Jeremy Fulton, Financial Wellness Coach

Tag: help

How to get more money in your paycheck without working more!

All of us would like to bring home more money for the work we do. I discovered an easy, legal and simple way to boost your paycheck, without taking more overtime! If you want to learn what I learned, keep reading.

Back before I learned this method, I was missing out on several hundred dollars every month! I look back now and wonder how much more I could have invested, how much faster I could have paid down my debt, how much more I could have saved for trips and ‘toys.’

What I found out was that I was loaning the Federal Government hundreds of dollars a month at 0% interest! I bet that you are doing the same thing. How do I know?

Almost everyone that I’ve talked to over the years gets a hefty tax refund this time of year. They look forward to it. They are happy that they get a huge check.

What they don’t realize is that it’s not free money, but money that they overpaid to the IRS! And like I used to do, they tend to blow most, if not all, of it on spontaneous unplanned spending.

Wouldn’t you rather be able to use that money as you earned it? Or at least put it in a savings account to earn some interest? What financial goals are you working towards now, that having this additional income would help you achieve?

Now for the action part. There are many W-4 calculators online, including the official IRS one; you can even ask your HR department or CPA for assistance. Once you have calculated your new withholding amount, fill out a new W-4 and submit it to your HR department.

The goal is to have as small a refund as possible ($100-200) without owing anything.

So, how much more will you get out of your next paycheck? Encourage others with your results!

April 14, 2015
How to Understand Health Insurance
HSA, FSA, Co-pay, high deductible, Obamacare, lifetime limits, in-network, out-of-network, and so on. Its enough to drive one crazy trying to understand all the jargon. And then to be expected to make an “informed decision” on what is best for you and your family? Forget about it!

Maybe you just got a new job, lost your job, or are in “open enrollment”, or just want to know how to navigate the labyrinth known as health insurance. Let me break it down for you, in a way you can understand.

“The art of medicine consists of amusing the patient while nature cures the disease.”
― Voltaire

I can’t cover everything here, but I will attempt to break down the most common terms, concepts, and offer my advice on selecting a plan.

I can remember starting a new job back in college, and being given the tri-fold pamphlet showing me the health insurance options. It was full of acronyms, 5-dollar words, and jargon that I didn’t understand. My new boss wasn’t much help; all he could tell me was, “I picked that one, ’cause its cheaper.”

As time has gone by, insurance has become more complex. I didn’t really understand it well until about 7 years ago, when I left the Navy and no longer had 100% coverage for anything & everything.

