Kirsten Jacobsen

Do you know who’s trending right now in music?

All things Billie Eilish because of the unexpected
drop of “Guess” with Charli XCX and what I am
learning from listening to Billie's music.

In 2015 at the age of 14 Billie’s song “Ocean Eyes”
went viral on SoundCloud and although her
music relates to societal issues, mental health,
and personal identity, I relate her music to money
and power.

1. "Everything I Wanted"
Success: how achieving dreams like wealth and
fame doesn’t always lead to happiness. It
highlights the darker side of having “everything”
and how it affects mental well-being and relationships.

Money: can be seen as a play on the emptiness
that can accompany wealth and success that money
doesn't necessarily equal happiness.

2. "Your Power"
Power Abuse: how power can lead to exploitation,
which can also mean financial exploitation and
inequality in society. Billie says, “It’s really hard
to have this much power!” and how you find
yourself abusing the power.

Money: the idea of control, with Billie taking on
the persona of someone aware of their
influence and uses it to manipulate others for
the gain of power and money.

3. "All the Good Girls Go to Hell"
Social Impact: environmental issues and the
consequences of human greed. Also, suggests
that the pursuit of wealth and power comes at
a high cost to the environment and society.

Money: the capitalist mentality that prioritizes
profit over the well-being of the planet.

While Billie Eilish's music isn't directly about
money, I see it from a view of how money and
power can corrupt, exploit, and alienate.

Hop on my calendar for a complimentary needs analysis.
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Looking to supercharge your savings?

For the past 5 years, high-yield savings accounts have been the go-to choice for savers.

Here’s why you should consider opening one:

Maximize Your Growth: These accounts offer interest rates that leave traditional savings accounts in the dust, helping your money grow faster.

Outpace Inflation: With current rates between 4.5% - 5.5% APY, high-yield savings accounts help you stay ahead of inflation, currently at 2.89% (August 2024, U.S. inflation rate for the 12-month period).

Flexibility: Know your savings are easily accessible whenever you need it.

While high-yield savings accounts may not be ideal for long-term savings, they’re a great way to put your emergency and liquid funds to work.

If every dollar does not have a job, every dollar will find a job.

Are you already using a high-yield savings account?

Let me know in the comments!

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Have you ever felt overwhelmed trying to figure out where your money is going each month?

How would it feel to finally be in control of your budget,
knowing exactly how much you can save for your future?

Final budget thoughts:

- Setting up any monthly system requires initial effort and,
time like switching to a credit union to avoid fees on multiple
accounts.

- Maintaining a system is important for controlling spending
and savings, ultimately in long-term financial planning.
A financial system is easy to use once you’ve done the
upfront work.

- Don’t expect to know exactly what you’re spending in
every category right away; give it a few months to dial
everything in, but should only take about 10 minutes a
month after.

- When new income comes in, adjust the numbers in
EveryDollar and allocate the funds to the appropriate
accounts no tracking needed.

- Once you get control of your budget, you can start
figuring out how much to save for the future, including
retirement.

- If you want to understand how much you need to save
for retirement, a monthly financial system is a great
starting point.

It's time to take control of your financial future.

Protect your financial health.

Hop on my calendar for a complimentary needs analysis.
It's in my bio.

What other challenges do we face with traditional budgeting?

How can we categorize expenses and build systems to make budgeting work?

- Non-Monthly Expenses: Annual or irregular expenses ex: gifts, vacations, car repairs should be budgeted annually and then saved monthly in separate high-yield savings accounts.

- Creating Constraints: Limit spending by using separate debit accounts for different expense categories to avoid overspending and ensure funds are allocated correctly.

- Use a Money App: Use the EveryDollar budgeting app (free version) OR whatever free budget/money app that works for you to track expenses and manage money effectively. These apps help plan and ensure that every dollar is accounted for.

It's time to take control of your financial future.

Protect your financial health.

