You know that friend in your life who is a truth teller, the one who will tell you that you need to walk away from that relationship or anything else that’s unpleasant? Well, same goes for your finances. You need a mentor, an accountability partner.

No doubt, this is a special someone. It could be a friend or relative, for example. You should feel comfortable telling them the real deal about your finances and respect their opinion.

So, how to choose?

Be selective: “If you are trying to cut down on your spending but your accountability partner loves to shop at the mall, you will be setting yourself up for failure,” says Steve Repak, a certified financial planner and author of “6 Week Money Challenge: For Your Personal Finances.” The bottom line: They should have their own finances in order.

What matters most? Knowledge counts. At the end of the day, you don’t need to hire an expert, but you do need someone who knows more than you, says Repak. Set expectations. Will the person be able to invest their time in you, to be able to help you set, review, and eventually reach your goals? Check their temperature. Not literally, but consider whether they can encourage and be critical. You need a coach who is good at both to succeed.

source via https://www.newsday.com/business/mone…

posted by Steve Repak
on November, 15
Source: Good Reads

If you’re looking for the cheapest way to pay down your high-interest credit card debt, we can help. When you have a good credit score, you have options, including a balance transfer credit card and an unsecured personal loan. Either one will help you consolidate your credit card debt and eventually become debt-free, but there are several factors you should consider while weighing a balance transfer vs. a personal loan.

Here are the top five things you should look at before deciding which type of financing to pursue.

1. Interest rates
This is the first, and probably most important, thing to look at when comparing credit cards and personal loans. With a 0% card offer, there’s an interest-free period up front, but generally rates after the introductory offer are higher than an interest rate on a personal loan, especially if you have good credit, says credit expert John Ulzheimer. However, there’s virtually no such thing as an interest-free personal loan. With good credit, you can find a personal loan with an interest rate in the single digits, though you’ll be pressed to find close to a 0% APR loan. The average interest rate for a personal loan ranges from 4.99% to 35.99%. The average credit card rate (after the 0% intro period is over) is a variable 17.45%.

How long the 0% interest period lasts is also a key consideration. Ask yourself what your total amount of debt is and what payment you’d have to make to pay it all off before your 0% interest period ends. Do the math. If you can afford the monthly payments to pay off your debt before interest kicks in, then a balance transfer card could be right for you. If it’s not, you may want to consider a personal loan.

2. Balance transfer fee
Many balance transfer offers include a one-time fee, which can add up to about 3% to 5% of the total debt transfer, says Thomas Nitzsche, a communications lead at Money Management International. For example, if you want to transfer $5,000 to a new card that charges 0% interest for 12 months, you might be hit with a fee of $150 to $250. That’s still cheaper than a 12-month personal loan with an 11% interest rate, which would lead you to pay $303 in interest.
At the end of the day, you want to find the loan transfer option that lets you pay the least amount of interest possible.

3. Origination fee
If you look to an online lender for a personal loan, know that many of them a charge loan origination fee, a one-time charge that is taken out of the total amount you receive. Banks and credit unions typically do not charge an origination fee on personal loans.

These fees can be as high as 6% of the loan. In other words, if you asked for a $5,000 loan to consolidate credit card debt, you might receive $4,700, with a $300 origination fee deducted from your balance. Origination fees are typically included in the loan’s annual percentage rate.

4. Fixed rates, payment schedule
Ulzheimer says he favors personal loans in this situation because the interest rate never changes and the loan has a fixed payoff date. With predictable payments, a personal loan can help with budgeting. If you’re not managing a credit card absolutely perfectly, then you may end up paying more for a longer time than you would have with a personal loan.

Steve Repak, a North Carolina-based CFP professional and author of “6 Week Money Challenge” says he favors a balance transfer because it’s more flexible than a personal loan. “What if you lose your job or what if something comes up, some type of financial emergency where you can’t make that $500 payment?” Repak says. “A 0% transfer might give you some flexibility even though it might cost you more. With a fixed payment, you’re kind of stuck with that.”

