A Financial Education Event
 

Give the Gift of Investing

During the holidays, it’s a time of giving—and sometimes sorting. For example, this past week, I sorted my closet and gave away 10 bags of clothing, purses, belts, scarves and shoes. I did a quick reckoning and calculated that the original value of those items was a cool $1000. Many of those giveaways were once gifts from friends and family. I couldn’t help but think, “What if I was gifted with money in a savings account or an investment fund instead?” The answer is: “You’d be a lot better off and your investment would have earned money instead of ending up in a giveaway bin.”

This year, why not take $500 and open an investment account for someone you love? Give the gift of investing by getting a loved one a start in this key area of financial responsibility. Recently on The Money Millhouse, we hosted Brenna Casserly. Brenna Casserly is CEO and Co-Founder of Emperor Investments, a Toronto-based robo-advisor.

She helped us understand a lot about Emperor and how they work as well as other investment terms such as an ETF. Brenna said, “Think of an ETF like a black box. When you open the box you notice that it is filled with some really great companies and others not so good. When you buy an ETF, you buy the entire black box and unfortunately cannot just pick out the companies you wish to own.”

One of the reasons we like Emperor Investments is that Emperor was founded on the notion that investing is highly personal. Over the course of the last decade, Brenna and co-founder, Francis Tapon, have developed proprietary technology that builds personalized portfolios. This means you don’t have to know everything there is to know about investing, you’ll have a partner at Emperor who will help you decide which fund is best for your investment style and your financial needs.

For a limited time, you can open an account at Emperor and our non-profit, Heroes at Home, will benefit from your new account if you use this link to Emperor Investments for the Money Millhouse. We believe in this kind of investing so much that we gifted an account to others who need help in just getting started.

So instead of giving your friend or family member gifts that will end up in the giveaway bin in just a few years, give them an investment account that will be worth more than your original investment in a few years. The gift that will keep on giving.

Don’t forget to use our Money Millhouse link in order to benefit Heroes at Home, so that we can continue to provide free financial education to our military members around the world.

 

 

How I Earned A Six Figure Income As a Spokesperson / Brand Ambassador – part 4

I’m gearing up to present this Brand Ambassador Workshop at Fincon this year and it makes me reflect on the last time I presented in that venue. It was 2014 and we were in a small space that accommodated about 40 people. In the audience were several bloggers and social media gurus who were interested in how they might be able to leverage their skills to be able to make money in this space. One of the people listening carefully was Tiffany Aliche, The Budgetnista, who was on the cusp of her potential career as a brand ambassador.

 

When I talked to her about it recently, she reflected, “I remember looking at the list of workshops and thought that I really wanted to see what that was all about. When you were talking, I kept thinking about brands I could possibly partner with and didn’t really know. But now, four years later, I’ve exceeded my expectations with your help.”  Tiffany is modest, but she’s currently in the top 5% of non-celebrity spokespersons/brand ambassadors. I worked with her on her first major deal and I’ve represented her ever since. I’ve also worked with a half dozen others who were at that Fincon presentation. What made Tiffany pop out as a top performer? Let’s look and see:

Characteristics of a Top Brand Ambassador:

  • Great work ethic– Tiffany delivers on time or early. Period. No excuses. I had another  rospective brand ambassador who couldn’t keep her phone appointment with me THREE times. I know, why did I give her so many chances? My daughter says I’m too nice sometimes, but I do like to believe the best in people.  However, if she can’t keep a phone appointment with me, how could I trust her to manage the deliverables on a contract?
  • Great questions– A great brand ambassador knows the right questions to ask when working with a client. While I (the agent) ask all the deliverable and money questions (the talent doesn’t need to talk money when they have a representative), Tiffany usually asks things like “What are your expectations?” and “How do you measure success?” She wants to know the client’s target so she can hit it every time.
  • Great Performance– Repeat work is a big part of income for a brand ambassador and getting a client to want you again…and again…and again is a gift. Tiffany makes it her goal to exceed a client’s expectations. This doesn’t mean that she does extra work for free (I don’t let her) but it does mean that she’s open to revising her work, she’s flexible and she gives the client better results than they ever dreamed of getting.

