The Financial Risks of Medical Credit Cards
Medical credit cards are becoming more common as healthcare costs rise. While they might seem like a helpful way to pay for medical, dental, or even pet care expenses, it's important to understand the financial risks involved. Let’s walk you through what they are, some risks and possible consequences of using one.
What Are Medical Credit Cards?
Medical credit cards are specialized credit cards designed to cover healthcare-related expenses. They are often offered to patients at doctor's offices, dental clinics, or veterinary practices as a way to manage the cost of treatments. These cards may come with promotional offers, such as deferred interest for a certain period. Some of the most well known medical credit cards are called CareCredit, ScratchPay, Alphaeon Credit, and HealthiPlan. They can be marketed as having an “interest free” period but often times it’s actually a deferred interest period. Keep reading to learn the difference.
The Financial Risks Involved
While medical credit cards can provide immediate financial relief, they carry significant risks:
High-Interest Rates: If you don't pay off the balance within the promotional period, you could be hit with high-interest rates on the remaining balance.
Deferred Interest: Some cards offer deferred interest plans, which means if you don't pay off the full balance by the end of the promotional period, you'll owe interest on the entire original amount, not just the remaining balance.
Impact on Credit Score: Missing payments or carrying high balances can negatively affect your credit score, making it harder to obtain loans or other credit in the future.
Limited Consumer Protections: Unlike traditional credit cards, medical credit cards may offer fewer protections, leaving you more vulnerable in disputes over charges or services.
Real-Life Consequences
Many Americans have found themselves in financial trouble due to medical credit cards. Some patients have been encouraged to use these cards for procedures, only to later face overwhelming debt due to high-interest rates and deferred interest clauses. This has led to increased stress and financial instability for many families. In short, these medical credit cards can in some instances be predatory and create big problems.
Alternatives to Medical Credit Cards
Before opting for a medical credit card, consider these alternatives:
Payment Plans: Many healthcare providers offer payment plans with little to no interest. It's worth discussing this option with your provider to see if they offer something.
Health Savings Accounts (HSAs): If you have a high-deductible health plan, contributing to an HSA can provide tax advantages and help cover medical expenses.
Flexible Spending Accounts (FSAs): An FSA is similar to an HSA but has different qualifications and tax advantages. It can allow you to put pre-tax money towards medical expenses.
Personal Loans: In some cases, a personal loan with a lower interest rate might be a better option than a medical credit card.
Conclusion
While medical credit cards can offer a quick solution to healthcare expenses, they come with significant financial risks. It's crucial to read the fine print, understand the terms, and consider alternative payment methods before deciding. Being informed can help you make the best financial decision for your health and your wallet. For more reading, check out this Time article here.
Are Costs Going Up?
We’re firmly into 2025 and the new presidential administration. Eggs prices are through the roof (if you can even find them), home insurance rates are crazy, and all I got was a 2% salary adjustment for this year??
If that doesn’t sound like your world, it certainly sounds like mine. Let’s go through some big household expenses and see what they’re forecasted to do in the coming months.
Gas and Energy
The U.S. Energy Information Administration (EIA) forecasts that gas prices will go down this year, but it’s subject to the impacts on tariffs. Gas is a global product so it’s price is impacted by more than American production. You may also be familiar with the concepts of summer and winter gas, where winter gas ignites more easily to help your car start better in colder conditions and summer gas has different qualities that can help maintain better air quality. Summer gas is more expensive than winter gas.
Prosperity predicts: Prices to stay flat until summer, when gas prices always increase with higher demand and the transition to summer gas.
Cars and Car Insurance
According to caredge.com, demand for used vehicles ultimately trended down in 2024 and was predicted in December to continue a downward trend. Tariffs, on materials (steel) or nations (Canada, Mexico) could impact the new car market by creating a significant cost increase. If the cost of new cars goes up, it’s likely that the cost of used cars will rise with them. When it comes to insuring your car, it doesn’t look very good right now. Bankrate shared that insurance rates were up 12% year over year from 2024 to 2025.
Prosperity predicts: Prepare to open your wallet.
Groceries
In case you missed it, there’s a bird flu spreading among the U.S.’s egg laying chicken population. It’s required farmers to put down over 40,000,000 chickens already with more to come. So your eggs are $10 a dozen because supply is significantly limited. If you’re in Colorado, your eggs are also up because on January 1, 2025 a new law went into effect that requires our eggs to be from cage free farms. Talk about poor timing. Beyond the price of eggs, you may have noticed prices creep up in 2024. If you didn’t notice, perhaps you heard Donald Trump’s campaign promise to lower grocery prices. Either way, it’s as political a topic as it’s ever been. Trump claims that he can lower grocery prices by increasing American energy production. Farmers use energy to plant, water, harvest and transport crops and his logic is that raising the energy supply will lower its cost, which will lower the cost to grow food, which farmers will be able to trickle down to prices at the grocery store. We said above that gas is a global product, so many economists question the feasibility of this plan.
