>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NJCU SCHOOL OF BUSINESS, A GAME-CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, OR BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY, AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU/GAMECHANGER.

>>> THIS WEEK ON "NJ BUSINESS BEAT."

>> THE STATE OF OUR STATE IS RESILIENT AND READY TO KEEP MOVING FORWARD.

>> GOVERNOR MURPHY'S MESSAGE TO THE BUSINESS COMMUNITY IN HIS STATE OF THE STATE ADDRESS.

PLUS, NEW JERSEY'S LARGEST CITY ENFORCES NEW TOUGH COVID RESTRICTIONS TO KEEP THE SPREAD AT BAY.

AND WE PUT YOUR PERSONAL FINANCES IN FOCUS FROM BUILDING YOUR SAVINGS TO TACKLING DEBT AND PREPARING FOR YOUR RETIREMENT.

THAT'S STRAIGHT AHEAD ON "NJ BUSINESS BEAT."

♪ >> THIS IS "NJ BUSINESS BEAT" WITH RHONDA SCHAFFLER.

>> HELLO I'M RHONDA SCHAFFLER.

THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU ARE WATCHING ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

>>> GOVERNOR MURPHY THIS WEEK DELIVERING HIS ANNUAL REPORT CARD ON NEW JERSEY.

DURING HIS STATE OF THE STATE ADDRESS, THE GOVERNOR SAID NEW JERSEY'S ECONOMY IS GROWING FASTER THAN OTHER STATES.

AND HE TOUTED HIS RECORD OF CUTTING TAXES.

HE DIDN'T DWELL ON THE LESS ROSY FACTS ABOUT NEW JERSEY'S ECONOMY SUCH AS THE STATE'S HIGH UNEMPLOYMENT RATE.

INSTEAD THE GOVERNOR SAID BUSINESSES WANT TO BE HERE.

AND THAT EXPANDING INDUSTRIES LIKE FIN TECH, CLEAN ENERGY, BILL PRODUCTION AND EVENTUALLY RECREATIONAL CANNABIS ARE CREATING THOUSANDS OF JOBS FOR RESIDENTS.

>> WE HAVE GREATER TAX FAIRNESS.

WE'VE CUT TAXES FOR OUR MIDDLE CLASS OF WORKING FAMILIES AND OUR SENIORS 14 TIMES.

AND I COMMIT TO YOU NOW THAT THE STATE BUDGET I PROPOSE IN A FEW WEEKS WILL NOT RAISE TAXES.

THE REALITY IS THIS, WE'RE MAKING NEW JERSEY THE PLACE WHERE BUSINESSES WANT TO LOCATE AND FAMILIES WANT TO LIVE.

THE CENSUS COUNTS IT IN BLACK AND WHITE.

WHILE SOME STATES IN OUR REGION LOST POPULATION, NEW JERSEY GREW.

TURNS OUT THE MOVING VANS ARE DRIVING INTO NEW JERSEY.

>> TO GET A DEEPER PERSPECTIVE ON THE ECONOMIC FACTS AND FIGURES IN THAT SPEECH, WE CHECKED IN WITH OUR BUDGET AND FINANCE WRITER, JOHN WRIGHT MIRE.

>> BEFORE DELVING INTO THE SPECIFICS WHAT WE HEARD FROM GOVERNOR MURPHY ON THE STATE OF THE STATE.

WAS IT DO YOU THINK STRIKING THE RIGHT TONE ABOUT WHERE WE ARE RIGHT NOW ABOUT WHERE WE ARE WITH NEW JERSEY'S ECONOMIC RECOVERY.

>> IT IS HARD FOR HIM TO SUGGEST THINGS ARE GOING WELL ENTIRELY.

AND ALSO NEW JERSEY RANKS AMONG THE STATES WITH THE HIGHEST UNEMPLOYMENT RATES.

SO THAT IS A TOUGH DATA POINT FOR HIM RIGHT I THINK IN THE STATE OF THE STATE ADDRESS HE CHOSE TO FOLCU ON OTHER DATA POINT, NAMELY THE MOST RECENT QUARTER OVER QUARTER GROWTH ESTIMATES FOR THE STATE'S GDP, WHICH IS NOTE WORTHY THAT NEW JERSEY IN THAT CASE IS AMONG THE STATES THAT'S GROWING AT A FASTER CLIP, AT LEAST IN THAT QUARTER THAN A LOT OF OTHER STATES.

>> THE GOVERNOR TALKED ABOUT TAX CUTS THAT HE'S MADE SINCE TAKING OFFICE.

HE ALSO TALKED ABOUT PROPERTY TAX INCREASES GOING AT A SMALLER SCALE THAN WHAT WE SAW IN THE PAST.

IN TERMS OF THE TAX RECORD, DID IT ALL ADD UP?

WELL, YOU KNOW, CLEARLY THE GOVERNOR HAS ENACTED TAX CUTS INCLUDING DURING HIS FIRST FOUR YEARS.

AND SOME OF THOSE HAVE HELPED SENIORS, DISABLED HOMEOWNERS, LOW AND MODERATE INCOME HOMEOWNERS.

