Are You Financially Fit? Take The Assessment

One of the biggest worries here in the US is money.

USA Today reveals something alarming when it comes to debt in the US and quote:

"The average American household carries $137,063 in debt, according to the Federal Reserve's latest numbers."

"Yet the U.S. Census Bureau reports that the median household income was just $59,039 last year, suggesting that many Americans are living beyond their means."

Also, the average student loan is about $50,626.00, putting Millenials in debt right out of college.

What all of these means to us? 

This means that the cost of living is higher than our income.

What can we do to change this?

Basically, we need to get educated about money.

It is time to put our money where financial institutions put their money and not put it in the financial institutions.

We also need to change our perception when it comes to money and when it comes to debt.

We need to eliminate our limiting beliefs when it comes to money.  

We need to get educated on the...

Continue Reading...

Is An Interest-Only Loan The Best For Me?

Most home loans payments will pay the principal-and-interest in the home. This means that your regular payments will reduce the principal (amount borrowed) as well as paying off the interest. With an interest-only loan, you only pay interest on the amount you have borrowed for an agreed period of time (usually up to 5, 7 or 10 years).

What does an Interest-Only Loan will offer you?

Lower Monthly Payment:  Because you are paying the only the interest on the loan, your monthly payment is lower. 

Payment Flexibility:  When you have an interest-only loan, it gives you the flexibility to either make your interest-only payment or put an additional amount that goes to the principal. 

Free Up Money:  Because your payment is significantly lower than a fully amortized payment, this frees up money for other things.  The smartest way to use the money that you have freed from paying towards your house is to put it towards...

Continue Reading...

Recovering From The Holiday Hungover

Did the holidays leave you with a debt hungover?

Are you regretting spending all that money on buying all those gifts? Are you in fear because you don't know how to manage your debt?

According to a survey made by Mr. Cooper (mortgage company), " one-third of Americans wished they could have skipped the holidays rather than spending it on gifts." Also added, "Thirty-two percent of Americans who purchased holiday gifts paid with credit cards."


I'm going to give you seven steps to manage your holiday hungover and do damage control right away.

Step One: Stop The Regrets
The first step to getting rid of your debt hungover is to stop with the guilt, the blame, and the regrets. It is time to shift your focus from debt to solutions.

Step Two: Track Your Spending
Yes, it is time to tight up for a bit and track all of your spendings. This will require creating a budget or spending plan. Don't know how to do this? I am opening my minicourse on How to Become Financially Fit By Creating a Spending...

Continue Reading...

401k, The Poor Men's Retirement Plan

 

Financial literacy is very rare in the US.  Actually, only 5 states enforce some sort of financial class in their high schools.  I am talking about teaching how to pay bills, how to build good credit, how to avoid debt like student loans. 

Among those states are Utah, that scored the highest for having a required semester class on personal finance.  The other ones are Alabama, Missouri, Tennesse and Virginia.  It is sad to say that states like California, Massachusets, and Pensylvania don't even have an education program on how to teach people about money. 

So what does the 99% of the population do when it comes to retirement plans and financial education?  

Most people trust their employer's retirement plans.  Not because they know that it is the best way, but mostly because they don't know any other option.  The majority of people in the United States signed up for their employer 401k retirement plan.  

...

Continue Reading...

How to Achieve Your Goals?

Have you taken the time to set up your goals for 2018?  What is going to make this year different or better than the previous years?

I am going to share with you the 5 steps that are necessary for you to set up your goals and I am going to give you the key to reach them effortlessly.

First, you have to have a clear vision of what you want.  If you are not clear, it will be difficult to reach it.  Therefore, make sure that you know what you want and be specific when you write it down.

Second, you have to have a burning desire and a why and strong enough reason on why you want to achieve the goal.  There has to be a driving force that moves you constantly, even when you don't want to.

Third, visualize your goals through vision boards, or read them out loud daily.  When you see them, heard them and feel them, it will be more real to you.

Fourth, have a deadline.  As you know, a goal without a deadline is just a wish.  And create...

Continue Reading...