Prosperity predicts: Prices unlikely to come down.
Based on these three areas, it looks like we may be in for an expensive year. If you’re feeling the strain of these high prices, Prosperity may be able to help. Please us the contact button in the website menu to reach out.
Seven Signs Your Frugality Has Gone Too Far
When it comes to managing your finances, frugality can be a powerful tool to build wealth, pay off debt, and create a sense of financial freedom. But when does frugality cross the line and become counterproductive? Honestly, I’ve been there. One time a drove far out of my way to what I thought was a “cheaper” gas station, only for gas to be the same price as it was near my location. I was willing to give up more than half an hour of my time to save five to ten cents a gallon and I realized I was taking things too far. While being smart with money is essential, going to extremes can sometimes do more harm than good. Here are seven signs you might be taking frugality too far:
1. Skipping Necessary Health Care
Cutting corners with everyday expenses is one thing, but if you’re avoiding doctor visits, delaying needed prescriptions, or ignoring medical advice to save a few bucks, that’s a sign your frugality is jeopardizing your well-being. Health is wealth, and neglecting it can lead to even more significant expenses down the road.
2. Sacrificing Quality for Cost
There’s a fine line between getting a bargain and settling for poor quality. If you find yourself constantly buying the cheapest version of items that wear out quickly, you might be spending more in the long run. For example, purchasing low-cost shoes or tools that need frequent replacement could end up costing more than investing in a durable, well-made alternative. Looking at you, Temu.
3. Prioritizing Savings Over Relationships
Are you saying “no” to every social event or skipping out on spending time with loved ones just to save money? While budgeting for entertainment is important, isolating yourself from friends and family can impact your mental health and well-being. Shared experiences often bring more lasting happiness than a few extra dollars in your savings account. For what it’s worth, I’ve done a fair amount of blogging about ways to spend time with people that can be low or no cost, if this is something you struggle with, check out my post history.
4. Obsessing Over Small Savings
If you’re spending hours searching for a way to save a couple of dollars or driving across town just to use a coupon, consider the value of your time. Constantly nitpicking small savings can cause stress and take away from activities that enrich your life or generate more significant financial benefits, such as improving your skills or networking.
Personal anecdote: I recently replaced my ski bibs (how Denver of me). I went to a store, bought a bib, and a few weeks later I saw they were offering a military discount. Since my brother is in the military, he bought a second bib for me at a slight discount. I figured I could save like $30 by returning the first one… well, by the time I went to the store to return the first bib, the 30 day return window had passed and I ended up having to return the one my brother bought me. Not only did I lose the time it took to go to the store, I lost in shipping costs!
5. Hoarding Rather Than Using What You Have
Do you have stacks of toiletries, canned goods, or other items bought on deep discount that you rarely use? Stocking up during sales is smart, but if your pantry is overflowing or you’re storing years' worth of supplies that are going unused, it may be time to evaluate your shopping habits. Consider using or donating things that have accumulated. For me, it’s the free toothbrushes I get every time I go to the dentist. I use an electric toothbrush! I literally only use these when I travel.
6. Neglecting Self-Care and Enjoyment
Life is about balance. If your frugality prevents you from spending on things that bring joy, relaxation, or personal growth—like a hobby, a gym membership, or the occasional night out—you might be missing the bigger picture. It’s crucial to budget for fun and experiences that contribute to overall happiness. At Prosperity, we promote the personal aspect of personal finance- a special occasion or the occasional one time expense may set you back a bit from your goals, but can be a worthwhile use of your money.
7. Ignoring the Importance of Time
One of the most subtle signs of extreme frugality is undervaluing your time. If you're taking on tasks that consume a lot of time solely to save money, like driving miles out of your way to save a few cents on gas (me) or manually clipping coupons for hours, it’s worth reconsidering. Sometimes, paying a little more to save time allows you to focus on higher-value activities. Circle back to #4 for the lost time (and money) on my bib.
Being mindful of your finances is commendable, but when frugality starts to negatively affect your quality of life, relationships, or long-term well-being, it’s time to recalibrate. Striking a balance between saving money and living well is the key to a fulfilling financial journey. Remember: The goal of financial wellness is not just having money—it’s building a life where money supports your overall happiness and health.
Are you seeing any of these signs in yourself or someone you know? Consider contacting Prosperity and scheduling a Money Date today.
