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Fall  2009

Keeping an Umbrella Handy

-How to Establish a Rainy Day Fund-   

Do you currently save for emergencies? Big purchases? A car replacement in the near future? Other non-monthly expenses?

It's important to keep an umbrella handy...because it WILL rain at some point. And for sake of today's article, even though ALL the questions above are good ones to consider, we'll talk specifically about how to build up your Emergency Fund...

If you are breathing, you're likely to have an emergency come up in the near future...Do You Feel Prepared For It? Want to?

Here are some practical ways you can begin to set aside money for true emergencies:

•Figure out what you can contribute per month to savings, and begin to set that aside SPECIFICALLY for an emergency.

•Look at your budget and see what areas you can begin to cut back on, so you can save. Some possibilities could be: entertainment, eating out, cable, etc.

•Remember, you aren't saying "no" to these things forever, but for a little while so you can REALLY get some traction

•Take your tax return money, birthday money or any bonus money from your employer and lump that into your emergency savings.

•When you spend, always be asking yourself, what decisions will ultimately give me financial peace?

July 2009

Going on Vacation Without Spending an Arm and a Leg.

It's about that time of year, where you're getting ready to take off for a few days and relax with the family. Well, my husband and I just got back from a fun weekend in St. Louis, MO. I wanted to share a few ways we were able to save money by being creative with our activities and planning.

Here's what we did and how we were able to spend only $150 for the entire weekend. I hope this sparks some great ideas for you on how you can travel, have fun and not spend a ton in the process!

A little background first...we traveled with two other couples in one vehicle for the trip. St. Louis is about 4 hours from Kansas City and we left on a Friday morning, returning late Saturday evening.

•Snacks mid-way to St. Louis $8

•Dinner at a Pub in St. Louis $30 for two.

•One night hotel stay at the Hampton $0. (the blessing of hotel points from one of our travelers)

•the CITY MUSEUM $20 for two. After 5p.m. on weekends it's only $10 per person. (side note: if you haven't been here, you need to go! It's for adults and kids alike.)

•Late Night Unwind at a Scottish Pub $20.

•Saturday Breakfast at the Hampton $0.

•Trip to the St. Louis Zoo. $0. (It's all privately funded by donors!)

•Lunch at Pi Pizza, split between the 6 of us. $30 per couple (apparently this place is becoming well known across the U.S.!)

•Anheuser-Busch Brewery Tour $0. Free to the public and I must say it was more interesting than I thought it was going to be (thankfully)

•Coffee Run after the tour $4. For those of us that weren't interested in the free beer!

•Snacks for the drive home $10.

•Gas for the trip- split 3 ways- $28 per couple.

Total Spent for the Entire Weekend: $150

What ways can you save money on a vacation this summer? And how can you plan to be creative for any upcoming vacations?

 

8 Ways to Dramatically Improve Your Finances...Starting NOW. 

 a Back to the Basics Seminar

 

Do you want to makeover your finances, but don't know how to get started? On Monday Evening, July 13th, we'll walk through some realistic tangible ways you can get traction with your money. We'll talk through 8 simple ways you can improve your money situation, starting today.

 

Join me, Rachel Porter, Porter Coaching's Lead Coach on Monday, July 13th at 7p.m. for this seminar.

We'll talk about:

•How to Get on a Written Gameplan...that actually works.

•How to Make Saving a Priority

•"The Why" Behind Paying off Your Debts, Smallest to Largest

•One of the Surest ways to stay out of debt!

•How to protect yourself from Identity Theft...the fastest growing white-collar crime in America today.

To Register for this Event click here.

Registration Includes:

•45 Minutes of Coaching AND Q and A.

•Access to Future Back to the Basics Seminars for FREE.

Total Value: $49

Early Registration Discount(by July 10th): -$49

Your Price with Discount: FREE

 

48 Days to the Work You Love

 

Our next 48 days workshop starts August 11th and we have 5 spots remaining for the class!

 

"I have enjoyed the course and Rachel's enthusiasm. Rachel shines with inspiration and the concepts presented are extremely useful, wherever you're at in the process of finding work you love. Being a banker/bean-counter I don't like parting with my money, but I've seen the enormous benefit in the 48 days course. It is well worth it. " - Heath Chapman

 

This workshop is a great fit if:

•You look forward to the weekends and not your work week ahead.

