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November 25, 2020

Money Black Holes You Should Avoid

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Money Black Holes You Should Avoid

November 25, 2020

Money Black Holes You Should Avoid

It’s true that sometimes you’ve got to spend money to make money.

But there are plenty of things that people spend money on that give them absolutely no return. Some of these are obvious (lottery tickets and ponzi schemes), but others are subtle parts of our lifestyle. Here are three money black holes that you should avoid at all costs!

New Cars
Nothing feels better than driving off the lot with a new set of wheels. Until, that is, you realize that your car’s value has already started plummeting.

The most important rule to remember is that cars are practical tools, not long-term investments. Blowing a huge stack of cash might feel cool, but it’s a huge misallocation of money if you don’t have any to spend. Try to find a used model of the same car that’s five years old or more. Chances are you’ll get many of the same features for a fraction of the cost.

Pricey Phones
It seems like phones are improving every day and in every way. But is your high-end, name brand personal assistant really worth the steep price tag? Phones always decline in value after you buy them; The highest value-retaining phone dropped almost 50% a year after its release.¹ Unless your mobile device is a tool of your trade (i.e., you’re a TikTok influencer), dodge the hype and choose a cheaper or refurbished alternative.

Designer Clothes
New threads are awesome. You’ll never feel more like a hero than when you first hit the town in a freshly fitted suit or a designer t-shirt.

They’re also insanely expensive. Sure, they might not all cost $1,690 like a Tom Ford long sleeve solid T-Shirt. But regularly buying top-of-the-line clothes can burn huge holes in your wallet.

Fortunately, you have some fun alternatives at your fingertips. Off-price retailers might sometimes carry your favorite brands at a fraction of the cost. And thrift stores can be goldmines of high quality finds if you’re adventurous enough to explore them with a friend!

Remember, it’s okay to spend money on cool gadgets and gear if you’ve saved up for them or you’re already financially independent. But if you’re just setting out on your journey, it’s best to practice some discipline and seek out cheaper alternatives to these potentially dangerous money black holes.

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“Depreciation among top smartphone brands compared: Apple’s iPhone tops the list as the least depreciating brand,” Abhin Mahipal, SellCell, Oct 14, 2019, https://www.sellcell.com/blog/depreciation-among-top-smartphone-brands-compared-apples-iphone-tops-the-list-as-the-least-depreciating-brand/#:~:text=Apple%20once%20again%20blows%20the,release%2C%20making%20it%20worth%20%24580.

The Most Important Retirement Rule

November 18, 2020

The Most Important Retirement Rule

The best way to determine your retirement target savings is to use your income.

Here’s why.

Almost nobody wants to work 40 hours a week in retirement. Not you, not me. To avoid that, you must have money at your disposal to cover expenses like food, travel, and medical bills.

But how much do you need?

There’s a 38% chance that if you retire at 65 you will live to 85, and a 5% chance that you’ll make it to 95.¹ That means you’ll need enough cash to cover at least 20 years of life with no income.

This is where your paycheck comes into play.

Aiming to save 20 to 30 times your income helps prepare you to maintain your current lifestyle into retirement. You might even have extra spending money if you’re debt free!

Plus, it forces you to scale your savings as your income grows.

Setting a goal based solely on how much you want to spend in retirement can result in lowering your savings goal. You might splurge more now, telling yourself that you’ll just live on less later. But you’re cheating your future self!

Using your income as a retirement benchmark forces you to increase your savings amount as your paycheck grows. Let’s say you make $80,000 annually and you start saving. Your goal is to stash away 20 times your income, or about $1.6 million.

After a while, you’re able to save 5 years worth of earnings, or about $400,000.

But then you get a raise! Suddenly you’re making $100,000 per year. Your retirement target shifts up accordingly to $2 million. That $400,000 you have in the bank is a hefty slice of cash, but it’s now only worth 4 years of income instead of 5.

In other words, basing your saving around your income actually encourages you to save more as your income increases.

The best thing about this method is that it focuses on the most important part of retiring—to sustain the lifestyle that you envision. Meet with a licensed financial professional to map out what that would look like for you and how much you must save to make that vision a reality.

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¹ “How Long Will Your Retirement Really Last?,” Simon Moore, Forbes, Apr 24, 2018, https://www.forbes.com/sites/simonmoore/2018/04/24/how-long-will-your-retirement-last/?sh=31a59fb37472

How Much Should You Pay For a Car?

November 11, 2020

How Much Should You Pay For a Car?

Cars will drain your wealth.

In 2019, Americans were spending about $773.40 per month on their vehicles, or $9,281 annually.¹ That’s like owning a tiny house whose value nosedives the instant you buy it!

That’s not even counting the opportunity cost of throwing that money at a car. How much could that cash grow if it were invested or saved?

That’s why you should follow this simple rule for guarding your wealth from a car.

It’s called the 20/4/10 rule, and it’s composed of three parts. Let’s explore them one by one.

Start with at least a 20% downpayment.

Committing a hefty downpayment to a car curbs how much you’ll lose in interest later down the road. It’s always best to cover as much as you can up front with cash.

Finance the car for no more than 4 years.

How long would you want to dump money into an “investment” that doesn’t grow in value? Not long! Keep your financing period short and sweet and then get back to saving for your future.

Dedicate no more than 10% of your income to car expenses.

Your cash flow is a powerful wealth building tool if it keeps, well, flowing. Don’t let a car divert it somewhere else that it won’t grow and won’t build wealth.

Remember, this is not a bulletproof strategy.

You might be facing substantial mortgage or credit card debt obligations that make it difficult to afford the car you want. It’s always a good idea to meet with a licensed financial professional before you commit to buying a new vehicle.

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Disappearing Pensions and Protecting Your Retirement

November 4, 2020

Disappearing Pensions and Protecting Your Retirement

The old days of working at the same company for 30 years and retiring with a company pension are just about over.

Today, very few companies offer pension plans and those that do are finding those plans in peril.

