saving tips

According to Morningstar (a firm that analyzes and rates mutual funds), over the last 10 years ending December 31, 2021, the average rate of return of all mutual funds is 8.51%.  

That is looking at large, medium, and small-cap funds as well as international funds and bonds. Basically, that's all different types of stocks and bonds averaged out.
 
That is a whole lot better than what you can get in a high-yield checking or a savings account. 

Today, Dave is going to show you have to have great mutual fund returns like this… AND it’s almost completely painless to implement. 🙂

There is a very straightforward way to find the right mutual fund for your portfolio. This is not rocket science or scary as some might think, but it is a very simple process to accomplish.

Listen in on this episode as Dave teaches a very simple investing formula for investing in smart, fairly low-risk mutual funds.

Questions for Review:

• Do you have an automatic investment strategy set in place? [AKA: Dollar-cost averaging]
• Does investing in mutual funds scare you OR does it take the risk/fun out of investing?
• What's the right mutual fund investing mix that you want to set up today?

The verse from the Episode: "Keep your life free from the love of money, and be content with what you have, for he has said, ‘I will never leave you nor forsake you." -Hebrews 13:5

A recent survey found that 71% of people think social security will run out!

Are you one of them?

Do you believe that when you get to retirement age there will no longer be money left there for you? Is that true?

Listen to this week's podcast as Dave shares 4 of these common financial myths that are being perpetuated today as Dave questions their validity.

Remember that ½ of the people retire early because they had to & NOT because they wanted to.

So again, please plan now financially speaking so your retirement will be awesome!

As you think of your future, many want to travel extensively or maybe live abroad. If that is YOU, then I dare say you will need a good chunk of money to do those things.

Living on social security income and a small stash of cash is just not going to do it.

Questions for Review:

• How many of these 4 financial myths are you currently believing?
• What unforeseen circumstances might slow you down in retirement?
• What's holding you back from building your retirement savings?

The verse from the Episode: "Therefore, my beloved brothers, be steadfast, immovable, always abounding in the work of the Lord, knowing that in the Lord your labor is not in vain." -1 Corinthians 15:58

Are you in the camp that says I prefer to live my life now with all its benefits, OR are you a person that delays gratification for a future reward?
 
Listen to this, if you put the same amount of money in a traditional IRA and the same amount in a Roth IRA at the same time and received the same return, you would have the exact same amount at retirement… right?

Yep, that's certainly true. However, what’s VERY different is when you withdraw that money at retirement.

Listen in as Dave will share how one IRA will net you a considerably higher sum at retirement! 

What? How can that be?

If right now you're going, "I have NO idea what Dave is talking about…Roth, Traditional, Pre-tax, after-tax??? It’s all Greek to me."

Well, hang in there as Dave does his best to make it a bit more clear… That said, if you take nothing else from this episode, take this - NO matter your age, begin to save NOW for your retirement.  

Sure you need to have a basic knowledge of the subject, but honestly, the most important issue is to START saving systematically with automatic withdrawals from your paycheck and straight into your retirement account. 

Today you are going to learn the key benefits and drawbacks of both Roth IRAs and traditional IRAs.

Dave has a clear favorite and you will learn why it likely makes sense for you in this episode.

Questions for Review:

• Do you know what the difference is between a Roth IRA and a Traditional IRA?
• If you had $1M at retirement in a Roth IRA and $1M at retirement in a traditional IRA, which one would be worth more at retirement? Why are the numbers different?
• What step do you need to take today to invest in an IRA?

Verse from the Episode: "Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it." -Proverbs 21:20

Today we’re going to discuss a financial product that is in my opinion THE BEST way to achieve a truly awesome retirement!

Do you know why? 

If not, please take a minute and I’ll share with you about a financial product called a Roth IRA and why it’s so important to your future as a retired person.

First of all, just saving for your retirement in an IRA is awesome! If you do that, you’ll be further ahead than 60% of your neighbors!
 

There are 2 Roths available to many income earners, the original Roth that anyone can have & a newer Roth 401K (both have certain income, contribution rules, and required minimum distributions).