Prosperity Reacts to Governor Jared Polis’ 2025 State of State Speech
Last Thursday Governor Jared Polis gave his 2025 State of the State address. It painted a vision of a prosperous Colorado (we love that) that prioritizes affordability, economic opportunity, and financial security for all residents and was filled with some great nerdy quotes and references. His speech showcased both the achievements of his administration and ambitious plans to address the financial challenges Coloradans face. As financial issues remain a top concern for families across the state, and we here are a personal finance coaching practice, let’s break down the governor’s key successes and promises related to money and personal finance.
Tackling Housing Affordability
One of the most pressing issues in Denver and statewide that Governor Polis addressed is the lack of affordable housing. His administration has taken meaningful steps to close the gap between supply and demand, including:
Expanding Housing Options: New policies have made it easier to build accessory dwelling units (ADUs) and housing near transit hubs and job centers. These efforts aim to create inherently affordable housing because ADUs are typically small studio or one bedroom units.
Promoting Condo Construction: Polis highlighted the dramatic decline in condo construction over the past decade and proposed meaningful liability reforms to reignite this segment of the housing market, offering Coloradans more affordable homeownership opportunities. Condos can be a good option for first time homebuyers.
Innovative Housing Solutions: The state is exploring modular housing options to reduce costs and timelines, as well as partnering with faith-based and educational organizations to build affordable homes on underutilized land. Both could increase housing availability.
These initiatives reflect a commitment to making housing accessible to Coloradans at all income levels. While we haven't seen the fruits of this effort yet, here at Prosperity we're very hopeful that a rise in affordable housing will create more options for all.
Reducing Insurance Costs
Rising homeowners insurance rates are another financial burden affecting many residents both across Colorado and nationwide. Governor Polis announced plans to tackle this issue head-on by addressing key cost drivers like hail and fire risks. He also emphasized the need for expanded access to insurance and education on rate reduction strategies, which could provide immediate relief to homeowners and renters alike.
Transportation and Affordability
Transportation costs and congestion are significant contributors to household expenses at almost every budget level. Polis’ administration has invested in public transit and rail projects to save Coloradans time and money. With a $90 million down payment on passenger rail expansion and affordable ticket options like the Winter Park Express, the state is working toward a more connected, sustainable, and cost-efficient transit system. Whether you choose to ride public transit or not, it's expansion will benefit how long you sit in traffic, possible wear and tear on your car and how often you need to refill your tank!
Healthcare Cost Reductions
Healthcare remains a top expense for families (have you seen how high deductibles are these days?), and the governor is focusing on cost reduction efforts. From capping insulin prices to implementing the Colorado Option (this is the open affordable healthcare marketplace), his administration has taken steps to lower premiums and increase price transparency. Polis also reiterated his commitment to advancing the state’s prescription drug importation plan, which could provide significant savings on essential medications.
Economic Growth and Financial Security
Governor Polis expressed a vision for a thriving economy that supports small businesses and fosters innovation. His administration’s efforts to streamline government processes, close tax loopholes, and ensure businesses can grow with less red tape demonstrate a focus on fostering financial security. Additionally, his balanced budget proposal aims to fully fund schools, improve public safety, and maintain the state’s social safety net, even amid tighter financial conditions. There basically was something for everyone in this part of his speech.
Looking Ahead
Governor Polis’ 2025 address underscores his administration’s dedication to addressing financial challenges head-on. By focusing on affordability, sustainability, and opportunity, his vision for Colorado offers hope for residents striving to achieve financial stability. As these initiatives unfold, Prosperity and Coloradans across the state will be watching closely to see how these promises translate into tangible results for their families and communities.
Governor Polis’ call to “Climb Higher” is a reminder of the collaborative effort required to build a financially secure and prosperous Colorado. Together, residents, businesses, and lawmakers can shape a brighter economic future for the Centennial State.
Have questions about parts of this speech? Want to chat about any of these issues and how they impact your life? Reach out to Prosperity by clicking the Contact button on the top ribbon of this page.
Why I Often Recommend Monarch Money
For the millionth time, personal finance is personal and I don’t recommend the same things to every client. That said, folks who use a certain type of budget, like accountability and have a smartphone are often looking for a way to manage their money and I think Monarch is a great option for a lot of people who fit that bill. Here are some reasons why I like it:
It has a user-friendly interface
Monarch is cleaner than my place after I hire a cleaner. It’s got an intuitive design that’s easy to navigate and get the hang of. It’s super easy to set and track goals, establish and then modify your budget, watch your net worth go up and offers some easy to implement suggestions.
It’s pretty much an all-in-one platform
To use Monarch, you link your accounts. Seeing everything in one place is great, you get a comprehensive look at net worth, spending and saving. You can track credit cards, loans and investments on the same platform instead of logging into like a dozen different places.
I feel like it’s pretty secure
Honestly, I’m not an IT professional. But Monarch uses Plaid to securely view your accounts, not modify them like make a credit card payment, and they have some great articles on how they value security.
