JW’s Financial Coaching Podcast JW’s Financial Coaching Podcast-A show devoted to answering your personal financial questions and covering current events in personal finance. Giving people a new perspective on their money!

August 17, 2016  
00:0000:00
  • The average US household financial stats
  • What these stats say about your economy
  • What to do to be better than average
  • Motivation to not be financially average
  • Quote of the lesson from Steve Siebold

The JW’s Financial Coaching Podcast_117

When I first started the blog and the podcast, one of my most popular posts that gained some traction was the Don’t be Average blog post. In this post I shared some average financial statistics on income, debt, and savings which I tried to paint a picture that the average financial situation in America isn’t all the great. Since the original post back in 2010 I updated it for 2011 and did one of my original podcast lessons on the same topic.

But I realized I hadn’t had an updated version since 2011 so on today’s lesson we’re going to cover the average financial stats in America for 2016. Among some of the statistics discussed in the show:

  • The Median Household income is $53,657 [1]
  • 1% of households that have a credit card have a balance at the end of each month with an average debt of $16,000[2]
  • The average car payment is now $503(!) over 68 months[3]
  • The average car lease payment is now $400 [4]
  • 2016 college graduates had an average student loan balance of $37,000[5]
  • For all households that have a student loan, one in seven, the median balance is $13K[6]
  • The savings rate is currently 5.3%[7]
  • 50% of Americans would have to borrow or sell something to pay for a $400 emergency[8]
  • 1 in 7 Americans have a negative net worth [9]

We go into depth more on each stat and explain why these are troubling statistics.

But we also explain why it can be used as motivation to get out from under the rut of being at or below average and what you can do to having a good personal economy.

This is just a great reminder that we can’t go through life taking advice from “He said, I heard, and everybody does.”

Today's quote of the lesson is brought to you by Audible.com

"Average People live beyond their means. Rich people live below theirs. ” ~ Steve Siebold

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

[optin-cat id="13626"]

[1] http://www.deptofnumbers.com/income/us/

[2] http://www.valuepenguin.com/average-credit-card-debt

[3] http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-and-for-longer-on-their-auto-loans.html

[4] http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-and-for-longer-on-their-auto-loans.html

[5] https://studentloanhero.com/student-loan-debt-statistics-2016/

[6] https://www.brookings.edu/research/the-typical-household-with-student-loan-debt/

[7] http://www.tradingeconomics.com/united-states/personal-savings

[8] http://www.federalreserve.gov/econresdata/2014-report-economic-well-being-us-households-201505.pdf

[9] http://www.whig.com/20160808/household-debt-concerns-economists-lenders#

August 7, 2016  
00:0000:00
  • How to balance enjoying money now vs. enjoying it later
  • The three questions Lisa and I ask when making a purchase
  • Why the amount in your bank account doesn't tell you what you SHOULD do, it tells you what you CAN do.
  • Should I be spending on luxuries when I'm in debt?
  • Quote of the lesson from Warren Buffett

The JW’s Financial Coaching Podcast_116

One of the most common issues that I encounter when I’m working with an individual or a couple is how to balance long term goals like saving, investing, or paying off debt vs. making a big purchase such as a car or a fancy vacation.

It’s a great question, because while we do our monthly budget and perhaps do set aside money for big purchases, the budget can’t tell us whether or not we *SHOULD* do it, it really can just tell us if we *CAN* do it.

On today's lesson of the podcast I'm going to share the process that Lisa and I use when making a big spending decision and whether or not we should do it now or later.

Now much like most thing in personal finance, the decision is a personal one that all depend on your situation and financial goals. But when it comes to making big purchases decisions below is the process that Lisa and I do when we look to make a big purchase.

We always like to ask ourselves the following three questions first

  • How much is it going to cost?
  • How are we going to pay for it?
  • If we have to budget for it, what will we need to change in our budget?

