5 Reasons To Celebrate Financial Progress

Financial progress is a testament to resilience, determination, and strategic planning. The transition from struggling to financial stability marks a significant accomplishment worth recognizing and celebrating.

5 Reasons To Celebrate Financial Progress:

Motivation and Encouragement

Celebrating financial progress serves as a powerful motivator. Acknowledging and celebrating even small milestones reinforces the belief that your efforts are paying off. It encourages continued determination to accomplish more financial goals.

Financial milestones, such as paying off a credit card or reaching a savings target, become tangible evidence of progress. This positive reinforcement allows you to stay focused and committed to the journey toward your fully funded life!

Reinforce Positive Habits

Recognizing and celebrating financial progress reinforces positive habits. Whether it's budgeting diligently, investing regularly, or setting aside savings each month, celebrating achievements reinforces these behaviors as effective and rewarding.

By acknowledging the success achieved through these habits, you become more likely to continue implementing them.

Cultivate Gratitude and Mindfulness

Celebrating financial progress fosters gratitude and mindfulness. It prompts reflection on the journey from financial challenges to achievements, encouraging you to appreciate your efforts and sacrifices made along the way.

Gratitude also promotes better financial decision-making and a deeper appreciation for the resources you have. This mindfulness can help you stay focused on your financial goals while appreciating the progress you’ve made so far.

Strengthen Financial Confidence

Each financial accomplishment reinforces the belief in your ability to navigate financial challenges effectively. This increased confidence leads to better financial decision-making and a willingness to take calculated risks.

Build A Supportive Community

As you achieve your plans, hopes, and dreams - share the successes! Whether big or small, your accomplishments can inspire and motivate others on their financial journey! Think of a few friends in your life, as you celebrate together, you can form financial accountability and provide encouragement during both the highs and lows of working towards your fully funded life.

Celebrating financial progress goes beyond merely acknowledging achievements; it plays a pivotal role in reinforcing positive behaviors, fostering gratitude, building a supportive community, and so much more. Embrace your financial wins this season!

Managing Money During Challenging Financial Times

In the journey towards a fully funded life, we often encounter challenging financial times that test our resilience: volatile markets, high-interest rates, inflation, high housing costs, economic instability, recession, and so on….

Yet, even in the face of adversity, there is hope, and with thoughtful planning, your dreams can still be accomplished. Here’s how!

Assess Your Financial Situation

• Create a Detailed Financial Snapshot: Taking stock of your current financial situation allows you to understand where you are and where you want to be. List your assets, debts, income, and expenses.

• Identify Areas Needing Attention: Pinpoint the areas that need immediate attention. Are there debts to be managed? Expenses to be trimmed? Knowing your challenges is the first step in overcoming them.

Budget and Prioritize

• Create a Realistic Budget: Creating a budget that adapts to changing circumstances ensures your goals remain within reach. Assign every dollar a purpose within your budget, aligning your financial decisions with your plan's, hopes, and dreams

• Prioritize Essential Expenses: In challenging times, prioritize your essentials, such as housing, utilities, and groceries. While cutting non-essential costs, ensure you safeguard what truly matters to you during challenging financial times.

Build Financial Resilience

• Establish and Maintain an Emergency Fund: An emergency fund is your safety net, ready to catch you in difficult times. Ensuring you stay on course even when challenges arise.

• Explore Additional Income Sources: Side hustles, freelance work, and diversified income streams can provide additional financial stability during uncertain times.

• Seek Financial Advice and Support: Seeking advice and support when needed is a sign of strength. Financial professionals and community resources can provide guidance and assistance to keep your dreams alive, even in challenging times.

Navigating challenging financial times takes discipline, but it doesn't have to derail your plans, hopes, and dreams. By assessing your situation, budgeting wisely, and building financial resilience, you can continue on your path toward building the fully funded life you've envisioned!

Generosity in Your Budget: How to Allocate Funds for Giving

Let me ask you this question: ‘Does your budget include an area for giving?’

As you work towards your plans, hopes, and dreams, personal finance isn’t just about building your own personal wealth but also about making a positive impact on the lives of others.