These are both fantastic and the main reason they are is YOU will NEVER be taxed on that money upon withdrawal vs. a traditional IRA.

Most income earners are eligible. 

However, there are some big differences between the Roth and Roth 401K. Learn all that and much more on this week's episode.

Please don’t wait, don’t put it off…open a Roth IRA today. You will be so glad YOU did.

Questions for Review:

• Do you currently have a Roth IRA or Roth 401k setup?
• What's stopping you from investing in your retirement today?

Verse from the Episode: "Every prudent man acts with knowledge, but a fool flaunts his folly." -Proverbs 13:16

Are you on track for your retirement?

If you are, FANTASTIC, if you are not, or maybe are just not sure, stay with me here and we are going to do our best to help you in your personal finances.

Learn all that and much more on this week's episode as Dave breaks down 3 things to consider when you ask yourself, "Am I saving enough for retirement?!"

Here's another probing question for you.

Do you tend to keep a large balance in your checking account / savings account?

If so, it may be a sign that you do not have enough going into your retirement accounts... Or it could be you just don’t know what to do with it so the can gets kicked down the road another day.

That's just one thing to consider when determining whether or not you're saving enough for retirement.

The "extra" money in your checking account is not doing you any good in regard to having a fulfilling retirement.

Put it to work in a 401K or IRA today! Whatever your age, start now and open a retirement account or add to your current one.

You should save a minimum of 10% for that.

Questions for Review:

• Does it feel like you are on track for retirement?
• Do you have extra money (not needed in soon) working for you, compounding through growth assets, or do you just have it sitting in an ordinary checking or savings account?
• What one step can you take today to better prepare for your future?

Quote from the Episode: “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” ― Albert Einstein

In most of my prior podcasts, I’ve covered things you can and should do to be successful in your personal finances.

Well, today I want to share a couple of financial decisions that you may not necessarily need to do.

The two main pieces of financial advice that Dave discusses in this episode are target rate retirement funds and revocable living trusts.

Perhaps, you might be wondering what exactly are these two things.

Learn all that and more on this week's episode.

Target Date Funds are good, but other funds may be a better fit depending on your circumstances. Do your homework and make the decision that is right for YOU.

Trusts are important for some, say if you have a property in another state or someone in your family is disabled, but maybe not if you are young with just a few assets as an example. If you have very little financially you should not need a trust, but please, please take an hour and make a will as it's not expensive.

Don’t let the government decide where your assets will go if you die prematurely.

If you plan now you WILL be happier later when you retire.

Questions for Review:

• Have you ever invested in a target-date fund and if so are you aware of how much risk you are taking on/or not taking on?
• Have you thought about what would happen if you were to have that untimely death? Where would your assets go?
• Have you taken the time to set up a simple will? Think today about what you would want to have on it.

Quote from the Episode: "The man on top of the mountain didn't fall there." -Vince Lombardi

92% of people who set New Year's goals do NOT achieve them! 

Wow, that is very unfortunate. Today we’re going to talk a bit about the other 8%.

Which one do you lean towards, thinking or doing? Let’s see where you fit in and how you can improve your odds on this week's episode.

There is a balance between thinking and doing.

Change does not come easily but with the right plan, it can be done. It's important to think through what you are going to do, but if you don't actually go out and execute your plan, it is a worthless plan.

It's so important to set clear, difficult but attainable goals that can be broken down and achieved step by step along the way to the finish line.

Also, accountability to someone like family or friends can make a huge difference to your overall success.

How badly do you want this? 

YOU have to want to win in your finances so badly that NO object or PERSON is going to get in your way. Take charge today and win with money!

Questions for Review:

• What do you struggle with most, thinking or doing?
• How can you push yourself to be more of a doer (and not just a thinker)?
• What's holding you back from winning with money? Once you have that identified, how can you take that one small step to change your future outcome?

Verse from the Episode: "The plans of the diligent lead to profit as surely as haste leads to poverty." -Proverbs 21:5

Just under 5% of people in the age group of 18-55 years old Americans are early retirees.

I recently read a story of a guy who retired at 37 only to go back to work only 2 years later.

