New Blog Address

I will no longer be posting on this blog. You can visit new content at www.moneymanao.blogspot.com 

What's Your Financial Freedom Number?

What is the number that will allow you to be debt free and achieve your financial goals?

The other day I found myself "dream shopping" on Costco.com. I was browsing the furniture section to see how much it would cost to completely furnish a 3 bedroom home with an office and outdoor patio area. To furnish my "dream home" would cost me about $20,000. (Although, in reality I am a bargain shopper and would probably spend closer to $12,000-$15,000 on the same or similar furniture).

This then led me to figure out how much of a down payment we would need to put at least 10% down on a home and to keep reasonable monthly mortgage payments. So based on average home prices here in Hawaii and what we would have in mind for our first home, we need about $42,500 for a down payment.

But of course, before we can begin to save for a home we need to have all of our debts paid off and a 3-6 months fully funded Emergency Fund. So if I add up all of these numbers and round up we need a total of $200,000 to get us to this place.

This number sounds outrageous...however now that we know how much money it'll take to get us to that place of feeling financial freedom and accomplishing a major life goal of owning our own home, we can set-up our financial plan to help us achieve this goal.

This now puts in to focus how much income we need to be able to achieve this goal in a reasonable amount of time. I already have my cards in play with going for my Masters Degree which will allow me more opportunities to earn more income and reach my goals.

So our number is $200,000! What's your number? 

You can't get to where you want to be, 

if you don't know where you are going! 

Call for Volunteers for Financial Literacy Movement

June will be a busy month for me and the Financial Literacy Movement.

• 3 Community Financial Literacy Workshops
• 1 Guest Speaking engagement on Financial Literacy for families for the clients of a specific organization
• Several Private Personal Finance Consultations

I also hope to lay the groundwork for a Waianae Community Financial Literacy Fair to be held this fall.  Incorporated in this fair I am looking at getting the local schools involved through Financial Literacy PSA Video contest and a Keiki Art contest to create a Financial Literacy Calendar that will help raise funds for the movement and provide Financial Literacy Education in the local schools.

I cannot do this alone, and I appreciate all the support that my family and friends have given me so far. I am currently looking for dedicated volunteers who would like to get involved in the movement. Here are some openings that I am seeking to fill:

Workshop Assistant
Manage the registration table at each workshop, help in set-up of workshop venue, distribute handouts and activities during the workshop, and aide in breaking down and cleaning up after workshop. Time Commitment: 2.5 hours per workshop. 

Keiki Art Contest Project Coordinator-
Work with me to plan, organize, and implement Keiki Art Contest, will be the liaison with each school in the community. Time Commitment: Must be available at least 2 times a month from June - December

PSA Contest Project Coordinator
Work with me to plan, organize, and implement Financial Literacy PSA Video contest, will be the liaison with each media program at the local schools.
Time Commitment: Must be available at least 2 times a month from June- December

Financial Literacy Fair Committee Chairperson for the following committees: 
             - Marketing and Promotions
             - Service Provider Coordinator
             - Guest Speaker Coordinator
             - Donations/Sponsorships
Time Commitment: Must be available at least 2 times a month from July-November.

If you or anyone you know are interested in any of these volunteer positions, Please submit the following to saydeepojas@gmail.com (Serious Inquiries ONLY):  

1. Brief Bio about yourself, please include your education and professional background (500 words or less)
2. Statement about what Financial Literacy means to you and WHY you want to be a part of the financial literacy movement. (500 words or less) 

Although not necessary, you may also submit a current resume.

I am also currently volunteering my time and self-funding the Financial Literacy Movement, however I will be writing these or similar positions into future grants where there may be paid opportunities to continue this work in the community. Be assured that that your time, work and dedication to the movement will be recognized.

Is Your Spending Out of Control?

I came across an article from the National Foundation for Credit Counseling that gave readers a reality check on their spending. Here is what the article shared...

10 Warning Signs to determine if spending is OUT OF CONTROL 

1. Purchases hidden from others

2. Bills paid late or ignored

3. Checking Accounts routinely overdrawn

4. Credit essential to maintain current lifestyle level

5. Unwilling to review how money is spent

6. Unaware of how much is owed

7. Items routinely purchased, and then returned

8. Shopping used as a salve for emotional stress

9. Unwilling to set financial goals

10. Afraid to check credit report and score

Prepare for Financial Success Workshop Series

Financial Literacy Movement Update

Here is the latest news on the Financial Literacy Movement here in Wai'anae.

