Borrow Smart, Repay Smart: Spend Less, So You Can Save More

Dear Borrow Smart Family,

Is it me, or does the word “budgeting” sound like something Jabba the Hut burped out?

I know, I know; budgeting can seem tedious, and it can take some time to figure out. However, there are a few resources and tips that can make it a lot bearable, if not easy to digest.

My lesson #28 shares this: Spend less, so that you can save more.

Seems like a simple idea, right? Most of us, are typically on a fixed income – with maybe an annual or quarterly bonus that comes along – so it’s essential to identify small ways to be able to put more money away for long-term goals.

Those tiny wins can stack up significantly over time (40K+ even) as I delve into it in my video below:

Big expenses are easy to track; it’s usually a lot of those little things like a book subscription or daily coffees, that add up over time. I challenge you this week, to grab your journal and your last month or so of statements to comb through your expenses to see: Where are you able to make a small (Or large) edit in your spending?

Let me know in the comments what you think!

 

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Borrow Smart, Repay Smart: Prioritizing Your Cash Flow

Dear Borrow Smart Family,

Managing your bills can be a juggling act. While ideally we pay everything off and save to our heart’s content, reality shows us that income waxes and wanes over time.

A foundational piece of advice that isn’t always shared, is that the order in which you prioritize your cash flow decisions can greatly impact your financial position over time. While paying off your mortgage right away can seem like a no-brainer, there are a couple of other steps to consider:

#1 Establishing cash reserves (Check out my popular budgeting video here)
#2 Eliminating “bad” consumer debt
#3 Building liquidity

I go more in-depth on my whiteboard here:

 

How might changing the order of your cash flow decisions influence your financial position over time? Let me know in the comments below!

 

 

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Borrow Smart, Repay Smart: The Law of the Broom

Dear Borrow Smart Family,

Happy Monday! As some of you may know, I’m a certified performance coach via Todd Duncan’s High Trust coaching group – where I coach some of the top-producing mortgage professionals around the country. I recently shared the below with my clients, and I thought it could be poignant for any of you that are also business owners. I wish you all the best!

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In the New York Times’ best-selling book, “High Trust Selling,” Todd Duncan shares the Law of the Broom – to build your business up, you must CLEAN it up. Early on in my career I adopted this concept, and it has been a cornerstone concept for me ever since. I utilize it when coaching my mortgage advisors, and you, my coaching clients I speak to regularly. Many salespeople only spend a small portion of their time selling, because they have to spend the bulk of their time managing the logistics around selling. Below, I delve into how to create work boundaries for yourself, and how you can best delete it, delegate it or automate it. 

 

What might be something you able to delete, automate or delegate today? Let me know in the comments below!

 

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Borrow Smart, Repay Smart: Paying for College (Part 3 of 3)

Dear Borrow Smart Family,

Happy Monday! Today I wrap up Part 3 of a three-part series, that I created for you to help your children afford a college education. Saving for college is not for the faint of heart, ladies and gentlemen; But the outlined tools can help get any parent get organized with a plan in-hand in a relatively short amount of time.

Check out  Part 1 + 2 if you haven’t already:

Part 1: Ensuring as a homeowner how to integrate a home loan strategy into your college savings strategy

Part 2: what does college cost? A great online calculator that helps you reverse engineer your savings plan and keep you on track

Part 3 (in the video below), I delve into 529 plans and why they may be a good option to store money you are planning to save for your children’s college education (Please be sure to consult with your financial planner or tax advisor on this).

 

I wish you all the best!

 

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Borrow Smart, Repay Smart: Paying for College (Part 2 of 3)

Dear Borrow Smart Family,

Happy Monday! A few weeks ago I shared with you Part 1 of Paying for a College Education; see my previous post here.

We know that tuition costs can be prohibitively high; they have risen roughly 5% year over year, for the last ten years. As a parent, I wanted to record this to help other parents or future parents, begin the planning process of helping your children to afford a college education. The first step to really beginning the conversation, is to decide as a family what you plan to contribute. Do you know what college you’d like your child to attend? If so, you have the ability to reverse-engineer your savings plan, which ultimately involves big-picture budgeting, including your home mortgage.

in my below video, I show you how to begin the planning process, including how to leverage a free online tool from CollegeBoard to identify what your college savings plan could look like.

I wish you all the best!

