Lower Your Home & Auto Insurance

When was the last time you obtained quotes for your home and auto insurance?  It is very, very important to carry both home and auto insurance. However, that does not mean that you should pay the highest dollar amount possible!  Here are some tips to lower some of these costs and add some extra green to your budget.

Homeowners Insurance Tips:

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

• Consider increasing the deductible to reduce your premium costs.  If you are managing your money well and have built your emergency fund to at least three months of expenses (Rung #5), you may consider increasing your deductible.  This can result in a substantially lower insurance premium.

• Example: If you increase your deductible from $500 to $1000 and the premium drops to $400 a year, this is probably a no-brainer.  The premium is the only cost guaranteed to happen, and an event requiring the use of the insurance is not. If you are able to make it fourteen months without a claim, you will come out ahead financially.  Even if a claim happens two years down the road, you will pay the $500 more in deductible, but you will have saved $800 in premiums (two years at $400 per year in reduced premiums due to increasing the deductible by $500).  

• Shop around for the best rates every two years.

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

Auto Insurance Tips:

• Always have auto insurance.

• Bundle with other types of insurance to get discounts.

• Shop around for the best rates every two years.

• Obtain at least three quotes – one of them from an independent insurance agency.

• Obtain quotes with different deductibles.

• Obey the traffic laws.

• Be very cautious buying car insurance from family or friends without getting quotes from other places.  

Try out some (or all!) of these tips and save some money today!

How To Navigate Family Finances During The Holidays: Money Conversations Made Easy

The holiday season is a time of joy, celebration, and, often, financial stress. Navigating conversations about money with family can be challenging, but with the right approach, you can make these discussions easier and more productive. Here’s how to handle money conversations with your family during the holidays with ease.

Approach Conversations with Empathy and Understanding

When discussing finances during the holidays, it’s crucial to approach the conversation with empathy. Start by creating a supportive environment where everyone feels heard and respected. Share your financial concerns and limitations in a way that is considerate of others' perspectives. For instance, instead of saying, "I can't afford this," try, "I’m trying to stick to a budget this year and need to be mindful of my spending." Practice active listening to understand each family member’s financial situation and expectations.

Set Boundaries and Manage Expectations

Setting clear financial boundaries helps prevent misunderstandings and unrealistic expectations. Clearly communicate your spending limits for gifts, travel, or holiday events. For example, if you’re planning a family gift exchange but have a set budget, explain it in a way that emphasizes your desire to keep the holiday enjoyable without financial strain. Use phrases like, "I’d love to participate, but I need to stay within a certain budget," and be open to negotiating and compromising to find a solution that works for everyone.

Focus on Shared Goals and Values

Aligning financial conversations with shared family goals and values can shift the focus from money to what truly matters. Discuss the traditions and experiences that everyone values most and find ways to incorporate them into your holiday plans without overspending. Consider creating new, cost-effective traditions that highlight togetherness and joy. For example, instead of expensive gifts, you could plan a family game night or a potluck dinner, which can be just as meaningful and enjoyable.

Navigating family finances during the holidays doesn’t have to be a source of stress. There are ways you can manage holiday finances more effectively and enjoy a more meaningful holiday season. We encourage you to engage in open and honest discussions to ensure a joyful and financially stress-free holiday. Remember, effective communication not only helps manage money but also strengthens family bonds and enhances the holiday experience.

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!

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.

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!

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. 

3 Ways To Teach Your Kids Financial Principles

Are your kids at that age where they're curious about money and how it works? Teaching children financial principles early in life can set them up for a lifetime of success. Here are three creative ways to help your kids understand the value of money and develop good financial habits.

Try These Ideas:

• Assign Chores with an allowance: link chores to a weekly allowance. This teaches kids the value of work and earning money, Encourage them to give, save, and spend appropriately. 

• Plan A Family Budget Meeting: Sit down as a family and create a mock budget for a summer activity or vacation. Involve your kids in the decision-making and prioritizing expenses. This will give them a practical understanding of budgeting, plus let them in on planning fun for the family. 

