The Blame Game

October 25, 2010

In our office we have these fake motivational posters because we all have a very odd sense of humor (starting at the top I might add).  We don’t need the real motivational posters because our company hires motivated people. The one above the desk where I sit says, “The secret of success is knowing who to blame for your failures.”  I know.  It is hilarious. Different ones are all over the office all with beautiful pictures so they look real until you read the captions.

The reason this comes to mind is my caller last week, who had so many financial problems, didn’t know where to start and certainly had some people to blame.  Continue reading “The Blame Game”

Sometimes Our Kids Do Listen

October 21, 2010

I received an email a few weeks back from my daughter letting me know she was both scared and excited because she was moving into her new apartment and also starting college.  I had mixed feelings when I read this –proud that my little girl was starting this new journey and sad that she was moving on and needing dad less.

But the part of her email that made me the most proud was how she talked about the way she was going to pay for her rent and school.  Continue reading “Sometimes Our Kids Do Listen”

Core Competencies for Financial Literacy

October 19, 2010

Earning, Spending, Saving, Borrowing, and Protecting – these are the 5 core competencies that the Department of the Treasury’s Financial Literacy and Education Committee has proposed as what consumers should know and be able to do to successfully understand and make informed decisions about their personal finances.  Each of these areas directly relate to your employees’ paychecks: Continue reading “Core Competencies for Financial Literacy”

Financial Decisions – Where to Start?

October 18, 2010

Did you ever feel like you had so many financial problems that it was no use?  There is no possible way to get out of them.  I had a caller like that yesterday and it was a tough call. She had a long list of financial issues similar to the following: a low credit score, unable to pay the minimum on credit cards, unpaid medical bills, past due utility payments and past due loans that her significant other was responsible to pay but are in her name.  She’s also living with relatives and wants to move out but can’t and does not have an emergency fund.  Where to start? Continue reading “Financial Decisions – Where to Start?”

Kids Eat Free Sundays

October 13, 2010

Sunday is my favorite day of the week.  Not only is it a day I get to worship with my family, but it is also the day that kids eat free at the local sub shop.  Now I’ve got four children (the oldest who just turned 12) and as many of you can attest it can be very expensive feeding such a crew.  In fact, my last trip out for lunch cost me over $75, and I didn’t even enjoy an adult beverage.  The truth is dining out can be one of the biggest drains when it comes to the family budget.  When we think about how much we spend each month it’s easy to come up with figures for things like housing, utilities, cell phones, etc., but dining out is one of those expenses that is easy to underestimate.  We might think we have a good handle on it, but let’s test ourselves to be sure.  Continue reading “Kids Eat Free Sundays”

The Little Italy of Open Enrollment

October 08, 2010

In my last blog, The Little Italy of Open Enrollment, I was a hungry man staring down a street filled with masses of people and almost visible aromas and tastes of authentic Italian food.  I was in search of a simple answer yet was faced with too many choices to see things clearly.  For the employee receiving thick info packets during open enrollment season, there is good news.  You can absolutely find what you need without your head exploding because of too many choices.

The most important thing to remember is that the choices you are faced with are about BENEFITS.   Continue reading “The Little Italy of Open Enrollment”

Credit Card Myths

October 06, 2010

According to IndexCreditCards.com the average household in America has nearly $7,400 in credit card debt.  What’s more disturbing is when you take away households that have zero credit card debt that figure jumps to almost $16,000!  We haven’t even considered the other forms of household debt, such as student loans, car loans, and mortgages.  When you consider that the average interest rate on a credit card is somewhere above 14% you start to realize just how easy it is to get over our heads in debt. Continue reading “Credit Card Myths”

The Debit Card Hoax

September 29, 2010

One of my favorite workshops is our Personal Financial Basics workshop.  In this workshop we talk about the fundamental principles of money management, including budgeting, credit and debt, and saving.  No matter where I go or what audience I’m speaking to, there is one part of this workshop that always causes a stir: the debit card.

