5 Essential Tips To Manage Finances

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This is part of a sponsored collaboration with Prudential and DiMe Media. However, all opinions expressed are my own.

I am an enigma. As a Latina woman raising two children in Southern California, the fact that I own a home, operate a small business, and have zero debt is practically unfathomable. While I am far from “financial freedom,” I have worked hard over the past decade to understand and manage my finances. As part of Hispanicize Los Angeles, Prudential was on-site to offer influencers tips, tools, and resources for developing financial wellness. Regardless of where you are at financially, you can take steps today to manage finances.

Hispanics and Financial Planning

For Hispanics, the disconnect with financial planning is largely rooted in lack of awareness and familiarity

Financial literacy is essential for all Americans, and yet for many Hispanics, the disconnect is often rooted in unfamiliarity. Prudential recently published a report designed to help improve financial wellness among this population. Some of the topics addressed include paying for college and elder care while saving for retirement, dealing with budgets and investments, setting up guaranteed income in retirement and working with a financial professional to achieve goals. Attitudes and beliefs surrounding finances can also hinder financial planning specifically around the topic of debt. Many Hispanics believe that “good debt” does not exist and would opt to delve into personal savings before going into debt. An understanding of how to build assets can help this population on the road to long-term financial wellness.

How to Manage Finances

Seek Financial Literacy: It is nearly impossible to manage finances without a proper understanding of how much money you are earning, spending, and saving. It is also advisable to acquire knowledge regarding investments and retirement.
Start Saving and Managing Your Finances Now: Latino millennials are saving but not investing. The reality is that the younger you are when you begin to save, the more likely it will be that you will achieve your financial retirement goals by the age of 65. A person in their twenties will only need to save 5 percent of their income to achieve their retirement goals while a person in their fifties will need to save nearly half of their income to catch up and still achieve their goals.
Keep Track of Your Financial History: In addition to monitoring your credit report and FICO score, it is important to monitor your insurance claim history (including homeowner and auto insurance claims), medical history, resident history and check-writing history. Lingering medical bills or late mortgage/rent payments can follow you when you go to purchase a home, take out a business loan, or make a major purchase.
Make a Budget and Stick to It: In order to create a budget, it is important to understand the amount of money coming in versus the amount of money being spent. Start by creating a list of monthly expenses including rent or mortgage, utilities, insurance, groceries and other essentials. Remember to include credit card bills, unexpected expenses such as vehicle maintenance, and special occasion expenses (i.e. birthday gifts and dining out).
Seek Guidance and Assistance from a Financial Professional: Prudential offers the tools and resources you need to manage finances. If you are struggling to understand or manage finances, speaking with a financial professional can assist with defining your financial goals, growing and protecting your wealth, helping to avoid common investment mistakes, and more.

When we talk about finances, it is important to plan and visualize a prosperous future.

Financial Planning Resources

Prudential offers a wealth of tools and resources to manage finances. Here is just a brief list of articles that may help you on your way to financial freedom.

For more information and tips to manage finances, visit Prudential.

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Caryn Bailey

Caryn is a NICU nurse by day, blogger by night and mom 24/7. She savors the warm Southern California sun and loves to travel, shopping, baking, reading and frequenting her local tea room. Caryn created the column Lavishly Green for Peekaboo Picks Magazine to share her best tips for going green in style, she is the Former editor for Family Review Network, former OC Family Magazine online contributor, former Orange County Moms Blog contributor, former Evenflo Savvy Parent contributor, former member of the Totsy Advisory Board and former freelance writer for CBS Los Angeles.