On-Going Personal Finance Consultations
I have been meeting with clients for a FREE 90 Minute One-on-One Confidential Personal Finance Consultation for the past month. I work with the individual or family to assess their current financial situation and help them develop a plan to meet their financial goals.

Upcoming Workshops
Money Talks For Kids
I have been asked to facilitate a workshop for parents of children 0-3 years old who participate in the INPEACE Parents as Teachers Program in June. It will be a 60 minute engaging workshop that will focus on talking about money with young keiki and letting families know that it's never too early to start learning about finances.

Ready for the "Real World" Series
I will be holding a FREE workshop for the Graduates of the Class of 2013 and their families in Waianae this summer. Whether going off to college in the mainland, continuing education right here at home, or entering the workforce, the workshops will include valuable information to prepare graduates for the "real world" and set them on the right path to financial wellness and responsibility.

Future Events
I recently submitted an application for a micro-grant from Awesome Foundation O'ahu. If awarded, the monies will go towards holding a Waianae Coast Financial Literacy Fair. This will be an engaging and interactive family event that will consist of various service providers, break out sessions, guest speakers and interactive financial learning activities for children and youth. This event will be held late summer/ early fall. If I do not receive the micro-grant that I applied for, I will seek alternative funding through sponsorships and/or kickstarter.

If you are interested in any information about the above information please contact me at (808) 542-6245 or saydeepojas@gmail.com. I am also looking for volunteers and those who would like to become a part of the financial literacy movement.

What is your Financial Four?

When it comes to finances there are many topics to learn and educate yourself about. Anything from Emergency Savings, Calculating Retirement, Tax Time Planning, Creating a will, Understanding Income, and many more. When faced with all these topics to learn, it may be overwhelming. I discovered this fun and educational activity based on a variety of financial topics. Similar to a bracket system like the NCAA Final Four, the National Endowment for Financial Education and Financial Planning Association created financialfour.org.

I invite you all to complete the activity and see what financial topics are most important to you and also compare to others who have completed the activity. Here are my Final Financial Four

1. Pay Yourself First
     -Automate transfers directly into savings
     -Build savings into monthly budget

2. Tax Time Planning
    - Develop a strategy to do even better financially next year
    - Manage your tax refund to pay debt, boost savings, etc.
    - Bunch qualified tax deductions

3. Emergency Kit
    - Ensure that it is portable should an emergency or disaster occur
    - Include important financial documents and small amounts of cash

4. Understand Income
     - Know what is in your paycheck
     - Complete withholding calculator and adjust withholdings

Through this exercise, I now have a list of areas that are prioritized so that I can tackle each one to better my financial wellness. I also discovered that out of the 32 Financial Topics, I am already implementing 22 of them in my life.

I will be utilizing this exercise in personal consultations as well as group facilitated workshops and events. Have fun completing this exercise and feel free to share your Final Financial Four.

Certified Financial Education Instructor Designation

After a few months of going through training and coursework for my certification, I am proud to announce that I am a Certified Financial Education Instructor.

 

The coursework I completed provided me the knowledge, credibility, and confidence that I need to effectively teach financial literacy. As a graduate of the program, I now have the opportunity to be a featured speaker, teach classes, host financial literacy events through the National Financial Educators Council. However, what is more important to me at this time is to be a guest speaker, teach classes and host financial literacy events right here in my community of Wai'anae.

My plans are also to bridge my Masters degree with this certification and provide consulting services to organizations to create financial literacy programs within their organization or assess and strengthen existing programs within their organizations. I will also continue to conduct workshops in the community and provide one-on-one personal finance consultations.

If you or anyone you know would benefit from my services as a Financial Education Instructor please feel free to contact me at saydeepojas@gmail.com.

Pinching Pennies: Gas and Transportation

Pinching Pennies, Bargain Hunting, Scaling Back, Downsizing. These are all terms that refer back to saving money. A little bit of cost savings here and there can go a long way.

Gasoline prices are always pretty high here in Hawaii. Currently the average gas price is $4.22 per gallon and goes as high as $4.35 per gallon. If you are a warehouse member (Costco or Sam's) the prices are around $4.09 per gallon.

