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This week on the podcast, I am talking about my Top 10 Budgeting Tips! Whether you are creating a budget for the first time or your budget just needs a revamp (maybe inflation has it all out of whack?); these tips are sure to help get you on track! My Top 10 Budgeting Tips Tip #1 Assess your spending in the last few months. Know where your money has been going! Are you spending more than your income and creating debt? Are you paying for a subscription you never use and need to cancel? Do you think you spend $600 on food but it's really $1,000? Knowing where your money has been going is essential to creating an accurate budget. Tip #2 To create your budget, you need to assign a purpose for every dollar of your income. Your income minus your expenses should equal ZERO. If it's negative you are going into debt and if there is money unassigned then it doesn't have a purpose. If you have a monthly salary, it is straightforward what your after-tax income is to begin your budget. If you have an irregular income such as a commission-based pay plan, you want to "plan for the worst" to cover your essentials and then have a plan for all additional income earned. If you are paid weekly, you want to create your monthly budget off 4 weeks of income. You will have a few months with an additional week of income and make a plan to put that towards debt paydown, savings, or another purpose. Tip #3 Prioritize the necessities. Your 4 Walls are the categories of Home, Transportation, Food, and Utilities. These are essential to survival. Note that food is both an essential like groceries and a non-essential like eating out. Once you prioritize the 4 Walls then you want to prioritize debt pay down, savings, etc. Tip #4 Know if your categories are on track with guidelines. Generally, your total Home expenses should be about 25% of the budget, including insurance, property taxes, HOA, etc. If it is over 30% then that category is heavy in comparison to income. Transportation should be 10-15% but if you have a car payment that percentage could be higher which means another category needs to be low. Food is 10-15% (that includes if you are budgeting to eat out a few times) and Utilities are around 5%. Your debt paydown and savings should be about 15% and giving of 10% (if that is a priority to you). Other minor categories include personal expenses, misc expenses, other insurance (maybe term life insurance), healthcare (co-pays, etc) One thing to think about is if you have other large expenses like paying for your health insurance, daycare, etc. These items could take up a large percentage of your budget and other categories will need to give. Tip #5 Be on the same page with your spouse. Do the budget together, review it, and be honest about your spending! Money causes a lot of marital issues. Don't let it! There may be a lifestyle change getting on a budget so give each other some grace as you walk through this together! If you are single, get a friend to help hold you accountable! Make sure it is a friend that will support your new spending choices. Tip #6 Review your spending weekly to keep your budget on track. Adjust for any unexpected expenses immediately so your total budget doesn't go over. Your budget is going to change from month to month. It is not set it and forget it so stay on top of it! Plan for the big expenses at the beginning of the month so you can get them checked off the list! Tip #7 Food is a common category to overspend so make a meal plan, eat at home, and eliminate food waste. (Be sure to check out last week's podcast and the blog post The Value of Meal Planning as well as my e-book How to Meal Prep) Meal planning not only saves you money; it also creates less stressful evenings. If you are going to eat out some, be sure to add it to your budget so that you don't ignore that expense. Tip #8 Plan for quarterly and annual expenses in your monthly budget. Don't let those big expenses creep up on you and put you into credit card debt. If you know of upcoming home repairs, save for them in your monthly budget. And if you get a tax refund, make a plan for that money such as debt paydown or savings; don't go on a shopping spree! Tip #9 If you have credit card debt, cut it up, prioritize paying off the debt, and only use cash or a debit card during the payoff process. If you are regularly tempted to overspend by using your credit card then put it away! Tip #10 Create savings goals and a priority list. An Emergency Fund should be at the top of the list. This is enough to cover 3-6 months of expenses. Once you have that, you can focus on saving for a home down payment, retirement, paying for college, etc. Different saving categories need different savings tools such as a savings account for the emergency fund, maybe an IRA for retirement, and a 529 plan for college. Create goals for the different categories! Be sure to track your progress and make sure you are achieving them! All information is considered educational and is not considered financial advice.

Asian-style chicken noodle soup is a comfort food with an Asian flare! An easy slow-cooker meal that is healthy and delicious! Ingredients for the Asian Style Chicken Noodle Soup 2 boneless chicken breasts, sliced into small strips 32-ounce chicken broth (low sodium) 1/4 cup soy sauce 1/8 cup sesame oil 4 cups water 2 tbsp pad thai sauce 1 small yellow onion, sliced extremely thin 1 1/2 cups chopped carrots or shreds 1 large rib celery, sliced 1 cup shiitake mushrooms, sliced 1 tsp ginger 2 tsp Chinese 5-spice 10.5-ounce Cantonese egg noddles 3 baby boy choy Instructions for the Asian Style Chicken Noodle Soup Mix well with all ingredients except the noodles and box choy into the slow cooker. Set to high and cook 3 to 3 1/2 hours. Add the noodles and bok choy and cook for about 10 minutes until the noodles are soft. Serve immediately. I have a plethora of slow cooker healthy recipes for your next dinner. Be sure to check out my entire recipe section for easy, healthy meals for you and your family.

