Debt Free Life Hacks

I once worked for a company that offered an Employee Stock Purchase Plan, or ESPP. I understood how they worked in theory—I'd read about them, understood the concept of the discount and the mechanics. But I wanted hands-on experience. There's something about actually doing something that makes the knowledge stick. So I enrolled and decided to go all in. I maxed out my contributions at the full 15% allowed. During the contribution period, 15% was quietly taken out of each paycheck and accumulated in the background. On the purchase date, my accumulated contributions would buy me company stock at a discount. Then I learned a hard lesson: I was employed seasonally, which meant I wouldn't be employed on the purchase date. I wasn't eligible to complete the transaction. But here's the thing—it wasn't a waste. My accumulated contributions got paid back to me in a lump sum on my final paycheck. While the company held onto that cash during the contribution period (c...

  If money had a personality, it would reward consistency and punish neglect. Treat it right, and it builds security. Ignore it, and it finds you at the worst possible moment—like when your car breaks down the same week rent is due. The good news? You don't need to be a finance wizard to win with money. You just need a few solid habits and the patience to let them compound like interest on a good day. Let's break down the core principles that turn financial chaos into calm. 1. Build an Emergency Fund Think of your emergency fund as your financial seatbelt. You hope you never need it, but when life swerves—and it will—you're very glad it's there. Aim to save three to six months of basic expenses. Not "luxury vacation" expenses. We're talking rent, food, utilities, and transportation. The essentials. Start small if you need to. Even $500 is a powerful first line of defense. What matters most is building the habit of paying yourself first. Once that bec...

Humans have some horse-like tendencies. Before you get offended, let me explain. I recently went horseback riding for the first time and during that ride, I learned a lesson or two. We chose a private ride instead of a group ride, so there were just three horses including mine. Well, as we were riding, a large group with maybe 15+ horses and riders was passing us. They were going left, and we were going right - well, should have been going right. Unfortunately, my horse Laredo decided to go off course and go left with the group. My memory lapsed and I was unsure of what to do, I tried to do as I had been instructed, but Laredo did not want to turn around. Without getting too far into the weeds, what I learned that day, was that horses are social animals who exhibit herd behavior explaining why he wanted to follow the other horses.  People are similar, often following the crowd. This tends to happen in many facets of life, but we also see this in the world of finance and investing. ...

Shoulda, Woulda, Coulda I'm typically not the shoulda woulda coulda type of person, but when it comes to saving for retirement there are some things I would have done differently had I known better. Ignorance may be bliss until you realized that such bliss may have cost you hundreds, really more like thousands in potential earnings and growth.  😲 So what am I babbling on about? The value of time and the power of compound interest . 🤑 I'll Contribute More Now and Catch Up There's a scenario that describes two different investors who begin investing, one starts in their 20's, the other in their 30's. Long story short ( because the long story may bring actual tears to your eyes😢 ), the one who started at a younger age, contributed less, and saved for a shorter period ends up with more money at the age of retirement. See what I mean about shoulda woulda coulda? Yeah...it hurts! Why didn't anyone tell me? With that being said, It's usually best to start wher...

Did you know that the government incentivizes taxpayers for certain things? It's true. For example, the government offers the Retirement Savings Contribution Credit, commonly called the Saver's Credit. This tax credit rewards taxpayers who invest in their future by saving for retirement. It reduces your taxes while also encouraging you to save for retirement. How much is the credit? The credit is up to $ 1,000 (up to $ 2,000 if Married Filing Jointly). While this may not seem like very much, every little bit helps, especially when reducing tax liability.  How does it work?  Based on your Adjusted Gross Income (AGI) and filing status, you can receive a credit of 10%, 20%, or 50% of eligible contributions to a 401(k) or an individual retirement account (IRA). This is a non-refundable credit that reduces the amount of taxes due but cannot exceed the amount of taxes owed.  Who qualifies for the credit? Individuals 18 or older who cannot be claimed as a dependent on an...

