State debt across the U.S. has surged to new highs, posing serious challenges for residents. When states carry debt that outpaces revenue, it often creates financial strain, leading to budget cuts and the possibility of tax increases.

This burdens consumers with rising living costs and skewed debt-to-income ratios. To shed light on this fiscal challenge, World Population Review delves into the national debt landscape, analyzing government debt levels across different states. Read the rest

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If you’re going to find a bank for your kids, you should also find a smart banking solution for your whole family. After all, no one wants to juggle sending money back and forth or remembering millions of passwords. Then, check out our best banks for families. 

This list of banks offers products to help kids build their financial literacy. Additionally, they also offer services that will address your banking needs. Think of the best banks for families as a one-stop shop to help you build a financially brighter future. 

Best Banks for Families

These are some of the best banks to bank with if you have kids and teens at home. Read on to learn more! 

Capital One

Capital One is an excellent bank for families. It is one of the original online banks that also has in-person locations with both kids and teen accounts. 

Benefits for Families

Some of the best Capital One benefits for families include: 

• High APY: A lot of banks with physical branches don’t offer competitive interest rates. That’s not the case with Capital One! As of the time of this writing, they are offering a 4% APY with their 360 Performance Savings account.
• Actual Locations: Are you looking for a bank you can visit in person? Capital One has branches in some locations. Plus, Capital One cafes are popping up too! 
• Kids Accounts: The kids savings accounts feature higher interest rates than many in-person banks. With no fees and no minimums, all kids can learn to be savers. Kids Savings Accounts with Capital One are offering 2.5% APY as of the time of this writing.
• Teen Accounts: Your teen gets the freedom to manage their money, but there are oversight options for parents to help monitor account activity as well. With their Money Teen Checking account, your teen will get their own debit card with their name on it and an app to review their account balances.
• Options for Parents: Capital One offers a variety of banking options, including checking accounts, savings accounts, and CDs. 
• Time-Tested Reputation: Capital One is a well-known online bank. For many people, that established history is important when it comes to entrusting a bank with your money! 
• FDIC Protected: Your bank deposits are FDIC-insured up to $250,000.

Things to Consider

If physical branches really matter to you, it will be important to check your area. Capital One has an inconsistent footprint, with cafes in some big cities and branches in other places.

Additionally, the APY for the Kids Savings Accounts is lower overall than the competition.

ATM Access

70,000 fee-free ATMS with Allpoint, Money Pass, and Capital One. Find them with this ATM locator. 

Costs / Fees

No monthly fees, no minimums, no overdraft fees. 

Ally

Ally is a longstanding favorite in the personal finance community! While it may not have dedicated kids’ accounts, Ally is still a contender for top family banks.

Benefits for Families

• Well-Known Online Bank: Ally is perhaps the most well-known online bank. That means that you can feel at ease using their robust service offerings.
• FDIC Protected: Your bank deposits are FDIC-insured up to $250,000.
• Investment Options. In addition to offering savings and checking accounts, Ally also has investing and retirement products as well. 
• Bucket Tools. One of our favorite ways to set up sinking funds is to use the buckets tool in an Ally savings account. No need to manage multiple savings accounts; instead, you can label, categorize, and set goals within a single Ally account. 
• High APY. Ally offers one of the most competitive online interest rates on your money. As of the time of this writing, Ally offers 4% APY on all savings accounts.

Things to Consider Before Getting An Account

Ally does not have any physical branches. Additionally, there is not a lot of detail on kids accounts on their site. In fact, they don’t really target family finances specifically. (But we can help you set up an Ally account for your kids!)

If allowing your child to manage their own debit card is important to you, it’s worth noting that debit cards do not have kids’ names on them. Also, they will not have access to their own app experience to check their account balances. Get ready for “Mom! Dad! How much do I have in my account?”

ATM Access

You can access your money using Allpoint, Money Pass, or Ally ATMS. Find an Ally ATM here!

Costs / Fees

No monthly maintenance fees, no minimums (on savings, checking, and CDs), and no overdraft fees. 

Crew

Crew knows that debit cards for kids are important teaching tools. That’s why Crew offers a variety of tools including a kids debit card to help you teach your kids about financial literacy. 

Benefits for Families

• High APY: Crew savings accounts and checking accounts have some of the highest interest rates around. Currently, they are beating out both Ally and Capital One at 4.2% APY, but that is subject to change.
• Allowance Feature: Do you want to use an allowance with your kids but have a hard time making the cash-to-online bank transfer? Crew has a built-in allowance feature to make it easy to pay your kids every week or every month. 
• Pockets Feature: Set up sub-accounts within your savings account to set money aside for certain goals. 
• Kids Debit Card: Kids receive a Crew debit card with their name on it and can log-in to view their account balances and transactions. 
• FDIC Protection: Your money is FDIC-protected through Bangor Savings Bank.

Things to Consider

Crew is relatively new to the finance scene. As such, families might be hesitant to use them. Though your money is FDIC protected by Bangor Savings Bank, Crew is a fintech company, not an official bank. Additionally, there are no physical locations. 

Check out our full Crew review to learn more!

ATM Access

Crew users can access ATMs on the Mastercard, Maestro, or Cirrus networks and be reimbursed up to 20 times per year. 

Costs / Fees

No minimum balance or deposit is required. Right now, you can get an extra 0.5% APY for three months by using our affiliate link in the button below.

Chase

Chase offers a variety of products and services for families. The standout option is Chase First Banking, a debit card designed to help kids ages 6-12 learn to manage their money. The card can be used by teens up until they are 17. 

