Top 5 Ways To Improve ROI

Everyone wants to receive a positive return on their investment. We are delaying the use of our money so that we can have more money in the future – at least that is the goal. However, many people are seeing negative ROI over the past several years. These are the five rules that can help you maximize your money!

1. Don’t invest for the short-term.

I am just not smart enough to make sense of every single nuance of the entire world. And sometimes seemingly unrelated items have a major impact on financial performance. For this reason, I spend a great deal of time thinking about which investments to choose before I acquire them, and then I hold them for the long term. Day-trading (or anything like it) has a feeling very comparable to gambling in Vegas, and it usually winds up with the same result.

2. Diversify Your Investments

Don’t think just about the stock market. I have personally invested about 50% of my money into publicly traded stocks and mutual funds, but my best returns on investment over the past ten years have occurred through private investments. When managed correctly, rental real estate is an excellent investment that provides an immediate return through rental payments and a long-term return through property value appreciation. Other alternative investments include starting a business, investing in another’s business, land, commercial real estate, and private bond offerings.

3. Maintain Substantial Margin In Cash

If I do not maintain liquidity, it becomes very difficult for me to maintain rules One and Two.  Without financial margin, I am more likely to be “jumpy” and leap out of investments when they trend downward.

Having substantial cash on hand also allows me to take advantage of tremendous opportunities – many of them may be “once-in-a-lifetime” opportunities that will require cash money right away.  If all of my money is tied up in investments (or all of my money is gone), then I am not able to take advantage of these great investments.

For me, it is helpful to keep 10-15% of my money in cash or cash equivalents.  I hold a lot of my savings in online FDIC-insured savings accounts that pay interest equivalent to a two-year CD, but do not have the liquidity issues that CDs have.  I really like Capital One 360 – it’s my favorite!

4. Conduct Trades Online

Brokerage commissions and fees can consume substantial portions of an investment’s return – especially when one accounts for the fact that the fees continue even when the market value drops.

I personally use Sharebuilder for my online trading platform, but all of the online trading platforms like Scottrade, E*Trade, and TDAmeritrade are great as well.  There are numerous ways to learn more about how to invest in stocks and bonds, and it is important to gain that knowledge.  However, once you are ready to roll with the actual transaction, the online route is much more economical and does not require a phone call and a reliance on a broker to execute the trade.

5. Invest In What You Know

I don’t invest in random items that I have “heard” are good investments because it will be extremely difficult or even impossible for me to know if things are going well or how certain news might impact that investment.  I like technology.  This means that I naturally follow what is happening in the technology market.  I’m a consumer of their products.  When I see a good solution or product, I know it because I am directly impacted by it.  That means I am a more informed investor when it comes to technology companies.  I love manufacturing, and I continue to watch and monitor what is going on in the world of manufacturing.  It also means I am an investor in it.

My dream of “helping people accomplish far more than they ever thought possible with their personal finances” has been the largest single investment I have ever made – because I BELIEVE IN IT and because I KNOW IT.

Navigating the Saver/Spender Dynamic in Marriage

Are you and your spouse on opposite ends of the spending spectrum? Month after month do you consistently feel like you’re not on the same page? If so, you're not alone—many couples wrestle with this challenge. 

When one of you identifies as the 'spender' and the other proudly wears the 'saver' badge, navigating the saver/spender dynamic in marriage may initially feel like a delicate financial balancing act. But fret not – balance is possible! Here are a few tips to find financial harmony in your marriage: 

For The Spenders: Establishing Accountability and Setting Goals 

Create A Realistic Budget:

Kickstart the journey towards financial accountability by developing a realistic budget. This doesn't mean your spouse is scrutinizing every transaction, but rather it's about keeping both of you on the same page. Allocate specific amounts for necessary expenses, and importantly, set aside a dedicated portion for discretionary spending. This approach allows the spender in your relationship to enjoy purchases they desire while maintaining financial boundaries.

Set Clear Financial Goals:

Define short-term and long-term objectives, such as paying off debt, saving for vacations, or contributing to retirement. These tangible goals provide purpose and act as a guide for thoughtful spending decisions. Regularly engage in conversations with your spouse about your financial goals to create a supportive environment, reinforcing informed spending decisions.

For The Savers: Balancing Saving, Enjoyment, and Opportunity

Creating a 'Fun' Line Item:

Strike a balance between fun and financial responsibility by incorporating a designated 'fun' line item into their budget. Allocating a reasonable amount for entertainment, dining out, or leisure activities with your spouse allows guilt-free enjoyment within predetermined limits that won't compromise your financial goals.

Seek Opportunities To Build Wealth

While saving is crucial, don't let it hold you back from potentially lucrative investment opportunities. Investing involves risks, but it also presents the chance to build wealth. Adjust your mindset to see investments as strategic moves that can contribute to your financial well-being over the long term.

