If You Want To BE Rich, You Have To THINK Rich

It's Sunday afternoon. Many of us are preparing to go back to work tomorrow. If you are looking forward to it...if you are heading into the office tomorrow because you want to...

Congratulations! You are in control of your life, your money, your dream.

But if you are already dreading tomorrow, feeling depressed and irritable because you have no choice but to go to work tomorrow, then your need for money controls the rest of your life. And that is NO FUN!

But don't feel bad. You are in good(?) company. Most of the people in the world are controlled by the need to make a living. 

Unfortunately, that need is also what causes most people to remain tied to a job they hate for their entire working life. I mean, let's be real. It takes money to make money, right? And besides, after working all day and then taking care of family...who has time to do anything to make more money? We didn't go to college. We don't have fancy degrees. How are we supposed to earn enough to get rich?

Time to change that thinking! As long as you are content to trade time for money, you will never be rich. Even folks with advanced degrees often trade time for money. Sure they can charge more for that time. And they may make enough that you consider them rich. But I'm talking about being OBNOXIOUSLY rich! And if you don't think that's possible for you, you're wrong. But what's even more important...if you can change your thinking, you can create the type of income most really rich people do. Instead of trading time for money, they trade ideas for money. They solve problems. They help others. Trust me. The world will beat a path to your door, credit cards in hand, if you can solve their problems. 

I'm now hearing the chorus of despair. "But I don't know anything. How can I solve other people's problems?" 

You don't have to recreate the wheel. The world is full of product and services that solve people's problems. Do you know people who are struggling to lose weight? There are products for that. Do you know folks who are unhappy with how they look? There are a myriad of cosmetics and skin care products that will help. I don't care what someone is struggling with, there are probably products out there to address it.

How does that help you? Two of my main income streams are network marketing and affiliate marketing. When you are a network marketer, you make a small investment to join a company as a representative for their products. In exchange for that investment, these companies usually provide you with training, marketing tools, and a commission for every product you sell. You can also recruit other reps and get paid on a portion of their sales. Yes, it does take an investment. But if you join a legit company and a good team, the support and training you receive will make the investment worthwhile.

In affiliate marketing, you also promote others' products for a commission. There is generally no investment required to become an affiliate for a particular product. But there is also very little support. Companies may give you some marketing blurbs or banners ads and such. But usually there is no training. There aren't any teams to support you. You are strictly on your own. 

Can you get rich with network marketing and affiliate marketing. I'll be honest. Some do. Most don't. But what they can do that's priceless is this. They are often the first step to changing that time for money mindset. And as you learn marketing skills and how to network, as you meet people and build relationships, they are often the bridge to starting a business that is truly yours. If you had told me when I started over 40 years ago that one day I would be a best-selling author with multiple income streams, I would have said you were crazy. But here I am. All because of what I learned and who I met in the network marketing and affiliate marketing industries. 

The biggest determining factor isn't what vehicle you use...network marketing, affiliate marketing or something else. The thing that will make all the difference is your mindset. If you truly believe in your heart that the only way to make money is to trade your time for money, you are limited. There are only so many hours available to you in a day. But if you grasp the concept of trading IDEAS for money, you can work a couple of hours a day and make literally thousands of dollars, once you learn the skills. 

If you want to become wealthier, whatever that means for you, begin by working on changing your mindset. Sometimes that means you have to work on your self-image. If you read my post What My Parents Taught Me About Money, then you know I was raised to believe that people like me can't get rich. It took me many years to get past that limiting belief. 

If your self-image is good, but you feel you lack skills, then the answer to that is to learn! Join my email list and I'll teach you everything you need to know.

Time for you to take action. If you need some mindset work, then do it! Change what you read. Change what you listen to. Change who you run with. Surround yourself with people who do what you want to do. Read what they read. Read what they write. Listen to their podcasts. You may find yourself leaving your old circle behind. But sometimes you have to let go of the past to move into the future.

If you are ready to learn how to trade ideas for money, you already  know what to do. Hop on my list. I promise I'll be here for you. I love my list. I'll take good care of you.

5 Steps To Maximize Your Credit Score

After digging myself out of a mountain of credit card debt, I am a believer in locking those credit cards away. However, there are times when the thoughtful, correct use of credit cards is actually a good financial decision. (See my post Cashing In On Cash Back Credit Cards for example).

Even if you're not using your credit cards, your credit score can still impact your daily life. Employers may look at it when making a hiring determination. Insurance companies may check it. If you're trying to rent a home or apartment, your credit score will be taken into consideration. And of course, you can't buy a home or a car without decent credit. That's why it's so important to maximize your credit score...even if you are trying to limit your debt.

If you already have a stellar credit score, good for you! Keep it up. But if you're like so many people, especially right now, your credit score could use a little work. The good news...it's possible to improve your credit score. And it's not really even that difficult. 

First, it's important for you to learn how your credit score is calculated. I am not going to go into that here. You can Google it. And I am not going to give you a detailed plan to  improve your credit score. Everyone has a different situation.  However, the general steps I am going to share are what helped me rebuild my credit score. They should work for almost anyone. Once you have these completed, you can do more in-depth research on ideas that fit your unique situation. Here are my 5 steps to maximize your credit score:

1. Build your credit file. No credit is almost as harmful as bad credit. It's important that you actually have accounts IN YOUR NAME that report to all 3 major credit bureaus. 