Most modern workers must learn to plan their retirement without a pension. Luckily, there are still great financial tools for your retirement strategy, and workers who save diligently and prepare well can still look forward to a well-funded retirement.

Disappearing Pensions and the Rise of the 401(k)
A company pension was commonplace a few decades ago. In exchange for hard work and service for somewhere around 30 years, a company would provide you with a guaranteed income stream during your retirement.

Many Americans enjoyed a comfortable and secure retirement with a pension. Coupled with their social security benefits, they lived fairly well in their golden years.

The reason pension plans are going the way of the wind has many factors, including changes in workers’ behavior, longer life expectancies, and rising costs for employers.

A study by the professional services firm Towers Watson found that from 1998 to 2013, the number of Fortune 500 companies offering pension plans dropped 86 percent, from 251 to 34.1 Couple that with the Revenue Act of 1978, which allowed for the creation of 401(k) savings plans, and you’ll have a good view of the modern retirement landscape.

How to Retire Without a Pension
The company pension isn’t coming back, so what can workers do to secure a retirement like their parents and grandparents had?

Here are a few retirement planning tools that every worker can put to good use.

Take Full Advantage of Your Company 401(k) Plan
If your company offers a 401(k) retirement plan, make sure you’re taking full advantage of it. Here are a few ways to maximize your 401(k) plan.

  • Make the match: If your employer offers matching contributions, don’t leave the match on the table. Contribute the required percentage to collect the most you can.
  • Get fully vested: Make sure you are fully vested before you make any employment changes. Your contributions to a 401(k) will always be yours, but to keep 100% of your employer contributions, you must be fully vested.

Open a Roth IRA
A Roth plan is funded with taxed income. The upside is that you won’t pay taxes when you take it out. If your 401(k) contributions are maxed out, a Roth could be a good savings vehicle for you.

Consider an Annuity
If you like the idea of a guaranteed income stream, consider an annuity. An annuity is an insurance product, so most of the time it isn’t invested. In exchange for a lump sum of money, an annuity will pay a guaranteed monthly income stream.

Talk to a Trusted Financial Professional
Pensions are all but gone. This means today’s workers must be more involved in how they create a strategy for their retirement. There are many great retirement savings tools. Talk to a trusted financial advisor to understand and learn how you can make sure your retirement income is going to be there when you need it.

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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.

“Pensions Are Taking the Long, Lonely Road to Retirement,” Lou Carlozo, U.S. News and World Reports, Jul 20, 2015, https://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/07/20/pensions-are-taking-the-long-lonely-road-to-retirement

Two Rule That Could Save Your Financial Life

November 2, 2020

Two Rule That Could Save Your Financial Life

Almost 70% of Americans have less than $1,000 saved.¹

That means most Americans couldn’t cover unplanned car repairs, home maintenance, or medical bills without selling something or going into debt. They’re constantly living on the edge of financial ruin.

That’s where your emergency fund comes in. It’s a stash of cash that you can easily access in a pinch. You’ll be able to pay for that blown transmission without visiting a payday lender or selling your grandma’s silverware!

But here’s the catch: Your emergency savings account won’t help you much if it’s under-funded.

Follow these two rules to ensure that your rainy day savings can withstand the storms of life.

Rule #1: Only use your emergency fund for real emergencies.

I get it. Your emergency fund is an easily accessible chunk of money. Of course it’s going to be tempting to tap into it when you’re buying a new car or planning a dream vacation.

But your rainy day savings shouldn’t fund your lifestyle. They should protect it.

Think of it like this. Your vacation fund pays for your annual beach trip. Your emergency fund covers the bill when your car breaks down on the drive home. Only touch your emergency fund for unexpected expenses and enjoy the peace that comes from being prepared.

Rule #2: Always refill your emergency fund when it’s low

Ideally, your emergency fund should be stocked with 3 to 6 months of your income at all times. That should be enough to cover the gambit from small unexpected costs to a month or two of unemployment.

Don’t be afraid to tap into your emergency savings when you face unforeseen financial hiccups. Just remember to refresh your fund when the emergency has passed. The last thing you need is to be caught in the crosshairs of another crisis without a buffer.

Don’t let a financial storm blow you off course. Prepare for your future, and start building an emergency fund now. If you follow these rules, it can help financially protect you from the challenges life will inevitably send your way.

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Is Your Home An Investment?

October 26, 2020

Is Your Home An Investment?

It’s a law of the universe that your house is an investment, right?

Just ask your grandparents who bought a $250,000 home for $50,000 during the 1950s. Better yet, listen to your savvy landlord buddy who rules an urban real estate empire that they gobbled up following the Great Recession. We’re surrounded by evidence that conclusively demonstrates the power of houses as investments… or are we?

Hmmm.

It turns out that buying a place of residence may not actually pay off in the long run like it might appear on paper. Here’s why you might want to rethink having your primary residence be an investment only.

Houses (usually) don’t actually grow more valuable
Think about that suburban mansion your grandparents snagged for $50,000 that eventually “grew” to be worth $250,000. On paper, that looks like an awesome investment; that house quintupled in value! But remember, $1 in 1950 had about the purchasing power of $10 today. Four gallons of gas or two movie tickets were just one buck!¹ That means $50,000 at that time could buy a $539,249 house today. Your grandparents actually lost money on that house, even though it looked like they made off like bandits!

It’s all because of one simple feature of economics: inflation. Prices tend to rise over time, meaning that your dollar today doesn’t go as far as it would have in 1950. So while it looks like your grandparents netted a fortune on their house, they actually didn’t. They lost over half its value! Unless your neighborhood suddenly spikes in popularity with young professionals or you start renting, your house probably won’t accrue any real worth beyond inflation.

Houses have to be maintained
But it’s not just that houses usually don’t actually appreciate in value. They also cost money in property taxes, utilities, and maintenance. Homeowners spend, on average, $1,105 annually to maintain their dwelling places.² You can expect to pay $12,348 annually on the average mortgage and $2,060 for utilities.³ & ⁴ That comes out to a total of $15,513 per year on keeping the house and making it livable. Let’s say your home is worth about $230,000 and appreciates by 3.8% every year. It will grow in value by about $8,740 by the end of the year. That’s barely more than half of what it costs to keep the house up and running! Your house is hemorrhaging money, not turning a profit.