Navigating the saver/spender dynamic in marriage requires understanding, compromise, and open communication. By adopting strategies inspired by both spenders and savers, you can start creating financial harmony in your marriage. Remember, finding the right balance is key to a fully funded life! 

How 'Savers' Can Add Fun Into The Budget

How many of you would identify as a ‘saver?’ Do you find it difficult to incorporate fun in your budget?

Being a saver doesn't mean forgoing fun; it's about finding a balance that allows you to enjoy life while still meeting your financial goals. Here’s how you can do so without compromising your saving habits.

• Create a ‘Fun’ Line Item

• Instead of restricting yourself entirely, create a designated ‘fun’ line item within your budget. Determine a reasonable amount of money that you can allocate to entertainment, dining out or leisure activities each month. This way, you can enjoy guilt-free spending within the allocated limit, knowing that it's part of your financial plan.

• Explore Cost-Effective Entertainment Options

• Just as you would look for coupons and discounts for groceries or oil changes, explore cost-effective entertainment options in your community! Fun doesn't have to come with a hefty price tag. Attend local events, explore parks, or engage in outdoor activities that don't require significant spending. Many communities offer free concerts, discount museum passes, or sales on fitness classes, providing enjoyable experiences without straining your budget.

Being a saver doesn't mean living a life devoid of enjoyment. By incorporating these tactics, you can strike a balance between saving for the future and enjoying your fully funded life! 

Be 100% Debt Free!

Picture this: a life where your hard-earned dollars aren't shackled to debt payments and mortgages. How much extra cash would you have in your pocket every month? We're talking about potential savings ranging from $1,000 to $3,000! Imagine the possibilities!

My friend and financial hero, David Bach, once said - ‘it's not just about choosing between prepaying a mortgage or investing in stocks and bonds. The real question is: which decision propels you toward financial freedom and an early retirement?’

Drawing from his 9 years at Morgan Stanley, David discovered something profound. Clients who fast-tracked their journey to being debt-free, especially by paying off their mortgages early, were retiring a solid 5 to 10 years earlier than others still struggling with debt. 

Let's break it down with some numbers. Take a $150,000 30-year mortgage with a 6.0% interest rate. 

The power of paying that off early is not just about numbers on paper; it's about reclaiming years of your life for the things that truly matter.

Are you looking for more resources? Dive into our free tools today!

2024 is the year we break barriers, shatter financial ceilings, and declare loud and clear - we are debt-free, and the house is officially ours!

How To Create Accountability As A 'Spender'

Raise your hand if you’re a self-proclaimed ‘spender?’ 

A recent poll conducted by the New York Post revealed that 56% of Americans identify themselves as "spenders," indulging in purchases they truly desire. 

While treating oneself occasionally is perfectly acceptable, establishing accountability for spenders is crucial to maintaining financial well-being and stability. 

3 Strategies To Establish Financial Accountability 

1. Create A Realistic Budget:  One of the most effective ways to establish accountability for spenders is through budgeting and the tracking of expenses. Create a monthly budget that outlines all of your expenses and allocates a specific amount of spending money.

2. Set Clear Financial Goals:  This can be a powerful motivator for responsible spending. Start by defining your short-term and long-term objectives, such as paying off debt, saving for a vacation, or contributing a certain dollar amount towards retirement. Having tangible goals creates a sense of purpose and can help you think twice before making impulsive purchases. 

3. Find A Trusted Accountability Partner:  Pairing up with a trusted friend, spouse, or financial advisor creates a support system to hold each other accountable for your spending decisions. Regular check-ins, discussions about financial goals, and shared progress can significantly impact and reinforce responsible spending habits.

Remember, being a spender doesn't have to conflict with being financially responsible; it's all about finding the right balance.

5 Smart Ways To Put Your Tax Return To Use

It's that time of the year again – tax return season! Instead of letting that extra cash burn a hole in your pocket, let's turn it into a powerful tool for financial growth.

Here are 5 smart ways to make the most out of your tax return.

1. Put towards paying off debt:

   • Consider using a chunk of your tax return to tackle lingering debts. Whether it's high-interest credit cards, student loans, or other outstanding balances, putting your tax return towards debt repayment can be a game-changer!

2. Build an emergency fund

   • Life is unpredictable, and an emergency fund is your safety net. Allocate a portion of your tax return to start or build up your emergency fund.  It's not just about being prepared for the unexpected; it's about facing life's curveballs with confidence and financial security.

3. Increase your savings:

   • Use your tax return to boost your existing accounts or kickstart new ones. Whether it's a retirement fund, a high-yield savings account, or an investment portfolio, your tax return can be the catalyst for future financial growth.

4. Make an additional mortgage payment:

   • If you own a home, consider using your tax return for home improvements that add property value or additional mortgage payments. Calculate how much you could save on your mortgage by adding extra payments.

5. Contribute to education:

   • Use your tax return to fund education – whether it's furthering your own skills, supporting a family member's education, or contributing to a 529 plan. 

