Presentations

Common Financial Mistakes and How to Avoid Them

Jump to Article

Subscribe to get my Email Newsletter


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.


Where Money Comes From

Where Money Comes From

Money comes from solving problems.

Think about any business. It could be a lemonade stand. It could be Amazon.

Each of those businesses solves a problem.

The lemonade stand solves the problem of feeling dehydrated on a hot summer day. How? With a refreshing mix of sugar, citrus, and cold water. One sip, and you’re a new person. It’s a feeling people will pay 50 cents, or even a dollar, to achieve.

Amazon solved a problem people didn’t even realize existed—the inconvenience of shopping in brick-and-mortar stores. It turns out that driving from location to location was a time-consuming hassle, and there was no guarantee the store would have what you needed. Amazon eliminated those problems entirely with an all-encompassing online marketplace. And they’ve been richly rewarded—just look at Jeff Bezos’s net worth!

Your current job is likely solving a problem for your boss. You have skills that your boss needs for their business to run, but that they don’t have the time to develop or apply themselves. And in return for solving that problem for 40 hours per week, they give you a salary.

The takeaway? Don’t just develop skills—identify problems. Once you see obstacles, you can leverage your skills to overcome them. That’s where money comes from.


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?


How Should You Fund Your New Business?

How Should You Fund Your New Business?

So you want to start a business.

You’re done with the 9-to-5, and ready to transition from employee to entrepreneur.

But there’s one last hurdle—how will you pay for it?

Starting a business requires resources. Whether it’s a laptop, store front, circular saw, or musical instrument, you’ll need tools to ply your trade. You’ll also need to consider the cost of hiring employees as your business grows!

There are three common strategies entrepreneurs leverage to raise money for starting a business…

1. Raise capital. Trade ownership of your business for money.

2. Borrow money. Pay interest for money.

3. Self-fund. Cover business expenses yourself.

There’s no right way to fund your business. But there are clear pros and cons to each approach. Let’s explore them further so you can have a better idea of which may be best for you!

1. Raise capital. This strategy involves scouting out wealthy individuals and institutions to give you money to fund your business. But it’s no free lunch. In exchange for funding, investors want a slice of your company. As your business grows, so does their profit.

That gives them a powerful say in the management of your business. If you raise capital this way, you may find these stakeholders calling the shots and pulling the strings instead of you.

Plus, raising capital simply is out of reach for most entrepreneurs. Unless you’re disrupting a major industry and have extensive experience, the risk-reward situation may not make sense for potential investors.

2. Borrow money. It’s straightforward—you ask a lending institution or friend for money that you’ll pay back with interest. Both parties take a calculated risk that your business will increase its value enough to repay the loan. It’s a simple, time-tested strategy for funding a new business.

The advantage of getting a business loan is that it keeps you in full control of your business. No board of directors or controlling shareholders!

But business loans require planning to manage. Your business will need to consistently make payments, meaning you’ll need to consistently earn profit. That’s rarely a surefire proposition when you’re first starting out.

So while debt can help your business expand and hire new talent, it’s typically wise to hold off on borrowing until later.

3. Self-fund. This is far and away the most realistic strategy for most entrepreneurs. It’s exactly what it sounds like—pay the upfront costs of starting a business yourself.

No debt. No working for someone else. You’re completely free to run your business. You’re also completely financially responsible for the outcome.

Will you be able to buy a storefront outright? Or start a competitive car manufacturer? Probably not. But there are dozens, if not hundreds, of opportunities that require far less capital.

Look around. You may have the tools you need to start a business at your fingertips! In fact, if you’re reading this article on a laptop or desktop, you’re positioned to start an online business right now. All you need is a service to provide clients.

The takeaway? The funding your business needs will depend on your situation. Challenging an established industry with a revolutionary approach? Then you may need outside funding. But if you’re like many, you have all the tools and resources you need to start your business.


Top Financial Literacy Stories of 2021

Top Financial Literacy Stories of 2021

2021 was another wild ride.

It was no 2020, thank goodness. But there were enough ups, downs, and head scratchers to warrant a retrospective.

These are the top financial literacy stories of 2021.

Memes rocked the financial industry. You read that correctly—memes.

It began with struggling companies like Gamestop and AMC soaring in value. The cause? Rabid speculation fueled primarily by Reddit. There was little rhyme and even less reason to the frenzy, with devastating results—the boom became a bust that wiped out $167 billion of wealth.¹

And notice, that’s not even counting the rollercoaster year that cryptocurrency enthusiasts have “enjoyed.”

Memes also literally became hot commodities in the form of NFTs (Non-Fungible Tokens).

What’s an NFT? In short, it’s an image that’s modified with blockchain. The blockchain makes the image a one-of-a-kind collector’s item since it’s possible to verify the image’s identity. Think of it as a mix of cryptocurrency and trading cards.

