Personal Financial Wellness

A Mediaplanet Guide to Becoming an Expert On Your Personal Financial Wellness Journey

Personal Financial Wellness

Tori Dunlap Tori Dunlap Wants Women to Embrace Their Power Through Financial Feminism Personal Loans: What You Need To Know

Take Advantage of Low Interest Rates With A Fixed-Rate Loan

MARCH 2022 | FUTUREOFBUSINESSANDTECH.COM

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Steps to Get out of Debt in 2022 You have several options to choose from when getting out of debt. Each option has its own pros and cons you should understand.

First-Party DIY Debt Reduction Options You have three basic options to accelerate your debt repayment on your own: 1. The Debt Avalanche: Applying any extra money to your debt with the highest interest rate every month while making minimum payments on all other accounts.

2. The Debt Landslide: Applying an extra payment to the account you opened most recently.

3. The Debt Snowball: Applying an extra payment each month to your account with the lowest balance.

Second-Party Debt Reduction Options Working directly with your creditor does not have to be the only option. You have the option of inquiring about the following concessions: 1. Lowering Your Interest Rate.

2. Reducing or Eliminating Your Fees.

3. Forgiving Some of Your Principal Balance.

Third-Party Debt Reduction Options You can find assistance from debt professionals that offer three basic services.

1. Debt Management Plans (DMPs): Non-profit credit counseling agencies offer DMPs by working directly with your creditor to lower interest rates, waive late fees, and arrange a new debt repayment agreement.

2. Debt Settlement: Third-party settlement companies offer to negotiate your debt balance on your behalf (see second-party option number three).

3. Bankruptcy: Whether you file for Chapter 7 (liquidation) or Chapter 13 (repayment), you may be able to rebuild your credit score to a good rating within two to four years with focused effort.

Todd Christensen, AFC, MIM, MA, Money Fit by DRS

@MEDIAPLANETUSA

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Debt Repayment Options – One Size Fits All? Being in debt can be overwhelming. As you start to think about the best ways to pay off debt, be aware of available options.

How much debt do you have? Are you able to make your monthly payments on time, or do you wind up paying late fees? Have you fallen behind and stopped making payments altogether?

If you have private student loans, contact your lender for refinancing options. For federal student loans, check with your servicer to learn about your options once repayments restart in May 2022.

Mortgage problems? Can’t make your car payments? One option is to see if your mortgage/ car loan can be refinanced.

Credit card debt, payday loans, medical debt, and other unsecured debt? Here, in no particular order, are four options that folks typically look at for help with their debts: Debt consolidation loans These are personal loans used to repay one’s unsecured debts.

You’ll make monthly payments until the loan is repaid. While interest rates are low, the rate

Balance transfer credit cards These cards could be a great way to “borrow” money at low interest rates for a specific period of time. The rate charged on these credit cards will likely depend upon one’s credit score. There may also be a balance transfer fee.

Know the terms of the balance transfer before taking advantage of this option.

with your creditor(s) to repay a percentage of your outstanding debt. You can do this yourself or you can enlist the help of a debt settlement company. Know that whether you do this on your own or with help, you may incur a tax liability on the portion of your debt that was forgiven. Unlike with a DMP, entering into a debt settlement plan will harm one’s credit score as payments to creditors stop while consumers save to make the “settlement offer.”

Fees charged by these companies, while regulated, are typically higher than those charged by credit counseling agencies and are either a percentage of the amount of debt enrolled in a plan, or a percentage of the amount of debt saved. And if you opt to enlist help, NEVER pay fees upfront.

No matter what your situation or what you ultimately decide to do, the very best first step to paying off your debts is for you to construct a budget. Your budget is the best snapshot of your overall financial situation at a given point in time. A good budgeting tool is always useful. The Financial Counseling Association of America (FCAA) has a Debt Decisioning Tool that is free of charge.

After you’ve answered questions about your monthly income and expenses, the tool will analyze your responses and give solutions best suited to your particular situation. You get to decide what your next steps will be.

Hopefully your budget and the above suggestions will help guide you to making the wisest choices you can for yourself. n

Debt settlement A plan whereby you negotiate

Lori Pollack, Executive Director, Financial Counseling Association of America (FCAA)

you qualify for will be based upon your credit score and other lender specific requirements.