Benefits for Families

• In-Person Banking. Chase boasts almost 5,000 branches, so there’s a good chance you can bank in person near you. 
• Solid Financial Institute. Chase is one of the best banks for families in the USA and abroad. Its global reputation means you can trust them and access your money from virtually anywhere. 
• Established Accounts. Many adults are Chase credit cardholders. As a result, it may be very convenient to pick up more products and services from a bank you already use.
• Chase First Banking. Chase offers a debit card geared toward kids ages 6-12 tied to a bank account owned and managed by a parent or guardian. 

Things to Consider

Chase offers a paltry APY. If you want to teach your kids about compounding, Chase savings accounts aren’t going to be much help. 

Additionally, the app experience is only OK. It’s not difficult to navigate, but it doesn’t offer helpful features like Ally Buckets or Crew Pockets.

ATM Access

The Chase ATM locator will help you find one of nearly 15,000 ATMs in the US or worldwide. 

Costs / Fees

Different Chase accounts have many different fees. To avoid surprises, Chase spells them all out here.

Bank of America

Bank of America makes our list of best banks for families because of its SafeBalance Banking for Family Banking offering. That’s because Bank of America understands that not every child is ready to manage money on their own. With a SafeBalance Banking account, children can learn to make money-smart decisions with your help! 

Benefits for Families

• Many Branches: There are nearly 4,000 Bank of America branches in the United States. That means there’s a good chance you can bank in person if that matters to you!
• Established Accounts: It’s possible you may already be a Bank of America customer. If you have an established account with them, it’s certainly convenient to use more products and services within one bank. 
• Well-Known: Bank of America is a well-known, FDIC-insured bank. 
• SafeBalance Banking for Family Banking: This bank account (that comes with a debit card!) is designed to help children under 16 manage their money better. You can use parental controls to guide your child’s spending. It’s also worth noting that there are no monthly fees! 

Things to Consider

Bank of America offers a lackluster APY, which means your money isn’t working as hard as it could be. Plus, the app user experience is equally dull.

Perhaps the biggest thing to consider is that Bank of America users say their customer service experience is poor. 

ATM Access

You can use the Bank of America ATM locator to access 15,000 ATMs nationwide!

Costs / Fees

Different products and services come with different fees. Use the fee finder to learn more about what you might pay for Bank of America services. 

Final Thoughts on Best Banks for Families 

When it comes to financial literacy, nothing takes the place of allowing your kids and teens to manage their own money. However, not all banks make it easy to do that.

The banks on this list are some of the best banks to bank with if you are looking for kids savings accounts, checking accounts to manage with your child, or kids debit cards. By allowing kids to manage their money with your help, you can set them up for a successful financial future. At the same time, parents need a great bank too. These options support with the needs of the entire family!

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Do you have another suggestion for our best banks for families list? Have you ever used one of these banks?

Please let us know in the comments below. 

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Securing a mortgage is a big step toward homeownership, and a “conditional loan approval” might be the green light you’re looking for. But what is conditional loan approval, and what does it mean for your dream of owning a home? Here’s everything you need to know to understand and navigate this crucial step.

1. What is a Conditional Loan Approval?

A conditional loan approval is a step between mortgage pre-approval and final approval. This means that, based on your financial profile, the lender is willing to approve your loan once you meet certain conditions. These conditions can include things like verifying your employment, showing additional bank statements, or providing documentation on any outstanding debts. It’s not the final green light but an indication that you’re close to securing the funds for your home. Conditional approval offers peace of mind for both you and the seller, showing that financing is underway.

2. How Does Conditional Approval Differ from Pre-Approval?

Understanding the difference between conditional approval and pre-approval is key in the home-buying process. A mortgage pre-approval is an initial assessment based on preliminary financial details, giving you an estimated loan amount. Conditional approval, however, is a more rigorous check where the lender takes a closer look at your financial records and requires additional information. While pre-approval gives you an idea of your budget, conditional approval shows the lender’s more serious intent to approve your loan. It’s essentially a deeper dive, showing that your loan approval is within reach.

3. Common Conditions You’ll Need to Meet for Approval

When you receive a conditional loan approval, the lender will list specific conditions for final approval. These conditions often include submitting updated income statements, confirming employment status, and providing additional bank documents. Other conditions might involve clarifying recent large deposits or supplying proof of any funds being used for the down payment. Meeting these conditions is essential, as they help lenders assess your ability to manage the loan. It’s best to work closely with your lender to quickly fulfill these requirements, moving you closer to owning your home.

4. How Long Does It Take to Move from Conditional Approval to Final Approval?

The timeline from conditional approval to final approval varies depending on how quickly you meet the lender’s conditions. Typically, this process can take anywhere from a few days to several weeks, depending on factors like documentation requirements and lender processing times. Being proactive and organized with your paperwork can speed things up and prevent delays. Some lenders may expedite the review if all conditions are met quickly, especially if the real estate market is competitive. Working closely with your loan officer during this stage can make a significant difference in timing.

5. Tips to Increase Your Chances of Approval

To improve your odds of moving from conditional to final approval, consider these tips. First, stay organized and keep all relevant documents in one place, ready to submit as soon as the lender requests them. Second, avoid making large financial moves, like opening new credit accounts, as this can affect your financial profile. Third, stay in regular communication with your lender and promptly address any questions or clarifications. Lastly, maintain stable employment and income levels, as any major changes can impact your loan status. Following these steps shows lenders you’re a reliable borrower ready for homeownership.

