Happy April Fool's Day!

Happy April Fool's Day!

I started on April Fool’s Day to remember to keep my sense of humor.  I also did not know if this whole business plan would work.  I certainly did not know thirty years later how my life, my work, and MoneyPeace would evolve.  I am so grateful to all you readers, clients over the years and other planning professionals who appreciate my approach to money.

 

This week, I was reflecting on  MoneyPeace history as part of a registration form with a speaker’s bureau. This was such a gift!  I am appreciative of all the places I have been and of those people who responded to my work.  I was reminded that I love speaking and am ready to do more. 

I do not know where I will be in thirty years. For today, I want to continue to write, speak and spread MoneyPeace.  So, watch for more blogs, articles, email newsletters and videos.

What I Learned from My Irish Family

The roots of my Irish heritage and money are complicated. In Ireland, coins were used for centuries. Often the coins represented reigning kings. In the twelfth century, the British took over and ruled Ireland. This included their money, their banks, and systems, imposing the English system.

The Irish learned not to trust the banks or the money that was used for exchange during the time of the British rule. Though valid currency, the system was English, the language was English and there were so many restrictions on the natives, that many natives were leery of using their banks. These feelings ran deep and settled in many a family over the generations even in an independent country. 

The Republic of Ireland became independent in 1921, leaving six counties in the north still part of England. In 1927, the Republic issued their own currency. That currency changed with the advent of the Euro in 2002.

Some of my relatives emigrated in the 1920’s and would have had money in the US banks when they failed during the depression. They lost their hard earned money, so the feeling carried down through the ancestors about money and financial systems are complex.

My ancestors learned from their experiences. (Yours did too.) I learned many things from what they had to live through on both sides of the ocean. They were an industrious, practical bunch. Land and homeownership were key to success. Even generations later, feelings around money can be complicated because of a “rich” history of happenings. Sometimes what were their experiences, though no longer relevant to me, make it into family lore. Sorting this all out adds a bit of complexity to what I really need to learn.

My profession is about creating solid quality of life while living in peace around your money. Although knowledgeable on the facts and US rules on the money and tax system, I was taught that there is more to life than money alone.

This is what I learned from my family:

  • Help Others: There is always someone who is worse off than you.

  • Buy Quality: From clothes to cars to home goods, be sure you buy value.

  • Repair It: Do not go and buy new, which takes money and hard work. Fix it.

  • Get Educated: From vocations, academics or a lesson in cooking, learning is invaluable.

  • Enjoy Music and Dancing: They are a fun release – and fun matters.

  • Maintain Community: Connections improve the quality of your life as well as your neighborhood.

  • Buy the Best Health Insurance: One cannot put a price on health.

We all learn consciously and unconsciously from our families of origin. We take away the good and the unhealthy financial habits. This month, ponder your roots and learning. What have you learned?

Picked up not good financial habits? Adapt and adjust. As adults, we can choose what we want to change.

Do one thing to honor your ancestors. I will be donating to an Irish charity.

What will you do?  Cook up something traditional. Create a family gathering. Simply connect with a family member.

Whether you are Irish, Spanish, Italian, Mexican, Canadian, Greek, a mix or a pure bred American, we are all human and survived thanks to the strong good character of our ancestors. Celebrate one aspect of your history this month.

Here is a bit of Irish music by The Chieftains: Will You Go Lassie Go (aka Blooming Heather; aka Wild Mountain Thyme)

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This CFP Wishes for My Loved Ones

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Dear Loved Ones,

There are many questions you have asked me over the years. Despite the fact I cannot give specific advice without knowing one’s full situation, many of your questions required one simple step. 

I never know if you did them or not. I care and am concerned that you are in good hands financially. I prefer you avoid a financial situation that could be fixed with a bit of pre-planning, rather than scrambling after the fact.  

I seldom hear the follow up. I care. And because we are friends first, I am not the professional you work with, I do not ask. 