•You've ever thought, thank God it's Friday, oh God it's Monday.

•You feel that your passions, talents and abilities aren't being utilized at your current job

As a part of this workshop you will receive:

 

*12 hours of coaching ($800 value)

*DISC Profile Personality Test ($97 value)

*48 Days Career Kit; including workbook, book, and 2 full-length career coaching audio cd's from Dan Miller ($349 value)

 

Total Value: $1,246

Your Price: ONLY $399

Early Registration Discount (extended to July 15th): -$50

To see a summary of the class and watch a testimonial video please click here.

To Register for the event OR if you have further questions please contact us here. 

 

All my best, 

 

Rachel Porter

Porter Coaching

A big question people are asking in our current economic climate is, How Do I Stay Motivated While Paying Down Debt? That's a great question and here are some basic tips to keep in mind, while getting control and traction with your finances.

1. Have a Vision to Live Debt Free.

    • Know why you're sacrificing what you're sacrificing. Keep the BIG picture in front of you.

    •If you're choosing not to eat out while you pay down debt, you're not saying no to it forever, but for just a little while so you can get traction in dumping debt.

    • Get creative! I had a client put up a pie chart of their debt on the fridge and watched it trickle down as they paid things off.

2. Surround yourself with people, events, books, articles, etc. that will encourage you on the path you're living.

    • Hang out with people who are of like mind

    • Attend a personal finance seminar (I host them monthly at my office)

    • Work with a coach, whether you engage with coaching or e-mail once in awhile with  a  simple question to get feedback

    • Subscribe to money podcasts, newsletters, blogs, etc.

3. Live on a Written Game Plan, Spend Your Money on Paper, BUT Don't Obsess Over It.

    • Make sure you're spending your income on paper before each month begins, but with that said, every conversation you have doesn't need to be about money.

    • Decide on the budget, then live out your week. If you have any "extra or unexpected income" for the month, have an emergency BCM (budget committee meeting) and decide where it will go.

    • Your days don't need to be littered with money talk. Don't get me wrong, I want you to stay motivated and on top of your money, but sometimes there's a real need (especially if you feel burnt out) to decide on what the budget is, relax and then live accordingly

How You Can Prepare for the Rising Cost of Medical Care

a guest article by Lane Constant

One of the best ways for you and your family to save on medical care is to utilize a Health Savings Account or “HSA”.

What is an HSA?

    •The health savings account legislation was signed into law by President George W. Bush on December 8, 2003.

    • An HSA is a tax-sheltered savings account similar to an IRA, but funded for future medical purposes. Some financial professionals refer to these accounts as a new type of "medical IRA".

    • HSAs were developed to help individuals currently covered under a high-deductible health insurance plan to set money aside in a savings account to pay for medical expenses that are not covered by insurance.

    • As defined in the new Medicare legislation, a high-deductible health insurance policy is one with a deductible of at least $1,050 for individual coverage and $2,100 for a family.

To be eligible for an HSA, an individual must meet the

following criteria:

    • Must have a high-deductible health plan policy

    • Cannot be the dependent of another taxpayer

    • Cannot be enrolled in or eligible for Medicare or other health                              insurance

    • Must be under the age of 65

Reasons You Should Have an HSA

Portability –

You and your family are the ones in control. Even if you change jobs, your HSA funds go with you.

Reduction of Insurance Premiums –

By selecting a high-deductible health insurance plan, you can reduce your annual premiums and then use the savings to fund your own HSA.

Tax Deduction –

Federally qualified HSA contributions can be deducted from gross income on your federal tax return, providing you with a nice tax break. Some states even allow the deduction on the state income tax return.

Long-Term Health Savings –

You control the contributions and the investments in the plan. It's a great way to save long term for unexpected medical costs, or you can use the funds for retirement after age 65.

Tax-Free Growth –

Contributions, investment growth and withdrawals for health-related expenses are all tax free.

May 2009

I’m Debt Free, Now What?

For some becoming debt free, is still a little ways off in the distance. But for others, you have recently become debt free (except your home) or maybe even your home! When you are no longer in debt, it is such a freeing feeling, but with that often times comes the feeling as well, of Now What? 

