Why Retirees Are Going Bankrupt

May 16, 2022

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Andre & Mara Simoneau

Andre & Mara Simoneau

Financial Consultants

Lynx Creek Cir

Frederick, CO 80516

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February 23, 2022

Is Saving Money on Utilities Worth the Effort?

Is Saving Money on Utilities Worth the Effort?

Penny pinchers and smart savers have developed dozens, perhaps hundreds, of ways to save money on their utility bills.

Have you heard of any of these…?

Putting rocks in the toilet tank to save money on water. Cranking down the thermostat in winter and cranking it up in the summer to save on power. Manically unplugging every appliance that’s not in use.

Maybe you knew a family growing up that used all these strategies to make ends meet. Or maybe it was your family!

But is it really a good idea to cut back on utilities?

If you’re backed into a financial corner or new to saving, it’s not a bad place to start. But if you’re working toward financial independence, you likely have greater obstacles to overcome.

Here’s a breakdown of the average American’s annual consumer spending…

Housing: $21,409

Transportation: $9,826

Food: $7,316

Personal insurance and pensions: $7,246

Healthcare: $5,177

Entertainment: $2,912

Cash Contributions: $2,283

Apparel and Services: $1,434

That’s a lot of money flying out the door each year!

Where do utilities fit into the picture? According to Nationwide, families spend an average of $2,060 on utilities each year.

That puts it towards the bottom of the average American’s budget.

Cutting your spending on housing, transportation, or food by one-third would free up more cash flow than reducing your utilities by half.

So before you invest in some space heaters or start lugging rocks into your bathroom, evaluate your overall spending. Are there problem areas where cutting back would create greater results?

If you answer yes, focus your time and attention first on those categories. Find a cheaper apartment or recruit roommates. Carpool with friends. Dine out less.

But if you’ve already budgeted and you still need more cash flow, turning off some lights and using an extra blanket or two at night won’t hurt.

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¹ “How much is the average household utility bill?” Nationwide, https://www.nationwide.com/lc/resources/personal-finance/articles/average-cost-of-utilities

² “Average annual expenditures of all consumer units in the United States in 2020, by type,” Statistia, Dec 9, 2021 https://www.statista.com/statistics/247407/average-annual-consumer-spending-in-the-us-by-type/#:~:text=This%20statistic%20shows%20the%20average,amounted%20to%2061%2C334%20U.S.%20dollars.

February 21, 2022

Debt is a Big Deal. Here's How to Use It Wisely

Debt is a Big Deal. Here's How to Use It Wisely

Debt must be respected. If you don’t take it seriously, it could derail your finances for good.

But while debt is no joke, it’s not necessarily bad. If handled wisely, debt can help you reach financial milestones and provide for your family.

It all starts with understanding the difference between good debt and bad debt.

Good debt is debt that you can afford and that can help you build wealth.

Think of it like this—often, you need to spend money to make money. But what if you don’t have mountains of cash to throw at every opportunity that comes your way?

That’s where good debt can help. It can give you the cash you need to seize opportunities like…

- Starting a business

- Buying a home

- Getting an education

Those can help you boost your income, purchase an appreciating asset, or increase your earning potential. And as long as you’ve done your homework and can afford your payments, good debt can help you leverage those opportunities with no regrets.

Bad debt is the exact opposite—it’s borrowing money to buy assets that lose value. That includes…

- Cars

- Video games

- Clothes

Debt can simply make these items more expensive than they already are. And what do you get in return? Nothing. Just more bills.

So if you find yourself borrowing money to buy things, stop and ask yourself: Am I making an investment? Do I think the value of this purchase will increase? Or am I simply spending because it feels good?

Here’s the takeaway—debt is a powerful tool that can be good or bad. Handle it wisely, and it can help you build businesses, buy homes, and increase your earning potential. Handle it carelessly, and you can cause serious harm to your financial stability. So do your homework, evaluate your opportunities, and meet with a licensed and qualified financial professional to see what good debt would look like for you.

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February 16, 2022

Manage Your Finances Like a Pro

Manage Your Finances Like a Pro

Do you ever feel like your money is going out the door as fast as it’s coming in?

Maybe you’ve tried budgeting, only to slip back into a pattern of unconscious spending.

Or maybe you’ve tried saving, but found that you simply don’t have enough cash at the end of each month.

If you’ve tried to get your finances in order but still struggle to stay afloat, this may be the article for you. Here are three dead simple things you can do right now to help you manage your money like a pro.

1. Download a budgeting app.

If you’re not a spreadsheet whiz, don’t worry. There are many free budgeting apps available that can help you keep your finances in order without breaking a sweat. Most of these apps make it easy to add transactions and set goals based on your income and expenses.

Best of all, some even sync with your bank account, so you don’t have to tally up your spending each month—the app does it for you!

Here are a few budgeting apps to consider…

Mint—Good overall budgeting app that syncs with your bank accounts

YNAB (You Need a Budget)—In-depth budgeting tool that’s more hands-on than other options

Mvelopes—Cash envelope budgeting system that syncs with your bank accounts

EveryDollar—Simple budget that requires manual input of expenses

Honeydue—Budgeting app designed specifically for couples

Each of these apps is free to use, but offer additional features for a monthly or annual fee.