Non-profit credit counseling Besides helping you create a budget and offering free financial education, a non-profit credit counseling agency can enroll you in a debt management plan (DMP), if you qualify. This is an individualized plan created to help you repay your unsecured credit card debts in full (in monthly installments over a five-year period). There are no tax liabilities, but there could be fees paid to the credit counseling agency (which are typically low and regulated by states that regulate credit counseling).

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Publisher David Wagner Business Developer Katie Konf ino Managing Director Jordan Hernandez Lead Designer Tiffany Pryor Designer Kayla Mendez Lead Editor Jon Adams Copy Editor Kandlyn Collins Director of content and production Jordan Hernandez Cover Photo Sarah Wolfe All photos are credited to Getty Images unless otherwise specified. This section was created by Mediaplanet and did not involve USA Today.

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for example, lets you complete the application online, and the loan is usually funded that day — without the back and forth typical of dealing with a bank..

How Personal Loans Can Be a Valuable Financial Tool Personal loans are rising in popularity due to their ease and convenience — here’s what you need to know.

T

he use of personal loans hit an all-time high in 2020, but there is still a lot of uncertainty about the use of this financial tool. While personal loans can be used in a multitude of ways, it’s important to know when the benefits of one outweigh other options and which use cases are best suited for this powerful financial tool.

“Personal loans are unsecured — you can use them for just about anything,” notes Todd Lunsford, president of Fin-tech company Rocket Loans. “They are typically convenient, fast, and ultimately provide the discipline required to pay off the debt in a relatively short period of time.”

Personal loan basics There are specific use cases

where personal loans make the most sense. “We encourage clients to use the right loan for the right purpose,” says Lunsford. “While a personal loan can be used for almost anything, it usually doesn’t make sense to finance something that is collateralized, like a car, boat, or RV.” That’s because personal loans are unsecured (with no assets used as collateral) and generally have higher interest rates than loans secured with collateral.

Personal loans generally offer interest rates between 5 and 36 percent depending on various factors.

But a personal loan makes sense for specific use cases — like debt consolidation or home improvements.

“People can get trapped in credit card debt,” notes Lunsford. “Small, minimum

monthly payments aren’t going to pay down the principal, and credit cards almost always use variable interest rates, so even if you pay each month, the balances increase.” In contrast, a personal loan can give a client the money they need with a fixed payoff schedule.

When to use a personal loan Personal loans make sense for debt consolidation because they come with a fixed interest rate that’s usually less than credit cards, and the specific term (typically 36-60 months) helps pay off the debt in a steady, disciplined fashion.

“A personal loan is a chance to get disciplined about credit card usage,” says Lunsford, although he notes that the key to success is to avoid building up new balances. “And keep

in mind most personal loans have NO prepayment penalties — if you make extra payments or pay your loan off earlier, it will definitely save you additional interest.”

Personal loans also offer advantages for financing home improvement projects.

Because there is no collateral, the loans are separate from your other debts and property, and the fees associated with personal loans are often much lower than other loans.

But one of the most important advantages of a personal loan is speed. “Compared to other options, a personal loan is FAST,” says Lunsford. “In many cases, you can have funds in your bank account in the same or next business day as applying.” And lenders make personal loans as convenient as possible — Rocket Loans,

Personal loan benefits Determining whether a personal loan is the right option requires a bit of research.

“Compare the total cost of different loan options,” advises Lunsford. “In many cases, the interest rate on a personal loan seems higher than some options, but a lower rate combined with making minimum payments usually costs you more. It really is the total cost of the loan that matters the most. A good way to determine if a personal loan is right for you is to get a quote for a personal loan — typically, you can obtain a free quote online with no impact on your credit score (please review a specific lenders disclosure about this point to make sure) — reputable lenders will disclose the total cost of the loan, including all interest, fees, and principal payments.”

Lunsford notes that personal loans can be very beneficial in other ways — paying them off can build up your credit score even as you eliminate debt. “As long as you’re using a personal loan responsibly, and are committed to repaying the loan on-time,” he says, “you’re in great shape.” n Jeff Somers

To see loan options tailored to you, visit rocketloans.com

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Financial Independence: It’s Not Just for the Wealthy As you plan for the year ahead, it’s a good time to consider how reaching financial independence fits into your long-term goals.

What is financial independence? Independence means freedom from being dependent and from outside control. So financial independence means just that – financial freedom.

How can you work toward achieving financial independence? The simple answer: have more income than expenses and strategize your savings plan.

Income If you’re living paycheck-to-paycheck, you’re not financially independent – you depend on a job for money. Get a raise or land a new, higher-paying job. Diversify and multiply your active income streams through a second parttime job, freelance/contract work, or starting a business.

