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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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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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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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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“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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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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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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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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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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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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There’s a scene in the new documentary The Beatles: Get Back that’s a masterclass in creativity.

Paul McCartney sits down in front of his massive amplifier, bass in hand. The Beatles are approaching a deadline, and they need new songs. Fast.

He starts strumming and humming. No words. Just fragments, ideas.

The other Beatles stare blankly. Just another day in the studio. George Harrison yawns.

Slowly, an opening hook emerges. “Yayayayaya gonna last.” It’s the melody of their soon-to-be smash hit “Get Back.” Before long, McCartney is yelping the chorus as the other Beatles join in.

No flashes of lightning. Not even a lightbulb. Just some good old fashioned trial and error.

He cycles through dozens of melodies that don’t work. McCartney could have easily thrown in the towel. Instead, he just sits there, testing idea after idea until he stumbles upon something that works. Something iconic.

The takeaway? When you’re creating, you’re going to come up with some not-so-great ideas. Expect them. Embrace them. Get them out of your system. But keep testing ideas until you find the one that clicks.

It’s not a comfortable process. But it gets easier. Remember, Paul McCartney had written hundreds of songs in the years before “Get Back.” He knew from experience that he needed to sit down and work through all the duds before he could uncover a smash hit.

So the next time a situation demands your creativity, do it the McCartney way. Start throwing ideas out there. Who knows—you might stumble upon greatness.

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Ever wish you could travel the world AND earn a living at the same darn time?

Of course! Building a digital income source under the shadow of the Eiffel Tower, in a cozy cabin in the Alps, or among majestic Sequoia trees sounds like a dream.

But it’s becoming a reality for many. Think about the travel influencers you follow, or your college friends sitting on a beach with their laptops enjoying a beer. They’re all digital nomads.

You’re not imagining things—digital nomadism has exploded since the COVID-19 pandemic first began, growing 49% from 2019 to 2020.¹

If you’re considering ditching the cubicle for the open road, here are a few key facts and figures you should know!

83% of digital nomads are self-employed.² The majority of self-employed nomads are entrepreneurs (66%), while the remainder are freelancers (34%). It’s not impossible to work and travel while keeping your day job. But there’s a clear connection between the independence of the road and owning your own business.

49% of digital nomads earn the same income or more as their office job.³ In addition, digital nomads often enjoy a lower cost of living. With the wonders of Wifi, they can host meetings with clients in the US and Europe while enjoying lower cost locations like South America or South East Asia.

80% of digital nomads prefer to stay in one place for 3 to 9 months.⁴ It’s no wonder—setting up shop in one location can help nomads establish routines and boost their productivity. Plus, it’s the best way to truly soak in a new culture and experience.

The #1 reason digital nomads return home is loneliness.⁵ Distance from family and old friends can become hard to cope with. And finding community among an ever-shifting sea of locations and new acquaintances can be even harder. It’s the reason why nomads have established co-working spaces around the world. They serve as hubs for nomads to socialize and build friendships.

Time will tell if digital nomadism is a pandemic fad or a seismic shift in how we work. But if you’ve longed for a work/travel lifestyle, there’s never been a better time to make it happen.

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Have you ever opened up your garage and thought “YIKES!!!”?

As the door creaks open, it slowly reveals a maze of tools, trinkets, pictures, memorabilia, and, if we’re honest, straight up junk.

It’s a disaster. A catastrophe. Stressful. And it could make you a whole lot of money.

Here’s how…

Step 1: Take inventory of your stuff. From ball bearings to Beanie Babies to unused tools to picture frames, create a list of everything that’s cluttering your home.

Be ruthless. If you haven’t used something for years or it’s stressing you out, put it on the list. Be as specific as possible about features, condition, and age.

Then, search for similar items on Craigslist and eBay. Tally the prices next to the items on your inventory. Add the numbers together. That total is how much you stand to make (minus expenses) if you play your cards right. You might be surprised by how high the number actually is!

Step 2: Sell it all. You have a few avenues available for monetizing everything…

Garage sale. This is the simplest way to sell your stuff FAST. Put up a sign, organize everything as best as possible, and get ready for a hectic morning!