From Conditional Approval to Home Sweet Home

Getting conditional loan approval is a promising step toward homeownership, but it’s not the end of the journey. By understanding what conditional loan approval is and meeting the necessary conditions, you’re that much closer to your dream home. Remember, staying organized, responsive, and mindful of your finances can make a huge difference. With careful preparation and cooperation with your lender, you’re well on your way to final loan approval. Soon enough, the keys to your dream home could be in your hands!

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🎙️Episode #369 – Trying to decide between buying more rentals or paying down debt to reach financial freedom? I’ll share my own story of facing…

The post Should I Buy More Rentals or Pay Off Debt? (Here’s What I Did) appeared first on Coach Carson.

  This is a sponsored article. Debt can be a significant source of stress, but with the right strategies, you can manage it effectively and regain control over your finances. Whether you’re dealing with student loans, credit card balances, or other forms of debt, there are practical steps you can take to get on the…

Our team, led by R.J. Weiss, CFP®, evaluated dozens of debt payoff apps based on our personal experiences, affordability, user experience, app store ratings, and effectiveness in helping users pay off debt successfully. After extensive research, we’ve selected our top picks for various categories: Note that the rating and review data contained in this article was collected on July 15, 2024. We update this data periodically throughout the year. Best for Keeping Track of Debt: Debt Payoff Planner Debt Payoff Planner provides a simple setup and review system to give you a comprehensive look at your debts and repayment journey. […]

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We have some amazing mentors in the Millionaire Money Mentors forums. Some of them are even accomplished authors!

Today we have a guest post from one of those authors, Monica Scudieri, author of Grab Your Slice of Financial Independence.

Monica has an awesome story of achieving financial independence despite some pretty tough obstacles, many of which she shares in this post.

I hope this will be an encouragement to those of you with money challenges that there is hope and with tenacity and time, many of these obstacles can be overcome.

With that said, here’s Monica…

—————-

My path to financial independence was less “graceful swan” and more “drunken flamingo”. I made so many mistakes (and some very expensive ones) that it’s hard to believe I was ever going to be able to quit my 9-to-5 and retire, but I did just that in 2022 at the ripe age of 52. What’s even more wild is I was able to turn my financial trainwreck-of-a-life around in just ten years and reach my definition of financial independence.

But telling you the ending of my FI journey is like flipping to the last chapter of a book so, let’s start at the beginning.

Starting Out

In the mid-60’s, my parents immigrated to Miami Beach, Florida from a small Italian town in the Abruzzo region.  My dad got called for a tailoring job. That is how they ended up in Miami Beach. He accepted the job, asked my mom’s parents for her hand, they married and shortly after, he moved to Miami Beach. My mom followed a year later.

Growing up with immigrant parents was like living on Italian sovereign ground when I was home. My parents spoke Italian, kept Italian culture, played Italian music and generally socialized with other Italian families who also immigrated to the Miami area.

My mom did not support or understand why I would want to go to college when all I needed to learn was how to cook, clean and raise kids… and she could teach me all of that. Nonetheless, I became the first in my family to graduate college and with no debt, thanks to my dad.

Looking at things through my moms’ eyes, I can understand why she didn’t see value in my going to college. Neither of my parents finished elementary school but they were some of the smartest people I knew. They moved to a new country with no money, language, or support. Over time, they learned to speak English, built a successful tailoring business, became part of a community and raised a family with no help from either of their families. They paid for both my brother and I to go to college and paid off their home mortgage.

They were big savers and lived below their means, but investing was a different story. They invested in the stock market … but only once. The way my mom told the story, a customer came in and told them about a “great stock tip”. Said it was ripe to go up and now was the perfect time to invest. So, they took a chance and invested in this one company. The next day they checked to see what the stock was doing. My mom said, “it went so low, we no see it no more.” And that was the end of stock market investing.

Through it all, my parents did not believe in credit cards, though after they divorced (in my early 20’s), my mom opened her first credit card. Once a year she would pull it out to make one purchase, pay it off, then put it away. She liked knowing it was there, just in case.

Anyway, I graduated college, got my first corporate job and after two years I moved to California with that job. I got married, bought a house and had a couple of kids. We even adopted two cats from the SF SPCA.

The American Dream

I was living the American dream of a career, marriage, mortgage, two kids, two cats and debt. I was so busy, I didn’t have time to think about savings, investing or retirement. Retirement seemed light years away. 

In our marriage, financially, we joined everything, but, we were not on the same page. He didn’t see a problem with carrying credit card debt. Worse, he would cause checks to bounce because he would withdraw cash and not tell me and even locked us out of our bank accounts… more than once. Don’t get me wrong, I spent too, but never more than we had and certainly with the intention of paying our credit cards off at the end of the month.

By 2005, we moved to North Carolina. Three years later, we separated. The kids (and cats) stayed with me.

A year after separation, I was divorced and unemployed, carrying $257,000 of debt, half of which was the mortgage. The kids were in preschool and kindergarten, and my mom lived four states away. Below is a snapshot of my net worth.

This was all during the 2008 financial crisis, a.k.a. the Great Recession. For those of you unfamiliar, the stock market dropped about 50%, the housing market crashed and there were no jobs to be found for even the most qualified people. Layoffs were happening across all industries. And unemployment hit a high of 10% by 2009.

Just like that, I lost my temp job, couldn’t afford to sell the house (or buy a smaller one) and the little cash I did have was cut in half by the divorce and the recession.

This was my starting point on the path to financial independence.

Single Parenting

Being a single parent, it was near impossible to find employment because I was limited to:

1. A short commute
2. Needed flexible time
3. I could not cover overtime, travel or weekend work. That alone put several applicants ahead of me for the few jobs I could find. 

