EPISODE 49  Living a happy and satisfying life is the pursuit of most people. We all want a good lifestyle.  However, choosing the wrong lifestyle for you can have significant financial consequences. On this episode we look at two couples who chose slightly different lifestyles, even though they made the same income, and then compare their financial position after 10 and 30 years.  The difference will surprise you!     SHOW NOTES     Lifestyle Choices    How do you match your lifestyle for your income?    You can only afford a lifestyle that fits into your income.    Many people actually create a lifestyle beyond their income, and use debt to fund that lifestyle, but then it’s not sustainable and they end up going through extreme emotional hardship fighting that debt and lowering their lifestyle. The hard part is that it often requires three times as much effort to fight your way out of debt, than to live within your income in the first place.   Overspending Example:     Earn $50,000    Spend $51,000    10 years later - Debt $10,000    Interest 10% = $1,000    How Much Do They Have to Cut Lifestyle?     Yearly obligations and costs after 10 years of overspending:     Interest $1,000 per year    Principal $1,000 per year    Reduced Lifestyle $1,000 per year     They were spending $51,000 per year and now must spend $48,000 per year for 10 years to get out of debt.    Lifestyle Choices: Fishers Vs Burks     Both married in 1999    Bill and Tom had similar jobs at Wilson Financial    Sally and Sue were both elementary school teachers    Same family incomes    Both couples owned a home    Both drove two cars    Both took annual vacations    Both ate out every Friday night for “date night”        

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


     Ten Years Later … Fishers saved $0 while the Burks saved $117,000.     

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


    

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


    

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


    

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


    

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


    

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


    

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


       Resources   Spending Guideline

Living a happy and satisfying life is the pursuit of most people. We all want a good lifestyle. However, choosing the wrong lifestyle for you can have significant financial consequences. On this episode we look at two couples who chose slightly different lifestyles, even though they made the same income, and then compare their financial position after 10 and 30 years. The difference will surprise you!

     

 
 
      Episode 48  The Holiday season is upon us and with it comes the traditional Christmas gift buying season.  On this episode we share some spending tips and ways to think about spending on gifts to make your holiday spending less expensive and your Christmas more enjoyable.   SHOW NOTES  Holiday Spending Tips     Set a budget for your holiday spending.      Plan your gift buying  - decide who you will buy for and how much you can afford to spend on each gift.    Check out the Gift Planning Tool under resources below.    Remember: people who love you would rather get something small or nothing at all rather than to see you go deeper into debt.    Be honest and open with your immediate family about what you can and cannot do.       Holiday is about time with loved ones not just about gifts.   See if your family or friends would be open to skipping the gifts and instead getting together to celebrate (like a Super Bowl party).  Everyone pitches in, you have a lot of fun, and no one feels obligated to spend money they may not have!     Suggest a grab bag gift exchange  -There are many variations of this game - Google it!     Each person buys a gift and brings to the party.  You can place a number on each gift or just put them in a pile. Write a number on a piece of paper for each person and put them in a basket or hat.  Draw to determine which gift or order of picking.    Limit each person to one gift of a higher value (Ex. 6 people each pick a name out of a basket and buy that person a gift for a slightly higher value - instead of buying 5 gifts of $50 each you buy one gift for $100 saving you $150).       Find and use coupons and discount codes  - retailers are looking to incentivize you to spend.   Discounts and % off is how they are trying to get your attention.    Whatever you’re buying search for a coupon or a discount code online.  There’s no reason you should pay full price for anything at this time of year.       Barter with online stores  - use the chat feature on the websites to ask for a % off to purchase from them.     Earn store gift cards or store cash  from purchases and make your money go further.  But! Stay away from 10-15% off with purchase offers with credit card sign up.     Buy gift cards and save  - many retailers are offering discounts for buying their gift cards such as buying a $100 gift card for $85 dollars. You can then use these to do your shopping or give them as a gift.     Leave the credit and debit cards at home  - buy with cash to ensure you stay within your budget.     Don’t buy a gift for yourself.   This is the season of giving and receiving not buying for yourself.  Since you will no doubt receive one or more gifts this season, why not save some of your money by not buying something for yourself?       RESOURCES   Gift Planning Tool   Gift Planning Tool Video               

Episode 48
The Holiday season is upon and us and with it comes the traditional Christmas gift buying season.  On this episode we share some spending tips and ways to think about spending on gifts to make your holiday spending less expensive and your Christmas more enjoyable.

     

 
 
      Episode 47  No one plans to die!  In fact, most of us rarely consider it even though each of us will one day pass on.  Perhaps that’s why most people don’t have a plan for what will happen after they die. On this episode of Getting Money Right, we continue our conversation with Dawn Pruchniak, whose husband died unexpectedly, leaving Dawn with the difficult task of having to navigate through all the financial affairs that followed.  Through her story and the book she’s written, you will learn what it takes to get your own affairs in order so that you and your loved ones will be prepared for the future.   SHOW NOTES    What you will learn from this episode:       Getting your affairs in order will help your loved ones avoid as much pain as possible at your passing.    When a loved one passes there are many decisions that follow for which you want to be prepared.    When grieving, making decisions is difficult and confusing because your brain isn’t free to make rational and good decisions.    Every call is an emotional call...every transaction is emotionally charged.    Most men think they have all their financials together, but they rarely share the details with their spouse or loved ones.    Women think these things are boring and nothing they should be concerned about until their husband or loved one passes away.    How to successfully set your financial affairs in order to protect and make sure your family avoids unnecessary pain.    Why having a yearly conversation with your loved ones is important.       THE BEST GIFT IS YOUR LAST GIFT by Dawn Pruchniak       Find All Your Assets    Verify Your Beneficiaries (the easiest planning mistake to make with the biggest unintended consequences)    Be Confident You Understand Your Wills, Trusts, and POAs    Everything You Need to Get Your Stuff in Order        Getting Your Affairs in Order       Discover what you have and where it is    Creating the Master List of Assets.      Remove unintended consequences (beneficiaries)    Making sure your assets have the correct beneficiaries on them.      A will is not what you probably think it is    A “will” will not help you avoid probate    With a “will” your information is not kept private      Who speaks on your behalf - power of attorney    Digital Chaos    Ensure your information online is secure and easily accessible to your loved ones.      Surviving Alone    Skip the Drama - Funerals       Resources     Book -  The Best Gift is Your Last Gift   Free gift from Dawn Pruchniak:    Text to 58885 your name, space, email, space, then the word "gift."    Go to  www.prudencepartners.com/gift  and fill in the form.    Email me directly  dawn@prudencepartners.com  and put "Free Gift" in the subject line.     

Episode 47
No one plans to die!  In fact, most of us rarely consider it even though each of us will one day pass on.  Perhaps that’s why most people don’t have a plan for what will happen after they die. On this episode of Getting Money Right, we continue our conversation with Dawn Pruchniak, whose husband died unexpectedly, leaving Dawn with the difficult task of having to navigate through all the financial affairs that followed.  Through her story and the book she’s written, you will learn what it takes to get your own affairs in order so that you and your loved ones will be prepared for the future.