That means almost any digital image has the potential to become incredibly valuable. For instance, one NFT sold in 2021 for $69.3 million.²

And it makes sense why people have turned en masse to memes to build wealth. They don’t know how money works. They’ve never been taught how to build a financial legacy. And deep down, they know it. So when something, anything, comes along that looks like an opportunity to stick it to the man, they take it. The results are predictable… and often tragic.

The housing market caught on fire. Speaking of extravagant pricing, the housing market boomed in 2021. The numbers speak for themselves. Rent increased 16.4% from January to October.³ More dramatically, home prices surged almost 20% between August 2020 and August 2021.⁴

The housing market serves as a window into other forces impacting consumers. Inflation raised the cost of almost everything in the last half of 2021. And with the supply chain in chaos, it seems possible that prices will continue to rise in 2022.

That makes financial literacy more critical than ever. Families have less and less margin for error, and common milestones seem harder to reach. Without the right knowledge and strategies, building wealth may be increasingly difficult.

Financial illiteracy cost Americans billions. An annual survey by the National Financial Educators Council revealed that financial illiteracy cost the average American $1,634 in 2021.⁵ That’s a total of $415 billion.

Worst of all, that’s likely an underestimate. Think of what $1,634 could do if it were put to work building wealth in a business or retirement account. That’s the true cost of financial illiteracy—both in the short-term AND building wealth long-term.

What are your top financial literacy stories from 2021? Do you foresee any exciting changes in 2022?


¹ “Meme Stocks Lose $167 Billion as Reddit Crowd Preaches Defiance,” Sarah Ponczek, Katharine Gemmell, and Charlie Wells, Bloomberg Wealth, Feb 2, 2021, https://www.bloomberg.com/news/articles/2021-02-02/moonshot-stocks-lose-167-billion-as-crowd-preaches-defiance

² “Top 5 Non-Fungible Tokens (NFTs) of 2021,” Rakesh Sharma, Investopedia, Dec 15, 2021, https://www.investopedia.com/most-expensive-nfts-2021-5211768

³ “Biden’s next inflation threat: The rent is too damn high,” Katy O’Donnell and Victoria Guida, Politico, Nov 10, 2021, https://www.politico.com/news/2021/11/10/rent-inflation-biden-520642#:~:text=The%20Apartment%20List%20annual%20National,expected%20to%20continue%20for%20years

⁴ “Home price growth is finally decelerating—and it’s just the start,” Lance Lambert, Fortune, Dec 6, 2021, https://fortune.com/2021/12/06/housing-market-slowing-heading-into-2022/


Life Insurance From Work May Not Be Enough

Life Insurance From Work May Not Be Enough

In some industries, the competition for good employees is as big a battle as the competition for customers.

As part of a benefits package to attract and keep talented people, many employers offer life insurance coverage. If it’s free – as the life policy often is – there’s really no reason not to take the benefit. Free is (usually) good. But free can be costly if it prevents you from seeing the big picture.

Here are a few important reasons why a life insurance policy offered through your employer shouldn’t be the only safety net you have for your family.

1. The Coverage Amount Probably Isn’t Enough.
Life insurance can serve many purposes, but two of the main reasons people buy life insurance are to pay for final expenses and to provide income replacement.

Let’s say you make around $50,000 per year. Maybe it’s less, maybe it’s more, but we tend to spend according to our income (or higher) so higher incomes usually mean higher mortgages, higher car payments, etc. It’s all relative.

In many cases, group life insurance policies offered through employers are limited to 1 or 2 years of salary (usually rounded to the nearest $1,000), as a death benefit. (The term “death benefit” is just another name for the coverage amount.)

In this example, a group life policy through an employer may only pay a $50,000 death benefit, of which $10,000 to $15,000 could go toward burial expenses. That leaves $35,000 to $40,000 to meet the needs of your spouse and family – who will probably still have a mortgage, car payment, loans, and everyday living expenses. But they’ll have one less income to cover these. If your family is relying solely on the death benefit from an employer policy, there may not be enough left over to support your loved ones.

2. A Group Life Policy Has Limited Usefulness.
The policy offered through an employer is usually a term life insurance policy for a relatively low amount. One thing to keep in mind is that the group term policy doesn’t build cash value like other types of life policies can. This makes it an ineffective way to transfer wealth to heirs because of its limited value.

Again, and to be fair, if the group policy is free, the price is right. The good news is that you can buy additional policies to help ensure your family isn’t put into an impossible situation at an already difficult time.

3. You Don’t Own The Life insurance Policy.
Because your employer owns the policy, you have no say in the type of policy or the coverage amount. In some cases, you might be able to buy supplemental insurance through the group plan, but there might be limitations on choices.

Consider building a coverage strategy with policies you own that can be tailored to your specific needs. Keep the group policy as “supplemental” coverage.

