Don't Panic: What You Need To Know For Your Life Insurance Medical Exam

May 20, 2019

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Lyall and Tina  Donnelly

Lyall and Tina Donnelly

Executive Vice Presidents

10268 W. Centennial Road
Suite 302
Littleton, Colorado 80127

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May 20, 2019

Don't Panic: What You Need To Know For Your Life Insurance Medical Exam

Don't Panic: What You Need To Know For Your Life Insurance Medical Exam

I don’t know about you, but most people don’t like exams – either taking one or having one done to them.

But there’s no need to panic over your life insurance medical exam (yes, you’re probably going to have one). I’ve got some steps you can take before the “big day” to help prevent readings which may skew your test results or create unnecessary confusion.

One important thing to keep in mind is that the exam’s purpose isn’t to pass or fail you based on your health. Your insurer just needs to understand the big picture so they can assign an accurate rating. Oftentimes, the news can be better than expected, and generally good health is rewarded with a lower rate. Alternatively, the exam might uncover something that needs attention, like high cholesterol. That might be something good to know so you can make necessary lifestyle changes.

Think of your exam as a big-picture view. Your insurer will measure several key aspects of your health. These areas help determine your life insurance class, which is simply a group of people with similar overall health characteristics.

Your insurer will most likely look at:

  • Height and weight
  • Pulse/blood pressure tests
  • Blood test
  • Urine test

Tests can indicate glucose levels, blood pressure levels, and the presence of nicotine or other substances. Body Mass Index (BMI) – a measurement of overall fitness in regard to weight – may also be measured as part of your life insurance exam.

So let’s find out what you can do to prepare for your exam!

The most obvious cause that could affect your results is medications you’ve taken recently. These will probably show up in your blood tests. Bring a list of any prescription medications you’re taking so your insurer can match those to the blood analysis.

Over the counter meds can interfere with test results and create inaccurate readings too, so it might be best to avoid them for 24 hours prior to your medical exam if possible. Caffeine can elevate blood pressure as well.

Alcohol can also spike blood pressure readings temporarily. If you can, avoid strenuous exercise for 24 hours before your medical exam.

Some types of foods can create false readings or temporarily raise cholesterol levels. It’s best to avoid eating for 12 hours prior to your exam, giving your body time to clear temporary effects. Scheduling your exam for the morning makes this easier.

Stress can affect blood pressure readings. (Surprise, surprise.) Try to schedule your life insurance medical exam for a time when you’ll be less stressed. After work might not be the best time, but maybe after a good night’s rest would be better.

Have any further questions on how you can prepare for your exam? I’m here to help!

May 15, 2019

3 Advantages to Being the Early Bird

3 Advantages to Being the Early Bird

Extra-large-blonde-roast-with-a-double-shot-of-espresso, anyone?

As the old saying goes, “The early bird catches the worm.” But not everyone is an early riser, and getting up earlier than usual can throw off a night owl’s whole day.

But there are a couple of things that, if started early in life (and with copious amounts of caffeine, if you’re starting early in the day, too), could benefit you greatly later in life. For example, learning a second language.

The optimal age range for learning a second language is still up for debate among experts, but the consensus seems to be “the younger you start, the better.” It’s a good idea to start early – giving your brain an ample amount of time to develop the many agreed upon benefits of being bilingual that don’t show up until later in life:

  • Postponed onset of dementia and Alzheimer’s (by 4.5 years)
  • Much more efficient brain activity – more like a young adult’s brain
  • Greater cognitive reserve and ability to cope with disease

Imagine combining that increased brain power with a comfortable retirement – an important goal to start working towards early in life!

Here are 3 big advantages to starting your retirement savings early:

1. Less to put away each month.
Let’s say you’re 40 years old with little to no savings for retirement, but you’d like to have $1,000,000 when you retire at age 65. Twenty-five years may seem like plenty of time to achieve this goal, so how much would you need to put away each month to make that happen?

If you were stuffing money into your mattress (i.e., saving with no interest rate or rate of return), you would need to cram at least $3,333.33 in between the layers of memory foam every month. How about if you waited until you were 50 to start? Then you’d need to tuck no less than $5,555.55 around the coils. Every. Single. Month.

A savings plan that aggressive is simply not feasible for a majority of North Americans. Nearly half of Canadians are just getting by, living paycheck-to-paycheck. So it makes sense that the earlier you start saving for retirement, the less you’ll need to put away each month. And the less you need to put away each month, the less stress will be put on your monthly budget – and the higher your potential to have a well-funded retirement when the time comes.

But what if you could start saving earlier and apply an interest rate? This is where the second advantage comes in…

2. Power of compounding.
The earlier you start saving for retirement, the longer amount of time your money has to grow and build on itself. A useful shortcut to figuring out how long it would take your money to double is the Rule of 72.

Never heard of it? Here’s how it works: Take the number 72 and divide it by your annual interest rate. The answer is approximately how many years it will take for money in an account to double.

For example, applying the Rule of 72 to $10,000 in an account at a 4% interest rate would look like this:

72 ÷ 4 = 18

That means it would take approximately 18 years for $10,000 to grow to $20,000 ($20,258 to be exact).

Using this formula reveals that the higher the interest rate, the less time it’s going to take your money to double, so be on the lookout for the highest interest rate you can find!

Getting a higher interest rate and combining it with the third advantage below? You’d be on a roll…

3. Lower life insurance premiums.
A well-tailored life insurance policy may help protect retirement savings. This is particularly important if you’re outlived by your spouse as he or she approaches their retirement years.

End-of-life costs can deal a serious blow to retirement savings. If you don’t have a strategy in place to help cover funeral expenses and the loss of income, the money your spouse might need may have to come out of your retirement savings.

One reason many people don’t consider life insurance as a method of protecting their retirement is that they think a policy would cost too much.

How much do you think a $250,000 term life insurance policy would cost for a healthy 30-year-old?

Less than $14 per month. That’s a cost that would easily fit into most budgets!

You may still need a little caffeine for the extra kick to get an early start on powering up your brain (or your retirement savings), but sacrificing a few brand-name cups of coffee per month could finance a well-tailored life insurance policy that has the potential to protect your retirement savings.

Contact me today, and together we can work on your financial strategy for retirement, including what kind of life insurance policy would best fit you and your needs. As for your journey to the brain-boosting benefits of being bilingual – just like with retirement, it’s never too late to start. And I’ll be here to cheer you on every step of the way!


May 13, 2019

6 Financial Commitments EVERY Parent Should Educate Their Kids About

6 Financial Commitments EVERY Parent Should Educate Their Kids About

Your first lesson isn’t actually one of the six.

It can be found in the title of this article. The best time to start teaching your children about financial decisions is when they’re children! Adults don’t typically take advice well from other adults (especially when they’re your parents and you’re trying to prove to them how smart and independent you are).

