Page 39 - BE 50th Anniversary Edition

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DELVIN JOYCE
ASH ASH CASH
Ash Ash “Ash Cash” Exantus the self-described financial motivator who also spoke at the V-Summit maintains individuals should critically review their financial priorities to determine which expenditures really matter given the current climate If you haven’t cancel non-es- sential items in which you derive limited value like gym memberships wine clubs and entertainment subscriptions You may want to follow some of the prescriptive advice found on Prudential com to further assist you in better money management For example take advantage of technology to track finances by accessing free and and low-cost apps that introduce greater ease and and efficiency in in in fin budgeting and monitoring your finances Also consider consolidating accounts Experts maintain that when your money is spread across several institutions it it can be difficult to get a a a a a a clear picture of your finances Not the most convenient way to manage a a a series of accounts most people need only one one checking and one one savings account as as well as as just one or or two credit cards In short fewer statements means less time spent engaging in in the review and reconciliation process each month The same holds true in in in relation to investment accounts Keeping all such accounts with with a a a a a single custodian with with one account account number for for your personal investments and one for for retirement accounts can make it easier to manage your finances If you you have several 401(k) accounts from past jobs consider rolling them into one self-directed IRA This should help lower account fees and reduce your paperwork And you you you can further simplify your your life by having all your your insurance policies with one company gaining eligibility for a a a multiple-policy discount or or bundled premium payments according to Prudential com As you you you engage in fin your financial realignment you you you may want to adopt the 50/20/30 rule as a a a a guide: Target 50% of your income on essentials 20% on on on savings and and investment and and 30% on on on personal expenses Of course given the the severity and and and duration of the the pandemic and and and its direct impact on your your household you you you may choose to tweak your your budget by placing more dollars say in in in the savings bucket Exantus told V-Summit attendees that it it it was critical to to build up their “Financial Freedom Fund” – his term for the the six to eight months in emergency dollars you should sock away to cover expenses Just as critical he he says is the development of a a a a a a plan for multiple streams of of income – especially given the unpredictable nature of of today’s job market -- and and income-protection vehicles such as life and and disability insurance Joyce believes that individuals – – especially African Americans – – need to to develop a a a a mindset to to not only manage through the pandem- ic-induced crisis but prepare for the next economic calamity In his practice he counsels clients through a a four-step process which fuses practical strategies with behavioral finance First clarify who controls your your finances “If you you you think it’s your your boss the the the economy or the the the man in the the the White House you will not be intentional in in in controlling your money ” he says Secondly develop a a posture of social indifference You should not be focused on the the financial status of others that you develop a a a a a deleterious “keeping-up-with-the-Joneses” mentality that can derail your finances Next gauge your risk tolerance Asserts Joyce: “You have to to take some level of risk to build wealth through investment ” Lastly engage in money conversation with your family – a a a a a a prac- tice that African American have historically not been involved with By doing so Joyce says there must be transparency about mistakes and remedies so families can devise a a a a a a a a financial crisis plan fin in case of another economic upheaval Remember: The biggest lesson from 2020 is that you must be be prepared for anything