Prioritizing Generosity in Your Budget

An organized budget is key to managing your finances effectively. Create a dedicated category for giving, making it a central part of your budget. This way, you ensure that each month money is allocated for generosity!

Strategies for Allocating Funds for Giving

• Percentage-Based Giving: Consider a percentage-based approach to your giving. Many choose to give a certain percentage of their income, such as the traditional 10% tithe. This method allows your giving to grow as your income does.

• Giving by Priority: Outside of regular tithing, prioritize your giving based on the causes and organizations that resonate most with you. By directing your resources where they matter most, you ensure your generosity has the greatest positive effect.

• Monthly Giving Plans: Consider setting up a monthly giving plan. This approach automates your contributions, ensuring that your generosity isn't subject to sporadic or impulsive decisions. Monthly giving keeps your commitment to your generosity budget on track.

Incorporating generosity into your budget is not just about financial management; it's about making a meaningful difference in the world. Start implementing these strategies today and experience the joy and satisfaction that comes from integrating generosity into your budget. Your financial well-being and the lives of those you touch will be all the richer for it.

How To Have A Debt-Free Christmas

Picture this: It's December, the holiday season is in full swing, and you're basking in the joy of Christmas festivities without a worry in the world about looming credit card bills in January. Sound like a dream? Well, it doesn't have to be!

Christmas is an annual, non-monthly expense, and it shouldn't catch us by surprise. With some careful planning, you can enjoy a fully funded Christmas, where you buy gifts with cash and avoid post-holiday financial stress. Here's how to make it happen.

Set Your Budget

• The first step is to decide how much you want to spend on Christmas as a whole. This amount will serve as your budget's foundation. It's crucial to determine a reasonable and achievable sum that won't strain your finances.

Creating a Christmas Gift List and Setting Allocations

• Create a comprehensive list of every person, organization, or cause you plan to buy gifts for during the holiday season. (P.S. You don’t have to get EVERYONE in your circle a gift!) Once your list is ready, assign a specific amount to each recipient, including a category for decorations, travel, and other holiday-related expenses. This planning ensures that every dollar you spend on Christmas serves a purpose and won't lead to unnecessary financial stress in the new year.

Stick To The Budget

• The key to a fully funded Christmas lies in your ability to stick to the budget you've created. It's easy to get caught up in the excitement of the season and overspend, but maintaining discipline is crucial. Resist the temptation to make impulse purchases or exceed your allocated amounts. Sticking to the budget requires self-control and accountability. Keep track of your spending, regularly review your budget, and make adjustments if necessary.

A debt-free Christmas isn't an unattainable dream; it's a tangible goal that you can reach!

Creating An Attitude Of Gratitude

In the pursuit of a fully funded life, we often focus on budgeting, saving, debt elimination, and investing. While these are crucial steps, there's another, often underestimated, factor that can significantly impact your financial journey: gratitude. A grateful mindset can transform the way you approach personal finances!

Improved Financial Perspective

Gratitude has the power to shift your perspective from one of scarcity to one of abundance! When you take a moment to appreciate the things you have, you become less focused on what you lack. This shift in mindset can lead to better financial decisions.

Consider this: A mindset of abundance helps you see opportunities rather than limitations. It encourages you to make choices that align with your financial goals. When you're not fixated on what you lack, you're less likely to make impulsive or unnecessary purchases. This, in turn, can help you save more and spend wisely.

Mindful Spending and Saving

Gratitude is closely related to mindfulness. When you practice gratitude, you become more aware of the present moment and the positive aspects of your life. This heightened awareness extends to your financial choices.

With gratitude, you are more likely to approach spending and saving with intention. You'll consider whether a purchase truly aligns with your plans, hopes, and dreams. This mindful approach to personal finance helps you allocate your resources wisely and avoid impulsive spending. Over time, these small, mindful choices create strong financial habits, leading to responsible budgeting and better financial outcomes.

Gratitude as a Motivational Tool

Debt elimination and wealth building often require ongoing effort and discipline. This is where gratitude can be a powerful motivational tool. By practicing gratitude, you can stay motivated to pay off debts and save for the future.