If you follow me on Instagram, you have most likely seen me making homemade food for my dogs. And a lot of you have asked me a lot of questions about me doing this! So, I decided I would write a post about it. First and foremost, I am not a vet so I highly recommend consulting your vet before changing their food, especially if your dog takes any meds, has allergies, etc, etc. That being said, I am a huge dog lover and I truly do treat them like family. We have all seen countless recalls of dog food over the years and it really does make you wonder what is in some of it. There are several new dog food companies that make more human grade type food but if you have checked them out they are really expensive. I have been doing the homemade dog food for several months now. I am still feeding my dogs actual dog food but they are getting about half as much of that as they did prior and then the other half is homemade food. The most important part in all of this (in my opinion) is knowing what you absolutely do not need to feed your dog. Knowing this list is so important. I have made this list as inclusive as I can but dogs can have additional allergies separate from this list of no-no's. Again, consult with your vet, especially if you have concerns over anything they have eaten. THE MUST AVOID LIST: Avocado Grapes Cherries Tomatoes Citrus (i.e. oranges, lemons, limes, etc) Mushrooms Onions Rhubarb Asparagus Bacon and Ham Fatty meats Macadamia nuts Nutmeg Cocoa and cocoa powder Garlic Black Pepper Xylitol (this is in some peanut butters now so be sure to check ingredients) THE GOOD LIST: Chicken Salmon Turkey Apples Berries: Blueberries, Strawberries, Cranberries Peaches Pears Watermelon Cantaloupe Bananas Broccoli Brussel Sprouts Peas Green Beans Pumpkin Sweet Potatoes Rice Beets Carrots Cucumbers Kale Coriander Oregano Peppermint Turmeric Cinnamon Thyme Basil Rosemary Parsley Ginseng We don't have a Costco or Trader Joe's in our county so I buy the bulk frozen bags of chicken breasts and salmon filets from the grocery store. If you have the ability to buy more in bulk, you will be able to save some money. I change up the recipes all the time but I aim to have a good blend of meat, a starch, a fruit/ vegetable, and some herbs. The fragrance of the herbs cooking smells great and just adds more flavor. I do generally add 2-3 tablespoons of an oil such as olive, vegetable, or fish. Don't use avocado or canola. Do not use broth because of the salt content, just use water. Each of my recipes makes about 10-12 servings with each serving being 1/2-1 cup. Since I change it up all the time, the following are just some ideas to get you started: Chicken Based Dinner: In a slow cooker, cover the bottom with about 1 cup of water and 2-3 tablespoons oil. Lay 3 chicken breasts on the bottom (you can put them in frozen). Then top with one large sweet potato sliced, 1 16 ounce bag baby carrots, 1 tbsp rosemary and 1 tbsp basil. Cook on the low setting for 6 hours. After 5 hours of cooking, add a 12 ounce bag of frozen green beans or peas. Once the 6 hours are complete, use tongs and shred the chicken. Let the food cool for close to an hour before serving. Note: if you wanted to use rice instead of sweet potatoes, you could add 1-2 cups rice and 2-4 cups water. Salmon Based Dinner: In a slow cooker, cover the bottom with about 1 cup of water and 2-3 tablespoons oil. Lay 3-4 salmon filets on the bottom (you can put them in frozen). (If they are skin on, be sure to pull the skin out before serving. )Top with one large sweet potato sliced. Add one 12 ounce can pumpkin (not pumpkin pie filling). Add 3-4 apples (cored and sliced up). (Don't use Granny Smith apples unless you want to be up all night walking the dogs LOL) Add 1 tbsp cinnamon. Cook on low setting for 3-4 hours. Let cool then top with fresh blueberries. Thanksgiving: In a slow cooker, cover the bottom with about 1 cup of water and 2-3 tablespoons oil. Lay 2 turkey breast tenderloins in the bottom. Top with one large sweet potato, sliced. Add one 12 ounce can pumpkin. Add 3-4 apples cored and sliced. Add one tbsp rosemary. Cook on low setting 5-6 hours. Add one 12 ounce bag green beans for the last hour of cooking. Let cool and top with cranberries. I make a few days worth at a time in an XL Slow Cooker. And for dessert, check out my Better than a Pup Cup recipes!

Easy, healthy, and delicious! This recipe makes about 6 hearty portions and can easily be halved. Ingredients: 16 ounce package orzo 4 chicken breasts, cut into bite size pieces 3 tbsp olive oil 1 large lemon, juiced 2 tbsp minced fresh garlic 3-4 tbsp basil paste 20 ounce cherry tomatoes 5 ounce fresh spinach 1 cup feta cheese (more to garnish if desired) To Make: Prepare orzo per package directions and set aside. In a dutch oven, heat the olive oil over medium heat. Add the garlic. Cook about 3 minutes stirring regularly. Add the cubed chicken to the olive oil and garlic then add the lemon juice and basil paste. Stir well and sauté 8-10 minutes until chicken is cooked through. Add the tomatoes and stir well. Cover and simmer 3-4 minutes. Then stir well again and press the tomatoes to make them burst. Cover and simmer another 4-6 minutes until the tomatoes have broken down. Stir in the fresh spinach. Simmer 3-5 minutes until the spinach wilts. Add the cooked orzo and feta. Stir thoroughly and simmer 2-3 minutes. Serve and top with additional feta if desired.

