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!

October 30, 2016  
00:0000:00
  • The most difficult loan to handle is the one from family and friends
  • Why we borrow from family and friends
  • The dangers in doing them
  • Why it is important to have to clear communication when lending to or borrowing from family and friends
  • Quote of the lesson

the-jws-financial-coaching-podcast_126

When I hear stories of people getting out of debt, the debt that gives them the most trouble is often a loan from a family member or friend. Giving or receiving loans from relatives or friends sounds like a good idea, but if you aren’t careful they can easily turn into a nightmare and easily lead to a ruin relationship.

Now most of you know I don’t recommend borrowing for anything, but what if you are already in the position of owing money to friends and family or are considering loaning money to a relative to help them get through a rough spot?

Today’s lesson we cover why it can be enticing to take out loans from family members and friends, discuss the dangers in doing them, how to handle these loans in the debt snowball, what happens if you can’t pay back a family member or friend, and a special discussion about co-signing and student loans.

Giving and receiving loans from a family member or friend occur often because it is easier to do then go to a bank or lending institution and go through all the paperwork and hassle. Perhaps you have bad credit and aren’t able to qualify for a loan from anywhere else. Or with low saving interest rates, you can make more by loaning it out to someone and get a better return than keeping it in a savings account in addition to “helping” out someone you care about.

However they often don’t work because since they are family or friends you don’t do the proper documentation and have a hand shake agreement. But after a few months go by, the “pay me back whenever” lender gets tired of not having his money back and seeing the borrower post on Instagram and Facebook about the nice dinner or vacation they just had. The leads to bitterness and resentment and at best leads to a strain in the relationship and at worse a total disolvement of the relationship and leading people to not talk for years.

In addition giving out a loan might not actually be a help to the individual, it might actually harm someone. Quite often these loans are given in a crisis situation due to a job loss or medical event and are used to not miss a payment on a car or mortgage.

But is this loan you are giving to them actually going to help their situation? Or is it just going to perpetuate the problem of poor financial management? That is something that needs to be considered before lending out money.

Since they cause a lot of strain on relationship I recommend treating them a little differently in the debt snowball. If I can move them up and pay them off sooner I would try. For example if you owe your in-laws $5,000 and have a $3,000 credit card balance I would try and pay off the $5,000 first, as long as you can make your own minimum payments. However if that loan from the in-laws is $20,000 I wouldn’t move it up the debt snowball.

What happens if you can’t pay? Well then you need to have clear communication with the lender and give them your entire financial picture and share why you can’t pay them at that particular time. Now this might be embarrassing to admit to them that you can’t pay. But it will help the relationship a lot more to sit down and be vulnerable instead of telling them “I’m working on it” and have no plan on how to actually do it.

With that being said I can’t recommend lending money to or borrowing from family or friends. The risk of running the relationship is too great.

Today's quote of the lesson is brought to you by A Tale of Two Houses 

Before borrowing money from a friend, decide which you need most.” ~ American Proverb

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

October 22, 2016  
00:0000:00
  • Most couples assume they need to sacrifice for child's college fund
  • Benefits of doing each one
  • Do we need to pick one or the other?
  • The need to prioritize yourself over your children
  • Quote of the lesson from Chris Hogan

the-jws-financial-coaching-podcast_125

The topic of saving for our own retirement vs. saving for our child’s education has been on my mind a lot recently. That is because I’ve worked with a lot of couples who have children in college or are approaching college age and feel like they have to choose between funding their own retirement and funding their child’s education.

Today we dive into why doing each one of these things is important and share why if I had to choose between the two that funding my own retirement over my child’s education is the way to go.

I have seen so many couples get twisted up in their thinking and feel like their child’s education fund is the most important thing. Make no mistake, education is very important but so is funding your own retirement.

Other resources mentioned in today’s show

Six months after the digital release of A Tale of Two Houses on Amazon I’m excited to announce A Tale of Two Houses is now available as an audiobook.

In addition to narrating the entire unabridged version of A Tale of Two Houses I included 10 enhancement bonus chapters that are exclusive to the audiobook version. Each chapter expands on a concept covered in the book, including some old podcasts that I did with my wife, Lisa during our most recent home buying experience. The bonus enhancement chapters include:

  • Renting vs. Buying
  • Is a House an Investment or a Liability?
  • Three Things to Consider Before Buying a House
  • Where to NOT Get a Down Payment From
  • Seven Creative Ways to Come Up with a Down Payment
  • Getting Ready to Sell Our House with Guest Lisa White
  • We’re In Contract! With Guest Lisa White
  • Getting Ready to Move with Guest Lisa White
  • Wrapping Up the Whole Home Buying Experience with Guest Lisa White
  • The JW’s Manifesto on Money

The total time of the book is 4 hours and 50 minutes including the bonus enhancements. Like the digital version, I think the audio book will help you during your next home buying purchase or sale in ways that most books on real estate don’t cover.

Currently A Tale of Two Houses audio book can be purchased via the following ways.

  1. iTunes-Current price of $9.95
  2. Amazon-Current price of $9.95
  3. Audible-Current price of $14.95
  4. Podbean-Current price of $6.99-This is purchase directly through my podcast site. Once you purchase it you can download the file to your computer, phone, tablet, etc and listen at your leisure. It is the cheaper of the four because this is through my site which means I get to keep a bigger percentage of the price, which I pass that savings on to you.
  5. Audible membership-Free with a 30 day free trial. When you become a member you

In addition to the audiobook release I’m also excited to announce that the digital version of A Tale of Two Houses is now available through Barnes and Noble for those who own a Nook device.