He found that retirement was sorely missing 3 things: human connection, work fulfillment, and money.

Stopping work is not the be-all, end-all for some people. Work can be exciting, rewarding, and a key to your personal happiness.

I retired at 55 and have been living off our investments for over a decade now and for us it’s worked out very well. We all have just this one life to live, so if you can do it, I say give it a try.

You can always go back to work right?

However, from this podcast today we have learned it may not be for everyone. Something to consider very seriously before you take the plunge.

YOU want your work to be rewarding and to bring you joy. SO if that’s not happening, maybe it's time to look for something else that would fit better.

The important thing is to live with intentionality and start saving and investing today so that you have the luxury to consider retiring at a younger age.

Questions for Review:

• Do you want to retire early?
• What would it take for you to retire early?
• If you were to retire early, what would you do to occupy your time?

Verse from the Episode: "Do not be anxious about anything, but in everything by prayer and supplication, with thanksgiving let your requests be made known to God." -Philippians 4:6

Believe it or not, according to the statistics, 70% of lottery winners end up broke and a third go on to declare bankruptcy.

With this new windfall of cash, lottery winners tend to spend way more than before they hit it big... and once you add in poor investment choices they burn through the money in next to no time. From rags to riches then back to rags again.

In this episode, Dave is going to help you master your understanding of money.

Dave recommends 6 tried and true books on finance and investing that he has read and widely recommends to others wanting to get better educated.

If you're serious about winning with money, we suggest you go to the library or Amazon and pick up a couple of these books that sound most interesting to you... Even an audiobook will do.

It's time to get started and to get educated on money.

Questions for Review:

• Have you ever read a book on money or investing?
• How does better educating yourself financially play out in your own decisions and future?
• What is one book you are going to start reading this week?

Verse from the Episode: "A faithful person will be richly blessed, but one eager to get rich will not go unpunished." -Proverbs 28:20

We spend our lives working hard and dreaming of the day we can finally retire... But planning for retirement requires more than dreaming — it means being strategic and focused on consistent saving, among other things.

In this episode, Dave shares 6 stark differences (from this article) that separate comfortable retirees from those retirees that are just struggling to get by.

As a whole, you can mostly lump retirees into 5 categories: affluent retirees, comfortable retirees, average retirees, struggling retirees, and “just-getting-by” retirees.

This week we walked through what we hope you to eventually become, a comfortable retiree!

Listen and learn as Dave shares these 6 common characteristics of comfortable retirees.

Your retirement can be exciting and fulfilling but you must have a plan. Over time YOUR faithful saving and investing will provide for the retirement YOU desire.

Questions for Review:

• What track are you on right now? Are you currently on the path to being an affluent or comfortable retiree or are you currently on track to become a "just-getting-by" retiree?
• What is the hardest aspect of saving for retirement [for you]?
• What steps do you need to take today to become a comfortable retiree?

Verse from the Episode: "For as he thinks within himself, so he is." -Proverbs 23:7

Currently, millennials spend more than $3,000 a month on eating out.

Is that you? Do you fall into that category?

In this episode, Dave walks through 4 meaningful expenses that you can cut out or likely lower with just a tiny bit of focus.

If you are challenged financially during these crazy times, please know that you are not alone. If you're struggling, but don’t know where to start, this is the perfect episode for you as we share 4 practical examples.

By just taking a little bit of time one night on the computer you can save hundreds of dollars per month on many of your "fixed" costs.

The examples from the episode are what we call "low-hanging fruit" just to get you going. I'm guessing there are a lot more things you can do.

Take a look at each expense from last month and see where you can save. Little changes can have a dramatic effect on YOUR bottom line.

Questions for Review:

• Do you have a system in place or use a service like Mint.com to track your monthly expenses?
• Right now, what is your biggest monthly expense?
• What one subscription from this past month can you call on or email to lower? Is there an expense you can cut out entirely?

Verse from the Episode: "Why do you spend your money for that which is not bread, and your labor for that which does not satisfy? Listen diligently to me, and eat what is good, and delight yourselves in rich food." -Isaiah 55:2

How much money has the average 30-year-old American saved?

