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Common Financial Mistakes and How to Avoid Them

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Common Financial Mistakes and How to Avoid Them

Common Financial Mistakes and How to Avoid Them

Finances are a challenge.

Whether you’re in your 20’s and paying off student loans or in your 40’s and trying to save for retirement, financial decisions can be complicated.

The good news? There are steps you can take to avoid mistakes and help your peace of mind when it comes to money management. Here are some of the most common financial blunders people make, and tips on how to avoid them.

Caring too much about what others think. This may be the tough love you need to hear. No one judges what you drive. Or the watch on your wrist. Or the size of your home. And the one-in-a-million person who does? They’re probably someone with WAY bigger problems than your 2006 economy car that still gets great gas mileage.

But that fear is powerful for a reason. It’s been carefully nurtured by TV commercials and Instagram accounts with a singular goal—to make you buy things you don’t really need.

Know this—you’ll gain far more respect by attending to your own financial situation than by desperately trying to keep up appearances.

Not asking for help when you need it. Let’s face it—mastering your finances is symbolic of becoming an adult. You’re supposed to know how to run a budget, save for retirement, and somehow have enough left over for a nice summer vacation. There’s tremendous internal pressure to act like you know what you’re doing.

But were you ever taught how money works? Did any teacher, professor, or mentor sit you down and explain the Rule of 72, the Power of Compound Interest, or the Time Value of Money? If you’re like most, the answer is no. It’s a cruel double-bind—to feel good about yourself, you must master skills no one has ever taught you.

This keeps you from asking for help. You get caught in shame, denial, and confusion. It’s hard to admit that you don’t know something that seems so basic, so essential.

But rest assured—you’re not the only one. And the right mentor or financial professional will listen to your story without judgment and seek to help you.

Procrastination. There are few things more daunting than staring at a pile of bills, an empty bank account, or an intimidating stack of paperwork. You know what you have to do. But it doesn’t happen because you’re so overwhelmed by the task ahead. And it’s especially daunting if you’ve never been taught how money works—you don’t even know where to start!

But nothing causes financial pain quite like procrastination. That’s because it causes exponential damage. Your bills pile up. Your interest rates rise. Your savings fall drastically behind, and you must save far more to catch up.

The antidote? Break tasks down into smaller, manageable steps. Maybe that means signing up for an online budget app or working with a financial professional. It might mean automating $15 per month into an emergency fund, or cooking one dinner at home each week.

It doesn’t matter how small the task is, as long as it helps put money back in your pocket and stops the scourge of procrastination.

In conclusion, making financial mistakes is something that can happen to anyone. By knowing some of the most common financial mistakes people make and what you can do to avoid them, you’ll probably have more peace of mind when it comes to money management.


Toxic Financial Habits

Toxic Financial Habits

As well-intentioned as we might be, we sometimes get in our own way when it comes to improving our financial health.

Much like physical health, financial health can be affected by binging, carelessness, or simply not knowing what can cause harm. But there’s a light at the end of the tunnel – as with physical health, it’s possible to reverse the downward trend if you can break your harmful habits.

Not budgeting A household without a budget is like a ship without a rudder, drifting aimlessly and – sooner or later – it might sink or run aground in shallow waters. Small expenses and indulgences can add up to big money over the course of a month or a year.

In nearly every household, it might be possible to find some extra money just by cutting back on non-essential spending. A budget is your way of telling yourself that you may be able to have nice things if you’re disciplined about your finances.

Frequent use of credit cards. Credit cards always seem to get picked on when discussing personal finances, and often, they deserve the flack they get. Not having a budget can be a common reason for using credit, contributing to an average credit card debt of $6,913 for balance-carrying households.¹ At an average interest rate of over 16%, credit card debt is usually the highest interest expense in a household, several times higher than auto loans, home loans, and student loans.²

The good news is that with a little discipline, you can start to pay down your credit card debt and help reduce your interest expense.

Mum’s the word. No matter how much income you have, money can be a stressful topic in families. This can lead to one of two potentially harmful habits.

First, talking about the family finances is often simply avoided. Conversations about kids and work and what movie you want to watch happen, but conversations about money can get swept under the rug.

Are you a “saver” and your partner a “spender”? Is it the opposite? Maybe you’re both spenders or both savers. Talking (and listening) about yourself and your significant other’s tendencies can be insightful and help avoid conflicts about your finances.

