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5 Money Lessons to Teach Your Kids

5 Money Lessons to Teach Your Kids

by | Mar 29, 2023 | Legacy, Money Goals

Valuable money lessons to teach your kids that you can start early

These are money lessons to teach your kids, that can even be taught as early as preschool.  We all know that teaching financial literacy is missing in our schools, but it doesn’t have to be missing in our homes.  

For many of us, financial literacy wasn’t taught to us, because our parents didn’t know, so we had to figure it out on our own.  But now, there are so many resources available, we have an opportunity to change the trajectory of our children’s financial future by better preparing them.

There are five valuable money lessons we can teach our kids that can transform not only their financial future, but who they are as people.

  • Teach them the value of WORK:  One thing that can combat the entitlement mentality is having to work for something, and earning your own money.  When our kids have to work, they learn responsibility and self-sufficiency.  My grandkids’ granddad is always teasing and asking them if they have a job yet; the truth is that kids can start doing little jobs as early as preschool.  Imagine their faces when they accomplish something, the sense of pride they feel, and their self-worth elevated to the next level.  Work creates value.   
  • Teach them the significance of CASH:  Our children are growing up in a digital world.  It is possible to go all day, even days, and not use cash, and yet you are spending money.  We are swiping, cash app-ing, Apple and Google paying – currency is never exchanged.  Our kids need to know that the underlying source of the spending is cash.  Teach them to use cash: to count money, to be able “make change,” and to experience what it feels like when you’re out of cash money.  Cash is still King.
  • Teach them the importance of SAVING:  The one thing that will set our children apart from the rest, is to become really good savers.  This is a habit that should be started early.  You can make saving fun and enjoyable; make it a game, have challenges.  Allow them to see their money growing; this positive reinforcement will inspire them to want to save more, and just like that you have a super-saver!
  • Teach them to SET GOALS:  You not only want them to set goals, but to set goals and achieve them.  Let’s go back to saving, you can help them set a savings goal and purpose.  Don’t make it too complicated, or too lengthy in time to achieve the goal.  This can be fun as well.  There can be a reward for achieving the goal.  As they learn to set and achieve money goals, they can apply this practice to all areas of their lives.  Being goal-oriented is a key factor to success.
  • Teach them to be GENEROUS:  One way to counter selfishness is to teach our children the act of generosity.  I think they should see what poverty looks like; it will invoke compassion.  They will learn to care about someone else besides themselves.  Let them participate, even in small ways, in making someone else’s life better.  Let giving become a part of the tapestry of their lives, in that they will know true wealth.

If we’re going to build generational wealth, it’s important to teach our children valuable lessons about money.  It is important that they have the knowledge and skills to maintain and continue building a financial legacy.  Enjoy this journey with your family.

Warmly,

Your sister Kim

How Holistic Wealth redefines the meaning of wealth

How Holistic Wealth redefines the meaning of wealth

by | Mar 20, 2023 | Holistic Wealth

 

What is Holistic Wealth?

 

Holistic wealth redefines the traditional meaning of wealth.  The concept of Holistic Wealth is relatively new.  There have been conversations about holistic wealth in the personal finance space over the recent years, but only as recently as 2019, has the idea of holistic wealth been made a reality, and brought to public awareness.  The term was official coined by policy expert, and best-selling author Keisha Blair, founder of the Institute of Holistic Wealth, whose mission is to bring awareness about holistic wealth.

 

Holistic Wealth challenges us to re-evaluate what’s important in our lives

 

In the aftermath of the COVID-19 pandemic many people are re-evaluating what’s important to them, hence, the “Great Resignation” movement where many people in mass, resigned from their jobs for a number of reasons: limited opportunities, poor work environments, wage stagnation, lack of benefits, inflexible remote-work policies, and long-time work dissatisfaction, to name a few.

 

Many people who were eligible took early retirement, and employers offered packages as incentives for eligible employees to retire early.  Many took this time as an opportunity to reflect and make different decisions about their lives.  The COVID-19 pandemic caused us all to see life differently, and want better for our lives.

 

Defining Holistic Wealth    

 

There is no one right definition for holistic wealth.  Although finances are definitely a part of it, holistic wealth is about more than your money; it’s not just your net worth or net income, or your material possessions.

