Ways To Eliminate Your Mortgage

You’ve seen your mortgage payment. How much of each payment is applied to the principal balance reduction…It can sometimes feel discouraging to watch your payment go primarily towards interest and see the principal balance slowly decrease over time. 

There is a way to eliminate (what is usually) the single largest expense in the household budget and free that money up to much greater things than making a bank rich!

#1 - Lower The Interest Rate

Lowering the interest rate by 1% on a $100,000 mortgage will nearly $1,000/year! That, my friends, will spend just like money and I would much rather apply that money toward principal reduction or funding a dream than sending it as a gift to my mortgage lender!

#2 - Pay 10% extra each month

Whatever your monthly payment is, add 10% and you will eliminate 7 years or more from a 30-year fixed rate mortgage! For instance, if your mortgage payment (including escrowed taxes and insurance) is $1,000, you would send in an extra $100 per month – $1,100/month.

Example: If you have a $150,000 5.50% fixed-rate mortgage with a monthly payment (including escrow) of $1,000 with $852 being applied to principal and interest each month (the other $148 being applied to taxes and insurance). If you send in $1,100 each month, there is now $952/month being applied to principal and interest. This will reduce a 30-year note to a 23-year 4-month note!

#3 - Make 1 Extra Payment Each Year

One of the most common ways that people reduce their mortgage payback period is by sending in one extra payment each year. This will eliminate 5 to 7 years from a 30-year fixed-rate mortgage. You can send one extra payment each year using a variety of methods.

• Send in one extra payment when you receive a tax refund or profitability bonus

• Since this money is not part of the normal budget, it can be easier to send this money immediately toward the mortgage.

• Set up 1/2-payments to be made every two weeks

• Since there are 26 two-week periods in a year, this means that 13 full payments will be made each year.

• Send in 1/12 (8.3%) extra on each monthly payment.

• 1/12th payment/month X 12 months = 1 full payment per year

#4 - Eliminate one “nice-nice” monthly expense and send it to the mortgage company

How much do you send to the cable/satellite company each month? Let’s say that it is $70/month. That is $840/year. Cancel the cable and re-route that monthly bill to the mortgage payment.

Other items that could be reduced/eliminated include:

• Dining out

• Clothing

• Spending money

• Magazine subscription

• Insurance premiums

Do You Have Insurance?

I do not like talking about death. I don't know many people who do. But I am not deaf to the fact that we are all going to die. Every single one of us. At this point, we all know that life insurance is important, and hopefully, you have taken the appropriate steps to protect your family. But, is it enough? Is your policy enough to cover your debts and provide a comfortable life for those you leave behind?

Assessing Your Life Insurance Needs

I carry an insurance policy equal to ten times my annual income. With an income of $50,000 per year, this would mean a person should obtain a $500,000 policy. If I pass away while my children are still in the household, I want my wife to be able to focus on raising them without having to worry about replacing my income.

But determining the right amount of coverage isn't as simple as multiplying your income by a certain number. You need to consider various factors, including:

• Existing Debts: Ensure your policy is sufficient to cover any outstanding debts, such as a mortgage, car loans, credit card debt, and personal loans.

• Living Expenses: Estimate the amount needed to maintain your family's standard of living. This includes everyday expenses like groceries, utilities, and healthcare.

• Future Financial Goals: Factor in the cost of future expenses, such as your children's education and your spouse's retirement.

• Inflation: Consider the impact of inflation over the years. What seems like a large sum now may not be as significant in the future.

My Personal Strategy

With that being said, I also carry no debts. My home, vehicles, and school loans are paid off. I do not need life insurance to repay these debts. If you do have debts, you should consider these when deciding how much insurance you need.

Cost of Life Insurance

The total amount of insurance that you require to secure your family should not break the bank. For a healthy 30-year-old male who does not use tobacco products, a $500,000 policy would cost about $25 a month in term life insurance. For a healthy 30-year-old female, the same coverage would cost about $20 a month. That is really cheap for such great coverage.

The Goal of Becoming Self-Insured

My personal goal is to become self-insured. If you are able to become debt-free and invest wisely, you will eventually have enough money that your need for life insurance will diminish greatly. Think about it. Suppose you die, leaving behind no debts and more than $1,000,000. You have probably become self-insured.

Steps to Becoming Self-Insured

1. Pay Off Debts: Focus on paying off all your debts as quickly as possible. This reduces the amount of coverage you need.

2. Save and Invest: Regularly save and invest a portion of your income. Over time, your investments will grow, providing a financial cushion for your family.

3. Live Below Your Means: Adopt a lifestyle that allows you to save more and spend less. This will help you build wealth faster.

