Financially Naked

Homeownership is a goal we see a lot with our clients, but how do you know if it is for you! On this episode of Financially Naked: Stories from The Financial Gym, three of our Certified Financial Trainers, Bevin, Jazmin, and Danielle sit down to talk about buying a home. Since all of them have been on various home buying journeys, they share their experiences and what they've learned along the way. They talk about the benefits of owning a home, the costs associated that aren't always obvious, and how to be prepared for it all. Podcast Notes Everyone shares a little bit about their personal home ownership journeys to start the conversation. Jazmin talks about purchasing the home she had been renting. Danielle tells us about finding her forever home in Atlanta Bevin went from owning multiple properties to now being in the process of selling them. Is it better to rent or purchase a home? There is no right answer. It truly depends on your finances, your goals, and what's important to you! Do you plan to live in a place for a long time? Can you afford a down payment? Can you afford to maintain a home? Repairs and replacements can be expensive. Do you want to maintain a home? Do you have the time, energy, or physical capability to do so? Renting allows these things to be taken care of by someone else and are included in the cost of rent. What are some benefits to home ownership? If you know you want to live somewhere long term, owning a home offers a certain stability. You can create a safe space and make it truly your own. There's peace of mind knowing a landlord won't kick you out or sell the place with short notice. What are some unexpected costs associated with home ownership? Repairs can be expensive. Even with inspections, things can be missed. They almost always happen within the first year, but will definitely happen at some point. If you refinance a mortgage, closing costs must be paid again. While a landlord won't raise your rent, taxes can change and increase the monthly financial commitment. Your first purchase does not have to be your dream home! Housing costs have exploded the last few years. If you plan to buy a home, take your time and really do the research! If you are planning to buy a home and want a Certified Financial Trainer to make sure you've planned for it all, check out our newest service, Trainer-on-Demand! Meet The Trainers Meet Bevin, Level 2 Certified Financial Trainer Meet Danielle, Level 2 Certified Financial Trainer Meet Jazmin, Level 2 Certified Financial Trainer

On this episode of Financially Naked: Stories from The Financial Gym, our host is Catriona Williams, Level 2 Certified Financial Trainer. Joining her is the Founder and President of Brass Taxes, a company that specializes in working with freelancers, artists, and other nice people. Today, Catriona and Rus sit down and talk all about how he started doing taxes, the history of Enrolled Agents, what the heck a 'write-off' is, and his biggest pieces of advice for self-employed folks to be prepared for tax time. Podcast Notes Rus was working as a writer and editor in New York for many years. In 2008, he needed to find a day job and started working for his friend's dad doing taxes. He realized very quickly that he had been doing his own taxes badly for years, and his friends probably were too! What started as Rus doing taxes on the side for his friends has transformed into Brass Taxes. They now have a team of creative professionals all trained to be amazing tax advisors. He wanted to create the company that he wished existed when he was working as a freelancer. Rus is an Enrolled Agent, which is different from a CPA. The EA designation dates all the way back to The Civil War! There is a lot of value in having a conversation with someone who understands your industry. You should feel comfortable talking to them, asking questions, and feel confident they understand your day to day. Tax laws are always changing and so are your personal finances. It's not worth teaching yourself how to do taxes every year. Taxes are like a video game. Brass Taxes advisors play the game 300 times a year whereas most people doing it themselves just play it once. An advisor knows the rules and nuances to get the best result. Dealing with taxes is a lot of bad branding and graphic design. It's hard to know what's important when you look at the forms. Brass Taxes advisors specialize in talking about taxes in plain language. They let you know what's important and what you don't need to worry about. When you're an employee at a company, you get a paycheck and the employer withholds taxes for you. Filing at the end of the year is pretty straightforward. If you're a freelancer, have a side hustle, or make untaxed income, it becomes more nuanced. As soon as you're paid money without taxes withheld, poof! You're a business! You don't need a formal structure like an LLC or DBA to be a business. As a business, you are only required to pay taxes on the profit: All income (the money that comes in) - expenses (the money you spend to run the business) . Any money spent that is 'reasonable' and 'necessary' to run your business can be considered a business