But even with the best intentions, it can be easy to fall off the budget wagon when you see something on sale.

After all, who doesn’t love a good deal?

However, it’s important to remember that just because something is on sale doesn’t mean you need it. In fact, giving in to temptation can do more harm than good.

Let’s say you come across a pair of shoes that you’ve had your eye on for a while, and they’re on sale for $89, down from their regular price of $150. At first glance, it seems like a great deal – you’re saving $61!

But here is what really happened, instead of saving $61, you actually ended up spending $89. This means that the money used for that purchase came from another category in your budget that had already been designated for something else.

When you make an impulse purchase, you’re essentially stealing money from your future self. That $89 you spent on those shoes could have gone towards paying off debt or building up your emergency fund. Instead, you’ve spent it on something that you may not have needed or even wanted that badly. And if you keep making these impulse purchases, you’re setting yourself up for financial failure.

Furthermore, buying something on sale that wasn’t budgeted for means that you’re cheating on your budget.

Your budget is a plan you’ve set up to ensure that you’re living within your means and making progress toward your financial goals. If you start deviating from that plan every time you see a good deal, tracking your spending and staying on top of your finances becomes difficult. It’s the gateway to bad money habits.

So, how can you resist the temptation to splurge when you see something on sale?

One way is to ask yourself if you need the item.

Do you already have something similar in your wardrobe? You more than likely do.

Will it bring you long-term value, or is it something that you’ll use once and then forget about?

If you’re anything like me, your home is probably filled with countless relics of impulsive purchases from days gone by. Fortunately, my improved financial habits have ended those types of purchases, and they’re now a thing of the past.

Another strategy is to set aside a small amount of money in your budget each month for discretionary spending, but only once you are out of Baby Step Two.

I call this the Zero-Guilt Fund.

This fund should only be used for sale items. Don’t ever use it for anything else. Ever. Be firm. By having a set amount of money to work with, you can make informed decisions about what you want to spend your money on and avoid overspending.

Ultimately, it’s important to remember that just because something is on sale doesn’t mean you need it.

By sticking to your budget and resisting the urge to make impulse purchases, you’ll be able to stay on track with your financial goals and build a better future for yourself.

So the next time you see something on sale, think twice before buying and consider whether it’s worth the investment. Your future self will thank you for it.

You can do this!

I believe in you.

Please reach out to me if you have any questions.

Baby Step 3: Building Your Emergency Fund.

Financial security is a cornerstone of any successful money management plan, and the best way to achieve that security is by having a solid emergency fund.

Having an emergency fund to protect yourself from unexpected financial emergencies is crucial, and the best time to start building your own is now, regardless of your age or financial situation.

What is Baby Step 3?

Baby Step 3 is the third step in The seven-step program for achieving financial freedom. This step focuses on building an emergency fund, which is a critical tool for avoiding debt and protecting yourself from unexpected expenses. The goal of Baby Step 3 is to save 3-6 months’ worth of living expenses in a separate emergency fund account.

Why an Emergency Fund is So Important.

Life can be unpredictable, and unexpected expenses can arise at any time.

An emergency fund can give you the financial security you need to weather any storm.

The purpose of an emergency fund is to cover unforeseen expenses, such as a car repair or medical bill, without resorting to credit cards or other high-interest loans.

An emergency fund can also help you avoid the stress and anxiety that comes with financial uncertainty, allowing you to focus on other important aspects of your life.

How Much Should You Save?

I recommend saving 3-6 months’ worth of living expenses in your emergency fund. This amount should cover your basic living expenses, such as rent/mortgage, utilities, food, and transportation. The exact amount will vary depending on your income, expenses, and other financial obligations. To determine your monthly living expenses, add up all of your fixed expenses and average variable expenses, such as groceries and entertainment, for the past three months. Multiply that number by 3-6 to arrive at your emergency fund goal.

Personally, I maintain a 6-month emergency fund as I am highly risk-averse and have no desire to go back to struggling with finances. While the exact amount you should save may vary, I highly recommend setting a goal of at least 4 months’ worth of your monthly living expenses for your emergency fund. This will provide you with a solid financial safety net and help you avoid the stress and anxiety that comes with unexpected expenses.

How to Build Your Emergency Fund.

Building an emergency fund requires a lot of discipline and patience, but it’s worth the effort. Here are some tips for building your emergency fund:

1. Set up a separate emergency fund account: It’s important to have a separate account specifically for your emergency fund, so you won’t be tempted to dip into it for other expenses.
2. Make it a priority: Make saving for your emergency fund a top priority, even if it means cutting back on other expenses.
3. Automate your savings: Set up automatic transfers from your checking account to your emergency fund account, so you won’t forget to save.
4. Use windfalls to boost your fund: If you receive a bonus or tax refund, put the money directly into your emergency fund.
5. Reassess your budget regularly: Regularly review your budget to ensure you’re on track to meet your emergency fund goal. If you need to adjust your budget, do so and continue to save.

