Money Freedom Fridays - Lies That Keep People in Debt

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Lies That Keep People in Debt

Debt - everyone seems to have it. It's just normal, right? We have to be in debt to make it, right?

Debt keeps our money bound up. It causes us to get into more debt to pay for our basic needs like food. It keeps us from being in control of where our money goes.

Here are a few Lies that keep us in debt that we don't have to believe anymore (ramseysolutions.com.).They are just that, lies. 

• Debt is normal (or even beneficial)
• There are good debts - and tax benefits (no, there really aren't)
• 1 in 4 Americans who have debt are in collections for at least one of their debts.
• Having a budget limits freedom
• Many don't even know how much debt they are in because they don't track it
• If you are watching where every dollar goes, you will understand how much you are throwing away on debt.
• Out of 80% of Americans currently using a budget, 88% say they keeping a budget helped them stay out of debt.
• Not using debt is a scary lifestyle change
• Debt seems comfortable. You have always had it. But it's just as easy to buy things without debt. If you don't have the money, you don't buy it.
• Millions of people are living without debt. You can do it.
• Getting out of debt isn't a priority
• Debt sneaks up on you. You may not realize just how much you have. You just keep making the monthly payments. 
• If you are only paying the minimum payments, it keeps getting bigger even if you don't get into any more debt. Interest accumulates and compounds.
• What could you be doing with those minimum payments or those car payments instead? What would your retirement fund look like if you invested in that instead of debt?

Make no mistake, creditors are making a lot of money on our debt. We are causing others to be wealthy when we pay them thousands of dollars in interest and fees as we remain poor.

"Debt is normal, choose to be weird."

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Freedom Friday - Millionaire

Millionaire 

Only 15% of millionaires had a career in which they held a senior leadership role like a vice president or CEO of a company.

According to Dave Ramsey, the top 5 careers of millionaires are:

• Engineer
• Accountant (CPA)
• Teacher
• Management
• Attorney

To become a millionaire, you've got to start investing wisely. If you are debt-free with an emergency fund in place of 3-6 months expenses, it's time to start investing 15% of your income for retirement. 

If you have a 401k plan, it's a great place to start. If not, you don't have to go it alone. Get in touch with an investment advisor who can walk with you and teach you about the options that are right for you. If you don't have anyone, I can refer you to some amazing advisors.

Where are you on your journey? Are you ready to start amping up your investments? 

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money & Marriage Mondays - Effects of Money Fights

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Effects of Money Fights

I recently saw this list of some negative effects on marriage when we fight over money. It was in an article by Rachel Cruze. Do any of these things resonate with you?

• A lack of shared dreams
• Financial infidelity (hidden purchases)
• Poor health 
• A lack of trust
• Divorce

One way we can stop fighting each other over marriage is to recognize that you each may have differences in how you approach money and to realize that neither of you is "wrong". Many couples have different money personalities. For example, often one is a saver and one is a spender. But that's a good thing! Now you can combine your differences and help each other with your strengths. 

But if you don't communicate your perspective on money, you will never know what your differences are. So come together and discuss your perspectives on money. Be sure to come with an open heart and open ears. Really listen to each other. 

Now that you understand each other better, the next step is to make a plan that incorporates both of your money perspectives. For instance, have a "slush" fund budget for the spender in your marriage where they can use a set amount of money for whatever they want, like going out to lunch or buying tools, with no questions asked. Then there is no argument because you already budgeted for the spending. 

Money fights can lead to a lot of negative effects, however, we can move in a positive direction to reduce and ultimately stop the money fights.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - It Takes Work

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It Takes Work

Getting healthy takes work: exercise, changing eating habits, etc. And it can be hard. Even when you are healthy, it takes work to stay healthy. Getting healthy is not a destination, it's a journey. It takes changing your lifestyle and the way you look at what you eat, everyday! 

It's the same with getting and staying financially healthy. It's a lifestyle change and often takes a change of mindset. We must intentionally work on not getting back into debt. We must intentionally not buy things that we don't need, especially when trying to get out of debt. We must intentionally save: have an emergency savings fund and savings for those things we know we are going to need in the future.