 

The Upward Spiral for a Spokesperson

I’m a pretty big Bradley Cooper fan and I saw the trailer for the upcoming movie, A Star is Born with Lady Gaga. That’s one premiere I’d like to go to as an influencer! I saw the previous version of the film with Kris Kristofferson and Barbra Streisand as well as the 1937 original. It’s a painfully sad story of someone on top who works their way up and then enters a downward spiral to destitution and despair. That same story can happen to brands when they believe their own press, think they are better than others, or they let success go to their head. But just as there is a downward spiral, I believe that there’s also an upward spiral that incorporates the adage, “success begets success.” Here’s how that happens:

  • Start – The brand ambassadors start somewhere. Some of the best begin as bloggers, writers, podcasters, media personalities, or speakers.
  • Skills – We already discussed the different skills, but the best of the best spokespersons will move outside their comfort zones and develop additional skills. Some bloggers are afraid of public speaking—but a top 5% brand will go to Toastmasters and get over that fear and then achieve the elite Accredited Speaker status (the top 1% of 4 million Toastmasters globally). A skilled podcaster will learn to become a better writer. An old-school book author will learn about social media. They seek to become the EGOT of their space in the marketplace—achieving excellence in all areas.
  • Success –As they develop their skills, they get gigs and execute all the deliverables in their contracts with excellence—exceeding client expectations.
  • More Success – As they are successful in contracts, this leads to their ability to develop even more skills and confidence, which leads to more success. They remain teachable and realize there’s always room for improvement.
  • A Star is Born – Some of the most remarkable and successful spokespersons are people that will never achieve celebrity like Kendal Jenner, who gets a cool mil for an Instagram post. Nonetheless, these top 5% non-celeb spokespersons are stars, like Tiffany, because they are working it and getting better every day.

In this blog series, we already learned the definition of a spokesperson/brand ambassador, the skill sets of a spokesperson,  the process involved in garnering, negotiating and contractinga spokesgig. Now it’s time to look at some of the specific deliverables as well as how to remain in compliance so you don’t get in trouble with the Feds!

Deliverables:

In the SOW (Scope of Work) and in your spokesperson contract, there will be an Appendix or a specific outline of what you are to deliver as well as the timeline (due dates) for those deliverables. When working for my brand ambassador clients, if these areas of the SOW or the contract we get from the corporation are not clearly defined, I’ll push back and ask for clarification. Here are examples of the various kinds of deliverables that are part of a working brand ambassadors rate sheet.

