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 !  

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!👏🏽 

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 unroll.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 give you coupons and compare other sites for cheaper prices for your purchases. 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

7. Negotiate your bills with 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.

529 Plan

𝐌𝐚𝐤𝐞 𝐠𝐫𝐚𝐝𝐮𝐚𝐭𝐢𝐨𝐧 𝐬𝐨𝐦𝐞𝐭𝐡𝐢𝐧𝐠 𝐭𝐨 𝐥𝐨𝐨𝐤 𝐟𝐨𝐫𝐰𝐚𝐫𝐝 𝐭𝐨! 

The 529 plan is an investment vehicle used to save for education and education- related expenses .

Benefits of the 529 plan

It is a tax -advantage account

Can be used for education related expenses for any age: elementary through college level and beyond 

It is transferable to other siblings and relatives( in case one decides to skip college) 

Owner controls the account not the beneficiary

Can be used for tuition and other education-related expenses such as housing 

Accounts owned by the parents have very little impact on financial aid so child may still qualify for financial aid 

Disadvantages

Limited investment options

Has associated early withdrawal fees

May have a short investment window if you start late

𝘔𝘢𝘬𝘦 𝘺𝘰𝘶𝘳 𝘣𝘦𝘯𝘦𝘧𝘪𝘤𝘪𝘢𝘳𝘺 𝘦𝘹𝘤𝘪𝘵𝘦𝘥 𝘵𝘰 𝘵𝘰 𝘨𝘰 𝘵𝘰 𝘴𝘤𝘩𝘰𝘰𝘭. 𝘉𝘳𝘦𝘢𝘬 𝘵𝘩𝘦 𝘣𝘰𝘯𝘥𝘴 𝘰𝘧 𝘴𝘵𝘶𝘥𝘦𝘯𝘵 𝘭𝘰𝘢𝘯𝘴!

Disclaimer: Consult a Financial Advisor on whether to, and how to implement investment advisory services.