Tag Archives: #MoneyMondays

Financial, Health and Fitness

How Financially Literate are you?

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As one year transitions into another, we always see a sudden rush to get or start getting your financial house in order. A lot of bulleted or numbered lists come out of things to do without necessarily explaining why you need to do it. Maybe the assumption is that you already know which begs the question if you did know, wouldn’t your finances already be in order?

The reality is that many people who live in the US are not financially literate or put another way they don’t fully understand the language of money. That lack of understanding is what leads to having a financial mess on your hands. Let’s be clear though – IT’S NOT THEIR FAULT!

Nowhere in the education system in this country is financial literacy CONSISTENTLY taught. That one glaring absence leads to almost half of the population not knowing things that are key to keeping your bank accounts and overall finances in the black.

https://howmoneyworks.com/marieedwards/challenge

Think we’re kidding? Take the quiz on the website above and then post your score in the comments below if you’re brave. Are you financially literate?

If you get a score that you feel is too low to post, here’s how you change it. Register for this free course happening January 6th at 8 PM EST and increase your financial literacy in record time!

Financial, Health and Fitness

Smart Spending during Sucker Season

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Are you in a mad dash to spend money you probably shouldn’t spend? Are you looking for tips on how-to start 2021 without the soul-crushing debt some come out of this sucker season with? Here are three…

1. Spend time, not money.

Money is tight for a lot of people right now. Instead of feeling pressured to buy a gift that may put you in a financial bind, think about an activity that you can spend time engaging in with the people that are special to you. No matter if you’re in person if they are already in your circle or virtually if they are far away, make sure to put some thought into how to make it special and memorable which oftentimes does not require a huge amount of money.

2. Set one goal & make it a number.

Whether you trying to buy gifts or improve your financial situation, pick your main goal and focus on it. To help you focus, actually attach a number to it. So it might be “spending $1500 or less on gifts” or “paying off $2000 worth of debt.” Whatever your goal, making it a tangible number gives you a target and a way to measure your progress.

3. Practice healthy habits.

Health and wealth are intricately linked and a lot of times that connection is overlooked until it’s too late. So here’s your reminder to practice healthy habits year-round to avoid expensive healthcare costs later. While the tendency may be to overindulge this time of year, try to eat and drink responsibly by listening to your body and choosing healthier options. If you do overindulge, increase your activity level. Depending on your location and the weather, you may be able to venture outside and get active while remaining physically distant to limit exposure to COVID 19.

More tips can be found at this link: https://knowledge-place.wealthmeethealth.com/individual/be-smart/article/choose-healthy-foods-and-stay-active-this-holiday-season/

Financial

Why Everyone Wants Your Money NOW

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Instant Gratification Has Overtaken Your Financial Power.

“Waiting sucks!” How many times have you thought that? While it may not feel great at the moment, waiting when it comes to spending is key to reclaiming your financial power. Remembering that old adage that “patience is a virtue” can be extremely tough in this age of instant gratification.

In today’s world you can buy now, one click order, get no interest down, and enjoy same day shipping—but have you asked why? Why is it so ridiculously easy for you to spend your money? Is it…

  1. Because they’re committed to your convenience? (You can’t be that naive.)
  2. Because you’ll buy from their competitor if they don’t? (#Facts but..)
  3. Because they want your money, they want it all, and they want it now?
Seriously still find it hard to believe I didn’t realize Queen was behind most of my childhood favs until that movie – Ms. ME

DING, DING, DING!!! We’ve found our answer at #3. Understand that your need for instant gratification is a conditioned response. When you’re first born into the world, you want everything ASAP. And as a baby that’s mostly ok because what you want is essential, food, love, to not be lying in your own 💩. But as you get older, good parents teach their children to wait which is why we get the terrible twos. That’s the period where we fuss and complain and generally are a nightmare to be around until we learn that you can’t always get what you want.

Unfortunately retailers have spent decades undoing the hard work your parents put in to recondition you to expect instant gratification. Why? Because they want your money—all of it! Picture a tiny stopwatch inside every dollar you own. When the start button is pressed, the dollar starts earning interest. Each dollar is ticking away, earning money for someone. Is it you, or is it the institution that has your savings account, car loan, mortgage, student loan, paycheck, or your next pumpkin spice latte? Every dollar that passes through your hands will earn money for either you or someone else. Every time you put your hard earned cash in the hands of someone else, you’re handing out little money stopwatches that never stop ticking.

Source: Wikimedia Commons https://commons.wikimedia.org/wiki/File:Stopwatch_GIF_Animation.gif
It’s time to reclaim the earning power stolen by your need for instant gratification.

Money you put to work today has the potential to earn more interest than money you put to work tomorrow. Why? Because it has more time to grow. Those who know how money works never want to waste a single day of earning potential.

Did you think it’s a coincidence that taxes are taken out of paychecks now but tax refunds are not paid until the next year? Ever wondered why financial companies hold funds for a few days rather than release them to you immediately? They pay it out only after they’ve squeezed out every possible day of earning.

They’re not doing anything wrong. They’re just taking full advantage of the Time Value of Money. It’s time you did too.

It’s good if this makes you mad. You should be—you’ve been treated like a sucker. Your logical mind and personal finances are covered with the weeds of instant gratification. This threatens ALL your goals for the future. Start ripping the weeds out by reading HowMoneyWorks: Stop Being a Sucker today. Click here to request a copy.

