Tag: finances

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Financial Savings

Budgeting: 7 Things That Will Hinder Your Finances

7 Things That Will Hinder Your Finances

Coffee is widely spent on, especially if it’s a Starbucks. One cannot go by the day without coffee. While, it has become a support system in our lives, it is also one of the causes of wreaking chaos in our financial management. That being said, you cannot just manage your finances by cutting back on coffee. Here are 7 things that are possible hindrances to your finances:

1.   Neglecting budgeting

This should be a no-brainer. You can watch your money being spent but you don’t know where half of it went. When you start budgeting, you will know where your money went instead of just wondering about it. This will also help you in avoid buying unnecessary things.

2.   Working on a consistent salary

You need to start thinking of yourself as worthy enough to ask for a raise. If you have been working in a company for almost 3 years and you are still on the same salary package, it affects your finances. With inflation everywhere, your stable income won’t be of any use to you unless you buck up and ask for a raise. 

3.   Buying things you cannot afford and budgeting

Do you really need that car? Or a new place to move into? All of these decisions impact your finances. Buying things that give you no value can be cut back. The money can instead be put in a savings account. If you are taking loans just to fulfill your materialistic desires, it will affect your life. You will eventually be caught up under the pile of loans.

4.   Remove your Starbucks addiction from your finances

You don’t need to give up on coffee altogether. However, you can simply cut back on the number of coffees you have every day. If you have 4 cups of Starbucks, cut it down to three, two, and then one. You will notice how much money you save just by cutting back.

5.   Ignoring credit

You need to build up your credits. If you don’t focus on that, you can’t qualify for easy loans and low interest rates. A good credit history and score can help your finances in a number of ways. Building credit is not a day’s work but takes years to do so. So, start building your credit for your financial benefit.

6.   Not setting your financial goals

Not setting your financial goals also impacts your finances. You can get into spending loads without even thinking about the future. Set a savings goal every month. This will help you in spending money within your set limit. This will also help you to achieve future financial goals.

7.   Taking the same route

This might sound funny, but changing your daily route also helps. Take a route that doesn’t have Starbucks right around the corner. It will automatically help you control your urge to buy coffee every time you pass around it. Believe it or not, this will save you money and create a positive impact on your finances.

Saving up and helping your coffee addiction are parallel concepts that are linked together. So, don’t give in to your addiction and save your finances!

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Financial Health & Home Savings Wellness

5 Simple Lifestyle Swaps That Can Save You Money

5 Simple Lifestyle Swaps That Can Save You Money

Trying to save money can be difficult, especially at the beginning. Most people aren’t exactly sure how much money they spend every month and therefore end up overspending.

Maybe you are saving up for a purchase or may you’re just wanting to be better with your finances, either way, these five simple steps will go a long way.

Make a budget

Having a budget using a simple tool like a spreadsheet can show you how much money you can afford to spend in each area of your life. Save receipts or go back through your bank transactions and see how much you really spend every month.

Looking at the numbers may surprise you. Keeping track of expenses is the start of knowing how much money comes in and how much comes out.

Consider taking out the money you can afford to spend out in cash. Then, once this money is gone, you wait until the next month to withdraw money again.

Eat at home

This one is a basic step, but that’s because it really does save hundreds a month. You don’t have to be a chef or a whiz in the kitchen. Just make simple meals that you enjoy eating so you are less likely to order takeout.

Have one day a week that you eat out or order food so that you have that day to look forward to. You can also meal prep so that the food is ready for you whenever you need it.

If you hate cooking, sign up for a meal delivery service that is in your budget to help you out. Consider only drinking water as well to save money you spend on soda or alcohol.

Ditch cable or some streaming services to save money

Spending a few dollars a month on several streaming services may not seem like too much, but things quickly add up. Take a look at what you really watch and what you can go without.

Cancel all the services you do not use often, especially cable, as this can be the most expensive. Most streaming services probably offer most of the shows you watch anyway.

