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!

Why You Should Reset Your Financial Habits This Summer

Before the busy schedules pick back up in the fall and you’re juggling everything little thing, take a moment this summer to reset your financial habits. Find time to take a closer look at your current financial habits and make necessary adjustments.

1. Reflect and Reassess Your Financial Goals

Mid-year is a great time to assess how well you're meeting your current financial goals. Take a moment to review your progress and identify areas where you might be falling short. This reflection can provide valuable insights into what’s working and what needs to change.

Based on your evaluation, you may find that it’s time to set new financial goals. Align these goals with your values and long-term plans to stay motivated and on track. Whether it’s saving for a dream vacation, paying off debt, or investing in your future, clear and aligned goals are essential.

2. Review and Optimize Your Budget

Conduct a thorough review of your budget to see where your money has been going over the first half of the year. Identify any areas of overspending and analyze whether these expenses were necessary or if they can be reduced or eliminated.

Based on your findings, make adjustments to your budget. This might involve reallocating funds to different categories, cutting back on non-essential spending, or increasing your savings contributions. Ensuring that your budget reflects your current needs and priorities is crucial for financial stability.

3. Enhance Savings and Debt Management

Use the summer to focus on increasing your emergency fund. An emergency fund is a financial safety net that can cover unexpected expenses and prevent you from going into debt. Set up automatic transfers to your savings account to make saving easier and more consistent.

Evaluate your current debt situation and create a realistic repayment plan. Prioritize high-interest debts to reduce the overall amount of interest you’ll pay over time. A structured plan can make managing and paying off debt more manageable and less stressful.

4. Streamline Expenses and Improve Financial Literacy

Take a close look at your subscriptions and memberships. List all the services you’re subscribed to and determine which ones you actually use and which can be canceled. Eliminating unused or unnecessary services can free up significant funds in your budget.

Improving your financial literacy is one of the best investments you can make. Use the summer to read books, take courses, or get into a routine of listening to podcasts about personal finance. Being well-informed about managing money and understanding investment options can help you make better financial decisions.

Resetting your financial habits this summer can lead to better financial health and stability. Take advantage of the summer months to make these important changes and enjoy the benefits of a more secure and well-managed financial future.

5 Things You Don’t Need To Buy For School Every Year

As the back-to-school season approaches, it's easy to get caught up in the excitement of shopping for new supplies. However, not everything on your list needs to be replaced annually. Being strategic about what you buy can save you money.

Five items you can skip purchasing every year:

1. Backpacks

A durable backpack can last several years if it’s of good quality and well-maintained. Look for backpacks made with sturdy materials and reinforced stitching. Unless the old one is worn out or damaged, there's no need to buy a new one each school year. Encourage your child to take care of their backpack to extend its lifespan.

2. Lunch Boxes

Sturdy lunch boxes can also be reused year after year. Invest in a good-quality lunch box that can withstand daily use. Regular cleaning is essential to maintain hygiene, but a well-made lunch box can serve your child for multiple school years. If the exterior or interior lining is in good shape, there’s no need for a replacement.

3. Calculators

Calculators, specifically scientific ones, are often a significant investment, but they are built to last. These calculators are required for multiple years of math and science courses, so once you’ve purchased a good one, it should see your child through high school. Unless it’s lost or broken, you don’t need to buy a new calculator every year.

4. Binders and Folders

High-quality binders and folders can be reused if they’re still in good condition. Instead of replacing them each year, try reusing them. Choose binders and folders made from durable materials that can withstand the daily wear and tear of school life. 

5. Water Bottles

Durable water bottles made of stainless steel or hard plastic are designed to last for many years. Regular cleaning and occasional checks for wear and tear are all that’s needed to keep them in good condition. A reusable water bottle is an eco-friendly choice that can accompany your child through multiple school years, making it unnecessary to buy a new one annually.

Back-to-school shopping doesn’t have to mean buying everything new every year. By reusing durable items you can save money. Focus on purchasing quality items that can withstand the test of time, and teach your children the value of taking care of their belongings.

Saving Tips: Back To School Clothes

It’s never too early to start saving for back-to-school expenses. Clothes can be a significant part of your spending each year, but with a little planning and strategy, you can save a substantial amount. Here are four practical tips to help you navigate back-to-school clothes shopping without breaking the bank.

