Life can throw unexpected financial challenges our way at any time. It can be overwhelming and stressful, whether it’s a sudden job loss, unexpected medical bills, or other unexpected expenses. But there are ways to navigate these challenges and come out stronger on the other side. This article will provide some tips and strategies for coping with financial challenges and emerging from them in one piece.

Coping with Job Loss:

Job loss is a difficult and often unexpected challenge many people face at some point. Coping with job loss can be a daunting task, especially if you were not prepared for it financially. However, with the right mindset and strategies, navigating through this challenging time is possible and coming out stronger on the other side.

The first step in coping with job loss is acknowledging your emotions and allowing yourself to feel them. Losing a job can be a traumatic experience, and it’s natural to feel a range of emotions, such as anger, frustration, and even depression. Give yourself time to process your emotions and seek support from friends, family, or a professional therapist if needed.

The next step is to evaluate your finances and create a budget. Take a hard look at your current financial situation and determine what expenses are essential and what expenses can be cut back or eliminated. This may require making some difficult choices, such as downsizing your living arrangements, selling unnecessary possessions, or finding ways to reduce your monthly bills. Creating and sticking to a budget will help you manage your finances and prevent you from falling into during this difficult time debt.

It’s also important to explore all available options for financial assistance. This may include applying for unemployment benefits, seeking assistance from charitable organizations or non-profits, or even borrowing money from friends or family members. Don’t be afraid to ask for help, as there are resources available to assist you during this challenging time.

In addition to addressing your immediate financial needs, it’s also important to use your time off to reevaluate your career goals and explore new opportunities. Consider taking courses, attending workshops to enhance your skills, or even pursuing a different career path. Take advantage of networking opportunities and job fairs to connect with potential employers and explore job opportunities that align with your skills and interests.

Finally, it’s important to take care of your mental and physical health during this challenging time. Job loss can be a stressful and emotionally taxing experience, so it’s important to prioritize self-care. This may include exercising regularly, practicing relaxation techniques such as meditation or yoga, and seeking support from friends and family.

Dealing with Medical Bills:

Dealing with unexpected medical expenses can be a daunting and stressful experience, but there are steps you can take to cope with the financial challenges. Here are some tips for managing medical bills and expenses:

1. Review Your Insurance Coverage: Start by understanding your insurance coverage and what medical expenses are covered. Read the fine print and make sure you understand your deductibles, co-pays, and out-of-pocket maximums. Knowing what is covered and what you are responsible for paying can help you plan and budget for your medical expenses.
2. Negotiate Medical Bills: If you receive a medical bill that you cannot afford, do not hesitate to negotiate with the provider or hospital. Many providers are willing to work with patients on payment plans or offer discounts for those who are uninsured or underinsured. You can also ask for an itemized bill to ensure you are not being charged for unnecessary procedures or services.
3. Utilize Payment Plans: If you cannot pay your medical bills in full, consider setting up a payment plan with your healthcare provider. Most providers offer payment plans with no interest or fees, which can help make your bills more manageable.
4. Look into Assistance Programs: Various assistance programs are available to help with medical expenses, depending on your income level and specific medical needs. Some hospitals and providers offer financial assistance programs, while government programs such as Medicaid or Medicare can also help with medical bills.
5. Consider a Health Savings Account (HSA): If you have a high-deductible health plan, you may be eligible for a Health Savings Account (HSA). This tax-advantaged savings account can be used to pay for medical expenses. Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
6. Seek Legal Advice: If you are facing significant medical bills and cannot afford to pay them, consider seeking legal advice. A bankruptcy attorney or financial advisor can help you understand your options and provide guidance on how to manage your debts.

Remember, dealing with medical expenses can be overwhelming, but there are resources available to help you manage your bills and cope with financial challenges. It’s important to stay informed, ask questions, and seek help when needed.

Coping with Unexpected Expenses

Dealing with unexpected expenses can be a stressful and challenging situation for anyone. The first step to cope with unexpected expenses is to prioritize them based on their importance. Determine which expenses are absolutely necessary and which can be postponed or eliminated. This will help you create a plan to manage the unexpected expenses and avoid additional financial stress.

