Debt Free Life Hacks

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...

Time is our most valuable asset, and once lost, we can never get it back. That’s why it’s so important to spend your time wisely and make sure your efforts are not in vain. In order to truly manage your money like a boss, you must be vigilant about knowing what goes in and what goes out. Having auto-bill pay is easy and convenient, just as long as you’re actually looking at the bills. It’s easy to miss a charge or charges otherwise. I recently made a call to my internet provider because a bill that is normally $50, was over two times higher, nearly $130. This HAD to be a mistake. There were charges for items and services that should have not been charged. While valuable time had to be spent calling the company, in the long run it was worth it. When all was said and done, the bill ended up being under $7. Had I not been paying attention,   I would have automatically paid the unusually high bill and that would have been the end. The point is to not be too busy being busy th...

As I mentioned in a recent post, last week I started Financial Peace University (FPU). Ever heard of Dave Ramsey? He is the creator of FPU. FPU is a course that teaches participants how to budget, how to pay off debts, how to save and give.  While not in debt, I knew the program still had lots to offer and that I could only benefit from participating.  The course follows 7 "Baby Steps". While familiar with the program and the baby steps from the books and podcast, I still learned some new things. One thing was that no matter what your financial situation there is always room for growth and room for improvement. I've become even more determined to build wealth and do what is necessary to protect said wealth, once accumulated (when, not if 😁). I went home immediately trying to think of ways to grow my emergency fund (Baby Step 3) and then focus on Baby Step 3b, which is to save 20% for the down payment of a new home. Another thing that I was introduced to wa...

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...

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 ...

You pay $200 a month for cable and have NO savings! 😟 In today's world of streaming media services, it is sometimes hard to believe that some still rely heavily on cable services and satellite TV.  Of course, sports buffs may be hard to convince, but there are other options.  The primary purpose of this post is to get into the heads of those who put nonessential services before creating a safety net for themselves and those they may support.  My goal is not to bash cable but hear me out.  If you have reoccurring services/bills for nonessentials, consider how going without ( even for a short tim e) can help you to build up savings/emergency fund.  Examples of Services and Potential Annual Savings: Service Potential Annual Savings Note Cable/Satellite $1100+ Assuming a bill of between $85 - $100 monthly. Savings will vary based on the actual amount paid. Satellite Radio/Streaming Radio, Game St...