Debt Free Life Hacks: Managing Money Like a Boss

 I was having a conversation with a young lady who shared that she was living paycheck to paycheck but didn't understand why. I suggested she create a budget to see exactly where her money was going.  She said she didn't need a budget as her expenses hadn't changed, but she just didn't have enough money. I get that, but a budget could still be helpful. For a long time, I did the math in my head. I knew what I made and what my typical expenses were. Looking back, that was silly; the truth is, having it in your head is not the same as having it in some visual or written format. It's truly an eye-opener once you visualize where your money is going. You may be surprised by the results.  You can only spend 100% of what you have. A pie chart is a great way to visualize income and expenses. It allows you to see how much of the pie ( income💰 ) goes to each of your expense categories. This can help you better manage your finances.  % of Income Spent Say you...

Every month, I have the same reaction to the percentage of the monthly budget that goes towards rent. It's a large chunk of money, and quite frankly too much in my opinion. Unfortunately, the rent isn't something that can easily be changed ( at least at the moment ). I decided that my energy would be better spent focusing on spending categories where I could make a difference, that is, categories that did have some wiggle room.  Below is the breakdown of the monthly budget.   Monthly Budget Income Allocation Housing 54% Food 18% Savings 15% Transportation 3% Giving 3% Personal 5% Lifestyle 2% Health 0% Insurance 0% Debt 0% You'll see that most categories are below 5% which is great, and no debt is an added bonus. So what next? A few weeks ago, I posted about going over budget on food and groceries. This was not something I wanted to repeat, so of course, it was a topic for the next budget committee meeting. Upon reviewing the budget it was determined that after housing ex...

Budgeting and saving can be challenging at times, but here are some tips to get you started! Create a budget - you telling your money what to do.  Stick to the budget - really use it to limit extraneous spending. Watch out for wasteful spending . Do you need that? Put it back! Try to go a week without making extra purchases - During a typical week, I'm back and forth to work. I rarely spend any money during the week.  Bring your lunch and snacks to work -  limit going out to eat and trips to the vending machine.  Buy Groceries - While you may be spending money on groceries, grocery shopping can amount to big savings. This typically means that you're cooking and eating at home which usually is less than money you would spend in restaurants.  Stay home some weekends -  If you're anything like me, a day out usually means spending money. Picking up items here and there, going out to eat, throw in a movie and drinks and there goes your money! Find fre...

If last year was a great year financially, keep the momentum going!  Go ahead, CELEBRATE! If last year was a terrible year financially, figure out why and if it was something in your control, it’s time to take control! Money is Tricky! The holiday season threw me a bit. Now working for a company where holidays require the use of personal time is taking some adjustment. For one, I barely had any leave hours to use for the holidays. So what did that mean? That means I needed to make some budget adjustments as my next few checks were going to be short ( from like November to January... ouch ! ). Hours I did not have were deducted from my paycheck. >>>>>>>>> 😢😢😭 <<<<<<<<< Additionally, I was in the process of moving which tends to be a major expense (1st, last month’s rent, security deposit, moving company/truck, utility transfer fees, and more on top of paying the current’s month rent at the old place). It surely ...

Check out this week's video post on zero-based budgeting. 

Start yourself off with a clean slate, start each month with a clean slate. $0 Balance Due It's a new day, a new week, a new month. How's your slate looking? Are you carrying a lot of debt over from month to month? 😢After paying your rent do you still have lots of expenses crying for your attention?🙋 Today's post will share a technique I use to start of each month debt-free.  I keep a monthly budget; using zero-based budgeting(Put simply this is you telling your money what to do: Current Month's Income - Current Month's Expenses/Spending = $0 ). I typically update my spreadsheet weekly (sometimes biweekly...trying to do better) with the recent purchases and payments. This helps keep me on track and lets me know how much I have left to spend in each category.  If I see that I've spent 75% of the grocery budget and it's only week 2 of the month, there is a problem and I need to carefully watch my spending in that category for the rest of the month...

When you know better you do better! First, I would like to commend you for visiting this blog and reading this post. Why? It says a lot about who you are and your interest in your finances. A big part of " Managing your Money Like a Boss " and being debt-free is knowledge. If you're reading this, that means you're actively learning and growing or reinforcing the knowledge you may already have. Have you ever heard the phrase "Knowlege is power"? It's true. Now, knowledge without action/activity is somewhat useless, but acquired knowledge gives you the power to make informed decisions.  When it comes to managing your money, you want to be knowledgable and in power. The best way to do this is to learn as much as you can about finances, budgeting, money management, debt management, investing, etc. No one expects you to be an expert in all topics, but knowing a little something can take you far.  Here are some ways to increase your financial know...

I'm sure we've touched on this in other posts, but this week I want to talk about the importance of having an emergency fund. Trying to save money when you're drowning in debt is unlikely, but once you can start putting money away, you want to make that a priority. Show me what you're working with. Are you living within your means?  First review your expenses. Do you know what your total expenses are each month?  Next, calculate your net income. How much are you bringing home?  Now, do the math. Subtract your expenses from your income. Do you have a positive or negative balance?  If you have a negative balance, it's important to carefully examine your expenses.  If you have a positive balance, that's great. There still may be room for improvement, but you're definitely on the right track.  Track your spending for a few months. This will help you get a clear picture of what's going out to what is coming in. Create a budget - Once you ...