This tax season, let's not just see our returns as numbers on a check. Let's view them as opportunities to transform our lives. Whether it's breaking free from debt, creating financial stability, or increasing savings, wisely using your tax return can be the first step towards your fully funded life. 

3 Essential Steps to Cultivate Healthy Financial Habits

Financial success isn't merely about luck; it's about adopting the right habits and taking intentional steps towards a secure financial future. Did you know that 83% of people that set financial goals feel better about their finances after just one year? There is transformative power in setting clear financial objectives! Here are three essential steps that can help you cultivate healthy financial habits and pave the way toward your fully funded life. 

Step 1: Establish Clear Financial Goals

Setting clear, achievable financial goals is the foundation of a sound financial plan. When you set goals, whether short-term or long-term, you gain a clear direction for your financial decisions. Outline your goals for saving, investing, debt elimination, and retirement planning. These goals should include actionable steps toward achievement. By establishing your financial goals, you're on a path to feeling more in control and confident about your financial future.

Step 2: Create and Stick to a Realistic Budget

Budgeting is the roadmap for your finances. It involves tracking income, categorizing expenses, and understanding where your money goes each month. It's not about restricting yourself but about making conscious choices. By budgeting, you gain clarity on your spending patterns, identify areas where you can cut back, and direct more funds toward your financial goals. It's a tool that allows you to take charge of your finances and make informed decisions.

Step 3: Prioritize Saving and Invest Wisely

Saving and investing are cornerstones of financial stability. Building an emergency fund is crucial for navigating unforeseen circumstances, providing a safety net during challenging times. Moreover, understanding investment options and strategies enables you to grow your wealth over time. Automating savings and investments makes these habits consistent and ensures you are working towards a healthy financial future! 

Remember, financial habits are not formed overnight - they require consistency and dedication. As you set your financial goals, create and maintain a budget, and prioritize saving and investing, you're laying down the groundwork for a fully funded life.

Don't underestimate the power of these steps. Embrace them, make them a part of your routine, and witness the positive transformation they bring to your personal finance journey. 

You Can Not Borrow Your Way Out of Debt

I have seen so many people attempt to borrow their way out of debt.  I have personally tried to borrow my way out of debt.  The problem is that it does not work!

Here are some ways I see people try to borrow their way out of debt:

• Debt Consolidation Loan  Roll all of the credit cards into a single loan.

• Home Equity Loan  Roll all of the credit cards and car payments into a single loan using home equity.

• Loan From The Parents  Roll all of the debt into a single loan from Mom and Dad.

I have never seen it work because these "solutions" only address symptoms!  You must address the root cause of what created the debt in the first place.

It is necessary to change spending behavior and money management behavior. 

I have seen a lot of people use the crutch of "it is medical bills" and expect to receive a free pass on the debt.  That is so frustrating because in nearly all cases, the reason the medical bills exist is because the individual or family opted out of carrying health insurance.

I have seen a lot of people use the crutch of "I lost my job" and expect a response of "Oh, that makes your debt OK."  But it would have never happened if they had made an emergency fund of three to six months of expenses their top priority instead of a house, cars, furniture, and numerous other "gotta-have-it" purchases.

You simply can not borrow your way out of debt.  It requires a written plan and a ton of focus.  You can start your journey by reading THIS and preparing your own written spending plan using our FREE TOOLS.

Benefits of an IRA

You have probably heard something at some point about making contributions into an Individual Retirement Account (IRA) to prepare for retirement. Retirement and investing can seem scary and difficult or only for the super-rich but I’m here to tell you: That is a lie. You can (and should!) begin investing for retirement and an IRA is a fantastic way to do just that.

The most popular types of IRA’s are the Traditional IRA and the Roth IRA. These investment vehicles are great ways to accumulate retirement money although they differ in their taxation. 

When you decide to invest into an IRA, regardless of the one you choose, you can expect to experience a variety of benefits.

Taxation: When you invest into a Traditional IRA, those contributions are made with “pre-tax” dollars which means that you can deduct them from your income. In a Roth IRA, contributions are made with after-tax dollars. This means that while you will not get a tax deduction, you will not have to pay any taxes when you withdraw the money in retirement. The tax benefits of both accounts can provide great traction when accumulating money for retirement.

Automation: One of the reasons IRAs are so popular is because they allow you to automate your savings. These accounts are incredibly easy to start and with a simple bank draft, you can make sure that you are investing every single month.

Compound Interest: After you have set up your IRA and automate your contributions, you will eventually be able to see the 8th Wonder of the World: Compound Interest. This means that once you start adding money you will start earning interest on that money. And then interest on THAT money. Your money will begin to work for you.

These are only a few of the benefits that you’ll experience when investing into an IRA. 

Ultimately, you want to make sure that you are taking advantage of every benefit that you can when you’re trying to save money for retirement. Whether you are fast approaching retirement or just getting started in life, using one of these accounts can greatly help you accumulate money so you can live your best life when you eventually leave the workforce.  