 

I’m going to share with you, the “Her Money Journey” definition and concept:

Holistic wealth is creating a lifestyle based on values that are important to you:

It is incorporating other aspects of your life that allow you to redefine wealth.

It’s living a life with meaning, purpose, balance, fulfillment, and joy – a life well-lived.  A life where freedom, time, and experiences are just as important.

 

5 Areas that make up Holistic Wealth (in no particular order)

 

  1. Financial Capital – 5 Money Goals: I wrote an article on the 5 money goals that you can read, where I explain a bit more about the money goals; security, freedom, lifestyle, legacy, and generosity. Click on the 5 Money Goals link to read.  When it comes to wealth, as much as I believe it’s important to build monetary wealth, and pass along generational wealth, I also believe it’s not the only aspect of our lives that make us wealthy.

 

  1. Physical Capital – health and wellness: fitness, medical, mental and emotional. People are realizing that “health is wealth,” as the saying goes.  Just as we have to decide why money is important to us, and what we want it to do for us, I think we also have to decide why we want to be in excellent health – besides the obvious – if we can actually say it’s obvious.

 

For instance, I have 5 grandchildren (the Board of Directors) that I want to enjoy without limitations.  I also enjoy traveling and the outdoors, that I want to continue to do with minimal pain.  And I want to live independently as long as I can.  Quality of life is what is most important to me.  To live the kind of life I desire, I need to be healthy; prayerfully, with no major medical illness, physically fit for my age, and doing all that I can to maintain my mental and emotional well-being.

 

  1. Spiritual Capital – your faith: your relationship with God. Your relationship is personal, and each of our relationships look different.  One thing I know, is that when I abide in Him, and He abides in me, I am stronger, more at peace, more grounded, and I’m much more capable of handling life and whatever it throws at me.  Not saying it’s easy, but my relationship with God just makes my storms more bearable – when I have them.  And doing life with Him is just better for me.

 

  1. Social Capital – Relationships: deepening your inner circle; creating community; connecting and giving; finding your people. Being passionate about something worth fighting for.

 

  1. Personal Capital – Personal development: continued personal growth, life-long learning; walking in your purpose, and doing what God created you to do. Having a healthy sense of self: self-love, self-respect, self-image, and self-worth.

 

 

I don’t believe we have to choose one over the other, but I do believe it requires balance.  I will tell you that I am working in some aspect, on each area.  Know that it’s okay if you haven’t perfectly achieved all 5 areas of holistic wealth.  It’s a journey that we are on, and we should embrace the journey.

 

Your sister,

 

Kim

10 Passive Income ideas you shouldn’t sleep on

10 Passive Income ideas you shouldn’t sleep on

by | Feb 28, 2023 | Financial Freedom, Money Goals

 

Making money while you sleep with passive income

 

Hello Beautiful!

What is Passive Income?

 

According to the IRS passive income is defined as income that requires minimal work to generate and maintain.

There are some forms of passive income that require no work, just your upfront capital, and let the passive income flow.

Contrary to what many people believe most passive income options typically require upfront labor to get started.  Once you have put in the work, and “primed the pump” you can reap the benefits in residual income – while you sleep!

Let’s take a look at 10 passive income options:

This first group of passive income options require no labor, and all upfront capital.  If I were to say there is any work, it would be in doing your due diligence; please make sure you do your homework before making any investments.

  • Dividend Stock – this is a classic. This is a publicly traded company that shares its profits with its shareholders through dividend payments.  Dividend payments can be in cash or stock.  When the dividends are paid in cash, the money will be automatically deposited into your account.  Dividends are usually paid quarterly.  A little homework: Dividend Aristocrats – these are a group of stocks represented on the S&P 500 that have increased dividends per share for at least 25 consecutive years.  Look into them…
  • Annuity – an annuity is a financial vehicle/contract backed by an insurance company that provides guaranteed monthly income payments for the rest of your life. Let me say this, an annuity is a very complex financial product.  Again, please do your due diligence, and speak with an insurance representative to help you, if you are interested.

