5 Ways to Cultivate a Generous Mindset

In a world that often emphasizes accumulation and self-interest, choosing to cultivate a generous mindset can be a transformative act. Generosity is not just about giving money—it's a way of life that can enrich both the giver and the recipient. Whether you’re just starting your journey towards financial freedom or you’re already well on your way, here are five ways to develop a generous mindset that will positively impact your finances and your life.

1. Practice Gratitude: The Foundation of Generosity

Generosity begins with a sense of gratitude. When you focus on what you have rather than what you lack, it’s easier to recognize opportunities to give to others. Gratitude shifts your mindset from scarcity to abundance, making you more inclined to share your resources, whether they be time, money, or talents.

One simple way to practice gratitude is by keeping a gratitude journal. Each day, write down three things you’re thankful for. Over time, you’ll notice that your perspective shifts, and you’ll find more joy in giving.

2. Start Small: Generosity Begins with Small Acts

Generosity isn’t measured by the size of the gift, but by the intention behind it. You don’t need to make large donations or grand gestures to make a difference. Small acts of kindness, like buying a coffee for a friend or donating to a local charity, can have a significant impact.

Start with what you have. If you can’t give financially, consider donating your time or skills. The important thing is to cultivate the habit of giving regularly, no matter the size.

3. Set Giving Goals: Intentionality in Generosity

Just as you set financial goals for saving or investing, it’s important to set goals for giving. By setting specific, measurable goals, you can make generosity a consistent and intentional part of your life.

Think about the causes you care about and set a giving goal that aligns with your values. Whether it’s a percentage of your income or a specific dollar amount, having a goal helps you stay committed to making generosity a priority.

4. Surround Yourself with Generous People: The Power of a Generous Community

The people you surround yourself with have a significant impact on your mindset and behavior. Being part of a community that values generosity can inspire and motivate you to give more.

When you’re surrounded by generous people, you’ll find that generosity becomes contagious, leading to a greater collective impact.

5. Reflect on the Impact of Giving: See the Fruits of Your Generosity

Finally, take time to reflect on how your generosity has impacted others and yourself. Reflecting on the positive outcomes of your giving can reinforce your commitment to living generously and help you see the difference you’re making in the world.

Ask yourself questions like:

• How has giving changed my perspective on money and wealth?

• What impact has my giving had on those I’ve helped?

• How has generosity enriched my life?

By reflecting on these questions, you’ll deepen your understanding of the value of generosity and be more motivated to continue giving.
You can make generosity a core part of your financial journey, it just starts with one step.

5 Spooky Financial Mistakes to Avoid This October

October is a month filled with spooky fun, from haunted houses to ghostly costumes. But when it comes to your personal finances, there are some spooky things you should definitely avoid.

1. Ignoring Your Budget

As the holiday season approaches, it’s easy to get caught up in the excitement and let your spending spiral out of control. But ignoring your budget can lead to a ghostly apparition: overspending. Without a clear plan, expenses can creep up on you, leaving you with a chilling credit card bill or an empty bank account.

To avoid this, make sure you set a budget and stick to it. Plan for upcoming expenses, including fall festivities, and keep track of where your money is going. Remember, a budget isn’t meant to be restrictive—it’s a tool to help you stay in control of your finances.

2. Relying Too Much on Credit Cards

Credit cards can be convenient, especially when you're shopping for costumes, decorations, and treats. But relying too much on them can lead you down a trapdoor into the dark world of debt. High interest rates can quickly turn a small purchase into a large financial burden, leaving you with a trick instead of a treat.

To avoid falling into this trap, use credit cards responsibly. Only charge what you can afford to pay off in full each month, and consider using cash or a debit card for smaller purchases. If you already have credit card debt, make a plan to pay it off as quickly as possible.

3. Skipping Emergency Savings

One of the scariest financial mistakes you can make is skipping out on building an emergency fund. Life is full of unexpected surprises—car repairs, medical bills, or even job loss. Without an emergency fund, these unexpected expenses can turn into a financial nightmare.

Start by setting aside a small amount each month until you have at least three to six months' worth of expenses saved. Having this cushion will give you peace of mind and protect you from financial monsters lurking in the shadows.

4. Neglecting Retirement Contributions

It’s easy to put off retirement savings when there are more immediate financial concerns, especially with the holidays around the corner. But neglecting your retirement contributions can come back to haunt you later in life. The longer you wait to save, the more you miss out on the magic of compound interest, and the harder it becomes to catch up.

Make retirement savings a priority, even if it means making small sacrifices in the present. Contribute regularly to your retirement accounts and take advantage of any employer matching programs.

5. Failing to Plan for Taxes

Taxes might not be on your mind in October, but failing to plan for them can lead to a terrifying surprise when tax season rolls around. If you’re not withholding enough from your paycheck or overlooking potential deductions and credits, you could end up owing more than you expected.

Take the time now to review your tax situation. Adjust your withholding if necessary, and consider meeting with a tax professional to ensure you’re on the right track. Planning ahead can help you avoid the horror of a large tax bill come April.

Don’t let these spooky financial mistakes turn your October into a nightmare. By keeping an eye on your budget, using credit wisely, building an emergency fund, staying on top of retirement contributions, and planning for taxes, you can ensure that your finances stay healthy and strong.

When Should I Start Planning and Saving for Retirement?

