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Ep19 – Dear Debt – Mental Health and Money with Melanie Lockert

Episode #19 – Dear Debt – Mental Health and Money with Melanie Lockert




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Bio: Melanie Lockert started Dear Debt in 2013 as an accountability project for her debt payoff process. It grew into a community of dreamers, hustlers, debt fighters, minimalists, and frugal lovin’ adventurers to share thoughts, company, and Dear Debt Letters. She is an inspiration to many facing depression and other obstacles in dealing with debt and putting it in its place.

Show Description: We all know depression and mental illness are very hard to deal with and can create limitations in how we feel, think, and act. Today Melanie and I talk about some of the actions to take, and ways to think and encourage ourselves in dealing with depression and still making progress financially.

ShowNotes:

  • 1:27 – Emotions and Role Models
  • 3:12 – Fighting depression while still making progress financially
  • 5:00 – Dear Debt Letters – What are they?
  • 7:38 – Power of Writing Things Down
  • 9:45 – Mental Buckets
  • 10:50 –  Mentors and Coaches and Therapists: Outside Help Is For EVERYONE
  • 15:31 – Melanie’s story, hard months and easy months and honesty
  • 18:00 – Debt Fatigue: Define yourself
  • 21:34 – Vulnerability is strength
  • 23:30 – Melanie’s Maxim, Blog, and Book

Money Maxim

“A Closed Mouth Does Not Get Fed” – Melanie Lockert

MoneyMaxim Melanie Lockert

“You are not your debt” – Melanie Lockert

“The Faintest Ink Is More Powerful Than The Strongest Mind” – Jacob (Ancient Chinese Proverb)

“It’s important to tell the people that you love what you’re going through” – Melanie Lockert

Action Items

Forgive yourself, and recognize that you are not your debt.

Write your Dear Debt Letter! Read some on Melanie’s Blog, get the emotions out!

Organize some of your emotions into Mental Buckets.

Get your therapist! College grad program, mentor, mastermind, psychologist, roommate. Have people you regularly discuss and get help from.

Pattern: Recognize issue, make a plan, get a partner, get a community, constant honesty.

Mentions

Carl Richards Behavior Gap

OrderOfMan Podcast

Contacts and Links from the Show

http://deardebt.com

Melanies Book: Dear Debt

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Episode 18: NewlyWed Finances – With Dave Jacobson of CoachConnections

Episode #18 –  Newlywed Finances & Money Coaches – With Dave Jacobson



 

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Dave Jacobson HeadshotBio: Dave Jacobson, certified financial coach, enhances lives by empowering others to make better decisions with money that lead them to a financially fit lifestyle.  He has helped hundreds of individuals find financial peace through personal coaching and financial wellness seminars that focus on building and implementing a practical financial plan.

Coach Dave was nationally recognized for his personal money management expertise by The Lampo Group (Dave Ramsey’s organization) and leads Counselor Connections, a best practices group of top financial coaches from across the nation.

Show Description: Dave and I talk about marriage, finances, and some important things to do before you say “I Do”. We avoid the budgets and the numbers and focus on the thinking, actions, and understanding your partner and helping them understand you. We also delve into the value of a coach regardless of who you are, and what your

ShowNotes:

  • 0:39 – Dave Shares his history in Financial Counseling and about his personal life
  • 3:55 – Marriage: No One Tool
  • 5:15 – Communication and Unification
  • 8:00 – A mediator and guide – What a Coach is for
  • 8:40 – Areas of a healthy NewlyWed financial discussion
  • 10:50 – A Unified Vision
  • 14:15 – Dave’s Money Maxim
  • 16:56 – Starting To Talk, “As You Create:
  • 19:11 – Money is Emotional
  • 20:09 – What a Financial Coach is, Why Everyone Can Utilize One
  • 24:19 – Connecting with Coach Connections.