So, here is a list of the most common terms/concepts you will come across, an explanation in layman’s terms, and what I think about it as a choice (if it’s something you can choose):
- HSA – Health Savings Account; a benefit accompanying some High Deductible plans that allows you to save for specified medical expenses with pre-tax dollars. You can have part of your paycheck automatically deposited in this account where it will stay until you use it. It can act like a savings account for large medical expenses or used to get more bang-for-your-buck with routine expenses. If you have a High Deductible plan, I highly recommend this.
- FSA – Flexible Savings Account; similar to an HSA, but any money left in at the end of the year is lost. As in gone forever and not yours anymore. If this is offered, you need to plan out how much you think you will spend in a year and only put that amount in. Like the HSA, it is pre-tax, so you can save money by using it, but if you don’t spend it, you will loose it. I only recommend this if you can predict reasonably well your annual medical expenses.
- Deductible – the portion of the medical expense that you have to pay before the insurance company starts to pay. For a High Deductible plan, it could be several thousand dollars.
- High Deductible Plan – A health insurance plan that has a high initial deductible (compared with other plans), usually starting at $2,600 for families. After you meet the deductible, medical costs are split between the insured (20%) and the insurance company (80%), until a “max out of pocket” amount has been reached. At that point, the insurance company picks up all remaining expenses. Some plans have a lifetime maximum that is covered, so look at your plan and see if it has one. An HSA usually goes along with this type of plan, and it is usually much less expensive than a PPO or HMO plan. I highly recommend a High Deductible plan for two types of families: you are very healthy (i.e. you rarely visit the Dr. so don’t have to worry about paying for lots of office/hospital visits) or you are very sick (you will quickly reach the max out of pocket amount, which could be less than what you would pay with a PPO/HMO plan).
- HMO – Health Maintenance Organization: A type of insurance where the insurance company gets certain providers (Drs., pharmacies, specialists, etc) to accept a lower rate for service. This is the “network of providers” and you pay a co-pay with each visit and/or pre-arranged fees. To visit a provider who is “out of network” means paying a LOT more. Your favorite Dr. may not be part of the network. Premiums (what you pay each month) are higher than with a High Deductible plan, but your per-visit costs are lower. I recommend this for families that know they will make many visits to the Dr and/or hospital.
- PPO – Preferred Provider Organization : similar to an HMO with a couple differences: you don’t need to designate a primary care doctor, nor do you need a referral to see a specialist.
- Cost Sharing Network/Ministry – This is not insurance, actually, but a group of people who decide to share the medical costs of the group across the group’s members. Depending on the specific organization’s set up, members either send a monthly payment into a large pot from which expenses are paid from, or members write checks directly to other members. In a Cost Sharing Network/Ministry, money is paid directly to the members who then pay their bills themselves. While this is not insurance, it does meet the “insurance” mandate of Obamacare. In contrast to insurance, the organization is not legally liable to pay out for claims, but the good ones will uphold the stated policies. Most of these do not ‘cover’ routine medical expenses, such as physicals, but will cover for sickness, injury, and/or maternity costs. If you are self employed and/or not eligible for a group insurance plan, this type of ‘coverage’ could be the most cost effective. I currently use and strongly recommend Christian Healthcare Ministries.
- Co-Pay – Under a PPO or HMO plan, this is the portion of the cost that is your responsibility. For example, you might have to pay $20 each time you visit your doctor, or $500 for the emergency room.
- Network of Providers – Under a PPO or HMO plan, this is a group of service providers that have agreed to charge lower rates to members of a particular insurance plan. If you decide to use a provider outside of the ‘network’ you will pay much more in either co-pay or have a higher deductible.
There are many, many more words & terms that I could describe, but I think I covered the most important and common terms that you will run across. If there is one (or more) that I missed, please post it in the comments and I will address it.

Feel free to bookmark this post for future reference and share it with your friends and family! If you need help deciding on what what is best for your family, give me a call and I’ll help you navigate your specific situation!

860-469-2274
jeremy.fulton@me.com
April 7, 2015
What if this one thing did happen to you?
He never thought it would happen to him, that it could happen to him. He was careful: he never took huge risks, thought through his actions before taking them. But it wasn’t enough to protect him from this.

He fell. He fell far, and by the grace of God he survived the fall. He should have died, but by a miracle he survived.

But now he can’t work; this hardworking, family man can no longer provide for his family, through no fault of his own.

1 out of every 4 people in the US will suffer a disability before retirement.

What if it was you?

What if something happened to you that removed your ability to provide for your family? How would they eat? How would the rent get paid? How long can you go before they cut off your lights and heat?

The way to protect your family is with Long Term Disability Insurance (LTDI).

But you are still thinking that you won’t ever get hurt. 1 out of every 4 people in the US will suffer a disability before retirement. And every second someone becomes disabled!

LTDI usually pays out 60-65% of your gross pay for the duration of the disability. This works out to be pretty close to most people’s take-home pay! And if you buy it with after-tax dollars, it is not taxed!

You may still be thinking that you don’t need any more deductions from your paycheck, and besides, isn’t that what workman’s comp is for? Workman’s comp won’t cover an injury if it happens outside of work, and knowing many people who have had to fight them for what is due, I wouldn’t recommend relying on that to cover you, either.
- Many employers offer LTDI (and short term disability insurance), and purchasing it at work is the most affordable way to get it.
- There is an ‘elimination period’ of usually 90 days before LTDI kicks in; cover this income gap with your emergency fund.
- You don’t need short term DI because you have an emergency fund.
- Purchase your LTDI with AFTER-tax dollars, if given the option, so that you won’t be taxed on your benefits.
If you are not sure what your employer offers, talk to HR and enroll if it is available ASAP! If you want to review what your employer offers before signing up, contact me and I’ll help you understand each benefit your employer offers, and help you decide what is best for you and your family.

Share with me your experience with LTDI and/or workman’s comp!
March 28, 2015
How to save money every day the way I do
Here at the Fulton’s we are always looking for legitimate ways to save money. Especially when it comes to every day expenses. Some of these you probably already do, others will seem extreme, and the rest you will want to start doing today!