Why Credit Cards Are Not a Substitute for an Emergency Fund.

I want to emphasize once again that the Baby Step program does not involve the use of credit cards. Remember we are changing our money mindset.

Credit cards can be a tempting solution to cover unexpected expenses, but they can also be a slippery slope to debt. Relying on credit cards to pay for emergencies can lead to high interest charges, late fees, and a debt cycle that can be difficult to break. Having an emergency fund, on the other hand, allows you to avoid credit card debt altogether and provides the peace of mind that comes with knowing you’re prepared for any financial emergency.

Conclusion

Building an emergency fund is a critical part of any financial plan, and Baby Step 3 is designed to help you achieve that goal. By saving 3-6 months’ worth of living expenses in a separate emergency fund account, you can protect yourself from unexpected financial emergencies and achieve greater peace of mind in your daily life.

I want to share a personal story with you all that I hope will encourage and motivate you.

Today marks exactly one year until February 20, 2024, and it got me thinking – what can I do every day that’s hard, so I won’t have any regrets when that day comes?

I’ll be honest, when I started my lifestyle change journey on January 9, 2023, my weight was something that embarrassed me. It is something I have always struggled with.

But today, I am proud to share that I’ve lost 26 pounds, and my overall goal is to lose a total of 62 pounds and maintain that weight until I am 97! I know that sounds like a hefty goal, but anything is possible with the proper systems in place and the right mindset.

I use NOOM and highly recommend this program. It is not what you may think, as it is NOT a diet program.

We all have a hard road to travel, but the key is to choose your hard.

Choosing your hard means making the difficult decision to work hard on your daily habits, even when you don’t see results right away. It means taking control of your finances, making healthy choices with your food, and putting in the effort to achieve your goals.

I know it’s not always easy, but trust me when I say that choosing your hard is worth it. Living easy now may seem like the easier path, but it often leads to a harder life in the long run.

Choosing your hard means taking control of your life now, so you can live an easier, more meaningful life in the future.

Remember, change takes time, and the road may be challenging, but it’s always worth it. So, I encourage you all to choose your hard today and start making small changes toward a healthier and happier life. You can do this!

Feel free to reach out to me today. I am here to help!

Introducing the Debt-Smashing Snowball Method: A Guide to Eradicating Your Financial Woes

Are you tired of living paycheck to paycheck and feeling like you’re drowning in debt? It’s time to take control of your finances and start paying off those pesky bills for good. The good news is there’s a simple and effective strategy for doing just that, and it’s called the Debt-Smashing Snowball Method.

Here’s how it works:

1. Make a list of all your debts from smallest to largest, regardless of interest rate.
   
2. Focus on paying off the smallest debt first while still making minimum payments on all your other debts.
   
3. Once the smallest debt is paid off, take the amount you were paying towards it and add it to the minimum payment of your next smallest debt.
   
4. Repeat this process until all your debts are paid off.

Not only is this strategy simple and straightforward, it’s also incredibly powerful.

Why?

Because it helps you see and feel your progress.

Each time you pay off a debt, you’ll have a small victory that motivates you to keep going. This sense of progress will give you the psychological boost you need to keep pushing forward, even when the going gets tough.

And let’s be honest. When it comes to paying off debt, the going can get tough. It’s so easy to get discouraged when dealing with large amounts of money, and seemingly endless payments. But with the Debt-Smashing Snowball Method, you’ll be able to see your debts shrink and eventually disappear, one by one.

But why focus on the smallest debt first, you might ask?

Won’t it be more cost-effective to focus on the debt with the highest interest rate?

While it might seem logical to focus on the high-interest debt first, this strategy can often lead to discouragement and a lack of progress. When you start with the smallest debt, you’re able to pay it off quickly, giving you a sense of accomplishment and the motivation to keep going.

Fun Fact:  Millions of folks just like you, including yours truly, have used this method and completely changed their finances.  This is a proven plan, and it works.

It’s also important to remember that while paying off debt can be a long and difficult journey, it’s worth it in the end. Not only will you be able to reclaim control of your finances and reduce stress, you’ll also be setting yourself up for a brighter financial future. No more worrying about how you’ll make ends meet or pay your bills each month. Instead, you’ll be free to focus on saving for the things that really matter to you.

So, are you ready to join the debt-smashing club and start the Debt-Smashing Snowball Method?