It’s got lots of customizable budgets and goals
This is a must for anyone looking to take control of their finances. You can build goals like saving for a car or vacation, paying down debt or building your emergency fund. And this flexibility mirrors the gospel I preach that personal finance is personal.
There are collaborative features
Now this is something Mint (RIP) didn’t offer. You can have one account with multiple members, which promotes transparency and helps couples operate as a team.
The visuals though
Monarch is gorgeous. Graphs, charts, the whole shebang. So easy to see your progress!
Monarch is ad free
You pay a monthly or annual subscription fee, which is a bummer, but it’s invaluable and they’re not selling you other shit. Can’t say the same for mint.
It adapts easily
The Monarch team is always listening. They even let you know what they’re working on, which is pretty neat.
It supports financial coaching!
There’s a feature where, for a small fee, you can grant your financial coach (hopefully me!) access to your account.
Interested in checking it out? Click here for an extended free trial and be sure to reach out with questions or success stories!
The Pro’s and Con’s of Using a Car Share
So I’ve been asked before if it makes sense to own a car in places like Denver, or if someone should subscribe to a car share program. Let’s dive into the good and bad:
The good:
Cost Savings
You can save some cash, and depending on how often you drive, a fair amount. Save on car payments, insurance, maintenance and registration- things that can easily be in the thousands of dollars a year. Car share programs vary, but you typically only pay for the time or mileage you actually use.
Flexibility in Vehicle Choice
Since you often rent different cars, you may never drive the same thing twice. This is a pro for some, a meh for others.
Reduced Environmental Impact
Not owning a car keeps the number of cars on the road down, promotes alternatives to driving and reduces your carbon emissions. This can lead to less traffic and easier parking if everyone participated.
No Long-Term Commitment
This is great for those who have commitment issues or simply don’t need a car daily.
No Maintenance Worries
I think this one speaks for itself.
The bad:
Availability Issues
Cars may not always be available when or where you need them, especially during peak times. This can really suck and leave you in a pickle.
Limited Access
You pretty much have to live in an urban area to access these. Plus, piggybacking off availability, they may not be accessed spontaneously. S
Higher Costs for Frequent Users
Costs can add up quickly if you use a car regularly.
Lack of Customization
Need a car seat? Want to use a bike rack? These may not be options in a car share.
Time Constraints
Late fees are a huge bummer. With a care share you often need to return the car by a certain time, which can be limiting.
Insurance and Liability
Some programs have higher deductibles or limited coverage in accidents, which could leave you responsible for damages.
Dependency on the Program's Health
If the car-sharing company faces financial issues, your access might be disrupted. Food for thought.
So, there are some perks to using a car share, but it’s not exactly a perfect system. For someone who only needs a car occasionally, lives in a neighborhood with terrible parking, or only needs to drive on special occasions, it can be a move but it’s not for everyone.
Setting Financial Goals for the New Year
Welcome to 2025! If you didn’t set up your plan for this year yet it’s the perfect time to evaluate your financial progress and plan for the future. Setting financial goals can feel daunting, but with the right approach, you can start the year strong. We suggest the following methods to help you set goals that will help you stay motivated and on track:
1. Review the Past Year’s Budget
Start by reflecting on this past year. What financial strategies worked for you? Where did you fall short? Highlight your successes to build on them, and identify areas that need improvement to avoid repeating past mistakes.
2. Set SMART Goals
Your financial goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of “Save more money,” set a goal like “Save $5,000 for an emergency fund by June.” This clarity will guide your actions and keep you accountable.
3. Break Goals into Quarterly or Monthly Milestones
Large goals can be overwhelming. Divide them into smaller, manageable steps. If your aim is to save $5,000 by June, break that into monthly or quarterly targets. Celebrating these smaller wins keeps you motivated and reassured that you’re on the right path.
4. Create a Vision Board
A vision board can help visualize your goals. It might include images of a dream home, a paid-off credit card, or a vacation. This tangible reminder of what you’re working toward can inspire you on days when motivation wanes. Vision boards can be digital or physical and a fair bit of fun to make!
5. Incorporate an Accountability Partner
Partnering with someone who shares your commitment to financial progress can make a huge difference. Share your goals with a friend or family member who can encourage you and celebrate your achievements together. Break the taboo of talking about money! Shout your goals from the mountaintops! Recruit friends to support or join in your goals!
6. Do a 90 Day Forecast of Sinking Fund Expenses
Know you’ll need new tires in February? Or you’ve got an out of town wedding in March? The time to forecast this is now! A forecast is simply a brainstorm- take a look at your calendar and see what you have coming up for the next 90 days that isn’t captured by your budget. If you see something, note how much it’s anticipated to cost. Tally up your sinking fund expenses and compare it to how much you currently have in your sinking fund. Do you have enough? If not, make sure you’re planning on sending enough money each paycheck to cover everything you have coming.
