Other Financial Insights Archives

Travel Tips for Your Wallet

February 28, 2024

As the winter season comes to a close, we anticipate the coming of spring and all its joy. Springtime brings with it wedding season and the planning of spring and summer break vacations. My husband and I are in the season of life where we ride the “wedding circuit” each spring and summer. The past two years we have traveled all over to attend weddings, from Houston to Dallas and Mexico City to San Diego. Although we cherish all of the memories made in this season of life, traveling, especially internationally, can be expensive. As a now-seasoned traveler, I have developed some top travel tips to ensure a smooth, enjoyable trip while also being wise with money.

Create a budget and do your research. The first thing I do when planning a trip is put together a budget. Flexibility is a necessity when traveling, but an idea of what you are willing and able to spend is essential in the planning process. Research your destination to discover off-season travel times, which may help decrease the overall expense. I find it helpful to jot down an estimate of potential expenses as I research, including flights, meals, excursions, and transportation. Awareness of the total cost can help you scale back where needed and avoid overspending during the trip. For bigger trips on your bucket list, set aside money for a “travel goal” in savings each month.
Purchase flights wisely. Many travel assistance websites have the ability to monitor flight prices to identify the best time to buy. If you fly frequently, consider signing up for a free rewards account with your favorite airline to accumulate points. Be wary of booking directly with third-party sites such as Expedia; certain airlines do not offer flexibility for missed flights or rescheduling when the flight is booked indirectly.
Book excursions ahead of time. This will allow you to compare costs across multiple different experience groups, choosing the best value for your budget. Paying ahead of time can offer better rates, reduce the hassle, and spread trip costs out over time.
Take advantage of discounts. During a recent trip, we discovered that our hotel offered a percentage discount when booking a rental car through a specific company. This can be a great way to cut costs for a service you were going to secure regardless. Contact your hotel’s concierge service to see if there are any discounts they offer for local activities or restaurants.
Review insurance coverage. Check with your health insurance plan to see what international coverage options may be available, as benefits often differ internationally. Travel policies are available to cover everything from unexpected delays, medical emergencies, and cancellations. Review refundable options with your hotel, excursions, and airline tickets. Evaluate your risks and ask yourself – am I willing to self-insure, or is insurance the best choice?
Choose your credit card wisely. Credit cards can have many benefits abroad but be aware of hidden expenses. For my personal international travel, I prefer using a credit card over a debit card for the extra fraud protection it offers. Find a card that has zero foreign transaction fees and offers attractive travel benefits such as points or miles. Keep in mind what kind of card it will be (Visa, Mastercard, etc.) and choose one that is widely accepted. A credit card’s online app could be helpful to track transactions and contact the bank as needed while abroad.
Bring along cash. It is a good idea to have some local currency on hand when traveling abroad. Plan ahead by requesting a currency exchange at your bank before the trip, or visit a major bank upon your arrival. Avoid exchanging at the airport or standalone ATMs abroad, as they tend to have poor exchange rates and higher fees.

With proper saving and financial preparation, you can experience your trip with peace of mind. Work with a CERTIFIED FINANCIAL PLANNER^TM professional to implement a financial plan and work to achieve your goals.

Published in the Victoria Advocate

Sarah D. Nix is a CFP® professional and Associate Advisor with Keller Wealth Advisors.

Cultivating Love through Finances

February 15, 2024

Love is a verb; it is an action requiring your involvement and active participation. Husbands and wives choose daily if and how to cultivate love in their marriage. One way to cultivate love is by making financial choices that intentionally honor your marriage. Whether you are married or considering marriage, here are some examples on how (and how not) to approach money during marriage.

Before committing to marriage, each partner owes the other a completely honest account of their financial situation. Hiding financial information reveals greater character flaws like impulsiveness, dishonesty, and manipulation and robs your partner from the opportunity to make a fully informed choice. Whether it’s a poor credit score or a large trust fund, laying it all out on the table before you tie the knot is imperative. Once you are married, hiding financial information from your spouse, like additional income or secret debt, is considered financial abuse. Once all the facts are known, you both can work together or separately with a CERTIFIED FINANCIAL PLANNER™ professional and an attorney to hammer out how to approach perceived complications. There are strategies for managing wealth or debt accumulated prior to marriage, or securing assets if one or both of you is a high-earning professional with increased liability. After you both have a clear understanding of what each other brings to the table, you should discuss how you see each other managing your individual and shared expenses during marriage. When discussing whether to combine your income and expenses in one checking account, or to keep your income separate and track who should pay what expenses, keep in mind that Texas is a community property state. Income earned by either spouse during marriage legally belongs to both spouses.

