Saving Tips

The Ultimate Guide To Saving On Spring Break Activities

Spring break can be affordable, if you make the right moves. This ultimate guide will help you plan the perfect spring break on a budget.

Spring break is right around the corner. What will you do with your children for this much needed week of relaxation? Whatever you decide to do whether travel or take a staycation and visit local sites, it doesn’t have to leave you penniless when it’s over. Today I will tell you how to make the most of your spring break on a budget.

I have grandchildren around the same age as my nieces and nephews, so they enjoy doing some of the same things. My sisters and I have a fun spring break planned for the children. That brings me to how we are doing spring break this year and how you can do it without going to the poor house.

1) Plan ahead

Do you and your friends or siblings have children around the same age that like to do the same things? If so then consider pooling your resources. Last summer, my sisters and I sat down and planned the children’s spring break. We decided this year we will stay in our great state of Alabama, a staycation of sorts.

2) Pool your resources

Since we have seven youngsters between us to entertain we all pitched in and rented a room at a local hotel that has an indoor swimming pool. We rented it for the weekend using my FREE AARP discount. My husband qualifies for AARP and I get the privilege of a free spousal membership, even though I am still a tenderoni.  What discounts can you use to save on fun activities? Does your city or state have an entertainment book with coupons? Are you a military family? Does grandma or grandpa have any discounts they can use for you?

3) Find free or low-cost activities

While our state parks aren’t exactly free, the one we are visiting is only $5 a carload. My sister drives a suburban and we can all fit. Let’s see $5.00/3 adults is roughly $1.67 each. Then we all pitched in to rent a cabin for two day’s, so the children can go hiking on one of the beautiful nature trails. We are all pitching in to buy groceries so we can cook in the cabin and make smores around a campfire.

4) Set a budget

Mind you I have four grandchildren that I will be spending spring break with. So before the pooling resources activities begin, I still have to do things with them for four days. I get them the weekend before spring break so that weekend we will stay in and watch movies. Did I mention those movies will be on Netflix which is only $12 a month. Watch away little grandbabies watch away. The Monday and Tuesday of spring break, we will visit the Birmingham Museum of Art where admission is free. We will also visit some notable landmarks here in our city that are free. My budget for those four day’s is $100. We will eat breakfast at home, and pack a fun lunch to have while out and about.

For those of you who opt to go out of town, check resort or theme park websites for discounts. You never know what great deals you might find. Also, if you are going out of town try and visit somewhere you have family that you can stay with. Make sure to offer a token of thanks in the form of cash for the stay.

Don’t have any family where you are visiting? Not a problem. If the place you are visiting is a vacation/destinations hotspot, try booking your room at an adjoining town. Some of them are just as beautiful as their popular neighbors and could prove to be more affordable.

Whatever you do for spring break, have fun, be safe and don’t break the bank.

*Part of Financially Savvy Saturdays on brokeGIRLrich.*

Facebooktwittergoogle_plusredditpinterestlinkedinmail

10 Tips To Help You Boost Your Retirement Savings

Retirement may be far off for some while closer for others like me. No matter when it is for you, you should begin saving for it as soon as possible. These to tips will help get you started

 

I don’t know about you, but I can’t wait until the day I retire. Whether you plan to retire early or work a few more years like me, it’s never too late to boost your retirement savings. Whether you just started working or you’re nearly done, you can still potentially grow your nest egg.

When planning for retirement, the truth is that the earlier you start saving and investing, the better off you will be, thanks to the power of compound interest. Even if you began saving late or have yet to begin, it’s important to know that you are not alone. There are steps you can take to increase your retirement savings. It’s never too late to get started.

Consider the following tips, which can help you boost your savings, no matter what your current stage of life and pursue the retirement you envision.

1. Focus on starting today

Especially if you’re just beginning to put money away for retirement, start saving and investing as much as you can now, and let compound interest have an opportunity to work in your favor. Compounding is the ability of your assets to generate earnings, which are reinvested to generate earnings, which are reinvested to generate their own earnings. The more you can invest when you’re young, the better off you’ll be.