As you’re deciding how to consolidate debt, look at your situation to see which makes sense for you. If you need help with budgeting and want fixed payments, a personal loan is a good option. If you’d prefer flexibility, a balance transfer credit card may be right for you.

5. Credit score
Opening up a new card and transferring all your credit card balances to it might push the utilization ratio on that card close to 100%, which could hurt your credit score. Credit scoring models also place a negative emphasis on revolving debt, so if you keep transferring the debt from one card to another, your score could go down even more. On the other hand, taking out a personal loan to consolidate debt could lower your utilization rate to 0%. That could help your score. Though you aren’t really getting out of debt, just converting it, the credit scoring models don’t see it that way, so your credit score could rise.

source via https://www.bankrate.com/finance/debt…

posted by Steve Repak
on November, 15
Source: Good Reads

I’m happy to announce that my book, “6 Week Money Challenge: For Your Personal Finances”, made it to BookAuthority’s Best Personal Finance Books of All Time!

BookAuthority collects and ranks the best books in the world, and it is a great honor to get this kind of recognition. Thank you for all your support!

https://bookauthority.org/books/best-…

posted by Steve Repak
on August, 27
Source: Good Reads

June is peak wedding season, meaning there will be a lot of happy couples saying ‘I Do’ in the coming weeks. To make sure these couples stay happy and prevent them from falling victim to the leading cause of friction in marriages – money – consider gifting priceless financial planning tips and best practices instead of flatware or high-quality linens. Not only will this advice serve them now, it will help them better manage their finances in the future.

As I have always said, “Money cannot buy long term happiness, but it can provide you with choices.” Having more choices can help prevent financial friction. Below are some of my best financial planning tips to share with your soon-to-be-married child.

1. Live below your means – It doesn’t matter if you earn $1,000 a week or $10,000 a week: if you spend more that you earn, you will end up broke. The cornerstone of personal finances is to spend less money, so the trick is to be accountable for your spending – this means you need to track where, what and how much you are spending.

2. Don’t choose bigger, choose better – The bigger house, the brand-new car or the latest designer clothes may make you feel good about yourself in the short term, but they may not be the best choice for you financially in the long term. The key is to forget about keeping up with the Jones’ and to not be so concerned how others think about your material things. Love people, not things!

3. There is no such thing as good debt – I left the military after 12 years with over $32,000 of credit card debt, so I am speaking from experience – any type of debt will put you at risk and will cost you more than you realize. That said, there are three situations where you might assume some risk by acquiring debt: purchasing a home, higher education and starting a business. Before acquiring some debt, be sure to do your research first, and keep in mind that you should be earning interest on your money, not paying interest to someone else.

4. If you don’t see it, you won’t spend it – One of the best things you can do financially, newlywed or not, is to put money away for short term emergencies and for retirement (you need to do both). By having money deducted before it hits your checking account, you won’t ever miss it. Remember that the earlier you start saving and the more money you can put away now, the better off you’ll be in retirement. Make a pact with your spouse to start building an emergency fund and contributing more to your IRA and/or 401(k).

5. Those who give the most, have the most – I am not saying those who give the most have the most money, but I have found those who are most satisfied in their lives, are those who give to charities and volunteer. When you give your time and your money, it will help you develop discipline by teaching you to live on less. Not only will you learn more about you and your spouse’s financial situation, you will also be aware of others’ hardships which can help you stay focused on what’s truly important in your life.

6. It’s not what you KNOW, it’s what you DO that matters most – Indecision and procrastination can wreck you financially. As newlyweds, develop a financial plan and strict budget. If you know that you need to spend less, start tracking your spending. If you know you need to spend wisely, don’t be concerned with how big your neighbor’s house is or what type of car they drive. If you know that debt is bad, make a rule to never carry a balance on your credit cards. If you don’t put money away NOW for retirement, don’t expect to have any money for your retirement. You and your spouse are partners, so be each other’s support system by working together and holding each other accountable to stay on track with your financial goals.

Lastly, remember that all the money in the world won’t provide you with the true peace of a joyful life because you will always either a) worry about the money, or b) spend your entire life working yourself to death chasing something that will end up going to someone else anyway.