1. Create a Budget and List

Before diving into the shopping frenzy, take a step back and plan. Setting a budget is crucial to avoid overspending. Here’s how you can start:

• Set a Budget: Determine how much you can afford to spend on back-to-school clothes. This budget should be realistic yet restrictive enough to encourage smart shopping choices.

• Make a List: Go through your child’s current wardrobe to see what fits, what can be reused, and what needs to be replaced. This can help you focus on essentials and avoid buying unnecessary items. A well-thought-out list will keep you on track and ensure that you purchase only what’s needed.

2. Shop Sales and Use Coupons

Timing is everything when it comes to shopping for clothes. Taking advantage of sales and using coupons can lead to significant savings:

• Look for Sales: Retailers often have end-of-summer or back-to-school sales with substantial discounts. Keep an eye on social media, websites, and local stores for these promotions.

• Use Coupons and Promo Codes: Before you hit the stores or online shops, search for coupons and promo codes. Many websites, apps, and mailers offer additional discounts. Signing up for store newsletters or loyalty programs can also provide access to exclusive deals.

3. Buy Secondhand

Why pay full price when you can get great quality for less? Consider these alternatives to traditional retail shopping:

• Thrift Stores and Consignment Shops: These stores often carry gently used, fashionable clothes at a fraction of the cost. With a little patience, you can find great deals on high-quality items.

• Garage or Mom2Mom Sales: Shop local garage sales, or look out for locally organized sales with other parents in your community. This is a simple way to get clothes for often the cheapest price from families whose kids have outgrown them. 

4. Shop Off-Season

Another effective way to save money is to shop off-season. This requires some planning but can result in big savings:

• Buy Off-Season: Retailers often discount items heavily at the end of the season to make room for new inventory. Buy winter clothes at the end of winter and summer clothes at the end of summer. Store these items for the next school year.

• Plan Ahead: Estimate your child’s growth and buy sizes accordingly. Buying a size up can ensure that the clothes will fit when the season rolls around again.

By creating a budget and list, shopping sales and using coupons, buying secondhand, and shopping off-season, you can outfit your child for each season without overspending. These strategies not only help you save money but also teach your children the value of smart shopping and financial planning. 

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. 

How To Prepare A Budget That Actually Works

There are a lot of people who struggle with budgeting. They know they should have a budget, but there never seems to be enough time, energy, or money to prepare one.

I know the feeling. However, I also know the feeling of not having control of my money and always running into financial disasters toward the middle to end of each month. It was in December of 2002 that I experienced my IHHE Moment (I Have Had Enough Moment) and resolved to figure out a way to gain full control of my money. By July of 2003, I figured out a way to make budgeting work for my family. Below are the steps I put into place. If you put them into place, I’m confident this budgeting process will work for your household too!

1. At least 3 days before the month begins, make a list of all your expected income and expenses for the upcoming month.

2. Pull up the FREE BUDGET TOOL. Enter the income and expenses into the worksheet.

3. Modify your income/expenses to ensure that the following formula is true: INCOME – OUTGO = EXACTLY ZERO

It really is that simple.

However, before you dive into preparing your best budget ever, I urge you to consider a few tips I’ve learned along the way:

1. Prepare the budget BEFORE the month begins (before you get paid and start spending money). It is very difficult to prepare an effective plan in the midst of already spending it!

2. Be realistic. I found that my previous attempts to budget failed because I was lying to myself and not being realistic.

3. Put some fun in the plan. It really is okay to spend some money on FUN – as long as you aren’t mortgaging future plans, hopes, and dreams in the process.

4. Use cash envelopes or a pre-paid gift card for categories where you have a tendency to overspend. This has worked wonders for my budget! The categories I use cash envelopes for are groceries, restaurants, clothing, spending money, and entertainment.

5. Recognize that you will forget some expenses – especially in your first few budgets! I’ve seen many people address this by putting a “I forgot!” line item in their budget to cover these forgotten expenses.

Now go put that budget together, and start winning like never before!

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!

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.

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!

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!

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.

The Way To Accomplish Your Plans, Hopes, and Dreams

Budgeting, investing, and saving play a critical role in making your plans, hopes, and dreams into reality. Let's explore how these financial elements intersect with goal setting to pave the way for a future filled with accomplishments.