2. Contribute to your 401(k)

If your employer offers a traditional 401(k) plan, it allows you to contribute pre-tax money. This can be a significant advantage. Say you’re in the 15% tax bracket and plan to contribute $100 per pay period. Since that money comes out of your paycheck before taxes are taken, your take-home pay will drop by only $85. This means you can invest more of your income without feeling it as much in your monthly budget.

If your employer offers a Roth 401(k), yes a Roth 401(k) not Roth Ira, which uses income after taxes rather than pre-tax fund, you should consider what your income tax bracket will be in retirement to help you decide whether this is the right choice for you.

3. Meet your employers match

If your employer offers to match your 401(k) plan, make sure you contribute at least enough to take full advantage of the match. For example, an employer may offer to match 50% of employee contributions up to 5% of your salary. That means if you earn $50,000 a year and contribute $2,500 to your retirement plan, your employer would kick in another $1,250. It’s essentially free money. You better get that money, don’t leave it on the table.

4. Open an IRA

Consider establishing an individual retirement account (IRA) to help build your nest egg. You have two options, the Traditional IRA and the Roth IRA. A Traditional IRA may be right for you depending on your income and whether you and/or your spouse have a workplace retirement plan. Contributions to a Traditional IRA may be tax-deductible and the investment earnings have the opportunity to grow tax-deferred until you make withdrawals during retirement.

If you meet the income eligibility requirements, Roth IRA may be a good choice for you. They are funded with after-tax contributions, so once you have turned age 59½, qualified withdrawals, including earnings, are federal-tax-free (and may be state-tax-free) if you’ve held the account for at least five years.

5. Take advantage of catch-up contributions if you are 50 or older

One of the reasons it’s important to start saving early if you can is that yearly contributions to IRAs and 401(k) plans are limited. There is good news though.  Once you reach age 50, you’re eligible to go beyond the normal limits with catch-up contributions to IRAs and 401(k)s. So if over the years, you haven’t been able to save as much as you would have liked, catch-up contributions can help boost your retirement savings.

6. Automate your savings

You’ve probably heard the phrase “pay yourself first.” Make your retirement contributions automatic each month and you’ll have the opportunity to potentially grow your nest egg without having to think about it. Make automated regular contributions to your IRA. Here is a little more information on how to automate your savings

7. Rein in your spending

Examine your budget. You might negotiate a lower rate on your car insurance or save by bringing your lunch to work instead of buying it. Determine where your money is going by tracking your spending. Find places to reduce spending so you have more to save or invest.

8. Set a retirement goal

Knowing how much you’ll need not only makes the process of saving and investing easier but also can make it more rewarding. Set benchmarks along the way, and gain satisfaction as you pursue your retirement goal.

9. Stash extra funds

Extra money? Don’t just spend it. Every time you receive a raise, increase your contribution percentage. Dedicate at least half of the new money to your retirement plan. I know  it may be tempting to take that tax refund or salary bonus and splurge on a new designer purse or a vacation, don’t treat those extra funds as found money. Treat yourself to something small and use the rest to help make big leaps toward your retirement goal.

10. Consider delaying Social Security as you get closer to retirement

This is a big one! Did you know that for every year you can delay receiving Social Security before age 70, you can increase the amount you receive in the future? Age 62 is the earliest you can begin receiving Social Security retirement benefits, but for each year you wait (up until age 70), your monthly benefits will increase.

The additional income adds up quickly. Pushing your retirement back even one year could significantly boost your Social Security income during retirement.

Recognizing the need to put money back for retirement is the first step. Understand how much you want to put away for retirement, and find creative way’s to increase your contributions. Making the effort now will help make your retirement something to look forward to and help you not to worry about retirement.

 

*Part of Financially Savvy Saturdays on brokeGIRLrich.*

Facebooktwittergoogle_plusredditpinterestlinkedinmail

5 Clever Inexpensive Gifts For Valentines Day

Valentine's day is right around the corner, here are 3 clever inexpensive Valentine's day gifts that are sure to put a smile on your special someones face

Ahhhh love is in the air, Valentines Day is right around the corner. Now love doesn’t have to break the bank. I mean it is not about how much the gift costs, but the thought behind it right? I don’t know about you, but I don’t want to go broke trying to show my husband how much I love him and how much he means to me. Here are five clever inexpensive gifts you can give your honey for Valentines Day. I know the picture below says Christmas, but I love this pic of me and my funny valentine.

