Category Archives: Tips & Tricks

Are You Living Paycheck to Paycheck?

You need to redo your budget….

Sometimes we think there’s nothing else I can take away….. but if you scrutinize your budget, there’s always something you can do without or at least trim back…..   We know the essential expenses…. rent/mortgage, heat, light, phone, medical, gasoline are the necessities which are there every month.

But the other things, cable, gift giving, eating out, getting coffee, lunches, take-out suppers, and even some groceries can be cut back. Some completely, and others sporadically.

Make coffee at home, and put it in a travel mug, make lunches from leftovers and enjoy them. Cook easy quick meals and save $$ on take-out dinners. Stop buying bagged snack items…they’re expensive and one can go through a bag without even thinking. Cut back on your cable bill, probably even drastically as there are so many cheaper apps with tons of programs to choose from. If you take walks or exercise you can do that instead of sitting watching TV, and it’s better for your health.

Cut back or cut completely gift giving. As nice as it is to give/receive gifts, if it’s cutting into your budget and paying your bills and saving, then it’s time to cut back on them. If you really think you need to give a gift to someone special, then have them over for dinner with a special dessert, or make muffins they can bring to work.  Or if your crafty, make something you made especially for them.  Any of these things will be much appreciated (and they may also need to cut back and didn’t want to say).  People do understand even if you just say your budget needs some trimming.

The essential thing is to pick your budget apart, and cut back every dollar you possibly can. There will come a day when you’ll be retired and you’ll say to yourself “I wish I saved something from every dollar I got”.

Start saving now, as much as you possibly can.  Be disciplined and it will become a habit.

What are Your Goals in Life?

Figuring Your Goals and How You Pay for Them….

We all have goals…. purchasing a home, travelling, buying a car, college, a wedding etc.

These all cost money, and that said, we should start saving for our goals.  Organization of saving for different things is important and the simple way to do this is separately.  Open bank accounts and each paycheck add something to each.  This way, you see where you are with the amount you’ve saved versus the amount you need for a particular goal.   It will also prevent you  from using money intended for a particular goal and when you need it, it’s not there….aka: robbing Peter to pay Paul.

A good idea is to put you goals in order of importance….. and of course, sometimes plans change and the goals can (and should) be shuffled around.  The idea is to add to each ‘goal account’ every paycheck…. direct deposit is a good idea as it will automatically be deposited and ‘what you don’t see, you don’t miss’.

The important thing is to save….. every penny counts….. It’s Common Cents!

Teens … Learn the ABC’s of Money

Common sense steps that will carry you through life

Two things to remember always are: Pay yourself first, and… Don’t spend what you can’t pay for.

If you start doing this as soon as you begin handling your own money, then you should be okay all along.

A…… Always pay yourself first.  That means when you receive money from working, gifts, etc., set some of it aside and put it in a savings account.  If you do this each and every time, it will become a habit and you’ll see your savings grow. It’s common sense.

B ….. Budget.  If you learn to budget now, it will become second nature…a good habit.  If you don’t have the money to buy something, you can’t get it.  You can set part of the money you have for that special item, but until you can pay for it in full, don’t get it.  It’s called budgeting or ‘living within your means’….  and … it keeps you out of debt.

C….. Common Cents. Save every penny you can. They add up and every penny counts.  You will never regret doing so.

Budgeting as a teen is easy and it will teach you the concept of how to budget as an adult.  The items within the budget may differ, but the end result is the same…. You can’t spend money that you don’t have.

As a teen, you may receive a money gift, and it may be a partial payment for something you’ve been wanting/needing for a while. Even so, try to put a little of it into savings and use the rest for the coveted item.

If you have a part time job, you probably get a paycheck each week.  This is the money you should absolutely learn to budget.  The following are probably the categories you’d need, but you can adjust them to suit what you need. Make a list of how you split your money up.  Start with savings.

You may have to give a little towards what was always referred to as ‘room and board’….that means you help pay towards what you eat and where you sleep.

If you drive, you probably need to pay for at least a portion of insurance. And don’t forget the gas tank…if you use the car, you need to fill it with gas.

You should also set a little aside and holding that money out for things you may want or need…. such as a new phone, sneakers, sweatshirt etc.  Paying for some of your things gives you pride in the fact that you’e capable of doing that yourself.  This ‘set aside money’ will also be for when you’re out with friends, you can get a burger or pizza.

The money you put into savings should stay in savings….. for ‘a rainy day…way down the road’. Once you have at least $10. set aside for savings, open a savings account at a nearby bank. Most banks don’t charge any fees for those under age 18.  Take a few extra deposit slips home, and each paycheck, when you go to the bank to cash your check, fill out a deposit slip so you can deposit money into your savings account immediately…out of sight, out of mind.

If you don’t have anything on your wish list, then set some money aside and add to it for when the time comes that something special comes on your wish list…. you will have all or at least some of the money already set aside.

Saving something from each paycheck, by paying yourself first is common sense. And budgeting is easy.  Every penny counts…it’s Common Cents!

You can do this!

 

 

 

 

 

Is Buying A Home In Your Future?