This recipe is similar to my Veggie and Sausage Soup and my Veggie, Bean, and Hamburger Soup but with a different mix of veggies for a slow cooker variety! Ingredients: 1 pound sausage, cooked and crumbed (hot adds more flavor) 1 10 ounce can cream of chicken soup 32 ounce chicken broth 1 sweet onion chopped 15 ounce can kidney beans, drained 15 ounce can northern beans, drained 12 ounce bag frozen lima beans 8 ounce chopped baby carrots 12 ounce bag frozen sweet peas 12 ounce bag frozen green beans shredded parmesan for garnish Add all ingredients except sweet peas, green beans, and parmesan to slow cooker. Mix well. Set the setting on low for 8 hours. When there are two hours left, add the green beans and sweet peas. Mix well. Serve and top with parmesan! Goes great with a grilled cheese!

There are a lot of opinions on credit cards and credit scores. Different financial gurus have different perspectives on the needs and use of both. So, before we dive into talking about adding your child to your credit card, I am going to give you an overview of my perspective. Do I think credit cards are good or bad? My answer is that credit cards in themselves aren't either good or bad but our behavior with them is either good or bad, thus creating good or bad results. If you are someone that can't control your spending with a credit card then by all means use cash or a debit card. If you are a disciplined spender and only use your credit card for expenses within your monthly budget and pay the balance in full every month then using a credit card can be a good thing. I personally use the same credit card for almost all of my purchases from gas and groceries to vet bills for our dogs. At the end of each month, I apply any points or rewards directly back to the balance and then payoff the remaining full balance. I never carry a balance that would be subjected to interest charges and putting myself into credit card debt. Plus, it is generally easier to dispute fraudulent charges on a credit card rather than a debit card. And I also prefer a credit card when traveling because, for example, if you check into a hotel with a debit card they generally charge your card for significantly more than your actual charges will be and it is oftentimes up to a week before you have that overage back in your account. But again, if you can't control your spending with a credit card use a debit card or cash. Credit scores have also been called an "I love debt" score and I can agree with that statement to an extent. Credit scores are often negatively impacted when you pay off debt but we all know that paying off debt is generally a good thing. Credit scores are also negatively impacted when you miss payments so you want to make sure to make payments on time. Having a credit score, specifically a good credit score, makes the approval process of acquiring debt a lot simpler. But credit scores extend to a lot more these days than just acquiring debt. Credit scores are routinely checked for leasing an apartment, setting up utilities, acquiring insurance, and by prospective employers. A poor credit score or not having a credit score or credit history can create a situation of higher deposits, higher premiums, and potentially not getting a certain job. So for these reasons, having some credit history can make a big difference. It's not just for acquiring debt these days. It can be difficult for young adults just starting out when they don't have a credit score or credit history, even if they aren't trying to acquire debt. Back to your child and your credit card. You can add your child to your existing credit card account as an authorized user. Different card types have different age requirements but generally a child 15 or older can be added to your account (some cards allow a younger age). When you add your child to your account as an authorized user, the history of that account attaches to your child's credit history and can help your child create a credit history before they turn 18. One thing to think about though is if your account doesn't have a good history then adding your child may actually hurt them so you want to add them to an account with a good history and be sure to maintain good history on the account. This can also be a great time to teach your child about debt and credit and making a spending budget and adhering to it. When I was 14, I went away to boarding school so my parents added me as an authorized user on their account and I had a credit card to pay for my expenses. When I turned 18, I was able to open up an account on my own. I chose an American Express card that required monthly payment in full and did not allow you to carry a balance and put yourself in credit card debt. It was a great option for a college kid and I was mindful about my spending and paying the bill in full each month and on time. I opened that account in 1995 and I still use an American Express today and my card says "account holder since 1995." Needless to say, that is a good bit of account history. My son is 17 and I added him to my account last year. He also has his own checking account and debit card that he uses for most of his personal purchases. He earns money, deposits it into his account, then pays for things out of that account with the debit card. He also is an authorized user on my American Express and has a card from that account. He uses that card when he is running errands for me such as picking up some groceries. He is a responsible kid and I trust him not to go on a spending spree with it. LOL This is a win win situation for both of us. He is able to pick up items for me without me needing to reimburse him, the charges reflect on my account when I login so I can easily account for them in my budget, and he is building credit history from a solid account with a long (and positive) track record. When he is ready to lease an apartment or establish utilities, he will have some history attached to his social security number which will make the process simpler and most likely require smaller deposits. A few years ago I began teaching a high school personal finance class and I can attest to the need for kids to understand how money works. When your child has a credit card it is a great time to teach them how that cycle works, when the balance needs to be paid in full to avoid interest charges, late fees, and going into debt. It is also a great time to teach your child about creating a budget, adhering to it, and tracking their spending. Not every teen is ready to be turned loose with their parent's credit card, after all you are liable for any charges they put on the card. But once you feel your teen is responsible enough to have a card, it can be a great learning tool and a great way to get them started on the right path to a positive credit history. It is important to note that different card issuers have different age requirements and report differently to the credit bureaus so be sure to get the details before adding your child. It sure is nice being able to have my son help with household errands and not have to constantly reimburse him. If your child isn't quite old enough for this yet, don't worry it will be here before you know it! Information contained in this post is for educational purposes only and is not considered financial advice.