This wedding season remember the best gift may not be the crystal champagne flutes on the wedding registry – it may not even be on the wedding registry at all. Set your soon-to-be-married child up for success by providing them with the financial planning tips they need for a comfortable life.

Advise your child that one of the first things to do as newlyweds is to sit down with a CFP® professional to assess their current financial situation and map out a financial plan they can follow moving forward. Not only will it set them up for financial success, but they’ll be one less couple fighting about finances.

posted by Steve Repak
on June, 18
Source: Good Reads

John 15:13 (NLT) There is no greater love than to lay down one’s life for one’s friends.

Have you ever wished someone a Happy Memorial Day? Most people think of Memorial Day as the kick off to summer vacation season, but it should be a time when we remember the people who died while serving in our country’s armed forces. As a veteran who served in the Army, I truly understand the sacrifices that are made each and every day to protect the freedoms that most of us take for granted. I don’t want to come off as a Debbie Downer or to make anyone feel bad, but I just wanted to remind everyone what the true meaning of Memorial Day.

So how can we all use the spirit of Memorial Day and apply it to our finances? Memorial Day is all about sacrifice, and as with anything worth having, financial security comes at a cost. To build your own solid financial foundation consider how you can start making small sacrifices now.

Sacrifice of your time

Periodically you should reserve some time to set, evaluate or modify your financial goals. Most people spend more time planning for a vacation then they do for retirement and that is a recipe for disaster. At a minimum you should review your financial picture quarterly. Monthly is better but at least every three or four months you should make time for your money.

Sacrifice of your spending

The only way you will be able to save more is by spending less. A great way to find out how much you are spending is by keeping a spending journal. If you have never tried that before, I can tell you from personal experience that it works. People that are good with their money know what they are earning but more importantly they know exactly what they are spending each week. I recommend that at least once every six months you should track your spending for two to four weeks straight. After you have completed that task, take time to review exactly where, what, and how much you spent. Go through the list thoroughly and see where you can spend less and, even better, what expenses you can eliminate.

For most of us, it takes hard work, sacrifice and determination to reach our goals. We all need to acknowledge that our present and future financial conditions are important and understand that what you may be giving up now is worth the reward you will receive later. As my conclusion I want to once again remind you of the true meaning of Memorial Day. Remember our fallen soldier’s, sailor’s, airmen, and marine’s for the sacrifices they made so that we can enjoy our Memorial Day, however we choose to spend it.

posted by Steve Repak
on May, 13
Source: Good Reads

As an Army veteran who left the military after 12 years of service with over $32,000 of credit card debt, I understand the importance of financial planning. General George S. Patton famously said, “A good plan violently executed now, is better than a perfect plan next week.” If I had done a little planning, and executed on what might have been a slightly painful budget when I first joined the military, I wouldn’t have been left with so much credit card debt.

In honor or Military Saves week, I felt moved to write my experiences in the military, and how financial planning can benefit those who serve. Military Saves, which is a component of the nonprofit America Saves, motivates, supports, and encourages military families to save money, reduce debt, and build wealth. Military Saves is a partner in the Department of Defense’s Financial Readiness Campaign.

Where do you start?

Pull out a pen and paper! Apply your military mindset to your finances. For example, when you go on field maneuvers, you must move your personnel and equipment to different locations each night. You first identify where you are, where you need to be, and the steps you need to take to get there. Plan the same way when you make financial goals for yourself. Determine where you are starting from financially. What is your income versus your spending? Then figure out where you need to be. How much extra do you want to have in savings at the end of the month? Ask yourself what steps you need to take to get you there. What spending can you reduce or eliminate?

Put your plan in writing. Whether your mission is saving money, reducing your debt, or building your wealth, use the same military planning steps and apply them to your financial goals.

Where can you get help?

Consider team work: Together Everyone Achieves More. Just as in the military, we cannot fulfill the mission by ourselves – we must rely on others to develop a healthy financial life.