Think about the progress you've made on your financial journey, no matter how small. Reflect on the people, experiences, and opportunities that have contributed to your financial growth. When you focus on these positive aspects, it becomes easier to stay committed to your goals.

Cultivating gratitude can change the way you approach your personal finances. It can improve your financial perspective, lead to more responsible financial management, and serve as a powerful motivator for debt elimination and wealth building. In your pursuit of a fully funded life, remember that gratitude is not just a feel-good emotion; it's a strategic tool that can shape your financial future.

Embrace gratitude, and watch how it transforms your journey toward accomplishing your plans, hopes, and dreams.

5 Steps To Get Financially Organized

Organization! Some of you may hear the word organize and your heart flutters with excitement, while others are probably filled with dread just by the sound of the word.  Wherever you are on the spectrum, you can and NEED to get your finances organized.

STEP 1:  Understand Why You Are Doing This In The First Place

Here are some reasons to get organized financially:

• Control: It is hard for the finances to run out of control when you are focusing this intently on your financial affairs.

• Improved financial focus:   We tend to improve that which we focus our attention on.

• We WILL die someday:   Our family will appreciate a clearly organized set of financial affairs.

step 2: Prepare A List Of All Of Your Financial Accounts

• It is important to gather together your financial statements so you can easily prepare a one or two page document that details your entire financial picture.

step 3: Information To Include On Your Financial Accounts Form

• This form is meant to be the be-all to end-all location for your entire financial picture.   When you are looking for key financial information, you won’t have to go far because it is all contained within this file.   When you pass away, it allows your estate executor to easily understand what they are dealing with.

• Here are the key items to include:

  • Investment Accounts

  • Bank Accounts

  • Real Estate

  • Will

  • Power of Attorney

  • Insurance Policies

  • Jewelry or other valuables

  • Safe Deposit Box

Step 4: Make Sure You Are Budgeting

• Having your accounts listed out and your financial affairs in order is so important.  What good does that do you though if you aren’t organized with the money that you spend? Budgeting is part of being organized with the money that comes in and what goes out of your account each month.  Taking control of this sets you up for financial success.

STEP 5: Where To Find Free Or Cheap Resources

• Check your local hospital for free healthcare power of attorney forms.

  • Check your local hospital system’s website to see if they have the same available. They may also offer advanced directives. An advanced directives form takes the pressure off of your loved ones to make care decisions for you if you aren’t able to communicate your desires yourself.

  • Some county library websites will also offer free legal forms, including those that are state-specific.

As you organize your accounts and records not only will it help your loved ones in the long run, but it will become easier for you to understand your current financial position.  This will help you as you make monthly decisions in your budget and set you up for success with your finances.

This may be a time consuming task your first go round, but after you have this set up it will be easy to update and maintain it going forward.

How To Live Generously

Did you know that living generously can be a transformative step on your journey to achieving your fully funded life? But what does it mean to live generously, and how can it benefit your personal finance goals?

Benefits of A Generous Life

Living generously isn't just about opening your wallet; it's about opening your heart. When you practice generosity, whether through acts of kindness, charitable donations, or volunteering, you experience a profound sense of satisfaction and happiness. A friend of mine once said, “I give to keep from being selfish.”

Generosity isn't limited to financial contributions. It can also be given through acts of kindness, support, and time dedicated to your community and loved ones. Building and nurturing meaningful relationships is an essential part of a fulfilling life. When you live generously, you strengthen these connections.

Practical Steps to Live Generously

1. Setting a Budget for Giving

Living generously doesn't mean you should give beyond your means. It's about finding a balance that works for you. Start by setting aside a portion of your income specifically for giving. This allows you to be generous without compromising your financial stability.

2. Identifying Causes and Organizations to Support

Consider what matters most to you. Is it education, health, environmental conservation, or local community projects? Identify causes or organizations that align with your values, and focus your generosity on them.

3. Aligning Generosity with Personal Financial Goals

Make generosity an integral part of your financial plan. Align your giving with your financial goals. For example, if your goal is to achieve financial independence, consider how acts of kindness or charitable donations can support that aim.

