by MSE Staff | Published 8 Mar 2022 

Everyone will agree that saving money is important. You may hear the occasional warning that money sitting in a savings account that cannot beat inflation is losing value every year. This might be the case; however, it is important to have a part of your assets set aside that you can access on short notice. When you have money set aside it serves a purpose like covering the deductible on your insurance, going on vacation this year, or sending your kids to college. Let us walk through creating a savings plan.

#1 Set Goals

Why save money? We save money to secure our basic needs well into the future such as food and shelter. We also save money to protect ourselves from life events such as medical emergencies, family emergencies, vehicle repairs, loss of income, and insurance deductions. We even save money for annual expenses, investments, holidays, vacations, college, and so on. Through it all there is a common thread. The money we set aside is there to support our quality of life. That is why we set savings goals in three categories: catastrophic life events, short-term goals, and long-term goals.

#2 Catastrophic Life Events

There are a few catastrophic life events that we may all experience at some time. While insurance plays an important role in protecting our assets in an emergency it is important to have money set aside to cover deductibles and other related expenses. Catastrophic life events include unemployment, insurance deductibles, critical home repairs, critical vehicle repairs, family emergencies, and medical emergencies. A simple starting point for this savings goal is first have enough money set aside for your highest insurance deductible. Once you reach that goal, set a new savings goal to save six months of living expenses. The second part of a savings plan is short-term goals.

#3 Short-Term Savings Plan

There are things we want to have in life like being able to give our loved one’s birthday gifts, buy presents for the holidays, attend special events, go on vacation, etc. Short-term savings goals are things that we can save for within the year. This is a great opportunity to build healthy financial habits and plan ahead for the future. Other items to include are periodic expenses such as quarterly or annual billing. The third part of a savings plan is long-term goals.

#4 Long-Term Savings Plan

This is where money is saved for future investments. Long-term savings goals include things like retirement, sending kids to college, investments. For this reason, it is a good idea to aim for a 10% contribution to your long-term savings plan each month. While 10% may be a great target, this is not a one size fits all solution. Remember to factor in your age, future cost of living and starting point (to name a few). Always speak with your financial advisor to understand what contribution amount best fits for your situation.

Final Thoughts

By now, you should have a better understanding of how to create a savings plan. Your savings plan should cover catastrophic life events, short-term goals, and long-term goals. When you know what you are saving money for it becomes easier to stay motivated in the process of saving your money. Take a moment to organize your current savings into these three categories. You may have more or less items which is okay. The best first step is to see where you are and then begin to make progress in the areas you seek improvement.

by MSE Staff | Published 1 Mar 2022 

It is Sunday evening, and you are visiting a festival in another town. It happens once a year and the food is out of this world. Waiting in line feels like agony but you finally get to the register. “We only take cash,” they say. A wave of embarrassment rushes through you. Of course! How could you forget! You walk over to the ATM and wonder if this will result in out-of-network fees. You are not even sure how much it will cost you. Thankfully, you saved for the festival throughout the year, and it will not be a problem.

 Deciding where to bank can include a lot of caveats like when and where you can access your money and any costs associated with managing your money. In this post, we will identify key differences between banks and credit unions so that you can be prepared in the future.

What Is a bank?

A bank is a for-profit financial institution that offers financial services like check cashing, checking accounts, savings accounts, direct deposit, online banking, branch banking, and automated teller machines (ATM) to name a few. Banks vary in size from small organizations to large organizations. A key feature of larger banks is convenience. They have vast networks with branched banking and ATM services in multiple countries. Of course, for-profit banks view you as their customers and aim to make money for their shareholders and investors. This means that banks generally have more expensive fees than credit unions which we’ll cover next.

What Is a Credit Union?

A credit union is a non-profit financial institution that offers the same types of services that you would find at a bank. And much like banks, credit unions vary in size with large and small organizations. However, credit unions focus on serving their community. They may have agreements with other credit unions to extend branched banking and ATM services to other communities. However, you may be required to be a part of that credit union’s community in order to become a member. Since credit unions are non-profit, their fees generally cost less than banks and they re-invest money they make to serve their members.

Final Thoughts

Choosing where to bank really does have an impact on our daily lives. As life circumstances change, you may want the convenience of a bank or the reduced costs of a credit union. Take a look at how often you travel and consider what you’re most comfortable with. Analyze and evaluate the fees and services offered by your prospective bank or credit union to see which one is a best fit for your lifestyle. It may take some due diligence on your part, but the peace of mind that comes with it will pay off the next time you need to use an ATM!

by MSE Staff | Published 15 Feb 2022 

As the 2021 tax filing deadline rapidly approaches, individuals and families alike are starting to think about their taxes. In this blog post, we will explore four major areas of taxes for personal finances: tax liability, taxable income, tax credits, and tax deductions. Each of these concepts is important to understand in order to make the most of your short-term and long-term financial planning. Keep in mind that this information is specific to individuals living in the United States; other countries may have different rules and regulations when it comes to taxation.

