Live your dreams now

If you are 55 or older, skip to #3

Dream.  Is it only what you do at night if you get enough sleep.  Is it what your children do and sometimes come snuggle in bed with you if they've had a bad one?  Well I am a dreamer, I love to look toward the future and not only see what lies ahead, but plan that path.  Now, it usually never goes the way I plan, and there are ALWAYS bumps in the road, but it usually ends up being a beautiful path.  So I have a lot of questions to help you with your dream, and get you on your road2more.

1. Do you ever think about how you want to live 5 years from now?  Do you want to raft the Colorado River in the bottom of the Grand Canyon  (I do!)?  Do you want a season pass to the local ski resort?  Do you want to road trip across the country and hit up all 50 states?  Do you want to create an amazing piece of art and have it hang in an art museum?  Do you want season tickets to your local NBA team?  If you could dream anything for yourself in the next 5 years - not your family - YOU - what would you dream?  Now write it down, and write at least 10 steps of how you can get there.  These need to be reasonable steps, not "win the lottery", or "be gifted a million dollars".  These are real steps such as: Call your local art gallery and see what it takes to be featured.  Price out art supplies at [Michaels/your favorite art supply store].  Decide on what you will paint, draw, sculpt, melt, burn - or any other medium.  you get the gist.  When you write everything down, even if it seems like a crazy idea - this is where your dreams will become a reality.  You will literally see your dreams on paper of  how to accomplish this in the next 5 years.  It is very possible.
2. How about the life you dream of 10 years from now?  Answer these questions, without the "but", or "I could never", just answer and write it down:  

• Do you wish to be living in the same location you are now?   Would you like to live in the same house?  Would you like to fix up your house?  What would make your living situation better than it is right now (or maybe it is great, and you can skip this question).  
• Write down your "dream job".  Where would you like to be career-wise, or do you wish to be your own business owner?  Write down at least 10 steps you can do to get there
• Will you have kids, or how old will your kids be 10 years from now?  
• What do you want your kids to know about you in 10 years?
• What kind of changes can you make now so that your kids will want speak to you in 10 years? (a lot of parents are having these issues with there teenagers right now)
• Will you children be adults?
• When you are their age 10 years from now, what is it that you wish you would have known.  Write them a letter now (since it is a lot more fresh on your mind), so you can teach them sooner than you knew, and give it to them 10 years from now.
• What type of relationship do you want with your children at this age?
• What type of relationship did you have with your parents at this age, and how can you improve so it is better?
• What type of money are you making?  
• Are you still in debt?  
• How much longer will you have on your mortgage, or will you be mortgage free?
• How much to you want to have in your retirement account (give an actual obtainable number not just "enough", "lots", or "millions")  If you need some help, Nerdwallet retirement calculator to the rescue!

3.  Okay now push it to retirement years (for me that's 30 years away).

List those dreams, list them loud and proud.  Now put a price tag next to all those things you'd love to do 65+.  Head to the Nerdwallet retirement calculator to see how much you will need to start putting away today to have your dreams at retirement.  It is possible.  A little planning a lot of execution can and will make you wealthy. 

This is your road2more.  You might be doing fine, and be so happy, but there is so much more out there!  Think of how amazing your retirement will be when you plan for it today!  Catch me @road2more in all platforms and tell my what dreams you are living!

How to Set Up you Retirement Account

Do you remember setting up your bank account?  We set up one a few years ago for our rental property, and it was so simple.  All of our kids were with us, and it took maybe 5 minutes at the most.  Well, you adult you, it's time to set up an investment account for your retirement!  Yay!  Many people hesitate setting up this account.  It is like that dog down the street that barks in the front yard, and all the kids run to the other side of the street to avoid this loud "mean" dog, but really he is so sweet, he just wants a pat on the head and some love!   So approach that dog who seems so loud and scary, and give him a nice scratch on the head, and I'm sure he'll slobber all over your face. It's the same with investments - exactly (minus the dog drool).

Even though investing seems scary, risky, and just not what you are interested in, just like that dog with the mean bark, I'll get you to where you will like it enough to want to keep tabs on things and give that dog a snuggle!  In order to set up your retirement account, you'll need to find that big scary brokerage firm you like best.  Nerdwallet has a great list of their top firms for 2020.  I've only seen the interface on two of the companies platforms, and they were fairly comparable.  The nice thing about these brokerages, is if you really don't like their interface or platform, it is very easy to switch to a different firm - so you are not stuck with the one you initially choose.  