Retirement may seem like a distant milestone, especially when you're juggling current financial obligations. However, when it comes to planning for your retirement, the question isn't just "When should I start?" but rather, "How soon can I start?" We believe that proactive planning is the key to achieving financial security, and that includes your retirement. So, let’s dive into when you should start planning and saving for retirement.

The Earlier, the Better

If there's one piece of advice that stands the test of time, it's this: the earlier you start saving for retirement, the better. Why? Because starting early allows you to take full advantage of compound interest, the process where your investment earnings generate even more earnings over time. This can significantly grow your retirement savings.

But what if you're already past your 20s or 30s? Don’t worry—it's never too late to start. The key is to begin as soon as possible and be consistent with your contributions. Even small amounts saved regularly can grow significantly over time.

Understanding Your Retirement Goals

When it comes to retirement, one size does not fit all. The amount you need to save depends on your specific retirement goals. Do you envision traveling the world, downsizing to a cozy home, or maybe starting a small business in your retirement years? Each scenario requires a different level of savings.

Start by setting a clear financial vision for your retirement. Ask yourself questions like:

• At what age do I want to retire?

• What kind of lifestyle do I want to maintain?

• What will my monthly expenses likely be?

Once you have a clear picture of your retirement goals, you can estimate how much you'll need to save. This will give you a target to work towards, making it easier to stay motivated and on track.

Adjusting Your Plan as Life Changes

Life is unpredictable, and your retirement plan should be flexible enough to adapt to changes. Whether it’s a career change, starting a family, or experiencing unexpected health issues, these events can impact your retirement savings strategy.

It's important to regularly review your retirement plan and adjust it as needed. For example, if you receive a raise, consider increasing your retirement contributions. Or, if you experience a significant life change, reassess your retirement goals to ensure they still align with your current situation.

Being flexible doesn’t mean being passive. Regularly monitoring your progress and making informed adjustments will help you stay on course to achieve your retirement goals.

The journey to a secure retirement begins with a single step, and the best time to take that step is now. By starting early, setting clear retirement goals, and being flexible as life changes, you can create a solid plan for your future. Remember, retirement planning is not a one-time event but an ongoing process that evolves with you.

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How Can I Secure My Financial Future? 3 Investing Tips

When it comes to securing your financial future, few strategies are as effective as investing. Whether you're dreaming of a comfortable retirement, saving for your children's education, or simply aiming for financial freedom, the decisions you make today can have a profound impact on your future. We believe that wise investing is a key component of financial stewardship, and we're here to guide you on this journey. Here are three investing tips to help you secure your financial future.

Start Early and Stay Consistent

The best time to start investing was yesterday; the next best time is today. One of the most powerful tools in your investing arsenal is compound interest. This is the process by which your investment earnings are reinvested, allowing you to earn even more over time. The earlier you start, the more time your money has to grow.

Imagine you start investing $100 a month at the age of 25. Assuming an average annual return of 7%, by the time you’re 65, you could have over $250,000. However, if you wait until you’re 35 to start, that same investment could only grow to about $120,000. The difference? A decade of missed growth.

Consistency is just as crucial. Make investing a regular habit, even if you begin with small amounts. Over time, those small contributions can compound into significant wealth.

Diversify Your Investments

You've likely heard the saying, "Don't put all your eggs in one basket." This adage is especially true when it comes to investing. Diversification involves spreading your investments across various asset classes (like stocks, bonds, and real estate) to reduce risk. A well-diversified portfolio can help protect you against major losses and provide more stable returns over time.

Building a diversified portfolio doesn't have to be complicated. Start by understanding your risk tolerance and financial goals, then allocate your investments accordingly. Whether you're a conservative investor or more aggressive, there are options to suit your needs.

Educate Yourself Continuously

Investing is not a one-time activity; it's an ongoing process. The financial markets are dynamic, and staying informed is crucial to making sound investment decisions. The more you know about market trends, investment strategies, and economic factors, the better equipped you'll be to navigate your financial journey.

We offer a wealth of educational resources designed to help you grow your investment knowledge. Providing you with the tools you need to become a confident, informed investor.

Securing your financial future through investing doesn't have to be daunting. By starting early, diversifying your investments, and continuously educating yourself, you can build a solid foundation for long-term wealth. Remember, the journey to financial freedom is a marathon, not a sprint. Start today, stay consistent, and watch your investments grow.

How To Put Your Investments To Work

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

Perhaps no verse has had more of an impact on my financial management than this verse.  I believe that if you apply these principles, your finances will be forever changed.

Understand the verse.

I was reading this verse several years ago, and it literally changed my entire mindset about financial management.  Perhaps it is because I grew up on a farm and connected with the talk about farm animals and equipment.  Maybe it is because I am continually learning more about finances.  Whatever the reason I like this verse, I promise you that it can completely change your finances!

Think about your ability to work.  No matter how strong you are, how much energy you have, or how determined you may be, there is only so much work you can do.  There is only one of you.  You can work more hours.  You can work 20 hours per day, but you will reach a limit.

As a farmer, there is only so much you can do.  Help is required to accomplish more.  With oxen, so much more can be accomplished.  They are STRONGER than you are.  They have MORE ENDURANCE than you do.  They even have SKILLS you don’t have (ever attempted to pull a barn by yourself?)

Identify your oxen.

