Navigate your life to Financial Freedom

Final paycheck of the month and this year is flying by. Below is how we allocated our final payday and my next post we will be doing a review of our February spending. Were you able to challenge yourself? Did you save any extra money this month? I will be showing you how we allocate our money, if you haven't read the  1st payday post , I suggest reading that one first. Just like that post, I will not be using my actual paycheck amount. JP and I get paid on the 15th and last day of the month. When planning out our budget, we use the amount that hits our account. So, this will be after taxes, 401K, medical, FSA, etc. I suggest you do the same.  I used the same paycheck amount as my last post of $2,500. This will include any bills due before our next paycheck. We have listed our mortgage, electricity, internet, gym and yoga, and Netflix. Our gym includes a boot camp class for JP and my monthly yoga. You will also see $50 towards auto, which is for gas and any ot ...

Do you have an umbrella policy in place? Do you know what it is for? I remember talking with a coworker a year or so ago about umbrella policies and realizing that JP and I needed one. After looking into it, I think most of my friends probably need one in place, if not everyone. That month we ended up getting a million dollar umbrella policy in place. Below is why you should consider getting one too. What is an umbrella policy? An umbrella policy is like your back up plan in case your coverages on your other insurances run out due to a lawsuit or claim. This policy will cover your liability and defense costs, but will not cover any physical property damage. Who needs an umbrella policy? There are definitely people who need this more than others, but in my opinion, everyone should have one in place. Some people who are at risk more than others are dog owners, those with a swimming pool or trampoline, those with teenage drivers, business owners, and more. You could also add u...

At the beginning of the year JP left his job and started looking for a new one. This past week was his first week at his new workplace and things are looking good. Since moving to Colorado almost 7 years ago, JP has always been provided a vehicle for work. So, this is our first time to have to share a car. And let me tell you, it takes patience, flexibility and love.  With his new job, there are things to think about other than pay. Since he is not provided a work truck, will they reimburse mileage, pay a monthly car allowance or some other way of reimbursement for using our personal vehicle? Does his new job have a 401K match? Provide a corporate credit card? If not, do they allow expenses to be reimbursed for taking out clients or bringing them breakfast? What does his health and dental insurance look like? Does he have a sales uniform he has to wear like in the past? What does his territory look like? Will he have to travel? Thinking about his pay, do they pay bi-monthly, bi-w...

I cannot believe it is the final week of February. JP doesn't need a full week of lunches this week but I do and I wanted to make it a good one. This week we are having Cajun Chicken Alfredo . We spent our Saturday night meal prepping for the week since JP goes to Glenwood Springs on Sunday and I have some work stuff to take care of on Sunday. Short week this week since we go to Houston on Friday. If you are a frequent reader then you already know the drill to this post and may have noticed I did not include one last week. That is because we recycled a January recipe. We usually make the chickpea lunch once a month because we love it so much and is a healthier choice. The average meal out that I have seen is between $10-15. Average lunch out: $12.50 Weekdays: 5 Total each week: $62.50 Average for the year: $3,250 Cajun Chicken Alfredo costs: Chicken thighs: $6.14 Heavy Cream: $3.29 Parmesan: $2.50 Total Cost: $11.93 Total per day per person: $1.49 Average for th...

Having life insurance is a necessity when you have dependents that rely on your income. My dad passed away very unexpectedly in 2014 and did not have life insurance in place. My mom depended on his income but fortunately they did not have consumer debt, my mom paid off their home shortly after and is now cash flowing her way thru college. The life insurance could have helped tremendously had he taken the time to get it. This is partly why I am so adamant that people get life insurance. It is inexpensive and worth it for those you leave behind. In 2019, 57% of American adults had life insurance in place. I will address the most common questions that come up when I am talking about life insurance with people in my life. How much life insurance do I need? I agree with what most financial advisors and planners will tell you, at least 10 times the amount of your annual income. When JP and I were each making $50K, we each got a $500,000 policy on ourselves. When our income incr...

When you start to get seroius about getting life insurance you will usually hear about 2: Term life insurance and Whole life. JP and I stay away from Whole Life. JP and I each have 2 term life insurance plans. We will acquire more life insurance when our annual income increases. You will not see me purchase or recommend whole life insurance ever. I will still tell you everything about it and you can make your own decisions on it. I would recommend that if you do have it, get rid of it after you have Term Life Insurance in place. If you have not checked out my other post on life insurance , you should check it out. Term Life Insurance Term Life Insurance provides coverage for a specific period of time and is designed to protect your dependents in case you die. When you begin your search for Term Life Insurance you will find different ones with different time term limits. You could buy a 15 year, 30 year, etc, it is up to you what time period you choose on your policy. If you h...

It's tax season again and over 96 million people will receive a tax refund. Many of whom are going to celebrate this flow of income as if they just got a bonus or won a small lottery. 73.2% of tax filers in 2019 received a refund. Receiving a refund is no time to celebrate. You should really be asking yourself why you got a refund. Why is the IRS giving me money? It's because it is YOUR money. You basically just gave a loan to the government at zero percent interest. You could have made more in your savings account, online bank account, investments or made needed purchases. Wouldn't you rather receive a higher paycheck instead of loaning your money to the government? What if you could have been putting that money towards your 401K or IRA? That is lost money. You are losing money by receiving a refund. When you receive a tax refund that means you overpaid on your taxes for that year. You should be aiming at breaking even or paying a small amount. To be more vigilant o...