We personally have Fidelity for all our retirement accounts.  It was the brokerage my work deposited my 401(k) into, so we stuck with it, and it has worked really well for us.  Their interface is fairly straight forward, and it easy to buy and sell on their website.  I've also seen TD Ameritrade, and their website and interface is very easy to use.  I did see one review that said TD was the easiest to use of all the different brokerage firms.

So find that brokerage firm that is right for you, go to their website, and set up a retirement account.  You can choose between many different types, I would suggest a Roth IRA first since it is the easiest account to withdraw from if you need it.  You can add accounts, transfer accounts, and do all that good stuff right in their interface.  Once you get to this point and you have the money transferred over from your bank, you are ready to give that mean looking a dog a nice pat on the head.  You're not headed to vegas to gamble, and if you wanted to make that metaphor, you are the house, so your chances of winning are a whole lot more than going to Vegas!

Which Brokerage did you chose?  Find me @road2more on all platforms - I'd love to hear your experience!

Roth IRA

Before investing money, it is best practice to be completely out of credit card debt.  If you are someone else's investment, meaning you're paying 20% interest to a credit card company, its best you don't invest until you have these funds free.  Also, get a $1,000 emergency fund first. 

Investing.  That old dude Warren Buffet, is known for investing, right?  Yes, the billionaire investor.  He started investing at age 11 - and look where he is now.  I'm no hedge fund manager, nor a stock analyst, but I do have a nice looking retirement account.  When I was 26, fresh college graduate, my company I signed papers for my 401(k) that my company was going to contribute money to my retirement for free.  I really had no idea what a 401(k) was at this time, and my dad had to educate me on how awesome it was that my company was giving me free retirement money.  Now, I'm no longer working for that company, but I do continually contribute to a Roth IRA and I still have that nice 401(k) waiting for me 30+ years from now.  

What is a Roth IRA you ask?  The most versatile retirement account out there.

Benefits of a Roth IRA:

• This money grows tax free.  So you get your paycheck (that you paid taxes on), then you put this money in your Roth IRA.  When you are 65 and start using this money, you do not have to pay taxes on all that grew.  Most other retirement accounts you will pay taxes on when you start using it at 65. 
• Working minors can contribute -- I am for sure encouraging my kids put money in their Roth IRA when they start getting taxable income. ($1,000 initial investment and $16 per month for 50 years turns into 1 million dollars with 12% interest)
• You can withdraw from you contribution to this account at any time for anything penalty and tax free.  However, you are damaging your ability to grow money for your retirement since that money is no longer there.  I like to keep my retirement accounts strictly for retirement, so I definitely don't recommend withdrawing from this account at any time.
• You are able to withdraw the entire account penalty-free before the age of 59 for: purchase of a new home, birth/adoption expense, education expenses, medical expenses or health insurance.

Drawbacks of a Roth IRA:

• There is an income cap - it changes, so check here for most updated information from the IRS.  If you make over a certain amount of money in a year, you are unable to contribute.
• You can only contribute $6,000 per year, $7,000 if over 50.
• For those undocumented without a ITIN or some sort of government issued ID, it will be difficult to find a company willing to open an investing account for you.  I wasn't able to find anything online, but it will definitely be worth looking into.

Steps to set up a Roth IRA:

1. Go to any online brokerage firm page, Nerdwallet has a great summary of the top ones.  It's kinda like a bank, they don't differ too much - just depends on personal preference.  Just make sure there are not hidden fees associated with your investments.  And just like a bank - you can easily switch over your funds to another brokerage at any time.
2. You can immediately transfer funds into your investment account from your bank account.  They only accept cash.
3. Invest!  Now is the time to get educated!!  I'll cover types of investments in this (future) post.  It really isn't that complicated, but are definitely riskier than your sheltered bank account.

Off to the races!  Investing is a personal thing, and you will find what works best for you as far as what accounts, brokerage, and types of allocations work in your life.  You will also need to decide what kind of time you can dedicate to caring for these dollars.  Unless you are in the millions, it doesn't make sense to pay big bucks to financial investment advisor do the investing for you.  Warren Buffet, that billionaire investor, got his billions by  spending lots time studying from the best investors, and trying to see what worked for him.  He constantly monitors the stock market - to this day!

