JW’s Financial Coaching Podcast Lesson #94-Three things to do before considering purchasing a home

Play
  • It’s important to know what to do when purchasing a home
  • Even more important to know what to do before you start the process
  • The most important three things to do before we purchase a home
  • Revelation of the title to my book on buying and selling a new home
  • Quote of the lesson from Suze Orman

The JW’s Financial Coaching Podcast_94

The whole home buying process can be stressful. Because of that, I’m releasing a book this spring which details our experience in buying a home. Not only do we share our story but we also give tips and advice on what to expect as well as break down some of the hidden costs of buying a home.

On today’s lesson we are going to discuss the three things to consider before purchasing a home. They are the following:

  1. Become debt free-Being debt free has a lot of benefits in other areas than purchasing a home but in purchasing a home, being debt free has a lot of benefits. It reduces risk, makes it easier to qualify for a mortgage, and frees up cash. These all help when becoming a home owner and allows your home to be a financial gain instead of a financial strain.
  2. Have an Emergency Fund-Having an emergency fund goes hand in hand with being debt free. Owning a home is a great thing, but anyone who has owned a home for more than 30 days can tell you that there are a lot of sudden expenses with buying a home. Some are small expenses but others such as a broken heater, leaky roof, or an air conditioner unit that isn’t working are huge expenses. If we don’t have an emergency fund then we usually turn back to debt to replace those large home expenses and that restarts the debt cycle. However with an emergency fund that buys us some time and space to make those repairs and it won’t put us in as much risk.
  3. Knowing how much you can afford-We all have an idea of what we can afford when buying a home. But it is important to establish the boundary before you start to look at houses! Buying a house can be an emotional and impulse purchase so it’s important to establish what your mortgage will be. Once we look at homes that are out of our price range we are probably going to end up purchasing a home that is out of our price range.

Now granted, doing all three of these things might slow down our ability to purchase a home. In fact it could slow down the process significantly. But you know what? I’m still doing it. If you do all of the above three things you will probably be better prepared than 99% of other home buyers and it will allow you not to rush into the home buying process.

Speaking of the home buying process, I’ve finally completed my book on our family’s story of buying a home in 2013. It is scheduled to be released later this spring and on today’s lesson I’m excited to announce that the name of the book is, “A Tale of Two Houses: Our journey of buying a home the right way after buying one the wrong way.” Thanks to all of you who gave your thoughts on the book title. Also stayed tuned in the next few weeks as I get prepared to accept applications to become a member of my book launch team for those of you who are interested.

Also on today’s lesson I give a quick review of Pat Flynn’s new book Will it Fly. I’ve had a chance to read an advanced copy and love the book. If you are looking to or are even remotely thinking of starting a business of any size, please check this book out first. Pat’s book will challenge you but also force you to look at some things before you put all the time, effort, and money in that you need to launch a successful business. You can order his book on Amazon.com

Today’s quote of the lesson is brought to you by Audible.com.

“It’s easy to underestimate the real cost of home ownership”Suze Orman

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

Posted in Debt, Money Saving Tips, Mortgage, Podcast, Uncategorized | Tagged , , , | Leave a comment

JW’s Financial Coaching Podcast Lesson #93-Review of Sling TV

Play
  • Paying too much in cable or satellite tv costs?
  • Is Sling TV an attractive alternative to cable
  • My review of Sling TV
  • Why it is a good option if you are looking to cut costs
  • Quote of the lesson from Thomas Jefferson

The JW’s Financial Coaching Podcast_93

Last week I did a written review of Sling TV and on today’s lesson of the podcast I’m doing an oral review of Sling TV. Is Sling TV a viable alternative to cable TV? What are the advantages of Sling TV? The disadvantages? I try to answer all of those questions on today’s podcast.

Overall I think it is a good alternative to cable, as long as you are just looking to watch basic cable channels (ESPN, TNT, TBS, CNN, etc). The app is easy to use, the picture quality is clear, and at $20 a month, it won’t break your budget.

It’s also the future of TV in my opinion. With services such as Sling as well as Hulu and Netflix, the traditional business model of cable and satellite TV is coming to an end. Streaming video and TV services are the future so it will be interesting to see how Sling TV evolves in the coming years.

Today’s quote of the lesson is brought to you by Audible.com.

“Never spend your money before you have it ”Thomas Jefferson

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

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My review of Sling TV

Quite often when we look back at our expenses for the prior year or do a budget for the first time, one of the biggest expenses that sticks out is the cable or satellite TV bill. Depending on the package this can quite easily run into the 3 digit mark per month. This leads to questioning why we pay so much a month on something we use so little and it has led to a growing amount of people “cutting the cord” and going away from cable TV.

