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- Money: A Tool, Not a Master
Hey there, G.R.O.W. family!
Welcome to 2024 – a year full of new beginnings and exciting journeys. Just like you, I’ve got a bunch on my plate for the coming year. Did you know that January is National Mentoring Month? A massive shoutout to all the fantastic folks – our volunteers, board members, and mentors at A Few Good MENtors, Inc. In October of this year, we will be celebrating five years of growth and impact, and it's all thanks to your incredible support. Don't forget to give your mentors some extra appreciation this month!
In this issue, we're diving deep into a topic we all love (and sometimes wrestle with) – finances. What are your money goals for 2024? We're covering everything from emotional spending to savvy financial moves for the new year. Plus, we'll touch on the art of giving back and, of course, the latest happenings at AFGM.
But before we jump in, let me give our new readers a quick tour of our newsletter sections:
Growth Gateway: Your go-to for personal and professional development. Expect tips, stories, and advice designed to be your companion on the journey towards becoming your best self.
Insight Exchange: Think of this as your hub for deeper understanding. We're talking expert insights, thought-provoking discussions, and a whole lot of 'aha' moments.
Bridge Builders: All about connections and community. Here, we discuss the art of networking, mentorship, and creating supportive circles.
So, whether you're a long-time reader or just joining us, there's something here to spark your interest and growth.
Hope you enjoy this issue and find some information to kickstart your year right.
Catch you inside,
Michael R. Morgan
Publisher, G.R.O.W Newsletter
GROWTH GATEWAY
Emotional Spending - Recognizing and Overcoming
In the journey of financial wellness, emotional spending often emerges as a subtle yet significant roadblock. It's the act of making purchases driven by feelings rather than needs or rational decision-making. Whether it's the thrill of a sale, the comfort of retail therapy, or the impulse buys when feeling stressed or low, emotional spending can quietly derail our financial goals.
Emotional spending typically occurs in response to various emotions - happiness, sadness, stress, or even boredom. It's a momentary escape, a quick fix to feel good. The problem? Buyer's remorse or financial stress often follows it. This cycle affects our wallets and can lead to deeper emotional and financial issues.
So, how do we break free from this cycle? Here are some strategies to help G.R.O.W. readers take control:
Awareness is Key: Recognize the triggers. Identify situations or emotions that prompt you to spend impulsively. Is it stress, sadness, or the euphoria of a promotion? Awareness is the first step to change.
Pause and Reflect: Before making a purchase, pause. Ask yourself if you need the item or if you’re trying to fill an emotional void. Sometimes, just giving yourself this moment to reflect can prevent an unnecessary purchase.
Budget for Joy: Allocate a small portion of your budget for ‘feel-good’ expenditures. This way, you can indulge without guilt or financial strain.
Find Alternative Coping Mechanisms: Instead of turning to shopping, find healthier ways to deal with emotions. This might be exercise, talking to a friend, engaging in a hobby, or even meditation.
Track Your Spending: Keeping a close eye on where your money is going can be an eye-opener. Use budgeting apps or traditional accounting methods to track your expenses.
Set Financial Goals: Having clear financial goals can be a great motivator to curb emotional spending. Whether it's saving for a vacation, a new home, or building an emergency fund, keep these goals in mind.
Seek Professional Help if Necessary: If emotional spending is deeply rooted and difficult to overcome, don't hesitate to seek help from a financial advisor or counselor.
Remember, overcoming emotional spending is not about depriving yourself but about finding balance and making conscious choices. It's about ensuring that your financial decisions are in harmony with your long-term goals and emotional well-being.
By mastering the art of controlling emotional spending, you take an important step toward financial freedom and emotional health.
INSIGHT EXCHANGE
Eight money moves to make in 2024
New Year, new bank account. That is the theme Americans are bringing with them to start the year off right. One in two Americans plan to make finance-related goals, according to a WalletHub survey, as an uncertain future becomes more of a reality.
At the same time, nearly one in four say financial resolutions are the hardest to keep. Taking a fun, unique, or bold approach could be the difference between meeting goals or giving up on them within a few months.
Here are eight fun ways to tackle financial goals or resolutions this year.
‘Be Bold. Be Intentional’
James Thompson, senior national director of Diverse and Multicultural Wealth Segments at Bernstein Private Wealth Management, recommends thinking big as you make your resolutions.