Heed this advice: Involve your kids in your family’s financial decisions and challenge them with game-like scenarios from as early as their grade school years.

Starting your kids’ education young can help give them a respect for money, remove financial mysteries, and establish deep-rooted beliefs about saving money, being cautious regarding risk, and avoiding debt.

Here are 6 critical financially-related lessons EVERY parent should foster in the minds of their kids:

1. Co-signing a loan

The Mistake: ‘I’m in a good financial position now. I want to be helpful. They said they’ll get me off the loan in 6 months or so.’

The Realities: If the person you’re co-signing for defaults on their payments, you’re required to make their payments, which can turn a good financial situation bad, fast. Also, lenders are not incentivized to remove co-signers – they’re motivated to lower risk (hence having a co-signer in the first place). This can make it hard to get your name off a loan, regardless of promises or good intentions. Keep in mind that if a family member or friend has a rough credit history – or no credit history – that requires them to have a co-signer, what might that tell you about the wisdom of being their co-signer? And finally, a co-signing situation that goes bad may ruin your credit reputation, and more tragically, may ruin your relationship.

The Lesson: ‘Never, ever, EVER, co-sign a loan.’

2. Taking on a mortgage payment that pushes the budget

The Mistake: ‘It’s our dream house. If we really budget tight and cut back here and there, we can afford it. The bank said we’re pre-approved…We’ll be sooo happy!’

The Realities: A house is one of the biggest purchases couples will ever make. Though emotion and excitement are impossible to remove from the decision, they should not be the driving forces. Just because you can afford the mortgage at the moment, doesn’t mean you’ll be able to in 5 or 10 years. Situations can change. What would happen if either partner lost their job for any length of time? Would you have to tap into savings? Also, many buyers dramatically underestimate the ongoing expenses tied to maintenance and additional services needed when owning a home. It’s a general rule of thumb that home owners will have to spend about 1% of the total cost of the home every year in upkeep. That means a $250,000 home would require an annual maintenance investment of $2,500 in the property. Will you resent the budgetary restrictions of the monthly mortgage payments once the novelty of your new house wears off?

The Lesson: ‘Never take on a mortgage payment that’s more than 25% of your income. Some say 30%, but 25% or less may be a safer financial position.’

3. Financing for a new car loan

The Mistake: ‘Used cars are unreliable. A new car will work great for a long time. I need a car to get to work and the bank was willing to work with me to lower the payments. After test driving it, I just have to have it.’

The Realities: First of all, no one ‘has to have’ a new car they need to finance. You’ve probably heard the expression, ‘a new car starts losing its value the moment you drive it off the lot.’ Well, it’s true. According to CARFAX, a car loses 10% of its value the moment you drive away from the dealership and another 10% by the end of the first year. That’s 20% of value lost in 12 months. After 5 years, that new car will have lost 60% of its value. Poof! The value that remains constant is your monthly payment, which can feel like a ball and chain once that new car smell fades.

The Lesson: ‘Buy a used car you can easily afford and get excited about. Then one day when you have saved enough money, you might be able to buy your dream car with cash.’

4. Financial retail purchases

The Mistake: ‘Our refrigerator is old and gross – we need a new one with a touch screen – the guy at the store said it will save us hundreds every year. It’s zero down – ZERO DOWN!’

The Realities: Many of these ‘buy on credit, zero down’ offers from appliance stores and other retail outlets count on naive shoppers fueled by the need for instant gratification. ‘Zero down, no payments until after the first year’ sounds good, but accrued or waived interest may often bite back in the end. Credit agreements can include stipulations that if a single payment is missed, the card holder can be required to pay interest dating back to the original purchase date! Shoppers who fall for these deals don’t always read the fine print before signing. Retail store credit cards may be enticing to shoppers who are offered an immediate 10% off their first purchase when they sign up. They might think, ‘I’ll use it to establish credit.’ But that store card can have a high interest rate. Best to think of these cards as putting a tiny little ticking time bomb in your wallet or purse.

The Lesson: ‘Don’t buy on credit what you think you can afford. If you want a ‘smart fridge,’ consider saving up and paying for it in cash. Make your mortgage and car payments on time, every time, if you want to help build your credit.’

5. Going into business with a friend

The Mistake: ‘Why work for a paycheck with people I don’t know? Why not start a business with a friend so I can have fun every day with people I like building something meaningful?’

The Realities: “This trap actually can sound really good at first glance. The truth is, starting a business with a friend can work. Many great companies have been started by two or more chums with a shared vision and an effective combination of skills. If either of the partners isn’t prepared to handle the challenges of entrepreneurship, the outcome might be disastrous, both from a personal and professional standpoint. It can help if inexperienced entrepreneurs are prepared to:

  • Lose whatever money is contributed as start-up capital
  • Agree at the outset how conflicts will be resolved
  • Avoid talking about business while in the company of family and friends
  • Clearly define roles and responsibilities
  • Develop a well-thought out operating agreement

The Lesson: ‘Understand that the money, pressures, successes, and failures of business have ruined many great friendships. Consider going into business individually and working together as partners, rather than co-owners.’

6. Signing up for a credit card

The Mistake: ‘I need to build credit and this particular card offers great points and a low annual fee! It will only be used in case of emergency.’

The Reality: There are other ways to establish credit, like paying your rent and car loan payments on time. The average American household carries a credit card balance averaging over $16,000. Credit cards can lead to debt that may take years (or decades) to pay off, especially for young people who are inexperienced with budgeting and managing money. The point programs of credit cards are enticing – kind of like when your grocer congratulates you for saving five bucks for using your VIP shopper card. So how exactly did you save money by spending money?

The Lesson: ‘Learn to discipline yourself to save for things you want to buy and then pay for them with cash. Focus on paying off debt – like student loans and car loans – not going further into the hole. And when you have to get a credit card, make sure to pay it off every month, and look for cards with rewards points. They are, in essence, paying you! But be sure to keep Lesson 5 in mind!’


May 8, 2019

What is your #1 financial asset?

What is your #1 financial asset?

What is your #1 financial asset? It’s not your house, your retirement fund, or your rare baseball card collection gathering dust.

Your most valuable financial asset is YOU!
Today – Labor Day, the unofficial last day of summer – let’s look at ways you can develop your skills and outlook in the workforce as we move from summertime vacation mode into finishing 2018 strong.

You might be savvy at home improvement, you might be a whiz with your finances, or you might have the eye to spot a hidden treasure at a yard sale, but how do you increase your value as a laborer in the workforce? One of the top traits of successful people is that they come up with a plan and they execute. Waiting for things to happen or taking the crumbs life tosses their way isn’t on their to-do list. Whether you’re dreaming of a secure future for yourself and your family, or if you want to build a career that enables you to help others down the road (or both!), the path to your goal and how fast you get there is up to you.

