Pros and Cons of Simple Interest

Brace yourself: You’ve been brought here under false pretenses.
This post is not so much about a list of pros and cons as it is about one big pro and one big con concerning simple interest accounts. There are many fine-tooth details you could get into when looking for the best ways to use your money. But when you’re just beginning your journey to financial independence, the big YES and NO below are important to keep in mind. In a nutshell, interest will either cost you money or earn you money. Here’s how…
The Pro of Simple Interest: Paying Back Money
Credit cards, mortgages, car loans, student debt – odds are that you’re familiar with at least one of these loans at this point. When you take out a loan, look for one that lets you pay back your principal amount with simple interest. This means that the overall amount you’ll owe will be interest calculated against the principal, or initial amount, that was loaned to you. And the principle decreases as you pay back the loan. So the sooner you pay off your loan, you’re actually lowering the amount of money in interest that you’re required to pay back as part of your loan agreement.
The Con of Simple Interest: Growing Money
When you want to grow your money, an account based on simple interest is not the way to go. Setting your money aside in an account with compound interest shows infinitely better results for growing your money.
For example, if you wanted to grow $10,000 for 10 years in an account at 3% simple interest, the first few years would look like this:
- Year 1: $10,000 + 300 = $10,300
- Year 2: $10,300 + 300 = $10,600
- Year 3: $10,600 + 300 = $10,900
In a simple interest account, the 3% interest you’ll earn is a fixed sum taken from the principal amount added to the account. And this is the amount that is added annually. After a full 10 years, the amount in the account would be $13,000. Not very impressive.
But what if you put your money in an account that was less “simple”?
If you take the same $10,000 and grow it in an account for 10 years at a 3% rate of interest that compounds, you can see the difference beginning to show in the first few years:
- Year 1: $10,000 + 300 = $10,300
- Year 2: $10,300 + 309 = $10,609
- Year 3: $10,609 + 318 = $10,927
At the end of 10 years, this type of account will have earned more than the simple interest account, without you having to do any extra work! And that’s not even considering adding regular contributions to the account over the years! Just imagine the possibilities if you can get a higher interest rate and combine that with a solid financial plan for your future.
One final thought: Simple isn’t always the way to go, and that can be a good thing.
Wise Financial Moves For Retirees

Retiring can be the most exciting time in a person’s life.
You get to relax and do whatever you want, whenever you want, with whomever you want. But it’s important not to forget about your finances AFTER retirement; here are wise financial moves that retirees should consider once they decide to quit working for good.
Get your will in order.
The simple truth is that preparing a will can help ensure that your money goes where you want it to go and save your family a financial headache. If you’re retired and haven’t created a will, do it today!
Plan for long-term care expenses.
Why? Because there’s a strong chance you’ll need it—60% of people will need some form of LTC in their lives.¹ And it can be costly, possibly running into the tens of thousands of dollars. If you’re about to retire or have already retired, consult with a licensed and qualified financial professional about your options for this critical line of financial defense.
Pay off your mortgage!
And, if you’ve played your cards correctly, you should be close to paying off your mortgage by the time you retire. Eliminating your home payments may free up a considerable amount of cash for you to spend on your other bills and your retirement lifestyle.
Consider downsizing your home to a smaller property or RV.
That is of course, unless you have a huge family you regularly plan on entertaining! But for many, retirement is a perfect opportunity to move into a smaller, easier to manage home.
And if you’re the adventurous type, why not buy an RV? It’s a great way to travel and explore the country now that you’re moving into a new phase of life.
If you’re retiring, it doesn’t mean there aren’t a few key money moves left to be made. Consider these suggestions to be the cherry on top of your years of diligent work and savvy saving!
Two Ways to Prepare for Financial Emergencies

It’s not a matter of if, but when an unexpected financial emergency will occur.
So the best way to deal with one is to prepare for it in advance. Below are two extremely effective and relatively easy steps that can help you prepare so that when something does happen, your financial strategy isn’t thrown into disarray because of unplanned expenses.
Start an emergency fund.
Your first goal will be to save up enough money to cover six months of expenses. Then when a small emergency crops up, you’ll be able to dip into this fund. But beware! You’ll need to discern what counts as an emergency—going out to eat because you don’t feel like making dinner or going shopping because there’s a great sale going on doesn’t count!
Make sure you have the right insurance.
Not every issue can be solved with a simple emergency fund; serious medical issues, disability, or death can all cause financial trouble that may fall well beyond the scope of an emergency fund.
There are three things that you need to consider: health insurance, disability insurance, and life insurance. They can help provide protection for your family if you become unable to work or if hospital bills threaten your cash flow.
If you feel unprepared for a financial emergency, contact a licensed and qualified financial professional. They’ll have insights into how you can create an emergency fund, and help you evaluate your options for financial protection.
Why Generation Z's Financial Habits are Fascinating