Money Maxim

Dave Jacobson - MoneyMaxim

Your What will only be as strong as your Why.  (This means that their passion leads, not the numbers). -Dave Jacobson

 

Contacts and Links from the Show

Here is the link to the free Guide  Free Newlywed Checklist from Coach Connections.

Coach Connection

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Ep17: Money and Mental Illness – Abigail Perry

Episode #17: Frugality for Depressives – Managing Money When Dealing With Mental Illness – With Abigail Perry



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Abigail Perry HeadShotBio: After a rare neurological disease nearly killed her at 19, Abigail was left with chronic fatigue and depression. She shares her story and encourages others. Abigail believes that “Everyone has limitations, no matter what your health and income levels look like. Most of us have a near-infinite number of things we should do (or want to do), but an all-too-finite amount of time and energy. Every day we make mistakes or take shortcuts due to overcommitment, stress, health issues or simple exhaustion. That’s not a flaw or personal failing. It’s normal. It’s human. The sooner we can accept this, the sooner we can find peace and balance in our lives.”

Show Description: Abigail and I discuss the influence of depression and mental illness on finance, and some practical ways to cope with finances while not giving up completely. We discuss comfort spending, creating inertia, and automation in making finances easier. Many many more powerful skills and ideas are found in her book!

ShowNotes:

  • 0:53 – About Abigail
  • 2:10 – Budgets and Mental Illness
  • 5:15 – Finding What Works For You
  • 6:50 – Online Bloggers: Only Sharing Success. “Everyone has Foibles”
  • 7:40 – The Foibles: Breathing Room, and “The Dad Syndrome”
  • 11:11 – Comfort Spending: Making Room For Hard Moments (and Weeks)
  • 13:40 – Building Enjoyment: Planning and The Power of Anticipation
  • 17:21 – What You REALLY Want – A Reason For Spending Habits
  • 20:40 – A Flurry of Powerful Habits from Abigail for Depression and Finances
  • 23:10 – Abigail’s Money Maxim

Money Maxim

MM36 - Frugality

“Celebrate Every Win, Big or Small, It’s Still Progress” – Abigail Perry

Action Items

Plan fun events 3-4 weeks out. Plan a vacation next fall, or next summer. Having an exciting event to build up to can keep you focused, empowered, and committed to a fun thing you can talk about, invite friends to, and help fight depression with. Plans create excitement, and a goal to work towards.

Realize when you’re expecting too much. And question why. Who told you that that expectation is required? Is it yourself? Or someone else who’s appearing perfect?

Create Buffer room in your Budget! If your spending plan doesn’t have extra money, or “cash nuances” or “fun money” you’re doing it wrong!

Share Your Wins! Share on FinancialGinger or In the Comments Below!

Contacts and Links from the Show

Buy Frugality for Depressives from Abigail Perry on Amazon! or from Barnes & Noble
I Pick Up Pennies, Abigails Blog. Her Facebook Group, Pinterest, and Twitter

Gift card granny is an aggregate site so you can check who has the best discount for the card you want. You can earn Granny Points when buying from certain sites, and you can trade those in for gift cards.

Unfortunately, Gift Card Granny doesn’t show results for CardCash though, which I also highly recommend. Every couple of months it offers an extra 3-5% sitewide. I get 16% off Walgreens or CVS gift cards.

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401(k) – 5 Deadly Traps You Need To Avoid When You Love Your Money

Financial Ginger - 401(k) traps

By Guest Author: Stacy Miller

Financial experts keep talking about 401(k) and how it’s beneficial for us. But do you know what it actually is? Well, Investopedia defines a 401(k) account, “A 401(k) plan is a qualified employer-established plan to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings in a 401(k) plan accrue on a tax-deferred basis.”

If a 401(k) account is used properly, then you can save a lot of money for the golden years of your life. However, there are a few traps or pre-retirement blunders you need to avoid when you’re participating in a 401(k) plan.

