Things Happen. Be Flexible.

As cliché as it sounds, we should always expect the unexpected—especially with our expenses. Rather than getting discouraged when your financial goals are halted, be flexible instead. This is why it is important to have an emergency fund so your financial goals aren’t impacted by unplanned events. However, even if you have to deplete your entire emergency fund, the key is to remain calm and to stay the course. 

Your first priority is replenishing your emergency fund while making minimum required payments on any debt. Once your emergency fund is restored, then you can start aggressively tackling your financial goals again.

Remember the Process

It’s easy to get excited about financial goals in the beginning, but remember there is a process you should follow. For example, we recommend you build an emergency fund before you start aggressively paying off debt. Similarly, you shouldn’t focus on increasing investments if you haven’t paid off your consumer debt. Remember, building wealth is a long game. Know which financial stage you are in, be patient, and don’t feel the need to take short cuts. 

Don’t Set and Forget Everything

Automating your finances can take the stress out of managing money. I’m sure many of us would be late on our bills if we didn’t have automatic bill-pay set up. This doesn’t mean you should be laid back when monitoring your bank account and checking in on financial goals. Schedule regular times to review your budget and track progress on your financial goals. It is best to stay aware in case something needs adjusting or changing. 

Recommit to Yourself When Making Change

It is easy to reassess where our financial goals need changing, but recommiting is a mental decision that requires focus and persistence. If we seem to be ahead of our financial goals we might give ourselves some slack and spend more than we usually do. If we tend to get behind on financial goals it’s easy to lose motivation and give up. Whichever boat you are in, always make the mental decision to stop and recommit whenever there is change. 

Workplace Money Coach Encouragement

I know first-hand that staying committed to your financial goals is a life-changing process. My wife and I spent almost 3-years paying off $30,000 in consumer debt and student loans. Now that the debt payments are gone, it has freed up over $800 in our monthly budget that we get to use for travel, sports and fitness for the whole family, saving for college for our three kids and investing for retirement. 

To stay the course, remember your “why” and keep visualizing what your life will look like when you accomplish your goals—you deserve the best life, recommit to making it your reality. If you want to learn more about how you can support your team on their financial journey, click here to learn more about our program.

• ⅓ of employees are distracted by finances at work
• ⅕ employees admitted to skipping work to deal with a financial problem
• 49% who say they are distracted by finances admitted to spending more than three hours dealing with or thinking about financial issues
• When asked what causes them the most stress in their lives, more employees say financial matters than those who answer with any other life stressor combined. (this included work, relationships, health concerns, and other).

These are just a few of the many. The real question is how do you know if your employees are stressed about finances at work? If they are, do they even want a financial wellness program? Going up to an employee and asking yourself seems too close for comfort. The best way to gauge honest and anonymous responses from your team is through a survey. 

Financial Wellness Survey Questions

We understand that with surveys, questions can be misunderstood and answers could be inaccurate. However, these are five questions you can ask your team that will give you the most accurate results:

1.On a scale of 1 to 5, how do you feel about your current financial situation? 1 = Highly stressed/unwell 5 = No stress/happy with finances.

1     2     3     4     5

2. Which of the following would motivate you to engage with a financial wellness program?

____ Ability to access program on a smartphone

____ Ability to track progress

____ Fun challenges – like a monthly challenge

____ Financial incentives – cash or cash equivalents

____ Email/text message reminders to participate

____ Interactive content and gamification

____ Non-monetary incentives (e.g., points, badges, recognition)

____ Paid time off

____ Personalized information, strategies, and recommendations

____ Providing clear roadmaps for achieving financial goals

____ Other ________________________

3. Put a checkmark next to your top financial concern.

____ Not having enough emergency savings for unexpected expenses

____ Not being able to retire when I want to

____ Not being able to meet monthly expenses

____ Not being able to keep up with my debts

____ Losing my home

____ Not being able to pay for college

____ Other _______________________

4. I want to learn more about:

___ Retirement Investing    ___ Student Loan Payment Plans ___ Budgeting Tools

___ Saving Strategies ___ Debt payoff plans ___ Passive Income Streams

___ Home buying ___ Pre-college Planning ___ Building wealth

___ Family Finances ___ Estate Planning ___ Minimizing Taxes

___ Improving  Credit Score ___ Career Development ___ Other ____________

5. Which media formats do you prefer to receive financial wellness communications and content? (choose top three)

____ Email

____ In-person group sessions

____ In-person individual sessions

____ Individual telephonic sessions

____ Mobile apps

____ Online group sessions

____ Online individual sessions

____ Paper-based materials or worksheets

____ Text messages

Seek Financial Programs that Your Team Needs

After asking your employees these questions, review the data and identify patterns. Does every one desire team building activities? Are some more comfortable with in-person programs than online? Then, and start seeking for financial wellness programs that cater to your team. 

