A Financial Education Event
 

Top Ten Failure Factors for Finances

Welcome to Top Ten Tuesday. Only 1 day left in January! By now, it seems that most of our New Year’s resolutions have lost some steam, been pushed to
the side, or just been dropped all together.

It is never too late to reevaluate our goals and start over. We don’t need to wait until the next January 1st to get our finances under control. When we fall off the wagon, it is best to get up and keep going. I like to imagine the young Anne of Avonlea saying, “Isn’t it nice that tomorrow is a new day with no mistakes in it?”

If we understand what derails us from achieving our goals, then we can counter those failure factors and find success. These are the top ten failure factors that impact the achievement of a goal. Read them slowly and think about what they mean in your recent resolutions.

Top Ten Failure Factors:

•   Setting unrealistic goals

•   Motivated by the wrong motives

•   Believed failure was inevitable

•   Fulfilled the need for immediate gratification too often

•   Influenced unduly by other people

•   Practiced a “deprivation mentality”  – all or nothing/black or white

•   Rationalized and made excuses rather than taking responsibility

•   Displaced emotional issues through overspending and overeating

•   Procrastinated rather than taking action

•   Lacked the tools to make compounding incremental change

Reread the list above and circle any of the “failure factors” which you believe may be significant influences in your life. Failure can be seen as a profound learning opportunity. It’s time to stop trying so hard and start training toward a new way of addressing your wealth challenges. Past failures do not need to be repeated. Before my husband and I met, he was in a debt cycle he felt would never change & financial

freedom was just a dream. But it did change because we set goals and took action. The result? We’ve been debt free for 20+ years.

After you circle the “failure factors” that may apply to your situation, take the time to write three ways you believe you can counter those factors and turn them into successful areas of your life. I believe in the old saying from John L. Beckley “people don’t plan to fail, they just fail to plan.” Having a plan can be over half the battle in discovering ways to be successful in your finances. But implementing that plan is the other half of finding success.

One of the ways that I have found most people can create and stick to a plan is by having a “money buddy.”  If you are married, this might be your partner, and if you are single, it can be a like-minded friend who is good with their own financial resources. Get together with your money buddy and go over this “failure factor” list. Let them help you come up with ways that you can counter the failure to turn it into success. Then, set a date to meet with your financial partner and track your success. It’s kind of like Weight Watchers for money matters and there is great power in unity with other like-minded people who want to overcome their own failure factors.

For great budgeting tools, go to mint.com—an excellent app for managing finances. Keep checking in week to week for help along the way. You are not alone in this financial journey! You can find success if you: Dream Big. Set Goals. Take Action

And Baby Makes Three – Ways to Save Bucks on Babies

BGadmin

 

“Mama, can you ask Miss Natalya if I can hold the baby?” my 6’ 4” son asked with hopeful expectation.

Moments later, he was holding the pretty little three-month-old baby girl and smiling proudly, “now take my picture.”

Ever since he was a teenager, he absolutely loved babies. Holding them. Having his picture made with them. Then giving them back when they made the tell-tale popping sounds that let him know the infant was filling up her diaper.

Father and son

Fast forward ten years. Past his years as a midshipman at Annapolis, past his years as a graduate student at Stanford, past combat tours in Afghanistan and Iraq. Fast forward to the present. Now, this Marine is holding his newborn son, Robert Philip Kay, III.

 

“Why are you picking up the baby when he’s sleeping?” I watch my son cuddle his 4-day-old son, the infant’s tiny features pronounced next to his big father’s duplicate profile.

 

“Because I’m the dad and I can hold him whenever I want.” He holds him. He has his picture made with him. And when the tell-tale popping noises indicate little Robbie is filling his diaper, he’s suddenly changed. He goes from a boy who has never changed a diaper to a man who changes every single one his tiny son fills (and his namesake filled six of those bad boys in only 24 hours.)

I’m proud of my man child who grew up so quickly, met a beautiful mermaid, married her before she got away and made me a “Glam-ma” to a tiny human who has my Hispanic hair, my husband’s name, his mother’s nose and his father’s legacy.

My daughter in law is a precious asset to the Kay family and not surprisingly, she’s great with money. Here are eight new mom tips that come from her recent experience and my background as a mom of many.