THERE WAS ALSO AN INCOME TAX REBATE THAT BENT OUT LAST YEAR TO THOUSANDS OF FAMILIES ACROSS NEW JERSEY.

SO TO BE SURE THERE HAVE DEFINITELY BEEN TAX CUTS DURING MURPHY'S TENURE.

AND HE DOESN'T ALWAYS GET CREDIT FOR DOING THINGS LIKE THAT.

HOWEVER THERE WERE ALSO TAX INCREASES.

SO IF YOU ARE IN ONE OF THE GROUPS, NAMELY MILLIONAIRES, THAT HAVE HAD TO PAY HIGHER TAXES AS A RESULT OF POLICIES ENACTED BY MURPHY, YOU KNOW, THEN YOU MIGHT SEE THINGS A LITTLE DIFFERENTLY.

MURPHY'S TAKEN GREAT PAINS TO INCREASE FUNDING FOR LOCAL SCHOOL DISTRICTS.

LOCAL SCHOOL DISTRICTS SPEND A BIG PORTION OF WHAT THE AVERAGE NEW JERSEY HOMEOWNERS PROPERTY TAX BILL IS COMPRISED OF.

SO THERE IS A LITTLE BIT OF A CONNECTION THERE.

HOW DIRECT I THINK MURPHY WANTS TO MAKE IT SEEM LIKE THE AS VERY DIRECT LINK.

I THINK THERE HAVE BEEN STUDIES THAT SUGGEST, YOU KNOW, ANY TIME STATE AID INCREASES, IT DOES SORT OF MAKE ITS WAY DOWN TO THE LOCAL PROPERTY TAXPAYER IN SOME INDIRECT WAY.

AND AT THE SAME TIME THAT INCREASES HAVE BEEN APPROVED FOR PROGRAMS LIKE THE HOMESTEAD REBATE, WE HAVE TO REMEMBER THAT FOR MANY YEARS, INCLUDING DURING MURPHY'S TENURE, THE HOMESTEAD REBATE WAS HELD FLAT EVEN AS PROPERTY TAXES ROSE, ALBEIT AT A SLOWER CLIP WHICH IS WHAT MURPHY HIGHLIGHTED IN THE STATE OF THE STATE SPEECH.

YOU ARE A HOMEOWNERS RELYING ON HOMESTEAD TO KEEP PACE WITH RISING PROPERTY TAX BILLS.

EVEN IF THE RATE OF GROWTH SLOWED, THE HOMESTEAD CREDIT WAS HELD FLAT, SO IT DID NOT KEEP PACE.

>> DURING HIS STATE OF THE STATE ADDRESS GOVERNOR MURPHY TALKED ABOUT THE HUNDREDS OF MILLIONS OF DOLLARS IN FINANCIAL SUPPORT GIVEN TO BUSINESSES THROUGHOUT THE PANDEMIC.

BUT BUSINESS LEADERS WERE DISAPPOINTED.

THEY SAY SMALL BUSINESSES ARE STILL STRUGGLING.

AND THEY WERE HOPING THE GOVERNOR WOULD ANNOUNCE MORE FINANCIAL SUPPORT IS COMING.

WE SPOKE WITH THE HEAD OF THE NEW JERSEY CHAMBER OF COMMERCE, TOM BRACKEN, WHOSE ALSO A MEMBER OF THE NJPBS TRUSTEES.

>> NEED MORE HELP AND THERE WAS NO REFERENCE THAT GAVE ANY INDICATION MORE HELP WAS ON THE WAY AND THAT SECTOR OF OUR ECONOMY NEEDS TO BE STRONG.

IF ALL THE PROGRAMS THE GOVERNOR HAS PROPOSED FOR IMPROVING OUR ECONOMY, WHICH ARE GREAT PROGRAMS, THE INNOVATION EVERGREEN FUND AND TAX INCENTIVE PROGRAMS, SO FORTH, IF THEY ARE GOING ACHIEVE THEIR POTENTIAL, OUR OVERALL ECONOMY HAS TO BE STRONG, WHICH MEANS OUR SMALL BUSINESS SECTOR HAS TO BE STRONGER THAN IT IS.

AND IT NEEDS MORE HELP.

>> GOVERNOR MURPHY THIS WEEK SIGNED LEGISLATION TO EXPAND NEW JERSEY'S TAX CREDIT PROGRAM FOR FILM AND MEDIA PRODUCTIONS.

THE BILL PROVIDES FOR LARGER TAX CREDITS WHICH SUPPORTERS BELIEVE WILL ATTRACT MORE PRODUCERS TO THE GARDEN STATE AND IN TURN JUICE UP THE LOCAL ECONOMY.

YOU WILL SEE NEW JERSEY ON THE BIG SCREEN IN THE FILM "WEST SIDE STORY" AND QUITE A FEW NETFLIX PRODUCTIONS WERE SHOT IN THE STATE OVER THE 35ST YEAR.