Then, plan to generate passive income: e.g., income from investments such as retirement accounts, stocks, bonds, annuities, and real estate investments.

Expenses Minimizing your expenses is the next part of the formula. First, classify your expenses into fixed (rent/mortgage, car payments), periodic (car registration, gym memberships), and variable (groceries, personal care). Then, evaluate how you could reduce them; talk with a tax professional about lowering your tax burden. If you examine your needs carefully, you may be able to eliminate some expenses altogether.

Savings The next step is building up savings. Start saving as early as possible in life and develop a habit to “pay yourself first” — put money in savings before you pay your bills or spend on anything else.

A savings plan has three components: emergency fund, short-term savings, and long-term savings. The emergency fund covers emergencies like job loss or unexpected repairs.

Short-term savings holds money for the fun experiences you enjoy, like vacations or entertainment. Long-term savings is where you set aside money for future investments. That’s how you will fund your sources of passive income down the road.

Vince Shorb, CEO, National Financial Educators Council (NFEC)

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How Traditional Banks and FinTechs Can Help You Manage Your Money Financial institutions can help consumers who are struggling to spend, save, borrow, and plan by focusing on bettering financial health.

H

ow is your financial health?

Chances are it could be better.

According to the Financial Health Network 2021 Financial Health Pulse, more than two-thirds of people in America are still not financially healthy; particular challenges still face women, LGBTQ+ communities, and people with disabilities, while inequities remain by race and gender.

The majority of us are struggling to spend, save, borrow, or plan in ways that allow us to be resilient and seize opportunities over time.

Last year, many people’s financial health actually improved slightly — stimulus checks and other aid from the government helped — but it’s hard to deny that going into 2022 and beyond we could use more help with our money.

We need innovations, and lower fees The good news is that banks — both big and small — are taking steps to keep more money in your pocket. For starters, we are seeing many traditional fees, like overdraft or insufficient fund fees, go away. Those fees have disproportionately hit households least able to afford it. But fees are just the tip of the iceberg.

Personal financial decisions are complex. Should you put money into an emergency sav-

ings account or payoff debt?

Maybe refinance your mortgage?

We need innovative solutions that are specifically designed to help us succeed. One of the most critical financial health needs consumers have is help building savings. In 2021, 39 percent of people did not have enough savings to cover even three months of living expenses. We all know we should save more, but it can be exceedingly hard in the face of mounting bills and stagnant or inconsistent wages.

Banks and Fintechs Take on Financial Health New tech-based banking companies (aka neobanks) and money apps have been stepping up to the challenge. Unlike traditional banks, they have much less overhead so they can innovate quickly. These fintechs are also focusing in specific areas of money management, and using data and algorithms to help you make better decisions (think Netflix recommendations but for your money). For example, some apps can tell you when it’s safe to spend, optimize your saving decisions and build credit. Effectiveness, a non-profit fintech, helps you build financial security.

They launched and tested a savings competition that rewarded users for making progress toward a $500 savings goal. The compe-

tition increased the number of people who saved by 6 percent and increased average savings by $451 over six months.

Many traditional institutions have caught up and are now designing for consumer needs and testing their effectiveness.

A large credit union, recently tested an app feature designed to make saving easy with a group of customers. It lets users easily move money into their savings with one swipe. The credit union found that it helps people with low savings increase their balances by 17 percent on average.

While their solutions are different, one thing that unites these financial institutions — they are putting consumer financial health at the center of their business. Not only that, they are measuring their, and our, success.

We need our financial institutions to make our financial health the key number that they aim to increase. Our ability to manage our money — to spend, save, borrow, and plan in ways that make us resilient and able to pursue our goals — is a critical need that every financial institution, be they traditional bank, neobanks, or fintechs, should be aiming to improve. n

Marisa Walster, Vice President, Financial Health Network

Economic Impact of Pandemic Affecting Financial WellBeing of Many Americans

In addition to physical health and mental health, the financial health of many Americans have been affected by the ongoing COVID-19 Pandemic.

Americans continue to adapt and alter their ways of life to cope with the challenges of the pandemic. Many are leaving their jobs, losing jobs, or enduring underemployment. The disparity in housing affordability is stressing household budgets. Inflation is at a near 40-year high and market volatility tests savings security. Managing financial anxiety remains an ongoing struggle.