If you’re like most households, having an occasional chat about the budget may help keep your family on track with your goals – or help you identify new goals – or maybe set some goals if you don’t have any.

Second, financial matters can be confusing – which may cause stress – especially once you get past the basics. This may tempt you to ignore the subject or to think “I’ll get around to it one day”.

But getting a budget and a financial strategy in place sooner rather than later may actually help you reduce stress. Think of it as “That’s one thing off my mind now!”

Taking the time to understand your money situation and getting a budget in place is the first step to put your financial house in order. As you learn more and apply changes – even small ones – you might see your efforts start to make a difference!


¹ “2020 American Household Credit Card Debt Study,” Erin El Issa, Nerdwallet, Jan 12, 2021 https://www.nerdwallet.com/blog/average-credit-card-debt-household/

² “2020 American Household Credit Card Debt Study,” Erin El Issa


How NOT To Spend Your Next Raise

How NOT To Spend Your Next Raise

You walk out of the office like a brand new person.

That’s because you’ve done it—you’re going to be earning a lot more money with that raise. The first thing that pops in your head? All the fancy new things you can afford.

Dates. Your apartment. Vacation. They’re all going to be better now that you’ve got that extra money coming in.

And to be fair, all of those things CAN get substantially fancier after your income increases.

But one thing may not change—you still might end up living paycheck to paycheck.

Why? Because your lifestyle became more extravagant as your income increased. Instead of using the boost in cash flow to build wealth, it all went to new toys.

This phenomenon is called “lifestyle inflation”. It’s why you might know people who earn plenty of money and have nice houses, but still seem to struggle with their finances. The greater the income, the higher the stress. As Biggie put it, “Mo’ Money, Mo’ Problems.”

The takeaway? The next time you get a raise, do nothing. Act like nothing has changed. Go celebrate at your favorite restaurant. Keep saving for your new treat. But you’ll thank yourself if you devote the lion’s share of your new income to either reducing debt or building wealth.

Rest assured, there will be plenty of time to enjoy the fruits of your labor in the future. But for now, keep your eyes on the most important prize—building wealth for you and your family’s future.


Going the Distance

Going the Distance

Without careful planning, your money will never go the distance for your retirement.

Well, unless you win the powerball or stumble upon buried treasure.

The simple fact is that retirement can last a long, long time and often be expensive. According to the Federal Reserve, the average American can expect a retirement of almost 20 years, requiring $1.2 million.¹

How long would it take you to save $1.2 million? Even if you could stash away your entire paycheck, it would likely take over a decade. Factor in the daily costs of living, and decades may become centuries.

Unless, of course, you leverage two simple strategies…

Strategy One: Maximize the power of compound interest.

Strategy Two: Start saving today.

These are time-proven strategies that anyone can leverage. And they can mean the difference between your savings running out of steam or lasting as long as you do.

Let’s start with strategy one: Maximize the power of compound interest…

Compound interest can supercharge your savings. Instead of taking centuries, you have the potential to reach your retirement goals just in time!

That’s because compounding unleashes a virtuous cycle. The money you save grows on its own over time.

But here’s where the magic happens—the more money you have compounding, the greater its growth potential becomes. Even a fraction of your paycheck can eventually compound into the wealth you may need for retirement.

Think of it like changing gears on a bike. Savings alone is first gear—good enough for going down hills or casual jaunts through the neighborhood.

But for reaching greater goals, you need more power. Compound interest is those extra gears—it’s an advantage that can radically improve your performance.

That leads straight into the next strategy: Start saving today.

The longer your money compounds, the greater potential it has for growth. To prove this, let’s crunch the numbers…

Let’s say you can save $500 per month. You find an account that compounds 10% annually.

After 20 years, you’ll have saved $120,000 and grown an additional $223,650 for a grand total of $343,650. Not bad!

But what if you wait another 11 years? Your money will more than triple—you’ll have $1,091,660!

The takeaway? A few years could be the difference between reaching your retirement goals and coming up short. The sooner you start, the greater potential you have to get where you want to go.

No more sporadic saving when you feel the panic. No more burying your head in the sand because you don’t know what the future holds. No more fear that your finances won’t cross the finish line.

These simple strategies can help you go the distance and retire with confidence. Contact me if you want to learn more about building wealth!


¹ “Retirement costs: Estimating what it costs to retire comfortably in every state,” Samuel Stebbins, USA Today, Feb 11, 2021, https://www.usatoday.com/story/money/2021/02/11/retirement-costs-comfortable-in-every-state-life-expectancy/115432956/


The Laid-Back Way to Build Wealth

The Laid-Back Way to Build Wealth

Automating your finances can take the pain out of wealth-building behavior.