MEANWHILE THE LEGISLATURE ADVANCED SEVERAL BILLS THIS PAST WEEK TO HELP BUSINESSES, INCLUDING ONE FROM SENATOR MICHAEL TESAT THAT WOULD PROVIDE A TAX BREAK TO SMALL BUSINESSES HELP COMPLYING WITH COVID-19 MANDATES IMPOSED BY STATE.

ANOTHER BILL SPONSORED BY OUTGOING SENATE PRESIDENT STEVE SBOOEN WOULD PROVIDE BUSINESSES FOR TAX CREDITS FOR HIRING WORKERS WITH DEVELOPMENTAL DISABILITIES.

>>> THE U.S. SUPREME COURT DEALT A MAJOR BLOW TO PRESIDENT BIDEN'S ADMINISTRATION BLOCKING HIS VACCINE OR TEST MANDATE FOR SOME PRIVATE BUSINESSES.

IN NEWARK A VACCINE MANDATE WENT INTO EFFECT THIS WEEK REQUIRING THAT PROOF OF AT LEAST ONE VACCINE DOSE BE SHOWN AT A NUMBER OF PUBLIC VENUES, INCLUDING OFFICES, RESTAURANTS, STORES, SPORTING VENUES AND OTHER SMALL BUSINESSES.

AND BY THE END OF THE MONTH, THE LAW REQUIRES PROOF OF WHOLE VACCINATION.

ACKNOWLEDGED THE BURDEN PLACED ON BUSINESSES BUT ONE LOCAL COFFEE SHOP OWNER IS SUPPORTIVE OF THE MANDATE, POINTING OUT THAT PATRONS ADAPTED TO NEW RULES BEFORE AND WILL AGAIN.

>> JUST LIKE WHEN THEY FIRST STARTED THE MASK MANDATES, I THINK A LOT OF PEOPLE THOUGHT THERE WAS GOING TO BE ISSUES WITH THAT.

BUT DIDN'T SEEM ANYONE HAD A PROBLEM KEEPING THEIR MASK ON WHEN COMING INTO THE ESTABLISHMENT.

SAME WITH DINING IN AND SITTING IN AND TRYING TO COME TO THE COFFEE SHOP.

>> I THINK, YOU KNOW, WHILE IT IS NOT AN IDEAL SITUATION FOR BUSINESSES AT ALL.

I THINK IT IS DIFFICULT FOR THEM.

I THINK IT IS BETTER THAN US SHUTTING IT DOWN, YOU KNOW.

THEY EXPERIENCED BEING SHUT DOWN.

THEY KNOW HOW IT FEELS.

WHAT IT MEANS.

I THINK THAT THIS GIVES THEM A OPPORTUNITY TO AT LEAST STAY OPEN.

>> A NEW JERSEY UNIVERSITY IS HELPING TO PROMOTE INNOVATION IN OUR STATE.

KAEN UNIVERSITY RECENTLY LAUNCHED A NEW CENTER OF WORKFORCE DEVELOPMENT, INNOVATION AND SOCIAL ENTREPRENEURSHIP.

ONE OF JUST 25 COLLEGES AND UNIVERSITIES NATIONWIDE SELECTED FOR A MORE THAN ONE MILLION DOLLAR FIVE-YEAR COMPETITIVE GRANT TO CREATE THE CENTER.

TO FIND OUT MORE I SPOKE WITH THE UNIVERSITY'S BARBARA GEORGE JOHNSON WITH THE WATSON INSTITUTE FOR URBAN POLICY AND RESEARCH.

>> I KNOW THERE IS GOING TO BE A FOCUS ON SMALL BUSINESS.

YOU ARE ALSO GOING TO USE DATA AND ANALYTICS.

KIND OF WALK ME THROUGH THE WORK OF THE CENTER.

>> SO THE CENTER IS MEANT TO BE COMPREHENSIVE.

AND IT IS ALSO MEANT TO RESPOND TO THE DIVERSITY OF THE STATE OF NEW JERSEY.

YOU KNOW, WE'RE A SMALL STATE.

DENSELY POPULATED BUT DIVERSE IN TERMS OF TOPOGRAPHY, GEOGRAPHY, TYPES OF BUSINESSES AND INDIVIDUALS WHO LIVE AND WORK HERE, AND AS WELL AS LOOKING AT HOW WE STRIVE TO BECOME THE INNOVATORS RIGHT ACROSS THE STATE AND ACROSS THE NATION.

WE WERE ONCE THE MEDICINE CHEST OF THE WORLD AND WE'D LIKE TO SEE THE IS STATE BE THE BUSINESS INNOVATION CENTER OF THIS COUNTRY AND THE WORLD AS WELL.

SO THE UNIVERSITY CENTER WILL FOCUS ON REGIONAL DEVELOPMENT.

WE'RE LOOKING AT THE RESILIENCY OF SMALL BUSINESSES AS THEY RESPOND TO NATURAL AND BIOLOGICAL OR PANDEMIC DISASTERS AS WE'RE SEEING CURRENTLY.

WE ARE LOOKING TO CREATE THROUGH ANALYTICS AND DATA ASSESSMENT AND ANALYSIS THE TYPE OF SUPPORT THAT BUSINESSES NEED.