Best of luck in your investing, with continued education on what works best for you, you will be very successful, and profitable at investing!  

Contact me on all platforms @road2more and let me know if you have a Roth IRA, and what type of investments you like best!

Investments include risk of loss.  This website includes opinion only and should not taken as professional investment advice.  These recommendations do not guarantee any specific outcome or profit.

$1,000 in 30 days

If your life depended on it, could you save $1,000 this month?  Like your child/nephew was in the hospital and they were going to pull the plug, even though they were very much alive, would you figure out how to save that $1,000 to save them?  Definitely yes.  Well, it's not that dire, but lets do it anyways:

1. Subscriptions:
• Bank/Credit Card Accounts: Log into your profile(s) and look for subscriptions:
• Cancel: 
• Tech based: Microsoft Office (google docs is a free decent program if you don't use MSO very often), Adobe, Consumer Reports, etc.  Look at the list of things your local library offers for free that you can use instead of the occasional subscriptions (our local library offers consumer reports, rosetta stone etc. online for free)
• Suspend:
• Food Subscriptions like Blue Apron and HelloFresh.  You can live without these for 1 month, you did a few years ago.
• Gym Memberships: if you no longer go, cancel it (I realize if you are stuck in a contract this won't happen - lesson learned then?).  Or suspend it for a month without payment (you did it in quarantine, you can do it again for a month).  If it is online, suspend it for a month.  You can do it by yourself for 30 days.
• Cable: if you are on the dwindling list of people subscribed to cable, suspend it for a few months and see if you can live off of your streaming services.
• Eating out: this is just for a month.  You can do it, then go back to regular scheduled programming.  I mean your nephew needs this money to live.
• Streaming Services: Netflix, Hulu, AmazonPrimeVideo. ESPN, HBOMAX, Disney+ etc: these add up, especially if you have all of the above.  Youtube and your local library can keep you entertained for a month.  Even better, if you pay one year at a time, they will give you a discount.  Boom, more money for you.
• Online Gaming: just for a month.  I promise you or you/child/husband will still be alive at the end of the month if you suspend this - it's just 30 days.
• Magazines/Newspaper: if you pay monthly, suspend your subscription for a month.  These can also be cheaper buying yearly.
• Box Subscriptions: (BarkBox, Kiwico, JustFab, etc.) if it's a monthly paid item, suspend it!
• Email: You know those "Dollar sections" of stores that sell little knick knacks at right at the front of the store?  I always get suckered into buying one pair of cutsie socks (that's actually quite expensive for some really horrible socks for $1.00).  Same with those emails, they sucker you into buying those "60% off clearance" - I just opened one of those and looked at it, and went to the site - ugh...slight detour, I'm currently unsubscribing to the Children's Place emails.  Unsubscribe to all shopping subscriptions, and continue to do it when you make purchases - you know they will send them again!  
• Food - I am still subscribed to a chocolate company's email list.  Oh man, so yummy, and yes, I did buy when I didn't need to thanks to a "good deal" in one of their emails.
• Restaurants - even if they have great deals - you will guaranteed eat out more because you are have given permission for these companies to personally advertise to you!  
• Shopping - these companies follow what you buy and what you look at on their site.  If you searched for those earrings on their website, they will come back and ask if you wanted them, and guess what 50% of the time you will!  Again, you are letting them personally advertise to you.  Unsubscribe and delete!
• Other - museums, old electronic subscriptions, old memberships - unsubscribe from them all - you will not be the one to fall into their trap! 
2. Apps: So many companies allow you to shop and "save" through their apps.  You are allowing them to follow you, and advertise directly to your phone or tablet.  They'll entice you to buy those cozy socks you so wanted for your cold feet this morning.  DONT GIVE IN!  We LOVE instant gratification, the companies know it, so they keep you satisfied, but poor.
• Amazon - I deleted this reluctantly a few months ago, and I have spent much less $$ on things I didn't really need.  By the time it takes you to sign in, find the item you want, you'll usually decide you don't really need it.  Or better yet, you don't feel like signing in, so you'll buy it later.  What about the updates on your shipment you ask?  Does it really matter, I ask?  They guarantee it will get there, and if you are super worried, look it up online, you can find the same info you can on the app.
• Target/Walmart/Grocery Apps - You can do everything you do online that you can in an app.  What about the money saving coupons and deals in their app?  It saves me so much money  I can guarantee you'll spend more money because you will buy more things - spend the $1.00 more on the item in order to not spend $5.00 on average more through the app (cause you'll buy those other "good deals" too).
• Other apps - games - unless you pay for it, more ads, youtube
3. Grocery Store: Go through your pantry and empty out all that stuff you left for the mice - you're going to eat it instead this month.  
• Buy online:  most Kroger stores (Ralphs, Smiths etc.) and Walmart will let you pick up your stuff for free if you spend over $35.  This is not only a huge time saver, but allows you to not splurge buy (hello treats next to the check out line).
• Necessities: Only buy milk, bread, eggs, produce, meat and sauce (to put on your loads of pasta and rice you've been harboring in your pantry).
• Coffee and creamer:  No more Starbucks this month.  You need EVERY penny.  If you don't have a coffee maker/french press at home, it'll be cheaper to buy one then to 
• Splurge Food: skip over the candy, chocolate, crackers, cookies, cereals, sodas, and alcohol.  These are all extra -- don't worry they'll be back and you can sleep with them if you'd like - I'm sure they'd make a nice pillow.
4. Entertainment: You did this when in quarantine in 2020, so lets remember what you did for a month.  (as of right now most of these things are closed/restricted anyways, so...)
• Movie theater: Go to your local library and see what DVD's they have to offer that you haven't seen.  There are some weird movies to be found there, and they are free to borrow!  Many libraries also offer a FREE streaming movie service called Overdrive. while you're there get an audio book or two to keep you company.
• Going out with friends: Have you heard of TicTok?  Ya, lets do that again!  Home karaoke is also a new favorite!  Video and board games are also fun, just try to get those friends to keep it home, and beg them to bring snacks with since all you have is rice and eggs.
5. Taxes: fill this calculator from Nerdwallet to make sure you your withholding is correct.  This will reduce your tax return, but will put more money in your wallet each pay period.
6. Other:
• Gifts and presents: keep it to a minimum if it is a must buy.  Don't want to show up empty handed, but also don't want a crappy gift.
• Hair, Nails, Aesthetics: postpone till next month, or at least one week later.  This will give you a tiny bit extra to throw in a savings.
• Clothing: unless you only have one pair of shoes and you lost one of the two, wait a month.
• Cleaning supplies: for body and home (different supplies of course), if you have to buy, do it in small quantities - not the Costco or Sam's purchasing time right now.