While a garage sale can liquidate your clutter in record time, you’ll almost certainly sell your goods for much less than what they may be worth. Garage sales attract every spendthrift and penny pincher for miles around. They’ll expect bargains, and it’s best to give them what they want!

Online marketplaces. This is your best option for truly competitive prices. That’s because it broadens your potential customer base across the country. And in that expanded customer base are some… how to say this…. devoted collectors.

Those books from the thrift store you bought for $3 on a whim? They’re part of an obscure sci-fi trilogy with a fanatical—and well-paying—fanbase.

That bedside table your great uncle left you? It’s exactly what a local mom with an eye for antiques needs to complete the guest bedroom.

And yes, the ridiculous toy collection from your grandparents that you never opened is now worth a fortune.

Just be warned that every online marketplace is different. Some will charge for creating a listing, others will want a slice of the profits. Social media platforms and groups are excellent places to reach local customers. Decide which platform works best for you, see how items are priced, and start selling!

Step 3: Reap the rewards wisely. Remember, getting rid of your stuff isn’t going to be free. By this time, you’ve committed a chunk of your energy and time to monetizing your mess. The money you earn isn’t a random windfall—it’s the result of your hard work.

Whatever you earn, commit it towards your existing financial goals, like…

- Eliminating debt

- Saving for retirement

- Buying a new home

And just like that, you’ve turned your mess into money and your stress into confidence. It’s a feeling that’s worth more than anything sitting in your garage.

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Have you noticed that store shelves are looking a little… picked over?

Everything from food to toys to computer chips are in short supply and high demand. And it’s straining economies—and consumers—the world over.

The cause? The Pandemic (big surprise).

The results? Empty shelves and skyrocketing prices.

Here’s what happened. The COVID-19 pandemic and shutdowns torpedoed both supply AND demand. Factories couldn’t produce due to COVID restrictions, and consumers weren’t going out and shopping.

As lockdowns ended, people resumed their shopping, increasing demand. But manufacturers have struggled to regain their footing.

They face basic logistical problems like a lack of shipping containers.

Even more problematic, the entire supply chain is short-staffed. Docks don’t have enough workers to move goods off ships. But it wouldn’t make a difference if they did—there aren’t enough truckers to transport goods from docks to stores!

All of those issues result in empty shelves and higher prices as consumers scramble to snatch up what little is available.

So how can you minimize the impact of the supply chain meltdown on your wallet? Here are three strategies…

Start holiday shopping ASAP. Gift buying season is here. And with the supply chain in chaos, holiday shopping will only grow more expensive. Get gifts sooner rather than later.

Adjust your budget. That means shifting spending power away from experiences, restaurants, and new gadgets—and towards living expenses.

Increase your income. If shifting your budget isn’t enough, it may be time to boost your income. Seek out new opportunities like a new job or a side hustle to help give your cash flow a bump.

And remember—these supply problems may linger. The global supply chain is a complex beast, and it won’t resolve its issues overnight.

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There’s a good chance that you’re facing a financial obstacle right now.

Maybe you’re trying to pay down some credit card debt, facing a meager retirement fund, or just struggling day-to-day to make ends meet.

It’s easy to feel overwhelmed and helpless in those situations, so much so that you might think learning a little more about how to manage your money wouldn’t make much difference right now.

But adopting a few key financial tips is often the best and simplest step towards taking control of your paycheck and finding some peace of mind. Here are some reasons why financial literacy is an essential skill for everyone to master, and a few tips to help you get started!

It helps you overcome fear. Let’s face it; money can seem scary. Mounting loans, debt, interest, investing—it can all be confusing and overwhelming. It may feel easier to ignore your finances and live paycheck to paycheck, never owning up to not-so-great decisions. But financial literacy gets right to the root of that fear by making things clear and simple. It empowers you to identify your mistakes and shows options to fix them.

Facing a problem is much easier once you understand it and know how to beat it. That’s why learning about money is so important if you want to start healing your financial woes.