HOPING TO WORK WITH A COHORT OF BUSINESSES NORTH CENTRAL TO SOUTH THROUGHOUT THE STATE TO IDENTIFY THE VARIOUS NEEDS AND DIVERSITY OF THE NEEDS AND TO BE ABLE TO ADDRESS THAT IN REAL TIME.

THE OTHER COMPONENT OF THIS IS WORKFORCE DEVELOPMENT.

WE'RE LOOKING AT, FOR INSTANCE, BIO MANUFACTURING.

HOW DO WE ENSURE APPRENTICESHIP PROGRAMS THAT SUPPORT NEEDS OF INDUSTRY BY WORKING WITH INDUSTRY PARTNERS AND THEN CREATING CREDENTIALING AND PIPELINE OPPORTUNITIES THROUGH HIGHER EDUCATION TO PROVIDE THE RIGHT TRAINING FOR THE WORKFORCE OF THE FUTURE.

AND APPRENTICESHIPS AND HIGHER EDUCATION COLLABORATING AND WORKING TOGETHER ENABLES THAT TO HAPPEN.

>> I JUST WANT TO ASK YOU ONE PARTICULAR THICK ABOUT THE WORKFORCE TRAINING.

WHEN IS THAT GOING TO KICK INTO HIGH GEAR?

BECAUSE THAT IS SOMETHING OF KEEN INTEREST RIGHT NOW IN THIS STATE.

>> THE APPRENTICESHIP PROGRAM IN PARTICULAR IS ONE THAT THE STATE HAS BEEN DHMPING FOR SOME TIME NOW.

AND SO WE ARE ALREADY WORKING WITH PARTNERS LIKE NEW JERSEY MANUFACTURING EXTENSION PROGRAM TO CREATE A BIO MANUFACTURING APPRENTICESHIP THAT WILL THEN TURN INTO TRAINING IN THAT SPACE FOR INDIVIDUALS WHO ARE WORKING IN INDUSTRY ALREADY.

AND THAT IS ALREADY IN THE PROCESS.

WE ARE CREATING CREDENTIALING AND THE ACADEMIC COMPONENT OF THE TRAINING AND WORKING WITH NJMUP TO IDENTIFY INDUSTRY PARTERS?

>> LET ME ASK YOU AS WELL TO GO INTO SOME DETAIL ABOUT WORKING WITH BUSINESSES THROUGHOUT THE STATE.

HOW IS THAT ACTUALLY HAPPENING?

WHAT ARE YOU DOING?

ARE YOU MEETING WITH BUSINESS LEADEREDS?

EXPLAIN.

>> WE HAVE A NUMBER OF PARTNERS PART OF THE APPLICATION WHEN WE CONCEPTUALIZED THE WORK OF THE UNIVERSITY CENTER.

PARTNERING WITH THE AFRICAN AMERICAN CHAMBER OF COMMERCE.

HISPANIC CHAMBER.

WE HAVE THE SMALL BUSINESS DEVELOPMENT CENTER WHICH IS LOCATED IN KANE UNIVERSITY NEGOTIATES WITH BUSINESSES IN THE UNION COUNTY AND NORTHERN PART OF THE SPATE AND EXPANDING THAT TO OTHER PARTS OF THE STATE.

>> ARE UNIVERSITY STUDENTS INVOLVED AT ALL IN THE CENTER?

>> WE ARE WORKING WITH THE BUSINESS SCHOOL AND LIFE SCIENCE PROGRAM TO ENSURE THAT STUDENTS AT THE UNIVERSITY HAVE ACCESS TO LEARNING ABOUT THE BUSINESS MODELS, CREATING BUSINESS PLANS, LOOKING AT ENTREPRENEURSHIP IN WAYS THAT THEY CAN GET INTO ENTREPRENEURSHIP.

WE'RE ALSO EXTENDING THAT OPPORTUNITY TO THE SURROUNDING COMMUNITY.

AND WE SEE KANE AS AN ANCHORING INSTITUTION FOR THOSE COMMUNITIES.

>> SO MUCH GOING ON.

BARBARA.

THANK YOU FOR SITTING DOWN WITH US AND EXPLAINING WHAT'S AHEAD THERE.

APPRECIATE IT.

>> THANK YOU FOR HAVING ME.

>> THE NEW YEAR IS THE TIME WHEN MANY OF US TAKE STOCK OF OUR PERSONAL FINANCES AND SET NEW FINANCIAL GOALS WHETHER IT IS SAVING MORE, SPENDING LESS OR PAYING OFF DEBT.

THIS WEEK WE'RE PUTTING PERSONAL FINANCE IN FOCUS, OFFERING YOU A ROAD MAP TO BETTER FINANCIAL HEALTH.

A RECENT SURVEY FINDS COVID-19 IS STILL SEEN AS A FINANCIAL OBSTACLE IN 2022.

THE SURVEY BY BANK RATE FINDS 2/3 OF THE THOSE POLLED DO NOT EXPECT THEIR PERSONAL FINANCES TO IMPROVE THIS YEAR.