The Outrageous Goal

Nonetheless, I dreamed big and set an outrageous goal of a $1 million net worth. I look back on that goal and realize how abstract it was. Does that million include my primary resident? What is the net worth made up of? But what I was really asking myself was, how would that $1 million net worth translate to covering monthly bills? 

The truth is when I initially set that goal, I had no answers to any of those questions, nor did I even realize that some of those questions were on the table. Then again, maybe it didn’t matter. I didn’t even have a solid foundation on which to build that kind of net worth. What I knew for sure was I never wanted to be in a vulnerable position again. I did not want to be dependent on a paycheck. Bottomline, I wanted better for my kids and me.

Poor?

That first year, after the divorce, my son (then a first grader) came home and asked if we were poor. I was surprised by the question and asked why he would ask such a thing. He said that he was told we are poor.

After thinking about it, I sat him down and said, “we are not poor because we have clothes on our back, a roof over our head and food on the table, but more importantly, we have each other. So long as we have that, we can never be poor.”

I like telling that story because, what I have come to understand is “poor” is more a state of mind and less what is in your bank account. When he asked that question, I had no job, no prospects, $257,000 of debt, and very little money in the bank. But what I did have was my why, my direction, and a drive so strong it carried us through some of the most challenging and stressful times of my life.

Since that conversation, the lesson I learned is money provides security, not happiness. You could have millions to your name and be lonely. Conversely, you could have pennies to your name and be surrounded by friends and family that love and respect you. 

The second lesson is that money doesn’t make all your problems go away but I do go to bed knowing that I have a roof over my head, clothes on my back and food on the table. 

The FI Journey

The first five years of my FI journey started after my separation and subsequent divorce; I went on unemployment three times for a total of 22 months. That goal of a million-dollar net worth got a little further away in the first five years, as the unemployment months chipped away at my savings.  

But in 2012, there was a small turnaround, a glimmer of hope, in the housing market. Enough of one to sell my house and downsize into a new home. 

With this one move I was able to pay off the $257,000 of debt and put a 50% down payment on the new home, while still holding back enough cash to move and get the new home setup. I also opened a HELOC on the new home and used it to purchase five SFH’s over the next three years, for cash. 

Purchasing Five SFH’s in Three Years

You are probably wondering; how did I go from unemployment and $257,000 of debt to purchasing five SFH’s? 

In those first five years, I spent time job hunting and working contract jobs, but I also did A LOT of research. I took the time to educate myself on all things personal finance. I worked hard at building a solid foundation and learned how to track my day-to-day cashflow before I even attempted to build a budget. Towards the end of each year, I would look back on my spending and use that to create a new budget to optimize cashflow and support my lifestyle and financial goals. 

I learned that budgeting was not a tool to build scarcity but to build a rich life as I wanted and needed it to be. Mid-year I would look at my spending and make any adjustments to the budget as things would unfold and new information came up. Lastly, I learned to leverage sinking funds paying myself monthly for a specific goal basically, setting cash aside for annual expenses. 

During those first five years, I also got creative in finding quick cash, like selling the furniture out of my house (I was going to downsize anyway), dog sitting, and cooking for others. I read everything I could find on managing home finances from books and articles to podcasts and blogs. This led me to rental properties among other ideas to create income streams. Most of the ideas I came up with did not work out, but rental properties looked very promising. I even went so far as to look at properties to rent and what that would look like. I used the 1% rule (rent must be 1% or greater than the purchase price), to practice ruling out properties that did not fit my criteria. The more research I did on the real estate market the more I was convinced that this would be a great fit for me.

I did everything I could think of and within my control to be prepared for new opportunities. There was no point in looking back and regretting all the lost opportunities. What I know to be true is change is constant and there is always a next opportunity.

With my move behind me, a HELOC to leverage for cash purchases, I went to the bank to secure a preapproved loan. I did not want to leave anything to chance in building my real estate portfolio. 

No bank would approve me for a preapproved loan to purchase rental properties. I was, after all, a single mom with a temp job (which was not considered real income in the eyes of the bank). Because of this, no one could see a path of how I would pay them back. Interestingly, child support did count as income but not enough to sway anyone to take a chance on me. That is until, I talked to the branch manager at my bank. I explained to him my plan and he also told me that the bank would not give me preapproval for the same reasons as all the other banks. BUT, he continued, he would talk to the commercial loan officer and go to bat for me. Long story short, I secured a preapproved loan for one rental property.

Once I got my preapproval letter, I registered an LLC for my real estate portfolio and began shopping for my first rental property, which I purchased in 2013 with my HELOC for cash. After the purchase I would go to the bank and use my preapproved loan to pay 80% of the purchase price back to my HELOC. The remaining 20% I would work to pay off. The next two years I repeated the process of getting a new preapproval for two rentals instead of one, purchase with HELOC, get loan for 80% of PP, pay the HELOC. Wash. Rinse. Repeat.

By the time I got my fifth and ultimately last rental, I went to a different bank and secured a 15/7 term 4% fixed consolidated loan. I was able to consolidate the rental loans as well as pay off the balance on my HELOC and saved thousands of dollars in the process. 

As for the job market, it took until 2014 to secure a permanent job which allowed me to max out my 401(k) and open a Roth. Eventually I opened a Health Savings Account, something I wish I had done sooner.

By 2018 my net worth had reached $1 million, and I was in complete disbelief. For the last ten years, all I could focus on was getting on stable financial ground and never be reliant on a paycheck. Here I was with a million-dollar net worth. 