Start today, and let generosity pave your way to a fully funded life!

3 Ways To Combat Inflation

 63% of Americans attribute their financial insecurity to inflation. In order to navigate through challenging financial times, it's essential to arm yourself with strategies that can help you combat the rising tide of inflation.

REVIEW YOUR EXPENSES

• Define All Income Sources: Create a list of all your income streams and explore opportunities for additional income.

• Outline fixed and variable expenses, while beginning to identify areas where you can potentially reduce costs. During challenging financial seasons, it’s important to prioritize essential spending (home, food, etc.) and lessen non-essential spending (eating out, overspending on entertainment, etc.)

COST MANAGEMENT

• Begin to implement cost-cutting strategies. Opt for store brands or generic products and share for discounts/coupons to reduce grocery expenses.

• Review your subscriptions and see if there are unnecessary ones you can eliminate. Additionally, contact your service providers for updated quotes to save money on cable, internet, etc.

• Build and maintain an emergency fund that covers at least one to three to six months of essential expenses.

PROFESSIONAL GUIDANCE

• If needed, find a financial coach to help identify your next financial steps and guide you through your personal finances.

There are ways to combat inflation! Implement these small changes to help yourself succeed during challenging financial times. We want to help you manage your money well during times of high inflation with the Inflation Busting Bundle!

Discover the tools and resources to equip you for success during challenging financial times. This full bundle includes:

• COURSE: Principles for Managing Money in Challenging Financial Times

• WEBINAR: How to Fight Inflation and Thrive

• 3 EBOOKS: On Budgeting, Debt Elimination, Bill Payment

• 1 PAGER: 10 Steps You Can Take Right Now 

• ​3 TOOLS: Weekly Budget, Monthly Budget, & Debt Freedom Date

Mutual Funds: Explained

Mutual funds can certainly sound confusing – especially when there are so many options available.  So for those who do not know what a mutual fund is, let me explain it the best I know how.

If something has been FUNDED, it means that money has been given to it.

If you and I come to a MUTUAL agreement, it means that we both were involved in making the agreement.

So if you and I have MUTUALLY FUNDED a project, then it means that we both provided money for the project.

A MUTUAL FUND means that you and I have both put our money in the same place.  It is not unusual for a mutual fund to have over 5,000,000 people MUTUALLY FUNDING the same investment.

So we have mutually funded an investment along with three or four million of our closest friends.  The amount you have invested is different from how much I have invested, but it is all in the same place.

So, we now all understand that we have mutually funded this investment and that it is called a mutual fund.  The next question to answer is: “Where does the money go once it is in the mutual fund?”

Well, each mutual fund has a specific objective.  Some mutual funds have an objective to produce income.  Others have an objective to maximize the long-term growth of the invested money.  Still others may have an objective to invest only in international companies.  The bottom line is that each mutual fund has a specific objective or charter.

Based upon a mutual fund’s charter, the mutual fund managers will purchase part-ownership in a lot of companies.

The Mutual Fund managers use the money provided by you, me, and three million of our closest friends to purchase ownership in anywhere from 50 to over 1,000 companies.  As these companies earn profits and grow, the value of the investment grows.  This means that each individual who owns a portion of the mutual fund can enjoy that growth as well.

I hope this post has helped understand exactly what a mutual fund is. Let me know below if you have any additional questions about mutual funds.

Are Your Savings Working For You?

You cannot prosper if you do not save. Saved money plays a crucial role in not just financial stability but being able to accomplish your plans, hopes, and dreams.

However, the traditional savings accounts offered by many brick-and-mortar banks often fall short in terms of helping your savings grow. The culprit? Low interest rates.

Let me ask you this: ‘Are your savings working for you?’ They should be!

High-yield online savings accounts, as the name suggests, offer a higher yield or interest rate compared to traditional accounts. These accounts are typically offered by online banks or financial institutions and are designed to make your money work harder for you.

Competitive Rates

• These rates are notably higher than what you'd find with traditional brick-and-mortar banks. While the exact rates may vary depending on the financial institution and market conditions, it's not uncommon to find online savings accounts with rates around 4%!!

