10 Steps to Young Family Wealth and Happiness
After 2 years of podcasting and over 100 interviews with self-made millionaires, financially independent couples and debt free parents, I have learned a bit about building young family wealth. Here are 10 steps that will help young parents thrive and keep their legacy of wealth intact.
7 Jan 2019
14 Money Goals to Accomplish Before 40
As we approach 40, we want to make sure we're in a good spot with our personal finances. Here are 14 money goals to accomplish before you're 40 years old.
1 Apr 2019
41 | How to Become a Millionaire by 30
Billionaire Warren Buffett once said, “Never depend on a single income. Make investment to create a second source.” All of the entrepreneurs I’ve interviewed on my podcast (or really any other podcast for that matter) have taken Mr. Buffett’s words to heart. If you’re going to create some serious wealth for you and your family, diversifying … Continue reading "41 | How to Become a Millionaire by 30" The post 41 | How to Become a Millionaire by 30 appeared first on Marriage, Kids and Money.
31 Jul 2017
I Owe $200,000 in Student Loans. Where Do I Start?
Joe feels like he's drowning in his $200,000 of student loans and he's not sure where to start. We review 5 ways for him to break free from his pile of debt.
5 Nov 2018
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Millionaire Investing Strategies with the 401k, IRA and 529
Andy Wang from Runnymede Capital Management shares how compounding and time can make us all millionaires. We dive into why the 401k, IRA and 529 accounts will make your family wealthy.
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61 | Financial Independence through Real Estate with Paula Pant
Now that Nicole and I are mortgage free, we’re moving onto our next big financial challenge: Buy-and-Hold Rental Real Estate. Over the past year, I’ve been doing my best to educate myself in real estate by reading books and blogs and listening to podcasts on my daily commute. One of the podcasts I’ve been enjoying … Continue reading "61 | Financial Independence through Real Estate with Paula Pant" The post 61 | Financial Independence through Real Estate with Paula Pant appeared first on Marriage, Kids and Money.
18 Dec 2017
When Married Couples Have Different Views on Money - with Dr. Laura Dabney
Marriage and money can sometimes be difficult. Dr. Laura Dabney shares what people can do when their spouse has a different view on money than they do.
27 May 2019
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4 Feb 2019
60 | 529 Account – Your Kid’s Ticket to Student Debt Freedom
Abby Chao is the Co-Founder of CollegeBacker. She and her company are on a mission to make saving for college easy with the magical 529 account. Abby and I met a dinner in Dallas in October. Her enthusiasm for combating the $1.4 trillion student loan crisis in our country was inspiring. I had to … Continue reading "60 | 529 Account – Your Kid’s Ticket to Student Debt Freedom" The post 60 | 529 Account – Your Kid’s Ticket to Student Debt Freedom appeared first on Marriage, Kids and Money.
11 Dec 2017
How a Roth IRA Can Make Your Kid a Millionaire - with Logan Allec
Logan Allec shares how we can help our kids become future millionaires by investing in a Roth IRA early in their lives. There are certain rules he reviews to ensure we're helping our children become rich correctly.
29 Jul 2019
57 | Creating Multiple Income Streams to Eliminate $100k of Debt
Earlier this week, I caught up with J from Millennial Boss. This 28 year-old working professional / entrepreneur sets huge goals for herself and crushes them. J was dealing with around $100,000 in debt from student loans, credit cards and a new car. Through creating multiple sources of income for herself, she was able to … Continue reading "57 | Creating Multiple Income Streams to Eliminate $100k of Debt" The post 57 | Creating Multiple Income Streams to Eliminate $100k of Debt appeared first on Marriage, Kids and Money.
20 Nov 2017
Why Date Night May Be Your Best Family Investment - with Martin Dasko and Kristen Manieri
Martin Dasko and Kristen Manieri discuss the importance of dating in marriage and why it could be the best investment you make. We review dozens of date night ideas to get you inspired!
26 Nov 2018
How to Find the Right Savings Rate for Your Family's Financial Independence - with Scott Rieckens
Scott Rieckens and his wife Taylor are pursuing financial independence. They are working on finding the right savings rate for their family. And it's not that easy.