There are times when you need to ask for help. When you need help making a financial plan, the great news is that there are many people and organizations available. If you are in the Army, you can go to the ACS, Army Community Services. You could also sit down with a CERTIFIED FINANCIAL PLANNER™ professional to help you with your financial goals and objectives.

What you know is less important than what you do!

Be determined. Adopt a “War Fighting Spirit” As a soldier, marine, airman or sailor, come hell or high water, no matter the situation, you will do anything to accomplish the mission. That same type of determination needs to be applied to the financial battlefield. I had a lot of debt when I left the military. There were many times where things got difficult. I stuck with my plan, and truth be told, it wasn’t easy, but I finally got out of debt.

I want to tell you something else: If I was able to do it, I have no doubt that you can reach any of your financial goals. Start planning now, and execute those plans!

A CERTIFIED FINANCIAL PLANNER™ professional can help motivate you to develop a financial plan and stick to it.

article courtesy of: http://www.letsmakeaplan.org/blog/vie…

posted by Steve Repak
on February, 28
Source: Good Reads

When you think of a mid-life crisis, you might picture a middle-aged man or woman buying a fancy red car or suddenly sporting a different significant other. In mid-life, it’s natural to go through a period of self-reflection, questioning if you are on the correct path. Mid-life has its dangers, including the ones that come from having more money. If you have it, it’s easy to blow it, and some people are just one bad financial decision away from losing it all.

I’ve seen some of my wealthbuilders come dangerously close to mid-life mistakes, and a handful make some catastrophic errors. I’m not a psychologist, but I can tell you that some emotionally driven moves have nasty financial consequences. I’ve written down a handful of ideas based on what I’ve seen that might help people stay on an even keel.

1. Love people, not things

A red sports car, 20-foot yacht or Harley will eventually start collecting dust. People who are prudent with their finances do not allow their emotions to cloud their judgement when they make big purchases. Though in the short term you may feel good driving that expensive new vehicle, you’ll likely pay a greater price for that decision in the long run. The happiest clients I know spent less money on things that could never love them back and more time with people who did.

2. Focus less on the outside and more on the inside

Botox, liposuction and face lifts are definitely good for the pocketbooks of plastic surgeons, but they can be a strain on yours. I am not saying that you shouldn’t be concerned with your outer beauty, but be more concerned with your inner beauty. Being polite, kind, honest, loving, patient, and self-controlled doesn’t cost you a dime. Easier said than done, right? But if you won’t listen to me, consider Albert Einstein’s advice: “A calm and modest life brings more happiness than the pursuit of success combined with constant restlessness.”

3. Stay married. If you split, keep it civil.

Sometimes there are good reasons for a divorce. But if you think the decision comes without a cost, think again. The average cost of a litigated divorce is around $15,000. Also keep in mind that the process of divorce not only carries a high financial cost, but an emotional cost. So, if the spark is gone, don’t do what comes naturally in our consumer society by upgrading to a newer edition. I’ve seen couples in my practice helped by counseling. Consider investing in professional help, either for yourself or as a couple. If you are not happy with yourself, a new partner can’t do it for you.

4. Volunteer more

The people who are the most joyous and satisfied with their lives are not always the people who have the most stuff. Often, they are the biggest volunteers. When I look around at my mid-life and later clients, I see that the happiest ones are those who give a lot of their time. It doesn’t have to be formal, either. The little things that you do in other peoples’ lives can make a big difference. Mow your neighbor’s lawn, serve lunch at your local soup kitchen, or visit a stranger at a retirement home. When you volunteer, you will become aware of others’ misfortune, which will help you stay focused on what’s truly important in your life. Even better are the positive feelings you will experience afterwards. Volunteering might stretch your comfort zone, but consider trying it, even for just one day.

article courtesy of: http://www.letsmakeaplan.org/blog/vie…

posted by Steve Repak
on November, 21
Source: Good Reads

Luke 14:28 “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”

I have said that “more money doesn’t equal more money” but more money can definitely come from spending less. No matter how much you make, the key is to find ways to spend less so you can give more, save more, and pay down debt. These tips are some of my favorites that you can use to help you spend less.