One way to cope with unexpected expenses is to create an emergency fund. An emergency fund is a savings account that is set aside specifically for unexpected expenses. Ideally, your emergency fund should contain enough money to cover at least three to six months of living expenses. If you don’t already have an emergency fund, start by setting a goal to save a certain amount of money each month until you reach your desired amount.

Another way to cope with unexpected expenses is to consider alternative sources of income. This could include picking up a side job or gig, selling unused items, or renting out a spare room in your home. Be creative and think outside the box when it comes to generating extra income to help cover unexpected expenses.

If you’re struggling to cope with unexpected expenses, it’s important to reach out for help. Don’t be afraid to seek advice and support from family, friends, or a financial advisor. They may be able to offer helpful tips and suggestions for managing your expenses and getting back on track.

It’s also important to remember that unexpected expenses are a normal part of life. While they may be difficult to manage at the time, they can also provide an opportunity to learn and grow. By staying positive and proactive, you can navigate financial challenges and come out stronger on the other side.

In conclusion, navigating unexpected financial hardships can be difficult but not impossible. By taking a proactive approach and developing a plan, you can minimize the impact of unexpected expenses and emerge with your financial health intact. Whether it’s coping with job loss, medical bills, or unexpected expenses, remember to stay positive! Taking advantage of resources available to you and exploring creative solutions to overcome the challenge will payoff. With the right mindset and a bit of perseverance, you can overcome any financial challenge that comes your way. As always, you got this!

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Retirement planning can feel daunting for many of us. We all have this idea of sipping Pina Coladas on the beach somewhere as we enjoy life without having to work. Unfortunately, that reality, especially in America, is not going to be the case for a vast majority of Americans. Americans are behind on retirement savings, straddled in debt, and lacking options. This doesn’t have to be you. Many different retirement vehicles can prepare you for a better tomorrow while giving you tax ride-offs today, whether that be through a 401k, Traditional or Roth IRA, pension plan, or a few others. These are great options for retirement but don’t give you complete control over how and what you are doing with your retirement money. Now, this isn’t a big deal for some of you, but if you want more control over how you invest, you do have another option available to you. Today we will talk about this little-known secret giving you more control over how you allocate your retirement fund, and it’s called a self-directed IRA.

Why Haven’t I Heard Of A Self Directed IRA Before?

Self-directed investing in an IRA has been allowed since the government first established IRAs in 1974. Before we go any further, we need to go over a vital component of any IRA which is the function of a custodian. Custodians are required in any IRA to maintain tax-deferred or tax-free status and essentially make sure you follow the government’s regulations.

The main reason it hasn’t received as much attention as its counterparts is most custodians who offer retirement accounts focus on traditional investment options like stocks, bonds, and mutual funds. The large firms that act as custodians usually don’t provide investment options in alternative because they are limited by the types of investments they offer at that particular firm. These firms make more money by providing investments in traditional assets that are easier to manage than non-traditional assets. Because of this fact, if you ask some of the larger custodians if you can invest in non-traditional assets, the answer you will most often get will be “no” or “I’ve never heard of that before.”

Why Self Directed IRA?

You might be thinking to yourself, what all does a self-directed IRA allow me to invest in? The answer is quite a bit longer than you might think. Self-directed IRAs give you greater access to how, what, and why you invest your money to meet your retirement goals. The IRS provides a list of prohibited investments in IRS publication 590. and All other investment types are allowed as long as the IRS rules are followed.

Allowable IRA Investments:

Non-Permitted Investments In An IRA:

Self-directed accounts do have a few additional rules to follow just by nature of having more control over your money that you need to be aware of.

The Arm’s Length Rule:

The IRS rule states that you and your investments must be at arm’s length. Essentially, the IRS wants to make sure that you can’t directly benefit from assets owned by the IRA today.

This might seem strange but remember the purpose of an IRA is not intended to benefit you now but rather your future self. You are planning for retirement, and that benefit will be received in the future. Any IRA transactions that benefit you personally are strictly prohibited. The golden rule is if an investment you have gives you a benefit today, it is not allowed. However, if it is a deferred benefit, that is permitted. Here are some common examples below:

• Personally Using IRA Property: Using real estate purchased through your IRA as a primary residence, vacation home, office space, or any space that could benefit you personally today is strictly prohibited.
  • You can purchase rental properties, but you can’t live or rent them to yourself or a disqualified person. (We will go over disqualified persons in the next section.)

