Forty-one-year-old Chris White's annual income has ranged from $50,000 to $80,000 since she began working as an engineer in 1993. However, even with a good salary, the Woodbridge, New Jersey, resident has been unable to accumulate wealth. "I need someone to help me evaluate where my money is going because I can't seem to build on my savings goals,†says White. In addition to her job as an office manager at a tax consulting firm, where she now earns an annual salary of $53,000, White makes almost $5,000 bartending part time. She used to run a check-cashing business in Jersey City, New Jersey, for five years. But her entrepreneurial aspirations came to an end in 2009 when she was forced to file for bankruptcy to pay off $90,000 in business loans and personal and business credit card debt after being robbed. "One weekend I pulled out $50,000 on three different cards to remain in business,†says White, recounting her efforts to keep the business afloat. White, who at one time had a credit score of 710 before filing for Chapter 7 in December 2009, quickly rebuilt her credit from the 500-range after the bankruptcy was finalized in April 2010 to 680 today. Since then, she has focused on rebuilding her credit by taking out and repaying two small $500 loans from the Intersect Fund in New Brunswick, a nonprofit that lends to small businesses that have experienced financial hardship to help them rebuild their credit. She also has a secured Visa card with a $300 limit, which she makes sure is paid in full each month, and she pays her $330 car note on time. (Continued on next page) White still hasn't built any solid wealth, though, and she has a savings goal of $20,000, which she hopes to reach by next summer to eventually purchase a condo and reopen her business. She maintains a budget at Mint.com and, based on her monthly living expenses, she should have a surplus of $400 each month. However, the figures don't add up. "My savings account has been at about $7,000 for the last five or six months, White says. "I'm 41, I have no kids. I should have money in an account even if I never spend it.†In addition to her savings, White has started investing for retirement after a seven-year hiatus. She now puts 5% of her income into the employer-sponsored 401(k), bringing her total retirement savings to approximately $44,000 spread out through five different mutual fund retirement vehicles. Three are other 401(k) accounts not rolled over from previous employers, totaling nearly $30,000; one's an IRA worth more than $10,000 that she converted from a traditional to a Roth, which caused her extra taxation; and there's a CD valued at $3,700. White also indulges in a $189-a -month gym membership. Her company pays $50 of it and also pays for her public transportation costs. She also enjoys hanging out after work at meet-ups and admits to going out as many as four times in one week. White realizes she could make some cuts and says she plans to replace hanging out after work with reading in the park because she really wants to meet her goals. "At this age, I'm seriously looking to get a home and I should have something in the bank,†says White. "I want my business again. I was proud of myself. I want to try to give it another shot,†she says. (Continued on next page) The Advice Black Enterprise and Wells Fargo financial adviser John Nelson in Cliffside Park, New Jersey, offer this advice to help White meet her wealth-building goals. - Get help to change financial behavior. White needs to change her behavior and focus on maximizing her income potential instead of relying on her business venture to fund her retirement. be recommends that she continue working with a financial planner and enroll in financial empowerment courses. - Delay home buying and business goals. White should not even consider homeownership or restarting her business until she gets her financial house in order. She needs to get back to the basics, building an emergency fund equal to six to nine months of expenses as well as secure the 20% down payment needed to purchase her home. "While I understand that reopening her business is a priority for her, I urge her to consider delaying the start date until the necessary startup capital is fully funded,†says Nelson. "For the house, she should delay that for two years to accumulate $30,000 to $40,000 to cover the down payment and closing costs.†- Curb spending. Nelson estimates that White can cut about $200 per month in dining out and health and fitness. Since every bit counts, she can design her own exercise program and save the money on a gym membership and allocate those funds to her savings. She should also stop eating out and other such indulgences. - Sell her second car. In addition to the 2010 Camaro, White owns a 2002 Nissan Maxima, which is paid off. Nelson says she should sell her second car. "That would be $4,000 she can put aside for her home purchase or business. There is no sense in retaining it; it will continue to depreciate,†says Nelson. (Continued on next page) - Accumulate retirement wealth. Nelson advises White to "increase systematic savings toward her 401(k) plan from 5% to at least 10% of her income. Her current employer is matching 25% of her income up to $5,000 per year,†explains Nelson, who estimates that if White increases to 10% of her income, or $5,000, immediately and maintains this contribution for the next 19 years, she will have an additional $132,200 in her 401(k) account when she turns 60. He adds that if White doesn't do this and just puts this investment toward her business, she will put herself at greater risk. "With a business, you are at 100% risk. With a retirement account, you have an average return of 7% to 10% with certainty that you will accumulate,†estimates Nelson. For her age, length of time working, salary history, and assuming an 8% average return, she should have more than $187,000 in retirement funds versus the almost $44,000 she has now. Nelson says the second part of White's retirement financing strategy is to consolidate. He recommends she roll her former employer-sponsored plans into an IRA and collapse her multiple checking accounts into one retirement vehicle. - Don't commingle assets. When–or if–White is ready to reopen her business, she needs to keep her business finances separate from her personal accounts. "She must set aside money for retirement as a personal asset and not borrow from it for other purposes,†emphasizes Nelson. Additionally, he says, "You have to protect yourself. If you put all of your assets in your business, what's the backup?â€Â    Â