Now back to annuity basics.  It is basically a retirement product.  I like to call it “the personally funded pension.”  Now I’m only hitting the highlights: you can purchase an immediate payment annuity, which means that based on your age and maybe some other factors, you will pay the insurance company a lump sum of money, then they will in turn pay you a monthly income for the rest of your life.

There is also the deferred annuity, you pay the insurance company a premium for a given period of time, typically 10-30 years, then at a set time you will begin to receive payments.

What happens if you pass away before your distribution, or before receiving payment equal to your contribution?  In many of the annuity contracts today, you can name a beneficiary, and there are “riders” that you can attach to your contract to minimize risk.  Doing your research on annuities is very important, as there are many types, and all annuities are not created equal.

That being said, I actually really do like the annuity product for people who do not have a traditional pension, nor do they have assets that can provide them income.  (And that is a general statement).  Be mindful to consider your whole financial situation when considering an annuity, and consult your financial provider.

  • Peer-to-Peer Lending – the basic concept is that individuals can borrow money from other individuals using social/crowdfunding lending platforms such as Prosper and Lending Club, cutting out the middleman and financial institutions. You can loan someone as little as $100, or more.  As the lender/investor, you make your money from the interest you’re charging your borrower.  The default interest rates are usually higher than traditional financial institution rates.  You are paid more, and there is an element of risk involved.

The next group of passive income options is real estate.

  • Rental Property – investing in rental property takes considerable capital, and time, but also can be one of the most lucrative forms of passive income. With rental property there is a learning curve, and a lot of responsibility.  This isn’t for everyone, but if you’re interested, learn all you can about real estate investing, the landlord/tenant laws in the area you want to own property, and the tax laws pertaining to rental property.  It would be a good practice to have a team for when you need them: contractor, plumber, electrician, painter, and whatever other services you may need for running your rental property.
  • Crowdfunded Real Estate – crowdfunding real estate allows individuals to raise capital for developers’ real estate investments. It is a way to invest in real estate without having the physical property.  Two crowdfunding platforms are Fundrise and Realty Shares.  Fundrise requires a minimum investment of $500, and Realty Shares require a $5000 minimum investment.

 

  • REITs (Real Estate Investment Trust) – this is another way to own real estate without having the physical property. REITs purchase different types of properties, including apartment building, condominium complexes, office space, storage centers, retail outlets, and other commercial real estate.  You can invest in REITs using a brokerage account and purchasing them within mutual funds, index funds, and ETFs (exchange traded funds).  When rent is collected, the REIT distributes the collected rent to investors by paying out dividends.  And the good news is that REITs are required to distribute at least 90% of their profits back to their shareholders/investors.  Sounds good to me!

This group of passive income options can be costly upfront, and definitely require work to get started, but once they are set up, they are low maintenance, and they can produce a decent passive income.

  • Low Maintenance Businesses – owning a parking lot, laundry mat, or vending machine operation.

With these passive income options it is a low capital outlay, and a little bit of labor.  But if you enjoy these activities then this can be a delightful way to earn money.

  • Licensing – photos, music, and recording audiobooks. You collect a small fee each time you license your “art” on royalty free websites that specialize in your talent.

This group is a modern passive income favorite.  It is possible to get started with a little bit of money, but you will have to do some work.  Although there can be a learning curve, it’s something many people can do if they’re willing to put in the effort.

  • Digital Products – E-books, printables (artwork, planners, templates, etc), online courses, and APP creations. The last two, have a steeper learning curve and can cost a bit to get started.

Last, is to leverage your expertise and passion.  Capitalizing on your knowledge and interest, and sharing with others.

  • Content Creation – blogging and/or YouTube. They both can make money by participating in affiliate marketing programs, selling ad space, and brand sponsorships.  Both are labor intense and could require your patience; it could take a while before you start to see your income flow.  You really have to be willing to be consistent, and put in the work.  But when you do, you are rewarded for your hard work.  Even though you can generate a decent passive income, I feel that being a content creator is more about one’s passion for the subject (IMHO).

Well that is my list of passive income options for you to look into, see what works for you, and start your journey to making money while you sleep!

Here is a fact, we have two choices, we can work for our money, or put our money to work for us (yes, a third option – do both).  The moral of the story is that the more your money works for you, the less you have to work for it – trading time for money.

