EPISODE 7  In this episode, we break down the main budget categories, Food and Transportation, and identify what expenses you should include in these two areas of your budget.  We'll also share simple yet powerful tips on how to save money and manage each of these expenses so you can budget more successfully.     SHow Notes:     Main Category - Food - Average of 10-13% of Net Income   Two Subcategories    Groceries - foods you prepare.  Eating Out - restaurants or take out.    Groceries    High variation in cost - organic or specialty foods.  Cost per person per month - $200 to 225 per person.  Shop with a list (meal planning).  Keep a mental tally or add up cost on a phone calculator.  Don’t shop when  hungry  or  in a hurry  (kids in tow).  Cost vs value - get generic when possible.    Eating Out    Set a reasonable amount.  Take out or fast food for 2 - $15-25.  Sit down basic - $30-$35.  Sit down fancy - $50-$100.  Use cash.  Share an appetizer and split a meal.  Use promotions or coupons.    Main Category - Transportation - Average of 10-13% of Net Income   Tags & Inspection    $100-$120 per vehicle in Texas - check your own state required inspection and license/tags/taxes renewal fees.  Total cost for all vehicles /12    Maintenance & Repair Cost    Varies depending on make and model of vehicle.  Use a reputable mechanic vs dealer to save on maintenance and repairs.  $150 or more per month is a good starting budget - depends on condition.    Maintenance    Oil change every 3-5K miles.  Air filter, fuel filter, cabin filter - every year.  Coolant flush and change every 1 to 2 years.  Transmission fluid change and service every year.  Tire replaced every 40-50K miles (3 to 4 years).  Battery replaced every 4 to 5 years.  Brakes - 2 to 4 years (varies depending on driving and vehicle type).    Repairs    A/C repair  Alternator/Starter  Timing belt    Car Payments   Difficult to fit into an average income budget.   Ex. $65,000 net income  Transportation (12%) $7,800/yr or $650/month.  Gas $120  Insurance $125  Maintenance & repairs $150  Tags $16  Total = $411 leaving  $239 available for a car payment.       Gas    Calculate your mpg on each car.  Calculate how much driving you do per month per car.  Ex. 1000 miles/mo, 20/mpg, 50 gallons @ $2.25/gallon = $112.50/mo (do this for all ca rs).      Insurance    Get adequate insurance from a reputable insurance company.  Newer or financed cars require full coverage (avg. $70/mo.).  Older vehicles - liability insurance (good drivers).  Consider having a higher deductible (make sure you have an emergency fund).  Carefully shop for add on’s like towing, gap insurance, vanishing deductible, which are not free!   Resources  You can access these and other resources on my  Resource  page.   Budget Forms and Tutorials   Spending Guidelines   Debt Payoff Plan

EPISODE 7
In this episode, we break down the main budget categories, Food and Transportation, and identify what expenses you should include in these two areas of your budget.  We'll also share simple yet powerful tips on how to save money and manage each of these expenses so you can budget more successfully.

     

 
 
      EPISODE 6  A budget doesn't have to be complicated. In this episode, we break down the main budget category, Housing, and all other expenses associated with it. We'll also share some tips on how to save money and manage each of these expenses so you can budget more successfully.  ShowNotes:    Housing - Average of 30% of Net Income   Renting   Pro’s   Fixed payment.  Rent could be increase, but only yearly and no more than $25-$50.  Have the opportunity to move to keep payments lower.  Lower energy costs (smaller size = less heating and cooling).  No maintenance cost.    Con’s   Not yours - no equity.  Smaller size - challenging for larger family size.  Can’t personalize it by painting and remodeling (making it your own).  Small or no back yard.   Other things to consider   Renter's Insurance.  Best to rent and save than to own and not be able to save.    Own - Buy a Home   Pro’s   Equity growth.  Yours - personalize as you want.  Larger size - more room.  You own backyard (pool, swing set, play area).   Con’s   More expensive (P&I, Insurance and Taxes)  $250K home with 20% down = $1,600/mo. (P&I $950, Ins. $150, tax $500).  $250K home w/o 20 % down = $1,925 (P&I $1075, Ins. $150, tax $500, PMI $200).    Higher utility costs - larger space, electricity, gas, water.  Internet, TV Service, Cable.  Overall, 196.3 million U.S. adults will have traditional pay TV.  Less expensive Alternatives  Antenna - free HD channels.  Amazon Prime.  Hulu.  Netflix.    Maintenance & Repairs= your property means it's your cost to maintain and repair.  HVAC Systems.  Appliances - hot water heater, refrigerator, dish washer, etc.  Landscaping.    Updating and Replacing.  Replace (hot water heater, fence, roof, etc.).  Buying New Decorations.  Remodeling (kitchen cabinets, painting, bathrooms, hard wood floors, etc.).     Resources    Budget Spending Guidelines    Budgeting Tools        

EPISODE 6
A budget doesn't have to be complicated. In this episode, we break down the main budget category, Housing, and all other expenses associated with it. We'll also share some tips on how to save money and manage each of these expenses so you can budget more successfully.

