Continuing to Fund Your Retirement With Unexpected Bills/Expenses

I know the purpose of your Emergency Fund is for those unexpected bills. But what if you don't have enough money in it? Do you stop funding your retirement to pay those unexpected expenses?

I chose not to stop funding my Retirement after having surgery($1,000+) two months ago and buying a new AC unit recently ($3,400). Instead I called the hospital to work out a payment plan for twelve months that is more manageable. With the AC unit, I'm splitting the cost with my sister who resides with me. We will repay my credit card over the next 12 months. I had an offer on my current credit card for 0% interest.

I would recommend the following when you have unexpected bills:

1. Continue to pay into your Emergency Fund
2. Continue to pay into your Retirement Fund
3. Check to see if you have an online offer with your current credit card (0% purchases, 0% transfers with low transaction fees (3% or less)). Otherwise, negotiate with your credit card company to see if they can reduce your interest rate, even if it is by 2%. 
4. Negotiate your other bills as well (phone, car insurance, TV, hospital, etc).
5. Put a little money a side for something fun. I'm taking my mom on a 7 day cruise in October 2013 and planning a trip to Madrid, Spain with my sister and friends in December 2013.

I would love to read your comments as to how you came to a decision to continue to fund your retirement and/or pay off those unexpected bills ASAP.

Rhonda W.

52 Week Money Challenge

I came across on Facebook many of my family and friends talking about saving for the new year as one of their goals.

One savings goal plan intrigue me. How does it work? Every week save that particular week in dollars.





                           Week 1 Save $1
                           Week 2 Save $2
                                     .
                                     .
                                     .
                          Week 52 Save $52
                                         At the end of the year you will have saved: $1,378

As we are finishing up Week 10, you will have saved $55. If you are following the end year route in which you begin at Week 52, as week 10 ends you will have saved $475.

Who says saving can't be easy. Will you try this 52 Week Money Challenge?

Rhonda W.

What Does Thelma From "Good Times" Says About Your Finances!

Photo Credit: www.thelmaofgoodtimes.com

After I watched the TV One special on Bern Nadette Stanis (Thelma from the TV show Good Times), I told my sister I wanted Mrs. Stanis finance book for Christmas. I love to travel. I needed to keep my finances in order if I want to continue to travel and at the same time save for Retirement.

Finances: The Good, The Bad...and The Ugly is written by Bern Nadette Stanis with Trent T. Daniel. For those who grew up in the 70's and early 80's you felt like you knew Thelma from watching her on Good Times. She was like your sister or girlfriend. And who wouldn't like to hear the advice as to how to increase your credit score, stop overspending by you or your spouse/significant other, and having money in the bank by saving for your retirement. I think I've said that enough on this blog about the need to save for retirement. If you don't listen to me, listen to Thelma from Good Times.

I know I read it before Christmas, but I'm at the beach in South Carolina. The book was a quick read while enjoying the beautiful view and listening to the sound of the ocean.

As a bonus, this book provides actual letter examples as to how to dispute incorrect information on your credit report and dealing with collection agencies constant phone calls.

You can follow Thelma at her website http://thelmaofgoodtimes.com/ and Facebook.

My First App

The Valuteachers Core conference for SC, NC, and VA reps was great. The Holiday Inn Express hotel in Lexington, NC overlooking the Childress Vineyards was a plus.

Majority of the reps were new like me and have yet to fill out their first app or application. Since that weekend, I almost had my first app done, but the young lady was busy at work and will complete it in the New Year. She is in her early to mid-20's, she has toddler son, and will be contributing to a ROTH IRA account.  She will begin with the minimum of $100 per month.

I'm excited for her because she is on her way to saving for her retirement. Starting at a young age will almost guarantee her 6 figures in retirement if she increase her monthly contribution $25 each additional years.

I know I have to continue to talk to young adults about saving for retirement. Believe me after a while you won't be missing it.

2013 is KNOCKING on the door, what are you waiting for?

Photo Credit:  http://theblakeproject.typepad.com

Comment below as to what are your fears of starting your first step towards saving for Retirement.

ValuTeachers Core Conference

I will be attending the ValuTeachers Core Conference for the states of SC, NC, and VA tomorrow (December 7) and Saturday (December 8). I'm looking forward to attending it in Lexington, NC. It is my first ValuTeachers conference.

