Recent high school graduates face many challenges when planning to enter college. One of these challenges is determining how to manage their finances when applying for financial assistance. Creating and maintaining a budget can allow for the successful management of an individual's finances while in college. Budgeting can help reduce the stressors of academic life and enable them to achieve their financial goals. Budgets are specific to everyone. Here are some tips for recent graduates to prepare for college. How to Borrow Smart for College When borrowing money for financial aid, it's essential to understand the difference between federal and private loans. Federal loans have a lower fixed interest rate and have better repayment terms than private loans. These can include your Stafford, Perkins, and Direct Plus loans. Alternatively, private loans may have higher interest rates that are variable and are based on your credit history. These loans may not offer repayment assistance and can require a cosigner, like a parent. If loans are needed, only accept the minimum amount required. See my feature in Dear Graduate, Here’s What to Know About Your Money. Pay on Student Loans While Enrolled If you have additional funds available while in college, pay the interest as you are enrolled. Paying the interest will reduce your future monthly payments when you graduate or enter the repayment period. Understanding loan repayment options, when payments are due, and where to send your payments can prepare you to start reducing the balance on your loan. In addition, developing a budget while in college will allow you to pay, at the minimum, the interest on your loan and help you save towards future financial goals during and after graduation. Establish a College Budget In 5 Money Lessons for New College Graduates, I discussed ways new college graduates could begin budgeting and saving. Here are some more valuable tips. Establish a budget when the first paycheck is received. Set up automatic savings deposits through payroll deduction. Pay more than the minimum on student loans and credit card payments. Pay off credit card balances in full monthly. Use a debit card to pay for purchases under $100. See Back to School Budget Planner to find additional ways to save. Using these valuable tips and suggestions can create a successful money management roadmap.

When saving for retirement, each generation has challenges and advantages. Challenges young adults face are student loan debt, lower-income levels, childcare expenses, homeownership expenses, and a lack of financial knowledge. These factors can decrease the funds available to set aside for retirement. These expenses are also current and need to be paid immediately, which leads to retirement savings being less of a priority. Generation X are mid-life individuals who are nearing retirement in a few short years. To eliminate income inequity in retirement, it's essential to start planning now. How Millennials Can Plan for Retirement Younger adults should focus on increasing their financial knowledge to secure their financial future. It’s common for younger adults to graduate college, gain employment, and not understand the benefits offered by their employers. Inquiring about the retirement plan options, evaluating plan documents, and the risks and benefits of the funds within the plan should be a top priority. Understanding these factors can help make sure that you are educated on the benefits available to you. Finally, taking advantage of the employer matching options at the beginning of your career can help you build a secure retirement. The matching contributions in retirement plans are free money and beneficial to growing a retirement fund. See my feature in Top 10 Things Every College Grad Should Know About Money. How Generation X Can Plan for Retirement Individuals in their 40s are nearing the age of retirement in a few short years. During this time, you should attempt to boost your retirement savings. You can accomplish this by maximizing the retirement contributions offered by your employer. If you receive an annual pay increase, adding another percentage to your contributions could be used to make sure you build a financially secure retirement. The most significant factor is to take advantage of the employer’s matching contributions. If your employer matches the first six percent of retirement contributions, take advantage of the free money offered to you. Saving For Retirement: Tips to eliminate retirement income inequity Eliminating Your Mortgage for Retirement Individuals in their 40s should focus on debt elimination. Most people in their 40s have children who are no longer in daycare and tend to have steady income increases. If either of these is the case, you can start focusing on reducing or eliminating their mortgage payment. Here are some tips to make this happen: Evaluate your monthly income and expenses. Determine where a surplus can be applied to the principal of your mortgage. Pay an extra dollar amount to the principal of your mortgage. These steps will allow you to cut your monthly interest payment and knock years off a 30-year mortgage. See my feature in Money Advice for Your 40s in Accredited Debt Relief.