Financial Habits Matter: 3 Reasons to Begin Your Journey Now

Financial habits play a pivotal role in shaping our present and future. Whether you're just starting in your personal finance journey or looking to kickstart some new financial disciplines,  here are three compelling reasons why financial habits matter: 

Reason 1: Building a Strong Foundation for the Future

By implementing financial habits, you create a solid financial foundation. Habits like budgeting, saving diligently, and reducing debt lay the groundwork for a stable financial future. By consistently practicing these habits, a compounding effect is created. Over time, this disciplined approach shapes a future where financial stability is not just a goal but a tangible reality.

Need help creating a financial plan?

Reason 2: Creating Financial Margin for Peace and Flexibility

Financial margin, the space between income and expenses, allows you to navigate financial challenges without starting back at ground zero. However, statistics show that 72% of households do not have a written financial plan, leaving them vulnerable during challenging financial times. - Schwab

Cultivating healthy financial habits generates this much-needed margin. It acts as a safety net during emergencies and unexpected turns in life, reducing stress and providing the flexibility to handle challenging situations without adding financial burdens.

Reason 3: Achieving Your Plans, Hopes, and Dreams 

Imagine the freedom to travel, pursue further education, start a business, or retire early without the constraints of financial worries. It's no wonder that 83% of people who set financial goals feel better about their finances after just one year. - BusinessWire Sound financial habits provide you with the discipline and monetary resources to achieve your plans, hopes, and dreams! 

Beginning the journey towards better financial habits now is not merely a choice; it's an investment in your future. Take that initial step, whether it's setting clear financial goals, creating a budget, or paying off debts systematically. Statistics show that these steps make a tangible difference, bringing you closer to your fully funded life. 

The Non Financial Benefits Of A Healthy Savings Account

We all know that it is a good idea to prioritize our savings accounts. Yet, 63% of Americans are living paycheck-to-paycheck and would experience major financial complications from one missed paycheck. I used to live this way. In addition to the expected financial challenges, my poor money management skills carried stress into every facet of my life. If I had known all of the non-financial benefits of prioritizing the establishment of financial margin, I’m convinced I would have avoided a lot of unnecessary stress. Perhaps by sharing these benefits, I can help give someone the final nudge needed to begin to prioritize saving money.

Benefit #1  MARGIN = SPACE

When you have a healthy savings account, it allows you to accommodate “life happens” events without having your entire financial world thrown into chaos. In the I Was Broke. Now I’m Not. Ladder (free download here), we recommend starting with a goal to build your savings up to equal one month of expenses (Rung #2) and then, after completing a few other financial steps, build on up to a minimum of three months of expenses (Rung #5).

You know what I mean about “life happens” events, right? These are things that are going to happen regardless of whether or not you have money saved for them. Here is a list of several common “life happens” events:

• Appliance failure (dryer, washing machine, hot water heater, air conditioner, furnace, dishwasher, etc.)

• Car repair (water pump, battery, failed bearing, gasket leak, etc.)

• Home repairs (leaky roof, mold, plumbing leak, driveway wash-out, etc.)

• Emergency trip out of town

• Sickness or injury

• Job layoff or reduction in hours

When you have prioritized and built financial margin, you can accommodate these expenses without them having an immediate and direct effect on your ability to prosper.

It all adds up to less stress and better sleep. Isn’t that worth any sacrifice that is necessary to achieve margin?

Benefit #2  MARGIN = FOCUS

How much time do you spend thinking about your finances each day? Each week? Each month? For most people, money is a near-continual thought. Is it because they are greedy? Is it because they love money? Is it because it is their favorite topic?

I submit that the answer to all three of these questions is almost always a firm, “No!”

If these aren’t the reasons, then why do they spend so much thinking about money? The biggest reason is because they lack financial margin. As a result, they are in a constant state of “juggling” financial obligations. Because of their paycheck-to-paycheck situation, they spend inordinate amounts of time just figuring out how to survive – with little to no time left to consider how they might thrive.

A completely different scenario is created by the establishment of financial margin! The countless hours spent stressing about money, on the phone with creditors, and balancing various bills is instead able to be utilized to focus on the future. It is amazing how powerful focus can be in your career, with your family, and for your money.

If you’ve never experienced the power of financial margin, you will find a freedom to focus, unlike any time you’ve ever enjoyed before! I’ll never forget this moment for me. It was in February 2004. I chose to put my tax refund into the bank to establish margin. It was a life-changing decision. It actually had a physiological effect on me! I could physically breathe in a way that I had never experienced before.

Once I discovered that financial margin allowed me to focus – on bigger picture items, on thriving instead of surviving, on pursuing a dream, on my career, on my family – I never allowed myself to live paycheck-to-paycheck again.

If you feel like you’re living in a constant state of distraction due to a lack of margin, take steps today to remedy the situation. You’ll never regret it!