8 Ways to Save Bucks on Babies

  • Amazon Baby Registry – Whether you have three baby showers or none, it’s smart to have a list of items you can use for baby. Even if friends and family don’t buy off the list, they can still mark it as “purchased” to minimize duplicates. Once everyone buys what they want, the new parents are entitled to a 10% off one order (wither 60 days before and up to 180 days after the baby’s arrival) and 15% off if you are an Amazon Prime Member. My DIL used this discount to buy eligible items off her registry that had not yet been purchased and she used Amazon gift cards, to further minimize their OOP expenses. Plus, she had $1000 worth of gifts purchased by friends and family, which scored her $100 worth of free diapers and wipes.
  • Return Duplicates Promptly – Get a store credit or exchange items for something else you can use right away. If you wait until after the baby arrives, you may not have the chance to get around to returning the items in a timely manner and you’ll lose out.
  • Don’t Open Those Diapers! – My first son, Daniel, weighed 11 pounds and was 24” long. He never wore newborn diapers. My last son, Joshua, was 10.5 pounds. He never wore newborn diapers. Even if you don’t give birth to a sumo wrestler, you still need to be careful on your timing in opening new bags/boxes of diapers. Once you open them, they can’t be returned for a larger size. This is especially true when you open a 180 count box from Exchanging a brand name diaper is easy at Walmart or Target, where you don’t need a receipt to get a larger size package. But not if they’re opened.
  • Calling All Freebies – I went out to Annapolis to nest before the baby arrived and it seemed like every day, my DIL was getting freebies delivered to her door—especially baby formula. She also got free toiletries, diapers, books and more from the hospital. Manufacturers of baby products and hospital auxiliary groups provide freebies for new moms. Look inside the baby bassinet cabinet in the hospital and you’ll probably find diapers, swaddling blankets, alcohol swabs, a nasal aspirator, disposable nipples for bottles, a thermometer, and more. These are valued at $30 to $40 and you can always use them.
  • Nurse if Possible – Not only will your baby get colostrum, that helps to fight infections and illnesses, but you’ll get valuable bonding time with your little one. It’s been estimated that nursing moms save $1400 in the first year over those who use formula. My DIL got reimbursed for a pump through Tri Care and other insurance plans cover the cost of a pump as well. Don’t take the one from the hospital because those (usually) aren’t free and nothing can ruin a peaceful day at home with your newborn than the breast pump Po Po at your door, asking why you stole an $800 breast pump.Don’t give away your sample formula either, 85% of nursing moms stop by the time their babies are 6 months old.
  • Free Advice – Many hospitals have a lactation expert who makes the rounds and helps new moms learn how to nurse a baby. When Anne, the lactation consultant came by to see my DIL, I learned a few things as well. Even after nursing 5 babies, I didn’t know that “infants are nocturnal beings.” Um, yeah. I should have figured that out. This service is free and can cost $200 if you pay a lactation advisor. Ask about free hotlines and even volunteer services that may pay for a home visit. Plus, check your insurance provider’s coverages as well.One of the nurses, Leslie, was helping my DIL and when she realized I had raised 5 infants, she pointed at me and said to my son and DIL, “You are blessed to have her in your life. She’s one of the greatest resources of knowledge you have at your disposal.” I loved Leslie, she was my favorite.
  • Double Duty Accessories – When you’re filling out a wish list, try to get items that have more than one function. Like a Graco pack n play that also has a changing table built in as well as a bassinet. We got my oldest son a crib that converted into a toddler bed for his son, Liam, and we bought the conversion kit when we bought the crib. These styles are new every 9 months and if you wait to buy the conversion kit when you need it (2 years or so), then it may no longer be available.
  • You Have Not Because You Ask Not – Be sure you ask the OB/GYN and the pediatrician for product samples. Not only will you discover whether you like the product before you purchase a full size, you may only need a little of it to get you through the crisis (we will not talk about nipple cream now.) Sign up for baby food company newsletters and coupon offers. Go to Gerber, Beechnut, Earthsbest, and Stonyfield to get these offers.

Three generations of Robert Philip Kay

Congratulations on your new baby. Whether you are the parent, grandparents, auntie, uncle or just a favorite friend—this is an exciting time for your entire family.

My husband and I are and thankful for our children and now our children’s children. We are often asked how we raised so many successful children, with success being measured as kids who are living their purpose and making the world a better place.

