Money Freedom Fridays - Pay Yourself First

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Pay Yourself First

Most often, when you hear the term "Pay Yourself First", its referring to putting money in your savings account first before paying your bills.

I like this different spin on pay yourself first - paying off your debt first. Make your extra payment on debt first so don't risk spending that money on other things you can't really afford. 

Once you get all that debt paid off, now you can start putting all those debt payments towards savings and retirement accounts. Imagine saving money for a "new" car every month. Then when you need the "new" car, you have the money saved already and no more car loans? 

Do the math. How much more will you be able to actually save monthly after paying off all your debt? 

Get out of debt and stay out of debt. This is financial freedom. If you are not sure where to start, I can help.

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

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - Emotions and Money

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Emotions and Money

Paying off debt and saving money is math. It is "simple". Anyone can do the math. But finances are more than just math. Finances can be emotional. When there are lack of finances or an abundance of debt, it can cause fear and anxiety. When you are free from debt and are able to save money for the future, it can bring a sense of security and peace. Maybe you think you are doing well for a while because all the bills are paid and you are not behind on debt but then something happens. If only you didn't have that car payment, maybe it would be just what you need to get through.

So even though logically the math is easy and makes sense, you won't get financially healthy unless you decide to get emotionally healthy. Don't let your finances cause you any further anxiety.  Decide to master those emotions and take control of your finances.

When you are finally tired of riding the financial emotional roller coaster, then you will be ready to make a change. 

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

Contact Michelle Serna by filling out the Contact Me form

Money & Marriage Mondays - Put It All On the Table

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Put It All On the Table

Newlyweds: check out this great advice from Dave Ramsey's website .

"Transparency is key! Be open and honest about your current individual situations, including your debt and your views on money. You might want to discuss what your parents taught you about money and what you do and don’t agree with—kindly, of course. Stay away from criticism and judgment. Learn how to communicate effectively with your spouse. "

One of the best ways to start your marriage is to know where each of you stand with money. Talk about savings and spending habits and any debt you may have. Put it all on the table with no judgment. Then, together, make a monthly budget and tackle any debt you may have. Get any debt paid off quickly. Put other wants or desires on hold until you get it done. You'll be glad you did. If you are not sure where to start, I can help with that.

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

Contact Michelle Serna by filling out the Contact Me form.

 

Money Freedom Fridays - Debt Free Journey

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Debt Free Journey

That's right, becoming debt-free is a journey. Not only that, it takes an effort to stay debt-free. There seem to always be opportunities to spend money and reasons to borrow money to spend it.

So your journey will be a combination of things to do now and things to keep doing - just like the tic-tac-toe board above shows. 

Every time you pack a lunch instead of going out to eat, you get to put the money you saved toward debt pay-offs. Or if you have no debt, you get to sock that money away towards emergency savings, retirement, vacations and other goals. Or you get to give it to someone who needs extra help. Either way, it's a continual decision to just pack your lunch or cook dinner instead of going out to eat. 

What decisions did you make today on your debt-free journey?

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

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - Free From the Unknown

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Free From the Unknown

Always know where you stand financially. Many of us do not get paper statements. Many do not use a bank account register (which I highly recommend using one). As the saying goes, "out of sight, out of mind". Until.... you are getting overdraft fees because you didn't realize or you happen to notice the balance on your credit card statement. Then a sense of fear tends to come over you. 

I highly recommend checking your bank account balance daily and seeing the transactions that are occurring. We have all heard of the the hackers that pick up your debit card information at a coffee shop or gas station. Avoid this by paying cash and also by noticing irregular transactions on your bank account. This is one reason why it's important to check your balances daily. 

Also, be aware of debit card purchases that are run as "credit". These may take a few days to hit your account. If you are not using a bank account register to log in every purchase as you make it, then you will have remember what those debit card purchases are that have not reduced your balance yet. You may have less money than what the bank balance shows.

