Financial Wellness Wednesdays - Peace of Mind

 

Photo Credit: Kimberle Austin Smith

Peace of Mind

What does financial wellness yield? Peace of mind. 

When you no longer are charging or borrowing, when you are on the path to paying off debt, when you have an emergency fund, you begin to have financial peace. This is truly priceless. Having a goal to be free from creditors and the fear of an emergency coming up is the first step to give you hope and peace. 

It's not just financial peace of mind, it's also spiritual peace of mind, knowing you are being a good steward of your money. That you will owe no man anything but love (Romans 13:8) is one of the best things ever.

It's relational peace of mind knowing there will be less friction with your spouse or possibly family members that you owe money to (yes, many of us have been there). Financial friction between family members, especially spouses, has a way breaking up relationships altogether.

If you have been struggling in these areas, it's not too late to bring wellness and peace of mind into your finances, your spirit and your relationships. I can help you with identifying your goals and writing out a specific plan.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Money & Marriage Mondays - Down Payment

 

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Down Payment

Are you and your spouse looking to buy a home? Dave Ramsey gives some great guidelines to follow to keep your overall debt low.

Ramsey says "If you can’t pay cash for your home, go for 20% or more down payment to avoid private mortgage insurance (PMI)"

He also states, in order to save tens of thousands of dollars or more "You want a 15-year fixed-rate mortgage that’s no more than 25% of your monthly take-home pay."

And that the 25% should include, principal, interest, property taxes, homeowner's insurance and HOA fees (if any). He provides a great mortgage calculator on his website as well so you can play around with the numbers. mortgage calculator

How long will it take you to save for a down payment? Well, it's kind of up to you.  Check out this possible scenario he provides:

Cut your expenses	$15,000
Pause retirement contributions	$12,000
Earn extra income from side hustle	$12,400
Sell stuff / skip splurges	$4,000
Total savings	$43,400

Need help in honing in on your down payment goals? I can help.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Financial Freedom Fridays - Merry Christmas

 

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Merry Christmas 

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Financial Wellness Wednesday - Ignorance is NOT Bliss

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Ignorance is NOT Bliss

One thing you do not want to be is in the dark about is where you are financially. I'm not saying you need to worry about money, but you need to know where it is going every month and how much you need to live on, both now and in your retirement years. 

Take stock of what you owe. What are the outstanding balances on loans and credit cards and what are the minimum payments. If you never borrowed (charged) anything again, how long will it take you to pay off that debt? Are you willing to let it go that long?

Do you have any retirement saved? Do you know how much you will need monthly to live on once you are retired? Are you on track to get there?

Do you have children that want to go to college? Have you started saving for this or discussed with them some debt free options for attending college. 

All of these things might bring some financial stress and you may be tempted to stop thinking about them and go on as usual. But you might find yourself in a worse situation if you do not address it now.

It's not too late. If you have been ignoring your finances in the past and now you realize you have a big mess and not sure how to proceed, I can help.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Money & Marriage Mondays - Vacations

 

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Vacations

To vacation or not to vacation, that is the question.  If you are like most couples, you likely have different perspectives on taking vacations and having fun. "You only live once"; "Enjoy it while you are alive. You can't take it with you." "We don't have money for that."

There is nothing wrong with taking a vacation and enjoying time away from the hustle and bustle of life and work. But you won't want to get in debt for it. Instead, start planning ahead for your vacations. Set up a savings fund just for vacations. 

In order to set up your fund, you will want to determine where you want to go. Plan ahead. Research the costs ahead of time so there are no surprises and no need to charge anything. Then set a date for when you want to go. Take the total costs (don't forget food and transportation costs) and divide by the number of months until the date you want to go. Can you reasonably set this amount aside each month? If not, consider pushing out the date or scaling back your vacation.

There are lots of creative ways to take vacations, but you will need to take the time to research. If you can't afford to go far then check out your state's attractions. There are national and state parks to explore and many other options. If you live within an hour or two from the mountains, lakes, deserts, or beaches, consider staying a couple nights in a nice hotel or cabin and enjoy taking hikes, skiing, bike riding, dune buggying, or snorkeling. Maybe it's not your dream vacation, but you can save for that as well.

Once you have your funds, stick to the budget. Don't give into temptations to spend money on the things not planned out. Also, if you are the one in the marriage that doesn't like to spend, make sure you enjoy yourself. You have worked hard and saved to make this vacation happen. Don't second guess the costs, just enjoy it with your family.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Money Freedom Fridays - Make a Dent in Your Debt

 

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Make a Debt in Your Dent

I hear this frequently. "I just can't seem to make a dent in my debt. I keep paying and paying, but always seem to be in the same place."