When it comes to saving on gas there are a few ways to cut costs:

1. Buy Cheaper Gas - If you plan ahead you can save quite a bit of money on gas. Pay attention to your gas gauge and don't wait until the light goes on to put gas. For me, I plan to put gas at Kapolei Costco when I have to go out of Wai'anae and run errand in Kapolei or town. That way I don't have to make a special trip just to put gas and I don't get stuck spending more by having to put gas at the Wai'anae gas stations.



For Example:

     My pilot has a 20 gallon capacity. If I fill up in Wai'anae at the average cost per gallon...

     $4.22 per gallon x 20 gallons = $84.40 for a full tank

     If I plan it right, and put gas at Costco...

     $4.09 per gallon x 20 gallons = $81.80

     The savings of $2.60 per full tank may not seem that much, but if you fill up once a week that translates to $135.20 savings a year.

2. Drive Less - If you are like me, I'm not a big fan of public transportation, I like to go where I want, when I want. I don't want to feel confined to a bus schedule. This doesn't mean that I can't save a buck or two on transportation. Planning trips into town to make sure you get all your errands done in a specific area that you are travelling to can results in cost savings.

For Example:

     Sam takes Ku to school 2-3 times a week (because we carpool). That is about 46 miles round trip from our house. If Sam drops him off and comes home, then has to go back to pick him up that is 92 miles in one day.

     Each mile driven costs us:

     $81.80 per full tank / 400 miles per full tank = $0.20 per mile

     Two Round Trips to Waiau Elementary and back costs us:

     92 miles x $.20 per mile = $18.40 per day (not including other stops and detours along the way)

    A better solution to save monies is for Sam to stay in the Pearl City area and work from a Starbucks or run errands in town instead of driving all the way back home. Cutting down the travel to one round trip would save us $9.20 a day.

     Throughout the school year this would save us:

     90 days (approx. travel days to take Ku to school) x $9.20 savings
     = $828.00 savings per school year by reducing travel to one round trip

Because we carpool we save additional monies on gas and transportation...

     90 days (approx. travel days that carpool takes Ku to school) x $9.20 per round trip
     = $828.00 savings per school year from carpooling

Other ways to save on gasoline costs:
 - Buy a better fuel efficient car (hybrid or electric)
 - Carpool
 - Bus or Bike to Work

Long Lines at the Grocery Store on the 5th

May day is lei day in Hawai'i. For many the first of the month is a breath of fresh air, a chance to start new at the beginning of the month. For me it's a reminder that I need to do my grocery shopping in the next 2 days in order to beat the crowded parking lots and aisles and long lines. I always wondered why the grocery store was always so packed when it came to the 5th of the month, until I realized that the 5th is the day when welfare recipients receive their benefits via their EBT cards.

Then the question dawned on me, why do these families fill up their wagons to the brim so early in the month? Do they not know how to budget their food stamps to last them throughout the month? After talking to a few friends of mine who previously received food stamp benefits, there are more than one reasons why the grocery stores are so crowded on the 5th.

The first is what I suspected, lack of budgeting skills. Some families spend all their food stamps at the beginning of the month and their pantry's are bare come the end of the month that they need to re-stock as soon as their EBT cards are reloaded. My solution to this issue is to provide budgeting classes to those who receive welfare benefits.

The average Food Stamp benefit per person in the state of Hawaii is around $215.00. That means a family of 4 will on average receive $860.00 in benefits. In this example, if a family spends most of their food stamps at the beginning of the month, then they are spending over $500 on one shopping trip. The question of food storage and nutritional choices also comes to mind, but that is a whole different blog topic.

The lack of proper budgeting skills also raises the question about the habits that some families are forming because of their food stamp benefits. If I was GIVEN (not earned)  in excess of $500 a month to feed my family of three, I would have a field day at the grocery store, I wouldn't have to shop the sales or plan my shopping trip to the penny. I would pretty much be able to walk around the store grab what looks good and probably still walk out with a decent balance on my EBT card. Since there is no time limit on receiving Food Stamp benefits, this practice at the grocery store becomes habit. So when I no longer qualify for welfare benefits, I am forced to pay for my groceries with the money I earn. Chances are I won't have $500 in discretionary income to spend on groceries each month, but the habits that I have formed over time because of the lack of budgeting skills will hinder me from making smart choices at the grocery store and make it difficult for me to feed my family. This example does not apply to all families who receive food stamps, but I do know that this problem exists.