Lisa and I got rid of our cable 5 years ago. Mainly this was a lifestyle choice, but also some consideration was made for the financial aspect as well. To be honest I haven’t really missed it much, except in a few cases. One of those instances was over the holiday week between Christmas and New Year’s. My Bengals were playing an important game on Monday Night Football, which was on ESPN and there were various college football playoff and bowl games on over New Year’s Eve and New Year’s Day which were also on ESPN. Being the big football fan that I am, I really wanted to watch those events, so I thought I would give Sling TV a try.

Photo Credit: engadget.com

Sling TV is an internet TV service owned by the DISH network that started up early last year. Sling TV streams directly to your phone, laptop, tablets and other apps. Its appeal is that it has channels that were previously only available through your cable or satellite TV provider. To make sure I liked their service, I decided to give their 7 day free trial a try. After a week of trying it out there were some features that I really enjoyed and some others that I wasn’t so sure about.

What I liked about Sling TV was that the app itself was really easy to use and operate. Once you logged in, you just selected the channel you wanted to watch and up came a guide of what was airing currently and which shows would be next. Also the picture was great quality. That has been an issue in the past with some streaming services but Sling TV hit the mark perfectly on this.

It also has the basic cable channels that are the most popular. A complete list can be found on its website, but ESPN, ESPN2, TNT, TBS, and CNN are the main highlights along with other popular channels.

What is also nice is that with the Sling TV app available for both Android and iOS users, you can take Sling TV with you on the go. That would seem to be very useful if you are traveling or whatnot. Also Sling TV supports Amazon Fire TV, Apple TV, Roku, and Google Chromecast. That is really nice as I was able to cast the programming from Sling TV over to my TV and watch it.

Finally the price is pretty good for what you get. At $20 a month, you can’t really beat the price for basic cable. Also there are no contracts and you can cancel at anytime online, without having to call a sales rep, which was a real plus. With its ease of signup and cancellation you can conveniently just sign up for a period of time you want the service, say during March Madness or football season, and cancel when it is over. You can also add additional packages starting at $5 a month, but at $20 a month for basic, the budget won’t be broken.

The big drawback I found was that you can only watch Sling TV on one device per account. So, for example, if I was watching something on my phone and my wife wanted to watch on our iPad she wouldn’t be able to. If you are single you shouldn’t run into this issue, but if you live in a multi-person home it could be difficult sharing the programming.

It also doesn’t have DVR functionality. Now some of the channels do have On Demand viewing after the fact, but that doesn’t include the sports channels like ESPN or ESPN2 so if you record a lot of live TV you might be out of luck.

Although it does support devices such as Chromecast I was only able to cast successfully some of the time. Sometimes it would work perfectly, other items it would cast for a few months then stop and buffer. I don’t know if that was a Chromecast issue or a Sling TV issue but if I can’t cast it to my TV consistently it’s not worth it to have in my opinion.

Overall I think that Sling TV is a good product. I’ve read that the market reception to Sling TV has been lukewarm so far, which is really surprising. As cord cutting becomes more and more popular, as well as more and more financially beneficial, I think this is the future of programming and paid-for TV. It’s not a finished product by any measure and some things still need to be worked out. But if you are looking to cut cable costs while still getting enjoyable programming, Sling TV is a great option to look into.

I cut ties with it, though after the 7 day trial period ended. I enjoyed it, but just don’t feel like $20 is worth it, and more importantly my time is worth what it would take me away from doing. But I look forward to Sling’s improvement as it gets a foothold in the market.

How about you; what are your thoughts on “Cord Cutting?” Have you done it? What were the results?

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JW’s Financial Coaching Podcast Lesson #92-Thoughts on Christmas

Play
  • Final Lesson of 2015 sharing my random thoughts on the Christmas season
  • Christmas gifts are about the children
  • Having the spirit of giving throughout the year, not just in December
  • Saving for Christmas in January
  • 2015 was great, looking forward to even better things in 2016

The JW’s Financial Coaching Podcast_92In this final lesson of 2015 we are going to discuss Christmas. Specifically I’m sharing some thoughts I have had in my mind this year. It is a little bit different of a show but we are going to discuss primarily the following three topics:

  • Gift giving is about the children-Maybe I’ve changed a lot on this subject because I’ve had children or maybe it is because I’m older now but to me giving gifts is about the children. Remember when you were a young child and woke up on Christmas Day? It was such a magical time. But you don’t have to give gifts to just our children to experience that. Giving gifts to children in need is such a special thing to do and is so much more enjoyable than adding another DVD or sweater to your collection.
  • Spirit of giving-While December is the unofficial “giving” month of the year, the best giving we can do is throughout the year, not just in December. Giving is a major component of a healthy financial plan and when done correctly it is such a great experience that we hardly miss the money from our bank account. So instead of waiting until December to start giving why not make giving a strategic part of our monthly spending plan today? If we’re only in the spirit of giving in December, we are really missing out.
  • Saving for Christmas in January-As we move past the Christmas season and get settled back to our normal lives lets’ talk about saving for next Christmas. For some of us that might seem a little too early, but if you want to have a great Christmas next year now is the time to start to think about it. By starting today and saving a little each month it gives us more time to save overall. Planning ahead that far in advance might seem a little bit strange, but that is because no one else does it. By starting to save now there is a real good chance that you could even have more money to spend at Christmas then you normally would be by saving ahead of time.

Finally as this is the last lesson of 2015 I want to wish everyone a Merry Christmas and a Happy New Year. My hope is that 2015 was a great year for your finances and that 2016 will be even better. Hard to believe that this is now my fifth year doing the JW’s Financial Coaching podcast but I’m planning on doing some incredible things for 2016 that I’ll be sharing with you in the upcoming months. I wouldn’t be able to do any of these things without you guys and I appreciate you listening to the show as we continue to gain new subscribers each month.

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

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JW’s Financial Coaching Podcast Lesson #91-Countdown to improve your finances in 2016 part II

Play
  • Continuation of the series we started last lesson
  • Five exercises to take control of your finances
  • More advanced techniques and tips on today’s lesson
  • How to enter for a chance to a win a copy of “The School of Greatness” by Lewis Howes
  • Quote of the lesson

The JW’s Financial Coaching Podcast_91

After last lesson on how to start to take control of your finances, we finish that up by giving five more tips that you can do to take your finances to the next level. These are actually a little more details and advanced then the basic we had last time. They are as follows:

Day 6-Increasing your monthly cash flow by reducing your tax refund

Day 7-The Envelope System

Day 8-Automate your investing

Day 9-The power of giving

Day 10-Investing in yourself

This podcast is inspired by a 10 part video series I did at the beginning of the year titled, Countdown to take control of 2015.

Also on the podcast I announce the kickoff to a promotion I’m doing in the month December. I’ll be giving away a copy of the New York Times and Amazon Best Seller “The School of Greatness” by Lewis Howes.

As someone who has read “The School of Greatness” (Currently reading it for the second time) and have worked through the exercises in the book, I can tell you the words are inspiring and the material works. It’s not a magic book though, you just can’t read it and everything change in your life. You have to be motivated and dedicated to achieve your dreams and goals. But hearing Lewis and other people’s stories of overcoming adversity to achieve great things in their field is rather motivating and inspiring.

There are two ways to get your name entered into the drawing

  1. Take a five question survey about your financial goals

As a better way to serve you, I’m conducting a five question survey regarding your financial goals and how we at JWFinancialCoaching.com can help you achieve those goals. The survey shouldn’t take more than five minutes. But the results are really important in helping identify what your financial goals and needs are and helps us to create material that will give you a new perspective on your money which will help improve your economy.

The survey is anonymous,  but to get entered into the drawing you will need to input your email at the end of the survey. You can view the survey at JWFinancialCoaching.com/Survey

  1. Subscribe to the JW’s Financial Coaching Newsletter

If you haven’t subscribed to the Newsletter yet, simply enter your name and email and you will be signed up. By doing so you’ll get an email in your inbox once a month or so encouraging you to focus on improving your economy.

As an added bonus, you’ll also receive a link to listen to JW’s Manifesto on Money audio book. This is a 20 minute audio book sharing my views on money and how it impacts every part of our lives.

To signup please visit JWFinancialCoaching.com/Newsletter or you can signup at the end of the survey

The deadline to enter is Monday December 21st at 11:59 PM EST

If you are interested in purchasing “The School of Greatness” on your own please visit Greatnessbook.com.

Today’s quote of the lesson is brought to you by Audible.com.

