Jeremy Fulton, Financial Wellness Coach

Tag: financial coaching

3 ways to keep Christmas from surprising you this year.
Yes, I know its only February, and you have 10 whole months till Santa comes down the chimney. So, why think about it now?

I’ll point you to my motto:

“Have a Plan, Not a Payment”

How would it feel to get through your Christmas shopping, knowing you didn’t blow your budget and still gave all the gifts you wanted to?

Pretty good, right?

Here are 3 simple things that can enable you to do just that!
1. Determine who you will buy for, and how much you will spend
  
  This could take some thinking and discussion with your spouse; I’ll wait here till you figure it out. Surprised by how much you want to spend? Hold on, it gets better!
  
  This is the first step of your plan, figuring out the end goal!
2. Add up the total and divide by 9
  
  No, you didn’t loose a month; I’m assuming you will start saving in March and shop in November.
  
  Put this number under the “Christmas” category in your Cash Flow Plan. Since you and your spouse agreed to the amount per person, this should go into the budget w/o much discussion, except where to cut the monthly amount from.
  
  I imagine that this number is much more manageable then the value determined in step 1.
3. Each month put that amount aside in an envelope or separate savings account, earmarked for Christmas.
There are a few unexpected advantages to this method:
- No fighting over how much is spent on Black Friday
- If you run across a great deal in July, you will have the money already to buy the gift; just make sure you hide it well!
- When the bills come in January of 2016, there won’t be one for Christmas gifts!
So, think you can do this?
February 19, 2015
5 Ways to make your future self happy
Have you ever wished you could write a letter to your younger self? I know I have!

What would you tell yourself?
- Don’t date that girl
- Jump on that opportunity
- Eat more veggies and exercise more
- Call your mom more often
Turns out I’ve been talking to your future self and have been sent with some things that you should know now!

5. Forget about the Joneses. By trying to keep up with them, you will waste so much time and money; learn to be content with what you already have.

4. Don’t take investment, tax, spending, or other advice from your friends (or strangers on the internet). Invest in working with a professional with the heart of a teacher. Professionals have spent years becoming an expert in their area; what makes you think your broke friends know as good or better? Money spent in this category will pay dividends in increased wealth, avoided tax penalties, and better money control.

3. Stay away from debt. Sure its nice to get things now instead of waiting, but if you play with snakes, you will get bit! Debt is the enemy of wealth; do you want to have some money at retirement or lots of nice stuff with payments? Get out of debt now so you can build your retirement and enjoy the income you have!

2. Grandma was right; it will rain! Build up an emergency fund as soon as possible. A rainy day fund will take the stress and crisis out of anything that comes up: car broke down? Fix it without worrying how you will pay for it. Sick relative you need to visit? Buy the plane ticket without worrying how you will pay for it. Broken furnace in February? Call the repair tech and not worry about how to pay him. Get the point? Bonus: when you have a 6-month emergency fund, you tend to make different decisions when an ’emergency’ happens, which can save you money.

1. Start saving NOW! The longer you wait to start saving for retirement, the less you will have. Money invested now is much more valuable than money invested in 5 years. Once you are debt free and the emergency fund is built, start taking advantage of employer matched 401k’s and ROTH IRAs. You won’t regret saving that money instead of buying that new car in 20 years, but you just might regret buying that car!

Now, will you listen to your future self? Or if you are the “future self”, what do you think? Anything different you would tell the younger generation? Post below:
February 11, 2015
The 5 ‘best’ reasons to buy a new car
Let’s face it; there’s nothing like driving off the lot in a brand new car! The new-car smell, the fit & finish inside feel luxurious, no strange noises, and everyone is noticing you and your new ride!

So, what are the 5 ‘best’ reasons to buy a new car?

5. I’ll impress my friends and strangers with a new car.
Have you ever seen a brand new Kia or Honda on the road and said to yourself, “Wow! Someday I hope to be as successful as that person!” Me either. So, unless you are buying a Ferrari, I probably won’t give your shiny new car a second look. And do you really care what some stranger you’ll never see again thinks? And if you want to impress your friend, buying them dinner or clearing the snow from their driveway will do a much better job!

4. I’m always going to have a car payment, so why not get a nice, new car?I haven’t had a car payment since 2008; and the last two cars I bought were fully loaded cars in good shape and still very nice inside. I’m not rich, nor did I have tens of thousands of dollars saved up; I paid under $4000 each; that’s only 8.5 car payments! There are lots of reliable, nice cars out there that you can save up for in a reasonable time frame.

3. I want to save money on gas, so I need a more fuel efficient car.
Yes, new cars tend to be more fuel efficient than a comparable old one. So, you could end up saving at the pump. But that is where the savings end. The average car payment in America is $471; will you be saving that much every month in fuel? Unless you trade in your Mac truck for a Honda Civic, I doubt it.