Gen Z has grown up in a world where social media rules. They’ve never known it any other way.
The older Gen Zers have just come out of college, but this group’s imprint on society is already clear. You might be surprised by their attitude towards money and wealth! Let’s explore how these digital natives interact with money and why their financial habits might be influencing your business strategy.
Social media is an integral part of their world.
They spend more time on their phones, tablets, and laptops than any other generation. The iPhone was old news by the time younger Gen Zers were born. This generation needs a whole new set of rules for how they shop and find financial advice.
For instance, Gen Zers are 72% more likely to buy from brands they follow on social media.¹ And there’s been an explosion of financial advice–not all of it good–on TikTok—#personalfinance has 3.5 billion views on the platform.² So if you’re interested in not just understanding Gen Zers, but also getting their attention, it pays to keep up with social media trends.
Gen Zers have yet to accrue massive debt.
Gen Zers have thus far avoided the traps of credit card and student loan debt that have burdened every generation before. The numbers aren’t stellar–on average, Gen Zers have over $10,000 in non-mortgage debt–but that’s just a fraction of the debt carried by the typical Millennial or Gen Xer.
Of course, Gen Zers haven’t had as much time to accrue debt. It could well be that in 10 years they have just as many student loans and high credit card balances as older generations. But there is hope! Why?
Gen Zers are avid budgeters.
68% of Gen Zers use some form of budgeting system.³ Only 41% of the general population can say the same.⁴ That’s a massive improvement! If Gen Zers can use their budgets to avoid massive debt, they could find themselves well positioned financially.
In other words, Gen Z is hungry to learn how money really works. They’re already taking steps to avoid the missteps of past generations. The real question is who will teach them what it takes to become wealthy?
How Can Graduates Start Building Wealth?

If you’re a recent graduate, congratulations! You made it.
Your degree is in your hands and the world is now your oyster. If there’s one thing you should know, it’s that life after graduation isn’t all about partying with friends and family until next summer rolls around again. No, it’s time to start building wealth!
That’s because you have a secret weapon at your disposal—time.
Your money has the potential to grow via the power of compound interest. The longer your savings accrue interest, the more potential they have to grow.
Let’s say you’re 22 and fresh out of college. You’re able to save just $160 monthly in an account earning 9% interest. After 45 years, you would have grown over $1 million!
And, as your income rises, you can increase your savings rate and level up your goals.
But how can you save $160 per month?
It’s pretty straightforward—you should at least implement a budget ASAP, and maybe even start up a side gig. These are simple ways to decrease unnecessary spending and earn more money that can go towards wealth building.
If you want to learn more about building wealth reach out to financial professional you trust and schedule an appointment! They may have the knowledge and expertise to help you start on the path towards financial indepedence.
Securing the Financial Future of Your Loved Ones

