Got Money Questions? You’re Not Alone. Here Are Answers to What My Clients Ask Most.​

Navigating the world of personal finance can feel like deciphering a secret code. You’ve got questions – big ones, small ones, and everything in between. Over the years, I’ve heard it all from my clients, from tackling debt and crafting budgets to understanding investments and planning for the future, many of the same questions pop up time and again.

To help you find ongoing clarity and feel increasingly confident in your financial journey, I’ve compiled some of the most frequently asked questions I receive. Consider this your evolving go-to resource for straightforward answers and actionable insights, with a new question and answer added every week! If you’ve ever wondered “how to get started with budgeting” or “the best way to pay down debt”, you’re likely to find the answer here – and stay tuned for even more valuable insights as we continue to build this resource together. Let’s demystify your finances, one question (and answer!) at a time.

What’s going on with student loans?

After a prolonged hiatus since March 2020, the U.S. Department of Education’s Office of Federal Student Aid (FSA) is restarting collections on defaulted federal student loans.

Here’s what you need to know:

• Consequences of Missed Payments: Failing to make payments can result in collections actions, wage garnishment, and damage to your credit score.
• How to Avoid Default: You can prevent these negative consequences by enrolling in an Income-Driven Repayment (IDR) plan​, which bases your monthly payments on your actual income.
• Benefits of IDR Plans: These plans can significantly reduce your monthly payments, keep your loan in good standing, and help you progress toward your financial goals with less stress.

Don’t wait for a payment to become overdue. Take proactive steps now to set up a repayment plan, protect your credit, and stay on track financially.

What the difference between an EFT and an index fund?

Great question – it can be a little confusing. The main difference between an ETF (Exchange-Traded Fund) and an index fund (often a mutual fund) lies in how they are traded and priced. ETFs trade like stocks on an exchange, allowing investors to buy and sell them throughout the trading day. Index funds, on the other hand, are priced once a day after market close and are typically bought and sold at that price. For a more in depth explanation “read more below”, but I will say that if you’re buying and holding for the long term, index funds will serve you just fine. Utilize dollar cost averaging and just keep buying!

I’m self-employed and always have this fear that I’m not going to be able to pay myself.

Being your own boss offers incredible freedom, but it also brings significant responsibility, especially when it comes to managing your money – both for your business and for yourself. To secure your financial future and ensure consistent paydays, a solid system and plan are essential. While most businesses operate on the formula of “income – expenses = profit,” I empower business owners to flip the script. By prioritizing profit first – “income – profit = expenses” – you ensure you’re always compensated for your hard work. You pour your energy into your business; let’s make sure you consistently reap the rewards you deserve.

I feel like I’m always playing catch-up with my credit card. How can I fix that? 

Let’s clarify how credit cards work and how to avoid that “always more than what’s in the bank” feeling. With a credit card, you make purchases throughout a billing cycle. Then, you receive a statement outlining those charges, and you typically have around three weeks (until the “payment due date”) to pay that balance. However, even after your statement is issued, you can continue using the card, and those new charges will appear on your next statement. This cycle can create the illusion that your credit card balance is constantly growing, even when you feel like you’re managing your spending. It’s like the charges are always a step ahead of your payments.

The Solution: Pay More Frequently

Here’s the key: You don’t have to wait for your statement due date to pay your credit card. In fact, you can pay it as often as you like.

A Simple Strategy: Weekly Payments

Consider reviewing your credit card transactions weekly and making a payment each week. Choose a consistent day and time – it shouldn’t take more than a few minutes.

Why this works:

1. Increased Spending Awareness: Regularly reviewing your transactions keeps your spending top-of-mind.
2. Early Fraud Detection: You’ll be more likely to spot any unauthorized charges quickly.
3. Real-Time Tracking: Your credit card balance will more closely reflect your actual spending, similar to using a debit card.

Getting Started:

If you’re currently feeling behind, take your current balance (the total you owe right now, not just the last statement amount). Divide that by three and pay that amount weekly until your credit card balance aligns more closely with your checking account balance. Once you’re “caught up,” make it a habit to pay your card weekly.

Important Reminder: If you’re already carrying credit card debt, the best course of action is to stop using your credit card altogether while you focus on paying it down.

When should I start investing?

A few years back my family and I moved into a new house that needed a significant amount of landscaping (still does). I was chatting with an elderly neighbor of mine and we discussing my thoughts on what I was going to do with the yard. At the mention of planting trees, I said, “Yes, but trees just take so long to grow”. Without hesitation and with profound wisdom she quickly responded, “You’d be surprised. You plant them and before you know it they are so big that you have to have them trimmed back.” The same is true with money. Although you may not have a lot to invest in the beginning, just start. Even if it is $50/month. You build that muscle and it is easier to start putting more money towards when you’re able. As they say, “The best time to start investing was yesterday. The second best time is today”.

Do You Invest In Bitcoin?

I get this question frequently. It’s the question on everyone’s mind amidst today’s market jitters. Bitcoin and other cryptocurrencies are navigating a sea of volatility. Here’s my take, and what I’ve personally done: consider allocating a small, truly risk-tolerant portion of your portfolio to Bitcoin. Think of it as capital you’re comfortable potentially losing – akin to entertainment spending. Remember, thorough research and a clear understanding of the risks are paramount. Be discerning, make informed decisions, and approach this asset class with calculated caution.

Money Market Account or High-Yield Savings Account: Which Should I Choose?

If having a savings account with the ability to make a few debit card purchases or write a few checks were really important to me, I’d look for a MMA. That said, I regurarily find better rates and lower fee with high-yield savings accounts. So if you’re just looking for a place to stash your cash in case of an emergency, and earn as much interest as you can, it makes sense to go with a high-yield savings account.

Should I Take Out a HELOC to Pay Off My Debt?

Generally, my answer to using more debt to pay off existing debt is no, and here’s the crucial reason why: debt is often a symptom of a deeper issue. Without tackling that underlying cause, you risk finding yourself back in debt again.

I’ve seen well-intentioned people transfer high-interest credit card debt to zero-interest cards or use HELOCs, which sounds great on paper. They get that initial breathing room. However, if the spending habits or financial behaviors that led to the debt aren’t addressed, those credit cards often get run right back up.

That being said, every situation is unique. If you’d like to discuss your specific circumstances and explore potential solutions, please reach out. I’m happy to chat with you personally to see if a different approach might be right for you.

Is It Still Worth It If I Can Only Save a Small Amount Each Month? 

That little voice in your head might be whispering, “What’s the point of saving just a few dollars? It won’t make a difference.” But I’m here to tell you unequivocally: YOU ABSOLUTELY YOU SHOULD START!

Think of it like this: monumental achievements aren’t born overnight. They’re the result of consistent, small steps taken over time. Building wealth is no different. In fact, one of the most crucial things I emphasize with my clients is the power of building the habit of saving, even more than focusing on the initial amount.

Get those accounts set up. Put those systems in place. Even if you start with a seemingly insignificant sum, you are actively building a powerful financial muscle. That discipline, that intentionality, is the foundation upon which future financial security is built. As you become more comfortable and see the habit solidify, you’ll naturally find ways to increase the amount you save.

Ready to take that first small, but incredibly significant, step?