There are several ways to do this, even with a low credit score. There are credit cards specifically offered to those with bad credit to help raise your score. The interest rates are high and there is usually a hefty annual fee. However, since your track record may indicate you won't pay your bill, you can hardly blame these companies for making money where they can. But if you use your new card responsibly, they can be an effective way to start rebuilding your credit.

There are also secured cards. You put money into an account. The amount in your account will be your credit limit. The plus side of this is you usually get a bit better terms than the 'credit builder" cards because the money is already in an account, ready to pay your bill if need be. The bad side is you can only spend up to the limit of what is in your account. But again, a secured card can be a great way to build or rebuild your credit.

A third option is to have someone add you as an authorized user on one of their credit cards. Just make sure they are paying their bill on time. And make sure you pay them your share just as you would any other bill.

2. Make your payments. The fastest way to trash your credit is to make late payments or to miss them altogether. Your payment history is one of the things credit bureaus consider when determining your score. The more on-time payments you have, the better you look. Make sure your never miss a payment by more than 29 days. If you are 30 days late, that can be reported to the credit bureaus as a late payment and hurt your score. Get in the habit of paying all your bills - even the ones that don't necessarily report to the credit bureaus - in full and on time.

3. Pay your past due accounts. If you have some accounts that are behind in their payments, now is the time to get them caught up. Otherwise, you will just continue to add late payments to your credit report. And eventually, these companies will try to get their money. Having accounts in collections will definitely put a ding in your credit score. If you are having trouble with your debt, consider talking to a credit counseling agency. They are often able to negotiate with companies to get you lower payments and interest rates. 

4. Pay down your balances. Even if you're not behind on your bills, you still want to pay these down. The credit bureaus look at something called your Credit Utilization Rate when determining your score. (Check out the great article on nerdwallet).  If you are using a large amount of your available credit and only making minimum payments, that can signal trouble to the bureaus. Paying down these balances can definitely help improve your scores.

5. Be careful how you apply for new accounts. Yes, you may need to open a new account for a variety of reasons. But often, an application for credit can cause a hard inquiry on your credit report. When the credit bureaus is calculating your credit score, a large number of hard inquiries all at once could indicate you are in financial trouble and seeking credit to help....credit that you may not be able to pay back. Don't apply for too many accounts at once and always ask if your application is going to result in a hard inquiry. Often it is possible for lenders to pre-qualify you for credit by doing a "soft: inquiry, which will not impact your credit score in any way.

Stop Hoarding Cash!

I know....

With all the craziness in the world right now, the tendency to start hoarding is difficult to overcome. Especially since, even now, it is still not unusual to see empty shelves at the grocery story.

But remember, the purpose of prepping is to have enought, not to hoard and deprive others of necessary supplies.

Unfortunately, that tendency to hoard also pertains to cash. I have had several people ask me lately if they should withdraw most, if not all, of their money from the bank. 

My answer? Absolutely not!

First, this is not the type of situation where ATMs or electronic payment systems are down. You can still go to the bank and get cash if you need it. You can still pay your bills online and use your debit card to buy your groceries. If you have enough cash on hand to get you through a short disruption, you are good.

Second, your money is safer in the bank than it is in your home, It's insured. If you bring it home and you are robbed, or your home is destroyed in a fire or other natural disaster, you just basically lost all your money. Insurance may cover some of that loss, but probably not all of it.

Third, if your money is sitting at home in a shoe box, it is not working for you. It's not earning interest. It's not growing and building wealth. Until you need it to pay for something, it's just sitting there. Doing nothing.

"But what if the unthinkable happens and the banks collapse? How will I get my money?"

I suspect if it things were getting that bad, there would be enough warning signs for you to go withdraw whatever you think you needed. But let's be realistic. If the economy totally collapses, the odds of your cash being useful for anything other than kindling are pretty slim. So instead of hoarding cash, I would start stockpiling things that could be bartered in trade. 

Check out my article Bartering: Get What You Need Without Cash to get started.

And stop hoarding cash!

If Your Finances Aren't in the Best Shape, It's Time to Own It

I admit it. When it came to my finances, I turned a blind eye to my issues for a very long time. I knew counting how long it took a check to clear so I knew when I could pay my bills was risky. That charging everyday items on my credit cards because I didn't have enough cash on hand pay for them wasn't smart. That paying bills a day or two late so I wouldn't get hit with a ding to my credit score while waiting for my next paycheck was a clear sign of trouble. Sometimes I would miscalculate and then my husband would ask why the cable or the phones were shut off. I would try to make up some excuse, but we would still have a huge fight over my money "management." But I kept the blinders on and ignored the warning signs. I was trying to just hang on for the short-term until I figured out a way to fix everything...without sacrificing anything on my part.

But then the day came when I just couldn't juggle things anymore and I knew it was time to tackle my money problems head-on or I was going to wind up in serious financial trouble.