If you missed them, catch Part 1 HERE and Part 2 HERE. In Part 3, we are looking at finding balance and living the season of life you are currently in. It can be difficult to find balance if you aren't embracing your current season of life. It can also be difficult to find balance if you are focused on fulfilling the expectations of others. Therefore, it's important to recognize what season you are in and the opportunities and challenges that season brings to your life, living in alignment with your purpose, and finding balance within it. Lack of balance is something that many struggle with and it causes stress and overwhelm. Before you can find balance, you have to recognize what it is. Oxford dictionary defines balances as "a condition in which different elements are equal or in the correct proportions." The different elements can range from career, family, home, personal time, and the list goes on. Women, in particular, struggle to find balance between their career, their role as a mom, and managing the home. Looking back at the definition, it is safe to say that all of these different elements are not going to land equally. For this reason, it is important to get them in the correct proportions. There are many seasons of life and they present different choices for us to make. I am in my mid 40s and if I simply look at my current season versus when I was in my 20's there are numerous differences such as: I need more sleep, I am less concerned about social functions, I am more concerned about healthy eating. My son is now 17. When he was a toddler our evenings were consumed with bath time, trying to get him to eat a vegetable, and story time. Now our evenings are filled with baseball games, family date nights trying new restaurants, and reliving chemistry homework. We won't get these seasons back, so embrace them, make memories, and have zero regrets. For example, my son will be off to college in less than two years. I have decided to table several things I want to do because right now I want to focus my time with him. Otherwise, I would get out of balance. How do you choose to live everyday? Are you living in alignment with your season of life, your core values, and your purpose? What is priority to you? Decide what these things are and make changes to shape your day around them. Your everyday lifestyle choices create your journey and your journey is your story. What do you want your story to be? What route is most aligned with you? Think about Google maps. You enter the destination and it gives you the fastest based on current traffic, the shortest based on miles, or the most scenic. Align your everyday lifestyle choices with the route that best fits your personality. Remember the vision board? It can be very useful in guiding you towards balance because it tells you how you want to spend your days. It's why our everyday choices on our agenda have to be aligned with our core values and purpose because that is where fulfillment is found. Balance is virtually impossible to find when you are unfulfilled. Organization and planning is very important on the road to balance. It's where you assign everything in the correct proportions to lower stress and overwhelm. As a recovering people pleaser, I know how difficult it can be to say no, especially once you have set a precedent that you are always going to say yes. We don't want to disappoint anyone but we are repeatedly disappointing ourselves. If it doesn't align with your current season of life, your core values, and your purpose, it has to be a NO! Don't let anything that could throw you out of balance creep onto your agenda. If you are looking for some great books to help you better your habits, find your purpose, set boundaries and more, here is a list I shared at the conference of some of my favorites. Get the list HERE! This post contains affiliate links. If you click on a link and make a purchase, I may receive a small commission at no extra cost to you.

What is a flow through (also called a pass through) entity? A lot of times when people think about a business, they think corporations. They think these businesses (these corporations) themselves pay corporate taxes. But, not all businesses are corporations. And, even those that are corporations can be different types of corporations. Yes, there are corporations, such as C corporations, that are required to file and pay income taxes on the income of the business. When the news is talking about the taxes that Amazon has to pay, Amazon as a corporation has to pay those taxes on it’s income. The thing is, most small businesses are flow through entities. Approximately 95% of small businesses in the U.S. are flow through entities. This means that the business itself doesn’t pay actual income taxes. Instead, the income from the business flows through from the business to the owner(s) of the business and the owner(s) report the income on their personal tax returns and pay the tax due personally. LLC’s and S corporations are examples of flow through entities. Some flow through entities are subject to self-employment tax while others, like an S corporation or an LLC with an S election, does not pay SE tax. This is why it is very important to know the different types of structures when setting up your business. Let’s look at a simple comparison. Bob and Sally are married and they own and operate a business together, B&S Wine Shop. B&S Wine Shop has net (taxable) income of $125,000 for 2023. That is total revenue minus total expenses. If B&S Wine Shop is a C corporation then B&S will pay a 21% corporate tax rate, or $26,250 in tax. That leaves B&S with $98,750 that it can declare as a dividend to Bob and Sally. That dividend will be taxed at 15% on their personal tax return, $14,813. Total tax paid $41,063 or 33% of the $125,000 income their business generated. If B&S Wine Shop is an LLC and is subject to self-employment tax, then the full $125,000 would flow through to their personal tax return. B&S itself would not pay taxes. Bob and Sally would pay $17,662 in SE tax and then they would pay $16,172 in income tax (they get a deduction for half the SE tax paid). Total tax paid $33,834 or 27% of the $125,000 income their business generated. Plus, there would be additional tax savings if they made an S election for their business but we won’t cover that here. Most small businesses choose a flow through entity because in the end it saves money in taxes. However, large businesses generally don’t meet the requirements to be a flow through entity so they are taxed at the corporate level instead. There are a lot of arguments whether or not big corporations pay their “fair” share of taxes. Many people often argue that the corporate tax rate of 21% is too low. However, it is important to note that when the income after taxes is distributed as a dividend to the shareholders, it is taxed again. In the example above, B&S paid a 33% effective rate on their $125,000 income if taxed at the corporate level whereas only 27% as a flow through entity. Information contained in this post is for educational purposes only and is not considered financial advice.

