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Mediocre Money Mindsets

Mediocre Money Mindsets

Healthy money habits start with mature money mindsets.

Even though it’s not always obvious, we carry lots of assumptions and attitudes about money that might not be grounded in reality. How we perceive wealth and finances can impact how we make decisions, prioritize, and handle the money that we have. Here are a few common money mindsets that might be holding you back from reaching your full potential!

I need tons of money to start saving

It’s simple, right? The rich are swimming in cash, so they’re able to save. They get to build businesses and live out their dreams. The rest of us have to live paycheck to paycheck, shelling out our hard earned money on rent, groceries, and other essentials.

That couldn’t be further from the truth! Sure, you might not be able to save half your income. But you might be surprised by how much you can actually stash away if you put your mind to it. And however much you can save right now, little as it might be, is much better than putting away nothing at all!

I need to save every penny possible

On the other side of the coin (get it?) is the notion that you have to save every last penny and dime that comes your way. There are definitely people in difficult financial situations who go to incredible lengths to make ends meet. Just ask someone who survived the Great Depression! But most of us don’t need to haggle down the price of an apple or forage around for firewood. And sometimes, the corners we cut to save a buck can come back to bite us. Set spending rules and boundaries for yourself, but make sure you’re not just eating ramen noodles and ketchup soup!

I don’t need to budget

There are definitely times when you might not feel like you need to be proactive with your finances. You don’t feel like you’re spending too much, debt collectors aren’t pounding down your door, and everything seems comfortable. Budgeting is for folks with a spending problem, right?

The fact of the matter is that everyone should have a budget. It might not feel important now, but a budget is your most powerful tool for understanding where your money goes, areas where you can cut back, and how much you can put away for the future. It gives you the knowledge you need to take control of your finances!

Breaking mediocre money mindsets can be difficult. But it’s an important step on your journey towards financial independence. Once you understand money and how it works, you’re on the path to take control of your future and make your dreams a reality.


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.


Too Much of a Good Thing

Too Much of a Good Thing

Diversification is a key strategy for anyone who’s serious about building wealth.

That’s because no single source of income or wealth is perfect. They’re all subject to ups and downs, highs and lows.

Think of it like going to the golf range and handing the caddie an armful of drivers. You’ll make powerful drives every time, but what happens when it’s time to putt? Even worse, how will you escape bunkers?

It’s a classic case of too much of a good thing. If you’re a serious player and plan to play for the long run, your golf bag needs a variety of clubs—a few different irons, wedges, and putters—to handle whatever challenges you’ll face during the game.

The same is true of building wealth.

You need…

  • Different accounts that each leverage the power of compound interest.
  • Income streams besides your main job.
  • Savings that feature at least some protection against loss.

It’s not a silver bullet. But diversification can offer a layer of protection against the ups and downs of the economy. It can also provide you with supplemental income during lean times.

So how can you start diversifying today? Here are two ideas…

Start a side hustle. This simple strategy can diversify your income sources. Regardless of what’s happening at your 9-to-5 job, you can count on your side hustle to help generate cash flow.

Meet with a financial professional. A licensed and qualified financial professional can help you implement diversification in your savings. This could make a huge difference in protecting your wealth from the ups and downs of a changing economy.

Contact me if you want to discover what this strategy would look like for you. We can review what you’ve saved thus far and check your opportunities for diversification.


Simple Side Gigs

Simple Side Gigs

Side gigs should be simple.

They’re not usually meant to consume hours of your time each week or distract you from your main source of income. Fortunately, right now we’re in a side gig golden age. There are dozens of opportunities just a tap or click away. Here are a few simple side hustle ideas that might make you a few extra bucks without sacrificing all of your free time!

Freelance writing

Working as a freelance writer can be a simple, efficient way of turning your prose prowess into cold, hard cash. Powerful and persuasive writing is of top importance in the information age, and there are plenty of people and companies that are willing to pay writers for quality content. Look for opportunities to write about your favorite hobbies and interests. It’s an easy way to combine your personal passions with making a little extra each month.

Private tutoring or lessons

Do you have a hidden talent? Maybe you’re a secret chef, a low profile ping pong wizard, or a late night guitar hero. You might be surprised by how much people will pay for your insights and guidance—certain video game coaches can make between $10 to $140 per hour, depending on their skill level!(1) The beauty of this gig is that it doesn’t take tons of leg work to get started. You already have the skills and your client base can be from your local community. Just plot out a curriculum, set a price for your services, and get the word out!