It is important to identify the potential “oxen” that could work for you – in place of you – and produce additional income (abundant harvests).

A retirement investment account (such as a 401(k), 403(b), 457, TSP, or Roth or Traditional IRA) are oxen.  Think about it.  When your retirement investments go up in value over time, does it require much effort from you?  Absolutely not.  Like an ox, you will need to occasionally provide direction and guidance to the investment account, but it will do the heavy lifting for you and take your finances places you can not get to on your own.

Another form of oxen is business ownership.  An owner of a McDonald’s franchise makes money even when they are at home asleep because the system is producing profits without their active and direct involvement every minute of the day.

Acquire oxen.

The manger is empty when there are no oxen.  The manger is designed to hold food.  When faced with the decision of “empty manger/no food” versus “abundant harvest”, I am going to choose the abundant harvest every single time.  I believe that this would be your choice also.

Obviously, the critical step toward an abundant harvest is to have oxen.  These oxen, however, can be expensive.  Acquiring a McDonald’s franchise can cost hundreds of thousands of dollars.  Starting a business can also cost an enormous amount of money.  So where does one start out?  We must start out just like everyone else – start where you are with what you have.

I challenge you to write down your plans, hopes, and dreams on paper.  Seriously, take five minutes to ponder your goals and write them down.  Now, next to each goal, write down how much each goal will cost.  This process will help you understand the necessity of acquiring an ox or two.

My oxen acquisition started by fully funding my 401(k).  I contributed the maximum amount allowed by law.  Notice that I did not contribute just enough to gain the company match.  This is a great start, but to truly get the 401(k) ox to work for me, I needed to maximize my contributions.  If you simply can’t contribute the maximum, start with a little and increase it on a consistent basis so that you will be maximizing it in just a few years.  These investments seemed so little at the start that it seemed pointless.  Just 15 years later, however, the 401(k) ox is healthy and doing a LOT of heavy lifting for me!  It will do the same for you.

Put your oxen to work!

This is the fun part!  As you put your oxen to work and provide adequate nourishment and attention, they will begin to work for you in ways you never thought possible.  Your 401(k) will grow without the need for any energy expenditure from you.  The rental house will produce income and increase in value even when you are on vacation.  The book that you’ve been wanting to write will be purchased by people from across the globe – even while you sleep.  The website will sell products without your direct involvement.  The team of people at your business will work to serve customers whether you are there or not.

Don’t make the mistake of thinking your oxen will work perfectly with zero involvement from you.  The last I checked, oxen will still wander off if you don’t provide them some direction and leadership.  Be sure to establish a system that allows you to always know the numbers and enables you to measure the health of your herd.
As your oxen work for you, they will truly provide an abundant harvest that will allow you to bless your family and those in need in ways you never thought possible.

The Definition of Investing

Investing is one of the most powerful ways to grow wealth, but for many, it’s also one of the most intimidating. I recently conducted a survey and received hundreds of responses, and one of the top financial topics people struggle with is investing.

With terms like mutual funds, ETFs, stocks, bonds, brokers, margin accounts, rate of return, yield rate, P/E ratio, market capitalization, and current ratio, it can literally feel as if investing is another language! If you've ever felt lost or overwhelmed by these terms, know that you're not alone—I’ve been there too.

But before we dive into the specifics, let’s start with the basics: What is investing?

What is Investing?

At its core, investing is simply using your money and possessions to create more money and possessions. The goal of any investment is to gain more in return than what you originally put in.

This might sound straightforward, but the ways to achieve this goal are numerous and varied. From buying stocks and bonds to investing in real estate or starting a business, there are countless strategies for growing your wealth. Each comes with its own set of terms, risks, and potential rewards.

Why Investing Matters

Investing is crucial for achieving long-term financial goals. Whether you're planning for retirement, saving for a child's education, or just looking to build wealth over time, investing allows your money to work for you. Instead of sitting idle in a bank account, your money can grow and compound, helping you reach your financial dreams faster.

What’s Next?

For immediate next steps, visit our dedicated investing resource page where you’ll find tools, articles, and guides to get you started on your investing journey.

Consider diving deeper by reading Oxen by Joe Sangl. This book provides powerful insights into building wealth through investments, using the metaphor of oxen to illustrate the importance of acquiring financial assets that work for you.

Additionally, if you're serious about ongoing education and mastering your financial future, consider joining our Fully Funded Life Membership. This membership offers comprehensive resources, coaching, and a community of like-minded individuals all striving for financial success.

Blame vs. Accountability: How to Cultivate a Positive Money Mindset

When it comes to personal finance, the mindset you adopt can be just as important as the strategies you implement. Many people struggle with their finances, not because they lack knowledge, but because they fall into the trap of blame instead of embracing accountability. Shifting from blame to accountability is crucial for cultivating a positive money mindset that leads to financial success. Here’s how to make that shift…

1. Stop Blaming External Factors

It’s easy to point fingers at external factors when things go wrong financially—whether it’s the economy, your employer, or unexpected expenses. While these can impact your finances, blaming them won’t solve the problem. Instead, recognize that while you can’t control everything, you can control how you respond.

A positive money mindset starts with taking ownership of your financial situation. This doesn’t mean ignoring real challenges, but it does mean refusing to let them dictate your financial future. Acknowledge what’s within your control, and focus on actions that move you toward your goals.

