Monday Money Tip: Debt Pay-off Spectaculars

This Monday Money Tip is one of most talked about tips I deliver at a live event. Even several years later, people remember this tip. I hope it helps you too.

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Monday Money Tip: MINT App

In today’s Monday Money Tip, I share about one of my favorite money apps – Mint

It can be a great way for you to gain a better understanding of your financial behavior and the resulting performance of your financial decisions.

Take a couple of minutes to watch the tip (4 mins 39 secs):

Questions:

  • Have you tried out the Mint app?
  • How are you planning to use it to improve your financial results?

Wealthy vs. Broke Mentality

As a teacher who is passionate about helping people win with money, I am nearly always in “student mode.” One area I focus upon is the individual way people choose to approach their finances.

It is very apparent that a person’s “mentality” (synonyms: attitude, mindset, outlook) really affects their financial decision-making. I’m going to discuss this mentality in just a bit, but for now let’s compare the mentality of wealthy people versus broke people.

Again, these are my general observations. There are certainly individual cases where this is not true – for both the wealthy and the broke.

  1. Wealthy people focus on long-term results. Broke people focus on the short-term.
  2. Wealthy people are far more likely to prepare and follow a budget than those who are broke.
  3. Wealthy people value financial margin (savings/on-hand cash) more than those who are broke.
  4. Wealthy people tend to focus on the big picture (strategic approach) while broke people tend to focus on details (tactical approach).
  5. Wealthy people are more likely to say “I don’t know” or “That topic confused me, can you explain it another way?” when faced with challenging financial topics while broke people are more likely to make a financial decision without seeking to fully understand it.

If one wants to be wealthy, it should be helpful to ponder these observations and see what adjustments we could personally make in our own lives.

Why are wealthy people more focused on the long-term (#1) and the big picture (#4)? One reason is because they value margin (#3)! When you have saved a substantial amount of money (3 to 12 months of expenses), it is much easier to focus on the future. Conversely, when you have saved nothing, it is virtually impossible to think about the future. All energy must be spent on making it through this week and month!

Look at the five observations again. Which mentality do you tend to lean toward?

Do you have a “wealthy” mentality? Great – choose to live generously. Teach others so they can win with their money too.

Do you have a “broke” mentality? Most of us have been there before. Learn from the ones who have broken out. CHOOSE to think longer-term. CHOOSE to value financial margin. CHOOSE to prepare a budget each and every month. CHOOSE to seek wisdom when a financial topic confuses you.

I broke out a decade ago. My life has never been the same.

Monday Money Tip: Debt Freedom Date

Have you ever wanted to know how long it would take you to become debt free? It’s probably a lot sooner than you think!

In today’s Monday Money Tip, I explain how to calculate your Debt Freedom Date and share some techniques to achieving debt freedom more swiftly.

Watch the tip, and then read below for a few more tips on achieving debt freedom.

Debt Tips

  1. Stop signing up for more debt! If you can’t trust yourself with a credit card, then leave it at home. Or cut it up! No amount of “rewards” can overcome a credit card in the hand of an out-of-control spender.
  2. Use cash for impulsive spending categories. Items like groceries, restaurants, clothing, entertainment, and spending money are easy to overspend on. When you prepare your budget (you DO have a budget, right?) plan the amount you will spend on these impulsive categories. Once you are paid, pull the planned amount out in cash. Once the money is gone, refuse to spend any more on these categories until you are paid again.
  3. Establish accountability. Do you know anyone else who wants to eliminate all of their debt? Establish a relationship where you can hold each other accountable to your goal. There is nothing like regular accountability check-ups!

VIDEO LINK: https://www.youtube.com/watch?v=xbyAkBz_BU0

Monday Money Tip: Separate Business and Personal Accounts

One of the top mistakes that small business owners can make is to intermingle their business expenses with their personal accounts. In today’s edition of Monday Money Tip, I’ll be sharing the reasons why you should separate these accounts.

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