• Receiving Personal Benefits from Your IRA: This is relatively straightforward, but you are not allowed to lend yourself or any disqualified person money from your IRA. You are also not allowed to pay yourself, a company you own, or another disqualified person to do work or manage any investment you own.
• Revenue and Expenses: The basic idea here is all income and expenses are received by and paid from the IRA. If your IRA owns a rental property, rents should be put directly into your IRA without touching your personal account, and all expenses should be paid directly from the IRA.

Disqualified Persons:

The IRS mentions disqualified persons frequently, and it is essential to know who those people are. The IRS states that a self-directed IRA may not buy an investment from, sell it to, or be involved with disqualified persons. Disqualified persons are your ascendants (grandparents and parents) and descendants (children and grandchildren).

Siblings, nephews, cousins, best friends, parent in-laws, aunts, and uncles are NOT disqualified persons and are perfectly fine to invest in and with.

In Summary:

Self-directed IRAs provide more flexibility to invest in different types of asset classes that have been traditionally not available to the everyday consumer. This option is not needed for everyone but can be very helpful depending on your term goals. Before opening an account, talk with a financial coach or advisor and see if this option makes sense for your retirement goals.

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It is safe to say that the pandemic completely changed life for a lot of us. The bedroom became the new office, work-life balance became feasible albeit difficult, thousands of people quit their jobs, and home prices skyrocketed all across the country. With all the turmoil and change across the country, unique opportunities have come about where employers will pay you to move.

An increasing number of cities are beginning to offer money to bring remote talent to them, especially after the pandemic has forced everyone to rethink and evaluate what remote work looks like for our society and companies. If your job allows you to work from home, it might not be a bad idea to add a little extra cash into your pocket for doing so.

These 10 locations will pay you to move with your families to live and work! If you are looking for something new or maybe just a way to increase your financial margin, you might just be in luck.

1) Arkansas

The Northwest Arkansas Council is shelling $10,000 to recruit remote workers to live and work there. It is has been voted as one of the best places to live in America thanks to its meager cost of living, outdoor activities, great culture and cuisines, and per capita income that is 14% higher than the national average. The Northwest Arkansas region offers a unique opportunity for those who are selected and looking to escape the busy cities and suburbs.

2) Oklahoma

Tulsa, Oklahoma has become highly aggressive in attracting remote workers to the area. In 2018, Tulsa began to start offering individuals $10,000 to move and live there with the Tulsa Remote program. Tulsahas already begund to expand their program with a new incentive to help make ownership a reality with $10,000 toward a downpayment. With the average home price of just $157,000 in Tulsa, that $10,000 covers almost 30% of your down payment!

3) West Virginia

Thanks to West Virginia’s Ascend program, they are offering $12,000 plus a year free of outdoor recreation for moving to the state, no strings attached! If you enjoy the great outdoors and want to experience more of what nature has to offer, this could be for you. The application is looking for remote workers who can bring their business/work to West Virginia.

4) Alabama

The Shoals, Alabama will pay you $10,000 in the first year for moving to this beautiful area. The eligibility requirements are:

• Minimum yearly income of $52,000
• Move within six months
• Full-time remote or self-employment outside the area
• 18 years or older

If this is you, you might want to consider this opportunity seriously. Experience a wide variety of culinary experiences, outdoor activities like hiking, fishing, and golfing, shopping, music, and nightlife.

5) Spain

Ponga, Spain is a beautiful village located in Spain’s Asturias region, which has stunning natural features that will pay you to move. They do however have one major problem, it lacks enough people to sustain the population with only 800 inhabits to its name! Because of this, there is an opportunity for young couples to move there and get paid 3,000 euros, with an extra 3,000 euros awarded for every child they have. One major catch is that you must live in the area for 5 years. If you are drawn to adventure and a very low cost of living, this might be for you!