expense. This is a fluid line and varies depending on your line of work. You can choose to be more aggressive or conservative with your position. You don't need a 'business' bank account, but keeping your business spending separate from your personal spending will make your life much easier. It can be a designated credit card or separate checking account, whatever works for you! Brass Taxes works with freelancers, creative professionals, and nice people who want to understand more about their taxes! They're also working on different options to work with their clients all year round including monthly memberships. It will come with an automated expense tracker and consultations throughout the year! If you want to work with Brass Taxes this year, use code FinGym50 for $5o off the price of your first return. TWO THINGS RUS WANTS EVERYONE TO REMEMBER Keep track of your expenses during the year Know how much you will owe at tax time, and have the money saved! Connect with Brass Taxes Website: brasstaxes.com Email: info@brasstaxes.com Instagram: @brass_taxesCheck out the FAQ If you want to work with Brass Taxes this year, use code FinGym50 for $5o off the price of your first return. Meet The Trainer Meet Catriona, Level 2 Certified Financial Trainer

On this episode of Financially Naked: Stories from The Financial Gym, our host is Sara Belhouari, a Level 2 Certified Financial Trainer based in New York. She is joined by Jessica and Ryan, a married couple who have been her clients since February 2020. Today, they are talking about the importance of showing up for yourself and being open to change. Jessica and Ryan share with us how The Gym has positively changed their lives and why they plan to stay members long into the future. Podcast Notes When Jessica and Ryan first heard about The Gym, they weren't sure about joining, but now feel like it was the best decision they ever made. They found Financial Gym truly makes financial literacy accessible to everyone. Many of the trainers have had their own money journeys or were clients of The Gym themselves. Jessica and Ryan's first session was scheduled on leap day (Feb 29, 2020). They met in person and Jessica was really emotional the entire train ride from New Jersey. When they arrived at The Gym, she felt relaxed. The space didn't feel clinical or scary, it was a cool environment she wanted to be in. Jessica and Ryan were paired with Sara and it was a perfect match. They felt comfortable with her immediately and were able to put everything on the table, emotions and all. At the time, she felt like she had no control. The first few sessions brought a lot of relief and motivation to move forward. The outside perspective of a Financial Trainer is so valuable. If the financial journey is a road trip, your Trainer is the GPS guiding the way and you are in the driver's seat. Since joining The Financial Gym, Jessica and Ryan have made incredible progress! Their savings have grown 200% They've paid off most of their debt In addition, and just as importantly as the numbers, their feelings around money have transformed. Mindset is a huge part of the financial journey. Jessica talks about how as a perfectionist, being open to other perspectives was a challenge for her. She had to be willing to do things differently. People often ask, 'how long should I stay a client at The Gym?' A personal finance journey does not happen overnight. Change is created by showing up, being committed, and doing the work. If you set goals and stay consistent, you will achieve them. Stay with The Gym as long as you're finding value in the service. If the meetings and accountability keep you motivated, stay forever. If you are more self-motivated, three months of membership might be the perfect fit! It all depends on you and your needs. Jessica and Ryan have been clients for a long time and share why they love working with Sara! Since starting with The Gym, they have had constant positive progress. Some wins are small, some are big, but they're always moving forward. They like knowing someone is there to help them plan, no matter what comes up. They've built a strong relationship over time with Sara who has a deep understanding of them and their goals. She's a household name! Trainers really are your Best Financial Friends. When they first started, it was about getting out of survival mode and to a place where they can live their best lives. There's security now there wasn't two years ago. They are proud of their money story and love to share it with others. Jessica never pushes money management or The Gym on people, but she is always happy to share when people are ready to hear it. Advice for folks who are thinking about working with The Gym? You have to be open, ready, and willing to commit. Be honest with yourself and your Trainer. There is nothing to be gained by editing the truth. If you aren't connecting with your Trainer, be brave to ask for what you need. Each trainer has their own unique style and wanting to switch is not personal. Showing up to see your Trainer is showing up for yourself. Meet The Trainer Meet Sara Belhouari, Level 2 Certified Financial Trainer

