Minding Your Money 360 - Quick tips to manage your money for success

Have you had your financial health check-up this year? All this week we’re covering financial health check-up basics.

Today we focus on checking your overall health and the best tool for this is a net worth statement. If you have ever applied for a loan, chances are you had to complete a net worth statement. It lists everything you own or assets and everything you owe or liabilities and when you subtract what you owe from what you own the difference is your net worth. So if I own $200,000 worth of stuff and I owe $175,000 my net worth is $25,000. ($200,000 minus $175,000).

It’s best to calculate your net worth at least once or twice a year and set a goal to increase it each year. You can increase your net worth by adding more assets or increasing their value such as growing your investments, by paying off things you owe or a combination of the two.

The year is half over, but there’s still time. Start your financial health check-up today. And, I have a quiz that you can download that includes the basics for you to give yourself a check-up. To get a copy simply, shoot me an email at [email protected] with the word ‘health quiz’ in the subject line and I’ll send you a copy. Then take it in the privacy of your home or office and find out once and for all the areas you’re good in and the areas that may need some TLC.

And, that’s the minute for today. Got a burning financial health question? Send it to me at [email protected]

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It's Monday and I have a question.

How’s your financial health? Well, one of the best ways to find out is with an semi-annual financial health check-up.

So what’s a financial health check-up and why is it important? Well, just like you go to your doctor to get a health check-up so that you can catch things before they get out of hand, the same thing applies to your finances. A check-up gives you the opportunity to locate problem areas and fix them as well as take advantage of opportunities that you may have overlooked.

A financial health check-up covers all of the basic areas from testing your overall health to your spending habits, to your credit and how your investments performed as well as other important areas like your progress toward your goals. You should have most, if not all, of the information necessary to conduct one on your own or this might be a good time to have conversation to have with your financial advisor.

All this week, we’ll be discussing some of the major parts of a financial health check-up but you can get a head start by requesting a copy of my financial health quiz that you can take in the privacy of your home or office. If you would like a copy of the health quiz, email me at [email protected] and put the words ‘health quiz’ in the subject line and I will shoot you a copy.

To get started, consider my question today – how is your financial health and give yourself a score between 50 and 100. You get 50 points for just listening to the show. And, that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It’s Friday and time for our word of the week –the word this week is Cash.

I chose cash because it’s quickly becoming an endangered species. I read an article this week in the technology section that was titled, “The Death of Cash.”

In the article it talked about how technology and the digitalization of payment and fees was making it better and easier to make purchases without, as they called it, ever touching unhygienic, bacteria-circulating dollar bills. They also made the case that cash costs us a lot of money, point to a recent study by Tufts that showed that consumers lose about $200 billion annually by using cash. This includes ATM fees, and other losses associated with cash use, like the time and transportation it takes to drive to the bank. Finally, they argue that “cash derives its value from the information it contains and is a classic information good, which can be replaced by a digital substitute.”

But there is another side. And, that is the more we make case less visible, the greater the temptation to let it manage us instead of the other way around. We all know that it is much more difficult to give up cash at the register than to swipe a card. That’s because cash is real, it’s tangible and we are connected to it in the moment. For many people, the move to the digital age of spending will be problematic and in some cases, cause them to spend a lot more than they should, just because it’s easy.

Our word of the week cash. And that’s the minute for today. Like the Minute? Subscribe to it and leave us a review on iTunes or your favorite site so you never miss an episode.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today, breaking news about the age old question of money and happiness. But first, yesterday I said I would host a get out of debt webinar and I want to let you know that my offer still stands. This is kind of spur of the moment and I don’t have an official page set up but I do plan to give you good info and the outline of a plan that you can follow. If you are interested in attending, shoot me an email at [email protected] and put the word ‘debt’ in the subject line.

Now money and happiness. Sonja Lyubomirsky of the University of Southern California. In her book The How of Happiness, says it's largely how we react to life circumstances that determines our happiness -- by a factor of 4 to 1! She has a laundry list of activities to help us improve our happiness factor and they boil down to six simple suggestions:

Invest in personal relationships

Commit to meaningful goals

Take care of your body and soul

Live in the present

Practice gratitude and positive thinking

Learn coping strategies

We are in uncharted territory as a nation and I think these are not just good for our happiness factor but also for our lives and I wanted to share these with you.