To begin my blog, I posted a Grinds my Gears entry. Well, that's not all that grinds my gears! People who say they make so much they don't have to budget.  You can't see me, but I am rolling my eyes. These people probably have no idea where their money is going. The average millionaire has a budget and they probably have more money than the people saying they don't need one. Most millionaires are first generation and they didn't become millionaires by accident. The Millionaire Nextdoor cites that the percentage of first generation millionaires is 80%. When you tell me that you don't budget, that is your choice but you should, and you shouldn't make the excuse that it's because you make so much money.  29% of people earning over $150,000/year have less than $1,000 saved. Those that have an excuse to why they poorly manage their money. You want help to manage your money but then you say you don't have time to go the grocery store, meal p...

I challenged you on the last payday post to challenge yourself to do better. Maybe save an extra $20 or stay within budget, how have you been doing? Have you been telling your money where to go? Wherever you need help, make February the month to do better and challenge yourself. We are only halfway thru this short month so you have plenty of time to stay on track or get back at it if you fell off the budget wagon. I will be showing you how we allocate our money, if you haven't read the 1st payday post , I suggest reading that one first. Just like that post, I will not be using my actual paycheck amount. JP and I get paid on the 15th and last day of the month. When planning out our budget, we use the amount that hits our account. So, this will be after taxes, 401K, medical, FSA, etc. I suggest you do the same.  I used the same paycheck amount as my last post of $2,500. This will include any bills due before our next paycheck. We have listed our water and Verizon bil...

Is Valentines Day a holiday you look forward to? Going out for dinner and a movie? Do you have flowers waiting for your significant other at work or at home? Valentines Day for us has never really been a thing in our relationship. When I really thought about why that is, I think it is because we were servers in the beginning of our relationship, and as a server, you are expected to work on busy holidays. And as you can imagine, Valentines Day is a big holiday for eating out. And as a previous server... I recommend not eating out that day. JP and I planned a nice dinner at home for this Valentine's Day. We had wine, a charcuterie board, mussels , oysters and some chocolate dipped strawberries. So, like all my date night in posts , let's break down the costs. Wine $53.36 8 Kumamoto Oysters $8.00 2.2lbs Black Mussels $10.93 8oz Chorizo $3.47 3 Meats $6.00 Cheese $2.50 Heavy Cream $2.99 Red Bell Pepper $1.25 Lemon $.50 Onion $.30 Sh allots $.15 ...

I did a post last month asking if you were prepared for an emergency, which was about saving 3-6 months worth of savings. This was to prepare you for a job loss or emergency. Today is about deductibles. Last July, JP and I were driving from Denver to Amarillo on our way to a family vacation that would lead us to Dallas and then Destin. About an hour or so in, we hit a deer. We left at dark and if you have ever been driving between Denver and Amarillo, there are no lights on those roads once you get off the highway. I would also like to say that my mom jinxed us because five minutes before hitting the deer, my mom said not to hit a deer. Thanks, mom! We were able to drive our car the rest of the way to the hotel but had to leave the car at an autoshop in Amarillo while we got a rental and continued on our way. I bring this up, because accidents happen and insurance is a must. Unless your car insurance is just liability, you have a deductible you have to pay towards any charges to rep...

I asked and you answered. You want to hear more on how to pay off your debt. While JP and I are working on paying off our mortgage now, back in 2016 we were working on paying off our student loans and car debt. I briefly mentioned it in my first post , but I will go into more detail here. Back in 2016, JP and I had just cash flowed our wedding and honeymoon. It was a new year and a new start and we were still use to being tight on our money. We decided to go hard at paying off our debt. We had a $10,000 car debt and $40,000 in student loans and paid it all off in 8 short months. My brother, Harold, and his wife, Katy, had given me a book called, "The Total Money Makeover" by Dave Ramsey back in 2012. I had read that book (and also found $20 in that book) and had agreed with the points in there, taken tiny steps but never really went full on. JP and I discussed it, got on the same page and got busy. I have to say that having a spouse on the same page as you is significant. ...

In January, I did really well with eating healthier and doing dry January. Then February came, and we indulged ourselves that first weekend. So, this week I need to get back on track with my healthy eating. Chicken Caesar Salads it is! Average meal out that I have seen is between $10-15. Average lunch out: $12.50 Weekdays: 5 Total each week: $62.50 Total for the year: $3,250 Cost of our Chicken Caesar Salads: Chicken Thighs $9.44 Lettuce: $3.00 Dressing: $1.50 Total: $13.94 Total for 1 per day: $1.39 Total for 1 per week: $6.97 Average per year for 1: $362.44 Average difference between eating out and bringing your lunch: $2,887.56 This week is a much lower cost lunch than our normal lunch costs. With the snow that we have been getting, it has been making me want to cuddle on the couch in front of the fire. I love it when it snows, it is so peaceful and I want to just stay in and do nothing. But lunches need to be made, groceries need to be bought and meal preppi...

We all have our vices when it comes to spending money. Maybe it's the car you drive, the clothes you wear, the food you eat, the wine you drink or the trips you take. Your vices are fine, as long as you are selective and living within your means. "You can afford anything, but not everything..."  - Paula Pant JP and I have our vices too. The thing you have to remember is that as long as you can afford it and budget for it, it's fine. But like Paula Pant says, you can't have everything. Those that "have it all" are usually broke and the price they pay is stress and no money. Live within your means, figure out your priorities and enjoy your vices. I will be the first to admit that we are wine snobs. The low end of wine that we purchase is $40. In fact, this past weekend we enjoyed a nice bottle of wine. I don't feel bad about the amount of money we spend on wine, because we budget for it and it's delicious. JP is also a Bourbon snob, and...