You've spent months, perhaps even years, sacrificing to pay down your debt and when the time comes when you have a ton of cash flow to do something else besides pay down debt with, what do you do with it? Here are some practical ways you can continue stay on track and thrive with your money, once the debt is gone...

 

•Celebrate! If you've recently paid off that last debt, WAY TO GO! You've come a long way and probably sacrificed a ton in the process. Go and celebrate your accomplishment. When Landon and I paid off our last debt, we went out to a nice dinner and reveled in the fact that we didn't owe anyone a dime!

•Encourage Others. We have a lot of nay-sayers in our culture that try and tell others, Becoming Debt Free Just Isn't Possible or Practical. Get out there and share with friends and family how you were able to stay focused and pay down that debt. With all the negativity that's going on, we need people like you to shout from the rooftops that getting out of debt is possible!

•Continue to Save. When you are debt free (except your home) continue to save in your emergency fund. You want 3-6 months of expenses in savings, so when an emergency happens (and one will at some point if you're breathing) you have money to pay for it, and don't have to rely on MasterCard.

•Keep on a Budget. Just because you're debt free doesn't mean you stop budgeting. Your goal should be to have a monthly budget the rest of your life! You've freed up some monthly income now that you're debt free, that you can allocate to other places, but you still want to give every dollar you have coming in a name.

•Continue to Grow. You will always have the opportunity to learn something new about yourself and your finances. Read a personal finance book, attend one of my Back to the Basics monthly seminars for FREE (see below), ask me about key referrals I can provide for you (i.e. realtor, accountant, health insurance and auto agent, investment broker.)

 

Debt and Credit, Do I Need It?

 a Back to the Basics Seminar

 

Only 48% of Americans pay the minimums on their credit cards every month.  If you aren't getting traction with your finances or paying down debt as you'd like, I can teach you how to get on a plan that will have most of you debt free (except the house) in 24 months or less, even in these tough days.

 

I know that paying down debt isn't easy. It can seem really overwhelming, or quite confusing at times.  Many people close their eyes to their debt and continue to pay the minimums, just to get by.  Well, if you're ready to be in a place where you're not only surviving, but thriving, give me an hour of your time and we'll walk through some realistic tangible ways you can start to eliminate your debt and attack it with 'gazelle' intensity.

 

Join me, Rachel Porter, Porter Coaching's Lead Financial Coach on Monday, May 11th at 7p.m. for this seminar.

We'll talk about:

•The Truth About the FICO Score

•How to Pay off Your Debts, Smallest to Largest

•Dealing with Creditors

•Saving for a Rainy Day So You Have an "Umbrella"

•Getting Rid of ALL Your Debt in About 24 Months (except the house)

1. •How to Get Current if You Are Behind on Debts You Owe
   

Register Now for this Event.

Registration Includes:

•60 Minutes of Coaching

1. •Access to Future Back to the Basics Seminars for FREE
   

 Total Value: $49

 Early Registration Discount (by May 9th): -$49

 Your Price with Discount: FREE

April 2009

Are You Held Up by the Fear of Change?

Every week it seems people want to talk to me about how to discover the work they love.  In fact, today I had a 30 minute phone conversation with my good friend about this very topic.

We talked about our mutual passion to help others achieve their life goals in pursuit of their dreams.  We wondered out loud about how as a society we simply never seemed to get around to creating environments to raise up people to embrace and pursue the work our God "made" us to do.

I shared with my friend my viewpoint that God has woven us like a fine fabric -- unique in every aspect.  Just like fabrics, we all take along our different textures, patterns, colors and other unique attributes (water or fire retardant, etc) through life.  Our "fabric" is determined by our personality style, strengths, passions and purpose.

"I was not encouraged as a young person to discover myself and find the work that truly fits me".  It seems the majority of adults feel this way.  However, if we understand these truths now, then why do we not immediately create more nurturing environments to help our children discover their calling or even encourage friends, who have recently lost a job, to pursue their real passions? 

There could be many reasons why we continue the cycle of dissatisfaction with our work.  The possibilities are many:

    * The perceived safety of our current job trumps the apparent risk of going elsewhere.  It feels scary to trade the safety of the known with the risk of the unknown.  Security is with our employer, not in the possibilities that lay between our own ears and within our heart.