Safety

• Just like traditional banks, many online banks are FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage for up to $250,000 per depositor, per insured bank. This means that even if the bank were to face financial difficulties, your deposits are protected!

3 Reasons Why It Is Important To Set Investment Goals

You set goals for your budget, for eliminating debt, even for amount of dollars saved…but are you setting investment goals? These goals can help you achieve your Fully Funded Life!

3 reasons why you should set investment goals:

1. Goals help you create clarity and focus:

   • Defining Your Objectives: Investment goals allow you to clearly articulate what you want to achieve. Whether it's saving for retirement, creating ‘x’ amount of passive income, or leaving a legacy, your goals give purpose to your investments.

2. Goals provide motivation and discipline:

   • Maintaining Commitment: Knowing exactly what you're working towards can provide a daily dose of motivation. Your goals serve as a reminder of why you're investing in the first place, and they can help you stay committed even during market uncertainty.

3. Goals give you the ability to measure your progress:

   • Tracking Your Success: Regularly reviewing your investment performance against your goals enables you to gauge how well you're doing. Are you on track to meet your objectives? If not, you can make adjustments and adapt your investment as you move forward.

Setting investment goals is not just a good financial practice; it's a fundamental step toward achieving your fully funded life.

Remember, investing is a marathon, not a sprint, and the goals you set today can pave the way for you to accomplish your plans, hopes, and dreams. So, take the time to define your investment objectives, and stay focused on them, your future self will thank you for it.

How To Locate Incredible Mutual Funds

Choosing the right mutual fund can be a daunting task if you're not sure where to begin. Here is a three-part approach to help you navigate the world of mutual fund investments and make informed decisions":

Determine Your Investment Category

Before diving into specific mutual funds, it's crucial to identify the investment category that aligns with your financial goals and risk tolerance. Make sure to consider factors such as your investment horizon, risk tolerance, and financial objectives.

Reviewing Mutual Funds

Once you've narrowed down your preferred investment category, it's time to review individual mutual funds.

1. Utilize Mutual Fund Screeners: To streamline your search, take advantage of online tools like CNN's Mutual Fund Screener and Morningstar's Mutual Fund Screener. These platforms provide a wealth of information on various funds. For example, you can set specific criteria, such as funds that have delivered an average annual return of 10% or more over the past decade. This filtering process can help you identify mutual funds that meet your criteria efficiently.

2. Check Your Retirement Plan Options: If you have access to an employer-sponsored retirement plan (e.g., 401(k), 403(b), Simple IRA, or TSP), review the mutual fund options available within the plan. Employer-sponsored plans often offer benefits like reduced fees, matching contributions, or other incentives that can boost your investment returns. Make sure to take full advantage of these opportunities to preserve and grow your wealth.

3. Seek Professional Guidance: Consider meeting with a financial advisor at least annually. Professional advice can provide you with a clearer perspective on your investments, help you set realistic financial goals, and make necessary adjustments to your portfolio. Financial advisors can also provide valuable insights into market trends and the performance of different mutual funds.

Analyzing Mutual Funds

When evaluating individual mutual funds, pay attention to the following characteristics:

• Age of the Mutual Fund

• Investment Growth

• Initial Investment Requirements

• Fund's Objective

Choosing the right mutual funds involves a systematic approach that combines research, analysis, and professional guidance. Remember that not every mutual fund will be suitable for your financial objectives, so be prepared to revisit your search criteria and start over if needed.

Do You Have A Vision For Your Money?

Do you have a vision for you money? Without one, you might find yourself spending aimlessly, uncertain of how to accomplish your goals, or wondering where you money ends up going each month. Cultivating a strong financial vision that will guide your money towards the life you desire.

Define Your Financial Goals:

Start by identifying your financial aspirations. What are you striving to achieve in the next month, the next year, next 3 years? Whether it's paying off debt, saving for a home, building an emergency fund, or investing for the future, write down your specific financial objectives. These goals will serve as the foundation of your financial vision.