2. Dial back subscriptions.

Do you have a gym membership, magazine subscriptions, or streaming services?

Better question—are you using your gym membership, magazine subscriptions, or streaming services?

If you’re like many, you’re shelling out money each month for subscriptions you don’t even use. You may have even forgotten that you’re still signed up for some of them!

But little by little, those subscriptions add up, depleting your cash flow each month.

So take some time to look at your transaction history to discover recurring charges. Then, cancel the ones you’re not using.

Pro-tip: You can also use apps like Truebill and Hiatus to help identify and cancel unwanted subscriptions.

3. Automate your savings.

Do you struggle to save money because of your spending habits? If so, it may be difficult to set aside cash while still having immediate access to it.

The good news is that you can set up an automatic transfer from your checking account to a savings account each month.

In fact, with this method, you don’t even have to think about it! It’s like paying a monthly subscription to a future of potential wealth and financial independence.

And it’s not difficult. Simply log in to your savings or retirement account and look for a transactions or transfers tab. Then, schedule a recurring deposit right after you get each paycheck. Just like that, you’ll automate a wealth building process that requires zero effort on your part.

If you want to manage your money like a pro, simply follow these three easy steps. With these simple moves in place, you’ll be watching your savings grow possibly faster than ever before!

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February 14, 2022

Tips for Saving Money on Homeowners Insurance

Tips for Saving Money on Homeowners Insurance

Trying to free up cash flow? Then look no further than your homeowners insurance.

That’s because there are several techniques you can use to help cut down your monthly premiums. Here are a few worth trying!

Go all out on security. One of the easiest ways to save money on homeowners insurance is to make your home more secure. Installing deadbolts, window locks, smoke detectors and fire alarms, motion detectors and video surveillance will not only help keep burglars out but may also reduce your premiums.

Just be sure to count the costs before you deck out your home. It may be more expensive to go all out on security than to pay your premiums as they are. Depending on how secure you already feel in your home, investing in extra measures may not be something you choose to do just yet.

Boost your credit score. Your credit score can have a big impact on your insurance premiums. The majority of insurers use it as a factor to determine what you will pay for homeowners insurance, so if your score is low, expect to pay more.

What can you do to improve your score? For starters, focus on paying all your bills on time. Next, reduce the balance on your credit cards. It’s a good idea to set up automatic monthly payments for your utility bills and other recurring expenses. It’s a simple, one-time action that can save your credit score from slip ups and oversights.

Eliminate attractive nuisances. If you have a swimming pool or trampoline on your property, expect to pay more for homeowners insurance. Insurers view them as attractive nuisances, and raise your premiums accordingly. That includes things like…

Swimming pools Trampolines Construction equipment Non-working cars Playground equipment Old appliances

It’ll be a weight off your shoulders—and your bank account.

Maximize discounts. You might be surprised by the wide range of discounts insurance companies offer homeowners. They include everything from not smoking to choosing paperless billing to membership in specific groups. It never hurts to ask your insurer what discounts are available.

Bundle your home insurance with auto insurance. Businesses love loyalty. And they’re not afraid to incentivize it. That’s why insurance companies will often reward you for bundling your home and auto insurance together. So if you already own a car, ask your insurer if you can purchase discounted home insurance. It may significantly lower your monthly rate.

Some methods are more obvious than others, but all of them can add up to big savings over time. Ask your financial professional for their insights, then reach out to your insurer. You may be surprised by how much you save!

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February 9, 2022

Why The Lottery Is So Addictive

Why The Lottery Is So Addictive

If you’ve ever played the lottery, then you know there is practically no chance of winning. You’re more likely to get struck by lightning than hit the jackpot.¹

But you also probably know that gambling is highly addictive. For some, there can be an undeniable draw to buying yet another ticket. Or pulling the lever on that slot machine again. Or buying into just one more hand of blackjack. Or making just one more ill-advised day trade.

Why? Because maybe, just maybe, this time will be different. This time, lady luck might save the day and solve your money problems.

There’s a quote from late comedian and lifelong gambler Norm MacDonald that captures this spirit perfectly…

“As long as the red dice are in the air, the gambler has hope. And hope is a wonderful thing to be addicted to.”

Now, if you fall into the black hole of gambling, you’ll find it’s a dead-end—gambling promises hope, but for many it delivers only disappointment and despair. How could it not? It dashes hopes time and time again, draining bank accounts and shattering relationships.

But here’s the thing—many leave the future to a wild bet without ever stepping foot in a casino or shady gas station.

They gamble that they’ll have enough for retirement, even though they do little to prepare.

They gamble that they won’t need long-term care, even though almost 70% will.²

They gamble that their incomes won’t dry up, even though employment isn’t guaranteed.

They gamble that they won’t pass away during their working years, even though the financial consequences could be devastating for their families.

And that’s all fine while the red dice are in the air. But when they land, your hopes could be dashed to pieces, triggering a financial crisis for you and the ones you love.

The takeaway is simple—hope is great, and hope is good. But hope alone isn’t enough. It’s far wiser—and it feels far better—to hope in well-laid plans than wild gambles.