Today I am wondering if:

Your Retirement Beneficiaries are Correct: 

Longtime partners told me, “Oh yeah, we never changed those from family members. But our families know who to give it to.” By law, the money goes to immediate legal family. If they chose to then pass it on to a partner, there are potential taxes that may diminish those funds. I hope you have designated your partner by now.  

Life Insurance Beneficiaries Updated:

A young recently married couple told me, “We were so busy with our wedding planning and honeymoon, we never updated our life insurance and company benefits. This will go to our spouse automatically now that we are married, right?” No, no, no. You need to make the changes on your policies and with your company. Easy enough to do today. Get on it.

You Have an Estate Plan to Match Your Current Life:

Our lives constantly change: we move, we have children, our assets grow, we have grandchildren, we marry. Too people many make major shifts and leave their former will in place. They often forget or do not understand that you need a recent Power of Attorney for your finances and Health Care Proxy. I do hope after you made the move out of state, you followed up with a new estate plan in your state of residence. 

You Have Assigned A Guardian for Your Children:

This is designated in your estate plan. Otherwise, their guardian many be your next of kin or appointed by the court. A legal guardian is responsible for the health and financial care of a child until “legal majority” in the state of residence. Be Kind to your children. Create a will with your wishes and a lawyer to carry them out.

You have Left a Paper Trail. Or Digital Trail:

Being in good financial shape with an estate plan and well organized records is great. If no one can find them when you fall ill or pass on, then they are of little use to the people who need them most. I hope by now you have told someone how to find your paper trail, making it easier on your loved ones at a dire time. 

Leave behind a legacy of love.

This CFP Wishes for My Loved Ones

My Valentine:

1. Have a Well Done Estate Plan, Have Peace of Mind

2. Have Cash to Offset Stress of Life Events

3. Review Your Investments Every year.  

Life changes. Have that balance of stocks, bonds, growth and value investments. Create an estate plan. Keep a cash account. Then you can weather any movements in life or the stock market

Are You Cash Conscious?

Money is essential. What is often overlooked in the world of finance is money consciousness.

Money consciousness is primary in having sound money sense. Which leads to more cents of course! (I could not resist.)

A cornerstone of financial health is understanding money – where yours goes, how much money you make and what the basic rules are around money. With today’s focus on the digital economy, we lose focus on where our cash goes. There was an “old school” mentality that was born out of the depression where households put money into envelopes marking each spending category for the upcoming week or month. Touching the money and organizing it in this way gave individuals the value of cash consciousness. They had to understand where each dollar went.

Reverting to the ways of almost a century ago is unnecessary. But also bypassing the process by giving over your financial control to someone else is problematic. This sounds like the easy way, even the right way if you listen to the advertisements or some “experts.”

1. Are You Giving Your Power Away?

Being consciously aware of what is going on with our money can raise our vibration and increase our funds. Being unconscious has the opposite effect.

When you give your power to a program or an app, you are not necessarily aware of where your money is going in the moment; Rather, you are doing the math and looking at the result of your spending. The number detail may be important but most important is connecting with a deeper understanding of your financial picture and your reasons for spending.

The YouTube commercial I hate is about subscriptions. Rocket money app wants you to sign up and it will tell you how many monthly subscriptions you are paying for. Sure, it is quick and easy once you enter all your bank accounts and credit card numbers. Essentially, you share all your financial data with a large company to reveal your monthly subscriptions. (Can you say a “Security Breach” waiting to happen?)

The greater cost is giving away your consciousness. Without money consciousness, you are without a guidepost for your dreams and money.

2. Create a Long-term Self-Sustaining Plan

Want an easier, free way for long-term success? No big company was involved. Here are the steps:

1. Read your statements.

Sit down for an hour and review your bank and credit card statements. Identify your monthly expenses and subscriptions that you are paying for as separate categories. Some are necessary like utilities. Other are optional like music and streaming video.

2. Manage those subscriptions.

Set another hour aside. Take one subscription at a time. Ask yourself: Do you need it? Do you use it? Does it have an annual option? Then, pay annually. You may save some money. Best of all, you retain some control each time the subscription comes due, whether you chose to renew or not. The email or text message will be a reminder that you have the subscription and a trigger to ask yourself if you still want it and can afford it.

