Mutual Funds: Explained

Mutual funds can certainly sound confusing – especially when there are so many options available.  So for those who do not know what a mutual fund is, let me explain it the best I know how.

If something has been FUNDED, it means that money has been given to it.

If you and I come to a MUTUAL agreement, it means that we both were involved in making the agreement.

So if you and I have MUTUALLY FUNDED a project, then it means that we both provided money for the project.

A MUTUAL FUND means that you and I have both put our money in the same place.  It is not unusual for a mutual fund to have over 5,000,000 people MUTUALLY FUNDING the same investment.

So we have mutually funded an investment along with three or four million of our closest friends.  The amount you have invested is different from how much I have invested, but it is all in the same place.

So, we now all understand that we have mutually funded this investment and that it is called a mutual fund.  The next question to answer is: “Where does the money go once it is in the mutual fund?”

Well, each mutual fund has a specific objective.  Some mutual funds have an objective to produce income.  Others have an objective to maximize the long-term growth of the invested money.  Still others may have an objective to invest only in international companies.  The bottom line is that each mutual fund has a specific objective or charter.

Based upon a mutual fund’s charter, the mutual fund managers will purchase part-ownership in a lot of companies.

The Mutual Fund managers use the money provided by you, me, and three million of our closest friends to purchase ownership in anywhere from 50 to over 1,000 companies.  As these companies earn profits and grow, the value of the investment grows.  This means that each individual who owns a portion of the mutual fund can enjoy that growth as well.

I hope this post has helped understand exactly what a mutual fund is. Let me know below if you have any additional questions about mutual funds.

Are Your Savings Working For You?

You cannot prosper if you do not save. Saved money plays a crucial role in not just financial stability but being able to accomplish your plans, hopes, and dreams.

However, the traditional savings accounts offered by many brick-and-mortar banks often fall short in terms of helping your savings grow. The culprit? Low interest rates.

Let me ask you this: ‘Are your savings working for you?’ They should be!

High-yield online savings accounts, as the name suggests, offer a higher yield or interest rate compared to traditional accounts. These accounts are typically offered by online banks or financial institutions and are designed to make your money work harder for you.

Competitive Rates

• These rates are notably higher than what you'd find with traditional brick-and-mortar banks. While the exact rates may vary depending on the financial institution and market conditions, it's not uncommon to find online savings accounts with rates around 4%!!

Safety

• Just like traditional banks, many online banks are FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage for up to $250,000 per depositor, per insured bank. This means that even if the bank were to face financial difficulties, your deposits are protected!

3 Reasons Why It Is Important To Set Investment Goals

You set goals for your budget, for eliminating debt, even for amount of dollars saved…but are you setting investment goals? These goals can help you achieve your Fully Funded Life!

3 reasons why you should set investment goals:

1. Goals help you create clarity and focus:

   • Defining Your Objectives: Investment goals allow you to clearly articulate what you want to achieve. Whether it's saving for retirement, creating ‘x’ amount of passive income, or leaving a legacy, your goals give purpose to your investments.

2. Goals provide motivation and discipline:

   • Maintaining Commitment: Knowing exactly what you're working towards can provide a daily dose of motivation. Your goals serve as a reminder of why you're investing in the first place, and they can help you stay committed even during market uncertainty.

3. Goals give you the ability to measure your progress:

   • Tracking Your Success: Regularly reviewing your investment performance against your goals enables you to gauge how well you're doing. Are you on track to meet your objectives? If not, you can make adjustments and adapt your investment as you move forward.

Setting investment goals is not just a good financial practice; it's a fundamental step toward achieving your fully funded life.

Remember, investing is a marathon, not a sprint, and the goals you set today can pave the way for you to accomplish your plans, hopes, and dreams. So, take the time to define your investment objectives, and stay focused on them, your future self will thank you for it.