In addition to working with individual clients, The Financial Gym provides a number of services to companies and membership organizations of all sizes. These can include webinars, engaging online courses, and a new service called Trainer on Demand. To talk about how these services can benefit employees, our host is Sue, a member of The Gym's Business Development Team. Joining her today is Conor, the Learning and Development Manager at Justworks, to talk about the evolution of employee benefits and how Financial Training has had a positive impact on their team. Podcast Notes In 2021, Justworks launched 'Just Be Well,' which focuses on four aspects of employee health for the Justworks team. They want employees to be healthy, happy and engaged so they can continue to grow with Justworks. There are four areas of focus with Just Be well: mental health, physical health, healthy work habits, and social well-being. The Financial Gym benefits fall under the social well-being category. It started with Finance Fridays and webinars and expanded to include Trainer-on-Demand this fall. Employees can turn to The Financial Gym Trainers for answers to questions without worrying about feeling judgment or shame. They can talk about navigating a budget, student loans, saving, or any other financial-related questions. Conor personally finds a lot of value in the service. There are little 'aha' moments while talking through finances with a Certified Trainer. Employee wellness is critical in running a successful business. Thinking about money and budgeting can be stressful. Having a trainer to work through questions with is an amazing employee perk. The goal is to empower people and give them the tools to be successful financially. For people looking for work, employee benefits are a huge aspect of a compensation package. Financial Wellness is only going to become more important over the next few years and helping employees in this part of their life can be transformative. Employee benefits are changing and evolving and will continue to in the next few years. If you're interested in learning more about what benefits The Gym can offer your employees, you can learn more here or get in touch with Sue directly! sue@fingyms.com or enterprise@fingyms.com Check out JustWorks - HR for Businesses WEBSITE: justworks.com

On this episode of Financially Naked: Stories from The Financial Gym, our host is Genar Medez, a Level 2 Certified Financial Trainer based in Los Angeles. He is joined by Bob DePasquale, author of Personal Finance in a Public World: How Technology, Social Media, and Ads Affect Your Money Decisions. Bob is a Certified Financial Planner with ten years of experience and is dedicated to the empowerment of others through financial literacy. Today, Genar and Bob talk about how our relationship with money dictates all other relationships in life and how technology is intertwined in it all. Podcast Notes Bob's personal finance journey started with a recruiter at his wife's job. Bob's mom worked in a bank when he was a kid and taught him the basics. He loves working in personal finance because we all have to manage our finances, no matter how much money we have. It's important for everyone to have an understanding of what finance means in our personal lives. Money is a tool in our lives and we all have a relationship with it. Good habits promote a more positive relationship! Challenging times can bring challenging emotions. When good habits are in place, these times are easier to navigate. Bob's book talks about the importance of building habits. With so much going on, people are making a lot of decisions these days. Develop habits that don't require a lot of brainpower to execute. Make decisions about your savings and debt in advance and use technology/automation to make your life easier. Bad decisions happen when you're mentally exhausted. Spend energy on big decisions and simplify everything else. How has technology and Social Media impacted our relationship with money and our overall personal well being? Technology is an inherent part of many people's lives. It is hard to avoid technology altogether. Tech thinks like we do. We used to only see ads when companies had a big budget for ads. That is much different now. You can use technology as a positive force in your life. Figure out what brings you fulfillment and joy and ensure there is money allocated for those things. These should take priority in your budget. Looking ahead to the future: Technology makes things easier, but also more complicated. It's important to understand the systems and prepare for what's ahead. There are new technologies out there designed to decentralize finance. It is a new system and will continue to grow. Bob thinks of these new concepts as a new way to understand how money works. Before learning about the new systems, an understanding of the current system is required first. Once you want to learn about the new systems, start with learning about Blockchain and Crypto. Bob recommends investopedia.com as a great place to get started. Bob shares an incredible story about his background and why he dedicates his life to serving other people. Resources Mentioned in the Episode:Atomic Habits, book by James Clear Connect with Bob DePasquale Websites: bobdepasquale.com & initiateimpact.com Instagram: @bdepa Twitter: @bdepa LinkedIn: Bob DePasquale, CFP®CAP® Bob's Book: Personal Finance in a Public World: How Technology, Social Media, and Ads Affect Your Money Decisions Meet The Trainer Meet Genar Mendez - Level 2 Certified Financial Trainer

