I have been practicing financial planning and tax planning for 3 decades. Today, there is a disease spreading like a flu outbreak at your local elementary school. I call the disease the “$100K and broke”. These people are college educated, with full-time jobs at companies that provide excellent benefits, Most are not contributing anything at all to their retirement and savings. How are they living from paycheck to paycheck and getting behind financially while making so much money?
I was reminded of this Aesop’s fable this week at Toastmasters. Kimberly Hardman presented a speech about The Grasshopper and the Ants. As I listened, I could not but think of the $100K and broke today as they live paycheck to paycheck.
Fall is The State Fair of Texas, College Football, Oversized High School Mums and Halloween. It is also the time of year where most companies begin to offer open enrollment for your benefits.
Benefits are complex and the pressure to make the right decision for you and possibly your family increases each day you wait. It is important that you learn how to make your best money moves during your open enrollment.
Your Five Best Money Moves for Open Enrollment
Welcome to the Great State Fair of Texas.
Established in 1886, the State Fair of Texas promotes agriculture, education and Big Tex. Today the Fair opens for 24 consecutive days and is the longest-running fair in the USA. (It’s Texas – everything is bigger)
Big Tex made his debut in 1952 and yes, it is true, he started out as a Santa Claus. Standing 55 feet tall decked out in his size 96 boots, he is a representative of everything Texan. A visit to the fair is not complete without a picture including Big Tex.
Besides being the ultimate host, Big Tex is a great teacher of sound financial principles.
Five Money Things I learned from Big Tex
I received a call one morning from a college friend who asked if we could have lunch that day. I could tell from his voice that something was troubling him.
We met for lunch and after ordering our food, I asked what was going on that he needed to meet so suddenly. His answer is a common problem that nearly everyone experiences.
“I am having dinner with my parents tonight and I want to talk to my parents about their money, but I don’t know how to ask them.”
Thankfully there is a great way to open that conversation today thanks to the Queen of Motown Aretha Franklin dying without a will.
Approach your parents with “When I heard about Aretha Franklin, I wondered whether you had a will and that led to other questions running through my head.”
Five Money Conversations Every Family Needs to Have
Lifestyle Inflation is the greatest inhibitor to creating wealth. Last week, I discussed how debt is the biggest lifestyle mistake. Today, we are going to talk about how lifestyle inflation creeps into our decisions without our knowledge.
Two of the major purchases that we make in our life is the purchase of a home and a purchase of a car. Our credit score and our debt to income ratio are critical in getting the best interest rate for our purchase.
Additionally, there is the decision when making those purchases of how long will I make payments? It seems simple, yet the longer the payment the more you are paying someone else and making them rich. Take a moment and go back to last week’s blog and see the example of how to cut down the interest you are paying someone else.