How To Locate Incredible Mutual Funds

Choosing the right mutual fund can be a daunting task if you're not sure where to begin. Here is a three-part approach to help you navigate the world of mutual fund investments and make informed decisions":

Determine Your Investment Category

Before diving into specific mutual funds, it's crucial to identify the investment category that aligns with your financial goals and risk tolerance. Make sure to consider factors such as your investment horizon, risk tolerance, and financial objectives.

Reviewing Mutual Funds

Once you've narrowed down your preferred investment category, it's time to review individual mutual funds.

1. Utilize Mutual Fund Screeners: To streamline your search, take advantage of online tools like CNN's Mutual Fund Screener and Morningstar's Mutual Fund Screener. These platforms provide a wealth of information on various funds. For example, you can set specific criteria, such as funds that have delivered an average annual return of 10% or more over the past decade. This filtering process can help you identify mutual funds that meet your criteria efficiently.

2. Check Your Retirement Plan Options: If you have access to an employer-sponsored retirement plan (e.g., 401(k), 403(b), Simple IRA, or TSP), review the mutual fund options available within the plan. Employer-sponsored plans often offer benefits like reduced fees, matching contributions, or other incentives that can boost your investment returns. Make sure to take full advantage of these opportunities to preserve and grow your wealth.

3. Seek Professional Guidance: Consider meeting with a financial advisor at least annually. Professional advice can provide you with a clearer perspective on your investments, help you set realistic financial goals, and make necessary adjustments to your portfolio. Financial advisors can also provide valuable insights into market trends and the performance of different mutual funds.

Analyzing Mutual Funds

When evaluating individual mutual funds, pay attention to the following characteristics:

• Age of the Mutual Fund

• Investment Growth

• Initial Investment Requirements

• Fund's Objective

Choosing the right mutual funds involves a systematic approach that combines research, analysis, and professional guidance. Remember that not every mutual fund will be suitable for your financial objectives, so be prepared to revisit your search criteria and start over if needed.

Do You Have A Vision For Your Money?

Do you have a vision for you money? Without one, you might find yourself spending aimlessly, uncertain of how to accomplish your goals, or wondering where you money ends up going each month. Cultivating a strong financial vision that will guide your money towards the life you desire.

Define Your Financial Goals:

Start by identifying your financial aspirations. What are you striving to achieve in the next month, the next year, next 3 years? Whether it's paying off debt, saving for a home, building an emergency fund, or investing for the future, write down your specific financial objectives. These goals will serve as the foundation of your financial vision.

Visualize Your Ideal Life:

Imagine your life as you want it to be in 2024 and beyond. What does your Fully Funded Life look like? Visualize the aspects of your life that financial stability can enhance – from family vacations and a comfortable home to peace of mind and a secure retirement. This visualization can serve as a powerful motivator.

Prioritize Your Spending:

In a world filled with constant financial demands, it's essential to prioritize your spending based on your goals. Create categories for your expenses, ranking them by importance. Allocate your money accordingly, ensuring that the most significant portion goes toward achieving your primary objectives.

Track Your Progress:

Regularly monitor your financial progress to ensure you're on the right path. Use tools like budgeting apps and spreadsheets to track income, expenses, and savings. This real-time feedback can help you make necessary adjustments and stay committed to your vision.

Celebrate Milestones:

Recognize and celebrate your financial achievements along the way. Whether it's paying off a credit card, reaching a savings milestone, or sticking to your budget for several months, acknowledge your progress as a motivator to keep moving forward.

Your financial vision should be the guiding light that leads you toward your Fully Funded Life. It's not just about money; it's about turning your financial resources into a means of achieving your dreams and securing your future. Embrace this vision, and you'll find that your money can become a powerful tool for building the life you've always wanted.

Money Lies: I Can't Save & Invest

Have you been telling yourself this lie? “I can’t save money and invest.” That is a LIE!

This lie keeps people broke for their entire lives. When we are young, we believe we have forever to prepare for retirement. After all, young people and young families need to provide for their household, their children, and are just starting out in life. There never seems to be enough money to put away for a rainy day or for the future.

