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

It’s Friday and time for the Word of the Week! Our word this week is Diversification.

I chose Diversification because it is so important as it relates to your money. We’ve all heard the saying, “don’t put all of your eggs in one basket.”

It’s Friday and time for the Word of the Week! Our word this week is Diversification.

I chose Diversification because it is so important as it relates to your money. We’ve all heard the saying, “don’t put all of your eggs in one basket.” When talking about investments we are using this phrase to minimize risk. So to accomplish this you should invest in a variety of investments so that when one is down others have the possibility of being up or at least stable so that you have a smoother ride. A well-diversified portfolio includes some stocks, some bonds and some cash. Depending on your risk tolerance and your time frame, you vary the percentage you hold in each of these categories to achieve your goals.

Then there’s another type of diversification and that relates to your income. The key here is to have a variety of income sources so that you are not totally dependent on any one source. So if you are a nine to fiver this means looking for other forms of income such as income from dividends on stocks, rental properties and side hustles and if you own your own business look for ways to add recurring income streams that bring in money that you don’t a lot of extra work for such as seminars and classes.

Our word of the week: diversification. In building wealth, diversification is key whether you’re investing or building an income pool.

And, that’s the minute for today. Still haven’t joined the minding your money movement yet? Well, that’s an easy fix. Visit my website at www.psworth.com and sign up.

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

Today on the Minute – Legal Separation vs Divorce

I got a question from a listener about divorce. They wanted to know the difference between a legal separation and divorce and why someone might choose separation over divorce.

Today on the Minute – Legal Separation vs Divorce

I got a question from a listener about divorce. They wanted to know the difference between a legal separation and divorce and why someone might choose separation over divorce.

So briefly, the main difference between a separation agreement and a divorce is that one ends the marriage and the other does not. As with a divorce unless you have no assets and no children, you should get the assistance of an attorney in drawing up the agreement because it can get complicated. You can do some of the same things in a separation as you do in a divorce such as dividing property, settling child custody, alimony and child support etc. However, a separation agreement does not afford you the same protection that a divorce does in terms of for example, future debts, etc. that your spouse may rack up and stick you with. Yes, you can build in some protections but it will be up to you to take your spouse to court if he or she violates your agreement.

So why choose a separation over a divorce. Here are four common reasons:

Some states require couples to separate before they can get a divorce so you may not have a choice

Religious reasons – perhaps your religion does not recognize divorce so you can live apart but still be married

Financial reasons – to obtain insurance, for example, or staying married until you can qualify for Social Security benefits that require to be married for at least 10 years to collect a portion of your spouse’s benefits

You are just not emotionally ready for divorce

No matter which option you choose, make sure everything is in writing and if the two of you change your mind on some things later on, get that in writing to. Without that you really don’t have a leg to stand on.

And, that’s the minute for today. Don’t forget to sign up for the minding your money movement at psworth.com.

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

Today on the minute – Money advice for women

I’m in the process of writing a new book called Green Purse: Wealth Building Strategies for Women.

Today on the minute – Money advice for women

I’m in the process of writing a new book called Green Purse: Wealth Building Strategies for Women. As you can tell by the title it’s written especially for women. But most of what I write can apply to guys as well so I would encourage everyone who wants some bite-size strategies like you get on the minute to get a copy –best of all it’s going to be free at least for a limited time. So stay tuned for more info on how you can get your copy.

So what’s inside – It contains a variety of what I call savvy financial strategies and here’s a sneak peek…

Developing a wealthy mindset is key to achieving and sustaining wealth. Having a wealthy mindset means overcoming attitudes, thoughts and behaviors that can block your path to success. Money biases are everywhere, and we’re all vulnerable to them because they usually plant their roots deep in our subconscious so we may not even be aware that they exist. But whether or not you are aware of their existence, they can pose some huge stumbling blocks.

So, for example, if subconsciously you believe that having a lot of money or being “comfortable” is a bad thing, then you will never achieve sustainable wealth because you will always find a way to sabotage yourself. Want proof? Think about the stories you’ve heard of some of the big lottery winners who ended up losing their money almost as quickly as they won it. Your mindset is key.

So what are some common money thoughts, attitudes and behaviors that might be holding you back? Here are five particularly destructive ones:

Money is the root of all evil. Actually the correct quote is “the love of money is the root of all evil” and the point it’s trying to make is that money should not be the focal point of your life, not that having money is evil. Misinterpreting this quote can lead you to repel money instead of attracting it or to get rid of it as soon as it comes into your life so that it becomes impossible to build wealth.

You can check out the other 4 plus a method to change or overcome some of the money habits that are not working for you in my upcoming book.

And that’s the minute for today. Have you signed up for the minding your money movement? If not, make you way to my website – psworth.com and sign up so you can get a dose of money savvy delivered direct to your inbox each week.