If you are on the brink of financial problems, you are almost certainly experiencing warning signs as well. You're paying bills late. You're fighting with your spouse over money. You pray there aren't any emergencies because you don't have the money to cover them. And you may also be ignoring the signs, hoping to hang on until something miraculously changes to save the day. Well, I'm here to tell you that this is one time you shouldn't wait for the miracle. If you are headed for a financial mess, it's time to pull your head out of the sand, take off the blinders, and own your problem.

I get it. It's embarrassing to admit you've let your finances get out of control. Maybe it wasn't entirely your fault. You lost your job or had an unexpected big expense. Maybe you have other issues like low self-esteem or depression and shopping makes you feel better. Maybe you feel like you have to spend money on your friends and family to earn their love. Whatever the reasons, it doesn't matter. It will be a lot more embarrassing if you wind up in court for debt, or have your wages garnished, or have to file bankruptcy. Now is the time to admit your finances are out of control and fix it!

I know how easy it is to get into money difficulties. It happens so slowly. Lunch with friends...your treat. Charge it. A little weekend getaway with your spouse on the credit card. You'll pay it off when the bill comes it. But then the car needs repairs and your child gets sick. But that's okay. You'll get it paid off next month. But then there's a great sale on shoes and you really love them and you've been working hard so you deserve them. And the dog needs a trip to the vet and suddenly you're making minimum payments and then the interest starts to pile up and suddenly....you're under a pile of debt and you don't even know how you got there.

If you were experiencing symptoms of illness, you wouldn't ignore them. You would make an appointment with your doctor to treat the problem before it became serious. If you are experiencing signs of financial illness, you shouldn't ignore them either. It's time to slow down, take a realistic look at your financial situation, and get whatever help you need. Before your financial illness becomes serious. 

If you're not sure how to start, I suggest you start here:

Thoughts on Things Financial: Your Guide To A Chaotic Money World Paperback

Best $4 you'll spend all day. 

Peer-to-Peer Car Sharing...Money In The Bank Or An Accident Waiting To Happen?

I just learned of something new! A friend of mine who has been needing some extra income has joined the ranks of the sharing economy. No, she is not renting out her house on Airbnb. She is not driving for Uber. She has joined a peer-to-peer car rental company.

I wasn't sure what that was, so of course I did a little research. And what I discovered has me concerned that even though she seems to be making some pretty decent money, the risk don't outweigh the benefits.

What exactly is peer-to-peer car sharing? It's pretty simple. When she isn't using her card, she rents it out to strangers. There are several sites you can use for this. She has listed her car on Turo. But I found a few other sites as well such as Getaround and HyreCar, She lists her car on the site, much like you might list your house on Airbnb with pictures and all the details. She gets to set her own price. Once someone rents her car, she simply meets them, gives them her keys, and then picks up her car at the end of the rental period. Sounds like an easy way to make a few bucks, right?

Right now my friend says she is making around $500 a month renting out her car. I have not asked for proof of that claim. But Getaround says that owners can make as much as $10,000 a year by renting out their cars. Not bad for little to no work!

The companies say that they screen every renter and they can't sign up if they've had a major accident. And they do have insurance to cover their car owners. And this may be fine for someone who is renting out their Kia (nothing against Kia. Just a comment on their affordability). But I'd be a little hesitant to rent out my top-of-the line brand new Jeep Gladiator. If someone totaled my vehicle, I'm not sure some third-party insurance company would pay me it's true value. Unless my own insurance policy covers the driver in this case...which it doesn't. I asked. I could be stuck with some very expensive problems. 

So far, my friend has been lucky. No damage to her car. She says she talked to other renters who told her to make sure she got to know the people renting her car before she gave it to them. I'm not sure how that would be possible. But she is a pretty good judge of character, so maybe. And she says she always inspects the car with the renters before and after each trip, noting any damage. Much like a regular car rental company does. Plus she always asks the renters where they are going...just in case. 

So what do you think? Would you rent your car to a total stranger? It seems to be working well for my friend. But as much as I like easy ways to earn some extra income, I think I'll sit this one out.

Do you have any experience with peer-to-peer car sharing? Let us know in the comments. 

Cashing In On Cash Back Credit Cards

I know, I know...

I told you credit card debt was bad. And it is. You don't want it if you can help it. And if you have it, you want to get rid of it as quickly as possible.

But...

What if you could use your credit card to make a little extra money each month and not rack up credit card debt? How cool would that be?

It is possible. But it takes the right kind of card, the right kind of purchases, and the will-power to not go deeper into debt.

First the card.

You'll need a credit card that pays you cash back on purchases. These are credit cards that pay you back cash - real dollars and cents - for making purchases with their card. Typically, you will earn between 1% to 6% of each transaction, depending on the card you use. Some cards pay a flat rate on every purchase. Others pay more for certain types of transactions (gas for example) and less for everything else.

Next the purchases.

You will need to know what types of transactions earn cash back. While many do give cash back on everything, others are more selective. The most common are groceries and gas. But I have seen cards give cash back on everything from transit costs to streaming. Others will give a low flat rate on any purchase and bonus rewards on other purchases such as restaurants. There are even cards that change the categories for cash back purchases periodically. So in January you might get cash rewards on gas and groceries and in April it's travel and dinner.