Hop on my calendar for a complimentary needs analysis.
It's in my bio.

Do you know what I learned about finances while listening to Kendrick Lamar?

Listening lessons - Kendrick dives deep
into personal struggles and societies
pressures:

1. The Value of Financial Independence &
Investment, Kendrick writes about this In
"Money Trees" (good kid) with the thrills
and falls of quick money vs. stability of
long-term investments.

Key: Not all money is good money.

2. Impact of Wealth on Personal & Community
Well-Being: Kendrick addresses the two sides
of wealth. In "How Much a Dollar Cost" (To Pimp)
Lamar refused to give a dollar to a homeless
man with the realization that his choice was costly.

Key: The homeless man reveals himself to be God

When are you going to choose yourself with
your finances?
‘I choose me, I’m sorry’

There is a certain social responsibility and
personal fulfillment in having wealth.
True wealth means having both.

Protect your financial health!

Hop on my calendar for a complimentary
needs analysis.
It's in my bio.

Does the thought of investing stop you in your savings tracks?

Investing isn’t just for the wealthy.
Start small, think big!

Investing 101:
1. Analysis: Understand the market
and the assets you are investing in.
Research is key to making informed
investment decisions.

2. Strategy: Develop a solid investment
strategy that aligns with your financial
goals and risk tolerance. A well-defined
strategy can guide your investment
choices and help you stay on track.

3. Discipline: Stick to your investment
plan and avoid making impulsive decisions
based on market fluctuations. Consistency
and patience are crucial for long-term growth.

Investing is a journey keep it simple, upgrade
your financial literacy and grow your assets.

It's the small things that make the big things
happen.

Protect your financial health.

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needs analysis.
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Did you know your weekends could be leading you into a debt spiral?

Weekends should be for unwinding,
not winding up more debt.

Are you falling into The Debt Trap?

The little things make the big things
happen:

Debt Management:
- Understand your debt and make a
plan to tackle it. Keeping tabs on what
you owe helps you avoid the debt spiral.

Credit Card Debt:
- Those small weekend splurges add up.
When you swipe take note of usage to
prevent high-interest debt from piling up.

Spending Habits:
- Assess your weekend spending habits.
Small changes in how you spend can make
a big difference in managing debt.

Protect your financial health!

Hop on my calendar to get a complimentary
needs analysis.
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Are You Financially Lit?

What you don’t know is costing you.

Financial literacy is more than just
knowing how to balance a checkbook.

It’s about understanding how to manage,
grow, and protect your wealth.

Master these topics to be financially lit:

Budgeting & Money Management:
- Knowing how to create and stick to a budget is the foundation of financial literacy. It helps you track income, control expenses, and prioritize savings.
Without a plan, it's easy to fall into pitfalls
like overspending and accumulating debt.

Understanding Assets vs. Liabilities:
- Financial literacy requires an understanding
the difference between assets (things
that put money in your pocket), and
liabilities (things that take money out of
your pocket). Building and managing a
portfolio of assets; investments, small businesses,
real estate, and savings, are key to long-term
financial success.

Investing & Taking Risks:
- Investing isn’t just for the wealthy; it’s
essential for anyone who wants to compound
their money over time. Understanding
different investments; stocks, bonds, and
mutual funds, and diversifying your
portfolio will help you build wealth.

Becoming financially lit doesn’t have
to cost you a lot of time, but not
knowing could cost you your financial future.

Protect your financial health!

Hop on my calendar to receive a complimentary
needs analysis. It's in my bio.

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Why is it important for us to understand what Inflation is?

It’s a crucial economic gauge that helps
us recognize the changes in the cost of
goods and services over time.

What does it affect:
Measures Price Changes: how much prices
are rising or falling, giving insight into the
economy's health.

Purchasing Power: High inflation means
your money buys less, while low inflation
means your money buys more.

