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How Chasing Your Mission Changes Your Life

How Chasing Your Mission Changes Your Life

“He who has a why to live for can bear almost any how.”― Friedrich Nietzsche

The power of chasing your mission is that it creates almost limitless resilience.

That’s because a mission gives you a framework in which to understand your situation. And that can be invaluable when you’re faced with setbacks.

If you have no mission, you can become lost in thoughts like…

“Why am I doing this?” “This is pointless.” “I should just give up.”

And it makes perfect sense why! If the obstacles you’re facing aren’t part of a larger struggle to accomplish your mission, then why should you face them?

Without a mission, you render yourself potentially unable to overcome any challenges or obstacles! The “why” is missing, and you’re left with nothing but seemingly futile efforts.

What happens when you flip the script and live a mission-driven life? Here are some thoughts you may have when you encounter a setback…

“I don’t know how, but I know I can do this.” “If I can just get over this hump, my goals will be in reach.” “This sucks for now, but I’ll keep fighting until it gets better.”

So what can you do if you don’t have a mission? Here are a few ideas…

Take a poll of trusted friends, family, and loved ones about your talents. If there’s an overwhelming consensus, consider developing those talents into a mission statement.

Notice when you’re in the zone. That’s a sign that you’re doing something you find meaningful and purposeful. It’s worth integrating that activity into your mission.

Surround yourself with mission-oriented people. Inspiration is contagious. You might be surprised by how quickly the excitement of others rubs off on you.

If you’re seeking opportunities to chase a greater mission, contact me. I’d love to chat about what that could look like for you!


The Greatest Financial Mistake Young People Make

The Greatest Financial Mistake Young People Make

Everyone makes mistakes—some more severe than others.

There’s a significant financial mistake people in their 20s and 30s make. It’s simple, but if you’re young, it could change your financial future…

Have you made this mistake? Think you know what it is?

Young people don’t save enough. Not by a long shot. On average, Millennials have only saved $23,000 for retirement.¹ And a recent survey revealed that 65% of 50 year olds felt the greatest financial mistake of their 20s and 30s was not saving.² It’s no wonder, then, that the same group feels they have under-saved and under-prepared for retirement.

So what can you do if you’re a young person seeking to build wealth? Here are three ideas…

Automate saving every month. The power of automation makes saving easy. Saving stops being a conscious decision with which you may or may not follow through. Instead, it’s a background process you can set and forget.

Meet with a financial professional. They’re the guides you need for navigating the world of budgeting, saving, and building wealth. They can help you identify the goals and strategies you need to inspire your savings.

Focus on your own financial growth. Comparing your lifestyle to your peers is tempting, especially when you’re young. But it can be dangerous, especially if it causes you to spend more than you earn. Just remember—you may not really know the financial situation of your friends as presented on social media. People tend to just show the good and not the bad. Orient yourself towards improving your own situation and building your future.

So don’t make the mistake that so many have made. Follow the tips in this article and start laying the foundation of your financial future.

¹ “Retirement Security Amid COVID-19: The Outlook of Three Generations 20th Annual Transamerica Retirement Survey of Workers,” Transamerica Center For Retirement Studies, May 2020, https://transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2020_sr_retirement_security_amid_covid-19.pdf

² “Money Mistakes: Exploring the financial situation of people over 50,” Caring Advisor, https://caringadvisor.com/money-mistakes/


The Key to Successful Saving

The Key to Successful Saving

For many, saving is not a priority.

There are a lot of reasons why. It takes planning and self-control. You’ll have to ask yourself if you can fit every purchase into your budget. It means giving up something today in order to benefit tomorrow.

These are all true, but saving doesn’t have to be hard work. One way to make it easier is to automate your savings and then watch your balance grow!

Automation is such a powerful tool because it makes saving effortless. With automation, saving is now a default, as opposed to a decision—you’re always saving in the background.

For example, you might have a goal to save $1,000 for a vacation. If you’re saving $20 per week, that would take less than a year. And the same logic applies to larger goals—it’s a key strategy for creating retirement wealth.

First, decide how much money you can afford to save each month. Then set up automatic deposits from your main bank account into your savings account. That’s it! Every month, money will go straight from your paycheck to your wealth building efforts.

Now, you’re positioned to go about your daily business, confident that you’re preparing for the future. And it only takes a few minutes to do! If you want to discover more wealth building strategies, contact me. We can review your financial situation and create a game plan.


