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Blog Business Cash Management Personal Saving & Budgeting

Inner Financial Peace

Many people see money as something to be stressed over. But is it actually possible to gain inner financial peace? Yes! How? Read on.

Tip #1: Define a financial goal

Tracking goals and linking them to a larger purpose increases the likelihood of success and motivation. For instance, you are much more likely to save money, if you are saving a specific amount to go on vacation, rather than picking an arbitrary amount for no particular reason.

When setting a financial goal, ask yourself these three questions:

  1. How much?
  2. When will you reach this goal?
  3. What actions will you take?

Example:

  • How much: I am going to pay off $8,000 in credit card debt.
  • When: By July of 2020
  • What actions: I am going to set a budget and stick to it. I will restrict eating out with friends to once a week and reduce impulse spending. I will make a monthly payment plan that will lead me to success.

It’s helpful to know why it’s important for you to reach your goal. Refrain from berating yourself if you slip and overspend now and then. No one is perfect! If you spent too much money on a frivolous purchase last week, make a note of it, and resolve to do better.

Tip #2: Remove shame

You spent a lot of money in the past that you didn’t have. You racked up quite a bit of credit card bills. You made careless financial decisions. Now, you want to be proactive about making your financial situation better. Do you think feeling shame around your past mistakes is helpful or hurtful to your new financial goals?

Hint: Shame is terrible if you want to achieve a goal.

So, how do you get rid of shame, or at the very least, lessen its hold on you? Write down how you feel about your finances. Do you feel scared? Ashamed? Overwhelmed? Writing down your feelings can help to dissolve the strength of the emotion, which in this case is shame. If your feelings of shame and guilt do not dissipate, then you may want to talk to a trusted friend.

Tip #3: Visualize the end result.

Visualize how you will feel when you reach your goal while being realistic about the obstacles you will face. For example, if your goal is to pay off debt, but you have to buy Christmas presents for your nieces and nephews, then it will be helpful to brainstorm ways you can spend less.

Tip #4: Create a positive environment

We all have both negative and positive people in our lives. Do yourself a big favor and only talk to your more positive friends about your financial goals. Saving money and paying off debt can be challenging – don’t add to that challenge by talking to someone who you know will be all doom and gloom about your goals. Talk to your self-deprecating, sarcastic, ‘negative’ friends about other things.

Tip #5: Make a weekly date with your money

Hey, money. Do you come here often? What in the world is a ‘date’ with your money? It’s simply this: go somewhere you love, such as a bookstore or your favorite café for one hour a week. Pull up your bank account and have a look at your current money situation. Ask questions such as:

“What has been surprisingly easy about saving money?”

“How much did I spend this month on buying groceries instead of eating out in restaurants?”

“What’s a recurring charge I could put on hold for a few months?”

Checking in once a week will allow you to see little wins, and make course corrections before a colossal mistake is made. You may even begin to enjoy hanging out with your money!

Tip #6: Don’t give up!

Persistence is key to achieving long-term financial goals! Hold yourself accountable and own mistakes, but don’t give up. Take note of why you slipped up, ask for support if you need it, and make sure you are keeping your weekly money dates. Write down your financial accomplishments and celebrate your wins!

Categories
Blog Home Buying & Refinancing Personal

To Rent, or to Buy?

Should you rent or buy a home? It’s not an easy question with one right answer for everyone. That’s why we’ve created the following pros and cons lists for you so that you can weigh your options.

The Pros of Renting

  • Flexibility and mobility: Leases generally last for a year or less, which is a definite pro if you need to relocate for work or other reasons.
  • Maintenance free: The air conditioner is out? Call the maintenance person! When you rent, someone else mows your lawn, cleans your gutters, and fixes your clogged toilet. That is a BIG positive!
  • Short-term savings: Buying a home means lots of upfront costs, property taxes, etc. It can be easier to save in the short-term when you rent.

