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Lawyer Mark Matney of Matney Law PLLC - Newport News Virginia - DUI and Traffic Court Lawyer

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(757) 703-4556

Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

Financial Peace University’s 6th lesson addresses insurance. Dave Ramsey teaches that, “Insurance protects the things that will make you wealthy.” Seven basic insurances: Auto, Homeowner’s or Renter’s, Health, Disability, Long Term Care, Life, Identity Theft. Auto, identity theft and homeowner’s or renter’s insurance protect your property while the others protect your income. The greatest asset of someone who is working is the ability to earn money. Health, disability and long-term care insurance work together to protect against the lost income and increased expenses of injury or illness that prevent employment.

Insurance, Part Two. Everyone has to have car insurance, but it is not something everyone pays attention to. The premium is affected by the vehicle, the driver, the location and the coverage limit. It is not hard to understand that an insurer has more risk with a young driver in a sports car than an experienced driver in a sedan. However, some vehicles are more likely to be stolen than others and some cities or states have a higher rate of claims and these are also part of the premium calculation. Car insurance acts like a shield that deflects claims that could arise if you are responsible for an accident or in an accident with an uninsured driver.

Your coverage is stated in three parts, such as 100/300/100. This translates into limits of $100,000 per person per accident for personal injury, $300,000 maximum no matter how many people are injured, and up to $100,000 for property damage. States set minimum coverage amounts, but you need enough insurance to avoid personal responsibility for all personal and property damage of an accident. $100,000 sounds like a lot of money until someone is being treated for a serious injury.

Insurance, Part Three. One more comment about insurance. Buy term life insurance and establish a separate investment plan. Life insurance that includes a “savings” aspect is not worth the extra money. If you use the savings, then you will have to pay interest on what is supposed to be your own money and when you die, the insurance carrier will keep the accumulated savings.  You will have more life insurance now and more retirement savings later if you buy term insurance and invest the extra you would have paid for cash value life insurance.  For Dave Ramsey’s input, listen here: https://www.youtube.com/watch?v=4meo1tkyJak&authuser=0

Attorney Mark Matney

DUI Attorney Mark Matney - Attorney Mark Matney - Holcomb Law, PC - Newport News - Williamsburg

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Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
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Monday Morning Money Minute

Caveat emptor – Let the Buyer Beware, Part 2. The second way to avoid debt for a major purchase is to negotiate and look for a deal. Some suggestions: Stores run specials for every major holiday, so wait for the sales. Use the internet to search prices and make stores honor their promotions to “match or beat any competitor’s price.” Ask about open box or floor model discounts. Take cash - show that you are ready to buy but also ready to pass if the deal is not right. Ask for extras, such as free installation, upgrades, or warranties.

One example: After negotiating for an extended period of time for the purchase of a van, the dealer still did not meet our number, so we left. The same sales rep was working at a different location we visited and, knowing we would walk away if we did not get the deal we wanted, he arranged a better price and a longer warranty so he could close the sale.

Attorney Mark Matney

DUI Attorney Mark Matney - Attorney Mark Matney - Holcomb Law, PC - Newport News - Williamsburg

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Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

We made it to Baby Step 7! Build wealth and give! One of the many benefits of pursuing the financial steps successfully is that you become able to donate liberally to help others. “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver” (2 Corinthians 9:7).

We cover the 7 Baby steps in the first four sessions of Financial Peace University and then we address a series of topics. Today we look at “Buyer Beware!” We are the most marketed to generation in history. According to Ryan Holmes, CEO For Hootsuite, in his February 19, 2019 Linked In article, “Back in the ‘70s, the average consumer in the U.S. saw around 500 ads per day. That number has since increased by a factor of 10 to upward of 5,000 ads per day.” We are bombarded with ads from Facebook, YouTube, Billboards and Direct Mail plus product placement ads in television shows and movies. We also receive many special offers to entice us to spend more than we intend, such as no money down, same as cash financing, no payment for 30 days.

To combat unnecessary spending, try the following steps: wait overnight before spending more than $250, consult your budget to make sure that the item is included or that you have set enough discretionary money aside, seek the input of your spouse or a thrifty friend, consider other ways you could use the money. Remember, it is easier to avoid debt than to get out of it!

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Lawyer Mark Matney of Matney Law PLLC - Newport News Virginia - DUI and Traffic Court Lawyer

Mark Matney

DUI - DWI Lawyer

Call Attorney Mark Matney at
(757) 703-4556

Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

Baby Step 6 – Pay off your mortgage early! As Dave Ramsey teaches, “100% of foreclosures occur on a home with a mortgage.” The more you add to your mortgage payment and the earlier in the loan you pay it, the less interest you will pay and the earlier you will be free from your mortgage.