3. Choose one mode of payment for all your subscriptions.

By lumping your monthly subscriptions together onto one credit card or one checking account, you will always know what you are paying monthly or annually for subscriptions. The monthly payments will be clearly noted on that account’s statements. Step it up a level by dedicating a separate checking account and depositing the necessary funds for each month through a payroll automatically. (Most companies allow up to five different accounts to deposit to.)

Taking these steps commits you to real time accounting. You know how much you are spending on monthly subscriptions. Your spending on monthly subscriptions will be obvious at one glance at a statement. Only simple math is needed.

When you want another subscription, your newly designated subscription account is the lone one you will use for those payments. If it is an impulse subscription, you will know pretty quickly if you can afford it as your paycheck will have to be redistributed to fund this added monthly expense. Knowing you will have to take this extra step may even slow you down as commit with your click to another mindless monthly subscription. By creating this system, you will be in a better position to make decisions and handle your money consciously.

Money is meant to be saved, spent, and enjoyed. Without consciousness, none of those actions are truly peaceful; Nor a reliable source of your ability to make sound rational, well positioned financial choices.

Make 2024 the year you reposition yourself.

Be Cash Conscious.

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What are Annuities?

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Question: “I just got an inheritance and a financial person suggested I purchase an annuity with $90,000. We were going to expand our home. I do want to be smart and do something wise for the long term with the money. What is an annuity? Is it a good investment?”

Christine’s Answer:

Good for you for wanting to learn about money.  

First, the annuity answer. An annuity is an insurance contract. There are many types and forms from fixed annuities to variable annuities which have an investment component. They are backed up the insurance company that sells them. If this financial person only suggested an annuity, then they may only sell annuities. Annuity is a product with a large commission for the sellers typically. If an investment person does not offer you more options, they may not be working in your best interests. 

Expanding your home sounds like an option, but do you have a financial plan? Use that inheritance wisely by consulting an objective financial professional first. You can meet with them on an hourly basis and they can evaluate if you have a safety account, how to manage any debt you may have and plan for your future. They can also further explain annuities and other options to best serve you. To contact one that does not sell products reach out to the Garrett Planning Network.

Once you are more educated you can decide your next steps.  

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How Can I Stop Spending Money?

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How Can I Stop Spending Money?

My number one tip is to create a spending plan. Choose ahead of time how you will spend your monthly income or other incoming money. This is a better way to think about your money than a budget, which I find is a limiting mindset. 

Do not shop in person or online or social media binge when feeling emotionally upset. We spend more when we feel bad. We also are less discriminating and more apt to make impulsive purchases thinking they will improve our life. Survey: 48% Of Social Media Users Have Impulsively Purchased A Product Seen On Social Media | Bankrate

If you are shopping: 

When buying on-line, put what you want in the shopping cart, but do not buy it. Or in a store, ask them to hold it for you. Sleep on it. After 24 hours, if you still decide you need it or if it is a want, you can easily afford it, then go ahead, and buy it. If not add it to a shopping tab for future spending when you get that raise, bonus or financial gift.  

Unlink your credit and debit cards to your favorite spending sites. Yes, you can do this. But you may have to delete it from your laptop and phone too. One click is too easy for all of us. (Yes, me too.) 

Do not be seduced by the latest best product on YouTube, Instagram, or any social media. These are advertisements. Realize that the sellers are spending big money to tout their product. They are making their money back by selling something to you. Some of what they sell is image and an improved lifestyle. An improved life is an inside job and taking care of your finances is one way to make a better life for yourself. 

Cash Is A Treat, Don’t Let It Trick You

Money conjures up all sorts of preconceived notions for people. The subject can be emotionally loaded and money is one of the least talked about subjects in our society. Yet, money is simply how we barter and exchange our energy. In our fast moving society, we often move at such speed we make sloppy decisions.  