Delivery driver

Rideshares have become icons of the side-hustle economy. But ferrying strangers to and from bars on the weekends isn’t the only way to make some extra cash with your car. There are plenty of startups and companies that need drivers. That might mean delivering food for a local restaurant chain or dropping off packages for a more established company. Do some sleuthing on what’s available near you and what demand looks like in your area.

The beauty of these gigs is that they’re built on skills and tools that you already have. Put in the leg work to get things started and you might just find yourself with a dependable extra income stream!


Deconstructing Wealth

Deconstructing Wealth

Wealth, simply put, is the stockpile of resources you have at your disposal.

The rarer the resource, the “wealthier” you are.

On a surface level, that definition conforms to the common stereotypes of wealth. Can we all agree that a stacked bank account is a rare and precious resource?

But dig a little deeper, and you’ll find that wealth takes many shapes and forms.

Your knack for finding the right word at the right time?

Your secret talent for creating with your hands?

Your indestructible support network that’s there for you, no matter what?

Those are all resources. Those are all rare. Those are all wealth. They just don’t have a dollar value… yet.

To be fair, you shouldn’t monetize all of your assets, especially if those assets are people. Leveraging your network for money is something that must be done with the utmost care and respect, if at all.

But the fact remains that you likely possess an abundance of resources that could be converted into increased cash flow. Your talents, your ability, and your time are all precious assets that have the potential to boost your income.

The takeaway? When you break it down, you’re wealthier than you may think. The real question is, how will you monetize the resources you’ve been given?


Why People Aren't Going Back to Work

Why People Aren't Going Back to Work

It’s official—Americans aren’t going back to work.

Even though there were 10 million job openings in June of 2021.¹

If you’ve been out and about, you’ve seen firsthand that jobs aren’t getting filled.

You may have noticed the signs at your local grocery store. Or the longer wait at your favorite restaurant. Or slower service from businesses you depend on.

They all stem from the same source. Americans aren’t rushing back to work.

But why? The COVID-19 pandemic caused mass unemployment and havoc for millions of American families. Wouldn’t they want to start earning money again, ASAP?

It’s not the unemployment benefits holding them back. Those dried up months ago, and the numbers still haven’t budged.

And again, it’s not that there aren’t jobs. There are millions of opportunities out there!

Here’s an idea—many people have woken up to the fact that most jobs suck.

Most jobs leave you completely at the mercy of your boss. If they mismanage the business, your job’s in danger. If you want a bigger bonus, your job’s in danger. If another pandemic breaks out, your job’s in danger.

They give you no control over your hours, your income, your location, or your future.

Who would want to go back to that?

Instead, Americans are looking for a better opportunity. They want control of their future, their wealth, and their hours. They want to replace the insecurity of a 9 to 5 with more reliable sources of income.

If they see an opportunity that checks those boxes, they’ll be willing to re-enter the workforce.

Americans are looking for a better path. The million dollar question is, who will provide it for them?


¹ “Many Americans aren’t going back to work, but it’s not for the reason you might expect,” Paul Brandus, MarketWatch Aug 14, 2021, https://www.marketwatch.com/story/many-americans-arent-going-back-to-work-but-its-not-for-the-reason-you-might-expect-11628772985

² “What states are ending federal unemployment benefits early? See who has cut the extra $300 a week,” Charisse Jones, USA Today, Jul 1, 2021, https://www.usatoday.com/story/money/2021/07/01/unemployment-benefits-covid-federal-aid-ending-early-many-states/7815341002/


Passive Income Requires Work

Passive Income Requires Work

“I want passive income!”, said the community of struggling entrepreneurs (and retirees).

“But what exactly is passive income?” they asked. A simple Google search revealed thousands of articles with a common theme—passive income is money you make while you sleep!

But is passive income really possible, or does it just live in the dreams of people looking for a way to make money without working?

To answer that question, let’s look at what passive income is (and isn’t). Then you can see if it will work for you!

Passive income, generally speaking, is a product or service that requires an upfront investment of time, effort, or wealth to create.

Examples include…

- Rental properties that require wealth to purchase, and are cared for by a property manager while creating rental income - Books, music, and courses that required time and creativity to create and now generate income without regular upkeep - Investing wealth in a business as a silent partner and taking a slice of their revenue

Can those income sources generate cash flow while you sleep? Of course! But notice that all of those opportunities require either work or resources that can only be acquired by work.