“Instead of asking ‘How will this purchase impact me today?’ ask ‘How will this purchase impact me 10 years from now?’ ”Jon White

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

Posted in Books, Charitable Giving, Personal Accountability, Personal Story | Tagged , | Leave a comment

The School of Greatness Book Giveaway

*Credit Lewishowes.com*

As a new year is fast approaching us, many of us are looking to make a positive changes in our lives. The problem is we don’t know where to start in making these changes or we try really hard to do something different but get frustrated or discouraged easily and give up by February.

If this has happened to you before, don’t worry you aren’t the only one. I’m in the same boat you have been in. But to help encourage you to achieve your goals this year I’m giving away a free copy of the New York Times and Amazon Best Seller “The School of Greatness” by Lewis Howes.

As someone who has read “The School of Greatness” (Currently reading it for the second time) and have worked through the exercises in the book, I can tell you the words are inspiring and the material works. It’s not a magic book though, you just can’t read it and everything change in your life. You have to be motivated and dedicated to achieve your dreams and goals. But hearing Lewis and other people’s stories of overcoming adversity to achieve great things in their field is rather motivating and inspiring.

There are two ways to get your name entered into the drawing

  1. Take a five question survey about your financial goals

As a better way to serve you, I’m conducting a five question survey regarding your financial goals and how we at JWFinancialCoaching.com can help you achieve those goals. The survey shouldn’t take more than five minutes. But the results are really important in helping identify what your financial goals and needs are and helps us to create material that will give you a new perspective on your money which will help improve your economy.

The survey is anonymous,  but to get entered into the drawing you will need to input your email at the end of the survey. You can view the survey at JWFinancialCoaching.com/Survey

  1. Subscribe to the JW’s Financial Coaching Newsletter

If you haven’t subscribed to the Newsletter yet, simply enter your name and email and you will be signed up. By doing so you’ll get an email in your inbox once a month or so encouraging you to focus on improving your economy.

As an added bonus, you’ll also receive a link to listen to JW’s Manifesto on Money audio book. This is a 20 minute audio book sharing my views on money and how it impacts every part of our lives.

To signup please visit JWFinancialCoaching.com/Newsletter or you can signup at the end of the survey

So there are the two ways to enter. The deadline to enter is Monday December 20th at 11:59 PM EST

If you are interested in purchasing “The School of Greatness” on your own please visit Greatnessbook.com. Below is an excerpt from the website

In my new book, The School of Greatness, I share the tips and habits I’ve gathered from interviewing “the greats.” The lessons and practical exercises in my book prove how anyone is capable of achieving greatness. I’ve come to learn that the masters of greatness are successful not because they have managed to avoid or neutralize a traumatic life experience, but because they applied specific habits and tools to embrace and overcome adversity in their lives. ~ Lewis Howes

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JW’s Financial Coaching Podcast Lesson #90-Countdown to improve your finances in 2016 part I

Play
  • Want to set a solid financial foundation but don’t know where to start?
  • Five exercises to take control of your finances
  • Why it is important to have your goals set before the new year
  • How to enter for a chance to a win a copy of “The School of Greatness” by Lewis Howes
  • Quote of the lesson

The JW’s Financial Coaching Podcast_90

Hard to believe it but 2015 is almost over. That means it’s time to focus on what we want to do in 2016. You might be thinking, “Wow, can’t I enjoy Christmas first before I focus on 2016?” While that is true, the thing I’ve noticed with setting and achieving goals is that the sooner you know what they are, the easier it is to work your goals and ultimately achieve your goals.

Because of that fact today we’re starting a two part series on the podcast on short little daily exercises we can start to take control of your finances. We’ll do five today and then five on the next lesson. My recommendation is that over the course of a week you one of these exercises a day and after doing each one you will have a better idea of where you stand financially and know what the next steps are in your financial journey.

Below are the five exercises we talk about on today’s lesson:

Day 1-Figuring out your Net Worth

Day 2-Listing out your Debt

Day 3-Creating a simple Budget

Day 4-Emergency Savings

Day 5-Sell some of your stuff

This podcast is inspired by a 10 part video series I did at the beginning of the year titled, Countdown to take control of 2015.

Also on the podcast I announce the kickoff to a promotion I’m doing in the month December. I’ll be giving away a copy of the New York Times and Amazon Best Seller “The School of Greatness” by Lewis Howes.

As someone who has read “The School of Greatness” (Currently reading it for the second time) and have worked through the exercises in the book, I can tell you the words are inspiring and the material works. It’s not a magic book though, you just can’t read it and everything change in your life. You have to be motivated and dedicated to achieve your dreams and goals. But hearing Lewis and other people’s stories of overcoming adversity to achieve great things in their field is rather motivating and inspiring.