Life insurance – a topic that often leads to a labyrinth of questions, concerns, and misconceptions.
Yet, this misunderstood financial tool holds the potential to secure the future of your loved ones and guarantee peace of mind. As we shine a spotlight on this crucial subject during Life Insurance Awareness Month, we invite you to join us in breaking down barriers, busting myths, and shedding light on statistics that underline the importance of life insurance. This article delves into the numerous facets of life insurance, from addressing coverage gaps and protection voids to exploring the lasting impact of charitable gestures. We aim to transform your understanding of life insurance, empowering you and your family to secure a future filled with financial stability and certainty.
Income Replacement for Loved Ones:
When you're the primary earner, the financial stability of your loved ones hinges on your income. Life insurance ensures that, in your absence, their financial needs are met. This is paramount for families with young children, but it also holds true for couples, where the loss of one income could spell financial distress. Additionally, adults, be they parents, siblings, or grown-up children, who lean on you financially, would find solace in this safety net. This provision becomes all the more crucial if your family's government or employer-related benefits diminish after your passing.
Covering End-of-Life Expenses:
Beyond the emotional turmoil, the end of life also brings significant financial expenditures—funeral arrangements, burial costs, unpaid medical bills, and estate administration expenses. Life insurance ensures these costs don't burden your grieving loved ones.
Establishing a Legacy:
A life insurance policy can be your legacy. Even if you don't possess substantial assets, naming your heirs as beneficiaries ensures they receive a considerable inheritance, creating a lasting financial footprint.
Addressing Estate Taxes:
Inheritance can come with a significant tax burden. Life insurance benefits can shoulder these estate or "death" taxes, safeguarding your heirs from having to downsize their inheritance. While federal "death" tax regulations are evolving, it's noteworthy that some states are compensating with their adjustments to estate tax protocols.
Charitable Gestures with Lasting Impact:
Elevate your charitable inclinations by designating a charity as your life insurance beneficiary. This act transforms your policy premiums into a generous contribution, amplifying the impact of your generosity.
A Reinforced Savings Strategy:
Some life insurance policies come with a cash value component. If not claimed as a death benefit, this can be accessed as a loan or withdrawal. This not only encourages a disciplined savings habit but also offers the advantage of tax-deferred growth. If this amount becomes part of a death claim, it's tax-exempt, maximizing benefits for your beneficiaries.
Life insurance is more than just a policy; it promises financial security, legacy preservation, and peace of mind. Invest wisely today to ensure your loved ones are cushioned against the unforeseeable tomorrows.
Coverage Gap: According to LIMRA (Life Insurance and Market Research Association), about 60% of all people in the U.S. are covered by life insurance. However, many insured are underinsured, meaning they might not have enough coverage to meet their beneficiaries' needs upon death.
Protection Void: As per LIMRA's research, nearly 50% of U.S. households said they would need more life insurance within the next year, highlighting the need for increased coverage.
Immediate Concerns: A study found that 35% of households would feel the financial impact within one month if the primary wage earner died.
Future Prospects: The younger generation isn't as covered as they should be. A recent LIMRA study found that only about 54% of millennials own life insurance despite many having families.
Overestimation: According to LIMRA and Life Happens, over half of millennials overestimate the cost of a term life insurance policy. This overestimation is a significant barrier to them obtaining coverage.
Employer Coverage Misconception: Many people believe that their employers' life insurance is sufficient. However, employer-provided life insurance often only covers 1-2 years of an employee's salary, which might not be adequate for a family's long-term needs.
Reasons for No Insurance: According to a survey by the Insurance Information Institute, about 44% of respondents said they don't have life insurance because it's too expensive. In comparison, 43% felt they had other financial priorities.
The Earlier, The Cheaper: Premiums for life insurance policies are typically lower the younger and healthier you are when you first buy.
Funeral Costs: The National Funeral Directors Association cites that the median cost of a funeral with a viewing and burial was over $7,848, not including the cemetery, monument, or marker costs. Life insurance can help cover these immediate post-death expenses. https://nfda.org/news/statistics
College Expenses: For parents, a life insurance policy can also ensure that their children's education is funded. In 2022-23, the College Board estimates that the average annual cost (tuition, fees, room and board with allowances for books) for a private four-year college was $57,570 for full-time undergraduate students, the future financial burden can be substantial. https://research.collegeboard.org/media/pdf/trends-in-college-pricing-student-aid-2022.pdf
Life Insurance Awareness
As we commemorate each September as Life Insurance Awareness Month, we're confronted with some alarming statistics that underscore a pervasive gap in both preparedness and comprehension. Yet, it's crucial to remember that awareness isn't just an acknowledgment of these challenges; it's the first, transformative step towards empowerment.
The statistics do not merely present numbers; they unravel stories of families and individuals caught in the crosshairs of unforeseen circumstances, often unprepared. Yet, in the face of these challenges, this month is a beacon of hope. Awareness is the first step on the path to empowerment. With the proper knowledge and proactive measures, we can transform uncertainties into certainties, ensuring our loved ones remain shielded from life's unpredictabilities. Let this month be a reminder and a call to action, prompting each of us to prioritize protection and secure a future filled with promise and peace of mind.
By shining a light on these issues, we're not only highlighting the areas that need attention but also paving the way for informed decisions, proactive planning, and a secure future. Let September catalyze change, prompting individuals to take the reins of their financial destinies and ensure that their loved ones are shielded from unforeseen circumstances.
First Steps Towards Your First Home