Check your credit card statements. Maybe not necessary to do daily, but check your transaction history to make sure all charges belong to you. It can also be an eye opener to see how much interest has been added to your balance. 

If you have followed my blogs at all, you know I recommend not using your credit card at all. Stop using it and pay it off as quickly as possible. Check your statements regularly to see how close you are getting to paying it off. Seeing that interest compounding can give you extra motivation to get it paid off entirely.

If you are concentrating on building up your retirement, be sure to check retirement account balances to see that you are on track. Discuss any questions you have with your financial advisor. They are also happy to help. (If you need an advisor, let me know and I can refer some to you.)

Get free from the unknown. It's more scary to not know where you stand financially than when you do know. If you know, you can do something proactive about your finances. Otherwise, you are just letting them lead you to the great unknown.

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

Contact Michelle Serna by filling out the Contact Me form

Money & Marriage Mondays - Emotions and Communications

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Emotions and Communications

Emotions can cause barriers to communication about money. Especially if the emotions are negative due to money stress. When communications break down, marriages tend to break down.

What typically causes emotions surrounding money? A high level of debt. Maybe you don't even realize the reason you are emotional or cranky is because of debt related stress.

Ramsey Solutions research shows that:

"Sixty percent (60%) of those with consumer debt say they worry about finances monthly, and one in four say they worry about finances every day."  

The research also shows those couples with a high debt level are less likely to talk about money or are anxious talking about it. Others are just flat out embarrassed. "How did it get this bad? I really messed up."

Yes, it can be embarrassing or make you feel anxious. But I can help. I am not here to judge you. I am here to show you a way out. The only reason to look back is to see where you don't want to be again. It's time to look forward. Take a deep breath and realize, there is hope.

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

Contact Michelle Serna by filling out the Contact Me form.

Money Freedom Fridays - Pay Off Debt

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Pay Off Debt

Here's a fun math fact: If you got rid of a $160 per month debt payment, it would be like getting a $1 per hour raise in a 40 hour work week. That's $1,920 per year. 

Now, $160 per month can go to pay off other debt, put towards your 3-6 month emergency fund, put towards retirement or maybe even giving. 

Think about it. Wouldn't it be great to get rid of 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.

Financial Wellness Wednesday - Live Within Your Means

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Live Within Your Means

Spend Less than you make. This should be the goal if you are in debt or if you want to stay out of debt. 

"I don't know where my money goes. It seems to be gone before I know it." If this is you, start tracking where your money goes. If you don't use a register to track your money, try checking your bank statement for the last month to see where you are spending your money.  Also, check your credit card statements to see where you are spending.

Tracking your money will tell you where you spend it. If you know where you spend your money, then you can identify where you might be overspending.

Then, make a budget. If you have more going out than coming in each month (including credit card charges), you now know where your money is going and you can see where you can cut back. Common overspending areas are entertainment, eating out, and electronic upgrades. 

I can help you find where your money goes every month and make a plan to stop overspending and live within your means.

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

Contact Michelle Serna by filling out the Contact Me form

Money & Marriage Mondays - The Debt Disadvantage

 

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The Debt Disadvantage

According to a survey conducted by Ramsey Solutions, debt causes more arguments in marriages.  

"Couples who fight about money have roughly $30,000 in consumer debt on average, with nearly two-thirds (63%) of all marriages starting off in the red. That debt load is having a negative impact on marriages, regardless of household income. Forty-one percent (41%) of couples who have consumer debt say they argue about money—and it’s what they argue about the most. In comparison, only 25% of couples who are debt-free say they argue about money. Plus, money doesn’t even make the top-five list of things debt-free couples argue about.

Bringing debt into marriage is trending upward over time, with younger generations having much more debt than the generations that came before them. Forty-three percent (43%) of couples married more than 25 years started off in debt, while 86% of couples married five years or less started off in the red—twice the number of their older counterparts." 