BEYOND THE PANDEMIC, SOARING INFLATION, STAGNANT WAGES AND PERSONAL DEBT ARE CITED.

A LOOK AT HOW MUCH AMERICA IS SAVING.

THE AVERAGE PERSON HAS NEARLY 42,000 SAVED IN TRANSACTION BANK ACCOUNTS BEFORE THE PANDEMIC.

THAT'S MONEY IN SAVINGS, CHECKING ACCOUNTS AND MONEY MARKET FUNDS.

NOW, IF THAT SOUNDS LIKE A LOT IT IS BECAUSE THE NUMBER DOES INCLUDE HIGH INCOME RESIDENTS.

SO THE GOVERNMENT ALSO LOOKS AT THE MEDIAN BALANCE, AND THAT TELLS A MUCH DIFFERENT STORY WITH ONLY $5,300 SAVED.

THE PERSONAL SAVINGS RATE IS 6.9%.

IT IS HARD TO SAVE MONEY WHEN YOU ARE SWIMMING IN CREDIT CARD DEBT.

AND UNFORTUNATELY THAT IS THE CASE FOR MANY IN NEW JERSEY.

THE AVERAGE CREDIT CARD DEBT FOR RESIDENTS IN THE STATE JUST UNDER $6,000 WHICH IS SEVERAL HUNDRED A ABOVE THE NATIONAL AVERAGE.

DESPITE THAT, NEW JERSEYANS ARE DOING WELL WHEN IT COMES TO SAVING FOR RETIREMENT.

ACCORDING TO THE DIGITAL WEALTH MANAGEMENT COMPANY PERSONAL CAPITAL, THE AVERAGE RETIREMENT SAVINGS IN NEW JERSEY IS OVER $514,000.

AGAIN WHEN WE LOOK AT AVERAGE NUMBER, THAT WOULD INCLUDE THE WELL TO DO.

NEW JERSEY RANKS SECOND BEHIND ONLY CONNECTICUT FOR THE AMOUNT SAVED FOR RETIREMENT.

GETTING YOUR PERSONAL FINANCES IN ORDER STARTS WITH A FIRST STEP.

AND THAT'S COMING UP WITH A PLAN.

ONCE YOU DO THAT, YOU CAN SET SOME GOALS THAT ARE IMPORTANT TO YOU.

FOR SOME TIPS NOW ON HOW TO PAYOFF DEBT AND GROW SAVINGS WE TURNED TO AURORA WHO'S A PARTNER AT THE NORTH NERZ FIRM SOBOBOC.

A LOT OF TIMES WHEN THE NEW YEAR STARTS PEOPLE DECIDE HEY THIS IS THE YEAR I'M GOING TO GET A HANDLE ON MY FINANCES.

LET'S STARLET THERE.

SAY YOU HEAD INTO THIS NEW YEAR A LOT OF DEBT FROM THE HOLIDAYS.

HOW DO YOU BEGIN TO PAY THAT OUCH?

>> FIRST I WOULD SAY HAVE A PLAN.

AND YOU DON'T NEED TO BE AN EXPERT TO HAVE A PLAN.

THERE ARE SO MANY APPS OUT THERE THAT HELP YOU DEVISE A PLAN.

AND HELP YOU FIT IT INTO A TIME LINE THAT WORKS FOR YOU.

IN ACCORDANCE WITH YOUR MONTHLY RECURRING EXPENSES.

IN ADDITION TO THAT, I WOULD SAY THAT HAVE THE ABILITY TO, YOU KNOW, MAKE SURE YOU DON'T DO IT AGAIN TO YOURSELVES EVERY SINGLE YEAR.

>> SHOULD YOU EVEN BEGIN TO START SAVING FOR EMERGENCIES WHILE YOU STILL HAVE DEBT?

OR IS IT HELPFUL TO PAY OFF YOUR DEBT FIRST BEFORE YOU GET SERIOUS ABOUT SAVING?

>> I THINK YOU SHOULD ALWAYS BE SAVING.

SO EVEN IF YOU ARE ON A PLAN TO PAY DOWN DEBT, I THINK PART OF THAT PLAN SHOULD ALSO BE TO SAVE AT THE SAME TIME.

BECAUSE YOU NEED TO MAKE SURE IF SOMETHING HAPPENS YOU HAVE EMERGENCY FUNDS AVAILABLE AND THAT YOU ARE NOT GOING TO BE SO STRAPPED.

YOU DON'T WANT TO PUT YOURSELF IN A POSITION WHERE YOU ARE PAYING DOWN ALL YOUR DEBT BUT YOU HAVEN'T SAVED EVERYTHING.

AND WITH THAT BEING SAID I WANT TO MAKE SURE THAT YOU DON'T JUST PAY THE MINIMUMS ON YOUR DEBT.

THAT IS WHY IT IS IMPORTANT TO PUT A PLAN INTO PLACE.

>> SO IN TERMS OF STARTING TO SAVE, 3-6 MONTHS I'VE HEARD SAVING THAT UP FOR EMERGENCIES.