Ready for the Next Step to Serve Your Team?

If you want to learn some more survey questions to ask, you can, here is a PDF printable survey with five added questions. Using this survey will have the largest impact in understanding your team. 

Already know what your team needs? Then you should learn more about our Living Paycheck to Purpose program. We go beyond the basic PowerPoints. Instead, we build the foundations they need through small-group discussions and one-on-one coaching to empower their financial lives. You can schedule a call to learn more about our program so we can best serve you.

If you are in crisis mode, rehabilitating a bad credit history or facing bankruptcy, there are credit counseling agencies. They help with loan consolidation, debt payment plans, and basic legal advice. 

If you have expendable income, there are financial advisors. They assist with investing your money, purchasing annuities and protecting your nest egg with insurance products. 

For the rest of us, and I dare say, the large majority of us in the middle, there is a growing body of financial coaching professionals that can help you:

• Better understand your money behaviors
• Learn the ins and outs of core money management  principles
• Create a custom plan to reach your financial goals
• Provide tangible resources
• Provide you with motivation and accountability to stay on track. 
• Analyze your spending habits and create cash flow plans

13 Ways Our Financial Coaches Have Empowered Employees

To give you a taste of how a financial coach can assist your employees, here are real-life projects our Workplace Money Coaches worked on over the last month:

1. Restructured an employee’s budget after a move to stay focused on financial goals.
2. Reviewed an employee’s credit report to create a repayment plan and re-establish good credit. 
3. Discussed pros and cons of choosing the best path for retirement savings using CDs, IRAs, 401k vs paying off their home.
4. Used PowerPay.org tool to show an employee how to decide on the best debt payment strategy and significantly shorten their pay off schedule
5. Supported an employee with prioritizing three competing  financial goals:
   • Paying off credit card debt
   • Saving for retirement 
   • Start spouse’s small business
6. Encouraged an employee to create a savings plan with spouse to save for their first home and brainstormed ways to maintain current savings after transitioning to a lower-paying job.
7. Taught an employee about employer’s tuition reimbursement program as possible avenue for accomplishing life goal of earning a college degree. 
8. Created plan with an employee to best use a tax return to reach financial goals. Encouraged her to use the Six Simple Steps as a guide to prioritize emergency fund savings and paying off debt. 
9. Celebrated with an employee who paid their bills on time and put money into savings for the first time in years. 
10. Discussed ways to increase income including a plan to meet with supervisor for a raise based on experience and recent skills training. 
11. Provided analysis for an employee’s chronic spending to show how quickly they could reach financial goals over the next decade if they changed spending habits. 
12. Provided resources for debt management plans with reputable credit counseling companies and educated on credit scams.
13. Created a two-year timeline for employee to purchase their first home by:
    •  Increasing credit score
    • Working a second job to pay off debt
    • Saving for a down payment 

The Power of Personalized Approach

Our one-on-one financial coaching has strongly impacted how employees are reaching financial goals. Each individual has setbacks specific to them. The best way to optimize financial success is through a personalized approach. To discover more about how one-on-one coaching, coupled with our Living Paycheck to Purpose program, can help your employees thrive in their financial lives, click here.

I watched my mom save what little she could and made sure all the bills were paid on time. Mom did not like owing anyone money and never took out debt. Till this day, it’s something I admire about her. My dad would fixed cars on the side to help with the expenses. I remember him teaching me and my sister how to sand the rust and put Bondo on vehicles. It was interesting.

