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How to Achieve Your Financial Goals

Being financially secure is more prevalent than ever, but it still remains a challenge to many people.

Let’s discuss how to achieve your financial goals – and actually stick to it this time.

After a long and arduous 2020, more and more citizens have set their sights on being financially stable. In fact, research shows that almost 50 percent of Americans have a financially related New Year’s resolution.

Unfortunately, as reported by U.S. News & World Report, roughly 80 percent of people fail their New Year’s resolution by the second week of February.

If achieving a financial goal was a resolution for you, here are some things to help you avoid becoming part of that 80 percent.

Setting A Financial Goal

Finances are different for everyone. Perhaps you’ve set a financial goal without fully realizing it. Nerdwallet defines financial goals as “personal, big-picture objectives you set for how you’ll save and spend your money.” Some examples include:

Purchasing a bike
Buying a home
Paying off debt
Starting a business
Saving for retirement

No matter how grand the scale of your goal is, there are certain things you should be doing in order to make it a reality.

Basic Steps to Achieve Your Financial Goals

Becoming financially secure or independent means many things to many different people. Money is different for everyone, but there are basic rules that everyone should follow. These include:

Creating and sticking to a budget
Building an emergency fund
Managing credit score
Money organization
Savvy shopping
Knowing where your money goes

Creating a Budget

Budgeting is a word that everyone knows, but not everyone is able to accomplish. According to Investopedia, a budget is an estimation of revenue and expenses over a period of time.

Creating a budget is the first step in achieving any financial goal.

In order to set a budget, you must first determine your income. This is your net, take-home pay each month. Once you’ve calculated that, you need to differentiate your expenses into three categories: needs, wants, and savings.

Comb through at least a year’s worth of expenses to have the most accurate expense chart. Begin by totaling up all of your necessary expenses. This includes rent, car payments, insurance, groceries, etc. Anything you need to live will go in this category.

From there, see how much money you have left over for wants and savings. A portion of this should go into a savings account, emergency fund, and/or investments. But keep in mind you should have some money set aside for yourself to accommodate your wants. This doesn’t mean spending frivolously, but very few people will stick to a budget that doesn’t allow them to have any fun.

Sticking to a Budget

Now that you have created your budget, you need to stick to it. If you budgeted $400 for wants, you have $400 to spend on wants. If it is Friday night and your friends are going to the movies but you only have $20 left in this category, you need to have the willpower to say no. The most important step to achieving your financial goal is not spending above your means. That is why sticking to your budget is so crucial.

Building an Emergency Fund

It is incredibly important to have an emergency fund for whatever life may throw your way. An emergency fund, which differs from a savings account, is an account where the money is saved for major, unexpected expenses. Financial experts have stated that an emergency fund should hold at least enough money to cover three to six months of living expenses.

As we’ve all noticed, especially in the last year, life challenges can come at you unexpectedly. Pew Research found in September that over 15 percent of Americans had lost their job over the previous six months.

Many people have not been able to achieve their financial goals in the past because of unforeseen circumstances or expenses.

With an emergency fund, you can stay on top of these unexpected costs rather than making up for them later.

This will help keep you on the right track towards reaching your financial goals.

Setting aside money for an emergency fund should factor into your budget as to how much you will be saving and spending. Once you have saved enough money to cover at least six months’ worth of living expenses, that money can be budgeted elsewhere.

Managing Your Credit Score

A credit score is a number between 300-850, the highest being the best, based on your credit history. You can check this number by ordering your credit report from Equifax, Experian, or TransUnion. Everyone is entitled to one free report per year.

Managing and maintaining your credit score is a crucial step in accomplishing your financial goals. A good credit score can help you in a litany of ways, most importantly: qualifying for loans or mortgages with more favorable interest rates.

To strengthen your credit score you must first make sure you pay all your bills on time. Generally speaking, a credit card, used wisely, is a great way to build your credit as well.

Attaining a good credit score is an important factor in achieving your financial goals. You’ll spend less money on interest rates, therefore, your loans will be paid off quicker.

