Friends -- it is already mid July! JULY! How can that be? That means that it is basically August, which means school is already back in session, and we might as well all start planning for Thanksgiving and Winter Break. Actually, this year I am already planning for Thanksgiving and Winter Break, but that is a real anomaly for me. We’ll see if I keep it up in 2025. 

Regardless of where you are on the plan ahead train for holidays, I’d like to encourage you to get on the plan ahead train for your finances. We all have to take care of our personal finances, whether we like it or not. The question really is, would you like to do it in a way that feels calm and (relatively) stress-free or would you like to do it feeling like a chicken with your head cut off? 

In order to tackle your finances with a healthy dose of CHILL, that means that you need to do things before they snowball into problems. So, over the next few months I’ll be covering some low hanging financial action items that will make you feel accomplished and financially confident come November and December. 

Photo by Ivan Samkov: https://www.pexels.com/photo/high-angle-shot-of-a-notebook-and-a-pen-beside-a-mobile-phone-7213436/

Today we are going to start with something super basic, but often overlooked…your accounts!

• Make a list of all of your bank accounts (checking, savings) and make sure that you can log into each portal online. Save your usernames and passwords in a safe location. I highly recommend using an encrypted password saver, like KeePassXC or 1Password.

• Check to see if any of your bank accounts charge regular fees. If they do, call/chat and ask if there are ways to avoid the fees. If there aren’t ways to avoid them, then I recommend looking at the following options as alternatives: 

• American Express (only available to credit card users) 

• Alliant

• Ally 

While fees aren’t the end of the world, they really do add up. For example, if you have a $20 monthly fee, you end up spending $240 per year or $1,200 over five years. If you put that same amount in a high yield savings account with a 4.25% interest rate, you would end up with a total of $1,359.14 after five years. And really, which would you rather have, negative $1,200 or positive $1,359.14?

• Speaking of, if you don’t have a High Yield Savings Account, this is your sign to get one. My favorites are: American Express, Ally, and Vio Bank money market savings. For most of my clients (and myself) I recommend having a savings account that is housed at the bank where your main checking account is, even if it doesn’t have a great interest rate. That savings account should hold a buffer amount of money that can be transferred to checking immediately if the need arises (i.e. the cost of rent or your mortgage payment). The rest of your savings should be in a High Yield Savings Account, earning you interest. 

That’s it! Check your accounts, make sure you can log in, save your passwords, reduce fees, and optimize interest! If you do all of that, you are on your way to being a financial wizard, or, at the very least, an incredibly confident adult. And hey, that may be better than being a wizard anyway. I hear the hats are less silly.  

As always, I’m rooting for you. 

XOXO,

P.S. Do you have any recommendations for other topics for me to cover? I’d love to hear your input! Just hit reply to this email.

P.P.S. Want to work with me one-on-one? I’d love to work with you! Book a free consultation call here or fill out the new client inquiry form and I’ll follow up with you via email. 

As I was writing last week’s post, I realized that I really needed to tell you all about a few other end of the year tips and tricks to make sure that everyone’s favorite time of the year -- TAX TIME -- goes smoothly. 

The worst thing is realizing when you are filing that you missed out on some money saving opportunities, but that there’s nothing you can do about it now. Let’s try to avoid that scenario together!

So, what can you do before the end of 2024? 

• Bookkeeping

• Already have a bookkeeper? Check in with them! Ask them if they need any additional information or documentation from you before they close out your books for the year. 

• You are your own bookkeeper? Make sure your books are up to date and reconciled. This is the time to find those old receipts, upload them, and move on! If this is like pulling teeth for you, I recommend good ol’ bribery (i.e. telling myself that I’ll order my favorite Thai takeout tonight if I finish Q2 and Q3) or admitting that you might want to outsource this work for next year (reach out to me for recommendations!) 

• Own a business and have no idea what I’m talking about? Please reach out! I can help you create systems so you aren’t in a stressful tax situation in the future -- and so that 2023 taxes aren’t as stressful as they could be. A kind, knowledgeable, holding hand is pretty awesome. 

• Documentation & Mail

• If you are a 1099 employee, make sure you know exactly who to expect 1099s from in early 2024 (i.e. anyone who paid you more than $600). I recommend making a list of the people/companies as well as the amounts you got paid so you can cross reference and check them off the list when the papers come in. That way it is also really easy to know who you need to follow up with early next year! 

• If you want to be really nice check in with these folks and make sure they don’t need a W9 form from you (you likely already filled one out for them, but sometimes these things get lost or forgotten about!)

• If you are a W2 employee, check to find out if you’ll be getting your W2 in the mail or electronically. If it is electronically, make sure you know how to log into whatever portal the company uses so you aren’t dealing with last minute tech headaches! 

