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

Today on the minute – Are You on the Fast Track to Retirement?

So how do you know if you are on the fast track to retirement? Here’s a really important clue – you have a plan that you are following and according to it you are not just on track but on the fast track. So why a plan? While plans vary in the way they look, the length and some of the details, but general they should answer the Who, What, Where, When and How for your retirement so you can always tell where you are and how much further you have to go. So for example:

The who is obviously you and possibly other members of your family such as your partner or spouse

The what as in what your retirement will look like – this includes everything from how you will spend your days such as starting a new career, starting a business, traveling or sitting on the couch to how much all of this will cost you.

The where is concerned with where this will take place? In other words, will you stay in your current location or move, how you will accomplish that and how much it will cost.

The when gets real specific about your timing to start retirement? And, if you significant other if the two of you will retire at the same or different times.

And, then there’s the how – last but certainly not least. How will you make it all happen, especially the money piece? This also includes a system for investing now and in the future so that once you retire you don’t have to worry about money.

And, that’s why a plan and specifically a retirement plan is so important – it should answer the who, what, where, when and how of your retirement.

That’s the minute for today. I love helping people with all aspects of their financial lives. If you have a 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!

Today on the Minute – Do You Have an Entrepreneurial Mindset?

Last week I talked about some steps to becoming an entrepreneur and I got some interesting questions so I’m going to mesh a couple of them together. Basically, the question is, “Do you need a special mindset to be an entrepreneur?” And, the answer is yes. While anyone can become an entrepreneur, those that are successful have some common traits and here art three really important ones:

They are decision makers. It’s impossible to run a business if you can’t make decisions and oftentimes you have to make decisions based on little information. That requires you to know your business so well that you can predict the impact of various decisions, not just on your bottom line but on the future of your business.

They know exactly what business they are in and what business they are not in. Sometimes, especially when you are starting out and looking for customers, it’s easy to fall into the trap of trying to be all things to all people. When you do that you do a disservice to your customers and yourself because if something is not in your wheelhouse, chances are you won’t be as good at it and that could end up damaging your fragile reputation.

They take responsibility. When decisions turn out to be wrong, they man-up or woman-up. In other words, they don’t shift the blame to others.

Beyond the skills and being good at what you do, you have to be in it to win it and these three traits are essentials.

And that’s the minute for today. You know I love helping people with all aspects of their financial lives. If you have a 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 Friday and time for our word of the week –the word this week is Debt Tolerance Level.

Usually when I talk about tolerance levels with clients, I’m talking about their risk tolerance level – or how much risk they can stand to take with their investments and still sleep at night. But debt is also a form of risk because it’s a loan and the risk is that you won’t be able to pay it back and it could cost you in many ways. Your debt tolerance level is basically your ability or willingness to endure the stress associated with varying levels of debt. Some people have a very low debt tolerance level and the thought of owning someone else freaks them out while others have a very high debt tolerance level and the problem is that things can get way out of hand before they realize it.

So what’s the answer? If you think of debt and use it strategically for things like buying a car or a house or even using credit cards, regardless of what someone is willing to lend you – you should make a conscious decision about how much debt is okay for you and part of that decision should be driven by your debt tolerance level and part of it should be driven by your budget or what you can afford to pay back with stretching your finances too far – so that you have something left over.

Our word of the week – debt tolerance level. I remember as a kid taking the bus downtown and spending all the money I had before I remembered that I had to pay to take the bus back home. I never forgot that and if it had not been for the kindness of strangers, I might still be wandering around downtown Detroit. While going into debt is sometimes necessary or the best course of action, try to stay within your debt tolerance range so that it doesn’t keep you up at night.

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!

Today on the Minute – Mary Tyler Moore and Equal Pay

Mary Tyler Moore passed away yesterday and I had forgotten how radical some of the issues she shined a light on years were especially in the 70’s and how some of those same issues plague us today. A single mom working – women dealing with workplace issues – and the big one equal pay for equal work that keeps so many of us stuck today. I read an interesting statistic, it said that if equal pay for equal work was enacted it would eliminate 50% of the poverty in the US. I don’t know if that is true or not, but I do know that it would have a huge impact on a lot of women and their families. So have a conversation with your representatives. Impress upon them the importance of this issue and how it wouldn’t just benefit your family but all families – that’s powerful because when you have economic equality then you really have power – power that is sustainable.