Exercise and Wealth? Which Comes First?

Exercise and Wealth? Which Comes First?

It’s a fact—the wealthy work out. But which came first, the exercise routine or the wealth?

Let’s find out!

A survey of the wealthy revealed that 76% engaged in aerobic exercises for 30 minutes per day, 4 days per week.¹ The same survey revealed that only 23% of the non-wealthy do the same.

So the question isn’t whether the wealthy work out. It’s whether exercise played a role in their journey to financial security.

The connection isn’t as clear as we may like. That’s because correlation doesn’t equal causation. Plenty of wealthy people also read a lot (see my other article on the connection between wealth and reading). But no one would claim that reading alone created their prosperity. The same could be argued for exercise—perhaps the wealthy only found the time to work out after they achieved financial independence!

There’s a host of research that demonstrates the power of exercise to…

  1. Reduce anxiety
  2. Alleviate depression
  3. Stimulate brain activity²

In fact, exercise is as effective as antidepressants in some cases!³ That means exercise may help remove barriers that inhibit your ability to build your goals and achieve your dreams. It can also fuel the creativity you need to help solve problems and increase your potential market value. One study discovered that physical activity in men resulted in a 14-17% increase in income over a 15 year period.⁴

The takeaway? Imitate the wealthy and get some exercise! It’s a non-financial habit that may pave the way to better mental health and help position you to achieve greater things, wealth-related or not.

¹ “Why Is Aerobic Exercise Important to Building Wealth?” Thomas Corley, Rich Habits, Aug 25, 2020, https://richhabits.net/why-is-aerobic-exercise-so-important-to-building-wealth/ ² “The Mental Health Benefits of Exercise,” Lawrence Robinson, Jeanne Segal, Ph.D., and Melinda Smith, M.A., HelpGuide.org Oct 2020, https://www.helpguide.org/articles/healthy-living/the-mental-health-benefits-of-exercise.htm# ³ “Exercise is an all-natural treatment to fight depression,” Harvard Health Publishing, Feb 2, 2021, https://www.health.harvard.edu/mind-and-mood/exercise-is-an-all-natural-treatment-to-fight-depression ⁴ “8 Daily Rituals Most Millionaires Have In Common,” Lou Carlozo, Money Under 30, Nov 16, 2020 https://www.moneyunder30.com/millionaires-daily-rituals


Read This Before You Return To The Office

Read This Before You Return To The Office

You’ve probably heard it dozens of times—everyone is ready for the return to ‘normal.’

And nothing screams normal like the office. The messy desks, the long commute, the last-minute requests from your boss, even those boring meetings—they all may appear oddly comforting after a year spent at home.

But beware. The return to normal might start off exciting, but you may find that the novelty is wearing off before too long. You might rediscover certain things about the 9-to-5 life that drag you down.

If that’s where you find yourself, mark it well. It may mean that your work location isn’t the problem—it’s the job itself.

That’s because it doesn’t matter whether you work from home or in an office if your career is being stifled by your job. A toxic work dynamic or disadvantageous model will drain you even if you’re working from a beach in the tropics!

So if you go back to the office and nothing changes, it may be time to find a new opportunity, one that offers…

  • Unlimited potential for income growth
  • Flexibility of time and location
  • Control over your success

So as you go back to the office, keep your eyes open. If you’re still dissatisfied with your job, contact me. We can explore opportunities for you to break the mold and pursue your own path.


Wealth and Relationships

Wealth and Relationships

Do you want wealth? Do you want happiness?

Having one doesn’t mean you’ll necessarily have the other. But if you want to have both, there’s strong evidence that healthy relationships can be a key investment in your earning potential AND happiness.

A Harvard study followed 100 graduates through their adult lives. The results were profound—those with strong relationships earned far more than their peers.2 In fact, there was a deeper connection between love and income than intelligence and income.

The takeaway? One of the greatest investments you can make is in the people around you. Screening out negative influences and creating warm, loving relationships can profoundly transform your potential. Don’t ignore what matters most in the name of your career or success.

That’s easier said than done. Few are ever taught what it takes to build healthy relationships, how to identify negativity in friends, or what toxic people look like.

Everyone’s situation and knowledge level is different. But for most, it’s wise to seek out a mentor. Who is someone you know who’s built happy, prosperous relationships with their family and friends? Talk to that person! Study how they see the world, how they process information, and handle conflict. It might just change your perspective and the course of your life.