Now comes the will-power part.

Once you have your cash back credit card and you know which purchases qualify for cash rewards, you use the card to make those purchases. If it pays cash back on everything, you use it for everything. If it's groceries, you use it everything time you go to the grocery store. Then, and this is where the will-power comes in and it's important, you pay the entire credit card balance. Every month. Without fail. It doesn't do any good to earn 1% cash back if you're paying 18% interest on your balance. You absolutely MUST pay off the entire balance each and every month.

If you pay off the balance every month, you can collect the cash rewards without paying any interest on your purchases. And that adds up to money in the bank. Use that extra cash to add to your emergency savings. Or place it in your regular savings if you already have your rainy-day stash fully funded.

Passive Real Estate Investing...Is That A Thing?

If you're like me, you've had a rental property before...and quickly sold it, swearing "never again!"  

But what if you could invest in commercial and residential real estate without having to any of the actual work involved in managing your property? Sounds too good to be true, doesn't it?

Surprise! This is actually a viable way to earn some extra income. In fact, it can be one of the most powerful ways to put your money to work.

There are a TON of companies that give you the ability to invest in commercial and residential real estate projects without having actually to do any of the heavy lifting yourself. It's called passive real estate investing, and it's a real thing. And at the end of this post, I will give you the two companies I found that appear to be among the best. 

But first, what is passive real estate investing?

Put simply, passive real estate investing is investing in real estate without any real hands-on effort from you. No rent collecting. No property management. No maintenance. Nothing. You don't have to deal with tenants or 2:00 AM phone calls about noisy neighbors or leaky faucets. No active participation whatsoever.. And no, I'm not talking about buying the property and then hiring a property management firm to manage it for you.

I am talking about investing in a Real Estate Investment Trust (REIT). 

REITs are companies that invest in income-producing real estate. They give you the ability to invest in real estate without having to purchase and maintain the actual property. And you don't have to deal with tying to get financing through a bank. We all know how time-consuming and stressful that can be! Through an REIT, you can often get started investing in real estate for as little as $500. 

Real estate values tend to appreciate over time. Rents also tend to rise over time. And real estate tends to be less volatile than stocks or bonds. Then there are the tax benefits related to real estate investing. Investing in an REIT can be a good strategy to generate passive income. 

Of course, real estate investing does come with risks, as does any form of investing. If the value of your property portfolio goes down or the housing market in general declines, you can lose your investment. So always do your due diligence and research before making any investment. No investment can guarantee you either a return or even protection of all your principal. And if they say they can, you might want to walk away. But overall, real estate has proven to be a highly stable, lucrative investment. And an REIT allows many people who couldn't otherwise afford to purchase income-producing properties an opportunity to invest in real estate. 

I am not an expert on REITs or passive real estate investing. Before you decide to invest, I would find someone with real knowledge of real estate. I have done some research though and have found two REITs that have decent reviews. I am not an affiliate for either of these companies. Both have their pros and cons. 

Fundrise: Founded in 2012 and headquartered in Washington, DC, Fundrise is one of the leading real estate investment platforms.

DiversyFund: With a $500 minimum investment and no management fees, DiversyFund is a low-cost entree into the often high-roller world of real estate investing. 

If you have often dreamed of being a real estate mogul, or if you're just looking for a way to add some passive income to your financial strategy, investing in an REIT might just be for you. 

A Financial Accountability Partner? You Got To Get One of These!

 

My husband does it for me. And I do it for him. We it do for each other regularly...

We each are the other one's financial accountability partner. That means we check in with each other regularly about our spending, saving, and budgeting. Knowing he has to talk to me about the set of new pipes he wants for his bike or that I have to confess that I spent a bit more than expected on new flowers for the garden really helps us keep on track with our financial goals.

I can already hear some of you rearing up in indignation. Why should I have to be accountable to my spouse about my spending. I make my OWN money! It doesn't have to be your spouse. A financial accountability partner can be anyone who agrees to help encourage and support you and ensure that you are keeping on track with your financial goals. But here's the reasons why it works well for us as a couple.

An accountability partner of any sort is usually a two-way relationship. Like your workout buddy at the gym. You're both helping each other meet your goals. And when you're both accountable to each other it can actually help strengthen your relationship. Plus our individual financial goals directly impact our family financial goals. So it just makes sense that we work together to keep each other on track.

I realize that not everyone has the kind of relationship my husband and I have. If you are looking elsewhere for a financial accountability partner, there are some traits you should look for.

1. You will be discussing your financial goals and perhaps even your current financial status. So you will want to be sure your partner can be trusted with this information. 

WARNING!!! Your partner does not need to know your bank account number, SSN, or have access to your credit card or bank statements. I don't care how much you trust this person. If they ask for this information, look elsewhere.

2. Your partner must be able to be totally frank and honest with you. If they are afraid to call you out for slacking on your goals because they fear it might damage your friendship or make you angry, they are not a good partner. (On the flip side, you need to remember that your partner is truly trying to help you reach an important goal...and at your request. It does a great disservice to both of you if you get defensive or angry when they hold you accountable.)

3. Your partner has to be available. That means they need to have the time and the desire to help you. If they don't understand the importance of your efforts, or they don't have the time to talk to you regularly, they are not a good fit. 