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February 7, 2022

Why Debt Is A Big Deal

Why Debt Is A Big Deal

Debt is a word that strikes fear in the hearts of many. It ruins fortunes, causes untold stress, and topples governments.

Just ask a millennial about their financial struggles—student loan debt will certainly top their list.

But why? Why is debt so bad, anyway? After all, isn’t credit just money you can use now then pay back later? What’s the big deal?

Well, actually debt is a very big deal. In fact, it can make or break your personal finances.

This article isn’t for hardened debt fighters. You already know the damage debt can do.

But if you’re just starting your financial journey, take note before it’s too late. At best, debt is a tool. It certainly isn’t your friend. Here’s why…

It begins by lowering your cash flow. All those monthly payments bite into your paycheck, effectively lowering your income.

And that has consequences.

It can make it a struggle to afford a home. You simply lack the cash flow to afford mortgage payments.

It makes it a struggle to build wealth. Every spare penny goes towards making ends meet.

It makes it a struggle to maintain your lifestyle. You may find yourself choosing between the pleasures—and even the basics—of life and appeasing your creditors.

And that brings the risk of bankruptcy. It’s a last-ditch effort to erase an unpayable debt. It comes with a heavy price—creditors can take your home and possessions to make up for what you owe. And even if bankruptcy erases the debt, it will have a lasting impact on your credit score and financial future.¹

It can change your life forever, throwing your life into chaos.

Think about it—when was the last time someone smiled and fondly recalled that time they went bankrupt? Never. It’s a traumatic experience. This is something you want to avoid at all costs.

This isn’t to scare you into a debt free life or guilt you for using a credit card. Rather, it’s to educate you on the stakes. Debt isn’t something to be taken on lightly. It can have lasting consequences on your life, family, finances, and even mental health. Act accordingly.

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¹ “Bankruptcy: How it Works, Types & Consequences,” Experian, accessed Jan 7, 2022, https://www.experian.com/blogs/ask-experian/credit-education/bankruptcy-how-it-works-types-and-consequences/

February 2, 2022

Why It's Important to Protect Your Family With Life Insurance

Why It's Important to Protect Your Family With Life Insurance

If you have a family, you have many responsibilities.

You have a responsibility to help them celebrate promotions, birthdays, and holidays.

You have a responsibility to sit with them during their bad days, their break ups, their failures, their grief.

You have a responsibility to listen and understand, even if you have no clue what they’re trying to say.

You have a responsibility to own up when you mess up, and to forgive when they mess up.

And you wouldn’t trade those responsibilities for the world. In fact, they feel more like honors and privileges than burdens.

If you’re the breadwinner for your family, you have another responsibility and honor—to provide for them as best as you can.

It’s how you give them the big things, the little things, and everything in between.

But one tragic consequence of passing away is that you can no longer provide those things. You’re not there to help celebrate, to comfort, to listen, to forgive. In those ways, you’re truly irreplaceable.

That’s why many families choose life insurance. It’s an opportunity to provide for the ones they love.

The payout from life insurance, called a death benefit, gives their family cash that replaces the lost income. The family faces a long emotional journey of grief and healing. But they’re protected from a traumatic financial catastrophe.

In other words, life insurance gives you the power to fulfill one of your primary duties—provide for your family. And that’s one of the greatest gifts you can give.

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January 31, 2022

How to Get Financial Security Through Starting a Business

How to Get Financial Security Through Starting a Business

The idea of starting a business is often intimidating for people.

They might be afraid they don’t have the money to launch one, or they’re not sure if their ideas are good enough to turn into reality and make a profit. It sounds like the exact opposite of financial security!

But that doesn’t have to be you. There are strategies to get financial security through business ownership. You just need to know where to start. Here are some options.

1. Start part-time. It might seem contradictory to start as a part-time entrepreneur. But if you’re new to business ownership, it’s a great strategy. Why? Because it helps limit risk—you’re not relying on this business’s success to put food on the table. If it fails, it’s not going to hit so hard. And that risk limitation can make starting a business far less intimidating.

2. Stick with what you know. It’s normal to feel inspired to create the next Amazon, Google, or Apple. But one of the biggest mistakes new entrepreneurs make is biting off more than they can chew. Big ideas can be counterproductive if you don’t have experience in very competitive markets.

Instead, start small by choosing a field that you know. Are you secretly a guitar shredding maniac? Offer music lessons to your neighbors. Marketer by day? Become a marketing consultant by night.

There’s data to back up this strategy. Entrepreneurs with 3 years of experience in their industry are 85% more likely to succeed than entrepreneurs with no experience.¹

So follow the data, and stick with what you know.

3. Solve a problem. All successful businesses solve problems. They eliminate barriers and ease headaches. They make shopping easier, networking easier, working out easier. Think about your skills. How can you apply them to a problem?

Worthwhile problems for your business to solve can be widespread, highly niche, or underserved.

But the “best” problems are all of the above—they impact a vast market, they demand highly specific solutions, and are currently unsolved. The solutions to those problems can create vast fortunes for those who discover them.

It’s possible to get financial security through business ownership. Part-time entrepreneurship, sticking with what you know, and solving a problem are just three strategies that can boost your cash flow and help you reach your financial goals.