Benefit #3  MARGIN = SPEED

Have you ever had to park a car in a garage that had a narrow entrance? A garage entrance so tight that you feared that you would knock both mirrors off of the car each time you tried to park in it? As a result, you approached the entrance very slowly and cautiously.

If you had to park in a garage with a double-door entrance, you could screech in at 30 mph and still safely make it into the entrance.

This is exactly the case with financial margin! Without financial margin, a person is forced to proceed with great caution for fear of making a major financial error. One misstep and there will be financial damage! With a lot of savings, you can move more freely and with greater speed. This is a wonderful benefit!

Have you ever noticed that people with money tend to get better financial deals? They are the ones who purchase a house, business, land, and investment at a major discount. Why? Because they had money ready to do the deal! They had margin!

Back when I was broke without financial margin, I attempted to purchase a business. Think about that statement for a minute. I tried to purchase a business without any money. Do you think I was successful? Absolutely not! They looked at me incredulously and laughed me out of the building. I resolved to get better instead of bitter.

Flash forward to six years later. I had indeed gotten better by prioritizing financial margin, and I found a farm for sale at a steep discount (it was in the middle of the Great Recession). Because of margin, I was able to close on the deal in 11 days from the date I first walked on the land. Speed. Enabled by financial margin. It’s a wonderful benefit.

Help! I Can't Pay My Bills

“I can’t pay my bills!”

How many of you have said this recently?  Have you heard friend or family member say this?

This is post is written for those who are struggling mightily with their finances during challenging economic times. These practical tips and tools can help you walk out of this situation and into financial freedom.

– Prepare A Written Spending Plan

There is so much power in a written spending plan! I never realized where all of my money was going until the day that I began planning my spending.

You might say, “But Joe, I know that I can’t pay my bills. My expenses are more than my income so why should I even bother with preparing a spending plan?”

I would respond with this answer. “It is hard to slay a dragon if you do not know how many heads it has!” A spending plan will ensure that you know the ACTUAL situation instead of the IMAGINED situation.

Prepare your plan – even if you know it is going to be awful. This is the start of your journey to financial freedom!

Access our budgeting resources to get started on your plan!

– Ask Questions

It is extremely important to ask questions that help define the true root cause of the issue.

When I am counseling someone experiencing this sort of situation, I have a series of questions I ask to help me grasp the issues. Here are some of the questions for which I am seeking answers. These are not in any particular order.

•  “What Was The Cause Of This Situation?”

Ultimately, I am trying to determine if the current situation is the result of a long series of financial decisions or the result of a catastrophic event (job loss, medical issue without insurance, death of income provider, etc.).

• “Is This An INCOME Or An OUTGO Issue?”

I want to see where the money is going. That is why Part 1 is so important. The spending plan will help you more clearly determine the answer to this question. From experience, I have seen that it is an OUTGO issue in most cases.

• “What Are The Required Debt Payments?”

Is this unsecured revolving debt (credit cards) or is this installment debt on an asset (car, boat, motorcycle, etc.)? This question will be key for Step 3 of this post.

• “Is There Something That Can Be Sold?”

If there are items that can be sold, this needs to be fully investigated to understand how it can help the situation. Selling something like a motorcycle can help bridge your “gap” to help you prevent racking up debt.

• “What Expenses Can Be Stopped?”

Are there any “extras” in the OUTGO? One example of this is nonessential subscription services like Netflix or Hulu.

• “How Can INCOME Be Increased?”

An extra job or tons of overtime may not be appealing, but living in a squalor of debt with no hope is even worse! It is very important to investigate short-term ways to increase income to get out of the current late bill payment situation.

“I Can’t Pay My Bills” But I CAN Do Something!

Not being able to pay your bills can feel crippling, but I want you to know that you CAN help your situation.

We want to be able to help you along the way. Visit our Next Steps and Tools pages on our website for free resources to equip you on your journey.

By identifying your gap and taking action it will allow you to maximize the dollars you do have and minimize how much you spend. These actions will enable you to prosper on the other side of this. You can do this!

Pay Off Your Mortgage in 10 Years or LESS!

Owning a home is a significant milestone, but the long-term commitment of a mortgage can feel overwhelming. However, there are effective ways to expedite the process and achieve the dream of a mortgage-free life sooner than expected. Here’s how to pay off your mortgage in 10 years or LESS! 

1. Lower Your Interest Rate

Refinancing involves replacing your current mortgage with a new one, typically at a lower interest rate. It's essential to evaluate the current interest rates and compare them with your existing rate to determine potential savings.  Before proceeding with refinancing, consider the associated costs such as closing fees and appraisals. Calculate how long it will take to break even on these costs based on your monthly savings from the reduced interest rate.

2. Pay Extra

Consider how much more money you could be adding to your mortgage payments month over month. Not sure, visualize the difference of extra payment with our Early Mortgage Payoff Calculator! Input your interest rate, real loan balance, and the principal and interest portion of your payment into this calculator. Plug in how much extra you can pay per month and this tool will show you how much sooner you can pay off your mortgage, and how much you can save on interest! 