  1. The What I Love About You Journal- This is a cute little journal. Although I purchased it, I will not be giving it to my husband just yet. I was looking for something sweet and intimate to present to him on our 25th wedding anniversary in October of this year. This gift is economical and is perfect for a sweet token for Valentines Day. You can find it at KnockKnockstuff.com  for $10.00. It even includes simple prompts to make it easy for you. 5 clever inexpensive gifts for valentines day
  2. Personalized Collar Stays- Now this is the gift I am giving William for Valentines Day! He is a sharp dresser and I love to make sure that he has his signature style, with a pop of extra pizazz. These are sure to be a favorite for him. You have these bad boy’s inscribed with whatever you like. His say I love you. W&T 25 and Big Daddy (that’s what I call him). This set of 3 comes from Personalizationmall.com  hurry while they are on sale for $22.49 regularly $29.99. 5 clever inexpensive valentines day gifts
  3. Affordable Romantic Getaway- Groupon is my jam when it comes to quick getaways. Why not book a romantic getaway through Groupon? Whether the trip is right here in the states or abroad, Groupon has some great deals I’m sure your Valentine will love!
    image for Waterfront Inn in Pacific Northwest
  4. Romantic dinner for two- In my opinion, there is nothing like a homecooked meal. We rarely eat out as it is. This year, it is his turn to cook. I’m sure he will make something scrumptious, as William is an excellent cook. Besides, there’s no line or a long wait at home and reservations are always available.5 clever inexpensive gifts for valentines day
  5. Redbox movie- One of my favorite things to do is just spend quality time with my husband and watch a good movie. This Valentine’s day hit up your local Redbox, rent a romantic movie and enjoy each other. 

I hope this guide gave you some ideas on how you can show your Valentine a little love without breaking the bank. For more savings ideas, be sure to visit 10 Ways To Save On Valentine’s day and Unexpected Ways To Save On Valentine’s Day. What do you plan to give your significant other for Valentine’s day this year? Drop it in the comments below. Besides dinner, I wonder what he got for me, I can’t wait to see. I know one thing, he better not have gone over our gift giving budget.

 

 

 

 

 

 

Disease Called Debt
Facebooktwittergoogle_plusredditpinterestlinkedinmail

Month 5 Insure The Future

Make sure you and your assets are protected. Insure your future

 

The best financial plan can be ruined if catastrophe strikes. I’m sure you don’t want that after all this hard work you have put in getting on track. You have to protect your income and assets with insurance. You must insure the future at all costs. Here are a few types of insurance you may want to invest in.

Disability

Buy as much disability insurance as you can afford. Be sure the policy provides benefits until you reach the age of 65 or for life. Make sure that it covers you if you can’t work.

Life Insurance

Nothing disturbs me more than to see a go fund me account for burial expenses. I don’t care how old you are, you need life insurance. If you have children, they need it too. The rule of thumb is to have coverage that equals five to seven times your annual income.

A term policy is often best for people in their 30’s who have young children and need a lot of coverage but don’t have a lot of money for premiums. Term insurance will cover you for a set number of years but gets more expensive each time you renew the policy.

Cash-value insurance is ideal for those who can afford coverage for 20 years or longer. Part of cash-value premiums grows tax-deferred.

Homeowners Insurance

This policy should cover what it would cost to replace your home and personal property now. Don’t own your home? No worries, get renters insurance. This will at least cover the contents (your belongings) of the house or apartment you rent.

Automobile Insurance

Liability coverage is key, so make sure you have enough. This is the mandatory coverage set forth by your state. For both comprehensive and collision coverage, take the highest deductible with which you feel comfortable.

Consider dropping comprehensive and collision if your car is more than 5 years old and has lost most of its value.

Estate Planning

If you don’t have a will, a power of attorney and a living trust, see an estate attorney. Preparation costs range from $500 to $2000 or more, depending on the complexity of your estate. If you already have these documents, review them and make any changes needed to bring them up to date.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Month 2 Set Long Term Goals

Want to make sure your money is working for you? Make sure to set long term goals to stay on your financial trackIf you don’t figure out your long-term financial goals, you will almost always fail to reach them, because short-term needs are always so demanding.

