Blog » Compass Financial Wellness, LLC

Why this score is important (and I’m not talking about your credit score)

by Christine Spiak
May 10, 2022May 10, 2022

We are told over and over again how important it is to have a “good” credit score. But what is a credit score? As defined, it is a number that tells lenders your ability to repay a loan. In other words, your credit score measures your debts, how well you pay back your debts, how much debt you have and how long you’ve had debt. Your credit score does not… Read More »Why this score is important (and I’m not talking about your credit score)

Back to basics

by Christine Spiak
April 26, 2022May 10, 2022

Living the life of your dreams starts with a solid financial plan! In 2017 my husband and I followed the Dave Ramsey Baby Steps and paid off over $23,000 in debt and built up a 6 month fully funded emergency fund. We have remained debt free, are aggressively paying off our mortgage, saving for retirement and our daughters college education all while giving more than we ever have before. I… Read More »Back to basics

Spring has sprung…Tips for cleaning up your finances

by Christine Spiak
April 5, 2022March 2, 2023

If you have ever spring cleaned you know that a sparkling clean and clutter free home is a great feeling; which is why the end result makes the entire process worth your time and energy. As with your home, if you spring clean your finances you will not only feel a sense of accomplishment but you will set yourself up for financial success. Follow these tips to clean the cobwebs… Read More »Spring has sprung…Tips for cleaning up your finances

FAQ

Frequently Asked Questions

Why spend money on a Financial Coach if I am trying to save money?

Financial Coaching is an investment in you. It is an investment in your future and your family. You’ll receive a customized plan to get out of debt and live within your means. As your coach I will help you stay on track by being your accountability partner.

I’m married, but my spouse isn’t interested in our finances and doesn’t think we need a Financial Coach. Can I schedule an appointment on my own?

Both spouses must commit to and attend all coaching sessions. Explain to your spouse why getting your finances in order is important to you. Share the reasons why you think your family could benefit from hiring a Financial Coach. I will work with you both so you are both on the same page and develop a plan together that suits your family’s needs.

I’m retired and have never had good financial habits; is it too late for me to start?

No! It is never too late to start. The saying “you can’t teach an old dog new tricks” isn’t true. If you are committed to making a change in your life, and you seek out the tools and guidance to do so, then you will be successful!

Isn’t having debt “normal”? Credit cards, vehicle loans, student loans, mortgages, etc. are just part of our society. Why should I be “different” and live debt free?

Having debt and living above your means may seem normal, but is it how you want to live your life? Living a debt free lifestyle puts you in control. Lenders and credit card companies are no longer telling you how and when to spend your money. Saving for emergencies, retirement and your children’s college savings puts you in control, and gives you the stability your family needs to live with financial freedom.

If a loan is interest free, what is the harm in opting to go with the financing?

Companies are in business to make money. So how are they making money on 0% loans? There are two ways: 1) It is built into the cost of the item…meaning the item costs more to buy at a 0% interest rate. 2) Most people do not pay off the loan within the terms of the interest free financing. This means the consumer is required to pay interest on the loan and in most cases the interest goes back to the inception of the loan. So the 0% interest loan that you thought was such a good deal, can turn out to be a costly mistake.

I just graduated from college with student loans. I have years to pay them off; why should I pay them off early?

Compound interest. If you are aggressive in paying off your loans, you’ll have more disposable income to spend how you want. Compound interest also makes your loans continue to grow even as you are paying them off. Consider this…If you invest $200 a month from age 21 – 30, which is equal to a total investment of $21,600, at age 67, you could have $2,547,150. If you wait until age 30 to start investing that same $200 a month, however, you continue to invest it each month until age 67, you may only have $1,483,033. Not only do you have less money in retirement, your total investment was higher at $91,200.