¹ “What is the secret to a long and happy life? Not money, but relationships,” Claire Badenhorst, Biznews, Jun 22, 2021, https://www.biznews.com/sponsored/2021/06/22/happy-life-relationships


Why the Wealthy Prioritize Passive Income

Why the Wealthy Prioritize Passive Income

It’s simple—the wealthy prioritize passive income because it saves time.

That’s because passive income streams don’t require constant time and effort to maintain. Once they’re up and running, they require minimal maintenance to keep earning.

Let’s consider a hypothetical example…

Sarah and Jim are coworkers and friends. Jim is content to work from 9 to 5, five days a week, in exchange for his paycheck. He trades about half of his waking hours for his income.

Sarah, however, is more ambitious. She wants a more effective way to create additional cash flow.

So, she starts a business selling crafts online. At first, it’s a lot of extra work—she creates the products, makes the listings, runs ad campaigns, and even ships the items herself. But she’s creative and motivated, and her business grows.

It doesn’t take long before she earns enough from her business to hire an employee to help with the marketing and shipping. She can focus on what she loves—making the crafts!

But that extra pair of hands increases her productivity even further. Now, she can hire another employee to actually make her crafts.

Suddenly, Sarah is almost totally uninvolved in her business beyond high level decision making. In addition to her day job, it’s become a source of income that requires minimum upkeep. And she still has time every evening for her family and opening up new passive income streams!

The takeaway? The sooner you can create viable sources of passive income, the better! It comes down to matching your effort to your reward. It’s a chance to create impressive returns over the long-term for an upfront investment of time, money, and energy.

If you’re interested in opportunities to create additional income streams, contact me! We can discuss strategies that the wealthy leverage to create passive income.


The Connection Between Wealth and Reading

The Connection Between Wealth and Reading

Reading is a common denominator among the wealthy.

One study revealed that 85% of self-made millionaires read 2 or more books per month.¹ That’s not a coincidence. Many of us have been told that reading improves our vocabulary and grammar skills, but there’s so much more to it than that! Reading can help develop traits that can provide an excellent foundation for a prosperous life and building wealth.

1. Reading expands your perspective. Think of it like a hack that grants you access to the wisdom of others. Instead of only drawing from your own experiences and resources, reading is an opportunity to discover fresh and challenging ideas. And the more connections you make between the ideas you read about, the more creative—and valuable—you become.

2. Reading can counteract negative emotions. Reading is good for your brain—it can reduce stress levels and prevent age-related cognitive decline.² But it goes deeper than that. It turns out that making new connections is good for your mental health. There’s evidence that reading can help combat struggles like depression.³

Why? It’s because reading can help people process difficult situations. Reading about other characters and different perspectives can help forge new mindsets and beliefs. And the more you process through difficulties, the better equipped you become to build a prosperous life.

3. Reading builds empathy. It’s no surprise that discovering other perspectives or exploring the inner lives of characters builds empathy.3 What might be surprising, however, are empathy’s benefits.

Not only does empathy lead to a richer emotional life, but it’s been shown to be critical for creating healthy—and productive—workplaces.⁴ Understanding the emotions and feelings of others makes you a more effective leader, coworker, and person.

Notice that none of these skills are directly financial—you won’t learn them in a finance or accounting course, and probably no one would pay you to read a book per month. But, as you can see, they can be critical for expanding your perspective and growing your career.

If you’re interested in reading more, start small and easy. Try reading for 15 to 30 minutes per day for a week on a topic that interests or excites you. Then slowly expand your reading time as you feel comfortable. At the end of the month, see how you feel! You might be surprised by how much your perspective has grown or shifted.

¹ “5 Common Traits of A Self-Made Millionaire,” Caden Strause, Medium, Oct 26, 2020, https://medium.com/frugal-friday/5-common-traits-of-a-self-made-millionaire-f6cf65c13c6c

² “5 ways reading benefits your health — and how to make reading a daily habit,” Lia Tabackman, Insider, Dec 1, 2020, https://www.insider.com/benefits-of-reading

³ “The Health Benefits of Books You Have to Read to Believe,” Madison Yauger, Shape, Oct 27, 2020, https://www.shape.com/lifestyle/mind-and-body/benefits-of-reading-books

⁴ “New Research Shows Why Business Leaders Struggle With Workplace Empathy,” Bryan Robinson, Forbes, May 17, 2021, https://www.forbes.com/sites/bryanrobinson/2021/05/17/new-research-shows-why-business-leaders-struggle-with-workplace-empathy/?sh=749a6d8684ad


Habits of the Wealthy: An Introduction

Habits of the Wealthy: An Introduction

So you want to be wealthy. You’re ambitious, you work hard, and you’re ready to discover what it takes to build wealth.

