5 Spooky Financial Mistakes to Avoid This October

October is a month filled with spooky fun, from haunted houses to ghostly costumes. But when it comes to your personal finances, there are some spooky things you should definitely avoid.

1. Ignoring Your Budget

As the holiday season approaches, it’s easy to get caught up in the excitement and let your spending spiral out of control. But ignoring your budget can lead to a ghostly apparition: overspending. Without a clear plan, expenses can creep up on you, leaving you with a chilling credit card bill or an empty bank account.

To avoid this, make sure you set a budget and stick to it. Plan for upcoming expenses, including fall festivities, and keep track of where your money is going. Remember, a budget isn’t meant to be restrictive—it’s a tool to help you stay in control of your finances.

2. Relying Too Much on Credit Cards

Credit cards can be convenient, especially when you're shopping for costumes, decorations, and treats. But relying too much on them can lead you down a trapdoor into the dark world of debt. High interest rates can quickly turn a small purchase into a large financial burden, leaving you with a trick instead of a treat.

To avoid falling into this trap, use credit cards responsibly. Only charge what you can afford to pay off in full each month, and consider using cash or a debit card for smaller purchases. If you already have credit card debt, make a plan to pay it off as quickly as possible.

3. Skipping Emergency Savings

One of the scariest financial mistakes you can make is skipping out on building an emergency fund. Life is full of unexpected surprises—car repairs, medical bills, or even job loss. Without an emergency fund, these unexpected expenses can turn into a financial nightmare.

Start by setting aside a small amount each month until you have at least three to six months' worth of expenses saved. Having this cushion will give you peace of mind and protect you from financial monsters lurking in the shadows.

4. Neglecting Retirement Contributions

It’s easy to put off retirement savings when there are more immediate financial concerns, especially with the holidays around the corner. But neglecting your retirement contributions can come back to haunt you later in life. The longer you wait to save, the more you miss out on the magic of compound interest, and the harder it becomes to catch up.

Make retirement savings a priority, even if it means making small sacrifices in the present. Contribute regularly to your retirement accounts and take advantage of any employer matching programs.

5. Failing to Plan for Taxes

Taxes might not be on your mind in October, but failing to plan for them can lead to a terrifying surprise when tax season rolls around. If you’re not withholding enough from your paycheck or overlooking potential deductions and credits, you could end up owing more than you expected.

Take the time now to review your tax situation. Adjust your withholding if necessary, and consider meeting with a tax professional to ensure you’re on the right track. Planning ahead can help you avoid the horror of a large tax bill come April.

Don’t let these spooky financial mistakes turn your October into a nightmare. By keeping an eye on your budget, using credit wisely, building an emergency fund, staying on top of retirement contributions, and planning for taxes, you can ensure that your finances stay healthy and strong.

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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!

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. 

Budgeting With Irregular Income

Do you have irregular income? Maybe it is seasonal or cyclical.

There is a large group of folks whose family economy is powered by irregular income. Real estate agents, hair stylists, commissioned salesmen, and business owners all experience seasonal or cyclical income.

Folks who live with this type of income often tell me that it is impossible to budget. They say that they have no idea what they will make this month, so it is just impossible. I say that not only is it possible, but that folks with irregular income need to be budgeting more than anyone. It is my goal to help you stop living the feast and famine lifestyle that is so often associated with irregular income. Here’s a hint – It’s EZ!!!

Step 1 – Recognize It!

To avoid living the feast/famine lifestyle, you must recognize that you have irregular income. If you have ever suffered during the “off” season, you KNOW what I am talking about! In order to stop having your life severely impacted by “off” seasons, you must prepare! Question:  If your family economy is powered by irregular income, what do you do to prepare for “off” seasons?

Step 2 – Determine Monthly Expenses

Determine how much money is necessary to make your household operate efficiently for each month. To determine your monthly expenses, you should pull up a monthly budgeting form and do the following.

1. Fixed Expenses

   Enter all your fixed expenses – house payment, utilities, gasoline, car payments, credit card payments, saving for retirement, groceries, cell phone, childcare, etc.

2. Variable Expenses

   Enter the average of all your variable expenses – clothing, spending money, entertainment, dining out, etc.

