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The Struggle of Spending vs Saving
Who the heck wants to save money? Spending vs Saving is a real struggle. Few normal people wake up in the morning thinking about how they can save as much money as possible today. If you are like most people (and most of us are), you enjoy spending your money FAR more than saving your money. If spending is so much more fun, why would anyone want to save money, when they could be spending it?!? Obviously, it’s not the emotional side of us that is trying to convince us to save. It’s the logical side that wants to think ahead about what could be in the future. It’s the…
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Do THIS to improve your relationship today!
A lot of people come to me to discuss their money problems. They tell me about prices going up at the same time as we have to shell out for the kids’ summer camp. People tell me all about how their credit card debt is keeping them up at night, leaving them exhausted at work the next day. But the problem I hear the most is that these financial issues are causing a lot of stress with their partner. They aren’t alone. In a recent survey done by Ally Financial, 36% of Americans polled (over 2 million people) said that money causes the most stress in their relationship. You know…
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Your Debt isn’t Real
Does the burden of debt ever keep you awake at night? Do you often find yourself overwhelmed, feeling as if the mountain of obligations you owe will never go away? If you’ve ever experienced this feeling, I’d like to share with you a thought that could change your perspective. The Phone Rings… Picture this scenario: Your bank calls you one day and tells that you owe them a whopping $1 million. This is due to an incident that occurred five years ago, and they have been attempting to contact you since then. The bank insists they need the $1 million repayment immediately. Just imagine, $1 million? An amount so large, it…
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7 Methods of Giving your Kid an Allowance
If you are thinking about giving your child an allowance, but aren’t sure the best way to do it, here are 7 methods that you could use. Every family is different, so what works for someone else might not work for you. It’s important to find a method of giving allowance that works for you and your child. It’s also important to realize that as your childre nget older, a different method might work better. 1. Fixed Weekly or Monthly Allowance: This is the most traditional method. Children receive a set amount of money every week or month. This is not tied to any specific chores or tasks. The purpose…
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How does Compound Interest work?
Compound interest is really quite remarkable. Imagine you have $100 and you put it in a bank account that offers you an interest rate of 5% per year. This means that at the end of the year, the bank will give you $5, because 5% of $100 is $5. So now, you have $105 in your bank account. Now, if it was simple interest, the bank would keep giving you $5 every year, because 5% of your original $100 is always $5. Nice and easy. But that’s not how compound interest works. Compound interest is like a snowball effect. With compound interest, the bank gives you 5% not only on…
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Pros and Cons of using a store credit card
You are shopping at your favorite store. While ringing up your purchase at the counter, the cashier asks you if you want to save 20% by getting the store credit card. Is this a good deal? When it comes to using a store credit card, there are both pros and cons, and it is important to be aware of them. Pros: Discounts: Some store credit cards give you money off when you buy things. This can be a big saving if you shop there a lot. Special Deals: Some store credit cards might let you pay for things over time without extra costs. This can be helpful if you need…
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The Fastest Way to get out of Debt
Getting into debt is way too easy, but getting out of debt takes some work. Getting out of debt is a bit like trying to climb out of a hole you’ve dug. The first thing to remember is to stop digging – stop adding more debt. Then, start climbing out – start paying off what you owe. Here’s a step-by-step guide: Make a Budget: Imagine if you were planning a road trip. You’d need to know how much gas you have, how far you can travel with it, and what else you’d need for your journey. Similarly, you need a budget to understand how much money you have, how much…
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Reasons NOT to contribute to a 401k
While contributing to a 401(k) is generally a good idea for retirement savings, especially if your employer offers a match, there are some situations where it might not be the best choice. Here are a few reasons: High Fees: Some 401(k) plans come with high fees. These could be administration fees, investment fees, or others. High fees can eat into your retirement savings over time, reducing the growth of your money. Low-Quality Investment Options: If your 401(k) only offers poor-performing or high-risk investment options, it might not be the best place for your retirement savings. Financial Priorities: If you have other more pressing financial needs, like paying down high-interest debt…
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What is a emergency fund?
An emergency fund is like a safety net of money that you keep aside for emergencies. These emergencies can be anything unexpected like losing your job, a car breaking down, a sudden illness or anything else that might need you to spend money that you did not plan to spend. The reason we need an emergency fund is that it helps us handle these surprises without getting into debt. Imagine if your bike got broken and you had no money to fix it. You might need to borrow money from a friend or use a credit card, which could make you owe money plus interest. But if you had an…
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Should I contribute to my 401k?
When you work for a company, they may offer a retirement savings plan called a 401k. This plan allows you to set aside a portion of your salary, before taxes are taken out, to save for your future when you’re no longer working. Now, here’s the exciting part: some employers offer to match a certain percentage of the money you put into your 401k. It’s like getting free extra money for your retirement savings! Let’s say your employer offers a 401k match of 50% up to 4% of your salary. It means that if you contribute 4% of your salary to your 401k, your employer will add another 2% as…