You’ve come to the right place.

Over the next few weeks, this blog will explore the habits of the wealthy. You’ll discover why the wealthy incorporate certain activities and rituals into their daily routine and how you can implement them, starting TODAY.

You might be surprised by what you learn. That’s because almost none of these habits have anything directly to do with how you spend your money.

But they have everything to do with building character and improving lifestyle. That’s because the wealthy are often ordinary people who reached a critical realization early on—financial success is just one element of a rich life. The more growth you experience as an individual, the more empowered you can become to build wealth.

There are plenty of exceptions—you’ll find countless people who are both prosperous and non virtuous. This series isn’t about them, and it’s certainly not for those who want to pursue that path.

But if you’re curious to discover the habits of the wealthy, keep your eyes on this blog. You may learn something you can put into practice right now that might transform your future!


Should I Buy Or Rent?

Should I Buy Or Rent?

Home ownership is a big part of the “American Dream”.

But sometimes it might seem more convenient (or economical) to rent rather than buy. Here are two things to consider if you’re looking to buy a house instead of renting.

How long will you live in the house?. When you own a home, the hope is generally that it will increase in value and that you would be able to sell it for more than you bought it. The best way to do that is to plan to stay in your house for the long haul. So if you’re looking to remain in an area for a while and put down roots, buying a house is a strong consideration.

But let’s face it, not everyone is in that position. Maybe you’re young and hopping from opportunity to opportunity. Perhaps your job requires you to travel frequently or change locations. You might just prefer discovering new, exciting places and not being tied down. Unless you plan on renting out your property, it may not make sense for you to buy. Renting might give you more flexibility to move about as you please!

Can you afford to buy a house? So you want to settle down in a city or a certain neighborhood for the foreseeable future. Does that automatically mean you should buy a house?

Well, maybe not.

You simply may not be able to afford a house right now. Do you have significant debt in student loans or a car? Have you been able to save up enough for closing costs and a down payment? Mortgages might be cheaper than rent at certain times, but that might flip-flop before too long. Are you ready to maintain your house or pay for unexpected damages? These are all questions to ask before you decide to become a homeowner.

Still weighing your homeownership options? Let’s talk. We can review your situation and see if now is your time to buy!


Do I Need Life Insurance?

Do I Need Life Insurance?

It might be uncomfortable to think about the need for life insurance, but it’s an important part of your family’s financial strategy.

It helps protect your family during the grieving process, gives them time to figure out their next steps, and can provide income to cover normal bills, your mortgage, and other unforeseen expenses.

Here are some guidelines to help you figure out how much is enough to help keep your family’s future safe.

Who needs life insurance? A good rule of thumb is that you should get life insurance if you have financial dependents. That can range from children to spouses to retired parents. It’s worth remembering that you might provide financial support to loved ones in unexpected ways. A stay-at-home parent, for instance, may cover childcare or education costs. Be sure to take careful consideration when deciding who should get coverage!

What does life insurance cover? Life insurance can be used to cover a variety of unexpected expenses. Funeral costs or debts can potentially be financial and emotional strains, as can the loss of a steady income and employer-provided benefits. Think of life insurance as a buffer in these situations. It can give you a line of defense from financial concerns while you process your loss and plan for the future.

How much life insurance do you need? Everyone’s situation is different, so consider who would be financially impacted in your absence and what their needs would be.

If you’re single with no children, you may only need enough insurance to cover funeral costs and pay off any debts.

If you’re married with children, consider how long it might take your spouse to get back on their feet and be able to support your family, how much childcare and living expenses might be, and how much your children would need to attend college and start a life of their own. A rule of thumb is to purchase 10 times as much life insurance as income you would make in a year. For instance, you would probably buy a $500,000 life insurance policy if you make $50,000 a year. (Note: Be sure to talk with a qualified and licensed life insurance professional before you make any decisions.)

An older person with no kids at home may want to leave behind an inheritance for their children and grandchildren, or ensure that their spouse is cared for in their golden years.