If you’ve checked home prices recently, you know that this is a rough time to be a first time house hunter!
2020 witnessed home prices soar by 15% to average more than $320,000–a prohibitive price for many seeking to buy their first house.¹
But even if you aren’t ready to buy a house today, there are steps you can take now that may better position you to become a homeowner in the future!
Build your emergency fund.
An emergency fund is a critical line of financial defense that can help lay the foundation for buying a house. That’s because an emergency fund provides a cash cushion while you prepare to purchase your home and then begin paying off your mortgage. The unexpected expenses of homeownership can be far less detrimental to your long-term goals when you have a dedicated fund specifically designed to cover emergencies!
Increase your credit score.
An excellent credit score is imperative for first time home buyers for two reasons…
First, actions that increase your credit score–debt management and paying your bills on time–can help create a solid financial foundation as you shoulder the responsibility of servicing a mortgage.
Second, lenders typically offer more favorable loan terms to people with high credit scores. That can result in more cash flow over the life of your mortgage. A recent survey discovered that mortgage holders with very good credit scores save more than $40,000 over the lifetime of their loan!²
Take steps to boost your credit score before you start house hunting. Automate your bill payments so they’re always on time, and begin reducing the balances on your credit cards, student loans, and auto loans!
Start saving for your down payment ASAP.
Aim to have a down payment of at least 20% of your future home’s value saved before the home buying process begins.
Why? Because paying more up front and borrowing less to buy your home reduces the interest you’ll owe over the long-term. A substantial down payment might also lower the price of closing costs and negate your need to buy private mortgage insurance. Usually, the higher your down payment, the better!
The time to lay the groundwork for buying your first house is now. Build an emergency fund, increase your credit score, and save enough for a significant down payment. Then, search for a house that meets your needs and won’t break the bank!
Is It Ever OK To Use a Credit Card?

Yes… but with qualifications.
Let’s explore some situations where using your credit card makes sense…and what pitfalls to avoid.
You’re strategically leveraging rewards. It’s perfectly possible to reap the benefits of cash back rewards without going into debt to earn them. How? Try using your credit card just for everyday purchases like gas and groceries. If you don’t overspend, you’re essentially getting paid for using your card.
But that’s the trick. Those rewards can make it tempting to buy things you don’t need. It’s easy to justify excess purchases if you’re earning those extra points! But in the long-term, the rewards won’t outweigh the costs and risks of overusing a credit card. So if you think you can thread the needle of responsibly using a credit card to leverage points without overspending, go for it!
You’re making significant online purchases. The simple fact is that there are serious rewards—and protections—when you use your card for online purchases. This is especially true for travel. Some cards offer specific rewards for booking hotels or plane tickets that you should certainly take advantage of. There are also some protections for online purchases that credit cards offer. Once again, don’t plan a fancy vacation just to take advantage of rewards. But if you need to travel, you might as well get any benefits coming to you!
Wisely using credit cards is a matter of self-control. If you can take advantage of rewards and protections without overspending, good for you! For others, however, it may be wise to avoid cards altogether while they pay down their debt.
Not sure which strategy is best for you? Contact a licensed and qualified financial professional. They can help evaluate your situation and make a recommendation.
Bad Financial Habits and How to Overcome Them

Read on if you ever find yourself struggling to stay afloat financially.
Do you ever feel like no matter how much money you make, it never seems like enough? You’re not alone. A recent survey found that more than half of middle-income families didn’t have three months of expenses saved.¹ Debt and spending can be out of control for many reasons—the economy, our upbringing, or even because we’re hardwired to want more. This article explores three bad habits that may be hurting your financial situation. You might be surprised by what they are!
Treating credit cards like free money. When you’re tempted to buy something and don’t have the cash, it’s easy to just use credit. But instant gratification can have serious consequences. Little by little, you may find yourself racking up more and more debt. Paying your monthly credit card bill can start requiring all of your cash flow… and maybe more. Yikes.
The solution? Limit your credit card usage as much as possible. Make a habit of only using your credit card for certain low-dollar items, like gas. If you can’t buy your impulse purchase in cash, go home!
Trying to buy happiness.
It’s tempting to think that you’re going to be happy if you buy one thing or another. But what happens when the newness wears off? Suddenly, you have a closet full of clothes and shoes that really aren’t making you any happier! The same is true of houses, cars, gadgets, anything you can think of. Buying things to keep up appearances or just because you think they’ll make you fulfilled is a recipe for overspending on things that, ultimately, don’t matter.
The key is to find happiness beyond your material possessions. That’s no small task, and there’s no set road map for it. But it’s absolutely critical to find a source of meaning that isn’t tied to stuff and things. You could be happier—and more financially stable—for it.
Ignoring your financial situation.
Let’s face it—finances can be scary! Overwhelming debt, paying for college, and feeling out of your depth are uncomfortable emotions. And ignoring and denying uncomfortable feelings is often a first line of defense.
But it’s a dangerous game. Ignoring what the numbers tell you can lead you deeper and deeper into financial instability. You could be setting up a much harder path for yourself in the future than if you tackled your financial situation now.
Tackling your financial fears isn’t always easy. It might require serious soul searching. Just know these three things…
Acknowledging the problem is the first step. Once you can admit that your finances need help, you’re ready to start making positive changes.
Seeking help is always wise. Whether it’s a friend, spouse, qualified counselor, or financial professional, enlisting help can give you the courage you need to face your fears.
You can do this! It might not feel like it, but you have what it takes to confront this challenge… and win! Don’t lose hope, and start moving forward.
Managing your money wisely requires more than knowing different techniques and strategies. It takes maturity. The more you invest in making improvements to your life overall, the better emotionally equipped you’ll be to navigate the world of personal finances.
Evaluating the Opportunity Costs of Your Career