Keeping Organized

Staying organized is key to becoming financially secure. This means keeping a record of your bank and credit card statements, bills, and other expenses.

You should also organize what you’re saving for. With a savings account and an emergency fund, it can sometimes be confusing to keep track of all your money if they flow into the same account. Staying organized is even trickier if you’ve set multiple financial goals, like paying for a trip, saving for a home, and budgeting for new skis.

Trying out programs like Marygold & Co.’s Money Pools is a great way to stay organized and stick with your budget. Separating your goals into Money Pools allows you to visually see how much progress is being made towards each one. Programs like these will keep track of each account while also earning interest on every one of them.

Shopping Savvy

Though it seems like a no-brainer, many people fail to consider their spending habits when trying to attain a financial goal. When making a budget, sometimes ‘necessary’ expenses may not be exactly that.

Every expense adds up.

Consider a trip to the grocery store – are you:

Making a list and sticking to it?
Using coupons?
Buying the cheaper options?
Comparing prices?

Every time you spend money, how much you’re spending must be taken into account. You can lower your ‘necessary’ spending simply by being fiscally responsible. Did you really need that pack of skittles sitting in the check-out line?

Knowing Where Your Money Goes

Everyone has noticed throughout their lives that sometimes, money seems to magnificently disappear. Though it can feel like that, this is simply not the case. If you are on top of your finances, you’ll know where every penny goes.

A cup of “joe” every day doesn’t feel like it would cost that much; research has found that some people spend up to 1,000 dollars on coffee and 2,000 dollars a year on lunch. Seeing that number, many people would reconsider their drive-through coffee-drinking habits. Coffee is an overused example but you get the point.

When learning about how to achieve your financial goals, it’s vital to know where your money is being spent. Go over your bank statements and account for every single dollar spent to find out how you are spending your money and where you can cut back.

July 5, 2021/by Smartpoint

Financial Spring Cleaning

Spring is the season for cleaning and that shouldn’t just end at home. Your finances should go through a little spring cleaning themselves. Having an organized financial life can help you better understand the flow of your money. Tracking your income, how you spend it, and how much of it you save can give you the information you need to set financial goals for yourself.

So, while you’re decluttering your closet, remodeling your back patio, consider some financial spring cleaning, as well.

Here are some ways to organize your finances this spring (or anytime, really):

Review and Establish a Budget

To ensure your finances are in order and that they remain that way, it’s best to set up a balanced and realistic budget, if you don’t have one already. Review your monthly income and expenses then establish what your financial goals are. You could be saving for a long-term investment like a down payment on a home or you could be saving for a new gaming system or a getaway.

Whether it’s a long-term or short-term goal, budgeting is essential to making sure those goals are achieved. Organize your budget on a simple spreadsheet and review it often to ensure you are on track.

Having a budget will make it easier for you to reach your savings goals because it’ll help you determine how much money you can spend and how much you need to put away. You don’t need to plan out the rest of the year perfectly but instead start by creating a monthly budget, then track your finances for that month. Once you get into the habit, you’ll find yourself becoming a budgeting expert.

Set up a Money Pool/Automated Savings

One way to keep yourself organized financially is to set up automated savings, or an interest-earning Money Pool, like the one we offer at Marygold & Co.

Having a Money Pool allows you to separate and categorize your finances all within one account, making it easy for customers to track multiple savings goals at once.

Each individual can customize their automated savings to best align with their goals and current financial standing.

You can choose to contribute to your savings goals on a bi-weekly or monthly basis, and the amount you deposit is up to your discretion as well.

Automating your savings will help prioritize your goals and will reduce the temptation to overspend. You don’t even have to worry about making those regular deposits, it’s all done for you!

Pay Off Outstanding Payments

Look over any outstanding payments, if you have the means to pay them off, then do so. If not, this is the time to work out a way to pay your debts off.

Is there anything laying around your house you could sell? Are there extra shifts you could pick up at work?

Find opportunities that’ll help you earn that extra income to help you pay off your debts.