Strategy: Set up a new worksheet with these four headings: Annual Pretax Income, Annual Expenses, Goals and Estimated Cost of those goals in current dollars. Below, I have listed a few goals that some may want to include on their worksheet.

College for your children

The cost of college per child now is roughly * $20,000 + per year academic year at the high end and $12, 000 per academic year on the low end. Multiply the annual cost by the number of years in college, for a range of $80-$36k, and by the number of children. Like everything else, college costs increase with time. The annual increase is about 6-8%.

Worry-free Retirement

Multiply your current annual expenses by 0/8% (if you make $50,000 a year, that’s $40,000). This is about what you will need annually to retire comfortably. Ideally, your investments should be able to provide you with this annual retirement allowance while continuing to grow with inflation.

Homeownership

With a down payment of 20%, the most expensive house you can purchase is about 2.5 times your gross annual income.

Insurance

If you become disabled or die and you have a spouse and children, your family will need 70% of your current income, or 50% if you have just a spouse and no children. If you don’t have insurance, start researching policies now.

Setting long-term goals for your finances helps keep you on the right track. If these goals stay first and foremost on your mind, you are less likely to spend frivolously or live beyond your means. What are some of your long-term financial goals? I’d love to hear from you. Be sure to comment below.

*All price data are reprinted from the U.S. Department of Education’s 2016-2017 IPEDS Survey and reflect reported costs for the 2016-2017 academic year

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Establish A Savings Plan

I love to plan everything, even down to how much i am going to save. Establish your savings plan today

As you can see by now, I am big on planning. I plan everything including how much I want to save and you should too.

If you don’t have any money saved, plan to begin to saving while reducing your debts. This should not mean that you end up paying off your debts more slowly.

Financially, that does not seem to make sense. It’s better to pay off credit card debt at 20% interest than to save money that earns 4% or 5% interest. Psychologically, it’s a real boost to get some savings underway. You don’t want to end up back where you started, with no savings, while paying off debt.

In addition, your savings will be helpful in case you lose your job or become ill. I don’t particularly like to call them emergencies. Things happen, it’s as simple as that. Most personal finance experts call them emergency funds, but I call them capability funds. You must be capable of handling anything that comes your financial way. Hence, the financial capability fund.

First, let’s define a financial capability fund. A financial capability fund is cash that you’ve saved for the sole purpose of helping you maintain your normal life through curve balls that life throws at you. Most of the time, you shouldn’t touch the money in this fund. It is supposed to sit there earning a bit of interest and waiting until you actually need it. Times like when you lose your job, an appliance breaks down or your car needs a repair.

Quite often, people who don’t have a capability fund see the idea of having to save up money as some form of punishment.  After all, money put in a savings account and locked away is money that can’t be used to live, right?

Actually, it’s quite the opposite. Having a capability fund means that you do have room to breathe. You don’t have to completely panic if your car breaks down or if you lose your job or if you suddenly need to replace a hot water heater. Instead of having to find some way to squeeze those expenses onto a credit card or beg a friend for some money to help, you can just pay the bill – no worries.

Smarter Saving Strategy

People who systematically put aside a certain amount of money each month over a period of years should remember to increase the amount each year to make up for inflation. $100 a month, which was a fairly significant amount 25 years ago, is not adequate today to build a retirement nest egg. If you assume an inflation rate of 4%, the value of the money you have saved will be cut in half in 18 years. If you accumulate $100,000 it will only be worth $50, 000 after inflation. So make sure you give account for inflation in your savings.

If you have been hanging in there with me for the past 6 days be sure to come back tomorrow when I will give you a bit of investing advice.

As usual, I would like to hear from you, tell me your savings strategy in the comments below.

 

Facebooktwittergoogle_plusredditpinterestlinkedinmail

What Can I Do With My Tax Refund Check?

In this post I share what you can do to flip your tax refund and make it grow
Tax Time Is Here

 

 

We are in full-fledged tax season. I had a reader request a series on how you can invest your tax refund and make it grow. About a year ago, I hosted a webinar called Flip My Refund. To start this series off, you can view that webinar here. Don’t forget, if you have a personal finance question that you would like answered, you can send me an email at tracie@traciebthreadford.com Your question may be answered on the blog, but you will remain anonymous.