     

 
 
      Episode 46  No one plans to die!  In fact, most of us rarely consider it even though each of us will one day pass on.  Perhaps that’s why most people don’t have a plan for what will happen after they die. On this episode of Getting Money Right, we speak with Dawn Pruchniak, whose husband died unexpectedly, leaving Dawn with the difficult task of having to navigate through all the financial affairs that followed.  Through her story and the book she’s written, you will learn what it takes to get your own affairs in order so that you and your loved ones will be prepared for the future.   SHOW NOTES    What you will learn from this episode:       Getting your affairs in order will help your loved ones avoid as much pain as possible at your passing.    When a loved one passes there are many decisions that follow for which you want to be prepared.    When grieving, making decisions is difficult and confusing because your brain isn’t free to make rational and good decisions.    Every call is an emotional call...every transaction is emotionally charged.    Most men think they have all their financials together, but they rarely share the details with their spouse or loved ones.    Women think these things are boring and nothing they should be concerned about until their husband or loved one passes away.    How to successfully set your financial affairs in order to protect and make sure your family avoids unnecessary pain.       THE BEST GIFT IS YOUR LAST GIFT by Dawn Pruchniak       Find All Your Assets    Verify Your Beneficiaries (the easiest planning mistake to make with the biggest unintended consequences)    Be Confident You Understand Your Wills, Trusts, and POAs    Everything You Need to Get Your Stuff in Order        Getting Your Affairs in Order       Discover what you have and where it is    Creating the Master List of Assets.      Remove unintended consequences (beneficiaries)    Making sure your assets have the correct beneficiaries on them.      A will is not what you probably think it is.    Who speaks on your behalf, power of attorneys     Digital Chaos    Surviving Alone    Skip the Drama - Funerals       Resources     Book -  The Best Gift is Your Last Gift   Free gift from Dawn Pruchniak:    Text to 58885 your name, space, email, space, then the word "gift."    Go to  www.prudencepartners.com/gift  and fill in the form.    Email me directly  dawn@prudencepartners.com  and put "Free Gift" in the subject line.     

Episode 46
No one plans to die!  In fact, most of us rarely consider it even though each of us will one day pass on.  Perhaps that’s why most people don’t have a plan for what will happen after they die. On this episode of Getting Money Right, we speak with Dawn Pruchniak, whose husband died unexpectedly, leaving Dawn with the difficult task of having to navigate through all the financial affairs that followed.  Through her story and the book she’s written, you will learn what it takes to get your own affairs in order so that you and your loved ones will be prepared for the future.

     

 
 
      Episode 45  Communication is the foundation of every relationship.  In this episode, we are talking with Jeff Tippett, an author,  and an expert in persuasive communication.  Jeff is passionate about helping people improve their communication.  Few subjects are more difficult to communicate about than money.  Learning how to work together, avoid manipulation and find agreement, will not only improve your finances but your relationship.    Shownotes    What you will learn from this podcast    The difference between Persuasion and Manipulation.    How persuasion improves your relationship.    How to craft your message when preparing to speak to your partner.    Listen.    Ask clarifying questions.    Seeking alignment - “the sweet spot.”       How to build trust through communication.    Be consistent.    Deliver as you promised.    Be open and authentic.      The power of your communication and how it impacts others.      Resources   Unleashing Your SuperPower: Why Persuasive Communication is the Only Force You Will Ever Need.

Episode 45
Communication is the foundation of every relationship. In this episode, we are talking with Jeff Tippett, an author, and an expert in persuasive communication. Jeff is passionate about helping people improve their communication. Few subjects are more difficult to communicate about than money. Learning how to work together, avoid manipulation and find agreement, will not only improve your finances but your relationship.

     

 
 
      Episode 44  On this episode of Getting Money Right, we’re answering one of our listeners’ questions.  Diana Rodriquez asks, “What two or three persons most influenced your view of money and what resources have you read or studied that has added to that view?”  Show Notes  What you will learn in this podcast    The men who contributed to David’s and Leo’s early financial knowledge and why they influenced their perspective on money.    Larry Burkett    Howard Dayton    Ron Blue    Dave Ramsey      The books that were most influential in shaping our beliefs and understanding of money and money management.    The Family Financial Workbook - Larry Burkett    Your Money Counts - Howard Dayton    The Word on Finances - Larry Burkett    The “Stewardship” Bible    The Blessed Life - Robert Morris    Money, Possessions and Eternity - Randy Alcorn         Resources

Episode 44
On this episode of Getting Money Right, we’re answering one of our listeners’ questions. Diana Rodriquez asks, “What two or three persons most influenced your view of money and what resources have you read or/and studies that has added to that view?”

     

 
 
      Episode 43  The path to reaching financial freedom is to build enough wealth to produce enough income so that you no longer have to work to provide for all your needs.  On this episode of Getting Money Right, we break down a few key wealth indicators that you can use to ensure you reach your own financial independence.   SHOW NOTES    Today we’re going to talk about some “indicators,” some numbers that help you understand the path to wealth.    Crossover Point    Saving Rate    Rate of Return    4% Percent Rule        1. Crossover Point:  when your investment earns more money for you than you’re saving each month.   At 5% rate of return your yearly invested amount grows as follows:     Year 1 - 5% of invested amount.    Year 5 - 1/3rd of invested amount.    Year 8 - 50% of invested amount.    Year 13 - crossover point - 100% of invested amount.    Year 23 - 200% of invested amount.    Year 30 - 300% of invested amount.    Year 35 - 400% of invested amount.        If you start investing at 25 crossover will happen at 38.  If you start investing at 35 crossover will happen at 48.     Starting early matters   Instead of trying to define Financial Independence is terms of a large number, you can be more quality of life focused, knowing these numbers can help you plan your life and make decisions to improve the quality of your life and others around you.    One Definition of Financial Independence is when your investments make enough to cover all your expenses, which means you no longer  need  to earn an income through labor.    Living comfortably and doing what I want with my time without concern about how      much income I earn.    Safe, steady income for life from a source other than a job.    The state of having sufficient personal wealth to live indefinitely without having to      work actively for basic necessities.            2. Savings Rate:  the amount of increase your investment will have over a specific length of time.  Assuming you earn 5% on your investments.       

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


       Two major ways to boost your savings rate:     Increase Income    Decrease Spending        3. Rate of Return     5% Rate of Return @ 10% Savings Rate = 51 years to retire    10% Rate of Return @ 10% Savings Rate = 33 years to retire     5% Rate of Return @ 15% Savings Rate = 43 years to retire    10% Rate of Return @ 15% Savings Rate = 28 years to retire    5% Rate of Return @ 25% Savings Rate = 32 years to retire    10% Rate of Return @ 25% Savings Rate = 22 years to retire        4. 4% Rule   Trinity University study found 4% to be a very safe withdrawal rate. As long as you're diversified and investing well in retirement, it should last 30 years.    4% of ½ Million would be $20,000 a year    4% of 1 Million would be $40,000 a year    4% of 1.5 Million would be $60,000 a year     This doesn’t take inflation into account, along with a few other factors. But, if you’re looking for some simple numbers to know what your savings target should be, this is a good place to start.    Other Investment Options   Your saving can be used to invest in other types of investments that will grow your passive income until it surpasses your regular income.    Real-estate investing.    Creating a business or product.    Real-estate, a business, and other types of investing could allow you to generate income very quickly to replaces your regular income, grow wealth, and be more generous with your resource and/or your time.