Maybe it’s not your savings, but you are trying to be more environmentally conscious with your MPG boost. Will you reduce greenhouse gasses enough to offset those created by manufacturing your new car (mining the metals, pumping the oil for the plastics, the heavy metals & toxic waste created because of the electronics)?

2. We are having a baby, so we need a safe car.
Really? When your 10 year old car rolled off the assembly line it surpassed all the safety requirements and whoever bought it then didn’t think it was unsafe. Has your car become un-safe over time? If you think so, have a qualified mechanic inspect it and replace aging components. It will be much less expensive than even 2 car payments!

1. I need a reliable car; old cars break down all the time.
Yes, old cars tend to have failures more often than new cars. Parts wear out and fail over time. But is it really that bad? Suppose you just had to replace the transmission at $2000. That is a LOT of money, I agree. But how often have you actually had your car break down and leave you stranded? And $2000 is only about 5 car payments, and is easily covered by your emergency fund. And a rental car is only about $20-30 a day while your car is in the shop. The key to a reliable car is not age, but keeping up with maintenance. Replacing parts before they fail and performing routine maintenance will keep your car running for many more years.

Now, it is possible that your car will need a very expensive repair (such as a transmission) and you are wondering if it is worth putting that much money back into your car. Here is a simple way to determine if it’s time to upgrade: If the value of the car as-is (in it’s broken state) plus the cost of repairs is more than the value of the car repaired, it’s time to replace it. Sell it for what you can get for it and buy a newer, used car, for cash.

So, why am I so against new cars and car payments?
- Cars are depreciable assets. They lose 10% the moment you pull out of the lot, and over 60% in 5 years. Let someone else take the big hit and buy a 2-5 year old car.
- $471/month. That equals almost $40,000 in 5 years if invested instead; Invest that for 5 years starting at age 20, and that’s $2.6 million at retirement!!! Investing it monthly for your entire working career results in $7.2 million! Is that new car smell really worth that much?
- Contentment. Yes, I like new stuff, new gadgets, cars, etc. But driving an older car can help teach you to be content with what you have and not worry about what the Jones’s think.
What reasons do you have to buy a new car? Or not buy one?
February 3, 2015
6 reasons why now is the perfect time to buy a home

Its a new year. Things are going to be different this year! You have set goals for yourself, your family, and your career. But there is one thing that is still bugging you.

You feel like you are still throwing money away every time you write out that rent check.

“I could be building equity in my own home, not having to live in this crowded apartment building, and not having to worry about the rent going up, again.”

If this is you, now could be the perfect time to buy your first home!

1. 2.93% APR
Rates can’t drop much more than that for a 15 year fixed rate mortgage! Many analysts think that the rates will be increasing in the next 3-12 months. Why didn’t I quote the 30 year rate? Because you should stay away! Not only is it a point higher, but you will end up paying a LOT more in interest charges over the life of the loan. And besides, who wants to be in debt for 30 years?

2. Weak housing market (at least in CT)
Home prices are still down, but the market is improving! This could be unlike any other time in history or the future for prepared homebuyers! Opportunity favors the prepared!

3. You’ve lived in the area you want to buy in for a while
Learn from my mistakes, don’t pick an area to buy in until you know the area a bit. Where will you be spending your time? Are there areas you want to live at a distance from? Close to? Where do you work and socialize? If you live too far, you can end up feeling isolated, or end up spending more in fuel than you anticipated driving all over.

4. You have a down payment saved
After the housing debacle a few years ago, it’s almost impossible to get a 0% down loan (a few options, such as VA, are much more expensive than conventional loans); most banks require at least 10%, but 20% is still the magic number!

5. You are debt free
And I mean all debt (including so-called good debt)! Becoming debt free is a much higher priority to reaching financial peace then owning a home. Once your income is freed from the burden of debt, you can maximize it’s wealth-building capabilities, including building equity in a home.

6. You have a fully funded emergency fund
When you own a home, you are liable for ALL maintenance and repairs! No landlord to call at 4 am when the heater quits in February! You need to have that 3-6 month reserve to cover whatever Murphy throws at you. Also, what happens if you lose your job? You’ll still need to pay the mortgage!

Bonus:
Now how do you determine how much house you can afford? It’s a very simple calculation; no need to find an online calculator. Don’t spend more than 25% of your after-tax pay on a 15 year, fixed rate mortgage. Being house poor is no fun, better to have a modest home and money to spend, invest, and give.

Double Bonus:
When figuring out your payment, don’t forget to include property tax and homeowners insurance! Depending on where you live, those can add $400-600 a month to your payment!

Not ready to buy yet? Lets develop a plan and get you ready, together!