Do more things yourself

Is there a service that you pay for that you could really be doing yourself?

Go through the services you use and find out. Sometimes this can be paying for pest control, lawn care, or car washing services. If you have time to do these things yourself, cut the services.

Start being a coupon clipper to save money

Actually, you don’t have to clip. Most coupons can be found online. Check online at the places you normally shop or go to. Chances are there are coupons online somewhere for all the businesses you frequent.

Even just using a few coupons a month can save you tons of dollars throughout the course of the year.

Sometimes buying in bulk with coupons can save you more money later. Having more supplies in your home can keep you from constantly buying the same items every few days or weeks.

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Financial Savings

How to Become Financially Independent

financially independent

Becoming financially independent is a hot topic these days. The days where earners could expect to work until retirement age then retire with a pension are long gone. Pensions have all but dried up, and now it is often left up to the worker to manage and plan for their own retirement.

But financial independence doesn’t require being of retirement age. More and more people are beginning to take action at a younger age in order to become financially independent. This means becoming financially secure, no matter your employment status, and having the time and resources to do what you want to do.

There are some simple techniques to becoming financially independent. Most of them are easily actionable by most people, however, some will force you to start changing your mindset about money.

Don’t Save, Invest

This is one of the biggest shifts in your financial mentality that you will need to make. In order to become financially independent, your assets will need to appreciate. If you stick all your extra money in savings, inflation will eventually reduce the value of that money, quicker than interest can replace it.

By putting your money into a mix of stocks and bonds, usually at around a 3-to-1 ratio, you will be able to pull out 4% annually. This means you’ll need about 25 times your yearly income to retire comfortably. Talk about financially independence! While this sounds simple enough, if your annual spending is $50k, you will need roughly $1.25m invested.

Start As Early As Possible

Knowing how much you will need to invest over time, it is far easier to begin at a younger age, in your 20s or 30s for example, than to try to catch up in your 40s. Depending on your calculations, starting in your 30s may only require a monthly investment of $800 or so, while trying to reach that same goal at 40 would require nearly two and a half times as much. This way you are closer to becoming financially independent

Pay Yourself First

Here’s another thing that requires a huge shift in willpower but will severely help you to become financially independent. Most people say that after their expenses there isn’t enough left to save. The wealthiest people in the world got there by being disciplined, and not by saving what’s left after spending, but by learning how to live on what’s left after saving.

Set a goal, whether it’s 10%, 20%, or even 5%, and stick to it. Once you’re paid, move that money into your investments. Then you can evaluate what is left, pay bills, and see if there is any discretionary spending money left.

Leverage Tax Benefits

Many people only contribute what they think “they can afford” to their 401(k) or IRA. But these can help you save twice and become financially independent sooner. If you contribute up to, or close to, the limits for your tax-advantaged retirement account you not only save valuable pre-tax dollars, but you reduce your taxable income. This means at worst, you pay fewer taxes, and at best, a bigger refund once you file your return!

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Financial Savings

5 Financial Professionals and How They Can Help

financial professionals

1.   Financial Planner

A financial planner will help you create a roadmap for reaching your long-term goals. They often work with you to first discover what your goals are. Once you have figured out what your overall goals are, they will help develop the plan of action that will get you there.

Financial planners are also adept at things like retirement plan diversification, and even financial planning for a growing family. But not all of them run their business, or their billing, the same. You will want a fee-only fiduciary, meaning they are paid by you directly. Bonus if they are trained as a CFP or PFS.

2.   Financial Coach

A financial coach is a must if you struggle with keeping to a budget. They are also great if you need some help decoding some of the short-term financial options available to you. Financial coaching is still somewhat new and was created as a way to fill the short-term market where financial planners often do not operate.

3.   Tax Accountant

This is the person who will help you file your taxes, and depending on their skill set they may also help you build tax-saving behaviors that can benefit you for years to come. These are the people that help you figure out all of your deductions so that you can reduce your taxable income as much as possible.