On this episode of Financially Naked: Stories from The Financial Gym, two of our Certified Financial Trainers are discussing consolidation loans. If you have less than $10k in debt, one option is balance transfer cards. For debt greater than $10k, consolidation loans are a better option. Kadri and Mike are co-hosting today to talk through what consolidation loans are, how to address underlying issues before taking one out, and best practices to help you stay focused on the debt payoff journey. Podcast Notes If you have more than $10,000 in debt, loan consolidation can be a great option. It is a personal loan that is used to pay off all of your balances. Instead of managing 5-6 different debts at high interest rates, you can focus on the single loan. It makes for more seamless debt management and more stable interest rates. One of the most important steps is to address the underlying reasons for the debt. Reflect and be honest with yourself. Are you living above your means? Was there a big expense you had to take care of? It is a mix of everything? Life happens, give yourself grace, but don't ignore the reality. Since the personal loan will open all your other lines of credit, not using those cards, or digging yourself deeper into the hole, is vital. Loan consolidation is a tool and you have to put in the work to use it wisely. Take the time to look at all of the different options and really understand the lending contract before signing. A higher credit score will give you more availability when choosing a loan. If you continue to make payments and live within your means while paying off the loan, your credit score will likely jump. This is because when the credit lines are open, overall utilization is lowered, which helps increase your credit score. More options will become available as your credit score goes up. Debt payoff can take many years, and more progress opens up more options. If you apply for a loan and the interest rate is higher than what you're already paying, loan consolidation might not be the best fit. Be realistic about what monthly payment is going to work for you. Be sure to save money while working on the debt. It is impossible to break out of the debt cycle if you are not saving at the same time. Money is emotional, there is often shame attached to debt. Have compassion for yourself, the past is in the past. Feel empowered by your mistakes because they give you the opportunity to make a change. If you need more help with navigating your debt options, check out the new Trainer on Demand program! If you are looking to consolidate debt, check out the B.F.F. Approved Personal Loan Page. Meet The Trainer Meet Kadri, Level 3 Certified Financial Trainer Meet Mike, Level 2 Certified Financial Trainer and Head of Trainer on Demand

On this episode of Financially Naked: Stories from The Financial Gym, our host is Kadri Augustin, a Level 3 Certified Financial Trainer based out of New York and he is joined by Tony Hoong, founder of The CPA Dude! Today, they're talking about how The CPA Dude got started and some general tips and things to think about as tax season approaches and as you plan for 2022 and beyond. Podcast Notes When Tony was young, he learned a lot about taxes from his mom who ran a restaurant. From payroll tax, to income tax and beyond, Tony's journey was launched there with her. His first day job allowed him to learn a lot about the tax codes in all fifty states and he eventually worked at Uber in their tax department. While he was working, he was always answering questions from his friends and family. The CPA Dude branding was his girlfriend's idea! She's behind the name, brand, and logo. In 2019, he made the move from helping friends to expanding to the public. In 2021, The CPA Dude became his full-time work. Kadri and Tony talk about changes and events from the last few years. From the 2018 Sweeping change to pandemic assistance. Things have been constantly moving. Kadri asks why there is so much pressure on the individual taxpayer to show their numbers and figure out how much is owed. If you don't file a tax return, the IRS is going to auto-assess and file one for you, running it with the worst possible results. If you're due a refund, you only have a few years to claim it, so it's important to file and take advantage of all of the credits and deductions available to you. WORKING WITH THE CPA DUDE Quick communication is one of the core values at The CPA Dude. There's nothing more discouraging than reaching out to your CPA or accountant and not hearing back. The team at The CPA Dude is made of both staff members and licensed CPA's. The platform comes with an app and secure portal and app so you can communicate in a text style securely. A staff member will meet with you and prepare the return. Returns are then reviewed by the licensed CPAs before being filed. GENERAL