Are You Teaching Your Kids About Budgeting?

Are you teaching your kids about budgeting? 

Money is a foreign concept to most children until they are about 4 or 5 years old. It is at around this age they become aware that money has the ability to purchase things. However, most of their financial knowledge is focused on spending because that is what they SEE happening with money.

• Mom gives money to the grocery store clerk and carries groceries out of the store.

• Dad swipes his credit card at the gas pump, and it allows him to put gasoline in the vehicle.

• Grandma gives money to her beautiful grandchildren (your children, of course) and you take the child down the toy aisle to buy something with it.

Since “spending” is what we see happening with money from our earliest days, it is what most children grow up knowing about money. For them, money equals spending.

The important financial principles of giving, saving, investing, and budgeting are not learned. Consequently, grown children leave the house knowing only that money equals spending. This is a recipe for financial disaster!

Here’s a simple thing you can do immediately to change that for your children (grandchildren):

Ask the child to prepare a budget for any money they receive – BEFORE they are allowed to spend any of it.

For example, when my wife and I started teaching our daughter about budgeting, we would give her birthday money. She and I count the money so we know exactly how much she has received, and then I confiscate it. Upon receipt of a well-planned budget, I release the money to her for use. Later on, I do a “check in” to ensure the money has been used according to the plan.

One time my daughter was planning the use of $20. Her first budget had $2 for giving, and $18 for spending. I rejected it because there was no saving or investing. Her revised plan showed $2 for giving, $0.25 for saving, and $17.75 for spending. She gave the budget to me with a smile – knowing there was little chance of it being accepted.

I rejected it.

Her third try included giving, saving, investing, and spending. I released the funds to her.

Here are the reasons I love this process:

1. Teachable Moments This process creates space for “teachable moments” about money. It forces a conversation about the importance of giving, saving, and investing. It allows us to talk about the “spender” mentality that we both share.

2. Learned At Home Before my daughter enters the real world, she is receiving real financial knowledge that will set her apart. She knows what a mutual fund is and how it operates.

3. The Pain of Wasting $20 is Less Than The Pain of Wasting $20,000 I want her to recognize the pain of poor financial decisions NOW when she is making $20 decisions so she doesn’t have to learn the lesson with a $20,000 purchase later.

4. My daughter actually enjoys the process It has helped her save a substantial amount of money toward her first car. She has financial margin. She knows her parents care about her.

I have my daughter use our FREE BUDGETING TOOLS.

My book, What Everyone Should Know About Money BEFORE They Enter The Real World, is a perfect resource for helping your child start out life with the financial tools and principles essential to life.

4 Ways To Make Sure Grad Season Doesn’t Break The Bank

Graduation season is right around the corner, and while it's a time for celebration and excitement, it can also be a major financial strain. From graduation parties to gifts and everything in between, the costs can quickly add up. But it is possible to ensure that grad season doesn't break the bank, with these tips: 

1. Create a Plan:

The first step to ensuring a budget-friendly graduation season is to create a plan – specifically, a budget. Sit down and closely examine your finances, identifying how much you can realistically afford to spend on graduation-related expenses. Consider all aspects of graduation season, whether your child is graduating or several young people you know are graduating. By establishing a budget upfront, you'll have a defined plan and can avoid overspending on unnecessary items.

2. Identify Biggest Costs:

Within your budget, take time to identify the largest costs associated with graduation season. List them out. Whether it's hosting a graduation party, purchasing gifts for friends and family, or covering the costs of graduation attire and accessories, pinpointing the most significant expenses will help you prioritize your spending and allocate your budget accordingly. 

3. Identify Unexpected Expenses:

After you outline the largest costs, take time to factor unexpected expenses into your budget.  From last-minute party decorations to unforeseen travel expenses, having a buffer in your budget for these unexpected costs will help prevent any financial surprises from derailing your plans or leading towards debt! 

4. Get Creative:

If your family is hosting a graduation party this year, get creative! Consider DIY-ing elements of the celebration where you can. Whether it's catering in the entree and making the sides yourself or creating homemade decorations and party favors, there are plenty of ways to throw a memorable and budget-friendly graduation party. If this is your second time hosting a grad party, consider reusing decorations from previous years! Get your friends and family involved, tap into your creative side, and watch the savings add up!