Increase your value as an employee
Working for someone else doesn’t have to feel like a prison sentence. In a recent study, nearly 60% of entrepreneurs worked full time as an employee for someone else while planning and building their own business on the side. Being employed is a chance to learn alongside experienced mentors, and prime time to experiment with how you can best add value. In many cases, successful entrepreneurs spent their time in the workforce amassing a wealth of information on how businesses are run, making mental notes on what doesn’t work, and practicing what can be done better.

View your time as an employee as an opportunity to hone your problem solving skills. It’s a mindset – one that can make you a more valuable employee and prepare you for great things later. Being seen as a problem solver can grant you more opportunity for promotions, pay increases, greater responsibility, and perhaps most importantly, open up more chances for life-enriching experiences.

Build your financial strategy
While you’re working to increase your value as a laborer, you’ll benefit from steady footing before taking your next big step. This is where building a solid financial strategy comes into play. Nearly everyone has the potential to be financially secure. Where most find trouble is often due to not having a plan or not sticking to the plan. A few simple principles can guide your finances, setting you up for a future where you have freedom to choose the life you envision.

  • Pay yourself first. Starting early and continuing as your earnings grow, begin the habit of paying yourself first. Simply, this means putting away some money every month or every paycheck that can help you reach your financial goals over time. Ideally, this money will be invested where it can grow. The goal is to get the money out of harm’s way, where you would have to think twice before dipping into your savings before you spend.
  • Develop a budget and consider expenses carefully. Think about expenditures before opening your wallet and swiping that credit card. Avoid debt wherever possible. Most people are able to have more money left over at the end of the month than they might realize. Don’t be afraid to tell yourself “no” so you can reach a bigger goal.
  • Plan for loved ones with life insurance. Here is where the value you provide your family through your hard work comes into sharp focus. Life insurance is essentially income replacement, should the worst happen. Meet with your financial professional and put a tailored-to-you life insurance policy in place that assures your family or dependents are taken care of.

Put your skills to work as a leader
Once you’ve established a level of financial security, now is the time to think about giving back by providing opportunities and helping others to realize their goals. There’s an old saying: “You’ll never get rich working for someone else.” While that’s not always true, trying to realize your long-term financial goals in an entry-level position might be an uphill climb. Moving up into a leadership position can teach you new skills and can increase your earning power. The average salary for managers approaches six figures!

You might even be ready to branch out on your own, investing the knowledge and leadership skills you’ve gained over the years in your own venture. Consider becoming an entrepreneur with your own financial services business – this can allow you to help others while building on your continuing success as a financial professional.

Whether you choose to strike out on your own, start a new part-time business, or grow within the organization or industry you’re in now, there are key traits that will help you succeed. Having a future-driven, forward-thinking mindset will guide your decisions. Your sense of commitment and the leadership skills you’ve honed on your journey will define your career – and perhaps even your legacy – as others learn from your example and use the same principles to guide their own success.

May 6, 2019

Quick Guide: Life Insurance for Stay-at-Home Parents

Quick Guide: Life Insurance for Stay-at-Home Parents

Life insurance is vitally important for any young family just starting out.

Milestones like buying a home, having a baby, and saving for the future can bring brand new challenges. A solid life insurance strategy can help with accommodating the needs of a growing family in a new phase of life.   A life insurance policy’s benefits can

  • Replace income
  • Pay off debt
  • Cover funeral costs
  • Finance long-term care
  • And even more, depending on the type of policy you have.

And replacing family income doesn’t only mean covering the lost income of one earning parent.

Replacing the loss of income provided by a stay-at-home parent is just as important.   According to Salary.com, if a stay-at-home mom were to be compensated monetarily for performing her duties as a mother, she should receive $143,102 annually. That number factors in important services like childcare, keeping up the household, and providing transportation. Sudden loss of those services can be devastating to the way a family functions as well as expensive to replace.

Stay-at-home parents need life insurance coverage, too.

Contact me today to learn more about getting the life insurance coverage you need for your family and building a financial plan that will provide for your loved ones in case a traumatic life event occurs.


May 1, 2019

The Burden of a Damaged Paycheck

The Burden of a Damaged Paycheck

How many of these “rules to live by” did you hear growing up?

Don’t run with scissors!

Look both ways before crossing the street!

Never dive into the shallow end!

They may have been yelled angrily from the front porch or shouted gruffly from the side of the pool – but it was done with love. These rules were all about keeping you safe from avoidable injuries and preventable accidents.

Now these lessons are as engrained in your way of life as flossing your teeth every single night, right? You may even have passed these “rules to live by” on to (yelled them at, maybe?) your own kids! These tips show how much you care about your family – and their safety and comfort.

If you’ll excuse my insistence, I have one more safety tip to add to your collection:

Get disability insurance!

When it comes to an unexpected disabling injury or illness, simply being cautious may not prevent it. And being careful won’t always protect you or your family from the burden of a damaged paycheck.

According to the Council for Disability Awareness, an accident is not usually the cause of a disability later in life. Instead, the inability to earn a paycheck can be caused by heart disease, cancer, and other illnesses.

Disability insurance can replace part of your income due to an injury or illness. But waiting to consider disability insurance until you are face-to-face with a damaged paycheck is waiting too long.

Contact me today, and together we can explore your options. Let’s discuss what you can do to continue looking out for your financial safety as well as helping to ensure the comfort and care of your loved ones.


April 29, 2019

What Happens If a Life Insurance Policy Lapses?

What Happens If a Life Insurance Policy Lapses?

The dollar amount of death benefit payouts that seniors 65 and older forfeit annually through lapsed or surrendered life insurance policies is more than the net worth

That’s $112 billion worth of death benefits, inheritance, donations to charities, and cash value down the drain. Or, more specifically, that’s $112 billion that goes right back to insurance companies – all because policyholders surrendered their policies or allowed them to lapse.

A lapse in a life insurance policy occurs when a premium isn’t paid. There is a brief grace period in which a premium payment for a life insurance policy can still be made. But if the payment is not made during the grace period, the life insurance policy will lapse. At this point, all benefits are lost.

There are circumstances in which the life insurance policy can be recovered. It could be as simple as resuming premium payments… or it could involve a lengthy process that includes a new medical exam, repaying all premium payments from the lapsed period, and possibly the services of an attorney.

The best practice to avoid a policy lapse is to make premium payments on time. To help out their customers, many insurance companies can automatically withdraw the monthly payment from a checking account, and some companies may take missed premium payments out of the policy’s cash value – but please note: term life insurance has no cash value. In this case, missed premium payments won’t have the cash value failsafe.

If you’re in danger of a lapse, contact me today. Together we can review your financial strategy to help you and your loved ones stay covered.


April 24, 2019

Some Numbers Are Hard to Believe – Like These!

Some Numbers Are Hard to Believe – Like These!

1.32 billion people log in to Facebook every day.