Have you ever had a job that didn’t inspire you?
You know, one where you felt as if all your energy was being drained from the moment you walked in until the moment they kicked you out. Maybe it was a bad boss, or just something about the industry or type of work.
This article will help you evaluate whether or not your current career path is worth pursuing by considering the opportunity cost of staying where you are versus leaving to pursue your dreams.
First off, what is opportunity cost? It’s an economic term which refers to the benefit that a person must give up in order to attain something else. Typically, it’s calculated in dollars. For instance, career A might pay you $50,000 while career B may pay only $30,000. The opportunity cost of choosing career B would be $20,000.
But here’s the catch—there are factors beyond pay that you must consider when choosing a career.
What if earning boatloads in your career requires dedicating all your waking hours to that endeavor? Are you sacrificing your joy, freedom, or even mental health just for a paycheck? The opportunity cost of your career and salary might be your joy, your freedom, your family, and your state of mind!
So when considering a job or a career, weigh ALL the costs. Will your career consume your time, distract you from your true passions, and impair your mental health, all in exchange for a fat paycheck? Or will it enrich your life, use your time wisely, and allow you to make enough money without sacrificing the joys of family and friends?
Is Your Budget Too Ambitious?

Budgeting is a popular topic among people of all ages, and for good reason.
It can help you save money, stay on top of your finances and even reach financial goals. But how do you know if your budget will work for you?
To help determine that, you’ll need to consider two things: if category groupings make sense for your family, and whether the amounts allotted for those categories are reasonable.
For instance, is your entertainment category too inclusive and/or is the amount too high? Does it include money to cover gifts for friends’ birthdays or other events, or just what’s needed for your own entertainment, like streaming services or concerts? Having categories that are too inclusive or vague may tempt you to overspend on certain items.
And there’s another danger—maybe the amount assigned to your entertainment category is too low and you’ve budgeted all the fun out of your life! If your budget is too strict, you may not feel like you can enjoy going out to eat or buying something special for the kids once in a while. You may feel like you’re always saying “no” to your friends and family.
But if you have too many “nitpicky” categories, you may feel overwhelmed and frustrated trying to keep up with all of them each month.
It’s important that your budget is realistic and works for you and your family’s unique situation. If it doesn’t, you may find yourself getting discouraged and giving up!
So when you’re creating your budget, keep in mind there are other alternatives to spending a lot of money. For entertainment for example, explore creative and cheap ways to have fun with your family. Organize a park day, go on a hike, or visit a free museum.
It’s also important to be flexible. If you’re going out with friends, don’t feel like you have to buy the cheapest item on the menu! And when someone suggests doing something that isn’t on budget but sounds fun, don’t say no right off the bat—see if you can work within your limitations or cut back somewhere else.
In conclusion, definitely budget! Just don’t make your budget a chore or painful to stick with.
The 5 Things To Do With Your Inheritance

If you are in the position of receiving an inheritance, congratulations!
You have a chance to make your life even better with this gift. However, it’s important to handle it wisely so you don’t create any regrets down the line!
Pay down debt.
Receiving a sudden windfall is the perfect opportunity to take a chunk out of any credit card debt or student loans that are hanging over you. You may even be able to pay off your car or house!
The simple fact is that debt wears down your ability to build wealth. Using your inheritance to help pay off your loans can position you to start building wealth sooner rather than later.
Build your emergency fund.
Having cash on hand can be a game-changer. It empowers you to tackle emergencies like a child’s broken arm, an unexpected car repair, or even short-term unemployment—without turning to debt.
If you don’t have three months of expenses saved, consider using your inheritance to create some financial peace of mind for your family by setting up an emergency fund.
Save for retirement.
Now that you’ve covered your bases, you can start using your inheritance to start building wealth for the future. As soon as you can, meet with a licensed and qualified financial professional to start developing a strategy that will make your money work for your future!
Fund your kids’ college education. College is pricey. Whether your children are very young or almost at university age, now is a good time to start saving for college. Once again, it’s best to meet with a financial professional to decide the best way to go about funding your child’s education.
Finally, have fun!
You’ve done the hard work of getting rid of debt and building your emergency fund. Now that you have a college education and/or your retirement savings strategies in place, there’s no reason not to splurge on something fun with your inheritance! Just be sure that your fun doesn’t send you back into debt or dip into your emergency fund!
Should You Apply For a Personal Loan?