I took a year just to let the dust settle and take it all in. Not to mention, I was head down, laser focused on building wealth, I had no time to think about what came next. There was literally no plan for next chapter because I thought it would take longer than it did.

That year led me to a work opportunity that I took and stayed a couple more years. After a while, the work was not fulfilling, things were changing and I no longer wished to stay. But what was next I wants was not sure, until I went to my first FIRE event, FinCon2018. 

I felt like a flower that had been living life partially wilted. I came alive surrounded by my people. The conversations were amazing. There were so many like-minded people concentrated in one place, it was like drinking from a firehose. Each person I met asked what I was doing there. I would tell them my story and the reply was always the same. “you should write a book!” Honestly, I thought they were saying it to be nice, but more and more the same thing was repeated, write a book.

“Who would want to hear about a single mom struggling financially?” was the question I would come back with, but the response was also the same every time… “everyone! Lots of people struggle with finances.”.

A quick Google search pointed me to statista.com showing that in 2018, there were 16+ million single moms and 3+ million single dads in the US alone.  Maybe they were right. Maybe there is an audience interested in my story.

The Book

I have never written a book before nor have I ever thought I had anything interesting to say and certainly not enough to fill a book. Not to mention the number of personal finance books already published. Why add another one? How would I add value in an already crowded genre? I started writing just to see where it would take me and to my surprise, I had a lot to say. 

Two hundred pages later, in September 2022, I published, Grab Your Slice of Financial Independence. It outlines my ten-year FI journey from divorce to FI, plus I group the years into phases and provide directions on how others can do the same. But what really sets my book apart is I share my net worth at the end of each year. Highlighting the fact that achieving financial independence is not something that happens instantly. This isn’t the lottery!

When people ask me why I wrote it, it really came down to this: I didn’t go through all of that for nothing. I wrote it for single parents, so they would have hope and not feel alone. I have received many thank you’s from more than just single parents. I am told my story gives hope and a different perspective on how to look at home finances. Sharing my story has changed lives. How crazy is that?!? 

This snapshot of my ten-year FI journey doesn’t cover everything, but I do hope it continues to inspire others to see their finances differently, take a chance on building income streams and not dwell on opportunities missed. 

It’s been six years since I reached financial independence and two years since I quit my corporate job. Today my net worth has grown to $2.3 million, and my primary home is valued at $500,000. When I look back there are many lessons I learned. How many do you relate to?

1. Know your why.

My why of not wanting to be dependent on a paycheck was crystal clear. I had it taped up where I could read it every day. Every year when I created my goals, it was with this one vision in mind. 

When I had setbacks, I reminded myself of my why, learn from the situation and figured out how to move forward. Having my why kept me motivated.

2. Always re-evaluate your goals

Every year is an opportunity to learn and grow. Every year is filled with wins and losses, challenges and victories. Life progresses whether we are paying attention or not. 

Your goals, while valid when you first wrote them, may need to be updated based on new information. Maybe an opportunity comes along that you did not consider a few months ago and things would need to be shuffled. Stay flexible.

3. Shame and Guilt

When it comes to financial mistakes, feelings of shame and guilt are strong. In fact, so strong it can be paralyzing, keeping us from looking at our financial situation.  The anticipation can eat us alive. 

It was the hardest thing to take that first step after the divorce to look at my financial situation, calculating net worth, making a list of debt.

And while it was a tough pill to swallow it was also freeing because for the first time, I had a defined starting point. I could make plans and goals. The first step is the hardest and the most critical.

4. Change is the only constant.

Knowing history provides clarity. When I look at when some of the most used retirement tools came to be, it gives greater empathy for my mom’s generation. Many of the tools we use today, she either didn’t have access to or didn’t have access until later. Where do you fall on the below timeline? Your parents? Grandparents?

• 1974: the Individual Retirement Account, IRA, was established under the Employee Retirement Income Security Act, ERISA.
• 1974: women were granted the right to open a bank account without their husband co-signing.
• 1978: the 401(k) was introduced as part of the Revenue Act but didn’t become popular until the 1980’s.
• 1988: women were legally allowed to start a business without a male relative co-signing.

As of this writing, it’s 2024. Fifty years ago, women were allowed to open their own bank account… 50 years ago. Thirty-six years ago, women were allowed to start their own business without a male relative co-signing… 36 years ago!!! 

When I think about these laws and my 20’ish year-old daughter… she will never know the struggle of the women before her to fight for these and so many other basic rights. 

5. Not All Friendships are Created Equal

The people who start on this journey may not be the same people at the end. Envy and jealousy are terrible things to feel towards a friend and erodes the very fabric of that friendship. 

As the season of some friendships ends, it makes room for new friendships. New adventures. New chapters.

6. Do Nothing

When I reached financial independence, the best advice I got was to do nothing for at least six months. The mind and body need time to adjust from work life to financial independence life. I didn’t understand it or believe that was necessary but it was… necessary.

My last day was on a Friday. Monday morning, I went to my home office and the only thing different was one less laptop. It was a struggle to do nothing, I felt so unproductive. Once the book was out, I took some time off and did part-time nothing. Hey, what can I say, I have been working since I was 15 years old, I can’t just turn that off. Haha.

Since that time, I have learned to slow down and take time for myself. I have learned that it is not selfish to put my own needs first. Sounds weird to say that but it’s true. And I am happier for it, it just took me a little longer to get there. What can I say, I am still a work in progress.