2. Embrace Accountability

Accountability is the opposite of blame—it’s about taking responsibility for your financial choices, both good and bad. When you hold yourself accountable, you empower yourself to make changes. Instead of dwelling on past mistakes, use them as learning opportunities.

One practical way to embrace accountability is by tracking your spending and setting clear financial goals. Tools like the Fully Funded Life Ladder can help you visualize your progress and keep you on track. Being accountable to yourself (and even to a trusted friend or financial coach) can transform how you approach money management.

3. Focus on Growth and Learning

A blame-based mindset keeps you stuck in the past, but an accountability-based mindset opens the door to growth and learning. Recognize that building financial literacy is a journey, and every step forward is progress. Whether it’s reading financial books, attending financial workshops, or exploring the resources we have available, continuous learning is key to cultivating a positive money mindset.

Investing in your financial education will help you make informed decisions, and as your knowledge grows, so will your confidence. Remember, the more you learn, the more empowered you become to take control of your financial future.

Shifting from blame to accountability is essential for fostering a positive money mindset. By taking ownership of your financial situation, embracing accountability, and focusing on continuous learning, you can create the foundation for lasting financial success. Start today by exploring our tools and resources and take that first step toward a brighter financial future.

3 Budget-Busting Expenses to Watch Out For

Budgeting is essential for financial stability, but even the most meticulously planned budgets can be blindsided by unexpected or irregular expenses. Need help overcoming budget-busting expenses? You probably know the big ones—Christmas, the quarterly insurance premium, the annual property taxes—but let’s dive into why these are so challenging and how to handle them effectively.

1. Holiday Spending

The holiday season is a time of joy and giving, but it can also wreak havoc on your budget. According to a survey, the average American plans to spend nearly $1,000 on holiday gifts. Now, imagine this $1,000 hit in a single month—would it blow up your budget? ABSOLUTELY!

Solution: To smooth out this expense, consider setting up a Christmas fund. By calculating your estimated holiday spending and dividing it by 12, you can save a set amount each month. For instance, saving just $84 every month would cover a $1,000 holiday budget, leaving you stress-free when the festive season rolls around.

2. Quarterly Insurance Premiums

Insurance is a necessary expense, but quarterly premiums can be budget-busters. Let’s say your car insurance premium is $450 every three months. That’s a significant amount to pay in one go, especially if it coincides with other large expenses.

Solution: By calculating the annual cost of your premiums and dividing it by 12, you can save each month. In this case, $150 set aside monthly will ensure you’re prepared when that $450 bill arrives.

3. Annual Property Taxes

Property taxes are another heavy hitter, often due once a year. Depending on where you live, this could be a substantial amount—let’s say $1,200. A one-time payment like this can throw your budget into chaos if you’re not prepared.

Solution: Treat your property taxes like any other monthly bill by dividing the total by 12. Setting aside $100 every month will make the annual payment much more manageable.

Smoothing Out the Peaks and Valleys

To eliminate this peak-and-valley, feast-and-famine style of living, take the time to list out all of your KNOWN, UPCOMING expenses and their associated annual cost. In the examples above, the annual budget-busting expenses total up to $4,400 per year. Divide this number by 12 months, and you arrive at $367/month. If you save $367 EVERY SINGLE MONTH, you WILL be able to absorb these budget-busting expenses without the huge headaches that you may currently be experiencing!

Don’t believe me? Ask anyone with a Christmas fund or a home mortgage escrow account! These are nothing more than budget-buster smoothing tools. Mortgage companies and businesses have realized that if the costs are not smoothed out and absorbed monthly, the chances are unlikely of you having enough cash on hand when the bill arrives otherwise.

By identifying your major expenses and smoothing them out over the year, you can take control of your budget and eliminate the stress of surprise costs. Start today by listing your budget-busting expenses and setting up monthly savings goals. Your future self will thank you!

Why You NEED an Encouraging Financial Community

When it comes to managing money, going it alone can be tough. Whether you’re trying to get out of debt, save for a big purchase, or invest for the future, the journey can feel overwhelming at times. That’s why having an encouraging financial community is not just beneficial—it’s essential. Here’s why you need one…

1. Support and Motivation

Achieving financial goals often requires persistence and discipline, and there will inevitably be moments when you feel discouraged or tempted to give up. An encouraging financial community provides the support and motivation you need to keep going. Surrounding yourself with people who share similar goals and values can make all the difference when times get tough.

Whether it’s a group of friends, a church community, or an online forum like the Fully Funded Life Membership, having a network that cheers you on and celebrates your successes can be the boost you need to stay on track. They’ll remind you why you started and help you push through challenges.

2. Accountability

A strong financial community doesn’t just offer encouragement—it also holds you accountable. When you share your financial goals with others, you’re more likely to follow through because you don’t want to let them (or yourself) down. This sense of accountability can be incredibly powerful.

For instance, if you’ve committed to sticking to a budget or paying off a certain amount of debt, knowing that others are keeping track of your progress can help you stay disciplined. Tools like the Fully Funded Life Ladder can be used within your community to track progress together, making accountability both practical and supportive.

3. Shared Knowledge and Resources

No one has all the answers when it comes to personal finance, but within a community, you can tap into a wealth of knowledge and resources. By sharing experiences, tips, and advice, you can learn from others’ successes and mistakes, making your financial journey smoother and more informed. Whether it’s learning about new budgeting tools or discovering investment opportunities, being part of a community ensures you’re not navigating the financial landscape alone.