This is likely due to the fact you are only paying the minimum amount. If you want to see a dent in your debt, you need to stop using the credit cards (altogether) and start paying more than the minimum due each month.

Why stop using credit cards? Because you are charging more each month than you are paying for the minimum payment. This means your balances are increasing and the credit card companies are charging you more interest. This is like going 1 step forward and 3 steps back. You will keep increasing your balance with more charges and more interest and barely reducing the balance with your minimum payment. If you don't have the "cash" to pay for it, don't charge it. 

Once you stop using the cards and the line of equity, you will want to pay as much over the minimum payment as you can. If you don't think you can't pay more, start by not going out to eat at restaurants... at all. Or at least until you have no more debt and can pay "cash". Or how about canceling the cable bill (average of $120/month) and spending time with the family outdoors or playing games instead of sitting in front of the TV? 

Now you have at least two ways to pay off more than your minimum on your debt payments. Apply what you would have spent on each of these items, directly to your debt.

If you need help to identify "hidden" money to pay off debt or how make the most impact making a dent in your debt, I can help with that.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Financial Wellness Wednesdays - Emergency Fund

 

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Emergency Fund

There are 2 levels of emergency funds. A minimum emergency fund is $1,000 and it will will cover many emergencies like a car repair, a deductible for an emergency hospital visit or even a broken water heater. 

Once you have the minimum saved you can work on a more extensive emergency fund to cover larger emergencies such as unemployment . This fund should be anywhere from 3 to 6 months of your basic living expenses such as rent/mortgage, utilities, food and transportation. This gives you time to find another job.  

It doesn't take long to save for the minimum $1,000 fund. But you must be on purpose about it and then don't touch it under any circumstance except in a real emergency. 

One of the best ways to find money to save for your emergency fund is to make a budget. Identify your basic living expenses. Leave off amounts for going out to eat, housekeeper, pedicures, and other items that you don't really need to survive. Once you prepare your budget with only these expenses, you will identify "extra" money to put in the emergency fund. 

Now that you have a minimum emergency fund, you will also find peace of mind knowing you are covered in an emergency.  

Next step? Get rid of your debt... and I can help with that.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

 

Money & Marriage Mondays - Talk About Money

 

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Talk About Money

According to statistics, healthy marriages talk about money. When we were single, we didn't have to consult anyone. The big stuff, we often asked our parents about or a trusted friend. But now, we are sharing everything with each other. 

Most likely, you and your spouse have different perspectives when it comes to earning, saving and spending money. This is as it should be, right? If we were exactly the same, one of us wouldn't really be necessary. We each have different strengths and weaknesses and when we recognize what those are, we can help each other more effectively. Marriage is not a competition and it's not about being right or wrong. 

But it is going to take communication in order to truly know what the other person is thinking. We can't just guess or make assumptions. We need to talk and ask questions. Be sure to set a time each week to talk about budgets and expenses and dreams and goals. Make it at a time where you can minimize distractions. It could be after the kids go to bed or before they wake up in the morning. Be intentional in setting up this time and don't skip it if something else comes up. Stick to it.

What are you willing to do for a healthy marriage? Let's get talking.  

If you need someone to help get get this conversation started, I can help.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Money Freedom Fridays - No More Car Payments

 

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No More Car Payments

Don't buy into the lie that you have to borrow money to buy a car.

Here is an excerpt from a blog by Chris Hogan, expert on wealth-building, personal financial and retirement.

Eliminate Your Car Payment Forever

Let’s say the paid-for car you’re driving now is worth $12,000. Instead of taking out another loan to buy a new car, stick with your set of wheels a little longer. In the meantime, put your $554 car payment in a good money market account specifically to save for a car replacement—and, in less than two years, you’ll have $12,000 cash plus your trade-in to buy a nicer, new-to-you car without owing the bank a single penny.

Once you’ve learned how awesome saving money can be, you won’t mind driving your current car a little longer while your car-replacement fund grows. So, let’s say you get really into the spirit of saving and add $554 a month to your fund for five years, then—in less time than it would have taken you to pay off a new car loan—you could have $33,200 plus your trade-in to buy a new ride.

Of course, you don’t have to use all that cash to buy another great used car. What you could do is leave enough in your car-replacement fund to keep growing until your next car purchase. At this point, you can stop contributing to your car-replacement fund and put that $554 toward retirement instead. Now, that’s something worth working toward!

If you need help with a budget or a savings plan that can get you to your next car without a payment, I can help.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Financial Wellness Wednesday - Do You Have A Budget?

