• Welcome

    Welcome!

    Welcome to Face the Fear!

    We are Nicole Ellsworth and Kaitlyn Duchien, two motivated millennials on a journey to face the fear of our financial future.

    We created this safe space where we will dive into topics like retirement, budgeting, student loans, investing, insurance, financial terms, etc. We are passionate about educating ourselves and others in the process. Join us as we change the conversation around finances and approach our future with confidence.

    If you like us, follow us here, Facebook, Twitter, Instagram and subscribe to our podcast: Face the Fear. (Social media links are on the top right of this page.)

    *Disclaimer: We are not here to give legal financial advice. We highly encourage you to bring the topics we discuss to a financial professional, who is qualified to address your specific financial goals.*

    It’s time for some real talk, and we are so excited that you are here to join us!

    Until next time – Face the Fear!

    Nicole and Kaitlyn

  • Credit Cards

    Credit Cards: The Good, The Bad, The Ugly

    Credit cards. A number of different images may flash through your head when you hear those two little words. Do you picture yourself freezing your card in a block of ice? Putting it through a shredder? Lighting it on fire?

    Or do you see yourself casually strolling out of a store, shopping bags in hand, feeling elated about all the fabulous things you just bought and didn’t have to pay for…(yet)?

    Either way, credit cards are a polarizing topic that seems to divide people faster than Donald Trump’s tweets. Some people equate credit cards with financial disaster and endless debt. Others view them as a way to build credit and save money through cash back and perks. Personally, I fall somewhere in the middle of the spectrum. Here’s a few of my own pros and cons of credit cards that will (hopefully) help you decide if owning a credit card is a good financial decision for you.

    Let’s start with the bad news first.

                Con #1: CREDIT CARDS CHARGE INTEREST – LOTS OF IT!

                You’re probably thinking, “DUH.” But, let’s just say it like it is. The #1 reason why credit cards have a bad reputation is the high interest charged on unpaid balances. Even though most people know credit cards can charge high interest, many overlook the details. For example, exactly how much interest is your credit card charging? When does interest begin to accrue? On what amount does the interest apply? Does your credit card offer a grace period? All of these details can be found in the fine print, usually in confusing legalese than can make you feel like a chimpanzee trying to do calculus. In summary, the best way to avoid interest altogether is pay your full credit card balance on time every month. If you don’t, you’ll be that chimpanzee trying to do calculus to figure out how in the world your $200 new TV (it was such a great deal!) ended up costing you $500 (OUCH). 

    (Also, side note, there is a myth floating around out there that you need to carry a balance on your credit card and pay interest in order to earn good credit. This is absolutely false. Carrying a balance may hurt you, not help you. That’s all. Carry on).

                Con #2: Credit Cards Can Be The Gateway Into A Deep Dark Debt Hole

                Credit cards can be the gateway drug into a seriously dangerous debt problem. Why? Because they are so easy to obtain and so easy to use. Here’s a personal example for you. When I started my first job out of college as a social worker, I was making about $32,000 per year. I signed up for my first credit card and was given a credit limit of $4,000. Wow – $4,000! That’s a lot of cash! My credit card company must think I’m really responsible…

    HOLD UP. Let’s do some math: Say my hypothetical take-home pay (after tax) was $28,000 annually. $28,000 / 12 months = $2,333 net monthly income. With a credit card limit of $4,000, I could choose to max out the credit card in the first month, buying a $4,000 all-inclusive vacation to Hawaii. Aloha to me!

    The problem is, in order to pay the balance off, I would have to use my entire $2,333 paycheck over the next few months to pay off the full credit card balance. This is nearly impossible, because I would have no extra cash left over to pay for rent, food, transportation, clothes, or anything else for that matter. As a result, that remaining unpaid balance gets carried over from month to month – and is charged interest in the meantime. And that, ladies and gentlemen, is why credit cards can be a gateway drug. Easy to obtain. Easy to use. Easy to spiral out of control.

                Thankfully, I didn’t fall into this debt trap. I never used more than 25% of my credit limit and made sure I could pay the balance in full at the end of every month. Ironically, because I was using my credit responsibly, I received about five credit card offers in the mail every week and was offered a credit limit increase. All of this is great until too much of a good thing becomes a bad thing. It can be easy to become addicted to borrowing money – even if you are responsible with paying it back. Having $10,000 in debt and a great credit score is still not as good as having no debt at all. 