Saving for retirement may not seem like a priority when you are young. When college students graduate, they tend to be ready to conquer the world, but are they ready? Not possessing adequate financial knowledge about preparing for retirement after college can lead to a failure to invest in a secure retirement plan. Before starting a job after college, millennials should educate themselves on the barriers to retirement and ways to be financially ready to retire. Learning from Your Retirement Planning Mistakes Most millennials in their 30s have had adequate time to prepare and learn from the mistakes of not investing in their retirement early. Not investing early has caused some millennials in their 30s to have to catch up and recover from not investing in their 20s. Still, it will allow them to have a significant financial cushion in place at retirement age. However, 20% of younger millennials in their 20’s may not have adequate funds for retirement. Younger millennials want to chart their path in life. They may not follow the traditional method of staying in one profession throughout their lifetime and do not seem to value loyalty to a specific employer, nor do they want to commit to one career for the long term. This method of professional employment may not enable them to become “vested” into an organization’s retirement plan or increase their income level consistently due to “job hopping” and constant career changes. See Millennials May not be Retiring Soon—But They are Already Planning for it. Barriers to Retirement One of the most significant barriers preventing millennials from being financially ready to retire is employers shifting from pension plans to defined contribution plans or 401(k)’s. The shift to defined contribution and 401(k) plans compels an individual to remain with a company long enough to become vested in a retirement plan. Ultimately, not contributing to a voluntary retirement plan offered by employers is like throwing money down the proverbial drain and can lead to reduced funding availability in an individual’s retirement years. How much are you going to need for retirement? Steps to Prepare for Retirement To be financially ready to retire, millennials should take the following steps: Educate themselves on the retirement plan offered by their employer (vesting, funds, and fees). Invest a percentage that takes advantage of the employer contribution match. If you are self-employed, seek out a retirement plan contribution option. Evaluate their monthly income and expenses to determine where to find more cost savings to invest in retirement. See my feature in Top 10 Things Every College Grad Should Know About Money. Preparing for your retirement in your 20s is the best way to maximize the benefits offered by your employer. Take advantage of the offerings as soon as possible and continue to increase your contributions as your financial situation changes. It’s never too late to invest in yourself.

Sometimes in your life, managing your finances may not be the easiest thing to do without help. There are many resources available on the market, and the options of where to turn can be overwhelming. I've read many financial books, but there are three that have benefited me the most. The books are "Profit First" by Mike Michalowicz, "Rich Bitch” by Nicole Lapin, and "Rich Dad Poor Dad" by Robert Kiyosaki. These books have allowed me to determine that we all make mistakes when managing our money and that you can accomplish your financial goals by communicating with others. As an Amazon Associate, I earn from qualifying purchases. 1. 'Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine' by Mike Michalowicz Mike Michalowicz educates entrepreneurs on how they can realize how to make their businesses profitable. Most business owners make money and spend it on other expenditures without paying themselves or saving money for the future. Mike discusses the profit first method of keeping a small income in separate business banking accounts for profits, your salary, taxes, and an expense account. Establishing individual accounts using the profit first method allows you to realize that you have a profitable business, take a salary, and cover business expenses. 2. 'Rich Bitch: A Simple 12-Step Plan for Getting Your Financial Life Together...Finally' by Nicole Lapin "Rich Bitch” details Nicole Lapin's journey through life and the challenges and opportunities she faced. It includes a 12-step plan on how to get your finances in order. However, you do not have to follow the plan in order. Everyone's financial situation and journey are different, so you can pick a step in the plan and tailor it to your specific needs. As I mentioned in 10 Financial Books That Will Change Your Life (and Finances), "Rich Bitch” details real-life situations that can help you change your life. Tips For Increasing Your Family’s Financial Wellness 3. 'Rich Dad Poor Dad' by Robert Kiyosaki "Rich Dad Poor Dad" by Robert Kiyosaki details pivotal advice that he received from a rich and poor dad's perspective. Gaining financial advice as a child can help your child build a solid foundation for the decisions they will make throughout their life. It will also allow them to align themselves with like-minded individuals that can aid them in achieving their goals. In this book, one of the critical items that stuck with me was Robert's advice to evaluate who you align yourself with. If your friends' lives or actions don't align with your future goals, you should reevaluate your friends. Then, you can influence your friends' lives and educate and influence them to make sound financial decisions, or you can change your friends entirely by moving on in life. Ultimately, if you can't change your friends, you should change your friends. See Where Americans Get Financial Advice Understanding the basics of financial literacy is essential to getting your finances in order. These two books can guide you in achieving your financial goals and can be used as a resource to stop making the same financial mistakes. Once you understand the basics of personal finance, you can use the tips offered to increase your wealth and accomplish your financial goals. Bridging the gap between where you are and where you want to be is the desired outcome.