Visualize Your Ideal Life:

Imagine your life as you want it to be in 2024 and beyond. What does your Fully Funded Life look like? Visualize the aspects of your life that financial stability can enhance – from family vacations and a comfortable home to peace of mind and a secure retirement. This visualization can serve as a powerful motivator.

Prioritize Your Spending:

In a world filled with constant financial demands, it's essential to prioritize your spending based on your goals. Create categories for your expenses, ranking them by importance. Allocate your money accordingly, ensuring that the most significant portion goes toward achieving your primary objectives.

Track Your Progress:

Regularly monitor your financial progress to ensure you're on the right path. Use tools like budgeting apps and spreadsheets to track income, expenses, and savings. This real-time feedback can help you make necessary adjustments and stay committed to your vision.

Celebrate Milestones:

Recognize and celebrate your financial achievements along the way. Whether it's paying off a credit card, reaching a savings milestone, or sticking to your budget for several months, acknowledge your progress as a motivator to keep moving forward.

Your financial vision should be the guiding light that leads you toward your Fully Funded Life. It's not just about money; it's about turning your financial resources into a means of achieving your dreams and securing your future. Embrace this vision, and you'll find that your money can become a powerful tool for building the life you've always wanted.

Money Lies: I Can't Save & Invest

Have you been telling yourself this lie? “I can’t save money and invest.” That is a LIE!

This lie keeps people broke for their entire lives. When we are young, we believe we have forever to prepare for retirement. After all, young people and young families need to provide for their household, their children, and are just starting out in life. There never seems to be enough money to put away for a rainy day or for the future.

If you tell yourself this money lie, there never will be enough money to save or invest. If this is you, TODAY is the day you stop believing the lie and begin funding the future!

Here are some practical steps you can take to explode your financial future:

1. Understand compound interest.  Compound interest is what will allow an investment of $100 per month to reach $1,176,477 in just 40 years! If you just save a little ALL of the time, you will end up with a LOT at the end of your time! Use our “Investment Value Calculator” to see how much you could save!

2. Take advantage of retirement plan matching.  If you work for another company or organization, there’s a good chance your retirement plan contributions are eligible for matching contributions from your employer. Whether it is a $0.50 per $1.00 match or a full “dollar for dollar” match, it is FREE money! Visit your Human Resources Department TODAY to ensure you are receiving the full company match.

3. Make saving and investing MONTHLY (at least) and AUTOMATIC.  If you have to rely on yourself to write a check each month, your savings plan could be in great danger! Make it automatic – have it deducted from your paycheck before you ever receive it or have it zapped out of your bank account at a predetermined date each month.

You will be on your way to becoming a wealthy individual who will be able to live a life of generosity like you’ve never dreamed!

What Are Oxen?

Where there are no oxen, the manger is empty, but from the strength of an ox comes an abundant harvest. Proverbs 14:4

This verse had a profound impact on me as I went through my financial freedom journey. From this verse, I realized that I could either live a life with an empty manger or with an abundant harvest and the choice was up to me. In the pursuit of financial abundance, I could choose to rely on myself and my own abilities, or I could acquire oxen to help me. Which do you think I chose?

In my book, Oxen, I have outlined the different types of oxen, how to acquire oxen, and how to lead oxen. These principles will help you maximize your financial resources and experience an abundant harvest, just as I did so that you can fund your biggest and wildest dreams.

Most people earn money by showing up to work and in turn, they get paid. If you do not show up to work, you do not get paid. Oxen can allow you to earn money whether you are working or not! There is only so much time in a day and therefore there is only so much work that one person can physically put in. This is why oxen are so important: they allow you to eliminate the time barrier.

Oxen can do things you cannot do. They have the ability to carry a load that you cannot carry and can endure more than you can endure. Oxen can be trained and can work together and accomplish even more. They work rain or shine, night and day so that you do not have to. They can multiply and take you places you may have only dreamed about. Oxen can provide.

Good Vs. Bad Debt

At IWBNIN, we talk a lot about reducing and eliminating debt. So this might come as a shock to you….