     

 
 
               Episode 5  Too many Americans are struggling with having excessive debt.  For many, debt is the only way they can get through a financial emergency.  Unfortunately, this only adds to an already difficult financial situation.  Understanding debt and borrowing will help you make better borrowing decisions and eliminating unnecessary debt.   Debt: something, typically money, that is owed or due.   Two things you can do with debt   Pay it  Forgive it, if you’re the lender    The responsibility to repay is always on the borrower (attitude)   After borrowing some may feel like they got a bad deal - interest too high, late fees, over the limit fees.  Some use it as an excuse to not repay, pay late, or try to negotiate a lower payoff.  Understand the risk and try to avoid using credit in the future when you're unsure if you can pay it back.     Secured vs Unsecured Debt   Secured by an asset    House.  Car.  Furniture.  Pet.    Unsecured Debt    Credit Cards.  Medical Bills.  Utility Bills.  Cell Phone Service, Cable, Internet Bills.  These typically have higher interest rates because the lender has less leverage.    Surety Principle    Always have a sure way to pay.  Asset stands for the value of the debt.  A savings account that has enough to cover the debt.  A detailed budget that has margin in it to cover payments.  Consider the potential of a job loss.  A 3-6 month emergency fund is super helpful.     Borrowing   Can be a benefit if used wisely.  Allows you to purchase something you may otherwise not be able to.  Home.  Start a business.  Limit risk by always putting a 20% or more down payment.    Only borrow for appreciating not depreciating assets    House  Rental Property     3 Way to Get Out of Debt   1. Debt consolidation    Lower interest rates.  One payment instead of many.  3 to 5-year max time to pay off debts.  Must fit into your budget - a financial interview is required.    2. Debt negotiation    Negotiate your balance down to 50% or less than originally borrowed.  The company gets between you and the creditors (cease and decease letter).  Can’t protect you from being sued by your creditors.  A creditor may seek a judgment to avoid the statute of limitation.  Able to go after the debt anytime in the future - freeze accounts and garnish wages.    3. Best and cheapest option - do it yourself!    Don’t give your problem to someone else to fix or you’re destined to repeat it.  Debt snowball repayment strategy.  Use form and how-to video @  leosabo.com/resources       Conclusion   Not all borrowing is bad.  Avoid borrowing for depreciating assets.  Use wisdom whenever borrowing.            

EPISODE 5
Too many Americans are struggling with having excessive debt.  For many, debt is the only way they can get through a financial emergency.  Unfortunately, this only adds to an already difficult financial situation.  Understanding debt and borrowing will help you make better borrowing decisions and eliminating unnecessary debt.

     

 
 
               EPISODE 4  There are different seasons in life and each has different financial challenges.  It's important that you know how to prepare for and navigate through each of these seasons.  We'll discuss each season and answer some of the common questions relevant to each.   Show Notes   Financial Seasons of Life     From single to married.  Having children.  Empty nesters - grandchildren.  Retirement.  Legacy building.      Common questions:   1. When should I focus on removing debt?    Always aggressively remove consumer debt.  Teach kids to avoid debt.  Find unique ways to remove debt quickly.  Don’t borrow for anything that isn’t appreciating in value.  Pay off student loans as soon as possible.     2. How much do I need to have saved at different times in my life?    Save $1000 then increase to 1 month of income ASAP.  3 to 6 months of a bare-bones budget.  6 to 12 months of a bare-bones budget for the self-employed and business owner.  15% to long-term saving - may need to do less when you have kids and one income.  More aggressive as you get older and kids move out - higher income potential is usually in 50's and 60's.      3. Retirement planning, when and how much to invest?    Starting early to take advantage of compounding.  15% through your working life will typically lead to millions (30-70).  Especially important if you get a match at work.  Use tax advantaged savings accounts - ROTH / Traditional IRA / 401(k).     4. How much should I set aside for my kids college expenses?    Should your kid go to college? Or is a trade school more suited?  Tuition - consider inflation (doubles every 9 years).  In state - lower cost.  Out of state - higher cost.  kids can contribute through scholarships and work.      5. When should I buy a house?    A house isn’t for everyone.  How long will you live there? Repairs, interest, selling costs…  If you hold for 5yrs or more, it will often be a benefit, but not always  Typically need to wait till after the 3-6 month emergency fund is set aside.  Consider the potential costs to home ownership.  HVAC repairs.  Fence repairs.  Appliance replacement.  Foundation.  Hail damage.       6. What About Insurance?    Without adequate insurance your financial plan is in jeopardy.  Health and disability will protect you in case of major medical or long-term disability.  Term life insurance - lower cost higher coverage.  10X your salary - provide for family needs or spouse retirement needs.       Summary   Your financial plan should include:    Savings to prepare you for future seasons.  Proper insurance for protection (life, health, disability).  Emergency Fund to protect your budget.  Cashflow planning - monthly budget to meet needs.         