4. Review Your Insurance Regularly: As your financial situation changes, review and adjust your life insurance coverage. You may find that you need less coverage as your assets grow.

Talking about death is never easy, but planning for it is a crucial part of protecting your family's future. Ensure that your life insurance policy is sufficient to cover your debts and provide for your loved ones. While life insurance is essential, the ultimate goal is to become self-insured by eliminating debt and building significant financial assets. This way, you can ensure that your family is financially secure no matter what happens.

Taking these steps not only provides peace of mind but also sets a strong foundation for your family's financial well-being.

Is This Mutual Fund a Good Investment?

Many people are hesitant to begin investing because they think that it is an incredibly complicated venture that is only for the uber-wealthy. I am here to tell you that it is not that difficult and you can (and should!) get started today at some level.

Most people feel this apprehension towards investing because they do not know how to tell if they are making a sound investment. There is some research that you can do to make this decision. I have a process that I go through when deciding if a mutual fund, specifically, is a good investment. Here are the questions I ask when I get ready to make an investment:

1. Do I like the product or service they are delivering? Do my children like it? I want to like a product that I am going to invest in first and foremost. If I like a product there is a good chance other people will like it as well. The same holds true for if I dislike a product or service.  

2. Is the company profitable? Does the company share those profits with shareholders in the form of dividends? I do not typically invest in companies that are not profitable although there are a lot of people that have made a lot of money off of their stock. When I invest in a company I want to see that they can move an idea towards profitability.

3. What is the P/E? Once I know if a company is profitable, I next look at the P/E or the price to earnings ratio. This is calculated by finding the earnings per share (the total profits of the company divided by the total number of shares) and the current price of the stock. The P/E is calculated by dividing the price by the current earnings per share. I want to see a P/E that is less than 20 and ideally less than 10. Now, do not freak out about having to calculate this number every time you want to invest. You can simply google the company name followed by P/E ratio and easily find out.

4. What is the vision of the company? Do I like the leadership and the direction they are headed?

To find this information, I typically utilize several different websites including finance.yahoo.com, money.cnn.com, and schwab.com.

As you can see, investing does not have to be super complicated or involve a lot of intense research. When picking mutual funds it can be as simple as checking out their products, leadership, and vision and then doing a quick check to make sure they are profitable. If you can put a checkmark next to those four boxes, you can probably say that you are making a good investment.

Do you want to learn more about how you can acquire and maintain oxen? You can get my book Oxen from our store today! 

3 Ways To Teach Stewardship To Your Kids

Money. We all might have different feelings when the topic is brought up. Some of us grew up in households where finances were spoken about freely. Others of us might have had a different experience, with money being a taboo subject. But collectively, the way our parents spoke about finances had a direct impact on our knowledge, viewpoint, and understanding of money in our adult lives. 

Think about your children… You want them to be confident in their financial decisions. You want them to be knowledgeable in good financial habits. You desire them to understand the importance of stewardship. But how can you start to teach these concepts to your kids?

• Dinner Devotionals on Money & Stewardship

Pick one dinner out of the week to sit down, eat, and focus on intentionally speaking to your kids about finances. This a great way to educate on money but also speak toward the importance of stewardship. 

To make these conversations easy for you, our team has put together 10 Dinner Devotionals on Money & Stewardship, for your family! These devotions are designed to be simple, and thought-provoking for kids of all ages, helping your family grow in the understanding and practice of biblical stewardship and financial wisdom. 

• Speak Openly About Financial Habits

You and your spouse practice financial habits every month, week, and maybe even every day! Bring your kids into these conversations as you see fit. Each month you might budget, save, invest, tithe, and pay off a debt.

When it’s time to set aside your monthly tithe, share with your kids why you give. If you have a family vacation coming up, share with your kids why it’s important to save in advance for trips and what sacrifices you might have to make now to put more money towards an experience. 

Bring them into the conversation. 

• Have Your Kids Budget

Are your kids old enough that you pay them an allowance or they are now receiving money for birthdays or Christmas gifts? Walk them through how to fill out a budget. This could be in Excel or on paper. Create line items for spending money, saving money, tithing money, and even investing their money. Having your children practically apply the financial habits you model to their own money will quickly highlight the importance of financial planning in their lives. 

Talking about money and stewardship with your kids doesn’t have to be a struggle. It can be a fun way to equip them early on with the tools and wisdom to be good stewards of their finances. Get started today with the 10 Dinner Devotionals for your family! 

How Do Interest Rates Work?

I'm sure you have seen interest rates on a variety of different credit cards, car loans, student loans, or other lines of credit. But what do these numbers mean? Understanding interest rates is crucial for making informed borrowing decisions. Let's dive into the basics of interest rates on loans and how they impact your finances.