It lets you take control of your finances. Financial literacy does more than just help you address problems or overcome obstacles. It gives you the power to stop being a victim and take control. You can start investing in your future with confidence instead of reacting to emergencies or going into deeper debt. That means building wealth and living life on your terms instead of someone else’s. In other words…

It helps you realize your dreams. Managing money isn’t about immediately seeing a bigger number in your bank account. It’s about having the resources and freedom to do the things you care about. Maybe that means taking your significant other on a dream vacation, giving more to a cause you care about, or providing your kids with a debt-free education.

Where to start. Acknowledging that you need to learn more can be the hardest step. That’s why meeting with a financial advisor is something you may consider. Calculate how much you spend versus how much you make and write down some financial goals. Then find a time to discuss your next steps. You may also want to sign up for a personal finance class that will cover things like budgeting and saving.

Financial literacy is one of the most important skills you can develop. Improving your financial education takes some time but it doesn’t have to be difficult. Give me a call. I’d love to sit down and help you learn more about ways you can take control of your future!

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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.

When it comes to building retirement wealth, however, it’s best to imitate the early worm. So grab a cup of joe—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’s aggressive is simply not feasible for a majority of North Americans. Over half of Americans are just getting by, living paycheck-to-paycheck.¹ 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 $500,000 term life insurance policy would cost for a healthy 30-year-old?

$33 per month.² 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!

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Postcard-worthy sunsets. Fascinating cultures and customs. Exotic people and maybe even a new language to learn – at least enough to order food, pay for souvenirs, and find the nearest bathroom.

Travel can leave us with some amazing memories and lead us to grow simply by being exposed to different ways of seeing the world. It’s also fraught with peril, as many have learned over the last year and half of lockdowns, COVID tests, and closed borders. Travel insurance has the potential to provide protection if the daydream turns into a nightmare in a number of ways.

An auto or life insurance policy is designed to provide a limited set of coverages, making the policies fairly easy to understand. Travel insurance, by comparison, can cover a wide range of unrelated risks, making the coverage and its exclusions a bit more difficult to follow. Depending on your travel insurance provider, your travel insurance may cover just a few risks or a wide gamut of potential mishaps.

So how do you know what kind of travel insurance you should purchase? Read on…

Trip Cancellation Insurance
One of the most basic and most commonly available coverage options, trip cancellation insurance provides coverage to reimburse you if you are unable to take your trip due to a number of possible reasons, including sickness or a death in the family. Cancellations for reasons such as a cruise line going bust or your tour operator going out of business are also typically covered.

Additionally, if you or a member of your party becomes ill during the trip, trip cancellation insurance may reimburse you for the unused portion of the trip. Some trips you book will allow cancellation with full reimbursement (within a certain timeframe) for any reason, whereas some trips only allow reimbursement for medical or other specific reasons – make sure you check the travel policy for any limitations before you purchase it.

Baggage Insurance
Your travel daydreams probably don’t include lost baggage or theft of personal items while abroad – but it happens to travelers every day. Baggage insurance is another common coverage found bundled with travel insurance that provides protection for your belongings while traveling.

If you already have a homeowners insurance or renters insurance policy, it’s likely that you already have this coverage in place. As a caveat, homeowners insurance and renters insurance policies typically limit the coverage for certain types of items, like jewelry, and may only pay a reduced amount for other types of items. Home insurance policies also have a deductible – typically $1,000 or more – that should be considered when deciding if you should purchase baggage insurance with your travel insurance.

Emergency Medical Coverage
Most people don’t know if their health insurance will cover them internationally – it could be that your policy does not protect you outside of the country. Accidents, illness, and other conditions that require medical assistance are border-blind and can happen anywhere, leaving you wondering how to arrange and pay for the medical attention that could be needed by you or your family. Travel health insurance can cover you in these instances and is often available as a stand-alone policy or bundled as part of a travel insurance package.

Accidental Death Coverage
Often bundled as a tag-along coverage with travel health insurance, accidental death coverage provides a limited benefit for accidental death while traveling. If you already have a life insurance policy, accidental death coverage may not be needed – and chances are good that your life insurance policy has fewer limitations and provides a higher death benefit for your named beneficiaries or loved ones.

Other Travel Coverages
A number of other options are often offered as part of travel insurance packages, including missed connection coverage, travel delay coverage, and traveler assistance. Another coverage option to consider is collision and comprehensive coverage for rented cars. Car accidents are among the leading types of mishaps when traveling. Typically, a personal car insurance policy will not cover you for vehicle damage, liability, or medical expenses when traveling abroad.