Want to see each payment and how much closer you are to your payoff goal?!

You can pay off your mortgage in 10 years or less! By lowering your interest or diligently making extra payments, you can take significant steps towards owning your home outright. Tailor these approaches to your financial situation and set yourself on the path to achieving financial freedom sooner than you ever imagined! 

The Benefits of Change: 5 Key Reasons to Reboot Your Financial Habits

Let's face it - change can be a tough pill to swallow. Most of us prefer the comfort of routine, even if it means sticking to old financial habits that might not serve us well. But here's the truth: change can improve your financial situation.
As we step into 2024, let's unpack why rebooting our financial habits is crucial, even if it means stepping out of our comfort zones.

1 - Financial Focus

A reset in your financial habits serves as a compass guiding you toward your goals. By aligning your habits with your financial objectives, you gain an attentive focus on what truly matters. This focus ensures each monetary decision you make takes you one step closer to accomplishing your goals. 

2 - Financial Discipline

Think of reshaping your financial habits as a workout routine for your wallet. It cultivates discipline, teaching you to allocate resources wisely, spend consciously, and save diligently. After establishing good habits, this discipline becomes second nature! 

3 - Financial Accomplishments

Your plans, hopes, and dreams shouldn't remain in the realm of wishful thinking. A reset in your financial habits can pave a clear path toward making these aspirations a reality. Whether it’s owning a home, becoming debt-free, or starting a business, rebooted financial habits act as a launchpad for transforming dreams into tangible accomplishments.

4 - Reduce Financial Stress

Financial worries can weigh heavily on the mind- you can probably name a few right now.  However, by resetting your financial habits, you pave the way for reduced stress and anxiety surrounding your finances. A structured financial approach minimizes uncertainties, offering a sense of control and stability during challenging economic times. 

5 - Develop An Abundance Mindset

Bid farewell to scarcity thinking! Resetting your financial habits helps shift your mindset from scarcity to abundance. Instead of dwelling on limitations, you begin to recognize opportunities. Embracing better financial habits opens your eyes to possibilities, nurturing a mindset focused on abundance and financial well-being. 

Altering our financial habits isn’t just about numbers on a spreadsheet; it's about transforming our entire financial outlook. Not sure how to begin implementing good financial habits? Consider, Fully Funded Life, an online membership program with practical, easy-to-implement teaching, and resources to guide you on your financial journey!

The Way To Accomplish Your Plans, Hopes, and Dreams

Budgeting, investing, and saving play a critical role in making your plans, hopes, and dreams into reality. Let's explore how these financial elements intersect with goal setting to pave the way for a future filled with accomplishments.

• Budgeting is not just about numbers; it's a tool for aligning your financial resources with your dreams. By aligning your budgeting with your goals, you can prioritize spending, allocate resources efficiently, and ensure your financial plans mirror your financial dreams.

• Investing serves as a pathway toward accomplishing long-term goals. It involves identifying investment avenues that align with specific goals! Through strategic investment, you pave the way toward accomplishing larger financial aspirations.

• Savings act as the foundation for achieving both short-term and long-term goals. Establishing emergency funds and setting aside money for immediate needs aligns with short-term aspirations. Simultaneously, implementing long-term saving strategies propels progress toward larger financial milestones.

The magic really happens when budgeting, investing, and saving align seamlessly with your specific goals.

Tracking progress and maintaining financial discipline are instrumental in achieving financial goals. Consistent effort, adaptation, and a long-term vision can help you stay on track as you live your fully funded life!

Remember, your dreams are within reach. Your budgeting, saving, and investing habits should align with your goals!

Join us at Fully Funded Life in harnessing the power of budgeting, investing, and saving to accomplish your plans, hopes, and dreams.

Budgeting With Irregular Income

Do you have irregular income? Maybe it is seasonal or cyclical.

There is a large group of folks whose family economy is powered by irregular income. Real estate agents, hair stylists, commissioned salesmen, and business owners all experience seasonal or cyclical income.

Folks who live with this type of income often tell me that it is impossible to budget. They say that they have no idea what they will make this month, so it is just impossible. I say that not only is it possible, but that folks with irregular income need to be budgeting more than anyone. It is my goal to help you stop living the feast and famine lifestyle that is so often associated with irregular income. Here’s a hint – It’s EZ!!!

Step 1 – Recognize It!

To avoid living the feast/famine lifestyle, you must recognize that you have irregular income. If you have ever suffered during the “off” season, you KNOW what I am talking about! In order to stop having your life severely impacted by “off” seasons, you must prepare! Question:  If your family economy is powered by irregular income, what do you do to prepare for “off” seasons?

Step 2 – Determine Monthly Expenses

Determine how much money is necessary to make your household operate efficiently for each month. To determine your monthly expenses, you should pull up a monthly budgeting form and do the following.