Does that mean you shouldn’t prioritize passive income sources? No! They can sometimes provide the financial stability you need.

Just don’t expect a passive income stream to effortlessly appear in your lap.

Remember, there is no such thing as free money. All wealth building opportunities require time, effort, and energy to reach their full potential.

If you want to learn more about creating passive income sources, contact me. We can review your talents, your situation, and your dreams to determine smart strategies for developing passive income.


Common Sources of Retirement Income

Common Sources of Retirement Income

Does retirement income sound like an oxymoron? It’s understandable—most people’s only source of income is their job.

But by definition, your job ceases to become your source of income once you retire.

Instead, you’ll need to tap into new forms of cash flow that, most likely, will need to be prepared beforehand.

Here are the most common sources of retirement income. Take note, because they could be critical to your retirement strategy.

Social Security. It’s simple—you pay into social security via your taxes, and you’re entitled to a monthly check from Uncle Sam once you retire. It’s no wonder why it’s the most commonly utilized source of retirement income.

Just know that social security alone may not afford you the retirement lifestyle you desire—the average monthly payment is only $1,543.¹ Fortunately, it’s far from your only option.

Retirement Saving Accounts. These types of accounts might be via your employer or you might have one independently. They are also popular options because they can benefit from the power of compound interest. The assumption is that when you retire, you’ll have grown enough wealth to live on for the rest of your life.

But they aren’t retirement silver bullets. They often are exposed to risk, meaning you can lose money as well as earn it. They also might be subject to different tax scenarios that aren’t necessarily favorable.

If you have a retirement savings account of any kind, meet with a licensed and qualified financial professional. They can evaluate how it fits into your overarching financial strategy.

Businesses and Real Estate. Although they are riskier and more complex, these assets can also be powerful retirement tools.

If you own a business or real estate, it’s possible that they can sustain the income generated by their revenue and rents, respectively, through retirement. Best of all, they may only require minimal upkeep on your part!

Again, starting a business and buying properties for income carry considerable risks. It’s wise to consult with a financial professional and find experienced mentorship before relying on them for retirement cash flow.

Part-time work. Like it or not, some people will have to find opportunities to sustain their lifestyle through retirement. It’s not an ideal solution, but it may be necessary, depending on your financial situation.

You may even discover that post-retirement work becomes an opportunity to pursue other hobbies, passions, or interests. Retirement can be about altering the way you live, not just having less to do.

You can’t prepare for retirement if you don’t know what to prepare for. And that means knowing and understanding your options for creating a sustainable retirement income. If unsure of how you’ll accomplish that feat, sit down with your financial professional. They can help you evaluate your position and create a realistic strategy that can truly prepare you for retirement.

This article is for informational purposes only and is not intended to promote any certain products, plans, or policies that may be available to you. Any examples used in this article are hypothetical. Before enacting a savings or retirement strategy, or purchasing a life insurance policy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.


¹ “How much Social Security will I get?” AARP, https://www.aarp.org/retirement/social-security/questions-answers/how-much-social-security-will-i-get.html


The Connection Between Health and Wealth

The Connection Between Health and Wealth

This isn’t news, but money can be a major source of stress and anxiety.

And while it’s true that money problems can cause people a lot of stress, did you know that financial instability can also lead to health problems?

Here’s an alarming statistic: Negative wealth shocks (losing 75% of your wealth or more) increase mortality risk over 20 years by 50%.¹

The impact of money stress grows more pronounced with age. A Yale study tracked older people recovering from heart attacks. They discovered that heart attack survivors with financial problems were 60% more likely to die within 6 months of leaving the hospital.²

Researchers don’t yet understand the causal relationship between finances and mortality, but here are a few educated guesses…

Losing money is stressful. And long-term stress can cause premature death.³

Losing money reduces access to medical care. Quality care slips out of financial reach. Even little things like transportation to appointments can become unaffordable.

Losing money can cause a low-quality diet. A combination of stress and living in low-income areas can make low value food far more convenient and appealing.

The takeaway? Money problems have a big potential to take a toll on your health. That’s why financial stability should be a top priority for everyone. If you’re struggling to make ends meet, don’t despair. There are steps you can take to get your finances in order. And when you do, you could be on your way to better health, too!