Together, you can achieve more than you ever could alone.

What To Do When You Are In A HUGE Financial Mess

I have met a ton of people who are experiencing the harshness of the following two key items:

• No Plan, No Savings, Piles of Debt

• Loss/Reduction of Income

Here is what you can do when faced with this situation.

Allow Yourself to Feel, Then Act

It's natural to feel overwhelmed and regretful when facing a significant financial challenge. Take a moment to acknowledge your emotions and give yourself permission to process them. It's okay to feel this way—it's the first step in moving forward.

Prioritize Your Payments

When finances are tight, prioritize who needs to be paid first. Essentials like housing, utilities, and food should take precedence over non-essential expenses. Create a list of creditors and bills, and decide which ones must be paid immediately and which can wait.

Set SMART Goals

To regain financial stability, set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals. Whether it's paying off debt, saving for emergencies, or increasing income, clear goals provide direction and motivation.

Create a Written Spending Plan

Even if your income and expenses don't balance perfectly right away, a written spending plan is crucial. This plan helps you understand your financial situation better and identifies areas where adjustments can be made. Knowing your "Go Get This!" number—the amount needed to cover essentials—empowers you to take control.

Take Action!

The most crucial step is to take action. Start implementing your plan immediately, whether it's cutting unnecessary expenses, seeking additional income sources, or negotiating with creditors. Small steps taken consistently can lead to significant improvements in your financial situation.

There can be a tendency to just focus on #1 and hope for everything to just work itself out.  Usually, this is not the case.  Recovering from this type of issue is emotional and gut-wrenching, but it requires one to take action.

You CAN recover from the mess.

Investing Myths That You Believe

Investing can be a powerful tool for building wealth and securing your financial future. However, several common myths can prevent you from taking advantage of its benefits. Let's debunk these myths and explore why investing is accessible and beneficial for everyone!

Myth: Investing is Only for the Wealthy

One of the most pervasive myths is that investing is only for the wealthy. In reality, anyone can start investing with even a small amount of money. Options like index funds, ETFs, and stock slices allow you to invest with minimal initial capital. Starting early and consistently investing can lead to substantial growth over time, regardless of your income level.

Myth: Investing is Like Gambling

Another myth equates investing in the stock market to gambling. While both involve risk, investing is based on informed decision-making and research. Unlike gambling, which relies heavily on chance, investing focuses on long-term strategies, diversification, and understanding your risk tolerance. With careful planning, education, and credible guidance, investing can significantly grow your wealth over time.

Myth: Investing is Too Complicated for Me

Some people shy away from investing because they find it as overly complex. In reality, investing can be straightforward, especially with the wealth of educational resources available today. Websites, books, and financial advisors provide valuable guidance for beginners. Starting with basic principles and gradually expanding your knowledge will empower you to make informed investment decisions.

Take Your Next Steps in Investing

Now that you've debunked these common investing myths, it's time to take action toward securing your financial future. Visit our Investing Next Steps page to learn more about starting your investment journey, choosing the right investment vehicles, and developing a personalized investment strategy. 

Investing doesn't have to be intimidating or exclusive. By challenging these myths and educating yourself, you can take control of your financial future and build long-term wealth.

What You Didn't Know About Online Banks

If you have ever heard me speak or teach about saving money, then you have undoubtedly been introduced to online banks. I’m not talking about banks that have websites but about banks that have little to zero physical “bricks & mortar” locations.

I’m talking about banks like Capital One 360 (formerly ING Direct) and Ally Bank (built on the base of GMAC).

Here’s why I use online banks (over a local bank) for my savings accounts:

1. Better interest rate Online banks pay interest that is generally 5 to 8 times more than a local bank savings account (somewhere near that of a 2 to 3 year CD) – but it doesn’t affect the liquidity of my money

2. Sub-Accounts If you have a regular savings account, all you can see is the total amount of the money the account currently contains. With online banks, you can create something called “buckets” or “sub-accounts” to give every dollar a designated name! This means you can create sub-accounts like “Christmas”, “Emergency Savings”, “Vacation”, “Life Insurance”, etc. 

3. Automatic Savings You can establish automatic transfers from another existing bank account. I have set up automatic transfers for my emergency fund, YMCA annual membership, House taxes and insurance, Christmas, and life insurance premiums. It is a “set it and forget it” approach to savings that is awesome!

4. Customer Service  Because these banks only have an online presence, they have to be INCREDIBLE at customer service, or people would not even know about them. Every interaction I have had with my online banks has been an incredibly positive experience.

5. FDIC-insured  These banks are insured by the FDIC – just like any other bank. That means your deposits are protected. I like that!

6. No fees  There are no fees unless you exceed the monthly allowable transactions (or something extraordinary like that)

7. No MINIMUM balance  This makes it perfect for any and every saver.

I encourage you to check them out: Capital One 360  and Ally Bank.

Set a savings goal. Then establish an automatic savings plan to help you accomplish it!

5 Signs That You are Financially Healthy

Achieving financial health is more than just having money—it's about stability, planning for the future, and making wise financial decisions. Whether you're just starting on your financial journey or looking to assess your current situation, here are five signs that indicate you are financially healthy.