You know how it goes. The thought flashes through your mind—”I need to start saving money!”

And then… well, that’s it. You read a few articles on saving and try to spend less, but after a week or two your mind has moved on.

Why? Because all forms of positive change are energy intensive, at least at first. And your brain, smart as it is, likes conserving energy.

So to jump-start saving, you need to take several one time actions that are borderline thoughtless.

Enter automation. It’s a small step with massive return potential.

It’s simple…

  • Log in to your online banking account
  • Set up a deposit
  • Choose to make the deposit recurring instead of one time

Like that, you’ve set the stage for dozens of wealth-building actions well into the future.

And what did it take? A few taps over a few minutes.

So what are you waiting for? Automate your savings right now. I’ll wait! Even if it’s $5 per month, it’s a step in the right direction—to build wealth for your future!


Transforming Your Relationship with Wealth

Transforming Your Relationship with Wealth

Wealth… how does seeing and hearing that word make you feel?

Excited? Afraid? Disappointed? Nothing?

Those feelings can reveal deeper truths about your relationship with money. And that relationship can influence your financial future.

That’s because, despite what people say, money is often wrapped up in feelings about…

  • Success
  • Status
  • Stability
  • Self-worth

That’s why people’s behavior with money is often not well-reasoned. Instead of making measured decisions based on the numbers, people find themselves on autopilot. In other words, they react instead of respond.

Let’s look at some examples…

Let’s say your relationship with money is primarily fear based. Maybe you saw your parents struggle with their finances, and you constantly worry about reliving their experience.

The autopilot response? Frugality and risk-aversion, even if you earn a comfortable wage.

There’s nothing wrong with either of those qualities in moderation. But taken too far, they may seriously damage your personal relationships and prevent you from taking advantage of financial opportunities.

Plus, the constant stress and fear of losing everything might impact your mental and physical health if not properly managed.

There’s also the opposite extreme. What if you use wealth to establish your social status?

You’ll be far more likely to buy things you don’t need to show off to your peers. You may even begin compulsively shopping to cope with stress.

In other words, you may be using money in unhealthy and damaging ways. And the stress and guilt that come from such behavior can seriously harm relationships and your ability to accomplish your goals.

So what’s the solution? What should your feelings toward wealth be?

The starting point must be that money is primarily a tool. It doesn’t define you. It isn’t evil. It’s simply a tool that empowers you to pursue things that you love.

Simply put, money isn’t an end unto itself. It’s a means to an end.

The question is, then what do you love? What do you want to do and see and pursue? And what role will money play in achieving those goals?

Once you reorder your relationship with wealth along those lines, a whole world of possibility may open up like…

  • Building wealth without guilt
  • Freedom from compulsive and unwise spending habits
  • Leaving your family a financial legacy

But it all starts with understanding your current feelings towards money, and then deciding on what you want your future to look like.

If you need someone to process those feelings with, contact me! I’m here to offer you guidance and support on your journey towards financial stability.


Are You Ready For Entrepreneurship?

Are You Ready For Entrepreneurship?

Entrepreneurship can be a huge risk.

There’s no way to guarantee that it’ll pay off because there are so many unknowns that go into starting a business. But one thing is for sure: If you’re the adventurous type and aren’t afraid to give it your all, you won’t be able to resist the urge to try!

So if you’re thinking about entrepreneurship, here are some factors to consider…

Do you have enough experience in your field?

It’s a fact—entrepreneurs with at least three years of experience in their industry are 85% more likely to succeed.¹ If you haven’t met that threshold, you might not be ready for entrepreneurship just yet! Are you equipped to handle the stress?

Entrepreneurship can be intense. You’re going to be the one who has to problem solve payroll, bookkeeping, marketing, sales, customer service…the list goes on and on.

If you aren’t ready for this kind of pressure, entrepreneurship might not be for you. It may be better to begin developing stress coping strategies now that could serve you well if you pursue entrepreneurship in the future.

Have you developed a professional and personal support network?

Starting your own business is tough. Having a support network can make it easier. Without a positive, supportive circle (in person and online), you run the risk of…

  • Facing both relational and business stress
  • Constant undermining by friends and family
  • Overwhelm, isolation, and burnout

People you know who have already started businesses are great contacts for advice. And if they’re extremely successful, they may even be willing to mentor you as well.

