Taking Charge

In our Workplace Financial Literacy series better known as Taking Charge of your Finances, we spend some time talking about goals. In it we have a talking point that reads, “Your direction will determine your destination”.  We are confident that this is never truer than dealing with your current financial situation.

If your situation a going the wrong way, meaning you are living above your means, your destination should be pretty clear. Divorce, bankruptcy and job loss are just a few “destinations” you will find yourself.

I hope that you will take a step back and see the direction you are heading. If you don’t like the destination it is never to late to change. Looking for some inspiration, check out our UPCOMING EVENTS page for area events that may have what you need. Want a professional to talk with CONTACT US we are here to serve.

Nothing is FREE With a Loan

I say this because at my lunch appointment the other day a business associate of mine begins to talk about his recent refinance experience (keep in mind he has no idea about my affiliation to Lighthouse) and how his personal friend, VP of a local bank got him a 3.85%.  I was interested but unlike most people it was not because of the rate he received but how and why he came to believe that he got such a good deal. 

I nod excitedly so to bait him into giving more info and he gladly does. It turns out that his wife and him were not exactly looking to refinance but they had just talked about needing a cosmetic home improvement. It just so happened that this friend the VP at the local bank called and mentioned that they could get this improvement for FREE if they refinance into a 30 year mortgage.  So they paid for the work ($14,000) lowered their interest rate and the best thing according to him is that the monthly payment stayed the EXACT same, hence they got the floors for free.

Now my associate is stuck with at mortgage payment for another 30 years and will be paying 3.85% on this improvement for 30 years as well. What he should have been advised is that a 15 year mortgage would have a monthly cost of close to his old payment but rather than the $14,000 addition to the loan they could have saved $100,000 or more by going to the 15 year structure.

Good advise is to talk to at least 3 mortgage professionals before you decide on what to do with your financing. Buying a house or refinancing is often the largest single investment most people will make and should not be done with emotion but rather logic.

Top 10 Shopping mistakes at Christmas

Top 10 Shopping mistakes at Christmas

We’ve all paid “stupid tax”—making costly decisions with zeros on the end. A lot of those decisions happen when we’re caught up in the emotion of the Christmas season and procrastinate a little too long.

Make this year different!

Here are the top 10 Christmas shopping mistakes and how you can act differently:

Not prioritizing.
Instead of getting stressed out with all the parties, baking and shopping, in addition to your normal daily life, set some priorities before you’re bombarded with a million requests. Think about which things are “must do” and which are “would be nice to do.” It’s all right to say no to keep yourself sane. Shopping for gifts is more fun when you’re not completely stressed out.


Not using a budget.
Before you make a gift list and head to the mall, set aside a reasonable amount of money for gifts. Make a commitment that you won’t add $20 to the fund every week just because you saw something cute that your niece would love.

Using credit cards.
Once you have your budget finalized, stay away from credit cards! You will still spend 12-18% more if you use plastic, and you’ll be paying it off come 2009! Doesn’t paying with cash sound more freeing than having a credit card balance looming over your head? You bet.


Buying for everyone.
Do you really need to buy gifts for every family member and friend you have? That can get overwhelming and expensive for everyone. Talk with them and work toward an agreement to draw names for gifts or donate money to a common cause.


Not listening.
Listen to the hints your loved ones drop about what they need or want this year. Maybe your Aunt Sally mentioned that she would love someone to help her in the garden, or Cousin Bob keeps losing guitar picks. A thoughtful gift like this will mean a lot.


Not having a thought-out list on paper. 
If you think you can spend time in “Christmas retail world” without getting distracted by all the shiny toys, you’re in for a big surprise! You’ll be more likely to buy impulsively if you do it that way. Write down what each person you’re buying for would like and stick to the list. Stay focused! 


Not shopping around.
“Shopping around” doesn’t mean you have to spend 24 extra hours running from store to store to save 10 cents. Take a look at your gift list and do some comparative price-checking online before you head out into the retail and traffic madness. This will save you money, time and stress!


Waiting until the last minute.
Procrastination is not the most appealing gift out there. Don’t find yourself stressed out on Christmas Eve just because you didn’t invest a little bit of time to plan. 


Forgetting to plan for next year.
Throughout the next year, look for outrageous sales on things your loved ones will need. If you time the sales just right and clip some coupons, you could land a major discount on something you were going to buy in a few months for a birthday or wedding gift. Remember to have a list and budget for this, too.


Forgetting why we celebrate.
If this season becomes all about shopping and gifts, you’ve missed the whole point. People—not things—matter. The miraculous birth of a baby who changed the world is what matters.