  • Per day or part of general appearance day (national TV, local market media TV, print, radio interviews, trade show appearances, podcasts, press conferences, etc.); per pre-tour development day.
  • Per travel day, if required, prior to or following work days
  • SMT (Satellite TV Media Tour) day – These are one of the most lucrative aspects of a contract because they are VERY difficult and require the highest skill set for a spokesperson. You have to be 100% in your messaging (you deliver at least the primary client message in each and every interview.) You usually arrive in a studio at 4:30 a.m. (EST) for makeup and rehearsal, then you have your first media hit around 6:00 a.m. with a morning news show via Satellite. You continue this for 3-4 hours and anywhere from 10 to 35 TV shows. They key is to be upbeat, perky and consistently deliver messaging the entire time. These SMTs earn 3K for a neophyte up to 30K for a non-celebrity pro.
  • Keynote message (speaking)
  • Workshop/Seminar or Breakout Session
  • Panel (as a panelist or moderator)
  • Media training day – This is usually the day before you kick off a campaign or the day before an SMT or RMT. This rate is usually 2x a social post.
  • RMT (Radio Media Tour) day– This is where you are on 10 to 30 radio shows, back-to-back, delivering key messaging for your client. This are usually done from a landline from your home or office and you can even do these in your pajamas. They make about 10x what one social mention makes for you.
  • Facebook Live – They pay you to go live on either their platform or your own platform. This is a premium deliverable and is usually about 6x the cost of one social mention on facebook. Make sure the contract doesn’t include a “Facebook Live” bundled into all the other social deliverables, because this item should rate more.
  • Email or Newsletter – Believe it or not, some clients still like newsletters or a blast of a promotion to your list. This is never free for the client and the price you get for doing this depends on how big your list is and your open rate (how many people open your email when you send it out.)
  • Fully Sponsored Podcast Appearances – You go on to a podcast like The Money Millhouse and if a sponsor is covering it, then you get paid to go on the show and mention the product, campaign or idea. You make sure to give disclosure about the partnership, but more about that in the FTC/Compliance section below.
  • Initial use of name and likeness and continued use – you get paid for the use of your name and likeness. If the client wants to continue to use it on a social platform or a website, then they rent it monthly.
  • Webinar – These are very popular and can be sponsored as long as they don’t seem like a commercial. They need to be organic or your brand ambassador presence can quickly turn into that of a commercial huckster. Keeping it informational, educational and non-commercial is the key to see both the brand ambassador and the client succeed in this kind of partnership.
  • Pitching tips (up to 3 tips) – Separate from Interviews. You get paid to create pitches for media and then if the client pitches them and you get a hit, then you also get paid to go on the show (or the media.)
  • Branded Educational Content – helping companies develop education material as a public service is really hot these days. You step in to help develop this and you put a friendly face on a corporation so that this content is more human.
  • 5 Day Course – Pricing varies depending on deliverables, but you are creating the course for the brand and will get compensated accordingly.
  • Branded 1-sheet PDF with client links – this is a product that you create with the input from the client.
  • Video Series – you get paid per video and the length of the video needs to be defined. There’s a world of pricing difference between a 1 hour video and a 3-minute video.

 

Federal Trade Commission

I’m not an attorney, but I know how to read a brand ambassador contract. I’ve been known to catch more stuff and nonsense than our attorneys who are not working in this space full time. I read, push back and sign every contract that has my name on it for myself or my brand ambassadors.  A big part of every contract is FTC disclosures. In fact, when I went to select a photo for this section, I didn’t just grab a logo off the internet, I purchased the FTC pic—that would be ironic, violate copyright law when writing about the Federal Trade Commission!

In short, you have to disclose any material connection between you and the corporate client you are working alongside. You have to let your public know you are being compensated in some way–whether financially or materially. If you are in doubt about what this kind of disclosure looks like then look at a recent letter written to influencers from a key official at the FTC and make sure you are in compliance.

The corporate contract will outline, specifically, how you are to disclose in the different forms of media. Follow that part of the contract as if your life depends on it—because your life as an influencer DOES depend on following those rules.

Remember Your Why

As you navigate new territories in this space, remember why you are doing what you are doing. If it’s all about the money with you and that’s all you care about, then please don’t call me. I’m not interested in working with you. I want to work with people care about something more than money.

I entered into these waters as a side hustle from home, to supplement our family income and my own income as an author/speaker. I started as a mompreneur and saw that I was leaving money on the table. I didn’t like that.

My goals were pretty simple: to send my kids through college (debt free) and to pay for their weddings. Along the way, I not only met those goals, but I was also able to reach financial independence and start a non-profit Heroes at Home which provides free financial education to service members, veterans and their families.

Why do you want to do this thing?

This concludes our four part series on How to Become a Brand Ambassador/Spokesperson. Feel free to ask me any questions or let me know how you are doing in this journey. If you’re at FinCon, I’d love to meet you and hear about your experience.

And remember, if you are interested in becoming a part of our beta team for a new Brand Ambassador Course, then submit your name to assistant@elliekay.com and we’ll see if you qualify.

One last word of advice as you continue this journey. Comparison is the thief of joy. You’re going to find amazing people doing amazing things in this space but remember that YOU are amazing, too! So have fun and run your own race.

