You might be a DRIVER if:
You’ve received informal education
It’s okay that you didn’t get a degree in finance! You’re reading articles, listening to podcasts, going to events and maybe even taking classes on financial management. This is all great--keep it up! Here are some more resources for you to check out to continue learning: http://www.diymoney.org/ and https://www.theinvestorspodcast.com/millennial-investing/.
You could use help adjusting your current budget
Maybe you’ve been sticking to a budget you made ages ago, but it’s time to adjust things or maybe you’re so close to finalizing a budget, but you could use an extra eye from an expert. Shantay would be thrilled to help you!
Want Shantay as your financial coach? Learn more here.
You have a fair to good credit score.
Did you know banks offer complimentary credit score tracking that’s free with an account? They link to Equifax, TransUnion, Experian, which are all good places to keep an eye on your credit score.
Make sure to examine your credit report and check that everything being reported about you is correct. A lot of people have information on their credit report that needs to come off or may not be theirs at all. This will help you come up with a game plan and/or next steps to take your credit score to the next level.
You’re looking for tools to help you stay grounded on your financial journey
The good news is that there are a plethora of resources out there to help you OWN your finances. You can grab your own copy of O.W.N. I.T. today and even chat with Shantay!
Additionally, you can check with your financial institution for resources catered to you, track your spending habits using an app like Mint or TrueBill, or create and manage your own budget on a monthly basis.
You’re generally comfortable talking about finances
These are three reasons why some people don’t open up about their finances:
Privacy = Some of us have been taught that money matters are personal and personal matters are always kept private.
Fear = Most of us close the door to talking about money because we feel more comfortable with people thinking everything is okay.
Judgement = A lot of us want to avoid being labeled or criticized for not knowing much about managing money.
Some steps you can take to become even more comfortable in talking about your finances is going to your local bank or credit union and asking questions, reaching out to family or friends who you respect about money management, and opening yourself up to soak in information from different resources throughout your day--you’re making your way on your financial journey!
You have a checking/savings account but you want to know more about IRA’s and 401K
It’s important to start saving for retirement now--the earlier, the better! Make sure you are looking into options with your current employer because most employers match up to around 3-5%. A great way to start a conversation with them is by reaching out to the Human Resources department. You can also go to your banking institution to see if you can open an account for retirement.
Here’s some information on IRA’s:
Traditional IRA = Your investment earnings are not taxed as long as the money remains in the account. Withdrawals are taxed by your tax rate at that time. This is advantageous for those who are in a higher tax bracket now than during retirement.
Roth IRA = While contributions are not deductible, meaning there’s no upfront tax break, withdrawals in retirement are completely tax free. Savers who anticipate being in a higher tax bracket in retirement, can take advantage of those tax-free withdrawals.
Simplified Employee Pension (SEP) IRA = This is set up and funded for employees by an employer who gets tax benefits from the setup. Your earnings grow tax free and distributions at retirement will be taxed.
Self Directed IRA = This follows the same rules as Traditional and Roth IRA’s except for one big difference: what goes in the account. With this IRA, you’re allowed to own assets such as real estate and hard assets like gold and privately held companies. Many experienced investors who want access to alternative investments such as real estate and nontraditional businesses use this IRA.