It’s important first to determine how much the purchase is going to cost. Doing so will help give you a clearer picture and will assist in determining whether or not it is something to do now or wait for another time.

After you know how much it costs, it’s then time to figure out how you will pay for it. Is it going to come out of savings? Will you have to adjust your budget for a few months to save enough cash? Is there something in your home that you can sell on EBay or Craigslist to get a cash infusion?

If you already budget for it, such as a car replacement fund, do you have enough time to save the correct amount between now and when you would like to make the purchase? If not, what will you need to change in your budget to have enough saved by then?

Some other things to consider as well is, if I make this purchase, what else is this going to prevent me from doing financially in the next few months? Save for my emergency fund? Not going out with my friends on the weekend? Postpone my debt repayment plan? You then have to weigh that loss against the gain of the purchase.

As for me, my #1 goal would be to have my $1,000 emergency fund funded first. Because if I don’t have my emergency fund fully funded and I make this purchase it’s like I’m spending my emergency fund on a luxury and a luxury is not an emergency. There’s nothing wrong with spending on luxury, but not at the expense of an emergency.

In addition, I personally wouldn’t be going on trips or spending big purchases on wants if I’m still in debt. I just think it is unwise. Often though I hear back from young adults in their 20’s and early 30’s who are looking at huge student loan balances, lower incomes, and don’t feel like they are ever going to get to spend their money on something nice so they want to go on a trip to be with friends.

While I might not agree with the purchase, I’m OK with it as long as it is paid for in cash and credit isn’t being used to fund a purchase. I’m never going recommend borrowing money to travel for luxury for example, but if someone can save up the money then going on the trip isn’t a “bad” or “un-wise” financial decision necessarily. It’s just different from what I do and teach.

However there needs to be a point where we focus and are more serious on paying off our debt then on travel. If the travel is a once in a few years type of deal that’s ok, but if it is a once a year thing I think I you might need to reevaluate how much getting out of debt is important to you.

To me this example it is a great opportunity to ponder on what your goals and priorities are. Yes you can go on vacations or buy a new car, but that is probably going to slow down the acceleration of getting out of debt, postpone your investing, or subtract money from your ability to do something else. Is that worth it to you? There isn’t a wrong or right answer but a question to ponder.

Hopefully that is enough information for you to make the best decision next time you are in this position. I think going through this exercise, whether you make the purchase or not, is a good real life example of how to handle money. You aren’t just acting on a whim and just making an impulse purchase, rather you are thinking critically whether or not to go and I’m sure you’ll make a wise decision.

Other resources mentioned in today's lesson

Today's quote of the lesson is brought to you by book on our experience of buying and selling a house titled "A Tale of Two Houses"

"Do not save what is left after spending, but spend what is left after saving” ~ Warren Buffett

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

July 25, 2016  
00:0000:00
  • A Review of FeeX.com
  • Why Feex.com is a good way to learn about the fees you are paying on your investments
  • What Feex.com won't do for your investing
  • How fees aren't the only thing to look at when it comes to investing
  • Quote of the lesson from Geeta Iyencar

The JW’s Financial Coaching Podcast_115

On the heels of last week’s lesson of the podcast with guest Greg Whitaker discussing the risk of 401(K)’s and how fees impact your return, I decided to do a review of website I discovered about two years ago called FeeX.com

Feex.com bills itself as the “Robin Hood of Fees”. It helps you in finding out how much in fees you are paying within your IRA and 401(K), tries to find alternatives, inside your 401(K) or outside, that have lower fees, and shows you how much those fees are impacting your balance over the long run.
I originally got an email from FeeX asking that I check out their service. I get these emails a lot in my line of work and I usually pass on them because they are for something I don’t personally agree with or recommend like credit cards, pay day loans, or debt consolidation. But I gave FeeX a try and I’m really glad I did as I believe their service can really help people in their investing and determine how to get mutual funds with lower fees.