The Cons of Renting

  • No equity: When you rent, you aren’t working toward ownership, or building equity to borrow against in the future. Once your monthly payment is made, that money is gone forever, and it isn’t working for you in any way.
  • Asking permission: Love pets and want to get a puppy? You have to ask your landlord first. Want to repaint, or remove a hideous light fixture? Again, you have to ask. (and often, the answer is no)
  • Rent increases: When your lease runs out, your rent can be increased to an amount that isn’t in line with your budget.

The Pros of Home Ownership

  • Financial security and stability: If you have a fixed-rate mortgage, your principal and interest rate will remain the same for the life of the loan. No surprises!
  • You’re in charge: Homeowners can customize their homes just the way they want it. When you own a house or apartment, you can truly make it a home.
  • Building equity: Homes typically increase in value. Unlike renting, when you pay your mortgage every month, you are building equity that you can use for your future. And, of course, you can sell your home and make a profit.
  • Tax benefits: Did you know that there are many tax benefits for homeowners?  It’s a great benefit of buying a house vs. renting.

The Cons of Home Ownership

  • Less flexibility: When you’re a homeowner, you’re responsible for the mortgage even if you have to relocate for work. You must keep paying the mortgage until you can sell it to someone else.
  • Higher upfront costs: When you first buy a home there are all kinds of expenses, such as closing costs, a down payment, fees, and title insurance
  • You are in charge of maintenance: When your home needs repairs or renovations, you’re responsible for it, and you have to pay for it.

Now that you’ve looked at the pros and cons, is it obvious which is best for you? If not, take a step back and ask yourself: What feels right? And remember that you don’t have to decide on your own. We are happy to sit down with you anytime to discuss the pros and cons as they relate to your current financial situation. And we can help you to make a plan for your future.

Categories
Blog Business Fraud & Security Personal Safety & Security

Are You a Target for Identity Theft?

Did you know that your social media habits could put you at risk for identity theft? It’s essential to understand how to protect yourself and how to avoid catching a thief’s attention.

Weak Passwords

Is your password ‘password,’ your name, or something equally easy to guess? It’s time to change it up! Your passwords should be reasonably complicated with a mix of numbers, upper and lowercase letters, and special characters.

Do you have one password or a few passwords that you use for everything? Danger! Using the same password across multiple channels makes your account easy to hack. If you have trouble remembering lots of passwords, then consider getting a password manager.

Clicking on Unfamiliar Links

Here’s a good rule to follow: don’t click on links that are fishy in email, text, or on social media. But how to decide if something is questionable or not?

In email, text, and on social media:

  • Verify the sender as someone you know and/or are expecting a message from, such as a business
  • Verify the security token by checking to see if the URL begins with “https.”
  • Are there lots of grammatical errors or misspelled words? Don’t trust it!
  • Move your cursor over the link. Does the URL and displayed name match?

Finally, when in doubt, don’t click! No link is worth your identity being stolen.

Sharing too much

Some things are better kept private online. Don’t publicly share your home address, phone number, email, etc. With this basic information, an identity thief can dig up enough information on you to set up a fraudulent credit card account.   

It’s also wise to turn off geolocation tags on social media. It’s fine to tag a photo as being in a particular city, but some tags will actually show your home address! Check your social accounts, and be sure your location data is turned off.

Birthday celebration – for identity thieves

It’s so much fun to get birthday wishes online, but it can be an invitation for identity thieves to ‘party’ with your information. Want to get the well-wishes without the risk? Make sure you aren’t using your birthday in any of your passwords. You can also place a partial birthday – day and month only, leaving the year of your birth out – on most social media platforms.

Checking in too often

Checking in at the places and businesses you frequent the most gives identity thieves too much information into your personal life. Identity thieves are talented at taking lots of seemingly useless information and putting it all together to steal your money. Don’t make it easy for them by telling the world where you bank, shop, etc.

Know your friends

It’s fun to have lots of friends online, but it’s best to know who they really are. Identity thieves set up fake accounts which are then used for fraud attempts or scams. When you get a friend request from someone you don’t know, it’s best to decline.

The above tips will help you to keep your information safe from identity thieves. By being proactive now, you can save yourself from a lot of grief later.