If you haven’t already, be sure to subscribe to my you tube channel!

 

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Save For Unexpected Events With A Financial Capability Fund

A financial capability fund consists of a small amount of money, usually in a savings account, that you do not have easy access to. Saving for this fund starts with small, regularly scheduled contributions that build up over time.

Saturday, March 4: Save for Unexpected Events

  • A financial capability fund consists of a small amount of money, usually in a savings account, that you do not have easy access to. Saving for this fund starts with small, regularly scheduled contributions that build up over time.

I don’t particularly like to call them emergencies. Things happen, it’s as simple as that. Most personal finance experts call them emergency funds, but I call them capability funds. You must be capable of handling anything that comes your financial way. Hence, the financial capability fund.

First, let’s define a financial capability fund. A financial capability fund is cash that you’ve saved for the sole purpose of helping you maintain your normal life through curve balls that life throws at you. Most of the time, you shouldn’t touch the money in this fund. It is supposed to sit there earning a bit of interest and waiting until you actually need it. Times like when you lose your job, an appliance breaks down or your car needs a repair.

Quite often, people who don’t have a capability fund see the idea of having to save up money as some form of punishment.  After all, money put in a savings account and locked away is money that can’t be used to live, right?

Actually, it’s quite the opposite. Having a capability fund means that you do have room to breathe. You don’t have to completely panic if your car breaks down or if you lose your job or if you suddenly need to replace a hot water heater. Instead of having to find some way to squeeze those expenses onto a credit card or beg a friend for some money to help, you can just pay the bill – no worries.

Another problem that I often hear about when it comes to capability funds is the temptation that people have to spend the money on things that aren’t considered unplanned events. They see that they’ve built up several hundred dollars in savings and they start thinking about buying a flat screen television or going on a trip – and that’s just what they do.

If you want to have a savings account for big splurges, that’s great – start a “splurge fund,” too, if it makes sense for you. It’s important, though, to just leave the capability fund completely alone until you need it. Deposit money in there and don’t even look at the balance until a real unplanned event occurs.

First Steps with Capability Funds


Set Your Initial Target Low

So, what’s the first step? Many people bite off a gigantic goal for their capability fund right off the bat and then find that it’s very hard to get there. Twelve months of living expenses is an enormous goal, one that will take some time to reach – and along the way, you’re bound to get disheartened.

Instead, one great way to start is to set a goal that’s more reasonable. Make it your initial goal to have a capability fund of just $250 or $500. That’s a goal that you can reach in just a few months (or even less if you’re in a good income situation) and yet it’s an amount that can make a huge difference when you have an emergency.

Then, break that goal down into smaller pieces. Perhaps you can save $25 a week. If that’s the case, you can have a $250 emergency fund in just ten weeks, so you can set that as your overall goal. Maybe you can put away $40 a week, which would bring you to the $500 goal in three months.

My advice is don’t set your savings plan too high at first, either in terms of the amount you can save each week or the overall amount. It should challenge you just a bit, but not be a number that’s simply unreachable.

Find Your Breathing Room

“That’s great,” you’re thinking, “but where am I going to come up with $25 a week? I barely make ends meet now.”

That’s a pretty typical sentiment from people who are just beginning to turn their financial situation around. There are a lot of ways to come up with extra money throughout the month.

Ways to Get Your Capability Fund Started


Request a rate reduction on your credit cards

If you’re carrying a credit card balance, getting your interest rate reduced will directly save you money each month. Just flip over your credit card, call the number on the back, ask to speak to a supervisor, and simply request that the rate be reduced. Suggest that you’re considering transferring your balance off of the card.

Shop around for better auto insurance and homeowners insurance

Try Progressive, Geico, American Family, State Farm, and AIG, for starters. Just visit their websites, get some quotes, and make a switch.

Install a programmable thermostat – and program it

Pretty simple, actually – it just takes thirty minutes or so and will cut your cooling and heating bill by 20 or 30 percent. Set it so that the air conditioner and/or furnace don’t run while you’re sleeping or at work so that the energy isn’t wasted when no one is around or awake to enjoy it.

Use a list for grocery shopping

Ten minutes of planning before you go will save you at least ten minutes in the store, plus it will help you stay focused on the stuff you actually need, This will ultimately reduce your grocery bill because you’re putting less unnecessary stuff in the cart.