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¹ “Research: The Average Age of a Successful Startup Founder Is 45,” Pierre Azoulay, Benjamin F. Jones, J. Daniel Kim, and Javier Miranda, Harvard Business Review, July 11, 2018, https://hbr.org/2018/07/research-the-average-age-of-a-successful-startup-founder-is-45

January 26, 2022

Lessons You'll Learn on the Journey to Financial Freedom

Lessons You'll Learn on the Journey to Financial Freedom

Financial freedom is a process. It doesn’t happen overnight.

Instead, think of it as a journey with things to experience and lessons to learn along the way.

If you’ve embarked on the adventure of building wealth, here are 8 lessons about yourself and the world you can learn.

1. Money isn’t everything, but it makes things easier.

The first lesson you’ll learn on your journey to financial freedom? There’s more to life than money. There are people you care about. Hobbies that inspire you. Conversations that restore and heal you. Causes that matter. Without those, life is empty.

But you’ll also learn that money can make life easier.

It allows you to enjoy those things, to take care of yourself and your family, and to do something that has a bigger impact than what you might otherwise be able to do.

2. No one ever regrets saving for retirement.

“I should have saved less for retirement and spent more on clothes.” —No one

3. You can’t spend your way to happiness.

You’ll learn that there’s no amount of spending that can solve your problems. Instead of shopping sprees and new toys, you’ll come to prize experiences and memories above all else.

4. If there’s anything you want in life, you’ll need to work for it.

If something sounds too good to be true, it probably is.

If you want to build wealth and live a life you can be proud of, it’s up to you. There is no magic secret, no get-rich-quick scheme. And with that comes self-satisfaction and humility. If you have something, you’ve earned it. If it was given to you, it came from someone else who earned it.

5. Debt free doesn’t mean rich—just debt free!

Debt freedom is a critical step. But it’s not the destination.

Once you’ve eliminated debt, celebrate it. But this is no time to pause. It’s time to devote your resources to building wealth.

6. A job or career should never define you.

You are not your job. At minimum, your job is a tool to support your family. At best, your career is an avenue to express your talents and passions. But either way, your job should be aligned to, and subordinate to, your ultimate values.

7. Excuses and denials will destroy your dreams and freedom.

You’re going to be tempted. Whether it’s an expensive new toy, a nicer car you can’t really afford, or just another latte at Starbucks, the siren song of “I deserve this” can be loud. So can the “safety” of not being yourself or doing things just to impress others.

But no matter what, when you hear these things in your head, it’s time to pause. Is this really what I want? What am I trying to accomplish? What are my values? Those are your guides to financial freedom and happiness.

8. You’re far more powerful than you think.

As you progress in your journey to financial freedom, the hope is that you’ll wake up one day and notice that things are better. You’re less stressed. Your house feels more in order. You’re actually getting somewhere. And you’ll realize that you did that. Your good decisions and discipline is what got you here.

You can do things you never thought possible. You’re far more powerful than you think.

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January 24, 2022

Ways To Financially Protect Your Family

Ways To Financially Protect Your Family

What’s more worthy of protection than your family?

When you think of the people you love most, your family probably comes to mind.

When you think of your fondest memories, you probably picture your family.

When you think of who you’d give anything for, your family is at the top of the list.

So have you thought of how to financially protect your family if something were to happen to you? It’s no wonder if you haven’t. You likely weren’t taught how to keep your family’s finances safe.

Fortunately, it’s simpler than you may think! Here are a few ways to financially protect your family. Think of these as layers of fortification around the happiness, health, and safety of your home.

1. Create an emergency fund.

This is your first layer of defense. The goal? To catch and pay off any unexpected emergencies before they damage your finances. Otherwise, you may resort to costly debt to pay the balance.

There are two benchmarks for a good emergency fund…

First, it covers 3 to 6 months of expenses. That way you can weather even a significant stretch of unemployment or a considerable expense.

Second, the funds must be easily accessible. Remember, you’re not trying to grow this money into wealth. Instant access is far more valuable than rate of return.

2. Open sources of passive income.

Why? Because there may be times when working for money isn’t an option. If that happens, passive income can make all the difference.

Passive income does require an initial investment of time, money, and/or energy. But once it’s created, it can provide a constant stream of cash flow into your bank account.

Books, real estate, dividend yielding stocks, and even blogging can create passive income. Try your hand at a few with the help of a licensed and qualified financial advisor. If your finances grow tight, passive income may be the boost you need to make ends meet. It’s like giving your finances a second wind when the going gets tough.

3. Secure a life insurance policy.

Life insurance can replace your income in the event of a tragedy.

Think about it like this. If you passed away, your family wouldn’t just lose you. They’d also lose the income you provide. In addition to emotional grief, they may face a financial catastrophe.

Life insurance, when structured properly, can act as a safe house for your family. It can give them financial space to lay low, grieve, and make a new strategy for the future.

That’s why it’s common to buy life insurance that’s 10x your annual income. It gives your family the breathing room they will desperately need in the face of tragedy.

Which of these three ways to financially protect your family is most feasible for you to start right now? For many, it’s the emergency fund. If you don’t have one, let’s chat! We can review what it would look like for you to build one.