As graduation season approaches, it's important to create a plan, identify the largest costs, anticipate unexpected expenses, and get creative with your celebrations. It is possible to enjoy a memorable and meaningful graduation season without sacrificing your financial stability!

5 Reasons To Save For Summer Now

Can you believe how quickly summer is approaching? Before we know it, the days will be longer, the weather warmer, and the smell of sunscreen will fill the air. While it may seem like summer is still a few months away, now is the perfect time to start setting money aside, here’s why: 

1. It's Coming Quicker Than You Think:

Before you know it, those lazy days by the pool, backyard barbeques, and spontaneous beach trips will be upon us. By starting to save for summer now, you'll be better prepared to make the most of the sunny days ahead without feeling rushed or stressed about your finances.

2. Summer Expenses Can Add Up:

Summer comes with a hefty price tag. From family vacations to amusement park tickets to outdoor concerts, the cost of summer activities can quickly add up. By saving for summer in advance and budgeting for specific activities, you can alleviate the financial strain of not planning. 

3. Your Kids Cost Money:

This summer might look financially different, especially if you have kids. From summer camps, sports, and new seasonal clothing, the financial impact of summer can be significant. By saving for summer now, you can budget for these additional expenses and ensure that you're prepared for whatever the season throws your way. 

4. Take Advantage of Early Bird Deals:

By saving in advance, you can jump on early bird deals and discounts. With the funds ready to take advantage of these special offers, you can lock in lower prices for everything from flights and accommodations to theme park tickets and outdoor excursions. Plus, booking early gives you more time to plan and research your summer adventures, ensuring a stress-free, enjoyable experience for you and your loved ones.

5. Financial Security:

Perhaps the most important reason to save for summer now is the financial security it brings. By setting aside money in advance, you'll have a financial cushion to fall back on when unexpected expenses arise or last-minute opportunities present themselves. Whether it's a spontaneous road trip or an impromptu beach day, having a savings fund dedicated to summer activities ensures that you can say "yes" to life's adventures without hesitation.

As summer draws near, there's no better time than the present to start saving. Whether you're dreaming of family vacations, outdoor adventures, or signing up for summer camps, taking the time to save now will ensure that you're able to make the most of the summer months without worrying about your finances. So start stashing away those savings, and get ready to live your fully funded summer!

How To Plan A Vacation For The Saver & Spender In Your Marriage

Are you and your spouse gearing up for an exciting vacation? How many of you could say one of you is the spender, and the other is the saver? This can make vacation planning a little bit of a challenge, especially when it comes to accommodating both the spender and saver dynamics within your marriage. 

But…it can be done! Here’s how: 

1. Understand Each Other's Priorities:

Take some time to have an open and honest discussion with your partner about your vacation priorities. What does this vacation look like? Is it a luxurious getaway at a five-star resort or a budget-friendly Airbnb stay? Will there be multiple activities or relaxed beach time? Will you make meals or dine out?  Understanding each other's desires and motivations sets the foundation for a successful vacation planning process. 

2. Compromising on a Realistic Budget:

Now that you've laid out your priorities, it's time to look at your finances and crunch some numbers. Sit down together and hash out a realistic budget that accommodates both partners' financial comfort levels and vacation goals. This might involve some compromises, but remember, it's all about finding common ground and setting realistic expectations.

3. Balancing Splurges and Savings:

Keep an eye out for deals and discounts for your vacation. Consider searching for flight deals, signing up for hotel loyalty programs, or hunting down coupons for local attractions. Just think, saving on airfare or local excursions, may allow you to increase spending elsewhere in your budget: whether that’s a fancy dinner or souvenir shopping. 

With a little patience, compromise, and teamwork, you can plan a vacation that satisfies both the spender and saver in your relationship.

By laying out a realistic budget, understanding each other’s vacation priorities, and finding creative ways to balance splurges and savings, you'll set yourselves up for a successful and enjoyable vacation experience. Here’s to your next fully funded vacation!! 

I Can’t Budget - The Money Lies You Tell Yourself

There are many excuses for not budgeting.  It is hard, it can be time-consuming, and you might not feel like you make enough to budget.  I get it. But if you have been believing any of these excuses and using them as a reason why you cannot budget, you are believing a lie!  I am not going to lie to you, budgeting can be challenging. If it were easy, people would not feel so intimidated by it.