I learned how to save by watching my mom. When I got my first job at age 16, I opened my first savings account which was exciting. When we moved to Florida, I saved up for my first car and purchased it at age 18 for $800. I felt so grown up. When my husband and I married at 21 years of age, I was excited when we saved our first $400. I remember running to the kitchen showing my mom the bank receipt looking for her approval. It meant the world to me that she knew I knew how to save money too.

My husband and I didn’t talk about financial, career or family goals. We lived one day at a time. Although saving money was “fun” it was not a priority. We wanted to furnish our first apartment and could only do so if we had a credit card because we didn’t have enough money to purchase furniture. We applied for our first credit card and then the pre-approved credit cards began coming in. We thought it was the best thing in the world because we could buy what we wanted and pay for it later.

We had our first child a year after marriage. We were in the process of trying to purchase a home. I remember being stressed because we didn’t have the money needed for the down payment. We couldn’t afford for me to take maternity leave, something I’ve always regretted, due to working for the down payment. It was a stressful time. We ended up not moving forward on the house, but I lost that time with my firstborn.

For the next 10 years, we racked up unnecessary credit card debt. When we decided once again to try and purchase a home, we were hit with the reality that we didn’t qualify due to the amount of debt we had incurred that was in collections by that point. We began to slowly pay off debt so we could afford to purchase our first home which we did in 2003. We worked hard and cleared our debt, my husband had a great job with great income and I was able to go back to school and stay home with our second child.

Everything was great until we realized we still couldn’t buy things we wanted to furnish the home. We didn’t learn how to save for what we needed or wanted. The credit card cycle began once again. My husband changed careers and was bringing in about half of what he was making before. We were stressed. Needless to say, there was a lot of tension when it came to talking about money. Nothing we did seemed to work. Our finances were a mess. After five years, we lost our home. We tried to rent, but couldn’t afford it on one salary and moved in with my parents.

Around this time my son was already starting pre-K and I was ready to return to work. Through our church, we heard about Financial Peace University and decided we NEEDED to do this. Immediately we began budgeting and taking control of our money. It completely changed our lives for the better. We learned how to communicate about money. We put together a plan and paid off our debt. We budget every month, do not own credit cards, and we pay cash for what we want. We love spending time with family and going on vacations. We cash flow everything. It’s the best feeling in the world.

I know the frustration of having debt early in my marriage. Learning how to take control of our finances turned things around for us. I am passionate about educating families on how to take control of their finances. I want to let them know they do not need to get into debt to enjoy life.

There’s No Wrong or Right Way—Just a Cost

Instead of spending money a wrong or right way, there’s simply an opportunity cost. If you’ve taken Microeconomics in college, you might be familiar with this term. Nonetheless, it’s still a simple concept. Here’s the official definition for you:

“The loss of potential gain from other alternatives when one alternative is chosen”

There are different gains, or opportunities, presented to you when deciding on a purchase. It’s up to you, the buyer, on which purchase creates the most value, opportunity, and or lasting joy in your life.

For example, I drive a used car that was paid in cash. The kind of car with chipped paint and faded headlights from the early 2000s. Monthly payments I would have spent towards a new car is used for family travel instead. Why? Because I weighed my opportunity cost.

I compared the gain of traveling with family versus driving in a new $400 per month Ford Mustang. Don’t get me wrong I’d love a vehicle upgrade. But the Mustang would only be exciting for about two weeks tops. The trips I’ve taken with my family, however, are invaluable.

How to Weigh Opportunity Costs

When you have the option to make a large purchase consider these examples:

• Renovating your kitchen vs. Putting money in your child’s college fund
• Purchasing an Apple watch vs. Having a family outing
• Making monthly payments on a car vs. Investing in your retirement
• Purchasing a nice wardrobe vs. Treating your spouse to a special date
• Putting a bonus towards a TV vs. Putting a bonus towards emergency savings

Understanding where your money could be going is a great way to determine if you’re getting the most opportunity. Notice the pattern? I placed materialistic and experiential purchases side by side.

Based on a 2012 Social Cognitions Study at Cornell University, research shows:

• More people are likely to regret a material purchase (car, phone, clothes) and
• More people are likely to regret not making an experiential purchase (a family vacation, an out-of-state trip, an investment)

Treating yourself to nice things isn’t bad. In fact, you should. However, every time you decide to put money towards something that truly matters in your life, like your family and your future, buyer’s remorse is less likely to knock at your door.