SO 3-6 MONTHS OF YOUR SALARY.

IT JUST SOUNDS SO HARD FOR PEOPLE.

HOW DO YOU EVEN GET STARTED WHEN YOU HAVE TROUBLE MAKING YOUR REGULAR MONTHLY BILL PAYMENTS EVERY MONTH?

>> I THINK THAT SETTING THE GOAL TO START WITH, AT LEAST HAVING THREE MONTHS OF RECURRING EXPENSES AVAILABLE IN CASE OF AN EMERGENCY WOULD BE A REALLY GOOD GOAL.

I THINK THAT DOING THINGS IN SMALLER INCREMENTS AND ACHIEVING GOALS A LITTLE BIT AT A TIME HELPS SET A PRECEDENT FOR WHAT YOU CAN DO GOING FORWARD.

>> AND YOU MENTIONED A FEW TIMES STARTING A PLAN, THAT THERE ARE APPS TO HELP YOU.

ARE THERE ANY APPS IN PARTICULAR THAT YOU LIKE TO USE TO DO THIS?

>> I WOULD SAY MINT IS A PRETTY GOOD APP.

YOU CAN ALSO WORK IT WITH IT TO CREATE A BUDGET.

YOU CAN HAVE A BUDGET FOR THE YEAR ALONG WITH PAYING DOWN YOUR DEBT AND YOU CAN TRACK EVERYTHING.

>> WHAT ABOUT THE BIG IS STUFF?

SAVING TO BUY A HOME?

IF YOU HAVE CHILDREN, SAVING FOR COLLEGE.

HOW DO YOU REALLY MAKE HEAD WAY ON THOSE TOUGHER AND MORE EXPENSIVE GOALS.

>> IN NEW JERSEY THERE IS SOMETHING CALLED NEW JERSEY BEST.

AND IT IS ACTUALLY YOU CAN START SMALL.

ANYONE CAN FUND IT.

AND YOU CAN ACTUALLY CREATE A LINK TO SHARE WITH YOUR FAMILY AND FRIENDS.

SO WHEN IT COMES TIME FOR BIRTHDAYS OR CHRISTMAS, IF YOU WANT TO ASK PEOPLE TO GIVE TO A CHILD'S 529 INSTEAD OF GIVING THEM MAYBE ANOTHER TOY THEY MIGHT USE OR NOT USE FOR SIX MONTHS, I THINK THAT IS A GOOD OPTION.

WHEN IT COMES TO SAVING FOR A HOME, THE TRADITIONALLY YOU WANT TO DO 20% OF A DOWN PAYMENT.

AND THAT IS BECAUSE OF HOW IT COULD IMPACT YOUR MONTHLY PAYMENTS AND HAVING TO PAY MORTGAGE INSURANCE.

BUT I WOULD SAY AGAIN IT GOES BACK TO SITTING DOWN WITH YOUR ACCOUNTANT, FINANCIAL ADVISOR AND TELLING THEM YOUR BUDGET, WHAT YOU WANT TO BUY AND WORKING OUT WHAT KIND OF MONTHLY PAYMENT ACTUALLY WORKS FOR YOUR FINANCIAL SITUATION.

>> SO JUST AS A RULE OF THUMB FOR PEOPLE GETTING STARTED, WOULD YOU RECOMMEND, LES SAY FROM YOUR WEEKLY PAYCHECK YOU SAVE 1%, 5%, 10% T MOST YOU CAN?

ANY WORDS OF WISDOM ON THAT.

>> I THINK YOU NEED TO CALCULATE WHAT YOU ARE YOUR MONTHLY RECURRING EXPENSES.

AND MULTIPLY THAT BY THREE.

GET THREE MONTHS WORTH OF THAT AND THEN BREAK THAT DOWN INTO A PERCENTAGE FOR EACH MONTH TO ACHIEVE THAT GOAL.

SO YOU WANT TO ACHIEVE IT WITHIN 12 MONTHS.

I WOULD SAY THAT'S KIND OF HOW I WOULD WORK IT.

>> GREAT, THANKS FOR ALL THE ADVICE, AURORA.

GOOD TO SEE YOU AGAIN ON "NJ BUSINESS BEAT."

>> THANK YOU SO MUCH.

>>> ONE IMMEDIATE GOAL FOR ALL OF US IS GETTING THROUGH TAX SEASON WITH HOPEFULLY A NICE REFUND FROM THE IRS.

BUT THE TAX AGENCY IS HAVING SOME ISSUES THAT COULD DELAY YOUR REFUND THIS YEAR.

TO LEARN MORE ABOUT THIS YEAR'S TAX FILING SEASON, INCLUDING SOME IMPORTANT CHANGES TO KNOW ABOUT BEFORE YOU FILE, I SAT DOWN WITH ANDREA DIAZ, A PARTNER AT SKC AND CO CPAs.

>> GREAT TO SEE YOU AND TALK TAXES ONCE AGAIN.

TAX SEASON ABOUT TO GET UNDER WAY.

THE IRS ALREADY ISSUED A WARNING THEY ARE GETTING OFF TO A SLOW START.

