Category Archives: Tips & Tricks

Looking Forward

Pay Yourself First !!!!

This is a must if you are (or want to be) a serious saver!

Try for 10% of your pay, but if that’s not possible yet then try for 9%.

The idea is to save as much as you possibly can from your paycheck before you start to pay your expenses.  This will mean that while your savings is growing, you are being more careful with what you have left to spend on essentials.

Keeping your savings accounts separate is essential too.  It will keep you focused on what you have saved in each (as they all will need to be at different levels).

You’ll have to decide what your plans are for the future (at least the next 5 years), and what you’d need in money to get to those goals.

You may want to save for college or a home or car…. and don’t forget a retirement account (that time of your life creeps up much quicker than you think)!

Whatever your goals, start saving…… seriously saving.  You have only you to depend on to do this.

It is why you need to think ahead…. set goals….. and start saving to make those goals reality.

Breathe, Breathe Again…..

Relax a bit before the New Year.

The past 21 months has been like no other for us. Although we’ve had to keep moving forward with our lives, so much more has been tossed at us…. and yet, we seem to be dealing with it.

Many have lost family members, close friends or have been sick ourselves.  Anxiety and depression has crept into our lives.  The thing is we have no control over the pandemic or what others do or don’t do. That said, what we can do is concentrate on our own health, and if there are family members we can help, then do so.

Take a break…… relax….. breathe…… count to 100….. think of a place you’d like to be if you could…. do some yoga…… meditate…..anything that will calm you for at least a few minutes.  Do this once an hour (more if needed).

The idea is to just ‘get away’ from the everyday necessities for a few minutes here and there throughout the day.  We all need this escape.  We do.

You are important. Your health is important. Take care of you

Extra Money From Gifts?

What will you do with that money gift?

The holiday season is here and all the hustle and bustle of shopping for gifts for those who are close to us.  But sometimes, a gift of money is easier for the giver because of the inability to get around, or the very valid reason ‘I don’t know what they’d like’.  So, they give a money gift.

Will you head to the Mall?  Or peruse the internet for things you think you need?

Think again….. do you really ‘need’ whatever it is you’re thinking of?

How about adding it to one of your savings accounts?  Even a $25. cash gift is a great addition to your savings. Every penny counts.

So, make it a rule…. whatever amount you have at the end of the week (after paying your bills), put aside and add it to your savings.

If you do this continually, you’ll be very happy to watch the bottom line grow.

 

 

Year End Financial Organizing

Checks and Balances…..

Hopefully, you were able to eliminate all (or at least some) of your outstanding debt. Doing so will bring your Credit Score up, which means that you are more likely to qualify for a car loan or mortgage, or secure that apartment before someone with a lower score does.

And, of course, …… you have peace of mind knowing that your bills are caught up and you don’t have those dreaded balances and finance charges to deal with any longer.  A good feeling.

Kudos to you if you’re all caught up…. with zero outstanding debt on your credit cards. And if you’re still whittling them down, keep doing that…. they too will be a zero balance.

Now is a good time to skim over your budget. Tweak anything you can so that you can put more into your savings…..

Remember to keep your savings accounts separate so you can easily check to see what is in each and where you could add more.

You need that Emergency Account…… at least $1,000.  But preferably $2,000. or $3,000. to cover any emergency that may arise (and they do)…… If it’s there, you don’t have the added worry of “How am I going to pay for that???”  If you do have to use it for an emergency, remember to replace it as soon as possible so it’s always available.

The 6 – 9 month Income Reserve Account……  It may sound ominous, but it can be done….. because if you are suddenly out of work with no income, this is the account that will see you through until you can get back to work.  It will cover only the absolute necessities…. rent/mortgage, utilities, medical, car loan, food…..   no take out, or eating out, no entertaining, live on what you have and live frugally.  You will be glad you did. And this would have to be replaced if it were needed…… so replace any portion of it that was needed as soon as possible.

The Retirement Account….. put as much as you possibly can ….. maybe 5% of your income into an IRA, a Roth, or some other type of Retirement account so it can stay there and gain interest until you retire, or at least age 59 1/2.  This is crucial as you can only depend upon yourself for your retirement income as Social Security may not be available for you.

How well you budget will show up on the totals of these accounts.  You work hard for your money, so don’t waste it spending frivolously.

 

Simplify Your Home

A less cluttered home means a less cluttered mind.