A business owner will need a solid strategy for what would happen to the business in the event of their death, as well as enough life insurance to help ensure that employees are paid and the business can either be transferred or closed with costs covered.

Life insurance may not be anyone’s favorite topic, but it can be a lifeline to your family in the event that you are taken from them too soon. With a well thought out life insurance policy for you and your situation, you can rest knowing that your family’s future has been prepared for.



How to Budget for Beginners

How to Budget for Beginners

Everybody needs a budget.

But that doesn’t stop “budget” from being an intimidating word to many people. Some folks may think it means scrimping on everything and never going out for a night on the town. It doesn’t! Budgeting simply means that you know where your money is going and you have a way to track it.

The aim with budgeting is to be aware of your spending, plan for your expenses1, and make sure you have enough saved to pursue your goals.

Without a budget, it can be easy for expenses to climb beyond your ability to pay for them. You break out the plastic and before you know it you’ve spent fifty bucks on drinks and appetizers with the gang after work. These habits might leave you with a lot of accumulated debt. Plus, without a budget, you may not be saving for a rainy day, vacation, or your retirement. A budget allows you to enact a strategy to help pursue your goals. But what if you’ve never had a budget? Where should you start? Here’s a quick step-by-step guide on how to get your budgeting habit off the ground!

Track your expenses every day. Start by tracking your expenses. Write down everything you buy, including memberships, online streaming services, and subscriptions. It’s not complicated to do with popular mobile and web applications. You can also buy a small notebook to keep track of each purchase. Even if it’s a small pack of gum from the gas station or a quick coffee at the corner shop, jot it down. Keep track of the big stuff too, like your rent and bill payments.

Add up expenses every week and develop categories. Once you’ve collected enough data, it’s time to figure out where exactly your paycheck is going. Start with adding up your expenses every week. How much are you spending? What are you spending money on? As you add your spending up, start developing categories. The goal is to organize all your expenses so you can see what you’re spending money on. For example, if you eat out a few times per week, group those expenses under a category called “Eating Out”. Get as general or as specific as you wish. Maybe throwing all your food purchases into one bucket is all you need, or you may want to break it down by location - grocery store, big box store, restaurants, etc.

Create a monthly list of expenses. Once you’ve recorded your expenses for a full month, it’s time to create a monthly list. Now you might also have more clarity on how you want to set up your categories. Next, total each category for the month.

Adjust your spending as necessary. Compare your total expenses with your income. There are two possible outcomes. You may be spending within your income or spending outside your income. If you’re spending within your income, create a category for savings if you don’t have one. It’s a good idea to create a separate savings category for large future purchases too, like a home or a vacation. If you find you’re spending too much, you may need to cut back spending in some categories. The beauty of a budget is that once you see how much you’re spending, and on what, you’ll be able to strategize where you need to cut back.

Keep going. Once you develop the habit of budgeting, it should become part of your routine. You can look forward to working on your savings and developing a retirement strategy, but don’t forget to budget in a little fun too!


¹Jeremy Vohwinkle, “Make a Personal Budget in 6 Steps: A Step-by-Step Guide to Make a Budget,” The Balance (March 6, 2020).


Pro-Tips for Side Gig Beginners

Pro-Tips for Side Gig Beginners

We’ve all probably heard someone talk on social media about their “hustle” or “side gig.”

It’s in style; and it makes sense—and cents? Gigs are now just a click or tap away on most of our devices, and a little extra money never hurts! Here are a few things to consider when starting up a side hustle.

What are your side hustle goals? We typically think of a side hustle as being an easy way to score a little extra cash. But they can sometimes be gateways into bigger things. Do you have skills that you’d like to develop into a full time career? A passion that you can turn into a business? Or do you just need some serious additional income to pay down debt? These considerations can help you determine how much time and money you invest into your gig and what gigs to pursue.

What are your marketable skills? Some gigs don’t require many skills beyond a serviceable car and a driver’s license. But others can be great outlets for your hobbies and skills. Love writing? Start freelancing on your weekends. Got massive gains from hours at the gym and love the outdoors? Start doing moving jobs in your spare time. You might be surprised by the demand for your passions!

Keep it reasonable. Burnout is no joke. Some people thrive on 80 hour work weeks between jobs and side hustles, but don’t feel pressured to bite off more than you can chew. Consider how much you’re willing to commit to your gigs and don’t exceed that limit.