Ultimately, budgeting or not budgeting is a choice.  There is not a situation that prevents you from completing a budget.  You either choose that you are going to win with your money or you choose to let your money run you.  I know which option I am choosing. A budget allowed me to do so much more than I ever thought possible in terms of my finances.  A budget set me free.

• A budget allows me to know where every single dollar is going BEFORE I am ever paid.

• A budget provides me with choices – because I plan it before I receive it.

• A budget allows my bride and I to have constructive conversations every single month about our plans, hopes, and dreams.

• A budget allowed me to pay off all of my non-house debt in just 14 months.

• A budget allowed me to pay off my house in 10 years and 1 month.

• A budget allowed me to send my daughter off to college without incurring any student loans, fulfilling a dream of mine.

You can come up with as many reasons as you would like to not budget.  But, there are so many more reasons that you need one! It will set you free and allow you to do more than you ever thought possible, just as it did for me.

Try some of these practical ways to make a budget work well for you:

1. Use a budget tool:

Budget tools will do the math for you.  This keeps you focused on the financial decisions at hand instead of facing a terrible math quiz.  You can try our FREE BUDGET TOOLS HERE and they will do all the work for you!

2. Build an emergency fund equal to a full month of EXPENSES:

Notice I said expenses, not a full month of your income.  Once you have saved enough for an entire month of expenses, you can ignore multiple paychecks and use the Monthly Budgeting Tool instead. And, you will rid yourself of a level of stress that you may not have even known you had!

3. Be realistic:

If you are just beginning to prepare a monthly budget, it is important to be realistic about your expenses.  Do not tell yourself that you will spend $3.45 on groceries in the next month. That is not possible and you will fail if you structure your budget this way.  If you have a household of kids that are involved in 62 after-school activities, do not put $0 in your dining-out budget. Go through your debit/credit card history and see what your spending habits are.  Once you have determined what your history is, you can trim to what is reasonable.

Remember, no matter how daunting of a task you think budgeting is, it is going to beat not budgeting 10 out of 10 times.  Do it. You need it.

4 Things That Prevent You from Achieving Your Dream Vacation Fund

We all have that DREAM vacation in mind. What’s yours? Is it Bora Bora, an African safari, New Zealand, or another miraculous place? 

The truth is, saving up for that dream vacation can seem daunting, even impossible at times. However, today, we're going to tackle the obstacles that stand between you and your dream vacation fund and trust me, by the end of this journey, that dream vacation will be closer than ever before.

Lack of Financial Planning

Often that vacation can feel so out of reach because we’ve been dreaming not planning. Without a plan, it's easy to financially drift aimlessly. Take some time to create a budget and a financial plan tailored to your dream vacation. Mark a date on the calendar, it could be this year or three years from now, and set aside a specific amount each month leading up to that date. Just watch how your vacation fund begins to grow! 

Unnecessary Spending

As you work towards your dream vacation, begin identifying between wants and needs. What do you need to say ‘no’ to for a season to save for your dream trip? Before swiping that card or adding it to the cart, ask yourself if it's worth sacrificing a slice of paradise for.

Unexpected Expenses

Life has a funny way of throwing curveballs when we least expect it. Car repairs, medical bills, home maintenance – you name it, these expenses can drastically affect your vacation fund if you don’t have other savings. Building an emergency fund is like having a financial safety net. It cushions those unexpected blows and can keep your dream vacation fund intact.

Procrastination 

‘I’ll start saving tomorrow…” Well, tomorrow turns into next week, next week turns into next year, and before you know it nothing has been saved. Don’t let procrastination delay your progress. Start today, even if it's just a small amount. Your future self will thank you for it.

Avoid these four habits and start building your dream vacation fund today! 

3 Ways To Overcome Financial Anxiety

Are you constantly feeling stressed or anxious about your finances? You're not alone. Many of us grapple with financial anxiety at some point in our lives, but the good news is that there are steps you can take to become more confident in dealing with your personal finances. 

Start reducing your financial anxiety through these three steps: 

Step 1 - Outline A Clear Plan: 

One of the most effective ways to reduce financial anxiety is by having a clear plan in place for your money. Just as you plan for your life – setting your plans, hopes, and dreams – it's equally important to have a plan for your finances. 

Start by creating a realistic budgeting. Having a clear understanding of where your money is going can help reduce uncertainty. Remember, a budget isn't about restricting yourself; it's about empowering yourself to make informed financial decisions that align with your goals and values.

Do you have a plan?