                Con #3: Credit Cards Aren’t Necessary

                That’s right. You don’t need ‘em. In today’s culture, having a credit card is equivalent to having a cell phone. If you don’t have one, you’re living in the dark ages. But in reality, you really don’t need a credit card – especially if you’re able to build up credit through other sources, like student loan payments. Side note: credit cards + social media = disaster waiting to happen. Why? When we constantly see posts of people taking luxurious vacations, buying a new home, getting their dream car, or wearing designer clothes, we often (even subconsciously) feel like we’re missing out. In order to “keep up with the Jones’,” we swipe our credit cards to pay for a lifestyle we can’t afford. Guess what. A lot of people who appear to have it all on social media may actually be drowning in debt to keep up with the image they want to portray. Don’t fall into that trap. (Okay, I’ll get off my soapbox now. Thank you for coming to my TedTalk). 

    And now for the good news:

    Pro #1: Credit Cards Help Build a Good Credit Score

                This is true – IF (and that’s a big IF) you diligently pay your full balance each pay period. And, as stated in Con #3, you really don’t need a credit card to build up your credit score. Other methods of building credit include paying off student loans, getting a secured loan or secured credit card (backed by your own pre-deposited money), or becoming an authorized user on someone else’s credit card (ideally someone with good credit history). In fact, I would argue that building credit through one of these methods is a much safer option than diving head first into an unsecured credit card. 

                As a disclaimer, here is my personal story. I graduated college without any student loans, and I will remain eternally grateful to my parents for their sacrifice to make that happen. As a result, I vowed to never put myself into unnecessary debt, since my family worked so hard to keep me out of it. But, this also meant I had no credit to my name. I started with one universal credit card with no annual fee and some small perks. I only used this card for a few designated expenses, like rent and gas, so my spending wouldn’t get out of hand. Over the next couple years, I paid this card on time each month and also added a couple store cards as well. I was able to build a solid credit score in a relatively short period by consistently paying the full balance, using different lines of credit, and keeping my credit limit usage under 25% at all times. BUT, this is my personal story. It is not the universal solution to building credit. Find a method that works best for your personal financial situation. 

                Pro #2: Credit Cards Provide Points and Perks

                If I’m being honest, this Pro could also be a Con. Here’s why: while most credit cards offer some incentive for use (like cash back or airline miles), the benefits may not outweigh the expenses. For example, if you have an airline credit card with a $100 annual fee, but you only take 2 flights per year to earn $50 in airline miles, then you really lost money by using the card (especially if you were charged interest on unpaid balances from month to month). Make sure if you’re purchasing a card with an annual fee, you calculate whether or not the annual fee will produce enough benefits to justify the cost.

    NerdWallet has an excellent credit card comparison tool to help narrow down which credit card will be the best fit for your lifestyle. (#NotSponsored). In fact, I used this tool to find my first two credit cards, based on my spending habits, credit score, and desired benefits. One of the cards I decided upon is the Amazon Prime Visa card (Again, #NotSponsored. But, Amazon, if you wanna slide in my DMs…)

     I already buy the majority of my essentials on Amazon, everything from dish soap, to cat food, to breakfast bars. By using the Amazon Prime credit card to make these purchases, I also earn 5% cash back on these transactions and 1% back on everything else. What makes this really valuable is, nearly every time I go to order some of these essentials Amazon, I have anywhere from $5-$25 cash back to use toward my purchase. Again, this is what works best for me, but it may not be the best fit for you. Try out the NerdWallet calculator to find your best credit card fit. 

                Pro #3: Credit Cards Teach Financial Discipline

                Just because you could eat a whole box of donuts in one sitting doesn’t necessarily mean you should.