Apple has now sold over 1 billion iPhones. Google processes 1.2 trillion searches every year. And – perhaps the most difficult to believe of them all – the world hotdog eating record stands at 70 dogs in 10 minutes. I apologize ahead, but just visualize that. Seven hotdogs down the hatch every minute.

Here’s another number that’s almost beyond comprehension: 56% of Americans have less than $10,000 in retirement savings. You may be thinking – how can that be? Sadly, it’s true. Here’s another number that’s hard to… swallow (again, I apologize). One out of 4 Americans 65 and over rely on Social Security as their only source of retirement income. Yes, you read that right – 25%! It’s no wonder that 60% of Baby Boomers are more afraid of outliving their money than dying.

Why share these hard to believe numbers? To motivate you – at whatever age you are today – that you can start saving more right now. If you want to have a million dollars at the age of 65, how much do you need to start saving every month? That depends on your current age. If you’re 25, you’ll need to save a minimum of $158.12 per month. At 35, the amount jumps to $442.00 per month. At 45, it’s $1,317 monthly. At 55, you’ll have to save $4,882.00 per month. And at 60, you’d have to save $12,913.00 every month.

How much do you need to save to hit your goals? What’s the right financial vehicle to help you do it? Those are important questions. Best not to wait to find the answers. Contact me, and let’s get to work on a strong insurance strategy.


April 22, 2019

A Pocket Guide to Homeowners Insurance

A Pocket Guide to Homeowners Insurance

Homeowners insurance should bring peace of mind.

The right policy is there to help protect you if something happens to your home. Since a home may be the most significant investment many of us make in our lives, the proper homeowners insurance should be a major consideration.

Getting the right homeowners insurance is essential, but doesn’t have to be difficult. Still, how do you know if you’re selecting the right type of insurance policy for your house? Read on for answers to some common questions you might have.

What is the purpose of a homeowners insurance policy?
A homeowners insurance policy is a contract by which an insurance company agrees to pay for repairs or to replace your home or property if it is involved in a covered loss, such as a fire. A home insurance policy may also offer you liability protection in case someone is injured on your property and files a lawsuit.

Do I have to have homeowners insurance?
Your mortgage company will probably require a homeowners insurance policy. A lender wants to make sure their investment is protected should a catastrophe strike. The mortgage company would need you to insure your home for the cost to replace it if it were to be destroyed in a covered accident.

How do I know how much insurance to buy for my home?
The limit – or amount of insurance you place on your home – is determined by several factors. The construction of your home is typically going to be the largest determinant of the cost to replace it. So consider what your home is made of. Construction types include concrete block, masonry, and wood frame. Also, consider the size of your home.

Personal property is another consideration when determining how much insurance to purchase for your home. A typical homeowners insurance policy usually offers a personal property limit equal to half the replacement cost of your home. So if your home is insured for $100,000, your policy may automatically assign a personal property limit of $50,000.

What is the best deductible for a homeowners insurance policy?
When it comes to deductibles, consider selecting one that you can easily and quickly come up with out of pocket, just in case. Homeowners insurance policy deductibles may range from $500 to $10,000. Some policies offer percentage deductibles for certain damages, such as windstorm damage. For example, a coastal resident may have a windstorm deductible of two percent of the dwelling limit and a $1,000 deductible for all other perils.

There may be some cost savings features when you select a higher deductible on your homeowners insurance. Talk with a licensed insurance professional about your deductible options and premium savings.

Know the policy exclusions
All homeowners insurance policies typically contain exclusions for accidents and damages they don’t cover. For example, your policy likely does not cover damage to your home caused by an ongoing maintenance problem. Also, most homeowners insurance policies don’t automatically cover losses resulting from a flood.

Exclusions are important because they drive coverage. Talk to your insurance professional about your policy’s exclusions.

Know the basics and talk to a professional
As far as homeowners insurance policies are concerned, it’s crucial for homeowners to know the basics – limits, coverages, deductibles, and special exclusions. If you have specific concerns about your homeowners insurance, seek guidance from a licensed insurance professional.


This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies that may be available to you. Before taking out any loan or enacting a funding strategy, seek the advice of a licensed financial professional, realtor, accountant, and/or tax expert to discuss your options.

April 17, 2019

Handling your car loan like a boss

Handling your car loan like a boss

Cars may be necessary to get around, but they can be expensive.

At some point, many of us will need to finance a car. Coming up with enough cash to buy a car outright – even a used car – can be difficult. Enter the auto loan.

Financing a car isn’t all bad, especially if you follow a few best practices that can help keep your car loan in good shape. Avoiding the dreaded upside down car loan – owing more on your car than it’s worth – is the name of the game when it comes to a good automobile loan.

Why do car loans go upside down?
Being upside down on your car loan is surprisingly common. It happens to many of us, and the root cause is depreciation. Depreciation is the decline in value of a good or product over time. Many physical goods depreciate – furniture, electronics, clothing, and cars.

There is a saying that a car begins depreciating as soon as you drive it off the lot. Unlike a good such as fine art or precious stones that you would expect to appreciate over time, a car usually will lose its value over time.

For example, say you buy a new car for $25,000. After three months your car depreciates by $3,000, so it’s now worth $22,000. If your down payment was less than $3,000 or you didn’t use a down payment at all, you are now upside down – owing more money on your car than it’s actually worth.

Some cars, however, hold their value better than others. Luxury cars have a slower depreciation rate than an inexpensive compact car. The popularity of a vehicle can also affect depreciation rates.

What happens when you’re upside down on a car loan?
Being upside down on your car loan may actually not mean much unless you’re involved in a loss and your car gets totaled. Assuming you have proper auto insurance, your policy should pay out the actual cash value of your totaled vehicle, which may not be enough to pay off the remaining balance of your auto loan. Then you’re stuck paying the balance on a loan for a car that you don’t have anymore. That is why it’s essential to avoid being upside down in your car loan.

Strategies to keep your car loan healthy
Keeping your car loan right side up starts with putting a healthy down payment on your car. Typically, a 20 percent down payment may give you enough equity right off the bat to keep your car loan from going upside down when the vehicle begins depreciating. So, if you’re purchasing a $25,000 car, aim to put at least $6,000 down.

Another way to avoid being upside down on your car loan is to select the shortest repayment term possible. If you can afford it, consider a 36-month repayment plan. Your monthly payments may be a bit higher, but the chances of your loan going upside down may be less.

Choose carefully
Keeping your car loan from going upside down is important. Make sure you have a healthy down payment, shop for vehicles within your budget, and stick to the shortest repayment term you can afford. Simple strategies can help make sure your car loan stays in the black.


This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies that may be available to you. Before taking out any loan or enacting a funding strategy, seek the advice of a licensed financial professional, accountant, and/or tax expert to discuss your options.

April 15, 2019

Is a home really an investment?

Is a home really an investment?

The housing market has experienced major peaks and valleys over the past 15 years.

