Improve your financial health
Hi ladies! In this uncertain time, let me give you some juicy ways to focus your attention on improving your financial health. I spoke with Rebecca Korn, business & relationship coach, and "retired financial planner" on how we can take some steps to feel better about our financial situation and how we can take things into our own hands.
Tell us about yourself. Can ladies work with you one-on-one? If so, how can they get in touch?
I would be honored. I specialize now in something call Ascension Coaching. Ascent, literally means to Rise. In this climb of life, its often positioned by “coaches” or “mentors” who haven’t had the experience. My partner and I collectively have almost 25 years of experience in business, entrepreneurship and leadership. We are very selective in who we take on as a client and they can apply on our website at: What is your morning routine? I used to wake up at 5am every single day. I am now a solid 6am-er. Ive found that the most important thing sometimes, is sleep, and I honor it. When I wake up, I meditate (after coffee), I journal, and I map out my day’s to-do’s. I love the routine I’ve adopted. It truly feeds my vibe of productivity! Do you have a favorite budgeting app? Do you have a budget template we can use? PLOT TWIST! I HATE budgets. I don’t think it's reasonable for life being so non-linear. Life is going to hand you a car repair when you least expect it, or a child’s broken arm with an ER visit and Physical therapy co-pays to top it! For this, I operate on a more simplified process, specifically revolving around “no spend” months, where, I direct clients to avoid spending on anything “extra”. Meaning, skip the extras in amazon, in the grocery, and in places that would ordinarily tempt you. Trimming the fat in the budget is key to growth and awareness on where your dollar buckets are potentially leaking.
How do we start paying off credit cards when we have $8k+ in cc debt? What are our options? Snowball. Snowball. Snowball. I’ve counseled so many people out of debt, and it has been such a rewarding process. But, it has to be a process that speaks to you. The first question I would have to understand more around is, what are the interest rates on this card? If your credit is good, I would recommend doing a 0% balance transfer ( keeping an eye out for fees ) and be consistent. Make a plan that allows you to thrive with your manicures and Starbucks, while still being able to make this payment consistently. If you have a plan, that is simple and attainable, you will achieve it. Just be aware of fees and time limits as most of these balance transfer deals have time expirations. There are many options with this though, see my answers later for more!!
How much money should we have in savings (as a minimum)? Where should we keep our savings? 3-6 months worth of savings, or liquid dollars. How do you gauge that? Well, this is where its important to know how much you spend on a typical month for yourself and your family. Lets say, your normal spending rate is 6k a month average. If you did the full 6 months, you would have 36,000 dollars in your savings account. Which is far too high to have in a liquid savings account earning you maybe 1% ( if you’re lucky! ). Lets be real, banks these days don’t offer a win for someone saving. So, I do recommend placing it into a liquid fund with not a lot of risk. For this specifically, I would talk to your financial advisor! Or reach out to me, and I’ll help you find one!
Should we pay off all debts before we think about investing (ie. credit cards, student loans, car payments, etc.) NO! NO! NO! This is the biggest issue right now with most of us. We get caught up in this emotional run of pay off all of our debts BEFORE we invest. Well, guess what, its an AND not an OR. What I mean by this is, when you are working on paying off your debt only, and something like a plot twist occurs, you end up dipping right back into those credit cards because the emergency fund hasn’t been built yet. Pay them off, and focus on that, while safely building cash. The beauty of this is, you are retraining your brain around seeing cash and not using it. Many have a habit of seeing money laying around, and tapping right into it. This difference is where your old chapter ends, and your new one begins.
What are the different types of investments? There are so many it is literally impossible for me to list them! The best thing I can say is, don’t get wrapped up in one that you see pop up in your DMs on insta. Probably not the best idea. Sit down with a financial advisor who is a fiduciary. This means, they have to do what is in the best interest of you! Sounds logical, I know, but surprisingly, advisors are held to a different standard when they are fiduciary.
Where do we even begin with investing? How do we decide how much to invest and where to invest it? Speak with a financial advisor who is willing to sit down and create a plan for you. Who is willing to meet with you every single year, and help you stay accountable. You want to be selective with how you are selecting a financial planner, so please don’t hesitate to reach out to me and I’d be happy to connect you with a few I would recommend. 9. Is it a bad idea to do this on our own? Should we work with a financial planner? Is $100 too little to invest? NO! You have to start someplace! The biggest takeaway I communicate to my clients over 8 years of being a financial advisor and coach to many is, don’t sell yourself short! Start someplace, rather than no place. I don’t care if its 50 bucks! Begin somewhere! How is investing different from having a 401k in terms of saving for retirement? A 401k is one vehicle of investing. Meaning, you still have stocks and bonds inside of it, but the rules on how you can get the money out are different. For example, a 401k is something I call a retirement account. This is something you can’t touch without penalty and taxes most of the time ( there are exceptions to this ) prior to 59 and a half years old, here in the USA. You can only put so much into it per year, and when you get it out, its taxed differently in retirement. Additionally, the way it is “diversified” is how it will yield a return or not. If the market goes down, putting more money in sometimes is worth it because its basically the stock market “on sale”. This is often where most people can really leverage their return to maximize over period of time where most are too afraid to invest. There are many types of vehicles of investing, and it is important to evaluate options specifically to yourself!
Were you surprised by any of this information? I have heard from multiple sources that paying off debt before making investments isn't necessary and that always surprises me! Let me know below what resonated with you.
Remember - take a breath and focus on the things you CAN control, not the things you can't.