If you tell yourself this money lie, there never will be enough money to save or invest. If this is you, TODAY is the day you stop believing the lie and begin funding the future!

Here are some practical steps you can take to explode your financial future:

1. Understand compound interest.  Compound interest is what will allow an investment of $100 per month to reach $1,176,477 in just 40 years! If you just save a little ALL of the time, you will end up with a LOT at the end of your time! Use our “Investment Value Calculator” to see how much you could save!

2. Take advantage of retirement plan matching.  If you work for another company or organization, there’s a good chance your retirement plan contributions are eligible for matching contributions from your employer. Whether it is a $0.50 per $1.00 match or a full “dollar for dollar” match, it is FREE money! Visit your Human Resources Department TODAY to ensure you are receiving the full company match.

3. Make saving and investing MONTHLY (at least) and AUTOMATIC.  If you have to rely on yourself to write a check each month, your savings plan could be in great danger! Make it automatic – have it deducted from your paycheck before you ever receive it or have it zapped out of your bank account at a predetermined date each month.

You will be on your way to becoming a wealthy individual who will be able to live a life of generosity like you’ve never dreamed!

What Are Oxen?

Where there are no oxen, the manger is empty, but from the strength of an ox comes an abundant harvest. Proverbs 14:4

This verse had a profound impact on me as I went through my financial freedom journey. From this verse, I realized that I could either live a life with an empty manger or with an abundant harvest and the choice was up to me. In the pursuit of financial abundance, I could choose to rely on myself and my own abilities, or I could acquire oxen to help me. Which do you think I chose?

In my book, Oxen, I have outlined the different types of oxen, how to acquire oxen, and how to lead oxen. These principles will help you maximize your financial resources and experience an abundant harvest, just as I did so that you can fund your biggest and wildest dreams.

Most people earn money by showing up to work and in turn, they get paid. If you do not show up to work, you do not get paid. Oxen can allow you to earn money whether you are working or not! There is only so much time in a day and therefore there is only so much work that one person can physically put in. This is why oxen are so important: they allow you to eliminate the time barrier.

Oxen can do things you cannot do. They have the ability to carry a load that you cannot carry and can endure more than you can endure. Oxen can be trained and can work together and accomplish even more. They work rain or shine, night and day so that you do not have to. They can multiply and take you places you may have only dreamed about. Oxen can provide.

Good Vs. Bad Debt

At IWBNIN, we talk a lot about reducing and eliminating debt. So this might come as a shock to you….

Not all debts are created equal and there is a such thing as good debt! Let’s break debt down into four different categories ranging from terrible to good:

1. Terrible Debt: This debt is the worst type of debt you can have. This debt includes payday loans and pawn shop loans. These loans typically have a VERY high interest rate. When I say very high, I mean that I once saw one that was 640% interest! I think we can agree that is terrible.

2. Bad Debt: This debt may not be terrible but it is still pretty bad. This includes your credit card debt, unsecured signature loans, car loans, etc. Yes you read that correctly, car debt is not considered good debt. The average new car drops in value $100 per week during the first four years.

3. Better Debt: I only classify one type of debt as better debt and that is home mortgage debt. Every time you make a payment some of this money is going into home equity so hopefully when you go to sell it, it will have gone up in value and you will have made money.

4. Best Debt: If you are going to have debt, business debt is the best debt you can have. This is where I would categorize rental properties, buying franchises, buying into a small business, etc. This type of debt will allow you to scale your business and make more money.

All debts are not created equal and there are some that are way, way worse than others. Make sure you take this into consideration any time you are contemplating going into debt so that you can make the right financial decision.

3 Things Sabotaging Your Retirement

Retirement is a time in life that many of us eagerly look forward to. It's a period when we hope to enjoy the fruits of our labor, travel, spend time with loved ones, and pursue hobbies and interests. However, achieving a comfortable retirement requires careful planning and financial discipline.