30 Day Challenge
Looking for a great way to start off the new year? Well, Prosperity has a 30 day budget challenge to help you get off on the right foot!
Contact Rachel at rachel@prosperitypersonalfinance.com or 720-675-8746 for a free copy!
Bouncing Back from a Holiday Hangover
The holiday season often brings joy and excitement, but for many, it also leads to financial stress. If you missed our webinar on Financial Wellness During the Holiday Season, it’s possible you overspent. For those starting the new year with some financial blues, here’s how to bounce back:
1. Analyze Your Holiday Spending
Begin by reviewing your spending habits during the holidays. What purchases were necessary, and what could have been avoided? This review can help you understand any overspending patterns and prepare better for next year.
2. Create a Post-Holiday Budget
Plan a temporary, strict budget for the first few months of the new year. Focus on minimizing discretionary spending and prioritizing essentials. This adjustment can help you recover financially while maintaining your quality of life.
3. Plan a Debt Payoff Strategy
If you have credit card debt from the holidays, consider scheduling a session with Rachel to learn more about the debt snowball method (paying off the smallest debt first) or the debt avalanche method (paying off the highest interest debt first). Choose whichever method keeps you motivated and aligned with your financial goals. At Prosperity, we believe personal finance is personal, so we don’t recommend one strategy across the board.
4. Avoid Lifestyle Inflation
Avoid taking on new expenses just because the holidays are over. Stick to your pre-holiday spending habits until you regain financial stability.
5. Practice Self-Compassion
Don’t let guilt overwhelm you. Acknowledge that overspending can happen and focus on what you can do now. We can’t change the past, but we are in control of the future. This mindset will keep you proactive and motivated.
With these tips in mind, you’ll recover from the holidays in no time :)
Alternative Charitable Gifts
The holidays are certainly a season of giving, but it doesn’t have to mean emptying your wallet. If you’d like to contribute meaningfully without overspending consider these options:
1. Volunteer Your Time
Many organizations are short on volunteers during the holiday season. Whether it’s serving meals at a shelter or helping with local events, your time can make a big difference.
2. Share Your Skills
Consider offering your professional or creative skills—like tutoring, graphic design, or photography—to those who might benefit. Helping others this way can be just as impactful as a cash donation, if not more.
3. Donate Unused Items
If you’ve accumulated items over the year that are still in great condition, consider donating them. Clothing, toys, and household items can go a long way for families in need.
4. Organize a Charity Drive
If you can’t give much on your own, organizing a drive can amplify your impact. Rally friends and family to contribute items like food, clothes, or books to a local shelter.
5. Gift Donation Cards
Instead of traditional gifts, give donation cards. This is a donation in the recipients honor to the charity of their choice. These allow the recipient to choose a cause they care about, sharing the spirit of giving.
These thoughtful approaches can help you embrace the holiday spirit without overspending.
Making the Most of Your Bonus
Receiving a holiday bonus can feel like winning the financial lottery, but how you use it can set you up for future success. Here’s how to maximize the impact:
1. Treat It as a Temporary Increase
This is not a raise! Avoid treating your bonus like an ongoing salary bump. Recognize it as a one-time boost to prevent lifestyle inflation and impulsive spending.
2. Allocate Funds Wisely
Divide your bonus into categories. One possible breakdown could be: 50% for savings, 30% for paying down debt, and 20% for personal enjoyment. This balanced approach ensures both practicality and fun. Remember to pay yourself first!
3. Send Money to Your Emergency Fund
If you don’t already have 3-6 months (for those with steady income) or 6-12 months (for those with unsteady income) of expenses saved, use part of your bonus to fortify your emergency fund. This safety net can be a lifesaver during unforeseen circumstances.
4. Invest in Future Goals
Consider putting a portion into your sinking fund, retirement accounts, college savings plans, or other long-term investments. Even small contributions today can grow significantly over time.
5. Plan a Small Treat
While it’s crucial to use your bonus wisely, don’t forget to reward yourself a little. Use a small portion for a treat or experience that boosts your happiness and motivation. What’s our idea of small at Prosperity? 10-20%.
Follow these tips to make the most of your holiday windfall and set yourself up for long-term success!
How to Save Money over the Holidays
The holiday season is filled with joy—and loads of shopping traps. Here’s how to navigate these pitfalls and keep your finances intact:
1. Recognize Limited-Time Offers
Retailers use phrases like “Only for 24 hours!” to create urgency and pressure you into impulse buying. Pause before making a purchase and ask yourself if it’s truly needed or just a result of marketing tactics.
