STOP SHOVELING YOUR HARD EARNED MONEY OUT THE DOOR AND START BUILDINGWEALTH!

Getting yourself debt-free, you will be able to free up your most powerful wealth building tool, YOUR INCOME.  Building wealth takes dollars. Building wealth takes less expenses and more income. When you stop shoveling your paychecks out the door to credit card companies, car payments, personal loans, student loans, past due medical bills, you will have money to do things like saving for emergencies, remodeling the house, taking vacations that won’t follow you home and investing for retirement --or better yet: actually retiring!

Think about it. If you are currently carrying a $10,000 credit card balance at an annual interest rate of 24% you are literally flushing $2400 a year away for NOTHING. That’s $200 a month! It’s just money that the credit card is taking from you. If you are able to pay that card off, those dollars can be reallocated and spent where and when you want.  Most Americans today think that $10,000 of credit card debt and two car payments in the household are ‘normal’.  This ‘normal’ is making the credit card companies rich. Last year it added up to them earning $18.5 BILLION dollars in interest charges. American’s habits of charging things like gas, groceries, clothing, mani’s/pedi’s, tools, car repairs, etc added up to a whopping Trillion Dollars last year. It’s time for a shift in mindset, behavior AND habits.

I teach my clients to use the debt snowball technique once we establish their monthly budget. 

How does the debt snowball work?  Its simple. You list your debts (other than your mortgage) smallest to largest by amount owed.  Don’t worry about the interest rates, just list them! ANY and all extra money goes to the smallest debt on the list each month until it’s paid off. Why do I not suggest you pay off the highest interest card first?  I agree that mathematically it’s correct that you would pay off the highest interest card/loan first BUT this is not about math.  It's about behavior.  If it were simply a mathematical issue you would have already done the simple math and realized that there wasn't enough coming in to pay off what was charged or bought.  Using the snowball and paying off the smallest debt first gives you instant success and you can see and feel the results of ridding yourself of a debt. Once you do that with one, you will want to continue until it’s ALL gone!  There are plenty of tools that can to show the efforts of this technique. For more information on how a financial wellness coach can help you gain back control of your finances visit my website at www.sickofthehustle.com

How to use the 'first car' as a great financial lesson with your kids….

There are many 'teachable' moments in terms of 'finances' that we can use in guiding our children. The 'first car' is one of them.   Putting your kids on a 'commission' at an early age and paying them once a week for their chore list,  instills that they earn when they work.  They gain a sense of 'ownership' and 'pride" in their efforts. They get to watch their efforts accumulate and they can set goals for how they will use THEIR money.

I wrote a blog post just about one year ago and TODAY there is a new car sitting in my driveway! My son Alex had diligently saved HIS money for his first car. I had established early on (age 12) that I was not buying him his car (same with his sister 5 years ago so he knew I was serious) I will 'match' what he saves up to $3000. I had to set a threshold, because Alex would have worked and saved diligently to get the car he wants which could have turned out to be a $14,000 'first car'.   Let's face it, when it's their funds they are using, they make more calculated decisions, versus when we are picking up the tab. So he sifted and sorted over the past three months to find what his money could get him. He found a 2009 Dodge Avenger with just over 130,000 miles and got it for $1000 under book value at $4000! (trust me when I tell you he seemed more concerned about not using up his entire 10 years of savings in one spending spree!) When we let our kids know that we aren't paying for all they want because we already provide what they 'need' they may at first seem slighted, but they come around eventually.

Through this process HE learned patience. HE learned goal setting. HE learned contentment. HE learned to negotiate. HE learned to shop and research.  And most importantly HE learned he was capable.

I believe these qualities are so important and if I can use the 'first car' as a way of invoking them, it's a win win for both of us! Have you thought about milestones that you can use to raise financially responsible young adults?

RESISTANCE…

RESISTANCE: The law of physics says that for every 'action' there is an opposite 'reaction'.  If you learn to understand that this is so, your added awareness to the law of resistance, can help you hold stronger, as you walk towards your dream of Financial Peace.

Think of a rubber band.  Resistance comes when you first take a hold of each side and start to pull them apart.  Isn't that also true of how we feel when we first begin to work on our financial wellness plan?  The 'feelings' that come up as we step onto this new road are overwhelming at times.  One partner may be excited to get started and the other resistant.  In a single's situation, you may be ready in your heart but your head starts to tell you differently.  The funny thing about resistance is that you will find as much resistance as you did in the beginning as you near the end of your goal. Why? Because that's the law of physics!  The more we pull outward to see how strong that elastic really is, we have a new 'fear' of it breaking, so we are resistant to continue to pull.  I've seen many people start their journey off strong and as they are so so close to having their debts all paid off, retract due to resistance.