4. If You Change Jobs, You Lose Your Coverage.
This is even worse than it sounds. The obvious problem is that if you leave your job, are fired, or are laid off, the employer-provided life insurance coverage will be gone. Your new employer may or may not offer a group life policy as a benefit.

The other issue is less obvious.

Life insurance gets more expensive as we get older and, as perfectly imperfect humans, we tend to develop health conditions as we age that can lead to more expensive policies or even make us uninsurable. If you’re lulled into a false sense of security by an employer group policy, you might not buy proper coverage when you’re younger, when coverage might be less expensive and easier to get.

As with most things, it’s best to look at the big picture with life insurance. A group life policy offered through an employer isn’t a bad thing – and at no cost to the employee, the price is certainly attractive. But it probably isn’t enough coverage for most families. Think of a group policy as extra coverage. Then we can work together to design a more comprehensive life insurance strategy for your family that will help meet their needs and yours.


The Secret Strategy to Start Saving

The Secret Strategy to Start Saving

Bills, bills, mortgage payment, another bill, maybe some coupons for things you never buy, and of course, more bills.

There seems to be an endless stream of envelopes from companies all demanding payment for their products and services. It feels like you have a choice of what you want to do with your money ONLY after all the bills have been paid – if there’s anything left over, that is.

More times than not it might seem like there’s more ‘month’ than ‘dollar.’ Not to rub salt in the wound, but may I ask how much you’re saving each month? $100? $50? Nothing? You may have made a plan and come up with a rock-solid budget in the past, but let’s get real. One month’s expenditures can be very different than another’s. Birthdays, holidays, last-minute things the kids need for school, a spontaneous weekend getaway, replacing that 12-year-old dishwasher that doesn’t sound exactly right, etc., can make saving a fixed amount each month a challenge. Some months you may actually be able to save something, and some months you can’t. The result is that setting funds aside each month becomes an uncertainty.

Although this situation might appear at first benign (i.e., it’s just the way things are), the impact of this uncertainty can have far-reaching negative consequences.

Here’s why: If you don’t know how much you can save each month, then you don’t know how much you can save each year. If you don’t know how much you can save each year, then you don’t know how much you’ll have put away 2, 5, 10, or 20 years from now. Will you have enough saved for retirement?

If you have a goal in mind like buying a home in 10 years or retiring at 65, then you also need a realistic plan that will help you get there. Truth is, most of us don’t have a wealthy relative who might unexpectedly leave us an inheritance we never knew existed!

The good news is that you have the power to spend less and start building wealth. That’s great, and you might want to do that… but how do you do that?

The secret is to “pay yourself first.” The first “bill” you pay each month is to yourself. Shifting your focus each month to a “pay yourself first” mentality is subtle, but it can potentially be life changing. Let’s say for example you make $3,000 per month after taxes. You would put aside $300 (10%) right off the bat, leaving you $2,700 for the rest of your bills. This tactic makes saving $300 per month a certainty. The answer to how much you would be saving each month would always be: “At least $300.” If you stash this in an interest-bearing account, imagine how high this can grow over time if you continue to contribute that $300.

That’s exciting! But at this point you might be thinking, “I can’t afford to save 10% of my income every month because the leftovers aren’t enough for me to live my lifestyle”. If that’s the case, rather than reducing the amount you save, it might be worthwhile to consider if it’s the lifestyle you can’t afford.

Ultimately, paying yourself first means you’re making your future financial goals a priority, and that’s a bill worth paying.


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/


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?


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!


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/


Entrepreneurship Will Change You

Entrepreneurship Will Change You

Starting your own business can be a challenge.

It will test your talents, your mental toughness, and your ability to adapt. And those tests—if you pass them—can spark extraordinary growth.

Here are four ways entrepreneurship will change you.

You’ll develop self reliance. Entrepreneurs need to learn to solve their own problems, or fail. They don’t have a team to handle the daily grind of running a business.

Instead, new entrepreneurs handle everything from product development to accounting. It’s a stressful and high stakes juggling game.

But it can teach you a critical lesson: You’re far more resourceful than you thought. You’ll learn to stop waiting for help and start looking for solutions.

You’ll discover loyal friends. One of the downsides of entrepreneurship is that it may expose toxic people in your circle. They’re the ones who might…

  • Mock your new career
  • Feel threatened by your success
  • Try to one-up you when you share struggles

As you and your business grow, you may need to limit your interactions with them. They might be too draining on your emotional resources to justify long-term relationships.

Rather, your circle should reflect values like positivity, encouragement, and inspiration. Those new friends will support you through the highs and lows of entrepreneurship.

You’ll learn how to manage stress. Late nights, hard deadlines, and high stakes are the realities for entrepreneurs.

To cope, you must build a toolkit of skills that can carry you through the hardest times. Otherwise, you may crack under the pressure and lose any progress you’ve made.