We usually answer this question with, “We tried to think of what was best for the child. I didn’t think about what I wanted to do, I thought about what was going to be the best option for my child.”

Gotta go check instastories for the latest baby video—until next time!

Back to College – The Kay Way – part two

BGadmin

When people ask me how we are put our kids through college debt free, the answer is multi-fold.

First, we train our children from a young age that going to school, doing your homework and getting good grades is their primary “job.” By teaching them a good work ethic, we are laying the groundwork for scholarships and more.

Secondly, we send them to schools that we can afford or where they get the best scholarship offers to cover the most expenses.

Thirdly, we have saved a modest amount of college money to help them pay their room and board and partial tuition in some cases.

Lastly, but certainly not least, we require that they work part time in the summers or during the school year (through a work/study program or a regular job) in order to do their part in paying for college. By implementing these four disciplines, graduated debt free, with our most recent grad finishing up this past May. The older Kay kids had over ½ million in scholarships and and the last two garnered over a million dollars in scholarships.

Priorities
In any discussion of college costs, it’s important to keep priorities straight:
Parents need to leave yourself some fun money for retirement. How else can you afford that mechanical bull riding lesson and those parasailing flights (been there, done that, LOVE it)?
I really believe that you, as a parent, should try to avoid borrowing on your future in order to pay for your child’s future. Why would you want to take one of your greatest investments and leverage it for college expenses? Yet millions of parents make that devastating financial choice every year. I’m talking about avoiding any college funding plan that includes a home equity loan, a HELOC (home equity line of credit) or refinancing of an existing home mortgage. These options reduce the amount of equity in your home, increasing the risk of possible foreclosure and you incur costs in interest charges that may cost you more if the term on the new mortgage is greater than the remaining term on the existing mortgage.

The College Mantra
When I began a young adult, got married and began having kids (in that order) I was first exposed to the whole idea of “the college my child gets accepted to.” As a mom of many I frequently heard, “What college did they get accepted into?” The part of that question that amazes me is that the answer that is most impressive are also the most expensive (Columbia, Harvard, Stanford, Yale, etc). While an average of 40% of the students who attend these schools either get financial aid, grants or scholarships, they only average out to an assistance of $9600 per year. This leaves a boatload that the student and mom/dad owe for college. Most of this is usually in loans of some kind. So then the average student graduating from some of the most prestigious colleges have student loans upwards to $80,000 or more.
So why is the question: What college did they get accepted into?
The question should be: What college did they get accepted into that they can afford?
Why do you want to leverage your future (through HELOCS or loans) or leverage their future (through massive consumer debt) when it will take many years of earning power, for them to pay back those loans? One of the most common problems in young married Millennials is the burden of dual student loans in a marriage.

I’m doing what I can to help families minimize student loan debt so that both the parents and the graduates can have a better quality of life with more flexibility once they start those new careers. For more practical aspects of very specific ways you can pay for college. Please email assistant@elliekay.com and put “College Crunches” in the subject line. Our offices will send you a wonderful resource file that I wrote to help you fund a quality education for a fraction of the debt.

Ellie Kay

 

What I Luv About Southwest Airlines – part two

BGadmin

Before @SouthwestAir had boarding groups and numbers, people would show up an hour or more before the flights and sit on the floor in the boarding area to get in a first come first served line. It was chaotic, but it’s just the way it was. One day, I was on my way to New York City for a very important Satellite Media Tour featuring 35 TV shows in one day. I had a meeting when I landed and couldn’t afford a delay or missed flight. As we were lining up, people kept invading each other’s space in the cattle call also known as a line. There were two men in front of me, a tall one and a short one. All the sudden, the short man turned around,

“You’d better back off and stop bumping me or I’m going to kick your butt” he shouted.

The tall man looked down on him and blurted out, “Yeah? You and whose Army?”

This continued for a few rounds as everyone else in the gate area watched the incident escalate. When the guys started to fist up and it looked as if it would come to blows, I had an out of body experience. I found myself stepping in between them. I knew they had been through security and didn’t have guns or knives and with four tall sons, I’d stepped in between many a fight.

I looked at both, “Gentlemen, you need to stop this now! If you get into a flight, our plane will be delayed so they can pull off your luggage. I can’t afford a delay today and it’s not fair to all these other passengers either.”