Let’s look at an example: If a couple buys a $150,000 condo with a $120,000 thirty-year mortgage at 4.5%, then the payment for principal and interest would be $608.02 per month. If they make the minimum payment throughout the loan, they will pay a total of $98,888 in interest at the end of the 30 years. However, if they makes one extra payment per year, then they will pay off the loan in 25 years and 9 months and pay only $82,870 in interest. Even better, if they pay an extra $100 per month with each payment, then they will pay off the mortgage in 22 years and 6 months and only spend $70,944 for interest. Wow!

DUI Attorney Mark Matney - Attorney Mark Matney - Holcomb Law, PC - Newport News - Williamsburg

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Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
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Monday Morning Money Minute

Baby Step 5 – College Savings, Part Two. 529 Plan or Education Savings Account (ESA). I am using Paul Hogan’s pros and cons tonight for a quick overview.  529 Plans: No age limit for using the money, Only for college expenses, No income restrictions, Annual contributions limited to $14,000, Withdrawals tax free when used for college expenses, Non-qualified withdrawals taxed, Fewer investment options than ESA.  ESA: Must use the money by age 30, Can be used for primary and secondary education in addition to college expenses, Income restrictions apply, Annual contributions limited to $2,000 per year, Tax free withdrawals for education expenses, Non-qualified withdrawals taxed, Can invest in individual stocks, bonds or mutual funds.

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Lawyer Mark Matney of Matney Law PLLC - Newport News Virginia - DUI and Traffic Court Lawyer

Mark Matney

DUI - DWI Lawyer

Call Attorney Mark Matney at
(757) 703-4556

Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

Financial Peace University teaches that steps 4, 5 and 6 take place at the same time. Step 4: Invest 15% for retirement, Step 5: Save for College, Step 6: Pay off your house early. Today we look at Step 5, saving for college. The two best tools for college savings are 529 plans and Education Savings Accounts. However, there are also other good options to pay for college. The first decision is whether college is even necessary. Many careers today rely on experience and skill instead of degrees. To control the cost, consider Virginia’s option of two years at a community college followed by two years at a state university. A greatly reduced total cost, combined with a bachelor’s degree from the 4-year college, make this a very attractive option. Of course, don’t neglect applying for scholarships and grants, military service and working your way through school.

DUI Attorney Mark Matney - Attorney Mark Matney - Holcomb Law, PC - Newport News - Williamsburg

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Monday Morning Money Minute

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Monday Morning Money Minute

Investing Part Two. Timing the stock market is tricky. It is very hard to predict shifts in the market and to determine the high or the low of a cycle. The remedy is dollar cost averaging. By investing a consistent amount on a monthly basis, you buy more shares when the market is low and fewer shares when the market is high. Over time you will obtain more shares at a lower average price per share than if you just make one large purchase. There are no guarantees when investing in the stock market, but there are strategies that permit you to maximize your returns while minimizing your risks.

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Lawyer Mark Matney of Matney Law PLLC - Newport News Virginia - DUI and Traffic Court Lawyer

Mark Matney

DUI - DWI Lawyer

Call Attorney Mark Matney at
(757) 703-4556

Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

Financial Baby Step 4: Invest 15% of your household income for retirement. As investment coach Paul Hogan says, “Investing now will replace your paycheck later.” 15% may seem unreachable today, but you will have more money available as you pay off your debt. The earlier you start, the better. For example, if you save $200 per month (about $50 per week) at a 9% return beginning at age 25 and retire at age 60 (35 years), then you would have $592,770. However, if you wait until age 40 and invest for only 20 years, then you would have $134,579. The moral: start as soon as possible. It is never too late to begin. It is also never too early.

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Lawyer Mark Matney of Matney Law PLLC - Newport News Virginia - DUI and Traffic Court Lawyer

Mark Matney

DUI - DWI Lawyer

Call Attorney Mark Matney at
(757) 703-4556

Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

Moving on to financial baby step #3: Expand your initial emergency fund until it covers 3-6 months of expenses. Note the focus is covering your expenses, not necessarily covering your monthly income. Use your budget to determine what it would take to pay all monthly bills for 3-6 months. This would certainly prepare you for a major expense. The focus, though, is to protect against more serious setbacks, such as illness or job loss. This money is designed as savings instead of investment, so it belongs in a money market account instead of the stock market.

DUI Attorney Mark Matney - Attorney Mark Matney - Holcomb Law, PC - Newport News - Williamsburg

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Monday Morning Money Minute

Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
__________________________________

Monday Morning Money Minute

You must be intentional about getting out of debt. Achieving freedom from debt does not just happen. Some steps to help: Stop borrowing money, Establish savings to avoid new debt, Sell something, Cut your expenses, Take a second job or pick up extra hours, Turn a hobby into a second source of income, Pray. It is also important to reward yourself as you reach your goals. Do something special, but within the budget, each time you pay off a creditor. You earned it!