By putting money into savings and investments especially, you are purchasing equity in financial freedom. It increases your ability to live your best life stress-free the way you always dreamed you would. But it must start by weighing your costs.

Put it Into Practice

If you need practical help putting opportunity costs into practice, click here for the Spreadsheet that Could Change Your Life. This is a quick guide to help you discover how much your money would be worth in 10 years if invested rather than spent on other things. It’s a great (and eye-opening) reminder that we should all be diligently weighing costs to invest in our futures!

My first experience with money was my parents telling me to “save for college.”  My parents didn’t go to college, but they wanted me to. So every dollar that I earned/received growing up went into savings account for college.  “Save for College” was a mantra in our house. Most everything I had received from cutting lawns, delivering newspapers, babysitting, caddying, shining shoes, parking cars, and even my first communion money went into the bank.  My parents’ efforts paid off. I graduated from the University of Wisconsin without having to take out any student loans.

Unfortunately, no one taught me how to use and/or avoid credit cards. College students are heavily marketed to by credit card companies and I was no exception.  I would receive offers for credit cards in the mail every single week.

I love music, especially 80s music.  I went to college back in the day when MTV still played music videos.  Streaming music wasn’t a thing yet and CDs were the best option for collecting music.  Thanks to my newly acquired credit cards, I was able to buy a five-disc carousel CD player and close to 500 CDs before I graduated.  I didn’t have any student loan debt, but I graduated with several thousands of dollars in credit card debt with no idea how to pay it off.

I guess you could say that my wife and I fell in love with each other at first sight.  We were engaged for less than 4 months and married less than 11 months after the day we met.  We were a few years out of college, advancing in our careers, and were making more money than we ever had.  Somehow, we didn’t always have the money to pay all the bills at the end of the month. We were increasing our spending faster than our income.  We worked so hard. We felt that we deserved it.

We used a bonus that I received as a down payment on a house.  Just one month after moving into our house, my wife was pregnant with our first child.  It was a very exciting time. We were looking forward to being parents and building a family.

One night, my wife and I were sitting on the couch talking.  She turned to me and said that she “wanted to stay home and raise our son.”  

That is when our financial reality hit us in the face.  We couldn’t afford to live on one income. We were spending more than we were making with two incomes.  We just bought a house.  We had two car payments. We financed the furniture and a tv for the house.  We had credit card debt.

My wife was crying and had tears running down her cheeks.  I felt like I was a failure because I couldn’t provide everything that my wife wanted. We were both hurting and felt hopeless about our situation.  We were living well beyond our means and now our debt was setting our priorities for us. Something had to change.

So we got on a plan, worked hard, and made some massive shifts.  And 3 years later, we went from putting things on our credit cards to survive and barely getting by, to my wife being able to quit her job after our daughter was born.  Over the years, we continued to modify our plan so that we could live a financial life that aligned with our goals and dreams. Today, we live in a home that is paid off. We pay cash for our cars.  We have no credit card debt. We enjoy traveling and spending time as a family.

In our free time, my wife and I enjoy distance bicycling and support several charities by regularly participating in charity bicycle rides.  Last year, we biked from Prague to Vienna. We plan to take more international bicycle tours in the future. When we retire, we look forward to driving across the country in our convertible to visit and camp in most U.S. National Parks.

I believe that there is a real lack of financial education in this country.  I became a financial coach to help others avoid the financial pitfalls that I endured so that they can align their spending and saving habits with their goals and dreams.

As the father of twelve-year-old twins and a ten-year-old, I’m eager to prepare their futures for success. We have approached teaching our kids financial education the same way we approach most of our parenting: a little bit of research, a sprinkle of common sense and a whole lot of “give it a try and adjust as we go.”

I thought it would be fun to share how my wife and I are preparing our kids for managing money so you can keep this in mind when you’re ready to take that step with your children.

For starters, I believe that setting a good example of what smart money management can achieve will leave the biggest lasting impression. My wife and I communicate openly with our children about our financial goals and try to emphasize how living frugally allows us to take great family vacations without worrying about money on a day-to-day basis.