The tall man instantly looked uncomfortable, as if he was wondering how he allowed himself to be pulled into such a confrontation. But the small man was not moved and remained in a pugnacious pose, fist ready and stared me down like he was ready to punch me to get to his nemesis.

I was taller than him and brought my face to within inches of his own. In my most authoritative mother of seven voice I sneered, “You, turn around, now!”

He stared at me.

“Now. I won’t ask you again.”

He slowly turned around, away from the potential fight and the gate area broke into applause at the mean mama who saved our flight from a delay.

Thankfully, I don’t have to fight for a spot in Southwest lines these days. Today, I’m continuing the blog I started last week with part two of a three-part series. I wanted to give my best hacks for ways to get the most out of flying with this popular discount airliner. Keep in mind that this is not a sponsored post, I just enjoy saving our Heroes at Home non-profit money when we travel around the world, helping military members with free financial education.

Rapid Rewards Shopping

By doing the shopping you were going to do anyway through the Southwest portal, you can earn anywhere from 1 point per dollar to 9 points per dollar. You’ll also get coupon codes at the portal. One caution, if you use outside coupon codes, then you could forfeit the points benefit on the SWA portal. So be sure you compare which coupon code would be the best option before you decide on your purchases. Some of my favorite sites are Thinkgeek & Harry & David (both are 3 points per dollar), plus I like Starbucks and the Disney Store (2 points/dollar). You can still combine a lot of savings by layering the savings on line. Today, I went through Rapid Rewards Dining and bought clearance items through Disney for the Heroes at Home Event as giveaways. I used their codes to get free shipping with the SHIP50 code they gave me and all my clearance items were 70% off. I spent $53 for $170 worth of merchandise and earned 106 points.

Early Bird

You can purchase Early Bird for $15 per leg, which is a service that will check you in 36 hours before the flight, so that you don’t have to try and get a better boarding group by clicking in exactly 24 hours before your flight. You can’t access your boarding number until 24 hours before the fight, event with early bird. Do not book Early Bird until you are certain you are not going to cancel your trip, because this is non-refundable. If SWA cancels the flight, then they will refund the Early Bird fees. Later in the year, when people begin to earn tier benefits such as A-List and A-List preferred, then it seems the Early Bird boarding positions get less and less beneficial. Last year, my husband got B36 with Early Bird because there were so many A-Listers. It might even be a better strategy to forgo Early Bird, and then just upgrade your boarding position for either $30 or $40, depending on the length of the leg. Yes, you’ll pay more than you would with Early Bird, but by upgrading your boarding position, you might qualify for more points and you should get a better seat.

A-List and A-List Preferred

If you earn 35,000 points in a year, then you can earn A-List for the rest of the current year and into the next calendar year. If you earn 70,000 points, you’ll be A-List Preferred. These tiers get you priority check-in and security lane access, an automatic A-List priority boarding (you don’t have to purchase Early Bird anymore) and 25% more earning bonus for flights. The highest level gives you a 100% earning bonus on points and free drinks and free inflight Wi-Fi. Keep in mind that you cannot use points you purchase to
qualify for these tiers. I currently have A-List and will earn A-List Preferred in a couple months.

Which of these hacks were you already aware of and which tips can you implement?

Next week is the third and final part of this money savings series on how to fly Southwest for business

and pleasure. We’ll learn about the Companion pass, whether you should use points or pay for fares, how to find a good seat and how to create forever memories with your points.

I’d Luv you to join us then!

What I Luv About Southwest Airlines – Favorite Hacks Part 1

BGadmin

If you’ve never flown Southwest Airlines before, then you may not be aware that they board by groups and by number. When you get on the airplane, it’s open seating—first come, first served. I was boarding with an A-18 number which lined up adjacent to the higher numbers. An outgoing Millennial lady came up to another a Boomer woman standing on my left and asked, “what number are you?” Because she wanted to line up in order.

The well dressed and friendly Boomer answered, “I’m 50.”

I leaned over and whispered, “You don’t look a day over 35.”

At first she was surprised, but then smiled, “Actually, I’m 55 years old.” She whispered, “And I like 55.”

Cool. Gotta Luv a woman comfortable in her own skin!