It’s important to note that homeownership can still generally be a good thing. It can protect you from coughing up all your money to a landlord. Buying a property in an up-and-coming neighborhood and renting it out can be a great way to supplement your income. Plus, there’s something special about owning a place and making it yours. But make no mistake; unless you strike real estate gold, your place of residence probably shouldn’t be (primarily) an investment. It can be home, but you might need to rely on it to help fund your retirement!

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. Any examples used in this article are hypothetical. Before investing or enacting a savings, investment, or retirement strategy, seek the advice of a licensed financial professional, accountant, and/or tax expert to discuss your options.

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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. Any examples used in this article are hypothetical. Before investing or enacting a savings, investment, or retirement strategy, seek the advice of a licensed financial professional, accountant, and/or tax expert to discuss your options.


“7 Things You Could Buy For $1 in 1950,” Megan Elliott, Showbiz Cheatsheet, Oct 9, 2016, https://www.cheatsheet.com/money-career/things-you-could-buy-for-1-dollar.html/

“How Much Should You Budget For Home Maintenance,” Paula Pant, The Balance, May 26, 2020, https://www.thebalance.com/home-maintenance-budget-453820

“National Average Monthly Mortgage Payment,” Hannah Rounds, LendingTree, July 11, 2018, https://www.lendingtree.com/home/mortgage/national-average-monthly-mortgage-payment/#:~:text=What%20is%20the%20average%20monthly,the%20typical%20homeowners'%20monthly%20income

“How much is the average household utility bill?,” Nationwide, https://www.nationwide.com/lc/resources/personal-finance/articles/average-cost-of-utilities#:~:text=The%20typical%20U.S.%20family%20spends,climate%2C%20and%20your%20usage%20patterns

How To Talk To Your Spouse About Money

October 7, 2020

How To Talk To Your Spouse About Money

Family finances isn’t always a fun topic.

But getting in the habit of discussing money early on in your relationship may help pave the way for a smoother future. Whether or not you see eye to eye, learning each other’s spending habits and budgeting styles can help avoid any financial obstacles in the future. Below are some tips on getting started!

Talk about money regularly
One of the best ways to approach a conversation about money is to decide in advance when you’re going to have it, rather than springing it on your spouse out of the blue. Family budgeting means making the time to talk upfront and staying transparent about it on a consistent basis. If you and your spouse choose to set a monthly or annual budget, commit to sitting down and reviewing family expenses at the end of each month to see what worked and what didn’t.

Start a budget
It’s easy to feel overwhelmed if you don’t have a family budget and don’t know where to start. However, with the development of mobile applications and online banking, you can now more easily track your spending habits to find ways to cut unnecessary expenses. For example, if you see that you’re going out to dinner most nights, you can try replacing one or two of those evenings out with a home cooked meal. Small changes to your routine can make saving easier than you might have thought!

Remember your budgeting goals
Budgeting comes down to a simple question—how will these money decisions affect the happiness of my family? For example, you might need to ask yourself if taking an awesome vacation to your favorite theme park will give your family more happiness than fixing your minivan from 2005. Can’t do both? You aren’t necessarily forgoing the vacation to fix your car; instead, you might need to invest in your car now rather than potentially letting a problem worsen. You might then decide to rework your budget to set aside more money every month to take the trip next year.

The key is that talking to your spouse about money may actually become more about talking to them about your goals and family. When you put it that way, it may be a much more productive and rewarding conversation!

Even if you haven’t discussed these things before you walked down the aisle, it’s never too late to sit down with your spouse. This topic will continue over time, so talking about your financials with your partner as you approach new milestones and experience different life events as a family can help you financially prepare for the future.

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What Are The Odds?

What Are The Odds?

Your brain is more powerful than any computer on the planet.

It can store roughly 2.5 million gigabytes of information.¹ Yahoo’s colossal data warehouse can only store 2 million gigabytes.² And your brain does it with the same energy it would take to light a light bulb, not a huge power grid!³ But all that computing firepower still doesn’t help the brain understand one simple concept: probability. Which is unfortunate, because misunderstanding the odds of something happening can seriously impair your decision making, especially when it comes to money and finances. Let’s take a look at the problem of comprehending probability, how it impacts your money, and a simple strategy to counteract it.

We don’t understand probability
It’s a scientific fact that humans struggle to properly understand probabilities. A 2018 meta-analysis from the University of Rensburg found that presenting people with probabilities often results in potentially huge errors of judgment.4 For instance, a woman was wrongfully charged with the murder of her sons because a medical professional testified to the low probability of their dying naturally.

Part of the problem is presentation. The meta-analysis showed that presenting tasks as natural frequencies (i.e., 1 out of 10) instead of percentages (10% chance of something happening) actually increased peoples’ performance in understanding the probability they were presented with. Even then, the leap was only from 4% to 24%. You still have merely a 1 in 4 chance of effectively grasping a probability! So while presentation helps, it doesn’t address the deep-seated mental block people have regarding understanding odds. Humans just seem to overcomplicate, misinterpret, and misconstrue probability.

Probability and Money
But does that really matter if you’re not buying lottery tickets or spending weekends at the races? You might be surprised by how often our inability to understand chance impacts our money decisions. There are countless examples. You want to start saving and investing your money. You’ve figured out that buying when the market is low is the best way to maximize your dollar. You hold back, waiting to time the market for that dip that’s certainly right around the corner. Perhaps you decide to start a business right when the economy is cooking. The DOW’s been climbing for the last three years, so there’s no reason for it to stop now, right? Or maybe you’ve held off on buying life insurance because the odds of your suddenly passing away are one in a million. Those are all instances of risky behaviors that stem from an innate human inability to grasp probabilities.