• Cooking Together: Cooking meals together provides an opportunity to discuss the cost of groceries and the value of homemade meals compared to eating out. You can also introduce concepts like meal planning, shopping within a budget, and avoiding food waste. 

Incorporating these activities into your summer plans can help your kids develop important financial skills while still enjoying quality time together. For more creative ways to teach your kids about money, download this month’s key resource by becoming a free Fully Funded Life member. Access this month’s resource and future ones on your free membership dashboard.

By making financial education fun and interactive, you can set your kids on the path to financial responsibility and independence.

Inexpensive Summer Fun

Ah, summer—the season of scorching sun, endless days, and the unrelenting desire to cool off without breaking the bank. Is it possible? There’s a variety of activities that seem to continually make you swipe the card: waterparks, baseball games, amusement parks, and more. 

There are ways to stop overspending in the summer months. Use these inexpensive summer fun ideas: 

• Water Gun Battle: Cool off and have a blast with a family water gun fight. Set up obstacles, devise strategic plans, and prepare to get drenched in the name of victory.

• Visit a Pick-Your-Own Farm: Spend a day at a farm picking your own fruits or vegetables. It’s a great way to teach kids about where their food comes from, and you get to enjoy fresh produce. 

• Homemade Ice Pops: Create your own ice pops with fruit juice, yogurt, or pureed fruits. Get creative with flavors, experiment with funky molds, and be proud of your homemade delicacy! It’s a delicious way to beat the heat.

• Community Pool Day: Spend a day swimming and playing in your neighborhood or community pool. 

• Sidewalk Chalk Art Festival: Turn your driveway or a section of the sidewalk into an art gallery. You can even have family members vote on their favorite pieces. 

But what if you're still struggling to stick to a budget? In addition to these inexpensive ideas, consider using our FREE budget tools to help you stay on track. The best way to make financial progress is with a plan. Access our budget tools here. 

5 Reasons To Save For Summer Now

Can you believe how quickly summer is approaching? Before we know it, the days will be longer, the weather warmer, and the smell of sunscreen will fill the air. While it may seem like summer is still a few months away, now is the perfect time to start setting money aside, here’s why: 

1. It's Coming Quicker Than You Think:

Before you know it, those lazy days by the pool, backyard barbeques, and spontaneous beach trips will be upon us. By starting to save for summer now, you'll be better prepared to make the most of the sunny days ahead without feeling rushed or stressed about your finances.

2. Summer Expenses Can Add Up:

Summer comes with a hefty price tag. From family vacations to amusement park tickets to outdoor concerts, the cost of summer activities can quickly add up. By saving for summer in advance and budgeting for specific activities, you can alleviate the financial strain of not planning. 

3. Your Kids Cost Money:

This summer might look financially different, especially if you have kids. From summer camps, sports, and new seasonal clothing, the financial impact of summer can be significant. By saving for summer now, you can budget for these additional expenses and ensure that you're prepared for whatever the season throws your way. 

4. Take Advantage of Early Bird Deals:

By saving in advance, you can jump on early bird deals and discounts. With the funds ready to take advantage of these special offers, you can lock in lower prices for everything from flights and accommodations to theme park tickets and outdoor excursions. Plus, booking early gives you more time to plan and research your summer adventures, ensuring a stress-free, enjoyable experience for you and your loved ones.

5. Financial Security:

Perhaps the most important reason to save for summer now is the financial security it brings. By setting aside money in advance, you'll have a financial cushion to fall back on when unexpected expenses arise or last-minute opportunities present themselves. Whether it's a spontaneous road trip or an impromptu beach day, having a savings fund dedicated to summer activities ensures that you can say "yes" to life's adventures without hesitation.

As summer draws near, there's no better time than the present to start saving. Whether you're dreaming of family vacations, outdoor adventures, or signing up for summer camps, taking the time to save now will ensure that you're able to make the most of the summer months without worrying about your finances. So start stashing away those savings, and get ready to live your fully funded summer!

How To Plan A Vacation For The Saver & Spender In Your Marriage

Are you and your spouse gearing up for an exciting vacation? How many of you could say one of you is the spender, and the other is the saver? This can make vacation planning a little bit of a challenge, especially when it comes to accommodating both the spender and saver dynamics within your marriage. 