What you need to know…and do….beforehand.

You want to own your own home someday.  A dream of many.  You need to know what is expected of you first.

You will need a down-payment of 20% (or more) of the cost of the home you’re choosing. You will also need approximately $5,000-7,000. for other costs associated with the closing: home inspection, legal fees, title, Homestead Act, etc.  All necessary to complete the transaction.

The 20% (or more), is the down-payment figure used, because if you put less down, you will have to get Mortgage Insurance (which will have to be paid monthly until you reach your 20%. The home inspection cost (approximately $500.) is for your protection. A registered home inspector is hired by you (before you actually purchase the home), and he/she goes through the house thoroughly and lets you know what needs to be repaired/replaced now or in the near future and approximate cost for each.  This now gives you the opportunity to ‘back out’ of the deal If there are costly repairs coming up, that may be out of range of your budget.  Or, you could negotiate with the sellers to either make repairs or deduct money from the price of the home and you will handle the repairs on your own.

The closing costs are just that…. costs at the time of closing the deal.  You should have a lawyer, and he/she will draw up papers and go to the Registry of Deeds to register the purchase/sale.

So that is where the figures of at least 20% plus legal costs fits in.

Now, do you have a few thousand dollars (for a lawnmower, some plants etc or if you want to paint the living room or kitchen?  This would be a good idea too.

It sounds ominous, but truly it’s doable.  Be disciplined about saving and you’ll get there.

And when you have the money you need set aside, then shop for the best rate on a loan and a reputable mortgage lender.

Soon To Be A Couple?…..

One income becomes two…. What You NEED to know first!

Before you become a couple for life, talk finances!!  If you don’t, it is a guarantee that the subject will come up down the road, and then…. It’s too late!

If the relationship is getting serious, NOW is the time to bare all….. finances, that is.  Before you tie the knot in a marriage, it is imperative that you know all about your intended’s finances… and they yours.  It is very important, and did I say imperative??  Yes, imperative.

This is because we all earn, save, spend differently. And if you say ‘I do’ before you know this, it can cause you major headaches, arguments, and financial stress. So, it’s best to be up front and truthful on what you (both) earn, how you (both) save, and how you (both) spend.

If you’re not on the same page now, you never will be.  If one is a saver and the other a spender, then there will always be friction as to what is spent, and what is saved.  Honestly, if you cannot get past these issues now, then hold off on the wedding plans.

This is imperative because the spender, if he/she is spending more than their income, not on a budget, and doesn’t pay in full and on time for what was purchased, they’ll have a lower credit score than you who prefers to stay within a budget, save rather than spend, and when you do spend, you pay in full and on time to avoid late/finance charges.

You will also have ha higher credit score, and so their lower score now joins yours and will bring yours down.

Also, if they’re paying off college loans, car loans, etc, once you’re married, their debt becomes yours!!

So gather all your financial information, sit down together, and show and tell.  Talk, talk, talk.  Promises of ‘I’m going to do better’, isn’t good enough….. They’ll have to do it….. for a specific length of time.  This isn’t mean, it’s actually a gift to them, a valuable lesson on how to handle finances….   And it’s a gift to you too… you won’t be dragged down into their debt hole with just two words….(‘I do’).

The ‘I do’ also means I do know that what’s yours is mine and vice versa including their debt.

Start showing and talking!

Your Financial Reputation

How Do You Score?

Just like in life, you also have a reputation with how you handle your finances. You actually get scored on how well you do.  Your goal is to keep it in the ‘excellent’ category….. 750 or better.

Everyone has bills….. rent/mortgage, utilities, loan payments, credit card purchases etc.  How well you do at paying them, whether you pay when/before due, or if you’re late (and how often), and if you pay in full or just the minimum.  And, it shows how much outstanding debt you have and how you’re taking care of paying it off.

All this is reported and goes on a ‘Report Card’ of sorts…. called….. Your Credit Score.  You score anywhere between 250 – 850.

Obviously, the higher your score, the better.  And your score can determine whether or if…. you can get a job, an apartment, a loan etc.  And it’s legal for prospective employers, landlords, lenders etc to check to see where you stand.  So…..

Get in the habit of living within a budget, of not buying what you don’t need.  And when you do buy something, know that when the bill comes in, you have the money set aside to pay for the whole amount before the due date.  Doing this assures you that you will have no late fee or finance charge on the outstanding portion.  And…… it keeps your Credit Score in excellent standing.

This is why a budget is imperative.  Checking on what income is received, and how you disperse it should become a habit.  Doing so will not only let you know where your hard earned money goes, but it will allow you to know what you’re saving, and for what purpose.  And, it will relieve stress at wondering and guessing.

Once you’re in the habit of doing this, you become disciplined at it…. It becomes second nature.

So, get started!

 

Every Penny Counts… It’s Common Cents

Getting Started….

Organization in all aspects of life is less stressful, so once a realistic budget is settled, and you’re moving along smoothly with it, set up two accounts: One for Emergency Savings, and one for 6-12 Month Income Reserve.

Each is as important as the other, and so, should be added to consistently until your goal for each is reached.

