Month : December 2014

Mind Over Money

How To Get Your Partner On Board With Finances – 3 Ways

I receive emails from people explaining the problems they are facing in personal finance. The main issue I receive is about working out finances with a significant other that doesn’t really want to get on board. What can I tell these people?

I don’t believe there is really an answer that can be given because everyone is different and has different motivations. Everyone has a different breaking point. You’ve reached it and that’s why you want to take control of your finances, They have obviously not gotten to that point yet. Some people never make it there, especially if you end up turning things around yourself. If you do everything then they have no reason to get on board because they don’t see anything bad and are living just fine. The way i see it, you have three choices.

Common Goals

You both need to come up with a goal that you both can enjoy. I don’t mean one that benefits you both. I mean one that’s actually going to get you both motivated. This is where you can get what you want by giving them what they want.

For example, say you want to pay down the credit cards. In order to do that you need to get more income or cut your expenses. To get them on board, find out something they really want that maybe a few hundred to a thousand dollars. This really has to be something they are willing to work for.

What you do is say that when half the debt or all of the debt (you have to make a milestone) gets paid off, then they can purchase that prize. OF course the price is Variable according to the debt load. If you have $2000 in debt don’t offer something that’s a thousand dollars if they reach the goal. But if your debt is $40,000, then it would be worthwhile to both of you to pay off that debt and get the $1000 prize.

No this isn’t the best option because it doesn’t get rid of the root cause of why they don’t want to get on board. For that you need to see a counselor. This is a workaround to get things done for you, which is the goal.

Ultimatum

Forcing the other person to make a choice isn’t necessarily the best way to get them on board 100% but it will put the ball in their court. This gives you the power. Make sure you mean it though otherwise they won’t ever believe it’s for real again.

In order for this work, again it has to be something that motivates them, It has to be something they cherish. The ultimate thing would be you, but that’s really hammering them. But sometimes that’s what people need, A good whack on the head. So give it to them if you think they need it.

Live with it

The last option isn’t for everyone. If it really, really doesn’t bother you, then you’re probably not reading this since it’s a non issue. However, just incase, I’ll go over it. Living with someone that doesn’t want to be a team player isn’t a good environment. If it’s time to talk about finances together then it’s time to become a team. If one of you fails, then you both fail. You have to have that mentality and if they don’t, then you need to make them realize that or live with it.

Just remember, if you decide to live with it, don’t ask for change later because they are going to bring up that you’ve lived with it this long, or that you never complained before. If you live with it, it’s going to get worse I promise. If they don’t get on board with finances, which is a very important part of life, what will they get on board with? Probably nothing you want.

Non of these options are great. But if your spouse isn’t on board I would recommend marriage counseling first and then try these if you’re not satisfied. If they don’t try to compromise with you or jump on board then it’s not a team and you need to start looking out for yourself.

Relationships are a give and take. If all you do is give then you’re getting the short end of the stick. If all you do is take, then you’re a dick. Excuse my language but it’s true. Finances are a big thing in life and it needs to be worked out one way or another. Sometimes it’s hard but not taking care of your finances can lead to a lot more than a broken heart. Take care of yourself.

Do you think you could live without your significant other being on board with your finances? If so, let me know why in the comments or through the contact page. I’d love to hear your thoughts.

Insurance

8 Questions to Ask When You Buy Disability Insurance

Disability insurance is among the most valuable, and most frequently skipped, forms of insurance, endorsed by financial experts like Dave Ramsey and insurance consultants like Courtney Rogers. Like all other forms of insurance, though, not all policies are created equal. When shopping for disability insurance to protect your family, ask and answer these eight questions.

1.       Can I Get a Group Policy?

Employers, labor unions and trade associations are just three of many memberships that can get you access to a discounted disability policy. Assuming the details of coverage match your needs, this can mean cutting your premium payments by 50% or more.

2.       What is the Company’s Reputation?

Although insurance regulation has increased significantly in the past couple of decades, not all insurance companies are willing to pay out claims on the time frame you need disability insurance to happen. Check out the company online, with referrals from happy customers, and with a watchdog rating group like AM Best. You may have to pay a slightly higher premium to work with a good company, but it’s worth it.

3.       What Conditions are Excluded From Coverage?

All disability insurance policies will name forms or causes of disability for which they won’t pay out, for example most won’t pay if you get injured while on drugs or committing a felony. Others might exclude specific events or illnesses common to your profession. Find out what’s excluded and make the best informed decision you can.

4.       What Percentage is the Payout?

Although some policies will pay out a flat amount spelled out in the policy, most will instead pay a percentage of your income. Find out what that is, and how they determine what your “income” is. This is especially important if you are self-employed and your income fluctuates from month to month.

5.       What is the Length of the Payout Term?

Some disability policies will potentially pay benefits for the rest of your working life – up to age 65 or so. Others will limit benefits to three years or another set term. Which kind of payout term you get is a balance between protection and affordability. Just be sure you know before paying the first premium.

6.       How is “Disability” Defined?

Some policies are inexpensive in exchange for an unreasonably limitingdefinition of “disability.”  Others have complex and restrictive procedures for proving you’ve become disabled. Review the definition of disabled in your policy.

7.       Does it Cover Partial Disability?

A policy might pay benefits only if you are unable to work at any job, even one that pays substantially less than your chosen career. Others pay nothing if your disability makes you able to work only part time. If you can afford it at all, get policies that cover lost income from being unable to work in your field, and partial disability payouts. Both situations are far more common than a total disability.