But…it can be done! Here’s how: 

1. Understand Each Other's Priorities:

Take some time to have an open and honest discussion with your partner about your vacation priorities. What does this vacation look like? Is it a luxurious getaway at a five-star resort or a budget-friendly Airbnb stay? Will there be multiple activities or relaxed beach time? Will you make meals or dine out?  Understanding each other's desires and motivations sets the foundation for a successful vacation planning process. 

2. Compromising on a Realistic Budget:

Now that you've laid out your priorities, it's time to look at your finances and crunch some numbers. Sit down together and hash out a realistic budget that accommodates both partners' financial comfort levels and vacation goals. This might involve some compromises, but remember, it's all about finding common ground and setting realistic expectations.

3. Balancing Splurges and Savings:

Keep an eye out for deals and discounts for your vacation. Consider searching for flight deals, signing up for hotel loyalty programs, or hunting down coupons for local attractions. Just think, saving on airfare or local excursions, may allow you to increase spending elsewhere in your budget: whether that’s a fancy dinner or souvenir shopping. 

With a little patience, compromise, and teamwork, you can plan a vacation that satisfies both the spender and saver in your relationship.

By laying out a realistic budget, understanding each other’s vacation priorities, and finding creative ways to balance splurges and savings, you'll set yourselves up for a successful and enjoyable vacation experience. Here’s to your next fully funded vacation!! 

4 Things That Prevent You from Achieving Your Dream Vacation Fund

We all have that DREAM vacation in mind. What’s yours? Is it Bora Bora, an African safari, New Zealand, or another miraculous place? 

The truth is, saving up for that dream vacation can seem daunting, even impossible at times. However, today, we're going to tackle the obstacles that stand between you and your dream vacation fund and trust me, by the end of this journey, that dream vacation will be closer than ever before.

Lack of Financial Planning

Often that vacation can feel so out of reach because we’ve been dreaming not planning. Without a plan, it's easy to financially drift aimlessly. Take some time to create a budget and a financial plan tailored to your dream vacation. Mark a date on the calendar, it could be this year or three years from now, and set aside a specific amount each month leading up to that date. Just watch how your vacation fund begins to grow! 

Unnecessary Spending

As you work towards your dream vacation, begin identifying between wants and needs. What do you need to say ‘no’ to for a season to save for your dream trip? Before swiping that card or adding it to the cart, ask yourself if it's worth sacrificing a slice of paradise for.

Unexpected Expenses

Life has a funny way of throwing curveballs when we least expect it. Car repairs, medical bills, home maintenance – you name it, these expenses can drastically affect your vacation fund if you don’t have other savings. Building an emergency fund is like having a financial safety net. It cushions those unexpected blows and can keep your dream vacation fund intact.

Procrastination 

‘I’ll start saving tomorrow…” Well, tomorrow turns into next week, next week turns into next year, and before you know it nothing has been saved. Don’t let procrastination delay your progress. Start today, even if it's just a small amount. Your future self will thank you for it.

Avoid these four habits and start building your dream vacation fund today! 

Don’t Let Saving Paralyze You

Saving is a crucial part of financial stability. However, it’s important to recognize instances where the fear of risking savings can lead to missed growth opportunities. Don’t let savings paralyze you from taking calculated risks through investment for a more secure future. 

Role of Investments:

• Savers often prefer the safety of savings accounts, but low-risk options may not always provide sufficient returns for long-term goals. Investments, such as stocks, bonds, and mutual funds, offer the potential for higher returns over time. I’d encourage you to acknowledge the role investing can play in creating increases in wealth. 

Risk Tolerance:

Investments can carry a degree of risk, but understanding and managing that risk in relation to your financial goals can lead to more confident decision-making. Consider your comfort level with market changes and invest accordingly. 

Retirement:

• Savers who aspire to retire comfortably need to recognize that relying solely on savings accounts may not be enough. Investments like 401(k)s, IRAs, and other retirement accounts provide avenues for long-term wealth growth. By strategically allocating funds to these investment vehicles, you can maximize your retirement savings potential.