• Speaking of portals, no matter how you get paid, now is the time to figure out how to log into all your portals. That means any HR related portals as well as all bank accounts (especially savings accounts!), and investment accounts. Most tax docs go electronically now and it can be easy to miss things! 

• Spending Money!

• If you own a business (LLC, s-corp, or sole proprietorship) this may be a good time to make some last minute tax deductible purchases. You might even be able to prepay for upcoming events or services you know you’ll be signing up for in the new year. The trick with these types of last minute purchases is that you need to buy things you actually need to buy! The tax deduction is rarely worth it to buy things you actually don’t want or need, but stocking up on disposables that you regularly use, nonperishable items, or equipment can be a great idea! 

• This is also a great time to check in on your charitable giving. If you itemize your deductions (i.e. you do not use the standard deduction when you file taxes), you may be able to deduct your charitable contributions! The rules on whether or not you can deduct and how much are dependent on other tax circumstances, so you should reach out to your CPA to find out exactly how those donations will impact your taxes, but either way you will be giving money to support a cause you believe in -- and that seems like a win to me! 

And what can you do between January 1 and April 15, 2024? 

• Contribute to retirement! This could be an IRA, 401k, SEP, or 403b. As long as it is a pre-tax retirement account then you can deduct your contributions for the 2023 fiscal year. Most financial institutions (i.e. the companies that hold your retirement accounts) have an easy way for you to indicate that you want the contribution to be for the previous year, but if you don’t see it you can always call the company and ask for help. 

As always, I’m rooting for you.

XOXO,

Let’s be real, I decided to write this newsletter because I thought the title was fitting for Halloween, not because I had the perfect topic to go along with it. Although, let’s also be real, I could pull almost any financial institution or figure out of a hat and explain how they are a wolf in sheep’s clothing. And hey, maybe I’ll actually turn this into a recurring series and write about someone different each time! 

Today, though, I want to just focus on one figure in the financial services world - Dave Ramsey. 

For those of you who don’t know, Dave Ramsey is a personal finance “guru” and evangelical Christian radio host who has been famous in both the finance industry and American Christian world for decades. 

Not that surprisingly, there are a lot of scandals now associated with him (see this Covid related one, this BS financial advice one, and this premarital sex one to get you started), which I’m not going to go into because the real journalists out there are absolutely doing a better job. 

What I want to talk about is his message. 

Dave Ramsey has built a career by teaching people how to get out of debt. And, I think he’s likely been incredibly helpful for a lot of people. The problem is that he also pushes messages that are harmful and offensive. 

His message is often extreme. He recommends cutting costs by eating rice and beans (like, only rice and beans). I know that being extreme is how you build buzz, which I’m sure was his goal, but it also can put people in a really scary situation. When you’re hearing that the only way to succeed is to cut expenses to the point of pain, that is what happens -- pain. 

Dave, on the other hand, is an incredibly wealthy man with an estimated net worth over $200 million. He is the son of real estate developers and has been in real estate and/or finance since the beginning of his career. He was a millionaire by age 26. 

He explains his financial story as a rags to riches story because after gaining incredible wealth he ended up declaring bankruptcy. His version of the story is very scary. I’m positive that it was really scary and stressful at the time. I’m also positive that the financial laws in place allowed him to succeed long term. 

Dave Ramsey declared bankruptcy as part of a business solution to a problem. His portfolio at the time was reported to be worth $4 million and his recalled debt was $1.2 million. He had high earning power and was, by all accounts, set up to land on his feet. It is not dissimilar to many other rich, white cis men of his generation declaring bankruptcy (i.e. Donald Trump, Larry King). It is dissimilar to the experiences of his audience. 

I’m not saying that he didn’t work hard, but I am saying that his experience is not the norm, nor is his experience relevant to his audience. He is an extremely wealthy, privileged, white cis man, telling a whole lot of financially vulnerable people what to do. He thinks that because he is rich he is better -- there is a moral judgment baked directly into his message:

If you follow my rules (which I never have had to) then you will shed your failings that got you where you are and you will be good (rich) like me. 

That is his core message. 

Being in debt or being poor is a moral failing. Being rich is a sign of moral success.   

Ramsey preys on his audience (he also claims to pray for his audience, but who knows). Folks who are in debt come to him and to his resources looking for relief and guidance. They are often scared and overwhelmed. They are in vulnerable situations and are looking for help. 

And then Dave sells them a system. He makes money off the vulnerable by selling “quick” solutions that, like most diets, are almost impossible to follow perfectly. That means that when a customer falls short of their goals the answer that Dave can give them is that they (the customer) didn’t follow all of the rules correctly. They failed because they couldn’t cut it, not because the system wasn’t realistic. He sets himself up to be infallible while still touting the righteous nature of his system. 