1. Consistent Savings Habits

One of the hallmarks of financial health is the ability to save consistently. Financially healthy individuals prioritize saving by setting aside a portion of their income regularly. This could be through automatic transfers to savings accounts, contributions to retirement plans like IRAs or 401(k)s, or investments in other financial instruments. By consistently saving, you build a financial cushion for emergencies and future goals, demonstrating proactive financial planning.

2. Manageable Debt Levels

Managing debt responsibly is another key indicator of financial health. While some debt, like a mortgage or student loans, can be considered manageable and even beneficial, financially healthy individuals avoid high-interest debt and work towards paying off existing debts with purpose. They prioritize paying down debts with the highest interest rates first and maintain a healthy relationship with debt.

3. Emergency Fund Adequacy

Financial emergencies can happen unexpectedly, making an emergency fund crucial for financial health. Strive to set aside roughly three to six months' worth of living expenses. This fund acts as a buffer against unforeseen circumstances such as job loss, medical emergencies, or major home repairs. It provides peace of mind knowing that you can cover essential expenses without relying on credit cards or loans during challenging times.

4. Regular Budgeting and Financial Planning

Budgeting is a cornerstone of financial health. Financially healthy individuals create and stick to a budget, tracking income and expenses meticulously. Budgeting allows you to understand your financial situation, identify spending patterns, and make informed decisions about saving, investing, and spending. It helps prioritize financial goals and ensures that money is allocated efficiently towards achieving those goals, whether it's saving for a vacation, paying off debt, or investing for retirement.

5. Investing for the Future

Investing is essential for building wealth and securing your financial future. Financially healthy individuals understand the importance of investing early and regularly. They prioritize long-term investments such as retirement accounts (e.g., IRAs, 401(k)s), stocks, bonds, or real estate. By investing wisely, you harness the power of compounding returns and build wealth over time, ensuring financial security and achieving long-term financial goals.

Assessing your financial health is a crucial step towards achieving financial stability and security. By evaluating these five signs—consistent savings habits, manageable debt levels, an adequate emergency fund, regular budgeting and financial planning, and investing for the future—you can gauge your financial well-being and identify areas for improvement. Whether you're starting on your financial journey or looking to strengthen your financial health, taking proactive steps such as saving more, reducing debt, and investing wisely can lead to a brighter financial future.

To get a clearer picture of your financial health, use our free Financial Health Assessment today. Start living your fully funded life today!

Why You Should Reset Your Financial Habits This Summer

Before the busy schedules pick back up in the fall and you’re juggling everything little thing, take a moment this summer to reset your financial habits. Find time to take a closer look at your current financial habits and make necessary adjustments.

1. Reflect and Reassess Your Financial Goals

Mid-year is a great time to assess how well you're meeting your current financial goals. Take a moment to review your progress and identify areas where you might be falling short. This reflection can provide valuable insights into what’s working and what needs to change.

Based on your evaluation, you may find that it’s time to set new financial goals. Align these goals with your values and long-term plans to stay motivated and on track. Whether it’s saving for a dream vacation, paying off debt, or investing in your future, clear and aligned goals are essential.

2. Review and Optimize Your Budget

Conduct a thorough review of your budget to see where your money has been going over the first half of the year. Identify any areas of overspending and analyze whether these expenses were necessary or if they can be reduced or eliminated.

Based on your findings, make adjustments to your budget. This might involve reallocating funds to different categories, cutting back on non-essential spending, or increasing your savings contributions. Ensuring that your budget reflects your current needs and priorities is crucial for financial stability.

3. Enhance Savings and Debt Management

Use the summer to focus on increasing your emergency fund. An emergency fund is a financial safety net that can cover unexpected expenses and prevent you from going into debt. Set up automatic transfers to your savings account to make saving easier and more consistent.

Evaluate your current debt situation and create a realistic repayment plan. Prioritize high-interest debts to reduce the overall amount of interest you’ll pay over time. A structured plan can make managing and paying off debt more manageable and less stressful.

4. Streamline Expenses and Improve Financial Literacy

Take a close look at your subscriptions and memberships. List all the services you’re subscribed to and determine which ones you actually use and which can be canceled. Eliminating unused or unnecessary services can free up significant funds in your budget.

Improving your financial literacy is one of the best investments you can make. Use the summer to read books, take courses, or get into a routine of listening to podcasts about personal finance. Being well-informed about managing money and understanding investment options can help you make better financial decisions.

Resetting your financial habits this summer can lead to better financial health and stability. Take advantage of the summer months to make these important changes and enjoy the benefits of a more secure and well-managed financial future.

5 Things You Don’t Need To Buy For School Every Year

As the back-to-school season approaches, it's easy to get caught up in the excitement of shopping for new supplies. However, not everything on your list needs to be replaced annually. Being strategic about what you buy can save you money.

Five items you can skip purchasing every year:

1. Backpacks

A durable backpack can last several years if it’s of good quality and well-maintained. Look for backpacks made with sturdy materials and reinforced stitching. Unless the old one is worn out or damaged, there's no need to buy a new one each school year. Encourage your child to take care of their backpack to extend its lifespan.

2. Lunch Boxes

Sturdy lunch boxes can also be reused year after year. Invest in a good-quality lunch box that can withstand daily use. Regular cleaning is essential to maintain hygiene, but a well-made lunch box can serve your child for multiple school years. If the exterior or interior lining is in good shape, there’s no need for a replacement.