And that’s the minute for today.

Don’t forget if you are ready to tackle your debt head-on send me an email at [email protected] and include your top questions and I’ll answer them during the webinar.                                                     

Thanks for listening and as always remember that minding your money really is the path to a richer life!

If you thought that getting out of debt was something that you could put off until tomorrow or never, it may be time to rethink that strategy. It is anticipated that the Fed will raise interest rates today and that will mean higher rates on credit for a lot of people and especially on credit cards.

The last time that the Fed raised rates back in Dec 2016 that added about $18 to payments and if they do the same today that could mean a total of a $36 in increases on each debt  in about six months and this is probably not the last increase this year.

I say all this to say that credit and debt is not getting any cheaper. How many hits can you afford to take and stay on course? Just as I was getting ready to record this episode a couple of friends, after hearing about the proposed increase, asked me to put together a credit and debt webinar because they are finally ready to admit that they need help. I told them I would be willing to do that if at least 10 people signed up. I would do a free webinar with fast track strategies to help them get out of debt. Now I haven’t had time to set anything up but if this is something you would be interested in shoot me an email at [email protected] and also include any specific questions you have. If I get the 10 people, I will schedule it around July 1st and I will record it if you can’t attend.

Debt is taking over and it’s time to fight back. Don’t forget if you are ready to tackle this head-on send me an email at [email protected] and include your top questions and I’ll answer them during the webinar.

And, that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

There’s no question that people who have the saving habit have a much greater chance of getting the things they want in life, living debt free and have the ability to recover faster when disaster strikes. But how do you save when there never seems to be anything left over? If you have a decent income and you keep finding yourself in this situation, it’s time to break that mold. Mel Robbins in her new book, the 5 Second Rule suggests that when you want to change your behavior that you stop and count backwards from 5 to 1 – she says that disrupts old patterns and that’s kind of what you need to in some cases when it comes to saving. Often the hardest part to saving is getting started, then once you build the habit your contributions will grow.

So as you count backwards from 5 to 1, here are three strategies to get you started:

Track what you're spending. The best way to do that is to keep a record of everything you spend -- from bills you pay to snacks at work. Track your expenses for at least a month -- three months if you really want to know where your money is going because then you can begin to see patterns and trends to your spending.

Plan to save. Now that you have some idea of where your money is going, make a plan to divert 5-15 percent of your income to savings. If you use a budget, add it in just like any other bill. If you don't use a budget, just take it off the top. That maybe painful at first, but it will get better over time. Then as your income increases, instead of increasing your lifestyle, increase your savings.

Save for something you want. Saving for savings sake is not fun, but when it's something you want it gets a lot easier. For example, maybe a new outfit, an exotic vacation, or maybe you just want some peace of mind so you start an emergency fund.

Remember, saving is a choice. The benefit is that making the choice to save now can lead to bigger and better choices for your future.

And, that’s the minute for today. Got a burning question? Send it to me at [email protected]

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It's Monday and I have a question.

Today my question is really an informational one. So much happened in the financial world in the past week that I hardly know where to start. One of the big things that happened was that the a new Fiduciary Rule went into effect.

The fiduciary rule basically states that advisors, brokers, insurance agents, etc who deal with retirement accounts must put the interests of their customers ahead of their own. Raise you hand if you thought they already had to do that. Well, they didn’t and many didn’t that’s why the new law.

Even though the new rule requires advisers making recommendations on retirement accounts, and on rollovers from workplace plans into I.R.A.s, are required to charge reasonable fees, and they are not permitted to make misleading statements about investment transactions, their compensation or any conflicts of interest, don’t get too comfortable because they have already found a way around it.

The big brokers are ready and they want to shift clients from individual accounts to advisory accounts where they charge quarterly fees. If you make a lot of trades, this may not be bad, but if you are buy’em and hold’em kind of person, you could see your fees rise. They should contact you before they make the shift and if they do carefully weigh your options and the fees. There is a lot more to this but I’m running out of time.

It should be noted that this is only the first part of the law and the other parts have been delayed until January or never. In fact, the House has already passed a law to repeal it. Seriously! And, that’s why minding your money is so important – no one and I mean no one is going to care as much about keeping your money in your pocket as you are.