Another reason why the grocery store is overcrowded at the beginning of the month is because of the illegal activity of selling excess food stamp balances to others in exchange for cash. For example, I have worked with a family of 4, a mother, father and 2 young children under the age of 5 who receives $989.00 a month in food stamps. This family also receives WIC and is expecting their 3rd child in a few months. This family does use the entire $989.00 to feed their family, therefore they are left with an excess balance of $300 to $500. Because this is a similar situation for many families, some families resort to selling that excess balance in exchange for cash to be able to spend the money on other things that they would not be able to purchase with their EBT card.

In my opinion, the welfare benefits system needs to be revisited. I understand the positive benefits of the welfare system for those who really need it and do not abuse the system. However, I am very aware of what really goes on with some welfare recipients. To me many are GIVEN these benefits which are meant to help them become self sustainable, but in turn only causes the cycle of poverty to continue.

Yet, another reason why I am an advocate for Financial Literacy and Education. Other states require welfare recipients to take budgeting and basic personal finance classes in order to receive their benefits, my goal is to bring this requirement to the State of Hawaii. I know that it will take time, but I know that it will only benefit the people of our state and rise many people out of the depths of poverty.

*Disclaimer: This blog is my opinion and is no way written with the intention of offending anyone.

Financial Literacy Movement Update

National Financial Literacy Month is now over, however my commitment to the Financial Literacy Movement is still going strong. Last week I was invited to participate in a Hawaiian Resource Night and set-up a table to share Financial Education. I utilized the opportunity to gather data via a survey, share financial education through a trivia game, and also offer attendees a FREE confidential one-on-one Personal Finance Consultation. The event lasted 2 hours and there was non-stop traffic coming by my table. I was able to educate people in a fun way through the trivia game and was able to answer a few on the spot questions in regards to savings products, credit scores, etc. There were about 80 people in attendance and I was able to gather 30 surveys and had 11 people register for their free consultation. The next few weeks I will be meeting with those that took advantage of the consultations and I look forward to helping these individuals who are ready to take control of their finances.

As I continue this journey I have many smaller plans in the works that encompass a Financial Literacy Movement. These smaller projects include a Financial Education Fair and Community Event for the Wai'anae Coast, a pilot program for third and/or fourth graders introducing them to the concept of responsible personal finance, as well as continue to hold workshops through the organizations that invite me to share financial education with their clients.

I want to mahalo everyone for their continued support and I am looking forward to what the future holds for me as well as those who I am able to kokua.

Financial Literacy Trivia: Credit

Subject: Credit
If used properly Credit can be your friend. If not used properly Credit can consume your life. Test your Credit knowledge, see if you can answer these 3 questions.

1. Name the three main credit bureaus

2. True or False?
    You should only check your credit when you want to apply for a loan.

3. Which of the following is NOT a way to maintain excellent credit.
    a. Pay your bills on time
    b. Space out new credit
    c. Do not run your credit often
    d. Make only the minimum payments

------------------------------------------------------------------------------------------
Answers:

1. Experian, Equifax and Transunion 

A credit bureau collects and stores credit information on consumers. Each has its own records and individual scores.

2. False

Check your credit once a year. If you have been a victim of identity theft, it is recommended to check your credit every 6 months.

3. (d) Make only the minimum payments

To maintain excellent credit it is important to actively use your credit and pay everything off in full every month.

Financial Literacy Trivia: Budget

There are many misconceptions when it comes to the topic of Budgets and budgeting. See if you can answer these 3 questions.

Subject: Budget

1. Good money management involves having enough money to cover all your __ __ __ __ __, while purchasing __ __ __ __ __ only when you have extra money to do so.

2. True or False?
A budget is only for those who are poor.

3. Which of the following are benefits to budgeting?
a. Control
b. Organization
c. More Money
d. Opportunities
e. All of the Above

------------------------------------------------------------------------------------------
Answers:

1. NEEDS / WANTS 

NEED: Something you must have for survival -- something you cannot live without. i.e Food, Clothing, and Shelter

WANT: Something you would like to have -- something not absolutely necessary for your survival, but that you would enjoy having. i.e. iPods, designer clothes, vacations, Xboxes

2. False

A budget is simply a plan for how to handle your money, a roadmap to give you the money to live the lifestyle you want. 