During marriage, cultivate love by having regular discussions about finances with your spouse. It is normal for one spouse to be the “money person,” but the other spouse should always have an awareness of family finances. Provide financial resiliency for your family by establishing an emergency savings account (3-6 months of expenses, in cash). This can literally buy you time to rebound if one of you becomes unemployed or you face large, unexpected expenses. Discuss your collective needs and wants, and prioritize them in a mutually agreed upon order. Work together towards achieving those goals by budgeting and checking in with each other frequently. Saving for retirement together cultivates love through financial security and in hope for the future, so contribute to an appropriate retirement plan and maximize those contributions if possible. You can also cultivate love for a stay-at-home spouse by opening a spousal IRA and making retirement contributions for them. After decades of blissful marriage, hopefully you will both still love each other enough to want to slow down and spend time together, enjoying the fruits of your labor.

When death does you part, you can still cultivate love by continuing to provide financial security. Both spouses bring love to the table through daily gestures that must be picked up when one of you perishes. There are so many vehicles available to you. A simple and affordable term-life insurance policy can provide your spouse the financial security to grieve without fear of major changes to the standard of living he or she is accustomed to. Having key estate planning documents in place (a will, beneficiary designations, directive to physicians) can save your surviving spouse and children from unnecessary confusion, frustration, and anger while they mourn, and make sure that your final wishes are honored.

A CERTIFIED FINANCIAL PLANNER™ professional has tools at their disposal to capture your unique financial situation, visualize your current and long-term needs and wants, develop reasonable financial strategies, and monitor your collective progress during marriage and thereafter. If you haven’t already, say “I love you” this Valentine’s Day by cultivating love through financial planning.

Published in the Victoria Advocate.

Hannah Gohmert is a CFP® professional and the Chief Compliance Officer of KMH Wealth Management, LLC.

New Year’s Resolution Roadmap

January 15, 2024

The new year is upon us, and with it comes the annual ritual of setting resolutions. We vow to exercise more, eat healthier, learn a new skill, or save more and spend less. But as January fades and February arrives, many of us find our good intentions falling by the wayside, and gyms empty to their pre-resolution crowds. Why is it so hard to stick to our resolutions? And how can we increase our chances of success?

I believe the answer lies in creating a New Year’s Resolution Roadmap. Like many of us who returned from our holiday travels in the last month, navigating a successful trip requires planning in advance, realistic milestones, and a roadmap.

Step 1: Define Your Destination
What do you truly want to achieve in the coming year? Be specific and avoid vague resolutions like “get healthier” or “save more money.” Instead, set SMART goals that are Specific, Measurable, Achievable, Relevant, and Timely. For example, instead of “get healthier,” aim to “exercise for 30 minutes, three times a week.” Instead of “save more money”, aim to “increase my emergency fund by 10% within the next six months.” These quantifiable objectives provide clear mile markers and a sense of accomplishment as you cruise toward your ultimate destination.

Step 2: Identify Your Roadblocks
Every driver encounters roadblocks. What has prevented you from achieving your resolutions in the past? Be honest with yourself about your weaknesses and temptations. Recently I found myself disappointed that I often have been missing my gym goals. To counter that, I set a daily alarm to remind myself to go to the gym. Do you struggle with impulsive spending? Lack of motivation? Unhealthy eating habits? Once you identify your roadblocks, you can develop strategies to overcome them.

Step 3: Choose Your Route
There is no one-size-fits-all approach to achieving your goals. Experiment with different techniques and find what works best for you. For example, when it comes to budgeting, some people prefer a spreadsheet, others prefer a mobile app, and even others prefer pen and paper. Do what works for you so that you can stay motivated along your journey.

Step 4: Fuel Up for the Journey
Just like a car needs fuel to reach its destination, you need the right resources to power your resolutions. Surrounding yourself with people who believe in you and are working on similar goals can help you stay motivated and accountable.

Step 5: Enjoy the Scenery!
Take time to appreciate your progress and celebrate your accomplishments. Reaching your goals is a marathon, not a sprint. For instance, I always enjoy a small reward after working out or achieving my financial goals. Celebrating your milestones with small rewards can keep your motivated to continue on your journey.

By following these steps, I hope you can increase your chances of success in your new year’s resolutions. Just like a trainer can help you achieve your fitness goals, a CERTIFIED FINANCIAL PLANNER™ professional can be a great resource to have to help you set, monitor, and achieve your financial goals. Happy New Year!

Published in the Victoria Advocate

David Faskas CFA, CFP® is the Chief Investment Officer, Chief Financial Planning Officer, and a managing member of KMH Wealth Management, LLC.

Travel Tips for Your Wallet

Cultivating Love through Finances

New Year’s Resolution Roadmap

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