4. If it's a family member, you need to be sure they are able to give you honest feedback. If your (adult) child or sibling is acting as your financial accountability partner, it is imperative they have nothing to gain or lose by you meeting your goals. 

Once you have selected your partner, it's important to establish some guidelines. You can write a formal agreement which you both sign. Or you can simply discuss the details of your new relationship. Whatever works for you! Just be sure you include details like how often will you discuss your goals. Will you meet in person or will it be via phone or Zoom? You might even want to create an agenda for these meetings. Again, whatever feels comfortable for you and your partner.

Do make sure your partner is fully aware of what you are trying to accomplish. Which means you need to be sure of your goals. I'm sure you've heard of SMART goals. If not, Google it. You'll find all the help you need to create Specific, Measurable, Attainable, Realistic, Time-Based financial goals for yourself.

Live Below Your Means

Do you truly want to be able to set aside a sizeable emergency fund? Send your kids to college? Not have to worry about money? Here's the secret...

Live below your means.

By now, you have your budget finished. You know exactly how much to you need to save to reach your goals. But the true ticket to financial freedom is to spend less than you bring in each month.

Once you learn to do that, you can kiss debt goodbye. If you have already gotten into debt, you can start paying it off. You can start putting money aside for emergencies. You can start saving for your future.

This may be a struggle in the beginning, especially if you and your family have been used to freely spending. But it will be worth it in the end when you can truly say you are financially free.

How do you get there? Here are some simple steps:

1. Get out that budget you created and take a good look at where you spend your money. You are looking for things that you can eliminate. I used to stop a Starbucks almost every day for coffee. At almost $6 a cup every day, that was $180 dollars a month...for coffee. $2160 a year....just on coffee! Just by stopping this one habit, I saved over $2000. 

My husband and I ate out several nights a week. When you consider even fast food meals can now run $10 or more, that was another expense that added up substantially. 

300 channels of cable TV that we never watched. 

These are some examples of expenses that we were able to stop and in the process save several thousand dollars each year. 

What unnecessary expenses can you eliminate from your budget? Get out that budget axe and chop out everything you can reasonably eliminate!

2. Once you've cut every possible unnecessary expense you can, it's time to look for ways to spend less on what's left. We switched phone carriers to get a better cell phone plan. The minor changes in coverage were offset by the $200 monthly savings. 

We used to buy a lot of prepackaged foods like salads and precut veggies. Buying them whole and cutting them myself saved us money and the vegetables were fresher. Same with meat. Instead of purchasing already diced chicken or shredded pork, I bought chicken breast or pork roast and cut it myself. These may seem like little things, but every little cut adds up. Add that to what you saved in step 1 and you can put aside a few thousand dollars every year.

3. Increase your income. Once you've cut as much of your spending as possible, look for ways to increase your income. If 2020 taught us anything, it's the need for multiple streams of income. If you are one of the millions who lost your job during this pandemic, imagine how much less stressed you would be if you still had some money coming in from other sources. No matter what your business or job is, there are ways to bring in additional income that do not interfere with what you are currently doing. If you are looking for ways to add some additional income streams to your business and need some guidance, email me at melodieanw@smartaboutstuff.com. 

Learning to live below your means can be challenging. Or it can be fun! I love looking for ways to eliminate more spending from my budget. It's like a game and every time I win, I make money! It's a matter of attitude. If you look at it as sacrifice and deprivation, it will be hard. But if you look at as a path to financial independence, you'll be amazed at how enticing your future will look.

Make a Budget!

Do you REALLY want to control your spending? Do you REALLY want to have money to put towards building your emergency fund or purchasing supplies? Yes? Then you need a budget!

Now before you cringe and get all worked up over numbers and percentages and what not, just take it easy. It doesn't have to be complicated. You don't need to account for every penny you spend. The goal is to help you live within your means and make sure you are on track to reach your goals. Whatever budgeting system you use to do that is okay!

A budget is simply a tool that shows how much money you expect to earn and how much you expect to spend. It doesn't have to be overly restrictive. Think of it as a way to plan how much you can spend and how much you can save each month. 

Sounds easy, right? So why does the word "budget" strike fear into the hearts of many? And why do so many fail to have one? Or if they do have one, fail to follow it? Simple truth...most aren't willing to do what it takes. A budget only works if your are totally honest about your financial situation. And most of us are truthful about our income, But when it comes to expenses, not so much. It can be hard to admit you spent $100 on runs to your favorite coffee shop last month. Or paid $50 dollars for that gym membership you never use. In order for your budget to work, you must be accurate about your spending.

If you do this properly and honestly, a budget will show you where your money is coming from, how much you get each month, and where it all goes. And once you know that, you can make the necessary adjustments to reach your goals - either by finding ways to increase your income or decrease your spending, or both.

I am not going to get into the nuts-and-bolts, nitty gritty of how to make a budget. There are plenty of tools and apps available for that. What works for me may not work for you. It can be as simple as writing everything down with pen and paper to creating a spreadsheet on your computer. As long as it includes ALL of your income and ALL of your average expenses. But I do have some tips that will make it easier.