THOUGHTS Tax planning should be part of your regular financial planning. Make the assessment regularly, where am I now and where do I want to be? Between the tax reforms and new interest in crypto, there have been a lot of under withholdings the last few years, resulting in surprise tax bills. Contributing to your retirement accounts can be a way to reduce tax liability and you can contribute up until the filing deadline. If you are a freelancer, sole proprietor, or 1099 contractor, you can reduce your taxable income with business expenses. File your taxes early this year. The IRS is understaffed and underfunded. They're currently behind on processing 6 million returns from last year, so delays are to be expected. If you're waiting for a refund, check out the IRS tracker tool. You can also call, but it can be difficult to get through. If you get scary letters from the IRS, don't panic. Even if you've taken the correct steps, sometimes the delay means they haven't processed your response but their automated letters still go out. If you want to work with The CPA Dude team, head to their website. Financial Gym members and Financially Naked Listeners get 10% off Connect with Tony and his team at The CPA Dude https://thecpadude.com/ Meet The TrainerMeet Kadri, Level 3 Certified Financial Trainer

Today's episode of Financially Naked: Stories from The Financial Gym, two of our Certified Financial Trainers, Myriam and Kadri, sit down to talk about 8 strategies for paying down debt. Whether it's consumer debt, student loans, medical debt, personal loans, or some combination of these, it can be overwhelming to know where to start. Myriam and Kadri talk about concrete action steps you can take to tackle debt and break the cycle. Podcast Notes STOP USING YOUR CARDS - The most important step of getting out of credit card debt is to stop adding more debt. Kadri often talks to his clients about credit card psychology. Using debit cards while on a debt payoff journey will help you reduce spending. When you spend on a credit card, that balance increases. When numbers go up, we get a good feeling. We only have to pay the bill one time at the end of the month, instead of feeling the money leave with each transaction. It can be a challenge, but here are some tips to make the transition easier: Take them out of your wallet if you can. Forget chasing credit card points - it isn't worth the interest and the larger minimum payment Unlink cards to convenience apps like Uber and DoorDash Chase Sapphire Preferred gives you DashPass, the membership program to DoorDash. While this may help you reduce fees, remember that if you are ultimately going to pay interest then any deal can't offset that! There are cases where you have to use your credit card. Maybe you don't have an emergency fund and putting something on your cards will be the difference between caring for a sick family member or not. If you truly want to break the cycle, you need to also work towards an emergency fund FOCUS ON BUILDING AN EMERGENCY FUND BEFORE AGGRESSIVELY PAYING DOWN DEBT This is the best way to break the debt cycle If you've heard the phrase "pay yourself first," this is an example of that. If you are constantly using your spare cash exclusively towards debt and something major comes up, you'll have to rely on your credit cards This can take time. Saving money is a grind, and that's totally okay! Though you won't earn a ton of interest, it's worth it to build this insurance policy to prevent you from using cards. However, there are still ways to be mindful of the interest you're paying - one is through the debt avalanche approach. THE DEBT AVALANCHE APPROACH Tackle the highest interest debt first. If you have an extra $500 to put somewhere (and your emergency fund is fully funded), use that total amount and put it towards one debt, rather than spreading it across a few. This is mathematically the best way to pay down debt if you're going to make additional payments. You may not like math, but you can use it to your advantage by paying down your highest interest rate debt first by putting extra money towards it. You can reduce your debt payments even further with a few tools - one I would consider a little tricky, which is debt settlement, and one I would consider more straightforward, which is balance transfer cards and personal loans. The Snowball Method is another option for paying down debt. Instead of working on the highest interest debt, extra payments are made to the smallest balance debt. This method works well for a lot of people. It comes down to knowing yourself and using whichever method works for you! DEBT SETTLEMENT VS. DEBT MANAGEMENT Debt Settlement The pros: you can potentially reduce the amount of money you need to pay for your debts, and you can use the money you were spending on debt minimums to save for your emergency fund or make ends meet. The cons: your creditors may not agree with debt settlement, your credit score will likely tank, and you could be charged more debt and fees. This is also tricky because you can get in hot water if you choose to not pay your debt obligations to have more bargaining power in the settlement. There are other