If you’re in the market for a new home, you might be wondering if buying a house is a good investment, or if it even should be considered an investment at all…

“Owning a home is the best investment you can make.”
We’ve all heard this common financial refrain: “Owning a home is the best investment you can make.” The problem with that piece of conventional wisdom is that technically a home isn’t an investment at all. An investment is something that (you hope) will earn you money. A house costs money. We may expect to save money over the long term by buying a home rather than renting, but we shouldn’t (typically) expect to earn money from buying a home.

So, a home normally shouldn’t be considered an investment, but it may offer some financial benefits. In other words, buying a home may be a good financial decision, but not a good investment. A home may cost much more than it gives back – especially at the beginning of ownership.

The costs of homeownership
One reason that buying a home may not be a good investment is that the cost of homeownership may be much higher than renting – especially at first. Many first time homebuyers are unprepared for the added expense of owning a home, plus the amount of time maintaining a home may often require. First-time homebuyers must be prepared to potentially deal with:

  • Higher utility costs
  • Lawn care
  • Regular maintenance such as painting or cleaning gutters
  • Emergency home repairs
  • Higher insurance costs
  • Private Mortgage Insurance (PMI) if you don’t provide a full 20 percent down payment

A long term commitment
Another problem with considering a house as an investment is that it may take many years to build equity. Mortgages are typically interest heavy in the beginning. You can expect to be well into the life of your mortgage before you may see any real equity in your home.

Having the choice to move without worrying about selling your home is a benefit of renting that homeowners don’t enjoy. The freedom to move for a career goal, romantic interest, or even just a lifestyle choice is mostly available to a renter but may be out of reach for a homeowner. So, be sure to consider your long term goals and aspirations before you start planning to buy a house.

When is buying a home the right move?
Buying a home in many cases can be an excellent financial decision. If you are committed to living in a specific area but the rent is very high, homeownership may have some benefits. Some of those may be:

  • Not having a landlord make decisions about your property
  • Tax savings
  • Building equity
  • A stable place to raise a family

Buying a home: Not always a good investment, but may be a good financial decision
Although buying a home may not pay you in high returns, it can be an excellent financial decision. If owning a home is one of your dreams, go for it. Just be aware of the costs as well as the benefits. If you’ve always wanted to own your own home, then the rewards can be myriad – dollars can’t measure joy and the priceless memories you’ll create with your family.


This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Any examples used in this article are hypothetical. Before investing or enacting a savings or retirement strategy, seek the advice of a licensed financial professional, accountant, realtor, and/or tax expert to discuss your options.

April 10, 2019

When should you see a financial professional?

When should you see a financial professional?

Just about anyone may benefit from seeing a financial professional, but how do you know when it’s time to get some professional guidance?

Many people work through much of their financial life without needing to talk to a financial professional, but then something may change. Maybe you are approaching retirement and want to make sure you have your bases covered. Perhaps you just received an inheritance and aren’t quite sure what to do with it, or maybe you received a big promotion with a substantial raise and want a little help with your existing financial strategy.

Whatever the case may be, here are a few signposts that indicate it may be time to see a financial professional.

You are unsure about your financial future
If when thinking about your financial future, and you keep coming up with a blank slate, a financial professional may help you formulate a solid savings strategy. If you’re feeling overwhelmed by differing financial responsibilities, a conversation with a financial professional may help you sort it all out and develop a roadmap. If you’re juggling a lot of financial balls, such as student loan debt, retirement savings, credit card debt, building an emergency fund, trying to buy a house, etc., you may benefit from some professional financial input.

You have inherited a large sum of money
Coming in to an inheritance is a key signal to seek out a financial professional. A financial professional may be able to help you determine the options you have to manage the money that you may not be aware of. The important thing with an inheritance is to take your time when making decisions and consider any long term implications for your family.

You want a professional opinion
Say you like managing your own money, and you’ve been doing a pretty good job of it. You read the financial news and keep up with the latest from Wall Street. You may feel you’re doing just fine without the help of a financial professional, and that’s great. But, getting a second opinion on your finances from a qualified financial professional may go a long way.

Sometimes with our finances we may have a blind spot – a risk we may not see, or an opportunity to do something better that we haven’t noticed. A financial professional may help you find those opportunities and help eliminate those risks. Even if your finance game is on a roll, a little professional guidance may help make it even better.

April 8, 2019

Quick ways to cut your monthly expenses

Quick ways to cut your monthly expenses

Looking to save a little money?

Maybe you’re coming up just a tad short every month and need to cut back a little bit. If you’re scratching your head wondering where those cuts are going to come from, no worries! Reducing monthly expenses may not be as hard as you think.

Complete an insurance review
Often, there could be an opportunity to save some money on your insurance without even switching companies. It might be worth taking the time to review your insurance policies carefully to make sure you’re getting all the discounts you’re eligible for. There may be auto insurance discounts available for safety features on your car such as airbags and antilock brake systems. You may also get a multi-policy discount if you have more than one policy with the same company.

If you aren’t sure what to look for, contact your insurance professional and ask for an insurance review with an eye toward savings. They may be able to offer some advice on changes that can lower your monthly premium.

Shop around on your utilities
Some consumers may have a choice when it comes to utility providers. If this is you, make sure you shop around to get the best rate on your household utilities. Research prices for electricity, water, gas, or oil. If your area has only one provider, don’t worry, you may still save money on utilities by lowering your consumption. Turn off the lights and be conservative with your water usage and you might see some savings on your monthly utility bills.

Cell phone service
Your cell phone bill may be a great place to save on your monthly expenses. It seems like every cell phone provider is itching to make you a better deal. Often, just calling your current provider and asking for a better rate may help. Also, study your data and phone usage and make sure you’re only paying for what you use. Maybe you don’t really use a lot of data and can lower your data plan. A smaller data plan can often save you money on your monthly bill.

Interest on credit cards
Interest is like throwing money away. Paying interest does nothing for you. Still, we’ve probably all carried a little debt at one time or another. If you do have credit card debt you’re trying to pay off, you may be able to negotiate a lower interest rate. You can also apply for a no interest card and complete a balance transfer (if any associated fees make sense).

The other benefit of low or no interest on your debt is that more of your payment applies to the principal balance so you’ll potentially get rid of that debt faster.

Subscription services
These days there’s a subscription box service for just about everything – clothing, skin care products, wine, and even dinner. It can be easy to get caught up in these services because the surprise of something new arriving once a month is alluring and introductory offers may be hard to resist. But if you’re trying to save on your monthly expenses, give your subscription services a once over and make sure you’re really using what you’re buying. You may want to cut one or two of them loose to help save on your monthly expenses.

It is possible to cut back on your monthly budget without (too) much sacrifice. With a little effort and know-how, you can help lower your expenses and save a little cash.

April 3, 2019

Phishing, Part 2

Phishing, Part 2

Phishing can be perpetrated via text or voice (and it may even be done in person).