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January 19, 2022

How To Maximize Savings With A Limited Income

How To Maximize Savings With A Limited Income

It can be tough to save money when your income is tight.

But it’s not impossible. In fact, there are a lot of things you can do to make the most of your money and stretch your dollars further. Here are some tips to help you get started:

1. Track your spending. The best way to save money is to know exactly how much you’re spending and where you’re spending it.

Create a budget and track all of your expenses for a month or two so that you can see what areas are costing you the most money. Then, work on those categories first.

If there are some areas that you’re having trouble cutting back, try using a website like Mint.com to see if there’s a way to reduce spending in those categories. Maybe it makes sense for you to switch your cell phone plan or cancel the cable package. The key is to be aware of where your money is going.

2. Make your own meals. Eating out every day is a quick way to blow through your paycheck. Creating your own meals is almost always cheaper than buying prepared food.

Plus, by making more of your own food, you’ll have more control over what ingredients are going into it—which means you can make healthier food choices.

3. Use coupons and rebates to save money. If you redeem the right coupons, you can get a lot of free or discounted products and services.

Keep an eye out for coupons in your mailbox, in newspapers and magazines, and through online coupon sites like Coupons.com. You can also take advantage of rebates, which give you a discount on your purchase price after the product has been purchased.

4. Ask for discounts. If you’re buying something from a business, be sure to ask if they offer any kind of discount. Many times retail stores and restaurants will offer discounted items or free upgrades to customers who ask.

5. Get creative with your transportation costs. No, that doesn’t mean getting rid of your car. But there are things you can do to make transportation cheaper. For example…

Take public transportation when possible (it’s usually less expensive than buying gas and parking).

Carpool with other people who live in your area or work in your area.

Maintain your car to help avoid expensive repairs down the road.

Getting from point A to point B will always cost time and resources. But with these tips, it doesn’t have to make or break your budget.

6. Buy used items. Not only is it possible to find good used items at discount prices, but buying “recycled” gives an item a second life and keeps it from being thrown into a landfill. You can buy used items locally or on sites like Craigslist and eBay, and you can also try searching a local thrift store. You might be surprised by what other people consider junk!

7. Find the best prices online. Retailers know that shoppers love searching for the lowest price. Many of them will actually reduce their prices if you show them that someone else is selling an identical item for less.

Use a price comparison website like PriceGrabber to look up the items you want to buy, and then compare the prices of those products across multiple retailers.

Saving money on a tight budget is possible if you’re willing to get creative and look for ways to reduce your spending. By taking advantage of discounts, coupons, and rebates, by making your own meals instead of eating out, and by looking for the best online prices, you can stretch your dollars further.

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January 17, 2022

How To Prepare For Emergencies

How To Prepare For Emergencies

Saving for a rainy day is something that everyone should do. But it’s not always easy.

It can be tough to put money away when you’re struggling to make ends meet. However, an emergency fund can mean the difference between weathering a financial storm or being exposed to financial harm.

Fortunately, creating an emergency fund is simple. In fact, if you play your cards right, it can be up and running in moments!

You can leverage several different types of accounts to save for those unexpected road bumps. A good option is opening a savings account or money market account with your bank.

Why? Because they are easy accounts to use when emergencies arise. They grant quick access to your money, usually without the threat of tax or bank penalties for withdrawals.*

Plus, they’re often a breeze to create. Just apply online with your current bank or speak with a representative. You might be surprised how quickly you can get an account up and running.

Next, set up a recurring deposit of whatever amount you can spare into your emergency fund. That way, it won’t be too hard to maintain throughout the year. Every time you get paid or get money from somewhere else, just throw some in there! It’s that simple.

Your goal? Save up to 3-6 months of living expenses. Why 3-6 months? Because that’s often enough cushion to cover many unexpected expenses that can so easily derail you.

At the very least, it gives you breathing room if your income were to dry up for 3-6 months.

At the most, it can cover an unexpected broken foot and subsequent surgery without incurring medical debt.

Regardless of how you use it, saving for a rainy day is just good financial sense. If you’re able, start your emergency fund now to safeguard yourself in the future!

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*Be aware of any fees your particular bank may incur for either of these types of accounts.

January 12, 2022

Financial Steps in the Right Direction

Financial Steps in the Right Direction

It’s not just about money. It’s about what you do with it… and how you feel about it.

It doesn’t matter if your balance is $0 or $1 million dollars, because that dollar figure is meaningless without context and perspective. What matters most is how you feel about your finances and the choices you make with them every day, week, month—all year long.

But there are some very practical things we can all do to keep our financial ship on course even in challenging times:

1. Pay off high-interest debt

2. Save 10% of your income

3. Buy life insurance now

4. Start a side gig

Pay off high-interest debt before saving for retirement. This is a very important step that should not be overlooked or minimized. Paying off credit card debt with high interest rates can save you huge amounts of money and make other savings goals easier to reach.

Save 10% of your income. It’s always wise to consistently save as much as you can. Yet, the rule of thumb that says we should save 10% of our income is still a solid one. Remember – saving is just for you – it’s not an investment per se, but rather a protection from any nasty surprises down the road and a way to ensure you have more money to save, invest and live on.