How a professional can help
But there’s a surprising solution to the probability problem: education. Ask a mathematician to gamble on a coin toss. They’ll choose either heads (or tails) every time. Why? Because they know how probability works and don’t let a few flips throw them off. It’s a 50/50 chance every time the coin is tossed, so why try to game the system? Your personal finances are no different. You need someone on your side who knows the math, knows the economy, and can guide you through a run of bad luck without losing their head. You need a financial professional. They can help you grasp some basics and the strategies that can help protect you from the seeming randomness of finances. Stop rolling the dice. Reach out to a professional today!

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¹ “What is the Memory Capacity of a Human Brain?,” Clinical Neurology Specialists, https://www.cnsnevada.com/what-is-the-memory-capacity-of-a-human-brain/

² “What is the Memory Capacity of a Human Brain?,” Clinical Neurology Specialists, https://www.cnsnevada.com/what-is-the-memory-capacity-of-a-human-brain/

³ “Computation Power: Human Brain vs Supercomputer,” Foglets, 10 Apr, 2019 https://foglets.com/supercomputer-vs-human-brain/#:~:text=The%20amount%20of%20energy%20required,charge%20a%20dim%20light%20bulb.

⁴ “Why don’t we understand statistics? Fixed mindsets may be to blame,” ScienceDaily, Oct 12, 2018, https://www.sciencedaily.com/releases/2018/10/181012082713.htm

Does healthy living have to cost more?

September 21, 2020

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.

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A Life Insurance Deep Dive

September 16, 2020

A Life Insurance Deep Dive

We’ve explored the basics of life insurance, how it works, and what it’s for.

Today we’ll be fleshing out some concepts you might encounter as you look at your options for protecting your family. Let’s start with the different kinds of life insurance.

Different types of life insurance
Life insurance will almost always have a few basic parts—the death benefit (the amount paid to your loved ones upon your passing), the policy itself (the actual insurance contract), and the premium (how much you pay for the life insurance policy).

There’s a wide range of life insurance policies, each with their own strengths and weaknesses.

  • Term life insurance is the most straightforward form. It lasts for a set amount of time (the term), during which you pay a premium. You and your beneficiaries won’t receive any benefits if you don’t pass away during the term. This type of policy typically doesn’t feature other benefits on its own (you may be able to add other benefits with what is called a rider).
  • Whole life insurance is exactly what it sounds like. It never expires and is guaranteed to pay a benefit whenever you pass away. But it often comes with other benefits. For instance, it can include a saving component called a cash value. It usually builds with interest and you can take money from it any time.
  • Indexed Universal Life Insurance is similar to whole life insurance, but the cash value is tied to the market. The market is up? Your cash value goes up. The market goes down? Your cash value is actually shielded from loss.

Each of these types of life insurance have different strengths and weaknesses. A term policy might be right for you while a whole life policy might be better for your neighbor. Talk with a financial professional to see which one fits your needs and budget!

The right amount of life insurance
But can you have too little life insurance? How about too much? The answer to both of those questions is yes. In general, the purpose of life insurance is to replace your income in case of your passing for your loved ones and family. That should be your guidestone when deciding how substantial a policy to purchase. Typically, you’re looking at about 10 times your annual income. That’s enough to replace your yearly earnings, pay-off potential debts, and guard against inflation. That means someone earning $35,000 would want to shop around for about $350,000 worth of coverage.

Employer life insurance
This means that most employer-provided life insurance isn’t enough to fully protect you and your family. There’s no doubt that a free policy from your workplace is great. But they typically only cover about a year of wages. That’s not nearly what you need to provide peace of mind to your beneficiaries! Don’t necessarily refuse your employer-provided life insurance, but make sure that it supplements a more substantial policy.

Still have questions? Reach out to a licensed financial professional and ask for guidance! And stay tuned for next week’s article where we’ll debunk some common life insurance myths!

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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 enacting a life insurance policy, seek the advice of a licensed financial professional to discuss your options.

How to Avoid Financial Infidelity

How to Avoid Financial Infidelity

If you or your partner have ever spent (a lot of) money without telling the other, you’re not alone.

This has become such a widespread problem for couples that there’s even a term for it: Financial Infidelity.

Calling it infidelity might seem a bit dramatic, but it makes sense when you consider that finances are the leading cause of relationship stress. Each couple has their own definition of “a lot of money,” but as you can imagine, or may have even experienced yourself, making assumptions or hiding purchases from your partner can be damaging to both your finances AND your relationship.

Here’s a strategy to help avoid financial infidelity, and hopefully lessen some stress in your household:

Set up “Fun Funds” accounts.

A “Fun Fund” is a personal bank account for each partner which is separate from your main savings or checking account (which may be shared).

Here’s how it works: Each time you pay your bills or review your whole budget together, set aside an equal amount of any leftover money for each partner. That goes in your Fun Fund.

The agreement is that the money in this account can be spent on anything without having to consult your significant other. For instance, you may immediately take some of your Fun Funds and buy that low-budget, made-for-tv movie that you love but your partner hates. And they can’t be upset that you spent the money! It was yours to spend! (They might be a little upset when you suggest watching that movie they hate on a quiet night at home, but you’re on your own for that one!)

Your partner on the other hand may wait and save up the money in their Fun Fund to buy $1,000 worth of those “Add water and watch them grow to 400x their size!” dinosaurs. You may see it as a total waste, but it was their money to spend! Plus, this isn’t $1,000 taken away from paying your bills, buying food, or putting your kids through school. (And it’ll give them something to do while you’re watching your movie.)

It might be a little easier to set up Fun Funds for the both of you when you have a strategy for financial independence. Contact me today, and we can work together to get you and your loved one closer to those beloved B movies and magic growing dinosaurs.

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Good Debt?

August 24, 2020

Good Debt?

Debt is often seen as something you don’t want.

Monthly payments can be a huge drain on your bank account and can seriously lower your saving and investing power. That’s why eliminating debt is often an early step in most financial strategies.

But does good debt exist?

Are there situations where it’s acceptable or even wise to borrow money? Let’s explore what makes debt “good” or “bad” and some examples of both!