Here are a few pointers on how to avoid becoming a victim. Since subtle phishing attacks can be very sophisticated, you should always be alert and proceed with caution when interacting online or when giving out your personal information.

Avoiding phishing in text…

1) Know and trust the hyperlink.
It’s important to be on the lookout for phishing attempts both in your private and professional life. Obvious scams that show up in your spam folder – like a solicitation to invest in an overseas company you’ve never heard of – are easy to avoid. But what if you receive a message from an “old colleague” with a link to their Facebook page or their new business? Would you click it? If yes, before clicking, would you check the link address at the bottom of the browser or your email client? If not, and that old colleague isn’t who they claim to be, you might become the victim of a phishing attack.

A stop-now red flag is when the link doesn’t look like it will go exactly where it says it will. The email message may show the text “www.example.com” which looks legitimate, but in reality this link leads to “www.this-is-a-scam.com”. That’s an obvious one, but scammers are clever. The deception could be something less conspicuous, wherein www.example.com would lead to www.exanple.com. If you’re not paying close attention, the latter might be an imitator site.

2) Be wary of impostors
Once the victim lands on www.exanple.com (with the “n”), they may not notice the site isn’t authentic. A good rule of thumb is that after you click a link – after determining as best you can that it is legitimate, of course – you should always double check the URL bar to ensure it is the website you intended to visit. If the visuals look like what you were expecting but the address in the URL bar is not, then it could be an impostor site. If you enter any personal information on this page, you may be directed to a fake internal site or receive an error that asks you to try again later. While you wait to try again, the phisher can take the information you just sent them and do the damage.

Shortened links can present a problem, since they offer legitimate uses for many messaging services to help trim character counts. Unfortunately, this means it is easy to hide the true destination until the person clicks the link and lands on a malicious page. It is essential to check the URL bar in the browser to ensure you are where you want to be.

3) Be aware of what information you make public
Social media is a treasure trove of personally identifying information. Attackers don’t even need to really phish for it since there are some nefarious techniques they can employ, like utilizing memes and social media response posts. For example, a post may ask for three pieces of information about you to generate your “Hollywood nickname”: your first pet’s name, your high school’s first word, and the name of the street you grew up on. You might end up with something like “Fluffy North Oak”. Amusing? Sure. But those three words are partial answers to commonplace security questions that grant access to bank accounts, corporate IT systems, and other valuable entities, as well. If the attacker knows that information about you, they may be able to thwart one more layer of IT security.

Avoiding attacks on the phone…

1) Know the right number
Phone- and voice-based phishing tends to rely heavily on high pressure tactics and smooth talking. If you get a call you’re not expecting from someone you don’t know, you should immediately be on your guard. If someone calls claiming to be from your credit card company, do not give them any important information. Tell them you will call back. You should then look up the correct number on their website or your bill and call that number to avoid connecting to a fraudster. If the other party then insists you talk to them during this call or that they call you back, then there is a good chance they are not actually an employee of that company.

2) Be wary of driving callers
Driving callers are those that keep pushing you to answer. This type of caller will encourage you to do something and may even become angry if you do not comply. Many people, to restore social cohesion, will comply. That can quickly lead to divulging personal information. If someone is pressuring you on the phone, you should be very wary of giving them the information they want.

They might make claims like they are government officials investigating a case, that you owe their company money for some obscure subscription you supposedly bought years ago, and other high-pressure scenarios. Conversely, they may try to use other tactics like guilt. They may state that if they do not resolve this issue with you, right here and right now, they will be fired or not have enough in their next paycheck for rent. Don’t fall for these tactics and remain alert.

Follow your instincts
If your gut is telling you that a situation feels off, then listen to it. Always do your due diligence to stay safe online and before you share personal information. This can’t be said enough – if something seems like it’s too good to be true, then it probably is.

April 1, 2019

Phishing, Part 1

Phishing, Part 1

If you’ve ever peeked in your spam folder, you’ve probably noticed multiple emails from people claiming all sorts of nonsensical and unbelievable things.

It is not recommended that you open these emails, but be aware they most likely contain links that will claim to send you to a particular webpage but in fact will send you elsewhere.

This is an example of “phishing”, and thanks to advanced spam filtering today, you may never have to deal with these kinds of threats directly. But there are other kinds of phishing you should be aware of.

What is phishing?
Phishing is the act of looking for individuals who are willing to hand over their important personal information. One technique is to use a “shotgun approach”, where the phisher attempts to contact as many people as possible. General phishing like this relies on large numbers: Even if the probability that someone would actually give their information to a phisher is something like 0.001%, if the attack vector reaches 100,000 people – which isn’t unusual – there is that chance there will be at least one victim.

Phishing can also be targeted, in which the attacker directs the strike against a particular individual. This type of attack usually involves employees of an organization or high-ranking officials, as these targets are the most valuable. This kind of phishing often requires a degree of social engineering as well, wherein the phisher may appeal to various tactics to gain information. They may pose as coworkers or customers who have lost their passwords, for example, or they may try to subtly encourage the victim through conversation.

An example of conversational phishing may unfold as follows:

Through a seemingly normal conversation with a stranger, the attacker volunteers information about their own (fictitious) children, then asks the victim about their children. To follow social norms and reciprocate, the target may provide information like school holidays, partial names, or even birthdates. This may be inadvertent, like mentioning their child recently had a birthday party. School holidays can be cross-referenced against nearby school districts to potentially find the school the victim’s children attend. Once neighborhoods are determined, this could connect to full names or addresses of the victim. And since names and birthdates are still used by many people as passwords (not recommended), this could be a lead for the phisher. Armed with passwords, addresses, birthdates, and names, a lot of damage can potentially be done.

Phishing and hacking
Since high-value targets are more likely to be educated in internet security and less likely to fall for simple spam email attacks, phishers may use more subtle tactics. These kinds of attacks usually occur against people at work. A lot of IT security relies on trust, since employees need to be able to access the systems to do their work. If someone’s credentials are compromised, though, the person who has those credentials can potentially infiltrate the IT system. This is how a lot of “hacking” is perpetrated. Certainly there are plenty of attacks against software code, but if an insider can be compromised, it may be quicker, easier, and less detectable than finding a hole in the system’s security. So phishing is a prime tool for hackers, simply because humans are more easily hacked emotionally and psychologically than IT systems with established electronic security measures.

Most people should already be aware of shady tactics a phisher might use to gain access to sensitive information – but if these attacks didn’t work, no one would use them. So someone out there must be falling victim. Make sure it isn’t you.

March 27, 2019

Emergency Fund Basics

Emergency Fund Basics

Unexpected expenses are a part of life.

They can crop up at any time and often occur when you least expect them. An emergency expense is usually not a welcome one – it can include anything from car repairs to veterinary care to that field trip fee your 12 year old informed you about the day of. So, what’s the best way to deal with those financial curve balls that life inevitably throws at you? Enter one of the most important personal financial tools you can have – an emergency fund.