somewhat shady companies that handle the debt settlement process for you. What they provide is nothing that you can't do yourself. Always be careful and ask a lot of questions when looking into these companies. They'll typically ask you to still make monthly payments that they save on your behalf so they can pay the reduced amount for you later. Debt Management In contrast with debt settlement companies and strategies, there are debt management nonprofits that work with your creditors on your behalf to help lower interest rates, lower fees, and sometimes monthly payments. They help you keep your credit from suffering if you're struggling with your monthly payments and can work with you to create better cash management habits It's important to do your research and ask questions. 'Nonprofit' does not mean they have your best interest in mind. At the end of the day, it is a corporate filing. They look at your full debt picture. If you have cards open, they require you to shut down your cards, keeping just one open. They have relationships with lenders and will go to them and negotiate the interest on your behalf. Instead of paying the lenders directly, the minimum payment goes to the nonprofit. Programs like this have advantages, but you can also do this on your own, though it takes some time and you might have to make a few rounds of phone calls. If you miss a payment, all bets are off. You cannot miss a payment. There is risk there, but that's pretty much how it goes. There are other ways to lower your interest and / or your monthly payments. They are balance transfer cards and personal loans BALANCE TRANSFER AND PERSONAL LOANS Balance transfer cards usually offer a 0% or lower APR, and you move the balance from one card onto this new one, giving you more time to pay down the debt. While helpful to reduce interest payments, this can enable you to spend more because you now have more available credit. Before consolidating, make sure to give yourself some time to get used to a new spending plan that is sustainable for your income. Knowing yourself and your habits is important. To find a list of BFF Approved Balance Transfer cards, check out this page! Nerdwallet is also a great resource when looking for cards. If you already have credit cards, there may be balance transfer options available, so make sure to check those out when you do your research. INCREASE YOUR INCOME This can come from getting a promotion, switching jobs, getting a second job, or starting a side hustle (with low to no startup costs). Earning more money is something Kadri encourages all of his clients to do. It's easier said than done, but Trainers see it all the time with their clients. They'll get a new job with a 40k salary increase or really advocate for themselves and get a raise in their current roles. Think about all of your talents, expertise, and get creative when thinking about how you can make more money. Once you start making more money, be mindful of lifestyle creep. It's important to know yourself and have a plan in place. Take a look at your expenses and ensure they're helping you reach your debt repayment goals. When it comes to building wealth, look at both sides: increasing income and reducing expenses is the key. REDUCE EXPENSES The first step, add up all of your fixed expenses, including debt minimums. How much is left over for your variable expenses, savings, and extra debt repayment? There is a minimum you want to have for your variable expenses, especially in high cost of living areas. When Myriam makes financial plans, she aims to have at least $860 per month or $200 per week for variable expenses. The bare minimum for lower cost of living areas is about $530 per month or $125 per week. It can feel like a lot of sacrifice. You want to check in with yourself and ensure your physical and mental wellness is being taken care of. It's easier said than done. There is only so much that can be cut. Closing the gap between your income and spending is the only way to truly break out of the debt cycle. It is a process and takes time. Be patient and find what works for you. DON'T BE AFRAID TO CONSIDER BANKRUPTCY Bankruptcy gets a bad reputation, but it can be an amazing tool, especially if your debt to income ratio is 50% or above. A quick rundown on bankruptcy: it gives you a lot of protection. Your creditors cannot contact you, sue you, put liens on your property or garnish your wages. You can also sometimes be protected from any income tax penalties for the forgiven debt. It is a tremendous tool to give yourself a clean slate. Once you have gone through the process, the debt is gone. It is a long process and can take months. While bankruptcy does not need to be scary, it should be taken seriously. You can only declare bankruptcy every ten years, so having a plan of action for once the debt is clear is incredibly important! Martinis and Your Money Episodes about bankruptcy Declaring Bankruptcy with Colleen Life After Bankruptcy with Natalie Jean Baptiste From The Financially Free Blog: How to File For Bankruptcy THE BIG TAKEAWAY: Stop using your credit cards (if you can, and there are some situations where you temporarily have to) Build your Emergency fund Debt avalanche approach Debt management vs settlement Debt consolidation using tools like balance transfer cards and personal loans Increasing your income Reducing your expenses Don't be afraid to consider bankruptcy One of the newest programs at The Financial Gym is our Trainer on Demand, where you can schedule a call every month to chat with a Certified Financial Trainer. If you're looking for someone to help you make a debt management plan and click this link to learn more! MEET THE TRAINERS Level 3 Certified Financial Trainer, Kadri Augustin Level 2 Certified Financial Trainer, Myriam Robinson