• Budgeting is not just about numbers; it's a tool for aligning your financial resources with your dreams. By aligning your budgeting with your goals, you can prioritize spending, allocate resources efficiently, and ensure your financial plans mirror your financial dreams.

• Investing serves as a pathway toward accomplishing long-term goals. It involves identifying investment avenues that align with specific goals! Through strategic investment, you pave the way toward accomplishing larger financial aspirations.

• Savings act as the foundation for achieving both short-term and long-term goals. Establishing emergency funds and setting aside money for immediate needs aligns with short-term aspirations. Simultaneously, implementing long-term saving strategies propels progress toward larger financial milestones.

The magic really happens when budgeting, investing, and saving align seamlessly with your specific goals.

Tracking progress and maintaining financial discipline are instrumental in achieving financial goals. Consistent effort, adaptation, and a long-term vision can help you stay on track as you live your fully funded life!

Remember, your dreams are within reach. Your budgeting, saving, and investing habits should align with your goals!

Join us at Fully Funded Life in harnessing the power of budgeting, investing, and saving to accomplish your plans, hopes, and dreams.

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 Stop Overspending During The Holidays

The holiday season is full of joy, festivities, and gatherings. However, for many, it also brings the stress of overspending and financial strain. The pressure to buy gifts, decorate homes, and host celebrations often can lead us to exceed our budgets. To ensure a financially healthy and stress-free holiday season, here are three effective strategies to stop overspending:

1. Create a Realistic Budget

The foundation of responsible spending during the holidays lies in setting a realistic budget. Identifying your available funds and establishing spending limits are crucial steps.

Take a moment to evaluate and allocate specific amounts for various holiday expenses. Prioritize essential costs like travel, hosting, and gifts for immediate family (your essential costs might look different).

Regularly track your expenses and be open to adjusting your budget as needed to avoid overspending!

2. Practice Mindful Spending

Mindful spending involves making conscious choices to prevent impulsive purchases. Start by creating a FULL Christmas shopping list that outlines necessary items. (you don’t have to buy a gift for everyone you know). Stick to this list while shopping to avoid overspending on unnecessary items.

The kicker here is to distinguish wants and needs, focusing on fulfilling your list. While taking advantage of discounts and bargains, ensure that discounted items align with your planned purchases rather than encouraging an impulse buy.

3. Utilize Alternative Gifting Strategies

Consider alternative gifting strategies that not only save money but also add a personal touch to your presents. Explore do-it-yourself (DIY) gifts or homemade treats that showcase creativity while reducing expenses. Do you have a hobby that can be used to create gifts?

Maybe this year, you opt for gift exchanges or Secret Santa arrangements among family or friends to limit individual spending. Alternatively, consider gifting experiences or acts of service, such as offering to babysit or preparing a home-cooked meal, which can be more meaningful than material gifts.

Embracing these strategies can significantly alleviate financial stress and ensure a more balanced and enjoyable holiday season. Remember, you can do this! Share your own tips for managing holiday spending and let’s encourage one another as we work towards a financially healthy and joyful holiday season!

Do You Have Financial Goals?

In the pursuit of living your fully funded life, there's a crucial step often overlooked: setting clear financial goals that align with your plans, hopes, and dreams.

These goals navigate you toward a future where financial freedom and security are not just aspirations but a reality. If you're yet to define these goals or if you're contemplating their importance, let’s find out WHY identifying your financial goals is significant:

Make Your Dreams a Reality

At the heart of your financial journey lies the WHY. Why are you working towards better financial habits? Why are you completing your budget before each month begins? Why? Because, you have dreams, you have hopes, you have plans for your family! Outlining your aspirations into tangible financial goals paves the way to turn aspirations into achievements. Financial goals aren't just about numbers; they are the stepping stones that help make your dreams into reality. They provide direction, purpose, and a sense of empowerment over your financial future.

types of financial goals

In the pursuit of living your fully funded life, financial goals span a spectrum—from immediate needs to long-term aspirations. Short-term goals could include building an emergency fund or paying off high-interest debts, while mid-term goals might revolve around saving for a down payment on a home or funding an education. Long-term goals encompass retirement planning and investment strategies, securing the future you dream of.

Take a moment and identify your short-term, mid-term, and long-term goals!

