Ways to Make Your Money Stretch

It’s tax filing season and many Detroiters have decisions to make on how they will spend their refund check. Amid inflation and some uncertainty in the economy, some people are trying to figure out the best ways to make their money stretch.

“The first thing one must do is adjust their thinking and then adjust their behavior,” said Lisa Howze, CPA, owner of The Lisa Howze Experience LLC, author and a professional strategist.

Howze says people must be mindful we’re in an inflationary period, a temporary one she reminds people, yet unfortunately a period that is hard to predict how long it will last. It’s a reality that affects a lot of people’s spending habits and a cautionary tale for many as government checks and other pandemic related benefits began to expire. As a result, the taxpayer may want to adjust their decisions accordingly.

“Not only should you save your money, but one should know where your money is going. People really have more money than they think they do,” Howze says. This is all about money management and she states people often know they have money coming in, yet their money is leaving back out faster than they can recoup.

“If you carry credit card debt and you’ve got outstanding balances with a high interest rate, you’re losing a lot of money due to the interest rate.”

Howze says in this area, there is money to be saved.

“If you would rather they take your payment over the phone, but it will cost a $10 transaction, that’s where people are losing money as opposed to connecting their checking account to come out automatically.”

And for people looking to get every coin they can squeeze out of their upcoming tax refund check and not leave any money on the table, Howze points to some tips one should consider.

“Depending on what one’s income level is, generally about $55,000 a year for individuals, they could be eligible for the Earned Income Tax Credit. These credits have actually increased over the past couple of years at the federal level and particularly at the state level.”

“For the person who has not lost

Warren C. Evans, former Wayne County Executive Robert Ficano, former Oakland County Executive L. Brooks Patterson, current Oakland County Executive Mark Hackel, and developer and Quicken Loans chairman Dan Gilbert.

Pancakes & Politics is the brainchild of Hiram E. Jackson, CEO of Real Times Media and Michigan Chronicle Publisher. Before creating the event, Jackson was disenchanted because he didn’t see a sizable Black presence or hear large numbers of Black voices at the table when regional stakeholders were making big public policy decisions on matters related to transportation, education, economic development, workforce development, and other issues directly impacting Detroiters and others in Southeast Michigan.

“I thought it would be interesting to establish a town hall meeting type forum with the leaders in the community, where there would be significant participation and feedback from Black people in the city and region,” Jackson explained. “And it was critical that the Michigan Chronicle hosted the forum, set the agenda, asked the tough questions, and attracted the panelists. And we wanted the forums to be held at the Detroit Athletic Club in downtown Detroit.”

In its quest to reach a broader audience, Pancakes & Politics 2023 will continue its virtual “Overdrive Series,” first unveiled in 2022 when the speakers’ forums were presented online because of the pandemic. Sponsored by Business Leaders for Michigan, the “Overdrive Series” will interview business leaders and newsmakers at the Michigan Chronicle’s Studio 1452 in downtown Detroit on an array of topics of interest to Metro Detroit residents and businesses.

“In the nine years that I’ve been with DTE, we have been involved in Pancakes & Politics, and it’s been a great partnership,” Frank D’Angelo, manager of events, DTE Energy/DTE Foundation their job, they should be preparing for the potential of a downfall such as a job loss, pay cut, layoff. The better you can prepare yourself for them, the better you can position yourself.”

She also advises people who may only have worked a portion of the year or only made a minimum amount to be aware of the opportunities to still file their taxes and apply for benefits, because there could still be “refundable money out there people -- money back in one’s pocketbook.”

Howze also says to look for ways to make additional money and strongly advises in taking part in an area of the tax code many people often don’t take advantage of – starting a business.

“If you have a skill -- maybe you can cook well, people love how you detail a car -- whatever you do that is honest, ethical and legal [use it] and develop that entrepreneurial spirit.”

“Take time to understand where there is a need in the market, and if you are able to fulfil that need by providing a solution whether it be a product or service then people would be willing to pay you.”

When it comes to people thinking about what they’ll do with that much anticipated tax refund check, how to stretch their money and what to spend it on, another expert advice is to use it to repair your credit.

“This is one of the most important times to be educated about credit so you’ll know how to wisely use it,” said Shemeka Bishop, owner of The Bishop of Credit, a credit repair and consulting business.

“I always suggest using your credit when paying for items. If you’re using your credit you’ll be able to maximize the dollars that you’re spending.”