Episode 43
The path to reaching financial freedom is to build enough wealth to produce enough income so that you no longer have to work to provide for all your needs.  On this episode of Getting Money Right, we break down a few key wealth indicators that you can use to ensure you reach your own financial independence.

     

 
 
      Episode 42  Today, regardless of where you live, there’s a good chance you need a vehicle to get to where you’re going.  Therefore, auto insurance is something that you need to understand, because the cost can be significant, especially in the long term.  On this episode we break down auto insurance so you are better prepared next time your policy needs renewing.  Show Notes   Facts About Auto Insurance  The average cost of car insurance is $1,426 per year, or $118.63 per month.     Cost varies a lot based on:    Where you live    Your age    The cost of your vehicle    The coverage you choose    And, whether you’re a male or female.        Coverage Basics        Liability:  If you are deemed at fault in a car accident, liability coverage will pay for repairs, medical costs for injuries suffered by others in the vehicle, plus other expenses related to the accident such as legal fees.     Your liability limits are set at the time you purchase your policy. There are two parts to liability coverage: Bodily injury liability and property damage liability. The limits are the maximum amount the policy will pay out; anything above that would come out of your pocket unless you have other insurance.    If you buy insurance to meet the state's financial responsibility law, you must buy at least the minimum amount. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.       Collision:  If you hit another vehicle or an object, your collision coverage will pay for damages or repairs to your vehicle after you pay a deductible (up-front amount). In other words, if you have collision coverage with a $500 deductible and you suffer damage that costs $1,500, your collision coverage will pay $1000 after you pay the first $500.     Comprehensive:  Comprehensive coverage, which is also known as "other than collision," pays for losses to your vehicle if it suffers damage from something other than an accident. For example, if a tree falls on your car or you hit a deer while driving, some portion of that loss will be covered if you have comprehensive coverage. Like collision, comprehensive has a deductible attached to it.     Additional Coverage Options:     Medical Expenses:  This coverage pays for injuries that you, a family member or anyone else riding your vehicle may suffer in an auto accident, regardless of who is at fault. It also pays for injuries you or your family members may incur while riding in other vehicles.    If you have good medical coverage this may or may not be necessary.    Passengers not covered under your own health benefits will need coverage of their own or may expect you or your policy to cover any expenses they have.       Uninsured/Underinsured Motorist:  This coverage pays for injuries and property damage you suffer in an accident when the driver at fault either is uninsured or does not have enough insurance to cover your injuries and damage. It will also cover you in the event that a hit-and-run driver flees the scene and you cannot file a claim against that driver’s insurance company.     Options that may not be worth the cost:     Roadside Assistance:  Many insurance companies offer this optional coverage. If you need a tow or service for a flat tire or dead battery, roadside assistance will provide that service for a nominal premium.     Rental Reimbursement:  If your car is in the shop for several days and you need a vehicle, this coverage will provide that for you for a nominal premium.     Glass Breakage:  In general, this coverage is not worth the long-term cost because:    Your deductible is usually higher than the cost of the windshield repair.    Unless  you drive on a gravel roads a lot your chance of cracking your windshield are small.    Many of the chips and crack can be fixed relatively inexpensive,  instead of replacing the entire windshield.       Gap:  If you demolish that $30,000 vehicle the day after you drive it off the lot, the amount the insurance company pays is likely to less than what you paid for the vehicle.       Gap insurance   pays the difference between the blue   book value   of a vehicle and the amount of money still owed on the car. If you are leasing a vehicle or purchasing a vehicle with a low, or no,   down payment  , gap insurance is unfortunately a necessity.    We recommend you put down at least 20% when buying a vehicle.  Not only will this help you pay off the car sooner and pay less in interest, but it will remove the need for gap insurance.       Other things to consider    Comparison shopping is always a smart thing to do, and there are many websites designed to help consumers compare insurance policy prices. Compare rates, if not every year, at least every other year.      Independent agents often offer policies from multiple carriers and can help you find the policy best suited to your needs.    Your agent has an incentive, in the form of your repeat business, to provide good service, while an online service may come up short, so consider this option carefully.    Before you buy a policy, research your policy provider - regardless of who it is.     Numerous firms rate the financial health of insurance companies, and your state also has an insurance website that rates firms based on the number of complaints they have received.   (  A.M. Best Rating   /   Moody’s Rating  )    Best way is to google your insurer and add  AM Best rating  in the search.      If you stick with well known and reputable companies you’re less likely to have problems when a claim or getting your car repaired.           

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


      How to save money on your auto insurance policy     Make sure that you review and understand your policy before you sign on the dotted line. You’ll be glad you did, should you ever need to file a claim.    Do you need full coverage or just liability coverage?    Consider the age and value of your car.    Cost of coverage over the time you plan on keeping the car.    Insure yourself by having a “next car” fund just in case your car gets wrecked in an accident.  This eliminated the need for full coverage.      Avoid the “add on’s” to your policy, especially those that you can get from somewhere else at a lower cost.    Chose liability over collission when price of car is worth less    Increase deductible to save on the premium

Episode 42
Today, regardless of where you live, there’s a good chance you need a vehicle to get to where you’re going.  Therefore, auto insurance is something that you need to understand, because the cost can be significant, especially in the long term. On this episode we break down auto insurance so you are better prepared next time your policy needs renewing.

     

 
 
      Episode 41  Managing our money to ensure financial well-being and a secure retirement is important to all of us.  On today’s episode we’re talking with Darryl Lyons.  He’s an author, a personal finance expert, and an ambitious entrepreneur.  Darryl’s San Antonio, Texas company  PAX Financial Group  is an Inc 5000 “Fastest Growing Company” and a “Best Place to Work.” His work and his passion have allowed Darryl to give back to his community.  Darryl’s latest mission is to help redefine retirement where we no longer think of retiring but rather  pivoting  into the next chapter of life with purpose.  Show Notes  On this episode you will learn:    The 3 stages of our financial life.     Prepare  age 18 - 60     Pivot  age 60 - 65     Purpose  age 65 and beyond      Why purpose is so important to contentment and happiness.    How our emotions impact our spending and ultimately our ability to reach our financial and life goals.    We’re all in this together - your situation may be different but there’s a lot of similarity in your journey in relation to everyone else’s.    Having financial constraints can be a wonderful opportunity for creativity and growth.    Why generosity is so important to your financial well-being and to your overall health.      Books by Darryl Lyons    18 to 80: A Simple and Practical Guide to Money and Retirement for All Ages    The Grand Money Chasm: Ten Effective Strategies to Build a Money Legacy Within Your Grandchildren    Small Business Big Pressure: A Faith-Based Approach to Guide the Ambitious Entrepreneur

Episode 41
Managing our money to ensure financial well-being and a secure retirement is important to all of us.  On today’s episode we’re talking with Darryl Lyons. He’s an author, a personal finance expert, and an ambitious entrepreneur.  Darryl’s San Antonio, Texas company PAX Financial Group is an Inc 5000 “Fastest Growing Company” and a “Best Place to Work.” His work and his passion have allowed Darryl to give back to his community.  Darryl’s latest mission is to help redefine retirement where we no longer think of retiring but rather pivot into the next chapter of life with purpose.