What is an emergency fund?
An emergency fund is essential, but it’s also simple. It’s merely a stash of cash reserved solely for a financial emergency. It’s best to keep it in a place where you can access it easily, such as a savings account or a money market fund. (It also might not hurt to keep some actual cash on hand in a safe place in your house.) When disaster strikes – e.g., your water heater dies right before your in-laws arrive for a long weekend – you can pull funds from your emergency stash to make the repairs and then feel free to enjoy a pleasant time with your family.

Some experts recommend building an emergency fund equal to about 6-12 months of your monthly expenses. Don’t let that scare you. This may seem like an enormous amount if you’ve never committed to establishing an emergency fund before. But having any amount of money in an emergency fund is a valuable financial resource which may make the difference between getting past an unexpected bump in the road, and having long term financial hindrances hanging over you, such as credit card debt.

Start where you are
It’s okay to start small when building your emergency fund. Set manageable savings goals. Aim to save $100 by the end of the month, for example. Or shoot for $1,000 if that’s doable for you. Once you get that first big chunk put away, you might be amazed at how good it feels and how much momentum you have to keep going.

Take advantage of automatic savings tools
When starting your emergency fund, it’s a good idea to set up a regular savings strategy. Take a cold, hard look at your budget. Be as objective as possible. This is a new day! Now isn’t the time to beat yourself up over bad money habits you might have had in the past, or how you rationalized about purchases you thought you needed. After going through your budget, decide how much you can realistically put away each month and take that money directly off the top of your income. This is called “paying yourself first”, and it’s a solid habit to form that can serve you the rest of your life.

Once you know the amount you can save each month, see if you can set up an automatic direct deposit for it. (Oftentimes your paycheck can be set to go into two different accounts.) This way the money can be directly deposited into a savings account each time you get paid, and you might not even miss it. But you’ll probably be glad it’s there when you need it!

Don’t touch your emergency fund for anything other than emergencies
This is rule #1. The commitment to use your emergency fund for emergencies only is key to making this powerful financial tool work. If you’re dipping into this fund every time you come across a great seasonal sale or a popular new mail-order subscription box, the funds for emergencies might be gone when a true emergency comes up.

So keep in mind: A girls’ three day weekend, buying new designer boots – no matter how big the mark-down is – and enjoying the occasional spa day are probably NOT really emergencies (although these things may be important). Set up a separate “treat yourself fund” for them. Reserve your emergency fund for those persnickety car breakdowns, unexpected medical bills, or urgent home repairs.

The underpinning of financial security
An emergency fund is about staying prepared financially and having the resources to handle life if (and when) things go sideways. If you don’t have an emergency fund, begin building one today. Start small, save consistently, and you’ll be better prepared to catch those life-sized curve balls.

March 25, 2019

Credit unions: What you should know

Credit unions: What you should know

If you’ve always used the services of a traditional bank, you might not know the ins and outs of credit unions and if using one might be better for your financial situation.

Credit unions are generally known for their customer-focused operations and friendliness. But the main difference between a bank and a credit union is that a credit union is a nonprofit organization that you have to be a member of to participate in its services. Credit unions may offer higher interest rates and lower fees than banks, but banks may provide more services and a greater range of products.[i]

Read on for some basics about what you should know before you join one.

Protection and insurance
Just like banks, your accounts at a credit union should be insured. The National Credit Union Share Insurance Fund (NCUSIF) functions to protect consumer deposits if the credit union becomes insolvent. The fund protects up to $250,000 per customer in deposits.[ii] Be sure the credit union you select is backed by the NCUSIF.

What credit union is best for you?
Today there are many credit unions available. Many now offer 100 percent online banking so you may never need to visit a branch at all.

The most important feature in selecting a credit union is to make sure they meet your personal banking needs and criteria. Here are a few things to consider:

  • Does the credit union offer the products and services you want? Can you live without the ones they don’t?
  • Do they have competitive interest rates when compared to banks?
  • Are the digital and online banking features useful?
  • What are the fee schedules?
  • What are the credit union membership requirements? Do you qualify for membership?

Take your time and do some research. Credit unions vary in the services provided as well as the fees for such services.

What to expect when opening a credit union account
Each credit union may have slightly different requirements when opening an account, but in general, you will most likely need a few things:

Expect to complete an application and sign documents. When opening a credit union account, you will likely have to fill out some forms and sign other paperwork. If you don’t understand something you are asked to sign, make sure you get clarification. Be prepared to show identification. You will likely be asked to show at least two forms of identification when opening an account. Your credit union will also probably ask for your social security number, date of birth, and physical address. Be prepared to show proof of your personal information.

Make the required opening deposit. On the day you open your credit union account, you’ll likely be asked to make an opening deposit. Each credit union may have a different minimum deposit required to open the account. It could be up to $100 (or more), but call the credit union to make sure.

Unique benefits
Credit union accounts offer some unique advantages for members. You may enjoy more comfortable access to personal loans or even auto financing and mortgages. Credit unions may offer other perks such as fee waivers, as well as discounts on other products and services that come from being a member.

If participating in a customer-owned bank sounds interesting to you, a credit union may be a good option. There are more credit unions available today than ever. Do your research. You may find an option that compares to your current bank, but offers some greater benefits that will make it worth the switch.


This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Any examples used in this article are hypothetical. Before investing or enacting a savings or retirement strategy, seek the advice of a licensed financial professional, accountant, and/or tax expert to discuss your options.

[i] https://www.creditkarma.com/advice/i/difference-between-credit-union-and-bank/
[ii] https://www.ncua.gov/support-services/share-insurance-fund

March 13, 2019

Dollar Cost Averaging Explained

Dollar Cost Averaging Explained

Most of us understand the meanings of “dollar” and “cost”, and we know what averages are…

But when you put those three words together – dollar cost averaging – the meaning may not be quite as clear.

Dollar cost averaging refers to the concept of investing on a fixed schedule and with a fixed amount of money. For example, after a careful budget review, you might determine you can afford $200 per month to invest. With dollar cost averaging, you would invest that $200 without regard to what the market is doing, without regard to price, and without regard to news that might impact the market temporarily. You become the investment equivalent of the tortoise from the fable of the tortoise and the hare. You just keep going steadily.

When the market goes up, you buy. When the market goes down, you can buy more.

The gist of dollar cost averaging is that you don’t need to be a stock-picking prodigy to potentially succeed at investing. Over time, as your investment grows, the goal is to profit from all the shares you purchased, both low and high, because your average cost for shares would be below the market price.

Hypothetically, let’s say you invest your first $200 in an index fund that’s trading at $10 per share. You can buy 20 shares. But the next month, the market drops because of some news that said the sky was falling somewhere else in the world. The price of your shares goes down to $9.