Sometimes the world throws financial obstacles your way.
And that’s normally when your emergency fund would kick in. But what if you don’t have an emergency fund? Or what if there isn’t enough money in it to cover your current catastrophe? If you find yourself in this situation, you might consider applying for a personal loan to close the gap—but should you?
The simple answer? Probably not.
Starting with the basics—what is a personal loan? A personal loan is an unsecured debt that allows people or companies in need of money to borrow funds from lenders for any reason including but not limited to…
- Home improvements
- Medical expenses
- Debt consolidation
These loans are often set up for a short period of time with fixed monthly payments.
There are pros and cons to any form of debt. Personal loans are no different—they have their own set of benefits and drawbacks.
Personal loans can offer lower interest rates than credit cards, which can help you save money on interest payments. That can make them useful for consolidating other high interest rate loans.
However, personal loans can come with higher fees and significant interest rates. And for most financial emergencies, personal loans simply aren’t your best option. For instance, if you’re struggling with medical debt, you should first consider negotiating with your doctor’s office for more favorable payment terms first.
It’s not advisable to use a personal loan to make a large purchase, like a new TV, either. If you’re using the money for anything other than a last resort for emergencies or debt consolidation, it’s probably not worth it and could end up costing you more in interest payments down the road.
In conclusion, personal loans can be useful in specific circumstances or if you’re at the end of your financial rope. But they shouldn’t be your first option. Making sure you’ve got a sufficient emergency fund in place, a well-thought-out budget, and a solid savings strategy set up as soon as possible may help avoid the need for a loan and create more debt.
Two Techniques to Help You Prepare for Retirement

As with anything important, saving for retirement can be intimidating.
It’s a natural instinct to avoid tasks that seem overwhelming. But not preparing adequately for retirement can have serious consequences—you may find yourself rapidly approaching that time in your life with little saved!
Here are two simple, actionable steps that can help you overcome the intimidation of saving and move you closer towards your financial goals.
Save 15% of your income.
This is a good rule to follow for the long term, but it may not be realistic all the time. Elderly parents living with you? A child going through college? If saving 15% feels impossible or overwhelming, start by setting aside something more manageable. Saving 1% of your income may not feel like much, but it’s far better than putting away nothing! And once you get used to saving, you might be surprised by how eager you are to increase that percentage.
Automate savings so they happen without any effort on your part.
Set up an automatic monthly transfer from your checking into your savings accounts. This way, you’ll never have to worry about forgetting or neglecting your savings. It’s helpful to schedule the transfer right after you get paid. This technique, called “paying yourself first”, results in your paycheck helping to build wealth for you, and not someone else!
It’s never too early–or too late–to start saving for retirement. The earlier you begin, the more time your money has to grow and compound over a lifetime. And even starting closer to retirement is still better than never starting at all! Begin with these two techniques, and develop your strategy from there.
Four Ways to Fend Off Credit Card Fraud

The internet has made it possible for someone to steal personal information and commit credit card fraud from the comfort of their own home.
Being a victim of credit card fraud can seriously impact your financial well-being by decreasing your credit score and sinking you deep into debt. Repairing the damage can be stressful and time-consuming. Take a look at some tips on how you can fend off credit card fraud and stay safe online.
Don’t give your credit card number to anyone who calls you on the phone. Hang up and call their customer service line directly. Unless you can verify that you’re speaking with a legitimate institution, keep your card information to yourself. The same is true for emails, sketchy websites and landing pages, and social media posts.
Avoid sensitive accounts on public Wi-Fi. If you’re using a public Wi-Fi network, it’s possible that someone could be eavesdropping on your information. That’s because public internet is relatively insecure—hackers have far easier access to your passwords and account information in a coffee shop than in your workplace. It’s always safer to check your bank accounts on a private Wi-Fi connection that’s password-protected.
Review transactions often, if not daily. Make it a habit to check your credit card account regularly to ensure all charges are accurate. If you notice any suspicious activity, whether it’s a store you’re not familiar with or a charge from a location in another state, contact your credit card customer service immediately.
Separate your cards from your wallet. If a thief nabs your purse or wallet, will they have access to your credit cards? Consider buying a separate wallet to carry your credit and debit cards. It’s a simple step that might protect your bank account from pickpockets and muggers. (Hint: Consider using a minimalist wallet for your cards. Carrying two bulky wallets would just be inconvenient!)
In conclusion, there are many ways to avoid credit card fraud. Try following the tips in this article, and stay vigilant about your account information.
What Can You Do To Increase Your Credit Score?