EPISODE 4
There are different seasons in life and each has different financial challenges.  It's important that you know how to prepare for and navigate through each of these seasons.  We'll discuss each season and answer some of the common questions relevant to each.

     

 
 
               EPISODE 3  Finances play a crucial role in you life.  If you're going to live the kind of life you want, you need to create a financial plan to help you achieve it.  In this Part 2 we're going to discuss the specifics of creating a financial plan.    Show Notes     Where do you start?   The foundational plan for managing your money is called a budget.  A budget is the foundation of your financial house upon which you will build your financial life.   Objections to budgeting   People are opposed to budgeting for two main reasons   1. They believe it will limit their ability to live their lives and enjoy it. 2. Someone’s used a budget to control them.   A budget provides freedom.  Equips you to make good financial decisions that keep you out of bondage and help you reach your goals.   Budget as a Fence - Schoolyard Example   It’s the vehicle to help you stick to and accomplish your goals.  Tells you how much you can spend and where you spend.  Takes the emotions out of financial decisions.  Helps you to avoid buying on impulse.  Give you the freedom to spend guilt free.   3 Parts Of Your Plan   1. Monthly Budget    Zero based, meaning that every dollar you earn is assigned to a category  Having the written plan in place before the month begins and assigning all the money to various categories so that no money is left floating around….because money is currency… it rides the current and will flow away if you leave it floating around.  No matter how you get paid, we are encouraging you to make an annual plan that you manage monthly.    2. Main Categories     Housing  Food  Transportation  Debt  Savings  Childcare  Recreation  Personal  Miscellaneous  Giving    3. Sub-Categories -   Housing     Rent/Mortgage  Internet  Insurance  Yard  Maintenance  Electric  Water   Spending Guidelines for your categories    Developed a guideline based on successful people  It’s just a suggestion, but will help you start strong  100% of your money  60% rule (Housing, Food, Transportation     Yearly vs. Monthly Budget    We manage monthly because it’s easier, but we need to have an annual plan.  Gives us the view of non-monthly items.  Each month is connected to the next.  If you have extra money in a category at the end of the month, it rolls into the next month and grows.  Good month's cover for bad months    Visit    https://leosabo.com/resources  to gain access to the budgeting forms discussed in this episode.            

EPISODE 3
Finances play a crucial role in you life.  If you're going to live the kind of life you want, you need to create a financial plan to help you achieve it.  In this Part 2 we're going to discuss the specifics of creating a financial plan.

     

 
 
