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!

March 23, 2015  
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  • A lot of times financial stress is caused by using financial products not in a way that they were originally intended for
  • Why retirement, insurance, emergency savings, and your house shouldn't be used for other things
  • How using those products what they were intended for will make your financial life easier
  • What to do with your tax refund
  • Quote of the week

JW Financial Coaching Podcast 85For a lot of us, money can be a difficult and confusing thing to grasp. There are a lot of reasons for this including lack of financial awareness, family history, no desire to learn how to handle money. But the more and more I hear people talk about their money struggles the more I realize that some of the confusion results from us using financial product for other uses other than their original intent.

Today we are going to talk through four different financial products/assets that we are using for a different use than their original intent. Some of these we use differently because we are marketed to that way via the banks or some salesman. Others non-original uses result from just not being prepared or paying attention to our finances. Below are the four that we will talk about today

Financial Product/Asset Intended Use Un-Intended Use
401(K)/IRA (Retirement) To save for use after retirement Pay off debt/Emergency Fund
Insurance Protect family financially in case of negative life event (death, disability, accident) Way to save for retirement or children's college fund
Emergency Savings Keep family from falling off financial cliff in case of a financial emergency Use to fund inconvenices that weren't planned for
House Place to eat, sleep, and live your life Emergency Fund/Retirement Funding

 

Now we aren’t picking on anyone if you have or are doing any of these. But after going through the list it’s no wonder why money can be so confusing. But when we use these products for their original use our lives are less cluttered and our finances become clearer.

Below are other blogs or lessons of the show where I talk about these products more in depth.

In addition I also comment about an article I found on bankrate.com titled “How Americans will spend their tax refund”. 30% of Americans will use their refund to pay down their debt. While that is very admirable I can’t help but wonder how many of them have debt because they got a refund? The reason for the refund is because you have too much withheld from your paycheck. Instead of scrapping by, wouldn’t it be better to get your money each month and use that to avoid debt in the first place?

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

“Someone else is happy with less than what you have” ~ Unknown

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.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

March 8, 2015  
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  • Remembering Dr. Thomas J. Stanley
  • Why do we treat the source of money differently?
  • Anthem and Identity Theft
  • Guest media appearances
  • Quote of the week

The JW’s Financial Coaching Podcast_84Today’s show is in memory of Dr. Thomas Stanley, who was tragically killed in an automobile accident last weekend. Dr. Stanley authored many books but his most famous was the classic Millionaire Next Door. That book is on my short list whenever someone asks me about must read personal finance books. It also was one of the big influences that got me interested in learning about personal finance and ultimately into coaching and blogging.

Rather than focus today’s lesson on one major topic I am doing something different today and going to be talking briefly about on a few different topics. I would love to hear whether or not you enjoy this format better.

The first topic we discuss is how we view and treat money differently depending on the source it came from. What I mean by this is it just or me or do we view money differently when it is from our regular income compared to a bonus check? Or do we treat money from a garage sale differently than an inheritance or tax refund? I know I do and most of my peers do as well. I noticed this recently on Facebook when a lot of people were sharing what they had bought with their tax refund. But why is this? The way I look at it your normal income is what you pay your bills with, investing in your 401(K), and give. Tax refund is money to be spent, while bonus money is money to save for a larger purchase like a vacation or car. However I never think about investing or giving any of that money.

Ultimately though if we have a certain goal such as getting out of debt, building an emergency fund, or saving for a down payment on a home, shouldn't all of our money, no matter what the source, go towards that goal? I believe so but am intrigued as to why we don’t do that.

Identity theft and data breach seems to be more and more common. Recently Anthem announced that over 80 million people had had their personal data compromised including their name, address, date of birth, income, and social security number. While that is scary, it is also a good reminder that you really can’t protect your identity. So how do we guard against it? Well really the best thing we can do is to monitor our credit report.

I’ve done whole shows on the credit report before, but this is just a reminder to check your credit reports at least once a year. You can do so for free at annualcreditreport.com. If you go through that site you can get a free annual credit report from all three of the credit reporting agencies. Checking your credit report can’t stop identity theft, but it can stop it from growing quickly.

Finally I am proud to share with you a couple of guest post appearances I’ve made recently. The first was a guest interview on Mint.com. They asked me several questions pertaining to how I started getting into financial coaching, what financial coaching looks like, and how money is more than just the numbers.

The second guest appearance was on the website Scratch Wireless and had thoughts from me and 24 other personal finance experts on how to save money each month. I discuss my answer and why I think that it is true as well as discuss other people’s advice. We also dive into the thinking that the best way to save money is to spend.

This lesson’s quote is brought to you by Audible.com and comes to us from a French Proverb:

"Money is a good servant, but a bad master”

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 FeedburnerStitcher SmartRadioiTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.