For many families, a good credit score is the key to not only borrowing money but also buying your dream home and starting a family.
But what if you have bad credit? This blog post will explore strategies that might help increase your credit score so that you can borrow more money or get approved for loans more easily.
Keep your credit card balances low. Part of your credit score depends on something called credit utilization. Using up your credit limit can negatively impact your score and drag it down. That’s why it’s best to restrict your credit card usage to certain types of purchases. If you start closing in on that credit limit, consider putting yourself on a spending freeze or using cash for a while.
Don’t close old accounts that you have a good history of paying on time. Why? Because closing accounts can technically lower your credit limit. Even though you’re not borrowing more money, you’re suddenly utilizing a greater percentage of your credit. That can result in your credit score taking a hit, even though your credit habits haven’t changed. So keep those old accounts with good payment histories open!
Check your credit report for errors and inaccuracies. Did you know that anyone can get a copy of your credit report? It’s true! You’re entitled to a free copy of your credit report every 12 months. Visit the Federal Trade Commission’s official website to discover how you can get your report. Once you have it, you can check it for errors that may have negatively impacted your score.
If you’re curious about how your credit score impacts your ability to make big purchases, let me know! We can review your situation and work on a game plan to improve your score and move towards your goals.
What You Need to Know About Debt Consolidation

You’ve been struggling to keep up with your debt payments for weeks, months—maybe even years.
You’re tired of feeling like you’re drowning in a sea of credit card balances and student loans. The good news is that there are options available to help you break free from this cycle!
One option is debt consolidation. It involves taking out one large loan (typically through a bank) to pay off all your other smaller debts.
Let’s discuss how debt consolidation works, who may benefit from it most, and what you need to know before making a decision about whether or not this option is right for you.
Debt consolidation is a way to combine some or all of your debt into one loan. This can make a significant difference in your debt reduction by…
- Simplifying the repayment process
- Potentially lowering your interest rate
Let’s consider an example. Let’s say you have two debts, one that’s $3,000 at 10% interest and another that’s $5,000 at 15% interest. If the term of both loans is 5 years, you would pay almost $3,000 in interest! Consolidating your debt into one loan that’s $8,000 at 7% would almost halve your interest payments.
There are several types of loans that this process can deal with, including home equity loans or car loans. It’s also possible to use a new credit card with a promotional interest rate and high credit limit to pay down your other debts (use this method with caution). Debt management programs sometimes offer debt consolidation for unsecured debt like credit cards and medical debt. Just know that you may not qualify for these types of loans if it’s too soon after filing bankruptcy or if you have a low credit score.
But debt consolidation may not always be your best option, especially if you can’t secure a lower interest rate or the term of the loan is significantly longer than your current loans. It’s best to collaborate with a financial professional who can help you assess your situation and create the right debt-busting strategy!
How To Retire With Less

If you had to totally trash your retirement strategy, how would you do it?
There are plenty of extravagant solutions—a gambling spree in Vegas, buying a boat, or shopping only at designer stores would probably do the trick!
But there are less obvious ways to retire with less. There are subtle misteps that may not lead to financial trainwrecks, but may still result in retiring with less. Here are a few!
Never start saving for retirement. The same is true for every undertaking. The easiest way to torpedo your music career? Never practice. It’s unwise to expect your retirement to be financially sound if you don’t start preparing and saving for it today. Starting is the most important step in your journey!
Buy a house you can’t afford. Few things will consume your cash flow and ability to build wealth more than a house that’s out of your budget. Mortgage payments, emergency repairs, and renovations can be costly even after extensive planning and saving. These expenses can scuttle your ability to build wealth if you end up becoming “house poor”.
Buy things you don’t need. Make no mistake—there’s a place for splurging and treating yourself. But there’s a point where buying more stuff simply weighs you down, both emotionally and financially. And if you’re using debt to keep shopping, you might be setting yourself up for less in retirement.
Be afraid of change. It’s incredibly difficult to pursue better opportunities if you fear change. Improving your financial situation, by definition, requires you to do something different, whether it’s spending less or changing careers. Unless you’re already on track for retirement, a fear of change can hinder your ability to reach your goals and live your dreams.
Never learn how money works. This is the easiest item on the list to avoid. Most people are never taught what their money can actually do and how to build wealth. But it can have serious consequences for your future. Not knowing how money works can prevent you from using critical tools like the Rule of 72 and the Power of Compound Interest to detect both bad deals and wealth building opportunities.
If any of these rung a bell with you, contact me. We can discuss strategies to start preparing for retirement, cut your spending, and find opportunities to increase your income!
5 Common Financial Mistakes That Parents Make

