Meet
Judy Ta, a business, career, and financial coach and the host of the
Munchies and Money Moves podcast. From a childhood marked by poverty to earning a multi-six-figure income in the corporate world,
Judy's journey has shaped her belief that personal finance isn’t about rigid formulas but crafting a path that works for you. In this interview, Judy shares her insights on creating emergency savings, optimizing spending without sacrificing quality, and building wealth, offering a roadmap for anyone looking to achieve financial freedom and stability.
Starting your financial journey
Joy Wallet: What are the first steps you recommend for someone just starting to take control of their personal finances?
Judy: Many people who feel overwhelmed by finances find it helpful to start by breaking things down. Begin with small, achievable steps. For example, consider setting a goal to save a small amount each week, like $10, or to track expenses in one spending category. This could also include building a modest
emergency fund of a few hundred dollars. Some people stay motivated by gamifying their goals, using challenges like reducing spending on one item weekly, or using an app that rewards meeting savings targets. Small, consistent actions like these can build confidence, and over time, they create a strong financial foundation. The key is progress, not perfection — celebrating each win can keep you encouraged.
For those already comfortable looking at finances but unsure where to start, a financial inventory can be useful. Listing all sources of income, expenses, debts, and recurring charges can provide a clear picture. Some people find
budgeting methods like the 50/30/20 approach helpful — allocating 50% for essentials, 30% for wants, and 20% for savings or debt — or a values-based approach: reviewing spending to see if it aligns with personal priorities. Consider asking questions like, “Is spending in certain areas worth delaying my goals?” or “How much value am I getting from each expense?”
The importance of emergency savings
Joy Wallet: What role does emergency savings play in overall financial health, and how much should individuals aim to save?
Judy: An emergency fund is often seen as a “financial safety net” for life’s unexpected events. General guidelines suggest aiming for three to six months of expenses, but this can vary. For example, someone in a stable job may aim for a smaller fund, while someone launching a business might prefer a larger cushion to cover potential startup challenges. If a job search in a particular field tends to take longer, consider factoring that into the goal. An emergency fund tailored to your circumstances can help provide both security and flexibility, which may ease stress and allow for a stronger focus on long-term goals.
Avoiding common pitfalls
Joy Wallet: What are some common personal finance mistakes you saw people make, and how can they avoid them?
Judy: A common pitfall is setting unrealistic goals. For instance, many people set ambitious financial goals, then feel overwhelmed and abandon their efforts. Instead, it can be helpful to set small, realistic steps and assess each one to make sure it’s achievable. If you’re aiming to reduce monthly expenses, for example, a gradual approach or adding small incentives along the way can make the process more sustainable.
Another common mistake is comparing personal finances to others, which can lead to discouragement. Remember, each financial journey is unique — progress won’t look the same for everyone. Avoid the trap of “keeping up” and focus on what aligns with your own values. Personal finance success is about building habits that support your goals, not someone else’s.
Setting and achieving long-term financial goals
Judy: Many find it helpful to start with a clear vision and then break big goals into actionable steps. If a home purchase is the goal, begin by
saving for a down payment or
improving your credit score. Setting checkpoints to track progress and adjusting plans as needed is key. Life changes, so flexibility can keep you on track without feeling restricted. Tracking your progress can also build motivation and make big goals feel more attainable.
Balancing lifestyle and security
Joy Wallet: How do you help clients create a balanced financial plan that accommodates both lifestyle desires and future security?
Judy: A balanced plan usually considers both present lifestyle and future goals. Starting with an honest look at personal values and areas open to adjustment can help bridge the gap between a current lifestyle and an ideal future. For example, if travel is important, setting a travel budget within the overall plan can allow for enjoyment without compromising long-term savings. Balancing intentional choices now with future goals helps create a sustainable approach to financial planning.
Smart income allocation
Joy Wallet: What’s the most effective way to allocate income between expenses, savings, and investments?
Judy: The 50/30/20 rule is a helpful baseline, but it should reflect individual circumstances. Factors like age, income, lifestyle, and health often influence how people allocate income. For instance, someone living with family may choose to save more, while someone aiming for
early retirement might prioritize investments. Adapt these allocations to best fit your personal goals and lifestyle.
Debt-free living
Joy Wallet: What’s your advice on managing monthly expenses without relying on credit cards or loans?
Judy: Align spending with core values and focus on what brings real joy. Budgeting for the things that add happiness, like a hobby or travel, can help avoid overspending. Many people find it helpful to review each purchase to see if it truly brings value. Financial health is often about making intentional choices rather than depriving yourself.
Optimizing spending
Joy Wallet: How can someone optimize their spending habits without sacrificing quality of life?
Judy: Start by
tracking every expense for 1–2 months to identify unnecessary spending and build a plan that includes a “fun fund” to satisfy small indulgences. For big purchases, set up a dedicated
savings account with automatic deposits to avoid using credit. For added income, explore
side gigs or monetize a hobby — this creates a cushion without borrowing.
Choosing investments wisely
Judy: Investment choices should generally align with individual factors like age, risk tolerance, and long-term goals.
Younger investors may lean toward stocks for potential growth, while those nearing retirement often prefer
bonds for stability. Real estate can appeal to those interested in a tangible asset, though it requires considering the local market and potential personal involvement. Align your choices with what feels comfortable and supports your financial vision.
Building wealth on any income
Joy Wallet: How can individuals build wealth over time without needing a high income?
Judy: Wealth-building isn’t dependent on a high income but rather on consistent saving, intentional spending, and strategic investing. Regularly reassessing spending and making incremental changes can help as goals evolve. With dedication, wealth can grow gradually without sacrificing quality of life.
The power of diversification
Joy Wallet: What strategies do you recommend for maintaining a diversified investment portfolio, and why is it important?
Judy: Diversification is about spreading risk so you’re not overly reliant on one type of asset. A diversified portfolio often includes a mix of different investment types — such as
stocks, bonds,
real estate, and potentially alternative assets like commodities. This balance can help stabilize returns over time and reduce the impact of any single investment’s downturn. Diversification aligns with personal goals and comfort levels, balancing growth and security.
Finding joy
Joy Wallet: On a personal note, what brings you the most joy in life, and how does it influence your work as a personal finance coach?
Judy: My greatest joy is helping others feel confident and in control of their financial future. Helping others reach these milestones doesn’t just impact their present — it builds generational habits, creating a ripple effect of financial well-being. Being a part of that journey, witnessing clients transform their relationship with money and build lives they’re proud of, truly fulfills me. It’s more than just numbers; it’s about empowering people to live richer, more meaningful lives.