Using the site is pretty simple. You start by logging in with your email. You then select your providers of any current or old 401(K)’s or any IRA products from a list of hosting companies. In the 18 months I have been using the site they keep adding new providers all the time. In addition you can also submit your companies 401(K) listing of accounts if your company’s aren’t already included.

After you add all of your accounts with FeeX it will then breakout the fees you are paying by account and then determine if there are other fees similar to the ones that you already own that have lower fees. For 401(K)’s that is usually just a fund or two. For IRA’s there are more since IRA can use thousands upon thousands of funds.

Overall I think FeeX is a very useful tool when it comes to retirement planning. The one thing you need to remember is that FeeX is only designed to look at fees inside your investments. It can’t tell you if your portfolio is well diverse, if you are contributing enough into your account each month, or if you are on pace to have enough to retire. It’s a site to help reducing the fees you pays.

With that being said I’d recommend checking it out. FeeX isn’t the only site that provides the service, but as of now it is 100% free and really is easy to use. In addition currently they can also help out with moving an old employer 401(K) to a IRA if you so desire which is a nice plus.

If you have used FeeX before, please let me know. I’d love to hear your thoughts and experiences.

Today's quote of the lesson is brought to you by Podbean.com

"Knowledge has a beginning, but no end.” ~ Geeta Iyencar

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

July 17, 2016  
00:0000:00
  • Guest Greg Whitaker joins us to share his take on 401(K)'s
  • Why fees cut into our retirement saving and what you can do to avoid paying them
  • What to do to learn about investing
  • How the inability to delay gratification is impacting our retirement
  • Quote of the lesson

The JW’s Financial Coaching Podcast_114

Greg Whitaker from DebtSheperd.com joins us today to share why the 401(K)’s are not the safe investment that we have been led to believe.

2d3acc4.jpgGreg teaches financial freedom gained from 16 years in the mortgage business and 10 years of financial literacy training.

I love Greg’s passion for teaching and sharing financial wisdom. In short he believes the 401(K) isn’t a safe investment primarily due to the following primary reasons:

  • No way on insuring against loss
  • Fee structure
  • Individuals not knowing what they are investing in

One of the main ways we get in trouble with our 401(K) is that we have no idea what we are doing when it comes to investing. Rather we just pick a random fund or pick one at the advice of a co-worker who may or may not know what they are doing. Greg and I discuss what you can do to learn about investing, not just in a 401(K) if that is what you choose, but also investing in other areas such as a business, real estate, commodities, or anything else you feel comfortable putting your money.

The main point of this lesson is to basically pay attention to what you are investing in. Know the fees that you are paying for each fund. Know what you are investing in, know what the goal is of the investment, know why you are investing in it, and properly diverse.

For more financial information and opinions that you don’t hear in traditional financial media, please check out Greg’s podcast Debt Sheperd radio. In addition below are material Greg mentioned in the interview.

Today's quote of the lesson is brought to you by Audible.com

“I didn’t sign up for my 401(K) at work, because there is no way I can run that far”

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

July 11, 2016  
00:0000:00
  • Guest John Pugliano joins us to share the result of 30 years of frugal living has had on his finances
  • Simple rule that allow the Pugliano's to become financially independent
  • The crucial element to building wealth
  • Why you need to focus on what is really important to build wealth
  • Quote of the lesson from Jon Acuff

The JW’s Financial Coaching Podcast_113

John Pugliano from wealthsteading.com joins us today to share the impact that 30 years of frugal living has had on his family's finances.

Pugliano-photo.jpg?resize=248%2C300I heard John give an interview on my friend Steve Stewart's old MoneyPlanSOS podcast over a year ago and I knew I wanted to have John on the show as his story is really inspiring.

Usually when I have guests on the show to share their story, it is a story of getting out of debt in the last two to three years. However today story is unique in that John is sharing his story of over 30 years of wise purchases. What I love about his story is that he stuck to a plan and it has paid off quite nicely for him.

