E33: The Three Best and Simple 2018 Money Resolutions

Nate: In this episode we will discuss the three best money resolutions that you can make for the new year that will actually make a difference in your life. She’s Holly and she helps people find financial freedom.

Holly: He’s Nate, he makes sense out of money. This is Dollars and Nonsense. If you follow the herd, you will be slaughtered.

Nate: All right Holly, so we have just kicked off the new year. Everyone out here is trying to figure out what type of resolutions they’re going to set for themselves and goals they’re going to set. You and I have felt it necessary to think of a few things that we think can really help people and are fairly simple to change, something that they could actually achieve. I’m going to ask you just personally have you ever actually made a New Year’s resolution and followed through with it?

Holly: No. No, I haven’t. Have you ever followed through Nate?

Nate: No, never have.

Holly: I think that the intention is to follow through, and you do really good for the first couple days, maybe even the first couple weeks. Then the new year starts really to pick up and moving, and all the things that distracted us in the past come back to distract you from accomplishing those resolutions. But I think for you and I, one of the things we want to do with this is also make it a positive spin versus a negative. Normally with a resolution it’s something you have to give up. I think this is more a call to action. It’s something you actually do that can actually help you and your family, and create a sense of accomplishment verus a sense of failure.

Nate: Absolutely. It’s true you and I may not be the best people to talk to because we haven’t had to follow through as well. Most of mine have been around diet and exercise and things like that. Time management has even been one. Typically I just fall back into what I normally have been doing, but we’re hoping that with a few ideas, we’re going to go over three ideas today for some money resolutions that a lot of people can implement. I don’t think it’s going to be hard, and I think it can help them quite a bit.

Holly: Yeah.

Nate: That’s my thoughts on it.

Holly: I agree. I think the very first one, Nate, that you and I really came up with is most of us have what we call a rainy day account, or a savings account, or some type of account that we’re storing money in. But is your savings really aligned with what you actually believe? Where are you putting those savings and why are you putting it there? Do you want to expand on that a little bit?

Nate: I’ve spoken with a lot of people. They’re working their jobs and they’ve got these 401K accounts. I just want to stress to the people in the new year to actually make sure that you’re doing things with your money, and you’re using your money to accomplish things that you actually want to accomplish. To kind of expound on that, I don’t know if that really makes any sense, but to expound on that I know so many people who are still contributing diligently to a 401K. That may not be a bad thing. I mean I’m sure if you listen to the podcast you know we’re not big fans of them anyway. We don’t think they’re very good, but it is what it is. But the people I’m more referring to are the people who, in all honesty, would rather be investing their money in real estate a lot of the time.

I’ve talked to a lot of real estate investors you know, and they’re main goal is they think real estate is going to help them get where they want to go. Yet instead, they’re still stuffing money in the 401K probably just because everyone’s doing it and they’ve been doing it for so long. It comes out of their paycheck, but yet they’re putting dollars into there that really is not achieving for them what they’re trying to do. Same thing for the people who want to do infinite banking. They really feel that what we’re doing with infinite banking, aligned with maybe some other things, is exactly what they want, but they still have this fear of canceling out the 401K. Even though they probably would rather do something else. They’re not loving their 401K.

I guess the first one of money resolutions is make sure that you’re using your money to do things that you actually want to accomplish. Don’t just do it just because you have been doing it, but make a sophisticated decision. Just say, you know what I like investing in real estate more than I like stuffing money in this 401K. I’m going to stop doing one so I can do more of the other, and kind of prioritize. I think that’s something simple that people can probably latch onto, I think.

Holly: Yeah. It’s not just whether it’s a 401K. It can be your teacher retirement program. It can be your government retirement program. The different ways you’re actually putting money in. You might think that’s the only way you can save money because basically you’re putting it there for the future, but yet you actually can’t use that money and you do get penalized if you do need that money. So the savings that you’ve gone in and put it somewhere in a 401K actually might not be in your best interest because when you actually come down to using that money you might not be able to use it, or have a difficult time accessing it, or actually end up paying penalties and additional taxes on it.