 

What I Luv About Southwest Airlines – part 3

BGadmin

When my grandson, Liam was born, I had already scheduled a trip to see him. But he would be 8 weeks old and on the verge of no longer being a newborn. I couldn’t stand it, I had to see him sooner than later. I went online, changed my flight home from a business trip in NYC to go to Dallas and I saw that beautiful blue eyed boy! It was so worth it to hold him in my arms and experience the joy of the miracle of life.

All of this was possible because I was flying #Southwest and there were no change fees. I only had to pay the current cost of the fare. But since I was flying business class, with a client paying the bill, I could downgrade it and break even in my out of pocket costs—sweet!

Today is part three of a three-part series on how to get the most bang out of your buck when flying Southwest airlines @SouthwestAir. Parts one and two got a lot of responses!

Companion Pass

If you earn 110,000 points in a calendar year, then you earn a companion pass for the rest of the current year and the following year. You can choose your companion and only change it three times. I have had Companion for a couple years now and Bethany Bayless, our Heroes at Home Director of Communication flies for free, saving our non-profit thousands in air fares.

Keep in mind that you cannot use purchased or transferred points toward
this tier. If you purchase a trip on points, then your companion can still come along!

 

Purchasing Points or Fares?

I’ve shown you all kinds of ways to earn points, but what about purchasing points? If you subscribe to the email alerts and you get a Southwest Chase card, you will be notified when points go on sale. These sales vary tremendously such as earning 30%, 40% or even 50% in bonus points when you purchase these. But remember that they don’t count toward tiers and when you fly on points, that flight won’t help you earn your next tier level (other than the dollar amount spent on your Chase Southwest card to purchase them) because you will only earn points on flights purchased with dollars. You can also gift or transfer points from one Rapid Rewards member to another or donate points to charity. You can normally get 10,000 p
oints for $275. Right now, they are on sale for 25% off their normal amount when you purchase 5,000 points or more by August 1st.

When it comes to purchasing fares, you have the advantage of earning points on your flights but you also won’t get your money back unless you purchase the pricey fully refundable fares. The good news is that you can use your unused fares for up to a year toward another flight in your name. But you cannot use them for someone else. So, if you’re flying your college student home for spring break and they want to go to the Bahamas instead, you won’t get the money back and you’ll have to bring that same child for Christmas or another flight within a year from the date of original purchase. Instead, we usually fly our kids around on points because if/when they are cancelled, they go back into my account and I can use them on anyone.

My Happy Seat

By flying the way that I’ve outlined, I’d say that I get exit row about 90% of the time. I will get the exit row with the double seats (and an empty space next to one of the seats.) I also like the biggest exit row that is across from the double seats. I get the exit and Bethany gets the window seat. Then we hope no one sits in the middle (I’m tempted to get an emergency bag and pretend I’m sick to my stomach to discourage people from sitting there, but I don’t!). There’s more room in these rows and I like the extra space. On the 800 series, there are double the exit rows. You can look at the plane from the boarding area and if there are two doors in the center of the plane, then it’s your lucky day to double your chances of getting an exit row.

 

Higher Math – Frequent Fliers Only

Sometimes, at the end of the year (see Early Bird), Bethany gets a much lower boarding number than I do and we look at whether we want to upgrade her boarding position to priority boarding along with the Business Select passengers (A-1 through A-15). We will ask the gate attendant how many “through passengers” there are on the flight before we decide to buy. These are the passengers that stay on the plane from the previous leg and they can move about the cabin to get the good seats. If there are many “throughs,” then it’s a waste of money to upgrade. But if there aren’t that many, then it could be worth it so that we can try to get those coveted exit rows. Interested side note, most of the passengers who get on the plane first, want to sit at the front of the plane so they can be the first off. That can leave the exit rows open for those who board later.

Wild Rides, New Friends, Free Drinks and Quick Exits

I remember the first time that I flew out of John Wayne Airport in Orange County. I was already a frequent traveler, but usually flew into Burbank or LAX. So, when I took off from John Wayne and the airplane put us back in our seat like the California Screamin’ rollercoaster at Disney’s California Adventure park, I was unprepared. It kind of freaked me out a bit because it wasn’t “normal.” The flight attendant told me that there are very strict noise ordinances and they must climb out that way to stay within regulations.

