Establish goals then lean in

June 16, 2015 by

Beautiful beach - Locke up Hawaii 2016Are you meeting your trading goals?  Do you have trading goals?  Everyone should have goals, it is a way to measure your progress.  If you don’t know what you are reaching for will you ever get it?  Probably not.  How can you reach a target you don’t have?

Begin with the end in mind.  For instance, how much will you need for that dream vacation?  If we planned a dream vacation for next year with a budget of $12,000, would we be able to go?  It depends.  If you carefully plan and track your progress, it is certainly more likely.

For example if the balance in your trading account is currently $50,000 you would need to earn 12% on those funds over the next twelve months to book the trip.  Should you just check back on your account in a year to see if you reached it?  Of course not, break it down further.  If you earn 1% each month on your account less fees, that will be 12% over the course of a year.  This goal should be checked on at least monthly to ensure it is on track.  You certainly wouldn’t want to start planning a dream vacation you cannot afford to take!

We have established just such a goal for our students under Locke In Your Success, LLC called Locke Up Hawaii 2016!  We congratulate all the participants as it is a big step to publicly state a goal for all to see.  It creates a greater sense of commitment and community around the goal.  Consider publicly stating your goals and find supportive peers to provide accountability and encouragement for you to meet them.

Please click like if you have publicly stated your goals and comment about your results.

 

Filed Under: Money Management, Stock Market Tagged With: , , , ,

Self first, then kids, then wants…

June 15, 2015 by

Beautiful sports carIf you don’t take care of yourself how can you take care of anyone else?  This is our golden rule for the fourth phase in our financial freedom plan, self first, then kids, then wants.  This phase begins after all your debts have been paid off, except for your mortgage.

In this phase you set yourself up to be secure by establishing a full emergency fund of six months worth of expenses and ensure that a full 15% of the gross household income is being saved for retirement.  TIP:  Establish an automatic deposit into your retirement fund to make sure that money gets to where it needs to go!

Then you can establish a college fund for your children if you so choose.  Setting aside a set amount each month is the best way to reach your college fund goal.

After those have been established, then some of your wants can be funded as long as there aren’t any loans involved!  Set up accounts for each of the wants like cars, trips, and toys. TIP:  Please keep the total value of ALL vehicles less than 40% of your annual gross household income.

Take advantage of our FREE offer before time runs out!  Until Friday, June 19th, we are offering a FREE analysis of your financial situation.  Just complete the worksheets by clicking the link.  There is no cost or obligation and of course your information is kept confidential and secure.  Simply submit your worksheets, we will carefully review them, then schedule a follow up call to discuss how to accelerate your financial freedom journey.

Filed Under: Money Management Tagged With: , , , , , , ,

Debt Destroyer

June 1, 2015 by

Debt destroyerLine them up and knock them out.  Destroy your debt and don’t add any more.  Just think of all the money that could be added to your net worth instead of the debtor’s pocket.  Keep as much of your money as you can.

The first step in phase three of our financial freedom strategy is to list your debts with their balances and applicable interest rates.  Then sort the list by the interest rate, highest to lowest.  Typically any credit card debt will be at the top.

Next, pay the monthly minimum payment on all your debts, but pay more towards the debt with the highest interest rate. Pay as much as you can possibly scrape up every month until that one debt is paid off.  Consider selling some unused items in your home to add to your payments to destroy that debt.

Once the first debt is paid, take all the money you were paying towards that debt and attack the next debt with the highest interest rate.  Of course continue to pay the minimums on all the other debts.  And so on until all the debts have been destroyed!

Please comment on your experience of paying down your debt.  Share because you care!

As a reminder, until Friday, June 19th, we are offering a FREE analysis of your financial situation.  Just complete the worksheets by clicking the link.  There is no cost or obligation and of course your information is kept confidential and secure.  Simply submit your worksheets, we will carefully review them, then schedule a follow up call to discuss how to accelerate your financial freedom journey.

 

Filed Under: Money Management

Starters

May 25, 2015 by
Start Key Showing Car Or Vehicle Ignition

Start Key Showing Car Or Vehicle Ignition

Sometimes you just need a running start in the right direction.  The second phase in our financial freedom plan is to get you started in the right direction by being prepared.  In order to stay on track you will need to have the structure in place to succeed.

To get through the “Starters” phase you will need to:

1.  Establish a “starter” emergency fund

2.  Take full advantage of an employee retirement matching program, if one is available to you

3.  Ensuring there is term life insurance in place, if there are others who are relying on your income.

Being prepared for the future is an important step towards financial freedom and we would like to help!  Until Friday, June 19th, we are offering a FREE analysis of your financial situation.  Just complete the worksheets by clicking the link.  There is no cost or obligation and of course your information is kept confidential and secure.  Simply submit your worksheets, we will carefully review them, then schedule a follow up call to discuss how to accelerate your financial freedom journey.

Filed Under: Money Management Tagged With: , , , , , ,

Financial Freedom Case Study Webinar

May 18, 2015 by

Check out a replay of a financial freedom case study of the Spendalot family.  We hope their story will inspire others to begin the journey to financial freedom.  To help we are offering a  FREE analysis of your your financial situation.  There is no cost or obligation and of course your information is kept confidential and secure.  Simply submit your worksheets, we will carefully review them, then schedule a FREE follow up call to discuss how to accelerate your financial freedom journey.

Please click this link to get copies of the case study spread sheet for a closer look.

Are you ready to be financially free?  What phase are you on?  Please comment below.