     

 
 
      Episode 40  We’ve probably all had a coach at some point in our life, one that made us work harder, get stronger, or faster.  And although we may not have enjoyed the drills and the hard work he or she pushed us to do, we were grateful for their help because it was a benefit to us.  In the same sense, a financial coach can be a tremendous benefit to you and your financial well-being.     SHOW NOTES:        Three types of Financial Professionals    1. Financial Coach or Counselor  - A financial coach or counselor typically focuses on fundamental financial issues or habits. "A financial coach works with a client to change behaviors around money," They do not sell products and cannot specifically advise you on investments.   2. Financial Advisor  - provide services that are purely transactional or product-focused.  They manage your investments for a fee plus typically commissions on product sales.    All financial advisors are not the same.  Some only focus on investments that they are familiar with or those that are associated with their firms.  Therefore, they have a limited number of options they will recommend, which may be good or not.    Today, anyone can purchase any investments they choose from brokerage firms such as Vanguard, Fidelity, TD Ameritrade, without a financial broker or advisor.    Unless the advisor offers a lot of education with his services, it’s probably not worth hiring him/her.     3. Financial Planners  - a financial planner generally analyzes a client's entire financial life across cash and debt management, insurance, investments, tax, and estate planning.  They help you navigate through the life changes that have a significant impact on your finances (marriage, divorce, children, education, retirement, and investing.)  They generally charge fees based on a percentage of assets under management or a fixed fee and in some cases, could receive commissions from product sales as well.    There are at least 100 financial designations and many are just empty titles that don’t mean much.  The credentials you want to look for when searching for a financial planner are:    CFP (certified financial planner.)    PFS (personal financial specialist.)    CFA (chartered financial analyst.)        If you’ve been living on a budget, which includes tracking every expense, and have created margin - an amount above what you need to live on and meet short and mid-term needs, you may benefit from a financial advisor or planner.    They could help you choose the right investments to reach your financial goals and structure your finances in a way that will provide you with the most benefit long term.    If you don’t have a budget and you have no margin or surplus beyond what you need to live on, you could benefit from a financial coach or counselor.     Reasons to hire a financial coach    You’re ready to stop talking about it and get a plan in place.    You don’t know where to start and would like a step-by-step blueprint so that you can reach your desired financial goals.    You want to stop worrying about money, have enough to live on and make sure you can retire someday.    You want the support and insights necessary to overcome the inevitable roadblocks that stop you from making progress    You want the accountability to maintain focus on your financial goals so that all the distractions in life, fighting for your attention, no longer derail your plans to achieve      financial well-being.       What a financial coach can do for you    Teach you how to manage your money through a proven system.    Provides feedback on progress so you can improve, make changes, and reach your goals.    Makes the journey to achieving your goal faster - less trial and error of doing it yourself.    Motivate you to achieve your full potential.    Help you process through difficult decisions in different seasons of life.     The biggest benefits a coach can provide is accountability and expertise.  Financial mistakes can set us back, sometimes for years.  The accountability a financial coach provides can help you avoid these big mistakes by keeping you focused on your goals.     RESOURCES    Request free 20-minute coaching consultation       

Episode 40
We’ve probably all had a coach at some point in our life, one that made us work harder, get stronger, or faster.  And although we may not have enjoyed the drills and the hard work he or she pushed us to do, we were grateful for their help because it was a benefit to us.  In the same sense, a financial coach can be a tremendous benefit to you and your financial well-being.

     

 
 
      Episode 39  Having a correct view of money and how you’re to use it is important. We’ve all heard the saying, “Money changes people.” That change can be good or bad, and the difference is directly tied to whether that person has the right view of money. On this episode we’re going to help you gain a better perspective on money and show you how it is directly tied to your purpose, the thing that you are meant to do.      SHOW NOTES:       TRUE FULFILLMENT AND HAPPINESS    Book: The One Thing by Gary Keller and Jay Papasan   “Happiness happens on the way to fulfillment. Dr. Martin Seligman, past president of the American Psychological Association, believes there are five factors that contribute to our happiness: positive emotion and pleasure, achievement, relationships, engagement, and meaning. Of these, he believes engagement and meaning are the most important. Becoming more engaged in what you do by finding ways to make your life more meaningful is the surest way to find lasting happiness. When our daily actions fulfill a bigger purpose, the most powerful and enduring happiness can occur.     FIVE FACTORS THAT CONTRIBUTE TO OUR HAPPINESS:    Positive Emotion & Pleasure    Achievement    Relationships    Engagement    Meaning       GAINING THE RIGHT PERSPECTIVE ON MONEY        1. Realizing what money is and what its purpose is.     We have to realize there are outside influences that shape our view    Advertising, culture, materialism.      “More is better mentality.”    Wealth is increasing exponentially, but what are we doing with it?            2. Setting a proper lifestyle     Defining needs, wants, desires.    Our budget tool gives great guidelines for you to enjoy life at your income    Creating a plan that is based on your needs.    Money can only make you happy to a certain degree, optimum happiness from a baseline of income, but there is a baseline that when you go beyond it more money doesn’t really make you happy.      What are your core values?    Values that cause me to set a lifestyle cap:    Value time together, deeper relationship, intimacy in marriage.  I would rather live in a less expensive home so that I can come home at 5pm, so I can go on a date with my wife.    Value safety.    Value Comfort.    Understand that I can’t do “all of it” - so I choose to limit some things to focus on the things that matter to me.           What’s pushing against your core values?    Friends    Culture    Work Life            3. Living a Generous Lifestyle     I’m going to use my surplus to fulfill my purpose and improve the effectiveness of my purpose on this earth.    When you have a surplus beyond your basic lifestyle, then you can begin to be generous with others.    Generosity is adding value to someone's life    My business can add value to others    My unique gifts and talents can add value    My time can give value              4. Dangers that money and wealth presents     Becoming the focus - takes the focus off of your real purpose and passion    Not deciding how much is enough (lifestyle cap) - competes with your real passion and will eventually win out.    Financial bondage    Searching for meaning and fulfillment through materialism - feeds on itself (increases) because it can only provide temporary happiness and then you need another dose.        Unless you know what your purpose is in life, then you’re just making money to live, but never really live a fulfilled life.       RESOURCES    BUDGET FORMS    DEBT PAYOFF PLAN

Episode 39
Having a correct view of money and how you’re to use it is important. We’ve all heard the saying, “Money changes people.” That change can be good or bad, and the difference is directly tied to whether that person has the right view of money. On this episode we’re going to help you gain a better perspective on money and show you how it is directly tied to your purpose, the thing that you are meant to do.