Everything I’m about to talk about is something we currently do, use, buy, own, or have previously done, used, bought, or owned.
- Ting mobile phone service. Ting is a pay-per-use service, so you can control your bill! Our bill, for two smart phones, went from about $150 on Verizon to about $35 with Ting! Ting uses the Sprint network, so it’s reliable. They will even credit you up to $75 to get out of your current contract! Click here to see how much you can save.
- Menu Planning. My wife plans out two weeks of meals at a time, then generates the shopping list based off of this. Between having a plan for what to cook/eat and shopping with a list, we cut our grocery bill by 25%!!! My wife uses this App/service; it’s not perfect, but works for us (let me know what you use)
- GasBuddy.com. If you want to compare gas prices before you head out the door, this site is great! Prices are reported by users of the site and app (yes, there is an app that you can use!). Don’t waste your time/fuel driving around to find the best deal!
- Lower the thermostat. In the winter, we keep the thermostat pretty low (55F!) and wear warm clothes inside, and blankets while sitting on the couch. We both work in the same room/office, so we use a small oil-filled space heater to keep that room at a reasonable temp. In the summer we use fans, except when it’s too hot for that.
- TV. I cut the cord years ago, “giving up” traditional satellite TV service. We will check out movies (and TV series) from the local library (they can get movies from other libraries if it’s one not in stock), or use Redbox.com for a new release (pro tip: reserve online or w/ the app to ensure the movie you want is at the kiosk closest to you). Also, now there is the option of streaming content from the internet; devices such as a Roku, AppleTV, ChromeCast, or Fire TV allow you to stream free content or inexpensive subscription programs such as NetFlix, Amazon Prime, or Hulu+.
- Cloth napkins. And no paper towels. Not only do cloth napkins add some ‘class’ to your meals, they don’t cost anything to re-use (they will fit in your normal laundry load)! We use old hand-towels instead of paper towels. Again, they don’t add measurably to the laundry (and are tougher/more absorbent than paper, anyway!).
- Cloth diapers. With Baby-J on the way, we wanted to find out how to keep costs as low as possible. We calculate that we will save several thousand dollars over the course of two children; this includes the cost of buying quality diapers, extra laundry loads, and our time.
- Amazon Wish List. This may seem counter intuitive, but hear me out. I’m a spender. So I’ll put stuff I want or think I need on the list instead of buying it right away (even if it’s in budget). I’ll take some time to price shop and to just let it sit. Many times I’ve removed something from the list, either because I realized I didn’t really want it that bad, or I found a better option.
- Buy used. Craigslist, eBay, etc are all great places to find used, quality goods (80% of my furniture, and my last 4 cars were found on Craigslist).
- Buy quality. When it counts. Some things, like baby clothes, don’t matter, but with many things, buying it once, for a little more, if better than buying it many times. Or the usability factor can make it worth while to buy the better model.
- Cash Flow Planning. This is the single BEST way to reduce your spending and save money. It forces you to be intentional about your spending. It is how we ensure we only spend on what is important to us. It reigns in the impulse spending and prevents overdraft fees. We use You Need A Budget (YNAB for short) as our budgeting software. It is super easy to use, has a free mobile app, great resources, forums, FB group, and even has a good looking interface! I’ll be writing a formal review on it, soon. But for now, download the free trial here. If you want to buy it, save $6 by using this link.
What money saving tips would you like to share?

Disclosure: some of the links provided are for referral programs. By clicking those links, I will receive an account credit or money. You may also receive a credit from those same links.
March 18, 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
The Envelope System, or How To Stick To The Budget
A little while ago I wrote about using Cash, in a post titled Cash Is King! (Sorry Elvis); and in that article I mentioned using the Envelope System as a way to control your spending and avoiding some budget busters. I very briefly described how we use that system, but I’m not convinced that I taught you enough to fully implement that system with your own budget.

Long before the invention of debit cards, people would pay for many things with physical cash. They actually had physical money in their possession, esp. if they didn’t trust the banks (think post-depression). One method people would use to control their spending would be to allocate their pay into separate envelopes, so they would have enough money for the rent, utility bills, and to save up for large purchases (most people didn’t borrow for ANY purchase, even home!). As the check book, then plastic became more popular, the envelope system faded into history.