So, how will you know if you are in 'resistance" at the beginning or towards the end of your journey? Quite simply.  You will MAKE EXCUSES.  You will PROCRASTINATE.  You will START SLIPPING back into your old spending habits. You will STOP BUDGETING. You will STOP COMMUNICATING.  You will STOP WORKING THE PLAN.

At the 'beginning' of working on your new plan,  you might find yourself saying things like, "I have no time", "I'll just watch you do it and see how it works", "that's just not MY thing", But what is 'x' happens?".

At the end of working on your new plan, you might find yourself saying things like, "But we've worked so hard for the past few years, let's just reward ourselves", "I'm sick of measuring everything I do!", "I meant to fund the envelopes but forgot", I don't know where that extra week's paycheck went this month, was there really an extra week?",  "we've skimped this long, I need to splurge just once."

All of these statements are clear signs that you are 'resistant' and resistance will inhibit you reaching your goal is you don't see it appearing.   If you find yourself using any of this language, do something about it today.  Regroup. Recommit. Reconnect.  HOW?  Sign up for a Facebook support group and share, such as my Sick of the Hustle Budgeting discussion group-- it's a great forum to connect with others on the same journey.  Sign up for another Financial Peace University Class in your area.  Get one on one coaching to help you along. (that's my specialty!). Get an accountability partner.  Read Dave Ramsey's Total Money Makeover or Smart Money Smart Kids (again). Listen to some Podcasts on financial wellness. Share your success with someone else who is struggling and help them.
     
Stay Positive and Keep all of these 'tools' handy in your toolbox when resistance rears its ugly head!

Michelle
www.sickofthehustle.com

I LOVE MY WORK AND THIS IS WHY…

CHANGE IN ALL FORMS MATTERS! 

What people don't always 'feel' is possible when they take on something they want to change or improve,  actually IS possible! 

With a little guidance and direction in any area of our lives that can use improvement, we can reap HUGE benefits.  MAJOR shifts and changes can occur in a short time if you are willing to be 'coachable' and put in new efforts! 

It is human nature to have areas in which we need to grow and learn. I always joke that "since I'm still on THIS SIDE of heaven, I must have MORE work to do."  It is so so true! 

The things that I needed to learn in my 20's are certainly not things that I'm learning in my 40's.  Yet I had no idea in my 20's of the things I would still be needing (and wanting) to learn in my 40's.  I've always been pretty open to self education and always wanting MORE in terms of knowledge, but truth be told, many times I focused my attention to learning in areas that I was already pretty sufficient in. I have NOT always put the effort into areas where I lacked skill or motivation.  Case in point --after my recent return from Mexico, I truly think it's time to purchase the Rosetta Stone Spanish version and get started on what I've been saying I'm going to do for more than 10 years-- LEARN SPANISH! 

You see ANY CHANGE and GROWTH starts with a simple decision that we can know and learn more.  Then it takes action. We can't just WANT to learn something, we have to DO something to learn. 

I have many clients who seek me out because they are looking for support and a change in the area of handling their personal finances. It's not always bad. 

Sometimes it's a recent college graduate who is just starting out on their own but have no idea how to budget or handle their own money and new living expenses. 

Sometimes it's a new couple who have no idea how to manage their money jointly or how to handle what each just brought for debt into a new marriage. 

Sometimes it's a couple who have fallen on hard times such as a job loss, or a medical issue that eliminates one of them working, kids are now embarking on college, or over spending has finally caught up with them.  

Sometimes it's a recently divorced man or woman who is trying to adjust to a new life as a single person/single parent and unsure of how to make their finances work with less than what they had before.  All of these client scenarios improved once we started our work together but it started with a desire to learn and grow…

I just received this testimonial from a new client….

"As a person that has never been good at saving, I really didn't think that Michelle could teach me anything new about managing my money. But I was so wrong! In 2 months, she has helped me create an emergency fund that seemed completely unobtainable. She has been extremely easy to work with, and she has given me excellent guidance throughout this financial process. From making very difficult phone calls to creditors to realizing that the most important things don't need to cost a lot, her coaching has been a blessing! I highly recommend her to anyone needing guidance." Dawn C.

If you feel you can use some guidance or direction to help you manage your money better MAKE THE DECISION to get more information on how it works!  Check out my website at www.sickofthehustle.com

Michelle 

Denial…"I'm not that out of shape!"