More than eight in 10 (85 percent) Americans confirm some part of their personal finances is causing them stress. This comes from the latest poll from the National Endowment for Financial Education® (NEFE®) on

financial well-being that overlaps the pandemic in the U.S. More than half (56 percent) of U.S. adults say not having enough saved is their biggest worry and almost half (44 percent) say their ability to pay bills is causing the most financial stress.

Early in the pandemic, Americans at all income levels were similarly pessimistic about their financial futures.

While this pessimism has improved somewhat, more than a quarter (29 percent) of Americans still say they are “extremely/very concerned” about their financial situation. This sentiment is felt by 27 percent of white/non-Hispanic Americans and increases to 35 percent for Black/non-Hispanic Americans and 31 percent for Hispanic Americans. Almost two-thirds (61 percent) of Americans say they are “somewhat concerned” about their finances.

Even when we’re not under the ravages of a pandemic, far too many people live on the edge of financial fragility.

There is a near 70 percent probability of economic disruption in typical years. Research shows that 36 percent of working adults could not cover the cost of a midsize budget shock of $2,000 within 30 days. Financial fragility affects all ages, genders, and income and education levels.

With COVID-19, we’re listening and reacting to potential risks to our physical health every day. We need the same mindset with our finances. Keeping debt reigned in, building and maintaining strong credit, having adequate emergency savings, and protecting employment offer cornerstone levels of stability. If you’re unable to pay your bills due to job loss, furlough or other reasons, you might negotiate with

your creditors to see what options are available to you. Review your budget for any spending cuts you might be able to make. For debts like auto loans, credit cards or student loans, it may make sense to reach out to each lender to inquire about assistance programs they might have in place.

During the pandemic we’ve witnessed communities of financial professionals, educators and advocates develop strategies to lend a guiding hand to those who need help now — and will continue to need help in the months and years to come. COVID-19 has had devastating consequences on our physical health. Still, we cannot overlook the need to protect our financial well-being. n Billy J. Hensley, Ph.D., President and CEO National Endowment for Financial Education (NEFE)

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Planning Strategies for a Secure Retirement Competent, ethical, expert advice can provide worrying retirees with strategies for a secure retirement and peace of mind.

According to an analysis by Fidelity reported in the Journal of Financial Service Professionals, it will cost a married couple $280,000 to cover healthcare and medical expenses in retirement.

This speaks to the importance to competent, ethical, expert advice in retirement.

Anthony R. Bartlett, ChFC, CASL, RICP, AEP, of Bartlett Wealth Management, in Worcester, Massachusetts, works in partnership with his clients to create a flexible retirement plan, and emphasizes the value of planning to financial success.

Thomas D. Wyatt, JD, CFP, AIF, of Lifetime Financial Growth of Central Ohio, agrees with Bartlett on the importance of planning. He recommends “flooring,” or matching guaranteed income sources, such as funds from Social Security, a pension plan, or an annuity with monthly income needs.

Another strategy used by both Bartlett and Wyatt is called ”bucketing,” or distrubuting money into different buckets. For example, one bucket might be a cash or cash-equivalent account, a second bucket might feature a blended investment portfolio, and a final bucket might be more aggressive investments.

In discussing options for retirement security, Michael J. McGlothlin, CLU, ChFC, CFP, LUTCF, of Ash Brokerage, in Fort Wayne, Indiana, highlights the advantages of annuities. Another essential strategy to retirement success, according to Bartlett, is Social Security claiming decision and working with an advisor to be sure that “thousands of dollars are not left on the table.”

David M. Maola, JD, MBA, is CEO of the Society of Financial Service Professionals, a multidisciplinary community of accomplished professionals whose common purpose is to deliver the highest level of ethical service to their clients.

David M. Maola, CEO of the Society of Financial Service Professionals

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Financial Feminism and You: Why it Should Be Important to Everyone We spoke to Tori Dunlap, the Founder of Her First 100k which advocates for equality across all genders and races in one of the most important sectors of society: financial.

What is “financial feminism?”

Financial Feminism is the advocacy for equality across all genders and races in the financial industry. I like to describe a Financial Feminist as someone who embraces the power they already possess in order to help themselves — and those around them — reach financial equality.

Among other things, this inequality shows up in the “don’t talk about money, it’s taboo” narrative. Telling people not to talk about their salary, their finances, and other money topics is a shaming tactic used to keep women and other minority groups underpaid, under-resourced, and overworked.

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How does gender relate to debt and savings in the United States?