This meal is quick and simple to make and is delicious! It is packed full of flavor! Ingredients: 5.2 ounce Boursin cheese 1 1/2 pounds chicken breast, diced 2 cups dry orzo 0.7 ounce Italian dressing recipe mix 10 ounce jar quartered artichoke hearts (with juice) juice of 1 large lemon 1/2 cup red onion, finely chopped 1/2 cup olive oil 2 cups broth 2 cloves garlic, minced 3 ounce fresh spinach 3-4 slices bacon, cooked crisp (optional) Preheat oven to 400 degrees. Grease a 9x13 casserole dish and set the Boursin cheese in the middle. In a large bowl, thoroughly mix all other ingredients except bacon. Spoon around the Boursin cheese. Bake for 30 minutes uncovered. Stir well. Bake an additional 10-15 minutes. Garnish with bacon and serve.

My recent blog, Part 1: The 3 I’s and your Budget, focused on the I of Inflation and specifically talked about the cost of groceries. We all have to eat so the grocery category in our budget is essential. I further spoke about that with the increase in the cost of groceries, something else in the budget has to give or you need to increase your income. The most common casualty when something in the budget needs to give is saving. People generally don’t want to have to inconvenience themselves by reducing what they spend in another category (such as entertainment, etc) and they erroneously convince themselves that they have plenty of time to save later. However, it does make a difference in the end. For example, if you are 35 and you are investing (saving) $200/month and you do that until age 65, you will have about $282,000. However, if you tell yourself you can wait and start doing that at 45 and you invest $200/month from 45 to 65, you will only have about $114,000. So for a $24,000 additional savings (10 years at $200 per month), you gain an additional $168,000! This is why it’s important to make the budget work and continue saving! When we think of saving money on groceries, we tend to immediately think about coupons. While coupons can be a great way to save money on groceries, there are other ways to keep that grocery budget in line! Here are my top tips to keeping your grocery budget in line: Meal Plan! I know I continue to beat this dead horse but it’s because it works! When you buy groceries without a plan, the likelihood of food waste increases dramatically. When you throw food out, you are essentially throwing money in the trash. Plus, when you don’t have a plan for dinner, you are more likely to eat out. Eating out kills the food budget, especially when you add on fees for delivery. Stock Up On Specials! We don’t have a Costco or anything similar in our county so I take advantage of weekly specials but buying certain things in bulk can also be a big savings (just make sure it is things you will consume and won’t end up throwing out). When I do my weekly grocery order, the first thing I check are the weekly specials. If items I use regularly, such as chicken breasts, are on special, I will buy extra and put them in the freezer. However, I don’t stock up on things that we don’t regularly eat because they are likely to end up being thrown out and that is just money wasted. Stay Organized! Keep your pantry, refrigerator, and freezer organized so that you only buy what you need. Plus it will keep items from getting lost, going bad, and then getting thrown out. Create a purpose for any “extras” so they don’t turn into food waste. For example, I purchased croissants for lunch sandwiches last week but we didn’t use them all so on Saturday I made french toast with them. Not a conventional french toast bread but they worked and it was quite good. Don’t be fooled by convenience. While things like mini bags of chips and lunch meat sliced at the deli are convenient, they are markedly more expensive per ounce. It only takes a little more effort to put chips in a container when packing lunch rather than just grabbing a mini bag of chips. Plus, you cut down on packaging waste when you use a re-usable container. Want some more tips? Here are links to some more grocery budgeting blogs I have written: The Grocery Budget Tips to Meal Plan and Prep The Value of Meal Planning Lunch Box Savings You can download my meal planning templates HERE And if you are ready to up your meal planning to meal prepping, check out my class: How to Meal Prep

In Part 3 of The 3 I's and Your Budget, we are talking about Income! Income can be a hot topic! People often feel that they don't earn as much as they should. Some jobs can be a noble profession but don't pay a high income. Some jobs have a lot of income growth potential and some are "dead end" so to speak with little to no income growth. Regardless of what your income amount is, it is the driver of your budget. Even the king of budgeting, Dave Ramsey, says your income is your most powerful tool. The idea when creating your budget is to allocate every dollar of income with intention! The amount of your income dictates how much you can spend in each category. There are guidelines for what percentage of your income you should spend in certain categories. But what happens when that suggested percentage creates a dollar amount that won't suffice? In Part 1 we focused on inflation with the high cost of groceries being an issue for most families. If you need to allocate more to a category then you have to decrease another category. This is where a lot of families are feeling the squeeze these days. We hear people say "if only I had more income then my budget would work." More income isn't always the answer to making a budget work. There are plenty of people that can make a budget work even without a large income. These are people that truly follow the principle of living on less than they make, avoiding debt, and saving. These are the people that generally will just choose to save more or pay off debt quicker if their income increases; they don't change their spending habits. On the flip side, there are people making $250,000 a year that are living paycheck to paycheck because their spending is out of control. More income wouldn't make their budget work until they changed their spending habits. If you are feeling a squeeze on your budget or less money going towards debt payoff or savings then more income may be a solution. Multiple streams of income can be ideal so that you aren't dependent on one source. Maybe a side hustle is right for you. Maybe doing a training or certification so that you can grow in your career is a good path. It's important to remember that not all jobs are meant to be in long term. You have to create the right path for you and your family; evolve, grow, and create situations for income growth. Information contained in this post is for educational purposes only and is not considered financial advice.