    * We don't want to embarrass ourselves or disappoint our family with our dreams and personal desires.  "Boy, get your head out of the clouds and get back to work!"  Do you see it as imperative to nurture your child's -- and your -- dreams and passions and help them learn to pursue them for the good of others ... even if they don't reflect your desires for their life?

    * We don't truly belief we're worth something better.  We may believe what our boss, siblings, mom or dad, "friends" -- our ourself -- says or thinks about us.

    * Work is for money, and our free time is to compensate for work we don't love.  I can't have my cake and eat it too.

    * We don't know how to break the cycle, so we stay with the "tried and true" work we know.

"Cursed is the man who has found some other man's work and cannot lose it.  When we talk about the great workers of the world we really mean the great players of the world. The fellows who groan and sweat under the weary load of toil that they bear never can hope to do anything great.  How can they when their souls are in a ferment of revolt against the employment of their hands and brains?" ~ Mark Twain

If you're held up in the fear of change here are a few thought provoking questions to ask yourself:

          o What would you do if there were no way you could fail?  If                               you were an expert?

          o What is:  one place you want to visit, one thing to do before you die (create the memory of a lifetime), on thing to do daily, one thing to do weekly, one thing you've always wanted to learn?  Deposits of success in other areas will often help you make breakthroughs in your career.

          o Define the nightmare of doing nothing: staying in the same work your in now.  Clearly lay out what is so bad for you in your current job.

          o Define your nightmare:  the absolute worse thing that could happen if you did what you are considering.

          o What steps could you take to get things back on the upswing (even temporarily) if you left your job and your nightmare happened?

          o If you were fired from your job today, what would you do to get things under financial control?

          o What are you putting off out of fear?

          o What is it costing you -- financially, emotionally and physically -- to postpone action?

          o What are you REALLY waiting for?

Regardless of your age, here are a few suggestions you may find helpful in the pursuit of the work you love:

    * For kids and adults ages 15 and up, consider the Strengths Finder 2.0 (www.strengthsfinder.com) developed by the folks at the Gallup Organization in concert with the late Dr. Donald Clifton.  It also is extremely insightful; I use with with all my career/life coaching clients.  You may purchase the book online or at a local bookstore.  Be careful to not purchase a used copy, since you'll need a fresh access code to take the included assessment.

    * Take a personality and career assessment.  This will compliment the strengths assessment mentioned above with an in-depth report on your personality style (motivations, fears, environments where you'll thrive, your leadership style, etc).  My favorite is the extensive Personality Report System.

    * Read 48 Days to the Work You Love by my friend author Dan Miller and do what it says.  If you're more entreprenuerially bent, devour Dan's newest book No More Mondays.

1. *If you want to get into an online "virtual" business, check out Tim Ferris' The 4-Hour Work Week.  Tim will show you the ropes on how to run your online business from virtually anywhere in the world.  Really.
   

 

  * Read, read, read.  There are nothing like good books to inspire -- and cleanse -- your mind.  If you want your body to look like you move it, exercise and eat well.  If you want your mind to be sharp and full of possibilities, read.  You don't have to invent it yourself; let others inspire your creativity.  The answer is not in the TV set.

48 Days to the Work You Love Workshop.

Can you imagine going to bed Sunday night, eager for Monday morning to arrive and your  workday to begin?

I am excited to announce Dan Miller's 48 Days to the Work You Love Workshop, co-led by Dan Miller on DVD and Rachel Porter in person. The setting is a very small group of 6 - 10 people. I intentionally keeps the group small for better discussion and a more intimate setting.

Prepare to have your world rocked when we uncover and lay out what is wrong with "work" in today's world. What has changed and why people are sacrificing their spiritual and physical health to daily jobs that have no meaning in their lives. And - the path to a true, meaningful, fulfilling and life-rewarding "Vocation."

In this 48 Days To The Work You Love Workshop, you will learn how to:

    * Discover your God-given and perhaps buried talents

    * Take your talents and create a clear focus

    * Embrace the "gift" of meaningful work

    * Experience the freedom that comes from finding your passion

    * Understand the differences between "vocation," "career," and "job"

    * Go through defeat and "failure" and come back twice as strong

    * Find job possibilities that never appear in the newspaper or online

    * Turn your own ideas into extraordinary income

    * Decide whether you want a "traditional job" or one of the new work models

    * Build up your assets , even while unemployed

    * Find your IDEAL WORK - and LOVE it!

