Hope for your financial life and beyond

How to Push Through the Scary Questions at the Start

January 1, 2019 by 23 Comments

Do you want to finish what you start this year? Maybe you have made a New Year’s resolution and aren’t confident you can do it. Or maybe there are simply so many unanswered questions and doubts in front of you it’s becoming overwhelming.

Finishing is huge for our psyche. It gives us so much confidence that we think anything is possible. It releases pressure and tension when we finally reach our goal. Finishing creates momentum and catapults us forward to even greater things.

Related Content: Winning is More Valuable Than Losing

Unfortunately, we don’t start at the finish and get those great rewards. We start our journey at a more logical place - the start.

The start of anything can be a very confusing place to be. It’s exciting and scary all at the same time. And the start is always full of questions like…

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Filed Under: Goals, Inspiration, Planning Tagged With: , , ,

6 Financial and Emotional Considerations Before You Retire Early

June 20, 2018 by 27 Comments

Think you have some good reasons to retire early? It is exciting…the thought of leaving your career and setting aside the accompanying stress that it produces. In fact, you may already have begun to plan how you might be able to do that 10 or 20 years before your retirement benefits are available.

It’s a lofty goal to retire early. But it’s a decision you must be sure about. You can’t just wave a magic wand to make it happen. It takes planning and deep consideration of all the financial and emotional reasons to retire early before you pull the trigger.

To that end, it would be wise to consider the following issues as they relate to early retirement. You may find after working through them that you want to hold onto that career for a few more years.

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Filed Under: Retirement Tagged With: ,

6 Ways We Survive the Dark Side of Rental Real Estate

April 3, 2017 by 42 Comments

My wife and I purchased our first home to be used as a rental property seven years ago. That move was the culmination of several years’ worth of reading about and planning to own rental real estate. It took us that long to feel knowledgeable and confident enough to put a plan into action that would earn us a steady income stream aside from our normal careers.

For the most part, our experience has been a positive one. In fact, I’d say overall it has been great. However, we have had our share of challenges along the way, like:

…an unexpected new well we had to drill and install (that was pricey!)

…leaky copper pipes that had to be replaced in an entire house

…a dual tenant situation where one roommate left, leaving us with half the monthly revenue stream on that property until another roommate could be found

…tenants who don’t inform you of repair issues in a timely manner (“Really? It’s been leaking how long?”)

…tenants who won’t pay on time, or ever

…tenants, who by their actions force you into court (that’s a post in itself!)

…managing the finances to account for repairs, taxes and the house that sits vacant for months while you do said repairs or find a new tenant

…dealing with the emotions that come when facing these tough circumstances

…the time it took away from our already busy schedule to take care of all this

Are you prepared for all that and more? If you are game, then I have five suggestions that will help you manage through some of the dark times that will inevitably come. And I’ll tell you the sixth thing we’ve done recently that has taken our rental real estate business to the next level.

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Filed Under: Real Estate Tagged With: , ,

Always Plan a Budget Around These 5 Expenses First

January 9, 2017 by 29 Comments

The first time I sat down to plan a budget with my wife, we didn’t know where to start. There were literally dozens of expense categories popping into our head at once. The whole process seemed a bit overwhelming.

At some point it dawned on us that we needed some clarity about the process. We needed to narrow the field and focus on certain priorities in the budget. By doing that, it became obvious what areas of the budget we needed to focus on first.

What we found was that there are five fundamental expenditures to focus on when you plan a budget. Without them, any person would have a difficult time surviving. Coincidentally, these categories will also be some of the most expensive budget items each month. Those two reasons alone - basic survival and cost - should justify why it’s important to start with them when you plan a budget each month.

Five Basic Categories When You Plan a Budget

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Filed Under: Budgeting, Spending Tagged With: , ,

What Does a Financial Advisor Do and Do I Need One?

February 22, 2016 by 8 Comments

Most likely you have run across someone in your circle of friends who is working with a financial advisor. This may have you thinking that you need to have one as well. It sounds like it might be a helpful step but you don’t really know the answer to the question, What does a financial advisor do for me?