Another tip is something I do almost by mistake. When my Apple Watch tells me I need to get my stand goal, I go to the back of the plane at 5 minutes before the top of the hour and stay there until after the hour, moving around a bit to get my stand goals (please tell me I’m not a little compulsive on my daily Apple Watch goals.) In the process, I talk to the flight attendants and make new friends. Sometimes we laugh a lot and it’s great. In fact, I’ve been offered free drinks dozens of times from my new flight attendant friends, but I don’t drink, so I usually decline. But if you DO drink, you could save money this way, too!

One last hack, when you fly into or out of my favorite airport in the whole world, Burbank, be aware that you embark and debark both at the front and back of the plane. If you sit at the back, you’ll also be one of the first people off the plane when you land in Burbank.

 

 

What Do I Do With My Southwest Points?

When I’m on tour with Heroes at Home, we can be on as much as 70% travel and it’s not all glamour and glitz. It’s long and sometimes exhausting days that takes us away from family and our puppy dogs. But providing free financial education to military members is worth it. Currently, I have 200,000+ points. I use them for creating forever memories with friends and families. I’ve flown friends to weddings, military members home for the holidays and children to graduations. In fact, my next trip on points is to go see a new grandson who is due next month.

Southwest, thank you for helping me spread the love!

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?

Heroes at Home Tours Europe

BGadmin

  1. As part of the “Heroes at Home Financial Event” 2017 world tour, we will visit military members and their families around the world, giving advice and practical tools on how to cope with the military lifestyle and advice on how to manage their money. Heroes at Home is visiting USAFE in Europe as well as AWAG in the next three weeks, thanks to our presenting sponsor, USAA and with help from educational partners such as Experian. You can find our schedule here. Our stops include Ramstein Air Base, Spangdahlem Air Base, Aviano Air Base, Royal Air Base Mildenhall , and Royal Air Base Alconbury

One of the ways we help military families save money overseas is to give them tips to “layer the savings.” Here are the steps to save big online:

1. The first step is to go to MySimon or bing which are shopping robots that will search the internet for your item to find the best deal possible. Then, there’s always amazon as well.

2. Once you’ve found the best deal, the second step is to go to a code site such asRetailMeNot or  coupon cabin  to find the codes you need to save even more. Sometimes these codes are for free shipping, gifts, or discounts.

3. The final step is to get a rebate for your shopping, by going to eBates or SlickDeals. On some of these sites, for example, if you have an account and get your friends to sign up under your account, you can earn $5 per referral. There are hundreds of participating online sites that will give you a rebate off of your purchases and you get a check at the end of each month.

CAUTION: To avoid spam: Be sure you deselect any “offers” you don’t want while signing up for a site. I also recommend that you use unroll.me to manage your subscriptions. They roll all of your emails into one larger email and you can easily deselect or unsubscribe. Bethany Bayless, our emcee has been unsubscribed from 700+ email lists in the last two years using this site. That’s a huge time savings!

Here’s an email from one of our audience members in Europe from one of our previous tours.

Dear Ellie Kay,

I would like to tell you how wonderful it was to have you speak at our meeting at Spangdahlem AB this past week. Your tips were great –I bought a bunch of clothes and with your tips and a $25 gift card I earned from mypoints.com I spent only $14!– and they really do work and are easy to do. Your military topics touched my heart and made me proud of what I am doing here for my husband as well as other military members . Thank you for telling our story to the world and for being an inspiration.Thank you so much!

Sincerely,Christina Aiken

 

Check out our schedule to see if we are coming to a base near you! Or, if you want to support our efforts, you can contribute to the financial education of our military members and their families at our Heroes at Home website.