What is an Interest Rate?

An interest rate on a loan is the cost of borrowing money. It is typically expressed as a percentage of the principal (the amount you borrow). This percentage determines how much extra you'll pay on top of the principal amount over the life of the loan.

How Interest Rates Affect Your Loan Costs

For example, if you take out a $25,000 car loan at 5% interest, you will not only owe the original $25,000, but you will also owe an additional $1,250 in interest over the life of the loan. This means the total cost of your car loan would be $26,250. The interest is usually calculated annually and added to your monthly payments, spreading the cost over the term of the loan.

Types of Loans and Their Interest Rates

1. Credit Cards: Credit cards often have higher interest rates compared to other types of loans because they are considered unsecured debt, meaning there's no collateral backing the loan. Interest rates on credit cards can vary widely but typically range from 15% to 25% or more.

2. Car Loans: Car loans generally have lower interest rates than credit cards because the vehicle serves as collateral, reducing the lender's risk. Interest rates for car loans can range from 3% to 7%, depending on factors such as your credit score, the loan term, and the age of the vehicle.

3. Mortgages: Mortgage rates are usually lower than both car loans and credit cards, partly because the loan is secured by the property itself. Current mortgage rates typically range from 2.5% to 5%, but these can vary based on the type of mortgage, the term length, and the borrower's creditworthiness.

4. Student Loans: Student loans often have lower interest rates and more flexible repayment options to support education financing. Federal student loans have fixed interest rates set by the government, which currently range from about 2.75% to 5.30%, depending on the loan type. Private student loan rates can vary more widely.

Factors That Influence Interest Rates

• Credit Score: Your credit score is one of the most critical factors. Higher credit scores generally qualify for lower interest rates because they indicate a lower risk to the lender.

• Loan Term: The length of the loan can affect the interest rate. Typically, shorter-term loans have lower interest rates but higher monthly payments.

• Market Conditions: Economic conditions, including inflation and the Federal Reserve's policies, can influence overall interest rate levels.

• Loan Amount and Collateral: The amount of the loan and whether it is secured (backed by collateral) or unsecured can also impact the interest rate.

How to Get the Best Interest Rates

1. Improve Your Credit Score: Pay bills on time, reduce debt, and avoid opening too many new credit accounts to boost your credit score.

2. Shop Around: Compare offers from multiple lenders to find the best rates and terms. Don’t settle for the first offer you receive.

3. Consider Loan Terms: Choose loan terms that balance affordable monthly payments with the lowest possible interest rates.

4. Negotiate: Don’t be afraid to negotiate the interest rate with lenders, especially if you have a good credit score and a stable financial history.

Understanding and managing interest rates is key to keeping your borrowing costs down. By making informed decisions and proactively managing your credit, you can secure better loan terms and save money over the life of your loans.

Should I Get A Home Equity Loan To Pay Off Debt?

One of the most common questions I am asked is:

"Should I get a home equity loan to pay off all of my non-house debt?"

Here is my response.

I am not a big fan of consolidating one's non-house debt into a home equity loan.  This is for several reasons, and I have outlined those reasons below.

• This is addressing a symptom, not the root cause.  This question is usually motivated by our need for immediate action.  It is the same motivation that causes us to purchase a car and finance it for five years.

• Borrowing from home equity makes it more difficult to sell the house.   This is especially true in today's house market.  There are a ton of people who now owe more on their house than it can be sold for.  Consequently, they become trapped in the house.

• Changing spending behavior is a process.  If one runs out and consolidates their debts, it might remove the urgency from the need to change spending behavior.  Changing one's spending behavior takes time.  I am convinced that if I had obtained a home equity debt consolidation loan in December 2002, I would not have changed my spending behavior.  However, because it took fourteen months to address our debt, our spending behavior was completely changed.  We have never looked back!

Having spoken with thousands of people and working one-on-one with thousands of individuals, I am convinced that obtaining a home equity loan is not the best way to eliminate debt.  The most common result from obtaining a home equity loan is less equity in the house and the consumer debt shows back up because the spending behavior was not changed.

This is, in fact, my own story.  I obtained a debt consolidation loan to move a pile of credit card and consumer debt to one payment.  After paying $315.60 a month for an eternity, I wanted to celebrate, but I could not.  Why?  Because while I had finally paid off the debt consolidation loan, I had not changed my spending behavior and my credit card debt had grown back to more than I had consolidated in the first place!