     

 
 
      Episode 38  Having a correct view of money and how you’re to use it is important. We’ve all heard the saying, “Money changes people.” That change can be good or bad, and the difference is directly tied to whether that person has the right view of money. On this episode we’re going to help you gain a better perspective on money and show you how it is directly tied to your purpose, the thing that you are meant to do.      SHOW NOTES:       TRUE FULFILLMENT AND HAPPINESS    Book: The One Thing by Gary Keller and Jay Papasan   “Happiness happens on the way to fulfillment. Dr. Martin Seligman, past president of the American Psychological Association, believes there are five factors that contribute to our happiness: positive emotion and pleasure, achievement, relationships, engagement, and meaning. Of these, he believes engagement and meaning are the most important. Becoming more engaged in what you do by finding ways to make your life more meaningful is the surest way to find lasting happiness. When our daily actions fulfill a bigger purpose, the most powerful and enduring happiness can occur.     FIVE FACTORS THAT CONTRIBUTE TO OUR HAPPINESS:    Positive Emotion & Pleasure    Achievement    Relationships    Engagement    Meaning       GAINING THE RIGHT PERSPECTIVE ON MONEY        1. Realizing what money is and what its purpose is.     We have to realize there are outside influences that shape our view    Advertising, culture, materialism.      “More is better mentality.”    Wealth is increasing exponentially, but what are we doing with it?            2. Setting a proper lifestyle     Defining needs, wants, desires.    Our budget tool gives great guidelines for you to enjoy life at your income    Creating a plan that is based on your needs.    Money can only make you happy to a certain degree, optimum happiness from a baseline of income, but there is a baseline that when you go beyond it more money doesn’t really make you happy.      What are your core values?    Values that cause me to set a lifestyle cap:    Value time together, deeper relationship, intimacy in marriage.  I would rather live in a less expensive home so that I can come home at 5pm, so I can go on a date with my wife.    Value safety.    Value Comfort.    Understand that I can’t do “all of it” - so I choose to limit some things to focus on the things that matter to me.            Resources    Budget Forms    Debt Payoff Plan    

Episode 38
Having a correct view of money and how you’re to use it is important. We’ve all heard the saying, “Money changes people.” That change can be good or bad, and the difference is directly tied to whether that person has the right view of money. On this episode we’re going to help you gain a better perspective on money and show you how it is directly tied to your purpose, the thing that you are meant to do.

     

 
 
      EPISODE 37  Credit card companies use psychology to incentivize our use of credit cards. Understanding the psychology involved in the purchases you make every day, especially when credit card use is involved, and having a financial plan to manage your expense, will equip you to make better financial decisions that will keep you in control of your money.      SHOW NOTES:       Use a Budget to Avoid Credit Card Debt  You must get away from looking at the cash in your account as your base line. You have to get to the place where you live on the budget.  Each budget category balance grows  month by month to cover future expenses in clothing, electricity, car repairs, Christmas, birthdays, home maintenance, car replacement, car repair, etc.     You think you have an extra $300 at the end of the month, but really that money should be going into a saving account earmarked for future expenses that you know are coming.     New tires aren’t an emergency, vacation isn’t an emergency, pet grooming or vaccines aren’t an emergency, all of these things should be planned for in a savings tracker.     Have a savings account where money is accumulated each month for a variety of categories.  Tracks those categories in an online tool or use an excel sheet to see how much money is in each category. All the money is in one savings account, but the actual savings is being tracked across several categories.     Example  I may have $3,000 in my savings account, but…    $500 is for house repairs.    $500 is for Christmas.     $1,000 is for future car replacement.    $1,000 is for vacation later in the year.    $200 is for upcoming pet expenses.     $400 is medical savings.    $400 is savings for my next phone.       Medical Debt     Medical debt almost always seems to be a part of credit card debt. Never put medical debt on a credit card. Never use a 401(k) loan to pay off medical debt, or use any line of secured debt to cover unsecured debt.    Hospitals don’t have a lot of leverage….almost no ability to collect from you.    Credit cards have some leverage, but it’s a lot of work for them, so they wait a long time to use it.    Your mortgage company has big leverage against you.    Medical charges are ALMOST ALWAYS negotiable    Cost of medical care is inflated to make up for those who cannot pay.    Whatever the charge is, it can usually be lowered.    You won’t get a discount if you don’t call. (Example: Ambulance charge for Leo’s daughter $575).    People with lower incomes qualify for reduced or free care.      You can offer payment for medical bills of $20 a month, or $10 a month, or even $5 a month.    Don’t be afraid to get aggressive with the medical facility or talk to your doctor about a cheaper treatment option. Especially for ongoing care that include expensive tests and procedures - Shots, MRI, Scans, every 6 months, etc.       Resources   Budget Forms   Debt Payoff Plan    

EPISODE 37
Credit card companies use psychology to incentivize our use of credit cards.  Understanding the psychology involved in the purchases you make every day, especially when credit card use is involved, and having a financial plan to manage your expense, will equip you to make better financial decisions that will keep you in control of your money.

     

 
 
      EPISODE 36  Learn the psychology behind credit card use and how reward programs and other tactics used by credit card companies incentivize our use of credit cards.  We believe understanding the psychology involved in the purchases you make every day, especially when credit card use is involved, will equip you to make better financial decisions that will keep you in control of your money.      SHOW NOTES:      Rewards & Points program.    People get sucked in thinking, “I’m making money” off of this.    You can be that person, who never pays interest and gets points, but even then, you are likely to fall in the trap of spending more just by swiping vs using cash.      Credit card - 12-18% more.    Debit card - 10-12% more.    Cash triggers pain points in the brain that cause you to remember your transaction longer, feel the pain of the purchase, and cause you to look for cheaper options so you can spend less.    Studies by:    Dun & Bradstreet    MIT    Journal of Consumer Research    Carnegie Mellon University    We are unconsciously willing to spend more.    The more cards you own, the large purchases you’re willing to make.    You’re more likely to make quicker purchases online, with less research.    Typically pay 50% - 100% more for non-physical items.    Just seeing credit card logos causes us to spend more than we otherwise would.           Most people will end up paying interest at some point in their life and unfortunately credit card companies count on a person getting stuck in the cycle of not being able to pay off the debt and having high interest your whole life, or for a long season of life.    Average rewards are between 1-3%    Average credit card interest rate is 15-29%    10X higher interest rate than the rewards rate.    Miss one payment or overspend one time and all of a sudden the costs can far exceed the rewards.    If you’re carrying a balance month to month, then you’re always losing out.      Add the cost of the annual fee, which can be from $100 to $450 annually, and you can see how little reward there is to reward programs.       People have gotten to the place where they swipe for everything in their life...gas, groceries, eating out, car payments, insurance payments, home repair, doctors.    47% of credit card holders carry a balance over month to month occasionally.    32% say they make only minimum payments some months.    Majority of people don’t actually utilize their rewards points on time, because they lose track of them and don’t manage them.    Having a budget gives you clarity on how much you actually have, which helps limit and control your spending.       You have to get away from looking at the cash in your account as your base line.  You have to get to the place where you live on the budget, and the account balance grows every month to cover future months expenses in clothing, electricity, car repairs, Christmas gifts, birthdays, home maintenance, car replacement, car repair, etc.    You might think you have an extra $300 at the end of the month, but really that money should be going into a saving account earmarked for future expenses that you know are coming.    New tires isn’t an emergency, vacation isn’t an emergency, pet grooming or vaccines aren’t an emergency, all of these things should be planned for in a savings tracker.    You should have a savings account where money is accumulated each month for a variety of categories.    Tracks those categories in an online tool, spreadsheet, or software.    Use an excel sheet to see how much money is in each category.    All the money is in one savings account, but the actual savings is being tracked across several categories.       I may have $4,000 in my savings account, but it's a total of multiple categories.    $500 is for house repairs.    $500 is for Christmas.    $1,000 is for future car replacement.    $1,000 is for vacation later in the year.    $200 is for upcoming pet expenses.    $400 is medical savings.    $400 is savings for my next phone.    So if I decide I want to buy a $3,000 TV with that savings account money, then I’ll go into debt at Christmas, or when the dog needs shots, or when I need a new phone.    Resources   Debt Payoff Plan   Create Your Budget   The Yearly Budget