¹ “Financial Ruin Can Be Hazardous To Your Health,” Rob Stein, NPR, April 3, 2018, https://www.npr.org/sections/health-shots/2018/04/03/598881797/financial-ruin-can-be-hazardous-to-your-health

² “In Older Adults, Money Problems Linked to Higher Risk of Death Following Heart Attack,” Ashley P. Taylor, Yale School of Medicine, Feb 23, 2022, https://medicine.yale.edu/news-article/in-older-adults-money-problems-linked-to-higher-risk-of-death-following-heart-attack-study/

³ “Stress Can’t Actually Kill You — but How You Deal (or Don’t) Matters,” Lauren Sharkey, Healthline Apr 28, 2020, https://www.healthline.com/health/mental-health/can-stress-kill-you


Don’t Become a Victim of These Secret Money Mistakes

Don’t Become a Victim of These Secret Money Mistakes

The most dangerous money mistakes are the ones you don’t notice.

Is racking up credit card debt or taking out payday loans financially dangerous? Of course! But they’re obvious. Hard to miss. They’re like a voice yelling into a megaphone “Hey! Don’t do it!”

But what about money mistakes that aren’t so obvious? Or even worse, money mistakes disguised as money wisdom?

Those may not devastate your bank account in one swoop. But they often go unaddressed. And over time, they add up.

So here are some money mistakes you might not have noticed.

Penny pinching. Sure, it sounds like a great idea in theory. But when you’re constantly scrimping and saving, it’s tough to enjoy life. What’s the point of working so hard if you can’t enjoy a reasonable treat now and then?

Plus, penny pinching may stop you from taking calculated risks that could save your money from stagnation.

So instead of extreme thriftiness, try moderation instead. You may find yourself far more inspired to budget and save than if you commit to complete frugality.

Under or over filling your emergency fund. A lot of people make the mistake of not having an emergency fund at all. It leaves them vulnerable to unexpected expenses and financial emergencies.

But when you have too much money in your emergency fund, it might be tough to make any real progress on your long-term financial goals. A good chunk of your net worth could be sunk into an account that’s not growing.

The solution? Save up 3 to 6 months of income in an easily accessible account, but no more. Use that money to cover emergencies ONLY. If it runs low, refill it.

Once your emergency fund is fully stocked, you can devote the rest of your income to building wealth.

Leaving goals undefined. It’s tough to achieve a goal you don’t have. Do you know where you’ll be financially in 5 years? 10? What are some things you’d like to save towards? A nicer home? An awesome vacation? A comfortable retirement? Not sure?

That uncertainty makes it easy to fudge good financial habits. It’s hard to see how lapses in your overall strategy can impact your big picture because you don’t have one.

So when it comes to your money, be specific. Very specific. Write out your goals and make sure they’re measurable. That way, you can monitor your progress and ensure you’re on the right track.

Be on the lookout for these dangerous money mistakes. They may seem innocuous, but they can add up over time and stop you from reaching your financial goals. Stay vigilant and steer clear of these traps!


You're Financially Free When...

You're Financially Free When...

You’re financially free when you’re no longer afraid. Imagine what that could feel like!

You’re not afraid of emergencies. Between life insurance and your fully stocked emergency fund, you and your family are prepared for the financial ups and downs of life.

You’re not afraid of losing your job. You have enough saved for retirement already that you don’t depend on your paycheck. Besides, you may even have a side source of income (or three) to help make ends meet!

You certainly aren’t afraid to splurge on yourself. That’s right—you can spend your discretionary funds on the things you love and care about, footloose and fancy free.

You’re not afraid of your future. Why? Because you have a strategy in place, and you’re sticking to it. And you’re on track to retire with wealth instead of want.

Sure, there are metrics and benchmarks and numbers you should be concerned with. Ask a financial professional about what those would look like for you and your situation. They’re different for each person.

But the feeling is always the same—the end of fear, and a sense of peace. You’re ready to focus on the people and things that matter most.

Are you financially free? What steps have you taken to eliminate fear of emergencies, losing your job, treating yourself, and preparing for your future?


Why The Financial Industry Loves Debt

Why The Financial Industry Loves Debt

The financial industry loves debt. They love it because it’s how they make money.

And best of all (for them), they use YOUR money to make it happen.

Here’s how it works…

You deposit money at a bank. In return, they pay you interest. It’s just above nothing—the average bank account interest rate is currently 0.06%.¹

But your money doesn’t just sit in the vault. The bank takes your money and loans it out in the form of mortgages, auto loans, credit cards, etc..