3. Calculators

Calculators, specifically scientific ones, are often a significant investment, but they are built to last. These calculators are required for multiple years of math and science courses, so once you’ve purchased a good one, it should see your child through high school. Unless it’s lost or broken, you don’t need to buy a new calculator every year.

4. Binders and Folders

High-quality binders and folders can be reused if they’re still in good condition. Instead of replacing them each year, try reusing them. Choose binders and folders made from durable materials that can withstand the daily wear and tear of school life. 

5. Water Bottles

Durable water bottles made of stainless steel or hard plastic are designed to last for many years. Regular cleaning and occasional checks for wear and tear are all that’s needed to keep them in good condition. A reusable water bottle is an eco-friendly choice that can accompany your child through multiple school years, making it unnecessary to buy a new one annually.

Back-to-school shopping doesn’t have to mean buying everything new every year. By reusing durable items you can save money. Focus on purchasing quality items that can withstand the test of time, and teach your children the value of taking care of their belongings.

Saving Tips: Back To School Clothes

It’s never too early to start saving for back-to-school expenses. Clothes can be a significant part of your spending each year, but with a little planning and strategy, you can save a substantial amount. Here are four practical tips to help you navigate back-to-school clothes shopping without breaking the bank.

1. Create a Budget and List

Before diving into the shopping frenzy, take a step back and plan. Setting a budget is crucial to avoid overspending. Here’s how you can start:

• Set a Budget: Determine how much you can afford to spend on back-to-school clothes. This budget should be realistic yet restrictive enough to encourage smart shopping choices.

• Make a List: Go through your child’s current wardrobe to see what fits, what can be reused, and what needs to be replaced. This can help you focus on essentials and avoid buying unnecessary items. A well-thought-out list will keep you on track and ensure that you purchase only what’s needed.

2. Shop Sales and Use Coupons

Timing is everything when it comes to shopping for clothes. Taking advantage of sales and using coupons can lead to significant savings:

• Look for Sales: Retailers often have end-of-summer or back-to-school sales with substantial discounts. Keep an eye on social media, websites, and local stores for these promotions.

• Use Coupons and Promo Codes: Before you hit the stores or online shops, search for coupons and promo codes. Many websites, apps, and mailers offer additional discounts. Signing up for store newsletters or loyalty programs can also provide access to exclusive deals.

3. Buy Secondhand

Why pay full price when you can get great quality for less? Consider these alternatives to traditional retail shopping:

• Thrift Stores and Consignment Shops: These stores often carry gently used, fashionable clothes at a fraction of the cost. With a little patience, you can find great deals on high-quality items.

• Garage or Mom2Mom Sales: Shop local garage sales, or look out for locally organized sales with other parents in your community. This is a simple way to get clothes for often the cheapest price from families whose kids have outgrown them. 

4. Shop Off-Season

Another effective way to save money is to shop off-season. This requires some planning but can result in big savings:

• Buy Off-Season: Retailers often discount items heavily at the end of the season to make room for new inventory. Buy winter clothes at the end of winter and summer clothes at the end of summer. Store these items for the next school year.

• Plan Ahead: Estimate your child’s growth and buy sizes accordingly. Buying a size up can ensure that the clothes will fit when the season rolls around again.

By creating a budget and list, shopping sales and using coupons, buying secondhand, and shopping off-season, you can outfit your child for each season without overspending. These strategies not only help you save money but also teach your children the value of smart shopping and financial planning. 

Ways To Eliminate Your Mortgage

You’ve seen your mortgage payment. How much of each payment is applied to the principal balance reduction…It can sometimes feel discouraging to watch your payment go primarily towards interest and see the principal balance slowly decrease over time. 

There is a way to eliminate (what is usually) the single largest expense in the household budget and free that money up to much greater things than making a bank rich!

#1 - Lower The Interest Rate

Lowering the interest rate by 1% on a $100,000 mortgage will nearly $1,000/year! That, my friends, will spend just like money and I would much rather apply that money toward principal reduction or funding a dream than sending it as a gift to my mortgage lender!

#2 - Pay 10% extra each month

Whatever your monthly payment is, add 10% and you will eliminate 7 years or more from a 30-year fixed rate mortgage! For instance, if your mortgage payment (including escrowed taxes and insurance) is $1,000, you would send in an extra $100 per month – $1,100/month.

Example: If you have a $150,000 5.50% fixed-rate mortgage with a monthly payment (including escrow) of $1,000 with $852 being applied to principal and interest each month (the other $148 being applied to taxes and insurance). If you send in $1,100 each month, there is now $952/month being applied to principal and interest. This will reduce a 30-year note to a 23-year 4-month note!

#3 - Make 1 Extra Payment Each Year

One of the most common ways that people reduce their mortgage payback period is by sending in one extra payment each year. This will eliminate 5 to 7 years from a 30-year fixed-rate mortgage. You can send one extra payment each year using a variety of methods.

• Send in one extra payment when you receive a tax refund or profitability bonus

• Since this money is not part of the normal budget, it can be easier to send this money immediately toward the mortgage.

• Set up 1/2-payments to be made every two weeks

• Since there are 26 two-week periods in a year, this means that 13 full payments will be made each year.