For my entrepreneurs in the crowd, when figuring your monthly income, I recommend always using your lowest-earning month as your base income. Then if you earn more, it's a bonus! 

If you are still working on building your emergency fund, don't forget to include unexpected expenses in your overall budget plan. Until you you have that emergency money stashed, a pricey car repair or medical bill can totally derail your budget. So include that in your plan so you'll be ready.

If your income is more than your expenses, YAY! Put 20% of your money into savings. If your have more money going out than coming in, it's time to take a serious look at making some lifestyle changes if you want to reach your goals. 

Your budget isn't carved in stone. Things change. Priorities change. Jobs change. We move. We have kids. Our kids have kids (and if you think that doesn't impact your budget, talk to me! Being a grand can be expensive!). Make sure you review your budget every few months to ensure it's still working for you. 

Once you have your basic budget ready, fine-tune it to make it fit your needs. As you get more familiar with your income and spending habits, you'll see areas where you can make changes. Spending too much on credit card payments? Stop using them unless you can pay it off each month. Have a tendency to overspend on certain things?  Read my post The First Step to Saving Money - Spend Less Than You Earn for some tips on spending less. And keep learning. Improving your financial skill wand learning how to make your money work for you will greatly increase your ability to meet those financial goals!

Financial Wellness

Financial wellness. You've probably heard that term a lot! It's one of the hottest buzzwords. Network Marketers use it to get you to join their programs. Financial consultants use it while offering you their services. Coaches and gurus use it. Even some health professionals use it. EVERYONE wants you to have financial wellness.

But what exactly is "Financial Wellness"? And how do you know when you've got it?
According the Consumer Financial Protection Bureau, you are financially healthy when you have financial security and financial freedom of choice, both in the present and in the future. 

In other words, financial wellness is your ability to manage your money...to be able to afford necessities (food, clothing, shelter, etc), to be able to save (for emergencies or other future expenditures), to invest and grow your money (so you can increase your net worth), and to protect your wealth (from market fluctuations, loss of employment, etc). 
Your financial wellness includes things like your budget, your savings, your credit, and much more.

If any of things aren't where you want them, now is the time to fix them. So your overall financial wellness is a healthy as possible. 

Here's some tips:

1. Stick to your budget. Ah...you thought I was going to say make a budget, didn't you. But the truth is that while plenty of folks have made budgets of some sort, most don't actually stick to them. So once you've created your budget, figure out a plan, some system of accountability, to help you actually stick to it!

2. Build that emergency fund. What do we talk about all the time at Smart About Stuff? Being prepared for emergencies. And one way you make sure you are financially prepared is to have an emergency fund. So when life's hiccups happen, big or small, you can cover them until you get back on your feet.

3. Save for your future. No one wants to work until they die. So start planning and saving for retirement now. There are many vehicles to get you there. Which brings me to my next tip...

4. Consult a financial advisor: Unless you are already a financial expert, you need someone to help you determine what type of financial plan is right for you. It’s best to use an advisor that charges a flat fee for a financial plan, not one that earns commissions by selling the products that you need.

5. If you're credit is good, keep it that way. If it's not, fix it!: You're credit score can do more than get you better interest rates. Many employers now run a credit check before making a job offer. Apartment managers run credit checks when you try to rent a place to live. Insurance companies my run them. In fact, you would be surprised at how many times your credit score has an impact on something other than getting a loan or a credit card. So if it's good, keep it that way. Don't go into unnecessary debt. And if you do borrow money, play it back promptly! 

If you're credit isn't so good, fix it. Usually this means you either have too much debt compared to income, or you are delinquent on paying your bills. Or both. Whichever it is, the best way to fix it is to pay what you owe. There are no magic ways to fix your credit. So get your credit report and review it for errors. If it's accurate and your credit still sucks, contact your creditors and work out payment plans with them. Trust me...most of them will be willing to work with you. 

6. Create multiple income streams: If 2020 proved anything, it was the need for multiple streams of income. So many people lost their jobs. Some did go on to find alternate ways to earn a living. But many were totally reliant on unemployment and the government. What a mess that was! Yes, your emergency fund is there to help cover expenses if you lose your job. But wouldn't it be better and a lot less stressful if you had other sources of income so you always had cash flow coming in?

Anyone can become for "financially fit." It just means learning some basic money management skills. And then putting what you learn into practice. So what are you waiting for? Let's get started. When the next crisis comes along, and it will, you will be much better prepared. I promise, the peace of mind you'll have is worth it!

Stop Wasting Money On Energy. Cut Your Energy Costs.

Frequently, it's the little things you do that can save you big money. Saving money on your energy costs is one place where some relatively minor changes can add up to substantial savings. Here are 14 ways to cut your energy costs. Just make sure you use those savings wisely!

1. Tune up your heating system: A furnace tune-up covers the essential maintenance care your heating system needs. This helps the furnace operate with better energy efficiency, which saves money on heating bills. Schedule an appointment with an air conditioning and heating expert.

2. Weatherproof your home: Unless your home is properly sealed and your home is weatherproofed, the temperature inside your house is probably impacted by the outside temperature more than you realize. A leaky house can lead to higher energy bills. Taking a few simple steps that won't break the bank can lower your energy bills...AND help save the planet!