I’ll leave you with a quote from my favorite investor:

“If you can’t find a way to make money while you sleep, you are going to work your whole life.”
– Warren Buffet

 

Sweet dreams!

 

Your sister,

 

Kim

5 Money Goals to Achieve on your Journey

5 Money Goals to Achieve on your Journey

by | Feb 20, 2023 | Money Goals

5 Money Goals

Hello Beautiful!

I find that no matter what people say they want their money to do for them, it will fall within the 5 Money Goals: Security, Freedom, Lifestyle, Generosity, and Legacy.

Money Goal #1 – Security

Let’s start with security, it is your fundamental money goal.  Some of our basic needs are to have food, clothing, and shelter, and I would like to add decent healthcare to the list.  We also don’t want to struggle, or just live a life of existence and survival.  We want to have more than enough to take care of ourselves, and our families. We want to thrive!

Financial Security starts with getting control of your money, by having a sound money management plan.  A budget is an excellent place to start.  You need to know how much money you have coming in, and where your money is going.  There are many ways to create and manage your budget today; there are a variety of APPs and software programs available.  Choose a system that is user friendly, easy for you to manage, and one that you will stick with.

Next, is savings.  Okay so I hate the terms “rainy day fund” and “emergency fund” so I like to use the term “cash reserve,” but you can feel free to call it whatever you like, as long as you’re saving.  Ultimately you want to have several months of your expenses in your cash reserve, but don’t panic! Start where you are.  Build your cash reserve in steps: 1. $500 2. $1000 3. $2500 and keep going until you have a nice reserve saved.

Create a debt reduction/elimination plan.  There are two common methods you can use: the snowball method where you start with paying the debt with the smallest amount first.  The other is the avalanche method where you start with the account/debt with the highest interest rate first.  Whichever method you choose, stay focused and faithful to your plan.

Lastly, protect your family and assets with the proper insurance, and estate planning documents.

Money Goal #2 – Freedom

What is financial freedom?  Good question.  I define it as the ability to live life on your own terms, and having the time and resources to do what’s important to you.  Now how that looks, may be different for each of us.  Financial freedom is putting enough money to work for you, so that you’re not working so hard for it.  So how do we achieve that?  By investing and ownership – building wealth. This money goal seems all too elusive to many, but it doesn’t have to be.  Always take advantage of your company’s retirement program.  You can start investing in small ways on your own; be sure to do your due diligence, and learn as much as you can before you get started.  Additionally, seek professional help from a financial adviser/planner to help you with your overall investment strategy and plan if you don’t have the knowledge and skills.  Work on this money goal.

Money Goal #3 – Lifestyle

I had a friend who would always say, “how you livin’?”  It was a greeting, but it can also be asked of our lifestyle as well.  Money allows us to create a certain lifestyle, and that lifestyle is defined by how much money we can allocate to it.  Our lifestyle is how our money shows up in the world.  How much money you have will determine the neighborhood you can live in, where you can shop, the education you can provide your children, the experiences you and your family can or cannot have.  Now I’m not advocating for or against a material lifestyle, but I am advocating having the ability to choose; and the truth is, money gives you more choices.  I like to say, “money gives us access.”  So how do you want to live? What quality of life do you want to have?  And I’m speaking from a “lifestyle” perspective.  This is where we enjoy the fruits of our labor.  And we don’t have to be shy about it, we all want to live a nice quality of life – however that may look for you.  This is the money goal we live out every day.

Money Goal #4 – Generosity

I think this is one of the most important money goals, and important in our wealth building plan.  “To whom much is given, much is required (Lk. 12:48).”  True wealth is not only defined by the how much money we make, but how much of a difference we make.  True wealth is being able to be a blessing to others.  And wait! Before you say you don’t have enough, you do.  You don’t have to be rich to give, or help someone.  Just like with anything, start small if you have to.  You can share your talents and skills, your resources that you have access to, you can give of yourself and your time, and of course, you can share your money.  I think what’s most important is to give from your heart, and show the love of God.