21 Jul 2019
10 Steps to Pay Off Your Mortgage Early
Our question of the month comes in from Mike: Andy, I saw the Business Insider article about you paying off your mortgage early. We’re in a similar situation. With $228,000 left on our mortgage, our plan is to pay it off in 6 years. We’re looking for advice and shortcuts! That’s awesome to hear you want to pay off your mortgage early, Mike! You’re looking for steps, shortcuts, and advice on how to pay off your $228,000 mortgage in 6 years … Let’s do this! 1. Make a Goal This is something that you have already started! Nice work. Let’s make it a SMART Goal. That's a goal that is Specific, Measurable, Achievable, Relevant and Time-Based. Specific: You're not saying, “My goal is to be more financially fit.” You're saying “I want to be mortgage-free!” That's specific. Measurable: You have $228,000 left on your mortgage and it’s easily measured by the number decreasing to $0 overtime. Achievable: That is something you'll have to answer, Mike. Do you have enough money, time and will-power to make this happen in 6 years? Relevant: These are good questions to ask before you move forward because it’s going to be a lot of work. Does this pair up with your overall financial goals? Does becoming mortgage-free help you to get where you want to go in life? Time-Based: You have determined that 6 years is a good time-frame for your mortgage-free date. Your goal is time-based. 2. Use a Mortgage Payoff Calculator Take some time playing around with this mortgage payoff calculator. By using this calculator, you can insert: Original loan amount Loan term (15-year, 30-year, etc) Interest rate Additional principal payments you'd make each month Let’s plug in some fictitious numbers for Mike: Original loan amount: $250,000 Loan term: 15-year mortgage Interest rate: 3.5% Additional principal payments: $1,000 on average each month That will reduce your 15-year mortgage to around a 9-year mortgage. And you’ll save around $31,000 in interest! Now those numbers may not match your situation but see what you can do, by using the calculator, to get close to your 6-year goal. And if it seems a bit crazy to pay it all off in 6 years, maybe look at 7 or 8 years instead. Have fun with the calculator and adjust your plan accordingly. 3. Reduce Expenses Let’s say, you’ve played around with that calculator and it doesn’t seem like 6 years is feasible but you still want to make it happen. The first thing you can do is look into reducing your expenses so you have available cash to throw at your mortgage principal. Here are 5 areas to consider when it comes to reducing your expenses: Negotiate recurring bills It's amazing how much you can save by calling up your cable, cell phone, and insurance providers and asking for a deal. There is high competition within these industries and they are looking to retain their customers. If they don't make it easy for you to save, find competitiv offers and ask your current provider to match the offer. Look into MVNO cell phone plans By pre-paying your bill you can save quite a bit more money. We recently did this with Verizon and saved around $30 per month. Shop at a lower cost grocery store We're big fans of Aldi in our house. They helped us to save around $300/month when we switched over from Kroger. Eating out at restaurants less All the dinners, drinks and lunches start to add up. See if you can cut back and save by packing your lunch for work and making more meals at home. This could be a much healthier choice as well! Look into high deductible insurance options If you're able to take on more of the risk today with a higher deductible, you could pay much lower premiums today. Make sure you have adequate savings to cover the deductibles before switching. If you do, signing up for a high deductible health plan with an HSA would be a great way to save for your future health care expenses and save you money today. 4. Increase Income Perhaps you’ve reduced your expenses as low as you can but you still want to crush that mortgage early and hit your 6-year goal. The other place to find more money is by increasing your income. This requires time, dedication and teamwork with your partner. Consider these 5 ways to increase your income to pay off your mortgage early: Ask for a raise If you’ve been working hard at your job and exceeding expectations, start a conversation with your employer about increasing your salary or hourly rate. If it’s not possible today, get them to help you outline steps to help you get there in the near future. Have your spouse ask for a raise If you’re married, your partner may be working as well. Consider what a raise in your partner’s income would do for your family. Work overtime If putting in extra hours at your job is an option, consider doing it for a season. Your overtime may just help you become