3. Known, Upcoming Non-Monthly Expenses

   If you do not add in all of those known, non-monthly upcoming expenses, you will continue to live the feast/famine lifestyle. These types of expenses are BUDGET-BUSTERS. Here is what I do. I list all the known, upcoming non-monthly expenses and place their annual cost next to them. I then divide that number by twelve to determine how much I need to save per month.

There are lots of expenses that we all have that are non-monthly, but we know how much they will cost us.  Some examples are car insurance, car tags, life insurance, or gym memberships. This allows me to bring a stop to the feast, famine lifestyle by saving for items that I know are coming.

You now have a monthly budget that will change very little through the year! Question: What have been the biggest budget-busting expenses you have experienced?

Now, of course, the trick is to have enough cash on hand every month to make this monthly budget work!

Step 3 – Save Up Three Months’ Worth Of Expenses

WHAT?! I am sure that is what many of you are saying right now! Yes, I did say that you need to save up at least three months of expenses. Remember in step two that you calculated your monthly expenses? Multiply that number by three, and you have your savings target.

I call this savings the “Known Slumps Fund”! You know that slumps are coming, so be prepared! This is HUGE in eliminating that horrible feast/famine lifestyle!

Step 4 – Become Personally Debt-Free And Operate Your Business Debt-Free

Now, I am certain that you believe I have completely fallen off my rocker. You might be saying, “Joe, you are crazy! There is no way I can do this!” Well, I have seen many people operate their business debt-free.

What are the advantages of operating a business debt-free? Let me count the ways!

1. Monthly expense load drops! There are no interest payments to make!

2. Your business can absorb downturns much more effectively. Again, there are no interest payments to absorb!

3. Breathing room. It is amazing how much stress a pile of debt brings on.

4. When you spend your own real money, you will manage it better. I don’t know why this is, but if I am spending someone else’s money (i.e. the banks) I am much more susceptible to making a riskier decision! When I am spending my money, I am much more likely to do thorough due diligence before doing a deal!

Question: What are some other advantages of operating a business debt-free?

Budgeting With Irregular Income Is Possible

Recognize that you have seasonal or cyclical income so you can avoid the feast-or-famine lifestyle.  Next, determine what your monthly expenses are. Then save up three months’ worth of expenses in a “Known Slumps Fund” to help you weather those months when your income dips drastically or stops. Finally, live personally debt-free and operate your business debt-free.

This isn’t something you can achieve overnight, but this goal will help you make tough choices along the way to set yourself up for long-term success. Remember, budgeting with irregular income is possible!

3 Ways To Combat Inflation

 63% of Americans attribute their financial insecurity to inflation. In order to navigate through challenging financial times, it's essential to arm yourself with strategies that can help you combat the rising tide of inflation.

REVIEW YOUR EXPENSES

• Define All Income Sources: Create a list of all your income streams and explore opportunities for additional income.

• Outline fixed and variable expenses, while beginning to identify areas where you can potentially reduce costs. During challenging financial seasons, it’s important to prioritize essential spending (home, food, etc.) and lessen non-essential spending (eating out, overspending on entertainment, etc.)

COST MANAGEMENT

• Begin to implement cost-cutting strategies. Opt for store brands or generic products and share for discounts/coupons to reduce grocery expenses.

• Review your subscriptions and see if there are unnecessary ones you can eliminate. Additionally, contact your service providers for updated quotes to save money on cable, internet, etc.

• Build and maintain an emergency fund that covers at least one to three to six months of essential expenses.

PROFESSIONAL GUIDANCE

• If needed, find a financial coach to help identify your next financial steps and guide you through your personal finances.

There are ways to combat inflation! Implement these small changes to help yourself succeed during challenging financial times. We want to help you manage your money well during times of high inflation with the Inflation Busting Bundle!

Discover the tools and resources to equip you for success during challenging financial times. This full bundle includes:

• COURSE: Principles for Managing Money in Challenging Financial Times

• WEBINAR: How to Fight Inflation and Thrive

• 3 EBOOKS: On Budgeting, Debt Elimination, Bill Payment

• 1 PAGER: 10 Steps You Can Take Right Now 

• ​3 TOOLS: Weekly Budget, Monthly Budget, & Debt Freedom Date

First Time Budgeting Tips

I remember our first-ever budget. It was in July 2003. My fine bride, Jenn, came into the living room with a budget scribbled on a piece of lined paper. She had been trying to get me to budget for the past 6 months or so, but I was not playing along (because I’m a spender!).