The median bank account balance for this age group is just $3,240.

In this episode, Dave compares and contrasts 3 different countries' savings rates.

The 3 countries explored are China, the United Kingdom, and Germany.

Each one of these countries has a very different savings rate and the important thing is it doesn't completely depend on how prosperous the people are.

Learn how different factors, both economically and socially, make up each country's rate of savings.

In addition, Dave briefly compares how the United States and Canada stack up.

It's an interesting episode that you don't want to miss!

Questions for Review:

• How does your personal savings rate stack up against these 3 countries?
• What percentage of your income can you feel comfortable saving today?
• Do you have a goal to save a certain amount each month? If so, what would it take to accomplish that goal?

Verse from the Episode: "Bring the full amount of your tithes to the Temple, so that there will be plenty of food there. Put me to the test and you will see that I will open the windows of heaven and pour out on you in abundance all kinds of good things." -Malachi 3:10

Oscar at the Minx premiere 

Minx on HBOMax 

Eric Roberge, a Certified Financial Planner, can tell if you are good with money by how you handle these 3 things.

What are these three things you ask? Listen and learn on this week's episode.

Are you a saver or spender?  

We touched on this topic in podcast #8, but if you tend to be a spender, I want to challenge you today to think differently and to set up processes to change that behavior.

In this Podcast, Dave will relate both the Nike "Just Do It" campaign along with Apple's "Think Different" advertising campaign as you embark on your very own personal finance journey.

It's time to stop keeping up with the Joneses and finally start living for your future. Focus on YOUR goals and YOUR dreams.

As you begin this journey towards becoming a systematic saver you will start seeing positive results and YOU will win in the area of personal finance!

Questions for Review:

• In what ways do you fall victim to the old montage of trying to "keep up with the Joneses"?
• How can you start to "Think Differently" about your personal savings habits?
• What one thing can you do today to change how you see yourself with money (your identity)?

Quote from the episode: "Clarity comes after commitment has been made." –Ellie Drake

According to the Center for Retirement Research, 53% of US households are at risk of not having enough saved for retirement to maintain their current lifestyle.

...Yikes, that's over ½ of the U.S. population.

In this episode, Dave shares how sometimes the littlest things can keep you from being a good saver.

In many cases, there are tiny friction points that prevent you from taking action.

When we don't know what to do, we often do nothing or stick with what was chosen for us.

Dave is going to show you how to get over the small little hurdles that are likely hindering your financial success.

Don't let inertia hold you back from winning with money. 

When faced with a difficult financial decision, don't put it off until tomorrow- do it now!

Questions for Review:

• What important financial decisions are you putting off until tomorrow (procrastination)?
• What is that one small first step that you can take today to start your journey to winning with money?
• If saving was easy, what would it look like?

Quote from the episode: "When a man with money meets a man with experience, the man with the experience ends up with the money, and the man with the money ends up with the experience." -H. Jackson Brown Jr.

For today's episode we are trying something a bit different! Every week, the Empower with Mihi podcast instagram page receives messages from listeners asking for specific advice but I've realised that most of the time, the queries I'm getting are appliacble to many of us, so every month I will do an advice column-esque style episode with listener queries where I  will speak to a few of the issues that have been raised. In today's episode, I answer the following questions:

• Do you have any first home purchasing advice?
• I'm having a hard time with saving my money and keeping my money in savings - do you have any tips?

Let me know what you think!

Visit MY WEBSITE for free resources & more! Let's chat on INSTAGRAM & TIKTOK or you can flick me an email at hello@mihisorensen.com
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ORGANISEHER™ HAS LAUNCHED & OUR PRODUCTIVITY PLANNERS ARE NOW AVAILABLE AT OUR WEBSITE: https://organiseher.co/

at ORGANISEHER™, we create tools designed to give the busy woman back her peace of mind by helping her keep her sh*t together & get stuff done. Our vision is for women everywhere to feel in control of their lives, confident within themselves & have enough time for everything that matters to them.

Have you ever wondered how much is enough to retire? Are you concerned you're not on the right track for retirement?

