Make saving and investing a priority this year.
While New Year’s resolutions typically focus on hitting the gym, eating healthier or spending more time with family, many facing increasing living costs and higher monthly bills should make a financial health check a resolution worth putting to the top of the list.
The United Food Bank of Plant City (UFBP) is helping make the resolution a reality by kicking off the new year with monthly financial literacy classes, hosted by Karie Pate. The free classes cover a range of essential topics including How Not To Die Broke on Wed., Feb. 7 and Mind Over Money on Wed., March 13. Classes are held at 10:30 a.m. and limited to 25 participants. Call the UFBPC at (813) 764-0625 ext. 5 to register for the classes.
In addition, the Plant City Observer staff caught up with Mayor Nate Kilton, the owner of Sedita Kilton Life and Wealth Management, LLC, and asked him to share words of wisdom on why financial health is important and steps to take to begin to build a wealth portfolio. With degrees in Accounting and Finance and a Master in Business Administration and designations as a Certified Public Accountant and Certified Financial Planner, Kilton is an experienced professional who has helped many people reach their financial goals.
1. Why is a budget an important part of someone’s financial plan? How do people go about creating one?
A budget is a guideline. I think some people don’t budget because they don’t know where to start, and they don’t want to take the time to keep up with it. Something is better than nothing. If you aren’t intentional about your spending the money will evaporate on frivolous things. Start the budget with necessities like housing costs, food, etc. After that set aside at least 10 to 15 percrnt of your gross income for savings and investing. Whatever is left can be categorized into items like gifts, travel and other non-essential items.
2. What are some tips for people to better manage or eliminate debt?
Always remember Proverbs 22:7 “…the borrower is slave to the lender.” It’s ok to have debt for items that are long term investments that are expected to increase in value such as a business, a home or other real estate investments. Avoid consumer debt whenever possible. This includes vehicles. You may not be able to pay cash for a car or truck that you need to get to work, but you don’t need to spend more on it than you can afford. If you can’t pay cash or pay-off a credit card at the end of the month (to avoid interest and penalties) on items such as electronics, furniture, or clothes then chances are you don’t really need it, and you shouldn’t pay the extra interest to buy it.
3. How do people prepare for life’s unexpected financial challenges?
It’s important to have an emergency fund. Put away as much cash as you can in an account at the bank that you can get to quickly. Many people live paycheck to paycheck so it may be difficult to do this, but I know a lot of folks who are very frugal and are able to save for a rainy day even on a limited income.
4. Is there a big secret to financial success? Many folks think you can get rich quick. Is that just a myth?
Some people do get rich quickly, but it’s usually luck (e.g. a lottery ticket) and isn’t really likely to happen to most folks. The secret to financial success is very simple. Spend less than you make and invest the difference over a long period of time. There is no substitute for the power of compounding interest. It works against you regarding consumer debt, and it works for you as a saver and investor.
