Category Archives: spending

3 Ways to Improve Your Financial Life

In my book, Financial Freedom Party for Women ®, A Little Book about Money for Women,  I teach the basics of financial management.  Most of us never learn basic concepts and then become frustrated when we aren’t reaching our goals, assuming we even set goals.

Life has become more complicated with each consumer expected to be an expert on all things financial.  In talking to women over the years, a common concern is about wanting to change and do better, but not knowing where to start.  Haven’t we all had (or still have) that conversation with ourselves?

It isn’t magic to create a new lifestyle, but it does take some introspection and then action.  A good place to start is with what I call 3 Ways to Improve Your Financial Life.  They are things we think about, but often haven’t written them down and then figured out which ones will benefit us the best.  So, you can start in the beginning by thinking about any or all which apply to you.

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Make Moremakemorepic

 Do Better with What You Have

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Simply write these titles on a piece of paper and make notes over the next couple of weeks about how you can focus on the one which will have the most impact on your life.  Start small, but start.  Talk it over with your spouse, partner, friends or anyone else you feel can give you positive feedback or be a support system.

Until next time.

Debra Hadsall

www.ffptalk.com

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Great Way to Teach Children about Income and Expenses

Moms are the best and I love it when they teach life skills in a fun way.  Check out how one mom is teaching children about money while making it a fun project.

Just click here to learn more.

 

Debra Hadsall

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To order my book, please click here.

www.ffptalk.com

www.financialfreedomparty.com

 

My Monkey Mind-Irrevocable Life Insurance Trusts (ILIT)

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My monkey mind postings relate to Buddha’s description of the human mind as being filled with drunken monkeys, jumping around, screeching, chattering, and carrying on endlessly. These postings come from my monkey mind.

Something which happened about 10 years ago has been in my monkey mind.  I guess listening to my friends talk about elderly parents must have triggered it.  So here goes….

As part of my financial services business I had a listing in the Yellow Pages under resources for women.  It was the best I could do since there wasn’t a separate listing for women and finances.  The result was unexpected.  I received random calls from women in difficult life situations ranging from physical abuse, unwanted divorce, requests for money to start  businesses, and sometimes just a reality check on some financial decisions a spouse or significant other had made without checking with the woman.  After these calls continued , I became a connection between these women I never met to non-profits, social services providers, free legal advice, and government agencies who could help.  I learned a bunch of things which reached beyond financial advising.

One day I received one of those calls from an elderly woman who asked me what the difference was between term insurance (no cash value) and universal life insurance (which has a cash value).  The real reason for the call had to do with the fact that her late husband had established an Irrevocable Life Insurance Trust (ILIT) with a cash value policy and she thought he had made a bad decision.  I was curious to hear all the details so I went to visit with her.

In my Financial Freedom Party for Women®, A Little Book about Money for Women, Workbook Edition, I cover the differences between term and cash value policies.  To put it in a couple of sentences, term insurance is a very cost-effective way of getting life insurance and is appropriate for most people.  The premium goes towards the insurance cost and the policy runs for a certain period of time, such as 10, 15, or 20 years.  A policy with a cash value, such as universal life or variable universal life is more complicated and more expensive.  Some of the premium goes to the cost of insurance and some goes into investments offered through the insurance product.  The policy is considered to be “permanent” life since it is not restricted to a certain length of time.  My experience is that these policies (UL and VUL) are often considered upon guidance from an estate planning attorney when creating ways to provide for beneficiaries and reduce estate taxes.  This is a very generalized overview and to learn more please ask your insurance agent or do your own research on-line.

The control of the ILIT rests with a trustee, not the beneficiary (in this case the lady who called me).  This is done because of the estate tax benefits.  You can learn more by clicking here.  As with most people, she did not like knowing she had “all this money”, yet couldn’t access it when she wished.  I came to learn that was part of the plan.

I shared this insight with the lady. Apparently I was the first person she met who sat down and explained to her how this ILIT all worked. I was also the only woman advisor/insurance agent she had ever met.  She found me through my Yellow Page listing.

I learned that she was unhappy because the ILIT controlled her spending.  She had to ask a young man( who was the trustee) for any money which was needed  in addition to the monthly payment which had been established.  The goal of the plan was to keep her from running out of money.   I learned that her ILIT  did contain a universal life policy, the trust was created by an attorney with involvement by the now-deceased husband, and seemed to be in good order and in her best interest.  The things the trustee had told her were true, if she did not control her spending, she ran the risk of outliving her money.  In this situation, the planning was really in her best interest and when we finished our discussion, she, for the first time, realized it.  We talked about other ways for her to finance the expenses she wanted to incur including having a roommate in her spacious home, moving to a smaller one, or cutting expenses elsewhere.

I never heard from her again, but I learned a lot.  I saw how the appropriate cash value life insurance policy can be an integral and useful part of estate planning and a way to take care of beneficiaries upon the death of the insured.  My passion for working with women to understand their finances was re-kindled.  I knew that if someone had taken time to speak to this lady in language she could understand, her life would have been much better.  Sometimes financial professionals forget that it is not all about the numbers,  it is about how the numbers improve the lives of clients and getting the  clients to understand that.  It also reinforced my belief that the best time to learn about finances is not when your spouse or family member has died and not there to explain things.  Learning the fundamentals as a young person will make things a lot easier throughout her or his lifetime.

This event has stayed with me.  My insurance career involved term life insurance and that worked well for my family and clients. The ILIT was a good example how a cash value policy can be beneficial in estate planning and for beneficiaries who may need some additional structure and measured control over assets.  Each situation is different and this posting is not intended to provide you with personal advice on your estate planning, financial planning, or insurance needs.

Until next time.

Debra Hadsall

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www.financialfreedomparty.com

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Shopping for the Glory of God?

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I clearly have shopping on my mind.  Really, who doesn’t?  First we have 24×7 advertising and reporting on “Black Friday”, “Cyber Monday”, and an incredible amount of supersized  holiday shopping media blitzes everywhere.  It is, after all, the biggest marketing cycle of the year.  It seems to start before Thanksgiving and doesn’t end until those “after holiday sales” in January.  For those of us who gave up shopping until we dropped, it doesn’t matter.  We get exhausted just observing others go through it.  Then there are always the financial and emotional aspects of all this shopping.  Sometimes a different take on the whole experience can help us regroup and refocus.

Recently I re-posted one of my articles about shopping. It was a start, but some of the most useful and thoughtful guidance I have received came from a sermon.  It became  an important part of how I deal with the craziness of the intense comsumerism of the holidays.  It is a message based on the Christian celebration of Christmas.  The sermon (or message) is called “Shopping for the Glory of God”.  I came to experience this sermon over and over because it became part of the work my friend Emily Mann and I did with creator of this message, Rev. Dr. Marti Zimmerman.   The three of us together collaborated on what developed into a book called First You Dream, A Financial Management Workbook.  The sermon is one of six in the workbook and they all focus on money, consumerism, and faith.  I personally typed  all those sermons for the manuscript, so I am pretty well acquainted with them!

I hope you will take a few minutes to experience the power of Marti’s s words and an alternative view of shopping for Christmas and holidays.  Just click here.

Until next time.

Debra J. Hadsall

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Reposting of FFP Mini-Newsletter, Shopping

shopping2It seems like a good time to share my FFP Mini-Newsletter which was one of the early posts about a very common subject, shopping.

Please click here and enjoy.  Share with your women friends, your daughters, granddaughters, nieces, sisters, and anyone else who likes to shop!

Debra J. Hadsall

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Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition is now available on Amazon.com. Just click here.