It’s also critical to surround yourself with inspired individuals who can support you in your moments of self-doubt or when you’ve had a failure. These are the people that can help you keep going when things get tough!

Are your personal finances in order?

If you’re paying off massive amounts of debt, have no savings, and are living paycheck-to-paycheck (or worse…borrowing from friends or family), entrepreneurship would likely stress your finances even more. How would you pay your rent or put food on the table if your business underperformed? That’s why it’s best to discover how money works before—not after—you start your business.

This article isn’t meant to discourage you from going out on your own and forging your own business path—entrepreneurship is an incredible opportunity to chase your dreams and build wealth! Rather, it’s supposed to help you succeed. The sooner you start addressing the factors in this article, the sooner you can start building the business you’ve always wanted!


¹ “The Average Age Of A Successful Startup Founder Is 45,” Entrepreneur Middle East, George Hojeige, Feb 5, 2020, https://www.entrepreneur.com/article/345884


4 fundamental home buying guidelines

4 fundamental home buying guidelines

Over the course of a 30-year mortgage term, a humble home may save you thousands of dollars as opposed to a more opulent one.

Even if you abide in a smaller house than you might have envisioned as a kid, it could still provide wonderful memories while offering a haven for your family.

Home ownership can be a desirable goal, but it may become a burden, however, if the home makes you “house poor”. Imagine if every spare penny had to go toward your mortgage or upkeep of your home with nothing left over. That’s the definition of things owning you instead of you owning things. Thankfully, there’s a different way.

If you’re in the market for a new home, there are four areas to consider before you start your serious search.

Save first. You might discover there are lots of ways you could buy a house with almost no money down. However, resist the temptation of low-down-payment loans. In what could be a still-volatile housing market, you would not want to run the risk of finding yourself in a negative equity position, which means you would owe more than your house is worth. You also may pay more for Private Mortgage Insurance, which is required for home loans with less than 20% down. Before you make your move, try to save up for the 20% down payment as well as any additional amounts to help cover closing costs. You’ll also want to have an emergency fund stashed away before you buy.

Think smaller. If you don’t need a “big” house, consider buying a smaller home. Everything in smaller homes may be less expensive to replace or maintain because there’s simply less square footage involved. (The purchase price could be lower as well.)

Keep your budget under 25%. The loan officer for your mortgage might say “yes” to an amount that would cause your monthly payments to be more than 25% of your take-home pay, but that doesn’t mean those payments will fit your budget. Leaving yourself some extra margin may help you navigate life’s surprises and may give you the freedom to save more, provide more for your kids’ college, or even plan that trip you’ve always wanted to take. Bear in mind that mortgage payments may include other fees, which may increase your final monthly payment amount significantly. A 30-year mortgage may provide flexibility

When you’re focused on how much you’re borrowing, a 15-year mortgage that pays down the debt faster may be tempting. Consider a 30-year loan, though. The potential flexibility of not being obligated to a possible higher monthly payment with a 15-year loan may come in handy when those unexpected emergencies happen.

All in all, it’s worth considering your long-term outlook before you even begin your new home search.



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!


Bad Financial Habits and How to Overcome Them

Bad Financial Habits and How to Overcome Them

Read on if you ever find yourself struggling to stay afloat financially.

Do you ever feel like no matter how much money you make, it never seems like enough? You’re not alone. A recent survey found that more than half of middle-income families didn’t have three months of expenses saved.¹ Debt and spending can be out of control for many reasons—the economy, our upbringing, or even because we’re hardwired to want more. This article explores three bad habits that may be hurting your financial situation. You might be surprised by what they are!

Treating credit cards like free money. When you’re tempted to buy something and don’t have the cash, it’s easy to just use credit. But instant gratification can have serious consequences. Little by little, you may find yourself racking up more and more debt. Paying your monthly credit card bill can start requiring all of your cash flow… and maybe more. Yikes.

The solution? Limit your credit card usage as much as possible. Make a habit of only using your credit card for certain low-dollar items, like gas. If you can’t buy your impulse purchase in cash, go home!

Trying to buy happiness. It’s tempting to think that you’re going to be happy if you buy one thing or another. But what happens when the newness wears off? Suddenly, you have a closet full of clothes and shoes that really aren’t making you any happier! The same is true of houses, cars, gadgets, anything you can think of. Buying things to keep up appearances or just because you think they’ll make you fulfilled is a recipe for overspending on things that, ultimately, don’t matter.