And, that’s the minute for today. Let me know what you think. Write me at [email protected].

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It’s Friday and time for our word of the week –the word this week is Vision.

I chose vision because it’s really been the theme that ran through this whole week and I wanted to delve in a little deeper. Your vision will literally set the tone for your life. It should describe on a high level, the ultimate life you hope to create so dream big, but keep it within the realm of possibility. Unlike a bhag or a big, harry, audacious goal, the purpose of your vision is to paint a picture in your mind and heart of what it will look and feel like when you arrive – but not the details of how you will get there – we’ll leave that up to your goals and your plan.

To create a powerful vision, shut down that voice in your head that keeps saving, “But how are you going to do that?” and, instead listen to your heart. What is so powerful that you would like to create or accomplish that would cause you to pop out of bed in the morning and keep going even when it looks tough? What is it?

Our word of the week vision. What’s yours? Think of it this way, the hero’s journey has three basic parts – the dilemma, the destination, and the journey your vision is the equivalent of the destination or special world you are called to manifest so your job is take on the persona of the hero. After all, each of us is the hero or the shero of our own life’s story.

And that’s the minute for today. Like the Minute? Subscribe to it and leave us a review on iTunes or your favorite site so you never miss an episode.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

So, yesterday I mentioned two important financial tools to help you get to where you want to go. They included net worth statement and a budget. I went into some detail about the net worth statement yesterday in Episode 663 and today I want to focus on the budget today and how it can help you get to your ideal life. I also made available some samples and templates of each that you could get by going to www.mindingyourmoney.org and clicking on Episode 663 or todays Episode 664.

So, what exactly is a budget and how can it help you? Simply put, a budget is an itemized summary of likely income and expenses for a given period.  It helps you make decisions about how you want to spend your money.  You can use a spreadsheet, an online service like www.Mint.com or www.YNAB.com, or software like Quicken. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out.  It’s helps you prioritize your spending and manage your money—no matter how much or how little you have.

Planning and monitoring your budget helps you identify expenses that waste money, find hidden money, adapt quickly as your financial situation changes, and achieve your financial goals.  When you actually see the breakdown of your expenses, you may be surprised by what you find.  Creating a budget can also decrease your stress levels because, with a budget, you don’t have to panic or wonder if you have the money for unexpected expenses or items to treat yourself—you already know.  However, if the goal is to reach a specific destination then a budget will show you how much you have available to put toward that goal. And, that’s why it’s so important in analyzing your current situation.

And that’s the minute for today.

Don’t forget you can download net worth and budget samples and templates as well as other resources at www.mindingyourmoney.org at Episode 664.                                                         

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Resources:

Net Worth Statement

Personal Monthly Budget

Yesterday, I gave you some homework which was to basically describe your ideal life and why it was important to you. If you missed that episode – Episode 662 – stop, go back and listen to it first because today’s episode builds on it.

Once you know what your ideal life looks like – your vision or your destination. The next part, is to analyze your current situation to see how close or far away you are from your destination. The difference between where you are now and where you want to be is the gap you need to fill.

So, what’s involved in analyzing your current situation? Some of the tools that will be useful here are a Net Worth Statement and a Budget. Your net worth statement because it will show you any assets you have available to help you get to where you want to go as well as any liabilities that could hold you back. So if in completing your new worth statement your find that you have some cash in savings, that could help you get closer to my destination. On the other hand, if you find that you have a great deal of debt, that could make it more difficult. So the next thing you would need to decide, if that’s the case, is if you can pay off the debt as you go along or if it would be better for you to stop and pay off the debt first.

One question I like to ask at this point is how much are you paying in interest on the debt. If it’s less than $50 a month, you can probably pay it off as I go along, but if it’s more than that, it maybe a good idea to a least consider putting a plan in place to pay it off because the more money you have to pay in interest, the less money will be available to get you to your destination. It’s all about choices.

And, that’s the minute for today. Tomorrow we talk about the budget. In case you need it, I have put together a net worth statement and a budget sample and template that you can download. To get your copy, visit www.mindingyourmoney.org and click on Episode 663.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Resources:

Net Worth Statement

Personal Monthly Budget