The Details. 

When: Tuesday, April 21st, 5:30-7:30p.m. We will meet for two hours each Tuesday evening, for 6 weeks.

Where: 7450. W 130th St. Suite 140 Overland Park, KS

Investment: $149, Couples:$189 (All materials included)

Workshop Dates: April 28th - May 26th

For More Information or to Register:

Please contact me at 913.832.0494 or click here.

Limited seating will be available so sign up soon.

March 2009

8 Ways to Dramatically Improve Your Finances...Beginning Now!

Regardless of where you stand financially right now, it's so important (if you're not already doing so!) to get on the path to improving your money situation -- ASAP!  In times of economic stress and uncertainty such as now, there's nothing more important than solidifying your financial foundation.  Especially when "fixed" savings vehicles such as CDs, Money Market accounts, Treasury bills, etc are paying near all time lows, eliminating debt and the "guaranteed" interest associated with it are no-brainers.

Here are my top 8 Ways to Dramatically Improve Your Finances . . . Beginning Now:

1. See where you’re spending. Start your plan by writing down where you spend every dollar over the next month. You may be surprised at what you’re spending money on – and how much you’re spending on certain things.

2. Make a budget.  If you're married, you both MUST agree to it.  Once you know what you’re spending and where, create a written budget and stick to it. It’s the most effective way to stay within your means and curb bad spending habits. Be sure to review your expenses against your budget monthly.

3. Eliminate your debt - ALL of it. The more debt you can pay off, the less interest you will have to pay, and the more you can funnel into savings and investments for the future.  Start first with getting rid of all your debt except your home mortgage, which you can begin attacking after you're saving at 12-15% of your gross income, and adequately putting away money for your children's college.

4. Start Saving. A savings plan helps meet financial goals and provides security. Set aside a percentage of your monthly income as savings. Twleve to fifteen percent is a good target if you’re in your 20s or 30s, increasing it if you’re older and behind in your retirement planning. Make it the first “bill” you pay by setting up an automatic investment. Get out of debt first (except your home), though.

5. Plan for your retirement needs. Contribute to an IRA or participate in your company's 401(k) plan. the yearly maximum you can contribute to these tax-advantaged plans changes: this year it's $5,000 in your IRAs and $16,500 in your 401(k), with additional "catch-up" contributions if you're at least 50 during the '08 calendar year. The catch-up is $1,000 for IRAs and $5,500 for 401(k)s. If you have difficulty determining your retirement savings requirements, work with a good (one with the heart of a teacher and coach) investment advisor or financial coach to work out your plan.

6. Pay with cash. It’s one of the surest ways to stay out of debt and easily control your discretionary spending. Cash categories should include: Groceries, eating out, clothing, entertainment, misc (such as dry cleaning & postage), personal care, and “blow money” (personal spending).  You'll will save more money and get out of debt quicker using the cash system than practically any other method except selling stuff.

7. Protect yourself from identify theft. Receive an early warning of potentially fraudulent activities. www.AnnualCreditReport.com is good for one free credit report each year from each credit bureau. If you find errors or activity you don't recognize, dispute them with the bureau reporting it and with the creditor involved.

8. Keep good records. Save yourself from scrambling at tax time – and don’t miss any deductions – by organizing your financial records early in the new year. Be sure to save receipts, cancelled checks, pay stubs, bank and investment statements, and any other proof of deductible expenses paid, including your small business (if you have one).  Sure enough, the IRS is changing some of the allowable deductions again in 2009 (currently we have over 67,000 pages in our tax code), so you may do well seeking the advice of a qualified CPA or tax preparer.

Launch of the Coaching BLOG.

I'm very excited to introduce the launch of the Porter Coaching BLOG.  I plan to update the BLOG several time a month, so check in often to see what's new. The Porter Coaching BLOG is the place to find vital information on relevant and current financial matters . . .  matters that impact you and those you love. The BLOG is also a forum where you and I can converse about all things financial AND it's a place to get to know us a little better and see what's going on with Porter Coaching. So, check it out, leave your comments and visit often. www.portercoaching.blogspot.com