When you’re ready to cross “See the Seven Wonders of the Modern World” off your bucket list, consider travel insurance. It may provide some relief so you can concentrate on the important things, like making sure you bring the right foreign plug adapter for your hair dryer.

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If you’re young, you may not be thinking you need life insurance yet. But life insurance isn’t something only for your parents or grandparents.

Even if you have a free life insurance policy through your employer, you may not have as much coverage as you need.

There are many great reasons to buy life insurance – and a lot of those great reasons are even better reasons for young people.

So, read on for a little illumination about why you are not too young for life insurance. If you have dependents, life insurance is a must.

Take a moment and think about who depends on you and your income for their well-being. You may be surprised.

Most of us think immediately of children, but dependents can include your parents, siblings, a relative with a disability, or even a significant other. A solid life insurance policy can protect the people that count on you.

What would they do without your financial help? A life insurance policy can ensure they are protected if something were to happen to you.

The older you get, the more life insurance costs. From a simple, cost/benefit perspective, the best time to buy life insurance is when you are young. That’s when it’s the most affordable. As you age (i.e., become more likely to suffer from accident or illness), the cost of the policy will most likely go up. So buying a life insurance policy while you’re young may save you money over the long term.

Your employer-provided life insurance may be problematic. Getting life insurance through your employer is a great benefit (you should take advantage of it if it’s free).

But it may present some problems. One of the drawbacks is that this type of life insurance policy doesn’t go with you when you leave the company. That may be a challenge for young people who are moving from company to company as they climb the career ladder.

Second, employer-sponsored life insurance may simply not be enough. Even dual-income couples with no dependents should consider purchasing individual policies. Keep in mind that if one of you passed away, would the other afford to maintain your current lifestyle on a single income? Those “what if?” scenarios may be uncomfortable, but they are the best way to determine how much life insurance you need.

You’re never too young to think about your legacy. It’s not too soon to think about this. Did you know a life insurance policy can provide a lump sum to an organization you select, not just to a family member or other beneficiary? A life insurance policy can allow you to leave a meaningful legacy for the people or causes you care about. When it comes to buying life insurance, generally the younger you are when you start your policy, the better off you’re going to be.

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Access to affordable, complete care can be a challenge for many adults.

If you are someone who is living with a disability, you need to know that you will have access to the care you need now and in the future. You also need to know that you and your family will be able to afford these options. So, how can you do both and give yourself some peace of mind? You can get started by completing these crucial health care and financial planning steps.

Verify Your Medicare Eligibility If you’re approaching your 65th birthday, you should begin researching your Medicare options right now. This way, you can better understand the various Medicare parts and the coverage offered by each and make an informed decision during the next enrollment period. Even if you are not an older adult, you should still research your Medicare eligibility since your disability may still qualify you for coverage before the age of 65. You should also research whether a Medicare Advantage plan is the right choice for you. Aetna and other insurers offer MA plans which can provide additional benefits for dental, vision, hearing, and prescription drugs.

Check for Medicaid Coverages Depending on your income, you may also want to look into your Medicaid eligibility. This program differs from Medicare in that there are no age requirements. Those who are enrolled in Medicaid-sponsored insurance can take advantage of free healthcare services or may only need to pay small premiums each month to have access to care. You do need to meet certain financial requirements to be eligible for Medicaid, however, so this may not be an option for everyone. If it is, though, it can be a major boost to limited incomes.

Research Other Health Options For those living with disabilities who are not Medicare or Medicaid eligible, finding the right health insurance coverage is important for financial security. If you work, you should check with your employer about insurance offerings, since these plans tend to be more affordable. You can also research plans and enroll using the Health Insurance Marketplace but be sure to do so during annual enrollment periods, which tend to run from November to early December. Otherwise, you will need to wait another year to get coverage.