This is not a sponsored post for this airline. I’m writing about this simply because it’s a big part of my life and a lot of my followers use this discount airline. I fly Southwest in order to save our Heroes at Home organization money on travel when we provide free financial education for our military members.

Here are my favorite hacks to fly high with less stress and more money in your pocket:

Shop the Sales

If you know you are traveling in a few months, then don’t buy right away. Keep an eye on the sales in order to get the “Wanna Get Away” fares, which are the cheapest. Subscribe to Click N Save in order to get an alert when fares go on sale. Keep in mind that you can look for fares in either dollars or points and when fares go on sale in dollars, they also go on sale in points.

Shortcut to Savings

If you have any latitude in when you fly, then you may want to check out the Low Fare Calendar

This resource gives the lowest fare on the calendar date for the month. It will only list the lowest fare for the day, so you’ll have to pick and choose the schedule you want and it may not be the lowest of the day. Sometimes, I just use the calendar to avoid buyer’s remorse in realizing there wasn’t a cheaper fare on a different day.

Rapid Rewards

Sign up for the frequent flyer card at the Rapid Rewards center on Southwest.com. This isn’t the credit card, it’s a number you get when you enroll that you will also enter when you book travel. These points don’t expire as long as you show some kind of points generating activity once every 24 months with either flights or partners. See below for partner opportunities as well as part two in next week’s blog.


Southwest Credit Card

Be sure you check out the Chase Southwest Chase credit card if you really want to generate points to earn more flights. Right now, brand new cardholders can earn 40,000 points when you spend $1,000 in the first 3 months. I recommend that you pay off your card each month to avoid paying interest. The annual fee is $69 and if you have a friend who already has this card, then let them sign you up on a referral. That way, you can earn the same benefit of 40,000 points, but your friend can earn 10,000 points as well. These benefits change regularly, so be sure you know the current terms before you sign up. You earn 2 points per $1 spent on Southwest purchases and Rapid Rewards® Hotel and Car Rental Partner purchases, then you earn 1 point per $1 spent on all other purchases. If you have a business, then you can rack up even more points by using it early and often. Just make sure you pay attention to utilization and if you charge more than 30% of the available credit, then pay off the balance before the billing cycle ends. This will help you keep a good credit score.

Partner Points

If you book a rental car on the Southwest.com portal, then you can earn 2 points per $1 or more, depending on the provider. You can also book hotels for points and can earn as much as 10,000 per night (I’ve never found a provider that actually gives me that many for one night because they are for hotels in other cities that I’m not visiting.) They disclose how many Rapid Rewards points they will give you when you are booking.

Rapid Rewards Dining

celebrating our sweet points!

If you sign up for rapid rewards dining, then you can earn points in partner restaurants by registering every card you may use in a restaurant (not just your Chase SWA card). I’ve registered all of my own cards and my husband’s debit and credit cards, too. I keep it simple by just going to the restaurants we want to eat at and if I end up getting a bonus, it’s icing on the cake. If you want to be more proactive, you can look at the list of partner restaurants and visit one of those for more points. Be sure you read the rules associated with the dining points, so you know what to expect.

These hacks are too good for just one post, so join us next week to see how you can earn even more points by shopping in order to earn tier benefits and whether you should invest in Early Bird or not.

What’s your favorite @SouthwestAir city to visit?

Driving Cars for Free

BGadmin

In our Heroes at Home Financial Event Tour, one of the most popular segments deals with “how to drive a car for free.” The concept is fairly simple, but less than 10% of Americans actually follow the steps to experience debt free living when it comes to transportation. We love our military audiences because even though some military members are “ordered” to attend our show, by the time it is over, they are laughing, they’ve learned something and they realize how much fellow Americans loves them.