Really understand when you are wanting to save, is where you’re putting that money really lining up with what you want to do and what you’re passionate about. I mean most of us with our 401K and our retirement programs don’t even know who’s managing it, who’s doing what other than the statement we get, the anniversary statement we get every year from our 401K in regards to the annual report. Oh it did good, it did bad, oh here’s the average. Instead, do something you’re passionate about with money.

Nate: Yeah, absolutely. That’s our number one resolution. Stop doing things you don’t actually want do with your money just because you have been. I talk to so many people who are exactly right Holly, they’re doing things with money that, they have a goal for themselves of what they want to see themselves in five, 10 years, they have a picture, and that picture has nothing to do with let’s say a 401K. I’m just using that as an example because that just tends to be a very common one that fits that agenda. They’re like I’m putting money in here, but what I really want to do is have enough passive income coming in from real estate and from my policies to do it.

I’m just saying guys the 401K may not be bad inherently, I mean I think it is but you can make your own decision, but make sure that it is doing what you want it to do. If you’re the kind of guy who just wants to set it and forget it, and never use it, and let money sit for a long time, and that just has to be what you just love to do, okay then, but if it’s not I guess this is an encouragement to actually nail down at the start of this new year what is it that you really want your money to be doing. What are you most happy when you do with your money. Focus on doing those and cut out the fat of things that you’re doing that probably are not going to get you where you’re trying to get to in the first place.

Holly: Just remember just because everybody else is doing it, hey everybody else is putting it in the 401K or the Roth IRA, or this retirement program, doesn’t mean you have to do that. I think we really have to start thinking outside the box and really start with the new year asking yourself what am I passionate about and how do I see my savings growing, and where would I want to put that money, just like Nate said. Just because everybody else is doing it doesn’t mean it’s the right thing for you to do. It’s okay to be different.

Nate: Yeah, absolutely. After this first one, we’re going to go ahead and take a quick break and hear a word from our sponsor. We’re going to get back to the last two money resolutions that we think you can implement easily and that will actually help you.

Holly: Are you tired of being stressed about money? The Dollars and Nonsense podcast is sponsored by Living Wealth. Visit livingwealth.com/freedom to get your free Smart Money ebook, and sign up for a personal wealth presentation today. Living Wealth is a family owned and operated business, which works with individuals, families, and even businesses to slay the money stress dragon. Our clients receive individual coaching regarding wealth creation, and how to create a retirement income. You’ll be enabled to have cash today and in the future. Since 1972 Living Wealth has been committed to educating smart people on basic money principles to assist them in becoming debt free and finally find financial freedom. Let us help set you free. Remember to visit livingwealth.com/freedom to receive your free ebook and even sign up for an individual wealth presentation today.

Welcome back to Dollars and Nonsense where we’re talking about three great money resolutions to start the new year off right. The first one we talked about was making sure your savings is in alignment with what you believe and what you’re passionate about. Number two is really close to my heart, it’s about intentional giving. I think a lot of us give to charities and non-profit organizations, and we give money partly because we want to get a tax deduction or this or that, but really being intentional about your giving. Not just in the dollars you’re giving, but the time you’re doing as well. For me, really making it a priority with our family that where we’re giving money, every person has a say in that. What do you want to see do or accomplish, or how do you want to help serve that organization?

I just remember as a little kid, my mom and dad would adopt a family. The family never knew what family adopted them basically for Christmas, but we got to go buy gifts and presents and all the fixings for a Christmas dinner for the family. We would wrap up the presents, go and leave it on their doorstep, ring the doorbell, and go hide behind my parent’s van and watch them open the door and see those expressions. That was something that was very tangible for me that I so want to do with my kids and still celebrate that. It was being able to give people, but intentionally doing that. For me, it’s just that intentional giving of not just what you’re passionate about, but give where their vision aligns with yours or their beliefs so that you’re happy when you give that money. Not just oh I need to give the money somewhere and it’s a good tax donation so I’m just going to give it here. Honestly consciously think about what you’re going to give and how you’re going to give that. Nate?