It happens every day. Parents make financial blunders that can impact their children’s future.
These mistakes are often avoidable. But a parent who has the best intentions and lacks the knowledge needed to properly manage their finances may not recognize these errors until the damage has been done.
Here are 5 common financial mistakes every parent should be aware of!
1. Not saving for their children’s education.
You know the numbers—it seems higher education is growing more and more expensive every year. So the time to start financially preparing for your child’s university years is today. Meet with a financial professional to discuss how you can pay for college without resorting to student loans!
2. Not saving for retirement.
Skimping on your long-term savings might be tempting, especially if your budget feels stretched to the breaking point by the basic expenses of providing for your family!
But saving can support your long-term financial position. It gives you a shot to pay for your own retirement, it can reduce the impact of long-term care on your family, and it might even create a financial legacy to leave to your children.
3. Spending too much on credit cards.
It’s not just parents. Many Americans overuse their credit cards. But it can be a little too easy to do for parents on tight budgets. Don’t have enough in cash to buy your child a new toy? Just put it on the card!
Unfortunately, credit cards can become a significant drain on your cash flow. And the less available cash you have on hand, the less you’ll be able to save for your other financial goals!
4. Buying a house they can’t afford.
Make no mistake—your family needs space. You need space! Just make sure that the house you buy is actually within your budget. Mortgage payments can chip away at your cash flow and reduce your wealth building and education funding power. And don’t forget to factor in the cost of house maintenance before you move in.
5. Buying things they don’t need to impress other parents.
You love your kids and want the best for them. That’s what makes you a great parent!
But be mindful of why you buy things for your family. Are you providing for your kids? Or are you simply trying to impress your friends and neighbors? Take care that you put the wellbeing of your family first, not the opinions of others.
If you need help navigating your financial responsibilities, contact me! We can discuss strategies that might give your family the upper hand they need to thrive.
3 Truths About Credit Cards

Credit cards can be dangerous if you don’t understand them.
That’s why it’s crucial to learn how credit cards work before deciding whether or not to get one. Here are three important truths that everyone should know about credit cards.
Credit cards are NOT free money.
You read that correctly. Every time you make a purchase with your credit card, you’re actually borrowing money. Lenders want you to pay that money back—and then some. Using your card for purchases outside of your budget or to buy expensive toys beyond your means can result in a stunning level of debt. But that’s not all…
Credit card debt can take years to eliminate.
Credit cards are notorious for high interest rates, averaging 18.43% in the August of 2022.¹ That makes paying down credit card debt especially difficult. In fact, it might take years to pay off some cards if you made the minimum payments alone. Limiting your usage and paying your bill on time every month is an absolute must if you’re going to use a credit card.
Credit cards can be a great way to build credit.
But credit cards aren’t all bad! Consistently paying your bill on time and limiting your credit usage can indicate to future lenders that you ll be trustworthy with a loan. They may offer you more favorable interest rates and terms if you have a great credit score!
Credit card usage has the potential to make or break your financial wellness. Recognizing the risks—and benefits—that easily accessible credit can bring should inspire you to navigate your finances with care and intention.
Critical Financial Moves After Your Child’s Birth

You did it! You brought an adorable, tiny human into this world. Congratulations!
By now, you’ve probably noticed that there’s a lot that goes into caring for your newest family member. Between the diaper changes, sleepless nights, and feedings, take a few moments to make these critical financial moves. They may bring you the peace of mind and financial security your family needs!
Add your child to your health insurance coverage.
Once your child is born, you have between 30 and 60 days to enroll your newborn in your health insurance plan.¹ Fortunately, it’s not a difficult task. Have your child’s birth certificate and social security number handy, and then call your health insurance provider. Share the good news that you’ve had a child and would like to add them to your plan. If your health insurance plan is through work, you’ll need to contact your HR department and go through the same process.
Find the right childcare for your family.
Childcare can be pricey, with over half of American families spend over $10,000 annually.² If both you and your spouse work, you’ll need to find a way to budget in this significant expense.
Review the costs of local daycare centers. Nannies are worth investigating, but can be more expensive than other forms of childcare. Consider asking your stay-at-home friends or family if they can tend to your children while you’re away from home. You might land a sweetheart deal that builds relationships and saves you money!
Protect your family with life insurance.
There is no better time to consider life insurance than after the birth of your child. Raising a kid is expensive! Food, education, and clothing can require significant financial resources. The right life insurance policy can protect your family’s financial stability even if you pass away or if you get sick or injured and can no longer earn an income. Now’s the time to provide the financial security that your loved ones may need in the future.
The first few months of a baby’s life are crazy—they depend on you for everything! Just be sure to take some time between caring for their physical and developmental needs to tend to your financial concerns. It’s one of the greatest services you can offer them!