In this episode, we are going to share some cold hard facts on just how much you need to have saved for retirement.

You are going to learn why the total retirement savings needed in large part depends on where you choose to live. Although each family's amount is different based on the lifestyles that they have, we can still take a base average depending on where you end up living at retirement.

Regardless of where you decide to live, you can have enough at retirement if you prepare for the future today and begin to plan out what it will take to retire comfortably (without the stress of not having enough to live on).

Don't despair, start saving today and your retirement will become something you look forward to and not something you dread.

Questions for review:

• Where do you think you'd like to live at retirement?
• What type of lifestyle do you want to have when you retire? Are you saving now in a way that will support that lifestyle later?
• What steps do you need to make today to put you on track for that retirement goal?

Verse from the Episode: "For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?" -Luke 14:28

Sports Illustrated estimates that 80% of retired NFL players go broke in their first three years out of the League.

How is this possible in a sport rolling in revenue with an average salary of almost $2 million a year?

Thankfully, Jimmy Garoppolo decided he wasn’t going to be like everyone else.

Are you a natural saver or a spender?

Maybe you are like JimmyG and have to force yourself to be more of a saver... If so, that's okay.

Regardless of whether you make a lot or a little, saving can be difficult and it's common to spend all or more than what comes each month regardless of whether or not you are considered a "high-earner."

In this episode, you are going to learn why it's important to cultivate a habit of saving no matter what your income level is. Also, you will learn why it's important to only invest in financial products that you fully understand.

All that and much more.

It's important to build that saving habit now so that it continues to carry over with you no matter what income you make (now and in the future).

Questions for review:

• Do you tend to be a natural saver or a natural spender?
• Do you feel the need to invest in things that perhaps you don't understand, such as crypto or NFTs? If you understand the investment and are comfortable with it, perhaps it can be to your advantage, but please remember, there is no such thing as easy money!
• What one saving habit can you cultivate today to improve your financial future?

Verse from the Episode: "Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest." -Proverbs 6:6-8

Today we are going to tell you about a somewhat secret money hack that very few Americans are taking advantage of.

It’s a benefit so good, you’d be crazy not to do it. 

Right now, only 15 percent of Americans taking advantage of this tax savings benefit.

In this episode, Dave walks us through two different examples from two different couples who each saved the exact same total amount.

That said, what they were able to take home in retirement was quite different.

As you might imagine, the WAY in which they saved led them to achieve a completely different outcome.

In this episode, you will learn the differences between a traditional IRA and a Roth IRA.

Learn which method Dave most recommends and find out why he believes this to be the greatest tax-saving benefit available to everyday Americans.

Questions for Review:

• Do you have a retirement account that you (or your employer) are contributing to regularly?
• What are some of the benefits that you can get out of a traditional IRA? What about a Roth IRA, what are the benefits?
• What step can you take today to set up a retirement account and plan of action?

Verse from the episode: "Watch yourselves, so that you may not lose what we have worked for, but may win a full reward." -2 John 1:8

I hate to be morbid, but have you ever thought about what would happen if you were to suddenly die unexpectedly?

In the United States, 7 thousand people die every day. Over half die without any life insurance. So, 52% of people who die every day do not leave anything behind for those they love most.

Would you be able to provide for your loved ones if things were to change for the worse in an instant?

In this episode, you are going to learn why a good life insurance policy is essential to prepare for the worst and to give you peace of mind for those you love most.

In addition, you will learn:

• Why it's essential to have a good life insurance policy in place.
• The differences between Term Life Insurance and Whole Life Insurance. Learn which option is best for cost-conscious savers and which one is best for those looking to build up wealth with a life insurance plan.
• Why Dave recommends the majority of people follow the principle: "Buy term and invest the rest."

Questions for Review:

• Have you ever considered what would happen or how your loved ones would react if you were to suddenly pass away unexpectedly?
• Do you have a life insurance policy in place in case of an untimely death?
• What fits your current needs and desires, term life insurance or whole life insurance?

Verse from the Episode: "But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever." -1 Timothy 5:8