It comes down to one key question: Why do you want to be an entrepreneur?

Are you driven by insecurity? Or by vision?

If you’re trying to prove a point to yourself or others with your business, you may fall apart at the first hint of failure.

If you’re driven by vision, you’ll see failure as part of the process.

Examine your motivations. Over time, you’ll grow more aware of your insecurities. Talk about them with your friends, families, and mentors. As you bring them into the light, you may find they have less and less power.

Entrepreneurship can spark an explosion of professional personal growth. You’ll grow up. You may start with an employee mindset, but you’ll mature into a leader. That’s how entrepreneurship will change you.

P.S. If this seems daunting, start with a side hustle. It can ease you into the role of entrepreneurship without throwing you into the deep end too soon!


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.


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


5 Things to Consider When Starting Your Own Business

5 Things to Consider When Starting Your Own Business

Does anything sound better than being your own boss?

Well, maybe a brand new sports car or free ice cream for life. But even a state-of-the-art fully-decked-out sports car will eventually need routine maintenance, and the taste of mint chocolate chip can get old after a while.

The same kinds of things can happen when you start your own business. There are many details to consider and seemingly endless tasks to keep organized after the initial excitement of being your own boss and keeping your own hours has faded. Circumstances are bound to arise that no one ever prepared you for!

Although this list is not exhaustive, here are 5 things to get you started when creating a business of your own:

1. Startup cost

The startup cost of your business depends heavily on the type of business you want to have. To estimate the startup cost, make a list of anything and everything you’ll need to finance in the first 6 months. Then take each expense and ask:

  • Is this cost fixed or variable?
  • Essential or optional?
  • One-time or recurring?

Once you’ve determined the frequency and necessity of each cost for the first 6 months, add it all together. Then you’ll have a ballpark idea of what your startup costs might be.

(Hint: Don’t forget to add a line item for those unplanned, miscellaneous expenses!)

2. Competitors

“Find a need, and fill it” is general advice for starting a successful business. But if the need is apparent, how many other businesses will be going after the same space to fill? And how do you create a business that can compete? After all, keeping your doors open and your business frequented is priority #1.

The simplest and most effective solution? Be great at what you do. Take the time to learn your business and the need you’re trying to fill – inside and out. Take a step back and think like a customer. Try to imagine how your competitors are failing at meeting customers’ needs. What can you do to solve those issues? Overcoming these hurdles can’t guarantee that your doors will stay open, but your knowledge, talent, and work ethic can set you apart from competitors from the start. This is what builds life-long relationships with customers – the kind of customers that will follow you wherever your business goes.

(Hint: The cost of your product or service should not be the main differentiator from your competition.)

3. Customer acquisition

The key to acquiring customers goes back to the need you’re trying to fill by running your business. If the demand for your product is high, customer acquisition may be easier. And there are always methods to bring in more. First and foremost, be aware of your brand and what your business offers. This will make identifying your target audience more accurate. Then market to them with a varied strategy on multiple fronts: content, email, and social media; search engine optimization; effective copywriting; and the use of analytics.

(Hint: The amount of money you spend on marketing – e.g., Google & Facebook ads – is not as important as who you are targeting.)

4. Building product inventory

This step points directly back to your startup cost. At the beginning, do as much research as you can, then stock your literal (or virtual) shelves with a bit of everything feasible you think your target audience may want or need. Track which products (or services) customers are gravitating towards – what items in your inventory disappear the most quickly? What services in your repertoire are the most requested? After a few weeks or months you’ll have real data to analyse. Then always keep the bestsellers on hand, followed closely by seasonal offerings. And don’t forget to consider making a couple of out-of-the-ordinary offerings available, just in case. Don’t underestimate the power of trying new things from time to time; you never know what could turn into a success!

(Hint: Try to let go of what your favorite items or services might be, if customers are not biting.)

5. Compliance with legal standards

Depending on what type of business you’re in, there may be standards and regulations that you must adhere to. For example, hiring employees falls under the jurisdiction of the Department of Labor and Federal Employment Laws. There are also State Labor Laws to consider.

(Hint: Be absolutely sure to do your research on the legal matters that can arise when beginning your own business. Not many judges are very accepting of “But, Your Honor, I didn’t know that was illegal!”)

Starting your own business is not an impossible task, especially when you’re prepared. And what makes preparing yourself even easier is becoming your own boss with an established company like WealthWave.

The need for financial professionals exists – everyone needs to know how money works, and many people need help in pursuing financial independence. WealthWave works with well-known and respected companies to provide a broad range of products for our customers. We take pride in equipping families with products that meet their financial needs.

Anytime you’re ready, I’d be happy to share my experience with you – as well as many other things to consider – when becoming an associate with WealthWave.



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


Subscribe to get my Email Newsletter