Toxic Spending

While it’s true that your ability to save can be seriously undermined by that daily tall vanilla triple shot latte w/ oat milk, there are some bigger trends that are really preventing you from maximizing your savings potential.

  1. Hiding your head in the sand: Not wanting to acknowledge overspending or not wanting to have a discussion about it often compounds the problem. Have a solid financial plan and speak honestly about it with yourself and/or your partner. While the plan doesn’t have to be inflexible, it should always serve as a guide to keep you on track.

  2. Mindless or wasteful spending: Think about your purchases with intent in order to prevent immediate buyer’s remorse from impulse purchases. The easier it is to purchase things, i.e. Amazon & subscription services, the more cognizant you’ll need to be to stick to your plan.

  3. Keeping up with the Kardashians: The Kardashians aren’t real, so stop trying to keep up with them. Following the habits of those around you is one of the major contributors to spending beyond one’s means. Shopping, eating, and entertainment have all become social activities, but your finances aren’t. Build your budget around what really makes you happy, not what you perceive others around you to be doing. What you see externally might not be real, feasible, or what you actually want. Social media is an obvious culprit, where friends post about their fabulous vacations and meals while omitting any acknowledgement of their financial stresses. Be your own person!


74¢ < 61¢?

A known gender pay gap has been hugely detrimental to women’s finances, starting with lower lifetime income and longer life expectancy, which lead to a greater difficulty getting out of debt, and result in having fewer investment opportunities than their male counterparts. But what is almost as important, and sadly less recognized, is the gender investing gap. Women have historically been excluded from family finance discussions & education at a young age, putting them at an early disadvantage, and this lack of engagement has left women far less likely to invest, widening the income gap even further. Already starting with a smaller amount of savings, women tend to keep $0.74 of every dollar in cash compared to men who keep about $0.61, thereby growing their savings less substantially over time. How do we close the investment gap? Acknowledgement and education are a great start!


Let's Roth & Roll!

With current income tax rates near historic lows and a rapidly-growing national debt, many analysts believe tax rates will need to be significantly higher in the future. If so, this could be a great time to perform a Roth conversion, converting your traditional IRA to a Roth IRA under your current tax bracket and avoiding potentially higher tax rates down the road.

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Your Parents Were Wrong

Communication and Financial Transparency are Key to Emotional & Financial Success

When it comes to managing finances, every partnership has its own formula to walk the tightrope and maintain happiness (or ignorance) in the relationship. While the norm is to combine finances, more and more partners are choosing to delay or even forego this financial union. While managing finances separately doesn’t necessarily guarantee failure, the one consistent theme that leads to long term emotional & financial success is good and consistent communication around finances. It turns out that your parents were wrong when they told you that it was impolite to talk about money; that mentality has stunted relationships and financial growth for years. Conversations about finances shouldn’t be awkward or embarrassing; rather, they should be honest, thoughtful, and empowering. Talk about your finances early and often!

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