Nate: Yeah, absolutely. I think that’s great. When you talk about intentional giving, when you mentioned that I was just thinking it’s also being proactive, as you said, with your giving with what you did with your family when you were growing up. Thinking outside the box. We talked about this before the show, actually having fun with it. Don’t just give out of obligation, or don’t just give because you think you need to, maybe actually turn it into something that’s fun for the whole family to get involved with, and actually have fun figuring out different people who are in need who you can help. Make that your goal for this year is I want to find four new things that I can give money to or give time to that I believe in, that my family can get involved with, and that we’ll really enjoy doing this.

For me, I’ll be honest, I haven’t been that intentional. I’ve just been going through the motions and giving where I normally do. I haven’t been making fun out of it. I know a lot of people, by the way this is one quick thing that came to my mind, who do Christmas tips. I know we just passed Christmas, but it’s pretty fun. You go out and you just bless somebody at Christmas time. When you go out to eat and you have a waiter or waitress and you give them an extremely large lavish tip just to bless them. It can be fun to do that, to give something like that. First thing that came into my mind, but definitely that’s a conviction for myself for this year that I want to try to find a few areas that I can give time to, and that I can give money to, things I believe in, but actually figure out a way to put a fun twist on it.

Holly: I think too Nate with the intentional giving, it’s not waiting until the end of the year to be giving, but actually to set aside a goal this is what I want to be giving, or how much I think I want to be giving, whether it be in time or money, and really marking that off of yes I put that money aside so I could give it to this or I could do that. I mean my kids, we see a lot of homeless people on the streets and stuff. There is no greater joy for me then when we go actually to the grocery store and the only reason we’re going to the grocery store is to buy food and nonperishable items and stuff. We make brown bags. We keep them in the car. When we see a homeless person, we give them the bag to actually bless them in some way. My kids love doing that because it’s actually something tangible that they got to help build in and create, and then actually give it to somebody that they truly believe is in need and that can really use that and that blessing of it.

I think just understanding that it’s not extravagant. It can be the simplicity of buying blankets and giving them out to homeless people. It can be sweaters and scarves and little beanie hats that you can donate and give that you know is going to go to a family in need. For me it’s finding something tangible that my kids can even relate to so that when they get older the giving is just a natural part of their life, but it’s something they’re passionate about, and that they get to see the fruit of their labor.

Nate: Yeah, that’s great. I mean in God’s word it says that God loves a cheerful giver. I think that if we’re out there giving and we’re not very cheerful about it, we’re doing something wrong. I think this intentional giving … I think by the word intentional we really just mean think about it and be proactive with it, and make it a fun thing, make it a family thing. Really seek out how you can give because it’s such a great opportunity we have in America, especially those of us who are better off than others, to be able to give. I mean it’s fulfilling God’s heart for the world. I just think it’s an amazing thing. That’s our second money resolution to start giving intentionally, not just going through the motions and almost like checking it off the list.

Third and final resolution that we thought of was simply stated to stop complaining and to start taking action.

Holly: Yeah. A lot of times Nate I don’t know about you but I hear a lot of people talking about where they want to be financially or go financially, but before they get there it’s all the complaining of why they’re not there, whether it be hardships, or because I live in this place, whatever it may be, that there’s not enough government programs helping with this or that. It doesn’t really matter, but it’s more the stop complaining. Like what Nate said, I tell people a lot, stop talking about it and actually do something. Whether it be starting a life insurance policy, whether it be we’re going to live within our means instead of constantly over extending. You can complain all you want, but if you actually don’t take action it’s not going to change anything in your life.

Nate: Yeah words don’t mean a lot, and action definitely … I mean I’ll take somebody who’s actually really bad with money who’s willing to take action over somebody who might be good with money but is just unwilling to do anything. On top of just the stop complaining part, also tied into that is the worrying and the anxiety. I heard someone say once, it’s like if someone has a weight issue and all they do is they complain, and they say man I don’t like the way I look, I don’t like the way that I’m living my lifestyle … But I know a lot of people who will complain about it, or worry about it, or it brings them anxiety over or self-consciousness, but yet they don’t actually do anything. Don’t complain about it if you’re not willing to do anything about it. If you’re just going to complain about it and not willing to do anything about it, then don’t talk about, just accept it.