Leaving A Legacy:

• Building wealth through investments can ensure that your legacy extends beyond your lifetime. Consider exploring investment options that align with your legacy goals, such as creating a trust or investing in assets that appreciate over time.

Savers, it's time to break free from the paralysis of saving and explore the world of strategic investing!. Remember, calculated risks are a vital part of financial growth, and by incorporating smart investments into your strategy, you can unlock new possibilities for a legacy that lasts! 

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! 

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..

Are Your Savings Working For You?

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

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

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

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

Competitive Rates

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

Safety

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

Take The Next Step: Start Saving!

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

Here are some facts about saved money:

• Saving money is essential to long-term sustainability

• Saving money relieves stress

• Saving money allows you to take a chance

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

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

I want to challenge YOU to take the next step!

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

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

Ways To Start:

Automatic Draft From Paycheck

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

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

Create An Escrow Account For Known, Upcoming Expenses

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

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

Take the next step and start saving today!

Savings - A Vehicle To Accomplish Your Dreams

What is margin? How does it relate to savings?

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

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

1. Cash On Hand Savings (Financial Reserves)

2. Monthly Savings (Operational Margin)

1.  Cash On Hand Savings (Financial Reserves)

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

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

2.  Monthly Savings (Operational Margin)

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

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

Accomplishing Your Dreams Through Margin:

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

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

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

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

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

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

Have You Shopped Insurance Recently?

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

• When was the last time you thought about insurance?

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

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

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

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

Here are a few tips:

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

• Shop around for the best rates every two years.

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

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

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

Furthering Your Financial Education

Have you ever found yourself feeling stuck when it comes to your finances? Could it be because you haven't had the chance to dive into the right knowledge or education about personal finance?

Like any subject, we don’t know every answer to our financial questions. We can’t. That’s why it’s so important to continually strengthen yourself in the areas of personal finance. Just think for a moment: you might have a strong budgeting habit, but are you confident in your savings plan?

Here's the good news – you're not alone! Many of us have asked similar questions or faced challenges due to a lack of knowledge.

So, how can you find ways to consistently educate yourself?

• Educational Blogs

• Financial Community

• Helpful Tools

Another way to take the next step in leveling up your financial knowledge? Complete a personal finance study!

With foundational truth from scripture, learn how to budget, save, invest, plan ahead, and maintain momentum on your financial journey. The I Was Broke. Now I’m Not study blends scripture and money in a relevant, engaging, and life-changing way for you!

How Do I Create Good Financial Habits

Our financial habits are the guiding point for our financial journey. Just like a ship needs a sturdy compass to navigate through rough waters, good financial habits provide you with direction, control, and a sense of purpose. Good habits allow you to make informed decisions, adapt to changing circumstances, and achieve your dreams. 

Start with these steps and begin creating good financial habits:

Learn & Educate: 

Knowledge is a powerful tool for financial growth. Invest time in reading financial literature and resources that enhance your understanding of budgeting, saving, investing, and other areas of personal finance.

Define Your Goals:

Set specific, and timely financial goals. These give your financial habits a purpose and a roadmap to follow. Identify short-term and long-term aspirations, such as creating an emergency fund, paying off credit card debt, or saving for a dream vacation. Linking your habits to these goals will keep you motivated and on track!

Create A Budget: 

Build your realistic budget. Track your income and expenses diligently to understand where your money is going. Keep track of every dollar! Allocate funds for essentials, savings, and discretionary spending. Stay disciplined by sticking to your budget and making adjustments when necessary.

If you need help building out your budget, use these resources: 

Automate Where You Can: 

Take advantage of automation - it can be a built-in habit! Struggling to save each month? Set up automatic transfers to your savings accounts, ensuring that a portion of your income goes directly towards your financial goals. 

Creating good financial habits requires dedication and patience. You have to decide to decide - and start today! By practicing these habits consistently, you can shape your financial future and work towards achieving your goals. Your future self will thank you for the positive changes you make today.