This recipe is simple and packs lots of flavor! Pairs well with a salad, pasta, or a veggie side! Ingredients: 4 boneless chicken breasts 4-6 pieces bacon, cooked crisp 8 ounces pesto 1-2 cups shredded mozzarella 1.Preheat oven to 350 degrees and grease a casserole dish. 2. Butterfly the chicken breasts. 3. Brush pesto onto the chicken breasts. 4. Add a slice of bacon plus a handful of mozzarella to one half of the chicken breast. 5. Fold closed and place in casserole dish. 6. Top chicken with remaining pesto, cheese, and crumbled bacon. 7. Bake for 30-35 minutes uncovered.

Welcome to Part 2 of the 3 I's and Your Budget! This post is focused on the I of Interest Rates! Much like inflation, interest rates have been a hot topic in the news for the last few years! Consumers generally want to pay low interest rates because that means lower interest costs! But what drives changes in interest rates? Why are they intentionally increased? And what does that mean for your budget? Interest is essentially the cost to borrow money. If you borrow $1,000 at an interest rate of 5% and it is due to be repaid in one year, then you have to not only repay the $1,000 but you also pay $50 in interest for that year. When you look at a simple example like this, the difference between a 3% interest rate ($30) and an 8% interest rate ($80) is only $50 but when you start applying higher interest rates to larger amounts of money being borrowed like mortgages and auto loans, it quickly makes a huge difference! Interest rates are essentially "set" by a committee within the Federal Reserve. This committee establishes the federal funds rate. The federal funds rate is the rate that banks borrow and lend money back and forth to one another. Of course, banks and lenders are going to charge a higher interest rate than they have to pay so that they can also make money on the interest. When the federal funds rate goes up, lenders increase the interest rate they charge. Let's look at a comparison of the federal funds rate over the last twenty years. (averages for the year) 2003: 1% 2005: 3.2% 2007: 5% 2009: 0.16% 2011: 0.11% 2013: 0.13% 2015: 0.13% 2017: 1% 2019: 1.55% 2021: 0.08% 2023: 5.3% (current rate) As you can see, in 2007 the average rate was 5% but had increased from just 1% 4 years prior. This rate increase was a driver for the 2008 financial collapse. Why? Nearly 30% of mortgages were variable rate (also called an adjustable rate) in 2007 so when the interest rates increased, the monthly payment on the mortgage increased. The monthly payments were no longer affordable within people's budget and they began to default on their mortgages. To make matters worse, many landlords had used variable rate mortgages and the rents they were charging weren't enough to cover the increased payments so the landlords defaulted. So why has the Federal Reserve intentionally increased interest rates over the last few years? Their goal has been to curb inflation (inflation was discussed in Part 1). Higher interest rates means the cost to borrow money increases but it also means the interest rate paid on investments like CD's and savings accounts increases. The incentive is twofold for consumers: 1. not to make large purchases since the cost to borrow money has increased and 2. to put their money into savings rather than to spend it. When people spend less they decrease the demand for goods and services which in turn (theoretically) will drive down prices. There can be numerous affects of interest rate increases on your family budget. If you are currently paying off credit card debt at $250 per month and the rate increases on the credit card then more of your $250 payment is going towards interest rather than the actual debt. If you are in the market to purchase a home when interest rates are high then the monthly payment that works for your budget is going to have less purchasing power. For example, if a $2,000 per month mortgage payment is right for your budget then with a 3% mortgage rate you can afford a $475,000 loan but with an 8% mortgage rate (current rate) that goes down to a $275,000 loan. That is a big difference in the house you are purchasing! Plus, if you are enticed to save more so you can earn the higher rate in those CD's and such, then you will decrease the other spending in your monthly budget. (This is also where the thought process of reducing inflation comes into play.) In Part 1 we addressed the high costs of certain budget categories, especially groceries and how they impact your budget. Your budget is like a puzzle. Every piece to a puzzle has an intended place. Therefore, when you put a puzzle together you use every piece. When you put your budget together, you want every dollar of your income to have an intended purpose. That purpose needs to maximize that dollar to the fullest which is why you want to be paying the least amount of interest possible so you can be utilizing the dollars towards essential items like groceries, your home, and savings. Information contained in this post is for educational purposes only and is not considered financial advice.