You might be thinking that doesn’t seem so great. But pause for a moment. You’re not selling yet because you’re employing dollar cost averaging. Now, with the next month’s $200, you can buy 22 shares. That’s 2 extra shares compared to your earlier buy. Now your average cost for all 42 shares is approximately $9.52. If your index fund reaches $10 again, you’ll be profitable on all those shares. If it reaches $12, or $15, or $20, now we’re talking. To sum up, if your average cost goes up, it means your investment is doing well. If the price dips, you can buy more shares.

Using dollar cost averaging means that you don’t have to know everything (no one does) and that you don’t know for certain what the market will do in the next day, week, or month (no one does). But over the long term, we have faith that the market will go up. Because dollar cost averaging removes the guesswork involved with deciding when to buy, you’re always putting money to work, money that may provide a solid return in time.

You may use dollar cost averaging with funds, ETFs, or individual stocks, but diversified investments are potentially best. An individual stock may go down to zero, while the broad stock market may continue to climb over time.

Dollar cost averaging is an important concept to understand. It may save you time and it may prevent costly investment mistakes. You don’t have to try to be an expert. Once you understand the basics of dollar cost averaging, you may start to feel like an investment genius!


Market performance is based on many factors and cannot be predicted. This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Examples used in this article are hypothetical. Before investing or enacting a savings or retirement strategy, seek the advice of a licensed financial professional, accountant, and/or tax expert to discuss your options.

March 11, 2019

Does healthy living have to cost more?

Does healthy living have to cost more?

Many of us may be chair-bound during the workday and may come home lethargic and sluggish – seeming results of a sedentary lifestyle and some potentially unhealthy habits of office life.

You might be itching to break this cycle and establish some healthier habits for yourself, but you don’t want to break your budget either.

If you’re interested in improving your healthy habits – but aren’t interested in spending a lot of money to do it – read on!

Getting more exercise
Many people equate maintaining a regular exercise regimen with an expensive gym membership, but you don’t have to have one to exercise. One can perform body-weight exercises just about anywhere, so getting in some sit ups, push ups, squats, and a brisk jog can be free of charge. Other body-weight exercises, like pull-ups, may require finding a place to do them, but all one needs is a horizontal bar. This can range from a sturdy tree limb to the monkey bars at the playground.

Not sure where to begin? There are a myriad of free videos and programs online for all ages, goals, and body types. (As always, get your doctor’s approval before starting any exercise program.) If an exercise program is all new to you, you might want to start with only 10-15 minutes, then work up from there.

It does require forming a habit to establish a regular exercise routine. For that reason, it’s a good idea to build exercise into a part of your day. That way, a sense of something missing may arise when the exercise is not completed, which can be a motivation to get the workout in.

Eating healthy
This one may be a little harder to solve than the exercise issue, because saving money on your food bill may require a bigger time commitment than you’re used to, with additional shopping and food preparation. The good thing about fruits and vegetables is that many of them can be eaten raw with minimal prep time.

Internet shopping provides a myriad of resources for finding good deals for nutritious foodstuffs. If you’re feeling more adventurous and don’t mind getting your hands dirty, there may also be a local communal garden[i] in your area. Some apartment complexes offer their roofs to be used as gardens, and for those with no other options, growing right in your high-rise apartment is feasible[ii]. One of the best parts about gardening? It may give you some exercise in the process.

Unfortunately, most people can’t raise their own livestock, so for meat (and alternative protein sources) online delivery is an option, as well as shopping sales and using coupons at your local grocery store.

If all of this seems like too great of a commitment (admittedly it may take some extra work), there are other ways to start the journey without running headlong into an agricultural venture. Simply avoiding processed and fast foods is a start, as these options can be more expensive and may offer less in the way of solid nutrition. And if you find the “healthy” option too bland, make a pledge to yourself to stick with it until your taste buds become accustomed to the new foods, or experiment with spices and herbs to increase the flavor intensity.

Eating healthy and beginning an exercise program certainly demand a degree of attention and commitment, but they do not always require a lot of money. Regardless of what advertisers want you to believe, it is possible to stay in shape without a gym membership or expensive home gym equipment, and you can eat healthy without spending a week’s paycheck in the grocery store’s organic aisle.


[i] https://www.organics.org/get-your-neighborhood-growing-how-to-start-a-communal-community-garden/
[ii] https://dengarden.com/gardening/edible-plants-you-can-grow-in-your-apartment

March 6, 2019

Back to the basics

Back to the basics

It seems many of us can over-complicate how to achieve good financial health and can make the entire subject much harder than it needs to be.

Despite what you might read in books, hear on television, or see on blogs and websites, good financial health can be simple and sustainable.

Some of the following basic principles may require a paradigm shift depending on how you’ve thought about finances and money in the past, or if you have current not-so-great habits you want to change. Hang in there!

Let’s start with frugality.

Retail therapy may not always be good therapy
One of the biggest financial pitfalls we may get into is believing that money will make us happy. To some degree, this may be true. Stress over finances can rob us of peace of mind, and not having enough money to make ends meet is a challenging – sometimes even difficult – way to live. Still, thinking that more money will alleviate the stress and bring us more happiness is a common enough trap, but it doesn’t seem to usually pan out that way.

Get yourself out of the trap by reminding yourself that if you don’t have a money problem, then don’t use money to solve it. The next time you’re tempted to do some indiscriminate “retail” therapy, think about why you’re doing what you’re doing. Do you truly need three new shopping bags of clothes and accessories or are you trying to fill some other void? Give yourself some space to slow down and think it over.

Build a love for do-it-yourself projects
Any time you can do something yourself instead of paying someone to do it for you should be a win. A foundation of frugality is to keep as much of your income in your pocket as possible. Learning to perform certain tasks yourself instead of paying someone to do them for you may save more money.

Do-it-yourself tasks can include changing the oil in your car, mowing your grass, even doing your taxes. The next time you’re about to shell out $50 (or more) to trim the lawn, consider doing it yourself and saving the money.

Curb your impulse buying habit
An impulse buying habit can rob us of good financial health. The problem is that impulse purchases seem to be mostly extraneous, and they can add up over time because we probably don’t give them much thought. A foundational principle is to try to refrain from any impulse buying. Get in the habit of putting a little pause between yourself and the item. Ask yourself if this is something you actually need or just want. Another great strategy to combat impulse buying is to practice the routine of making a shopping list and sticking to it.

It may take some time and effort to retrain yourself not to impulse buy, but as a frugal foundational principle, it’s worth it.

Build your financial health with simple principles
Achieving an excellent financial life doesn’t have to be complicated or fancy. Mastering a few foundational principles will help ensure your financial health is built on a good, solid foundation. Remember that money isn’t always the solution, aim to keep as much of your income as possible and stay away from impulse buying. Simple habits will get you on the road to financial health.

A fresh perspective, a little commitment, and some discipline can go a long way toward building a solid financial foundation.

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