mortgage-free by your goal date. Start a side hustle Finding a side hustle is a great way to earn extra cash. If you’re able to make money through a hobby or passion of yours, that’s even better. Sell Things Around Your House A lot of us have things lying around our house that have value. They can be sold on Facebook Marketplace for extra mortgage principal crushing money and the person buying them at a discount becomes happy too! 5. Live on a Budget When we craft and live on a budget we are telling ourselves that we are in control of our money. We are telling our money what to do. With a goal of paying off your mortgage early, a budget is crucial. There are dozens of online budget tools that make this process easy. Nicole and I have used Mint for almost a decade and it’s helped us do some incredible things for our family. If you don’t want to use an online tool, you can easily craft a budget using a spreadsheet. Just set your typical income at the top and then start lining up your expenses. Here's a snapshot of our budget from May 2016 (one random month in the midst of our mortgage payoff). Income Total Percent Andy's Paycheck $7,900 99% Craigslist/eBay Sales $100 1% Total Income $8,000 Expenses (Rounded to nearest $50) Home Mortgage (includes taxes and insurance) $1,900 Additional Principal $500 Home Improvement $500 Lawn Maintenence (Cutting and mulch) $200 Cleaning Lady $100 Total "Home" Expenses $3,200 40% Food Groceries $800 Weekday Eats $100 Total "Food" Expenses $900 11% Transportation Fuel (for 2 cars) $300 Service & Parts $50 Total "Transportation" Expenses $350 4% Financial Roth IRA Contribution $200 529 College Savings $500 Total "Financial" Expenses $700 9% Bills & Utilities Water Bill (quarterly) $200 Cell Phones $200 Natural Gas $150 Electricity Bill $100 Total "Bills & Utilities" Expenses $650 8% Gifts & Donations Church $100 Charity $50 Wedding Gift $400 Birthday Gifts $50 Total "Gifts & Donations" Expenses $600 8% Kids Kids Camps & Field Trips $300 Swimming Lessons $150 Baby Supplies $50 Total "Kids" Expenses $500 6% Entertainment Weekend Fun (Eating Out, Movies, Drinks, etc) $350 Travel $350 Subscriptions $50 Total "Entertainment" Expenses $750 9% Shopping Clothing $300 Toiletries / Home Misc $50 Total "Shopping" Expenses $350 4% Total Expenses $8,000 Your goal is to have all of your dollars accounted for in the month. This way you’re making your money work hard for you. 6. Set Recurring Additional Principal Payments To keep yourself on pace for your mortgage payoff goal, set up a recurring payment toward your mortgage principal. You can do this directly with your mortgage company through their website. Be sure to specify that this money is for additional principal payments and not for interest. Sometimes the mortgage companies make the mistake of applying it to next month’s interest payment instead of your principal. Convenient for them and not for you. If you prefer to write checks with your payments, make sure to specify on the memo line and with a note that this money should go toward the principal balance only. 7. Use New Found Money to Make Big Payments There will be times throughout the year when you might get some new-found money and you’re going to have to make a decision on what to do with it. This can be from: Tax return Bonus Sales commission Inheritance Family gifts It’s important to have a plan before this money arrives so it doesn’t magically disappear. Decide with your partner how you want to use new-found money. During your mortgage payoff period, 100% of new-found money can go toward the mortgage principal. Or you can decide to only use 75% for the mortgage principal and 25% is for family vacations. Or you could do 70% mortgage principal, 20% fun and 10% charitable giving. Find the percentage that works for you and plan ahead because this extra money can make a huge impact on your mortgage payoff process. 8. Meet Monthly to Review Your Progress If you’re working with your spouse on this goal, make sure you’re meeting up at least once per month to stay on top of your budget and review your progress. Having someone to hold you accountable is so important. If you’re both on the same page with the goal, it can be more fun and enjoyable. When you hit a special milestone, make sure to celebrate that as well. For example, if your mortgage is at $228,000 right now, set up a memorable celebration when you hit the $200,000 mark! Maybe there’s an ice cream place you love to go to or maybe this night calls for investing in a babysitter for a night out. You’ve worked hard. Celebrate. 