Pull this extra money out of your bank account in cash or move it to it's nice new home in your bank account EVERY WEEK, until you have reached $1,000.  I have some people that need to put this in a whole different bank account so they're not tempted to touch it - great plan - then it really is emergency money.  This money is never to be invested, or put in a CD, or any other risky location.  If you are unable to open a bank account (a minor, or undocumented without an ITIN), get a really special envelope and stuff the cash somewhere safe - I personally really like in-between the mattress.  I do not suggest carrying this with you unless you worry about it being safe between the mattress.

According to CNBC, 41% of Americans could not cover a $1,000 emergency.  Well now you can.  Any other tips of ways to save $1,000?  Find me @road2more and let me know how you have saved $1,000.

3 things your parents wish they knew at 20

So your starting to make some money on this social media thing.  Your parents don't get why you are constantly dancing around, and have your phone filming it, even if you do make people happy and see it a a potential gig to launch your brand.  What is "your brand" they continue to ask you, and your answer doesn't satisfy their curiosity.  I'm not your parents, but I know the drill.  I'm 36, I have 3 kids under the age of 10, and I understand where you are coming from.  They do too, they were there once, but refuse to remember.  There are a few things they forgot to tell you too, so let me enlighten you:

1. Student loans: You may be thinking "well Joe Biden is going to help my parents out and excuse their loans, so I don't need to worry about taking all this money out for education".  Wrong.  Who knows what going to happen with that whole student loan thing.  If it does happen, doesn't mean it will happen again - you could be stuck in the rat race of paying them off till your 50, like mom and dad.
• Alternatives to students loans:
• Work at your school of choice - they could offer a tuition break (I got half tuition by working at the university I graduated from, saved me a boat load).  the nice thing about working is you get all that experience and a future employer will see your great work ethic (alright, now I'm turning into my parents...) 
• Community College  Having your bachelors is not necessary to make a living nowadays.  If education is on you of your parents "to do" list, chose to start at a community college where tuition is sometimes more than half than what it is at  a university.  Where you get your degree is becoming less important as well.  When you do go to a community college first, then transfer that little associates degree up to that University on the hill and get that bachelors.
• Scholarships: there are more people handing out free money for education for the most random things.  My mom works as a fundraiser for scholarships at a major university in Utah.  There are many semesters they can't find enough students for the amount of scholarships they have - for real.  Stop into your college and ask to talk to the person in charge of scholarships and fundraising, and they'd be happy to help you get set up to grab that extra money that no one is using.