On this episode of Financially Naked: Stories from The Financial Gym, two of our trainers sit down to Gymsplain student loans. Mike, Level 2 Certified Financial Trainer, is joined by Joy, Head of Trainer Academy and Certified Financial Trainer.The general consensus around The Financial Gym: student loans are really no big deal. Common feelings surrounding student loan debt are often fear, anxiety, and shame. Joy and Mike hope to demystify these loans and provide some tips for your debt payoff journey. You don't have to scale the mountain of student loan debt before enjoying your life. **Please note this episode was recorded before the government's decision to extend student loan payment pause through May 1, 2022. For more information on this check Federal Student Aid website. The advice still applies! Podcast Notes There are two main types of student loans: Federal Loans - provided by the government based on your FAFSA resultsPrivate Loans - provided by a private lender like a bank or company FEDERAL LOANS: there are a few different types of federal student loan options. Subsidized: government pays the interest while you are in school Unsubsidized: You're responsible for the interest accrued while in school Parent Plus: Loans your parents take on your behalf Grad Plus: For graduate students based on a federal aid package All of these federal loans have various repayment options. Standard, income-based, and gradual repayment plans are some examples. Income-based repayment plans all come with loan forgiveness later down the road (20-25 years). Public Service Forgiveness is available if you are employed by a U.S federal, state, local, or tribal government, or not-for-profit organization. This is a 120-month or 10-year program. The Federal Government put an administrative pause on federal loans the last two years as part of COVID relief efforts, which is a huge benefit of federal loans. You can apply for your own deferment or forbearance if you are personally experiencing a hardship. Federal loans can be consolidated into one big federal loan. This opens up other repayment options and can simplify your payments. You can refinance your federal loans into private loans, if you wish. Though it is rarely recommended because you lose the flexibility and benefits that come with federal loans. Unlike other collections, student loans don't go away. You do have the option for loan rehabilitation. It's important to be prepared and organized for this process because you only have one chance with this program. A trainer can help get your ducks in a row. PRIVATE LOANS: Typically supplemental funds families take out if they don't have enough federal aid to cover the cost of school. They can be used to cover living expenses and fees and other school-related costs. These are more similar to a traditional loan because they are held by a private lender, bank or company that handles only student loans They are under no obligation to honor and forgiveness or other programs the government is offering with federal loans One perk of private loans is it is a competitive industry, so there are options for refinancing as your income and credit score increase. OVERALL THOUGHTS ABOUT STUDENT LOANS When it comes to student loans, the goal doesn't always have to be 'get the balance to 0' Student loan payments are money you can't get back once you pay it. Instead of paying student loans off early, there are other financial priorities to focus on, depending on your situation. It could be high-interest debt, saving into an emergency fund, or investing for retirement. Student loans don't need to be an emotional burden or cause you stress. Federal student loans came about during the cold war. They wanted to encourage a population full of people with higher education to keep them competitive in the space race and other global affairs. Because there are no regulations around the cost of school, the price has gone up astronomically. There are a lot of issues within the workings of higher education and we carry that burden on our backs through these loans. It is absolutely okay to just pay the minimum. The government prefers you pay the minimum and use your money to stimulate the economy. Doing things like saving for retirement, buying a home, shopping at local businesses. Meet The Trainers Meet Joy Liu, Head of Trainer Academy and Certified Level 2 Trainer Meet Mike Poulin, Level 2 Certified Financial Trainer If you want one of our Certified Financial Trainers to work with you on a student loan strategy, book a complimentary consultation today!