The key is to find happiness beyond your material possessions. That’s no small task, and there’s no set road map for it. But it’s absolutely critical to find a source of meaning that isn’t tied to stuff and things. You could be happier—and more financially stable—for it.

Ignoring your financial situation. Let’s face it—finances can be scary! Overwhelming debt, paying for college, and feeling out of your depth are uncomfortable emotions. And ignoring and denying uncomfortable feelings is often a first line of defense.

But it’s a dangerous game. Ignoring what the numbers tell you can lead you deeper and deeper into financial instability. You could be setting up a much harder path for yourself in the future than if you tackled your financial situation now.

Tackling your financial fears isn’t always easy. It might require serious soul searching. Just know these three things…

Acknowledging the problem is the first step. Once you can admit that your finances need help, you’re ready to start making positive changes.

Seeking help is always wise. Whether it’s a friend, spouse, qualified counselor, or financial professional, enlisting help can give you the courage you need to face your fears.

You can do this! It might not feel like it, but you have what it takes to confront this challenge… and win! Don’t lose hope, and start moving forward.

Managing your money wisely requires more than knowing different techniques and strategies. It takes maturity. The more you invest in making improvements to your life overall, the better emotionally equipped you’ll be to navigate the world of personal finances.

¹ “A year after COVID, personal finances are not so grim for millions of Americans,” Jessica Menton, USA TODAY, Apr 9, 2021, https://www.usatoday.com/in-depth/money/2021/04/09/irs-stimulus-check-2021-third-covid-payment-unemployment-benefits/7015277002/


Is Your Budget Too Ambitious?

Is Your Budget Too Ambitious?

Budgeting is a popular topic among people of all ages, and for good reason.

It can help you save money, stay on top of your finances and even reach financial goals. But how do you know if your budget will work for you? To help determine that, you’ll need to consider two things: if category groupings make sense for your family, and whether the amounts allotted for those categories are reasonable.

For instance, is your entertainment category too inclusive and/or is the amount too high? Does it include money to cover gifts for friends’ birthdays or other events, or just what’s needed for your own entertainment, like streaming services or concerts? Having categories that are too inclusive or vague may tempt you to overspend on certain items.

And there’s another danger—maybe the amount assigned to your entertainment category is too low and you’ve budgeted all the fun out of your life! If your budget is too strict, you may not feel like you can enjoy going out to eat or buying something special for the kids once in a while. You may feel like you’re always saying “no” to your friends and family.

But if you have too many “nitpicky” categories, you may feel overwhelmed and frustrated trying to keep up with all of them each month.

It’s important that your budget is realistic and works for you and your family’s unique situation. If it doesn’t, you may find yourself getting discouraged and giving up!

So when you’re creating your budget, keep in mind there are other alternatives to spending a lot of money. For entertainment for example, explore creative and cheap ways to have fun with your family. Organize a park day, go on a hike, or visit a free museum.

It’s also important to be flexible. If you’re going out with friends, don’t feel like you have to buy the cheapest item on the menu! And when someone suggests doing something that isn’t on budget but sounds fun, don’t say no right off the bat—see if you can work within your limitations or cut back somewhere else.

In conclusion, definitely budget! Just don’t make your budget a chore or painful to stick with.


Wise Financial Moves For Retirees

Wise Financial Moves For Retirees

Retiring can be the most exciting time in a person’s life.

You get to relax and do whatever you want, whenever you want, with whomever you want. But it’s important not to forget about your finances AFTER retirement; here are wise financial moves that retirees should consider once they decide to quit working for good.

Get your will in order. You’ll be ahead of the game if you do—68% of Americans have no estate plan in place!¹ The simple truth is that preparing a will can help ensure that your money goes where you want it to go and save your family a financial headache. If you’re retired and haven’t created a will, do it today!

Plan for long-term care expenses. Why? Because there’s a strong chance you’ll need it—60% of people will need some form of LTC in their lives.² And it can be costly, possibly running into the tens of thousands of dollars. If you’re about to retire or have already retired, consult with a licensed and qualified financial professional about your options for this critical line of financial defense.

Pay off your mortgage! And, if you’ve played your cards correctly, you should be close to paying off your mortgage by the time you retire. Eliminating your home payments may free up a considerable amount of cash for you to spend on your other bills and your retirement lifestyle.