So how do you do it? Just follow three steps:

  1. Start with a Debt Free Car – This is usually going to be the car you just paid off. Or, it might be a vehicle a parent or someone else gave you (it might even have seen better days). In our lives, we were “given” one car and we gave away 8 cars. It might be that you agree to be a one-car family for 18 months instead of a two-car family. This is how the Kays did it to start with. If you don’t absolutely have to drive a car (you are a one car family, public transportation, driving someone else’s car, etc.), then you can go to step #2.
  1. Pay Yourself – The monthly payment for your car that you used to pay before it was paid off is a payment you will now pay to yourself instead of to the lienholder. So let’s say your car payment was $300. You will pay yourself $300 every month for 18 months. At the end of that time, you take the $5400 you have saved and then sell your existing vehicle for as much as you can get for it. You will get more money for your vehicle if you detail it, get everything running as well as possible (without a huge investment) and then sell it yourself. Go to KBB for 10 steps on how to sell your car yourself.  Let’s say you sell it for $8000. Now you have $13,400 to work with.
  1. Pay Cash for Your Next Car – Follow my steps from my previous blog on How to Buy A Car 101 – Even if you aren’t a USAA member (for an additional military discount), you can still follow the steps listed to pay the least price possible for your next vehicle. Make a special note: You cannot do this with a new car! It has to be a used car. The average new car depreciates $8000 in 8 seconds (when you drive it off the lot). So you have to buy a car that is slightly used (or real used until you trade up). The example in my blog shows how I traded up consistently until I was driving a modest Mercedes. (Is there such a thing as a modest Mercedes? I believe there is).
  1. Trade Up Until You’re Satisfied – After you’re in a new-to-you “paid for” car, then start with step number two all over again and start paying yourself. Let’s say you bought a car for $13,400 and you got into it low (as I showed you how to do in my previous blog), then in only 18 months a used car won’t depreciate that much (if you take care of it and try to keep low mileage on it) and you can sell it for close to what you paid for it. You sell it after 18 months for $13,000 and add the additional $5400 that you have saved by paying yourself every month. Now you have $18,400 going into step #3 and you can trade up your vehicle.

Does this work? It absolutely does. Not only do I do this in my own family, but I have children who do it as well. When my kids ask for my advice (sometimes it’s nice having a mom who is America’s Family Financial Expert ®), I advise them to not be wasting money on expensive car interest payments or crazy expensive leases. The difference is enough money saved over the course of five years to be able to put money down on a house instead of having to rent. It truly adds up!

Keep trading up until you are satisfied with your car and you can trade up into a car with a substantial manufacturer’s warranty (or negotiate that warranty). I do practice what I preach, and I did this to get my 2014 Mercedes, which is under mfg warranty until 2022. The only perceived downside is that my dream car is red and I thought that red cars get more speeding tickets than other colors. But good news! That’s a myth. Pedal to the metal!

What can you do today to drive your cars for free tomorrow? Let me hear from you!

Ellie Kay

Quick and Easy Steps to Healthy Finances in the New Year

With the hustle and bustle of the holidays at a close, I remember what it was like to play with the new toys from Christmas long after ringing in the New Year. It was the time of marbles, pick up sticks, and hot wheels racers sets. My favorite toy was a set of Klackers. These came on the market in the late 60s and lasted into the early 70s. They looked like glass, but were actually acrylic balls attached to a string with a ring or small handle attaching the two strings. The object was to get the two balls going up and down and have them “klick” and “klack” against each other. You would build up momentum until they were hitting on the top and bottom in an arc. It was very hard to do at first and when they hit your fingers instead of each other, it was incredibly painful, too. Without fail, every time I played with my Klackers I ended up with bruised and banged fingers. But I kept playing, day after day.
I’m reminded of my Klackers when I look at today’s economy. Consumers have been playing with debt for years and it’s been hurting them—but they just kept playing. In fact, between 1989 and 2001 credit debt nearly tripled from $238 billion to $692 billion and last year it was up to $937 billion. The average debt-laden American especially feels the pinch when the economy is lagging, gas prices are rising, home values are imploding and inflation is rising. But there is hope and a way to not only survive a possible recession—but thrive in the midst of it.

Here are seven basic tips to help you beware and prepare in the new year:

1. Credit Credibility ––The first step, no matter what your financial picture is to improve your FICO (Fair Isaac Credit Scores) as these scores can determine a variety of financial issues including auto insurance premiums, whether you’ll get the promotion or the job (many employers check FICOS), and whether you pay a security deposit for utilities. You can get a free copy of your credit report at credit.com . If you downsize a home or a vehicle, you’ll also need to have an excellent FICO to get the best APR rates. You can improve your FICO in three easy steps:

  • Pay your bills a day early (rather than a day late) by setting up payments online
  • Pay $5 to $10 more than the minimum balance which indicates paying down debt
  • Proportionality: make sure that you don’t have more than 50% of the available credit charged on any one card.

