JW’s Financial Coaching Podcast Lesson #130-Do your friends influence your finances?

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  • Does who we hang out with impact our finances?
  • Keeping up with the Jones’s is pressure we put on ourselves
  • How negative influences impact our finances
  • How positive influences impact our finances
  • Quote of the lesson from Jim Rohn

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A few lesson’s back we shared how loaning money to family and friends can be a difficult situation to be in, both from a lender and borrower’s perspective. Well on today’s lesson we’re going to talk about friends and money but from a different angle.

It’s been said that you act like, earn about the same, and behave similarly to who you hang out with the most. With that being said then, do the friends we keep impact our finances?

I think we do, and they can be a powerful influence in how we make our money decisions.

The thing is though that when we talk about influences, they can be either a negative or positive influence. So this lesson is all about determining what a negative influence looks like and what a positive influence looks like.

The encouragement on today’s show it to look at your current relationships and see if they have either a positive or negative influence on your money. I don’t believe you should just cut off a relationship because it has a negative influence on your money.

However if there is a negative money influence on your life, instead of hanging out with that friend for a day at a time. You may need to hang out a hour at a time.

We also discuss how keeping up with the Jones’s is often a pressure we put on ourselves, instead of pressure put on us by friends.

Below are some Facebook groups that help propel me to good financial decisions and are a positive influence on my life

Resources mentioned in the show

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

You are the average of the five people you spend the most time with.” – George Horace Lorimer

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, Google Play 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 #129-When to work with an advisor and when to invest by yourself

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  • When to invest yourself and when to have the help of an advisor
  • Why invest yourself?
  • Why to enlist the help of an advisor
  • How an advisor can pay off
  • Quote of the lesson from George Horace Lorimer

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Whenever I receive feedback from listeners of the show one of the main topics they would like to cover more is investing. I’m always a little hesitant to discuss investing because I am not a registered investment professional.

Yes I can speak to the differences between a ROTH and Traditional account, a 401(K) and an IRA, stocks vs. bonds vs. cash, and the importance of diversification. But not what specific investment is right for you.

I’ve attempted to learn more and self-educate, but the thing with investing is that if you search around people who are actually qualified, you’ll see that it seems like everyone has a different approach to investing. This makes it hard to decipher which is the right way for you.

Of course there is no one right way, but how do you determine whether an investment is right for you or not? Today we are focusing on whether to invest yourself or hire a CFP or advisor to help you choose. Based on a recent study, it’s about 50/50 on whether or not you invest or have an advisor help you.

When to Invest Yourself

For those of us who invest on our own, we mainly do it by default with our 401(K) at work. We have no clue what to invest, so we pick a few funds and let our co-worker tell us about what they invest in. But there are legitiment reasons to invest in yourself, some of the reasons include:

  • You have self taught yourself investing strategies
  • You have experience with investing
  • Have a level of comfort and understanding
  • Not going to be scared by down turns in the economy or market

When to Invest with an Advisor

  • Just starting out or you have no idea what you are actually doing
  • You find the topic investing very confusing
  • Very impulsive
  • Need help determine what your financial plans for the future are

Again to me, there isn’t a one size fits all approach to investing. There are legit reasons to go at it alone and equally legit reasons to have some advice. Of course it will cost you something to invest with an advisor, but if you aren’t investing or are investing in a product that is under performing, isn’t it worth paying someone to help give you an even bigger return down the road?

Paying a fee isn’t necessarily a bad thing, if it is helping you to invest more each year, increasing your rate or return, causing you to knock panic and withdrawl everything over a news event it it well worth it. The fee is bad however if the advisor is just filling out paper work and not really teaching you about investing.

Thing to Remember with Investing

Whenever we do invest in something, either on our own or with an advisor it’s important to know

  1. Why you are investing in it
  2. What’s the investment’s goal and risks
  3. What is the investment’s fee structure

If you know those things with investing you are well on your way. Again I don’t think there is a right way or a wrong way. It all depends on your comfort level and knowledge of investing.

In the past Lisa and I have used an advisor to help us out with selecting funds, and we’re not against doing it in the future.

Right now we investing primarily in low cost index funds on our own which keeps the costs down and makes whatever the market is doings. But that’s just us.

My hope is this lesson provides you with knowledge to decide whether to invest on your own or hire an advisor.

Resources mentioned in the show

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

“It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.” – George Horace Lorimer

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, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

Want to learn more about my views on money?
Get a free copy of "The JW Manifesto on Money"
We respect your privacy.
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JW’s Financial Coaching Podcast Lesson #128-How Fear inhibits our ability to win with money

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  • The biggest inhibitor to winning with money is fear
  • How we saw this manifest in the election this week
  • How to discern between real fear and worry
  • Why fear shouldn’t drive our financial decisions
  • Quote of the lesson from Zig Ziglar

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JW’s Financial Coaching Podcast Lesson #127-Washington won’t change your finances

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  • Anyone else sick of the election and ready for it to be over?
  • Why Washington won’t and can’t change your finances
  • The importance of focusing on your economy
  • What you can spend your time focusing on instead
  • Quote of the lesson from Rory Vaden

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JW’s Financial Coaching Podcast Lesson #126-How to handle loans from family and friends

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  • The most difficult loan to handle is the one from family and friends
  • Why we borrow from family and friends
  • The dangers in doing them
  • Why it is important to have to clear communication when lending to or borrowing from family and friends
  • Quote of the lesson

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JW’s Financial Coaching Podcast Lesson #125-Prioritizing for your retirement or for your child’s education?

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  • Most couples assume they need to sacrifice for child’s college fund
  • Benefits of doing each one
  • Do we need to pick one or the other?
  • The need to prioritize yourself over your children
  • Quote of the lesson from Chris Hogan

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Would you budget a million dollars?

If I handed you a million dollars today would you sit down and develop some kind of plan with the money?

Chances are your answer to that question is a resounding yes, but then why are we so reluctant to do so with our own money?

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JW’s Financial Coaching Podcast Lesson #124-What is Financial Coaching Exactly?

  • Why I got into financial coaching
  • What Financial Coaching is
  • What Financial Coaching is not
  • Why this show is different than other financial podcasts
  • Quote of the lesson from Tom Landry

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JW’s Financial Coaching Podcast Lesson #123-Is there a need for multiple bank accounts for saving?

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  • How to track your savings fund
  • Things to consider when deciding whether to lump your savings together or keep it separate
  • The only way to guarantee savings
  • How Lisa and I track our savings
  • Quote of the lesson

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Why do we equate Frugal with being Cheap?

While thinking the other day about personal finances, the question dawned on me, why do we use frugal and cheap so interchangeably?  Often when one is described as frugal we usually associate that with being cheap.  But is that necessarily the case?  If not, then what is the difference between being frugal and being cheap?

Simply put, being frugal means being resourceful with your money and not spending it on wasteful things.  It is maximizing the money you have, but still spending it on things you enjoy. Continue reading

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