EPISODE 36
Learn the psychology behind credit card use and how reward programs and other tactics used by credit card companies incentivize our use of credit cards.  We believe understanding the psychology involved in the purchases you make every day, especially when credit card use is involved, will equip you to make better financial decisions that will keep you in control of your money.

     

 
 
      EPISODE 35  In this episode we’re talking about some very specific types of debt that can severely damage your finances.  You’ve probably heard of payday loans or title loans, rent-to-own, or similar types of loans.  Well,... we’re going to dissect these type of loans and share how they work so that you can be better informed and hopefully avoid them and the danger they pose to your financial well-being.   SHOW NOTES:   Payday loans  A payday loan is essentially an advance against your next paycheck. You give the payday lender your pay stub as proof of income and tell them how much you want to borrow. They give you a loan for that amount, which you're expected to repay when you receive your paycheck.   Advertised for people with:  Bad credit.  Quick need for cash.  People in a pinch.    Typically pay 15% - 30% of what you borrow using your next paycheck.  If you borrow $100, then you write them a check for $130 and hand it to them to take out of your next paycheck.    Which can equivalate to 100% - 700% annual rate of interest.  Here’s a quick example:  Borrow $1,000 on a 6-month loan.  300% interest rate.  Monthly payment = $338.82  Total cost = $2032.92    Most common complaints  Lender charged fees or interest that I didn’t expect.  “They are taking money from my bank account without permission.”  “I’m making payments, but it’s not lowering my account.”  “Extent the loan fee.   Example: $100 Loan = $15 charge for the loan.  Now imagine a $900 loan with a $135 loan extension fee, which is simply $15 per $100. The person keeps rolling over the loan by paying the $135 each month, the borrower thinks they are paying down the loan and will be done in 7 months by paying the $135, 7 times. However, they have simply extended the loan 7 times and still owe the entire $900 even though they’ve already paid over $900 to the lender in the 7 months.  If you roll the loan over 4 times, then you pay $60 in fees for the $100 loan, plus the interest that has accrued on the loan at about 450% APR.  $15 - loan extension fee if you don’t pay if off in 14-30 days depending on the type of loan.        Median online payday loan cost is $23.53 per $100, which is a 613% annual percentage rate. If the rate isn’t paid in full on the first payday, then the loan extension fees allow them to keep the loan, but as they pay the fees, they don’t actually pay down the debt, just simply keep it going.     Title loans   Requirements  You own the vehicle clear from liens.  Steady source of income.  Not in bankruptcy or coming out of bankruptcy.    Similar problems as payday loan & fast cash places, high interest keeps you stuck in the cycle.  Plus, if you don’t pay, then they take away your car, which may be your only means of transportation to work, so they threaten your ability to work if you don’t pay by taking your car away. This added fear causes people to agree to crazy payments and high fees for the opportunity to extend the loan, because they are trapped by the debt.     Rent to own  New OLED TV   Buy it Now Price: $999.99  Rent-to-Own Price: $1,759  Interest Rate: 60%  Lowest Price Found for Same Product (new): $499.00   New Full Refrigerator   Buy it Now Price: $1,299.99  Rent-to-Own Price: $1,999.76  Interest Rate: 60%  Lowest Price Found for Same Product (new): $699.00   Newest PlayStation System   Buy it Now Price: $299.99  Rent-to-Own Price: $839.88  Interest Rate: 33%  Lowest Price Found for Same Product (new): $249.00   Rent-to-Own a Home   The Basics    Renting to own a home is somewhat similar to a car lease.  Seller gives his tenant the right to buy the house at some point in the future, usually one to three years out, for a price that is agreed upon today.  Tenant will pay a fee, called option money, that will keep open the option of buying.  A 20% premium above the typical rent for the house is paid by tenant, with a portion credited to the tenant for an eventual down payment.    Things to know and be aware of    If tenant decides not to purchase the house at the end of the rental term, none of the extra money that he paid to the seller comes back to him.  Tenant pays above market value for a rental, which is lost in the end.  Unlike in traditional rental scenarios, the tenant is often responsible for repairs and maintenance during the lease term, and any money or sweat equity you put into the rent-to-own property will not be reimbursed.  Scammers will target people that they know won’t be able to qualify for a loan, and they will charge the premium on the rent, knowing that they will not have to sell the house to the person at the end because they can’t afford to buy the whole home in the contract period.  Scammers may also try to lock you in to require you to buy the house at the end, or else you pay a major fee to get out from the contract. They knew you wouldn’t be able to buy it, but they put in the contract another large fee if you fail to fulfill the contract.     Resources   Debt Payoff Plan   Create Your Budget   T  he Yearly Budget

EPISODE 35
In this episode we’re talking about some very specific types of debt that can severely damage your finances.  You’ve probably heard of payday loans, title loans, rent-to-own, or similar types of loans.  Well,... we’re going to dissect these type of loans and share how they work so that you can be better informed and hopefully avoid them and the danger they pose to your financial well-being.

     

 
 
