Debt Free Life Hacks: Managing Money Like a Boss

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...

  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...

 Saving money and budgeting may come easy for some but can be a struggle for others. While you may have no problem restraining yourself from spending or overspending, there are some people who are very good at spending - and sometimes blowing money. Find an Accountability Partner No matter which category you fall into, I bet you know someone who is just the opposite. Maybe it's a spouse, a relative, a friend. These individuals can serve as  accountability partners . Wikipedia describes an accountability partner as "a person who coaches another person in terms of helping the other person keep a commitment."  If you are a spender, having an accountability partner who is more so a saver could benefit you greatly. If you are a saver, reach out to a spender you know and offer to be their accountability partner. What a wonderful opportunity to help yourself or someone else! What does an Accountability Partner do? You establish the rules. Say the spender has a goal to spend less...

This week’s blog may be somewhat controversial. It’s important to always weigh your options and the consequences of financial decisions you make. I recently made a decision that challenges what many financial gurus would recommend. I considered the consequences and decided it was worth it. So what did I do?  I’ve been wanting to upgrade my mobile phone, something I don’t do often and when I do it’s never the latest and greatest because I just need something that is practical and reasonably priced. The phone that I’m wanting is the latest model of my current phone, and an ideal fit for my needs ( and tiny hands 😂). The Problem The problem is the phone is much more than I feel is reasonable for a phone. Cell phones discounts are extremely rare these days 😞 and so there’s not much wiggle room when it comes to getting a “good deal”. It just doesn’t feel right for me to spend so much money a cell phone. I need a deal! My Solution To feel good about the purchase, I decided...

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 ...

In times of uncertainty, we can sometimes become anxious and begin to panic. This is one of those times where a lot of things are happening all at once. Businesses are temporarily shutting down, schools closing, some are facing layoffs, the stock market has hit record lows. There are a lot of moving pieces, but we must remain calm, work together and get through this.

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...

Words of Wisdom from a twelve-year-old. With a five-second countdown, I asked my twelve-year-old nephew to give me a topic to write about for the blog. He said that was too much pressure, so I turned around and gave him an additional three seconds. 😆The topic he came up with was to only spend money on necessary things. To say that I was impressed is an understatement.💕👍 First of all, many adults do not have this mentality, and if they don’t, it’s quite likely that their children are the same.  Adults who are responsible with money are likely to have children who are responsible with money. What does it mean to only spend on necessary things?  It means that once your basic needs are met, everything else is extra. Food , Clothing , Shelter, and Transportation are all important things. Beyond that, it’s easy to become a bit wasteful. We’re all guilty of it, but being mindful of how and why you’re spending helps you to gain more control. This does not mean that you should...

This year, I'm trying a new savings strategy. I'm still doing the 52-Week Money Challenge but also trying another that I saw online. Saving Strategy - Multiply the Month by Number of Days It is quite simple. You take the month number times the number of days in the month and that is the amount you save. For Example: January is the first month (1) and has 31 days. 1* 31= 31 so you save $31. February is the second month (2) and there are 29 day this year. 2*29=58 so you save $58.  This pattern continues through December. It's just that simple! A little savings every month and by the end of the year you have an extra $2,382.  The strategy may not work for everyone, but find one that works and stick to it. This year your challenge is to make saving a priority! 

The end of the year is near! It's a great time to make final contributions, finish up challenges, and reflect on your money journey. Did you save as much as you wanted to save? Did you spend more than intended? What challenges did you face? What unexpected expenses threw you off track? Were you able to get back on track? Did you pay off one or more debts? What stands out? As we plan and set goals, we must be reasonable and flexible. Life happens, that's just a fact. Recognizing what went well and what did not allows us to plan for the future. If this year car troubles hit the budget hard, it may be time to budget more for future repairs and maintenance or even create a savings plan for a new car. As mentioned in a previous post, I took part in the 52-Week Money Challenge for the second year in a row. I've made my final payment and have successfully reached this year's goal. It's so rewarding to set a goal, work towards reaching that goal, and finally reach...

They only person you should be outdoing is yourself! Too often, people get caught up in what other people have or what others are doing. It's those social pressures of the world that make some people rush into marriages, rush to have babies, rush to buy houses, rush to buy fancy cars...you get the picture. What's the rush? Why do you think you have to keep up with your friends, family, and neighbors? Who made those rules? As comedian Kevin Hart jokes in a comedy skit, "stay in your lane". If more people did this, there would likely be less debt. That's a bold statement, yes, but think about it. More Debt - Rushing to buy a fancy house and car because that's what "everyone" around you has will likely lead to mortgages and car payments that are higher than what you can afford at the time. Only once you can accept your current financial position and only make purchases that reflect your true values will you find peace. Trying to keep up with ever...