“Don’t be shy!” he says. “Identify some of your biggest goals and dreams for your money and let that inspire how intentional you are with your budgeting. Purpose creates perseverance, so ensure that your budgeting outcomes create a pathway to achieve some of your biggest dreams.”
See It and Believe It
Vision boards have grown in popularity in recent years. LaQueshia Clemons, Licensed Clinical Social Worker and Accredited Financial Counselor at Freedom Life Therapy says these are trendy because they help people get a “visual of their goals and encourages them to remain focused.”
For example, she adds, “Maybe you need to buy a new couch, so you put it on your vision board and plan to save money to buy a new one within your budget.” Or use it as inspiration for life without the burdens of debt.
Try Your Own ‘Personal Finance Brunch Club’
Food is a great way to bond with others. Why not bring finances and accountability into the mix?
“The idea is to blend financial learning with the social, relaxed atmosphere of a brunch,” Renée Baker, founder of The RBI Group, says. It could be a monthly club or quarterly, depending on the availability of the group. But each meeting should involve meeting somewhere with food and drinks and discussing one or more book chapters.
“This format not only makes learning about finances more enjoyable but also encourages practical application of the concepts discussed in the book. It’s a fresh approach to financial literacy. Moving beyond the basics of budgeting and debt reduction, and fostering a community of like-minded individuals eager to expand their financial horizons.”
Baker recommended “Why Should White Guys Have All the Wealth?” by Cedric Nash and books by Deborah Owens, author, wealth coach, and founder of WealthyU, to get started.
Financial Fun for Kids
Children need to understand money’s value and potential when used strategically. Evan Potash, executive wealth management advisor at TIAA, recommended opening a brokerage or investment account for the children in your life.
“Get them involved in buying a share of their favorite companies — whether it’s a Disney princess or Activision Blizzard, [a video game company],” he says. “This can help build financial habits early and make them feel like they’re an owner of their favorite company.”
Plan to Travel for Free — Kind Of
Potash also recommended taking a new approach to travel in the new year by utilizing credit cards from airlines and companies that might be offering large signup promotions.
“If you have a good habit of paying off your credit cards, now it’s your turn to get paid from the airlines,” he says. “When you sign up for some credit cards and spend a certain amount, you get as many points as you would when you buy domestic, roundtrip tickets. Keep in mind, though, that you don’t want too many credit cards because it can lower your credit score.”
Save for Christmas and Other Holidays Starting Now
“People should resolve to set up a “Christmas club” or “holiday club” account, which was popular many, many moons ago,” Jeffrey Mellone, executive wealth management advisor at TIAA, says. “They were subconscious savings that people did to achieve their overall savings goals.”
Mellone tells Word In Black that the easy way to do this is to set up a bank account without a debit card and automate monthly deposits. Every month, try to increase the amount added.
“The idea is to see how much you can save/remove from your normal monthly cash flow without really noticing,” he says. “Once you find a level that’s sustainable, see how long you can continue without needing to access it.”
Use this method for general savings goals like an emergency or moving fund.
Use It or Lose It
Many Americans can access employer-sponsored savings plans like a 401(k) or Roth 401(k). The Internal Revenue Service recently announced a new maximum for yearly contributions. Starting this year, Americans can deposit up to $23,000 into a 401(k).
“Make the most of your workplace benefits,” Lawrence Delva-Gonzalez, auditor and financial literacy educator at The Neighborhood Finance Guy, says.
A New Take on Potlucks
In addition to workplace benefits, Delva-Gonzalez suggests taking up meal prep challenges with friends and family to save money.
“Every month, link up with five friends to exchange dishes,” he says. “It’s a delicious way to save money by cooking at home, learning recipes, and even eating great by exchanging a dish.”
Written by Bria Overs from Word in Black
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BRIDGE BUILDERS
Charity and Finances: The Joy of Giving
Today, let’s chat about something close to our hearts in the Bridge Builders section – the sheer joy of giving. You’ve probably heard the age-old saying, “It’s better to give than to receive,” right? Well, there’s more truth to it than you might think, especially when it involves supporting causes that make a real difference, like charities.