Bishop says when you’re using credit to purchase groceries, you’re getting three times the benefit such as cashback, points and increasing one’s credit score as you pay it back over time and on time.

“Not only can you make $50 at the grocery store, for example, work for you once but work for you twice.” Bishop emphasizes credit cards aren’t made to completely live off of but in this economic climate, you might need it, and how to use and make it work for you could be financially helpful for many households.

(longtime Platinum Partners), said in an interview taped in 2022. “And I have not been to one Pancakes & Politics event that was a dud.” ers you’re interviewing how much you need to put down and if that number is adjustable. If coming up with a down payment is an obstacle, ask the lenders about down payment assistance programs. You’ll find that several loans programs require less than 20 percent of the home’s value for a down payment. Another way to tackle this question is to ask what money you’ll need for closing. This could answer some other questions as well. nesses, especially those in Detroit.

For more information about Pancakes & Politics, log on to www.michiganchronicle.com or call 313.963.8100.

What types of loans are available?

Speaking of loan options, it’s important to know what loans are available and which loan makes the most sense for you. Common loan types include fixed and adjustable - rate loans. However, you may qualify for a VA, or FHA mortgage, which would allow you to put a lower percentage down at closing. Is there a prepayment penalty? If so, what is the penalty?

This question allows you to determine whether paying off your mortgage early will result in additional fees. Some lenders charge a fee if you pay off your loan before it’s due. For example, this fee may be incurred if you refinance, sell, or pay a large sum of your mortgage down at once. These fees make it more appealing for borrowers to pay their loans back slowly, allowing the lender to gain more in interest. When possible, avoid these penalties.

Use the questions above to talk with mortgage brokers, lending institutions, banks, and discover your best loan option and lending partner.

“We understand the importance that Detroit plays psychologically in the nation’s view -- how they see Michigan,” Messer said. “You’re not going to be successful in Detroit without having a strong working relationship with the Detroit Economic Growth Corporation (DEGC).”

Despite the pandemic, looming economic uncertainties and staff shortages, local minority-owned businesses and others can reap the benefits of a stronger, more stable economy thanks to the DEGC’s intentional work.

Deanna Nealy, power broker, owner and CEO of Detroit Voltage LLC, a licensed and insured electrical contracting firm, told the Michigan Chronicle that buying Black to her is more than a notion but a lifestyle, both as a business owner and consumer.

“I would say that it’s important to spend money within the Black community as often as possible so that small business owners receive the money … [which] we’re also utilizing,” Nealy said. “So, for me, specifically, that I’m using Black contractors when I can and that I am making sure that I hire ... as many others … that I can.”

While varying statistics swirl about that a dollar circulates for a month in Asian communities, approximately 20 days in Jewish communities, 17 days in white communities, and six hours in African American communities, some truths reveal that when African American spending habits are compared to those of other ethnic groups, the dollar is leaving the neighborhood before many Black-owned businesses have a chance to touch or even see it.

“[Continuing] to make sure that those dollars are flowing in our community … is something that I do try my best to do,” Nealy said, adding that it is not always

“easy to do” because of not always finding services or clients she needs within arm’s reach.

Charles McKaye, a podcast host of the Detroit Metro Plug Podcast, is passionate about helping entrepreneurs and community leaders increase their reach on social media.

He told the Michigan Chronicle that on his platform he speaks to a lot of metro Detroiters, particularly people of color, who want to share a product or service they offer.

“Some people may not be aware of like businesses, services and things out there. And so, that’s my role to help to amplify what people are doing and get the word out about their business and connect the business owners to the audience that we’re trying to grow so that the Black dollar can circulate a lot better,” he said, adding that the biggest pain points for these businesses are customer retention and even building a customer base. “They are just trying to get out there.”

McKaye said that while he tries to make it a priority to buy Black he knows that it is not always possible and it’s not about excluding others but elevating inclusive buying, which can make the difference between success and failure for some Black-owned businesses.

“It’s not [that those who shop Black are] anti-other, we’re just really trying to create self-sustainability,” he said. “So, determination and empowerment of, you know, my folks who support themselves and have their own determination of what they want to do for their community and for their families.… I think that if we have strong economic growth and empowerment, we can improve our services, whether it’s donating to nonprofits or helping improve our neighborhoods or in real estate, you know, we can be self-sufficient and determine our own path. If we’re empowered.”

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