Statistically, women hold the majority of student loan debt in the United States. Add on to that the wage gap (women make 82 cents to their male counterparts and even less if they’re women of color), which directly influences the investing gap.

The investing gap shows that women lose out on almost a million dollars over the course of their lifetimes by waiting too long to start investing. Most women say that the reason they wait is fear and lack of education.

How has the pandemic affected women, especially in regard to finances?

Women have been some of the hardest hit by the pandemic, specifically because women make up a large part of the service industry –– hotels, restaurants, retail, etc.

These industries were the first to shut down and sometimes the last to be able to fully open again.

Then you add on the fact that many women left their jobs to take care of children who suddenly didn’t have a classroom to go to every day, leading to gaps in employment and difficulty finding a job that pays well enough to cover the cost of childcare.

In the United States, women are more likely than men to evaluate themselves as financially illiterate, why?

Running Her First $100K, I hear every story you can imagine, the one I hear the most is the total lack of conversation around money. That and trauma around money, which leads to its own problems down the line.

That’s why Financial Feminism is so important. It’s creating access

for women who have been sidelined in financial conversations.

What services or resources are available to women who feel overburdened and overwhelmed with debt, or who do not know how or when to begin saving money?

Fortunately, there are so many amazing money creators offering financial advice in an easily digestible and highly actionable way. At Her First $100K, we have hundreds of hours of free content both on Instagram and TikTok. We’re releasing a course on Debt Payoff in 2022 and have several other paid courses around beginner finances, negotiation, and starting a business.

I think finding a community like ours is a great first step for many women. You’re so much more likely to actually change your life if you know you have support and high-quality education. n

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chasing dishtowels. Online lending can be particularly attractive when buying a car.

You should be free to choose any vehicle, from any seller anywhere, without liens, titles or restrictions.

Now is the time to lock in a fixed-rate personal loan Interest rates seem poised to rise this spring, as the Federal Reserve Board has indicated.

If you are planning to make a big-ticket purchase or want to pay off debt, it may be an ideal time to investigate and lock-in a fixed-rate personal loan.

Doing so can be particularly advantageous for those with good credit, as it gives them access to funds that can significantly bolster their personal financial wellness.* “Taking out a consumer loan can be a smart financial strategy,” says Todd Nelson,

*Payment Example: Monthly payments for a $25,000 home improvement loan at 6.99% APR with a term of 12 years would result in 144 monthly payments of $257.

an executive with a leading national online lender, LightStream, “If you have plans for a large purchase or project in 2022, it makes sense to plan now for how you’re going to pay for it.”

Is a fixed-rate personal loan the right option for you? Consider these factors:

Does your medical insurance not cover in-vitro fertilization? A personal loan may be available for a wide variety of purposes. And with unsecured financing, borrowers don’t need to worry about appraisals or home-equity requirements.

accrue expensive financing costs. Paying off cards and other debts with a consolidation loan can save thousands of dollars in interest charges and years of payments.2

• Finance what you’d like, for the term you select. Do your research. Some personal loans can be used to pay for just about anything. Planning to undertake a home improvement project? Buying a boat or RV?

• Debt consolidation can reap real savings. Another common use for a personal loan is debt consolidation. According to NerdWallet research, the average U.S. consumer owed over $6,000 in credit card debt at the end of 20211. High interest, variable rate credit cards can

• Shop like a “cash buyer.”

Find an online lender that can deliver funds directly to your bank account, giving you the capability to purchase any item or service associated with your loan’s purpose. For example, a home improvement loan should be flexible enough to use for any renovation expense, from hiring designers to pur-

NerdWallet, 2021 American Household Credit Card Debt Study, January 2022.

2 Bankrate, 5 ways a personal loan could help you save money, November 2021.

You can fund your loan today if today is a banking business day, your application is approved, and you complete the following steps by 2:30 p.m. Eastern Time: (1) review

and electronically sign your loan agreement; (2) provide us with your funding preferences and relevant banking information; and (3) complete the final verification process.

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• Streamlined process that you control. While most of us would prefer not to take out a loan, life can be unpredictable, and a loan can help ease the burden of high or sudden expenses.

Getting online financing should be simple. If your credit is good, leverage it – and snag the cash you need at a favorable fixed rate. LightStream can finance up to $100,000 for practically any purpose, with no fees. With a brief application, approved borrowers can have funds deposited as soon as the day they apply.3 “Look for transparency throughout entire lending process, so there are no surprises later. You should feel confident moving your financial plans forward knowing your funds are in-hand at a fixed rate for your chosen term,” continued Nelson. “If interest rates begin to rise, you’ll be locked in and ready!” n Content provided by LightStream

Find your rate today, visit lightstream.com

Truist Bank, Member FDIC and an Equal Housing Lender. Lending services provided by Truist Bank.