Remember, minding your money can take many forms and it’s not just for some, it’s for all.

And that’s the minute for today. Concerned about your future and making your money work for you? Visit my website at www.psworth.com – I’ve got lots of tools and information you can use or click on the contact us button and leave me a message. I love hearing from listeners and minding your money has never been more important.

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

Today on the minute – 5 Low Cost Ways to Start a Business Now!

If you want to start a business but you don’t know where to start, here are 5 low cost ways you can get started:

Make something. This is for creative types. There are lots of places to sell your wares today and you don’t have to leave home. Places like Amazon’s homemade, Etsy and Ebay are just a few.

Resell something. Buy things wholesales and sell them at a profit.

Sell services. What skills do you do that others want and there are no limits here from dog walking to computer services. Sell your services or get ideas from places like Fiverr or Elance or UpWork.

If stuff is more important than money to get started, consider bartering where you trade something you have for something you want.

Consider some shared economy entrepreneurship opportunities that make use of something you have like driving for Uber or renting out a space on AirBnB.

And there you have it. I promised 5 low cost ways and with these 5 strategies you have a ton of options so no more excuses. If starting a business is what you want, there is no time like the present.

And, that’s the minute for today. I love helping people with all aspects of their financial lives. If you have a 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!

Today on the minute – Are You Ready for to Take Advantage of Compounding?

I read an interesting article today about compounding. You already know how great compounding is but in this article they took it a little further. They had someone starting investing $500 a month at age 25. By age 59, they had over a million dollars and by waiting to retire until 86 (they were using Warren Buffet as a model because he is 86 and still working) and continuing to leave the money invested they would have over $9.6 million dollars.

Now that’s great. The problem is very few 25 year-olds have $500 a month to invest. In fact, many of them are saddled with so much in student loans and credit card debt that they can barely pay their bills. According to the 2016 American Household Credit Card Debt Study, the average household has about $49,000 in student loans and $16,000 in credit card debt. So while I am all for investing early and investing often – the big question is where is the money going to come from. Unless we can do a Mulligan – a do over and get people on the right track early –before they get into student loan and credit card debt – and teach them some of the basic financial principles – principles that they still don’t teach in schools – it won’t be possible for so many people to take full advantage of the power of compounding.

I know this sounds dark, but I don’t want you to think that the situation is hopeless, quite the opposite – thousands of people have conquered debt and gone on to create fantastic lives for themselves and their families. It just takes a little longer, a lot of disciple and maybe the pot is not quite as big but as long as you set a goal and consistently go after it, anything is possible.

And, that’s the minute for today. Don’t forget to go over to www.mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to reach your goals and even dig your way out of debt.

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

Today on the Minute – It’s the year of the entrepreneur

If you have ever had a dream to be an entrepreneur, this is the year to do it. There are so many low cost options that it’s never been easier to get started. But a word of caution – don’t quit your day job until your business more than covers your salary consistently.  What I’m really talking about for most people is a side hustle – but one that has the potential to become full-time at some point so here are three basics to get you started:

Plan out what you want to do. It’s most important to choose a product or service that other people want because they will be the ones to buy your products or services. If you can mix your skills and talents with something you really like doing with something that people really want then you have a real winner and something that you will most like stick with for the long haul.

Be prepared to market or sell your product or service. Just because you build it, it doesn’t necessarily mean they will come – you have to let people know you exist. So next to having a good product or service you must be willing to get out there or set aside funds to have someone else do that for you.

Keep your eye on the money. This includes everything from pricing your products and services to earn a profit – to keeping good records – to having a plan for the money you make so that all of your hard work isn’t for nothing.

There has never been a better time to start a business – tune in tomorrow for 5 low cost ways to start a business now!

And that’s the minute for today. You know I love helping people with all aspects of their financial lives. If you have a 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 Friday and time for our word of the week –the word this week is DIY Money Management.