Buy life insurance now. Life insurance is often misunderstood and misused. As such, many people fail to see its value in terms of providing for their loved ones or even protecting their own future. However, life insurance provides a way to protect your family and business in the event of an unforeseen tragedy.

Start a side gig. It will not only provide you with a second stream of income, but will offer an additional sense of security and freedom.

For many people, their financial lives become clouded with stress and anxiety because they don’t have a way to earn extra money. The solution is often as simple as taking some of the time they’d normally spend watching TV and learning a new skill, or getting a part-time job on weekends.

However you choose to start making more money, focus on what is going to make you happier in life. Because if you’re financially free, secure and happy – that’s true wealth.

The most important thing to remember is that it’s not about how much money you make or have, but what you do with your money—how you feel about it. Make smart financial choices and things will happen for the better.

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January 10, 2022

Why Poverty Can Be Outrageously Expensive

Why Poverty Can Be Outrageously Expensive

Picture the most expensive lifestyle you can imagine. What do you see?

Palm trees and beach views? Italian shoes and Swiss watches? Flying yourself into space just because you can?

How about having to live in government housing, or working a minimum wage job, or not even being able to find a job?

It’s counterintuitive, but poverty can be outrageously expensive.

There are two main reasons…

  1. Poverty makes essential spending relatively pricey
  2. Poverty has hidden—and costly—side effects

Let’s break these down…

Poverty makes essential spending relatively pricey. Consider an example. Let’s say you’re single and earn $10,000 per year, $2,000 beneath the federal poverty line.¹

Let’s also say that you and some buddies snag a mediocre apartment in the city. Great location, right? But at $500 each per month, it’s $6,000 each per year. That’s over half your income on housing alone.

Your car? Between insurance, gas, and repairs, you’re looking at costs that could be north of $5,000.

That leaves you in the hole for $1,000. Then add groceries, your cell phone, and emergencies. Normal living expenses have not only consumed 100% of your budget, but they’ve left you in the red for other essentials.

For the wealthy, those items aren’t even a consideration. The essentials take up just a fraction of their income. What’s relatively cheap for them becomes crushingly expensive for you.

But the cost of poverty can get steeper…

Poverty has hidden—and costly—side effects. Suppose that, to save money, you downgrade your housing. You find a true hovel in a bad part of town that charges $150 each per month, or $1,800 each annually.

And it doesn’t take long for reality to set in.

You might find yourself in a so-called food desert since there aren’t proper grocery stores around you that sell healthy, affordable food. The quality of your diet plummets, but still increases in cost.

There’s consistent crime in your neighborhood. Possessions get stolen. Cars get broken into. Friends get hurt. You’re under constant stress.

To deal with the stress, you pick up some foolish habits that further hurt your finances and health.

You turn to payday lenders to make ends meet. It’s a critical mistake—they charge you aggressive interest rates that become a black hole of debt.

Finally, the consequences of a low-quality diet, stress, and unhealthy coping mechanisms emerge. You face one expensive health crisis after another. You have to quit your job as your condition worsens.

This isn’t to excuse bad or foolish or unhealthy behavior. Rather, it shows how situations make people vulnerable to otherwise avoidable pitfalls.

Relative expenses and hidden expenses creating a vicious cycle help explain why it’s so hard to escape poverty. It also helps explain why poverty tends to be intergenerational. Poverty actually consumes the resources needed to build wealth.

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¹ “Poverty Guidelines,” Office of the Assistant Secretary for Planning and Evalutation, Jan 13, 2021, https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines

² “Average monthly apartment rent in the United States from January 2017 to February 2021, by apartment size,” Statistia, Mar 25, 2021, https://www.statista.com/statistics/1063502/average-monthly-apartment-rent-usa/

³ “Average Car Insurance Costs in 2021,” Kayda Norman, Nerdwallet, Aug 20, 2021, https://www.nerdwallet.com/article/insurance/how-much-is-car-insurance

January 5, 2022

Introducing The Worst Financial Advice Ever

Introducing The Worst Financial Advice Ever

“I’m about to show you how to never stress about money ever again.”

Sounds too good to be true. But the man continues…

“And you’ll be able to afford whatever you want, whenever. Buy a Ferrari and drive off the lot if you want! And it’s real simple…”

He leans in close.

“Just stop paying your bills.”


This is, without a doubt, the worst financial advice ever given. And it’s incredibly common.

Need proof? Just go to Reddit and search for ‘worst financial advice ever.’ It shows up multiple times in every thread.

And it’s not only crazy uncle types living in McMansions giving it. Apparently, paying off debt isn’t a priority for a vast swathe of the population.

But here’s the truth—not paying debt can have serious consequences.

At best, it will ruin your credit score and make it nearly impossible to rent, purchase a home, or buy a car.

At worst, you can go bankrupt. In other words, you could lose everything.

Instead, seek to eliminate debt swiftly and effectively. Don’t bury your head in the sand about the damage it can cause to your financial future.

And if someone ever tells you to not pay off your debt, ignore them. They’re living on borrowed time… and money.

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January 3, 2022

Addictive Budgeting

Addictive Budgeting

There’s no better way to feel like a mature adult than budgeting.