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Prioritizing Financial Wellness Now Makes for a Brighter Future Any plan to improve your life must involve financial stability. The right choices make all the difference.

There’s a clear link between financial and mental wellness.

A stable financial foundation not only alleviates stress, it empowers people to take control and make healthier decisions in every facet of their lives.

That’s why a new survey from CIT Bank (Member FDIC) conducted by The Harris Poll is so encouraging. The poll found that 70 percent of Americans intend to save as much or more money as they did last year, and many expressed a desire to reduce debt, invest more, and control spending.

“Developing healthy savings habits has always been an

important part of cultivating overall financial wellness,” notes Ravi Kumar, Head of CIT’s direct bank. “Especially over the past two years, we have seen the importance of having rainy day and emergency funds to weather the unexpected.”

The power of savings One of the biggest obstacles people face when trying to

establish financial wellness is time and focus. According to the CIT Bank poll, 52 percent of Americans have used various methods to keep their financial goals on track, including using reminders, journaling, and having external motivation (like a savings buddy or accountability partner).

Technology can offer a more effective approach: A savings account with automatic deposits is a powerful way to build the ability to invest in every aspect of your life.

“Developing more consistent savings habits not only helps to save time, but it provides a solid foundation for financial wellness,” notes Kumar. “It is promising to see Americans prioritizing saving and implementing smart saving strategies.”

The CIT Bank poll confirms this, with 88 percent of respondents stating they believed their

savings have allowed them to be more flexible in how they spend their money.

Kumar thinks this focus on saving will improve lives.

“Though the past few years have hardly been predictable, it’s encouraging to see Americans develop more consistent savings habits to save time and maximize returns in their personal lives.”

If you’re interested in learning how a savings or money market account can help you reach your financial goals, visit CIT Bank today. n Jeff Somers

Learn how CIT Bank can work for you, visit www.cit.com

Financial Health?

There’s an App for That The connection between physical and financial health: There’s an app for that. Financial Wellness contributer Bradley Leimer explains more.

Is there a connection between physical well-being and financial health? When we think about physical wellness, we think about what we eat, how much we exercise, how close we are to our ideal weight, and how healthy our body feels.

Increasingly, people have

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tracked health milestones via apps on mobile devices and fitness trackers and wearables that help collect health data for us. But what about our financial health? Where is the app for that, that might help our physical health?

While money stresses have been shown to increase blood pressure and glucose levels, it can also impact your sleep, your work, your relationships, and over the longer term, even how long you live. This is why it’s critical to get help

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as soon as any part of your financial health feels out of control — whether that be because of bad credit, debt, or the inability to save and spend effectively toward a stable financial future.

There is a financial app to improve nearly every area of your financial life, including understanding your credit score and reducing debt; tracking spending; and contacting debt providers or recurring services to help negotiate lower rates or lower monthly bills.

On top of these apps to track your savings and spending, there are an increasing amount of financial technology — ‘fintech’— applications that can help manage your entire banking relationship.

These may offer better rates, more ways to invest in both traditional investments and cryptocurrencies, and help you track and manage your finances in ways that can be both informative, educational, and engaging.

The basis of any journey

toward better financial health is to start tracking your money situation, focusing on improving the areas cause stress in your life, and taking the time to start down the right path.

With a financial app for nearly every situation, now is the time to start improving your financial life.

Your body will thank you for it too. n

Bradley Leimer, Co-Founder, Unconventional Ventures

Financial Wellness Panel of Experts

Bradley Leimer Co-Founder, Unconventional Ventures

Financial Wellness is top of mind for everyone right now. We asked a panel of experts for advice and tips on how to achieve it.

What is your top piece of advice for Americans who have had their short- and long-term financial plans derailed by the pandemic and its impact on the economy?

Bradley Leimer: Never give up hope that the future will be better than today.

While there are plenty of systemic reasons why there are individual and community financial challenges and economic gaps – even beyond this pandemic – our legacy of limited financial solutions to help more people attain financial security is changing.

Marc Russell: My biggest piece of advice is to recalibrate your short- and longterm goals and look at them through what I call the “happiness lens:” What goals make you the happiest? After assessing these goals, try your best to achieve them!