But here are four key areas we focus on so our kids can start building a smart and healthy relationship with money:

Allowance

There’s always been a debate on how to handle an allowance. Some parents believe in giving their kids a weekly stipend. Others implement an allowance to teach their children work ethic and pay when chores are complete. Studies support both sides of this argument, so what should you do?

We’ve taken a hybrid approach. Our kids get a set allowance each week and can earn additional cash when completing their chores and responsibilities without being asked like:

• Cleaning personal items around the house
• Doing set chores when they get home from school
• Being ready to walk out of the house in the morning when mom and dad leave for work

The more they follow these rules, the more money hits their accounts at the end of the week.

Is it working? Kind of.

It’s not a perfect system.

We have to remind our kids to do chores…

A lot.

We find socks everywhere and occasionally crack the whip in the morning. But learning responsibility and work ethic takes time. We believe we’re on the right track.

Cashless System

My wife and I hardly handle cash since using the envelope budgeting system over a decade ago to get out of debt. I believe the world will be cashless by the time our kids are grown so we’ve opted for a digital banking system.

Mom and Dad are “the bank” by using a simple Excel spreadsheet. At our weekly family meetings, we review how each child completed chores and deposit the appropriate amount. We buy everything on Amazon, so we subtract the amount from their bank account towards an online payment and have enjoyed the simplicity of this system.

Budgeting

We keep budgeting simple. We make sure our children know to live within their means, discuss when we need to save or when an unexpected cost hits.

We also review our calendar by discussing any upcoming expenses for the week. We hope to build this pre-planning weekly as a fundamental for successful budgeting.

Investing

This is new in our household, so we are keeping it simple. Our children have UTMA accounts, custodial investment accounts, that we manage until they’re 21.

We teach our kids about investing by explaining what it means to own company shares. Our kids lit up when they found out they were part owners of Apple, Target, Verizon, and other familiar companies.

Next, we played with an investment calculator to teach compounding growth. I showed them if they put $10,000 into their investment accounts by age 18 and never add another penny, they could be millionaires by age 67.

We added incentive by offering to match any contributions to their UTMA accounts 100%. I am happy to report that both my ten and twelve-year-old daughters made their first UTMC account investments. My son bought a video game for his new Xbox instead…

The Final Verdict

Do these ideas work? I’ll let you know in about 15 years. What I do know is that our kids are exposed to important money knowledge and skills, discussing finances, and getting involved with how our family manages money.

What you are you doing, or have you done to successfully prepare your children for financial independence? Feel free to share experiences that didn’t work as well so the rest of us can be spared frustration and prolong the gray hairs a while longer!  

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“Our family grocery shops Saturday morning at 9:30 because by then they have marked down the soon-to-expire meat!  We can scoop up meat for 1/2 off or more!  Great deal!”

Michael Murphy
Raleigh, NC.
https://www.financialcoachingrdu.com

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“If you want to be more disciplined with your spending, start paying for your purchases exclusively with cash. Research has found that paying with cash is painful. However, the sting you experience when you and your money part ways can be a good thing.”

How might this help?  You may reduce your spending to avoid the sting. You’ll be forced to deal with your finances in real time, instead of spending ahead, on credit, for purchases you plan to balance and figure out later. Using cash can also release feelings of indebtedness that can subconsciously arise when purchases are made on credit. Lastly, the discipline that results from using cash can better attune and acquaint you with the experiences of having money and not having it. Both are necessary to cultivate a healthy relationship with your finances.

Melissa Mazard
Washington, DC
@letsmakemoneymatter

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“To help your kids learn that saving is a process, use a giant thermometer drawing like they do for fundraisers to track progress on some sort of family savings goal like a vacation. Put it on the fridge and let the kids fill it in as money is being added to this special fund.”

Kevin Maher
Boyton Beach, FL
www.kevinmconsulting.com

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“Be Honest with yourself when creating a budget – a budget is only as useful as its ability to be followed. If you underestimate your expenses it will be difficult to actually get a grasp of where you are financially and where you want to be. Account for all of your expenses even the ones that seem insignificant.”

Shari Evans, AFC
Monterey, CA
www.iTitheFirst.com

$$$

Have a budget date night with your spouse and discuss what your goals are for the next year. List the goals, decide how much you will need to achieve those goals, and how you will budget for them. This will help you understand which goals are a priority and help you to work together in achieving said goals.

