These money saving tips could make a HUGE difference in your financial situation. Take the time to watch and change your future!
Put your money to work
June 22, 2015 by
The fifth and last phase in our financial freedom plan is to “Put your money to work”. Here is where the fun begins. Now you can build up piles of cash for investments. To build those accounts use the money you were putting towards your debts and emergency fund in phases three and four.
The following must be maintained to stay on the road to financial freedom:
1. Stay debt-free.
2. Accelerate paying off your mortgage to at least 15 years or less.
3. Maintain at least 15% of household income towards retirement, a fully funded emergency fund, and adequate term life insurance, if needed.
4. Pay cash for everything (except possibly real estate, an appreciating asset).
5. Diversify your investments.
Always keep in mind that you MUST fully understand the investment BEFORE you invest in it. Relying on someone else to “manage” your investments can lead to disappointment and frustration. So be sure that you have a complete understanding of all the risks before investing. Always remember no risk, no reward.
Please list some investment options in the comments that should be investigated.
Self first, then kids, then wants…
June 15, 2015 by
If 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.
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.
Always watch your nets
May 11, 2015 by
Spend 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.
Three tips to finding the right broker
May 5, 2015 by
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Finding the right broker is very important to successful stock market investing. We have come up with three tips to consider when you are looking to open a new brokerage account.
1. Mobile access – Nobody wants to be glued to a computer screen all day. Find an account that can be managed via smart phone so you can take your trading with you to execute trades on the road.
2. Trade execution – When you need to make a trade or adjustment, you need it done right away. Delay in execution will cost you money. Find a broker that has a lightening fast speed for filling orders.
3. Low commission rates – This is a big deal. Shop for low commission rates. The amount you pay per trade can make the difference between making hundreds, thousands, or even millions!
It comes down to weighing what is most important to you as an individual trader. Do market research on the different brokers and then narrow it down to three potential brokers. It would be wise to ask successful investors what broker they would recommend and why to help you make a decision. Either way, find a broker, open an account and start investing!
Please share what broker you use for your trading account.
Credit card insanity
May 4, 2015 by
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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.
The big payoff
March 20, 2015 by
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For a lot of people a home will be the largest single purchase they will ever make and the most expensive. Take a look at a 1098 form from a mortgage holder. It shows the total interest paid and the total amount applied to your mortgage. In the early years it can be very discouraging.
But you can change that! Get rid of any additional costs like private mortgage insurance (PMI), if you have it. Then apply that amount towards your mortgage every month.
Make additional payments any way you can. Pay half your regular payment every two weeks, if your lender will allow it, which adds up to an extra full payment every year. Or make one extra payment per year, increase your monthly checks by one-twelfth, or you could even use your tax refund to make a large lump sum payment.
Anyway you can do it, make a plan and make the BIG pay off. You can save thousands.
If you are living mortgage free, please comment on how GREAT it is!
Cutting the cable
February 13, 2015 by
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Do you remember a time when you could watch TV for free? Maybe you had to buy an antenna. I know it is a radical thought in this day and age where everyone has cable subscription service, but do you enjoy it enough to keep it? Is it just a habit to pay the bill every month? Take back control of your television watching! There are currently many options for your viewing pleasure beside cable television and usually with less commercials! One is to watch programing from your computer, which can be streamed wirelessly with Chromecast or connected with an HDMI cable. There are many programs available for FREE LIVE or sometimes you may have to wait for a short period of time after the show airs. There are also online pay services like Netflix or Hulu that charge a MUCH lower monthly fee, mostly under $10 per month. Consider it! I am sure you could find a use for that extra $100 or more per month. Couldn’t you?
What could you do with that extra $100 plus per month?
BULLSEYE Target
February 6, 2015 by
Image courtesy of David Castillo Dominici from www.freedigitalphotos.net
Target Department Stores has some great ways for you to keep more of your money! Besides the usual manufacturer’s coupons and Target coupons, they have a smart phone app called “Cartwheel” that provides some great savings. The app is easy to use and it can be used to scan bar codes of products in your cart to see if there are any additional savings! After you have added the products to the app it will produce a bar code that the cashier can scan which will deduct savings. Be sure to sign up for coupons to be mailed to you as well they provide some pretty good offers. Also their clearance is usually located at the ends of some isles and can provide some super deals. Lastly if you use the Target credit card they will give you 5% off everything you buy. There is some significant savings to be had. Target has hit the bullseye for savings!
Please share other stores that provide great savings.