It’s time to get rid of those bills once and for all and take control of your financial future. Happy debt-smashing!

Are you tired of living paycheck to paycheck and constantly worrying about money? I

It’s time to take control of your finances with our proven 7 Baby Steps plan. And the best place to start is with Baby Step One: The Emergency Fund.

Now, I know what you’re thinking. “An emergency fund? That sounds about as exciting as watching paint dry.” But trust me, this little stash of cash is going to be your superhero in disguise when life decides to throw you a curveball. You don’t want to be caught off guard by a flat tire or a sudden illness and end up reaching for that credit card. That’s the road to Debtville, and you do not want to visit there. As you know it gets very depressing at times.

So, how do we get this emergency fund set up?

It’s actually very simple, just save $1,000 as fast as you can. And I mean as fast as you can. This is not the time to be playing it slow and steady. Get your booty in gear and start hustlin’!

Now, you may be thinking, “But I don’t have any extra money to save!”

Oh! Yes you do! Let me help you find it.

Let’s talk about the magic of cutting expenses. Take a look at your spending and see where you can trim the fat.

Do you really need that $5 latte every day?

Or how about all those subscription services you never use?

Do we really need more than one streaming service?

Please get rid of them, my friend! Every little bit helps; besides, you don’t have time to watch TV anyway. Your number one goal is to get out of debt.

If you’re still having trouble coming up with the cash, it’s time to get creative. Can you pick up a side hustle? Sell some of your stuff on eBay or FaceBook MarketPlace? How about renting out a room on Airbnb? How about doing DoorDash or Uber? Pizza Delivery? The possibilities are endless!

Once you have that $1,000 in the bank, you can breathe a sigh of relief and pat yourself on the back.

Congratulations, you just took your first step towards financial freedom!

“But what if I need the money for something else?”

Sorry, my friend, this emergency fund is strictly off-limits unless there’s an emergency. And I mean a real emergency, not just because you really, really want a new pair of shoes.

Now let’s talk about the benefits of having an emergency fund.

First and foremost, it gives you peace of mind. You will no longer have to worry about how you will pay for unexpected expenses. Second, it prevents you from going further into debt. You won’t have to rely on credit cards or loans to cover emergencies. And third, it gives you financial flexibility. You’ll be able to handle unexpected expenses without having to make major changes to your budget.

Here is a question you may be asking, “Where do I keep this emergency fund?” I suggest keeping it in a separate savings account at the same bank. This way, your money will be easily accessible when you need it, and you will be able to transfer it to your checking account at a moment’s notice but remember, it’s essential only to use this money for actual emergencies. Train yourself not to be tempted to dip into it for non-emergency expenses.

We are changing our mindset! We are no longer normal. Normal is broke!

In conclusion, starting with the emergency fund is a crucial step in taking control of your finances. It gives you peace of mind, prevents you from going into debt, and provides financial flexibility. So, get to saving, and start building that new financial muscle today!

And remember, always keep it sassy and have a little fun with it. Money doesn’t have to be boring!

Need more ideas on how to save up for the $1,000 Emergency Fund?

Schedule Consultation Call with Jerry

“Let no debt remain outstanding, except the continuing debt to love one another.” (Romans 13:8 NIV)

One of the greatest things about my job is meeting new people. Whether it’s a book signing or a live event, I get to talk with people from all walks of life and from every corner of the country. There’s nothing better than hearing their stories about getting out of debt and winning with money.

But over the years, I’ve discovered something… not everyone understands what “debt” really means. For example, I met a young college guy who told me how he was going to school debt-free. I was really excited—until he started explaining what “debt-free” meant to him.

“Well, I do have a few student loans,” he confessed. “But I don’t have any debt.”

As I gently shared with him that student loans definitely are debt, I was reminded once again that people don’t always speak the same language. That’s why I want to be really clear about how I define debt: It’s owing anything to anyone for any reason.

Credit cards? Debt. Car loans? Debt. Student loans? Debt.

It’s all debt. And it’s all stuff you need to get rid of if you’re going to love your life.

In his letter to the Romans, Paul wrote about steering clear of every kind of debt. He said the only thing we should owe someone else is love. Beyond that, we need to be debt-free—really, truly debt-free!

Honestly, debt is full of lies. It tells you that you can have whatever you want whenever you want it, but then it steals your money and your peace of mind. It promises unlimited joy, but produces nothing but stress and frustration.

But it doesn’t have to be that way. You can change your habits by changing the way you think about debt. You can make some temporary—though possibly painful—changes right now that will let you live and give like no one else later.

By saying no in the moment, you’ll be saying yes to an awesome future and a life you can love.