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.

Money Wellness Wednesday - Emergency Fund Spending

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Emergency Fund Spending

You worked hard to save up for an emergency. Even though you know these funds are for emergencies, there are sitting there in savings and tempting you to spend them. 

Make sure you ask these 3 questions before spending your emergency funds: 

1) Is the thing you want to spend your money on UNEXPECTED? For instance, do you need to pay your rent or mortgage because you lost your income due to downsizing or health? Or did you just forget about a big bill that comes up annually? 

2) Is this something that is absolutely NECESSARY? Sometimes things seem "necessary" because it looks like a really good deal that you may never see again and you were thinking about getting it anyway. But at the end of the day, it is still just a want.

3) Is this URGENT? If you decide it is a need, is it something you have to have today or can you wait and save up to buy it later? If your water heater is making some pinging and knocking noises but it isn't broken, you can save up over the next few months for it so you won't have to dip into the emergency funds.

And if you decide it meets all 3 criteria above and you have to dip into the emergency funds, make sure you build that fund up again as soon as possible, you know, in case of another ergency.

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

Contact Michelle Serna by filling out the Contact Me form.

Money Freedom Friday - Be Free

Photo Credit: Michelle Serna

Be Free

This weekend, we celebrate our freedom. We celebrate America's declaration of independence from things that kept us from being free to make our our decisions.

This weekend, I encourage you to make a declaration of independence from being in debt. "I am FREE to be independent of what others say I should have and do that causes me to be in debt. I am FREE to be independent from "but that's just the way life is" debt. I am FREE to make my own decisions on what is best for me and my family.:"

Do not accept debt as normal. Do not accept debt as necessary. See finances in a new light. See money as just a tool. See yourself directing your money instead of it directing you. Make the hard choices now so you can see FREEDOM from debt, not just in your imagination, but in actuality. 

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

Contact Michelle Serna by filling out the Contact Me form.

Money & Marriage Monday - Why Talk About Money?

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Why Talk About Money?

I love this article from Dave Ramsey. And my favorite part is: "... [it] doesn't mean you'll never have hard conversations..." 

Money can be difficult to talk about and work through, but it is critical to a healthy marriage. Money problems don't go away and are the second leading cause of divorce.

"Getting on the same page now doesn’t mean you’ll never have hard conversations in the future—but it will help you avoid fighting about money because you’ll be going in the same direction. Talking about money helps you lay the groundwork for a healthy marriage that stands the test of time.

Remember, when you get married, you become a we. It's a big shift. And talking about money forces the two of you to discuss really important issues-like goals, dreams, how you want to retire, and what legacy you hope to leave. 

These conversations build a shared vision in your marriage-which makes you more financial secure and stronger in your relationship." 

Get the conversation started today.

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

Contact Michelle Serna by filling out the Contact Me form.

 

Money Freedom Friday - It's Time To Make a Change

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It's Time To Make a Change

Do you work hard? Are you tired of working and working and working and still feeling broke? You work too hard to be broke. It's time to make a change. As Dave Ramsey says:

"Don't borrow another dollar. Your future is too valuable to continue to give it away to monthly payments. Make a decision to turn things around. It's not going to be easy, but it's worth it. You CAN do it."

What do you need to change? Do you have a monthly budget? Do you know where ALL your money is going? Start tracking it. You might be surprised to see where it is going. Once you identified where all your money is going each week, you can see where you could cut back and begin paying down debt faster.

Most importantly, the best way to pay off debt is to stop entering into debt. It's very tempting. A new car with seemingly "easy payments". A home renovation project. After all, you "deserve it." The easiest debt to get into is credit card debt.  It's sneaky. "Oh, it's just a few dollars on the credit card." But it adds up. Stop using the credit card. 

It's TIME to make a change. 

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

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - Post-Pandemic Spending

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Post-Pandemic Spending

This is real. We have been under so many restrictions and have had to sacrifice so many things that it feels like we need a reward, we deserve to do something for ourselves. But think carefully about what you decide to reward yourself and your family with. You don't want to blow your budget or your financial goals. Make a plan and see how spending on the things you want will impact your financial goals. Will there be a significant delay in reaching your goals? Is it worth it?  This way, whatever you decide, you will go in with eyes open and not out of emotion or impulse.

Per Dave Ramsey's website, here are some common areas we want to "splurge" on:

• Expensive meals
• Salon treatments
• Home repairs or remodels
• Traveling
• Cars
• Clothing
• Furniture

If you already gave in to these temptations, it's ok. Just re-map your goals and start fresh.  We fall but we just get back up again. 

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

Contact Michelle Serna by filling out the Contact Me form.