 

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Do You Have A Budget?

Many people do not use a budget because they figure they won't stick to it anyway, so why bother.

Others do not have a budget because when they think about doing one, it sounds too hard.

And still others think they don't need one.

The truth is, everyone who is earning income and spending it regularly or planning to spend it, needs a budget. Chances are, if you are reading this, you need a budget. It's not an option. Either you will tell your money where to go or you will wonder where it went.

If you haven't used one regularly, once you are established in it and actually sticking to it, you will think you got a raise. Not only that, using a budget gives you peace of mind. There are fewer surprises and fewer unknowns. It will be like a road map with rail guards (boundaries). And it help you not to forget monthly bills or savings toward irregular expenses (like annual insurance or vehicle tags, etc).

And there are many options to creating and maintaining a budget: good ole pen and paper, spreadsheets, or many, many app options. I like my old school spreadsheet but I also use an app for an on the go snapshot of what I have left to spend on groceries, gas, etc.

If you need help setting up a budget, I can help with that.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Money & Marriage Mondays - Check Your Ego

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Check Your Ego

With many married couples, there are usually 2 different spending personalities. This can get particularly tricky when one is a spender and one is a saver or one person is the sole bread "winner" or bringing in the majority of the income.

When this happens, there is an opportunity for financial friction such as "I'm bringing in the money and all you do is spend it." Or, "I'm home all day, working hard taking care of the kids and managing the house and you barely give me enough to make it all work. I work hard, I deserve ______." And there are many more possible points of contention.

This is when we have to check our ego. A marriage is not a competition, it is a completion. You each bring solid talents and gifts to the marriage. There may be times when things don't seem equitable, but you can't just look at the the things that are easy to measure, such as money. You have to look at the quality, not just the quantity in the marriage. 

It can be tricky, but the best way to do it is to put down your ego and come honestly together and communicate regularly. What will you talk about? You will talk about your financial priorities. And you should remember the dreams you dreamed together when you were dating. 

Remember, in a marriage, you are not keeping "score". There is no winner or loser in a marriage. You will both lose if you continue in the financial friction, but you will both WIN when you come together and agree on your financial future and agree on a budget and stick to it. 

If you need some assistance coming together and identifying your financial priorities and developing a budget, I can help.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Money Freedom Fridays - Giving Generously

 

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Giving Generously

Just imagine how you could give if you were debt-free? Imagine the available funds you would have if you weren't using them to payoff credit cards and car loans every month. 

Even though you may not be there yet, there are still many ways to give. Check out the attached flyer.

Bonus: Giving is good for your health too! Giving promotes happiness, not just for others, but for yourself!  And giving is contagious!

Do you want to find out how to get debt-free so you can give more generously? I can help.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.

Financial Wellness Wednesday - Student Loans

 

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Student Loans

Student loans could be from recently graduating or from 10 or more years ago. Either way, they must be paid and there is rarely any forgiveness for them and bankruptcy can not make them go away.

We have to face the facts that we must pay them off and pay them off as quickly as possible. It will take time, but stick with it. The interest adds up really fast.

Step 1: Make a monthly budget, if you don't have one . Identify things that are only wants and not really needs, like going out to eat, cable TV, clothes that you don't really need. Stop using your money for wants and apply them to your student loans as extra payments.

Step 2: If you have more than one loan, pay the minimum on all except the lowest balance one. The lowest balance loan, attack it. Pay more than the minimum amount with the money you identified in Step 1. Pay as much extra as you can until it is paid off. Then apply all of the monthly amount you were paying on the loan just paid off, PLUS the minimum on the next lowest balance loan until you pay that one off.  And keep going until they are all paid off.

For example:

Student Loan #1 balance $1,500; minimum payment $150/mo. Extra payment $50/month. Total monthly payment = $200/month. Once paid off, apply the full $200 to Loan #2.

Student Loan #2 balance $2,500; minimum payment $180/month. After Loan #1 is paid in full, apply the full $200/month you were paying on #1 to #2 loan. Total monthly payment after #1 is paid in full = $380. Once paid off, apply the full $380 to Loan #3.

And so on, until you are student loan free!!

You can do this. You need to do this. These are not going anywhere and will continue to grow with interest accruing. Some lenders will take your tax refunds or put liens on your bank accounts. It is serious. Don't ignore it. (By the way, if you get a tax refund, use it all to pay down your balance).

It is so worth it. Think of the things you could be doing with those payments. Paying off your car or house or saving for a down payment on a house, and giving generously.

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

Contact Michelle Serna by filling out the Contact Me form to the right of this post.