8.       When Does the Policy Begin to Pay Benefits?

Every policy has a gap between when you become disabled and when the benefits “kick in.” Short-term disability insurance typically has a waiting period of days or weeks after your sick leave ends, with long-term coverage typically taking weeks or a couple of months. This is a factor you can skimp on, paying a lower premium for a longer waiting period. Just be sure to set up your financial planning and emergency fund to reflect the period you pay for.

Mind Over Money

Is This Just As Valuable As Money

An important part of managing your finances is learning to manage your time.  After all, your time is just as valuable as your money isn’t it?.  Without time, it is difficult to earn money.  As you learn to manage your finances, it is also important to learn to manage your time.  After all, if you spend several hours saving a dollar, you haven’t really saved any money at all.

Determine the Value of the Savings

Some people feel that it is a good idea to run from store to store getting all the best deals from the weekly ads.  While this can save some money, it can also be time consuming and difficult.  A better choice may be to consistently shop at one store.  The major grocery stores cycle through most products on their weekly ads each quarter.  If you stock up while items are on sale, you will save money without having to run around.  The canned soup on sale at one store this week, will likely be on sale at your store the next.  The savings you find must be equivalent to the value of the time spent to obtain them.

Use the Internet to Save Time and Money

The internet is a great tool for saving time and money.  It provides easy access to information, prices and tools that you can use to save time and money.  Use the internet for price comparison rather than running all around town looking for the best deal.  This will help you know where to make your purchase for the best value.  You can also using time saving tools like online banking, financial tracking and more to save time while managing your finances.  Saving time is the same as saving money.

Don’t Bulk Up

Many people think that a great way to save money is to buy in bulk.  This can work well for large families but may be inefficient for those living alone.  Buying in bulk for small groups requires spending a lot of time packaging and storing items.  This diminishes your savings.  Additionally, if the items purchased are not used, the money is simply wasted.  Make sure that your purchases are actually needed or you will be spending your money unnecessarily.  A good deal isn’t really that great if you will never use it.

How do you save time?

Money Management

Money Management After Debt: Three Tips to Remaining Financially Secure

After struggling with your finances for years, you’ve finally gotten your head above water and can see the light at the end of the tunnel. While you certainly deserve a pat on the back for a job well done, there is still a lot to learn. What must be understood is the financial freedom and wealth management are lifelong processes. Many people make the mistake of assuming that because they’re out of debt they have nothing more to worry about. However, if you’re not careful, you could find yourself right back in the same place you were a few years back…if not worse.

Discipline and Knowledge

The key to remaining debt free and financially secure is discipline and knowledge. Learning the best practices for managing your money and having the discipline to follow through will minimize the chances of you falling back into debt or financial distress. Whatever you’ve done to get yourself to this point, you must stick to it and continue to expand your knowledge so that you can properly prepare for what’s to come….

Now that you’re out of debt, you have wiggle room and a bit of money to play with. Before you go and splurge on an impulse buy, it’s probably best that you learn what’s next in managing your money responsibly. To start, you should:

  1. Continue to Budget
  2. Learn to Save
  3. Grow Your Money

Continue to Budget

As stated above, you MUST remember to continue the practices that got you to this point to begin with. Budgeting is a big part of money management. To properly gauge where your money is going you need an effective budget in place. Budgets help you to stay on target and prevent you from making financial mistakes that could land you back in debt. Therefore, if you’ve had a budget in place, stick to it.

Learn to Save

When you’re in debt, saving is a bit challenging to accomplish. For every dollar you save, there’s another ten dollars that you owe. So now that you’re out of the web of debt, you can begin learning the basics about saving. Saving your extra money may not have been what you had in mind, but it does provide you peace of mind and allow you to accomplish financial goals. When it comes to saving, there are two areas that you should consider putting up for: a rainy day and retirement.

  • Rainy Day Funds –Financial advisors recommend saving for the long run. Even if you’re only saving a few bucks per month towards your rainy day fund, having cash that you can easily access is imperative in these economically trying times. Based on your budget, you should be able to determine how much money you can put towards your emergency or rainy day fund. The goal is to eventually save at least six months to a year’s worth of income.
  • Retirement Savings – It’s never too early or too late to start saving for retirement. At some point in your life you’re going to want to put away the business suit or work uniform and enjoy your retirement. Find out how much you will need to live on for retirement and begin putting money away. Even if you have a 401K or pension through your employer, having additional savings is ideal.

Grow Your Money

Wouldn’t it be nice if you could sit back and let your money work for you? Well now you can. Investing can be a very lucrative way to watch your money expand over the next few years. Decide what you’re interested in and begin investing. Whether it’s real estate, the stock market, gold, or silver, you’ll find that with a little knowledge and discipline your money will go further than you ever imagined. Of course it is important to do your research and confide in financial experts along the way to ensure your money reaches its fullest potential. In the News & Insights section of their site, JSF Financial features several articles that address potential investment strategies.

It’s as simple as that. Applying the above information to your personal finances can help you to remain secure even when life isn’t so stable. No one can ever predict the future, but by employing proper practices now and continuing to monitor, save, and invest you will find that your future looks a whole lot brighter. If you’re having trouble in getting started, it is recommended that you consult with a financial advisor for suggestions, advice, and guidance.