Not all debts are created equal and there is a such thing as good debt! Let’s break debt down into four different categories ranging from terrible to good:

1. Terrible Debt: This debt is the worst type of debt you can have. This debt includes payday loans and pawn shop loans. These loans typically have a VERY high interest rate. When I say very high, I mean that I once saw one that was 640% interest! I think we can agree that is terrible.

2. Bad Debt: This debt may not be terrible but it is still pretty bad. This includes your credit card debt, unsecured signature loans, car loans, etc. Yes you read that correctly, car debt is not considered good debt. The average new car drops in value $100 per week during the first four years.

3. Better Debt: I only classify one type of debt as better debt and that is home mortgage debt. Every time you make a payment some of this money is going into home equity so hopefully when you go to sell it, it will have gone up in value and you will have made money.

4. Best Debt: If you are going to have debt, business debt is the best debt you can have. This is where I would categorize rental properties, buying franchises, buying into a small business, etc. This type of debt will allow you to scale your business and make more money.

All debts are not created equal and there are some that are way, way worse than others. Make sure you take this into consideration any time you are contemplating going into debt so that you can make the right financial decision.

3 Things Sabotaging Your Retirement

Retirement is a time in life that many of us eagerly look forward to. It's a period when we hope to enjoy the fruits of our labor, travel, spend time with loved ones, and pursue hobbies and interests. However, achieving a comfortable retirement requires careful planning and financial discipline.

Let’s discuss three common mistakes that can sabotage your retirement if you’re not careful!

You Haven't Started Saving

Time can be your most valuable asset in building a substantial retirement fund. The power of compounding allows your investments to grow exponentially over time. When you delay saving for retirement, you miss out on the potential for your money to grow.

Start saving for retirement as soon as possible, even if you can only contribute a small amount initially. Set up automatic contributions to retirement accounts like a 401(k) or an IRA, and increase your contributions as your income grows.

You Haven't Determined Your Retirement Nest-Egg Amount

Having a clear retirement savings goal is crucial for a successful retirement plan. Without a specific target in mind, you may not know how much you need to save or whether you're on track to meet your retirement goals. Determine your retirement nest egg amount HERE! Once you have a target amount, you can create a savings plan to work towards that goal.

You Have Pulled Money Out of Retirement Accounts Early

Early withdrawals from retirement accounts, such as a 401(k) or an IRA, can result in penalties, taxes, and lost potential growth. These accounts are designed to provide financial security during retirement, and withdrawing funds prematurely can significantly derail your retirement savings plan.

Planning for retirement is a lifelong journey that requires commitment and financial discipline. Avoiding common mistakes will help you achieve your retirement plans, hopes, and dreams!

Take The Next Step: Start Saving!

One of the largest issues I see during our one-on-one financial coaching meetings is the inability to save money.

Here are some facts about saved money:

• Saving money is essential to long-term sustainability

• Saving money relieves stress

• Saving money allows you to take a chance

• Saving money allows life to happen (job loss, disability, pay cut, injury, etc.) without going broke!

But you already knew that part.  We all know that we are supposed to “save money for a rainy day.” Yet, even though we KNOW how important it is to save money, most people fail to do so.

I want to challenge YOU to take the next step!

• If you have negative savings (no money plus overdrafted accounts and debt), the goal is to bring you to zero. 

• If you are at zero savings, the goal is to get to at least $2,500 in a beginner emergency fund. 

Ways To Start:

Automatic Draft From Paycheck

Establish a savings account and have the money drafted from every single paycheck.  Whether it is $25 or $250 per pay period – just SAVE!  You KNOW that the car is going to break down.  You KNOW that the school is going to send home a surprise expense.

By establishing this draft, it allows the money to be “out-of-sight.”  When money is out-of-sight, it can be out-of-mind.  This allows the account to grow without you robbing it!

Create An Escrow Account For Known, Upcoming Expenses

For those unfamiliar with an escrow account, it is a savings account that is established by a mortgage company.  The mortgage company totals the annual cost of property taxes and homeowner’s insurance and divides it by the number of payments being made each year.  The mortgage company then pays for the taxes and insurance from this escrow (savings) account.  For example, if the property taxes are $1,200/year and the insurance is $600, then the total amount needed each year is $1,800.  The mortgage company will collect $150 extra with each monthly payment to place into the escrow account.