If you are unable to pay everything off right away, setting up a debt repayment plan can help you stay on track. While you may not pay everything off in one go, at least you have taken steps to reduce that debt and eventually eliminate it.

Make sure you include your debt payment plan in your budget.

This will help you stay on top of your payments by ensuring there is money available in your checking account to contribute to this payment plan.

Automatic Billing and Investments

Having your bills automated can help you ensure that they are always paid on time and that you’re not rummaging around for extra cash to meet your phone bill payment at the end of the month.

The best part about automatic billing is you don’t even have to think about it, it is automatic after all.

Additionally, you can even set up automatic deposits to your IRA or 401k investments. Automating deposits into these accounts will ensure you’re continually investing your funds.

The advantages of investing your money include reducing your taxable income for the year.

Analyze Your Spending Habits

Analyzing your spending habits will help you point out your spending habits, bad and good. When looking over your spending habits, you might find some patterns that are preventing you from achieving your financial goals.

An important step while spring cleaning your finances is to look over your spending habits and find areas where you can save.

Are there any unnecessary monthly subscriptions billed to your credit card?

Are there unnecessary transactions you can eliminate?

These are important questions to ask yourself when analyzing your spending habits. Find areas in your daily life where you can save. Maybe pack a lunch instead of ordering out every day, you’ll definitely see big rewards from the small changes you make in your daily habits.

If you lack financial discipline, the Marygold & Co. app can help. The customizable security dashboard allows customers to limit where the card can be used.

Accounts can also be turned on or off – which can also remove the temptation to unnecessarily spend.

Clean Up and Shred Old Paperwork

It’s easy for those paper bills and bank statements to pile up on the corner of your table.

Marygold & Co. can help you keep your finances organized. The best part about the Marygold & Co. app is that you won’t have to worry about paper – checks, receipts, pay stubs, etc.

Take the time to shred and discard any old paperwork. Make sure you dispose of these documents properly as they contain very sensitive information including personal information and bank statements. We recommend using a shredder to ensure these documents are properly destroyed.

Marygold & Co. Makes It Easy

Marygold & Co. can help you sort your finances and keep them organized throughout the year through an innovative new app launching this spring.

The FDIC-insured fintech app offers customers interest-earning savings accounts and allows them to send, receive, spend and save securely through their mobile device.

Control and organize your finances easily with Marygold & Co.

Your finances will never have to go through a spring cleaning again – instead, you can keep them clean and organized.

June 9, 2021/by Smartpoint

Timothy Rooney: President of Advisory Services

How to Keep Money

“How did you go bankrupt? Bill asked. “Two ways”, Mike said. “Gradually and then suddenly.”
– E. Hemingway, The Sun Also Rises (1926)

Once we make some money, how do we keep it?

There are many articles written about how to make money, some are shady and some are legit. But there are few articles written about how to keep money once it’s made.

Perhaps because, as a general rule, we spend a lot of time thinking about making money, and very little time thinking about not losing money.

So here are a few thoughts on how to keep money once you make money…

Have a Plan

Whether you are just starting out or have already built a “nest egg”, the punchline is straightforward: Live within your means.

Easy to say, hard to do.

As your career improves and your income increases, it is tempting to raise your level of personal spending.

I have friends in New York City who are very successful with seven-figure incomes, but they spend every penny.

Good times are not guaranteed to continue forever.

Spend time thinking about your short and long-term goals, and set aside money for each of these goals.

As your income increases over time, make a conscious effort to use the additional money to meet the goals you have established. And, until you do, try to hold off on upgrading your closet or trading in the car for a newer model.

It may sound trite, but you should create a budget.

Always know how you are spending your money. If you know where your money is going it makes it easier to make necessary trade-offs. It also makes it easier to see that your short and long-term savings goals are probably more important to you than some of the other expenditures.

Invest, Don’t Speculate

Too much of social media is caught up in get-rich-quick schemes.

Most of them are just that, schemes.

Yes, that story on IG or YouTube about that person who made a huge amount of money in a week or two is exciting. And it might even be true. But there is nothing about that that involves investing.

That is pure speculation.

Investing is unemotional.