Scan Grocery Receipts for Cash Back
We all have to eat which means we need to go grocery shopping. What you may not know is that there are several smartphone apps that will give you cash back on your grocery store purchases, such as Ibotta and Checkout 51. If you use the app Checkout 51 you just sign up for the weekly updates. Offers are updated every Thursday. Then you just go shopping and buy the products from any store. You will then take a photo of your receipt to redeem your offer and once you reach $20 in savings, Checkout 51 will mail you a check. It is just that easy!

Zip Your Pants
If you have a son, I imagine you had to remind him at least once or twice to zip his pants. Just as important as making sure your pants are zipped when leaving the house is making sure they are zipped before washing them, especially jeans. Garments that have metal zippers are like miniature chainsaws, tearing up and ruining other expensive clothing in the washer and dryer. Take a few extra seconds to zip up before dropping your garment into the washer to help prolong the life of all your clothes.

Invest in Vinegar
Investing in vinegar is actually three tips in one! Tip #1. You can make an inexpensive, all-purpose household cleaner by loosely filling a heat-resistant glass container with leftover citrus peels (think lemons, oranges, limes or grapefruit) and adding equal parts boiling water and white vinegar. Cover the mixture and let it sit for a week before straining it into spray bottles. Tip#2. Trade your bleach for vinegar! Using distilled white vinegar whitens, freshens, and softens fabrics. All you need to do is to add 1/2 to 1 cup of distilled white vinegar to your washing machine along with your regular laundry detergent. I know what you are thinking, vinegar has a strong smell. Don’t worry about the vinegar scent- it will dissipate after drying. Additionally, instead of buying stain removers you can use vinegar on spot stains and collar and underarm stains. I learned this tip back in my old Army days! Tip#3. Replace your weed killer with vinegar. Not only will it be safer by having one less poisonous item around the house, but it is also much cheaper and just as effective at killing weeds. Vinegar is highly acidic and works much the same way as conventional weed killers work by destroying the roots of the weeds so they wither and die.

Choose Generic over Name Brand
Everyone knows that generic or store-brand products are cheaper than name brands, but you might now realize just how much cheaper. According to Consumer Reports, you can about 25 percent less when you buy store brands. For those who have kids that are picky eaters you can buy the name brand cereal and refill the box with generic once it’s eaten and I bet they won’t be able to taste the difference!

Get a Free Apple, Onion, or Potato
When buying pre-bagged produce — like a 10-pound bag of oranges or potatoes, always weigh the bags before selecting the one you want to purchase. The weight marked on the bag is the minimum required by law, and some bags will likely weigh more, even though they cost the same. If it’s free, it’s for me!

article courtesy of: https://thelifeofasinglemom.com/singl…

posted by Steve Repak
on October, 28
Source: Good Reads

1 Thessalonians 4:12 ESV “So that you may walk properly before outsiders and be dependent on no one.”

What are the reason you labor, or should I say why do you work? You are probably thinking you work in order to earn money so you can feed your family, pay for a place to live, pay for gas so you can go to work, etc… Have you ever thought past your immediate needs and thought longer term? For example, do you plan to work forever? When I was young and naïve, I honestly didn’t think about retirement because I thought I would be dead by then so why even plan for something if I am probably not going to be around for it.

Since I am older and hopefully a little wiser, my views have definitely changed regarding wanting to work forever. For example I understand that retirement isn’t an if question, it is a when question. So if I choose not to work forever, there are some things I need to do now so I don’t have too. I have three things for you to consider doing so you may not have to work forever, unless you really want to!

1. Setting the goal of being debt free
Having little or no debt at retirement is extremely important because the less money that is going out, means the less money going out, that simple! For example if you have a $2,500 a month mortgage payment, a $350, car payment and paying $150 towards a credit card each month, that comes out to $36,000 a year or $3,000 every month you need to come up with. If you are working it may not be a big deal but if you are living on a fixed income, you may not have any money left over for anything else.