    Similarly, just because you could spend your full credit limit in one month doesn’t mean you should. Using credit cards effectively requires discipline and discernment. Many people get themselves in deep debt trouble when they begin to disassociate their actual cash money from the motion of swiping their credit card. In other words, it’s easy to forget about the pain of paying for purchases when you have the ability to enjoy something instantly without paying a single penny upfront. Credit cards themselves are not the enemy. It’s the emotional and psychological response of purchase without pain that gets us in trouble. The good news is, we have the ability to acknowledge the mental pitfalls of credit card usage and shift our mindset to avoid them. Here’s a rule I personally follow to keep my finances in perspective: I never make a credit card purchase if I don’t have enough money in my checking account to cover it immediately. Credit cards make it easy to spend money we don’t have, but they don’t need to lead to financial ruin. A shift in mindset and a healthy dose of discipline is all you need to make sure your credit cards are working for you, not against you.

    **P.S. If you read this and thought, “Well, shitake mushrooms. I’m already up to my eyeballs in credit card debt. Now what?” No fear! We will be tackling debt reduction planning in our future content very soon!

    Written By: Kaitlyn Duchien

    Contact Us: facethefearfw@gmail.com

  • Podcast

    Face The Fear Podcast – John Redmaster, CFP – Where should Millennials put their money first?

    John Redmaster, Certified Financial Planner and fellow Millennial, joins us to break down where Millennials should focus their money first. Should we pay down student loans or credit card debt? Save for a home? Invest in a 401(k)? Build up an emergency fund? John helps us find answers to these questions and more on this week’s episode:

    • What tips would you give to Millennials who just graduated college (or are several years into the workforce) who feel like their student loan debt is unmanageable?
    • Since you have the CFP designation, can you explain a little bit about what exactly that designation means and why it may be important to consider when seeking a financial advisor?
    • What can Millennials do TODAY to get their finances on track?

    Financial Focus Website:
    https://www.financialfocusonline.com/

    Don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

    YouTube: Face The Fear

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    Twitter: Face_The_Fear

    Advisory Services offered through Investment Advisors, a Registered Investment Advisor and Division of ProEquities, Inc. Securities offered through ProEquities, Inc., a registered Broker/Dealer and member FINRA/SIPC.  Financial Focus is independent of ProEquities, Inc. Ash Brokerage and its affiliates are not associated with ProEquities.

  • Insurance,  Retirement Planning,  The Market: 101

    CFP – Certified Financial Planner

    On an upcoming podcast, to be released on Friday, July 19th, we will cover a few new terms! In preparation for this podcast, we wanted to link a quick article that explains what a CFP, or Certified Financial Professional is. You’ll hear our guest, John Redmaster, explain why it’s important to work with a CFP in planning out your long-term goals.

    Click here to go to Investopedia’s definition of a CFP!

    Here is a link for you to check out a CFP that you are considering working with: CFP Verification

    Happy reading and don’t forget to tune in on Friday, July 19th for a new podcast!

  • Podcast

    Face The Fear Podcast – Guest: Jordan Bell – The Good People Podcast

    On this podcast episode we sit down with Jordan Bell from The Good People Podcast. We have a heart-to-heart about millennials, finances, life experiences and what Jordan’s podcast is all about. Join us for a fun conversation and get to know us a bit more! PS – Hi Jordan’s mom! 🙂 

    Don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

    YouTube: Face The Fear

    Instagram: @Face.The.Fear

    Facebook: Facebook.com/FaceTheFearFW

    Twitter: @Face_The_Fear

    Link to Jordan’s Podcast:
    https://soundcloud.com/thegoodpeoplepodcast

  • Podcast,  Retirement Planning

    Face The Fear Podcast – Father’s Day Chat with Darrell and Allison Perry

    On this special Father’s Day episode, we chat with Darrell and Allison Perry, a father-daughter duo! We hear from Darrell, the father of Allison on how he raised his two kids, advice he has given them in regards to finances and how that influenced Allison so far in her life. You won’t want to miss what they have to say!

    And if you like us, don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

  • Insurance,  Podcast

    Face The Fear Podcast – Jenny Crabill, Life Insurance

    On this episode of Face The Fear, we break down the basics of life insurance with Jenny Crabill, a fellow Millennial and Advanced Life Insurance Case Analyst. Here are a few of the questions Jenny helps us answer:

    • What exactly is life insurance & why is it important?
    • Why do I need life insurance now if I’m young, healthy, and don’t have anyone depending on my income?
    • When is the best time to buy life insurance?
    • How much does life insurance really cost?
    • How do I purchase life insurance?