Transform one splurge a month

Instead of going out for an expensive dinner once a month, turn that dinner into a meal prepared at home. You’ll save quite a bit even if you prepare something very fancy in your own kitchen.

Set up a carpool

Find someone that lives fairly close to you that works where you do and start carpooling together. Even if you can only do it a few days a week, you’ll still drastically cut down on your commute costs, plus it will be a lot harder to stop for those impulse splurges.

Use public transportation

Even better, get in the habit of using public transportation for your commuting needs. Most metropolitan areas have surprisingly good public transportation options – and they’re far cheaper (and not all that much more time consuming) than driving yourself.

Get on the bike

Want to start getting in better shape? Only live a mile or two from your job? That’s a perfect situation to get a bike and start using it for the commute instead of wasting your dollars on gas and car maintenance.

Trim unnecessary monthly bills

Are you subscribing to Netflix but rarely using it? Cut it! Are you paying for premium cable channels that you never watch? Trim them!

Snowflake

Quite often, when people come into a bit of unexpected money, they tend to spend it without thinking about it. They decide not to stop for coffee, but then choose to spend it later, on take out, for example. Instead of spending that “found money,” take some or all of it and immediately put it into your capability fund. If you have online banking, that’s pretty easy – just transfer it out of your checking account.

The key thing here is to actually save this windfall. Instead of just spending the money on something else, put that money away towards your capability fund. If you find that you’re actually saving more than $50 a week with these tactics, then put more into the capability fund or increase the amount you’re putting into your retirement savings.

Make It Automatic

So, you’ve trimmed $50 a week from your spending, but now you have this cash sitting there and it’s tempting to spend it on something more exciting than a capability fund. You’re tempted…

… but you don’t have to be tempted. Instead, you can set up an automatic savings plan to sweep that money straight out of your checking account and into your savings account that you’re using for a capability fund.

If you haven’t already, I recommend setting up an online savings account at a bank separate than the one you normally do business with for your capability fund. Doing this not only lets you shop around for a bank with good service and good savings account rates, but it also causes you to put the money in a place that’s not quite so easy to access. You can’t just run to the ATM or stop by the teller window and withdraw cash from it – you have to go to your computer, order a transfer, and wait for a day or two to access the cash, which is more than enough time for you to think carefully about what you’re doing and not get sucked in by impulse.

Set Reasonable Milestones Along the Way

In a few months, you’ll hit that first milestone – and it’ll feel good. That account will have enough money in it that it’ll start earning a bit of interest on its own and you’ll start to feel in control of the situation.

Now’s the time to keep going. Set another goal. Maybe a fund of $1,000. Keep that automatic savings plan in place.

Once you reach that goal, aim for a single month’s worth of living expenses. Then two months. Then three. And just keep watching that financial capability fund grow.


Obviously, when you do have an unexpected event tap that fund. Don’t put your car repair bill on the credit card. Don’t start living on plastic while you’re between jobs. Instead, keep living a financially stable life thanks to your planning ahead.

You might just find this is a lot of fun – so you might start seeking out more ways to save. Just keep setting goals for yourself and keep pushing yourself just a little to make it there.

Before you know it, life won’t be disrupted by these kinds of events. You’ll sleep a lot better at night knowing that.

You can find more way’s to overcome unexpected expenses that thwart efforts to save here.

Do you have any tips or tricks you can share to save money and build a finanical capability fund? If so drop them in the comments below, I’d love to hear from you!

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Pay Off High Interest Debt

With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth. Find places to cut your spending so that you can pay down your debts faster and find places to trim your expenses. Pay off high interest debt today

Friday, March 3: Pay Off High-Interest Debt

  • With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth. Find places to cut your spending so that you can pay down your debts faster and find places to trim your expenses.

 

Debts that accrue interest over time can deal a major blow to your savings. But with planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth.

Although we’re coming to the end of America Saves Week, there are still actions you can take this week to improve your financial picture. Find places to cut your spending so that you can pay down your debts faster and find places to trim your expenses.  About a month ago, I conducted a private masterclass called DEATH TO DEBT. In this class, I showed the participants the most effective way to pay off their high-interest debt and begin building wealth. You can view that class here.  For now, here are five effective way’s you can begin paying off high-interest debt.