And make no mistake, they charge far greater interest than they give. The average interest rate for a mortgage is 3.56%.² That’s a 5,833% increase from what they give you for banking with them! And that’s nothing compared to what they charge for credit cards and personal loans.

So it should be no surprise that financial institutions are doing everything they can to convince you to borrow more money than perhaps you can afford.

First, they’re counting on the fact that you never learned how money works. Why? Because if you know something like the Rule of 72, you realize that banks are taking advantage of you. They use your money to build their fortunes and give you almost nothing in return.

Second, they manipulate your insecurities. They show you images and advertisements of bigger houses, faster cars, better vacations. And they strongly imply that if you don’t have these, you’re falling behind. You’re a failure. And you may hear it so much that you start to believe it.

Third, they lock you in a cycle of debt. Those hefty car loan and mortgage payments dry up your cash flow, making it harder to make ends meet. And that forces you to turn to other loans like credit cards. It’s just a matter of time before you’re spending all your money servicing debt rather than saving for the future.

So if you feel stuck or burdened by your debt, show yourself some grace. Chances are you’ve been groomed into this position by an industry that sees you as a source of income, not a human.

And take heart. Countless people have stuck it to the financial industry and achieved debt freedom. It just takes a willingness to learn and the courage to change your habits.


¹ “What is the average interest rate for savings accounts?” Matthew Goldberg, Bankrate, Feb 3, 2022 https://www.bankrate.com/banking/savings/average-savings-interest-rates/#:~:text=The%20national%20average%20interest%20rate,higher%20than%20the%20national%20average.

² “Mortgage rates hit 22-month high — here’s how you can get a low rate,” Brett Holzhauer, CNBC Select, Jan 24 2022, https://www.cnbc.com/select/mortgage-rates-hit-high-how-to-lock-a-low-rate/


How to Create a Simple Budget

How to Create a Simple Budget

Budgeting is essential. But what if you don’t know where to start?

Whether you’re new to the world of budgets or you just want some help, this article will get you started on the right foot. There’s no one way that works for everyone, but these different methods can give you an idea of where to begin.

Method 1: The old fashioned way. First, write down your total monthly take home pay. Next, break down your monthly spending into categories and write down how much you spend on each. Add those numbers together. Then, subtract that number from your take home pay.

The advantage of this method is that it’s rewarding. You get to see your budget grow from the ground up. It connects you to your money like few other projects will.

It can, however, be frustrating. You’ll run into snags, miscalculations, and old fashioned human error. And that can nip your budget in the bud.

Method 2: Pre-made spreadsheets. This is an easy way to create a customized budget. There are countless templates from Google Drive, Microsoft Office, the Federal Trade Commission, Nerdwallet, and more!

Unfortunately, they still require some legwork. You may need to customize your budget to your specific needs. And they don’t sync with your bank account, meaning you’ll need to manually input your monthly spending.

Method 3: Budget apps. They come in a variety of different flavors, but they all serve a common purpose—make budgeting as simple as possible.

Typically, these apps handle the categorizing and all the math. You simply enter your monthly income, log your spending into categories, and let the app work its magic.

Not all budgeting apps are the same. Some require you to manually enter your spending, while others sync with your bank accounts. Some are free. Some cost money.

Here are a few of the most popular budgeting apps to investigate…

Mint - most popular

YNAB (You Need a Budget) - syncs with accounts, costs $84/year

PocketGuard - designed for overspenders

Honeydue - designed for couples

There’s not one particular way to begin budgeting. It all depends on your personal needs and what you’re comfortable with.

With so many options, you should be able to find the perfect method for you.

What do you think? Do you have a simple budget? How did you start it?


Why It's Time To Create Wealth

Why It's Time To Create Wealth

Are you one of those people who assumes that you’ll never be wealthy?

It’s a common mindset, and it keeps many from reaching their financial goals. But the truth is, you don’t have to be born into money or have some special talent to create wealth. It all comes down to making a commitment to start building your fortune today.

So why do so many people put off working to create wealth until later in life? There are many reasons, but chief among them is fear.

What if you save your money in the wrong place and lose everything?

What if you can’t access money when you need it?

What if you confirm a deep-seated suspicion that you don’t really know what you’re doing?