Trap #1. Using a 401(k) account as your credit card: Please understand one thing that a 401(k) account is not your credit card. It is a tool that can help you boost your retirement savings. But if you take out a loan from your 401(k) account, then it will be a terrible mistake. Here are a few reasons:
a) The outstanding balance will be due within 2 months of separating from your employer.
b) You have to pay origination fees and maintenance fees. These are extra costs.
c) You have to pay penalties in the event of loan default. Plus, the loan will be considered as a taxable income. (You’re going to be paying taxes, on your own money twice)

Trap #2. Assuming that 401(k) and Roth 401(k) are same: Both are distinctly different from each other.

According to Bankrate, a Roth 401(k) account is, “An employer-sponsored retirement plan that lets employees have the option of setting aside money from their paychecks that’s taxed upfront and saving it in a retirement account where it can grow tax-free forever. Money can be withdrawn tax- and penalty-free as long as the participant is age 59½ and has held the account for at least five years.”.
The key differences are:

401(k) – Contributions aren’t taxable for the year you’re making contributions (dont pay taxes now, pay them when you withdraw at retirement)

Roth 401(k) – Contributions are taxable for the year you’re making contributions (pay taxes now and not later when you withdraw during retirement)

401(k) – This is subjected to RMD by the day you turn 70.5 years old.

Roth 401(k) – This isn’t subjected to RMD by the day you turn 70.5 years old.

Let me define RMD for those who don’t have any idea about what a Required Minimum Distribution is: “A required minimum distribution (RMD) is the amount that traditional, SEP
or SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70.5.”

It is important to know the rules and do all the calculations correctly. Otherwise, you’ll be in a mess.

Problem #3. Not reviewing/updating your contribution percentage annually: You have to select a percentage that will be taken away from your wage and put into your 401(k) retirement savings plan. It has been observed that plan holders often forget about this contribution percentage, which is a big mistake.

Your financial health changes when your life scenario changes. For instance, you get married, you have your first baby or you get a big salary hike. If you analyze carefully, you may find that your contribution amount is either too big or too small. Though it isn’t investment advice and FinancialGinger cannot be responsible for the actions of readers based on its opinion, FinancialGinger generally recommends to at a minimum contribute the maximum match offered through your companies 401(k) program.

Problem #4. Not taking advantage of maximum employer match: You’ll lose a hefty amount if you miss out on maximum employer match. In a survey of 360 employers, it has been observed that 42% of them matched employee contribution. 56% of these employees only required workers to contribute 6% from their wage to qualify for the maximum employer match. It is said that the average missed employer contribution amount is $1336 every year.

Huge Issue #5. Not adjusting your portfolio at regular intervals: You need to rebalance your portfolio at the time of choosing index funds. It might be the case that you’re holding 90% in a low-cost index fund and 10% in government bonds. However, as the market condition changes, you need to adjust your portfolio allocation (What % of your money is in each asset class) as well.

If the S&P 500 has a huge rally (quick jump upward), it will be risky to hold 95% of your 401(k) in the index fund.

Action Items

1. Never take out a loan from your 401(k) account unless you have no other option. Analyze all your loan options and compare them with your 401(k) account. Know about the tax and penalties.

2. Review your percentage contribution whenever you experience major life events (marriage, a new job, or a pay increase). It is best to review it at least every year since your financial situation doesn’t remain the same all the time. Always opt for an annual increase option if your company has one. Annual increase options automatically keep your percentage match the same even if you get a pay increase.

3 (The most important action item). Once you’re eligible for maximum employer match, make sure you take full advantage of it. Make the required contribution to maximize your employer match.

4. There is no need to roll over your money from 401(k) account into an IRA at the time of switching jobs or retirement. It isn’t compulsory. If you’re satisfied with your current plan, then keep your money there. Also, many companies allow you to roll your 401(k) account from a previous job to the new job. Be aware of your options.

Comment from FinancialGinger: My Dad kept old 401(k) accounts from jobs worked 20 years ago. That may be good, or may be bad in your situation. Ask a Professional for guidance in investing. (Or wait until I pass my exams in Spring of 2018 and I can be your professional guidance!)