1. Fixed Expenses

   Enter all your fixed expenses – house payment, utilities, gasoline, car payments, credit card payments, saving for retirement, groceries, cell phone, childcare, etc.

2. Variable Expenses

   Enter the average of all your variable expenses – clothing, spending money, entertainment, dining out, etc.

3. Known, Upcoming Non-Monthly Expenses

   If you do not add in all of those known, non-monthly upcoming expenses, you will continue to live the feast/famine lifestyle. These types of expenses are BUDGET-BUSTERS. Here is what I do. I list all the known, upcoming non-monthly expenses and place their annual cost next to them. I then divide that number by twelve to determine how much I need to save per month.

There are lots of expenses that we all have that are non-monthly, but we know how much they will cost us.  Some examples are car insurance, car tags, life insurance, or gym memberships. This allows me to bring a stop to the feast, famine lifestyle by saving for items that I know are coming.

You now have a monthly budget that will change very little through the year! Question: What have been the biggest budget-busting expenses you have experienced?

Now, of course, the trick is to have enough cash on hand every month to make this monthly budget work!

Step 3 – Save Up Three Months’ Worth Of Expenses

WHAT?! I am sure that is what many of you are saying right now! Yes, I did say that you need to save up at least three months of expenses. Remember in step two that you calculated your monthly expenses? Multiply that number by three, and you have your savings target.

I call this savings the “Known Slumps Fund”! You know that slumps are coming, so be prepared! This is HUGE in eliminating that horrible feast/famine lifestyle!

Step 4 – Become Personally Debt-Free And Operate Your Business Debt-Free

Now, I am certain that you believe I have completely fallen off my rocker. You might be saying, “Joe, you are crazy! There is no way I can do this!” Well, I have seen many people operate their business debt-free.

What are the advantages of operating a business debt-free? Let me count the ways!

1. Monthly expense load drops! There are no interest payments to make!

2. Your business can absorb downturns much more effectively. Again, there are no interest payments to absorb!

3. Breathing room. It is amazing how much stress a pile of debt brings on.

4. When you spend your own real money, you will manage it better. I don’t know why this is, but if I am spending someone else’s money (i.e. the banks) I am much more susceptible to making a riskier decision! When I am spending my money, I am much more likely to do thorough due diligence before doing a deal!

Question: What are some other advantages of operating a business debt-free?

Budgeting With Irregular Income Is Possible

Recognize that you have seasonal or cyclical income so you can avoid the feast-or-famine lifestyle.  Next, determine what your monthly expenses are. Then save up three months’ worth of expenses in a “Known Slumps Fund” to help you weather those months when your income dips drastically or stops. Finally, live personally debt-free and operate your business debt-free.

This isn’t something you can achieve overnight, but this goal will help you make tough choices along the way to set yourself up for long-term success. Remember, budgeting with irregular income is possible!

Should You Withdraw From Your Savings Prior To Retirement?

The temptation to dip into your retirement savings early can sometimes be alluring. No matter how alluring, you should NOT withdraw early! Here’s why?

1. You lose the opportunity for your money to grow tax-deferred

2. The time value of money is crushed when you pull out the money you have saved for retirement.  You will never get that time back!

3. If you pull money out of your retirement plan early, it will be subject to taxes PLUS a 10% penalty.

4. You will have to recognize the withdrawal as income for that year which will usually bump you up a couple of tax brackets.

5. It is a VERY EXPENSIVE way to obtain money. You will ultimately pay around 45% taxes on the money you withdraw! If you pull out $50,000, you will actually bring home $27,500! Taxes and penalties will cost you $22,500! That is worse than a credit card!

6. Are you viewing this cash withdrawal as a way to avoid more debt? I have seen too many cases where money is withdrawn (very expensively) and without a change in spending behavior. Don’t put yourself in a position to end up with zero or very little in their 401(k) PLUS a pile of debt that increases every month!

7. FINAL REASON: It’s for RETIREMENT!

Retirement plans are designed to secure your future when you decide to retire. Withdrawing early disrupts this purpose and may hinder your ability to achieve financial independence later in life. Instead, consider alternative financial strategies to address immediate needs without compromising your retirement goals..

How To Reflect On Your Financial Wins

It's easy to focus solely on the end goal and overlook the milestones achieved along the way - especially with our finances. Yet, taking the time to reflect on financial wins, both big and small, can be a powerful tool in maintaining motivation and steering your financial journey toward success.

A Reminder

Reflecting on financial wins is not just about acknowledging successes—it's about recognizing the significance and impact of each milestone achieved. It involves celebrating progress! These moments of reflection serve as reminders of your capability and determination to overcome financial challenges.

Benefits of Reflecting on Financial Wins

The act of reflecting on financial wins extends beyond a mere pat on the back. It cultivates gratitude, fostering a positive mindset that fuels further progress. Each acknowledgment of success boosts confidence, reinforcing the discipline needed to stay on track toward achieving other financial goals.