Consider downsizing your home to a smaller property or RV. That is of course, unless you have a huge family you regularly plan on entertaining! But for many, retirement is a perfect opportunity to move into a smaller, easier to manage home.

And if you’re the adventurous type, why not buy an RV? It’s a great way to travel and explore the country now that you’re moving into a new phase of life.

If you’re retiring, it doesn’t mean there aren’t a few key money moves left to be made. Consider these suggestions to be the cherry on top of your years of diligent work and savvy saving!

¹ “68% of Americans do not have a will,” Reid Kress Weisbord, David Horton, The Conversation, May 19, 2020, https://theconversation.com/68-of-americans-do-not-have-a-will-137686

² “What is Long-Term Care (LTC) and Who Needs it?,” LongTermCare.gov, Jan 4, 2021, https://acl.gov/ltc


5 Common Financial Mistakes That Parents Make

5 Common Financial Mistakes That Parents Make

It happens every day. Parents make financial blunders that can impact their children’s future.

These mistakes are often avoidable. But a parent who has the best intentions and lacks the knowledge needed to properly manage their finances may not recognize these errors until the damage has been done.

Here are 5 common financial mistakes every parent should be aware of!

1. Not saving for their children’s education. You know the numbers—it seems higher education is growing more and more expensive every year. So the time to start financially preparing for your child’s university years is today. Meet with a financial professional to discuss how you can pay for college without resorting to student loans!

2. Not saving for retirement. Skimping on your long-term savings might be tempting, especially if your budget feels stretched to the breaking point by the basic expenses of providing for your family!

But saving can support your long-term financial position. It gives you a shot to pay for your own retirement, it can reduce the impact of long-term care on your family, and it might even create a financial legacy to leave to your children.

3. Spending too much on credit cards. It’s not just parents. Many Americans overuse their credit cards. But it can be a little too easy to do for parents on tight budgets. Don’t have enough in cash to buy your child a new toy? Just put it on the card!

Unfortunately, credit cards can become a significant drain on your cash flow. And the less available cash you have on hand, the less you’ll be able to save for your other financial goals!

4. Buying a house they can’t afford. Make no mistake—your family needs space. You need space! Just make sure that the house you buy is actually within your budget. Mortgage payments can chip away at your cash flow and reduce your wealth building and education funding power. And don’t forget to factor in the cost of house maintenance before you move in.

5. Buying things they don’t need to impress other parents. You love your kids and want the best for them. That’s what makes you a great parent!

But be mindful of why you buy things for your family. Are you providing for your kids? Or are you simply trying to impress your friends and neighbors? Take care that you put the wellbeing of your family first, not the opinions of others.

If you need help navigating your financial responsibilities, contact me! We can discuss strategies that might give your family the upper hand they need to thrive.


6 Advantages of The Cash Envelopes System

6 Advantages of The Cash Envelopes System

The power of the cash envelope system is in its simplicity.

This is how it works. At the beginning of every month, you withdraw in cash all the money you plan on spending. Then, you divvy up your money into envelopes that represent different budget categories. For example, if you’ve budgeted $100 for eating at restaurants for the month, place $100 cash into an envelope labeled “restaurants.” That’s what you’ve got to dip into when you go out to eat. You don’t have to think about it. It’s that simple!

Not convinced? Here are 6 advantages of adopting the cash envelope system!

1. It’s a great way to save money. The ultimate goal of using cash envelopes is to save money. It can be an effective system because it brings your budget out into the open and makes it tangible. It can help reduce the likelihood that you’ll break your system and overspend.

2. The cash envelope system is flexible. Regardless of your age or financial situation, the cash envelope system can help you manage your spending. Barring categories for investing or emergency savings, it empowers you to accurately track and visualize your daily expenses.

3. You can easily see where you’re overspending. Every envelope that’s empty before the end of the month is a category where you’re potentially overspending. You now know exactly where you need to cut back.

4. It helps keep your budget organized. Nothing takes the wind out of your financial strategy quite like an overly complex budget. The cash envelope system takes the guesswork out of your budgeting and let’s you know exactly how much you can spend on what categories, and how much you have left over.

5. Cash envelopes help reduce the risk of impulse purchases. Why? Because they require that all transactions are planned ahead of time. That means fewer unbudgeted and out of the blue treats, toys, and trips!

6. It’s a great way to teach your kids about money management. That’s right, the envelope system is simple enough to teach to your kids. Consider setting up envelopes to help them budget their allowance. You can even make it a fun family project and help them decorate their envelopes! Start with simple categories like saving, spending, and giving, and add more categories as time goes on.