Ravi Kumar: It’s no secret that the pandemic caused changes in spending

Marc Russell Founder, BetterWallet,LLC

and savings habits for most Americans.

A key piece of advice for consumers to get back on track with their short- and long-term financial plans is to create or replenish their emergency savings fund, and ensure they are financially prepared for the unexpected.

Katie Perry: Investing became truly mainstream after decades of being seen as an activity for an elite few. Americans can learn improve their understanding of how our financial systems work and how macroeconomic events like the pandemic impact our portfolios and our wallets.

What advice can you offer people who are looking to improve their financial literacy?

BL: Talk to as many people as you can about their work and what they do, how they became successful, and latch on to the type of work that resonates most with your passion and your purpose. Get involved in your community – both virtual and in person – and learn from everyone around you.

MR: Some of us weren’t taught financial

Ravi Kumar Head of CIT Bank

literacy through our upbringing.

It’s on us to learn about finance and unlearn bad financial habits. If you’re ready to learn, you must start by being intentional with your time.

RK: It is never too early to start learning about finances. Regardless of the time in your life that you decide to commit to financial education, it instills healthy savings habits for years to come. My top piece of advice is to start off small.

KP: A big myth when it comes to financial literacy is that you either have it or don’t. Truth is, financial literacy is a skill, and people at all levels of understanding can benefit from building habits that build their knowledge over time.

What would you say is one often-overlooked component of a good financial plan?

BL: It is said that time is money, but the time that we have is worth more than that – it’s everything we have. No matter what you do in this life, make sure it has meaning for you.

Katie Perry Public.com GM of IR Innovation

MR: People truly underestimate the importance of having a complete budget. Most people have a list of bills, and that’s far from a budget. What if businesses only accounted for their bills (taxes, electricity, and employer salaries), but didn’t account for all the miscellaneous costs of running a business (delivery/shipping expenses, advertising, fluctuating inventory expenses). They’d be in serious financial trouble, right? Apply that to your life.

RK: Automated savings, while it can often seem like a smaller component of a financial plan, is integral to making the process of saving more manageable.

KP: You can’t improve what you don’t measure. Sometimes in our excitement about building a financial plan or getting started investing, it can be easy to jump right to the tactics. Before asking, “What should I have in my portfolio?” ask yourself, “What are my goals one, five, and ten years down the line?” Take stock of your own financial health, and from there, set goals into the future. n

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Building Generational Wealth Many wish to build generational wealth, but don’t know where to start. Read more for tips to make money work for you.

Generational wealth, or the passing of income producing and non-income producing assets to the next generation, can be achieved by making a significant amount of money over a short period of time or making a significant amount of money over a longer period of time, and efficiently passing that wealth to the next generation..

Accounts used to accumulate generational wealth Most get there by consistently contributing to their retirement accounts. Most companies offer what they call an “employer match,” where the company will match your retirement contributions up to a certain percentage.

This key benefit can tax-efficiently accelerate your retirement savings and help you reach your retirement goals quicker. When you retire, your retirement assets (401k, 403B, etc.) can be used for living expenses until the day you pass. Retirement accounts serve as major conduits for generational wealth.

Benefits of Life insurance Life insurance plays a big role in building generational wealth. Life insurance is a contract between an insurer and the insured, where the insurer guarantees a certain sum of money in exchange for periodic premium payments. Life insurance is typically used by families who have beneficiaries who rely on their income to survive.

What most people overlook is one of the biggest tax advantages in the tax code, specifically Section 7702 — the tax-free death benefit. This tax-free death benefit is one of the biggest reasons why families who seek generational wealth have life insurance policies.

At base level, generational wealth comes down to the simple things. Using the right investment vehicles, contributing to those vehicles early and often, and leveraging professionals to help you efficiently transfer your wealth.

Marc Russell is the owner and founder of BetterWallet, LLC. Marc teaches people all around the world how to make money work for them.

Marc Russell, Founder, BetterWallet, LLC

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How To Invest in Your Financial Future “Shark Tank’s” Kevin O’Leary says people should think of investing with a diverse portfolio as a key part of their retirement planning.

Many people think of investing as a rich person’s game, but it should be considered a vital component to anyone’s financial planning.

Kevin O’Leary, the financial guru from ABC’s “Shark Tank,” encourages people to think of investing as a form of retirement planning.