John and his wife’s story is one from the Thomas Stanley classic, “The Millionaire Next Door”, in that their plan was nothing flashy. Instead is what just being consistent over and over. John and his wife had similar views on spending and saving which helped a lot. In addition they didn’t simply ever spend more than they made, outside of a mortgage only ever had one car payment, no student loan debt, and no credit card debt.

But it always wasn’t a smooth ride, there were ups and downs and bad decisions regarding career choices were made. In fact John didn’t really start to make progress on becoming financially independent until he was 35 years old. But it didn’t deter him and now John is a money manager and founder of Investable Wealth LLC.

To John there are three main wealth building principles to master:

  1. Learn to earn an income
  2. Develop the discipline to save
  3. Learn how to invest

For John there really isn’t one way to build wealth. You can do so via real estate, stock investing, commodities, or starting a small business. However being debt free was crucial to building wealth for John and his family.

I’m honored that John shared his story and I hope you find it encouraging in your journey towards improving YOUR economy.

To check out John’s podcast visit wealthsteding.com

Today's quote of the lesson is brought to you by Podbean.

“Never compare your beginning to someone else's middle”
Jon Acuff

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

July 3, 2016  
00:0000:00
  • Guest Phil Danley joins us to how he and his wife paid off their debt, including the mortgage
  • What led Phil and his wife to dump debt and be done with it forever
  • The difference between knowing what to do and actually doing it
  • Life after debt and what Phil did that he could only do if we was debt free
  • Quote of the lesson from Helen Hayes

The JW’s Financial Coaching Podcast_112

Quite often when we hear debt free stories we assume that it is all fun and games and whenever you start to pay off your debt that it will automatically.

However that rarely happens.

A lot times it takes people a few tries before they are done with debt for good.

Today’s guest on the show had a similar path.

Phil Danley from consumerdebtcoach.com joins us to share how he and his wife paid off $28,000 in consumer debt then paid off their house just two years later.

But this wasn’t their first time in trying to get their finances under control. In the 90’s and 00’s they went through debt management and even a bankruptcy.

But what got them serious in 2010 to knock it out for good? Good old fashioned anger. They got tired of their debt, created a budget and compromised on their spending so they would have enough money each month to pay towards their debt.

It was a little slow at first but once they paid off their first debt, they gained momentum and were able to pay off their consumer debt in about 28 months. In working together and compromising with his spouse it helped their marriage as it felt more like they were partners in paying off their debt.

They then decided to stay focused and pay off their house just two years later.

Phil says that there is a big difference in knowing what to do and actually doing it. His keys to getting out of debt are

  1. Get an emergency fund
  2. Determine what monthly expenses you want to dump and which to keep
  3. Do a monthly budget
  4. Tithe your income

What have they been able to do know that they don’t owe anything to anyone? They’ve been able to max out their 401(K) contribution. But even more important Phil has been able to step back a bit at his work and has become a certified life coach.

To learn more about Phil please visit his blog at consumerdebtcoach.com

Today's quote of the lesson is brought to you by Podbean.

“The expert at anything was once a beginner.”
Helen Hayes

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

June 27, 2016  
00:0000:00
  • Guest Monica Louie joins us to talk about how her family paid off $120K in debt in two years
  • What motivated them to pay off so much debt
  • Why they sold their house to reach their financial goal
  • The power of having a common goal in your marriage
  • Quote of the lesson from Dave Ramsey

The JW’s Financial Coaching Podcast_111

Today we continue with our series of guest interviews by welcoming Monica Louie from OurDebtFreeFamily.com to the show. Monica is a fellow financial coach and today she shares how her and her husband paid off $120,000 dollars in exactly two years.

IHZK0VtR.jpegThey always wanted to become debt free, but something really clicked when Monica heard a story of how another couple had become 100% debt free including their home. After Monica heard that story she felt like her family could do the same thing.