One great thing about side hustles is their flexibility. You choose your level of commitment, you find the work, and your success can depend on how much you put in. Consider your goals and inventory your skills to get there—and start hustling!


7 Tips for Talking to Your Partner About Money

7 Tips for Talking to Your Partner About Money

Dealing with finances is a big part of any committed relationship and one that can affect many aspects of your life together.

The good news is, you don’t need a perfect relationship or perfect finances to have productive conversations with your partner about money, so here are some tips for handling those tricky conversations like a pro!

Be respectful. Respect should be the basis for any conversation with your significant other, but especially when dealing with potentially touchy issues like money. Be mindful to keep your tone neutral and try not to heap blame on your partner for any issues. Remember that you’re here to solve problems together.

Take responsibility. It’s perfectly normal if one person in a couple handles the finances more than the other. Just be sure to take responsibility for the decisions that you make and remember that it affects both people. You might want to establish a monthly money meeting to make sure you’re both on the same page and in the loop. Hint: Make it fun! Maybe order in, or enjoy a steak dinner while you chat.

Take a team approach. Instead of saying to your partner, “you need to do this or that,” try to frame things in a way that lets your partner know you see yourself on the same team as they are. Saying “we need to take a look at our combined spending habits” will probably be better received than “you need to stop spending so much money.”

Be positive. It can be tempting to feel defeated and hopeless that things will never get better if you’re trying to move a mountain. But this kind of thinking can be contagious and negativity may further poison your finances and your relationship. Try to focus on what you can both do to make things better and what small steps to take to get where you want to be, rather than focusing on past mistakes and problems.

Don’t ignore the negative. It’s important to stay positive, but it’s also important to face and conquer the specific problems. It gives you and your partner focused issues to work on and will help you make a game plan. Speaking of which…

Set common goals, and work toward them together. Whether it’s saving for a big vacation, your child’s college fund, getting out of debt, or making a big purchase like a car, money management and budgeting may be easier if you are both working toward a common purpose with a shared reward. Figure out your shared goals and then make a plan to accomplish them!

Accept that your partner may have a different background and approach to money. We all have our strengths, weaknesses, and different perspectives. Just because yours differs from your partner’s doesn’t mean either of you are wrong. Chances are you make allowances and balance each other out in other areas of your relationship, and you can do the same with money if you try to see things from your partner’s point of view.

Discussing and managing your finances together can be a great opportunity for growth in a relationship. Go into it with a positive attitude, respect for your partner, and a sense of your common values and priorities. Having an open, honest, and trust-based approach to money in a relationship may be challenging, but it is definitely worth it.


Splurging Responsibly?

Splurging Responsibly?

We have an odd relationship with splurging.

Many of us treat it like a guilty pleasure and almost take a little pride in our extravagant purchases, even seeing it as “self-care”. But there’s also a part of us that knows we’re not being wise when we senselessly spend money.

So how do we resolve that tension between having fun and making good decisions? Here are a few ideas to help you splurge responsibly!

Budget in advance. “Responsible splurging” might seem like a contradiction, but the key to enjoying yourself once in a while and staying on track with your financial strategy is budgeting. Maintaining a budget gives you the power to see where your money is going and if you can afford to make a big/last-minute/frivolous purchase. And when you decide that you’re going to take the plunge, a budget is your compass for how much you can spend now, or if you need to wait a little longer and save a little more.

Beware of impulse purchasing. The opposite of budgeting for a splurge is impulse buying. We’ve all been there; you’re scrolling through your favorite shopping site and you see it. That thing you didn’t know you always wanted—and it’s on sale. Just a few clicks and it could be yours!

Tempting as impulse buying might be, especially when there’s a good deal, it’s often better to pause and review your finances before adding those cute shoes to your cart. Check your budget, remember your goals, and then see if that purchase is something you can really afford!

Do your research. Have you ever spent your hard-earned money on a dream item, even if you budgeted for it, only to have it break or malfunction after a few weeks? Even worse, it might have been something as significant as a car that you wound up trying to keep alive with thousands of dollars in maintenance and repairs!

That’s why research is so important. It’s not a guarantee that your purchase will last longer, but it can help narrow your options and reduce the chance of wasting your money.

Responsible splurging is possible. Just make sure you’re financially prepared and well-researched before making those purchases!


4 Ways to Get out of Debt

4 Ways to Get out of Debt

Dealing with debt can be scary.