Strategies for Effective Reflection

Consider regularly reviewing your financial progress. Document and celebrate each achievement, whether it's paying off a debt, reaching a savings goal, or sticking to a budget consistently. Take the time to evaluate lessons learned from challenges faced, and use what you’ve learned to accomplish your next goal!

Celebrating Small and Big Wins Alike

Often, we focus primarily on significant milestones, but acknowledging the smaller victories is equally important. Embrace the value of incremental progress, as these small wins contribute significantly to the overall journey toward living your fully funded life.

Reflecting on your financial wins isn't self-indulgence—it's a necessary practice in your financial journey. By taking the time to acknowledge successes and learning from setbacks, you pave the way for building continuous financial habits and stability!

So, as 2023 comes to a close, take time to reflect on your financial wins, celebrate your progress, and use these reflections as fuel for the road ahead.

3 Ways To Stop Overspending During The Holidays

The holiday season is full of joy, festivities, and gatherings. However, for many, it also brings the stress of overspending and financial strain. The pressure to buy gifts, decorate homes, and host celebrations often can lead us to exceed our budgets. To ensure a financially healthy and stress-free holiday season, here are three effective strategies to stop overspending:

1. Create a Realistic Budget

The foundation of responsible spending during the holidays lies in setting a realistic budget. Identifying your available funds and establishing spending limits are crucial steps.

Take a moment to evaluate and allocate specific amounts for various holiday expenses. Prioritize essential costs like travel, hosting, and gifts for immediate family (your essential costs might look different).

Regularly track your expenses and be open to adjusting your budget as needed to avoid overspending!

2. Practice Mindful Spending

Mindful spending involves making conscious choices to prevent impulsive purchases. Start by creating a FULL Christmas shopping list that outlines necessary items. (you don’t have to buy a gift for everyone you know). Stick to this list while shopping to avoid overspending on unnecessary items.

The kicker here is to distinguish wants and needs, focusing on fulfilling your list. While taking advantage of discounts and bargains, ensure that discounted items align with your planned purchases rather than encouraging an impulse buy.

3. Utilize Alternative Gifting Strategies

Consider alternative gifting strategies that not only save money but also add a personal touch to your presents. Explore do-it-yourself (DIY) gifts or homemade treats that showcase creativity while reducing expenses. Do you have a hobby that can be used to create gifts?

Maybe this year, you opt for gift exchanges or Secret Santa arrangements among family or friends to limit individual spending. Alternatively, consider gifting experiences or acts of service, such as offering to babysit or preparing a home-cooked meal, which can be more meaningful than material gifts.

Embracing these strategies can significantly alleviate financial stress and ensure a more balanced and enjoyable holiday season. Remember, you can do this! Share your own tips for managing holiday spending and let’s encourage one another as we work towards a financially healthy and joyful holiday season!

Do You Have Financial Goals?

In the pursuit of living your fully funded life, there's a crucial step often overlooked: setting clear financial goals that align with your plans, hopes, and dreams.

These goals navigate you toward a future where financial freedom and security are not just aspirations but a reality. If you're yet to define these goals or if you're contemplating their importance, let’s find out WHY identifying your financial goals is significant:

Make Your Dreams a Reality

At the heart of your financial journey lies the WHY. Why are you working towards better financial habits? Why are you completing your budget before each month begins? Why? Because, you have dreams, you have hopes, you have plans for your family! Outlining your aspirations into tangible financial goals paves the way to turn aspirations into achievements. Financial goals aren't just about numbers; they are the stepping stones that help make your dreams into reality. They provide direction, purpose, and a sense of empowerment over your financial future.

types of financial goals

In the pursuit of living your fully funded life, financial goals span a spectrum—from immediate needs to long-term aspirations. Short-term goals could include building an emergency fund or paying off high-interest debts, while mid-term goals might revolve around saving for a down payment on a home or funding an education. Long-term goals encompass retirement planning and investment strategies, securing the future you dream of.

Take a moment and identify your short-term, mid-term, and long-term goals!

Steps to Achieve Financial Goals

Now that you’ve identified your goals, reflect on where you stand financially. Now, envision where you want to be. How do you merge the gap between your current financial state and where you want to be? By setting financial goals aligned with your dreams. Craft an action plan that lays out the steps needed to achieve these aspirations. You might have to adjust your spending habits, you may need to establish financial accountability… Your path may evolve, but staying committed and adaptable is key to reaching your financial plans, hopes, and dreams.

At FullyFunded.Life, we recognize the transformative power of financial goals in making your fully funded life a reality. Our platform provides not just tools but a roadmap to help you establish, track, and live your financial aspirations. From budgeting templates to personalized financial planning guidance, we're here to support you on your journey.

Living your fully funded life isn't a distant dream—it's within your grasp. Take the first step and join us at:

Start setting and achieving your financial goals today and pave the way to living your fully funded life.