  Saving money is great, but watching your money grow is even more rewarding. The rate at which your cash grows depends on the vehicle used to save and invest. When you look at the typical savings account, we can see by the meager interest rates ( if any ) that our money won't do a lot of growing - at least not fast.  So how long will it take to double my money?  There's a simple trick to estimate how long a particular investment will grow based on the interest rate earned; it's called the Rule of 72 . Basically, you take the number 72 and divide it by the interest rate (rate of return) that a particular investment would earn.  Years to Double  = 72/Interest Rate  So if you have a $5,000 investment that will earn 6% per year, then using the Rule of 72, 72/6 tells you that it would take approximately 12 years to double the investment ( $10,000 ). Of course, the higher the interest rate, the less time it would take to double the investment.  Doubling the...

What if someone promised to give you $.50 on every $1 that you put into your investment account. What about $1 for every $1. Would you accept their offer or pass?  The answer is obvious You accept! When it comes to managing money like a boss, you are not going to pass up 💰💸🤑 FREE MONEY💰💸🤑 . Unfortunately, some people do. While many employers offer retirement plans where employees are able to invest and earn, there are still employees who are not taking advantage of these opportunities. Amounts will vary,  however, employers often will match a percentage of the dollars you contribute up to a certain max. No matter the amount, it is often in your best interest to contribute and take advantage of any free money that may be available to you.  Get Started Better late than never. If your employer has a retirement plan and you qualify, you'll want to participate. If there is a match, at the very least contribute up to the match. You may be thinking, "I can't afford to cont...

A year ago, I decided that as a birthday gift for myself, I would get a one year certificate of deposit. After doing a little research, I found one that offered a 2% interest rate for a minimum deposit of $2,000. Well, I definitely wasn't going to make a fortune with this rate, however, I knew for one year I'd have $2,000 put away that couldn't be touched ( without a penalty ) and it would grow a little during that period. Since penalties are a no-no, I moved forward, confident I would not touch that money for a year. What is a Certificate of Deposit (CD)? A certificate of deposit is defined as "a certificate issued by a bank to a person depositing money for a specified length of time." The money earns an interest rate premium in exchange for investing for that set period of time. Should I get a CD? Perhaps you have a little extra money sitting aside and you are trying to figure out what to do with it. If all your bills are paid, your emergency fund is fully funde...

Maybe the best motivation to get your finances in order is when you really take a look at your finances. Knowing how much you make and how much you spend is only a piece of that puzzle. Considering all of your assets and liabilities, are you looking at a positive or a negative difference? If  the difference is negative, than that is motivation to pay down debts. If the difference is 0, that’s good because you have no debt, but motivation to build assets up.  If the difference is positive, you’re definitely headed in the right direction. Keep it up! What is net worth? Most simply speaking, net worth is the difference between your assets and liabilities. If all your loans and debts were paid, how much money remains? Consider that your net worth.  Examples:  Betty has a total of $10,000 in savings, $40,000 in retirement, $30,000 in student loans, and a $10,000 car loan. Betty’s net worth is $10,000 ($50,000 - $40,000). Jackie has a total of $50,000 in ...

Right now during the COVID-19 pandemic, people are spending a lot of time at home. While I'm sure there is plenty that can be done while home,  sometimes boredom sets in. When this happens, some people tend to do a lot of extra snacking, others do a lot of extra spending.  Snap out of it! The time spent at home is a great opportunity to put your money on a diet. An opportunity to slow the spending, to focus on saving and investing. Instead of wastefully spending money online ( which only lowers your net worth ) focus on finding ways to increase your bottom line.  Potential Saving Opportunities as a Result of Being Home Savings on Gas With many people now working from home, or temporarily home, you're likely to do less driving which means less money spent on gas. For essential workers, gas prices are low right now so there are still some savings, as a result.  More time at home If you're an on-the-go type of person, being home for so long can be...

Are you doing all that you can do to secure your financial future? It’s all too easy to put off saving as if you’ll get to it another day. What we must realize is that time is not on our side when we wait. The magic of compound interest ( think interest on interest ) happens over time. The longer your investments have to build and grow, the bigger your nest egg will be! So what can you today? Act! Act now! Don’t put off saving any longer. If your company offers a retirement plan, contribute. If your company does not offer a retirement plan, find an investment company to open one with. Research! Do your homework.   If you already contribute to a company sponsored retirement plan, consider opening another individual retirement account (IRA) such as a Roth IRA. As a new employee with my company, I currently am unable to contribute to the retirement and must wait a year. What to do in the meantime? Something I’d put off for some time; I opened a Roth IRA and contributed th...