What makes debt good?
Not many would argue that living within your means isn’t good. But there are opportunities that you might not be able to afford with your basic income. It turns out that it sometimes takes money to make money! Taking out a loan to pursue those opportunities might be considered good debt. Sure, you might be in the hole for a little while, but you’re hoping you’ll increase your income and net worth further down the line.

Good debt
Most of us simply can’t afford a house or college education with money from our checking account, so we have to borrow those funds. But we’re expecting that those investments will pay off. Higher education paid for with student loans will hopefully equip you to land a better paying job that will help you pay down your debt and make you more money long-term. A wise real estate investment might be pricey, but you hope that your property will increase in value and you can make a profit when you sell. Taking out a loan to launch your entrepreneurial dreams is considered an example of good debt. Starting a business, while risky and expensive, can increase your value over the long-term. You’re taking the calculated risk that your long-haul earnings will heavily outweigh your short-term debts.

Bad debt
It’s important to remember that bad debt still exists. Most of what we buy loses value very quickly. Try reselling lunch meat a few days after you buy it to see what I mean! Cars depreciate by about 60% in the first 5 years of ownership.(1) And while it might be worth going into some debt to get a reliable vehicle, you shouldn’t typically treat a car purchase as an investment.

It’s also worth considering that even what appears to be good debt might come back to bite you. Neighborhoods and real estate markets change, and a once solid property might end up losing value over the long haul. And while a better education is usually a good thing, going into huge amounts of debt at a private school to study a non-lucrative field might not pay off.

Debt should never be taken lightly. Whether it’s a credit card, a personal loan, or a mortgage, make sure you do your homework to figure out the best move for you. Some of those decisions might be easy (not buying a high-end sports car) but others might take some serious consideration and research (starting a business). Figure out the costs and the earning potential and then make your decision!

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What To Cut In Your Budget

August 19, 2020

What To Cut In Your Budget

Intro
Budgeting is empowering. It gives you information so you can make those decisions that will impact your future. But budgeting can often feel discouraging. It might even make us miserable! Especially if we look at our budget and decide to slash all the little things that make us happy. How many times have we been lectured about the amount of money wasted at coffee shops?

It turns out that’s not where most of your money is going. Here are some suggestions for where you should really focus when you’re slashing your budget.

Focus big first
We spend roughly $1,100 per year on coffee.(1) That’s about $3 per day. But that’s nothing compared to how much we spend on big ticket items. Housing alone costs $19,884 per year, and transportation an additional $9,576.(2) They’re by far the biggest drain on our income. So the question is, are you paying more than you should for housing and transportation?

Are you renting a large apartment in a ritzy part of town without roommates? Are you driving a stunning new sports car? Those might have more to do with your financial woes than your latte habit. Consider how you can reduce your rent, refinance your mortgage, or consider trading in your sports car for a more modest ride before you totally remove life’s simple pleasures.

Food
We spend about $7,729 on food every year.(3) Broken down monthly, that’s about $372 on food at home and $228 on eating out.(4) Around $133 of that ends up getting thrown in the trash due to spoilage or just not wanting to deal with leftovers. That’s a lot of money going to restaurant owners and landfills!

There’s nothing wrong with enjoying a nice meal out on the town every now and then. But, while you’re budgeting, come up with a strategy for eating at home more often. You’ll be surprised by how much that alone can save you in the long run! And if you end up with leftovers, there are plenty of ways to use those up so they won’t go to waste.

Replace cable
Americans still spend a staggering amount on cable television. The average bill is more than $200 per month!(5) That’s about as much as we spend eating out every month for access to shows and programming we could probably find online for less or even free. Cut the cord, sign up for a streaming service, and save bigtime!

The key takeaway is to try cutting back on the big items first before you take aim at your little daily joys. Use whatever you’re able to cut to reduce your debt or start saving for your retirement. You might be able to put away a bit of that extra cash towards your next down payment for a house or that fancy new car!

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Dig yourself out of debt

August 17, 2020

Dig yourself out of debt

I hate to break it to you, but no matter what generation you are – Baby Boomer, Generation X, or Millennial – you’re probably in debt.

If you’re not – good on you! Keep doing what you’re doing.

But if you are in debt, you’re not alone. A study[i] by the financial organization, Comet, found:

  • 80.9 percent of Baby Boomers are in debt
  • 79.9 percent of Generation X is in debt
  • 81.5 percent of Millennials are in debt

There are some folks whose goal is to eliminate all debt – and if that’s yours, great! But one thing to keep in mind while you’re working towards that finish line is that not all debt is created equal. Carrying a mortgage, for example, may be considered a “healthy” debt. Student loan debt may feel like an encumbrance, but hopefully, your education has given you more earning power in the workforce. A car loan may even be considered a healthy debt. So, there are some types of debt that may offer you advantages.

Any credit card debt you have, however, should be dealt with asap. Credit card debt can cost money every month in the form of interest, and it gives you nothing in return – no equity, no education, no increase in earning potential. It’s like throwing money down the drain.

So, let’s get to work and look at some of the best tips for paying down credit card debt.

1. Get to know your debt
Make a commitment to be honest with yourself. If you’re in denial, it’s going to be hard to make positive changes. So take a good, hard look at your debt. Examine your credit card statements and note balances, interest rates, minimum monthly payment amounts, and due dates. Once you have this information down in black and white you can start to create a repayment strategy.

2. Get motivated
Taking on your debt isn’t easy. Most of us would rather not confront it. We may make half-hearted attempts to pay it off but never truly get anywhere. Need a little motivation? Getting rid of your credit card debt may make you happier. The Comet study asked respondents to rate their happiness on a scale of one to seven.[ii] It turns out that those who selected the lowest rating also carried the highest amounts of credit card debt. Want to be happier? It seems like paying off your credit card debt may help!