But here’s the truth—you’re better positioned to start building wealth today than you ever will be again. That’s because your money has more time to grow and compound today than it will in the future.

That’s especially true in your 20’s and 30’s. But it’s also true if you’re 45 or 55. The best time to build wealth is right now, this very moment.

So what can you do? How can you leverage time to start building wealth? Here are a few simple financial concepts you can use right away.

Create an emergency fund. I know it seems counterintuitive, especially if your credit is in shambles or you have a lot of debt to pay off. But the truth is, building an emergency fund is one of the best ways to begin building wealth because it gives you a margin of safety. If you have money set aside for a rainy day, you won’t have to turn to credit cards or high interest loans when life throws you a curveball. Instead, you can take care of things with your own savings and move on.

Automate saving right now. The best way to start building wealth is to put something away every month. Forget about how much you’re putting away or your interest rate. For now, just put something away, even if it’s just $5. You can work with a financial professional to boost those numbers later on. The important thing is to start now.

If you want to learn more about how to start building wealth today, let’s chat. I’d love to help you set some goals and create a plan for getting there. We all deserve financial security, regardless of our age or income level. So let’s find out how you can get started today.


Managing Your Monthly Budget

Managing Your Monthly Budget

You can’t afford to live in a world of denial.

If you want to maintain a budget and save money, then you need a plan. The first step is understanding the basics—what is a budget? How does it work? What are the benefits of having one?

To effectively manage your monthly budget, you must take certain steps from day one. This article will provide some helpful tips and tricks on how to get started and keep going strong until payday rolls around!

What is a budget?

A budget is a plan. It helps you set limits for your spending, so that you can track your income and expenses. Maintaining a budget keeps you aware of when you are spending too much or if there are areas where your money could be saved.

It can also help you understand your spending habits as well as identify problems, such as giving in to too many sales or buying expensive lattes every day. With a clear understanding of how you spend money every month, you may be able to reduce expenses and even start saving for luxuries or emergencies. You can’t have a goal of saving for your next summer vacation if you don’t know how much money you’re spending now.

How to create your budget

The first step is to set goals for yourself for income and spending. When it comes to income, you need to consider all the ways you get paid. What is your salary—after taxes and any other contributions you make, like to a 401(k)? Is your employer cutting back your hours? Do you have another source of income such as a side job or freelance work?

Be completely honest with yourself about how much money you have coming in. Once this figure is known, you can assess your spending and determine how much of your income goes towards them every month.

Next, make a list of all fixed monthly bills, such as rent or loan repayments. Then make a list of variable expenses, such as groceries or gas. Lastly, make a list of all your monthly discretionary spending, or ‘fun money’.

If you struggle with this last step, look at your bank statements. It’s the easiest way to find a complete record of your spending. This will help you pinpoint the areas that you could cut down on or even eliminate.

Leverage your budget

Now that you have your budget, you can take action. You can save money by leveraging your budget to meet your monthly goals.

The first way is to leverage your income. If you have a job, talk to your employer about working extra hours, or ask for a raise. This will give you more money right out of the gate.

Beyond the extra income from a job, there are many other ways to add to your budget.

You can start small and pick up some side work—babysitting, dog walking, delivering pizzas, etc. If you can turn your free time into money, go for it! This all depends on your financial situation and what you feel comfortable with, so take the time to plan accordingly.

You can also think about reducing your expenses. Cutting back on luxury items can save money every month without having to work an extra job. Just think of all the things you could do with the money that’s currently going towards cable TV or eating out every day for lunch!

Don’t forget to have some fun every once in a while. Just find creative ways to have it on a budget. Plan more outings with friends like playing tennis or frisbee in the park, rather than going to the club every evening. Your community is bound to have some free local events going on, especially in warmer weather.

A budget is a way for you to track your expenses and income each month. You can leverage your budget in a number of ways, by increasing income or decreasing expenses—or both! With this knowledge, you’ll be able to save more and plan for the future.


The Cash Flow Quadrant

The Cash Flow Quadrant

Need an income boost, but not sure where to start? Then you need to encounter the Cash Flow Quadrant.

It’s a concept pioneered by Robert Kiyosaki of Rich Dad Poor Dad fame. And it’s one of the best explanations of creating income around.

Here’s what it looks like…

Employee | Entrepreneur

Freelancer | Investor

The employee and freelancer trade their time for money.

The entrepreneur and investor create or purchase income generating assets.