Bad Retirement Advice To Avoid

As you plan for your retirement, you're likely to receive advice from various sources. While some advice can be helpful, there are also common misconceptions and bad advice that could derail your retirement planning. Here are three pieces of bad retirement advice you should avoid:

1. You Can Start Saving for Retirement Later

How many times have you said, ‘I’ll get to that tomorrow.’ One of the most detrimental pieces of advice is to postpone saving for retirement. The earlier you start saving, the more time your money has to grow through compound interest. Waiting too long can significantly reduce the amount you'll have available for retirement. Even small contributions early on can make a big difference in the long run. You’ll never regret investing early. 

2. You'll Spend Less in Retirement

While it's true that some expenses, like commuting and work-related costs, may decrease in retirement, others, such as healthcare and leisure activities, may increase. What will your retirement look like? Create a plan with your spouse and identify what your wants and needs are for that season of life. Failing to account for potential increased costs can lead to underestimating your retirement needs. It's important to plan for a comfortable lifestyle in retirement, which may require maintaining or even increasing your current level of savings.

3. You Can Rely Solely on Social Security

Social Security is designed to supplement, not replace, your retirement income. Depending solely on Social Security may not provide enough to support your desired lifestyle in retirement. It's important to have additional sources of income, we recommend at minimum three streams of passive income, such as a 401(k), IRA, or other investments, to ensure a financially secure retirement and future! 

As you plan for your retirement, it's important to seek advice from trusted financial advisors and sources. Avoiding these common misconceptions and bad advice can help you make informed decisions and secure a comfortable retirement. Start saving early, plan for realistic expenses, and diversify your sources of retirement income for a more fully funded financial future! 

3 Ways To Teach Your Kids Financial Principles

Are your kids at that age where they're curious about money and how it works? Teaching children financial principles early in life can set them up for a lifetime of success. Here are three creative ways to help your kids understand the value of money and develop good financial habits.

Try These Ideas:

• Assign Chores with an allowance: link chores to a weekly allowance. This teaches kids the value of work and earning money, Encourage them to give, save, and spend appropriately. 

• Plan A Family Budget Meeting: Sit down as a family and create a mock budget for a summer activity or vacation. Involve your kids in the decision-making and prioritizing expenses. This will give them a practical understanding of budgeting, plus let them in on planning fun for the family. 

• Cooking Together: Cooking meals together provides an opportunity to discuss the cost of groceries and the value of homemade meals compared to eating out. You can also introduce concepts like meal planning, shopping within a budget, and avoiding food waste. 

Incorporating these activities into your summer plans can help your kids develop important financial skills while still enjoying quality time together. For more creative ways to teach your kids about money, download this month’s key resource by becoming a free Fully Funded Life member. Access this month’s resource and future ones on your free membership dashboard.

By making financial education fun and interactive, you can set your kids on the path to financial responsibility and independence.

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!

What You Should Know About Credit Scores

Credit scores are a measure of one’s ability to manage debt. The dominant credit scoring system which is used by most lenders was created by Fair Isaac. This system provides a measure of an individual’s creditworthiness and is commonly known as a FICO Score.

A credit score impacts many things. It determines whether or not you can obtain a loan. If you qualify for a loan, the credit score dictates the interest rate charged.

Credit scores also impact insurability. When you obtain auto, renters or homeowners insurance, the credit score directly impacts the insurance cost. The lower your credit score, the higher the insurance premium will cost. I have seen insurance premiums double because of poor credit.

Credit scores also impact the ability to obtain a cell phone contract or an apartment lease. It can affect utility connections. Utility providers usually require much larger deposits from people who have low credit scores. If you have an excellent credit score, a deposit might be waived entirely.   Credit scores can even impact your ability to obtain a job. Your credit score will have an impact on your life.

Many people know their exact credit score. If it is great, they wear it as a badge of honor of their financial prowess. “My credit score is 814,” they will say quite proudly.

Others who have a more colorful experience with credit will wear it as a badge of dishonor. “My credit score is in the toilet,” they say with a glum look.

The fact is that credit scores are only a measure of how well a person can manage debt and contractual financial agreements.

Credit scores are calculated using these data points:

1. Type of credit issued [Revolving debt (credit card) or Installment debt (anything with payments and a pay-off – car loan, boat loan, student loan, etc.]

2. Age of the credit relationship

3. Amount of credit one can obtain (total of all credit limits)

4. Amount of credit one has consumed (percentage of total credit limit)

5. Payment timeliness

6. Requests for credit (“hard pulls” of credit)

7. Outstanding judgments

Look at the list again. Does it include any relationship to how much money one might have in a savings account? Or any connection to a person’s net worth?

Here’s the fact: You could be a millionaire and have a terrible credit score.

How? By having zero credit relationships. While a great credit score is more desirable than a terrible credit score, it is not the best indicator of financial success. Choose instead to make financial decisions about what best increases financial margin and net worth.

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!