There are two ways to get your name entered into the drawing

  1. Take a five question survey about your financial goals

As a better way to serve you, I’m conducting a five question survey regarding your financial goals and how we at JWFinancialCoaching.com can help you achieve those goals. The survey shouldn’t take more than five minutes. But the results are really important in helping identify what your financial goals and needs are and helps us to create material that will give you a new perspective on your money which will help improve your economy.

The survey is anonymous,  but to get entered into the drawing you will need to input your email at the end of the survey. You can view the survey at JWFinancialCoaching.com/Survey

  1. Subscribe to the JW’s Financial Coaching Newsletter

If you haven’t subscribed to the Newsletter yet, simply enter your name and email and you will be signed up. By doing so you’ll get an email in your inbox once a month or so encouraging you to focus on improving your economy.

As an added bonus, you’ll also receive a link to listen to JW’s Manifesto on Money audio book. This is a 20 minute audio book sharing my views on money and how it impacts every part of our lives.

To signup please visit JWFinancialCoaching.com/Newsletter or you can signup at the end of the survey

The deadline to enter is Monday December 20th at 11:59 PM EST

If you are interested in purchasing “The School of Greatness” on your own please visit Greatnessbook.com.

Today’s quote of the lesson is brought to you by Audible.com.

“Winning is a habit, unfortunately so is losing ”Vince Lombardi

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

Posted in Books, Budgeting, Debt, Net Worth, Podcast, Spreadsheets | Tagged , | Leave a comment

JW’s Financial Coaching Podcast Lesson #89-How improving our health improves our finances

Play
  • How being healthy improves our bottom line
  • Eating healthy improves our waist line and our wallet
  • It sounds obvious but being healthy saves you money at the doctor
  • Want to make more money? Try resting more
  • Quote of the lesson

The JW's Financial Coaching Podcast_89

One of the things that I have really been trying to be conscious of this year is my health. It’s been a process and I am by no means perfect, but I’ve come to grips with the fact that how I treat my body impacts how I feel at that moment. I used to eat whatever I felt like, sleep whenever, and exercise when I had the time, but now that doesn’t work well with me.

Becoming more health conscious has many benefits, including helping our finances. On today’s lesson I cover four benefits that living a healthy lifestyle has on our finances. They are below:

  • Save money on food. This applies to both the grocery store and eating out. We hear about how much more expensive it is to eat more healthily and there is some truth to that. But when you start to eat healthy you realize how much it costs to eat fast food, ice cream, and Oreos.
  • Save money on insurance. This sounds pretty obvious but when we are healthier we tend to get sick less. This then costs us less to insure and saves us tons in deductibles and co-payments. It also lessens our chances of certain long term diseases which then in turn costs us less in life insurance.
  • Eliminates idle spending. Eating well, sleeping more, and exercising takes a lot of time and effort, time and effort that perhaps we would have spent instead on idle spending at stores or online retailers. Idle spending is the worst because after one month we have hardly used the item we bought and can’t tell anyone why we bought it in the first place but if you have less idle time you have less time to spend.
  • Help our performance at work. How many of us are dragging at work? It might be because we don’t like where we work, which is another lesson in and of itself. But being healthier gives us more energy to perform at our job or in our business. Often the work environment isn’t always healthy as we might be sitting at our desk all day staring at a computer screen and eating sweets. That makes it hard to perform when you aren’t feeling your best. But what if you are performing at your best? Wouldn’t that tend to making more money in the long run?

This lesson isn’t a direct one on finances but an indirect lesson on how living healthy helps our finances. Again I still have a long way to go, but one of the big steps for me was realizing that what I was doing was impacting my life. Therefore I needed to do something about it.

Remember, money is an important part of life, but not the most important thing. It’s important to be well rounded in our faith, family, career, and health in addition to our money.

This lesson’s quote is brought to you by Audible.com.

“It is one thing to record what you spend, it is another to plan how you are going to spend things before it happens ”Russ Carroll

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

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JW’s Financial Coaching Podcast Lesson #88-What to do today to help your financial tomorrow

Play
  • In ode to Back to the Future Day; things to do today to help your financial future
  • Our financial future will be here before we know it
  • The importance of planing seeds today
  • Quick review of Lewis Howe’s “School of Greatness”
  • Quote of the lesson

The JW’s Financial Coaching Podcast_88_edit

The movie, Back to the Future II, premiered on November 22 1989, which also happened to be my eighth birthday. If you’ve seen the movie you know that part of the plot is the main characters going into the future, October 21st 2015. Now since the premier was almost 26 years ago, most of you probably weren’t old enough to think about or even care about money then. Heck, some of us listening today weren’t even born yet in 1989. So today we are discussing things that you do today with your money that your future self will look back on and appreciate.