It’s a great question. Before you hire professional services you need to know what they are all about. You need to understand if they can help with your specific need. You wouldn’t hire a tax professional to do your lawn care, right?

So I’ll help you with both questions today. Let’s tackle the What does a financial advisor do? question first.

What Does a Financial Advisor Do?

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Filed Under: Managing Money, Planning Tagged With: , ,

How to Stop Waiting for Next Year to Get Your Finances Right

February 1, 2016 by 8 Comments

Sports fans are always waiting for next year. In any given season, only four teams out of 122 in the four major U.S. professional sports leagues win their respective championship. 118 teams and their fan bases are left hoping that next year will be different.

Of course we always have hope, right? A few shrewd personnel moves from the front office management can surely turn things around. And maybe, just maybe the manager will finally figure it out next year and make all the right decisions.

Unfortunately, most of the time things don’t get better. The team doesn’t improve. There are injuries. Managers get fired. Free agents go elsewhere.

And once again we are left waiting for next year to get things right.

Many people adopt this same approach with their finances. Instead of addressing their money problems right now they take the “waiting for next year” approach. People who follow this way of thinking typically:

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Filed Under: Managing Money Tagged With: , ,

How to Choose A College So You Don’t Waste Money On Tuition

October 12, 2015 by 8 Comments

You may have noticed recently the federal government stepped in to help 18-year-olds with one of the biggest decisions of their lives - how to choose the right college. Although you don’t necessarily need a college education to have a successful career, the U.S. Department of Education estimates that a college graduate will earn one million dollars more on average over their lifetime when compared to someone with only a high school diploma. That figure alone makes attending college a worthwhile consideration.

college fund jarBut what college should you attend when there are thousands to choose from? Enter President’s Obama’s Consumer Reports-styled College Scorecard. It’s an initiative headed by the Dept. of Education where, “You’ll be able to see how much each school’s graduates earn, how much debt they graduate with, and what percentage of a school’s students can pay back their loans,” the President noted in a recent radio address.

The scorecard tool offers much more information than that however. Prospective students can input a college name into the site and receive all kinds of useful information about the school’s program. Among other things, potential schools can be sorted by location, size, degrees offered. The site is receiving rave reviews as the latest advancement in helping students choose the right college.

You will have to take some steps to make your college decision an easier one. There is simply too much money at stake for you to make the wrong choice. Here are the three most important things you can do.

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Filed Under: College Tagged With: , ,

How to Make a Home Inventory Checklist in Case of a Catastrophic Loss

January 12, 2015 by 19 Comments

Recent events surrounding the theft and eventual recovery of our family basketball goal have me thinking more about home security. One issue that presented itself during that incident was that I did not have proof (like a model number or receipt) or identifying marks on the goal that it belonged to me. If I had that proof the police could have pursued the matter more aggressively.

home inventory checklist in case of lossDuring the ordeal I had a conversation with a friend of mine who used to be a detective. He mentioned a case he investigated where a man had his entire music collection stolen. Fortunately for him, he had written down the title and artist of every CD in his collection. He gave that list to my friend who, believe it or not, was able to track down the collection. Of course, he was aided in his search by the fact that the not-so-intelligent thief sold the entire collection at once…to one pawn shop.

Wasn’t too hard to link those to events together.

My friend went on to say he has made a home inventory checklist of everything of value in his home. In case of a catastrophic loss such as a house fire, he will be able to present his home inventory checklist to the insurance company showing concrete evidence of what he did own. Of course that won’t help him recover the sentimental items he lost but it will give him a better chance of recouping the fair market value to replace all the consumer products he lost.

So, guess what the kids and I started doing over Christmas break?