Step 2 - Pursue Education:

Not knowing is intimidating. It can lead to a paralyzed feeling, especially when it comes to finances. Remember, none of us are born experts at anything – it's through learning and practice that we become proficient.  

Take advantage of resources such as online blogs, books, videos, and financial mentors to expand your knowledge and confidence in handling your finances. Whether it's understanding basic financial concepts, learning how to invest, or mastering the art of budgeting, education can be a huge help in overcoming financial anxiety. 

Step 3 - Financial Coaching & Counseling: 

Sometimes, financial anxiety can be deeply rooted in past experiences or emotional wounds related to money. 

A qualified financial coach or counselor can help you explore your money mindset, identify any limiting beliefs or money wounds, and develop healthy coping strategies to overcome financial anxiety. Remember, it's okay to ask for help and seek support when needed. Coaching and counseling can help you cope and overcome! 

Learning how to thrive in the midst of financial anxiety is possible! While you may not be able to eliminate anxiety entirely, taking proactive steps to address and manage it can significantly reduce its impact on your life. By creating a clear plan for your finances, educating yourself about personal finance, and seeking professional support when needed, you can build the confidence and resilience to navigate any financial challenges that come your way. Use these steps and continue to live your fully funded life!

3 Tips For a Stress-Free Vacation

Stress & Vacation - sounds like an oxymoron… However, we can all think of that one vacation trip that actually ended up being more stressful than relaxing. 

Today we’re delving into the realm of stress-free getaways with three insightful tips that speak specifically to your finances. 

1. Plan and Budget Ahead

One of the most crucial components of a stress-free vacation is a budget. Begin outlining your travel expenses – accommodation, transportation, meals, and activities. Create a realistic budget and stick to it. Consider factors like currency exchange rates, local costs, and potential unexpected expenses. By having a clear financial plan, you not only prevent overspending but also allow yourself to relax and enjoy your getaway without constantly worrying about your bank balance.

2. Leverage Rewards and Discounts

Before booking anything for your vacation, explore the potential rewards and discounts available. Whether it's through credit card points, airline miles, or loyalty programs, these perks can reduce your travel expenses. Research discounts to maximize your savings without compromising the quality of your vacation.

3. Choose Off-Peak Times and Destinations

Do you typically travel during peak travel times? Opt for end-of-season travel periods and destinations to capitalize on reduced costs. Off-peak times not only offer more budget-friendly options for flights and accommodations but also provide a more relaxed and enjoyable experience as you won't be contending with crowds.

Stress-free vacations are within reach! By budgeting realistically, leveraging rewards, and considering off-peak times, you can transform your getaway from a stressful mess to complete relaxation!

Known, Upcoming Expenses - How To Save

There's a common challenge that we all encounter – Known, Upcoming Expenses. Those expenses that creep up month after month, those anticipated yet sometimes overlooked financial obligations. Here’s how you can start saving for known, upcoming expenses: 

Identify Your Known,  Upcoming Expenses

Here are a couple of common expenses that people have: 

• Car tires need to be replaced 

• Heating & Air goes out 

• Christmas 

• Vacation

• Birthdays

• Anniversaries

• Life insurance premium

• Property taxes 

• Health Insurance Deductible 

Create a list and track the known, upcoming expenses in your household. Name the expense and the month in which it will occur. 

A great tool to help you with this financial planning exercise can be found HERE. Create your free account and access the Known, Upcoming Expenses Calculator.

Automate Your Savings

The best way to plan for known, upcoming expenses? Save for them! 

Create separate savings allocations for each anticipated expense. Whether through dedicated bank accounts or labeled cash envelopes, ensure that your funds are earmarked for their intended purpose.

Also, saving doesn't have to be an active task! If your bank account has the ability, consider setting up automatic transfers to your designated savings accounts for known upcoming expenses. This not only eliminates the temptation to spend but also establishes a consistent savings routine.

Managing your known, upcoming expenses is not an art; it's a learnable skill. By identifying your expenses, planning, and maintaining a savings approach, you position yourself to navigate without worry! 

How Much Money Do You Need To Retire

If you've been a regular visitor to this space, you already know our team at I Was Broke. Now I’m Not. values planning – especially when it comes to dollars and cents. Today, let's dive into a topic that's not just important but downright crucial – calculating the magic number for your retirement. Because let's face it, knowing how much money you need to retire is as vital as sunscreen on a scorching day.