Let’s discuss three common mistakes that can sabotage your retirement if you’re not careful!

You Haven't Started Saving

Time can be your most valuable asset in building a substantial retirement fund. The power of compounding allows your investments to grow exponentially over time. When you delay saving for retirement, you miss out on the potential for your money to grow.

Start saving for retirement as soon as possible, even if you can only contribute a small amount initially. Set up automatic contributions to retirement accounts like a 401(k) or an IRA, and increase your contributions as your income grows.

You Haven't Determined Your Retirement Nest-Egg Amount

Having a clear retirement savings goal is crucial for a successful retirement plan. Without a specific target in mind, you may not know how much you need to save or whether you're on track to meet your retirement goals. Determine your retirement nest egg amount HERE! Once you have a target amount, you can create a savings plan to work towards that goal.

You Have Pulled Money Out of Retirement Accounts Early

Early withdrawals from retirement accounts, such as a 401(k) or an IRA, can result in penalties, taxes, and lost potential growth. These accounts are designed to provide financial security during retirement, and withdrawing funds prematurely can significantly derail your retirement savings plan.

Planning for retirement is a lifelong journey that requires commitment and financial discipline. Avoiding common mistakes will help you achieve your retirement plans, hopes, and dreams!

Take The Next Step: Start Saving!

One of the largest issues I see during our one-on-one financial coaching meetings is the inability to save money.

Here are some facts about saved money:

• Saving money is essential to long-term sustainability

• Saving money relieves stress

• Saving money allows you to take a chance

• Saving money allows life to happen (job loss, disability, pay cut, injury, etc.) without going broke!

But you already knew that part.  We all know that we are supposed to “save money for a rainy day.” Yet, even though we KNOW how important it is to save money, most people fail to do so.

I want to challenge YOU to take the next step!

• If you have negative savings (no money plus overdrafted accounts and debt), the goal is to bring you to zero. 

• If you are at zero savings, the goal is to get to at least $2,500 in a beginner emergency fund. 

Ways To Start:

Automatic Draft From Paycheck

Establish a savings account and have the money drafted from every single paycheck.  Whether it is $25 or $250 per pay period – just SAVE!  You KNOW that the car is going to break down.  You KNOW that the school is going to send home a surprise expense.

By establishing this draft, it allows the money to be “out-of-sight.”  When money is out-of-sight, it can be out-of-mind.  This allows the account to grow without you robbing it!

Create An Escrow Account For Known, Upcoming Expenses

For those unfamiliar with an escrow account, it is a savings account that is established by a mortgage company.  The mortgage company totals the annual cost of property taxes and homeowner’s insurance and divides it by the number of payments being made each year.  The mortgage company then pays for the taxes and insurance from this escrow (savings) account.  For example, if the property taxes are $1,200/year and the insurance is $600, then the total amount needed each year is $1,800.  The mortgage company will collect $150 extra with each monthly payment to place into the escrow account.

An escrow account smooths out the cost over a year – instead of having to pay for it all in one month.  It tightens the monthly budget, but having a fully funded escrow account sure is AWESOME when vacation arrives and the money has already been saved to pay cash for it!  Those who have a mortgage with an escrow account will testify to the fact that they never worry about paying for the taxes and insurance – ask someone!

Take the next step and start saving today!

Savings - A Vehicle To Accomplish Your Dreams

What is margin? How does it relate to savings?

Margin allows you to create space within your financial life to weather unexpected challenges and seize future opportunities without compromising your relationship or your dreams. Creating margin through savings can give you the ability to accomplish your dreams freely! 