2. A larger stash in cash
Most money pro’s recommend having at least 3-6 months of your living expenses in a FDIC- insured savings or FDIC-insured money market account as an example, but keep in mind that the 3-6 months are for people that are working. What if you are going to retire? You may consider increasing that amount to at least 1-2 years of your post-retirement living expenses. The thought process for having at least 1 to 2 years is because if you need cash quickly and have to get it from your retirement funds, there could be extra taxes, fees, an or penalties and if the timing is bad and the market is down you would be violating the rule of buying low and selling high.

3. Understanding that inflation is a real risk
Food, housing, clothing, gas, etc. If you think a loaf of bread is expensive now, can you imagine how much more expensive it will be 20 or 30 years from now? I remember when I was a teenager and paid less than a dollar for a gallon of gas and a movie ticket was around $3.50. As you get older many things you pay for now may cost a lot more in the future which means you will need more money to pay for those things during retirement. The only way you can be ready for the risk of inflation is by putting more money away now.

As you celebrate this Labor Day, don’t forget what you are really working for, not just for in the now, but also for the time many years from now.

posted by Steve Repak
on August, 26
Source: Good Reads

There’s a time for everything; a time to weep and a time to laugh, a time to keep and a time to throw away, and there’s even a time to save and a time to splurge!

One secret to knowing when to splurge is when you have been saving. Our current consumer market, where low quality is offered for higher prices, makes it easier than you might think to save and splurge at the same time.

Here are four instances where it can be OK to splurge and treat yourself, but without breaking the bank!

1. When it’s time to eat. A butcher I once knew was commonly heard proclaiming that “good meat ain’t cheap, and cheap meat ain’t good.” Cut back on fast food for lunch every day, and, instead, pack your lunch. You can use the savings to treat yourself to quality produce at your local farmers’ market, or some yummy deli breads, meats and cheeses. If you love eating out, consider splurging on lunch at a fancy restaurant instead of eating there for dinner. The food will be just as good and shouldn’t cost you as much. Splurge on the meal and save on the drinks by ordering water and saying no to dessert. That enables you to buy the choicest steak or most delicious fish, if that’s what you love.

2. When it’s time for your morning coffee ritual. Consider saving money by not ordering your daily latte at your favorite coffee establishment. Splurge on high quality coffee in bulk and brew it at home yourself. Many grocery stores offer high-quality coffee. If you truly are daring, consider treating yourself by ordering gourmet coffee and espresso beans that come from high quality roasters that will ship fresh beans to your house. Consider: Getting high-quality beans delivered from Starbucks to your house for a year costs $288, versus the $960 you spend if you buy a $4 drink every day.

3. When it’s time for clothes shopping. Most people fall into one of two categories: People who like to shop for clothes and those who don’t. But the hard reality is that even if you don’t like shopping for clothes, you still need to do it, because you don’t want people looking at you funny when you leave the house. Instead of buying a large selection of cheap clothes, which need to be replaced quickly, splurge on a smaller collection of quality clothes that easily mix and match and will last for years. Save money by shopping at discount fashion retailers such as Nordstrom Rack or Saks Fifth Avenue OFF 5TH, and look for natural fabrics, reinforced seams and judge by your touch. Even better, you may consider buying gently worn quality clothing online at sites such as eBay or your local consignment shop.

4. When it’s time for vacation. Money can’t buy long term happiness, but it sure can buy a vacation. Go ahead and splurge a little on vacation, but consider saving a little money by vacationing off-season. If you research carefully, you can find some great getaway packages by traveling off-season. If you can’t vacation off-season, consider saving money by renting a condo or apartment instead of paying for a fancy resort room. If you want to save even more, consider vacationing with a larger group of family or friends. By spreading the cost among a few families, a condo, house, or cabin at your favorite beach, mountain or vacation spot can be a win-win situation for everyone. You work extremely hard for your money but I think it’s OK to splurge a little on family fun because the memories you will create will be priceless and lifelong!

This is an article I wrote for the CFP Board. Article courtesy of: http://www.letsmakeaplan.org/blog/vie…

posted by Steve Repak
on August, 10
Source: Good Reads