Let's talk about personal finance
When I do financial coaching w/ friends & family
Step 1 is ALWAYS to get organized
Start by tracking your expenses
@mint
@PersonalCapital
@ynab
More:









When I do financial coaching w/ friends & family
Step 1 is ALWAYS to get organized
Start by tracking your expenses
@mint
@PersonalCapital
@ynab
More:










Step 2
Create income / net worth statements
Here is the coaching template that I created and use with all of my clients
https://drive.google.com/open?id=18ee7tP0qSorcbwe9Imd8D0SP52xLtf5n
Create income / net worth statements
Here is the coaching template that I created and use with all of my clients
https://drive.google.com/open?id=18ee7tP0qSorcbwe9Imd8D0SP52xLtf5n
Step 3
Optimize ALL expenses
Can you lower your cable / phone bill?
Can you spend less on food? ( http://budgetbytes.com )
Do you have any recurring charges you no longer need?
Attack them all!
Optimize ALL expenses
Can you lower your cable / phone bill?
Can you spend less on food? ( http://budgetbytes.com )
Do you have any recurring charges you no longer need?
Attack them all!
Step 4
Starter emergency fund
How much? At least enough to cover insurance deductibles
Starter emergency fund
How much? At least enough to cover insurance deductibles
Step 5
Pay off ALL High-Interest Debt
Payday lenders
Credit cards
Loan sharks
Pay off ALL High-Interest Debt
Payday lenders
Credit cards
Loan sharks
Step 6 (if applicable)
401(k) up to the employer match
401(k) up to the employer match
Step 7
Full emergency fund
3+ months of expenses in cash
6+ months if you have 1 income and kids
Full emergency fund
3+ months of expenses in cash
6+ months if you have 1 income and kids
Step 8 (if applicable)
Max Health Savings Account (HSA) contributions if you have a high deductible health plan
$1,400 deductible individual
$2,800/family https://www.fool.com/retirement/complete-2019-guide-health-savings-account-hsa.aspx
Max Health Savings Account (HSA) contributions if you have a high deductible health plan
$1,400 deductible individual
$2,800/family https://www.fool.com/retirement/complete-2019-guide-health-savings-account-hsa.aspx
Step 9
Max IRA contributions
Roth / traditional
$6,000 / $7,000 depending on age in 2020
Max IRA contributions
Roth / traditional
$6,000 / $7,000 depending on age in 2020
Step 10
Pay off ALL non-mortgage low-interest debt
Student loans
Cars
HELOC
Pay off ALL non-mortgage low-interest debt
Student loans
Cars
HELOC
Step 11
Max out 401(k)
$19,500 / $26,000 depend on age 2020
Max out 401(k)
$19,500 / $26,000 depend on age 2020
Step 12 (if applicable)
529 contributions
529 contributions
Step 13
33% to a regular brokerage account
33% to mortgage paydown
33% to irregular expense fund (car, roof, vacation)
33% to a regular brokerage account
33% to mortgage paydown
33% to irregular expense fund (car, roof, vacation)
Step 14
Whatever you want
Whatever you want
Other important things
If you have kids, YOU NEED A WILL & OTHER ESTATE PLANNING DOCUMENTS
Pay to meet with a local lawyer
It's expensive but worth it
If you have kids, YOU NEED A WILL & OTHER ESTATE PLANNING DOCUMENTS
Pay to meet with a local lawyer
It's expensive but worth it
If you have dependents and are not already rich
YOU NEED LIFE INSURANCE
20-year, fixed-rate, TERM insurance (not whole/universal) is a good start
I like $1 MM per adult
@Policygenius & @healthiqinsure are excellent resrouces
YOU NEED LIFE INSURANCE
20-year, fixed-rate, TERM insurance (not whole/universal) is a good start
I like $1 MM per adult
@Policygenius & @healthiqinsure are excellent resrouces
Other insurance:
Health
Umbrella policy
Disability
Home/renters
Car
Business (if small business owner)
Health
Umbrella policy
Disability
Home/renters
Car
Business (if small business owner)
Other tools (free):
@creditkarma for tracking credit score
http://SSA.gov
http://Annualcreditreport.com
@upromise
http://missingmoney.com http://travelmiles101.com
@creditkarma for tracking credit score
http://SSA.gov
http://Annualcreditreport.com
@upromise
http://missingmoney.com http://travelmiles101.com
If you are a homeowner
GET AN ENERGY AUDIT DONE
Many utilities offer this FOR FREE
And will even subside improvements
GET AN ENERGY AUDIT DONE
Many utilities offer this FOR FREE
And will even subside improvements
Amazing podcasts:
F.I.R.E.
@ChooseFi
@AffordAnything
Personal finance
@AnswersPodcast
Market
@MFIndustryFocus
@MarketFoolery
@MotleyFoolMoney
F.I.R.E.
@ChooseFi
@AffordAnything
Personal finance
@AnswersPodcast
Market
@MFIndustryFocus
@MarketFoolery
@MotleyFoolMoney
Too much to handle on your own?
Hire a fee-only money coach
I like http://momandddadmoney.com
But there are lots of great choices
Hire a fee-only money coach
I like http://momandddadmoney.com
But there are lots of great choices
Remember, no one cares more about your money situation than YOU
It's all of our responsibility to do these things on our own
And to spread the word so others have a roadmap to follow
Sadly, they don't teach this stuff in school (I'm working on changing that!)
It's all of our responsibility to do these things on our own
And to spread the word so others have a roadmap to follow
Sadly, they don't teach this stuff in school (I'm working on changing that!)