Have you ever heard someone say they're going to drive their car until the wheels fall off? While we know good and well that it's just a figure of speech, it makes great sense. Automobiles are non-negotiable for most of us; we need them to get from point A to point B. That doesn't mean we need new ones every couple of years. A car note does not have to always be a part of one's life. According to Edmunds ,  On average, a new car loses 11% of it's value the moment you leave the lot. How crazy is that? So while some may consider their car to be an asset, in all actuality it is nothing more than a huge liability that loses it's value every day. The value of a car almost in all cases depreciates rather than appreciates. This means we must appreciate our cars for just what they are, a necessary expense. This means it's important to be selective and thoughtful when making a car purchase. Look for a reliable vehicle, that has what you want and need, that...

There's a great saying that I learned from my mother,   Treat yourself don't cheat yourself .  I'm all for this, and I enjoy a treat when well deserved. An important question to ask is, are you doing too much treating? People work hard and I believe that when you work hard, one should also play hard.  In this light, there is nothing wrong with rewarding yourself for accomplishments or reaching major milestones. The key is to make sure your rewards are reasonable and fair. Reasonable and Fair? You just successfully completed a challenging night course and to celebrate you decide to treat yourself to dinner at your favorite restaurant. That's a reasonable and fair treat. If you went out and leased a brand new car to reward yourself, that purchase is not as reasonable and is more a trick than a treat. The trick is you'll have payments every month, higher insurance, and more debt. Rewarding yourself once has now become a reoccurring expenses.  That exam...

You ever heard someone proclaim, "the more you make, the more they take"? Most likely they were talking about a paycheck and the amount of taxes taken out of it. Perhaps you worked overtime or received a bonus and was expecting a pretty nice check only to have your bubble popped when you realized that taxes have too taken its piece of your pie. What can you do? Gross Pay vs Net Pay Gross pay is what you earn before anything is taken out (deductions, taxes, etc.).  Net pay is the amount you're paid after taxes and deductions.  Gross Income could be $4000 while the net or take-home pay is $2800. There are a number of factors that contribute to the amount taken out of a check. In this post, we're looking at how to fully take advantage of pretax deductions to hopefully lose less to taxes. Why taking more out before taxes is a good thing... We're all responsible for paying our share of taxes, but there are ways to lower your overall tax burden. ...

Many people are not strangers to the challenges of health and wealth.  People often struggle in one or both of these categories.  How Health and Wealth Compare When it comes to health, oftentimes we know what we should or should not be doing. We know that we should be eating a healthy balanced diet and staying physically active. We know that we should not be eating lots of fast foods, processed foods and that we should not be inactive.  When you think of it that way it's quite simple.   Health = Eat Right and Exercise Yet, so many of us struggle with it. Why is that? The same is true when it comes to dealing with finances. We know what we should or should not be doing. We know that we should live within, if not below, our means, that we should save more and spend less. We know that we should not be overspending, spending wastefully, and we should not be increasing our debt.  So just like health, when it comes to money, the concept is simple.  ...

The Credit Score... There are a number of factors that come into play when it comes to the credit score. While I won't go into much detail, I'd like to briefly touch on a few things. There is a lot of importance placed on the credit score, and there's plenty of reasons for that. I argue, however, that one should not be obsessed with their credit score. As long as you're managing your money like a boss, there is nothing to worry about. The score(s) tend to fluctuate and vary depending on where you look and when you check. Often times there is no need to worry.  While the image displayed above shows an increase by 9 points, 8 days later it showed a 2 point drop.  It's important no get worked up over these minor changes.  Good financial habits such as those below often lead to higher scores: Keeping Balances Low -  This means you're not carrying large balances from month to month. You're paying bills in full or paying more than just the minimum.  Cr...

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

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...

Should have, would have, could have…often these sayings are just a waste of energy.    In life we have choices and for every choice we make there are consequences. When we do things and consider the intent, it really can make a difference in how things turn out.   When you pull up to the drive-thru and order the super-sized, double bacon cheeseburger and then get home and say I “should have” gotten a salad, you’re not being true to yourself. You understood the consequences but made that choice anyway.   We   must   learn to live without regrets,   decide   and then fully commit. If there is doubt, then rethink your decision before committing. If you want a burger, but you’re really committed to los ing   weight (your intent)…DECIDE not to get the burger. Trust your gut and don’t get blinded by what sounds good in the moment.   What does any of this have to do with me saving money?    If you...