               EPISODE 2  Finances play a crucial role in you life.  If you're going to live the kind of life you want, you need to create a financial plan to help you achieve it.  Start by getting clear about where you want to go and then set some clear goals to get there.    SHOW NOTES    What does it mean to have a financial plan for your life?   You can’t go on a journey without a plan in place  Where am I now?  Where do I want to go?  What do I have with me?  What will I need?  How do I get there?      Ask Yourself: How do I need to manage my money, to live the life that I want to live?     Money is going to influence how you get to where you want to go.   Do you want more time with family?  Do you want to retire earlier?  Do you want to change career fields?  Do you want to be able to give your kids or grandkids a financial inheritance?  How much would you like to leave them?  How about philanthropy?  Do you want to be more generous toward worthy causes?  To be able to give when Hurricane Harvey comes through, or Irma, or you name it….church, friends, family….?  Do you want to finally be able to afford that dream vacation?  Whatever you want and however you want to live your life, it won’t happen by accident - you need a plan, and  finances has to be part of that plan!       How do you move toward the kind of live you really want to live?   Start with where are you right now…    Self-Awareness.  Are you living paycheck to paycheck?  Do you feel like you’re managing money or does it feel like it’s money managing you?  What is your earning potential now and in the future?  Does your career have long-term sustainability?  Setbacks can have a significant impact on your life and financial plans.      Things you need to know   How much debt do you have?  How much do you earn?  How much are you spending?  Do you really know or just think you know?  Without a written plan is impossible to know - without tracking expenses, you'll never stick to a plan and succeed.  7 out of 10 Americans do not have a financial plan - a budget.  Budget in a drawer untouched does you know good - must be active.     Start by asking and answering the questions that reveal where you are right now.     Next step   Creating a financial plan for your life      Determine Your Destination    When you travel somewhere the GPS can locate your current location - it’s up to you to enter the destination.  Where are you going? What is it that you want?  Do you want a certain lifestyle?  To live in a specific state, city, town, neighborhood?  Rent or own?  Do you have or do you need to save for a down payment on a house?  Retirement needs? $$$ Amount?  You have to know where you’re going and then…  You have to take action.     It all starts with setting some specific goals     Goal setting: The journey is never easy, so you must remind yourself constantly of the reward at the end of the journey, you have to have that reward strongly built in your mind….visually….aroma…..all five senses….what’s it really going to feel like being debt free or reaching that milestone.   A goal must be:    Written down.  Looked at, spoken, rewritten everyday so you can get it deep down inside of you.  You have to believe it so much that no one and no thing can persuade you to give it up.       Set a specific goal - then list 20 things you can do to reach your goal.    Focus on one or more things on the list you can do every day to move toward your goal.  Education  Extra sources of income - side hustle  Can you ask for a raise?  You can negotiate your credit card interest to a lower rate to help you pay off debt faster.  Pick one thing of the 20 things on your list every day  and do it to reach your goal.  A financial is a crucial part of the journey    Extra    Married couples/significant other  - Set goals together  You’re in the same boat - It’s better to row together in the wrong direction then to try to row separately, which will only make you go in circles and frustrate you both.  Setting Your Family Plan -  download .      SET SMART GOALS     S – Specific (or Significant).    M – Measurable (or Meaningful).    A – Attainable (or Action-Oriented).    R – Relevant (or Rewarding).    T – Time-bound (or Trackable).          

EPISODE 2
Finances play a crucial role in you life.  If you're going to live the kind of life you want, you need to create a financial plan to help you achieve it.  Start by getting clear about where you want to go and then set some clear goals to get there.

     

 
 
               EPISODE 1  In our first episode we'll discuss how money impacts three specific areas of our life: our relationships, our work, and our lifestyle. We'll also introduce you to who we are, why we started this podcast, and tell you why getting your money right is important to your happiness and your life's purpose.    Show Notes:    The WHY – our reasons for starting this podcast  o   Recognized a lack of education on money o   Knowledge about money – makes all the difference in every area of life o   Our personal journey and the gained experience (10,000 hours) o   We are passionate because it changed and helped us o   We want to make a difference, add value, and help you the listener get money right because it        will change your life.    What you can expect from listening  o   Receive practical advice o   Access to useful tools to help you manage your money successfully o   Education o   Your questions answered – Q & A    How money impacts our life – positive and negative  o    Relationships    Couples  marriage communication (geek and the free spirit = good) complement each other.  Singles – money central to social life  Money impacts our relationships most every day   o    Work    80% unsatisfied and would quit if money wasn't an issue  Love your job but don’t make enough money = unsatisfied and unhappy  Hate your job but make good money = unsatisfied and unhappy  Money is a major chunk of our work life   o    Lifestyle    People want more than just the basics (food, clothing, and a roof over your head).  Lifestyle Represents = our dreams, our security and safety (women/kids), our hopes and desires for happiness and fulfillment.    Summary    Money impacts our life in these 3 main areas: our relationships, our work, and our lifestyle – it’s important!  That’s why Getting Money Right is so crucial – doing it right will have a significant positive impact on your life.  The opposite is also true if you don’t get money right.         

EPISODE 1
In our first episode we'll discuss how money impacts three specific areas of our life: our relationships, our work, and our lifestyle. We'll also introduce you to who we are, why we started this podcast, and tell you why getting your money right is important to your happiness and your life's purpose.