Steps to Achieve Financial Goals

Now that you’ve identified your goals, reflect on where you stand financially. Now, envision where you want to be. How do you merge the gap between your current financial state and where you want to be? By setting financial goals aligned with your dreams. Craft an action plan that lays out the steps needed to achieve these aspirations. You might have to adjust your spending habits, you may need to establish financial accountability… Your path may evolve, but staying committed and adaptable is key to reaching your financial plans, hopes, and dreams.

At FullyFunded.Life, we recognize the transformative power of financial goals in making your fully funded life a reality. Our platform provides not just tools but a roadmap to help you establish, track, and live your financial aspirations. From budgeting templates to personalized financial planning guidance, we're here to support you on your journey.

Living your fully funded life isn't a distant dream—it's within your grasp. Take the first step and join us at:

Start setting and achieving your financial goals today and pave the way to living your fully funded life.

Managing Money During Challenging Financial Times

In the journey towards a fully funded life, we often encounter challenging financial times that test our resilience: volatile markets, high-interest rates, inflation, high housing costs, economic instability, recession, and so on….

Yet, even in the face of adversity, there is hope, and with thoughtful planning, your dreams can still be accomplished. Here’s how!

Assess Your Financial Situation

• Create a Detailed Financial Snapshot: Taking stock of your current financial situation allows you to understand where you are and where you want to be. List your assets, debts, income, and expenses.

• Identify Areas Needing Attention: Pinpoint the areas that need immediate attention. Are there debts to be managed? Expenses to be trimmed? Knowing your challenges is the first step in overcoming them.

Budget and Prioritize

• Create a Realistic Budget: Creating a budget that adapts to changing circumstances ensures your goals remain within reach. Assign every dollar a purpose within your budget, aligning your financial decisions with your plan's, hopes, and dreams

• Prioritize Essential Expenses: In challenging times, prioritize your essentials, such as housing, utilities, and groceries. While cutting non-essential costs, ensure you safeguard what truly matters to you during challenging financial times.

Build Financial Resilience

• Establish and Maintain an Emergency Fund: An emergency fund is your safety net, ready to catch you in difficult times. Ensuring you stay on course even when challenges arise.

• Explore Additional Income Sources: Side hustles, freelance work, and diversified income streams can provide additional financial stability during uncertain times.

• Seek Financial Advice and Support: Seeking advice and support when needed is a sign of strength. Financial professionals and community resources can provide guidance and assistance to keep your dreams alive, even in challenging times.

Navigating challenging financial times takes discipline, but it doesn't have to derail your plans, hopes, and dreams. By assessing your situation, budgeting wisely, and building financial resilience, you can continue on your path toward building the fully funded life you've envisioned!

How To Have A Debt-Free Christmas

Picture this: It's December, the holiday season is in full swing, and you're basking in the joy of Christmas festivities without a worry in the world about looming credit card bills in January. Sound like a dream? Well, it doesn't have to be!

Christmas is an annual, non-monthly expense, and it shouldn't catch us by surprise. With some careful planning, you can enjoy a fully funded Christmas, where you buy gifts with cash and avoid post-holiday financial stress. Here's how to make it happen.

Set Your Budget

• The first step is to decide how much you want to spend on Christmas as a whole. This amount will serve as your budget's foundation. It's crucial to determine a reasonable and achievable sum that won't strain your finances.

Creating a Christmas Gift List and Setting Allocations

• Create a comprehensive list of every person, organization, or cause you plan to buy gifts for during the holiday season. (P.S. You don’t have to get EVERYONE in your circle a gift!) Once your list is ready, assign a specific amount to each recipient, including a category for decorations, travel, and other holiday-related expenses. This planning ensures that every dollar you spend on Christmas serves a purpose and won't lead to unnecessary financial stress in the new year.

Stick To The Budget

• The key to a fully funded Christmas lies in your ability to stick to the budget you've created. It's easy to get caught up in the excitement of the season and overspend, but maintaining discipline is crucial. Resist the temptation to make impulse purchases or exceed your allocated amounts. Sticking to the budget requires self-control and accountability. Keep track of your spending, regularly review your budget, and make adjustments if necessary.

A debt-free Christmas isn't an unattainable dream; it's a tangible goal that you can reach!