2. Stick to a List
Impulse purchases add up fast. Create a holiday shopping list and commit to sticking to it. This approach ensures your spending aligns with your budget.
3. Beware of Buy-Now-Pay-Later Plans
These plans make purchases seem more affordable than they are. While they can be useful, they often lead to overspending and financial stress once payments begin.
4. Unsubscribe from Retail Emails
Constant promotions can make even the strongest resolve falter. Unsubscribe from emails and turn off notifications to reduce temptation.
5. Shop with Cash or Debit
Using cash or a debit card can keep spending under control. This method prevents racking up credit card debt that you’ll face after the holidays, only spend money you actually have!
6. Use Price Tracking Tools
Utilize tools that alert you to price drops, so you don’t fall for marketing tricks disguised as deals.
Staying aware of these traps will help you enjoy the holidays without the post-season financial regrets, whiplash or hangovers.
Things I Added to My Budget Recently
Every budget should be reexamined relatively often, especially mine. I asked for a raise (and got it!) and used it as an opportunity to make a few changes. Here’s what I did:
I increased my contribution to my Roth IRA.
I don’t max mine out yet because I have access to a 457b through my primary employer, so taking the opportunity to pay myself first by investing in my future was major key for me.
I added a hosting line item to my budget.
Because I love having people over but I don’t love draining my grocery budget, this made a lot of sense for me. It’s not exactly a common line item, honestly I hadn’t heard of anyone else doing this, but to me it made total sense.
I increased my gifts budget.
I keep a small gifts line item in my budget because I love buying my boyfriend a cookbook or sending money towards my brother’s birthday present all throughout the year. Gift giving is not limited to the holiday season and I think the best way to budget is to be honest with yourself about your spending, so I added to this instead of constantly running it over.
I also increased my budget for my around the house spending.
I’m pretty good at only buying what I need, but I noticed this was a line item I often ran over.
Now, this was not a ton of money to any category, but it was a great way to make the most of my raise. I’m proud of myself for asking and I’m even prouder of myself for choosing to use this opportunity to use my money wisely.
In Person Event: Budgeting for Charitable Giving!
Hi friends!
I’m so excited to announce that I will be collaborating with Base Denver to offer a free, in person seminar on budgeting for charitable giving!
This is something very near and dear to my heart as I was raised with strong philanthropic values and find it deeply important to give to causes as often as I can afford to give. Giving meaningfully doesn’t mean you have to give four, five or six figure donations. Giving is a deeply personal experience, something everyone should have the skills to find dollars for. If you’re a young Jewish adult local to the Denver area and looking for an opportunity to learn about charitable giving through a biblical lens, why it’s important, how to give and most importantly how to budget for it- this event is for you!
Date: Thursday, December 19th
Time: 6:00-7:30pm
Contact me at rachel@prosperitypersonalfinance.com or 720-675-8746 for more information, sign up link here.
How Much Should I Spend on an Engagement Ring?
Deciding how much to spend on an engagement ring can feel overwhelming, especially with the various “rules” and traditions that have been passed down over the years. Let’s break down the essentials so you can make an informed, budget-friendly decision.
The Traditional “Three-Month Salary” Rule
You may have heard that you should spend three months of your salary on an engagement ring. This guideline, however, was largely popularized by marketing campaigns and isn’t necessarily practical for everyone, honestly most people. Sticking rigidly to this rule can lead to financial strain and might not align with your current financial situation or goals.
What’s the Realistic Approach?
A more realistic approach is to set a budget that reflects your financial comfort and priorities. Here’s how you can decide:
Assess Your Financial Health: Consider your savings, debt, and future financial goals. An engagement ring is an important purchase, but it shouldn’t jeopardize your financial stability or put you in debt.
Determine What’s Important: Discuss with your partner what matters most. Are they more interested in a high-carat diamond, or are they open to alternative stones or settings? Understanding preferences can help you allocate your budget efficiently.
Research the Market: Spend time learning about the 4 Cs (carat, cut, color, clarity) and how they impact price. You might find that a well-cut diamond with slightly lower carat weight looks just as impressive and saves money.
Shop Smart: Compare prices from local jewelers, online retailers, and even vintage shops. Custom rings can sometimes offer more value than store-bought options.
A Personal Financial Rule of Thumb
A good rule of thumb is to spend an amount that won’t compromise your emergency savings or long-term financial plans, ideally it should be planned and saved for in a sinking fund. Many financial experts suggest capping your spending at one to two months’ salary or a budget that fits your income comfortably.
Remember, the love and commitment behind the ring are far more significant than its price tag. Stay true to what feels right for your relationship and your wallet.
If you’re considering how this major purchase fits into your financial goals, Prosperity Personal Finance can help you budget wisely and plan for your future together. Reach out for coaching that puts your long-term prosperity first!