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

Today on the minute – How Much Debt Do You Have?

This is probably one of the most uncomfortable questions to ask the person you love – the person you want to marry.

Today on the minute – How Much Debt Do You Have?

This is probably one of the most uncomfortable questions to ask the person you love – the person you want to marry. But it is oh so necessary. How much debt includes everything from credit card debts to student loans to back taxes to loans from your parents to gambling or shopping debts. It’s a number you need to know because when you marry someone, you – the marriage takes on that debt. And even if you vow to keep it separate the money to pay it has to come from somewhere. And that somewhere is ultimately from your pot of money.

Isn’t it better to face it from the start and to create a plan to tackle it so that you can get on with your lives and possibly end up debt free? Couples who don’t ask this question and many don’t are often blindsided at the least opportune time. I get it, there's a lot of shame associated with debt, but learning to face these money issues before you get married can actually offer you the opportunity to create more intimacy – to create a stronger bond. At the end of the day, money secrets erode trust, and since money is one of the top reasons couples get divorced, consider this by not asking this question, you could actually be setting yourself up for failure from the start.

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 – APR vs APY

When you’re getting a loan, two terms you should be familiar with are APR and APY.

Today on the Minute – APR vs APY

When you’re getting a loan, two terms you should be familiar with are APR and APY.

I know it’s a little confusing already because they look and sound so similar but there is a difference and depending on which one you are quoted when taking out a loan for example, you may not end up getting the rate you think you’re getting.

So let’s, start with compounding because it has something to do with it. Compounding as you know is basically earning interest on the interest you earned. And, the goal is to maximize compounding on your investments while minimizing it on your loans.

APR is the annual rate of interest without taking into account the compounding of interest within that year. Alternatively, APY does take into account the effects of intra-year compounding. While this difference may not sound big it can have important implications for both investors and borrowers.

For example, a credit card company might charge 1% interest each month; therefore, the APR would equal 12% (1% x 12 months). This differs from APY, which takes into account compound interest. The APY for a 1% rate of interest compounded monthly would be 12.68% a year. If you only carry a balance on your credit card for one month's period you will be charged the equivalent yearly rate of 12%. However, if you carry that balance for the year, your effective interest rate becomes 12.68% as a result of compounding each month.

This may not sound big but consider what happens when you are looking for a mortgage and the lender quotes you the APR rate vs the APY rate. The APR is always going to be smaller than the APY but the APY rate is still going to apply and over 15 or 30 years that can make a huge difference. So always ask, which rate they are quoting you.

And, that’s the minute for today. You know I love helping people with all aspects of their money. Check out my website at www.psworth.com and while you’re there don’t forget to sign up for the minding your money movement.

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 the Word of the Week! Our word this week is Minding Your Money Movement.

I chose Minding Your Money Movement because I’ve gotten a lot of questions about it – what it is? What it entails? And why you should join so here’s the skinny.

It’s Friday and time for the Word of the Week! Our word this week is Minding Your Money Movement.

I chose Minding Your Money Movement because I’ve gotten a lot of questions about it – what it is? What it entails? And why you should join so here’s the skinny. I created the Minding Your Money Movement or MYMM for everyone who is as my mom would say sick and tired of having your money tell you what you can and cannot do. If you want to take control, get out of debt, achieve specific goals like retirement, to be a role model for your kids, or you want to make your money work for you for a change.

I read an interesting article today about how the new president, the congress and the senate are already talking about the things they want to do and some legislation that’s sure to go are regulations on banks and brokers. This all means it’s really going to be up to you to understand how money works and take responsibility because if you don’t someone could easy be there to take it away from you. There is also talk about restructuring Social Security and Medicare two mainstays of retirement so that may put an even greater financial burden on you in retirement.

If all of this sounds scary, that’s because it is. So what do you get when you join the movement? My goal is to build a community. But to start out, I want to help you build your money muscles and habits so that you can comfortably take control of your money lives through what I am calling Basic Training and I also plan to have a basic training call each month to answer specific questions you have. Best of all, there is no fee to join.

Our word of the week: Minding Your Money Movement. There is literally no time like the present to join the movement and you can do that by visiting www.psworth.com.

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!

Today on the minute – Do You Really Want to Spend All That Time With Your Family?

Back in 1883, Otto von Bismarck, chancellor of Germany, came up with the model for retirement and Social Security.

Today on the minute – Do You Really Want to Spend All That Time With Your Family?

Back in 1883, Otto von Bismarck, chancellor of Germany, came up with the model for retirement and Social Security. He announced that the state would pay a pension to any non-working citizen older than 65, setting in place an arbitrary retirement age that still exists to this day.

However, back then very few people had the good fortune -- or good health -- to make it to 65, ensuring that state coffers wouldn't have to pay much.