3. (e) All of the Above

Control - Knowing exactly how much money you have at any given point, put your in the financial driver's seat. 

Organization: Keeping your finances in order is vital, and having a financial plan keeps you organized. 

More Money: Working within a budget will leave you with more money every month. 

Opportunities: Sticking with your budget will open up many financial windows of opportunity. 

Financial Literacy Trivia: Saving

Test your financial knowledge with these trivia questions.

Subject: Saving

1. If your monthly expenses equal $1,000, What is the recommended amount to have in your Emergency Fund? 

2. True or False? 
    A Certificate of Deposit (CD) is an example of a savings product. 

3. Which of the following is NOT a way to save more money? 
    a. Earn more money
    b. Take out a loan
    c. Cut down expenses

------------------------------------------------------------------------------------------------------------
Answers: 

1. $3,000 - $6,000. 

Emergency Funds should equal three to six months of living expenses. 

2. True

A CD is a federally insured savings product that earn interest. You promise to keep you money in for a certain amount of time. Penalties typically apply to early withdrawal. 

3. (a) Take out a loan

Week # 16: Financial Challenge & More Savings Ideas

Week #16:
Deposit Amount: $16.00
Total Savings: $136.00

We are just about 1/3 of the way through 2013! This Financial Challenge is just one way you can add to your savings account. Here are some other alternative ways to put a little bit away over the year...

1. Power Hour
Put away your hourly wage once a week, every paycheck, or once a month.

Example: You make $12.00/hr.

If you put $12.00 into savings a week, you would have $624.00 at the end of the year
If you put $12.00 into savings each paycheck, you would have $312.00 at the end of the year
If you put $12.00 into savings each month, you would have $144.00 at the end of the year.

These amounts may not seem that big in comparison to following the 52 Week challenge, however every penny saved is a step in the right direction on the path to financial wellness. 

2. Percentage Savings
Put away a specific % of your income away once a week, every paycheck, or once a month.

Example: You Make $12.00/hr at a Full-Time Job. Your gross income is $480.00 per week.

If you put 5% into savings a week, which is $24.00 a week, you would have $1,248.00 at the end of the year.

An easy way to do this is to set-up direct deposit through your employer (if they allow) and have a certain percentage go directly into a savings account. If you don't ever see the money, then it doesn't seem like you are saving and before you know it, you have over $1,000 in your savings account.


3. Coin Collection
When ever you make a cash purchase and get coins for change, put that away in a coin bank. The amounts will add up fast. I tried this over a 6 month period when I was in college and saved over $200.00 in that short amount of time.

Another Opportunity to Share Financial Literacy

I was invited to share Financial Literacy information at an event next week. It's a community event that will feature na mea Hawai'i along with college support services for Native Hawaiian students. Because I want to reach the Wai'anae Community, which is predominantly Native Hawaiian, I saw this as an opportunity to collect data via a survey and also just talk candidly with people from the community about the need for financial literacy. I will also utilize this event as a way to share small bits of information about savings, budgets, and credit, and of course I will keep with the theme of the evening and include hua 'olelo hawai'i.

If you are available check out the Ka Lama Education Academy Na Mea Hawai'i Hawaiian Resource Night Event next week Wednesday, April 24, 2013 from 5:00pm -7:00pm at I.N.P.E.A.C.E Wai'anae Office 86-080 Farrington Highway Suite 201 (Behind Rent-A-Center/Hanaras - Upstairs from Waianae Dialysis). Please be sure to stop by and say hi.

52 Week Financial Challenge Updates

Financial Challenge Updates:

I apologize for not posting the reminders for the financial challenge deposits. Here is the current information:
Week #14
(04/05/2013)
Deposit: $14.00
Total: $105.00

Week #15
(04/12/2013)
Deposit: $15.00
Total: $120.00

Again, for those of you who have missed a week or stopped awhile ago. You can either catch up or just pick right up where we are now. For example, if you stopped in Week #10 and you have $55.00 in your Savings. Just start this friday with $16.00. Don't worry too much about catching up unless you have the means to do so, at the end of the year you would still have $1,313 even if you missed these past few weeks.