1. Retirement: If you even know what social security is, it isn't going to help you, and most likely won't help their parents.  So, if you get this retirement thing started in your 20's, or even your teens, you could easily double or triple what your parents have now, and live the nice life in your 60's.  Opening a Roth is super easy - I show you how to do it here.  Start NOW even if you are in your 30's, then go tell your younger siblings to do it too.  See why:
• 15 years old: 
• $1,000 initial investment, and $16 a month =  1 MILLION $$ by age 65.  
• 20 years old:
• $1,000 initial investment and $37 a month = 1 MILLION $$ by age 65.
• 25 years old: 
• $1,000 initial investment and $75 a month = 1 MILLION $$ by age 65.  You can afford this, being more established and all.  Now go tell all those 15 year olds to get their money working for them.
• 30 years old:
• $1,000 initial investment and $145 a month = 1 MILLION $$ by age 65.  Yup, 15 years of not investing will cost you.  but not as much as in your 40's.  Get started NOW!
2. Investing*: Get started now, make some great choices, and you can make money off of your money.  Then go teach your parents who are too scared to let go of their green stuff.
• Real Estate: buy a house or a condo and charge your friends rent to live there.  They'll pay your mortgage so you can save for the next project.
• Stock Market:  The stock market is not just for retirement.  It's like gabling, but it's legal.  Sounds daunting, but I promise if you get your foot in the game right now (aka study it out, make some good choices), you could be the next Warren Buffet (old millionaire who made his fortune by investing starting at 11).  It is really simple - get yourself educated and throw your hat into the ring.
• Business: weather it is your own, or someone else's, this is a fun way to see your money grow.  There are lots of opportunities out there.  Make sure you do you do your homework about the company, brand or startup before you hand over your lunch money.

There are so many other options, but these should keep you busy for awhile.  There is always the risk of losing your money, but that's what can separate you from your friend, and even your parents.  The higher the risk, the greater the reward.  Best of luck.

*Investments include risk of loss.  This website includes opinion only and should not taken as professional investment advice.  These recommendations do not guarantee any specific outcome or profit.

"Helpdesk!"

Let me be your financial "helpdesk", let me show you why:

Teenage/College Years:

• My mom taught me how to balance a checkbook when I was a teenager, I think that when this all started.
• I was that crazy roommate who kept track of EVERY penny.  I was in charge of divvying up and paying the bills.  
• I had free tuition for the first 2 years. But I worked and paid for everything (but tuition) out of my own pocket.
• I transferred to a University, where tuition quadrupled, and was no longer free.  I worked my butt off  so I could graduate with no debt.  I worked nights and 16 hour dayshifts to have enough to pay out-of-pocket for my education.

Married Life:

• We got married and paid off my husband's student loans with the cash people gave us.  No money went to our pockets, but we started our marriage debt-free.
• We bought a house for $160,000 at the bottom of the 2008 housing crisis, flipped it and made $200,000. (over the span of 8 years)
• My husband went to school full-time,. with a few odd jobs and I supported him financially through his education.  He graduated with a $7,000 student loan that we paid off 3 months after he graduated.
• We did the Dave Ramsey FPU class in 2013, I helped moderate it.  We stuck with that budget for awhile, but wanted more.
• My friend talked us into signing up for something called 101 Financial in 2017, huge waste of money -- like we spent $3,900 with a guarantee to "pay off your house quick".  Biggest financial regret yet.  We did the math (it took many late nights to figure it out), and their systems did not get us ahead like they promised.
• There was no way I was going to spend another dime on a financial anything.  We ended up adapting the very basic spreadsheet from Financial 101 (not $3,900 worth) to use as our budgeting system. This Julie's create-your-own-budget is a mashup from the spreadsheet from 101 Financial, Dave Ramsey's advice, and things I've learned online and through friends.