Today, the average life expectancy in the United States is 79. And scientists have recently announced that they believe the first person to live 150 years is already alive. How cool is that.

So do you want to retire or not? My thought is that it’s better to be prepared so that you have options at the different stages of your life. But if you are leaning toward not retiring here are three excuses to put on your list:

I love my family BUT I don’t think I want to spend that much time with them. In fact, I’m not sure I could handle being with spouse 24/7. And, I’m not sure that I want to become a go to nanny for my grandkids either.

If I retire, I’ll die. My dad’s friend Joe retired and within three months I was attending his funeral. I don’t want to go down that road.

I’ll get bored. When you retire every day is Saturday and then Saturday becomes not special because there are too many of them. I really like having Saturdays to just kick back.

And that’s the minute for today. Have you signed up for the minding your money movement? If not, make you way to my website – psworth.com and sign up so you can get a dose of money savvy delivered direct to your inbox each week.

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 Want to Get My Books for Free?

Lots of changes are going on and I’m no exception. I am in the process of writing a series of Minding Your Money books and I’m looking for people who will agree to leave me an honest review on Amazon in exchange for free books.

Today on the Minute – Do You Want to Get My Books for Free?

Lots of changes are going on and I’m no exception. I am in the process of writing a series of Minding Your Money books and I’m looking for people who will agree to leave me an honest review on Amazon in exchange for free books.

If there was ever a time to mind your money this is it! We live in uncertain times and if you don’t have the ability to understand and take control of your money, you could be at a real disadvantage.

My new series will feature everything from basic personal finance, to investing to divorce all covered in bite-size pieces in English, just like the minute. I have created a Facebook group at mymbookclub and if you are interested in becoming a reviewer and getting my books first for free, simply visit my Facebook group at mymbookclub and request to join. I have a limited number of spots and I will warn you that if I keep my bargain and send you a free book, I expect a review.

I would like to leave you today with one of my favorite quotes – it’s either a Buddhist saying or a Chinese proverb and it goes like this: "If you want to know your past - look into your present conditions. If you want to know your future - look into your present actions."  

And, that’s the minute for today. Don’t forget to sign up for the minding your money movement at psworth.com and tune in tomorrow to learn all about the movement and what it means for you.

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

Today on the minute – Last Minute Tax Fixes

Before you know it the end of the year will be here and with it the inability to put many options in place to reduce your tax bill.

Today on the minute – Last Minute Tax Fixes

Before you know it the end of the year will be here and with it the inability to put many options in place to reduce your tax bill. Now is the time to take a good look at where you are and put strategies in place to protect your money.

Start by generating a mock tax return to get an idea of what you will owe. You can accomplish this with software like Turbo Tax or H&R Block or ask your tax preparer to prepare one for you based your income and deductions this year. Then look for places where you can lower your tax bill. For example, do you now qualify for credits that you missed out on last time or if you are not contributing the maximum to your 401(k), can you increase your contributions and have that make a difference for you. If it looks like you will be getting a large refund or if you will owe a lot, consider changing your W4 now to take some of the sting out of the bill or to have more to invest next year.

If this all sounds like Greek to you. Consider this – consider talking to tax professional – if necessary pay for an hour of their time to explain all of this to you and help you make good choices moving forward because they know the tax laws. You could actually see a return on your investment in the very first year. And, the best part of doing all of this prep work now is you’re all set for tax time.

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 – Revisiting Your New Year’s Resolutions

I was at a breakfast meeting of entrepreneurs on Friday and the question of the day was...

Today on the Minute – Revisiting Your New Year’s Resolutions

I was at a breakfast meeting of entrepreneurs on Friday and the question of the day was where are you now compared to the goals you set at the beginning of the year? How do you feel about it and what are your plans from now to the end of the year regarding those goals?

And as we went around the room and each person answered it was clear that we were all in different places and our feelings were all over the place as well. Some had not even come close to their goals and there was a slight sense of panic as they pondered these questions. Others had not met their goals and they were contemplating changing their plans for an extended vacation over the holidays, while others were happy with where they were but they were not going to take their foot off of the gas until the end of the year, and still others were going into planning mode for the next year.

Entrepreneurs are great people, but they are people just like you and me so my question to you is where, are you now in terms of the personal goals you set at the beginning of the year? (You know those New Year’s resolutions) How do you feel about where you and what are your plans from now to the end of the year regarding those goals? In other words, are you on target or are you out in left field? Regardless of where you are, how do you feel about it and what’s your plan to fix it, maintain it or celebrate it? It’s not too late and it’s not too early end with a bang or hit the ground running.

And, that’s the minute for today. You know I love helping people with all aspects of their money. Check out my website at www.psworth.com and while you’re there don’t forget to sign up for the minding your money movement.

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