3. Develop your strategy
There are many strategies for paying off your credit card debt. Once you understand all your debt and have found your motivation, it’s time to pick a strategy. There are two main strategies for debt repayment. One focuses on knocking out the highest interest debt first, and the other method begins with tackling the smallest principal balances first. Here’s how they work:

  • Start with the highest interest rate: One of the items you should have noted when you did your debt overview is the interest rate for each account. With this method, you’ll throw the largest payment you can at your highest interest rate debt every month, while paying the minimum payments on your other debts. Utilizing this method may help you pay less interest over time.

  • Start with the smallest balance: As opposed to comparing interest rates, this method requires you to look at your balances. With this strategy, you’ll begin paying the smallest balance off first. Continue to make the minimum payments on your other accounts and put as much money as you can towards the smallest balance. Once you have that one paid off, combine the amount you were paying on that balance with the minimum you were paying on your next smallest balance, and so on. This strategy can help keep you motivated and encouraged since you should start to see some results right away.

Either strategy can work well. Pick the one that seems best for you, execute, and most importantly – don’t give up!

4. Live by a budget
As you begin chipping away at your credit card debt, it’s important to watch your spending. If you continue to charge purchases, you won’t see the progress you’re making, so watch your spending closely. If you don’t have a budget already, now would be a good time to create one.

5. Think extra payments
Once you are committed to paying off your debt and have developed your strategy, keep it top of mind. Make it your number one financial priority. So when you come across “found” money – like work bonuses or gifts – see it as an opportunity to make an extra credit card payment. The more of those little extra payments you make, the better. Make them while the cash is in hand, so you aren’t tempted to spend it on something else.

6. Celebrate your victories
Living on a budget and paying off debt can feel tedious. Paying off debt takes time. Don’t forget to take pride in what you’re trying to accomplish. Celebrate your milestones. Do something special when you get that first small balance paid off, but try to make the occasion free or at least cheap! The point is to reward yourself for your hard financial work. (Hint: Try putting up a chart or calendar in your kitchen and marking off your progress as you go!)

Reward yourself with a debt-free life Getting out of debt is a great reward in and of itself. It takes discipline, persistence, and patience, but it can be done. Come to terms with your debt, formulate a strategy, and stick to it. Your financial future will thank you!

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What It Means To Live Paycheck to Paycheck

August 12, 2020

What It Means To Live Paycheck to Paycheck

A 2017 survey found that 78% of Americans live paycheck to paycheck.(1)

“Paycheck to paycheck” is an expression we’ve all heard, but what does it really mean? Have we taken the time to understand its implications for our daily lives and futures? Here’s a crash course in what it means to live paycheck to paycheck.

Living paycheck to paycheck technically means that all of your “income” goes towards your “outgo” each month and you’re not saving anything. You get paid, spend everything, and have to rely on that next check to make ends meet. And millions of Americans seem okay with this lifestyle of razor thin margins. They’re certainly comfortable with sharing it on their social media!

But the paycheck to paycheck lifestyle means more than just spending all you earn. It means you’re constantly on the verge of a financial catastrophe. What happens if you’re spending your whole paycheck each and every month and you lose your job? Suddenly, you’re facing your normal expenditures but the cash isn’t coming in. Or what if you face an emergency car repair? Where will you find the money to cover that unexpected expense? Living paycheck to paycheck means you’re standing right on the knife’s edge of money mayhem!

Thoughtless spending doesn’t just leave you exposed to a present-day disaster. It also means you aren’t preparing for your future. By definition, a paycheck to paycheck lifestyle excludes saving. You can’t stash money away for a house or your retirement if you let every penny fly out the window. Most Americans are poorly situated for the future; 70% have less than $1,000 in savings, and 45% have saved exactly $0.00.(2) That’s not enough to cover a new transmission, much less the retirement lifestyle most of us envision!

But there are alternatives to the paycheck to paycheck trap. You can take steps to move away from financial insecurity towards financial freedom. Let’s talk about what that would look like for you!

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How much will this cost me?

How much will this cost me?

If you’re dipping your toe in the pool of life insurance for the first time, you’re bound to have a lot of questions.

At the top of your list is probably how much setting up a policy is going to cost you.

There are several things that can determine how much you’ll pay for life insurance, including the type of policy you select. But before we dive in and look at cost, let’s check out the types of life insurance available.

Major types of life insurance
Life insurance is customizable and can suit many different needs, but for the most part, life insurance comes in three main varieties.

Term life insurance: A term life policy is active for a preselected length of time. It could be 15, 20, or 30 years. If something happens to you during that term, your beneficiary will receive the death benefit of the policy.

Permanent life insurance: Permanent life insurance is a policy that stays active as long as you’re alive. When you pass away, the policy pays out to your named beneficiary. The value of the policy increases over time, and you can borrow against this “cash value” in some circumstances.

Universal life insurance: Universal life insurance works like a permanent life policy in that it pays out to your beneficiary, but it also accrues interest over the policy term (which may be affected by market performance).

How your cost is calculated
The insurance company estimates the cost of a life insurance policy based on your risk factors. Risk factor data is gathered and evaluated based on the information in your application. Then the insurance company uses historical data, trends, and actuarial processes to come up with a premium for you.

The cost of some life insurance policies can change over time, while others remain the same.

What risk factors does the company use?
When the insurance company is calculating your rate, they look at several factors, including:

Your demographics: Your demographics include your age, weight, gender, and health. The company will also want to know if you smoke, and other health-related issues you may have.

The amount of the death benefit: The death benefit is the amount the policy will pay to your beneficiaries when you pass away. The larger the death benefit you select, the more expensive the policy.

Your lifestyle: Lifestyle habits and hobbies can affect the cost of your policy. The insurance company will want to know if you ride a motorcycle regularly, or how often you drink alcohol, for example.

Your risk and life insurance cost
The risk of when your death will occur ultimately determines your life insurance costs. That’s why the younger you are the less the policy should cost. If you wait to purchase your life insurance policy when you’re older, the policy will most likely cost more.

But there are things you can do that may help lessen the cost of the policy. Anything that will increase your health status may help with your life insurance costs. Quitting smoking and starting a regular exercise program can promote your health and in turn this may also have a positive effect on your health insurance premium.