Now what can be so controversial about the debit card?  Nothing, unless you make it controversial, and here’s how the conversation typically goes: Continue reading “The Debit Card Hoax”

How Does Drew Brees Do That?

September 24, 2010

Decision making…it’s one of the things that I heard a lot about while watching football last Sunday.  An NFL quarterback needs to make an enormous number of decisions in an incredibly short period of time before  a ridiculously large human being with fire in his eyes and bad intentions running at nearly world class speed hits him with the force of a wrecking ball.  THAT is working under duress!  In our lives we may not have 6’4”, 250 lb people trying to drive us to the ground during the course of our workday, but we are all under some form of stress. Continue reading “How Does Drew Brees Do That?”

But Changing Passwords is a Hassle!

September 23, 2010

We have all probably heard that it makes sense to periodically change the passwords on our accounts that we access online.  Sure, like I have time to change all the passwords for both my wife and I.  And besides, who could possibly figure out the crazy things I think of. I thought that by being extremely clever once, I could stop any hacker from invading my online accounts and at the same time, not have to worry about thinking up new passwords all the time. Continue reading “But Changing Passwords is a Hassle!”

The $1,249 Vacuum Cleaner

September 22, 2010

Recently, our vacuum cleaner broke.  Now normally when something like this happens I like to take it apart and find the broken piece, replace it, and keep using it.  Well, let’s just say this vacuum is beyond the point of no return.  But this presents us with an interesting dilemma.  You see, this is not going to be the first time that we are replacing the vacuum.  We don’t seem to have very good luck with vacuums, and by my count, we are on at least vacuum #3.  So that would mean we are replacing a vacuum about once every five years.  Now I don’t know the life expectancy of the typical vacuum cleaner, but that seems a little frequent to me.  So I plan to take a different approach to the vacuum buying process this go around. Continue reading “The $1,249 Vacuum Cleaner”

ESPPs: A Sale to Pass On?

September 21, 2010

I recently sat down with an employee to create a financial plan as part of a financial coaching benefit that his employer offered as part of their overall wellness program.  As we began discussing how he has his paycheck allocated, he told me about his 6% 401k deferral, his $50 HSA contribution, and his $50 a pay towards the employee stock purchase plan.  His last option caught my attention because it didn’t quite fall in line with his 2 primary financial goals – retirement and saving for his son’s college costs.  When I asked him why he had signed up for the ESPP, he said, “I’m buying them on sale!” since his employer gives a 5% discount to the stock price and no trading fees. Continue reading “ESPPs: A Sale to Pass On?”

What We Can Learn about Investing from Generation Y

September 20, 2010

People poke fun at Gen Y’ers because this was the generation where everyone got a trophy just for participating in a sport or activity.  At the Little League “end of season” team parties, even the team that was dead last and the player that barely sniffed the field, went home with their trophy.  While these parents (I know because I was one of them) were worrying about the delicate sensibilities of our little Millennials, they were fast at work learning technology. Continue reading “What We Can Learn about Investing from Generation Y”

The Statue of Liberty & the Concept of Hope

September 17, 2010

On a recent trip to New York City, I took a quick 1-hour boat tour of the New York Harbor.  It was an incredible view of an incredible city!  The most significant part of the tour (at least for me) was when the engines slowed down, the boat stopped, and we slowly drifted past Ellis Island and the Statue of Liberty.  At the same time, the pre-recorded voice of the tour guide talked about the immigrants who came into Ellis Island filled with hopes and dreams of making a new life in the United States.  Virtually every story we heard on that tour was one of people who came here without anything, worked hard, believed in what they were doing and why they were doing it, and achieved success.  It was very inspiring. Continue reading “The Statue of Liberty & the Concept of Hope”

The Debit Card vs. Credit Card Conundrum

September 16, 2010

A question I often get in workshops and over our Helpline is whether to use a debit card or a credit card.  On the surface this would seem to be a no-brainer right?  Using a debit card allows you to easily track where you’re spending your money, it pulls money directly from your checking account (so you’re not going into debt) and heck, it’s convenient.  And what does a credit card do?  Well under closer scrutiny, a credit card can provide a lot of advantages too.  If you pay the balance in full, you are basically “borrowing” money at no cost to you – which could allow you to earn that extra .10% on your dollars – you also can still get a breakdown of what you’re buying as many credit card providers have this feature, and yes, credit cards are also (sometimes too) convenient.