As you prepare your home for the holiday season it’s a good time to toss out old or tattered decorations… if not packed away properly after use, they tend to get crushed or broken.  Anything you no longer use (or want), get toss or give away. When you take it all down after the holidays, only keep what you truly love.

The next thing to tackle is the kitchen…. duplicate gadgets or rarely or never used small appliances….these take up lots of space and if only used once (or never), it’s time they go too. This give you more cabinet and drawer space…which gives you easy visibility into the space.

The closet…. If you haven’t worn an item in 2 years (would be 1 year normally, but with the pandemic we all dressed a bit more ‘at home casual’). Also, if it doesn’t fit properly, time to donate it.  Don’t wait for the weight loss rule….let it go.  And if you don’t love the item on you, let it go too…even if it fits. If a relative or friend is your size, and they clear their closet, maybe a clothes swap could be a fun way to get together.

Footwear…. Don’t keep any that you can’t wear all day long in comfort. If your feet hurt when you wear them, don’t keep them.

Having a less cluttered closet keeps what you do keep pretty much wrinkle free when hanging, because there’s a bit of space between each item.

Rooms… If you’re not a good housekeeper, you really need to de-clutter. Nick-knacks need dusting, so pick a few favorites and put only one or at most two things on a table (besides the lamp). You can switch things around to another room where you can enjoy it there and change out the decor. Sometimes the item is more noticed when you put it in another area. The idea is to keep it simple and airy looking.

The idea is to use what you have…… don’t re buy… save the money you’d be spending on new items and watch it grow.

 

 

Entertaining?…. Keep It Simple

Holiday Gatherings……

Getting together with family and friends is not only important, but fun too.

There are always times in life when family members can and do clash….it happens with friendships too.  This is very normal and, honestly, we don’t always agree with what someone says or thinks,  or how they act, or live their life.  It would be a pretty boring world if we were all the same.

And so, what we should do as human beings is, if you disagree with someone….and you will…. just agree to disagree and move on to the next conversation. We live in a free society and have thoughts and ideas of our own.

Sometimes family gatherings are only 2 or 3 times a year, maybe a summer bar-b-que and then maybe twice around the holidays. If there is someone you clash with, say hello and goodbye and maybe a short conversation between.  And remember, people change (you do too), so unless they’ve hurt you in a terrible way, be the bigger person and start the conversation.  If it’s going the wrong way, just walk away.

Check with the hostess ahead of time to see if there is something particular they’d like you to bring….. a dessert, casserole or a bottle of wine…..  Some will say “We’re all set”, but bring something…. maybe a pretty smelling candle…..  Any will be welcome and will help with the cost of entertaining.

No matter what situation you’re in in life…. school, work, family gatherings, groups of friends…. there is always one person you don’t like or can’t agree with…. and it works both ways….you may be that person for them.

So as the holidays approach….. remember to keep in touch with family and friends….

If you can’t physically get together, call or text….. It’s important…… and life is short, don’t have regrets. Even if you know that person is at a gathering, it will surely mean the world to them hearing from you!

Happy Holiday Season!

Gift Giving Options

How you can cut back on gift giving…..

To give and receive a gift is always nice…. it shows the recipient that you appreciate them, what they mean to you, or your appreciation for how they’ve treated you are some.

To receive a gift is a good feeling because it shows how someone appreciates you.  This is all good…… but can be expensive.

Add up all the gifts you give during the year,…. Birthdays, Christmas, Weddings, Showers, New Home, New Baby, Anniversaries, and the list goes on. And, as nice a gesture as it is, it can, get out of hand.

So, don’t pretend you can keep up with all this…… it will put you into debt.

The better plan is to cut back.  Be the person that starts the gift giving conversation with family and friends…. and, surely there will be some sighs of relief it was brought up.

Some ideas are to do a grab at Christmastime….. With an agreed set price point for a gift,  put names in a hat….. each of those who want to, and can, put their name in and draw a name from the hat.  Then, buy a gift for that person only.  This can also be done long distance….. with one person who will add the names to the hat and with a list in hand, draw a name, writing the drawn name next to the first on the list, then the second and so on.  Then either get together, or mail the gift to the recipient.  Each person gives and gets a gift!

Birthday gifts can be  given up to the age of 18.  And children’s parties can be limited to special friends of the child rather than the whole class.