Cyndia Rivera
Clermont, FL
www.simplybudgetfc.com

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“Let’s face it, nobody likes stressing over their finances. Do yourself a favor: make it EASY! Plan ahead, and bulk tasks together. Pay all of your bills in one sitting, and have a monthly budget check-in. The goal here is not to be agonizing over your money every day; keep on top of it, but don’t let it consume the rest of your life!”

Brittany Waters
Toronto, Canada
Website: www.readysetlifecoach.com

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“Set up a contingency for your normal budget. Decide what you want to do when you have additional income, either by percentage or by dollar amount. eg: If I have an extra $200 on my paycheck from working overtime, I’ll put 70% in savings and reward myself with 30% to spend. Or I’ll put 40% toward retirement, and 40% toward vacation savings, and 20% toward fun spending money. That way, when you have unexpected income, you aren’t tempted to blow it all on a new outfit or expensive night out.”

Heather Hebert
Grand Forks, North Dakota, USA
Email: heatherhebron@gmail.com

$$$

“Many times people who are “bad with money” are not really bad with money. Their problem is that they treat money like an inanimate object. Money is more about feelings and behavior than
“bad at math.” Your money feeds your family and allows memories to be made. SET a goal, DECIDE what to spend on, and FEEL the progress as you accomplish your financial dreams!”

Stephen Boice
North Carolina
Boice Financial Coaching
Website: boicefinancialcoaching.com

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“We love for couples to be in harmony with their finances. We suggest the “Honeydue” app so couples can be on the same page.”

Trudy Bedword
Florida
Website: www.consultfaith.com

$$$

“Instead of focusing on the money mistakes you’ve made in the past, forgive yourself, start a budget, and move forward one step at a time.”

Jacki Smith
North Carolina
Website: www.bigpicturebudget.com

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“It’s not about how much you make, it’s about how much you spend. Until one can gain control over their finances making more will not solve your financial problems.”

Mallory Watson
North Carolina
Email: mwatsonfinancialcoaching@gmail.com

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“Always check to see if you’re paying down debt the BEST way. For example, check to see if your bank allows bi-monthly payments towards your mortgage. Saves thousands!”

Stephanie Hill-Manuel
Dalton, Massachusetts
Email: stephanieshill@gmail.com

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“Married couples should live on one salary and save and invest the second salary to build wealth.”

Rita Oliver
Lewisville Tx
Website: http://ritaoliversos.com

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“Don’t struggle alone. Get on a team. Negotiate with creditors to lower your interest rates or balances. You’ll be surprised how easy it is.” 

Melody
Website: www.herdesignedlife.com

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To win with money, you need three things:

1. A Purpose – to remind you of what’s important
2. A Plan – to keep you on track
3. A Pal – to encourage you when it gets tough

Derick Kopp
Macon, Georgia
Website: https://m.facebook.com/KoppFinancialCoaching/

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“Get in the habit of paying yourself first! Even if you start saving small amounts. Set an amount and stick to it. This will train your mind to make saving money a priority and as your income increases, and/or your money management improves you’ll begin saving more and more.” 

Marvin Houston
Toledo, Oh
https://www.instagram.com/bosseconomics/

$$$

And one of my favorite money hacks:

“Determine how much money you need to live each month and have that amount directly deposited into your checking account with the balance of your paycheck going into savings. This way all raises, bonuses and overtime pay automatically go toward savings and/or your next financial goal effortlessly”
You have heard it first-hand from professionals that are assisting individuals all over the country get a handle on their finances. I hope these tips resonated with you and will be of assistance on your financial life journey. Please reach out to us if we can be of assistance to you.

Have a healthy and productive day!

Shane Robson-Smith, CPFC
The Workplace Money Coach
Tampa Bay, FL
www.workplacemoneycoach.com ]]> http://www.workplacemoneycoach.com/manage-your-money-like-a-millionaire/ Wed, 16 Jan 2019 12:04:33 +0000 http://www.workplacemoneycoach.com/?p=4681 I’ll bet you would be surprised by the simple money management habits that the majority of millionaire’s in America have lived by to achieve extreme financial success. And the great news is, you can easily start to develop these habits in your own life to reach your personal financial goals. Check out these five top habits of millionaires:

1. Millionaires Value Slow Growth Over Time

Rich people that struck oil with bold business moves or top CEOs making gazillion dollar bonuses will always attract headlines, but the reality is that most millionaires build wealth by investing conservatively over a long period of time. The average American that hit the net worth mark of $1,000,000 did so in their late 50s. They invested a small portion of their paychecks throughout their careers, built equity in a small business or grew real estate investments over decades.