5. Several 401(k) plans have automatic annual rebalancing feature. Read the terms and conditions of this feature minutely to determine if it’s good for you. In case your plan doesn’t have an automatic rebalancing feature, you can select a date to adjust your portfolio every year. Many financial companies and ETF’s will rebalance at least once a quarter, this may not be best for you, but at a minimum, most professionals recommend at least annual rebalancing.

Conclusion
Depending on the rules, you may qualify to enroll in the 401(k) plan within 1-12 months. If you’re eligible to contribute from December, then don’t wait till the next year to establish your retirement account since (a) you can lower your taxable income for the current financial year by contributing your pretax dollars (b) your employer can contribute next year but make it count for the existing year. When you start a new job, try to set up your 401(k) account by December 31st if by all possible.

 

About the Author: Stacy B Miller is the content editor at Oak View Law Group. Her articles revolve around topics related to debt, credit, laws, money, personal finance, etc. You can connect with her on Twitter

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Episode #16 Happy Where You Are – Relationships Time and Money with Elizabeth Colegrove – The Reluctant Landlord

Episode #16 Happy Where You Are – Relationships Time and Money

with Elizabeth Colegrove – The Reluctant Landlord




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Bio: Elizabeth Colegrove is a landlord, a frugal living expert, and a proud world traveler. She is focused on early retirement and early financial freedom while maintaining a passion for traveling, exploring, and enjoying life! As a military wife who dated and married her sweetheart at a young age, she has many insights on early financial independence, expressing love to those close, and making everything enjoyable and fun.

Show Description: Today I talk with Elizabeth Colegrove from The Reluctant Landlord about dating, getting married young, and enjoying every part of it. Elizabeth met her husband at the age of 15, got engaged at the age of 20, and was married at the age of 22! We talk about enjoying time, and enjoying money, and enjoying life when one of those two are lacking!

ShowNotes:

  • 1:05 – Elizabeth shares how she met her husband
  • 2:30 – Dating at a Younger Age
  • 6:11 – Best Anniversary Ever! (The Effort Is All About Each Other)
  • 7:10 – A Peek into My Parents Anniversary 🙂
  • 8:30 – Making it work when you get married young
  • 11:20 – More things Elizabeth did to make it work when married young
  • 12:58 – Fun Runs the Show: Positive or Negative is your control
  • 13:41 – The biggest key to POWERFUL relationships. (13:41-14:01)
  • 14:01 – Making the most of a hard situation. Positive Style 🙂
  • 16:00 – Time. Money. Balance.
  • 18:10 – Saving $140,000 in 7 years. Couple Goals, and Working Hard
  • 19:59 – Going on a vacation to Hawaii and coming back with $2,500 dollars
  • 21:40 – How to make the 10 worst things in your life positive
  • 24:10 – More on making things positive and exciting
  • 25:50 – Example: turning 50-50 parent split time from a divorce into a positive thing
  • 27:11 – Elizabeth’s Money Maxim and Contact Info

Money Maxim

Maxim35 - Elizabeth Colegrove

“The Most Negative Things in your life can be the most positive if you can look at it in the right way”

“Your Feelings are YOUR Feelings”
“Take Your Tools and turn them into what works best for you”

“If you’re not liking a situation, CHANGE IT”

Action Items

Make a list of 10 things you HATE about life. Look at that list tomorrow, and think OKAY. How can I turn these things into a positive? (listen to 21:40-23:20)

Email me [email protected] , or [email protected] for help if you get stuck!

What is most available in your relationship right now? Time, or Money? Or neither? How can you make the most of it in a positive and uplifting manner? Comment below with something fun you’ve done recently!

Contacts and Links from the Show

Facebook:   Twitter:    Pinterest:    Website:   Email

 

Estevez Tax!

If you’re looking to get in on my exclusive partnership with Estevez Tax, and to get information on doing your taxes next year, book keeping for your business, or getting some tax consulting done for your business, or personal finances email me [email protected] Title: “Estevez: Tax Info”