Wedding, showers etc can be given, but set a price limit for each. And Anniversaries can be a nice dinner out.

And remember, its’ always nice to call and wish them well on the special day, or send a card for the occasion….. The idea is to remember the day, and enjoy the giving….. not to worry about how you’re going to pay for the gift.

 

 

Is Buying a House In Your Best Interest?

Buying vs Renting……

Your dream may have always been to buy your own home, but with how quickly the world is changing now, it may have changed a lot of reasons not to…..

However, in the end, you still may fulfill your dream….. just put some extra thought into it first.

Climate change has affected areas where you may have wanted to buy your dream home….. fires, floods, hurricanes, tornadoes, earthquakes etc. have always been….. but they are all getting more severe and more frequent.

Homeowners insurance for these catastrophes costs an astronomical amount of money each year as you renew. And, in some cases, insurance companies have lost so much money in paying out claims that they no longer will insure for certain things Mother Nature doles out.

This means that, if you can’t get or can’t afford the insurance protection for such things, and your home suffers damage because of coverage you don’t have, you pay for all the replacement/repair costs of the damage.  Or even worse, should your home be completely destroyed, you lose everything.  This, sadly, has happened to a lot of people.

So, if you still want that dream home, by all means go for it.  Just do your homework and check out areas where these storms are frequent, (although you never really know as none of us has a crystal ball), and maybe choose a home in another area, and visit your favorite spot on vacations or mini getaways.

 

You Are The Boss Of Your Financial Future

If you ever wanted to be the boss…. now is the time.

You are in charge of what and how you spend, and how and how much you save.

How you do this, how well you do this will matter down the road when you retire.  So, the sooner you start and how you handle your budget matters greatly.

Set up a workable budget…. and stick to it.  As soon as you find you’re sliding off the budget, find out where, fix the problem, and get back to strict budgeting.

Budgeting means first setting aside income for necessities …. savings, rent/mortgage, insurance(s), food, medical, utilities, car loan etc.

It, however, does not mean eating out or take out (home cooking is far cheaper), or entertainment costs (drinking, movies, etc).  You can still entertain at home with some relatives/friends where they each bring something for the menu.  This will, surprisingly, be as much, and usually more fun than going out on the town.

Cutting back on gift giving (or at least the amount of each gift), will bring a sigh of relief to most. Maybe a grab, where a price is set for one gift. Each person gives and gets a gift at far less expense than a giving a gift to everyone.  All this is easy and doable.

Avoid late fees and finance charge fees on your credit card(s) by only buying what you know you can pay for…in full…when the bill comes in.  The fees you’d pay on a credit card is money that could be put into your savings accounts…..

These are only a couple of ideas, and surely you can add more.

Pay yourself first…… Set money from your income aside for savings….. an Emergency Fund, a 6 to 12 month Reserve Fund (should you be out of work),  and a Retirement Fund(s).

If you pay yourself first, you will always be sure of having savings ready when needed.

 

 

 

“Refinance” Without The Hassle Or Fees

For those who are disciplined…..

Mortgage refinance comes with somewhat of a hassle and a cost to do so.  That said, if you are disciplined, you can ‘refinance’ on your own.  Although it’s really not considered refinancing, in the end, you do lower your interest rate while you do it, as well as saving mortgage interest cost (depending on what you are paying toward principal.

How it works……   Pay towards the ‘principal only’ on your own.  Decide on a sum of money and call your mortgage lender telling them to put the amount you choose towards principal only.  Doing this, will, in theory, will for that time frame drop your interest rate, and save you the interest you’d be paying for that time frame by bypassing those months you’re paying off with the amount of money you’ve chosen.

You can either pay say an extra $100. a month each month for a year, or make a one time payment of $1,200.  Always remember to say you’re paying it towards ‘principal only’.

Any extra amount you pay towards principal only during the life of the loan, will not only lessen the amount of time on the length of the loan itself, but it will also save you the interest of the amount you choose.

Another way to shorten the length of the loan is to make bi-weekly payments.  This means you pay 1/2 of the mortgage payment every 14 days.  However, you must be very disciplined to do this).

How much you save in interest as well as how much you lessen the length of your loan depends on the amount of your loan, the length of the original loan, and the interest rate.

It would be wise to check with your mortgage lender and ask them to explain it for you.

It only takes a phone call and a few minutes of your time.  Well worth it.