January 28, 2015
10 things you need to know about money right now!
There are many things you can learn about money. Some are cool facts and trivia that you can use for small talk at parties. Some things will make you feel better about yourself. And others have the potential to change your life!

So, without further ado, here they are:
1. The amount of money is not fixed.
  There is no “pie” that you have a slice of. If I increase my wealth, it does not mean that I prevented someone else from increasing theirs by that much.
2. Money is created by work.
  As we work and create and build we create value which is how we get paid. That is why the GDP of the world is always increasing!
3. Giving 10% of your income to a cause you care about helps you succeed financially.
  Giving causes us to become more outward focused and generous. People who are not self-focused are more likely to get the promotion, raise, and be presented opportunities.
4. If you have money problems, your children will most likely have money problems.
  You know that your kids are impressionable. They will see how you handle money and mimic your habits, good or bad. If you don’t teach them proper money management, Visa will gladly do it for you!
5. There is no such thing as “good debt.”
  How excited do you get about making payments? This includes Student Loans. Can you be 100% sure that you (or your child) will land a job you love that pays enough to cover the payments and your desired lifestyle as soon as you graduate from school? If the student is a woman, what happens if she gets married, has a child, and wants to stay at home? Can her family support the loss of income with the debt payment? There isn’t anything that can’t be saved up for!
6. Rich people avoid debt; they didn’t get rich using debt.
  80% of America’s millionaires are self-made millionaires, and they say the number one key to building wealth is avoiding debt! When you don’t have debt, you can invest in the market or your own business much more!
7. Money ≠ evil
  Money is amoral. It’s like a brick. A brick is not good or bad. I can throw it through a window or build an orphanage. Money is the same way; in the hands of good people, a lot of good can be done. Bad people will just do more bad.
8. Your retirement fund is more important than your kids’ college fund.
  You will retire one day, either by choice or necessity. Not everyone goes to college. Also, do you want to rely on your children to take care of you when you are older and be a burden to them?
9. Budgeting gives you freedom!
  I know that the word ‘budget’ is used to imply cheap, low-rent, inferior, etc. But that doesn’t mean that living on a budget means you can’t spend money on things you want. All a budget is a plan on how you WANT to spend YOUR money. You plan out your spending for the next month, deciding what you want to spend the money you worked so hard for one, and then actually following through with the plan! You are allowed to budget money for eating out, buying ‘toys’, and hitting the local Starbucks! The biggest result to budgeting? You will feel like you got a raise!
10. Investing in a financial coach will pay off bigger than any stock!
Yes, I know it seems self-serving to tell you to hire me, but to be honest, had I hired a financial coach way back when, I would have ended up with thousands more in my retirement fund, way more in my savings, and have not wasted so much money over those years! A coach can help you pick the proper types/amounts of insurance (saving you on payments and loss), set and reach financial goals, find areas where you can save money in day-to-day expenses, help you beat debt (how much of your income goes to payments each month?), and even help you and your spouse agree on money issues (how expensive is a divorce?)!

Maybe you have all the answers already and are doing pretty good; good for you! If not, what are you waiting for? Give me a call and set up a no-cost, no-obligation consultation to see if what I’m saying is true. What do you have to lose?

I can be reached at 860-469-2274 and jeremy.fulton@me.com
January 15, 2015
Giving Thanks

Tomorrow is the Thanksgiving holiday here in the US. Many like to take a moment and reflect on all that they are grateful for. Some see it as a 4-day weekend that they can pig out during. Others see it as the day before Black Friday, where they can fight crowds for a super deal on low quality electronics.

I have to admit that in the past I’ve done more of the latter two than the first. But things have changed in my life in the past couple years that have caused me to change how I see the world and my life. Just over a year ago I left singleness for good and married the most amazing woman I’ve ever met, and now we are expecting our first child, due in May!! Between those two major events I’ve become more outward focused and less selfish. I’ve learned how fulfilling it is to serve my wife as a husband; more so than anything I did while single.

I won’t bore you with an exhaustive list of every good thing in my life, but I do want to express my gratitude for a few things I’m most grateful for, things I thank my Creator for often.
– My relationship with Jesus Christ, and the grace and mercy He’s granted to me
– My wife; I waited a LONG time to find her, and my life is so much the richer due to her love
– Our child; I’ve waited a long time to be a dad, and an so excited to be one!
– Having family close enough to spend holidays with; I’ve lived for so long thousands of miles from my family that having my in-laws close has been a blessing
– My career as a Personal Financial Coach; I get so much joy and fulfillment helping others change their lives! It’s amazing to have a job that I love so much!

I hope you take some time and reflect on what you are thankful for, and remember those that are less fortunate. Your life may be tough, difficult, and painful, but there is always a silver lining to the cloud if you just look hard enough.

What are you most thankful for? Please share with us in the comments section 🙂

November 26, 2014