It is about having a plan and having the conviction to execute the plan. Emotion and greed cloud judgment, so don’t be emotional.

Diversify.

Any solid investment plan includes diversification. With so much information being thrown at us every day it’s easy to be lured into making one or two big bets. The stories sound so convincing!

Putting the majority of our money into one or two big bets is not investing, it’s speculation. As long as we know the difference we can make the right decision. Unless you are a professional investor with many years of experience, diversification should be an important part of your plan. Once you have a plan, have the patience to stick with it. Get rich quick schemes almost always end badly.

Luck vs. Experience & Skill

2020 was a very unusual year.

The obvious tech stocks that were trending throughout the year did extremely well after the U.S. stock market bottomed on March 23rd.

We’ve seen too many people confuse investing in these obvious trends with market skill or investing expertise.

The markets are not likely to repeat 2020.

So, in very simple terms, know how to keep money by living within your means, having a plan that includes a budget and your short-term and long-term savings goals, and investing in those goals utilizing a diversified portfolio appropriate to the timeline of your goals.

April 24, 2021/by Smartpoint

Mobile Banking Services

How to Control Spending Habits

Spending vs Saving Habits

Americans are spending on average almost 80% of what they earn. This leaves little for an emergency fund, retirement, or savings for big-ticket items like a house, a car, or an appliance.

The situation is not improving. The Bureau of Labor Statistics noted that while earnings decreased by 1.5% this past year, costs of things like housing, transportation, and food increased by almost 5%.

This means Americans have even more trouble saving for emergencies and retirement. Only 40% of Americans surveyed said they could save a thousand dollars for emergencies.

Americans aren’t saving nearly enough for retirement. Northwestern Mutual’s study revealed that 15% of Americans have no retirement savings at all. In fact, 64% of Americans can’t afford to retire.

Understanding how to control spending habits is important. We can start by looking at why we overspend.

Why Do We Overspend?

Most people have no idea what their spending habits are. They are clueless as to where their money is going each month and are shocked when their bank account dips.

Many are impulsive shoppers. They see it. They want it. They buy it.

Exploring sale displays is bad news. Often, people get caught up in the excitement of a discounted item and buy things they don’t need.

Remember: A bargain isn’t a bargain if you don’t need it.

Unfortunately, people get into “keeping up with the Joneses.” If our friends have something, we need it, too. That’s how companies convince us to buy the latest version or the “new improved” model.

Spending can be an addiction just like gambling or substance abuse. To avoid spending you need to know why you’re doing it so you can control it in the future.

Tips on How to Control Spending Habits

Financial advisor Jenny Keefe offers several tips.

Take stock of how you are spending what you earn

Use a software program, an app like Marygold & Co., or pencil and paper. Write down everything—no matter how small—you spend. Calculate how you are spending your money for a month.

Set up a budget

You can also create a simple budget on paper. Plan for savings as part of your budget. That’s where a program like Marygold & Co. can help you organize your financial life.

Stop (or at least minimize) spending

This may seem extreme. However, you cannot save money for emergencies or retirement if you have nothing left in your bank account at the end of the month. Pledge not to spend on anything except food, shelter, and essential transportation until you get your spending under control. When approached with a purchasing decision, ask yourself, do I need this or do I want this?

Take a breath before you spend

Jenny Keefe suggests you sleep on the decision to make any large purchase. The choice to buy a nonessential item may look very different if you give yourself time to think it over.

Understand that there is no such thing as “a little debt”

Amassing a little debt on your credit cards may seem harmless. But these small debts are not part of your budget. Thus, they are overspending. Even seemingly small debts set you up for financial disaster. They can start a debt crisis that impacts your home, your family relationships, and your mental health. Not knowing how to control your spending habits may result in a great deal of debt that’s hard to get out of.

Set reasonable priorities

So, here’s the situation: You’ve figured out you are spending more than you earn. The next step is to set priorities. Can you economize on food? Maybe you need to cut out entertainment or eating out. That five-dollar Starbucks coffee was nice but you can’t afford it. Consider taking public transit. Try biking to work and to run errands. When you have looked at your expenditures, decide what must go and where you can cut corners.