Tax Liability:

Your tax liability is the amount of money you actually owe in taxes for a given year. It's calculated by taking your taxable income and subtracting any applicable credits or deductions. If this number ends up being less than zero, then you will receive a refund from the IRS instead of paying more in taxes.

Taxable Income:

This is the amount of income that is subject to taxation. It's calculated by adding up all of your taxable sources of income and then subtracting any applicable exemptions or deductions.

Tax Credits:

Tax credits are a dollar-for-dollar reduction in your tax liability, and they can be claimed for a variety of reasons such as having children under the age of 18 or paying someone to take care of them while you're at work. There are three types: refundable, non-refundable, and partially refundable credits which we'll discuss below.

Refundable Credits - If your tax liability is less than $0 because these credits exceed your taxable income, then some portion (or all) will be paid to you as a refund.

Non-Refundable Credits - These credits can only be used to reduce your tax liability down to $0; any excess amount is not refunded to you.

Partially Refundable Credits - If your tax liability is less than $0 before because a portion of these credits exceeds your taxable income, that portion may be refunded up to a specified amount of the remaining credit.

Tax Deductions:

Tax deductions are expenses that you can subtract from your taxable income in order to lower your tax bill. There are two types of deductions: standard and itemized.

Standard Deduction - This is a fixed amount that everyone gets by default without having to provide any additional documentation or information about their finances/spending habits.

Itemized Deductions - These are expenses you have incurred over the course of the year which may be deducted from taxable income if they meet certain criteria. These expenses include things like mortgage interest payments or charitable donations, among others. Sometimes the total amount of itemized deductions doesn't exceed the standard deduction. It's important to hire a tax preparer you can trust to avoid overpaying taxes.

Final Thoughts

In sum, it's important to understand these four major concepts of taxes in order to make the most informed financial decisions for your future. Consult with a tax preparer if you have any questions about how these concepts apply to your unique situation; they can help you save money and avoid penalties from the IRS. Thanks for reading!

by MSE Staff | Published 31 Aug 2021 (Updated 1 Nov 2021)

Many people struggle with the idea of managing their money, and the biggest issue is that they focus on the wrong thing. They think about how to make more money when the answer is really in how you save it. Curtis Banks knows this and has written a book called "The Book on Money Management," which teaches readers how to manage their finances correctly by first addressing the root of the problem, then showing them how to allocate their money for building wealth.

Focus on Saving Money

You can have money saved for opportunities and unexpected life events by learning from "The Book on Money Management". The book first helps you identify the root of what's preventing you from saving. It takes you step-by-step addressing how you think about money and your goals to identify your financial hang ups and motivators. By the time you're halfway through the book, you'll be ready to start allocating your money.

Allocate Your Money For Opportunities

Once the root of the problem is addressed, the book on money management shows you how to allocate your money. It teaches what types of things you should be focusing on, like an opportunity fund or retirement savings account. Once these are established it's easy to start taking steps towards building wealth through smart investing.

Practical and Effective Strategies

Curtis Banks has written this book to help people take control of their finances as they focus on building wealth, instead of just making more money. Get ready to learn how to save, allocate and build your wealth by reading "The Book on Money Management". This is a practical guide that provides effective advice you can follow today.

"The Book on Money Management"

It doesn't matter how much money you earn if it's not allocated correctly. If you're looking for a way to save more and achieve financial success, "The Book on Money Management" can help. Written by Curtis Banks, the book is designed to be an easy-to-read guide of all things related to saving and building wealth--from understanding your net worth and creating an allocation plan, to investing wisely in stocks or real estate. Order this helpful resource today before supplies run out!

by MSE Staff | Published 22 Aug 2021 (Updated 2 Nov 2021)

Saving money is not always easy. But there are many ideas that can help you save more and have a better financial future. Learn about 10 financial rules to live by, ideas on how to save money, and ideas for making your savings grow faster in this Money Smart list!

Have a Plan for Your Money

What is your life plan? Do you know what you want to be doing 1 year from now? How about 5 years and even 10 years from now? You have expectations for your life, so it makes sense to have expectations for your money. This is because your money supports the things you expect to do and have in life. Do you plan on paying off your mortgage in 3 years? Your money supports your life goals. Do you plan on continuing your education next year? Your money supports your continued education. Do you plan to eat today? Your money supports your ability to live. Your ability to plan out your finances is integral to your life plan. Make your plans detailed. What do you want and where are you going?