      EPISODE 34  In this episode of Getting Money Right we’re talking about what happens when you can’t make your minimum payments, when you start to get so upside down on your debts that you're using food money to pay credit card bills, and you realize you’re stuck in a cycle you can’t break out of. We’ll share some strategies and tools you can use to gain control of your debt.  SHOW NOTES:   How do you know when you’re in financial bondage?   •    Your feeling financial stress - juggling bills that are due with the timing of your paycheck. •    You’re making credit card payments, often more than the minimum, but the balance is still growing. •    You’re so far upside down on your debt that you can’t even make the minimum payments. •    You don’t have the ability to pay your debts but you keep making the payments by using your income to make the payments and the credit cards to pay for things like food and gas. •    The balances grow until their maxed out and you can’t make the minimum payments and also provide for your basic needs.  How can you get out of financial bondage?   1.    Recognize you’re in bondage.    Understand what you can and cannot do.    It’s not a matter of what you want to do, no one wants to be in the position of not being able to pay their monthly payments, but you have to recognize and accept it when you are in this position.     2.    Stop the financial bleeding.    You can’t just ignore it, slap a band-aid on it and hope it gets better.    You actually have to stop everything and finally deal with it.    Most people in debt act too late. They continue making payments even though they don’t have the income to do so.    They make it worse by not recognizing the situation, admitting it’s a mess, and taking action to stop it.    3.    Spend according to a financial plan (budget).    Provide for needs first.    Save for a rainy day - it will come.    Then tackle your debts.    4.    Prevent future indebtedness    Use a budget to direct all spending decisions.    Stop using credit cards.    Use cash for hard to control areas (food, recreation, gifts, etc.)    Only borrow for appreciating items and when the payment fits into your budget without leaving another category unfunded or underfunded.    Dealing with existing debt     Do the work necessary to deal with your debt.  Don’t pass your problem on to someone else. Bankruptcy is not the answer - there is no easy, fresh start.     Know how much you can pay toward your debt.      Create a budget t hat clearly defines your needs and shows what you can actually put toward your debt. Priority should be:    Needs first (mortgage, car payment, etc.)    Saving second (prevents taking on future debt)    Debt repayment last.       Negotiate with your creditors  for a reduction in interest rate or forgiveness of balance or late fees.     When you can’t pay all the minimum payments.     Use the pro-rated debt system.    Debt snowball tool (second worksheet tab) - each debt gets a percentage of the total amount you can put toward debts.    Contact your creditors and let them know your situation.    Provide them with a letter and a one-page budget to show your current situation.        Steps to take:    Download debt payoff plan    List all your debts smallest balance to largest balance    Use pro-rata plan to set up a payment plan based on how much you can set aside each month for debts, which you can only determine if you have a good working budget.    Create a budget using the Create Your Budget spreadsheet.    Capture your income and all your expenses for 30 days in order to create a working budget.    Lower your lifestyle expenses as much as possible and increase income as much as possible to maximize margin.         Resources   Debt Payoff Plan   Creating Your Budget   The Yearly Budget

EPISODE 34
In this episode of Getting Money Right we’re talking about what happens when you can’t make your minimum payments, when you start to get so upside down on your debts that you're using food money to pay credit card bills, and you realize you’re stuck in a cycle you can’t break out of. We’ll share some strategies and tools you can use to gain control of your debt.

     

 
 
      Episode 33  Money is a difficult topic for most couples, especially early in their relationship.  We’re continuing our conversation with Russell Baxter, a professional counselor (LPC LCDC-I) who works with couples to help them with how money impacts their relationship. Russell runs a counseling practice in Grapevine, Texas. He teaches clinical continuing education classes as well as classes on finances and marriage and is currently writing a book on the topic.  SHOW NOTES:  MONEY AND MARRIAGE - AN INTERVIEW WITH RUSSELL BAXTER LPC LCDC-I   Sharing Your Heart, Sharing Your Treasure -  book by Russell Baxter (coming soon)      
   
     “ “Where your treasure is, your Heart will be also.” ” 
   
   — Matthew 6:21 
       When you talk and agree on finances with your spouse you improve your   intimacy and share your heart.   COMMON SITUATIONS IN MARRIAGES TODAY   CPA Home  Joint Venture Home  Wild West Home  A Team Home    Money is complicated because it’s influenced by our emotions.         Wounding   Impulsivity = Insecurity, Uncertainty, Fear, No Trust  No Communication = Decrease in self-esteem, Trust, and More Resentment  No Plan = Chaos, Anxiety, Feeling Trapped/Stuck   Healing   Having a Plan = Comfortable spending, Decrease in Anxiety  Accountability = More Impulse Control and Trust  Planning for the Future = Foster Safety and Security in Relationship  Communicate about Desires = More Vulnerability      How a couple can get started managing money together as a team   Just Talk About It…    Talking about our money is vital and a skill.  It Takes Practice!      We must Create a  Foundation for Conversations :    
  
  
   
   
   
   
   
   
   
   
   
   
   
   
  
  
  
  
  
       

  

  	
       
      
         
          
             
                  
             
          

          

         
      
       
    

  


         Action – Follow through/ Accountability  Budget – Execution / Limits  Plans – How / Time Frame  Goals – Dreams / Direction  Principles / Priorities – What’s important to us? Boundaries for our Family   When we are having a problem with an upper layer refer to the level below. Our foundation is not dependent on our feelings and impulses; it is based on our principles and our priorities. This process is messy and takes time, especially if you are coming from the Wild West.   Constructive Arguments    Keep the Main Thing the Main Thing  Own your part/Take Responsibility  Watch Your Pronouns  Mine, Yours  Ours  “That’s your problem/debt”  “You can borrow my money”      Working Like A Team    What do you want?  How can you have what you want within our Foundations?  What can I do to help?      A Healthy Team is:    Isn’t looking at how other teams play  Cares more about the team then the individual  Doesn’t beat up a player who makes a mistake (Shaming)  Meets frequently  Reviews errors and changes the plan  Keeps their eye on the prize       RESOURCES    Combining Finances for Couples - Episode 18   Managing Money Well for a Lifetime - Episode 29   More information about Russell Baxter

Episode 33
Money is a difficult topic for most couples, especially early in their relationship.  We’re continuing our conversation with Russell Baxter, a professional counselor (LPC LCDC-I) who works with couples to help them with how money impacts their relationship. Russell runs a counseling practice in Grapevine, Texas. He teaches clinical continuing education classes as well as classes on finances and marriage and is currently writing a book on the topic.

     

 
 
        Episode 32  Money is a difficult topic for most couples, especially early in their relationship.  We’re talking with Russell Baxter, a professional counselor (LPC LCDC-I) who works with couples to help them with how money impacts their relationship.  Russell runs a counseling practice in Grapevine, Texas.  He teaches clinical continuing education classes as well as classes on finances and marriage and is currently writing a book on the topic.  SHOW NOTES:  Money and Marriage - An interview with Russell Baxter LPC LCDC-I   Sharing Your Heart, Sharing Your Treasure -  book by Russell Baxter (coming soon)          
   
     “ Where your treasure is, your Heart will be also. ” 
   
   — Matthew 6:21 
       When you talk and agree on finances with your spouse you improve your    intimacy and share your heart.       Heart is:   Thoughts                     Passions Desires                        Dreams Intentions                    Interests Attitude                        Character     These are the things that we are trying to get our clients to share with each other.     Money Fights/Money Problems shows up in every major study as one of the most common reasons for divorce.     Common situations in marriages today      1. CPA Home    One partner manages all of the finances  Other partner knows little to nothing about finances  Very common in single income homes  One partner makes most decisions and even sometimes gives the other an  “Allowance” or lets them know that they can spend  “Don’t tell me, I don’t want to know.”  “You handle it.”    2. Joint Venture Home    Tend to not talk about a plan  Very common in remarried couples  Both partners manage their own accounts  Checking  Debit  Debt  Retirement    3. Wild West Home    No plan / budget  Spend as long as we have money  Talk about desires but lack a plan or accountability  Not stewarding well    4. A Team Home    Two people working together  Communications  Talking about what we want and a way to get it      Money is complicated because it represents:  Safety              Fulfillment                  Purpose                      Shame Security           Anxiety                       Self-Esteem                Guilt Future             Possibilities                Healing                        Inadequacy      Whether spoken or assumed we each associate with money in an emotional way.      Two main reasons money problem stick around:    Assumptions  Implications      How can managing money help heal or wound your spouse?   Wounding   Impulsivity = Insecurity, Uncertainty, Fear, No Trust No Communication = Decrease in self-esteem, Trust, and More Resentment No Plan = Chaos, Anxiety, Feeling Trapped/Stuck   Healing   Having a Plan = Comfortable spending, Decrease in Anxiety Accountability = More Impulse Control and Trust Planning for the Future = Foster Safety and Security in Relationship Communicate about Desires = More Vulnerability    Resources   Combining Finances for Couples - Episode 18   Managing Money Well for a Lifetime - Episode 29   More information about Russell Baxter