Current Situation:

• We currently have a 30 year mortgage on our house.  
• We live debt free (other than the house).  We have a credit card, but pay it off every month.  
• We are saving for retirement, and our kids college education.  
• We save money each month, we budget each week.  
• My husband and I currently have a great financial working relationship - which is always a work in progress.

So with that run down, I do know how to get stuff done, and do it well.  I still have "financial fluctuations".  If you call it a failure or mistake you get the shame and guilt to go along with it.  I readjust to make it all work out, cause it always does.  I also know how it is to disagree financially with your partner, and how to figure out how to be on the same page.

Call me your helpdesk,  I know I can help you!

Refinance my mortgage? That's just for my parents...NOT!

Refinance sounds like something your dad would brag about and let you know how much money he was saving by refinancing his house -- at least that's why my dad told me this past summer.  He's 65, and just refinanced to a 20 year loan.  So he'll still have a mortgage in his 80's.

Do you own your home?  If so, you've joined the 64% of people in America that do own that paint, those windows, and that ugly smelly bathroom that the kids fight over NOT to use.  We bought our first house when we were 26.  It was 2010, I just graduated college, and got a "real job".  With a 401(k), and salary kinda real job.  So to go along with my freshly college graduated mindset, we needed a house.  So we found a lovely 1958 multilevel dated gem, along with a very dead tree and overgrown rose garden in the front yard.  Basically heaven.  On signing day, I was so sick of looking at papers, and I didn't understand any of them anyways.

Fast forward to 2015.  Our kitchen was falling apart.  It was semi updated in the 90's, but definitely needed a reno.  The oven was a smidge larger than an easy bake oven, only two burners worked on the stove, and many of the drawers were broken.  

So, how are we going to afford that?  I had since quit my "real job", and was pregnant with my second.  Mortgage interest rates were lower than they were in 2010, and my husband wanted a lower monthly payment.  Then I found out we could get extra cash back with a refinance?  What?  I can have a real oven, not my easy-bake-oven?  I was sold.  My husband was not keen on the idea of cash back - but I talked him into it, and for our situation it paid off.  See?

So to refinance, it is taking out a new loan to pay off another.  We owed $145,000 on that house in 2015.  We took out a loan for $15,000 to cover costs of kitchen reno and other house repairs.  So that between the $15,000 and ~$5,000 in closing costs, out new mortgage was $165,000 but with the same payment since the interest rates were lower.

By 2018 we found ourselves living in LA, and we didn't like having that house as a rental so we sold it.  Yes, we sold that house for a $200,000 profit.

The market is no longer a flipping market like it was back then, but it definitely could be time for you to refinance for a better rate (the rates are ridiculously low right now).  See the scenario below to see other awesome things that can happen with a refinance.

Are you Ready to You Refinance (Refi) Your Mortgage?

1. Do you have at least 15 years left on your mortgage?
2. Is your mortgage interest rate over 3.50% on a fixed rate loan?
3. Are you planning on staying in your house for at least 3-5 years?
4. Do you have a credit score at or above 700?
5. Is your house at or below market value?  See this (future) post before deciding this question.

If you said yes to ALL of these above, keep reading.  If no, keep working hard to get there!

Let me give you an example... 

I realize everyone will have different taxes and insurance numbers depending on their state/city they live in, but this is just a scenario to see what it could be.

• Lets say my original loan is:
• $250,000
• 30 year fixed mortgage
• 3.85%
• $170,000 left to pay off in 17 years 

• My current mortgage payment: $1472
• Principle: $622
• Interest: $550
• Escrow: $300 (Insurance: $826/year Taxes: $2750/year)

The best option, is to refinance to a 15 year loan at 2.5%, is what most people will say.  I think it depends.  Get this - the 15 year mortgage is the same original payment as above, but kick off TWO WHOLE YEARS without paying anything additional!!!!!!!  This is with the closing costs and the new sales taxes added in too.

So, what about the 30 year mortgage?  Alright here's the breakdown for that:

• Refi my loan:
• $175,843 ($170,000 + $5000 closing costs + .5% new sales tax)
• 30 year fixed mortgage
• 3.0% 

• My new mortgage payment: $1039
• Principle: $301
• Interest: $439
• Escrow: $300 (Insurance: $826/year Taxes: $2750/year)

The 30 year scenario is a savings of $433 per month!  But just remember, this tacks on a good 'ole 13 years to your mortgage.  