One of the most common themes I've struggled with in my own life is the "I'm not really that out of shape!"  Yet I've taken the same 25 pounds off and on again for the past two decades…over and over and over again.  First, the clothes start to get a little tight, but I tell myself "I'm not really that out of shape".  Feeling sluggish by 3pm becomes a daily occurrence and I add more caffeine and tell myself again "I'm not really that out of shape". The stairs seem to make me more 'winded' each time I have to track laundry up and down but you know what? You get it!  So the imprints of these things start to affect me in a way that I start thinking I better do SOMETHING. So I get motivated. I decide on what  plan of attack I'll take. I get to the gym, take a walk, eat better…do well, shed some pounds and start to feel BETTER!
                  But then something happens.  I get busy, stressed, start feeling selfish for taking 'ME time' away from my family and business and slowly slip into those old habits and the pounds come back again.

One of the ways we can combat this is to ask for support/mentorship. This past year my weight loss goals have been met and with relative consistency because of the help of a trainer and wellness coach. I've found that when I have more  'skin in the game' I am more committed and I'm seeing longer term results and developing a healthy pattern of new behaviors.

                  The same is true of developing a healthy plan for your finances.

Many of us, me included, hit periods where we start 'the plan'  to spend less and save more.  Commit ourselves to stop charging and start paying back on things we splurged on month's ago.  How many of you are still trying to pay for Christmas '2014 or summer vacation from LAST year?  How many of you are still paying for your college education and yet haven't seen the inside of a dorm room in nearly a decade? We get 'on track' but then something happens.  Not the normal 'Oh no, Alex's cleats don't fit anymore and tryouts are next week!!!" OR "he's turning 16 in two weeks and the driver training enrollment needs to be in NOW?!" type stuff. It's more like this:  "I've cooked three nights in a row and no one wants the leftovers the heck with it, let's go out!" OR "I can't believe it, I FINALLY got a 30% off code at Kohl's!"  and….. WE GIVE IN.  WE GET "OFF TRACK".  We think, just like other struggle areas that "we are really not THAT bad'.   But our perception is tainted. We look around and try to justify that 'everyone' does it. We tell ourselves that our kids need to have a better education than we did no matter what the cost. Our student loan feels like a family pet. We end up working harder &  longer, and many times in jobs that are unfulfilling and even stop believing that the life we dream about is even possible any longer.

   How would using a financial coach benefit you in the way a wellness coach benefited me?

• Do you need help navigating through a financial crisis?  
• Building a workable budget? And having an accountability partner as you learn your way?
• Need help eliminating your debt once and for all? 
• Learn how to deal with collectors? 
• Establish a plan for retirement and college?

These are all areas of support where real guidance could make huge difference in the long term quality of your life!

DON'T LET A "TREAT" SCREW UP YOUR PLAN TO CRUSH YOUR DEBT!

Sometimes, when you're working your plan to pay off debt and get to your debt free dream, you feel the need to treat yourself to something!  I came across a really neat budget tool to help decipher the 'cost' of opting to buy yourself a 'treat' while you are working your plan to pay off debt.

For those of you who know my personality or work with me one on one, I'm a FACT based decision-maker.

I ask my clients to look at both the pros and cons  of decisions BEFORE making them. It's easier to 'own' your final decisions knowing the impact it has on your goals/plan.  It's so important to look at the 'treat' and know HOW it will affect your debt pay down plan.

For example,  if you currently are on task to pay off all of your debt within the next 46 month, a 'treat decision' can actually delay you by many additional months, maybe even a year. For example if you are currently paying down $22,000 of debt at an interest rate of 12.99%, making normal monthly payments, a $4800 Disney Vacation 'treat' would actually become a $6119 vacation!

Click the link and try it yourself…

http://www.whatsthecost.com/treats.aspx


Treating yourself occasionally can be a good way of keeping motivated or rewarding yourself while dealing with debt. This calculator isn't designed to convince you not to treat yourself, simply to give you an idea of the real cost!

REFLECTION LEADS TO CHANGE…

One of the most useful things we can do on our journey towards financial wellness is REFLECT. We all get in 'over our heads' for different reasons. For some of us, its childhood 'lack' and adult 'gain' that lead to our overspending. For some of us, its an emotional rise to spend money on things that make us feel better and forget about whats happening in our lives. For some of us, it's a gaining of 'status' that causes us to overspend.  For others its unexpected medical bills, loss of a job/income, a divorce. Whatever the reason, in order to change ANY situation and plan your way out, you must first reflect.

