappointed at ourselves for struggling to meet the needs of the family. Many times, on our financial journey, we felt like reverting to our old ways. But in your moment of despair, that is when God sows His seed. And so, it was for us. He reminded us WHY we were on this journey and of the experiences that had led us down this path.We were able to reset our thinking, and with the help of Dave Ramsey we began seeing results.

Though we were able to reset our lives and dig our way out of debt, if God had not ordained it so and poured out His blessing on our lives, we would not have been able to budget and execute our plan.Now, when faced with challenges, our faith in God, believe in our dream and each other keep us moving forward. We have learnt through all of this that no experience is wasted. Whatever you go through, there are lessons to be learned. Do not let your past experiences define you. Use your failures, mistakes, and setbacks as building blocks for the dreams you want to create.

Don’t give up. Set your financial goals, develop a plan, put in the required work and soon you will see results.

You’ve👏🏻 got👏🏼 this!👏🏽