    LifeHappens.org

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

    Don’t forget to subscribe and leave a review! XOXO

  • Budgeting

    Save Now, Live Later

    “It’s just money, you’ll make more,” is a fairly common phrase used by today’s millennials. In a world of instant gratification and two-day shipping, self-control has become nearly obsolete. We hardly bat an eye to make one click purchases or drop $300 for front row concert tickets, but putting money into a 401k or even a savings account seems like a total waste. At the ripe age of 23 I don’t have too many friends who are planning for retirement or even trying to save at all. While I do realize saving in your early twenties for something that seems like it will never come is hard, confusing, and completely overwhelming. However, being able to discover the importance of saving now versus later can impact many years of your life.

     For starters, let’s take a look at what now vs later actually looks like.  If you were to start saving at age 22 for retirement you probably wouldn’t have a ton of extra money to put in, but a little goes a long way. For example: you are 22 years old making $30,000 a year. If you were to put $225 per month (6% of your paycheck + $0.50 company match) at a 9% annual rate of return, it would give you $1,547,602 by the age of 67. That is not changing your contribution at all and assuming you started with $0 in your 401k account. Now let’s look at a 35-year-old making $60,000 a year. We are going to give them a $5,000 starting 401k balance and contribute amount of $450 a month until age 67. By the time they retire, they will have $1,044,338. In this scenario, the 22-year-old is going to retire with $500,000 more just from starting early! They were making less, contributing less, and starting with less, and still came out on top. Imagine where you could be with an increase in salary and a higher contribution amount each year. For the final scenario, let’s combine these two people. If the 22-year-old saved their $225 per month until age 35 and then their $450 a month until age 67, they would retire with $2,030,350.

    Time truly is money and these scenarios show the importance of beginning now. To run scenarios of your own, Dave Ramsey has a great online calculator which can be found at https://www.daveramsey.com/smartvestor/investment-calculator.

    Now after reading that, I am sure everyone is wanting to retire a millionaire, because… who wouldn’t want that? However, it’s a lot easier said than done. Finding the motivation and discipline can be a tough obstacle to overcome. Here are just a few tips to find your money motivation. The biggest thing is to surround yourself with it. Talk about, think about it, get excited about it. Grab a calendar and write out goals for where you want to be and when. Make short term achievable goals and stick to them. When you fall behind and don’t reach your goals, go back and write them again. Just keep doing this until it becomes a habit. Also, surround yourself with people who are wanting the same things. Being surrounded with friends who spend money as quick as they get it will make it that much harder to stay disciplined. Make sure to take advantage of any resources available to you (for example, everything Face The Fear has to offer!!). The more knowledge you are able to obtain, the better. One of my favorite things to do to motivate myself is to listen to Dave Ramsey’s podcast. Hearing about other people overcoming their debt and saving big is a great way to motivate yourself to do the same. So start now, don’t give up, and get rich.

    Article Written By: Sydney Ford

    Disclosure: The numbers given above are examples and are not guaranteed results and the company match varies by company.

  • Podcast

    Face The Fear Podcast – Mother’s Day Money Talk ft. Becky Rogers & Robin Schuller

    On this special Mother’s Day episode, we do some girl talk with Becky Rogers and Robin Schuller, two of the coolest moms of Millennials that we know! Becky and Robin share the financial secrets they wish they’d known when they were in their 20s and 30s, as well as the advice they’ve given their Millennial children about managing money. If you want to find out how to slay your financial goals, stay tuned!

    And if you like us, don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

  • Podcast

    Face The Fear Podcast – Matt Erpelding, Estate Planning

    In this episode, we dive into Estate Planning 101 with Matt Erpelding, Director of Advanced Markets at Ash Brokerage. Think that Estate Planning is just something that rich people need to do? FALSE! 

    Here are a few of the questions Matt helps us answer:

    • What is estate planning and why is it important?
    • What are the differences between a trust, will, and estate?
    • What is a Power of Attorney?
    • When should someone start to create an estate plan?
    • How should Millennials start the conversation with their parents and family members about estate planning?
    • Where can someone go for guidance when creating an estate plan or will?

    Contact Us: facethefearfw@gmail.com

    Don’t forget to subscribe and leave a review! XOXO