As you may know, I have taught a high school Personal Finance class for the last few years. One topic that we thoroughly cover is the cost of college. I teach the kids the different types of student loans and show them how much they can burden not only their budget but also their future savings. This past year, I made a post on my personal Facebook page in regards to student loans and their hindrance on future savings. I was met with hostility from a mom (I don't personally know her) whose son (I do know) graduated from NC State a few years ago. Among other things, she told me I was being unrealistic to think that a kid could graduate from college debt free. Well, I love a challenge so I decided to create a "roadmap" for a kid to pay for college debt free and without the assistance of their parents. This example shows a student at a 4 year university (NC State) the entire time. It is important to note that, at least in North Carolina, there is a wonderful opportunity to attend community college for one to two years and then transfer into a public 4 year university. It is a great pathway to save money for the first two years and then take the core classes for your degree at the 4 year university. The reason my example shows the student at the 4 year university the entire time is because that is the more expensive path and it was the path of my challenger. Since the cost of attendance differs from school to school, this roadmap is intended to be used as a guide, not definitive numbers for every situation. (Just clarifying that for the people that will comment and send me emails that their child's school is a different cost so my example doesn't work. This is a guide, not a one size fits all personal plan.) Also, I am using the cost of a public university because that is generally the most ideal path for a student on a strict budget. If you can get a full ride to Duke (or similar), by all means take it but graduating with $200,000 in student loan debt is not ideal. Also, in this example I have used 5% as the rate of return in the 529 plan. That is a fairly conservative number but with all investments the return could be higher or lower than expected. The reason I like a 529 plan is for the tax free growth. A kid could save in CD's or something like that but there will be a tax liability on the growth. When they put the money into a 529 plan it grows tax free as long as they use the funds for college (note at the end about leftover funds in the 529 plan). Plus, the 529 plan could be a great place for family and friends to make a contribution in lieu of gifts at Christmas, birthdays, and graduation. Lastly, this example doesn't include any scholarships or grants that may be received to reduce the cost of attendance. This example uses the full estimated cost of attendance (as published on NC State's website) which is rarely the full cost any student will pay. The freshman year in my example uses the published costs for 2023-2024. Additionally, I have increased the cost by 3% each year for greater accuracy in cost increases. It is important for a student to apply for all scholarships and grants they may be eligible for. Every little bit helps in reducing the cost of attendance! Let's get started with the numbers. The below chart shows the estimated cost of attendance for four years at NC State University. Again, the freshman numbers are the published cost of attendance for 2023-2024 and then each year is increased by 3%. So how does a kid pay for this without student loans if the parents are not able to contribute? First, they have to start their plan early, ideally in 9th grade. I have been amazed by how many of my students, whether freshman or seniors in high school, have no idea if their parents have a 529 plan or other type of college savings plan for them. I think a child should know by 8th grade what their parent's ability and intentions are with paying for college. Telling a kid mid way through their senior year is too late to make a good plan. As Benjamin Franklin said, "If you fail to plan, you are planning to fail." The earlier you have the conversation with your child and the earlier you make a plan, the greater likelihood of graduating from college debt free. This is also the time to have the conversation with your child on the vast differences in tuition depending on the school. Dream schools aren't so dreamy when they leave you in debt. Now, back to the numbers. Let's get started with the savings plan while the child is in high school. Below is another chart that shows a child working and putting the money into a 529 plan and letting it grow. This chart assumes the money is contributed only once a year so there is potential for more growth if the contributions happen more frequently. Also, it is important to remember that your child's income will not be subject to federal income tax until they make more than the standard deduction. That amount is $13,850 for 2023. And if you have your own business, you can most likely put your child on the payroll and also get a tax deduction for yourself while helping them save for college. Let's start with 9th grade. How does your child earn $8,500? At 14, they are able to work a retail job, fast food, or something similar. Our local McDonald's is currently hiring starting at $12/ hour. Working 10 hours per week for the 36 weeks of the school year results in $4,320. Working 25 hours per week for the 12 weeks of summer results in an additional $3,600. Add some mowing jobs or babysitting jobs throughout the year and you easily reach the $8,500. If your child wants to have some spending money as well, increasing the hours during the school year to 12 hours a week would yield an additional $864 or 30 hours a week during the summer would yield an additional $720. There are options! Moving on to 10th grade. The $8,500 is sitting in the 529 plan growing at 5%, creating $425 of tax free money. At this point, the child should be able to manage more hours and/or get higher hourly pay based on their experience. Therefore, the bump to $10,000 in income follows a similar path as 9th grade. Moving on to 11th grade. The 529 plan is growing and therefore creating more tax free money. At 5% it creates an additional $946.25 during 11th grade. This is from the $8,500 contributed in 9th grade, the $425 growth in 10th grade, and the $10,000 contributed in 10th grade. Making an additional $10,000 in 11th grade and contributing that creates a total of $29,871.25. It's important to note that at 16 (in most states), children are able to wait tables. A waitressing job can yield substantially more income. For example, I know a girl that worked a 4 hour shift a few mornings a week at a local breakfast place (that did not serve alcohol) and she averaged $250 in tips per shift. Again, there are a lot of options for a high school aged kid to make good money, save it and grow it. As you can see, by the end of 12th grade the child has made $40,500 of income. This number could be much higher