So, let's cut to the chase. How much money do you need to retire? It's not just a rhetorical question. Do you know how much you need?  It’s easy!  Take a mere five minutes – yes, you heard it right – to complete the following two tasks. It's a mini-financial adventure that promises to be worth every second.

TASK 1 - Calculate Your Number

Head over to our tools page and fill out the form! When you do so, you will receive access to several tools, but for today locate the tool: Retirement Nest-Egg Calculator

Within moments, you'll have a clearer picture of the nest egg required to retire in style.

TASK 2 - Face the Question: Are You Going To Retire Well?

Now, armed with your newfound knowledge, it's time for a bit of reflection. Are you on track to retire well? Does your current plan align with your retirement aspirations? This isn't just about numbers; it's about the life you want to lead when your work-life becomes a distant memory.

The challenge is set. Take those five minutes, tackle the tasks, and unlock the door to a future where retirement isn't a question mark but an exclamation point!

4 Reasons Why You Need a Budget for Your Vacation

We've all been there – scrolling through dreamy vacation destinations, imagining the taste of delicious foods, and feeling the thrill of adventure. But before you take flight, let's talk about the unsung hero of a fantastic vacation: the budget.

Let’s explore the top four reasons why you NEED a budget for your next vacation:

You Need a Place to Stay

Let's kick things off with the most fundamental aspect of any trip – finding the best place to stay. Imagine arriving at your dream destination only to discover that all the budget-friendly accommodations are fully booked, leaving you with limited options that break the bank. 

By crafting a well-thought-out budget, you can ensure your accommodation is not only comfortable but also leave enough room in your wallet for unexpected local experiences.

You Need to Eat

What is your budget accommodating for? Are you dining out for every meal, are you filling your Vrbo’s fridge with groceries? 

With a carefully planned budget, you can savor the local delicacies without burning a hole in your pocket. From street food to fine dining to meals made at your rental,  your taste buds and your wallet will thank you for planning ahead. 

You Want to Have Fun

What's a vacation without fun experiences to look forward to? Whether it's exploring ancient ruins, snorkeling in the bluest ocean, or skiing in the mountains – having fun is non-negotiable. A well-crafted budget allows you to allocate funds for those unforgettable experiences, ensuring that you make the most of every moment without worrying about the financial aftermath.

You Don’t Want to Sacrifice Other Goals at the Expense of Your Vacation

Sure, a vacation is a fantastic way to recharge and create lasting memories, but it shouldn't come at the expense of your long-term financial goals. Whether it's saving for a home, investing in your education, or planning for retirement, a budget ensures that your dream vacation doesn't derail your broader financial aspirations.

In conclusion, a budget is not just a financial tool; it's your passport to stress-free, enjoyable travel. So, before you embark on your next adventure, take the time to craft a budget that aligns with your goals and allows you to make the most of every moment. After all, a well-planned budget is the key to start living your fully funded life!

Don’t Let Saving Paralyze You

Saving is a crucial part of financial stability. However, it’s important to recognize instances where the fear of risking savings can lead to missed growth opportunities. Don’t let savings paralyze you from taking calculated risks through investment for a more secure future. 

Role of Investments:

• Savers often prefer the safety of savings accounts, but low-risk options may not always provide sufficient returns for long-term goals. Investments, such as stocks, bonds, and mutual funds, offer the potential for higher returns over time. I’d encourage you to acknowledge the role investing can play in creating increases in wealth. 

Risk Tolerance:

Investments can carry a degree of risk, but understanding and managing that risk in relation to your financial goals can lead to more confident decision-making. Consider your comfort level with market changes and invest accordingly. 

Retirement:

• Savers who aspire to retire comfortably need to recognize that relying solely on savings accounts may not be enough. Investments like 401(k)s, IRAs, and other retirement accounts provide avenues for long-term wealth growth. By strategically allocating funds to these investment vehicles, you can maximize your retirement savings potential.

Leaving A Legacy:

• Building wealth through investments can ensure that your legacy extends beyond your lifetime. Consider exploring investment options that align with your legacy goals, such as creating a trust or investing in assets that appreciate over time.

Savers, it's time to break free from the paralysis of saving and explore the world of strategic investing!. Remember, calculated risks are a vital part of financial growth, and by incorporating smart investments into your strategy, you can unlock new possibilities for a legacy that lasts! 

