Loaning or Borrowing Money from Family and Friends

Loaning or Borrowing Money from Family and Friends

June 27, 2016

Have you ever loaned money to a family member or a friend? What about borrowing money from them? We have done both and it didn't really do anything to help us but boy did it add more stress to our lives. It added stress by having to ask for the loan and paying it back or for us asking for repayment after loaning others money, and it does strain the relationships we have in our lives by loaning and borrowing money. The bible says that the borrower is slave to the lender, and after being on both sides of that coin, we know that to be a true statement!

So if you truly cherish the relationships you have, don't jeopardize them by loaning or borrowing money. It's not worth it!!

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The Two are United into One

 The Two are United into One

June 20, 2016

Some events have come about, some recent, others not so much, that made me think I should write this particular blog post. And although this post isn't going to be solely about finances, money does play into this based on the fact that money issues and money fights are the #1 cause of divorce in the U.S. today.

In the Late 90's

My ex and I were officially divorced. It was a very painful time for me. And after some grieving, I began to think about what went wrong. Were there any warning signs I missed that would have told me that my marriage was going sour. And years later, I know now that there was plenty of blame to go around. You see, we fought all the time. And not just about big issues, but about small ones too. We were also not truthful to one another either. Even though we were married, it seemed like we were living separate lives. And that's no way to live or have a marriage.

So once I decided to get married again several years later, I made the conscience decision to be an open book in ALL areas of my life to my new bride. I wasn't going to keep any secrets, I wasn't going to lie, I wasn't going to be sneaky or deceitful. And most of all, I wasn't going to argue about every LITTLE thing that happens. I do stand my ground on matters that I think are important, and so does she, and believe me, we have had our share of some good fights, but we worked them out by communicating and compromising with each other.

By doing all that, we have built a relationship based on a solid foundation where we know that we have each other's backs about EVERYTHING. So when I see other couples, married or about to get married, hiding things from one another, all I see is an unhappy marriage that will ultimately lead to a divorce. The bible says it this way, "At last!” the man exclaimed. “This one is bone from my bone, and flesh from my flesh! She will be called ‘woman,’ because she was taken from ‘man.’” This explains why a man leaves his father and mother and is joined to his wife, and the two are united into one." Genesis 2:23-24.

I have said it many times, you and your spouse are a team. You need to love, work, live, and act like it all the days of your married lives. And if you're not willing to do that, you don't need to be married. It's not fair to you or your spouse.

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You Have to Start NOW

You Have to Start NOW!

June 6, 2016

Planting a Tree

I don't know if you've ever head this question before... "When is the best time to plant a tree?" Answer... "20 years ago." Why? Because, depending on the tree, it takes about that long before you get a beautiful, mature tree. Here's a follow up question... "When is the second best time to plant a tree?" Answer... "Today." 

Investing for Retirement

The same is true with retirement savings. The best time to start saving was 20 years ago. But if you're just now getting started, today is the second best time. In this post, I'm going to show you some numbers that will show you why you need to get started on retirement savings as early as possible.

The Numbers

The type of savings plans in this post are going to be generalized. I'm just going to show the significance of what saving long term looks like. 

Let's say you're a 20 year old, just starting out in life. The company you work for has a retirement savings plan like a 401K or 403B. You start modestly saving $50 per month, and the investments you choose, gives you a rate of return of 10%. If that's all you do for savings, this is the result.

In 10 years you will have 

$10,778

In 30 years

$110,311

In 40 years (you'll be 60 years old)

$296,637

That's not a lot, but it's better than nothing at all. Now, let's run that same scenario again, but this time instead of saving $50 per month, we'll double it to $100.

In 10 years

$21,297

In 30 years

$218,877

In 40 years

$588,748

This isn't too bad. You could possible retire comfortably on this amount, but let's take it one step further. The average household income in the U.S. is $50,000 per year. And it is recommended that you start saving 15% of your income into retirement savings. That would be $625 per month. So let's run those numbers.

In 10 years

$131,743

In 30 years

$1.4 million

In 40 years

$3.7 million

Wouldn't that be an awesome retirement? But I know what you're thinking, "Keith, there is no way a 20 year old, just starting out in life, can save that much in the beginning."  And you know what? You're probable right. But the whole point to this post is to START SAVING what you can TODAY. Maybe all you can do now is save the $50 per month, but as your life goes on, your income will increase and so should your retirement saving. To use my wife and I as an example, any increases we get in our pay, goes towards retirement savings. Even a 1 or 2 percent bump in retirement saving can add up greatly over time. So don't rob yourself by saying, "I'm young, I have time". Because the truth is, there is no better time than NOW to start saving for your retirement.

Hey, If you haven't done so already, check out our Facebook page. I share all kinds of money tidbits there that you may find interesting. Hope to see you there!