There are two types of margin you should have in place: 

1. Cash On Hand Savings (Financial Reserves)

2. Monthly Savings (Operational Margin)

1.  Cash On Hand Savings (Financial Reserves)

Having money set aside in savings is the foundation for financial security. It enables you to focus on your goals and aspirations without constantly worrying about making ends meet. Financial reserves allow you to contemplate and invest in your future, whether that involves buying a home, starting a business, or embarking on exciting adventures. It's like having a safety net that ensures you can handle unexpected expenses without strain. In short, cash on hand allows you to sleep a lot better at night!

GOAL: Aim to have at least three months' worth of operating expenses saved in your emergency fund. This ensures you can navigate through challenging times without jeopardizing your financial stability.

2.  Monthly Savings (Operational Margin)

Operational margin for couples is all about managing your expenses in a way that allows you to consistently save money each month. Having a surplus of funds each month not only ensures that your current bills are covered without depleting your financial reserves but also paves the way for realizing your dreams.

GOAL: Strive for a 15 to 20-percent profit margin in your budget. This margin will enable you to start funding your cash-on-hand savings and accelerate your journey toward achieving your dreams.

Accomplishing Your Dreams Through Margin:

Through the margin created by savings, you will be able to experience: 

• Financial Freedom: Savings creates a financial safety net that allows you to pursue your dreams with confidence. Whether it's starting a business, starting a family, taking a dream vacation, or investing in further education, having savings provides you with the freedom to turn your dreams into reality.

• Reduced Stress: Savings also eases the financial stress that can strain a daily life. With surplus funds each month, you can focus on financially thriving and making plans for the future, rather than worrying about making ends meet.

• Shared Goals: When you work to maintain and build your savings, you'll naturally identify your dreams and aspirations, creating a defined vision for your future.

• Flexibility: Whether you decide to change careers, relocate, or pursue a new passion, having margin in your finances ensures you have the resources to make those choices without hesitation.

By prioritizing savings, you can create a solid financial foundation that gives you the freedom to accomplish your dreams. So, where are you on this journey toward financial margin, and what dreams will you pursue? Remember, savings is your vehicle to accomplish your dreams!

Have You Shopped Insurance Recently?

It’s not everyone’s favorite topic, but it sure is important: Insurance. Let me ask you a few questions:

• When was the last time you thought about insurance?

• Where are you at with insurance? Do you have it?

Today, let’s focus on home and auto insurance. If you are a homeowner, you should have homeowner’s insurance to protect your dwelling and the contents inside. If you are a renter, you should have renter’s insurance to protect the contents of your dwelling.

• When was the last time you obtained quotes for both home and auto insurance?

It is very, very important to carry both. However, that does not mean that you should pay the highest dollar amount possible!

Here are a few tips:

• If you have auto insurance or some other insurance, ask for a “bundle” discount.

• Shop around for the best rates every two years.

• Obtain a minimum of three quotes – one of them being from an independent insurance agency.

• Obtain quotes with different deductibles. Consider increasing the deductible to reduce your premium costs.  If you are managing your money well and have built your emergency fund to at least three months of expenses, you may consider increasing your deductible.  This can result in a substantially lower insurance premium.

Take the next step and get your new insurance quotes this month!

First Time Budgeting Tips

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

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

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

• I was managing the money

• We had $4.13 in our checking account

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

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

• There was nothing in our short-term savings account

• We were B-R-O-K-E

• I was in COMPLETE DENIAL!

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

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

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

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

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

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

Why You Should Have A Budget

"You should have a budget."

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

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

Increased Savings:

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

Decreases in Inefficient Spending:

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

Accomplish Financial Goals:

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

Decreased Financial Stress:

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

Good Financial Decision-Making:

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

Furthering Your Financial Education

Have you ever found yourself feeling stuck when it comes to your finances? Could it be because you haven't had the chance to dive into the right knowledge or education about personal finance?

Like any subject, we don’t know every answer to our financial questions. We can’t. That’s why it’s so important to continually strengthen yourself in the areas of personal finance. Just think for a moment: you might have a strong budgeting habit, but are you confident in your savings plan?