I write about saving often because it really is important. As important, is finding the saving strategy that works for you. Everyone is different and what works for one, definitely will not work for all. The idea is to find what works for you best so that you're setting yourself up for success. I have been a big saver for as long as I can remember. There was never a time in my youth or adulthood where I wanted to spend every dime I had to my name. It's just something I never fathomed. Maybe it was fear of not having or just the comfort of having. I'm not talking huge sums of money, but from a young age, I realized the importance of not spending it all. I'd save change that someone had given me or money earned from being rewarded for a good report card. When I finally started working (McDonald's - Age 16, minimum wage) I tended to save most of each check. The amount I allocated for myself was easily less than 25% of what I brought home. In numbers, a $130 check m...

Small amounts can add up over time.  It's easy to overlook the small ways that you can protect your finances. Here are a few tips that can help you save money that may otherwise be wasted on fees.  Bank Accounts - Find a bank account that doesn't charge fees or find an account where you can meet the minimum requirements to have the monthly fee waived. Monthly fees vary, however, they can easily add up. Instead of paying the bank, that money could be added to your savings/rainy day fund.  Car Insurance - If possible, it's ideal to pay your full car insurance premium in full. Why? Typically, when you pay monthly (or other split methods) there is usually an extra fee charged to each payment. Many people do not pay attention or notice it, but it's there. Those fees go away when you pay in full and sometimes even with a discount.  Auto Pay Discount - Some cell phone companies (and others) offer a small discount when you sign up for auto pay. You no longer have t...

YOLO (You Only Live Once) We've all heard this phrase, and it definitely holds true. Another is "Life is short". Also, but only sometimes true. While we know that we only have one life to live and tomorrow is not promised, we cannot spend every dime we have to our name today because if we are fortunate enough to see tomorrow we still must be able to "live". This is not meant to be a dark topic, but in life, we must make complicated financial decisions. Because YOLO, you may want to enjoy life to the fullest, and that you should. This, however, is not an excuse to be irresponsible. Enjoying life to the fullest does not mean blowing all of your money on fun and entertainment. Yes, you can have a social life.  Yes, you can go on vacation.  Yes, you can treat yourself. Before you do all these things, just make sure you have some sort of plan in place. Create a budget for the major categories in your life. How much do you want to spend on fun and entert...

Did you know? Did you know that in some situations the best time to shop is before you even need a product? These items include toiletries, paper products, drug items, canned goods, etc. You actually have more buying power when you buy your items in advance. Why? You ask. The reasons: You have more flexibility more options you can shop around you can take advantage of sales and you can also make use of coupons. What's wrong with buying items only when you need them? The truth of the matter is, everyone cannot afford to buy in bulk but the real truth is you cannot afford not to. The initial investment may seem greater but when you exercise your options you can do so much better than when buying things when you need them. Think about convenience stores, most of the time there is a huge markup on items; do you know why? Because they can, you pay for the convenience. If you just went in the bathroom and realized you are down to your last roll of tissue and you have a ...

The Potential Curse Ever been tempted to purchase an item because they promise 18 months same as cash? Or perhaps you're shopping at your favorite department store and the cashier asks "would you like to apply for a credit card and save 25% percent on your purchase today?". Desperately in need of a new car, have you walked into the dealership focused solely on getting the monthly payment you can afford? Warning!! Proceed with caution.  What sounds like a great way to SAVE money could actually COST you in the long run. The truth is any of these situations can work in your favor or have a totally opposite effect. What comes into play is interest rates. Bankrate.com defines an interest rate as: the proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. It is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account. Why d...

No matter how much money you make, what matters most is what you do with it.  Whether you make a little or make a lot, the way you manage your money can make or break you. Did you know that there are people who have high incomes but still live paycheck to paycheck? Did you know that there are some people with low incomes who live comfortably and do not live paycheck to paycheck? 😲It's true! 😲 Higher income doesn't always mean that one is rolling in the money and lower income doesn't always mean that one is stuck on broke. The key is to not live above your means.   Living above one's means is often a recipe for disaster. Do you really need a brand new car, a massive home, and the newest cell phone all at the same time? All those things come with hefty price tags and additional considerations. You want to minimize your expenses and maximize your income. Your income and expenses should NOT be equal and your income surely should not be lower than y...

Let's take a moment and think about small changes that can make a big difference in your finances. Are you ready? Let's go! Are you blessed with free meals at work? If no, please continue reading.  This week's tip is to bring your lunch and snacks to work.  While it's true some companies offer free meals  (or meal vouchers) to their employees, most of us do not receive this uncommon fringe benefit.  The rest of this post would be applicable to the "rest of us".  Do you bring your lunch to work more often than not? This is important for a number of reasons.  The truth is spending money every day  on lunch and snacks isn't doing you any favors. Face it, fast food has very little to no nutritional value and most often no financial value at all . You may argue, "I order from the value menu"; while it may not hurt the finances as much, it  could be harmful to your health, which actually can later hurt your finances, but I digress.  E...

The title is a little scary huh? Sounds like you can't win when it comes to money. One phrase that has become popular is "more money, more problems", but even those with no money or very little money often share this feeling. So what can you do? Does money really equal problems? Well it can, but it doesn't have to. What is this blog about? Why should you care? This blog will post weekly topics concerning money and money management. How can you get the most bang for your buck? How to avoid over paying? How can savings turn into big rewards?  There is a lot to discuss. How you manage your finances and responsibilities will determine the type of "money problems" you will have. How about having some extra dollars after paying all your bills? Now that's a problem worth having!😏 Stay tuned!