The planning, the structure, and the routine of proper budgeting create a sense that you’ve got this. You’re in control. You’re a proper grownup.

But there’s another feeling that budgeting can conjure—the dreaded “bleh”!

That’s because budgeting seems like a ton of work. You have to set goals, track your income, record every time you spend money, create a spreadsheet, download an app, be consistent—doesn’t sound like much fun.

And there’s that nagging question—what if I blow it? What if I overspend? What if an emergency pops up and I can’t cover it? What does that say about me and my character?

It’s understandable—intentionally starting a healthy habit requires focus and work, but it also opens the possibility of failure.

Fortunately, there’s a two-step hack to get you addicted to budgeting in the New Year…

Step 1: Track spending

Step 2: Relentlessly reward good behavior

Why does this method work? Because it leverages two things that your brain loves—progress and rewards.

Step 1: Next time you go shopping, make note of how much you spend. Use a budgeting app on your phone. (It helps remove mental barriers from the tracking process.)

Then, challenge yourself to spend slightly less next time. Track the results.

Before long, you’ll begin compulsively tracking—and reducing—your spending. Why? Because you’re seeing progress. You feel like you’re moving in the right direction. And that feels incredible.

Step 2: But you can further intensify your budgeting habit. Don’t just track your progress—celebrate it!

When you make a dent in your spending, reward yourself. Indulge in something you love. Grab dinner with a close friend. Or simply pick up a candy bar on your next shopping trip. Whatever it is, give yourself a high-five!

At first, this will feel like a rush. You’re allowing yourself to celebrate a victory, and that recognition is elating.

But over time, it will become routine. You’ll automatically start doing the right thing because your brain expects a reward. You’re proactively reinforcing healthy behavior, creating a powerful habit.

So to recap, this is how you should budget in the new year…

Track spending

Relentlessly reward good behavior

Try it out for a week and see how you feel. If you feel good about it, keep it up! If you don’t stick with it, that’s okay. Failure is part of the process. The key is to keep retooling your approach until the habit sticks.

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December 30, 2021

Stocks vs. Bonds: What's The Difference?

Stocks vs. Bonds: What's The Difference?

You’ve probably heard of both stocks and bonds. You also might know that they’re tools that many use to build wealth.

And if you have your ear to the ground, you know that stocks and bonds aren’t created equal—stocks are usually riskier, bonds are usually safer.

But…why? What’s the difference between these wealth building vehicles?

Glad you asked! Let’s explore how stocks and bonds work.

Before we begin, bear in mind that this article is for educational purposes only. It’s not recommending one vehicle over the other or a particular strategy. It’s just illuminating the differences between two common investments.

In a nutshell, a bond is a loan, while a stock is a share.

Let’s start with bonds. Governments need money to function. Historically, they’ve kept the lights on through conquest and taxation. Conquest has fallen out of fashion in the last 100 years, and sometimes taxes just won’t cut it.

So instead of demanding more money in taxes or—yikes—printing more, governments can issue bonds.

A bond is a loan. You voluntarily loan the government money, and they pay it back with interest. You get a fixed income stream, they get to build roads and schools.

Other entities can issue bonds, like states, cities, and corporations. But when people talk about bonds, they usually mean Federal Bonds. Why? Because they’re generally perceived as safe. The U.S. government has a consistent track record of paying back bond-holders.

A stock is ownership. When you buy a stock, you’re essentially buying a tiny slice of a corporation.

Why would corporations sell ownership to the masses? Because it’s a simple way to raise money. They then can use this money to expand the business, increasing the value of their stock. Eventually, you may choose to cash out your stocks for (hopefully) a handsome profit.

Some stocks also pay a portion of their earnings to stockholders. This is called paying a dividend. Normally, it’s calculated as a percentage of your stock. For instance, a $10 stock with a 2% dividend would pay $.20 each quarter.

But there’s a major catch to buying stocks—they are far less stable than federal bonds. That’s because corporations can experience bad years and even bankruptcy.

And when that happens, stockholders lose money. So while there’s potential reward for buying stocks, there’s also more risk.

That’s why it’s absolutely critical to work with a financial professional if you want to start investing in either stocks or bonds. They have the knowledge and experience to guide you in wealth building decisions based on your goals.

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December 28, 2021

The Right Way to Spend

The Right Way to Spend

There’s endless advice about how not to spend money. And it’s often delivered with an undertone of shame.

“You’re spending WHAT on your one bedroom apartment? Why don’t you find roommates?”

“I’ll bet those lattes add up! That money could be going towards your retirement.”

“You still buy food? Dumpster diving is so much more thrifty!”

You get the picture.

But make no mistake—pruning back your budget is great IF overspending is stopping you from reaching your goals.

But what if you’re financially on target? What if your debt is gone, your family’s protected, your retirement accounts are compounding, your emergency fund is stocked, and you still have money to spare?

Good news—you don’t have to live like a broke college student. That’s not you anymore. Instead, you can spend money on the things you really care about, like…

• People you love

• Causes that inspire you

• Local businesses

• House cleaning services

• Travelling

• Building your dream house

• New skills and hobbies

This isn’t a call to wildly spend on everything that catches your momentary fancy. That might be symptomatic of underlying wounds that you’re trying to heal with money. It won’t work.