A life insurance agent can help
If you’re looking for a life insurance policy and wondering about the cost, a qualified life insurance agent can be a great help. A life insurance agent has access to many different insurance companies and can work to get you matched with the right policy at the right price for you.

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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. Before investing or enacting a savings or retirement strategy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options.

Read this before you walk down the aisle

June 24, 2020

Read this before you walk down the aisle

Don’t let financial trouble ruin your future wedded bliss.

Most newlyweds have a lot to get used to. You may be living together for the first time, spending a lot of time with your new in-laws, and dealing with dual finances. Financial troubles can plague even the most compatible pairs, so read on for some tips on how to get your newlywed finances off to the best possible start.

Talk it out If you haven’t done this already, the time is ripe for a heart to heart talk about what your financial picture is going to look like. This is the time to lay it all out. Not only should you and your fiancé discuss your upcoming combined financial situation, but it can be beneficial to take a deep dive into your past too. Our financial histories and backgrounds can influence current spending and saving habits. Take some time to get to know one another’s history and perspective when it comes to how they think about money, debt, budgeting, etc.

Newlyweds need a budget Everyone needs a budget, but a budget can be particularly helpful for newlyweds. A reasonable, working household budget can go a long way in helping ease financial stress and overcoming challenges. Money differences can be a big cause of marital strife, but a solid, mutually-agreed-upon budget can help avoid potential arguments. A budget will help you manage student loans or new household expenses that must be dealt with. Come up with a budget together and make sure it’s something you both can stick with.

Create financial goals Financial goal setting can actually be fun. True, some goals may not seem all that exciting – like paying off credit cards or student loans. But formulating financial goals is important.

Financial goal setting should start with a conversation with your new fiancé. This is the time to think about your future as a married couple and work out a financial strategy to help make your financial dreams a reality. For example, if you want to buy a house, you’ll need to prepare for that. A good start is to minimize debt and start saving for a down payment.

Maybe you two want to start a business. In that case, your financial goals may include raising capital, establishing business credit, or qualifying for a small business loan.

Face your debt head on
It’s not unusual for individuals to start married life facing new debt that came along with their partner – possibly student loans or personal credit card debt. You may also have combined debt if you’re planning on financing your wedding. Maybe you’re going to take your dream honeymoon and put it on a credit card.

Create a strategy to pay off your debt and stick to it. There are two common ways to tackle it – begin with the highest interest rate debt, or begin with the smallest balance. There are many good strategies – the key is to develop one and put it into action.

Invest for the future Part of your financial strategy should include preparing for retirement, even though it might seem light years away now. Make sure you work a retirement strategy into your other financial goals. Take advantage of employer-sponsored retirement accounts and earmark savings for retirement.

Purchase life insurance Life insurance is essential to help ensure your new spouse will be taken care of should you die prematurely. Even though many married couples today are dual earners, there is still a need for life insurance. Ask yourself if your new spouse could afford to pay their living expenses if something happened to you. Consider purchasing a life insurance policy to help cover things like funeral costs, medical expenses, or replacement income for your spouse.

Newlywed finances can be fun Newlywed life is fun and exciting, and finances can be too. Talk deeply and often about finances with your fiancé. Share your dreams and goals so you can create financial habits together that will help you realize them. Here’s to you and many years of wedded bliss!

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3 Ways to Shift from Indulgence to Independence

June 17, 2020

3 Ways to Shift from Indulgence to Independence

On Monday mornings, we’re all faced with a difficult choice.

Get up a few minutes early to brew our own coffee? Or sleep a little later and whip through a coffee chain drive-thru, hair askew and a drool trail still drying against our cheek?

When that caffeine hits our bloodstream, how we got the coffee doesn’t seem to matter too much. But each time you pull through a drive thru for that cup o’ joe, just picture your financial strategy shouting and waving its metaphorical arms to get your attention.

Why? Each time you indulge in a luxury that has a less expensive substitute, you’re potentially delaying your financial independence. It’s strange how that can happen one $5 peppermint mocha at a time, but that’s how it happens – incrementally and without too much warning. Then comes the credit card bill… This isn’t to say that you can’t enjoy yourself every once in a while. Just be sure that you’re sticking with your strategy and saving wherever possible. You’ll thank yourself later.

Here are 3 ways to shift from indulgence to independence:

1. Make coffee at home. Reducing your expenses can start as simply as making your morning coffee at home. And you might not even have to get up earlier to do it. Why not invest in a coffee pot with a delay brew function? It’ll start brewing at the time you preset, and what’s a better alarm clock than the scent of freshly-brewed coffee wafting from the kitchen? Or from your bedside table… (No judgement here – Do what you need to do to get up in the morning.)

Get started:Here’s a huge list of copycat Starbucks drinks that you can make at home.

2. Workout at home. A couple of questions to get this one going:

1) Is an expensive gym membership really worth it? 2) How often have you gone to the gym in the last few months?

If your answers are somewhere between “No” and “…I’d rather not say,” then maybe it’s time to ditch the membership in favor of working out at home. Or perhaps you are a certified Gym Rat who faithfully wrings every dollar out of their gym membership each month. Ask yourself if you really need all the bells and whistles that an expensive gym offers. Elliptical, dumbbells, and machines with clearly printed how-tos? Yes, please. But a hot tub, sauna, and an out-of-pocket juice bar? Maybe not. If you can continue to workout without a few of those pricey luxuries, your body and your wallet will thank you.

Get started: Take a 30-minute walk around your local park each day and reap the positive results – it’s completely free! And if you’d prefer to workout at a gym, look into month-to-month memberships instead of paying a hefty price for a year-long membership up front.

3. Ditch cable and use a video streaming service instead. Cable may give you access to more channels and more shows, but if any of your favorite shows end up gathering digital dust in your DVR most of the time, waiting a little longer for them to be available on a streaming service like Netflix or Hulu might not be a bad idea. (Plus, who doesn’t love using a 3-day weekend to binge-watch an entire season of a show?) There’s also the bonus of how easy it is to cancel/reactivate a streaming service. With cable, you may be locked into a multi-year contract, installation can be a hassle, and you can forget about knowing when the cable guy is actually going to show up. The affordability and ease of use of a video streaming service makes it a more attractive option for your journey to financial independence.