Economic Decisions: Policymakers use
inflation data to make decisions on interest
rates, taxation, and spending to manage
economic stability. Employers make
decisions on wage negotiations, pension
adjustments, and contracts tied to
cost-of-living adjustments.

Understanding Inflation Matters:
Budgeting: Knowing the inflation rate helps
people and businesses plan their budgets
more effectively.

Investing: Investors consider inflation to
protect their investments from losing
value over time.

Inflation's Impact:
Rising Costs: If inflation is high, the cost of
everyday items like food, fuel, and housing
can increase, impacting household budgets.

Savings Value: Inflation can erode the real
value of savings if the interest earned on
savings accounts is less than the inflation rate.

Inflation is a key indicator that affects our
cost of living and the purchasing power
of the dollar.

Protect your financial health!

Hop on my calendar for a complimentary needs analysis.

How do the items in the Consumer Price Index basket help you protect your financial future?

The CPI basket includes items we buy
daily – food, clothing, housing,
transportation, and medical care.

It reflects our living costs and helps
us understand inflation.

By comparing the cost of this basket
over time, we can see how prices are
rising or falling.

Knowing which items are included in
the CPI basket and how their prices
fluctuate:

- You can better anticipate changes in
your household expenses.

- Allows you to identify which goods
and services are most susceptible to
inflation.

The CPI basket gives you the insight to
make informed decisions on long-term
purchases and investments.

Helping you protect your family’s financial
health against the unpredictability of rising
prices.

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Ingredient 4 of your financial analysis:

Are you gambling with your family's future?

To find your insurable need use the DIME
Method:

D = Debt that needs to be paid off
I = Income x 10 years
M = Mortgage paid off
E = Education funding being paid for

Typically it covers your family income
times 10 years.

But other things to consider are your
age, your medical condition, how many
dependents you have, your current financial
status, and most importantly, which tasks
do you want to assign to your life policy.

Protect your financial health!

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Ingredient 2 of your financial analysis:

Do you know your cash flow?

Not knowing your inflows and outflows can result
in financial instability, increased stress, living
paycheck to paycheck.

Cashflow ingredients:

Total Monthly Household Income: $
(subtract):
-Estimated taxes: $ (if self-employed)
-Monthly expenses: $
-Insurance premiums: $
-Savings: $
________________________
Net monthly income: $ (discretionary)

Ignoring your monthly and annual cash
flow is like driving blindfolded - you have
no idea where you're going or when you'll crash.

Protect your financial health!

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There are five key ingredients to a financial analysis.

Ingredient 1:
Do you have goals & dreams for your money?

Not having clear financial goals and dreams can lead to a lack of direction and purpose for your money.

Someone else is getting rich, it’s just not you.

Start with goals and dreams and a timeline:

1. Short-term 0-3 years
2. Mid-term 4-7 years
3. Long term 7+ years

- Make a Major Purchase
- Build Retirement Wealth & Assets
- Buy a New Home
- Build Savings for Unexpected Expenses
- Reduce/Payoff Mortgage
- Education funding
- Alternative income in case of disability or death
- Help support Aging Parents
- Pay Off Credit card/ Debt
- Start a Business
- Other ie. Home renovations, trip to Africa, etc.

How is your money being applied toward these
goals?

Without a plan, it's easy to spend impulsively and miss out on opportunities to grow your wealth.

Protect your financial health!

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Who’s going to live longer, you or your money.

Is your money the boss of you?

The wealthy don't work for money,
they make money work for them:

Leveraging Investments:
- Consistently invest in assets that generate passive income, like real estate, stocks & businesses.

Debt Management:
- Use debt strategically to acquire assets that appreciate and generate income.

Continuous Financial Education:
- Educate themselves on financial management, market trends, and investment planning.

By shifting to some of these approaches, you can start to change your financial trajectory.

Start making your money work for you.

Protect your financial health!

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Do you know there is magic in earning interest on your interest?

How understanding the aspects of compound interest can help you make better financial decisions.