To make your life easier and be more attentive to your money, I offer seven tips, or “treats”, for you to not get tricked in the coming weeks and months:

1. Emotions should not rule. 

Money is tangible and important to our lives. With that in mind, we need to be sure our emotions are not distracting us from money. Attitudes about money influence behavior and can take the form of avoidance, impulse spending, over saving and more. Check in with your emotions but do not let them rule decisions. 

2. Use planning and understanding for your finances.

People tend to do the same thing they always do, including when it comes to money. If you do not review your spending or get quotes for services, even little amounts add up quickly. When you do, you may be surprised at what you spend. The Seemingly Small Money-Saving Habits That Add Up Over Time

3. Manage your money; Don’t let it manage you.

Study after study demonstrate that wealthy people are organized around their money. They have a plan for savings, investing and spending. Reevaluating their system helps them move forward in their financial life. The time invested up front to create the system pays back dividends over a lifetime. This includes how they manage money the “old-fashioned” way. Paper checks are dead. Cash is dying. Who still uses them? - The Washington Post 

Wealthier people and older people use the majority of paper checks. Are they wealthy because they are tracking their money more carefully? Consider trying it for yourself to find out. Autopay may not be the best answer to paying bills. Autopay Is Making Us Worse at Managing Credit-Card Bills - WSJ

4. Convenience is not always the financially smart approach.

Credit cards are great. Debit cards support our spending while not getting into debt. However, easy, may not be the best solution for all spending.  Discounts are often offered for those who pay cash because business have to pay fees on each and every transaction no matter how small. Want a Discount? Pay in Cash - WSJ These fees add up quickly especially for the Mom & Pop stores who operate on tight margins. Being a good customer may mean more than frequenting a store. Community minded may get you a discount and benefit small business owners. Carry a bit of cash on you. Why many business owners would love it if you stopped using your credit card - NPR

5. Saving for the long-term and short-term are different.

Your retirement accounts need to be considered as long-term money and not to offset bills, debts and inflation now. Instead, build up savings to have when financial distress comes your way. Keep your retirement accounts where they are to avoid extra income taxes, penalties, and a delayed retirement.

Americans are pulling money out of their 401(k) plans at an alarming rate - CNN

6. Create a plan, not a rationalization for your money and expenses. 

This seems like #1 but using your intellect to justify spending is not financial planning. The flaw is that a rationalization is not based on sound financial principles and your overall situation. Your thinking alone does not make a financial decision the sound money approach. If It’s Under $5 It’s Free: The Logic of ‘Girl Math’ and ‘Boy Math’ - WSJ

7. Experience rules. 

No matter our age or profession, personal experience is the greatest teacher. Be gentle with yourself when you make a mistake. That is part of life. Repeating it puts you in the danger zone financially.

I teach about consciousness around money. That will get you the furthest in life and wealth. Conscious behavior often means we must slow down, take our time when making decisions and align our priorities with our values. Then, we can make the best choices for us over the long-term and short-term.

What is Your Why for Charitable Giving?

When disaster strikes, our natural tendency is to help. When disasters hit us, we are thankful to the agencies and folks that help us. In 1998 there was a flood that hit our area. I was grateful to the Red Cross who came to our small town with food and a helicopter for any medical emergencies. Most of our roads were more than unpassable; They were destroyed. Living through that experience gave me a new appreciation for the power of water and a great respect for Mother Nature.

When I started this newsletter I was focused on the devastation across Vermont and the wildfires in Hawaii and Canada. Now, as I get ready to send it out, there are so many more disasters of note: floods in Libya, earthquake in Morocco, wildfires in Greece….And for too long now, the man-made war in Ukraine.

I was raised to help those in need. Professionally, I appreciate giving in a new way. Plus, I understand today there are so many in need. 

Where you chose to give is as important as what you give. Rather than impulsively giving, it is important to give to causes that resonate with your heart. Helping in a natural disaster is great. Beyond that, are you donating regularly to causes important to you. These choices count because giving needs to matter to you in addition to the amount of money you give. Where your money goes needs to be in alignment with who you are and what you value. Then, you are helping to improve the world whether it is a local community organization or a global worldwide effort.