When hearing the Louie’s story, what stuck out to me was the extreme sacrifice they made to reach their goal. Not only did they downsize from the home they bought right when they got married, but they also sold a car, a motorcycle, and lived away from each other for a while to earn extra money.

Also listing out all of their debt and sticking to a budget each month went a long way towards keeping them motivated to pay off their debt.

Today the only debt they have is the one on their home and their goal is to pay that off by the time they are 40. Monica says that having a common goal and being on the same page with her husband has greatly impacted their marriage.

"If you want something bad enough, then you iwll do whatever it takes to make it happen" ~ Monica Louie

For more information on Monica please check out the following

This lesson’s quote is brought to you by Audible.com.

“You'll only truly sacrifice when you passionately believe in the outcome” Dave Ramsey

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

June 19, 2016  
00:0000:00
  • Guest Brad Baldridge joins us to talk about taming the high cost of college
  • We won't give unless we are first content with what we currently have
  • How to become a giver year round
  • Why giving works best when the money is set aside to do it
  • Quote of the lesson from Satchel Paige

The JW’s Financial Coaching Podcast_110

Today we are joined by guest Brad Baldridge of TamingTheHighCostOfCollege.com to talk about how to plan for college.

highres_7390d5533f.jpgBrad Baldridge, CFP®, is a College Funding Consultant specializing in late stage college funding planning and the chief podcaster of Taming The High Cost Of College.  He provides customized planning using the latest financial aid, tax, cash flow and academic strategies.

Brad is based out of Milwaukee, Wisconsin and about 10 years ago started to help people in late state college planning.

Brad and I discussed about what you need to do as a parent and as a student to get ready to pay for school. Both from an early planning point as well as a late staging perspective.

Brad also shares what are some of the common mistakes people make when planning for college and why it's important to start early when preparing to save for college.

We also discuss topics such as how your college choice is an important step of the college selecting process, should your child work in college, and whether or not you should you should help your child pay for college in the first place.

For more information on Brad please check out the following

For more information on college planning please check out the following podcast I've done in the past on the subject.

Today's quote of the lesson is brought to you by Podbean. To

“Don't go to college, unless to get information” Satchel Paige

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

June 12, 2016  
00:0000:00
  • If giving isn't a priority, it isn't going to happen
  • We won't give unless we are first content with what we currently have
  • How to become a giver year round
  • Why giving works best when the money is set aside to do it
  • Quote of the lesson from Anne Frank

The JW’s Financial Coaching Podcast_109

I think giving is something we'd all like to do a better job of, but usually don't. There are a lot of reasons for that but today's lesson is about encouraging us to become better givers.

Because let's face it, when was the last time you gave and didn't enjoy it? I think when we truly give money, not out of obligation or of guilt, it is one of the best things we can do with our money.

Then how come we don't give as much as we'd like to? Today we're going to discuss four ways to become a better giver. Now normally when we talk about giving, we're talking more than just money, but today we're talking about money.

The good news is that anyone can give! There isn't a certain income threshold that prevents us from giving. Of course the more you make, the more you can potentially give, but don't let a certain dollar amount prevent you from becoming a giver.

Being thankful for what you got

We won't give unless we are first content with what we currently have. Sometimes we forget that we have so much and instead compare ourselves to what we don't have.

But the mindset of being content means we free ourselves to give. Being discontent holds us back a lot of time with giving. I think that's because we fee like we're missing out on something if we give. But when we are in a state of thankfulness and contentment, we're able to give without worries.

Doing it the whole year

When we think of giving most of the time it is around the Christmas season. There's nothing wrong with giving at Christmas, but if that is the only time we give, I think we're missing out.

Lisa and I have personally found that we give more when we do it consistently through the year. It builds up that giving muscle of discipline and giving has now become something that would crush us if we had to give it up.

Budget for it

Giving works best when you set aside the money to do it. When I coach people the first thing I have them do with their budget, after taking care of the four walls, is to put an amount in the giving section.