Have you ever looked at your bank statement and realized that you earned a whopping one dollar in interest from your bank? Or are you charged ATM fees, overdraft fees, or fees for not having $500 in your checking account? These fees might signal that it's time to reevaluate who you bank with. I switched my banking institution when I realized that I was receiving minimal benefits from the funds in my savings account. As a result, I researched other banks and the savings account benefits. Investigating multiple banks allowed me to compare the pluses and minuses of each institution's offerings. Typically, the bank is not giving you money, but you give the bank your money to hold, protect, and ultimately increase it. See How one simple decision could save you $750 a year. Reasons People Look for New Banks There are other reasons you may be considering a new bank: The bank does not align with your financial goals The bank does not have a local branch in your area Customer service and financial guidance is non-existent Finding a bank you are comfortable with and have easy access to via the internet or locally can create a sense of solace when protecting and growing your money. How to Find a Better Bank When looking for a better bank, you should evaluate the fees associated with the account you are trying to open and if the bank can grow with you as your financial situation changes. See my feature in 10 Steps to Finding A Better Bank. Following are some recommended questions to ask: Is a direct deposit required? Are there ATM fees, and if so, do you offer ATM rebates monthly? Is a savings account required to have a checking account? Is a minimum balance required to open and maintain the account without fees? How Banks Actually Make Money Did you realize that if you are required to keep a minimum balance of $500 in your account, you may be charged fees that penalize you for not having the available funds? Understanding the minimum balances required and any other benefits the bank offers can create an informed banking relationship. Finding Optional Banking Products The basic checking and savings account is what most consumers start with. However, when looking for a good bank, you should evaluate other investment products available at the bank. For example, does the bank only offer basic checking and savings, or does it offer products like Certificates of Deposit or high-yield savings accounts? Banks that provide expanded options can guide you as your financial situation changes and eliminate the need to switch banks in the future.

Let’s face it, talking about money isn’t always the easiest thing to do. To tackle these sometimes-difficult conversations, the hard part is scheduling a time to talk. When you are in a relationship and your finances are intertwined, having conversations around money can let your partner know your values or money worries. Talking to your significant other about money can help develop your shared goals and identify where your goals diverge. Write Down Your Savings Goals One tactic my spouse and I used when we were dating was to write down our goals individually. We then came together and evaluated where our goals aligned. Next, we planned to budget for our shared goals and our individual goals. Our goals consisted of short-term, medium-term, and long-term goals. Our short-term goals listed things we wanted to achieve in a few short months. Our medium-term goals consisted of things we wanted to accomplish within one to two years. Finally, our long-term goals listed everything we wanted to achieve in the future, say five to ten years. How to Have Family Money Conversations Find Ways to Save When you establish goals, the next step is to find ways to save. Here are some ways to save: Identify skills you have that can make money (cooking, yard work, car repair) Sell items that are sitting in an attic or spare room Pick up a part-time job (grocery delivery, dog walking, babysitting) Cutting back on expenses (eating out, cable, unused subscriptions) See how my husband and I tackled our finances in 9 Secret Habits of People With Credit Scores Above 800 Monitor and Update Your Plan It’s essential to monitor your financial plan. It should not be a set it and forget it plan. You should update your plan as you receive pay increases, have children, or buy a new/used car. If you receive a pay increase, think about saving more in your current situation. Ask yourself, should we increase our retirement contributions or adjust our tax withholdings? If you need to pay for daycare, your savings goal may need to be adjusted to reflect these life events. You may even have to think about setting up a 529 savings plan for your new bundle of joy. Continue the Conversation The conversation should continue as time goes on. A tip could be to set a date on your calendar to review your budget on a quarterly or semi-annual basis to ensure that your saving goals are on track. If your budget is not on track, this would be the time to try again next month to help you refocus and save. Focusing on positive money habits as a couple is the key to making sound financial decisions and financial stability.

