May 28th Coaching Tip: Six Questions for Your Budget.
Talked to my godson recently and he mentioned how important it was that I taught him how to budget in minutes. It was one of those moments for me that I actually don’t recall; however, for him it was a moment that mattered to him, and he’s shared the budgeting tips with his friends for years now.
Let’s get the ball rolling here by answering these questions about your income and expenses to help you establish your budget. 1) What is your total income? 2) What is your net income (after taxes, 401K, health insurance and social security are deducted from your paycheck, if applicable), 3) What do you want to save for and why? i.e. $5,000 emergency savings account or $40,000 for a home downpayment or $15,000 for a few months off to study or travel. 4) What are your monthly mandatory bills, i.e. food, housing, utilities, cell phone, and car or transportation expenses. 5) What are your discretionary monthly bills, i.e. health insurance, dining out, clothing, entertainment, gifts/parties, etc. 6) What is your monthly debt that is NOT housing, i.e. Visa, Mastercard, loan payback to parents and friends, etc.
Once you understand these six questions, take 5-10 minutes to answer them. Your MONTHTLY net income needs to be MORE than all of your MONTHLY mandatory, discretionary and debt. If you are positive, then you have the ability to save even more. If your expenses are higher than your net income, then you must a) find ways to increase your income (work a second job, have a side hustle, etc.) and also find ways to reduce your expenses. For example, during my 25 years at Caterpillar, I made my lunch in the morning and took it to work most days that I was in the office. Let’s assume that I saved $7/lunch during the 25 years, working in the office those days that I brought my lunch of 180 days equates to a $31,500 savings just by bringing my own lunch. Another cost saver that we still implement is that we go out to eat one evening a week. And, since I’ve been 21 years old, I contributed to my company’s 401K and the companies matched my contribution. Experts call this, “pay yourself first” by having it automatically deducted from your paycheck, and you won’t notice it since it never becomes a part of your discretionary budget. Know how to answer these six questions on your budget.
May 29th Coaching Tip: Get Yourself A Mentor.
Yes, I’m 60 and I found my mentor for my next couple decades. We met back in 2012 when he hired me to be the VP of Marketing for a tech startup. Fast forward to 2025, he has been working with a number of tech startup companies, helping 20-30 year old entrepreneurs build up their company and grow it, to ultimately sell. He’s 10 years older than me and I look forward to learning what he did from 60 to 70 years old, and then implementing many of his tips and tactics. He’s family oriented, enjoys makes memories, very health and sports focused, lives in the same areas (Naples, FL and Carmel, IN) as me, etc. I look forward to learning from my mentor, as we both agree, our best chapters in our life’s book are ahead of us. Get yourself a mentor.
May 30th Coaching Tip: Celebrate Your Wins.
After selling two homes recently, it was time to celebrate. One of the homes in Westfield, IN, was sold to a couple who was well prepared, and we closed on a price $6,000 over list price (we had 4 offers in 48 hours of the listing) in just two weeks. The other home in Delray Beach, FL, also sold to a young couple at list; although they were not as prepared, my realtor helped them actually get their financing completed to finalize the closing before the end of May.
Why celebrate? Because I challenged myself to buy both of these homes during COVID when times were a bit weird and unknown. Fast forward to 5 years later, selling these two homes is allowing me to do another project closer to my college home of Indiana University. We are in the midst of remodeling a 95 year old farmhouse with a green metal roof; the nearly 10 acres has a couple barns, a “she-shed”, and a chicken coup. We will celebrate there soon with a house and barn warming party, complete with a DJ playing music, and having fun with the indoor pickleball and basketball courts. Celebrate Your Wins!