How Do You Envision Your Retirement?

The Duomo in Firenze (Florence, Italy)

I have mentioned in a few past posts about how do you envision your retirement? It may be spending time with your kids, grandkids, volunteering at your church or community, traveling the world, or even working a few part-time hours at your favorite store.

Assisi, Italy

I recently came back from a trip to Italy where my twin sister and I were the youngest in the tour group at the age of 37. Only three other people were still working jobs. The remaining 35 people were retired and were already planning their next trip. Most were either couples or girlfriends on their annual vacation together.

I asked a few of the retirees about life in retirement.

• One couple did not have kids so they traveled as often as they could.
• One couple have 2 Adult kids. Both kids are doing very well financially. They are one of the lucky ones who don't have to support their 35+ age old child(ren). They would love to continue to travel during retirement. Key point: Teach your kids about money management in case in the future they have a job loss, they don't have to come to you.
• There were several retired educators in our group. One retired educator and her husband saved as much of their income as they could so they could afford to travel. They have previously traveled to South Africa three times, including the mother backpacking alongside her daughter,  with a tent for three weeks. Key point: Many educators do not make much in Salary, so save as much as you can for retirement. If you are currently an educator and love to travel, take advantage of a program, such as EF Tours to take middle and HS students abroad.
• Several of the couples said they simply love the Educational Value of travel.
• One half of a couple decided to start a second career, but still considers himself retired.
• Finally, there was a couple who said there wasn't anything to do in their town so they started their own travel business.

It is not too late to save for your retirement. Contact a ValuTeachers rep to learn more about how to save by investing in a 403b, 401K, Roth IRA, and/or Traditional IRAs.What is stopping you from realizing your Retirement Goal? Comment below what you want to do for retirement.

All photos are my personal photos from my recent trip to Rome and Florence, Italy.

Delicious food.

Great Wine.

Shopping in San Gimignano (Outside Florence, Italy)

My Twin sister Sharee, and Myself.

403b, 401k, IRA Contribution Rises for 2013

Photo: listgiant.com

In 2013, the contribution limit for 403b, 401k, and 457s will increase from $17,000 to $17,500. Traditional and Roth IRAs will increase from $5,000 to $5,500.


I know many of you are thinking, "Contribution? I'm still trying to start an Emergency fund and pay down my debts. Dave Ramsey says to do the 7 Baby steps first before you start investing."

Dave Ramsey photo: Daveramsey.com

1. $1,000 In An Emergency Fund
2. Pay Off All Debt With The Debt Snowball
3. 3 To 6 Months Expenses In Savings
4. Invest 15% Of Income Into Roth IRAs and Pre-Tax Retirement Plans
5. College Funding
6. Pay Off Your Home Early
7. Build Wealth And Give!

Personally, I'm still working on the first three steps, but have been doing Steps: 4, 6, and 7.

Step 4:  Every month I've been investing 7% into my State Retirement plan, $25 to my Roth, $100 to my 403b (ValuTeachers/LSW), and $100 to my Roth 403b (ValuTeachers/LSW).

Step 6: In 2003, my sister and I bought a house together and paid an extra $100 to $200 per month. It took 7 years off at that time our 30 year mortgage. In Summer 2011, we refinanced to be able to pay off the mortgage in 15 years. Our interest rate went from 5.75% to 3.75% and only went up 30 cents from our previous monthly payments. Any extra payment will reduce the amount of interest you pay. 

Plug in your own numbers at the Bank Rate Website by clicking on the 30 year mortgage calculator link. In the example, purchasing a $165,000 home at 7% you will pay $1,097.75 per month; at 4% with a higher Credit Score you will pay $787.74 per month. Thus, with a high credit score, you reduce the interest rate you are paying.

If you look at the amortization table, click on Show/Recalculation Amortization Table at the bottom of the calculation page, you will see that in November 2012 of the $787.74 you pay, only $237.74 goes toward your principal. It is not until September 2018 that you will pay $300 per month toward your principal. Try your best to pay your bills on time so you too will get a high Credit score and low interest rate for your home and save thousands on interest.

Step 7: I give to my church, charities, and invest money into my business. It is at this point that Dave Ramsey recommends you are ready to start contributing to Investments (mutual funds).

What are your thoughts? Should I follow these steps  and stop my contribution until I do the first three steps or continue to contribute to my retirement? Please comment below.