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?

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 

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 

THE CART BEFORE THE HORSE....

Very few of us have had real guidance in terms of how to have a healthy financial lifestyle. We may have picked up some good AND bad habits from our parents and grandparents. I always remember my grandmother saying 'You MUST save for a rainy day" yet while that was one of my early memories of money by the time I was 16 and had my first job I immediately wanted STUFF!!!  I realized money was a way to freedom. Freedom from the constraints of NO. If I wanted those jeans I didn't have to ask for the funds, I just bought them. If I wanted a certain shampoo or hairspray that my mom didn't want (or couldn't splurge for) I bought it.  The freedom was something new and I LOVED IT!! I loved the independence it allowed me and it was that feeling that led me for many years. It made me want to work. That was a great thing because in order to have the things I wanted I had to work for them.   The reality was however, that while my mom taught me to balance a checkbook by the age of ten (was one of MY chores!) I really didn't want to 'structure' how I handled money. I just wanted to 'use it'.  

I think this is true for many of us.  We start to 'earn' our way and 'buy' the things we want and because someone else is taking care of many of the things we need we get off on the wrong footing. We shoot from the hip so to speak and don't have a real plan about how to handle our finances. We get to our full time job, we enroll in benefits that we don't understand, we start to save for retirement because we are told we will get 3% matched and we roll forward. Many of us however look like the photo above, the cart is leading us, not us leading the cart!  

What is wrong with this picture? The cart doesn't move!  

Many of the couples and singles I meet with have money in their retirement accounts yet are carrying credit card debit of $10-15,000 at a 14.54% interest rate. They are socking away money into retirement and carrying such a heavy consumer debt load that can't be attacked because they have it backwards.  The steps I teach are pretty simple. You do them IN ORDER. They work! Millions of Americans have implemented these steps and reached a new financial freedom that they never imagined possible.  You do them in this order:

• Step 1: Save $1000 ($500 if you are earning under $25k year) into a small emergency fund
• Step 2: Pay off ALL non mortgage debt smallest to largest (this is called the Debt Snowball)
• Step 3: Now fund a fully funded Emergency Fund saving 3-6 months of your monthly expenses
• Step 4: NOW start to put aside 15% of your household income into tax favored retirement funds
• Step 5: NOW start to put aside 15% for college planning for your children
• Step 6: PAY OFF your mortgage early!Step 7: Build your wealth and Live & Give like no one else!!!!!

Designing & mapping out a plan helps us reach our goals quicker. When you lead the cart and know where it's going we can actually get there!  What are you doing to work your way towards financial freedom? Do you have a real plan?