7. Set an Outrageous Goal

Arguably, I started my journey at one of the worst times in US history. I don’t think anyone would have blamed me for giving up. But none of that reality kept me from making an outrageous goal of reaching $1 MIL net worth.

I set that goal and reminded myself every day. And every day I would do one thing that would bring me one step closer. It didn’t always feel that way but eventually when opportunity presented itself, I was indeed ready.

The one constant in life is change. For that reason, there is always opportunity. You just have to put yourself in a position to seize it.

8. How many income streams is too much?

Think about this, 68% of those with a net worth of > $30 MIL are self-made according to Wealth-X. Fidelity also did a study and found that 88% of all millionaires are self-made, meaning no inheritance. How did they do it?

Turns out the average millionaire has an average of seven income streams. Seven. According to the IRS, the most popular ones are 1. paycheck (earned income), 2. stock dividends, 3. real estate, 4. royalty income, 5. interest from savings, 6. bonds, and even 7. profits from a business.

Building these income streams can take years, and that is where the slow and steady approach comes in. Have fun with it. How many income streams do you have?

9. Always Take the Free Money

This may seem obvious; I mean who doesn’t want free money? Truth is a lot of free money is left on the table.

According to a CNBC article, 2023 marked an 11.5% increase in 401(k) millionaires, calling them the “poster child for staying the course”. 

10. It’s never too late to start.

I started my FI journey at 40 years young with $257,000 of debt, unemployment, two kids to raise, no family support and little cash in the bank. Ten years later, through real estate and other investments, I reached my FI number. And if you are thinking I “got lucky” then here is a short list of examples of other late starters:

1. Martha Stewart published her first book at 41 and launched Martha Stewart Living seven years later.
2. Ray Kroc was 50 before he started his first McDonald’s restaurant. 
3. Kathryn Joosten got her big acting break at the age of 60 starring on the West Wing.
4. Colonel Harland Sanders opened his first KFC at the age of 62.
5. Julia Child made her first TV debut on The French Chef at 51.
6. Stan Lee started his climb to fame and fortune in comics with The Fantastic Four in his 40s. 

And so many other examples… today more than ever there are literally hundreds of ways to make income streams, but it requires grit, commitment and hard work. Start where you are.

11. There is always another opportunity around the corner.

I am sure we all have opportunities we passed on or money mistakes we regret, but there is always another opportunity around the corner.

I made plenty of financial mistakes, but I learned from them, let go of the past and focused on here and now. The only constant is change. It’s a matter of paying attention and seizing the opportunity.

12. Always do your homework.

I learned the hard way to not rely on anyone one person.

I do a lot of my own research and ask a lot of questions from several people I trust. I take my time before making any decisions. None of us has a crystal ball all we can do is make the best decision in that moment and have a plan for each risk.

13. The Curse of “One More Year”

In ten years, I went from $257,000 of debt to a net worth of $1MIL. In three years, I built a real estate portfolio, purchasing five SFH’s.  It was whirlwind.

I reached my goal, so, why did I not quit? I could give all kinds of reasons, but it boils down to, I wasn’t ready. It’s a slippery slope to stay too long and put your dreams on hold. It’s easy to succumb to fear.

For me, four years went by, just like that. But, in that time, I 1) paid off my primary home (emotional decision – not a financial one), 2) refinanced my rental property consolidated loan and learned that the values had gone up so much three homes were now owned free and clear, leaving my consolidated loan to cover two home and at a 15/7 4% fixed rate and 3) I increased the HELOC loan amount. I also padded my HYS account to last just a little bit longer.

All these decisions only put me in a stronger position.

You know its funny, when I tell people that I am retired, the response is that I am “lucky”. But as Oprah once said, “Luck is preparation meeting opportunity.” When I think about it like that, maybe I am lucky because it was a lot of preparation that met great opportunities. 

Yes, I did a lot of preparation, and it was a lot of hard work but none of it would have gotten any traction if it wasn’t for my local branch manager convincing the bank to take a chance on me to buy that first rental property. Without that, none of this could have been possible, at least not in the way it unfolded. Over the years, we lost touch, and I have no idea if he knows the impact he had on my life. 

Today I fill my time with my kids, friends, hiking, hosting dinner parties, traveling, volunteering, and coaching people on how they can grab their own slice of financial independence. I appreciate the freedom I have built and hope that I am teaching my own kids, through example, the kind of life I would want for them. Never stop learning, it’s a big world out there.

The post Journey to FIRE as a Late Starting Single Parent appeared first on ESI Money.

Need to eliminate debt fast?

Pending holiday stress and debt got you down? Try these 7 quick tips to crush debt and keep the season bright.

Debt sucks, so eliminate debt fast

Debt stress can sneak up on anyone—even if you’re not carrying any. Why? Because slipping into debt is as easy as saying, “Just one little splurge…”

One unplanned swipe on a credit card, and suddenly, you’re staring down a mountain you didn’t sign up for. Got hit with an unexpected medical bill? You might feel like you’re renting that MRI for the next five years.

And then, there’s the social pressure to celebrate everything.

Birthdays, anniversaries, retirements? Sure. But don’t forget the gender reveal, the baby shower, the actual baby, the baby’s first birthday…then it’s Halloween, Thanksgiving, Hanukkah, Christmas, New Year’s…where does it end?

Spoiler: it doesn’t—unless you make it.

So, if debt has crept in like a holiday guest who missed the “go home” memo, it’s time to kick it out. Try our 7 quick tips to eliminate debt FAST and keep your finances stress-free.