If you need a budget that’s simple and can help save you money, cash envelopes may be for you! Identify your top spending categories, buy a few envelopes and label them, and then start filling them with cash. Let me know what results you see!


3 Truths About Credit Cards

3 Truths About Credit Cards

Credit cards can be dangerous if you don’t understand them.

That’s why it’s crucial to learn how credit cards work before deciding whether or not to get one. Here are three important truths that everyone should know about credit cards.

Credit cards are NOT free money. You read that correctly. Every time you make a purchase with your credit card, you’re actually borrowing money. Lenders want you to pay that money back—and then some. Using your card for purchases outside of your budget or to buy expensive toys beyond your means can result in a stunning level of debt. But that’s not all…

Credit card debt can take years to eliminate. Credit cards are notorious for high interest rates, averaging 16.43% in the third quarter of 2020.¹ That makes paying down credit card debt especially difficult. In fact, it might take years to pay off some cards if you made the minimum payments alone. Limiting your usage and paying your bill on time every month is an absolute must if you’re going to use a credit card.

Credit cards can be a great way to build credit. But credit cards aren’t all bad! Consistently paying your bill on time and limiting your credit usage can indicate to future lenders that you ll be trustworthy with a loan. They may offer you more favorable interest rates and terms if you have a great credit score!

Credit card usage has the potential to make or break your financial wellness. Recognizing the risks—and benefits—that easily accessible credit can bring should inspire you to navigate your finances with care and intention.


¹ “What Is a Good APR for a Credit Card?,” Melissa Lambarena, Nerdwallet, Mar 4, 2021, https://www.nerdwallet.com/article/credit-cards/what-is-a-good-apr-for-a-credit-card


A Financial Habit That Can Help Your Relationship

A Financial Habit That Can Help Your Relationship

Financial honesty with your partner can help improve the quality of your relationship.

Why? Because trust and communication form the bedrock of healthy relationships. Keeping secrets of any type and size can shatter faith in your partner. It’s especially true of financial decisions—finding out your spouse has been spending money “behind your back” can cause a rift that may be difficult to repair.

To help avoid trouble and misunderstandings, make it a practice to regularly discuss the family finances with your partner. Set a weekly time to grab coffee and review your budget, your goals, and any changes you need to make moving forward.

It may feel awkward at first. You may learn there are surprise expenses that your partner hasn’t shared until now. That’s perfectly normal! Be sure to create an atmosphere of trust and openness that makes your partner feel comfortable sharing. If they reveal a spending secret, don’t lose your temper. Thank them for their honesty and then work towards a solution for the future!

Once you’ve learned how to navigate open and honest financial conversations, apply your new conversation skills to other topics in your relationship. You might just find that your relationship drastically improves!


Odds Are You're Going to Need This

Odds Are You're Going to Need This

If there’s one thing that could pose a serious threat to your retirement fund – and hard-earned independence during your Golden Years – it’s the need for long-term care.

7 out of 10 Americans over the age of 65 will need long term care at some point.¹ And the US National Median cost of a private room in a nursing home was $8,821 in 2020.² That’s $92,376 a year!

When you factor in the cost of doctor visits, medical procedures, prescriptions, etc., that number is going to keep climbing.

If your need for long-term care comes after you retire, that financial burden could fall onto your loved ones.

The right life insurance coverage has the potential to keep you living well and independently. Long-term care as a part of a tailored life insurance strategy is a great way to protect your retirement funds – and keep your loved ones’ finances protected, too.

I can help. Contact me today, and together we can explore your options for long-term care – and do what we can to help keep those Golden Years golden.

¹ “Life Insurance: Long-Term Care,” Nationwide, https://www.nationwide.com/personal/insurance/life/long-term-care/

² “Cost of Care Survey,” Genworth, 2020, https://www.genworth.com/aging-and-you/finances/cost-of-care.html


Set Yourself Up For (Financial) Success In The New Year

Set Yourself Up For (Financial) Success In The New Year

A new year is a massive opportunity.

There’s something liberating about closing one chapter of your life and beginning a new one. You realize that this year doesn’t have to be like last year, and that there are countless possibilities for growth.

Now is the perfect time to write a new financial chapter of your life.

In the mindset of new beginnings, the first thing is to forgive yourself for the mistakes of the past and start fresh. Now is your chance to set yourself up for financial success this year and potentially for years to come. Here are three simple steps you can take starting January 1st that might make this new chapter of your life the best one yet!