But that’s not what we want you to do with money. We want you to transition. You see your own life. You see where you’re making mistakes and where you’re just going through the motions and maybe not doing what you want to do and it’s causing some hardships, start acting on it. Don’t keep talking about acting on it. Don’t keep talking about it, don’t keep worrying about it. Figure out what needs to be done. Many times it’s not that difficult. If you’ve got debt and you’re living on more than what you make, it’s not actually very difficult to get out. I can promise you that. We can help you with that. It really isn’t as hard as you think. All you need is a plan of action. If you actually get a plan set it, you can break through in that area if you would stop complaining about it and just do something different than what you’re doing today that got you into the mess.

Holly: I think Nate too, along with the stop complaining, it’s also take responsibility for where you’re at. Be willing to be honest where you’re at, especially financially. Hey, we might not have made as much money as we made last year, so maybe things do need to change and we need to maybe not eat out as much, or whatever that is, but you have to start being honest with yourself about where you’re at and take responsibility versus putting the blame, I call it blame shifting, blaming everybody else for where you’re at.

Nate: Yeah, making excuses.

Holly: Yeah, making the excuses. It kind of goes along to me with the complaining. You make an excuse versus really being honest with where you’re at. Because we’re here to help, like Nate said. I see so many people that I meet that typically come in, and I’m going to say pretty hopeless or no hope because the debt seems insurmountable. But when you actually help them put in a plan of action, like Nate said, and actually walk them through the steps and that they just have to change some things they’re doing in their life in order to be able to truly accomplish financial freedom, you see that weight lifted off their shoulders because finally they have hope. There is hope. I think that’s the biggest thing that with the complaining and where you’re at financially, like take that action, is that you can have hope and nobody can take that hope away unless you surrender it.

Nate: Yeah your words are very powerful, absolutely. You can change the way you think in your mind and the way that you speak from negativity and complaining to positive things and hopeful things. Immediately your mood is going to change, your emotions will change, everything will follow suit and you’ll see that you actually get a lot more done instead of kind of moping around. Your words and your mind and that you speak are extremely powerful in creating the world that you live in and your perspective on it.

Holly: Surround yourself with people that want to accomplish this with you. Find a couple friends, two friends, or people that you really value their input that you know will hold you accountable, and walk through this with you. That they’re not going to be complaining either, that they’re going to take action. That they’re going to figure out what they are passionate about and be able to put their savings into what they’re passionate about. Look at that intentional giving, somebody that you might want to go do something with. I mean I just know for me that if I surround myself with people that kind of have the same mindset or that we’re trying to achieve the same goals, it’s very encouraging because even if I’m having a bad day, maybe something great happened with them and it’s championing what happened with them and being able to say okay they did this, I can do this too.

Nate: Absolutely. I think that’s great. I wish everyone here a great new year. We talked about three money resolutions. Number one, focusing on cutting out the fat on what you’re doing financially as far as if you’re funding a 401K but yet you really love doing things that are outside the 401K, then stop. Don’t just go through the motions. Focus on what you are passionate about financially and what you really feel is going to get you where you want to go. Get rid of the fat in there that you’re just doing just to do. We talked about intentional giving, having fun with your giving, making it a priority, getting your family involved, becoming a cheerful giver with the resources you have. Finally, we talked about to stop complaining, stop using negativity financially and start taking action bit by bit and change the way that your perspective is on where you’re at. Take responsibility, no excuses, and start making a difference. Three things that we really feel can help just about anybody. They may be something you can actually accomplish this year.

Holly: Just remember that these are just our ideas of great money resolutions, but pick one. Like Nate said, just pick that one and really say this is what I’m really going to try and do and accomplish it. Kind of like you said Nate, with the intentional giving it’s very easy for me, but my goal is that hey stop complaining. Maybe a year from now we’ll say hey we did really good with these three great money resolutions. Instead of taking something away, it’s actually hopefully going to breathe life into you and give you the opportunity to have hope and make changes.

Nate: Absolutely. Well guys, this has been Dollars and Nonsense, where if you follow the herd, you will get slaughtered.

Holly: For free resources and transcripts, please visit livingwealth.com/e33.