Lutz Financial Coaching

I've always been a big fan of Suze Orman and she just wrote a great article on smart back to school shopping. This is a great read especially if you have kids starting back to school soon like me!

A Smart Back to School Shopping Plan The sharp rise in the rate of inflation has likely taken a painful extra...

I just stumbled across a great quote from Warren Buffett and I think it's worth sharing:

“If you buy things you don’t need, you will soon sell things you need." ~ Warren Buffett

Happy Tuesday everyone! I came across this article and thought it was an excellent short read. It really puts into perspective how small changes can add up to HUGE results in the long run. This article shows how investing as little as $35 per week could make you a millionaire if you start early! I’ve always said that time and compound interest are your best friends in life! Set some money aside in your retirement account, don’t touch it, and just let it grow! Trust me, you can find a way to make this happen!

Also, have a little fun and play around with this compound interest calculator. If you can do more than $35 per week, then input that information and see what it can grow too!

https://www.ramseysolutions.com/retirement/retire-a-millionaire-on-35-a-week?utm_source=cnl&utm_medium=email&utm_content=7.3_cnl_blog_4_trusted_investing_gsa&utm_term=trusted_bu&utm_campaign=cnl_newsletter&utm_id=cnl_newsletter&cd17=RSCOM-11671_CNL-GSA&_kx=mpCakc_FHtwut0KEe1Cvq-XSW1LtKLSY4mMmvJA1Ie8%3D.RzHn5B

Compound Interest Calculator:
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

Can You Retire a Millionaire on Just $35 a Week? What if we told you that saving just $35 a week could lead you to millionaire status? Seems a lot more doable, doesn’t it? Here’s how to retire a millionaire.

I don't claim to be an expert on the economy, but I fear that this economic climate is going to get worse before it gets better. Hopefully, I'm wrong but I'm going to prepare now for the worse case and I hope you do too! Below is a great article about how these rate hikes can/will affect you. It's a short article so give it a read.

If you haven't done so already, here are a few ways you can prepare:

1. Have a $1000 in an emergency savings fund to start with
2. Get your non-mortgage debt paid off as soon as possible!
3. Cut up those credit cards! They are going to get even more expensive!
4. Work on saving up 6 months of expenses

If you have questions or concerns, please feel free to reach out to me.

https://schiffgold.com/commentaries/three-ways-fed-rate-hikes-will-impact-your-wallet/

The Fed announced today that they have increased interest rates by .75% this month and they have plans for a similar increase next month as well. That's on top of the 1.5% increases that have already occurred this year.

For savers, this is good news as you can expect to see your savings and money market interest rates to rise but for anyone with adjustable rate debt (especially those with credit card balances), you'll see a significant increase in servicing that debt. One way to stay ahead of this rate increase is to call your CC company and ask for a rate reduction, especially if you're a good client with a long history of on time payments. A second method is to look into doing a 0% balance transfer and getting that paid off as quickly as possible.

Inflation is still out of control with no signs of letting up, which is why the Fed is increasing rates. If you haven't done so already, it's time to tighten up your budgets and create a plan to get out debt. This doesn't appear to be ending anytime soon, and no matter what the Fed says, it appears we could be facing a recession soon. It's time to get your fiscal house in order before it gets worse!

https://finance.yahoo.com/news/fed-hikes-rates-75-basis-180513747.html

Escape from the cycle of debt!
In a previous blog post I covered ways that you are stuck in a cycle of debt. In this follow up blog post, I discuss ways that you can break out of the cycle and begin your journey to financial freedom. Read more in the link below (or if you have a question contact me or ask in the comments).

Break Free From the Cycle of Debt There’s no magic secret to end the cycle of debt. It will be hard work as you aim for financial freedom. We have 5 things you can do now to break free of the cycle of debt.