An escrow account smooths out the cost over a year – instead of having to pay for it all in one month.  It tightens the monthly budget, but having a fully funded escrow account sure is AWESOME when vacation arrives and the money has already been saved to pay cash for it!  Those who have a mortgage with an escrow account will testify to the fact that they never worry about paying for the taxes and insurance – ask someone!

Take the next step and start saving today!

Savings - A Vehicle To Accomplish Your Dreams

What is margin? How does it relate to savings?

Margin allows you to create space within your financial life to weather unexpected challenges and seize future opportunities without compromising your relationship or your dreams. Creating margin through savings can give you the ability to accomplish your dreams freely! 

There are two types of margin you should have in place: 

1. Cash On Hand Savings (Financial Reserves)

2. Monthly Savings (Operational Margin)

1.  Cash On Hand Savings (Financial Reserves)

Having money set aside in savings is the foundation for financial security. It enables you to focus on your goals and aspirations without constantly worrying about making ends meet. Financial reserves allow you to contemplate and invest in your future, whether that involves buying a home, starting a business, or embarking on exciting adventures. It's like having a safety net that ensures you can handle unexpected expenses without strain. In short, cash on hand allows you to sleep a lot better at night!

GOAL: Aim to have at least three months' worth of operating expenses saved in your emergency fund. This ensures you can navigate through challenging times without jeopardizing your financial stability.

2.  Monthly Savings (Operational Margin)

Operational margin for couples is all about managing your expenses in a way that allows you to consistently save money each month. Having a surplus of funds each month not only ensures that your current bills are covered without depleting your financial reserves but also paves the way for realizing your dreams.

GOAL: Strive for a 15 to 20-percent profit margin in your budget. This margin will enable you to start funding your cash-on-hand savings and accelerate your journey toward achieving your dreams.

Accomplishing Your Dreams Through Margin:

Through the margin created by savings, you will be able to experience: 

• Financial Freedom: Savings creates a financial safety net that allows you to pursue your dreams with confidence. Whether it's starting a business, starting a family, taking a dream vacation, or investing in further education, having savings provides you with the freedom to turn your dreams into reality.

• Reduced Stress: Savings also eases the financial stress that can strain a daily life. With surplus funds each month, you can focus on financially thriving and making plans for the future, rather than worrying about making ends meet.

• Shared Goals: When you work to maintain and build your savings, you'll naturally identify your dreams and aspirations, creating a defined vision for your future.

• Flexibility: Whether you decide to change careers, relocate, or pursue a new passion, having margin in your finances ensures you have the resources to make those choices without hesitation.

By prioritizing savings, you can create a solid financial foundation that gives you the freedom to accomplish your dreams. So, where are you on this journey toward financial margin, and what dreams will you pursue? Remember, savings is your vehicle to accomplish your dreams!

Have You Shopped Insurance Recently?

It’s not everyone’s favorite topic, but it sure is important: Insurance. Let me ask you a few questions:

• When was the last time you thought about insurance?

• Where are you at with insurance? Do you have it?

Today, let’s focus on home and auto insurance. If you are a homeowner, you should have homeowner’s insurance to protect your dwelling and the contents inside. If you are a renter, you should have renter’s insurance to protect the contents of your dwelling.

• When was the last time you obtained quotes for both home and auto insurance?

It is very, very important to carry both. However, that does not mean that you should pay the highest dollar amount possible!

Here are a few tips:

• If you have auto insurance or some other insurance, ask for a “bundle” discount.

• Shop around for the best rates every two years.

• Obtain a minimum of three quotes – one of them being from an independent insurance agency.

• Obtain quotes with different deductibles. Consider increasing the deductible to reduce your premium costs.  If you are managing your money well and have built your emergency fund to at least three months of expenses, you may consider increasing your deductible.  This can result in a substantially lower insurance premium.

Take the next step and get your new insurance quotes this month!