Money Goal #5 – Legacy

I know for many, this money goal is so far down the road that you may not think about it, or you may think you have time, or there is so much going on that it’s not a priority.  I get it.  One of the best things you can do for your children, grandkids, and future generations is to leave a legacy of faith and financial literacy – knowledge.  Help them to learn and understand how money works, and what it means to be a good steward over their money.  And one way to do that is to live by example.  As you work to build your wealth, build enough to leave and give your children or grandchildren a head start, so they don’t have to start at the beginning. Paraphrased – “it is good to leave an inheritance for your children’s children (Prov. 13:22).”  If nothing else, leave a legacy of love.

My challenge to you is to create a list of everything that you want your money to do, or what you want to do with your money, however you want to say it, but after you create your list, you will be able to put each one into one of the 5 Money Goals.

So, what do you want your money to do for you?

Your sister,

Kim

10 Self-Love acts your money will smile about

10 Self-Love acts your money will smile about

by | Feb 14, 2023 | financial wellness

What does self-love look like when it comes to money?

 

Happy Galentine Day Beautiful!

Defining Self-Love:

Self-love is an internal behavior as a result of our beliefs, thoughts, and feelings toward ourselves. It is knowing our worth, valuing and respecting ourselves. Self-love is the cornerstone of building a healthy relationship with our money.

The difference between Self-Love and Self-care:

I believe many people actually get these two mixed up, or use them interchangeably. Self-Care is the external things we do to take care of our physical, mental, emotional, spiritual and social needs/health. Self-Care is the fun stuff! It’s buying those flowers, getting a massage, that mani-pedi, lighting those candles and taking a lavender bubble bath, it’s your downward dogs and quiet meditation, it’s taking time to journal your thoughts, or taking that mental-health day and going hiking. We’ve become good at self-care because it’s popular and trending.

But self-love takes a little more work. It requires us to be introspective and dig into who we are, and why we do the things we do.

When it comes to money, it goes back to understanding your money story. You may need to get a little help with this. Often times things that affect our financial behavior, have nothing to do with money.

A few ways a lack of financial Self-Love shows up in our lives:

• We live beyond our means – this is a way of life, not just a season; we’re constantly spending more than we are making. When we do this, there is no room for savings.
• Debt is our lifestyle – our credit cards are always maxed out. Because of our debt, we will not be able to experience financial freedom.
• We choose to not be aware of our financial situation – we walk around with our heads in the sand about our money; we don’t want to look at our bills, we have no idea what’s going on with our bank accounts, and we basically don’t know where we stand financially.
• We have no financial boundaries – we allow other people to spend our money, and have access to our money when we really don’t want them to, or can’t afford for them to, but we don’t know how to tell them no.
• We don’t believe that we are worthy of having a better life, or the life we desire, so we do things like self-sabotage and/or play small.

Can I tell you that all of the above behaviors can be changed? There was a time in my life when I did not show financial love to myself in several ways. So, I know it’s possible to change.

Start by forgiving yourself. This didn’t start yesterday, it probably took a while to here, so it may take a while to undo. Be patient with yourself, get help if you need it, and start to create new and healthy money habits.

10 Ways to show financial Self-Love:

1. The number one thing we can do is “Pay ourselves first!”

2. Protect ourselves and our assets – check with an insurance agent, and estate planning attorney regarding life and other insurance needs, and the four basic estate planning documents: will, trust, durable power of attorney, and a healthcare directive.

3. Invest in ourselves – learn something new about money.

4. Set financial boundaries for ourselves and others – we must learn to tell ourselves “no” to things we don’t need or really want, and can’t afford, and keep others from going in our pockets/bank accounts, like it’s a joint account and they put money in it.

5. Know our worth

6. We must notice our emotions around money, and pay attention to our money habits, patterns, and triggers.

7. If there is any debt, create a debt reduction plan to pay down, and off debt.

8. Being generous blesses us – give to a cause that you care about.

9. Have annual financial check-ups – just as we get our annual medical check-ups, we should do an annual check-up of our finances: review your retirement accounts, credit reports, subscriptions and utility bills to see if there are any promotions or discounts available.

10. Celebrate your wins, no matter how big or small. Be proud of your achievements, and the steps you have made toward showing yourself some financial self-love.

 

Embrace Your Journey!

 

Warmly

Your sister

Kim