 

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Borrow Smart, Repay Smart: Week 23 – Three Steps to Creating the Financial Future You Want

Dear Borrow Smart Family,

Happy Monday! I hope the sun is shining down on you.

I wanted to share something below that I created for you. Mortgages, Money and Life is my 52-week lesson book, that guides the reader each week of the year to focus in on creating wealth, owning a home and making important decisions with money. Because I think these lessons are so valuable, I’ve decided to share these lessons here with you.

Week 23 hones in on peeking through the lens, to see the financial future that
you want. Throughout my journey as a branch manager, certified performance coach and speaker, I have found that when it comes to money, all most people really want is this: to gain more freedom with their money, have less financial stress, and more time to themselves to enjoy LIFE. So grab your journal, your pen or pencil and click the video below, where I challenge you to think through the following 3 steps:


I wish you all the best!

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Borrow Smart, Repay Smart: Week 22 – How Do You Define Financial Safety?

No ones likes to consider the worst when it comes to their finances, but it’s good to be prepared for anything. As the old saying goes, “Prepare for the worst, but hope for the best”.

At Sierra Pacific Mortgage, it’s my goal to continue the efforts of our mission, to empower everyone to achieve a better financial future. That’s why I created my book Mortgages, Money and Life, to impart 52 financial lessons for each week of the year.

Week 22 in my book, asks you this: How do YOU define financial safety for you and your family? In my video below, I drill down on simple ways you can pose this question to yourself, and clarify if your habits are lined up with your definition:

 

I wish you all the best!

 

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Borrow Smart, Repay Smart: Paying for College (Part 1 of 3)

Dear Borrow Smart Family,

in the US, getting a college education can be prohibitively expensive. A 2019 study conducted by the US department of education found that For the 2016–17 academic year, annual current dollar prices for undergraduate tuition, fees, room, and board were estimated to be $17,237 at public institutions, $44,551 at private nonprofit institutions, and $25,431 at private for-profit institutions.* Ultimately, the way you handle the financing of your house, impacts your ability to achieve your short and long-term financial goals, including college savings.

Below, I dig into part 1 of a 3 part series, for parents or soon-to-be parents who have decided they want to help their children afford a college education.

Make sure your mortgage is efficient for the savings strategy you need. Over time, your financial story and life situation will change. Having a mortgage checkup is a great way to ensure that your mortgage still aligns with your current goals. To schedule a mortgage checkup, either reach out to your preferred SPMC Loan Officer on our team or e-mail borrowsmart@spmc.com. I wish you all the best!

* SOURCE: U.S. Department of Education, National Center for Education Statistics. (2019). Digest of Education Statistics, 2017 (NCES 2018-070), Chapter 3.
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Borrow Smart, Repay Smart: How to Budget on a Variable Income (And Not Lose Your Mind!)

Dear Borrow Smart Family,

We all have a lot of competing financial responsibilities. Sometimes, it can feel like too many – especially if your income varies because of self-employment, a commission-based salary, or reliance on arbitrary bonuses. But have no fear! In the below breakdown, I share a simple “3 Bucket” budgeting system for understanding how to allocate your funds throughout the month.

 

I wish you all the best!

 

 

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Borrow Smart, Repay Smart: Check in on your Goals!

“The trouble with not having a goal is that you can spend your life running up and down the field and never score.” – Bill Copeland

Think back to the beginning of 2020 – did you you set some financial goals for yourself, that you shared with someone else? Whether that was to save more money, start working with a financial advisor, or buy a big ticket item – what were your aspirations for this year?

I challenge you to grab a piece of paper with your drink (Coffee, tea, WINE), and look back on the last 5 months of this year, to identify what you’ve made progress on relating to your goals. don’t get stuck on what you haven’t accomplished yet, but focus on the 3-5 things that you’ve felt you’ve made progress with your money.

Maybe you were able to finish paying off a credit card, get your kids on an allowance system, or heck, that may mean that you didn’t going into debt during COVID-19. Anything you can think of,  I promise there’s a positive in there. So write it down, raise a toast to yourself, and Be. Confident.

Then, work on how you want to finish up the year – maybe you sit down with your spouse to do this – and think through the next month, next quarter, next week.

 

If you ever have questions, Please reach out to my team and I. We’re here to help you with these things, when it comes to real estate or money questions. I wish you all the best!

 

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