I believed budgets were controlling, restricting, live-in-a-Maytag-refrigerator-box pieces of trash. They made me say the word “no”, and it interrupted my flow. I wanted no part of it.

But let’s consider a snapshot of my family’s financial situation when Jenn walked in:

• I was managing the money

• We had $4.13 in our checking account

• Our credit cards had a huge balance on them again – for the third time!

• We had a 105% financed car and a 100% financed truck

• There was nothing in our short-term savings account

• We were B-R-O-K-E

• I was in COMPLETE DENIAL!

I can not write this strong enough: I was B-R-O-K-E and telling my wife, “NO!” to doing something different with our finances! But, for some reason at that very moment, something happened that changed my life and marriage forever. I turned off the TV and looked at the budget she had prepared. It actually showed we could live for a month without incurring any additional debt!

LIFE-CHANGING does not describe the next few minutes. I moved into the computer room and started entering the expenses into Microsoft Excel. As I was putting together the formula to subtract expenses from the income, I realized that all of this time I could have been managing my money with the math skills possessed by the average first-grader. INCOME – OUTGO = EXACTLY ZERO! After a few minutes, we had a budget that was EXACTLY ZERO.

My life and marriage have been changed forever because we discovered that a budget is NOT restricting. It is freedom!  It is merely telling your money where to go instead of wondering where it all went. It allows you to pay off debt, save up for known, upcoming expenses, save money for emergencies, and fund your dreams.

The first budget was tough because not everything went according to the plan. Every month we had been spending an enormous amount at Wal-Mart and did not clearly know what we had spent it on. As a result, our first month was a little rough. Month two was a bit easier.  Month three was even easier.

Listen to your feelings as I write this next line: We don’t worry about money ANY MORE. We did something different. We applied God’s word and Grandma’s advice to our money and our lives have never been the same.

You CAN do this! You CAN get through the 1st month’s budget! Click on “TOOLS” at the top of the page or at the button below:

Why You Should Have A Budget

"You should have a budget."

It's a phrase that's likely crossed your path more than a few times.

If you lean towards being a saver, your heart probably gave a little leap of joy (because budgets are your jam). But if you're more of a spender (like myself), you might have felt a slight tinge of apprehension, but it’s true you should have a budget and here’s why…

Increased Savings:

• You budget should include a line item for savings. This should start as enough money put away to build an emergency fund. Think of how much easier it would be to deal with what life throws at you - by having an emergency fund ready to help!

Decreases in Inefficient Spending:

• With a budget, you track your spending month over month. If there’s a problem area for you, your budget is going to show it. Your budget will keep you from spending money on unnecessary or impulse purchases because you’re tracking every dollar! 

Accomplish Financial Goals:

• It’s difficult to accomplish goals without a plan… a budget is your plan! Create line items in your budget for your financial goals, whether that be a vacation, paying off debt, saving for a home purchase, starting a business, etc. 

Decreased Financial Stress:

• When you don’t budget, this can lead to uncertainty about where your money is going and how bills will be paid. A budget will ELIMINATE that uncertainty. Track every dollar of income that you bring in each month, and write out where each dollar will be going. 

Good Financial Decision-Making:

When you have a budget, it’s easier to make informed financial decisions, because you have a full grasp on your financial standings. Reviewing your budget month over month will help you know when to cut back on discretionary spending or adjust expenses in response to changes in income.

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.

Practicing Generosity

We all strive to be generous people. Donating to causes that are important to us, tithing at church, supporting a non-profit. Is your generosity a financial habit or do you need to learn how to practice generosity?

ONE: Be intentional

Add ‘giving’ as a line item in your two most important budgets: your financial budget and your time budget. Generosity falls into two categories giving time and giving dollars. Take the first step and identify that 'giving’ is important to you. Those who plan their time and dollars tend to accomplish far more than those who choose to ‘wing it.’