3. Replace your old windows with new energy-efficient windows: Energy-efficient windows are an important consideration for both new and existing homes. Heat gain and heat loss through windows are responsible for approx 25% of residential heating and cooling energy use.

4. Replace your old furnace with a new energy-efficient furnace: A new energy-efficient furnace may save you plenty of money. 

5. Properly maintain your furnace: Your heating system is the largest energy expense in your home. You furnace accounts for about 45% of your energy bills. Regular maintenance is critical for ensuring your furnace remains efficient.

6. Use solar heat if possible: If your looking for a way to reduce the cost of heating your home, solar heat can be a great solution. 

7. Turn down your thermostats: The EPA recommends setting your thermostat around 70 degrees when you are home and awake turning it down to 62 degrees when you are out or asleep. This will help reduce your use of energy and lower your costs.

8. Turn off the light when leaving a room: The cost effectiveness of WHEN to turn off lights does depend on the type of bulb and the cost of electricity.

9. Use energy-efficient compact fluorescent light bulbs: Compared to traditional incandescent, energy-efficient light bulbs use less energy, saving you money and can last more than 3 times longer.

10. Run your  dishwasher and washer only when full: Running your dishwasher and washer with a full load only can save you money on your energy costs AND prevent carbon pollution! 

11. Lower your water heater temperature: Although some manufacturers set water heater thermostats at 140 degrees F, most households usually only require them to be set at 120 degrees F. This can also slow mineral buildup and corrosion in your water heater and pipes.

12. Take shorter showers: The average shower uses about 5 gallons of water per minute. If you shorten your shower by 2 minutes, you can cut your water use by 10 gallons.

13. Unplug unused appliances: The energy costs of plugged-in appliances can add up fast. Unplugging them could save you up to $200 per year.

14. Carpool whenever possible: Carpooling is an easy way to save on fuel and thus, save money.

Multiple Streams of Income - MLM Marketing

When the pandemic hit, millions lost their jobs. When natural disasters strike, many lose income while business are closed. If you or a family member becomes ill, you may lose income while you miss work. 

All it takes is one hiccup, one unexpected event, and suddenly...you no longer have a paycheck coming in. And whether it's just for a few days, as in a bout with the flu or a sick child, or months as in the case of the pandemic, it can be devastating.

That's why it's so important to have multiple income streams. Ways to keep cash flowing even when your primary source of income has stopped or slowed.

One of the easiest to get started is MLM marketing or network marketing. 

MLM marketing, is a method for selling and distributing products or services. It works on the principle that the most successful way to build a business with new and returning customers is through word of mouth or through integrated online marketing that then promotes one person telling another about the business.

Before you turn away saying this can never work for me, let me assure you it can. It works for many people all over the world every day. It is one of the most successful marketing concepts ever created. You just have to understand what it is and how it works.

SO WHAT EXACTLY IS MLM MARKETING?

If you have ever purchased Avon, or Tupperware, or Amway, or Melaleuca, or Paparzzi Jewelry...

Or any of hundreds of thousands of products from hundreds of thousands of companies, you have purchased from a network/mlm marketing company.

Many of these companies refer to themselves as "direct sales". But if you can recruit people to be on your team and get paid for doing so, it's an MLM marketing company.

But what exactly is it? MLM marketing is a business model used by many companies to sell their products. Instead of doing the marketing themselves through online sites or brick-and-mortar stores, they use representatives to market and distribute their products.

Most MLM reps work from home. In the past, reps typically had to buy product upfront and then sell it. Remember Tupperware and Mary Kay parties? But with the advent of the internet, now reps focus on getting people to simply sign up as customers and order their products directly from the company. The company ships, invoices, and collects payment. Reps simply keep the company supplied with a stream of customers for their products.

In addition to earning commission from product sales, reps have the ability to recruit and train other people to be reps also. As these new recruits make sales and recruit their own reps, everyone above them on that team earns a commission. Hence the term MULTI-LEVEL or NETWORK Marketing

HOW IT WORKS

MLM marketing reps are typically recruited by other reps in the business. In the past, you probably attended an opportunity meeting where someone did a presentation about the company and then people were encouraged to sign up.

Once again, the internet has changed how we do things. There are still group presentations, but these are mostly done online. Most reps, myself included, prefer to get to know people first. Then if it seems like they might be a good prospect for the business, we might sit down for a face-to-face chat or invite them to watch a video presentation.

Once you have watched the presentation and decide to join, the signup process is easy. There are forms to fill out to become an independent representative for the company and for tax purposes. You typically will not have to purchase large quantities of merchandise. But you will be encouraged to buy some products for your own use or to sell to others. And you will be encouraged to put these on AUTOSHIP. Autoship means the company will ship your products to you every month without you having to re-order. Since these companies make their money and pay their reps from product sales, getting you to purchase is important. Companies will incentivize you to do this in many ways. The most popular are to either only pay commissions to reps who are on autoship, offer product discounts to reps on autoship, or both.

IS IT LEGAL? DOES IT WORK?