Top 5 Ways To Improve ROI

Everyone wants to receive a positive return on their investment. We are delaying the use of our money so that we can have more money in the future – at least that is the goal. However, many people are seeing negative ROI over the past several years. These are the five rules that can help you maximize your money!

1. Don’t invest for the short-term.

I am just not smart enough to make sense of every single nuance of the entire world. And sometimes seemingly unrelated items have a major impact on financial performance. For this reason, I spend a great deal of time thinking about which investments to choose before I acquire them, and then I hold them for the long term. Day-trading (or anything like it) has a feeling very comparable to gambling in Vegas, and it usually winds up with the same result.

2. Diversify Your Investments

Don’t think just about the stock market. I have personally invested about 50% of my money into publicly traded stocks and mutual funds, but my best returns on investment over the past ten years have occurred through private investments. When managed correctly, rental real estate is an excellent investment that provides an immediate return through rental payments and a long-term return through property value appreciation. Other alternative investments include starting a business, investing in another’s business, land, commercial real estate, and private bond offerings.

3. Maintain Substantial Margin In Cash

If I do not maintain liquidity, it becomes very difficult for me to maintain rules One and Two.  Without financial margin, I am more likely to be “jumpy” and leap out of investments when they trend downward.

Having substantial cash on hand also allows me to take advantage of tremendous opportunities – many of them may be “once-in-a-lifetime” opportunities that will require cash money right away.  If all of my money is tied up in investments (or all of my money is gone), then I am not able to take advantage of these great investments.

For me, it is helpful to keep 10-15% of my money in cash or cash equivalents.  I hold a lot of my savings in online FDIC-insured savings accounts that pay interest equivalent to a two-year CD, but do not have the liquidity issues that CDs have.  I really like Capital One 360 – it’s my favorite!

4. Conduct Trades Online

Brokerage commissions and fees can consume substantial portions of an investment’s return – especially when one accounts for the fact that the fees continue even when the market value drops.

I personally use Sharebuilder for my online trading platform, but all of the online trading platforms like Scottrade, E*Trade, and TDAmeritrade are great as well.  There are numerous ways to learn more about how to invest in stocks and bonds, and it is important to gain that knowledge.  However, once you are ready to roll with the actual transaction, the online route is much more economical and does not require a phone call and a reliance on a broker to execute the trade.

5. Invest In What You Know

I don’t invest in random items that I have “heard” are good investments because it will be extremely difficult or even impossible for me to know if things are going well or how certain news might impact that investment.  I like technology.  This means that I naturally follow what is happening in the technology market.  I’m a consumer of their products.  When I see a good solution or product, I know it because I am directly impacted by it.  That means I am a more informed investor when it comes to technology companies.  I love manufacturing, and I continue to watch and monitor what is going on in the world of manufacturing.  It also means I am an investor in it.

My dream of “helping people accomplish far more than they ever thought possible with their personal finances” has been the largest single investment I have ever made – because I BELIEVE IN IT and because I KNOW IT.

Navigating the Saver/Spender Dynamic in Marriage

Are you and your spouse on opposite ends of the spending spectrum? Month after month do you consistently feel like you’re not on the same page? If so, you're not alone—many couples wrestle with this challenge. 

When one of you identifies as the 'spender' and the other proudly wears the 'saver' badge, navigating the saver/spender dynamic in marriage may initially feel like a delicate financial balancing act. But fret not – balance is possible! Here are a few tips to find financial harmony in your marriage: 

For The Spenders: Establishing Accountability and Setting Goals 

Create A Realistic Budget:

Kickstart the journey towards financial accountability by developing a realistic budget. This doesn't mean your spouse is scrutinizing every transaction, but rather it's about keeping both of you on the same page. Allocate specific amounts for necessary expenses, and importantly, set aside a dedicated portion for discretionary spending. This approach allows the spender in your relationship to enjoy purchases they desire while maintaining financial boundaries.

Set Clear Financial Goals:

Define short-term and long-term objectives, such as paying off debt, saving for vacations, or contributing to retirement. These tangible goals provide purpose and act as a guide for thoughtful spending decisions. Regularly engage in conversations with your spouse about your financial goals to create a supportive environment, reinforcing informed spending decisions.

For The Savers: Balancing Saving, Enjoyment, and Opportunity

Creating a 'Fun' Line Item:

Strike a balance between fun and financial responsibility by incorporating a designated 'fun' line item into their budget. Allocating a reasonable amount for entertainment, dining out, or leisure activities with your spouse allows guilt-free enjoyment within predetermined limits that won't compromise your financial goals.