The Emergency one is for just that.  Should an emergency arise (and they do), you should have a $1,000 – $3,000. account set aside so you can pay the bill for the emergency when it comes due…. dental, new tires, plumbing catastrophe etc.

The 6-12 Month Income Reserve is an account which will get you through 6-12 months should you find yourself without an income…. this, too, does happen.  Whether it be a medical emergency, one that you find yourself out of work for a while, or if you are a caretaker to a family member for a while. And since we have all seen what a pandemic can do to job loss, you will have money set aside to pay your monthly expenses.

These accounts are to be used for…..only…..that particular reason.

This can truly be done.  You will find yourself to be less stressed out when, should the need arise, you will be financially covered to pay for – the cost of the emergency, or – if you find yourself out of work, you can still pay for rent/mortgage, heat, light, phone, food.  You notice take out orders, entertainment of any kind or any other non-essential spending has not been mentioned.  This Income Reserve Account is for essential bills.

And remember, when you do need to use the money from these account(s), they should be replenished as soon as possible.

Life happens. Be prepared.

 

How To Budget

You Can’t Spend What You Don’t Have….

Figuring out a budget is easy…. and common sense.  Common sense because it keeps you out of debt. A spreadsheet, or paper and pencil are the tools needed to get started.

List all…every one… of your expenses. Some will be weekly while others monthly, and others still will be annually. This is probably best done in three columns, listing each in the appropriate column. Don’t forget incidentals… gifts, insurance etc.

Question…..  Is savings in your list??  Hope so…. because you should pay yourself first.

Now, add each column.  If you get paid weekly, are your weekly expenses within that figure? The same for monthly, and again for annually.  If your expenses are more, then you need to cut back and set a strict budget to get in line with your income.  Do this as soon as possible, because if you don’t, you’ll find yourself in debt. A hole you don’t want to get yourself in, because it only gets deeper and harder to climb out.

Start chopping off unnecessary expenses, and/or chipping away at things you can.  It is imperative to stay within your income, and become disciplined at it.

It is also imperative that you save something from every paycheck.  Pay yourself first.  This is an extremely important habit to get into.  Deposit it into a savings account right away, better yet, have it direct deposited.  What you don’t see, you don’t miss.

Once you’ve set a budget, stick to it.  If it means eating out less, or stopping gift giving, it is something that has to be done….. for your financial future.

Time passes quickly and although saving for the future may seem far off now, it comes quicker than you may think.  There are other savings accounts to set up too, emergency fund, and 6-12 month income reserve.  Each as important as the other, and all necessary.

So budget and stick to it. Pay yourself first. Be disciplined about it. You’ll be glad you did.

 

First Job? / Debit Card? / Credit Card?

Don’t lose/give out your personal information…

We all have personal information, and once you are old enough to know that, you are old enough to know that you shouldn’t give it to anyone, and you should keep it in a secure place.

Birth certificates, Social Security numbers, bank account numbers, credit/debit card numbers, pin numbers, and passwords are just some of how we are identified. That said, if someone gets hold of your cards/information, they can do a lot of damage….using your name to do it.

Make copies of all your important numbers etc, and put them in a safe place.

Should you lose/misplace your card(s), notify the bank or institution letting them know.  They can put a ‘Stop’ on your account, and replace your card with a new one, with a new number.  If for instance it was a debit card, they’ll send a new card and transfer the money in your account from the lost/stolen card onto your new card.

You should also look around thoroughly and if you were out and about, retrace your steps.  Ask at the places you were if anyone turned it in.  Also, go to the police station and ask there.  There are some honest people in the world.

First job?  You’ll get a pay stub with each paycheck showing you how your earnings were shared with taxes and FICA payments and what is left for you.

Remember to save something from each and every paycheck.  Start right away and continue.  It’s an easy habit to get in to and you won’t miss what you don’t have.

 

Simplify Your Life

Simplify — Eliminate clutter in your life

Look around your home…is there anything you can truly get along without?  Start there and keep going.  If you haven’t used an item in a year, chances are, you won’t use in the next.  So, give it to someone who can use it, sell it, donate it, or toss it.  Now move on to the next item you don’t use…. and keep going.  Do one room at a time, but if you notice something in another, then don’t hesitate, get rid of it.

There is a satisfaction that comes when you look around and see a cleared out room.  Even if you’re re-arranging a closet or drawers, when things are airy and clear of clutter, you can find things easily, because you can actually see what is there.

We have all been guilty of purchasing things that we ‘needed’, yet never used, or used once.  Now is the time to stop doing that.  Use the 14 day rule…. if you see something you desperately ‘need’/’want’, wait 14 days and see if that still holds true.  Guaranteed you’ll not purchase it every time.

This will help in stopping the unnecessary spending.  Put the money you didn’t spend on it, into your savings.

Each week, take 15 minutes to go over your budget.  Any excess money should immediately be set aside to put towards paying down your outstanding debt, or of you’re all paid off there, then immediately deposit the excess in your budget into your savings.

Consistently keep up with doing this and in no time, you’ll be living clutter free and have either your bills paid down/off or your savings growing.

Clutter free means stress free living.