MLM Marketing is perfectly legal. Yes, there are pyramid schemes and scams out there. The best way to determine if it is a reputable company is to see where the focus is. If the company makes the bulk of their money from the sales of a quality product, and NOT the recruitment of other reps, it is most likely a legitimate MLM Marketing company.

And just because a company is legitimate does not mean all the reps operate with integrity. I have seen all kinds of claims made about products, particularly in the health and wellness/weight loss markets. And I have seen outrageous income claims made in an effort to recruit reps.

Does it work? That depends. This is a business, just like any other business. You won't make $10,000 overnight in your sleep with no work owning a McDonald's franchise. The same is true here. But if you are willing to learn the skills necessary and do the work, you can build a very successful business.

SHOULD I JOIN AN MLM MARKETING COMPANY

I can't answer that question for you. Only you know if this is the right business model for you. But I can tell you some of the advantages.

Anyone can make a decent living with an MLM business. It all depends on how hard you want to work. It's just like any other business. If I open a restaurant, or a childcare service, or a flower shop and then don't promote my business and don't try to sell my products or services, I am not going to make any money. I might sell a little bit to family and friends, but if I don't advertise and market and look for new customers every day, I won't be successful. And you have to be willing to learn how to do that effectively. There's good marketing and very bad marketing. Why do you think every franchise makes all of their new owners do things the way they want? Because they have found out what works. In network marketing, you won't be told what you have to do. It's your business. But you should be offered lots of opportunities to learn.

You will be expected to recruit others into the business. Yes, we get bonuses for recruiting other reps. But if you think we can live off that without product sales, you are sadly mistaken. And where do you think the money comes from to pay those bonuses anyway? Product sales!

Is it hard to recruit others? Not once you learn how to do it properly. Do you REALLY have to? No. You can be content with what you make on your own product sales. But this is where one of the big benefits of network marketing comes in. It's called LEVERAGE. Say I have to make 10 sales to make $1000. That means I have to find 10 new customers for every $1000 I make. If I'm making $10,000 a month, that's 1000 new customers I have to find EVERY MONTH!

Now suppose I have recruited 5 people on my team. I still get $1000 for every 10 sales I make. But I also get $200 for every 10 sales my team makes. So suppose we have a really good month and we all made 1000 sales. Instead of $10,000, I now have made $110,000. With no more work on my part than it took to make $10,000. And if something happens and I am sick or I have a family emergency and can't make my 10 sales, I will still earn some income from the sales my team made. Will I always make that kind of money? No. Just like any other business, there will be good months and bad ones. You will have go-getters on your team who will make lots of sales and you will have some that don't do anything. But the potential is there. And the bigger your team, the greater the opportunity for money!

By the way, the concept of leverage has made lots of companies very wealthy. Think about McDonald's. Do you think they would be the company they are today if they didn't get a piece of the pie from every McDonald's franchise out there? Same concept.

You will be expected to pay an enrollment fee. You are buying a business. Do you think that McDonald's gave away those franchises for free? This is a legitimate business model. Expect to treat it like one! How much? That depends on the company. I have seen as low as $30 to as high as several thousand. The wonderful thing is that there are companies with enrollment fees to fit almost any budget. Some companies even have a range of prices, depending on what you want and can afford.

This is your own business. You will be subject to taxes and laws just like any other business. Your company will provide you with materials and training but you will be expected to do your own marketing and recruiting. They will probably have some ground rules that tell you what you can and can't do when representing them. Things like no fraudulent claims, or charging more for enrollment fees than the company dictates. If you expect to grow very large, you will have to learn all the things it takes to manage a business.

You can work at your own pace. Many of us started part-time until we built a large enough business that we could just work it full-time. There are no quotas to meet. Only your paycheck which will directly reflect the amount of work you put in. There are no set hours. When I started, I worked rotating shifts so sometimes I worked my business during the day. And sometimes I worked while most others were sleeping. Not always easy back then. Today, with the internet, you can learn how to be promoting your products and business 24/7...even while you sleep.

You don't need a big office or special equipment or certain skills. Most of us started out of our homes. I worked mostly from my living room or bedroom. And all it takes is your kit from your company and effort. A computer or smart phone makes things easier, but I didn't have any of those when I started. Heck they didn't even exist! (Oops, did I just give away my age?!) Anyone can do this. I have an 18 year old college student on my team. And I have a 74 year old grandmother. And every age in between. I have stay at home moms, lawyers, teachers, a hairdresser, a fitness instructor, and even a used-car salesman on my team. Anyone can do this if they are willing to work and learn.

This is a real business. Which means you will qualify for all of those home business tax deductions!

The income potential is limitless. You can make as much or as little as you choose. It all depends on the amount of time and effort you put into building your team and your business. The network marketing industry has created more millionaires than any other industry. 

However, while making millions would be wonderful, the cold, hard, facts are that most MLM marketers won't ever hit that level. Not because it's not possible. Most of us just don't won't to devote the time and energy it takes to get there. 

What many of us will do, and what is most important, is this. We make enough to keep food on the table and bills paid, We can keep a roof over our heads. We can put money into investments and savings. We can afford some of the nicer things in life. 

If you are looking for a an additional income stream, I highly recommend you take a thorough look at MLM marketing. 

Ready to get started? Want more information? Contact me here!