Have you ever woken up on Monday morning to prepare for work and stood in your closet deciding on what to wear? Did the disorganization of your closet cause disorganization of your mind? This can sometimes start the day and the week off with a negative mindset. Disorganization and clutter can also bleed into other areas of your life. Having an organized closet can lead to other aspects of your life becoming organized as well. Organzing Your Closet Organizing your closet can allow you to start the day and week off with a positive mindset. Sorting your clothes by color, season, and apparel type can make it easier for you to decide what to wear for that day and week. It can also eliminate some of the clothes you don’t wear or will never wear again. This can create space in your closet that wasn’t there before and lead to insight into other things in your life that can be eliminated. My closet is organized by color, clothing type, and season (shirt, dresses, pants, etc.). I have my short sleeve shirts, long sleeve shirts, coats, and sweaters in separate areas. Organizing my closet this way makes it easy for me to pick out an item when I’m on the go and helps to eliminate searching for that special shirt or dress that I want to wear. This decreases the time that I would spend standing in my closet figuring out what to wear. See my feature in Spring Cleaning 101 on 21Oak. Decluttering Your Closet As the seasons change, I also declutter my closet. To accomplish this, I turned all my hangers backward in my closet. If a hanger is not turned around after six months, I donate or sell that item. This allows me to provide a service to the local community by giving gently used items to those in need. I also sell some of the things and make a profit. You can find online companies or local businesses that will pay you for your gently used items. Find out how I organized my closet at M.M. Lafleur: How to Organize Your Closet, According to Women Who Really Have Their Lives Together. The Importance of Decluttering Organizing and decluttering your closet can lead to positive influences on other aspects of your life. When decluttering your wardrobe, you can see the benefits received from donating or selling your clothes. There is that intrinsic reward received from providing something of value to others. You can also receive a monetary increase by selling your clothes on various levels. You receive money by selling your clothes; you also save money by decreasing the likelihood of purchasing additional clothing items. For example, when your closet is cluttered, you may not find what you’re looking for and buy another “blue shirt.” Now, I know you look your best in your signature color, but how many of those “blue shirts” do you need? How Organization Can Impact Your Life The bottom line is that the benefits of organizing your closet can start your week off with a positive mindset and lead to cost savings in the future. It can also lead to you organizing your desk, your car, and even your kitchen cupboards. Next, you can tackle organizing your budget. An organized budget can lead to an organized life. Let me know if this tip worked for you, the cost savings you noticed, or if you have other suggestions on how you manage your life.

Are you looking for some creative ways to save on groceries? There are times when we struggle to figure out what's for dinner or who's going to cook dinner. Make grocery shopping and meal planning a little easier by making it a family affair and planning family meals ahead of time. Let's dive deeper into how you can accomplish making your life a little easier. As an advertiser, this post may contain affiliate links. Plan Ahead for Grocery Shopping Planning your grocery list before you go shopping saves you time and money. Preparing the grocery list can be accomplished in several ways. One way is to make grocery planning a family affair by sitting around your table and asking your family what they would like for dinner that week or month. This helps ensure everyone has a say in what's happening at the dinner table and makes planning meals fun. As the meal ideas come together, you can see what you need to purchase for your weeknight dinner creations. Saving Money On Groceries Make An Organized Grocery List The weekly list is created; look in your pantry, freezer, and refrigerator to see what you already have available. Inventorying your grocery items can decrease the need to buy additional items that you may already have. Next, when making your grocery list, organize it by category: frozen foods, produce, dry foods, canned foods, etc. This can save time and money in the grocery store and avoid impulse buying when browsing the aisles and searching for items. You can find free grocery templates online at The Grocery List Collection or write your grocery items on a notepad. Buying Grocery Basics Let's cover the basics of food purchases. The central part of most meals is protein. However, the staples are also essential because they can stretch the meal, make it more filling, and staples have a longer shelf-life. Things like pasta, rice, mashed potatoes, and muffins can be used as fillers and are not expensive to purchase. These can be bought in bulk and used on nights when you need a quick and easy grain at mealtime. Shopping for Vegetables Vegetables are also cheaper to buy when purchased frozen instead of fresh. Fresh vegetables have a specific shelf life and need to be used within days to weeks of purchasing. Frozen vegetables can be used periodically, and the remainder refrozen for future meals. However, if you like fresh vegetables in your diet, you may be able to find cheaper produce at your local farmer's market. The key is to go when the sellers try to go home and offload their products at the end of the day. Want to work on your green thumb? Try growing your vegetables. This is a great