Below are a few of the things that we talk about in today’s lesson. While none of these are really new or ground breaking, they just put a different spin on having a healthy financial plan.

  1. Paying off debt
  2. Investing
  3. Developing a career you love
    • Traditional job or your own business
    • Most careers and businesses start from nothing
    • If you have a desire-take some time and money and invest in that
  4. Giving
  5. Working together with your spouse on money

Now with this being said, we don’t know the future and I am certainly not guaranteeing you will find success if you do one of these things. However I do know by looking back in the past that these steps DO have a history of working out, in a big way. The thing is that the next 5, 10, 15, 20, or 25 years are going to go by in a blink and will happen regardless of what we do. So why not let us have something to show for it by making wise financial decisions today that we can point to in the future as a tipping point.

I also share ways you can connect with other things that are happening around JW’s Financial Coaching via Social Media, the Newsletter, and the podcast.

In addition I was able to read a rough copy of Lewis Howe’s new book “The School of Greatness”. I highly recommend the book. While it doesn’t directly speak to your personal finances, the book is eight chapters full of stories, wisdom, and practical action steps to take to achieve your goals, whatever they might be.

This lesson’s quote is brought to you by Audible.com.

The best time to plant a tree was 20 years ago. The second best time is now.”Chinese Proverb

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

Posted in Books, Investing, Mortgage, Podcast | Tagged , , | Leave a comment

JW’s Financial Coaching Podcast Lesson #87-The best thing to do with money when you’re a teenager

Play
  • Can a teenager invest in an IRA?
  • Better to invest in retirement or in college when a teen?
  • What I recommend doing
  • Quick review of Andy Stanley’s “How to be Rich”
  • Quote of the week

The JW’s Financial Coaching Podcast_87

I learned a lot of lessons in my teens and early twenties. Some of them were good and some not so good. But one of the best lessons I learned was the value of work. Not only did I learn the value of hard work, I also learned the value of relationships, became motivated to finish school and get my degree, as well as learning about money. That is why I was thrilled to receive a question from a listener about their teenage daughter working. The parent wanted to know if and how much their teen could contribute to an IRA. The answer is yes, as long as they had an earned income.

But that got me thinking about if I had to do it all over again, what I would do? Would I invest my money I earned as a teen in a ROTH IRA or save it for college? Considering I have two young boys, they will be facing this in about a decade so I decided to run some numbers and on today’s lesson I share the results and my conclusion on what I would recommend.

For my calculations I made the following assumptions:

  1. Worked for all four years of High School
  2. Saved $2,000 a year in a ROTH IRA or College Plan
  3. 8% annual return
  4. Not advocating going into student loan debt

Based on that assumption, our teen would have about $9,400 saved after they graduated high school. The advantages of having it in an IRA are that you it could keep growing. If that 18 year old doesn’t add another penny to the balance or touch any gains for 42 years, when they turn 60, they’ll have approximately $260,000 saved at 8%. If that investment earned 10% annual return you would have over $600,000. If you just put $9,400 into a ROTH IRA at age 22 and let it grow until 60, that amount would be $410,000 or about a $200,000 difference.

When we use that money for college an interesting thing happens. I did some research and the average tuition for a public state school for the 2014-2015 school year was $9,200 and that drops to $3,400 per year for a 2 year institution. Now that doesn’t include room and board but that prevents the student from borrowing for school for one year. Now it won’t pay for all of school, but by avoiding student loans we are able to start to invest in a ROTH IRA or company 401(K) plan a lot sooner and allow the power of compound interest to work in our favor.

What would I do? I would save the money for college first before I do any investing. It’s really tempting to look at the returns on those investments. But ultimately paying for school out of pocket and getting through without any student loans is the best investment one can make in themselves.

Here are some additional resources I’ve posted in the past about paying for school and investing.

This lesson’s quote is brought to you by Audible.com.

“If you buy things you do not need, soon you will have to sell things you need.” ~ Warren Buffet

Also I give a short review and recommendation on Andy Stanley’s book “How to be Rich”. I read this recently at the beach while on vacation with my family and it really spoke to me on how to handle my money as Christian living in the wealthiest nation ever. You can pick it up on Amazon and if you use the link on the show notes page I will get a percentage of the sale which helps pay for today’s lesson.

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If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

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