Personal finance experts talk about budgeting, goals, paying down debt, and savings during a free webinar

NJ.com hosted a personal finance webinar this week where experts shared tips and information on implementing a financial strategy for 2022 and beyond.

As part of Empower U’s new free virtual series of events, the New Year’s Money Moves symposium focused on four financial categories – goal setting, budgeting, debt repayment and savings.

Certified financial planners explained the need to set realistic goals for the short and long term, and discussed the difference between fixed, variable, discretionary and non-estimated expenses.

Karen Price Muller of NJ.com moderated the webinar, which included a panel discussion and live Q&A.

The members of the committee were Diva Banampore, CFA, CFP and owner of Sarsi, LLC, as well as Stephanie Spies, CFP and financial advisor at Modera Wealth Management.

These are some of the headlines:

When setting a goal:

“Begin to understand yourself first,” Banampore said. “You know, mountaineers say this all the time, ‘It’s not the mountains we conquer, it’s us ourselves.’ So financial planning is a lot about managing your emotions and your weaknesses and playing with your strengths.

“I always say, start by understanding yourselves. Start by understanding your values, what is important to you, and then make a plan that aligns with your values, because that is when you have the highest likelihood of success over time.”

In budget tools:

“A budget is something very unique and personal to everyone,” Spies said. “There are different apps and different things you can do. There are some that pay for it like Mint, Teller Money, You Need a Budget and there are free resources available. Some people still like to do it the old-fashioned way with a spreadsheet.

“Also, don’t be afraid to take a look at the information you might be able to get from your credit card company. I know a lot of them send a breakdown annually of what you’ve spent, and sometimes that can also give you a really good head start.”

About debt repayment strategies with savings:

“For those of us in finance, we often talk about how complexity is the seventh wonder of the world, and it can really help or hurt you,” Spies said. “In terms of debt, compounding is your biggest enemy. We often focus on encouraging our clients to pay off high-interest debt first to mitigate and manage some of this complexity over time, which will allow you to pay off debt sooner and work towards your other goals.”

Paying off high-interest debt is one strategy you can use to tackle debt and achieve goals, Banampore said, but there are other strategies that work as well.

“Make sure you pay all your minimum debt,” he said. Second, start creating an emergency fund. Third, take advantage of any 401k matches you have and then you can start attacking your debt more consciously.

“You have two strategies, you can either pay off the high-cost debts first or you can start paying off the smaller balances. There are pros and cons to both, and you should choose what you think you can stick to. But the whole idea is to pay off all your debts, especially bad debts as quickly as possible” .

About savings plan options:

While discussing saving for retirement and college, Spies explained how 529 plans worked.

“529 plans are a tax-efficient way to be able to save for college, but they work like retirement accounts in that the money grows in a tax-efficient manner,” she said. “For 529, you make contributions, and (depending on where you live and your income) you may be tax deductible.

The intent is that this money grows over time for the college, and as long as it is used for so-called qualified education expenses, and things like tuition and books, that money can be withdrawn to pay for those expenses without any tax implications.”

How to watch a free recording

Panambur and Spies answered attendee questions about mutual funds versus index funds, emergency funds, retirement prioritization, benefits of retirement plans such as 401K accounts, traditional IRAs, Roth IRAs and more.

To see the full on-demand program, watch the recording here or at the top of this article. To receive updates on upcoming events and webinars, register here.

About NJ.com’s EmpowerU Virtual Event Series

EmpowerU is a virtual event series that helps the state of New Jersey learn, plan, save, and grow. Powered by NJ.com, EmpowerU events breathe life into our trusted journalism to educate, empower, and empower attendees on the topics that matter most to them.

NJ.com and The Star-Ledger journalists host interactive panels featuring industry experts, public figures, mentors and pioneers. The featured event categories for 2022 are Finance, Healthcare, Parenting, Jobs, and Education.

Subscribe here to get news and updates about EmpowerU’s free future virtual events.