family or individual activity, and you reap the benefits of gardening. To me, it seems that food tastes better when you put in the work to grow it and cook it. Determine Your Shopping Method In-Store Now that your list is complete determine if you want to go into the grocery store to shop or if you want to use one of the grocery apps to pick up your food or have it delivered. If you shop for items in-store, stick to your list and try not to get things that are not on it. An important fact to mention is that the items in your grocery store at eye level are the ones retailers want you to buy the most. Retailers pay prime for eye-level shelf space, so look at the lower level to see off-brand product price savings. If you look up, you will see the organic and more expensive products for purchase. So, how do you get out of being caught in the shelf placement battle? You can shop for items placed at the end of the aisles for healthier, low-sodium, and unprocessed options. Home Delivery The easiest method is home delivery. Using a grocery app to pick up your food from the grocery store allows you to stick to your budget and pick up your food on the way from work, church, or any other activity you have throughout the week. It's convenient; you don't overspend, you stick to your set budget, and you can save time and gas money. Using a grocery app also lets you preview past purchases that are a staple in your family's diet and makes grocery shopping a little easier. Meal Delivery Service - Dinnerly There are instances when you may be short on time and just don't have time to plan a meal. Meal delivery services are a quick and easy way to reduce your eating out budget and add a bit of variety to your meal planning. Most deal delivery services like Dinnerly are affordable when you eat at least two meals a day at home. For a family of three, you could spend $15 per meal as opposed to $15 per person with fresh food delivery. See Top Tips for Saving Money on Your Online Grocery Order Small Changes, Big Savings These small changes can result in significant money savings that can reduce other debt you may have. Setting a budget for groceries in advance and planning your weekly and monthly meals can decrease what you spend on groceries and reduce your trips to the grocery store. Remember, grocery shopping technology is changing how the world operates and can benefit you on many fronts.

(Photo by Aaron Burden on Unsplash) When saving for retirement, knowing where to start is not always easy. The myriad of retirement plans available can be confusing. If you don't have a representative who can guide you and explain the funds and fees within the retirement plan, you may give up and walk away. But wait! When you walk away, you are giving away free money and delaying your savings for retirement. So, how do you start saving for retirement? You start saving for retirement by investing in your employer's plan as soon as you are eligible. Before becoming eligible, research and educate yourself on the funds within the plan and the fees associated with that plan. Most employers will put your retirement savings into a Target Retirement Fund if you do not make an election. This could be your most secure option until you can research the available funds. However, don't stop there when determining the best return on investment for your retirement fund. How to Become a 401(k) Millionaire See my feature in How To Make Yourself a Retirement Millionaire. Learn More about Retirement Planning Here are some things that you can do to educate yourself on your investment options: Talk to a financial advisor. Decide your risk tolerance (stocks versus bonds). Call the funding organization or visit their website to compare the fund options. After determining your risk tolerance and selecting the funds you want to invest your retirement savings in, INVEST in your future. The most crucial step is to act as soon as possible. Continue your education using the Retirement Planning Guide as I answer the most common retirement financial concerns. Investing Early Investing early will give you the best return on investment when you reach retirement age. If your employer offers a matching contribution, you reap the benefits of the free money received by the plan. Yes, I said free. When employers offer matching contributions to your retirement plan, they give you free money to invest in yourself. You also reduce your tax rate yearly because your money is in a tax-deferred savings plan. Now, how bad could a lower tax rate be? Learn more about reducing your taxable income from the Financial Industry Regulatory Authority. Growing Your Retirement Savings Now that your retirement fund has been created, how do you continue to grow your retirement fund? You can continue to grow your retirement fund by increasing your retirement contribution percentage or dollar amount whenever you receive a pay increase. Even increasing your contributions by 1% annually can add to your long-term savings, and you may not notice the difference when receiving a pay increase. Also, as you pay off debt and find additional funds available in your bank account, consider increasing your retirement contributions. The return on investment you receive from your retirement fund will exceed the interest received from diverting the funds into a savings account. Your retirement plan could contain $1,040,106* at the age of 65 if you start investing at 20 with a starting annual salary of $30,000. Yes, you can become a 401(k) millionaire! Calculate your options here at Bankrate.com. This was calculated with a contribution of $1,800 per year and a current 401(k) balance of $0, 2% annual salary increase, and a 7% annual rate of return. The plan has you contributing 6% of your annual salary up to the IRS annual maximum of $18,000 and an employer match of 50% of the 6% contribution.* Bankrate.com