That isn’t how life works and it isn’t how money works. Our lives are inevitably full of unexpected expenses, changing priorities, and external realities. Some of us are born into systems that set us up for success and some of us are born into systems that set us up for failure. There are absolutely tools that we can use to improve our financial reality (heck, that’s why I have a job!), but ignoring the baked in realities and systemic failures of our financial system is foolish. 

So, if you’ve been hearing financial advice over the years from Dave Ramsey or anyone else that makes it feel like you’ve been doing something wrong and that’s why you haven’t reached your financial goals, I’d love for you to try to shed some of that guilt. If you want some help or support in shedding that guilt, reach out! I’d love to chat. 

As always, I’m rooting for you.

XOXO,

I get questions all the time about what my job actually is. I often get asked if being a Financial Coach is the same as being a Financial Advisor. And…the answer is sometimes. 

I know, I know, I always give the sometimes answer. But, basically, the sometimes answer is always right (now I’m just being obnoxious). 

Anyway, I want to take the time to explain the difference between these overlapping jobs, at least as I understand them. There will absolutely be other opinions out there that don’t perfectly match mine! 

Financial Advisor

Financial Advisors are sometimes called Investment Advisors or Money Managers as well. Those three terms are quite interchangeable, but they often overlap quite a bit. 

Financial advisors most frequently advise on investments, oftentimes actually handling a person or company’s investments on their behalf (i.e. making trades, recommending stocks or portfolios, recommending investment and related tax structures). Their job is to make recommendations to their clients based on the information they have at hand. While there are meetings that take place between advisors and clients, they aren’t super frequent (typically annually, semi-annually, or quarterly). Meetings are usually focused on updating clients on their current investment portfolio and making recommendations on next steps. 

This is what I did right after earning my MBA and, while a lot of the knowledge I gained during this period impacts my work now, very little of my actual work is the same. I no longer focus solely on investing and I no longer handle anyone’s money or investments on their behalf. I no longer put together 401k plans or group health insurance plans, but Financial Advisors DO do all of those things! 

To note, many Financial Advisors (like basically all professionals), focus on one or a couple areas of work. Some only work with individual investors. Some only work with companies. Many have set a net worth minimum for prospective clients. 

Financial Advisors most often get paid based on a percentage of “assets under management”. This means that an advisor makes a specific percentage (think 1%, 0.75%, etc.) per year of the funds they manage. The more money you have with that advisor, the more money they make off of you. 

Financial Coach 

This is what I refer to myself as, but, as I state below, I act as a consultant as well. 

Financial Coaches work with clients to help them learn new skills, crucial knowledge, and operational processes to better manage their own money. 

Like all of these professionals, coaches tend to focus on specific financial issues or specific types of clients. My personal expertise is working with small business owners and freelance professionals who have fluctuating income and want to reach their professional and personal financial goals as well as create systems for financial operations, analysis, projections, and daily habits. That messy middle in between business and personal finance is my jam! 

Other coaches may focus on more specific financial topics, such as debt management, investment strategy, or personal budgeting or on other types of clients (i.e. individuals with a specific net worth, folks nearing retirement, people with specific career paths).

Coaches typically work with clients in person or through virtual meetings. Client time is reserved for teaching, asking questions, analyzing current systems and helping clients practice new skills or set up new systems. There is no doing for you, but instead a focus on helping you learn how to do it yourself. 

Some coaches also provide online classes (I have one with Puno of ilovecreatives here!) or group coaching opportunities. 

My Financial Coaching services consist of: 

1. Monthly coaching packages with either one or two sessions/month for 6-12 months

2. Sprint Day packages with (typically) 3-6 three hour intensive sessions over the course of a few months

Financial Coaches typically get paid on a monthly or by session price. I had been paid by the session for many years, but recently moved that to a monthly system to better incorporate all of the backend research, preparation, and client communication I do in between sessions. 

Financial Consultant

This one really feels like the catchall term in the world of advisory financial services. A financial consultant consults (ughhhh, I’m the worst!). But they do! 

Financial Consultants work clients on a wide range of financial issues. They do not do the work on a client’s behalf or manage money a la a Financial Advisor, but also don’t necessarily teach clients new skills, a la a Financial Coach. Instead, Financial Consultants review the current reality and make recommendations on next steps, some of which they may help implement to a degree, but would not take full responsibility of doing. 

For example, a financial consultant would likely create projections of potential financial growth scenarios for a company, but would not implement any of the necessary functional changes for the company. A financial consultant would likely review and analyze an investment portfolio and help the client determine what works well for them, what doesn’t, and how to change it, but would not do it for them. The difference between a Coach and Consultant is the amount of backend time needed to help the client reach their goals. I spend hours of time researching, analyzing, and creating spreadsheets for my consulting clients, whereas I spend most of my time with my coaching clients actually communicating (either via email or via video sessions). 