Episode 32
Money is a difficult topic for most couples, especially early in their relationship.  We’re talking with Russell Baxter, a professional counselor (LPC LCDC-I) who works with couples to help them with how money impacts their relationship.  Russell runs a counseling practice in Grapevine, Texas.  He teaches clinical continuing education classes as well as classes on finances and marriage and is currently writing a book on the topic.

     

 
 
      Episode 31  This is episode 2 of starting and operating a small business with Jordan Kennedy, the owner of a small photography, videography and media business.  Among other things, we’re discussing finance, marketing, sales and working with clients.  SHOW NOTES:  Managing the finances of the business    ·      Have Stewardship (Good Manager) Mindset      
   
     “ Be diligent to know the state of your flocks, and attend to your herds; For riches are not forever, nor does a crown endure to all generations. ” 
   
   — Proverb 
      Personal   Social Security  Personal Accounts  General Checking  Short-Term Savings  Emergency Savings  Giving Account  Debit / Credit   Business   EIN or S.S.  Business Accounts  Business Checking  Business Card  Retained Earning  Link to Paypal  Link to Intuit Quickbooks       Self Employment Taxes vs W2 Taxes  Business Structures:   Sole Proprietor  Partnership  LLC  C Corp  S Corp   Taxes   12.4% Social Security  2.9% Medicare  15% Federal  0%-13% State     1. Should I quit my job to start my dream business?   Don’t quit your day job just yet!    Starting a business can be financially draining.  Making a profit can take a while - 2 or more years is common.  Having a base income coming in will remove the stress of having to make a profit quickly.  Save a year's salary to live on while you build the business.  Spouse working can help cover some of the living expenses.  Working part-time or full-time while you build the business can provide the needed income.        2. Do I need a Support Network?  Being a business owner can be an isolating experience at times.  Especially if you’re a solo business owner.   Friends and family for personal support and encouragement.  Accountability partner - set goals and hold each other accountable.  Business coach - help you find solutions to problems and work through tough decisions.  Facebook and Linkedin.  Mastermind group (peer group).  Discuss problems and solutions  Hold each other accountable to goals  Support and encouragement when you want to quit.       3. How do you find clients?   Word of mouth (referrals) are generally the best.  Website.  Social media.  Marketing and advertising.      4. How do you find and work with clients?   Identify your ideal client.  Have a process for client acquisition.  Interview them as much as they are interviewing you.    Price your products or services correctly.  Offer a great deal of value.      What not to do when running a business  1. Don’t quit - keep trying   Running a business is like a marathon.    You will have ups and you will have downs, possibly in the same week or even in the same day.  You will gain clients and you will lose clients.  That’s just part of having a business.  I don’t know of any business that hasn’t experienced failure and disappointment, often many of them, before success came.    Instead of becoming discouraged, focus on becoming resilient, learning how to handle stress productively.  Don’t give up!  Keep trying!  Learn and grow from your failures.  Success will come eventually.  Don’t try to do everything yourself.  Don’t forget why you started.        2. Don’t stop evolving   Nothing you’re doing now is set in stone.  Your strategy, your marketing plan, your target market - it must change and evolve with time.  The world is changing more and more rapidly each day.  The best way to remain relevant is to keep your eyes open for changes that will impact your business and your mind open to new ideas.  You must stay flexible.

Episode 31
This is episode 2 of starting and operating a small business with Jordan Kennedy, the owner of a small photography, videography and media business.  Among other things, we’re discussing finance, marketing, sales and working with clients.

     

 
 
      Episode 30  In this episode, we’re talking about starting and operating a small business with Jordan Kennedy, the owner of a small photography, videography and media business.  Among other things, we’re discussing finance, marketing, sales and working with clients.  Show notes:  How to get started in a small business     1.     Find your niche  ·       Do what you’re naturally good at.  Don’t start something because it has the potential to make a lot of money.  You may end up successful but miserable.  Do what you like and what you’re passionate about.  ·       When researching your niche competition is a good thing - sign that the service or product you plan on providing is in need.  ·       Focus on one thing until successful. Trying to do too much too soon will only lead to a lot of work that will not produce a return.     2.     Be very specific with your goals  ·       Quarterly goals, 1-year, 3-year, 5-year goals.  ·       When it comes to revenues, break them down to into smaller numbers so they’re easier to obtain.  o   If you need to make $25K in a quarter, what does that mean in terms of sales?    o   How many items do you need to sell each week or each month?  o   How many speaking engagements do you need to book?  o   How many workshops do you need to teach and how many students do you need in each?        “You can’t manage what you don’t measure”  Your success relies on defining measurable goals, regularly documenting and assessing your progress and reviewing your results.     Add professionalism to your business  ·       Be as legitimate as possible  ·       Have clear and concise communication  ·       Have well-thought out, written contracts and other documents (stay away from the “handshake”)  ·       Don't be afraid to say "no!"  ·       Be organized   ·       Wave Apps      Branding  ·       Style Guide - Color Palette, Fonts, Look & Feel (pictures)  ·       Target customer?  ·       What’s the promise you make to the consumer. Brand is a promise.  ·       Consistent on website, social media, emails, ppt presentations, any marketing and products.     Delegate whenever possible  ·       Do the things that only you can do.  This will grow and make your business profitable.  ·       Delegate the administrative stuff or anything else you’re not good at.     ·       Hiring people may cost you money but if they’re the right people they will do a better job and they will do it faster than you.  This will free you up to do more of what will directly benefit the bottom line.          Passive/Freelance Income:  ·       If you're a creative, a great way to make passive income is through social media and stock photo/video.  ·       YouTube can be a great way to make passive income when utilizing ad-sense and monetizing videos.        Renting vs. Buying Equipment:   Purchase your "core" equipment and then rent "specialized" equipment. This could apply to tools, production gear, etc.  Sometimes you just have to do the math. If you have 5 prospective jobs in a single year and the equipment you need could be paid off with the same amount as it would cost to rent, then go for it!  Know the value of and longevity of what you're purchasing.    Ex. What will the item re-sale for it 5 years? Is this technology going to be obsolete in the near future?

Episode 30
In this episode, we’re talking about starting and operating a small business with Jordan Kennedy, the owner of a small photography, videography and media business.  We’re discussing finance, marketing, sales and working with clients.