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Katy Song Financial Planning
FAQs
How do we pay for everyday living and save for the long-term?
Cash flow is king. You need to know what is coming in after taxes and going out the door. This is how you can figure out how much you can afford to save. Knowing your cash flow can be a big motivator in asking for a raise, looking for a better paying job and making changes to spending so that you can save more. Saving for the long-term also needs to be a specific goal. You need a target and to know your time horizon for that goal. By being specific, you are more likely to achieve your goal.
What kind of house can we really afford?
There tends to be a big difference between what a lender with lend you and how much house you can actual afford. By looking at your historic spending and projected spending, we can assess how much house you could afford based on your lifestyle. No one wants to feel house poor. Knowing your price range helps tremendously during the house hunt so that you do not fall in love with something you cannot afford or sacrifice a must have because you think you cannot afford it. Buying a house is likely your largest purchase in life. Knowing how much house you can afford will help you make the right financial decision for you and avoid FOMO.
What are the best ways to save for college?
The IRS created 529 plans to encourage savings for college by offering tax-free growth as long as the funds are used for qualified education expenses. These plans have also been expanded so that you can use some funds each year to pay for private primary and secondary school. Depending on your financial situation, you may want to consider other ways to save for education. For example, if you are behind on retirement savings, it is better to focus your savings on qualified retirement savings first. This money can also be used to pay for qualified college expenses without penalty.
How can we get out of debt?
Debt tends to result from living beyond your means. Getting out of debt requires both a plan for dealing with current money owed and improving cash flow.
More information can also be found on the FAQ page of our website.
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