• Send in 1/12 (8.3%) extra on each monthly payment.

• 1/12th payment/month X 12 months = 1 full payment per year

#4 - Eliminate one “nice-nice” monthly expense and send it to the mortgage company

How much do you send to the cable/satellite company each month? Let’s say that it is $70/month. That is $840/year. Cancel the cable and re-route that monthly bill to the mortgage payment.

Other items that could be reduced/eliminated include:

• Dining out

• Clothing

• Spending money

• Magazine subscription

• Insurance premiums

Do You Have Insurance?

I do not like talking about death. I don't know many people who do. But I am not deaf to the fact that we are all going to die. Every single one of us. At this point, we all know that life insurance is important, and hopefully, you have taken the appropriate steps to protect your family. But, is it enough? Is your policy enough to cover your debts and provide a comfortable life for those you leave behind?

Assessing Your Life Insurance Needs

I carry an insurance policy equal to ten times my annual income. With an income of $50,000 per year, this would mean a person should obtain a $500,000 policy. If I pass away while my children are still in the household, I want my wife to be able to focus on raising them without having to worry about replacing my income.

But determining the right amount of coverage isn't as simple as multiplying your income by a certain number. You need to consider various factors, including:

• Existing Debts: Ensure your policy is sufficient to cover any outstanding debts, such as a mortgage, car loans, credit card debt, and personal loans.

• Living Expenses: Estimate the amount needed to maintain your family's standard of living. This includes everyday expenses like groceries, utilities, and healthcare.

• Future Financial Goals: Factor in the cost of future expenses, such as your children's education and your spouse's retirement.

• Inflation: Consider the impact of inflation over the years. What seems like a large sum now may not be as significant in the future.

My Personal Strategy

With that being said, I also carry no debts. My home, vehicles, and school loans are paid off. I do not need life insurance to repay these debts. If you do have debts, you should consider these when deciding how much insurance you need.

Cost of Life Insurance

The total amount of insurance that you require to secure your family should not break the bank. For a healthy 30-year-old male who does not use tobacco products, a $500,000 policy would cost about $25 a month in term life insurance. For a healthy 30-year-old female, the same coverage would cost about $20 a month. That is really cheap for such great coverage.

The Goal of Becoming Self-Insured

My personal goal is to become self-insured. If you are able to become debt-free and invest wisely, you will eventually have enough money that your need for life insurance will diminish greatly. Think about it. Suppose you die, leaving behind no debts and more than $1,000,000. You have probably become self-insured.

Steps to Becoming Self-Insured

1. Pay Off Debts: Focus on paying off all your debts as quickly as possible. This reduces the amount of coverage you need.

2. Save and Invest: Regularly save and invest a portion of your income. Over time, your investments will grow, providing a financial cushion for your family.

3. Live Below Your Means: Adopt a lifestyle that allows you to save more and spend less. This will help you build wealth faster.

4. Review Your Insurance Regularly: As your financial situation changes, review and adjust your life insurance coverage. You may find that you need less coverage as your assets grow.

Talking about death is never easy, but planning for it is a crucial part of protecting your family's future. Ensure that your life insurance policy is sufficient to cover your debts and provide for your loved ones. While life insurance is essential, the ultimate goal is to become self-insured by eliminating debt and building significant financial assets. This way, you can ensure that your family is financially secure no matter what happens.

Taking these steps not only provides peace of mind but also sets a strong foundation for your family's financial well-being.

Is This Mutual Fund a Good Investment?

Many people are hesitant to begin investing because they think that it is an incredibly complicated venture that is only for the uber-wealthy. I am here to tell you that it is not that difficult and you can (and should!) get started today at some level.

Most people feel this apprehension towards investing because they do not know how to tell if they are making a sound investment. There is some research that you can do to make this decision. I have a process that I go through when deciding if a mutual fund, specifically, is a good investment. Here are the questions I ask when I get ready to make an investment:

1. Do I like the product or service they are delivering? Do my children like it? I want to like a product that I am going to invest in first and foremost. If I like a product there is a good chance other people will like it as well. The same holds true for if I dislike a product or service.  

2. Is the company profitable? Does the company share those profits with shareholders in the form of dividends? I do not typically invest in companies that are not profitable although there are a lot of people that have made a lot of money off of their stock. When I invest in a company I want to see that they can move an idea towards profitability.

3. What is the P/E? Once I know if a company is profitable, I next look at the P/E or the price to earnings ratio. This is calculated by finding the earnings per share (the total profits of the company divided by the total number of shares) and the current price of the stock. The P/E is calculated by dividing the price by the current earnings per share. I want to see a P/E that is less than 20 and ideally less than 10. Now, do not freak out about having to calculate this number every time you want to invest. You can simply google the company name followed by P/E ratio and easily find out.

4. What is the vision of the company? Do I like the leadership and the direction they are headed?

To find this information, I typically utilize several different websites including finance.yahoo.com, money.cnn.com, and schwab.com.

As you can see, investing does not have to be super complicated or involve a lot of intense research. When picking mutual funds it can be as simple as checking out their products, leadership, and vision and then doing a quick check to make sure they are profitable. If you can put a checkmark next to those four boxes, you can probably say that you are making a good investment.

Do you want to learn more about how you can acquire and maintain oxen? You can get my book Oxen from our store today!