WHAT DOES THAT MEAN EXACTLY?

WHAT SHOULD WE TAXPAYERS BE PREPARED FOR?

>> SO THE IRS HAS OPENED E FILING AS OF JANUARY 24th.

OR WILL OPEN AS OF JANUARY 24th.

BUT AS OF JANUARY 7th, THEY WARNED US THERE ARE STILL ABOUT SIX MILLION TAX RETURNS FROM 2020 THAT HAVE NOT YET BEEN PROCESSED.

SO IF PROCESSING TIMES MAY TAKE A LITTLE LONGER.

MAY TAKE A LITTLE LONGER TO RECEIVE REFUNDS.

AND IT MAY TAKE A LITTLE LONGER TO RECEIVE ANY NOTIFICATIONS REGARDING YOUR TAX RETURNS.

>> WHAT'S NEW FOR THE TAX FILING SEASON THIS YEAR.

>> THE ADVANCED CHILD TAX CREDIT WAS STARTED IN JULY, WHERE PEOPLE STARTED TO RECEIVE EITHER CHECKS IN THE MAIL OR DIRECT DEPOSIT AMOUNTS.

AND THIS WAS AN ADVANCEMENT OF THE CHILD TAX CREDIT THAT YOU TYPICALLY RECEIVE ON YOUR TAX RETURN.

NOW, YOU ARE GOING TO -- IF YOU DID RECEIVE AN ADVANCED CHILD TAX CREDIT YOU ARE GOING TO RECEIVE A LETTER FROM THE IRS.

YOU WANT TO SAVE THAT LETTER, PROVIDE IT TO YOUR TAX PROVIDER.

FOR 2021 YOU WILL ALSO RECEIVE A LETTER IF YOU RECEIVED ANY ECONOMIC STIMULUS PAYMENTS IN EARLY 2021.

SO WE WANT TO JUST MAKE SURE THAT WE'RE KEEPING THOSE LETTERS FROM THE IRS AND PROVIDING THEM TO OUR TAX PREPAFRERS WHEN IT IS TIME TO DO OUR TAXES.

>> DO THOSE ITEMS ADD TO YOUR INCOME?

WILL YOU BE PAYING TAXES ON THAT?

>> IT IS NOT INCOME.

IT IS A REDUCTION OF YOUR CREDIT.

SO IF YOU RECEIVED A DRET THAT YOU MAY NOT HAVE BEEN ENTITLED TO.

THEN YOU MAY HAVE TO PAY IT BACK.

>> SOMEWHERE SOME COMMON MISTAKES PEOPLE MAKE EVERY YEAR THAT YOU COULD PROVIDE GUIDANCE ON SO IT DOESN'T HAPPEN FOR THIS YEAR?

>> I WOULD JUST ENCOURAGE EVERYONE TO MAKE SURE THAT YOU HAVE ALL OF YOUR DOCUMENTATION, THAT ANY -- WAIT UNTIL YOU RECEIVE POTENTIALLY ANY CORRECTED 1099s FROM YOUR BROKERAGE HOUSES OR DIRECTED W 2 STATEMENTS.

I ALWAYS ADVICE TO NOT BE THE FIRST IN LINE BECAUSE THERE ARE UPDATED OR CHANGES TO SOFTWARE SYSTEMS.

I WOULD JUST ENSURE YOU HAVE ALL OF YOUR PAPERWORK IN ORDER AND WAIT MAYBE TWO TO THREE WEEKS AFTER THEY OPEN.

EARLY FEBRUARY IS ALWAYS A GOOD TIME OR MID FEBRUARY IS ALWAYS A GOOD TIME.

BY THEN THEY TYPICALLY HAVE THE KINKS WORKED OUT.

>> ALWAYS GOOD TO TALK TO YOU DURING TAX SEASON.

WE KNOW YOU WILL BE BUSY SO THANKS FOR MAKING SOME TIME FOR US TODAY.

>> ABSOLUTELY, THANK YOU SO MUCH.

>>> THIS YEAR NEW JERSEY IS DUE TO LAUNCH A PROGRAM TO MAKE IT EASIER FOR MANY PEOPLE TO SAVE FOR RETIREMENT.

THE SECURE CHOICE SAVINGS PROGRAM IS A STATE-SPONSORED PLAN GEARED FOR SMALLER BUSINESSES WHICH CAN'T AFFORD RETIREMENT PROGRAMS FOR THEIR EMPLOYEES.

I TALKED ABOUT THAT UPCOMING PROGRAM AND OTHER RETIREMENT ISSUES WITH DOUG GARBACH A FINANCIAL PLANNER WITH FINANCIAL ADVISORS.

DOUG, WHAT DO YOU THINK THE BIGGEST MISCONCEPTION IS WHEN IT DOMINANCE TO SAVING FOR RETIREMENT.

>> I THINK THE BIGGEST MISCONCEPTION RHONDA IS THAT PEOPLE ARE CONCERN ABOUT TIMING THE MARKET.

DID I GET IN AT THE RIGHT TIME?

HAVE I TAKEN ALL MY OPPORTUNITIES?