This book coupled with guidance from your licensed and qualified financial professional can help you increase your financial literacy, stop the counterproductive behaviors of instant gratification, and start thinking—and acting—like the wealthy.

Financial, Health and Fitness

Is Your Cash Flowing?

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How much cash do you have left at the end of the month after you’ve covered the essentials AND treated yourself? (I’m guessing not much.)

Wish your paycheck went a little further? You’re not alone—not by a long shot. Most Americans are living paycheck-to-paycheck and saving little to nothing. So how do you increase your cash flow so you can stop living in the Sucker Cycle and start saving and investing more?

In the book, HowMoneyWorks, Stop Being a Sucker, we attack this challenge head on in Milestone 5 of the 7 Money Milestones.

Here are a few tips to get your cash flowing towards your future…

Redirect your cash flow
There are a million little things that siphon away your paycheck. Credit card debt, monthly subscriptions, and your fast food habit all chip away at your income. This “death by a thousand cuts” is a foolish spending cycle that prevents you—and countless other suckers—from creating an emergency fund, protecting your income, and building wealth for the future.

That’s why it’s so important to make and maintain a budget. It’s like a map of where your cash is going. Once you have that knowledge, you can figure out where you need to dial down your spending and start redirecting your cash. Don’t get too detailed. You don’t need to get overwhelmed by spreadsheets. Try creating a one-page list of expenses, freeing up as much cash as possible. Take your budget to your financial professional and discuss how best to use this available cash.

Open up new income streams
Budgeting and cutting back on spending might not be enough. Life throws plenty of unexpected (and expensive) problems at us that might not have a budgeting solution. You may need to look for new income streams to maintain the lifestyle you want while also saving for the future.

You’d be surprised by how many possibilities there are to create additional income streams—many of which offer the chance to make money from home. Maybe now is the time to discover that your favorite hobby or area of interest is actually a way to earn some cash. That could look like a side hustle or weekend gig, but you might find that your skills and ideas are full-time business opportunities just waiting to happen! Research which of your ideas and skills are in demand, figure out how much time and effort it will take to get started, and decide how much time you’re willing to commit. (It could be easier than you think!)

Increasing your cash flow can open up a whole new world of opportunities. That extra money you have from cutting back on takeout and streaming services could be how you fuel the power of compound interest and finally start saving for retirement. That several hundred dollars you bring in from teaching guitar lessons each month could be how you pay off your credit cards and free up even more cash. There’s no doubt your options can really open up once your cash starts flowing!

Financial, Health and Fitness

Watch out for Budgeting Potholes

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Maybe your numbers never add up or too many expenses are coming “out of the blue”. You might also feel a sense of dread every time you make a purchase. No matter what you do, this whole budgeting thing doesn’t seem to be working.

Hang in there! Here are a few budgeting potholes that might be slowing down your financial goals and how to avoid them!

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Excessive or Frivolous Spending
A job loss or a sudden, large expense can change your cash flow quickly, making you wish you still had some of the money you spent on… well, what did you spend it on, anyway? That’s exactly the trouble. We often spend on small indulgences without calculating how much those indulgences cost when they’re added up. Unless it’s an emergency, big expenses can be easier to control. It’s the small expenses that can cost the most.

Recurring Payments
Somewhere along the line, businesses started charging monthly subscriptions or membership fees for their products or service. These can be useful. You might not want to shell out $2,000 all at once for home gym equipment, but spending $40/month at your local gym fits in your budget. However, unused subscriptions and memberships create their own credit potholes. If money is tight or you’re prioritizing your spending, take a look at your subscriptions and memberships. Cancel the ones that you’re not using or enjoying.

Stinginess
Budgets are supposed to help you use your money wisely. They should be a positive part of your life—they’re not supposed to make you feel like you’re constantly failing. But sometimes our passion to save money and get our financial house in order gets the better of us, and we set up budgets that are too restrictive. While coming from good intentions, an overly thrifty budget can actually make it harder to achieve your goals. An impossible to follow plan can make you feel discouraged and resentful. You might even decide that it’s not worth the hassle! Try starting with a more reasonable strategy and then build from there!

Too complex
Sometimes our budgets are just too complicated to actually be useful. Not everyone loves working with numbers, and sometimes fiddling with spreadsheets can get so overwhelming that we just want to quit. Plus, there’s plenty of room for human error! A good option is to investigate free budgeting sites or apps. All you do is punch in the correct numbers and the magic of technology will do the rest!

One time budget
Life is constantly changing. Your simple, streamlined budget might be perfect for the life of a young single professional, but will it still hold up in five years? Where will the portion of your paycheck that works down your student loans go once you’re debt free? And when will you start saving for a house?

Take some time every few months to review your budget and see what’s changed. Evaluate what you’ve accomplished and areas that need improvement. Ask yourself what your next milestones should be and if those line up with your long-term goals!

Budgeting takes work. But it shouldn’t be a burden. Cut yourself some slack, prune your process, and stay consistent. You might be surprised by the difference filling in budgeting potholes can make in your financial life!

Did you think of another budgeting pothole that we didn’t mention? Tell us in the comments. 💬