Plan for Long-Term Care Needs One aspect of care that many people forget to plan for is long-term care. This is an important need to consider, especially since the need for long-term care is so prevalent in later life. To make sure you can afford the care you need in the future, you should research insurance options and think about other ways you can plan to cover long-term care expenses, such as putting additional funds into savings or leveraging your home’s value to pay for care. By thinking about your long-term care needs now, you can also research the cost of different types of long-term care, such as assisted living communities and skilled nursing homes.

Consider End-of-Life Expenses Last but certainly not least, you have to think about how your family’s financial needs will be met when you are no longer around. Because thinking about death can be unsettling, many people forget to plan for final expenses. That often leaves loved ones struggling to cover funeral costs and pay any outstanding debts — and all in their time of grief. You can save your family this heartache by planning ahead for expenses after death. At the very least, you should have enough life insurance to pay off major debts and help with burial costs. To provide even more financial peace of mind, you should also look for additional insurance options, like burial plans.

Planning for your future health care costs isn’t just about preserving your access to care. It’s also about preserving your family’s access to the financial resources they need to survive and thrive, even if you can no longer provide those resources. By taking the time and effort to map out your finances in relation to your care needs, you are taking the initiative to fully protect the health and well-being of the people you love, as well as your future self.

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A full third of Americans believe that winning the lottery is the only way they can retire.¹

What? Playing a game of chance is the only way they can retire? Do you ever wonder if winning a game – where your odds are 1 in 175,000,000 – is the only way you’ll get to make Hawaiian shirts and flip-flops your everyday uniform?

Do you feel like you might be gambling with your retirement?

If you do, that’s not a good sign. But believing you may need to win the lottery to retire is somewhat understandable when the financial struggle facing a majority of North Americans is considered: 77% of millennials are living paycheck-to-paycheck, as are nearly 40% of Americans earning over $100,000.²

When you’re in a financial hole, saving for your future may feel like a gamble in the present. But believing that “it’s impossible to save for retirement” is just one of many bad money ideas floating around. Following are a few other common ones. Do any of these feel true to you?

Bad Idea #1: I shouldn’t save for retirement until I’m debt free.
False! Even as you’re working to get out from under debt, it’s important to continue saving for your retirement. Time is going to be one of the most important factors when it comes to your money and your retirement, which leads right into the next Bad Idea…

Bad Idea #2: It’s fine to wait until you’re older to save.
The truth is, the earlier you start saving, the better. Even 10 years can make a huge difference. In this hypothetical scenario, let’s see what happens with two 55-year-old friends, Baxter and Will.

• Baxter started saving when he was 25. Over the next 10 years, Baxter put away $3,000 a year for a total of $30,000 in an account with an 8% rate of return. He stopped contributing but let it keep growing for the next 20 years.
• Will started saving 10 years later at age 35. Will also put away $3,000 a year into an account with an 8% rate of return, but he contributed for 20 years (for a total of $60,000).

Even though Will put away twice as much as Baxter, he wasn’t able to enjoy the same account growth:

• Baxter would achieve account growth to $218,769.
• Will’s account growth would only be to $148,269 at the same rate of return.

Is that a little mind-bending? Do we need to check our math? (We always do.) Here’s why Baxter ended up with more in the long run: Even though he set aside less than Will did, Baxter’s money had more time to compound than Will’s, which, as you can see, really added up over the additional time. So what did Will get out of this? Unfortunately, he discovered the high cost of waiting.

Keep in mind: All figures are for illustrative purposes only and do not reflect an actual investment in any product. Additionally, they do not reflect the performance risks, taxes, expenses, or charges associated with any actual investment, which would lower performance. This illustration is not an indication or guarantee of future performance. Contributions are made at the end of the period. Total accumulation figures are rounded to the nearest dollar.

Bad Idea #3: I don’t need life insurance.
Negative! Financing a well-tailored life insurance policy is an important part of your financial strategy. Insurance benefits can cover final expenses and loss of income for your loved ones.

Bad Idea #4: I don’t need an emergency fund.
Yes, you do! An emergency fund is necessary now and after you retire. Unexpected costs have the potential to cut into retirement funds and derail savings strategies in a big way, and after you’ve given your last two-weeks-notice ever, the cost of new tires or patching a hole in the roof might become harder to cover without a little financial cushion.

Are you taking a gamble on your retirement with any of these bad ideas?

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