WOMEN AT THE WELL WEDNESDAYS

Recently I received some solid financial advice from a friend of mine who is a financial coach. When discussing with her the biggest money mistakes, she brought up some great points that I had to share with you.  Enjoy.!

1-GET OUT OF DEBT

Write (yes get out the pen and paper-your worst pen is better than your best memory) everything down that is spent on a monthly basis.

1. Debt payments (credit cards, mortgage payment, car payments, personal loans)


2. Living expenses- These are the bills that are paid every month that never go away such as phone, cable, electric/heat, groceries, gas, extracurricular activities like going out to dinner.

It takes 21 days to form a habit this will be hard fo most people to do but it must be done.  It will be an eye opener many people find that they are spending hundreds of dollas on misc. stuff like coffee –for example $2.00 a day for a coffee 5 times a week is $40.00 per month.

Writing things down will allow people to make small adjustments that will help them save for their future, or even free up money on a monthly basis.

Learn to debt stack.  Most people pay down their debt by paying a little extra on each debt they have; that’s is the wrong way to do it.  It is not quick or efficient. People need to pay as much as they can on one debt and the minimums on the rest of their debts until the first card/loan is paid off. Then take the money that they were using for the first debt and apply it to the next debt.  THE BEST WAY TO DO THIS IS TO HIRE A PROFESSIONAL TO HELP.

2. GET ADEQUATE INSURANCE

Make sure your family is properly protected.  What is a family’s greatest asset? THEIR ABILITY TO PRODUCE INCOME. Most people don’t realize the value of Life Insurance.  They sometimes do not see the need for it, maybe they just never get around to it, or they don’t think that they can afford it, but the question is, what would happen if the breadwinner has passed away? Could the family survive without that income? Or what about me, the stay at home mom if she passed away? Would her husband be able to pay for daycare?  Term insurance is very affordable and really if we can afford $10.00 a week on coffee, I am sure we can find the money for peace of mind having insurance.

3. ACCUMULATE ASSETS NOT LIABILITIES

Invest in things (assets) that will create a profit for the future such as stocks, bonds, mutual funds, or a home, rather than purchasing liabilities such as cars, clothes “the feel good” things in life.

4. GET A GAME PLAN

Most people don’t plan on failing financially; they just don’t have a plan to get them to all their goals and dreams.  Finally, hire a financial coach to help you overcome the obstacles that come with all things finances.  The financial coach can help navigate through and get you on the best track for you.

PS… ALL MY LOCAL FRIENDS- If you would like to meet up with my financial coach- let me know and I can get you her info!

With love and gratitude,

Wendy