So what’s DIY Money Management? Well, it’s basically taking responsibility for managing your money yourself. Now, that doesn’t necessarily mean that you have to do it all by yourself – but it does mean that you are in the driver’s seat and you are actively involved the all management decisions. There is a cute commercial by Charles Schwab where a couple asks a lot of questions about everything except when they sit down in front of their advisor where they don’t question anything he says. As a DIY money manager, you are definitely not that person. You are not afraid to ask questions until you are satisfied that you understand your advisors recommendations and how they benefit you.

Lately, I’ve been getting some questions from people who have money sitting in savings accounts, CDs and money market accounts and they want to know what to do to get a better return. Some of them want to work with an advisor but they don’t know who to trust and others just want some guidance about where to start so here are three things to consider as you take on the role of your DIY Money Manager:

#1, attitude -- you are in control, it’s your money and you have to live with the outcome – so don’t give your power away or delegate it to someone else.

#2, if you plan to do this on your own – get some basic financial education like the classes and coaching I offer or if you want to get help, first determine exactly what it is you want help with. Are you just looking for guidance, are you looking for help with a specific goal like retirement, do you want someone to take over all of your finances or somewhere in between? Once you know what you want help with you can zero in on the people who offer those services.

#3, trust but verify. Even after you select someone to work with you have to stay on your toes – read your statements, question things you don’t understand and by ready to make a change if it doesn’t work out.

Our word of the week: DIY Money Management. Since you have to live with the outcome, you may as well be in it from the start.

And, that’s the minute for today. Did you know that you can listen to and read all of the Minding Your Money Minute episodes on our website – just visit www.mindingyourmoneyminute.com and listen at any time.

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

Today on the Minute – Contribution Limits for 401(k)s

Yesterday we started talking about 401(k)s and I got a question from Thorton. He will be contributing to his company’s 401(k) for the first time this year and he wanted to know how much he could contribute and if that amount included the match that he will receive from his employer.

So here’s what you need to know Thorton. This year you can contribute up to $18,000 to your 401(k) or $24,000 if you are over 50 same as last year. And that amount is the amount you can contribute regardless of any contribution from an employer match – in other words, the match does not affect the amount you can contribute. An employer may match your contribution in a number of ways from a straight percentage, such as 3% or 5% of your salary or fifty cents for every dollar you contribute up to 6% of your salary. As you know, contributions to a 401(k) are pretax meaning contributions come out before Federal, State, or City taxes so they reduce your taxable income so you pay less taxes when you make a contribution – so it’s a win-win for you.

A couple of other important things to know -- if you need to withdraw funds there are some stiff penalties and tax consequences if you withdraw funds before you are 59 1/2. Review your contributions at least annually to ensure the plan/ contributions meets your long term risk tolerance and goals.

Having a 401(k) and an employer match now that’s really a good thing.

And that’s the minute for today.  Still haven’t gone over to www.mymbooks.com and picked up a copy of my new book? Did I mention that it’s free and you can get it in several different formats – Kindle, Nook, iTunes, PDF and there’s also an audio version so you can listen on the go. So hop over to www.mymbooks.com and claim your copy now.

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

Today on the minute – Are You Ready for Your 401(k) to Rule You?

There is a quiet revolution going on in many 401(k)s – they are quietly going on autopilot. Companies are enrolling employees automatically, siphoning off some of their money and putting you in a range of investments and even increasing contributions on a regular basis. And, instead of opting in in this case, you have to opt out.

Now, don’t get me wrong, I think 401(k)s are good things because they help you save for retirement and without them, many people would be up the preverbal creek without a paddle. But, do you really want your employer making these types of decisions for you? Before, you answer that question, you should realize that most employers are just doing this out of the goodness of their hearts – there are generally economic reasons behind the moves.

If you have access to a 401(k), make use of it, but do so on your own terms. I know it can be difficult sometimes to get up and take the steps to do this on your own – but it’s your money and more it’s your future that we are talking about. Letting your employer make investment decisions for you – REALLY. Come on, if you need help – get it. But investing for your future should be up to you because you will have to live with the results.

And, that’s the minute for today. Don’t forget to go over to www.mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to create the life you want.

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