Seek Opportunities To Build Wealth

While saving is crucial, don't let it hold you back from potentially lucrative investment opportunities. Investing involves risks, but it also presents the chance to build wealth. Adjust your mindset to see investments as strategic moves that can contribute to your financial well-being over the long term.

Navigating the saver/spender dynamic in marriage requires understanding, compromise, and open communication. By adopting strategies inspired by both spenders and savers, you can start creating financial harmony in your marriage. Remember, finding the right balance is key to a fully funded life! 

How 'Savers' Can Add Fun Into The Budget

How many of you would identify as a ‘saver?’ Do you find it difficult to incorporate fun in your budget?

Being a saver doesn't mean forgoing fun; it's about finding a balance that allows you to enjoy life while still meeting your financial goals. Here’s how you can do so without compromising your saving habits.

• Create a ‘Fun’ Line Item

• Instead of restricting yourself entirely, create a designated ‘fun’ line item within your budget. Determine a reasonable amount of money that you can allocate to entertainment, dining out or leisure activities each month. This way, you can enjoy guilt-free spending within the allocated limit, knowing that it's part of your financial plan.

• Explore Cost-Effective Entertainment Options

• Just as you would look for coupons and discounts for groceries or oil changes, explore cost-effective entertainment options in your community! Fun doesn't have to come with a hefty price tag. Attend local events, explore parks, or engage in outdoor activities that don't require significant spending. Many communities offer free concerts, discount museum passes, or sales on fitness classes, providing enjoyable experiences without straining your budget.

Being a saver doesn't mean living a life devoid of enjoyment. By incorporating these tactics, you can strike a balance between saving for the future and enjoying your fully funded life! 

Be 100% Debt Free!

Picture this: a life where your hard-earned dollars aren't shackled to debt payments and mortgages. How much extra cash would you have in your pocket every month? We're talking about potential savings ranging from $1,000 to $3,000! Imagine the possibilities!

My friend and financial hero, David Bach, once said - ‘it's not just about choosing between prepaying a mortgage or investing in stocks and bonds. The real question is: which decision propels you toward financial freedom and an early retirement?’

Drawing from his 9 years at Morgan Stanley, David discovered something profound. Clients who fast-tracked their journey to being debt-free, especially by paying off their mortgages early, were retiring a solid 5 to 10 years earlier than others still struggling with debt. 

Let's break it down with some numbers. Take a $150,000 30-year mortgage with a 6.0% interest rate. 

The power of paying that off early is not just about numbers on paper; it's about reclaiming years of your life for the things that truly matter.

Are you looking for more resources? Dive into our free tools today!

2024 is the year we break barriers, shatter financial ceilings, and declare loud and clear - we are debt-free, and the house is officially ours!

How To Create Accountability As A 'Spender'

Raise your hand if you’re a self-proclaimed ‘spender?’ 

A recent poll conducted by the New York Post revealed that 56% of Americans identify themselves as "spenders," indulging in purchases they truly desire. 

While treating oneself occasionally is perfectly acceptable, establishing accountability for spenders is crucial to maintaining financial well-being and stability. 

3 Strategies To Establish Financial Accountability 

1. Create A Realistic Budget:  One of the most effective ways to establish accountability for spenders is through budgeting and the tracking of expenses. Create a monthly budget that outlines all of your expenses and allocates a specific amount of spending money.

2. Set Clear Financial Goals:  This can be a powerful motivator for responsible spending. Start by defining your short-term and long-term objectives, such as paying off debt, saving for a vacation, or contributing a certain dollar amount towards retirement. Having tangible goals creates a sense of purpose and can help you think twice before making impulsive purchases. 

3. Find A Trusted Accountability Partner:  Pairing up with a trusted friend, spouse, or financial advisor creates a support system to hold each other accountable for your spending decisions. Regular check-ins, discussions about financial goals, and shared progress can significantly impact and reinforce responsible spending habits.

Remember, being a spender doesn't have to conflict with being financially responsible; it's all about finding the right balance.

5 Smart Ways To Put Your Tax Return To Use

It's that time of the year again – tax return season! Instead of letting that extra cash burn a hole in your pocket, let's turn it into a powerful tool for financial growth.