Now, many financial gurus, such as Dave Ramsey (and myself), recommend using this old system to remove the risk of overspending certain categories of your budget. I personally recommend (and use) envelopes for 3 categories. I think that you should use at least these three, but feel free to add others that you have a history of overspending on:
– Groceries
– Eating out
– Blow money (separate envelopes for me and the Mrs.)

Using the Envelope System is VERY easy! In fact, it’s easier than not using it when budgeting! Here are the steps:
1. Complete your monthly budget, determining how much from each pay check goes to which category.
2. Have your budget committee meeting and come to an agreed upon budget.
3. After the first paycheck is deposited, withdraw the amount for each envelope category from an ATM.
4. Put the cash in the envelopes.
5. Only spend on each category from that category’s envelope.
6. Once that envelope is empty, you are done spending on that category.
Simple, right?

Don’t worry if it takes a few months to get it right; that’s normal! Like any new skill, this takes some practice. If you have any questions or need help, please ask in the comments or shoot me an email!

Objections I’ve heard:
- I might get robbed if I carry cash!
  - no one knows you carry cash, so why would you be any more of a target than if you didn’t?
- What if I loose my envelope?
  - I don’t carry envelopes around unless I plan on wanting to shop in that category. The amount of cash carried is minimized. Also, be careful, as you would with your debit card.
- It’s a hassel to pull out money every week/2 weeks!
  - It’s worse to overspend at a restaurant and overdraft on the electric payment! Most banks have a drive-up ATM/teller; we don’t think it’s a hassle to hit the Starbucks drive through!
- I might run out of money and not be able to buy what I want at the grocery store!
  - That’s the point! Put back the ice cream and sugar cereal and buy pop-corn and oatmeal instead; next time you will plan out how you spend your grocery money better.
What other objections do you have? Post in the comments below

If you are ready to start, you can buy a nice envelope system here, or check out the web for ideas on making one that fits your style and needs!
September 23, 2014
Start Saving NOW! A story about Compound Interest

You may think that you have plenty of time to save for retirement; after all, you are young and won’t retire for many decades! Maybe you haven’t even given any thought to retirement and figure that you’ll worry about it later, maybe when you make more. Or perhaps you are older and think it’s too late to save for the future, since it’s so close.

What if I told you that money invested now is MUCH more valuable than money invested “later,” would you believe me?

Let me introduce you to the term “Compound Interest.” According to dictionary.com, compound interest is defined as, “interest paid on both the principal and on accrued interest.” In simple terms it means that the money you earn on your investment (or savings) earns it’s own money. Let’s use a simple example to illustrate:

Suppose that our friend Bob has $100 to save. He does his research and finds a savings account that pays 10% (yes, I know this isn’t a realistic number, but it makes the math easy, so bear with me). He opens an account and deposits the $100.

One year later, Bob opens his statement and sees that he now has $110 in his account! His initial deposit earned $10. [$100×1.10=110] Bob decides to leave his initial deposit and the earned interest alone for another year.

The next year when he opens his statement, what does it say? Does it say $120? Nope! It reads $121! That extra dollar is due to compound interest; that $10 of interest he earned last year earned 10%, too. [$110×1.10=121]

This happens year after year after year, each year’s interest earning interest during the following year. If Bob left the $100, and it’s interest, alone for 40 years (i.e. age 30 to 70) he would have $4,525.93! If he instead pulled out the $10 interest payment each year and put it in a cookie jar, he would have only $400 in that jar, to go with his $100 in the bank. Pretty incredible, right?

So now you are thinking, great example, but how do I apply this to my situation? Great question, I’m glad you asked!

Once you are out of debt and have an emergency fund saved up, start saving for retirement! Some day you will retire, either by choice or due to health or a layoff. Social Security will probably not pay enough (assuming it’s still there) to support you in your current lifestyle. If you are young and start now, you should be able to retire comfortably. If you are not so young, you need to start now so you have something to help you out. Even a little bit invested now will help you out later.

Now for your financial nerds out there, I know that savings accounts don’t earn anywhere near 10%; this a very basic example of how compound interest works. Also, investments (stocks, bonds, mutual funds) don’t earn ‘interest’ but have a rate of return, which I’ll go into in much more detail in a later post, but the idea that any growth in your fund grows with the original investment still holds true.

So, are you ready to start saving?

April 7, 2014