9. Include the Kids in the Fun If you have kids, include them in on the fun as well. When I interviewed the McCoy Family who paid off $250,000 of debt, they used a coloring sheet that tracked their mortgage payoff process. This helped them to include the kids in on the fun! Each time the family would pay off a certain amount of the mortgage principal, the kids would color in a brick on the house. Eventually, the kids were able to color in the entire house and they were mortgage-free. https://youtu.be/MG01snQhL5Q The kids had fun and the parents had fun too. This experience is something that the McCoy kids will never forget. And you know they will be shooting to be mortgage-free when they get older as well. 10. Celebrate (And Plan Your New Life) When you finally get to that big day when you’re mortgage-free, make sure to celebrate. You have just done something incredible that not a lot of people do. Here are some celebratory ideas to think about: Go on a family vacation (Disney World, go to the beach) Host a nice dinner celebration with your family (and the people that supported you along the way) Have a mortgage burning party with your close friends Develop a pinata out of the mortgage and let your kids destroy it Enjoy a nice dinner out with your spouse and toast with champagne This moment is important and needs to be commemorated. Afterward, take some time to keep dreaming with your spouse about what’s next in your life. What will you do with the extra money? This could be thousands of extra dollars per month! How could this money change your life? These are the questions that help us to start living out our dreams. Without a mortgage, your options start to open up. Your eyes start to see a little wider and the future doesn’t seem so far away. I hope these 10 steps help crush your mortgage this year Mike. $228,000 is a lot of money, but with enough planning, determination, and partnership from your spouse, you’ll get there. CLICK “PLAY” AT THE TOP OF THE POST TO LISTEN TO THIS INTERVIEW OR LISTEN ON: Show Sponsors FLO BY MOEN Receive 20% off by using discount code “Marriage20“. Learn more here. FETCH REWARDS Earn 2,000 points ($2) when you sign up here (use code “MKM”). MKM Podcast Resources Thriving Families Facebook Group: Join our new FREE Facebook Community! Young Family Wealth Playbook (FREE): 7-Steps to Solidifying Your Family’s Future Wealth Support this Show If you enjoyed this episode, here are some excellent ways to support the show: Leave a review for the show on Apple Podcasts or Stitcher Leave a comment below Check out my Recommended Resources Page Subscribe to the show on Apple Podcasts, YouTube, Spotify, Google Podcasts or Stitcher Join our Thriving Families Facebook Community – learn and help other families grow their wealth I truly appreciate the support everyone! Questions? I’d love to hear from you! If you’d like your question featured on the show, reach out and let me know. It would be my honor to support you in your journey toward financial freedom. Leave me a voicemail or connect with me on Instagram, Twitter and Facebook. Carpe Diem Quote “A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing. George Bernard Shaw What would you do if you had no mortgage payment? PLEASE LET US KNOW IN THE COMMENTS BELOW. SUBSCRIBE TO THE PODCAST TODAY (IT’S FREE):
3 Feb 2020
31 | How to Crush $52,000 in Debt in 7 Months
It seems the more we earn, the more we spend. There is always something new to buy, a service we want or an upgrade that is an absolute must-have. We see our neighbor’s new boat. Now, something inside of us “needs” that new boat too! And even if our income isn’t enough to buy it, well that doesn’t … Continue reading "31 | How to Crush $52,000 in Debt in 7 Months" The post 31 | How to Crush $52,000 in Debt in 7 Months appeared first on Marriage, Kids and Money.
22 May 2017
Pay Off The 30-Year Mortgage Early or Invest?
Patrick wants to know if he should pay off his 30-year mortgage early or invest the money in the stock market. We provide 5 different options for him to consider with this big financial decision.
7 Oct 2019
Should I Pay Off My Mortgage or Invest?
When you get the point of becoming debt free, you have a decision to make ... Do you pay off the mortgage or do you invest? Luke from Indiana asks this question and I give him my best answer.
6 Aug 2018
10 Compelling Reasons to Pay Off Your Mortgage Early
There is a lot of debate around whether or not you should pay your mortgage off early. After my wife and I paid off our $200,000 mortgage off in less than 5 years, we know it was the right decision for us. Here are 10 compelling reasons to consider paying off your mortgage early.
18 Nov 2019
Optimize Your Family Life with Real Estate - with Chad Carson
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20 Aug 2018
How I Bought 20 Rental Properties in Cash - with Rich Carey
Real estate investor Rich Carey shares how be bought 20 rental properties in cash while serving in the military abroad. He shares how real estate made him a millionaire and how you can buy your first buy-and-hold rental unit in cash too.
25 Oct 2019