 

Create a budget

Establish a budget that includes your monthly income and expenses. Then take a look at those categories and see where you can cut costs.

Stop your credit card spending

If you really want to stop accumulating debt, then stop your credit card spending. Take those credit cards out of your wallet and leave them at home. Better still, cut them to pieces. I know that’s drastic, but sometimes we have to take drastic measures to obtain financial freedom. Stop spending with those credit cards until you have your finances under control.

Put work bonuses toward your debt

Do you receive a bonus from your job? If so, throw it at your debt instead of using it as an opportunity to splurge. It is more important to fix your finances than to own the latest whatever.

 

Change your habits

I’m willing to bet, if you look at how you spend your money each day, week or month, you will see that your daily routines and habits got you into this mess. Spend a little time reflecting on those purchases and see what you can either cut back on or do without. Instead of that hight priced latte every day, make your own at home. How about brown bagging your lunch instead if eating out each day. Watch how much money you will save and how much you can throw toward that debt.

Earn extra income

Turn that side hustle into a lucrative business. What skills do you have that you can turn into some extra cash? My side hustle is selling and doing makeup. I also do graphics for a few of my friends. You would be surprised how much your talents can earn you.

What other tips can you give for paying off debt? Comment below and let me know. I’m always looking for more tips and trick to add to my arsenal.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Save At Tax Time

Saving a portion of your tax refund can be a big step toward meeting your savings goals. This tax season, get ahead of your financial goals by splitting a portion your tax refund into savings. Here are 5 way's to take that tax refund and build wealth. Save at tax time, instead of blowing your money

Thursday, March 2: Saving at Tax Time

  • Saving a portion of your tax refund can be a big step toward meeting your savings goals. This tax season, get ahead of your financial goals by splitting a portion your tax refund into savings.

 

“Of life’s two certainties, the only one for which you can get an automatic extension.” Anonymous

The quote is funny, but it is so true. Nothing is certain but death and taxes. Lately, I’ve been scrolling my newsfeed on Facebook, and I see such a hot trending topic. People are talking about balling out with their taxes. Now certainly, that is your prerogative, do with it as you choose.  If you have a refund check coming your way, consider using it to bolster your personal balance sheet.  Many people view tax refunds as unplanned bonuses. They see the money as a gift from the government, to use for splurges or treats. A tax refund provides the opportunity to improve your financial situation. The average refund has been around $3,000 for the past two years. That’s a nice chunk of change. Here are five good things you could do with the money.

Build or rebuild your financial capability fund

Many people have raided their financial capability fund over the past several years and have had little extra money to restore it. You could use your refund to start rebuilding that fund, which can help you avoid landing in credit-card debt if you have an emergency. Keep the money easily accessible in a money-market account or savings account that earns interest.

Boost Retirement Savings

You can contribute an IRA — and withdraw the money tax-free in retirement. Isn’t that ironic? Taking your tax refund from Uncle Sam and placing it in an IRA then take it out in retirement and not have to pay taxes on it.

Build Your College Savings

It’s always hard to juggle saving for college and retirement. Here’s an opportunity to use your extra money to contribute to a college fund. You’ll be able to use the money tax-free for college bills, and you could get a state income-tax deduction for your contribution.

Help Your Child/ren Save

You can use the extra money to contribute to a Roth IRA for your child. Your child is eligible as long as he or she has earned income — from mowing yards or babysitting, for example. This is my favorite tip.

Purchase Tax Time Savings Bonds

Tax Time is a great time to kickstart or grow your savings for the future! U.S. Savings Bonds are one safe and easy way to do it. What are tax time bonds? Tax Time Savings Bonds are Series I U.S. Savings Bonds. Issued and guaranteed by the U.S. Treasury Department, Tax Time Savings Bonds can be purchased directly on your tax form. You can cash in your bond after one year at most banks or credit unions, but the longer your keep it the more it will grow in value. Your bond will earn interest for up to 30 years. If you cash your bond within 5 years, you’ll lose the last three months of interest.

Growth on your bonds is guaranteed! Bonds make saving safe, simple and secure.

What other way’s can you think of to save at tax time? Comment below and let me know.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

1 2 3 5