So here's the TRUTH with this scenario (and close to what it could be for you):  

• You will be debt-free in 15 years with no change to your current mortgage payment with the 15 year mortgage.  
• You will have extra cash in your pocket every month with the 30 year, but have 13 years added to your loan. 

In our current situation, we decided to buy our house with the 30 year option (we are in our mid 30's - second house we've bought).  We are saving the extra cash for a down payment on a rental property = more cash.  Unless you have definite plans to invest this extra cash, or grow it somehow, I highly suggest going the 15 year route to avoid the extra 13 years of loans.  The faster you can get to being debt free, the faster you will have the entire mortgage payment in your pocket.  This choice depends on the situation, and the person/people.  In the mean time I'll be thanking the Federal Reserve for these low rates!

Are you ready to see what a refi can do for you?  Check out this Refinancing Calculator to see if it makes financial sense to refinance your loan.  I'd love to help you decide if it is time to Refinance!  Contact me here or on my insta

**This was written December 2020, when refinance (refi) rates for a fixed mortgage are very low (around 3%).  If you are reading this at a different time, some of the advice may no longer apply.**

5 steps to get $150 TODAY!

Changes you make today can get you more money this month, and every month.  It's not the "no spend month", I'll never recommend that.  It's not the "stop spending at Starbucks", nor is it "go rob a bank".  All three of those things are ridiculous, okay maybe one more than others - but it's not going to help your life in any way if you do ANY of those things.  There are, however, 5 things you can do TODAY to get more $$ in your pocket.  I've done ALL of these in the past few months, and I'm saving over $1800 per year.  That $150 back in my pocket per month, yes please!

1.  Refinance your house, or change up your rent  

Refi rates are cheap, it only makes sense, 2.71% is the lowest it may ever be.  If your rate is above a 3.25%, it is worth looking into.  You cold be saving over $100 per month.  If you own your house and don't know what a refinance is, check out my (future) post here where I break down your mortgage statement and what it all means. We just bought a house, with a rate .75% lower than our old mortgage.  We are borrowing the SAME amount as our last mortgage and are playing $175 less each month.  Yes, it is worth it.

If you rent, talk to your manager about some things you can do around the complex or house to help lower your rent.  We were renting the past 3 years in LA, and I had friends that helped keep the complex clean, or do things for the manager, and were offered rent reduction.  We also had a rental, and the tenants took care of the yard work for rent reduction.  If they would have offered to do more, like fix up something, or repair broken shelves in the garage, I would have definitely offered reduced rent.  This doesn't work in all cases (some managers/owners are jerks), but it is worth asking.

2. Change your car insurance

If its been 6 months since you've gotten a quote for your car insurance, do it again!  It's free, and all online.  Especially if you have a violation on your record, check at least every 6 months.  The further out you are from the violation, the cheaper your insurance will be.  We are saving over $50 per month since we switched in November.  It is definitely worth it.  More money in my pocket!

3. Change your renters/homeowners insurance

Remember how I said we just bought a house?  Well we have already changed homeowners insurance.  We are only saving $75 per year, but that's $6 per month.  Plus it's usually a better deal when you bundle with car insurance.

4.  Switch your phone plan

If you are paying over $20 per month for your phone plan, you are paying too much.  We switched to Mint Mobile in October, and not only are we NOT going over on our data, we are now saving $35 per month.  Plus they are having a great deal right now, 3 months for free.  No brainer!

5.  Modify your health insurance

We switched to an HSA (Health Savings Account) last year, and we absolutely love it.  This is not for everyone, though.  If you have health concerns, a HSA may not work for you.  Check out my (future) post here on what an HSA is and isn't and how it can help save you money.  If you live in a big city, like LA or NYC, healthcare is pricy, and this may not be your best option.

Another reasonable option is switching to a "lower" plan.  So don't take the top comprehensive plan, look at what the other plans offer.  You may not be able to go to all of the practicing hospitals in your city, but you would still get exceptional healthcare.  This also keeps your money in your pocket.  Or if you choose a plan with a higher deductible, and lower premium, this could save you money per month.  See my (future) post here about how health coverage works.  The money you save per month, put away in an account for when you do need to use it for your deductible.  When you have that amount saved, that extra is in your pocket!

With any of these options, you can put more $$ back in your wallet.  If you need help doing it, contact me.  I'd be happy to help you out getting along on your road2more G's.