Here's the good news – you're not alone! Many of us have asked similar questions or faced challenges due to a lack of knowledge.

So, how can you find ways to consistently educate yourself?

• Educational Blogs

• Financial Community

• Helpful Tools

Another way to take the next step in leveling up your financial knowledge? Complete a personal finance study!

With foundational truth from scripture, learn how to budget, save, invest, plan ahead, and maintain momentum on your financial journey. The I Was Broke. Now I’m Not study blends scripture and money in a relevant, engaging, and life-changing way for you!

How Do I Create Good Financial Habits

Our financial habits are the guiding point for our financial journey. Just like a ship needs a sturdy compass to navigate through rough waters, good financial habits provide you with direction, control, and a sense of purpose. Good habits allow you to make informed decisions, adapt to changing circumstances, and achieve your dreams. 

Start with these steps and begin creating good financial habits:

Learn & Educate: 

Knowledge is a powerful tool for financial growth. Invest time in reading financial literature and resources that enhance your understanding of budgeting, saving, investing, and other areas of personal finance.

Define Your Goals:

Set specific, and timely financial goals. These give your financial habits a purpose and a roadmap to follow. Identify short-term and long-term aspirations, such as creating an emergency fund, paying off credit card debt, or saving for a dream vacation. Linking your habits to these goals will keep you motivated and on track!

Create A Budget: 

Build your realistic budget. Track your income and expenses diligently to understand where your money is going. Keep track of every dollar! Allocate funds for essentials, savings, and discretionary spending. Stay disciplined by sticking to your budget and making adjustments when necessary.

If you need help building out your budget, use these resources: 

Automate Where You Can: 

Take advantage of automation - it can be a built-in habit! Struggling to save each month? Set up automatic transfers to your savings accounts, ensuring that a portion of your income goes directly towards your financial goals. 

Creating good financial habits requires dedication and patience. You have to decide to decide - and start today! By practicing these habits consistently, you can shape your financial future and work towards achieving your goals. Your future self will thank you for the positive changes you make today.

Debt Snowball: What Is It?

We can all agree that debt is a drag. It hangs on like a bad relationship or a fixer-upper money pit house. Anyone, when given the choice, would choose to be debt free over paying debt payments every month.

The average family possesses credit card debt, student loan debt, furniture debt, vehicle debt, and a personal loan or two. Then a house payment enters into the picture.

Every single month, 40% or more of the family’s income is “dead on arrival” because it must immediately be sent out to lenders. Let’s work on changing that today!

THE DEBT SNOWBALL TECHNIQue:

• List ALL debts from the smallest balanced owed to the largest: The first step towards financial liberation is to get a clear picture of your debts. From credit cards to student loans, list all your debts from the smallest balance to the largest. Include everything – credit card debt, student loans, vehicle loans, personal loans, and that lingering house payment. This comprehensive list is the foundation for your debt-free journey.

• Pay the minimum payment on all debts except the smallest one.

• Pay as much as you can on the smallest debt: When the smallest debt is eliminated, take the monthly payment you were paying for that debt and add it to the monthly payment you’re making on the second smallest debt.

• Continue this process with a vengeance until you are debt free!! It might not be easy, but with every debt payment disappearing from your monthly budget, you'll gain momentum, inching closer to financial freedom with each payment!

Need help getting started?

Let's Talk: Compound Interest

Few concepts are as magical as compound interest. It has the ability to turn small, regular contributions into substantial wealth over time.

INVEST and capture the power of COMPOUND INTEREST.