I'M TOO LATE WITH REQUIREMENT.

IT IS NOT REALLY THE TIMING OF THE MARKET.

IT IS TIME IN THE MARKET.

>> SO START EARLY AND STAY IN.

>> 100%.

STARTING EARLY IS THE BEST THING YOU CAN POSSIBLY DO.

MAKE A GREAT BUDGET.

PLAN FOR RETIREMENT SAVINGS BE PART OF YOUR REGULAR SAVINGS PLAN ALL THE TIME.

AND I THINK YOU ARE GOING TO BE IN BETTER POSITION THAN YOU THINK.

>> DO MOST PEOPLE UTILIZE THE 401(k)s OR 403 Bs THROUGH THEIR WORKPLACE WHERE YOU CAN REALLY HOPEFULLY GET A MATCH THAT MAKES A DIFFERENCE?

>> IT IS VERY IMPORTANT TO REALLY BUILD YOUR RETIREMENT PLANNING AND SAVINGS AROUND WHAT YOUR NEEDS WILL BE.

AND THAT'S A BIG MISCONCEPTION THAT THEY CAN DO THE COMPANY MATCH AND THEY WILL BE OKAY.

WHAT I'VE FOUND IS WE GET TO LATER YEARS WITH OLDER CLIENTELE AND THEY FOUND THEY HAVEN'T SAVED ENOUGH.

>> HOW DO YOU GET STARTED?

A LOT OF PEOPLE KIND OF PUT IT OFF ANOTHER YEAR AND THEN ANOTHER YEAR AND THEN TIME STARTS TO CATCH UP.

HOW DO YOU TAKE THE FIRST STEP?

HOW MUCH MONEY SHOULD YOU BE SAVING?

HOW DO YOU EDUCATE YOURSELF IF YOU ARE REALLY NOT UNDERSTANDING THE INVESTMENT VEHICLES THAT ARE OUT THERE?

>> IF YOU ARE NOT A PROFESSIONAL ADVISOR, YOU SHOULD PROBABLY SEEK ADVICE OF A PROFESSIONAL ADVISOR.

IF YOU ARE WORKING THERE AWE EMPLOYER SPONSORED PLAN THERE ARE USUALLY PEOPLE TO HELP YOU OUT TO GET YOU STARTED.

SEEK THE HELP AND ADVICE.

WHAT YOUR PLAN CAN ISN'T BE WHAT YOUR NEIGHBORS PLAN IS.

THEIR LIVING CONDITIONS MIGHT BE DIFFERENT, BUDGET, LIFESTYLE MIGHT BE DIFFERENT.

SO YOU REALLY SO CUSTOM TAILOR YOUR PLAN TO YOUR NEEDS.

>> WHAT ABOUT PEOPLE WHO DON'T HAVE EMPLOYER-SPONSORED PLANS?

THE STATE OF NEW JERSEY IS MOVING O TOWARDS A SYSTEM THAT WILL GIVE MORE PEOPLE THE OPPORTUNITY TO INVEST.

HOW IMPORTANT IS THAT?

AND WHAT WOULD YOU TELL OTHERS WHO DON'T HAVE THAT LUXURY?

>> WELL THAT'S A GREAT POINT.

THE NEW JERSEY SECURE CHOICE PROGRAM IS A PROGRAM OUT THERE THAT MAKES AN IRA AVAILABLE THROUGH AN EMPLOYER-SPONSORED PROGRAM.

IT IS SMALL EMPLOYERS, AND IT IS GOING TO BE MANDATORY, SUPPOSEDLY.

WE HAD A BIT OF A BLIP WITH COVID SO THEY TOOK THE MANDATORY AWAY AND GAVE EXTENSION BUT IN MARCH 2022 EMPLOYERS WITH OVER 25 EMPLOYEE WHO IS DON'T HAVE ANOTHER EMPLOYER SPONSORED PLAN WILL HAVE TO IMPLEMENT THIS PLAN.

IT DOES HAVE LIMITATIONS ON IT BUT IT IS A GREAT START FOR THOSE WHO ARE PERHAPS IN A RETAIL JOB THAT THEY -- THE EMPLOYER MIGHT NOT WANT TO PUT OUT A PLAN.

THEY ARE GOING TO BE FORCED TO.

SO IT IS GREAT ON NEW JERSEY'S PART TO HELP PEOPLE GIVE THE OPPORTUNITY TO PARTICIPATE.

>> DOUG, THANK YOU FOR ALL THIS GREAT ADVICE.

NICE CHATTING WITH YOU.

>> THANKS RHONDA.

GREAT CHATTING WITH YOU AS WELL.

>>> AND THAT WRAPS UP OUR SHOW FOR THIS WEEK.

THANK YOU FOR WATCHING "NJ BUSINESS BEAT."

I'M RHONDA SCHAFFLER.

WE'LL SEE YOU NEXT WEEK.

PICTURE >>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NJCU SCHOOL OF BUSINESS, A GAME-CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, OR BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY, AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU/GAMECHANGER.

--Captions by VITAC -- www.vitac.com