How to Navigate Finances in High Price-Inflation Waters

I was recently invited to participate in a panel titled, “How to navigate finances in 2025”. Given the change in the U.S. administration, global wars, and financial instability, this was the right call for Florida State University’s Black Alumni Association.

By the time the bat signal went up, America dove $600 trillion into the muck of tariffs and supposed liberations. When the panel came around, we’ve all but rebounded. It’s pretty much pandemonium. JPMorgan said we are headed into a recession one day, and the next month stated that we will be in a +8% performance year. The financial experts don’t know what will happen at any given turn. Deuces are indeed wild.

However, the rules of building your financial foundation are still the exact same. Most Americans don’t budget and then wonder why they don’t have any money. I don’t want that for you. It’s better to take your finances seriously on the front end versus worrying yourself into debt on the back end. Here are my answers to the key questions that we discussed.

Table of Contents

What are some of the best budgeting tools or software that you’ve used?

Since I’m an advocate for free tools, the first one that comes to mind is Intuit’s Mint.com however, that product has been folded into Credit Karma.

My absolute favorite is Empower (formerly known as Personal Capital). It’s F.R.E.E. and extremely powerful. While not as user-friendly as baseline (non-free) budgeting tools such as Y.N.A.B. or Monarch, Empower covers the full range of wealth building. It has budgeting, cash flow, investment performance, investment strategy adjustments, and even a Monte Carlo simulator that a lot of financial advisors use to estimate the sequence of return risk and the probability of failure.

Either way, feel free to check out Nerdwallet’s The Best Budget Apps for 2025.

What do you think is a fair estimate of the cost of “getting your affairs in order”? That includes lawyers, trustees, establishing a trust for kids, etc.

The fair estimate for me is generally FREE.

If your net worth (assets minus liabilities) is sub $250,000, there is likely no need to reach out to a professional just yet. For those who are further along (i.e., 30+ with kids +/- assets), it’s fair to pay for Will and even a term L.I.F.E. insurance plan.

I would keep the cost minimal since a lot of families don’t have any savings, investments, or even a positive cash flow. If you have too much month vs money, it’s likely better to start with a piece of paper and a simple financial plan. If you have consumer debt hitting you with over $100 per month in interest fees, you would be better off paying your bills than paying someone else to help you pay your bills.

It’s simpler to skip the middleman and do the necessary self-work. Here’s some insight – Getting Your Affairs in Order: A Step-by-Step Financial Checklist.

What are the top 5 most important items to consider in long-term budgeting?

I tackled this in two parts. While I can go into the details, I drafted my notes as if I only had 1-2 minutes to share. The top financial tips include doing:

Write your 5-10-20 year plan,
Cash flow management review (income minus expenses),
Wealth-building plan (i.e., matching contribution, debts, and maxing out),
- Check out the Netmax financial plan. They are free to have and download.
Debt management plan (Avalanche is better than Snowball),
Investing based on time horizon and long-term purpose,
Homeownership sub 25% of after-tax pay, and
An exit strategy.

My Top budgeting tips include, but are not limited to:

Avoid lifestyle creep (burying yourself and complaining doesn’t help),
Keep consumer debt less than 3% (no more than 10%),
Total housing costs should be no more than 25%,
Avoid picking up debt that creates monthly liabilities, and
Relearn to have fun without funds.

You can also check out “How to Work Smarter with a Financial Independence Plan.”

As an advisor, given the current popularity of app-based betting (i.e., Hard Rock Bet), what tips or advice do you have for those who participate?

The house always wins.

Avoid at all costs. Gambling is still gambling, even if it looks sexy through commercials. Most gamblers can experience a high point, however, it is flanked by a reversion to the mean. Going so fast that you crash out.

Companies create products to sell, not to enrich you. You would be better off investing in those companies instead.

Many businesses are now dealing with the impacts of tariffs on goods and services. What potential short-term or long-term effects do you see?

Short and long term, if you aren’t financially stable, you will also be a victim of circumstances. Tariff is not a new term. We’ve always had tariffs in effect. Countries also had tariffs against us. Over the last 70 years, American households and lifestyles have been subsidized by cheap goods. No matter how this plays out, the future is expensive.

This is known as the Global reversion to the mean. COVID disrupted global supply chains, which ushered in a new era in geopolitics and renegotiations. In the end, all products will be more expensive. Millennial lifestyles currently cost $80,000 per year. By 2040, the cost will increase to $120,000 at a minimum.

The future is not cheaper than advertised.

Any final advice or suggestions for consumers, business owners, or purchasers?

For all consumers, go leaner.

The same rules from April 2020 apply (when household savings spiked to 33%). Learn to cut out expenses that add no true value to your life. Stop self-medicating through spending and luxury items. Spend when needed, but never neglect investing. The future will not be kind to those who ignore this advice.

There is a sharp line in the sand regarding wealth. The next generation will exist in a pure system of class dispersion. Those who have will keep. Those who don’t will spend. Those who can’t spend will be indebted for the rest of their lives.