On this episode of Financially Naked: Stories from The Financial Gym, two of our trainers, Chandra and Garrett, sit down to talk about their plans, goals, and hopes for 2022. They discuss their personal goals, financial goals, intentions, and what about the new year has them excited! Podcast Notes Chandra's word for this year: intent. To be more intentional with friendships, relationships, and partnerships. This includes her relationship with money! When Garrett was thinking about the theme for the year, the word 'breathe' came to mind. It's so important to breathe. To pause, take a moment for yourself, and collect the thoughts. HABITS / INTENTIONS TO BRING INTO THE NEW YEAR Financial health is just as important as physical and mental health. Focus on being intentional about one thing at a time. Trying to change everything at once can lead to burnout. Sustainable habits over time will set the foundation for success. Be intentional with saving and investing. While 'building wealth' is a fine goal, dig deep and find what gets you excited. Avoid playing the comparison game with other people. There is no set timeline for when certain financial goals should be reached. Compare you to yourself and measure growth that way. Without the mindset shift, nothing else changes. You have to believe you can be successful. Take some time to reflect on the wins. Even during times where you feel like you didn't do much, there are wins to be found. Even if you overspend during the holiday season, not adding debt can be a huge win. Even if you have to dip into your savings, they were there and that's a win. Clients who consistently show up for themselves intentionally become more financially savvy. Things are always evolving. Always strive to learn and educate yourself more and more. If there are children in your life, take time to bring them into the fold. The same way most of our first bank accounts are the same as our parents, this can be the same for investment and brokerage accounts. Almost everyone says they wish they would have started investing sooner, so teach the young people in your life! If you fail to make a plan, you plan to fail. You don't have to win the race, but you do have to start walking. Everything starts with the first step, which can be the hardest. Taking the time to learn is part of that first step. The more time and effort you put into anything, there will be change. There's no wrong time to start taking the right strides forward. Time keeps ticking forward. How are you spending your time? Are there areas you want to change? On a daily basis, set your intentions because we aren't promised tomorrow. Tomorrow will take care of itself. Be intentional about what you're going to do today This time and New Year are a blessing. You are here. Take the time to appreciate yourself. Think about your plan of action and move with intention in all aspects of your life, not just the finances. Put your action items out there. Whether that is on paper, to a friend, or with a Trainer at The Gym. About Financial Trainers All of the Certified Financial Trainers at The Gym come from different backgrounds and have been on their own financial journeys. They don't judge and are a safe space to set big goals or talk about things that make you anxious. If you want a hype person on your life team, schedule a complimentary consultation with one of our amazing warm up callers to learn more! As life ebbs and flows, a Certified Financial Trainer will be your accountability partner along the way. Meet The Trainers Meet Chandra - Level 2 Certified Financial Trainer Meet Garrett - Level 3 Certified Financial Trainer