6) Switzerland

Albinen, The beautiful mountain town in Switzerland is so desperate for new life in their village they have voted to pay each new adult who moves their $25,000 plus an additional $10,000 for each child the couple has. So for a family of four this alpine village pays $70,000 to make Switzerland your new home. With this type of many being paid out, there are a few requirements:

• You must be younger than 45
• Agree to live in the village for 10 years
• Have to build or live in a house that cost at least $200,000

This small town hopes to entice 10 families over the next few years, and competition is fierce, so hurry and apply if you are interested in this unique opportunity.

7) Kansas

Topeka, Kansas, pays up to $15,000 for you to move through the Choose Topeka program. The program pays up to $10,000 for renting in the first; year and up to $15,000 for a home purchase. Plus, Jimmy John’s is offering an extra $1,000 if you relocate to one of its three delivery zones. Yes, that is not a joke. You get paid to move near a Jimmy John’s. Plus with the average family home cost of $125,000, that down payment can go a long way!

Choose Topeka Remote Requirements are:

• Your employer must be located outside of Shawnee County
• Minimum 3 month waiting period
• One relocation incentive per household
• Eligible to work in the U.S.

Choose Topeka On-Site Requirements:

• Confirm with your employer if they participate in the Choose Topeka relocation incentive
• Move for a full time position to Topeka
• Purchase or rent a home within a year of the move

8) Vermont

Vermont is the next state on our list that will pay you to move. They offer specific grants, such as the New Relocating Worker Grant and the New Remote Worker Grant. Both of these grants offer up to $7,500 in relocation expenses to encourage workers to move to Vermont and either work from home or work for Vermont employers.

Requirements for the grants for 2022 are:

• Relocated to Vermont, became a full-time resident; and
• Is working full time remotely for an out-of-state employer from a home office or coworking space located within VT; and
• The applicant’s wage equals or exceeds the Vermont livable wage rate as updated 1/15/21 in accordance with 2 V.S.A. §526. Currently this is $13.39 per/hour; and
• Incurred qualified relocation expenses; and
• Is subject to Vermont income tax

9) Alaska

Alaska will pay you to move thanks to the Alaska permanent fund, which is a 65 billion dollar fund managed by a state-owned corporation fueled by oil and gas revenues. All resident are eligible to apply typically earn $2,000 a year from this fund. Typical residents use this money on things like medical emergencies, travel, student loan payments, and leisure. They do not offer relocation centers but do you pay an ongoing dividend thanks to this fund.

10) Minnesota

Harmony, Minnesota will pay you to move to their beautiful remote town. With a population of 997 and beautiful sites and the added benefit of $12,000 in cash rebates toward the purchase of a new home makes this choice pretty attractive. Harmony is home to Niagara Cave, one of the top ten caves in the United States. With a median home value of $161,378, your 12,000 rebate will make a healthy dent in your down payment.

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We all would be ok with our finances being multiplied; at least, I know I would. We all want more of something. It could be more savings, more freedom, more time with our kids, whatever it is, we all crave more of some things. This idea of more can consume us quickly if we aren’t continuously aware of what we want more of, but it can also drive us towards the things we love if we root it in our identity. My wife and I have always said that we don’t simply want a good marriage; we want a great marriage. We don’t want to survive, but we want to thrive. This applies to all areas of our lives, but especially our finances. To financially thrive, we need to understand the critical principle of stewardship and the truth that every penny is an opportunity to multiply.

Stewardship — The First Step to Financially Thrive.

To thrive financially and live a life of multiplication, we need to start with unpacking stewardship. In the world we live in, the slow and steady approach is devalued and replaced with the quick and risky. Instead of building a life built on principles, we put all our money on red at the casino and then are upset when our financial situation doesn’t change. What we are unknowing or perhaps sometimes knowingly doing is practicing poor stewardship.

Simply put, financial stewardship is being faithful and multiplying anything you have been entrusted with.

Like everything in this blog, we always focus on our root cause, primarily our identity. We don’t simply want to practice financial stewardship occasionally, but we want to be financial stewards. When we shift from practicing stewardship to becoming a steward, we see a radical change in our outcomes.