Start by creating a 'money journal'. A simple notebook will do OR get fancy and decorate a fun journal/notebook knowing your going to take this journey seriously.  Spend some time over the next few days thinking about and answering one or more of these reflection questions in your 'money journal':

• Name three things do you truly love to do.  Do any of these cost money?
• Name three things that you do regularly that you truly hate to do? Why do you do them? Are these in any way worth the reward you get for doing them?
• What things are preventing you from doing more of the things you love and less of the things you hate? How can you remove the things that stop you from doing more of the things you love?
• When was the last time DIDN'T feel badly about a purchase you made? Why did you feel good about it?   When was the last time you felt horrible about money you spent? Why did you feel badly about it?

Jot down your answers and do some 'reflecting' on them over the next week and share your thoughts with your partner, close friend, or with me on our Facebook discussion group:  Budgeting Group Sick of the Hustle https://www.facebook.com/groups/358488774329894/ 

YOU CAN'T WISH AWAY YOUR DEBT! YOU MUST HAVE A WRITTEN PLAN!

Many of my clients sit with me during their first session and say they just CAN'T cut their spending in certain areas, but we all know it comes down to wanting to get out of debt bad enough to make some serious changes.  Sitting down and filling out a basic budget is the first place to start. If you continually chose not to look closely at what is coming IN versus what is going OUT you can't possibly know what or where to cut.  It not just about cutting spending, its about DIRECTING your money.  If your goal is to get out of debt you must direct dollars TO the debt in order to crush it and make it go away.

       You can't wish it away.

       You can't dream it away.

And while you may think you can 'earn your way' out of debt, I find many people get raises and still can't tell me where that money went this year. For many of us, the more we make, the more we spend.

It takes a PLAN. A WRITTEN PLAN.

This is where a financial coach comes in. My job is to sit down and help people establish and learn how to plan, decipher and WIN WITH THEIR MONEY.  It takes a few sessions for us to get your money plan in order but once it's written you can start implementing and working your plan.  The accountability helps for sure. The guidance as well.  Take the first step towards winning with money and hire a coach!

Check out my coaching 101 package at Sick of the Hustle Coaching Services

It’s time to stop thinking of college as a right and start to realize it’s a major purchase!

It's that time of year when families are anxiously awaiting college acceptance letters for their kids!

I know because we have been waiting as well.  It's an exciting (and stressful) time for these young adults and their parents as they await the 'word' about their child's future.  

Most families have made sure that their children have submitted to multiple schools to ensure that they are given at least two or more options to ultimately sit down and finally consider in the end.  The hardest part is the 'aftermath' of the letters?  CHOSING!  

For some it may not be an issue but for the average American family today, the cost of college has risen so high that the choice should not be easy. It should be a calculated decision process with finances being one of the leading factors. Why? Because the average college student today graduates with $30,000-40,000 of student loan debt. And that's the 'average'. Some graduate with loans in the range of $80,000-100,000!  This is debt that will weigh them down and delay them from starting a family, saving money, or buying a house.  And remember, if they meet their 'special someone' during or shortly after college, the odds are that their 'special someone" has a similar scenario! Multiply by 2 and these young adults are starting their adult lives shackled by $80,000-200,000 of student loan debt to pay back!

I meet with many families who feel they MUST allow their young adult their first college of choice, however when considering which college to chose many things can and should be considered/discussed before the final decision is made. 

You might think college can’t be done without debt, but Rachel Cruze, Dave Ramsey's spitfire daughter, begs to differ. “I believe the two keys to graduating debt free are pretty simple: hard work and preparation,” Rachel says. She shares the secret to making it happen in a new book she wrote with her dad called SMART MONEY SMART KIDS.  Here are a few of the highlights she suggests you consider:

• Choose a College the family CAN afford: It’s time to stop thinking of college as a right and start to realize it’s a major purchase. Treat it like one and shop around. In-state public universities offer a great education for a fraction of the cost of out-of-state or private schools. Kids can save even more by knocking out their first two years of prerequisites at a local community college then transferring to a state university to complete their last two years- If they want to be a graduate of a school they can attend in year 3-4 and BE a graduate of that school. 
• Apply for Scholarships and Grants: Senior year gives Junior the opportunity to earn free money by applying for scholarships and grants. And he doesn’t have to be a straight-A student to take home the prize. Dig deep and you’ll find all sorts of opportunities to save a buck. Encourage Junior to start early and submit as many applications as possible. A little hard work on the front end pays off in the long run!
• Get a Job: If you think Junior’s grades will suffer if he works his way through college, think again. A part-time job could actually help! Research shows that students who work 10–19 hours a week have higher GPAs on average than those who don’t. Being financially invested in his own education just might be what Junior needs to kick it into high gear and graduate in four years!

If you need assistance with getting your financial budget in shape before you broach the issue of college OR if you are already feeling the burden of tuition payments that were added to your budget,  I can help!  Check out my website and coaching packages at Sick of the Hustle Coaching Services