TWO: Put time on the calendar

If you are planning to "get around to doing it" or "would like to find time to be a part of that" - you will always face challenges in actually doing it. I have a team of people who help me manage my calendar - as you can imagine, it is loaded with writing, zoom and phone conversations, planning meetings with the team, and leadership tasks. But what gets on the calendar is ultimately up to me! If I am not happy with the calendar, that is my fault!

Are you being intentional with the time on your calendar?

THREE: Put dollars in the budget

Giving dollars can be broken down into the budget, just like other expenses. Budget for giving monthly, annually, and for significant events. Here are some examples:

Monthly Giving

• $50 at Christmas at Walmart

• Homeless person on street corner

• Friends or family who had a special opportunity or need

  HACK: Having the dollars pulled out in cash allows you to be "intentionally spontaneously generous"

Annual Giving

• Birthdays, Anniversaries, and other annual special days

• Organizations to support

One-time Gifts

• Weddings, special events

5 Reasons Why Budgeting Is Important

“You need a budget.”

Chances are pretty high that you’ve heard that statement before.
If you are a saver, your heart started beating wildly (because you LOVE budgets). If you are a spender (like me), you probably felt the hair raise on the back of your neck and immediately felt flashes of frustration. For those of you who are spenders…

Here are 5 Reasons Why BUDGETING Is Important:

1. It maximizes every dollar you earn.  As a spender, I can “accidentally” spend money. Preparing a monthly budget (and an annual budget once each year to cast vision for the future) allows me to know that money is limited and ensures that I maximize every dollar I do receive.

2. It makes you aware of your impulsiveness.  This is not the most pleasant feeling, but it is very helpful to be reminded that it is much easier to remain broke than it is to win with money. My budget ensures that I am continually aware of my impulsiveness and the danger that presents to my long-term goals.

3. You can buy stuff without feeling guilty.  This is probably my favorite reason for budgeting! I used to play a round of golf and feel guilty because I knew it wasn’t in the budget (because we didn’t have a budget). I’ll never forget the day that I was able to just go enjoy a round of golf and KNOW it was in the budget and I had planned for it! It didn’t help my golf score, but it did help me and my marriage!

4. You have probably married a saver (or if you aren’t married, and hope to be someday, you will most likely marry a saver)  I married a saver. Jenn is a beautiful and amazing bride, but she just does not have any desire to go spend all of our money. So when we didn’t have a budget, I nearly drove her crazy with my random ATM cash withdrawals and surprise expenses. I am certain she was the one celebrating the most when I finally “got it” and began participating in the monthly ritual of planning our spending and following that plan!

5. Budgeting will fund your dreams faster.  I know that I said #3 is probably my favorite, but I’m taking it back. This one is my favorite! I love funding my dreams. Because of budgeting, my family has been able to give more money away than we ever thought possible. We have been able to take wonderful cash-paid-for-in-advance vacations, pursue our dream of launching this organization, and pay off our house! All in 10 years and 1 month! I can’t WAIT to see what happens in the next 10 years!!!!

Saving For KUEs

There are three things we should ALWAYS be saving for. 

1. Emergencies

2. Known Upcoming Non-Monthly Expenses

3. Dreams 

Of these three, our focus today is on KUE’s - the known upcoming non-monthly expenses. This savings bucket can tend to be difficult and can create budget issues.

Here’s why:

1. They are non-monthly  Because of this, we tend to forget about them until they show up

2. They are usually larger expenses  Property taxes, insurance premiums, Christmas, vacation, car maintenance, and repairs, and insurance deductibles usually have larger price tags than typical monthly expenses

3. We don’t save for the expenses monthly  We wait until the bill arrives and then we are forced to scramble in an attempt to pay for it

If not saved for probably these known expenses can become budget-crushing expenses!

Here’s a step-by-step way for you to eliminate “Budget Crushing Expenses” from your life:

1. Download our free “Known Upcoming Expenses Calculator” tool HERE.

2. Enter all your “Known Upcoming Expenses” into the tool – include the annual expense of each line item.

3. Enter your “# of Pay Periods Per Year” into the tool – enter “12” if paid monthly, “26” if paid every 2 weeks, “52” if paid weekly, and “24” if paid twice each month.

4. You have now calculated the amount you need to save out of each paycheck to ensure all of your Known Upcoming Non-Monthly Expenses are covered.