Don't miss your opportunity to stay healthy just because it looks like work. Taking the path of least resistance, the least amount of work, will keep you from becoming healthy or will end you back to where you used to be. It does get easier to maintain the health after you get there, but it is still work.

Let's put in the work.  What habits do you need to give up? What habits do you need to put in place?

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - Back to School Spending

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Back to School Spending

I just came across this message from Rachel Cruze and it's perfect timing. Before my kids became young adults and almost fully independent, it was so tempting to spend on them (even now, to be honest). You want the best for them. You want better for them than what you had. And the reasons go on and on. Check out her article below.

We tend to spend more when it’s for our kids. (That’s not just me, right?) From the moment they’re born, we justify spending more because it’s for their safety, education or general well-being. After all, they’ll only be this little once! But here’s the truth: The best thing you can do for your kids’ future is set the whole family up for success. If you’re living paycheck to paycheck, burdened by debt, and spending more than you have just so your kids can have the trendiest shoes or enroll in the most prestigious sports, that’s not helping anyone. So, try not to get caught up in the back-to-school hype. Write down your list of needs, make a budget, and stick to it. It sounds simple, but it’s the small acts of intentionality that lead to a solid financial foundation and a legacy you can be proud of. Love, Rachel Cruze

Write it down. Make a budget. It really does make a big difference in how you spend your money when you plan it out and see it in front of you. And it's a lesson for your kids as well. They may not get it now, but they will remember when they are making their own way. 

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - Long-Term Thinking

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Long-Term Thinking 

I love the statement above: "Almost all long-term thinking has short-term pain. Almost all short-term thinking has long-term pain and short-term relief."

Sometimes we make quick decisions about spending or we make quick financial commitments (debt). How many times did you go to the store or the car lot just to "look". Before you know it, you have signed papers for a new car loan or charged $500 to your credit card. You may have short-term relief or short-term joy, but now you may also have long-term pain of getting out of debt. You have traded your living expenses or other opportunities to spend your money (like giving) for a long-term debt payment without consulting your long-term plan.

But if we were to wait and think ahead and plan out the long-term, we would then have a plan to tell our money where to go and not allow ourselves to get caught up in more debt. We can see when we will actually need that car and put a plan in place to save for it. We can stay on track to get out of debt before purchasing those "wants" and obtaining those things which only give short-term relief or joy.

It really brings home that quote by Benjamin Franklin, “If you fail to plan, you are planning to fail!”

If you haven't already done it, put a monthly budget together. Then look forward and plan out your year. Then look forward again and see where you want to be financially in 5 years, 10 years, and even to retirement. It's just a plan. It could change, but having it written out will help you stay on track. Having it broken out into these chunks of time will make it more achievable. Then make sure you monitor and make adjustments as necessary. It might be painful at first to stick with the plan, but in the long-term, it will bring lasting financial relief.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money & Marriage Mondays - Money Baggage

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Money Baggage

Let's face it, money is not generally the first thing you think about with respect to compatibility when you meet your spouse. 

But... it cannot be avoided. Ultimately, money questions will have to be faced if you have any type of long-term relationship. You bring your money baggage and your spouse brings theirs. 

Money baggage comes in many forms. Some bags are heavier than others. Perception of money baggage differs too. What may seem "heavy" to you, may not be "heavy" to the one bringing it. 

The key is not to avoid it. Open up all the bags and unpack them, preferably before you get married. Be honest in your feelings. If you are not open and honest from the beginning, it will put a strain on the relationship later. Come to an agreement of what to do about past money baggage and how to handle money going forward, together. Get on the same page. Re-visit as necessary to make sure your plan to go forward is on track.

Although, it may be scary, unexpected, or maybe even easy, when you know what to expect going forward, then do the work needed to get rid of the baggage.  That way, money doesn't have to be the main focus because of pressure. It can be put to the side and just work through as you planned so you can concentrate on each other and the things that made you truly fall in love. 

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.