if they choose a job with greater income potential such as waitressing. By putting the money into the 529 plan, it creates an additional $2,865 tax free. So, in this example, at the end of high school there is $43,365 to start paying for college. Where I see a lot of kids go wrong is they wait until later in high school to start working and saving and/ or they work a minimum amount at minimum wage. The summer before and after my 12th grade year, I worked an office job during the day and at a restaurant at night. I learned a lot and was able to save a good bit of money. There is still time for friends but work ethic at this stage will pay dividends later down the road. And make sure to put any cash money gifts received for graduation into your savings plan! Otherwise, you will spend it on something you don't need. Let's move on the the college years. Now, when working in college there are a few ways to do it if you are on the 4 year plan. Take a full load each semester and work some during the week, much like in high school. Then, in the summer you can work full time or more. Or, take a lighter academic load each semester while working part time and take classes in the summer while working part time. Again, there are options depending on what works best for your school schedule. This chart is a little more complicated so I will go into greater detail to follow how it is laid out. So, here under the freshman year, the income from job is money made from working. This amount is slightly over the standard deduction so there may be a little bit of the income subject to federal income tax. That is one thing to keep in mind as you start earning more. The 5% 529 Plan Growth of $2,168 is by taking the $43,365 you finished high school with and applying the 5% growth. Add the $43,365 plus $2,168 plus $15,ooo of income and you have $60,533. If you look back at the cost of attendance chart, the freshman year is $26,772 so that cost is deducted leaving a balance of $33,761. The $33,761 balance at 5% growth gives you the $1,688 of growth income in the sophomore year. The chart continues on that way. As you can see, there is a balance of $3,039 still in the 529 plan at the end of college. Well, the good news about that is you can now roll over up to $35,000 of unused 529 plan funds to start a Roth IRA! How cool is that? No need to worry about not using up the funds for college! Summers in college are a great time to work during the day as well as at night, especially waiting tables. Once you are old enough to serve alcohol while waiting tables, the tip income can grow substantially. Add that onto hourly income from a day job and you are putting yourself in great shape. There are plenty of restaurants that need additional help on the weekends so that is a great option during the school year. Remember that the College Costs line includes your living expenses! You are making your college degree happen without taking on debt! As I have said prior, this is an example of one school's cost of attendance but the methodology can easily be applied to other schools. Then, you can back into what a kid needs to start making and saving to make it work. The community college transfer route is a great way to save a significant amount of money and still end up with the same degree. If you are able to live at home those two years while also working part time, you will save a significant amount of money! Questions on how this method works? Want to create a personal plan for your child? Does your personal budget need an overhaul? Need help setting up your small business? Feel free to contact me at bsp@boothparker.com to schedule an appointment! Information contained in this post is for educational purposes only and is not considered financial advice.

Welcome to Part 1 of the 3 I's and your budget! This post is talking Inflation! It's probably safe to say that every household has been affected by inflation to some degree in the last few years. The word has been on repeat. The news is constantly talking about it. What I haven't heard the news talk about is the Silent Depression. What that means is there are a lot of families truly struggling right now, despite the news being mostly favorable about the economy. This Silent Depression is being heavily driven by inflation. Wage growth has not kept up with inflation which means people's budget doesn't have the same purchasing power that it once did. What exactly is inflation? The definition from Investopedia is: "Inflation is a rise in prices, which can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time. The rise in prices, which is often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods." The reported inflation percentage is based on the Consumer Price Index (CPI) which "is a measure of the average change over time in the prices paid by urban consumers for a representative basket of consumer goods and services." (U.S. Bureau of Labor Statistics) The news has been getting more positive in regards to the inflation percentage, despite many families still struggling. Why aren't families feeling more relief? This is where the difference between headline and core inflation comes in. The news talks about inflation in regards to the Federal Reserve's targets. This is almost always based on core inflation, not headline inflation. Remember that basket of goods mentioned above? When calculating headline inflation, that basket includes the categories of housing, transportation, medical, electronics, food, and energy. However, core inflation does not include the categories of food and energy; the most volatile ones! Wow, right? Headline inflation is more in line with cost of living increases. While headline inflation is coming down, it spiked at a much higher level in 2022 than core inflation and that greatly affected many families ability to stay within their budget. It is generally recommended that 10-15% of your budget be allocated towards groceries. We all have to eat but when eggs cost $8, the grocery budget gets blown and something else has to give. What gives? Savings, debt payments, etc. So, if you felt a bigger impact from inflation than the news suggested you should, it's most likely because you were being greatly impacted by the food and/or energy categories that weren't in that reported inflation percentage. The good news is that headline inflation has slowed. The bad news is that inflation is still high and people are having a hard time getting caught up. This is where the importance of the budget comes into play and making sure every dollar is allocated with intention. If you know you need to allocate more towards groceries because you have teenage boys, then you have to make a plan to either spend less in another category or find another source of income (we will talk about this I later). Need some budgeting tips? Check out my blog post and podcast, Top 10 Budgeting Tips. Information contained in this post is for educational purposes only and is not considered financial advice.