Putting giving in the budget works a lot better until waiting towards the end of the month and giving what is left over. That is because when you budget giving you are making it a true priority.

If you don't have much to give, still budget for it. What if you are someone who likes to give more spontaneously based on need? No worries, you can still budget for that. Lisa and I did that last year and it has been a blast to give when needs arise.

Visit a place you want to help

Finally to help encourage your giving, I suggest visiting or volunteering to help causes that you are giving to or want to give to. For example if you want to give to your place or worship such as a church or synagogue, go ahead and plan a visit. Or if you are interested in a inner city or homeless program, make a trip down there.

By visiting and seeing what your money is actually doing and how it is helping your cause or impacting lives, that will be enough motivation to keep giving. Which will ultimately leave you to become a bigger giver and leave a bigger impact.

Today's quote of the lesson is brought to you by Podbean. To

“No one has ever become poor from giving” Anne Frank

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

June 5, 2016  
00:0000:00
  • What recent college graduates can do to put themselves in position to succeed financially
  • How to know where you stand financially
  • Why developing a spending plan is a process, not an event
  • Why having a map when you are trying to get out of debt is extremely important
  • Quote of the lesson from Karl Pearson

The JW’s Financial Coaching Podcast_108

This time of the year is graduation season. I love coaching with people in the life stage because it is an important time in their life and they are full of energy and questions and are also very teachable.

Today's lesson we are going to be discussing the three things that recent college graduates can do to take control of their finances. The good news is that even if you aren't a recent college graduates, these three things still apply to your situation.

For college graduates however, it is a little different in that transitioning from college to the "real world" is a tough process. Not are you dealing with money, most likely, for the first time in your life, you are also transitioning to word life. This includes working Monday through Friday, shifting your body clock and time schedule, as well as working with the same people everyday instead of getting a fresh start every semester.

But in order below are the three things recent college graduates should do to get a good control of their money:

  1. Know where you stand financially
  2. Develop a Spending Plan
  3. Debt Snowball

Know where you stand financially

A lot of times we can't get anywhere because we don't know where we are. So knowing where we stand financially gives us a snapshot of our current financial situation.

As a recent college graduate this might not look pretty and in fact it can be also really eye opening. Which is a good thing. But knowing where we stand will help guide and motivate us through the things we are going to talk about next.

For more information on knowing where you stand financially please check out:

Develop a Spending Plan

After knowing where you stand, it is time to develop a spending plan. The good news is that a spending plan is something you get to control, so if you think it is too restrictive then guess what? You can always change it!

If you don't make much money it's still important to do one. You might think you'll do it later when you make more money, but I've found that it is important to develop the budgeting muscle a soon as you start making money. That way you do start to earn more you are less likely to get sucked up in the lifestyle inflation trap.

Now with a spending plan you might not have enough money to do everything you want to. But if you develop and stick to one it will ensure that you get to spend money on the things that are most important to you.

For more information on developing a spending plan please check out:

Debt snowball

If you are trying to get somewhere new for the first time and you don't have a map, you're just guessing on how to get there.

That is often how we are with our debt, we want to get out but we have no idea what direction we need to take.

The debt snowball is simply listing all your debts smallest to largest. But in addition to listing them out, you are also labeling how much the monthly minimum payment is, the interest rate, and the lender. This gives you a list of all your debts and from there you can decide on which debt to attack first.

I personally recommend paying off the smallest debt first, but whatever way you decide to pay off your debt I do recommend to focus on just one debt at a time. That intensity and focus on one debt at a time will take you really far.

For more information on setting up your debt snowball please check out:

If you are a recent graduate and would like someone to walk with you and teach, encourage, and show you how to do all of these things and more, please fill out the financial overview form. We can then work out a time to get together and see if we'd be a good fit working together.

Today's quote of the lesson is brought to you by my book on buying a house titled "A Tale of Two Houses"

“You either master money, or, on some level, money masters you!” Karl Pearson

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