Ways Compound Interest Works For Us

Growing Savings Over Time:
- The interest you earn each year is added to your principal, so you earn interest on a larger amount each subsequent year.

Boosting Investment Returns:
- Investing in stocks, bonds, or mutual funds that pay dividends or interest, which are then reinvested to buy more shares.

Life Insurance Savings Plans:
- Investing in cash value life plans like a LIRP, you earn interest on your initial investment and the interest previously earned.

Ways Compound Interest Works Against Us

Credit Card Debt:
- Carrying a balance where the interest is compounded daily or monthly, interest is added to your balance, you end up paying interest on the interest.

Student Loans:
- If you defer payments while in school, the interest accumulates and compounds, increasing the total amount owed.

Mortgages:
- Typically compounded monthly and if you only make the minimum payments, your early payments go toward interest not the principal.

"Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn't pays it," Albert Einstein

Protect your financial health!

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What if you couldn't work tomorrow?

What would you do?

Protecting your income is more critical than you think.

Why Income Protection:

1. Security Against Unexpected Life Events:
- Chronic Illnesses, accidents, or critical conditions can happen to anyone at any time.
- These events can lead to severe financial strain, making it difficult to meet your daily living expenses and maintain your lifestyle.

2. Maintain Financial Stability for Your Family:
- Your income supports not only you but also your family's needs.
- Ensures that your loved ones are financially secure even if you're unable to work; covering essentials like mortgage payments, education costs, and healthcare.

3. Peace of Mind & Reduced Stress: - Knowing that you have a safety net allows you to focus on recovery without the constant worry of financial instability.
- This peace of mind can significantly reduce stress during challenging times.

If it’s already happened it’s too late.

Financial planning can reduce the impact of unexpected life events, and the importance of financial stability for families.

Protect your financial health!

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Who's going to live longer - you or your money?

Ask yourself that question right now.

The answer might scare you!

Why Financial Planning:

1. Combatting Inflation:
- Inflation steadily reduces the value of your money over time.
- Your savings may not keep pace with rising costs, leaving you financially strapped in the future.

2. Preparing for the Unexpected:
- Life is unpredictable. Emergencies, health issues, and unexpected expenses can quickly drain your resources.
- Planning ensures you have a safety net to handle life's surprises without derailing your long-term goals.

3. Establish a Comfortable Retirement:
- People underestimate how much they need to save for retirement.
- Planning helps you set realistic goals, maximize your contributions. - Create a sustainable income stream that lasts throughout your work optional years.

Don't leave your future to chance.

Start planning now to ensure your money outlasts you.
Financial planning ensures that your money lasts as long as you do.

Protect your financial health!

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Get them while they are young!

Want to build a lasting legacy for your children?

Setting up an LLC for them might be the smartest move you ever make!

Here are some of the LLC benefits:

Wealth Building & Asset Protection:
- An LLC can hold and manage assets, investments, or business ventures for your children. This helps in accumulating wealth over time, as the LLC can grow and expand its portfolio.
- The LLC structure provides liability protection, ensuring that personal assets are shielded from any business-related liabilities or legal issues. This means your children can take business risks without jeopardizing their wealth.

Education & Financial Literacy:
- Involving your children in the management of the LLC can be an excellent hands-on learning experience.
- They can gain practical knowledge about entrepreneurship, financial management, and investment strategies.
-Teaching them to manage an LLC from a young age gives financial discipline and business sense, gifting the Rich Dad skills that will be invaluable.

Estate Planning and Tax Benefits:
- An LLC can be a powerful tool in estate planning.
- You can transfer assets into the LLC and gradually gift ownership interests to your children, possibly reducing estate taxes.
- Depending on the state and federal laws, the LLC may offer tax advantages; business expense deductions and the ability to split income among family members, leading to tax savings.

This proactive step can help ensure that your legacy is preserved.

Giving your children the skills to manage and expand their wealth responsibly.

Protect your financial health!

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