Now, speaking of charities, let’s shine a spotlight on an organization that's doing some incredible work – A Few Good MENtors (AFGM). As the CEO/Founder of this great organization, I know firsthand that we are out there daily, making a tangible impact in our communities through mentorship. We’re guiding, supporting, and empowering individuals in ways that truly matter. And the beauty of it? You can be a part of this amazing journey.
Here's a heads-up for our federal employees and contractors in the crowd: You still have a chance to contribute to AFGM through the Combined Federal Campaign (CFC). Picture this – your contribution could be the very thing that helps someone find their path, get that much-needed support, or simply feel heard and understood. The deadline for this round of giving is 1/15/2024, and AFGM’s CFC code is 65125. Just a few clicks and you could make a world of difference.
But why give to charity, you ask? Besides the obvious benefits to those being helped, giving is good for you, too. No kidding! It’s been shown to boost your mood, improve your sense of well-being, and even benefit your physical health. Think of it as a wellness activity, but instead of jogging or yoga, you’re flexing your generosity muscles.
Plus, giving to charity can be a smart financial move. It’s about managing your finances with a purpose beyond just personal gain. It’s about investing in the health and happiness of our society. And hey, let’s not forget the potential tax benefits – though it's always good to chat with a financial advisor to get the full picture.
So, as we kick off this new year, let’s embrace the joy of giving. Whether through the CFC or any other means, every contribution, big or small, has the power to spark change and bring a little more light into the world.
Remember, the act of giving isn’t just about opening your wallet; it’s about opening your heart. In doing so, we all grow closer, kinder, and more connected.
WEEKLY CHALLENGE
Donate a small amount to a cause you believe in, such as A Few Good MENtors, Inc., or save it for a future donation.
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News from AFGM
Here's what's happening at A Few Good MENtors, Inc. this month. As you know, January is a special time for us because it's National Mentoring Month! It's a period packed with activities and events celebrating mentorship. Here's a quick rundown of what's in store:
January 9: I Am A Mentor Day
Celebrate your role in making a difference as a mentor. Share your story and inspire others!
January 11: Department of Veterans Affairs CFC Event in Richmond, VA.
January 15: Dr. Martin Luther King, Jr. Day of Service
Embrace the spirit of Dr. King by giving back and joining in community service initiatives.
January 17: International Mentoring Day
A day to recognize and applaud mentorship worldwide. Let's spread the word about the power of mentoring!
January 24–26: National Mentoring Summit in Washington, DC
Don't miss this gathering of mentoring minds. Join us for some insightful discussions and networking.
January 25: Thank Your Mentor Day
Take a moment to express gratitude to those who've guided you. A little thank you goes a long way!
Also, we've got some exciting outings planned for this month:
Catch a Game with AFGM
Join us at the Wizards game on January 20, 2024, at Capital One Arena in Washington, DC. It's going to be a fun evening of sports and camaraderie.
Washington, DC Auto Show
Interested in cars? Join AFGM at the Washington, DC Auto Show from January 19 – 28, 2024. It's an excellent opportunity to network and enjoy some amazing automobiles. For more details, drop us a line at [email protected].
Stay tuned for more updates, and make sure to get involved in these fantastic events. Let’s make this National Mentoring Month a memorable one!
QUOTE FOR THE WEEK
"Do not save what is left after spending, but spend what is left after saving." - Warren Buffett
WRAPPING UP THIS ISSUE
And that's it, folks! Thanks for tuning in to another edition of the G.R.O.W. newsletter. We've covered a lot this time, from the joys of giving to keeping up with all the great things happening at AFGM. Remember, each step we take, whether understanding our finances or contributing to our community, brings us closer to our goals of growth and connection.
Get ready for our next issue, which will be a special one dedicated to MLK Day. It's going to be packed with inspiring content, so keep an eye out!
Now, a little shoutout to the writers and aspiring writers in our community – we're looking for fresh voices to join our newsletter team. If you’ve got a knack for words and a passion for sharing stories and insights, we’d love to hear from you. Just shoot us an email at [email protected].
Don't forget to support our sponsors by clicking their links. They play a big role in keeping our newsletter thriving. And hey, if you run a business and want to get the word out, why not become a G.R.O.W. sponsor? With around 250 households tuning in weekly, it's a great opportunity to spread the word about what you do. Reach out to us at the same email for more info.
That's all for now. Keep growing, keep giving, and we'll catch you in the next issue!
Take care,
Michael