2. Savings Savvy– I get loads of emails every week from people who are cutting hundreds from their household budget by following simple savings tips. From insurance to groceries, there are savvy ways to save at your fingertips. I have a lot of these savings tips on my blog. Start to implement these tips and it will create good discipline that will prepare you for a recession. Use the money saved from these tips to pay down debt and build short term savings.

3. Debt Deal Dilemma: With a slowing economy comes an influx of those who want to “help” prepare you for the worse by consolidating your debt. However, most “for profit” debt counseling companies charge a hefty fee for their services which is usually tacked onto your debt load. Instead, go to the National Consumer Credit Counseling Service and use their free services.

4. Don’t Do Dumb Debt– As things begin to get tight, you might be tempted to get a HELOC (Home Equity Line of Credit) or refinance your home in order to pay consumer debt. Bad idea. This will only deteriorate the equity in your home and chances are really good you’ll be right back in that HUGE boat load of debt by this time next year. The better option is to cut costs, budget, and go to the NFCC.

5. Budget Baby and Learn – If you don’t have a budget, as part of your lifestyle, then yesterday was the day to start. Set one up with online budgeting tools, found at www.elliekay.com. It’s also important to learn how to budget, a great new program that helps military families with their money matters is supported by the Military Family Advisory Network called MilCents and it begins a new (free) course in February.

6. Repurpose Funds: My daughter loves to take antiques and even junk and repurpose it to give it more life (and save money in the process). As you save money in one area, it’s important to redirect it to another area through proactive actions such as writing a check to pay debt or to fund your savings account.

7. Plan With A Purpose – Whenever a “theory” is tested, it must stand up to a “proof” in order to be established as true. You can have all this good stuff on paper, but if you slap down the credit card to pay for a “40% off” killer Marc Jacobs suit, or use debt to fund a vacation–then your plan is only a theory. For it to become REAL, you need to make it part of your daily life. This means you start living with your plan and don’t incur more debt.

Happy Savings and Happy New Year!

Ellie Kay

 

Top Ten Failure Factors for Finances

Welcome to Thursday. Did you know there are only 8 days left in February? By now, it seems that most of our New Year’s resolutions are either given up on, pushed to the side for a little while, or lost a little bit of steam along the way.

It is never too late to reevaluate our resolutions and start over. We never need to wait until the next January 1st to get our finances under control. When we fall off the wagon, it is best to get up and keep going.

Many times when we set goals, they are unachievable. These are the top ten failure factors to setting any goal from my latest book Lean Body, Fat Wallet:

Top Ten Failure Factors:

•   Set unrealistic goals

•   Motivated by the wrong motives

•   Believed failure was inevitable

•   Fulfilled the need for immediate gratification too often

•   Influenced unduly by other people

•   Practiced a “deprivation mentality”  – all or nothing/black or white

•   Rationalized and made excuses rather than taking responsibility

•   Displaced emotional issues through overspending and overeating

•   Procrastinated rather than taking action

•   Lacked the tools to make compounding incremental change

Reread the list above and circle any of the “failure factors” which you believe may be significant influences in your life. Failure needs to be seen as a profound learning opportunity. It’s time to stop trying so hard and start training toward a new way of addressing your wealth challenges. Past failures do not need to be repeated.

After you circle the “failure factors” that may apply to your situation, take the time to write three ways you believe you can counter those factors and turn them into successful areas of your life. I believe in the old saying that “people don’t plan to fail, they just fail to plan.” Having a plan can be over half the battle in discovering ways to be successful in your finances. But implementing that plan is the other half of finding success.

One of the ways that I have found most people can create and stick to a plan is by having a “money buddy.”  If you are married, this might be your partner, and if you are single, it can be a like-minded friend who is good with their own financial resources. Get together with your money buddy and go over this “failure factor” list. Let them help you come up with ways that you can counter the failure to turn it into success. Then, set a date to meet with your financial partner and track your success. It’s kind of like Weight Watchers for money matters and there is great power in unity with other like-minded people who want to overcome their own failure factors.

For great tips for understanding your money better can be found at mint.com—an excellent site for managing finances. Keep checking in week to week for help along the way. You are not alone in this financial journey! There are so many tools to help along the way.

Ellie Kay