Characteristics of a Hero at Home

BGadmin

Are you a Hero at Home? There are all kinds of heroes and I remember when my Marine came home from Afghanistan. We waited for hours in anticipation 100 degree weather in dusty 29 Palms, listening for the announcement their company was on its way. What a thrill it was to see his platoon marching up the road after 7 months of praying, worrying, emailing, skyping, waiting, and hoping he and his men came back unscathed. As we sat there amongst various, mostly young families, I couldn’t help but notice the strong heroes around me. There were women who held down the fort while their husbands were away, there were babies who had not met their fathers yet, and there were Moms, like me, who were waiting for the hero they raised to return home. All of these people are heroes at home–those who fight behind the scenes to keep our heroes in uniform safe on the field.

Characteristics of a Hero at Home

I’ve heard it said that if you follow your passion, you’ll never work a day in your life. Well, my passion is military families because we are one! I’ve given over 500 presentations of my “Heroes at Home” Financial Event in six countries and dozens of states including Hawaii (what a hardship tour that was!). In each and every venue I get to meet military members, spouses, kids and parents who love America and know what it means to serve.

I’ve been asked to please post the Top Ten Characteristics of a Hero at Home as a written version of what I speak about in these military venues. So today’s blog is dedicated to you, the hero at home. You may have your servicemember with you, they may be deployed, or they may be due back home any day.

The Top Ten Qualities of a Hidden Hero

1. Sense of Humor: An ability to laugh at oneself and with each other.

2. Flexibility: What it’s called when you create an elaborate candlelight dinner and farm out the kids for the night, and your husband calls to say he’s not coming home because they have an inspection coming up.

3. Courageous: The ability to wave good-bye for the two-hundredth time, fight back the tears, smile, and say, “I love you, I’m proud of you, and I’ll be all right.”

4. Extraordinary: An ability to move fifteen thousand pounds of household goods in twenty-four hours.

5. Strong: Nerves of steel (for all those close calls and near misses).

6. Patriotic: Unashamed to shed a tear during the presentation of the colors or the singing of the national anthem.

7. Faith-Full: Brimming over with faith in God and true to your country.

8. Independent: Confident during solo parenting gigs, but ready to move to interdependence when the spouse comes back home.

9. Acronym Reader: The ability to decode three-letter acronyms (TDY, PCS, UOD, MRE, OIC, SOF, BDU, SOL, etc.).

10. Superhero: The capability to conquer new lands, stay in touch with old friends, keep the home fires burning, jump buildings in a single bound, and stay out of the funny farm.

Which characteristic is your favorite and which one do you need to work on today?

MilCents Helps Build Your Financial Foundation

BGadmin

Are you ready to understand, manage, plan, and protect your money? I know I’m ready and helping others do the same!

I love creative ways to learn about money that are easy and interactive. That’s why I work in Washington DC on the advisory panel of the Military Family Advisory Network (MFAN).  I am writing to share an exciting update about MilCents — MFAN’s financial education social learning program.

Over the last few months, MFAN has worked with financial education experts to develop five customized program tracks that correspond with stages within the military life cycle.

While our Heroes at Home Financial Event helps families learn in a live show, MilCents goes further online and at your own pace. Stages include: ROTC/Service Academies, actively serving, transitioning military, veteran, and retiree. The customized tracks allow users to get the tailored information they need, when they need it. In addition, they’ve enhanced their monitored social community, added gaming elements, and refreshed all MilCents content — especially the content focused on military retirement. 

Are you confused about the changes to military retirement? Don’t worry — MilCents breaks it down so it’s easy to understand in the retirement section.

BONUS: The first 150 participants to complete MilCents and earn all the program badges will receive a $20 Amazon gift card.

Click here to get started. And make sure to tell your friends and family — learning’s more fun when you’re doing it with others.

There’s also a better way to budget. Take control of your money by joining the @Military Family Advisory Network’s customized online #MilCents financial education program and get help with your spend plan.

To the partners who helped make MilCents possible — thank you. We know this program will continue to help families within our broad military community.

Ellie Kay

Advisory Board Member

Military Family Advisory Network

 

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

Do You Believe in Good Credit?

BGadmin

I love a good hero.