Think about what an employee does. They show up, punch in, and work for a set number of hours. In exchange, they either get paid by the hour or a set annual salary.

If they’re extra conscientious and prove their worth to their employer, they may get a raise or bonus as a reward. But their income is entirely dependent on the good graces and success of their boss. They never directly enjoy the fruits of their labor.

The same is true for the freelancer. Sure, they may enjoy greater independence than an employee, but they’re still trading their time for money. Think of them as a mercenary rather than a soldier.

Compare that with the entrepreneur. The difference is that the entrepreneur creates a system for delivering a service that’s duplicatable.

Let’s say you start a lemonade stand. You put up a few bucks to buy some lemons, sugar, cups, a cooler, and stand. It’s a risk—there’s no guarantee you’ll have any customers.

Fortunately, it’s a hit—the neighbors line up to enjoy your refreshing beverage!

After a few days, you’re swimming in cash. In fact, you earn enough to open another lemonade stand. So you buy the same supplies, and hire a friend to run the new location. Just like that, you’ve scaled your lemonade business.

Eventually, you have so many lemonade stands that you don’t have to manage one yourself. Instead, through initiative and upfront commitment, you’ve created an income stream. That’s how entrepreneurship works.

But now suppose that a friend comes along. She’s been eyeing your success and wants in. She’ll put up the cash to open another ten lemonade stands across the neighborhood (it’s a BIG neighborhood).

In exchange, she gets a slice of the profits from all the stands. She takes on some risk by giving you money in exchange for some income. In other words, she’s an investor. She’s using her money to earn more money.

There are two critical points to notice about the entrepreneur and the investor.

1. They take risks. Being an employee is relatively predictable—if your employer continues to do well, you’ll give X amount of time, and you’ll get X amount of money. But starting a business is a risk. Giving money to an entrepreneur is a risk. Entrepreneurs and investors commit resources to projects with no guarantee of success.

2. They have far greater potential. There are only so many hours you can trade for money. When successful, entrepreneurs and investors have far more resources at their disposal to trade for money.

Simply put, entrepreneurs and investors face greater risks, and greater potential rewards.

Which quadrant generates most of your income? Is there a quadrant you would like to explore further?


The Rat Race

The Rat Race

BEEP BEEP BEEP…

That’s not just your morning alarm, set for 6:15am each and every darn weekday.

It’s a starter’s pistol. The rat race has begun.

The rat race is a behavior experiment. Scientists condition rats to run races, solve puzzles, complete mazes, do tricks, reproduce, not reproduce, and a host of other feats.

How? By dangling a treat in front of them. Perform the tasks. Get the reward.

Sound familiar?

Many are caught in a human rat race. They’re told that to be an adult they need a credit card, a car, a mortgage, and a 9 to 5 job.

So they jump through the hoops, solve the puzzles, and perform the tasks to get that treat—their paycheck.

That paycheck gets consumed by their basic needs, their payment plans, and their lifestyle.

And the cycle continues. Jump through hoops. Get paid. Spend. Jump through more hoops. Ad infinitum.

Bigger “treats” help—like a bonus or a raise—but only for a little while. Eventually, they get consumed by increasingly extravagant spending. It’s why people with high incomes stay trapped in the rat race.

The result? You keep running a pointless and repetitive race that leads nowhere.

Is it any surprise, then, that there’s a “great resignation” happening? Or that businesses can’t find employees?

Maybe it’s because people are finally waking up to the truth—they’ve been playing someone else’s game. They’ve been making someone else rich. And now they’re ready for a new and better opportunity.


A Holiday Reminder

A Holiday Reminder

The holidays are reminders. They cut through the boredom of daily life to reveal what truly matters.

What’s your favorite thing about the holidays? Maybe it’s family, tradition, generosity, or even nostalgia.

Your answer is a window into your values. That’s what makes the holidays so special—they’re opportunities to reconnect with what’s important to you.

But here’s the truth—that connection isn’t reserved for the holidays. In fact, it can be yours year-round.

This holiday season, make note when you sense that connection. Look for it while you’re celebrating holiday traditions with your family. Or notice someone’s expression when they open that gift, the one they’ve wanted for years. Or any child’s face when they’re mesmerized by the lights in the neighborhood.

Next, strategize about how you can have more of what you value in life. Maybe you need an opportunity that gives you more time with your family. Maybe you need an income boost to afford greater generosity. It’s likely that you’ll need to make financial moves in addition to personal moves.