Filed Under: Money Management, Webinar Tagged With: , , , ,

Always watch your nets

May 11, 2015 by

FInancial dataSpend less than you earn, is the golden rule for phase one in our financial freedom plan.  In the financial case study webinar last week we were able to show how the Spendalot family went from a negative monthly net  to a positive net that can accelerate them right out of debt.  With determination, focus, discipline and hard work it can happen relatively quickly.

Two of the tools we used in the case study were a Net Worth Worksheet and a Monthly Spending Plan Worksheet.  We have uploaded those worksheets under our Resources; Money Management page on our website.  Click here to get a copy for your use.  If you have any questions regarding these worksheets please submit your questions to questions@financialfreedomclassroom.com.

SPECIAL OFFER!  For the next 30 days we are offering a FREE analysis of your completed worksheets.  There is no cost or obligation and of course your information is kept confidential and secure.  Simply submit your worksheets, we will carefully review them, then schedule a follow up call to discuss how to accelerate your financial freedom journey.

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Credit card insanity

May 4, 2015 by
Image courtesy of scottchan at freedigitalphotos.net

Image courtesy of scottchan at freedigitalphotos.net

The definition of insanity is doing the same thing over and over again but expecting a different result.  If you are working on becoming debt free you cannot continue to charge anything to your credit card and carry a balance over month after month.  Do you realize that the minimum payments established by most credit card companies aren’t designed to pay off the balance?  The payments are set up so that the interest is paid first then, maybe one percent of your outstanding balance.  If you continue to charge ANYTHING to the card the balance will NEVER be paid off.  Stop this insanity!

Most credit card charge very, very high interest rates.  Your money doesn’t go very far with these high interest rates and there is very little left over to pay the principal. In order to get rid of those balances it requires not charging any more and paying as much as possible to the card with the highest interest to pay it off.  Determination and focus is what is required.  Do you have what it takes?
This Thursday at 7pm we will dig into this topic as well as many others with a financial freedom case study of the Spendalot family.  Click here to register to join us and bring your questions.
Click like if you will be joining the webinar.
Filed Under: Money Management Tagged With: , , , ,

Trust Trusts

April 27, 2015 by
Image courtesy of Stuart Miles at freedigitalphotos.net

Image courtesy of Stuart Miles at freedigitalphotos.net

Trusts are not only for the wealthy, they are really for anyone who has assets to transfer.  The assets will be transferred privately through the trust without having to go through the very public probate process.  A trust is a separate entity that has a grantor, the person who established the trust, a trustee, the person who will manage the trust and the beneficiary, the person who will benefit from the trust.  In some situations, one person can take on all three roles.

The grantor has the right to tailor the trust to meet the needs of the beneficiaries.  In addition, the grantor has the right to specify how the assets in the trust will be invested.  In order to ensure all assets are included in the trust upon death, the grantor should establish a “pour over” will to ensure all assets that were obtained after the trust was established will “pour over” into the trust.

One really important feature of an irrevocable trust is that it can protect assets from the costs of nursing home care.  This type of trust can ensure your assets are protected and are distributed as you had determined even if you require nursing home care.  Without an irrevocable trust, your assets would be liquidated and used to pay for your care.

As always we urge you to seek a professional, we are simply providing some general information about trusts but this is a very complicated topic so please contact your trusted estate planning attorney as well as a certified public accountant for further discussion.

Please share this post with others who might benefit from it and please comment about your experience with trusts.

 

 

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Entertainment for free

April 20, 2015 by
Spotlight Joy Represents Stage Lights

Image courtesy of Stuart Miles from www.freedigitalphotos.net

We teach that while you are paying off debt you can not spend money on anything other than what is in your spending plan for your necessities.  Have you been sacrificing and working to pay off your debt without any reward?  If you have, you could be close to the breaking point.  You need to get out and have some fun without spending anything.  What do you do?

Volunteer your time.  Here are some ideas of things you can do to get out and be entertained:

  • Offer to usher for some shows.  In exchange for your services you get to watch the show.
  • Coach others in a sport you love and have some time on the field.
  • Chaperone some field or camping trips at places you think are great.
  • Assist an art instructor in a medium you like and would like to learn more.

We bet you will find you get far more than entertainment.  Try sites like www.volunteermatch.org and the opportunities go on and on.

Please comment on other volunteer opportunities available that can provide some entertainment value.

 

 

Filed Under: Money Management Tagged With: , , , , , , , ,

Investing is for everyone

April 14, 2015 by
Image courtesy of Stuart Miles at freedigitalphotos.net

Image courtesy of Stuart Miles at freedigitalphotos.net

How do you teach your children or even yourself to be financially prepared for life?  Can you count on social security or pensions to carry you through your golden years?  Unfortunately, no one has a crystal ball to see into the future, but historically speaking there have only been decreases in the amount of support from these sources.  So how do you ensure a secure financial future?  Make your money work for you by investing.

It does not matter if it is individual stocks, mutual funds, options, REITs, ETFs, IRA, ROTH, 401k, TSP, etc.  Each person should have a portion of their portfolio invested in the stock market and discover the amazing effects of compound interest.  At today’s interest rates at the bank with money markets hovering at 1%, it is an impossibility to get your money to grow.

If you aren’t investing yet, get curious, start learning about the stock market, and teach your children to ensure both your futures.  Of course, make sure you are debt free except for your home loan before you start investing.  Then learn all you can and reap the rewards!

Click like if you are currently investing in the stock market.

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