Eliminate items you are not using

Think about things like movie club memberships, Sirius Radio, TV cable options, Netflix movies, magazine subscriptions, gym memberships, country club dues, and packaged bank accounts. Are you getting value from them? Can you afford them? Are there cheaper alternatives?

Shop frugally

In this day of instant foods, you may be spending significant amounts for convenience. Your food budget may be more than you can afford. Check out Jenny Keefe’s smart food shopping tips.

If you can’t resist, don’t go shopping

There are ways around this. Try online shopping with a list. Don’t buy anything that isn’t on your list. Avoid shopping for no purpose. That leads to impulse buying.

Try Freecycle if you are replacing something

If you need something, check out free resources like Freecycle. Look into stores like Value Village, Goodwill, and consignment stores. Check out garage sales and online opportunities, through social media and other channels.

Leave your credit cards at home

According to a study by Thomas, Desai, and Seenivasan in the Journal of Consumer Research how you pay can affect impulse purchases.

A study by Dun & Bradstreet found that people spend up to 18% more when they use credit cards than they do when they use cash.

Avoid overspending by using cash or a debit card to make all transactions. This gives you a greater awareness of how much you are actually spending. If you carry only as much cash as you can afford to spend, it curbs overspending.

Know your triggers and how to avoid them

Our tendency to overspend may be triggered by emotions. Identifying these triggers and removing them alleviates the temptation and the opportunity to overspend.

Some people spend more at certain times of the day. Avoid shopping during those times. There may also be certain environments that encourage spending, like sales, favorite stores, craft fairs, flea markets, or holidays. Detour around these environments if they are triggers.

When you are feeling sad, happy, or depressed are you more prone to impulse shopping? Don’t go to the mall if those moods make you shop. Go for a walk or take a hike instead.

How Technology Can Help

Mobile banking apps like that available to customers of Marygold & Co. can help curb spending. With innovative features like Money Pool Savings Accounts, customized notifications, and mobile push notifications to ensure your goals and relevant banking information are always top of mind.

Technology like that in mobile banking apps helps users keep track of their spending and their savings. This will go a long way to curbing spur-of-the-moment purchases.

Mobile apps from major financial institutions like Marygold & Co. provide an easy way to view account information without sharing personal information. Mobile apps will help you learn how to control your spending habits by tracking your spending more.

The banking app provides up-to-the-minute account information. This allows clients to assess their ability to make or to refrain from making spontaneous purchases.

February 12, 2021/by Smartpoint

Financial Tech

Organizing Your Financial Life

The end of the year and/or beginning of the next year is usually a time when finances and money seem to be top-of-mind. Often when we think about money, we think about how to best manage it and stay organized. As you take this time to figure out your goals, organizing your financial life is a goal you may want to consider if you haven’t already.

Why Organize Your Finances?

Financial planning helps you understand how much money you have coming in, where and how you are spending it, and how much you have left for savings. With this knowledge, you can then set short and long-term financial goals.

Financial planning helps you prepare for emergencies. With basic budgeting and setting priorities, you can sleep better because you have considered contingencies. Financial planning nurtures prudent spending and careful investing in your future.

Ways to Better Organize Your Finances

Ramsey offers these suggestions.

It is shocking to note that over half of earners do not have a budget. They frequently run out of money before their next paycheck without a clue of how that happened. Setting up a budget should be a priority as soon as you start to earn money. It is not wise to delay doing this.

Fortunately, there are several easy apps and software programs (as well as tips) to help you do this.