Paying off your mortgage, car, and student loans can sometimes seem so impossible that you might not even look at the total you owe. You just keep making payments because that’s all you might think you can do. However, there is a way out! Here are 4 tips to help:

Make a Budget. Many people have a complex budget that tracks every penny that comes in and goes out. They may even make charts or graphs that show the ratio of coffee made at home to coffee purchased at a coffee shop. But it doesn’t have to be that complicated, especially if you’re new at this “budget thing”.

Start by splitting all of your spending into two categories: necessary and optional. Rent, the electric bill, and food are all examples of necessary spending, while something like a vacation or buying a third pair of black boots (even if they’re on sale) might be optional.

Figure out ways that you can cut back on your optional spending, and devote the leftover money to paying down your debt. It might mean staying in on the weekends or not buying that flashy new electronic gadget you’ve been eyeing. But reducing how much you owe will be better long-term.

Negotiate a Settlement. Creditors often negotiate with customers. After all, it stands to reason that they’d rather get a partial payment than nothing at all! But be warned; settling an account can potentially damage your credit score. Negotiating with creditors is often a last resort, not an initial strategy.

Debt Consolidation. Interest-bearing debt obligations may be negotiable. Contact a consolidation specialist for refinancing installment agreements. This debt management solution helps reduce the risk of multiple accounts becoming overdue. When fully paid, a clean credit record with an extra loan in excellent standing may be the reward if all payments are made on time.

Get a side gig. You might be in a position to work evenings or weekends to make extra cash to put towards your debt. There are a myriad of options—rideshare driving, food delivery, pet sitting, you name it! Or you might have a hobby that you could turn into a part-time business.

If you feel overwhelmed by debt, then let’s talk. We can discuss strategies that will help move you from feeling helpless to having financial control.


Pros and Cons of Simple Interest

Pros and Cons of Simple Interest

Brace yourself: You’ve been brought here under false pretenses.

This post is not so much about a list of pros and cons as it is about one big pro and one big con concerning simple interest accounts. There are many fine-tooth details you could get into when looking for the best ways to use your money. But when you’re just beginning your journey to financial independence, the big YES and NO below are important to keep in mind. In a nutshell, interest will either cost you money or earn you money. Here’s how…

The Pro of Simple Interest: Paying Back Money

Credit cards, mortgages, car loans, student debt – odds are that you’re familiar with at least one of these loans at this point. When you take out a loan, look for one that lets you pay back your principal amount with simple interest. This means that the overall amount you’ll owe will be interest calculated against the principal, or initial amount, that was loaned to you. And the principle decreases as you pay back the loan. So the sooner you pay off your loan, you’re actually lowering the amount of money in interest that you’re required to pay back as part of your loan agreement.

The Con of Simple Interest: Growing Money

When you want to grow your money, an account based on simple interest is not the way to go. Setting your money aside in an account with compound interest shows infinitely better results for growing your money.

For example, if you wanted to grow $10,000 for 10 years in an account at 3% simple interest, the first few years would look like this:

  • Year 1: $10,000 + 300 = $10,300
  • Year 2: $10,300 + 300 = $10,600
  • Year 3: $10,600 + 300 = $10,900

In a simple interest account, the 3% interest you’ll earn is a fixed sum taken from the principal amount added to the account. And this is the amount that is added annually. After a full 10 years, the amount in the account would be $13,000. Not very impressive.

But what if you put your money in an account that was less “simple”?

If you take the same $10,000 and grow it in an account for 10 years at a 3% rate of interest that compounds, you can see the difference beginning to show in the first few years:

  • Year 1: $10,000 + 300 = $10,300
  • Year 2: $10,300 + 309 = $10,609
  • Year 3: $10,609 + 318 = $10,927

At the end of 10 years, this type of account will have earned more than the simple interest account, without you having to do any extra work! And that’s not even considering adding regular contributions to the account over the years! Just imagine the possibilities if you can get a higher interest rate and combine that with a solid financial plan for your future.

One final thought: Simple isn’t always the way to go, and that can be a good thing.


She Got the House… AND the Life Insurance Policy?

She Got the House… AND the Life Insurance Policy?

Life insurance is great for protecting your spouse… as long as it’s for your current one.