How you give is as important as when you give. Those who give on a regular basis from their paycheck, credit card or bank account automatically are often called “sustainers” for the charity. However, I have found that more people forget they are giving this way, which is not consciously caring for their money or charity. I encourage them to also give in other ways much more consciously: write a check each time you receive a bonus, gift, or each month. By making the effort, then you will have the reminder of the good you are doing in the world. And do not do it all at once for the wrong reasons which include on impulse, guilt, or other benefits. For example, many people race to the end of the year to make monetary donations, so they claim the tax benefit – limited for some taxpayers but more extensive for others. 

If you are reading this and thinking, I am in debt and cannot give. Decide here and now to donate something. Not much money? Give even a dollar a month in addition to giving some of your time. Donating can be powerful for you when you share consciously what you have. 

Have plenty of cash to support your non-profits? Give money and give your time. Seeing what your money does on the front lines has an impact on you and the people you support.

There are so many ways to support those in need and those trying to make the world a better place. Giving Time, Talent and Treasure are key aspects. Aligning with your values and priorities is essential. And most of all, donating consciously and open-heartedly. 

Doing my part of sharing I would like to give you some ideas and give tribute to those doing their work throughout the world.

If you have been thinking about giving some money to organizations in response to what has been happening worldwide and do not know where to start, I offer some information and links below:

Through professional contacts, I have learned of the following places to donate in Hawaii and Canada:

Giving in Vermont: 

  • Vermont Community Foundation started a fund to help flood victims

  • Capstone has been on the front lines in Vermont for decades and is one of the hardest hit areas providing food, shelter, and service to those in need.

  • One of my personal favorites is Vermont Adaptive. Vermont Adaptive is not the only place I give or volunteer. They just resonate with my love of sports and sharing with the population I have worked with since I was teenager. I have learned much from these well-rounded athletes and am grateful for the time to serve. Two of Vermont Adaptive’s athletes were stars in the Champions movie with Woody Harrelson that came out this past Spring. (Great movie!)

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Economic Concerns for Your Attention

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Why am I concerned about the economy?  This country has a debt problem from government to individuals.  If we do not slow down and pay attention to how and where we spend money, the whole system could fall apart. 

As I always talk about financial self-care, I wanted to reiterate why it matters today. Financial change is happening everywhere, not just with the banks.  You can only control your part of the world but first learn what is happening and why that is more important than ever.

Here is what I am paying attention to with trepidation:

1.  Car loans are rampant with over 30% of people financing a car

People cannot afford transportation costs.  Given some may be buying more car than they can afford, but this is ridiculous to have so much debt out there for a depreciating asset. In addition, a greater number of people are defaulting on their car loans.

2. Credit card balances are high 

On average people have over $5,000 in credit card debt, worse, defaults are on the rise.

3. Savings are depleted

Remember all we were saving during lockdown?  Those accounts are dwindling.

4. Commercial office buildings mortgages delinquencies rise

With work from home movement and other changes, the rate is around 5% this year.

5. Traditional measures  

Employment looks strong, and inflation is stable by many reports; These positive measures are critical to a budding economy.  I believe they cannot stand alone without other financial factors which matter to each of us individually.

6. Rising interest rates  

The interest rate changes are affecting businesses and consumers on the loan side.  Sure, savers gain but see my list, # 3 above. 

7. Debt ceiling compromise was a temporary fix  

This issue will come to the forefront after the next election, or sooner.  Right now, the astronomical amount is easy to understand by calculating per US citizen is close to $7,100 each. 

8. War in Ukraine  

A country I am humbled to admit I couldn’t have found on the world map a decade ago is now in splinters and affecting global stability and peace.

Something is going to give.  Perhaps in the long run all will be well.  In the meantime, being prepared to ride out the fiscal downside is crucial.

