How to: Manage your finances

Rianka Dorsainvil ’09 entered Virginia Tech as a math major but soon realized she wanted to pursue a career with more interpersonal interaction. After taking a personal finance class, Dorsainvil was eager to share her new knowledge and ultimately found her professional calling in the field.

Today, Dorsainvil, who earned a degree in agricultural and applied economics, is a certified financial planner in Upper Marlboro, Maryland. Through her work, she recognized a need to equip a broader population with the same tools and knowledge given to wealthy clients.

In 2013, Dorsainvil debuted a blog to empower young professionals. Then, in 2015, she founded Your Greatest Contribution, a virtual firm offering financial advice via video conferencing. Following several strategic business transitions, Your Greatest Contribution was relaunched, existing as YGC Wealth today.

This fall, Dorsainvil, who has been part of the CNBC Advisory Council for eight years, was interviewed by Sharon Epperson, CNBC senior personal finance correspondent, about redefining retirement across the generations working today. Recently, she offered financial guidance tailored to Virginia Tech alumni at different life stages.

• Master cash flow management: Create a budget that balances tuition, living expenses, and some fun. Use apps such as YNAB or Monarch Money to track spending.
• Start building credit responsibly: Consider a student credit card but pay the balance in full each month.

• Take advantage of campus resources: Attend financial literacy workshops and seek guidance from the financial aid office.
• Begin investing small amounts: Even $20 a month in a low-cost index fund through apps such as Acorns can teach valuable lessons about the market.
• Tackle student loans strategically: Understand your repayment options and consider refinancing if it makes sense for your situation.
• Maximize employer benefits: Contribute enough to your 401(k) to get the full company match. It’s free money!
• Build an emergency fund: Aim for three to six months of expenses in a high-yield savings account.
• Consider term life insurance: If you have dependents or financial responsibilities for others, a basic term policy can offer valuable peace of mind.
• Start thinking about your legacy: Create a will and designate beneficiaries on your retirement accounts.

• Reassess your career and earnings potential: Consider upskilling or pivoting to increase your income.
• Diversify your investments: Look beyond your 401(k) and Roth IRAs to HSAs and taxable brokerage accounts.
• Review your insurance needs: As your assets and responsibilities grow, ensure you’re adequately protected.
• Start estate planning: Create or update your will, consider establishing a trust, and draft advance health care directives.
• Balance paying off your mortgage with investing: Don’t neglect retirement savings in favor of becoming mortgage debt-free too quickly.

• Catch up on retirement savings: Take advantage of catch-up contributions in your 401(k) and IRA after age 50.
• Consider long-term care insurance: Protect your assets and independence as you age.
• Create a retirement income strategy: Determine how you’ll draw down your various accounts in a tax-efficient manner.
• Review your estate plan: Ensure your wishes are clearly documented and consider discussing your plans with family members.
• Plan for health care costs: Understand Medicare options and consider a supplemental policy. 
• Remember, financial planning is not one-size-fits-all. Your individual circumstances, goals, and risk tolerancE should guide your decisions. Don’t hesitate to seek professional advice, especially as your financial situation becomes more complex.