Get started: Check out PCMag’s “Best Video Streaming Services of 2018” for a comparison of several options. Keep in mind that plenty of streaming services offer free trial periods. Go ahead and give any of them a try, but be careful: You may have to enter your credit card number to access the free trial; do not forget to cancel before your trial is over, or you will be charged.

Taking the time to address what kinds of luxuries can you live without (or enjoy less often) has the potential to make a huge impact on your journey to financial independence. Cutting back here and investing in yourself there – who knows where you’ll be this time next year.

Where are you going to start indulging less?

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Should I pay off my car or my credit cards?

Should I pay off my car or my credit cards?

Credit card statements and auto loan statements are often among the bigger bills the mail carrier brings.

Wouldn’t it be great to just pay them off and then use those monthly payments for something else, like building your savings and giving yourself a bit of breathing room for a treat now and then?

Paying extra money on your credit card bills and your car loan at the same time may not be an option, so which is better to pay off first?

In most cases, paying down credit cards might be a better strategy. But the reasons for paying off your credit cards first are numerous. Let’s look at why that usually may make more sense.

  • Credit cards have high interest rates. When you look at the balances for your auto loan vs. your credit card, the larger amount may often be the auto loan. Big balances can be unnerving, so your inclination may be to pay that down first. However, auto loans usually have a relatively low interest rate, so if you have an extra $100 or $200 per month to put toward debt, credit cards make a better choice. The average credit card interest rate is about 15%, whereas the average auto loan rate is usually under 7%, if you have good credit.[i]

  • Credit cards charge compound interest. Most auto loans are simple-interest loans, which means you only pay interest on the principal. Credit cards, however, charge compound interest, which means any interest that accrues on your account can generate interest of its own. Yikes!

  • You’ll lower your credit utilization. Part of your credit score is based on your credit utilization, which specifically refers to how much of your revolving credit you use. As you pay down your balance, you’ll not only pay less in interest, you may also give your credit score a boost by reducing your credit utilization.

The numbers don’t lie
Let’s say you have a 5-year auto loan for $30,000 at 7% interest. You also have an extra $100 per month you’d like to use to pay down debt. By adding that 100 bucks to your car payments, over the course of the loan you can cut your loan length by 10 months and save $972.32.[ii] Impressive.

Let’s look at a credit card balance. Maybe the credit card interest rate is higher than the car loan, but hopefully the balance is lower. Let’s assume a balance of only $10,000 and an interest rate of 15%. With your minimum payment, you’d probably pay about $225 monthly. Putting the extra $100 per month toward the credit card balance and paying $325 shortens the payment length for the card balance by 26 months and saves $1,986 in interest expense.[iii] Wow!

The math tells the truth. In the above hypothetical scenarios, even though the balance on the credit card is one-third that of the total owed for the car, you would save more money by paying off the credit card balance first.

Financial strategy isn’t just about paying down debt though. As you go, be sure you’re saving as well. You’ll need an emergency fund and you’ll need to invest for your retirement. Let’s talk. I have some ideas that can help you build toward your goals for your future.

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The Food Waste Epidemic... And What You Can Do About It

June 10, 2020

The Food Waste Epidemic... And What You Can Do About It

Food waste is a big problem.

Don’t believe me? Just check out these food waste facts:

- The average family throws away around $1,500 of food every year.(1)

- One recent study found that we toss around a third of all consumable food, with wealthy nations being the biggest culprits.(2)

- Cutting back our food waste just 15% would free up enough food to feed 25 million Americans.(3)

Those are incredible numbers. And they touch everything from the poor in other parts of the world to your own wallet! But what can you do? How can you not only combat a global problem but also look out for your own financial needs? Here are a few practical ways to reduce food waste and save some money while you’re at it!

Shop with a plan
The first step to not wasting food is only buying food you plan on eating. That means deciding ahead of time what you want to eat, making a list, and only buying those items at the store. Sure, it’s thrilling to walk down the produce aisle just waiting for an exotic veggie to catch your eye or buying extra meat just in case you want pork chops instead of chicken thighs. But you’ll quickly find that shopping without a strategy can lead to overbuying. This raises the potential that food won’t get prepared and will get thrown out. Always start with a list and shop from there.

Online shopping may help you stay on track with your list—and save you a ton of time! It’s fairly simple these days to log in to your favorite grocery store app, check items off, then click Delivery or Pick-up. (Keep in mind the store may charge a small fee for these services, but if it means not throwing out yet another unopened box of spinach, it might be worth it!)

Store wisely
Even the best planner will overbuy at some point. Maybe there’s a great sale on your kids’ favorite snack crackers, or you want to pick up a couple extra bottles of wine since they’re BOGO. You might stock up on Monday and then remember you have dinner plans with the in-laws on Friday. Don’t panic! Keeping your food from going bad is actually pretty simple. For many perishable items, just take a deep breath, open your freezer, and put your food inside. Close the freezer door. Your food should be safe from going bad until your schedule clears up. Just remember to dethaw your food before you try cooking it!

If you find you’re stocking up often on dry goods, you might want to invest in some quality containers (plastic, glass or metal) to help keep your food fresher, longer.

Reuse (safely)
But what happens if you prepare a ton of food for a meal only to discover that your stomach is smaller than you anticipated? Open up the trash can and dump all of that delicious, edible food?

Never!

The classic leftovers loophole is to put your food in proper containers and leave them in the fridge until you can get back to them in the next day or two. You can also freeze leftovers if you need. But why stop there? Those leftovers are just begging to be transformed into something fresh and delicious! Why not stir fry them with some rice or cook them into a casserole? Get creative and make something new and amazing!

Reducing food waste takes a little work and planning. But with the right attitude, it can be a fun way of contributing to your community, helping the planet, and avoiding a hunger strike by your bank account!

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