Popular tax credentialing includes EAs, or Enrolled Agents, and CPAs, or Certified Public Accountants. EAs are licensed by the IRS after taking a test made up of 3 parts. CPAs are professionals that have been licensed by the state they operate in, after taking a 4 part test.

Tax accountants can be an important part of your overall financial health. They will help you be more mindful of how your income and other finances affect your taxes and any subsequent refund. This can put you in a better and better position each year.

4.   Credit Counselor

One of the most valuable financial professionals is credit counselors. They can help you if you are dealing with high-interest debt or debt management struggles. Many times you will find that your credit counselor will be a non-profit and will have the specific training needed to help you get the most out of your credit. They can often help with building credit, as well as fixing bad credit.

5.   Investment Advisor

Managing investments can be difficult with all the other things on our plate. An investment advisor will help you understand the process of investing, and will be able to give advice on various investment strategies. This will include things like stocks, bonds, mutual funds, and even cryptocurrency and NFTs.

Before you get to the stage of hiring an investment advisor, you will need to make sure the rest of your financial plan is in order. Investment advisors will often not provide any guidance on anything directly related to your long term financial goals, such as children, home buying, or retirement financials.

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Financial Savings

20 Ways to Take Control of Your Finances

take control of your finances

Many people struggle with their personal finances and money. Luckily there are many tips and tricks to help you get more in control of your finances. 

Evaluate How Much Money You Have

Before making changes to your finances, you need to evaluate exactly how much money and debt you have. This will give you a baseline of what to expect with your finances, where you need to improve, and where you can go with your finances.  

Track Purchases

When starting to evaluate your finances, you want to see where your money is going. When you do this you’ll be able to make changes about what you spend your money on. This is also something to continue doing once you have set a budget.  

Set a Budget

Once you have evaluated your current finances and seen where your money is going, you can set a budget. There’s a lot of software and apps you can use to set and track your budget. Having a weekly or monthly plan laid out will help you stick with your plan.

Review the Budget

Every budget will need to be reviewed, you can set this either weekly or monthly. Your financial needs may change and having a review can help you set those changes.

Make Financial Goals

Having a financial goal can give you something to work towards with your budget. It will be easier to stick to a budget when you’re saving for a house or business. 

Automatic Money Transfers

Having your money transfer automatically every paycheck will help you know how much money you have. It will also be harder to miss that money if it was never in your account to start.

Talk to Others

Talking with people that you admire money-wise will help you find ways to save and spend money you may not have known about previously.

Test Saving Methods

Some budgeting ideas will work better than others. Trying new ways will help ensure that you’re using a financial plan that works best for your situation.

Save Money

Saving money every month is the best way to know that you have enough money. This saved money can be towards a specific goal or a general savings fund. 

Minimize Debt

Debt can break many people’s budgets. Don’t let that happen to you by minimizing how much debt you get into. 

Make a Plan to Get Out of Debt

When you’re in debt, make a plan to get out of debt quickly. The more debt you have, the more interest you will have to pay.

Have an Emergency Fund

Don’t let a financial setback take you too far back. With an emergency fund, you can be prepared for many financial mishaps. 

Invest

Investing money can be a great way to build more financial equity. It can be used for retirement or other long-term goals.

Earn More Money

While saying “just make more money” is often easier said than done, you can get a side job or start a small business that can help you make more money.

Live Within Means

Many people can fall into the trap of trying to keep up with the neighbors. Staying within your financial means will help you stay out of debt and on track with your financial goals.

Shop Smarter

Shop with coupons or with deals to get the most of your purchases.

Direct Deposit

Direct deposit will ensure that your money gets in the back as quickly as possible so you don’t have to worry about it.

AutoPay

AutoPay ensures that you don’t fall behind on bills and incur late payment fees.

Read About Finances

Reading about finances will help you develop new financial and money-saving strategies.

Hire a Financial Planner

A professional financial planner can help you develop financial goals and ways to meet those goals.