“There’s a difference between saving and investing,” O’Leary said. “Right now, savings accounts give about 0.2 percent interest. Inflation is close to 6.5, so you’re basically being taxed at over six percent in buying power.

You’re losing money each year.”

Smart investing from an early age can bring much higher and more stable returns. “Even if you have an average income and you have the discipline to put money into an index like the S&P 500, over your lifetime you will amass.” Markets may be voliatile, but have shown over long periods

of time to bring stable returns.

“Markets go up and down, but in the long term they have continued for hundreds of years to provide around 6 to 8 percent return compounded, including dividends. You’ll end up with well over $1 million in the bank when you retire at 65.”

A key part of anybody’s investing portfolio today is cryptocurrency, something investors should take seriously and invest in smartly, O’Leary said. “There’s a lot of debate about the merits of cryptocurrencies,” he said. “The best way to get your head around it is think about it this way: Bitcoin is not a coin, it’s software.

You have to treat it as if you’re investing in Microsoft or Google.”

O’Leary believes many people miss out on investing because they aren’t managing their income smartly and therefore don’t believe they have the money to invest. “People tend to not have that discipline and they don’t start at a young age because we’ve done a poor job of financial literacy in this country,” he said.

“When you buy goods or services that you don’t need, you’re essentially killing money. You’re turning it into ghost money. When you kill that money, it can’t compound. It can’t be invested.

You’d spend it on something that you’re going to throw out 36 months later.”

The best way to assess your financial position is to perform a self-audit. “You look at all your sources of income over a 90-day period: your job, your tips, your side hustle, your gifts from other people, whatever it is that brought in income over a threemonth period. Then on another piece of paper with a pencil — you don’t need technology — you simply look at all the expenditures you had during that period: the rent, your credit card bills, your car payments, whatever it is that you’re spending cash on during that 90-day period. You will be stunned to find out that you are spending more than you’re bringing in, even when you’re wealthy.”

O’Leary has invested in services and apps that make financial planning easy. “There’s so many different apps on the market that help you do this on a robo-basis.” Investing apps can also help investors manage the diversity of their portfolio easily, O’Leary said. “I never let a sector become more than 20 percent of my portfolio, and I never let a stock become more than five percent,” he said. “For the majority of people, particularly those in their early twenties, it’s way better to use an app which you can connect to your bank account, transfer 10 percent of your paycheck and let the app do the diversification for you.”

“I’m always looking for innovations like that to help people with their finances.” n Ross Elliott

Finding Relief from Financial Anxiety: Suggestions to Maintain Perspective About Money

Taking aim at potential sources of financial anxiety with meaningful steps is key to relieving pressure and maintaining a firm handle on your finances.

If you’re stressed about your financial situation, covering your expenses from week to week and month to month, your employment status, your health or about what the future holds, you are not alone.

Pervasive feelings of concern, worry, stress, and anxiety have accompanied the pandemic, but meaningful actions are key to relieving

that pressure and maintaining a firm handle on your finances.

Start with some deep breathing Spend a few minutes focused just on breathing from the base of your belly, up, then slowly out. A brisk walk, jog, run, meditation, yoga, or some other exercise also helps relieve stress and reframe your mindset.

Stay grounded by reminding yourself of long-term goals Be mindful that there will be bumps in the road during your financial journey, and take time to review the steps to achieving your long-term goals.

Prioritize what is most important to you financially in the short term Is it debt reduction? Reducing household spending? Finding a job? It may not be possible to accomplish everything all at once, so focus your efforts on one goal, and give it your full attention.

Create a written plan or strategy for meeting goals Big goals happen one step at a time, so put in the effort to formulate a plan to accomplish your goal. People who already have a financial plan created by financial professionals are ahead of the game. If you don’t

have a plan, consider enlisting a CERTIFIED FINANCIAL PLANNER™ professional. To find one in your area, check out the FPA’s searchable national database at www.PlannerSearch.org.

Reward yourself for successes Be sure to reward yourself (and others in the household) for achieving a goal or taking an important step toward meeting a goal.

Regularly unplug from media Try tuning out social media, television news, media pundits, and other “noise” for significant

periods of time. It can help you be present and in the moment, instead of living in the past or worrying about the future.

Recognize you have reasons to be grateful Remember the good things you have in your life: family, friends, and a caring community. Show the people around you your gratitude, perform small acts of kindness for others, and find ways to stay connected with people and causes you care about. n Dennis J. Moore, MBA, CFP®, President of the Financial Planning Association® (FPA®)

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