Instead, it’s a call to identify a few things that you’re truly passionate about. Ramit Sethi of I Will Teach You to Be Rich fame calls these Money Dials.¹ They’re things like convenience, travel, and self-improvement that excite you.

Just imagine you have limitless money. What would be the first thing you spend it on? That’s your money dial.

And, so long as you’re financially stable, there’s no shame in spending money on those things. This is why you’ve worked so hard and saved so much—to provide yourself and your loved ones with a better quality of life. Give yourself permission to enjoy that!

So what are you waiting for? Start planning that backpacking adventure through Scandinavia, or drafting blueprints for your dream house, or decking out the spare room as a recording studio. You’ve earned it!

Not positioned to spend on your passions yet? That’s okay! For now, let your goals inspire you to take the first steps towards creating financial independence and the lifestyle that can follow.

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¹ “Money Dials: The Reason You Spend the Way You Do According to Ramit Sethi,” Ramit Sethi, I Will Teach You To Be Rich, Oct 22, 2021 https://www.iwillteachyoutoberich.com/blog/money-dials/

December 22, 2021

3 Foolproof Strategies to Feel Holiday Cheer

3 Foolproof Strategies to Feel Holiday Cheer

The lights are up. The tree is decorated. The stockings are hung.

And yet…

Sometimes it’s not enough. The holiday spirit just won’t appear, no matter how hard you try to summon it.

If that’s you, then you’ve come to the right spot! Here are three foolproof strategies for kicking the grinch in the pants and feeling some holiday cheer.

Christmas light tour. There’s something awe-inspiring about DIY Christmas light displays. The golden glow of lights on roofs and trees is magical. Find the right neighborhoods for festive displays, and it feels like you’ve entered an otherworldly Christmas dimension.

There’s something heartwarming about the lengths people go to to decorate their homes. It’s a testament to the power of the holiday season.

So load up the family, take a drive, and see what you can find! If you’re not sure where to look, Google “Christmas lights near you”. You might be surprised by how many you find!

Hot cocoa with the Christmas tree. If you’re a night-in person, then this is the perfect ritual for you!

First, brew yourself up a nice cup of hot cocoa. If you’re feeling extra festive, throw in a dash of cinnamon and nutmeg.

Second, turn off ALL the lights on the same floor as your Christmas tree. Bathroom lights, microwave lights, night lights, you name it.

Then, sit down. Sip your cocoa. And bask in the glow of the tree. Let the Holiday spirit wash over you.

Holiday movies. If all else fails, fire up a holiday film. They’re surefire ways to warm your heart and bring some cheer into your home.

Holiday movies typically fit into three categories.

Life-affirming classics. These movies have pointed generations of viewers towards what matters most during the holiday season. They’re perfect for blasts of nostalgia and reminding you to cherish the ones you love. (It’s a Wonderful Life, Miracle on 34th Street, How the Grinch Stole Christmas, A Christmas Carol)

Endearing comedies. Need a laugh this Christmas? Then these movies are for you. They highlight the silly and absurd side of the holidays while spreading joy and cheer. (Elf, Home Alone, A Christmas Story, Christmas with the Kranks)

Cheesy romances. Are these films masterpieces? Absolutely not. In fact, they’re almost always terrible. But they still capture holiday magic. Why? No one knows. Still, you can’t go wrong with a predictable, corny, and completely charming made-for-TV flick this Christmas. (Any Hallmark Channel or Netflix original holiday movie)

There you have it. Three practical and foolproof strategies for creating some holiday cheer. May they serve you well this holiday season!

Happy Holidays!

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December 20, 2021

The Surprising Financial Benefit of Marriage

The Surprising Financial Benefit of Marriage

No, it’s NOT the tax break, although that’s helpful.

It’s not the extra income, though that can help you reach your financial goals.

It’s not even the health insurance perks, which may save you a massive chunk of cash.

It’s actually love. And that’s not hyperbole. It’s a fact.

A Harvard study spanning decades discovered that men who described their close relationships as warm earned vastly more than their peers.¹

Why? What’s the connection between healthy relationships and income?

Maybe it’s simply a correlation, not a causation. Perhaps there’s a hidden factor that leads to both high incomes and great marriages.

It’s certainly not intelligence. Past a certain point, warm relationships were better predictors of income than IQ.

Health might play a role. Happy marriages tend to boost longevity and increase physical well-being, the study found.

But it doesn’t take much thought to see potential connections between relationships and income.

For instance, the stress of an unhealthy relationship might make it harder to focus on work, impacting performance.

Or maybe the power of healthy teamwork exponentially increases a couple’s ability to excel in their fields.

Or maybe encouragement and acceptance empower people to take more calculated risks with big potential payoffs.

Or maybe, just maybe, healthy relationships give people something worth fighting for.

You be the judge. Regardless of the cause, it’s clear that your relationships are among the wisest investments you can make.

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¹ “What makes a good life? 3 Lessons on Life, Love, and Decision Making from the Harvard Grant Study,” Michael Miller, Six Seconds, https://www.6seconds.org/2021/04/19/harvard-grant-study/

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