Here's an interesting, albeit depressing, article about how people feel about their finances. It notes the following:

📌2 in 3 adults avoid social events because they’re embarrassed about their finances
📌57% said they’ll always feel stressed about their finances no matter how much they make
📌60% of people are uncomfortable talking about their finances
📌58% feel alone in experience financial stress
📌 51% feel shame
📌42% say debt has taken a toll on their self esteem
📌 38% say it affects their productivity at work and physical health
📌Most believe it would take on average 38 years to pay off credit cards
📌43% only pay minimum payment on credit cards

Even though these stats are shocking, there is hope!

One thing I would like to change is how taboo talking about your finances are. My wife and I share all of our financial information with our 14-year-old daughter and involve her in our budgeting meetings each month. Our hope is that she will feel comfortable talking and learning about finances and she won’t be caught unawares about how personal finances work when she leaves for college. I sometimes think she even enjoys the budgeting meetings!

It’s also important to point out that if you are stressed about your finances, you are most definitely not alone! There is help out there and you can make positive changes! Start today by learning how to budget and do a financial audit on your spending habits!

2 in 3 adults avoid social events -- because they're embarrassed about their financial struggles Some say they’ve steered clear of birthday parties (33%), weddings (32%), happy hours (31%), and networking events (31%).

Looking for a new job? Most business now use applicant tracking software to sort through resumes so it's important to use key words and strong verbiage so your resume gets through the automated system and in front of a real person. Here's a great article along those lines.

200 Resume Words That Make Your Resumé Stand Out Make your resumé stand out when you use these 200 resumé power words.

I've always loved Suze Orman. She's one of the best personal finance personalities out there and she's right on the money here.

Many of you may not follow financial news, but the Federal Reserve just raised interest rates again in an effort to combat rising inflation.

This time the increase was .50% (largest increase since 2000) in addition to the .25% increase in March, and there are likely several more increases to come this year.

This may not seem like a big deal, but it will drastically raise the cost of borrowing and the servicing of current debt. If you have variable rate debt, like credit cards, your interest rates are almost certainly already going up, which means a hefty hike in the amount of interest you’ll be paying each month. Combine that with high prices everywhere, it will further strain already tight budgets.

The best time to fix your financial house is always right now. If you need help figuring out how to conquer your debt and set some financial goals then give me a call.

Fed hikes interest rates the most since 2000. Here's the impact on your wallet. Economists expect a sharp increase in borrowing costs. That could impact credit cards, loans and other debt.

One of the biggest reasons I became a financial coach was to help people escape the cycle of debt they’re stuck in. It sometimes can seem that when you don’t have money your options become severely limited. You're paying everything you have to creditors, and on top of that, companies offer you products that are advertised as ways to help you out, but just end up making you fall deeper in debt.

Below is part 1 of a 2 part blog series about escaping the cycle of debt. We're starting with 4 things that keep you in the cycle...

4 things keeping you in the cycle of debt What is causing you to be stuck in the cycle of debt and how can you get out of it? In this 2 part series we'll discuss what is keeping you in the cycle, and how to get out of the cycle of debt.

One question I get a lot is, "how can people who need financial coaching afford to pay for your services"? My response is that they can’t afford not to. The latest US Census data report showed the average median household income in the US is over $67,000 per year, however 80% of people live paycheck to paycheck. This suggests, that the majority of people make enough money, but just need to learn more about personal finance and how to handle their money.

By hiring a financial coach, I can save you time and wasted energy by teaching you the right approaches now. Save yourself the trouble of bungling your way through the process alone, like I did. My approach isn’t a magic wand that will make your money issues disappear immediately, but it will teach you the tools for long term success.

I can almost certainly find my fee in your budget, so don’t let that dissuade you from getting help! The short and long-term rewards of putting some skin in the game and getting a solid financial plan will be worth it. Plus, you will save you quite a bit of money in the long run! Sleep better at night by knowing you are the boss of your money. I will also never turn someone away whose situation is so dire that they truly can’t afford help. Give me a call and see how I can help.