Here are 5 smart ways to make the most out of your tax return.

1. Put towards paying off debt:

   • Consider using a chunk of your tax return to tackle lingering debts. Whether it's high-interest credit cards, student loans, or other outstanding balances, putting your tax return towards debt repayment can be a game-changer!

2. Build an emergency fund

   • Life is unpredictable, and an emergency fund is your safety net. Allocate a portion of your tax return to start or build up your emergency fund.  It's not just about being prepared for the unexpected; it's about facing life's curveballs with confidence and financial security.

3. Increase your savings:

   • Use your tax return to boost your existing accounts or kickstart new ones. Whether it's a retirement fund, a high-yield savings account, or an investment portfolio, your tax return can be the catalyst for future financial growth.

4. Make an additional mortgage payment:

   • If you own a home, consider using your tax return for home improvements that add property value or additional mortgage payments. Calculate how much you could save on your mortgage by adding extra payments.

5. Contribute to education:

   • Use your tax return to fund education – whether it's furthering your own skills, supporting a family member's education, or contributing to a 529 plan. 

This tax season, let's not just see our returns as numbers on a check. Let's view them as opportunities to transform our lives. Whether it's breaking free from debt, creating financial stability, or increasing savings, wisely using your tax return can be the first step towards your fully funded life. 

3 Essential Steps to Cultivate Healthy Financial Habits

Financial success isn't merely about luck; it's about adopting the right habits and taking intentional steps towards a secure financial future. Did you know that 83% of people that set financial goals feel better about their finances after just one year? There is transformative power in setting clear financial objectives! Here are three essential steps that can help you cultivate healthy financial habits and pave the way toward your fully funded life. 

Step 1: Establish Clear Financial Goals

Setting clear, achievable financial goals is the foundation of a sound financial plan. When you set goals, whether short-term or long-term, you gain a clear direction for your financial decisions. Outline your goals for saving, investing, debt elimination, and retirement planning. These goals should include actionable steps toward achievement. By establishing your financial goals, you're on a path to feeling more in control and confident about your financial future.

Step 2: Create and Stick to a Realistic Budget

Budgeting is the roadmap for your finances. It involves tracking income, categorizing expenses, and understanding where your money goes each month. It's not about restricting yourself but about making conscious choices. By budgeting, you gain clarity on your spending patterns, identify areas where you can cut back, and direct more funds toward your financial goals. It's a tool that allows you to take charge of your finances and make informed decisions.

Step 3: Prioritize Saving and Invest Wisely

Saving and investing are cornerstones of financial stability. Building an emergency fund is crucial for navigating unforeseen circumstances, providing a safety net during challenging times. Moreover, understanding investment options and strategies enables you to grow your wealth over time. Automating savings and investments makes these habits consistent and ensures you are working towards a healthy financial future! 

Remember, financial habits are not formed overnight - they require consistency and dedication. As you set your financial goals, create and maintain a budget, and prioritize saving and investing, you're laying down the groundwork for a fully funded life.

Don't underestimate the power of these steps. Embrace them, make them a part of your routine, and witness the positive transformation they bring to your personal finance journey. 

You Can Not Borrow Your Way Out of Debt

I have seen so many people attempt to borrow their way out of debt.  I have personally tried to borrow my way out of debt.  The problem is that it does not work!

Here are some ways I see people try to borrow their way out of debt:

• Debt Consolidation Loan  Roll all of the credit cards into a single loan.

• Home Equity Loan  Roll all of the credit cards and car payments into a single loan using home equity.

• Loan From The Parents  Roll all of the debt into a single loan from Mom and Dad.

I have never seen it work because these "solutions" only address symptoms!  You must address the root cause of what created the debt in the first place.

It is necessary to change spending behavior and money management behavior. 

I have seen a lot of people use the crutch of "it is medical bills" and expect to receive a free pass on the debt.  That is so frustrating because in nearly all cases, the reason the medical bills exist is because the individual or family opted out of carrying health insurance.

I have seen a lot of people use the crutch of "I lost my job" and expect a response of "Oh, that makes your debt OK."  But it would have never happened if they had made an emergency fund of three to six months of expenses their top priority instead of a house, cars, furniture, and numerous other "gotta-have-it" purchases.

You simply can not borrow your way out of debt.  It requires a written plan and a ton of focus.  You can start your journey by reading THIS and preparing your own written spending plan using our FREE TOOLS.