When I was a little girl, I saw “Peter Pan.” I fell in love with Tinkerbell for all her spunk and fairy dust, she became my hero. I believed in fairies. I was convinced that if I wished hard enough and focused on happy thoughts, I could fly like Peter and Tink!

My BFF, Nanette Woffard, and I made fairy wings out of panty hose, wire hangers and glitter. We began to exercise our belief by jumping off her circular second story stairway, climbing a step higher each time. We were (five-year-old) girls interrupted when, about step number 8, her mom walked through the room with a load of laundry and discovered our exploits.

Mrs. Woffard encouraged our creativity, but grounded us from flight school. We wallowed our disppointment in homemade chocolate chip cookies and milk.

But I never forgot about my hero and how she could fly.

As a young adult, I met a hero who could fly—for reals (that’s millennial-speak for really and truly).

He flew jets and his wings were hard earned through Air Force pilot training.

We’ve had a fairy tale life so far and raised a passel of Kay kids who also learned to dream, believe and soar to greater opportunities than they thought possible. One of those kids even earned his own set of pilot wings last month. Flying, in life and in dreams, is something we’ve always encouraged.

But there’s nothing that will bring a dream crashing down faster than financial difficulties. That’s why we taught our millennial children how to manage credit and earn great credit scores.

When each of the Kay kids graduates from college, they have a good-to-excellent credit score at the age of only 22. It can be done, but the first step is to understand how credit and credit scores work.

Credit scores impact interest rates, insurance premiums, security deposits, employment and even security clearances. In our Heroes at Home Financial Events, we have various segments. I teach on spend plans and car buying. USAA sends JJ Montanero to speak on saving and investing. But we also have an entire segment on how to develop and maintain good credit in order to keep their security clearances so they can do their jobs.

Gerri Detweiller has been writing in the consumer credit space for years and as one of our speakers, she can attest that credit and debt are themes that bleed into all financial areas. A lot of what I’ve recently learned comes from Rod Griffen a financial educator from Experian, who teaches me the latest nuances in this sometimes complicated space.

What do you believe about credit and are those beliefs fact or fantasy? Here’s a quick quiz for you to gauge how much you know about today’s world of credit.

Answer the following as either FACT or FANTASY:

  1. If I have never had a credit card or debt, then I won’t have a good credit score.
  2. Carrying over a balance on my credit card helps me build good credit scores.
  3. My credit history is the area that has the greatest impact on my score.
  4. If I pay off my balances each month, then I don’t have to worry about Debt Usage or Utilization (the amount of debt to credit available).
  5. If I co-sign a loan for someone else, it will still be their debt and not mine.
  6. I have three credit scores.
  7. I can get a free copy of my credit report at Annual Credit Report for each of the three main credit reporting bureaus.
  8. My credit report and my credit score are both free and they are basically the same.
  9. It’s a smart credit move to repeatedly take advantage of introductory APR rates by opening new credit cards and transferring these balances to the lower APR. Then cancel the cards and you will still have a good score while taking advantage of the lower rates.
  10. If I only have credit cards and student loan debt, then it’s important for me to get a car or motorcycle loan for the expressed purpose of building diversification to help my credit score.

Answers

  1. Fact. No credit history means you haven’t started to positively build your credit score. This means you would have a low score on many of the scoring models.

FIX: Start out with a secured credit card where you can’t charge more than you have secured in the credit card account. You can review cards at Bankrate but read the fine print to know what you are getting. This will establish a history and help you start to develop good credit.

  1. Fantasy. Carrying over a balance only means you’re paying interest every month on the balance you carry—which isn’t a smart credit move. Maintaining a credit card balance doesn’t help to build your credit.

FIX: Pay your credit bills on time, carry lower balances and have credit cards for a longer period of time in order to build positive credit.

  1. Fact.  Credit history accounts for 35% of your score and Debt Usage (Utilization) accounts for 30% of your score.

FIX: Concentrating on these two areas (Credit History and Debt Usage) are the most effective means of helping you build good credit.