Characteristics Of A Financial Steward:

1. Purpose Driven — passionate and discicplined in the mission of being faithful and multiplying the things they have been entrusted with.
2. Compassionate — They understand that money is a tool that has the ability to add value to others not just theirself.
3. Competent — educated in financial topics, have the ability to take in multiple perspectives, and learns from every situation.
4. Courageous — bold and radical in their mission to be financial stewards. Embrace the idea that to get the results that most people don’t get, you have to do the things most people won’t do.
5. Forward Thinking — they understand that a decision today impacts tomorrow. They sacrifice what they want now for what they want most.

Let’s Get Practical

Anytime we receive or give money or wealth of any kind, we are entrusted or entrusting someone with the impact of that money. My wife and I have had to purchase a wide array of baby products, the latest being a sleepsack, or as I affectionately call it, the baby straight jacket. This transaction is not unlike many we make throughout the month but let’s analyze this through a financial steward lens.

Situation: Purchasing A Sleepsack

• The purchase of this sleep sack provides the company to be able to make a quality product and to improve the product offering in the futre. Our money is directly adding value to the companies we spend our money on.
• This provides our daughter a great way to sleep more comfortably and hopefully longer which will improve the life of our daughter and ours as well.
• How much are other brands? is there an alternative that could be more cost effective and better for all parties involved? How long will she be in the sleepsack? Could I find something used or look for a deal?
• Can we afford the sleepsack? Is it a luxury or essential?

I know this can feel like analysis paralysis for some of you, which is something we don’t want, but intentionally thinking about how we do things is very important. We are not looking for perfection; we are simply looking for progress.

I’m sure most of you have heard the phrase anything worth doing is worth doing well. I would argue anything worth doing is worth doing badly. This is not an excuse for lack of effort, but success really is a horrible teacher. Anyone who was once an expert failed when they first started. Most of us have made poor financial choices, and often we are afraid to make a change or put ourselves in a position to make a mistake. If you can’t do it well, do it poorly!

Fail early, fail often, just learn from it! Your ability to thrive financially depends on it!

Principles of Multiplication:

The more we become financial stewards, the more our finances will multiply. It really is that simple. When we are faithful with a little, we will be given more. Faithfulness requires responsibility, consistency, and strength. That is a perfect recipe for building your finances and being able to thrive financially.

I’m sure there are a number of cliches and overused lines on this, but to quote the great Ben Parker, “With great power, comes great responsibility.” Unfortunately, everything in our life that is great has the potential to hurt us. A great relationship can be the source of our greatest joy and also our great suffering. It is no different with money and, more specifically, the power of multiplication.

We need to understand two main money ideas to live a life of multiplication.

1) Multiplication happens with there is something to multiply. You can’t multiply with zero.

This is a straightforward principle, but if you don’t have financial margin, you can’t multiply your finances. Now I know that might seem hopeless to many of you out there, but in reality, we are in control of our finances, especially our margin.

Whether we realize it or not, we organize our life about what we most at any given time, and without reflection and accountability, the things we want are instant gratification. We want the house, the new car, eating out, clothes, more than financial peace and margin. It’s because instant gratification feels good, and sacrifice is hard.

The problem with instant gratification is that it creates a destructive habit cycle where the more stressed we are, the more we spend, making us more stressed, and so we spend, and on and on it goes.

This destructive habit cycle constantly erases any work we have accomplished the previous day. The beauty of life is that we have today. We have this moment to change for the better. Shame lives in the past, fear and anxiety live in the future, and peace and freedom are in the present. Which one do you want to multiply in your life?

2) The more there is to multiply, the greater the multiplication. (Either good or bad)

Nothing is stagnant in nature because life is constantly in a cycle of growth and decay. We are no exception. We are either improving daily or decaying daily; there is no such thing as staying the same. We can use this to our advantage when we are intentional or to our detriment when we are unaware.

The adage that the rich get richer and the poor get poorer is absolutely true due to the power of multiplication. Let’s make it a little more real; the more debt we are in, the easier it is to get into more debt. It compounds and snowballs feeling unbearable. Contrastly, the more financial margin you can create, the more margin you will be able to experience.

It is discouraging to put all of your efforts into stopping the snowball from getting more prominent. It is exhausting but so worth it.

As always, you got this!

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