I am not chicken little saying “The Sky is Falling” rather …

Instead, I’m encouraging living by the Girl Scout model of “Be Prepared.”

You have heard it before from me many times. This attitude is a product of my Girl Scout years and career. Stay financially sound with these five ways to be prepared for the unforeseen whether flooding, fires or economic downturns:

Five Steps to Maintain Your Prosperity Preparation:

1.     Create a safety savings.

2.     Live on less than you make.

3.     Check and cross check your insurance coverage.

4.     Be Prepared for downsides financially and with an estate plan.

5.     Enjoy the upside by living in the simple pleasures and appreciating what you have today.

 

Whatever you do, do not take money out of your long-term goal, like retirement, to fund your life now.  That will backfire in the long run, leaving you with less to live on in your older years.

Balance is key.

When you have the downside contingencies taken care of, you will be prepared for the worst.  Then, you truly will be comfortable appreciating and savoring the best.

Looking to read more about what the economy is doing? Here are some resources:

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Travelling Close

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Growing up, our house had regular visitors from overseas. My Irish relatives would typically descend in the summer and as a result, I would be on hand to be part of the entertainment. Truly, my parents were planning and executing the day trips. Typically my mother would take the actual trip and do the driving. As the youngest, I was along for each ride for many, many years. From Boston, Plymouth Rock was not far. Bunker Hill Monument and The Constitution were only a few miles away, as was the seashore. So before the age of twelve, I had climbed over “The Rock,” sat on the cannons and climbed the stairs of these historic monuments many times. In junior high, I was shocked at how few of my classmates had even been to one of these local sites I had frequented.

This summer, I decided on rather than one long vacation, a series of Fridays off would give me freedom for long weekends or day trips on a less crowded weekday. So far, this option has created many adventures and opportunities to see novel places and even act as a tourist in Vermont.

Let me be clear – this does not feel like the recent “stay vacation” movement of past years, where a week was spent at home. Or the overall goal was to save money. Rather, I have time for long weekends that are not too far away. Or daytrips where I can be the “visiting” tourist in my own backyard. None of this involves undue planning or plane flights which takes more energy. Long drives leave time for exploration and side roads. No matter that there seems to be construction everywhere in Vermont. None of these excursions are time sensitive.

The result? August is here and I have been to several unfamiliar places and had new experiences. In Vermont, I went to a couple of local festivals from Beer festival to Street festival to a few Vermont state parks. I visited places that had been long remodeled and well touted since I was there a decade ago. I acted like a tourist at the King Arthur Store and Simon Pierce outlet. And I was home in my bed that night. Relaxing and fun.

There was energy to head to the Eastern Townships of Canada – a whole new area I had never experienced. Lakes, scenery and a foreign country all rolled into one. There was a day of photography with friends, a day boating on the lake with a generous friend with a boat and an afternoon ferry ride across the lake to New York to cool off one afternoon.

One weekend, my husband and I went away to Ontario. We had the pleasure of staying with friends a night who introduced us to their main local summer event – The Scottish Highland Games. The music was fabulous! (Thanks Louise and Jamie!) Then, we headed to the city of Ottawa for a night. We caught a street festival of performers and an amazing light show on the Parliament Building. Each night we had fireworks too. A bonus: These unique city events were all free! We came home refreshed after a total change of scenery for a weekend.

Attitude is what has made these days fabulous. And of course, the weather has helped. But the perspective of doing something different and having a day or two of open time meant each trip was rejuvenating.

We all get so caught up in doing activities that we have enjoyed for years that even vacations happen on autopilot. A bit of variety from our way of doing things may just be the ticket we want and need to finish off this summer and move into the cooler months of the fall.

I suggest you try an experience that is different this month. Worried about the cost? Remember the event does not have to be expensive. Festivals are often free. Renting a kayak or bicycle for an hour or two costs less than a dinner out.

And best of all, according to research, experiences mean more to us than buying things. So skip the new purse and take yourself and the crew on a beach day!

No time for more, as we are off to the Addison County Fair!

Enjoy Summer!