  1. Fantasy. Even if you pay off your balances every month, you could take a hit in the Debt Usage area if you charge more than 30% of the available credit at the time that the snapshot of your account is taken. So if you have 10K available on the credit card and you’ve charged 9K in order to get points, you’ll have a 90% utilization record if this account is recorded before you pay the balance when the bill is due.

FIX: If you charge items to get points and your utilization is high, then transfer a payment BEFORE the bill is due. You’ll still get your points, but you get ahead of the Debt Usage scenario.

  1. Fantasy. Once you co-sign, then you are responsible for the debt if the other person doesn’t pay. If they pay, it’s not problem, but if they don’t, you will.  You’ll have to pay off that motorcycle, the remainder of the lease or the credit card, should that person default.

FIX: Don’t co-sign on a loan. We’ve lost friendships and relationships with family members when they tried to take us hostage by trying to force us to co-sign. If the lender determines they won’t take a risk on them without a co-signer, then why would you take the risk?

  1. Fantasy. Rod Griffin from Experian, our Heroes at Home credit educator says he could probably pull 80+ scores on any of his audience members. There are three main credit reporting bureaus, but many credit scoring models.

FIX: To know if you have a good credit score, pay attention to the scoring model. On some scales 750 is a good score and on other scales, it could be average.

  1. Fact. You can and should get your free copy of your credit history from each of the three main reporting bureaus listed at Annual Credit Report. But be careful, you have to opt out of paying for scores, monitoring or other services.

FIX: When you order your free score at this site, don’t ever give your credit card info or you could inadvertently be signing up for a product or service you don’t want. However, you do need to be prepared to give your social security number at this secured site.

  1. Fantasy. A credit history is different from a credit score. The history gives a list of all the various credit accounts/debt you’ve have in your lifetime. The credit score is a number that determines your credit worthiness to lenders. The credit history is free at Annual Credit Report.

FIX: Free credit scores are available at Credit.com and CreditKarma.com. But make sure you are getting the free service and not accidentally signing up for a paid service. You can also check your credit card bill to see if your company provides a free copy of your score. If you are military, get a free score at your Family Readiness Center.

  1. Fantasy. This is a good way to deteriorate your credit score. Lenders can see you are transferring balances and taking advantage of a new card’s APR offer. It can even look like you are floating the note or trying to pay Peter by robbing Paul. When you open and close multiple accounts, you shorten the overall length of your credit history and can ruin your score.

FIX: Pay attention to your credit history and remember that every new card you open shortens the overall credit history length of all your accounts combined. Open new credit accounts sparingly and don’t credit card jump to try and save money.

  1. Fantasy. While it is true that different kinds of loans build diversification in your credit profile, diversification only accounts for 10% of your score. So the idea that you SHOULD go out and buy a car or motorcycle (and finance it) in order to get a better credit score is pretty ludicrous.

FIX: Buy a car or motorcycle because you need one and you can afford it. Make sure you budget to be able to pay the note, insurance and other vehicle ownership expenses.

 

Scoring

10 Correct

 Superstar – You know a lot about credit, so you are probably: 1) in the financial industry or 2) really well informed and good with money or 3) you cheated. If you didn’t cheat, you might even qualify to be one of our superstar speakers at Heroes At Home because you certainly know enough to teach this topic!

 

8-9 Correct 

Excellent – You may be kicking yourself or crying “trick question” because you got almost all the right answers. Nonetheless, even experts can learn a few things about the ever-changing world of credit. Be sure you are giving your mentees up to date advice and pay attention to the nuances of building excellent credit.

 

6-7 Correct

 Good – You have a good working knowledge of credit, but you’re no expert. You’ve believed a few fantasies instead of the facts in some of these areas. Pay attention to the questions you missed and make it a point to readjust your thinking so that you can build even better credit.

 

5 or less Correct

 MEH – You know just enough to be dangerous and you are at the greatest risk of crashing and burning when it comes to credit mistakes. Study the wrong answers and make sure you understand how credit works before you open new lines of credit, cosign a loan or try to get a loan for a new vehicle.