Today's quote of the lesson is brought to you by A Tale of Two Houses and is from Chris' book Retire Inspired:

“Failing to plan is the same as planning to fail. You’ll never get where you want to go if you don’t plan your route; that’s true for road trips and retirement!”  ~ Chris Hogan

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

October 12, 2016  
00:0000:00
  • Why I got into financial coaching
  • What Financial Coaching is
  • What Financial Coaching is not
  • Why this show is different than other financial podcasts
  • Quote of the lesson from Tom Landry

the-jws-financial-coaching-podcast_124

I got into Financial Coaching back in 2010, not because I knew everything there was to know about how to handle money or because I was going to make a full time gig out of it.

I got into Financial Coaching because I was tired of seeing those I know and care about make unwise financial decisions that either hurt them in the moment or gave them a higher degree of financial risk in the future.

Since getting into coaching my style has evolved and I have a better understanding of what works and what doesn’t work. I’ve coached a lot of different people from a wide range of income, marital status, stage of life they are in, and financial situation.

I’ve also learned that there is a specific client type that I work best with and who usually gets the best results. Those characteristics are those who

  • Are teachable
  • Willing to learn
  • Ready to make change
  • Want to do that work

But enough about me, why do I share that with you today? Because on today’s lesson we’re talking about what financial coaching Is and what financial coaching isn’t. When I first got into coaching, people would ask me all the time what the difference was between financial coaching and financial planning and I really didn’t have a good answer. But over time I have a better understanding on the differences

What financial coaching is:

  1. Helping you identify your overall financial picture
  2. Enabling you to implement changes into how you handle money
  3. Keeps you accountable on getting your main objectives accomplished
  4. Hands on help that is a lot more personal, intense, long term changing then a podcast or DVD

With that being said financial coaching is not:

  1. Just telling you what to do and expecting you to listen and obey
  2. Selling you products such as insurance or investments
  3. Me just spewing out advice and knowledge-you already know what to do, it’s actually doing it that is the hard part
  4. Me doing the work and you just sitting back and enjoying the fruits of it. Personal finance is personal! You need to have an idea of where your money is going and what your money is doing for you.

So with that being said, what can you expect from this show, considering it is titled the JW’s Financial Coaching Podcast? The podcast is me taking scenarios and situations that I have seen working with clients and turning them into teachable lessons in verbal form. Because it is a medium for all to listen to I try to cover all financial situations but I can’t personalize it for each situation. My hope is that you can get bits and pieces of each lesson and apply it to where you are currently and ultimately this show is an encouragement to you to continue to make changes in the way you handle money.

Know that you have a better idea of what financial coaching is, if you would like to work with me one on one please fill out the financial overview form and we can set up a time to chat over the phone to better learn about your situation.

Today's quote of the lesson is brought to you by the JW's Financial Coaching Newsletter

“A coach is someone who tells you what you don’t want to hear, who has you see what you don’t want to see, so you can be who you have always known you could be” ” ~ Tom Landry

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

October 2, 2016  
00:0000:00
  • How to track your savings fund
  • Things to consider when deciding whether to lump your savings together or keep it separate
  • The only way to guarantee savings
  • How Lisa and I track our savings
  • Quote of the lesson

the-jws-financial-coaching-podcast_123

Today we are talking about a nice problem to have, how to track all of your savings accounts. If you aren’t there yet, don’t worry, you’ll get there as soon as you develop a plan, stick to it, and start to pay off your debt.

But how do you keep track of all the different saving funds? Once you become debt free and are able to bank more money each month you’ll be able to save money for variety of funds, including:

  • Emergency Fund
  • Vacation Fund
  • Car replacement Fund
  • Down Payment Fund

We’ll try to answer the question today if it is better to keep all your savings fund separate or lump them all together and keep a balance each month. Like much with personal finance, there is no one right way to do things.

But it is important to track it somehow, because the tendency is to just let it pile up in our checking account. Which makes it a lot easier to spend it and let it slip away like sand in our hands.

There are a few things to consider however before you decide whether or not to separate your savings account.

What is your financial temperament?

Are you a saver? A spender? Do you like your finances to be detailed or are you more of a free spirit? Answering these question will you determine whether you want your funds separated so they aren’t as easily accessible or if you want to spend the time breaking the dollars out.

How much money are we talking about?

If you are tracking a few hundred bucks here and there it might not be worth it. But if you have a significant balance over a longer period of time, it might be better to separate it out, so you know exactly what the money is for.

How detailed do you want your savings?

Are you someone who has multiple savings projects occurring at the same time? Or do you like to be spontaneous and decide to do one thing like a vacation, car, or home remodel once a year? If you know you just want to do something, but not exactly what, just having one savings account would probably work best.

What Lisa and I do

Lisa and I do a hybrid when it comes to our accounts. We have three accounts. One is our main account, one is where we write our checks out of each month, and the other is where we put excess savings into. At the end of each month I take the balances in these accounts, add them up, then break them out the following ways

  • Emergency Fund-Pretty constant, rarely changes
  • Stock Purchase Plan-Money we are saving to cover contributions to our employee stock purchase program
  • Insurance/Utilities sinking fund-The money not paid on a month basis that we still budget for
  • Car Repair Fund
  • Children’s college fund-Any money we get as a gift that we will put in our children’s education account by dollar cost averaging
  • Cash that we get for gifts
  • Fixing the house fund
  • Car Replacement/Vacation Fund-We don’t separate these funds out

This way works for us since we are both natural savers and aren’t likely to spend the extra money in our checking out. It’s less maintenance for us then having a separate account to track everything. But we have looked into ways into improving our savings.

Today's quote of the lesson is brought to you by the JW's Financial Coaching Newsletter

“To be rich, is not what you have in your bank account, but what you have in your heart.” ~ 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.