How to Make a Home Inventory Checklist

We haven’t entirely completed our project but these are the steps we are taking to make our home inventory checklist:

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Filed Under: Insurance, Real Estate Tagged With: , , ,

The Hidden Issue Behind the Best-Laid Plans

December 5, 2014 by 7 Comments

Hidden Nuggets Series #66 - “…you do not know what will happen tomorrow. For what is your life? It is even a vapor that appears for a little time and then vanishes away…” - James 4:14

“Mary, I know what I’m going to do tomorrow and the next day and next year and the year after that. I’m shaking the dust of this crummy little town off my feet and I’m going to see the world. Italy, Greece, the Parthenon, the Coliseum…then I’m coming back here and go to college and see what they know, and then I’m going to build things…”

Sounds like this man is going to have a wonderful life. His path is clear. His steps are ordered in sequence. His vision is grand.

Yet, the movie character George Bailey never saw how life might disrupt his best-laid plans. He wasn’t anticipating any curveballs, like the impending tragedy coming to his family…that he’d take over the Building and Loan…that he’d give his college money to his brother Harry…that Harry wouldn’t want to take George’s place at the building and loan…that he’d marry Mary…that he’d use his honeymoon money to solve an economic crisis…that he’d face personal financial ruin over no fault of his own.

Funny how life chews up our plans, spits them out and declares, “Take that!”

George didn’t accomplish any of the dreams hatched in his young adult mind. But that doesn’t mean he never should have planned. Planning is vital for success. Maybe he could have been less arrogant though by understanding who it is that really orders our path. That’s the hidden issue behind our plans…they are subject to the one who knows what the future holds.

A Better Perspective on Planning

In the Bible, these words from the apostle James bear this idea out,

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Filed Under: Hidden Nuggets Series, Planning Tagged With: , ,

The Hidden Costs of College: How to Manage the Incidentals

August 26, 2014 by 26 Comments

My alma mater, Cedarville University in Ohio, has a favorite destination that attracts students each and every day while school is in session - Young’s Dairy in Yellow Springs. It’s definitely one of the hidden costs of college because I had no idea how much time I would spend there. It seemed like once a week someone in my dorm would yell, “Hey, we are making a Young’s run. Who’s coming?”

Boy, that was always tempting. Seemed like it always came at the right time too. You know…at 9 o’clock at night when your punching out that term paper and your stomach is rumbling. So what college student could resist a grilled cheese, fries and milkshake in that moment?

Defining Hidden Costs of College

Those late night snack runs are one example of the hidden costs of college. They are hidden because we miss factoring them into the overall expense of college. Students and parents focus on the big college numbers that are causing so much trouble: tuition, fees, room and board and forget there are a bunch of little incidentals that, when taken cumulatively, add up to big dollars.

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Filed Under: College, Saving, Spending Tagged With: , ,

How Being Flexible Saved Our Vacation

June 18, 2014 by 27 Comments

Cincinnati Reds third baseman Todd Frazier

Two Saturdays ago, I’m standing along the first base wall at Great American Ballpark watching my daughter get an autograph from Cincinnati Reds third baseman Todd Frazier. It’s the first day of our family’s 8-day vacation that will take us to Cedar Point amusement park in Sandusky, OH, on to Niagara Falls, NY and back through the Smokey Mountains as we return home.

The weather is warm and sunny and the look of excitement on my daughter’s face as she gets the autograph makes me realize why I love vacations. What a memory she will have of that moment. I can’t think of a better way to get our vacation started.

I strike up a conversation with a couple standing next to us who were visiting from Columbus, OH. I’m interested in asking them how long the drive is from Cincinnati to Columbus because we intended to drive there after the game and spend the night on our way to Cedar Point. What they said next shattered my “this-vacation-is-starting-out-so-well” feeling.

According to a news report, Cedar Point had a major water main break. The park was closed Saturday and would be Sunday and possibly Monday. “Nooooooo!” I screamed on the inside. “Those are the exact days we plan to be there!”

The kids were going to have so much fun and now would be incredibly disappointed. Perhaps the couple misheard the report and it’s not as bad as they let on. I tried to console myself with this notion.

During the 6th inning my wife received an email from Cedar Point stating that it was indeed as bad as we had heard. Our reservations to stay at the park had been cancelled. Our plans foiled.

What would we do now?

Well, we learned the importance of being flexible.

Being Flexible Can Make or Break A Vacation

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Filed Under: Current Events, Planning Tagged With: , , ,