Like coaches and Advisors, most Consultants have a specific expertise and only focus on that type of client or that type of work. The folks I work with on a consulting basis are very similar to the folks I work with on a coaching basis. The difference is often either the scale of their business (i.e. larger business, more revenue, more staff) and/or the specific financial goals they have. 

My Financial Consulting services consist of: 

1. Business Strategy and Support monthly packages for small business owners, that consists of some mixture of the following areas of consultation: 

1. Financial strategy creation and/or advising

2. Financial operations and management 

3. Pricing determination for services and products

4. Revenue analysis

5. Expense analysis

6. Account(s) systems and maintenance structures

7. Investments and fundraising

8. Bookkeeping

9. Growth and/or time horizon projections

10. Debt management and/or strategy

Financial Consultants usually get paid more like Coaches than Advisors. They get paid on an hourly, monthly, or per project basis, depending on the coach and the scope of work. I work with clients on a monthly basis with a cap on the number of hours of backend work that I will do. 

So, do you need one of these people in your life? 

My go-to answer when I get asked this is, “maybe, but not necessarily”. 

1. Most folks don’t need a Financial Advisor unless you are managing a large investment portfolio or are in charge of benefits for a company. 

1. Note: if you are in the market for an investment or financial advisor, hit me up! I’m happy to share some recommendations.

2. I’m rather partial to financial coaches, but I still don’t think everyone needs them. If your financial reality is pretty simple (i.e. no high interest debt, steady income, relatively steady expenses, and no complicated tax or other financial structure) then you likely don’t need a Coach. However, if you are really struggling with the emotional and mental aspects of your finances, you may need a coach who specializes in that area or a Financial Therapist.

3. Financial Consultants work best when you have come to the point in your (almost always business) finances where you know you need help and don’t want to have to learn how to do everything by yourself, but you aren’t at the point where you need to hire someone full-time. 

If you thought, “hmmmm, that could be me!” to either of the last two bullet points, let’s chat!

As always, I’m rooting for you. 

XOXO, 

I talk, or at least mention, Money Diaries a fair amount on Instagram and in this newsletter. They are a crucial aspect of my personal money journey and are a crucial tool for the vast majority of my clients. But, upon some reflection, I realized that it has been a long time since I actually explained what a Money Diary is. 

So here goes! 

First, the purpose of a Money Diary is to enable you to track your income and expenses in an organized and thoughtful way so that you can glean helpful information which, in turn, will help you implement new financial strategies to better reach your goals. Whew, that was a mouthful!

To simplify…

Money Diary = Tracking Income & Expenses = Data = Habit Shifts = Goal Accomplishment!!

See? They’re really cool. 

There are a lot of Money Diaries out there, but they don’t all call themselves that term. There are things like YNAB and Mint and there are Pinterest versions of pen and paper written diaries. 

I have never found a version that I think truly captures what I want, so when I started this work in 2016 I made my own. I have tweaked it over the years to the point that I don’t think the original would even recognize the 2023 version, but that means the 2023 version is pretty gosh darn amazing. 

It includes: 

• Directions for using the spreadsheet

• A way to update and personalize all spending categories 

• A way to update and personalize all income categories

• A sheet for each month of the year

• Emotional reflections that help you recalibrate and more quickly reach your goals

• A year in review doc that can be used throughout the year to better understand trends

And now it also includes a Learn-At-Your-Own-Pace Video Module where I walk you through how to use the spreadsheet, some tips and tricks for how to streamline the process, guides for what to do when things don’t go as planned, and how to match the diary process with your larger financial goals. 

Tracking income often gets ignored, or at least not highlighted, when doing traditional budgeting, which has always driven me bonkers. Income is half of the equation! And, by understanding our income mix and trends we are better able to plan for the future (i.e. if you understand that you always have lower income in the summer it is easier to plan for that throughout the rest of the year). 

And expenses. Oh expenses! Often the goal in traditional budgeting is to lower all expenses as much as possible. While lowering expenses in certain categories may be helpful for reaching your goals (it often is!), it is often counterproductive to try to reduce all categories, or even many categories at once. For one thing, some expenses are out of our control! And, some expenses bring joy and ease into our lives such that removing them or drastically reducing them would end up working against our larger financial goals.

That’s why the reflection piece matters. You need to be able to understand which levers to pull and which ones need to be left alone. Knowing is empowering and exciting. Knowing means you can move forward with clarity, structure, and ease! 

Ready to get going? 

As always, I’m rooting for you.

XOXO,