Increased Credit Card Spending = Stronger Economy... I beg to differ

I came across a headline that read "Hawaii credit and debit card spending up 11%" This is great for Banks and Credit Card Companies and HORRIBLE for consumers, like you and I. These numbers were based off of data from First Hawaiian Bank so of course the article goes on to talk about how Sales in Hawaii have gone up and the President of FHB is quoted as saying "This is a good indication that our economy is getting stronger." 

People are spending more money, great for businesses and the overall Hawaii economy. However, if people are using more and more credit cards to purchase items from these businesses, then what is that doing for the people of Hawaii? Putting our people in debt is what itʻs doing! And that is not right in my book. I would be happy to see a headline that reads "Sales in Hawaii are up, Meanwhile consumer credit card debt is at all time low!" Then our economy will be truly getting stronger. 

Second Financial Literacy Workshop in the books

This past Wednesday I was invited to share Financial Literacy and Education to a group of college interns who are a part of an Individual Development Account (IDA) program. This was the last of a series of classes that they were required to attend, so a supervisor for their program let me know that a lot of the students were interested in Investing.

I was excited that a group of 19-20 years old would be already thinking about investing. However, I am not an Investment Advisor and did not want to get too deep into Investing. I wanted to make sure that I gave them an overview of how to make sure you are in the position to invest and what a financial plan looks like. I shared information with them about facing financial fears, creating short term financial goals, the importance of a financial plan and a short introduction to savings products and investment types.

To make sure that the students understood why I am passionate about financial literacy, I wanted to take the opportunity to also share with them MY financial story. Majority of my financial blunders happened to me when I was in college, so I knew that sharing my story with them, might help them to think twice about their finances so that they donʻt make the mistakes that I did when I was their age. It was my first time sharing my story in a public setting, I was nervous about making myself vulnerable to a room of young students and their advisors (some I also know in my personal life). However, I felt that they listened to my story and were able to learn from what I shared with them.

This group provided great feedback about the presentation and also provided me information that will be useful in the development of my Financial Literacy Program. I really enjoyed sharing with this group and I look forward to working with this program again in the near future. Other opportunities have also come up for me to continue to share Financial Literacy and Education with other groups. I am excited what the future holds for me in this season of my life, and I am thankful for the many friends and family who are supporting me in this venture.

Sticking To Your Budget

So youʻve directed your money WHERE to go by creating a budget, youʻve told your money WHEN to go by scheduling your budget.....Now What?

Sticking To Your Budget
Like any plan, it means nothing without a little action put behind it. So now you must stick to your budget. This is the step where a lot of people start off real good and then one slip up and the budget is out the window. Kind of like going on a strict diet, you do well for a couple of weeks and then go to a party, pig out and thatʻs it....no more diet. The key word here is STRICT. Although a budget is meant to help you stay disciplined in the way you spend your money, a budget is not meant to RESTRICT you in any shape way or form. A budget is merely a way to make sure your financial obligations are met on time and that you have money available to do the things that you want to do, so you can live your life they way you wish.

If you find that you donʻt end up with a lot of money to do the things you want, this is where you have the opportunity to take inventory of what you are spending your money on and if it matches the lifestyle you wish to live. If it doesnʻt match, then work to get rid of the financial obligations that are holding you back. Keep in mind that the change wonʻt happen instantly, just like you wonʻt lose 40lbs in a week.

One tip I have to help you stick to your budget, is through accountability. If you created a couple or family budget then make sure everyoneʻs goals are aligned, and hold each other accountable for each persons actions. If someone does a good job by forgoing that extra stop at Starbucks a couple times a week. Acknowledge that victory. If someone goes a little overboard with an unplanned and unnecessary shopping trip, call them out on it as nicely as possible. Let them know that because they spent more than budgeted for a shopping trip, that there is an opportunity cost to that behavior, because that money was supposed to go towards something else.

If you created a personal budget, then find a trusted friend or family member who agrees to be your accountability partner. Let them know your goals and ask them to help you achieve them by checking in with you from time to time on how you are doing with following your budget.

At the beginning, following a budget will be difficult, youʻll have to make adjustments to your budget as you go through the first few month. Once you get the hang of it and your behavior with money is aligned with your budget, then you will see the fruits of your labor, by eventually reaching your financial goals.