Planning out your finances is not easy. It takes a lot of work, but it pays off in the end! If things change, make sure to update your plan accordingly. You can't go wrong with an updated financial plan that accurately reflects what's happening in life. Make adjustments as needed!

Pay yourself first

Where does your after-tax money go? Curtis Banks teaches the Money Smart Allocation system because it forces you to stop throwing your money out on expenses and start allocating your money on assets. It's so simple that most people will fight it at first. Limit expenses to 45% of your income and focus a minimum of 55% of your income on growing your net worth! When you put your income to work growing your net worth, you pay yourself first. Your future self will thank you for it!

Participate in Financial Education Programs

What are your ideas on how to save money? There's a chance that the ideas your co-workers have might not work for you. This is why participating in financial education programs can help with finding better ideas and strategies that suit your needs as an individual. It never hurts to learn more about money so find out what kind of financial classes or workshops may be available near you! Financial literacy, knowledge, and awareness are important skills when it comes to personal finances. You should always take advantage of any opportunity needed to improve yourself and understanding of finance. With increased knowledge comes responsibility for using this information accordingly - use these concepts wisely!

Curtis Banks teaches and mentors on how to save money, how to systematically manage your money to grow your net worth, and how to retire abundantly and stay retired in Money Smart Transformation. It's a three-step program that includes learning, implementation, and mentoring so that you can take control of your finances. If you'd like to learn more about the program schedule a discovery call with Curtis Banks today. https://www.scheduleyou.in/mVrdFy

Take Advantage of Coupons, Discounts, and Sales When Possible

It's always a good idea to use coupons, discounts, and deals when you can. Do your research before purchasing anything because often times the best deal is not what it seems! Don't pay full price - there are plenty of ways to save. Coupons, discount codes or offers for free shipping from favorite stores like amazon prime have saved me time and money in my life.

Create a Habit of Saving Your Money and Keeping It

You can automate your money into a savings account, but you have to learn to not spend it for unintended purposes. Make a habit of saving your money and keeping it. Don't spend it for things you didn't plan on because many times emergencies happen out of the blue! Create an emergency fund that grows - this will be important in case something unexpected comes up like car repair, doctor's appointment, or even just needing to replace lost items.

Automate Contributions to Your Retirement

Take the necessary steps to ensure that your quality of life is abundant when you retire. Direct a portion of your income today to secure your livelihood in retirement. You can automatically contribute to your retirement by setting up an automatic withdrawal from a checking or savings account. The best thing you can do for yourself is start saving. The early you start, the easier it will be for you!

Avoid living below your means

It’s important to keep your expenses down but there is a point where you can become too frugal. For example, sleeping on a friend's couch to avoid paying higher living expenses can be an extreme way to save money. However, it's not a long-term solution for saving money. Living below your means can create discomfort and friction in different areas of your life. It can even make relationships with others difficult. Make sure that you're living within your means and not below your means.

Avoid living above your means

Living comfortably is important but it should never cause cash flow problems. You should maintain a healthy cash flow each month. If you're cash flow is running in the negative, it means that you have more money going out than you have coming in. That's a sign that you are living above your means. Pay attention to your cash flow and make sure that you're living within your means.

Create an Emergency Fund That Grows

Make sure your emergency fund is keeping up with inflation. An emergency fund is a safety net for you, your family and your home. Create an emergency fund that grows so that it'll be there to help in case of emergencies like car repair or doctor's appointments. It's also important to make sure that your emergency fund matches with inflation. Living expenses were far less in the 1960s than they are today. The costs of goods have increased dramatically. Keeping up with inflation will ensure that the money stays valuable just in case you have to use this account when you need it.

Grow your net worth

Understanding how much wealth we're building each month and year is important when it comes to our financial well-being! You should take stock on what you are doing financially monthly, quarterly, and annually by reviewing the numbers and viewing where exactly your money goes - if it isn't going towards assets then adjustments need to happen. Increase understanding by tracking monthly expenses, income, savings goals, debt payoff progress, assets, liabilities, investments, and net worth.

The 10 financial rules to live by and the ideas on how to save money are not always easy, but they will help you have a better future. What do you need? I’m here for you with free resources like Curtis' Top 10 Money Smart Strategies that can make your savings grow faster. Let's work together towards a smarter financial future! Request a free copy of this list during a free wealth discovery session.