Finally, follow through. That might involve taking massive leaps forward. It may involve a small, unassuming step. Whatever it is, start working towards that sense of connection.

So here’s wishing you a holiday full of what matters most. And may you have the courage to chase those things in the upcoming year.


How to Choose a Side Gig

How to Choose a Side Gig

You want to increase your income and be your own boss. Who doesn’t?

You just need the practical know-how to overcome your fears and start the journey.

The goal of this article is to empower you to take bold action.

So turn off the YouTube self-improvement videos and fire up Google Docs. Here’s how to choose the right side gig for you.

Step 1: List your hobbies. Passions can make excellent side gigs. Why? Because they leverage skills you currently have, and are already commanding your attention and interest. Those are critical ingredients for success.

It doesn’t matter how niche or obscure your hobby might be. Write it down. In fact, the more oddball your interest, the more potential you may have to monetize it.

Step 2: Evaluate the market. Simply put, can your skills solve a problem for people? If so, then you have a potential client base at your fingertips.

Those problems may not seem obvious at first. But you may be surprised by what people will pay for your service or product.

Not knowing how to play an instrument is a huge roadblock for music lovers.

Lacking time to decorate, clean, and organize is a persistent dilemma for type A personalities.

Social Media illiteracy is a massive headache for older people starting small businesses.

All of those problems are opportunities to boost your income, if you have the skills to solve them. It just takes some time and creativity to identify problems.

Step 3: Size up the competition. But here’s the catch—there might be hundreds, or even thousands, of others seeking to solve the same problems as you. In fact, your competitors might already have a well-established grip on your target market.

However, if your skills or niche are highly specific, you could have a rare opportunity on your hands that no one is fulfilling, or that no one is fulfilling well. You could eventually scale your side gig income to replace your day job!

This leads to a critical principle for deciding which side gig is right for you…

Opportunity lies at the intersection of high demand and low supply.

The more people demand a service, and the fewer competitors already providing it, the greater your likelihood of success.

There’s just one factor left to consider…

Step 4: Weigh costs against rewards. Starting a business requires a combination of time, effort, and money. No exceptions. The question is whether—and when—the rewards will outweigh the costs.

Starting a car manufacturing business? Good luck—you’ll require a huge amount of capital, and won’t see profits for years.

Refurbing curbside furniture with tools and skills your grandpa left you? Hats off—your startup costs are almost zero, beyond some time and energy.

  • In summary, you want a side gig that…
  • Aligns with your skills and passions
  • Solves a problem for enough people
  • Has few competitors
  • Offers high rewards with low costs

Which side gig fits these parameters for you? Whatever it is, let’s chat about it. We can discuss what it would look like for you to start pursuing it today!


Why You Need An Insurance Review

Why You Need An Insurance Review

Insurance is intended to protect your assets and to help cover certain risks.

Policies may have standardized language, but each insurance policy should be tailored to your needs as they are today.

A lot can change in a short amount of time. An annual insurance review is a good habit to develop to help ensure your coverage still addresses your needs.

Life changes, and then changes again, and again. There are some obvious reasons to review your life insurance coverage, like if you’re getting married or having a baby – but there are also some less obvious reasons that may change your coverage requirements, like changing jobs or experiencing a significant change in income.

Here are some of the reasons you might consider adjusting your coverage:

  • You got married
  • You got divorced
  • You started a family
  • Your income changed
  • Your health improved
  • You lost weight or quit smoking
  • You bought a house
  • You paid off your house
  • You started a business
  • You borrowed money
  • You retired

Depending on what has changed, it may be time to increase your coverage, supplement coverage with another policy, change to a different type of policy, or begin to move some money into savings or update your retirement strategy.

Have you updated your beneficiaries? Did you get married or divorced? Did you start a family? It’s time to update your beneficiaries. Life can change quickly. One thing that can happen is that policyholders may forget to update the beneficiaries for their policies. A beneficiary is the person or persons who will receive the death benefit from your life insurance policy. If there is a life insurance claim, the insurance company must follow the instructions you give when you assign beneficiaries – even if your intent may have been that someone else should be the beneficiary now. Fortunately, this can be remedied.

How long has it been since you first set up a policy? How long has it been since your last insurance review? What has changed in your life since the last time you reviewed your policies?

Your insurance needs have probably changed as well, so now is the time to make sure you have the coverage you need.


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