Check out these popular budgeting tools for first-time budget organizers.
Set aside some time for budgeting. An effective budget behavior is to block a day and time (monthly) for budgeting.
Calculate what to spend on such items as rent, groceries, loans, transportation, work clothes, and leisure. Figure out how much you can set aside for long-term and short-term savings.
Try to pay your bills online. Almost forty percent of wage earners do this. Pick a time in the middle and at the end of each month to look after bill paying. It also helps to manage those days of the month and try to space them out or consolidate them, depending on your preference.
Get into the habit of collecting and organizing your receipts. Keep records of them so they are part of your budget.
If keeping receipts doesn’t sound feasible, you can use a financial services app like Marygold & Co. to keep track of your transactions taking place in the account.
Create categories for your budget. These will help you get organized and stay within your guidelines.
Designate a portion of your earnings transferred to savings. When you get paid, pay yourself first. A good aim is ten to twenty percent earmarked for savings. When the money is automatically deducted from your account, it makes saving a lot simpler and more secure. Out of sight, out of mind.
Get rid of those credit cards. People who use credit cards instead of cash or debit cards spend at least 35% more. Instead, use cash or your debit card. This avoids both overspending and interest on unpaid credit card bills.
Couples should combine expenses and an account for paying bills. Combine your incomes and do your bill paying, vacation saving, and investing. Working as a team improves money management and communication about financial decisions.

General Tips for Wise Financial Organizing

If you are new to a financial organization, Investopedia.com offers these practical tips for getting started:

Learn self-control. Spontaneous purchases are one of the major reasons for personal debt. Unless a purchase is essential, hold off until you’ve saved enough to buy it. Many times this delay gives you time to rethink the wisdom of owning the item.
People who find themselves out of money before their next paycheck (or living paycheck-to-paycheck) often have no idea where their money went. That’s one of the biggest reasons to set up and stick to a budget.
Find a time-honored financial software that is user-friendly. Learn how to manage various parts of your financial life. These areas should include budgeting, debt tracking, setting savings goals, and investment coaching.
Check with your financial institution to see if they have free apps or software to help you manage your money.
Learn how to use spreadsheets like Excel to manipulate and perform calculations on your financial data.
Look for opportunities to learn and research more about financial planning from sources like YouTube, free seminars, webinars, and podcasts.
Explore all features of financial apps or software from paying bills, tracking the value of your assets, and computing your total net worth to invest.
Set up an emergency fund. This should be separate from savings and general expenses. Things happen. Appliances need to be replaced. Your car breaks down. Your business downsizes and you’re out of work. Advisors suggest your emergency account should have enough to pay expenses for three to six months. If you put this in a high-interest account, it will earn money while it sits there.
The time to start saving for retirement is when you get your first paycheck. Set aside a little each month in an account earmarked for retirement. That way, you will not be part of almost 35% of Americans who cannot afford to retire.

How Has Technology Made Organizing Your Financial Life Easier?

Technology has changed the way individuals organize their personal finances. Business Insider notes several innovations. These include free apps offered by some banking institutions, user-friendly software, and expense trackers.

What are the advantages of using technology in organizing your personal finances? Finance software and apps allow you to increase your efficiency in money management. Using technological aids, you can learn new and improved ways to set and meet short and long-term goals.

Some of the newest finance software teaches you to set up a budget and track your spending. Other software and online courses assist with setting up a portfolio and making wise investment choices.

Key Feature of Marygold & Co.

One of the most important aspects of organizing your finances is to establish specific, money-saving priorities and goals.

Marygold & Co. offers an innovative way to empower clients to reach their financial goals through the apps Money Pool savings options.

What is a Money Pool Savings Account?

Essentially, a Money Pool is a prioritized goal-specific savings account. Marygold & Co. Money Pools provide a complete and transparent view of your progress towards each goal; short and long term. Money Pools allow you to clearly define your goals, set timelines, and track your progress. Say you want to save for a down payment on a house: you simply create your custom Money Pool within the app, set the amount, time frame, and automatically divide a portion of your pay into your ‘Pool’. These interest-earning accounts help you achieve your financial goals faster.

Coming Soon in 2021! Money Pools will be structured around the specific timeframe and target amount of the associated goal. As a Registered Investment Advisor, Marygold & Co. Advisory Services will offer unlimited Money Pools comprised of highly liquid Exchange Traded Funds.

Marygold & Co. lets you create customized, individual accounts for your unique and personal goals all in one place, marrying high tech with high touch solutions.

December 3, 2020/1 Comment/by Smartpoint