Entering marriage with debt can be a disadvantage. But there is hope. It may take some financial sacrifices to get out from under the stress of debt, but your marriage is worth it, isn't it?

I can help you develop a plan to get that debt paid off, and sooner than you may think. 

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

Contact Michelle Serna by filling out the Contact Me form. 

Money Freedom Fridays - From Credit to Cash

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From Credit to Cash

Let's decide to stop using credit cards. If you can't afford to pay cash/debit for it, don't buy it. If you stop using your credit cards today, you will stop adding to the principal balance of your credit cards. If you stop adding to the principal balance, you can pay it off faster!

Every time you go online or to the store, before you pull out the credit card, ask yourself a question. Is this a need? Like, truly a need? Or do I just want this? If it is truly a need, what is keeping me from paying cash? Is it because I am using my cash for things I don't really need, like cable television or going out to eat instead of cooking at home?

Those wants are keeping you chained to debt. Today is the day you decide not to be in bondage to credit card debt anymore. Take the credit card out of your wallet. Maybe cut it up (don't cancel it until it's paid in full, though). Make the decision today to cut out all unnecessary spending that is keeping you from being free from the chains of credit cards. And realize the "points" and "rewards" you are earning on those cards are so tiny compared to the extra purchases and the interest that is accruing on the cards that you can't pay off in full.

I can help you identify your wants vs. needs and get you on a plan where you begin to tell your money what to do instead of it telling you what to do.

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

Contact Michelle Serna by filling out the Contact Me form.

Financial Wellness Wednesday - Budget Busters

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Budget Busters

Dave Ramsey's website offers insights on identifying budget busters and how to get them under control. 

"Budget busters are those categories that always seem to kill your perfectly planned-out budget. It's the categories you just can't seem to get under control month after month. 

Typically, stuff like eating out, gas, kids’ activities, entertainment, personal spending and even housing can get out of control pretty quickly. 

And right now, quarantine has many people struggling to keep their grocery budget under control. The kids are eating more meals at home (and asking for 80 snacks a day). You’ve started new hobbies like baking bread and perfecting those chocolate chip cookies. On top of that, your normal go-to items at the grocery are out of stock, leaving you with the expensive name brand stuff or bulk goods that will take you a year to get through. (Who needs this much cheese?)

So, what do you do if you’re always blowing the budget? Cut back in other areas. This is where you start to ask yourself some trade-off questions: Where can I flex my planned categories in order to stay on track? What can I sacrifice more of in order to keep that grocery bill from steering me off course?" 

“(My grocery bill is) definitely higher. But my other bills are much less. Such as gas, eating out, not paying $1,050 a month for day care. So we are definitely ahead, even with spending more on groceries.” — Ashley S.

Does any of this sound familiar? Identifying the issues and then make some adjustments. Budgets are guides and meant to be adjusted for life changes.

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

Contact Michelle Serna by filling out the Contact Me form.

Money & Marriage Mondays - Let's Talk

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Let's Talk

In marriage, do not be afraid to talk about money. In fact, if you don't talk about money, be more afraid of what will happen to your marriage.

Time and time again, we hear about couples divorcing. One of the top reasons for divorce is due to money stress. Stress shows up for many reasons. It can occur when you have irregular income due to self-employment or contracts expiring. It can occur when you have more month left than you have money. It can occur when you and your spouse have different spending and saving habits.

Ideally, come together before you get married and discuss your views on spending and saving money and debt. If you do not have the same perspective, that's ok. But it's critical to get on the same page about how you will come together to manage the household income and how you will spend it or save it.

It's never too late to talk about it. Go on a date to discuss goals. Where do you want to be financially in 5 years, 15 years, or at retirement? Do you have a plan to get there? Are you both on the same page? If not, what can you agree on about the future and about what you can do today to meet those goals?

I can help you look at your current situation and help you develop a plan to get to your goals. 

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

Contact Michelle Serna by filling out the Contact Me form.