Just don’t ask Judy Marretta, formerly Judy Hillman, about it! When her ex-husband, Warren Hillman, passed away after a battle with a rare form of leukemia, she was the one who got the life insurance check. Warren’s widow didn’t see a penny of it–even the Supreme Court ruled in Marretta’s favor!

Why? When Warren remarried, he never changed the beneficiary designation on his life insurance policy.

All that time and money wasted on legal battles could have been avoided by changing a name on a form! Speaking of which… When’s the last time you reviewed your own life insurance policy? After reading this, you may already be scrambling through your files to find it!

Let’s check up on your policy together. Contact me today, and we can get the ball rolling on:

  • Reviewing (or revising!) your list of beneficiaries.
  • Making sure you have the coverage you want.
  • Discussing the life insurance features you might have that you can use now.

Discover the full story here… Forbes: “Supreme Court Favors Ex-Wife Over Widow In Battle For Life Insurance Proceeds.” 6.3.2013


The Disadvantages of Hourly Wages

The Disadvantages of Hourly Wages

Is an hourly wage holding you back?

It might not feel like it, but getting paid hourly can limit your professional growth and your income potential. Here’s how…

If you’re earning an hourly wage, you’re quite literally getting paid for your time. That’s why it’s so common for shift jobs like security guards, restaurant workers, and retail employees to be paid by the hour. And it makes sense—they’re literally paid to be present (to get work done) at their place of employment for a limited number of hours each week.

But there are two ceilings you’ll hit with this system. First, you only have so many hours you can work. Let’s say you earn $15 an hour. If you could somehow work 24 hours a day, 7 days a week for a full year, the maximum you could earn is $131,040.

But if we’re realistic, earning $15 per hour, working 40 hours per week with no time off, would get you less than a fourth of that, roughly $31,200.

Is that $31,200 worth it to you? With an hourly system, that type of trade-off is unavoidable.

Second, hourly wages don’t encourage efficiency. The more hours you punch in, the more you get paid. If you’re working in a project or sales-oriented field, that means you’re incentivized to drag your feet. Even worse, you’re actually punished for increasing your speed and ability!

What if you got paid by the project or sale? Getting paid this way, once you’ve finished one project or made a sale, you could move on to the next. The faster you complete your work, the more money you can potentially earn. Your income scales as your ability improves!

Hourly wages are acceptable if you’re starting out. But there will come a point where you’ll need a better compensation structure to grow your income. Either seek salaried work, or consider starting a business that pays by the job or by retainer. You may be surprised by the difference it makes for your cash flow.


Four Ways Parents Can Help Their Children Build Wealth

Four Ways Parents Can Help Their Children Build Wealth

Creating a financial legacy isn’t just for the wealthy.

Parents, you may be better positioned to build a legacy for your children than you think. That’s because if you leverage basic financial concepts and strategies, you might be surprised by how attainable a sizable inheritance is! Here are four ways you can help your child build wealth.

Save a nest egg for your child’s retirement. Do you have a million dollars lying around to give to your child? Probably not. But you have something that’s even more valuable—time.

What if the moment your child was born you put $13,000 in an account earning 6.5% interest? By the time they turn 67—even if you don’t add anything else to that account—it would be worth $1,000,000. That cash could make all the difference for your child’s financial future. To make the most of this strategy, meet with a licensed and qualified financial professional before your child is born. They can help you make the preparations to put it into place.

Start saving for college. A college education is a huge expense, and it’s one that will only increase in cost. So what should you do to prepare for this future burden?

Start saving as soon as your child is born! The same principle applies—the sooner you start saving, the greater your potential for growth. Once again, collaborate with a financial professional before your child is born to maximize this strategy.

Adjust your emergency fund. Nothing can derail well-laid financial plans quite like an unforeseen emergency. And nobody seems to attract unforeseen emergencies quite like kids!

That’s why it’s important to create an emergency fund to cover 3-6 months of income. It’s a time-proven line of defense that can protect you from dipping into your savings or going into debt to cover home repairs or midnight ER visits!

Create a will. Finally, it’s important to consider estate planning. Why? Because it ensures that your wealth and assets are passed down to your children. It’s a final and meaningful way to provide for your family, even if you’re not with them physically. Proper planning can also help shield them from the complexity of estate taxes and the burden of the probate system.

Leaving a financial legacy is far more doable than you may have imagined, and the time to start preparing is NOW. Collaborate with a licensed and qualified financial professional as soon as possible. They’ll point you towards practical steps you can take to start building wealth for your children today.


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