Talking Finances With Your Significant Other

 

The number one reason couples split up and ended in divorce is Money

One reason is that they have a different point of views on how to manage the finances. The other reason is that they both have weak money habits and cannot handle it correctly.  

The lack of communication in a lot of couples could create more debt in the household.  Why?  Because where there is not a good communication, it creates a void. And most likely, shopping, things will be filling up the emotional gap. 

Ask Yourself: 

Are there any secrets when it comes to finances within your household?  Sometimes one of the spouses doesn't know what the other is either spending or saving.  A lot of times, one of them don't know what the other's income is.

They do talk about money, but not openly and honestly. 

  • I know couples that purchased things behind the back of their spouse. 
  • I know couples that one of them have a secret savings accounts because...
Continue Reading...

How To Avoid Overspending During The Holidays?

budget holidays spending Nov 22, 2017
 

The Holidays are around the corner, and the temptation of commercialism and marketing, decorations and more are going to be influencing us. 

All the stores get decorated and the holiday spirit is in the air.  But that also means that everyone is in the spending mood, and therefore we need to make sure that we don't overspend.  

What we want to do is follow specific steps to avoid overspending.  The first thing that we need to understand is that the Holidays is not about spending and buying gifts. The most prominent meaning is to spend quality time with people that you love, friends and family. 

However, we understand that it is difficult to avoid seeing the newest items and latest technology coming out and influencing us to spend more.  And don't forget that is a commerce tactic to be able to keep the economy above.  

So what can we do to protect us from the influence and avoid overspending?  How to prevent the hungover in January...

Continue Reading...

7 Things That Make Women Financial Needs Different From Men

finances money women Nov 03, 2017
 

This might come as a surprise, but the reality is that women have different financial needs than men.  Why? Because we are different, we are treated differently, and our lives are different than men.

So today we are going to review 7 things that make women financial needs different from men. 

  1. The Pay Gap- As women, till this date, we are still getting paid less in the workforce.  This is due to various reasons.  One of them is that when a woman looks for a job, if she doesn't have at least 90% of the requirements for the job, she will not apply, and if she does, she will feel that she doesn't "deserve" to negotiate because she didn't have all the qualifications.  As for men, if they have at least 60% of the requirements, they will apply as they say to themselves, I can figure out the rest.  Plus they will negotiate their salary as well.   The other thing that causes the pay gap, comes directly from the employers, a lot of them still think...
Continue Reading...

Do You Know How Much Are You Paying in Fees On Your 401k?

401k 403b finances retirement Oct 30, 2017

Do you know? Most people are not aware that they need to pay fees on their 401k. In a survey conducted by Woelfel Research, Inc. of Dunn Loring, VA, revealed that "7 out of 10 people (71%) had no idea that they have to pay fees in their 401k.  Also, about three in five (62%) are unaware of how much they are paying in fees."

This is alarming and worrisome as you do want to know how much are you paying in fees.  

What Your Employer Know and What You Know

There is no congruency between the employer version and the participant version. Most likely as a participant what you will see in your disclosures is the following: "Additional administrative fees may apply" or "contact your administrator".  Unfortunately, your administrator is your employer which means that most likely, they will have the employer version of the disclosures.  The financial companies are making these disclosures so difficult to understand that it can be overwhelming. 

Can you find your...

Continue Reading...

Do You Have An Action Plan For You And Your Family?

 

Recently, I went hiking, and I had the chance to talk to the Fire Department in Laguna Beach, and they gave me a booklet. It is called Ready! Set! Go! Your Personal Wildfire Action Plan. It's an emergency plan or an action plan in case of a fire emergency, and it made me think about this: Do we have a family emergency plan? For example, if you are at your house and there's an emergency, and you have to evacuate immediately, (and you know that this is) happening everywhere these days).

Do you have an action plan with your family so you can in 10 minutes or less grab all of the most important items and get out of the house?

In my personal experience, a lot of times we don't, we haven't think about these things because it doesn't happen that often. However, I think it's essential that you have a plan of action where whenever there is an emergency you get to go and grab specific bag and just head out. This is very important. Another thing the booklet suggests is to have a point of...

Continue Reading...
Close

50% Complete

Awesome! 

Just fill out your information below and I will take care of the rest...