How Do I Navigate Holiday Gift Giving on a Budget?
The holidays are the best of times, but they can also be the worst of times if your budget and wallet are unprepared!
How do we fix this? At Prosperity, we don’t promote one size fits all approaches to personal finance, but we do have some ideas that may speak to a broad audience.
We’ve definitely said this before, it’s about the five P’s: Proper Planning Prevents Poor Performance. So, how to we properly plan? We see a few options here. We think it’s profoundly important to have a conversation with those who you may exchange gifts with to establish ground rules for gifts. “Can we all agree this year to spend no more than X dollars on holiday gifts?” is something you may be able to say to a family member or loved one. If you’re uncomfortable talking about your financial situation, you can simply say “I’d like to prevent holiday spending from getting out of control. What do you say we agree on spending X on presents this year?” If setting boundaries is difficult for you, consider strategizing with your therapist and preparing for this conversation in advance.
Beyond setting boundaries on amount spent, we can save up a fixed amount as part of a sinking fund. As you may recall from prior posts, a sinking fund is for known expenses such as travel, car maintenance and repair or really anything you know about in advance. If you save $25 each paycheck from January to November and you get paid bi-weekly (meaning every other week), you’ll have saved up $600 as a holiday budget. Not too bad! Alternately, if you’d like to reach $600 and start in September, you’d need to put away $100 a paycheck. We all knew that math though, didn’t we?
For those who have the capacity in their budgets, Prosperity often recommends having a standing budget item for gifts. Typically this is not as big of a number year round as it may need to be during the holiday season, but for folks who enjoy giving gifts it is nice to have this as an ongoing item.
For those who have neither capacity to save for the holidays nor room in their budgets for a standing line item, we recommend a few approaches to gift giving. First, if a physical gift is important to give, we suggest DIY gifts. Whether that’s a hand knitted scarf or a decorated picture frame, that’s up to you but DIY can be effective in lowering costs as well as creating a nice way to pass the time on nights and weekends. Be careful about cost creep and think about what you have at home or easily accessible before making a $200 run to the craft store!
Second, if it’s more about the act of giving than giving a material possession we have some ideas for low cost gifts. For the most part, they are from the category of “acts of service” if you’re familiar with the five love languages. Think about ways you can give your time instead of your money. A coupon book filled with favors may be a good gift for a close friend or family member. I have personally gifted friends with kids free nights of babysitting in the past- costs me nothing and gets me quality time with kids I like while my friends get a much deserved break. If you’re adept at cleaning you can gift a house cleaning, but we’d recommend being sensitive with this one. The hoarder relative in your family may not appreciate this gift, use your best judgement on gifting this wisely! Some other acts of service you can gift are homecooked meals, teaching or sharing a skill you have (we all know something!), yardwork services or taking care of the dog while someone’s on vacation are all gifts that could land well with the right friend or family member.
Remember, the holiday season is about spreading and increasing joy. Gift giving should be a positive experience, not a negative one!
Personal Finance in Denver
We all know the cost of living is high in Denver. Denver’s stunning views, incredible outdoor activities, and overall high quality of life make it one of the most desirable places to live in the U.S. However, with these perks come unique financial challenges that can stretch your budget. Here, I’ll discuss some of the most pressing personal finance challenges for residents of Denver and the Front Range—and share how to navigate them.
1. Competitive Housing Market in Denver
The housing market in Denver is one of the most competitive in the country. Whether you're buying or renting, you know that home prices and rent have consistently been on the rise. This is due in part to the region's popularity, driven by outdoor recreation, a strong job market, and a lifestyle that’s hard to beat.
However, navigating Denver’s real estate market can be tough. Here are a few strategies to manage this challenge:
Budget realistically: Include potential costs like property taxes, homeowners insurance, and HOA fees.
Expand your search: Consider areas just outside of Denver or in the greater Front Range for slightly more affordable options. Cities like Golden, Parker and Broomfield all offer a variety of great perks, including their own green spaces.
Plan for a higher down payment: In a competitive market, having more upfront cash can make your offer more attractive.
If you’re looking for help building a budget for home ownership, coaching sessions at Prosperity Personal Finance can guide you through the process.
2. The Cost of Outdoor Recreation
Denverites know that the cost of recreating in Colorado is not insignificant. From skiing in the Rockies to cycling and hiking, each hobby seems to come with its own price tag. Gear alone can cost thousands of dollars. For example:
Hiking: While trails are free, specialized hiking boots, day packs, and hydration gear add up.
Skiing or Snowboarding: Costs can reach thousands between season passes, equipment, and travel.
To enjoy the Colorado outdoor lifestyle without breaking the bank:
Rent gear before you buy: Try out equipment to ensure it’s a worthwhile investment.