Automate wise money decisions ASAP. What if there were a way to go to the gym once that somehow made you steadily stronger throughout the year? One workout would be all you need to achieve your lifting goals!

That’s exactly what automating savings and bill payments does for your finances.

All you have to do is determine how much you want to save and where, set up automatic deposits, and watch your savings grow. It’s like making a year’s worth of wise financial decisions in one fell swoop!

Give your debt the cold shoulder. Debt doesn’t have to dictate your story in the new year. You can reclaim your cash flow from monthly payments and devote it to building wealth. Resolve to reduce how much you owe over the next 12 months, and then implement one of these two powerful debt strategies…

Arrange your debts on a sheet of paper, starting with the highest interest rate and working down. Direct as much financial firepower as you can at that first debt. Once you’ve cleared it, use the extra resources you’ve freed up to crush the next one even faster. This strategy is called the Debt Avalanche.

-Or-

Arrange your debts on a sheet paper, starting with the smallest debt and working up to the largest. Eliminate the smallest debt first and then work up to the largest debt. This is called the Debt Snowball. It can be a slower strategy over the long-haul, but it can sometimes provide more motivation to keep going because you’re knocking out smaller goals faster.

Start a side hustle. You might not have thought much about this before, but you may have what it takes to create a successful side hustle. Just take a moment and think about your hobbies and skills. Love playing guitar? Start teaching lessons, or see if you can start gigging at weddings or events. Are you an embroidery master? Start selling your creations online. Your potential to transform your existing talents into income streams is only limited by your imagination!

Start this new year strong. Automate a year’s worth of wise financial decisions ASAP, and then evaluate what your next steps should be. You may even want to meet with a qualified and licensed financial professional to help you uncover strategies and techniques that can further reduce your debt and increase your cash flow. Whatever you choose, you’ll have set yourself up for a year full of potential for financial success!


Why Financial Goals Matter

Why Financial Goals Matter

Setting goals has the power to change your life. Research has shown that people who write down their goals are 33% more successful in accomplishing them than those who don’t.¹ That data seems to verify what we instinctively know. Is there anything worse than working on a project that has no clear objective or outcome defined?

But here’s the million dollar question: Have you written down your financial goals?

It’s one of those simple things that we tell ourselves we’re going to do or that we’ll get around to later, but we tend to leave undone. And that results in our earning, saving, and spending money aimlessly, without purpose. No wonder the majority of 40-somethings and almost a third of people in their 60s are woefully short of having enough for their retirements!²

In case you still need convincing, here are three reasons why you should write down your financial goals the second you’re done reading this article!

Financial goals bring clarity. Imagine trying to build a house without a blueprint. Where would you start? Would you know what supplies you’d need? What color paint you’d want? Would you end up with a basement? Who knows?

Your finances are the same way. Until you have a clear financial goal for your lifestyle and retirement, you’ll never truly know what to do with your money and how it can help you. Once you’re locked in on a vision of your future, you can start exploring the actions necessary to make your dreams become realities.

Financial goals create intensity. Discovering the steps you need to take to achieve your goals cuts away distractions. You’re no longer as susceptible to distractions and temptations because you’re laser-focused on creating an outcome. You can focus all of your mental and financial energy on bringing your vision to life. Clarity leads to focus. Focus creates intensity. Intensity accomplishes goals.

Financial goals are rewarding. There are few better feelings than the one that comes after a day of hard, productive work. That’s because your brain knows that you accomplished what you set out to do.

Your finances are no different.

Setting goals for your money gives you the opportunity to feel that deep sense of reward and accomplishment. It provides your life with a source of gratification that isn’t shallow and instantaneous.

So what are you waiting for? Grab a piece of paper or pull up your note taking app and write down a few financial goals! Be realistic and hyper specific. Let’s talk about what comes to your mind and what it would take to bring that vision of your life into reality!

¹ “Goal-Setting Is Linked to Higher Achievement,” Marilyn Price-Mitchell Ph.D., Psychology Today, Mar 14, 2018, https://www.psychologytoday.com/us/blog/the-moment-youth/201803/goal-setting-is-linked-higher-achievement

² “Here’s how much Americans have saved for retirement at different ages,” Kathleen Elkins, CNBC Make It, Jan 23, 2020, https://www.cnbc.com/2020/01/23/heres-how-much-americans-have-saved-for-retirement-at-different-ages.html


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