When it comes to compound interest, three things matter a lot:

1. Amount of money invested (start with whatever you can and work to increase it from there)

2. Time (start early!)

3. Interest rate (growth rate of your investment)

Here’s how YOU can achieve $1,000,000 at a constant Interest Rate of 12%:

1. Invest $85.00 per month for 40 years at 12% annual interest.

2. Invest $286.13 per month for 30 years at 12% annual interest.

3. Invest $1,010.86 per month for 20 years at 12% annual interest.

4. Invest $4,347.09 per month for 10 years at 12% annual interest.

Here are some ways YOU can achieve $1,000,000 in just 20 years:

1. Invest $1,697.73 per month for 20 years at 8% annual interest.

2. Invest $1,316.88 per month for 20 years at 10% annual interest.

3. Invest $1,010.86 per month for 20 years at 12% annual interest.

4. Invest $768.54 per month for 20 years at 14% annual interest.

Here is how YOU can achieve $1,000,000 with just $300 per month:

1. Invest $300.00 per month for 473 months at 8% annual interest.

2. Invest $300.00 per month for 404 months at 10% annual interest.

3. Invest $300.00 per month for 355 months at 12% annual interest

4. Invest $300.00 per month for 318 months at 14% annual interest.

For those familiar with investing, I already know one of the biggest questions you want to ask:

“Where on earth do I get 12% annual interest?”

It’s a great question! The number one way to get 50% or even 100% interest is to contribute to an employer-sponsored retirement plan where matching contributions are made. For example, if your employer matches your contributions “dollar-for-dollar” up to 3% of your pay, that is a 100% interest rate that AUTOMATICALLY HAPPENS with NO RISK! It’s called FREE MONEY! Beyond that, I like investing in mutual funds that are older than me. Also, in other great investments like residential or commercial real estate and small businesses.

How Do I Start Saving?

Are you tired of the never-ending struggle to save money? Do you find yourself caught in a cycle of starting to save, losing track, and then starting over again?

It's time to take a step back and evaluate your foundation. Is it the RIGHT foundation to help you achieve your financial plans, hopes, and dreams?

• Have you set your financial goals? (What are you working towards…)

• Do you have an emergency fund built for when life happens? (Are you protecting yourself with the right insurance: health, home, car, disability, etc)

• Prepare for known, upcoming expenses. (Like birthdays, insurance premiums, property taxes, etc. These should not bust your budget!)

After reviewing your foundation, start prioritizing your savings. Treat saving money with the same level of importance as paying bills. Consider it a debt owed to yourself. Recognize that saving money is a choice and prioritize it over non-essential expenses.

A few tips:

• Separate Your Savings: To prevent accidental spending, move your savings to a separate bank account. This separation creates a mental barrier and makes it less tempting to dip into your savings for impulsive purchases.

• Use Cash Envelopes for Specific Expenses: For impulsive cash areas like groceries, dining out, entertainment, and clothing, use cash envelopes. Allocate a fixed amount for each category and stick to it!

• Reevaluate Subscriptions and Daily Habits: Identify and cut out unnecessary membership subscriptions or daily habits that drain your finances. Do you need every single streaming platform? Probably not.

• Seek Better Insurance Deals: Consider changing insurance providers for home and auto to potentially find better deals.

Remember, it's never too late to start saving – the key is to take that first step and stay consistent on your financial journey!

What Is Your Why

Do you have a vision for your money? Have you identified your WHY?

When you receive those precious Washingtons, Lincolns, Hamiltons, Jacksons, and Franklins, do you have a clear idea for the utilization of each one of them? Or is that money dead on arrival – doomed to be sent on its way without advancing you toward your life’s plans, hopes, and dreams – your Fully Funded Life?

Without a clear vision, it is highly likely that the money will disappear with little to no progress. After all, there are so many things competing for your dollars:

• Housing

• Utilities

• Kids

• Food

• Student Loans

• Automobiles

• Insurance

• Gasoline

And everything in between! When we experience financial setbacks, which will occur often, it can be easy to just give in and give up saying soothing statements like:

• “We just can’t ever seem to get ahead financially.”

• “We’ll never win with money.”

• “I need to win the lottery.”

I encourage you to write down your vision for the money you’ll be receiving between now and the rest of the year. You’ve still got five months to experience a massive shift toward your preferred financial future! Get started today!