How to eliminate debt fast

Save for true emergencies—like medical issues or natural disasters—most of us rack up debt trying to fill a void. Trust us, we’ve been there! That itch to buy, buy, buy when we can’t afford it? It often hides something unsettled in our past, present, or future selves, whispering, “Hey, this will make you feel better!”

After years of soul-searching, we realized that our debt wasn’t just about overspending; it was about making up for years of hiding, bullying, and staying in the closet as young gay boys. When we finally came out, we celebrated our freedom like it was going out of style—and so did our credit cards!

Our newfound freedom (and credit limit) found a home in the dance clubs. Those neon lights and late nights made us feel like we belonged for the first time. But here’s the twist: we feared that our new tribe might reject us if we didn’t live up to the “fabulous” life. So, we spent and spent—until the debt caught up.

So, what’s your void? Only you can answer that, but if you don’t dig deep to understand what’s driving your spending, you’ll find yourself stuck in a debt spiral with no end. Like any addiction—whether it’s to alcohol, shopping, or the thrill of one-click purchases—debt can be a symptom of something more profound.

To break free from debt, get crystal clear on the root cause. What’s that emotional itch that keeps you reaching for your wallet?

Then, tackle debt head-on with honesty, strategy, and a commitment to a fabulous, debt-free life.

1. Learn your ‘why’

What’s your why? Why do you want to be free of debt?

Let’s face it: millions of people are fine paying $1,000 to $5,000 a year just to keep up with their debt. We, however, were spending a whopping $10,000 annually in interest alone on $51,000 of credit card debt! That’s ten grand every year—just gone, with nothing to show. No luxury trips, no retirement nest egg, nada. For us, it became clear: we’d rather kiss that debt goodbye and put that money toward things we truly care about, like vacations, a secure future, and the occasional well-deserved margarita (preferably on a beach).

Knowing your “why” is essential, mainly when sticking to a debt-free plan, and starts to feel as fun as watching paint dry. Creating a debt repayment plan and lowering your interest rates are significant steps, but paying down debt can still feel like a marathon—one where the finish line moves every time you get close. That’s where your “why” swoops in like your personal coach, nudging you forward when your old habits come calling.

After plenty of self-reflection (and probably a few too many late nights at the club), we realized our disco days were fun but weren’t feeding our souls. When we peeled back the layers, we wanted a secure retirement, more time exploring the world, and the chance to give back to your community. Living disconnected from these values was making life more complicated, not easier. Once we had that clarity, the motivation to become debt-free became stronger.

Everyone’s motivation is different, but when you have a strong “why,” the path forward is more apparent. When we’re tempted to slip back into our old spending habits, we ask ourselves: “Would we rather grab a margarita here in [insert current, not-so-exotic U.S. location] or be sipping one on the beach in Puerto Vallarta?” Spoiler alert: PV always wins.

Whatever fuels your fire, keep that vision front and center. Picture it clearly and use it as your secret weapon when things get tough. And remember, the right plan is key. Our motivation lasted over two and a half years because we clung to our “whys”—our dreams of travel, security, and community. That’s how we finally conquered $51,000 in credit card debt. If we can do it, you can too.

2. Stop accruing debt

Let’s be honest—no debt repayment plan on Earth will work if you keep piling on more debt. It’s like emptying a bathtub while the faucet’s still on full blast.

Imagine this: you’re knee-deep in a DIY plumbing project (because YouTube convinced you, “How hard can it be?”), and suddenly, bam—a pipe bursts. Water’s spraying everywhere; before you know it, it’s raining in your kitchen. Your first instinct? You go full Dutch-boy mode, finger in the hole, hoping you can hold back the flood. But spoiler alert: it doesn’t work, and now you’ve got one soggy finger and a full-blown disaster on your hands. You can grab all the buckets and towels you want, but they’re as helpful as a screen door on a submarine.

The only solution? Stop the water at the source. Turn off the pipes!

The same goes for debt. If you’re serious about getting out of it, you’ve got to stop adding more. Otherwise, you’ll be working double-time to make progress and wondering why you’re constantly treading water instead of moving forward. Close your financial “pipes”—put the credit cards on ice (maybe literally!) and say no to anything that’s not essential.

When you stop the inflow of new debt, every payment you make brings you closer to debt-free. Only then will you be able to confidently tackle the debt and make your dream of financial freedom a reality.

3. Do a spending analysis

Next up, it’s time to analyze your spending. Don’t worry; this isn’t like dissecting a frog in high school biology—although the results might be just as surprising (and a little slimy).

The truth is, most of us don’t know where our money goes each month. We might have a vague idea (“I think I spend around $50 on coffee?”), but those “little” expenses add up faster than a Kardashian’s Instagram likes. The good news? Usually, there are only one to three big-ticket outliers in your spending. These are the budget busters that, if reined in, can make your debt-free dreams a lot more realistic and achievable.

Think of it this way: if your spending habits are a giant pizza, these outliers are those extra toppings you didn’t need but ordered anyway—the truffle oil, the artisanal cheese, the fancy mushrooms. Delicious? Sure. Necessary? Not so much. Reining in just a few of these outliers can make a huge difference in your debt-elimination journey without forcing you to survive on instant noodles and tap water.

So, grab your bank statements, a highlighter, and maybe a glass of wine for moral support, and start tracking where those dollars are slipping away. The more you uncover, the faster you’ll realize which areas need tightening. Once you identify those sneaky culprits, you can start making smarter spending choices that get you closer to debt freedom without sacrificing all the little joys in life.