2. Millionaires Live Below Their Means

The concept of building wealth is simple. The practice challenges most of us as seen by our large debt loads and often times, negative net worth. Americans that have achieved millionaire status understand that the key to success is spending less than you make and putting the difference into savings and investments. Too many of us live above our means leaving no money to pay off debt, build emergency savings and invest so that our money can start working for us.

3. Millionaires Don’t Buy What They Can’t Afford

Millionaires don’t carry debt. The interest paid on your debt erodes and, often times, negates the interest you are earning on the investments that are supposed to be helping you build wealth and prepare for retirement. Millionaires buy only the things they can afford and usually pay cash for these items. Only purchasing items that you can pay cash for is an excellent way to keep your spending in check.

4. Millionaires Surround Themselves With Like-minded Individuals

Are you surrounded by friends and family that come to you with their hands out because they haven’t learned how to manage their money? These people can destroy your ability to reach your financial goals and achieve financial success beyond your wildest dreams. Sustaining healthy financial habits requires living in a healthy and positive money management environment. This includes having a network of people in your life that share your values surrounding money and help you to achieve your goals. This starts with being on the same page as your spouse and extends out to the friends, family members and co-workers you choose to hang out with.

5. Millionaires Avoid “Lifestyle Creep”

Did you celebrate that last raise by purchasing a new car? There is a good chance that while your career took a step forward, your financial life took a step backward. Millionaires avoid upping their lifestyle every time they get a bump in income. Many millionaires drive used cars and live in the same home for 20+ years. They take the extra money in their paycheck and use it to supercharge their savings, increase their 401K contributions, pay down their home mortgage or pour it back into their business.

When I finished speaking with Steve about his venture as a DJ for hire, I could not help but think Steve had found the perfect side hustle.

• Demand for his services is typically after working hours and on weekends
• Pay for his services is very high, often $500 + per gig
• It is a passion of his and he says it doesn’t even feel like work
• He has no marketing expenses thanks to repeat business, Facebook and word-of-mouth advertising
• He uses the extra income toward his financial goals

Steve started deejaying when he found his paycheck at the time allowed him to make ends meet but left little else to go toward bigger things he wanted in life.

He started by playing friends’ house parties; got a few gigs; realized the income potential mixed with how much fun he was having and decided to make a real go at it.

Steve bought some inexpensive used equipment, built a free website and a Facebook page, found a guy on craigslist selling his entire music library for peanuts, joined a wedding planning networking group to pick up free advice and best practices from other professionals and he was off to the races. Once he finished deejaying a party, school dance or wedding, he would post photos to his Facebook page and new work kept coming his way.

After just a few years, Steve has built a client base that books him regularly for annual functions. He hosts 35 to 50 gigs a year (down from 70+ now that he has a young family). But the best part is…he uses this extra cash to take care of business in regards to his financial goals.

At first, Steve stashed away his side hustle earnings and saved up the down payment on his first home. Next, he and his wife renovated their home with deejaying money and now his extra income goes toward travel and play (my two favorite things!).

This is such a feel-good story for a financial coach like myself and a great example of someone that is using their skills and knowledge to take their financial life to the next level.

If you have a passion that you think you could turn into a side hustle that will allow you to attain the financial life you desire, I encourage you to get out there and make it a reality. Be resourceful and creative. Have fun! Be willing to come at your idea from different angles, and be relentless. That is why they call it “Hustling!”

If you are looking for a DJ for an upcoming event, contact Steve at:

kolumboevents@yahoo.com

www.kolumboevents.webstarts.com

www.facebook.com//kolumboevents

Thanks for your time. Learn more about how Workplace Money Coach helps your employees Connect Their Paychecks to Their Purpose at www.workplacemoneycoach.com.

Shane Robson-Smith, CPFC

Founder of Workplace Money Coach, Inc