So now that I have muddied the waters, your question probably is, “Ok Bruce, so when do I use one over the other?”  Well, let me share with you the strategies my wife and I use. Continue reading “The Debit Card vs. Credit Card Conundrum”

The Cost of Necessity

September 15, 2010

Twice a year I have the opportunity to speak at the local crisis pregnancy center to a group of young men and women about managing their finances.  Now I don’t care how old or how young you are; whether you make a lot of money or just a little—we ALL need help when it comes to managing our money.  Most of us learned to manage money watching our parents, and I think many of you would agree that they could probably use some help too.  But among the things we talk about, the one that I often get a kick over is the subject of ‘wants vs. needs’.  Now you might think that wants and needs are fairly easy to determine, and in many cases you’d be right, but there are several instances when it may not be as black and white as it first appears. Continue reading “The Cost of Necessity”

When You Want Something Done Right, You May Have to Do it Yourself

September 10, 2010

Over the last few months I have talked to a lot of people who are concerned that their company’s pension plan has changed for the worse.  These are people from many different employers all across the country.   Many others have seen an employer’s pension plan get frozen, terminated, or taken over by the PBGC.  What was just a generation ago almost a “given” has become increasingly rare, and even when it exists there is ever increasing skepticism about the long term viability of the pension plan.  So, what can be done? Continue reading “When You Want Something Done Right, You May Have to Do it Yourself”

Are You Financially Strong Enough to Accept Charity?

September 08, 2010

Recently, my life group at church went to a local gas station to pump gas and wash windows for the customers, and I learned something very interesting: sometimes it is difficult to receive charity.  Our goal that day was to be nice, and to offer kindness to strangers in the form of service.  We were not asking for donations, we were not raising money for some upcoming event.  We were simply being charitable.  Now in the defense of those we met that day, I will say that in today’s world someone coming up to you at the gas station and offering to pump your gas and wash your windows seems a bit odd, but when we explained that we were simply providing service as an act of kindness, there were many who allowed us to proceed. Continue reading “Are You Financially Strong Enough to Accept Charity?”

Why Stop at Being a Millionaire?

September 03, 2010

While driving with my kids in the car recently, a song came on the radio.  The song is called Billionaire by Travie McCoy (I recommend the clean version over the explicit…), and talks about why the artist wants to be a billionaire.  He wants to be on the cover of Forbes magazine smiling next to Oprah and The Queen.  It’s a little bit silly, but very amusing, and my kids like the song.  (OK, after about 15 listens, I do too now.)  But, it made me think: “What would it take for someone to be a billionaire?”  Other than something obvious…like a billion dollars! Continue reading “Why Stop at Being a Millionaire?”

Thoughts Behind a Vacation/Retirement Home

September 02, 2010

Well we made it back in one piece, fully rested and ready to take on the world.  Well at least our decision on what to buy and where to buy.  So here’s our verdict: we are going to purchase a house that we can visit occasionally (vacation) and also retire to.  (Remember, my wife wants to retire ideally in 5-7 years.)  This creates an additional component to our decision.  We don’t want to necessarily foot the entire bill for the mortgage, insurance, possible HOA, etc, so this home will also need to be in a location that will provide us with rental income from other vacationers.  And who said financial decisions like this were easy? Continue reading “Thoughts Behind a Vacation/Retirement Home”