4. Save $500 – $1,000 for emergencies

Life happens, and let’s be honest—it rarely unfolds in a neat, straight line. It’s like a squiggly doodle with unexpected loop-de-loops and the occasional banana peel. Just when you think you’re on track, an unexpected expense pops up like the surprise twist in a soap opera. That’s why, before tackling debt, it’s essential to set aside a little “oops fund”—$500 to $1,000 just for emergencies.

Think of this fund as your financial bubble wrap, cushioning you from life’s little “gotchas.” When your car battery dies in the middle of nowhere, or your dog decides to swallow something questionable, this stash keeps you from reaching for the credit card. It’s the difference between a temporary setback and a full-on financial derailment.

Building this mini-emergency fund will give you a cozy budget cushion so you can progress on your debt without the constant two-steps-forward, three-steps-back dance. Once this cushion is in place, you’ll have the peace of mind to tackle debt with gusto, knowing that life’s hiccups won’t completely knock you off course.

So, stash away that emergency cash pronto. It’s your first line of defense against chaos, and trust us—it’s way more effective than crossing your fingers and hoping nothing goes wrong.

5. Use the Debt Lasso Method

The Debt Lasso Method is the not-so-secret sauce that helped us rope in $51,000 of credit card debt in less than three years. And we’re not alone—this method has guided others in paying off over $500,000 in the past two years. Why? Because it’s more effective than the Avalanche Method, easier on your wallet than the Snowball Method, and way more satisfying than watching your balance barely budge month after month.

If you’re ready to take control, grab your lasso (or calculator) and follow these steps:

1. Commit to the No-Debt Pact

Promise yourself: no more debt. None. Nada. Zilch. Then, set a specific dollar amount you’ll add to your net minimum payments every month. Every. Single. Month. No skipping, no cheating.

2. Trim the Low-Hanging Fruit

Start by tackling any cards you can pay off within a month or two using your committed payment amount. These quick wins will boost your morale, slim down your credit statements, and give you a taste of what’s to come.

3. Lasso Your Debt into Fewer, Lower-Interest Locations

The goal? Corral your debt into as few places as possible with the lowest interest rates. Think of it as consolidating your debt “herd.” Use 0% interest balance transfer credit cards or a low-interest personal loan to reduce interest costs and keep things manageable.

4. Automate Your Payments Like a Well-Oiled Machine

Set up automated payments for all your bills, including that committed minimum payment. Let automation be your best friend here—because the fewer steps between you and paying off debt, the better.

5. Monitor, Adjust, and Keep Up the Momentum

Keep an eye on your finances to ensure your automated payments work smoothly. When one card bites the dust, redirect those payments to your next target like a true debt-wrangling pro. Every payoff milestone deserves a little celebration, but don’t get too cozy—you’re not done yet!

The Debt Lasso Method isn’t just a strategy; it’s a way to regain control over your financial life and ditch debt faster, cheaper, and more effectively than any other method. Saddle up and lasso those balances—you’ll be debt-free before you know it.

6. Put all extra money toward debt

Here’s the deal: every time you free up a dollar—whether trimming expenses, reigning in that takeout habit, scoring a lower interest rate, or cutting back on the “I-deserve-this” splurges—that dollar has a mission. And that mission? Laser-focus it straight onto your credit card balances. Think of it as enlisting every penny into your “Operation Debt Freedom” fund.

And don’t stop there! Any windfall, however big or small, gets drafted into the cause. Tax refund? Bingo—direct deposit to debt. Bonus from work? Straight to your balances. Pay raise? Awesome—your credit card issuer will love that extra payment. Promotions, holiday checks, birthday money from Aunt Martha, who still thinks you’re 12—all of it goes toward wiping out that debt until you’re officially in the clear.

Yes, we know. Spending that tax refund on vacation sounds much more fun than handing it over to your credit card company. But remember: with each extra dollar you throw at your debt, you’re buying yourself a life with zero credit card chains, no minimum payments, and much more peace of mind. And imagine how sweet it’ll feel when every dollar you earn is finally yours again. Now that’s worth every extra cent you can muster.

7. Send it before you spend it

To get different results, we’ve got to break out of our old, debt-friendly habits. And trust us—as former “debt enthusiasts,” we know how tricky this can be. We’ve been there, done that, and then done it again. Case in point: David loved using his credit card even when we had cash because he liked the feeling of having money. The thrill of seeing that little pile of dollars in his wallet? Hard to resist! But here’s the catch: it kept us spinning our wheels in debt.

So, let’s talk about a little mantra we call “send it before you spend it.” What does that mean? Simple. As soon as your paycheck hits your account, send out those payments! Pay every bill you can immediately—even before the due dates roll around. Yes, you read that right. Take control by paying up front. For extra convenience, you can even call your service providers (cable, phone, and so on) and ask them to adjust your payment dates to align with your pay cycle. This way, you’re consistently covering your bases as soon as you have cash.

If you’ve consolidated your debt, this becomes even smoother. With one monthly payment, managing your budget and avoiding the “oops, forgot that bill” moment is more accessible. By sending it before you spend it, you’re setting up a system that makes paying your bills feel less like a chore and more like second nature.

And the perks? On-time payments are like magic for your credit score. Plus, it means you can kiss those nagging “you missed a payment” calls goodbye. Credit card companies and bill collectors won’t be calling you; instead, you’ll be able to focus on the things that matter—like crushing your debt for good.

So there you have it—our seven tried-and-true tips to wipe out debt fast. No gimmicks, just real steps to help you build a life where your money finally works for you.

Get more ways to eliminate debt ASAP:

• 10 Ways to Lower Student Loan Payments
• How to Pay Off Credit Card Debt in 2024
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