Buy second-hand: Outdoor gear swaps and local consignment stores in Denver can save you money.
Prioritize and budget: Choose one or two key hobbies and budget for them annually to avoid overspending.
3. Transportation Costs in Denver
Unlike cities with comprehensive public transit systems, Denver is very much a car city. Most residents find it difficult to live without a vehicle, especially if they want to explore areas outside the city. The financial implications of car ownership include:
Upfront costs: Down payments and financing.
Ongoing expenses: Insurance, registration, gas, maintenance, and unexpected repairs.
These costs add up quickly, so it’s essential to budget for car-related expenses:
Plan for maintenance: Setting aside an emergency fund for car repairs can prevent financial stress.
Shop for insurance: Compare providers annually to ensure you're getting the best rate.
Use budgeting tools: Allocate a specific amount for monthly car-related expenses so that you’re not caught off guard.
If you’re struggling to manage transportation expenses, consider scheduling a Money Date with Prosperity Personal Finance for personalized guidance on budgeting and financial planning.
Denver and the Front Range are fantastic places to live, but being aware of these local financial challenges can help you plan better and live more comfortably. If you’re ready to take control of your finances, whether it's budgeting for a new home, saving for outdoor gear, or managing transportation expenses, Prosperity Personal Finance is here to support you.
For more tips and coaching tailored to the Denver lifestyle, don’t hesitate to reach out or join our group coaching sessions. Email me at rachel@prosperitypersonalfinance.com to get started!
Introducing Group Coaching!
Are you ready to take charge of your financial well-being but prefer learning and growing with the support of a group? I'm excited to announce a new way to access financial coaching at Prosperity Personal Finance—Group Coaching!
Why Choose Group Coaching?
Group coaching offers all the benefits of my regular one-on-one sessions but with the added perks of community and savings. By joining with a group of three or more, you can lock in my group rate of $150 a session and enjoy significant savings compared to private coaching, which is $75. Plus, learning alongside others can create a sense of camaraderie and mutual support that keeps everyone motivated and on track.
What to Expect:
Comprehensive Financial Guidance: We’ll cover essential topics like budgeting, credit building, debt management, saving strategies, and more.
1-Hour Virtual Sessions: Enjoy the convenience of online coaching from the comfort of your home.
Interactive Learning: My coaching style is engaging and participatory. Expect discussions, group exercises, and opportunities to share insights with one another.
Flexible Duration: Most group programs run for 4-5 sessions, but we can extend the series to match the group’s needs and interest.
Personalized Insights: Even in a group setting, I ensure that everyone gets tailored guidance relevant to their financial situation.
Sign Up Today!
Ready to join a group and start your journey to financial prosperity? Email me at rachel@prosperitypersonalfinance.com to reserve your spot. Spaces are limited, so secure your place now and take the first step toward a more secure financial future!
Whether you're looking to cut costs, learn collaboratively, or just want to experience a new approach to financial coaching, this group option could be the perfect fit.
Halloween on a Budget
Halloween is around the corner and everyone is putting together their costumes.
Want to do something fun, unique and creative that doesn’t break the bank? At Prosperity, we certainly do!
Here are a few ideas for costume ideas that we think aren’t widespread or overused:
Try something simple that doesn’t require purchasing new clothes or materials.
Consider a costume that requires a poster or foam board overlaid on a solid colored outfit.
If you already own lots of makeup, explore costumes that involve intricate makeup rather than expensive purchases.
For those who have a friend with a similar sized body, try and do a costume swap.
When in doubt, DIY
Here a some examples of costumes (group and solo) that we think fit the bill:
Group: Crayons, M&M’s or Skittles, deck of cards or Mahjong tiles, dominos, rock/paper/scissors
Solo: sugar skull/skeleton, any kind of animal that simply requires ears or maybe a tail, tourist (bonus points if you have a camera around your neck!)
Tired of dressing as the same thing every year? A swap is both a great way to refresh your costumed look and it’s also a super sustainable choice! Typically no waste, just reuse.
If you’re doing a swap, it’s likely you have a go-to costume and so does your friend. Some of my costumes pull on prior eras of my life including being a gymnast, construction worker or skier. It’s easy for me to loan my overalls, vest and hard hat to a friend. My all time most successful costume was actually dressing as a candyman! I was young so my mom helped fix candy to my outfit and I looked more or less like a kid with a newspaper route.
Announcing a Webinar!!
Hello hello world! We know the holidays are coming and here at Prosperity we want you to be prepared.
Rachel is putting on a webinar on Monday, November 11th at 7 pm MT to cover financial wellness with a specific holiday season lens. The webinar is $10 and is open to the public.
To sign up, contact Rachel using the Contact tab here on our website or email her directly at Rachel@prosperitypersonalfinance.com