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...

  Let's face it, student loans are annoying! I totally get it. If you were lucky enough to never have to deal with them, good for you! That's awesome. Unfortunately, that isn't the case for many students. Student loan debt has been reported to be in the billions and rising steadily 😔.  It's going on two years now that we've been dealing with this awful pandemic. It's been a tough time for the world. Some are doing better than others, but we cannot deny that it's been rough. On top of that, businesses have been impacted which may have even reached your pockets. Dealing with all of the crazy on top of staying current on your bills may be challenging. A student loan is likely a bill you'd like to forget and maybe one day have forgiven 🤞, and while that's not completely the case, many are getting a little break. Some relief continues to be available for those with student loans. During the pandemic, there have been extensions provided for student loan ...

Sometimes we get so caught up in the day-to-day, that we never take a step back to see the full picture. You may be paying your bills on time, taking care of your responsibilities, and saving, and while those are all good things, are you fully protected? Let's talk a little bit about risk management. What is Risk Management?💭  Sometimes bad things happen, things outside of our control. Simply stated, Risk Management is about reducing the financial impact of adverse events. Some common examples include auto insurance or health insurance. Despite your best efforts to drive safely or eat right and exercise, sometimes emergency situations occur. The financial impact of these occurrences will depend on the ownership and adequacy of the proper insurance, in the case of this example auto insurance or health insurance. A lack of either of the two would cost you more if something were to happen than having the proper coverage.  When we think about Risk Management, we key in on how pro...

Did you know that the government incentivizes taxpayers for certain things? It's true. Take, for example, the Retirement Savings Contribution Credit, commonly referred to as the Saver's Credit. This is a tax credit for taxpayers who invest in their future by saving for retirement. It helps reduce your taxes while at the same time helping you and incentivizing you to save for retirement. How much is the credit? The credit is up to $1000 (up to $2000, 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 your filing status for taxes, you can receive a credit of 10%, 20%, or 50% of eligible contributions to a 401(k) or to an individual retirement account (IRA). This is a non-refundable credit that will help reduce the amount of taxes due but cannot be more than the amount of taxes owed.  Who qualifies for the credit? Individu...

  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 is hard. Especially if it isn't something that you're used to doing.  Maybe you don't have much to save, don't know how to save, or don't see the point in saving. All of these things can make it even more challenging or make it seem impossible. Let's address each of these reasons one may choose not to save. I don't have much to save: Guess what? It is okay to start small. If you're barely making ends meet, you may have to get creative to save, but it is not impossible. Look at your budget and spending and determine what a reasonable savings goal could be. Maybe you'd start off by saving an extra $5 each payday. If you get paid once a week, that's about $20 a month, which adds to $240 a year.  I don't know how to save: I get it; sometimes, we're lucky to just have something left over after paying all the bills and taking care of responsibilities. At that point, if you have something remaining, you may be inclined to go ahead and ...

What if I told you you could buy something without spending any money? You'd probably look at me crazy, but just hear me out. Here's an idea that may work if you are patient. Say you had a laptop that you were looking to replace by the end of the year.  Instead of earning money and saving or putting the laptop on your credit card, you could take a different approach. We'll call this approach the Buy Without Spending Challenge .  Buy Without Spending Challenge 👀 Instead of using earned income to make a purchase for the Buy Without Spending Challenge , you would use the money you already spent to pay for the new purchase. Stay with me now. You'll determine how much you need to save for the purchase and then sell items you own and no longer use until you've saved up enough to purchase the new item. It's like recycling ♲ your dollars; you already paid for the item(s) and so whatever profit you make is like having a second chance to use some of the money you spent. ...

"Money Explained - Credit Cards" Do you pay off your credit card balance in full every month? If so, your credit card company may consider you a deadbeat. According to the Credit Cards episode of " Money Explained," a Netflix series, transactors are deadbeats. So what exactly is a transactor? The episode's narrator defines a transactor as "someone who pays their bill in full every month." 😲Shocked? I know I was. But, once I learned what a transactor was, I realized I am a deadbeat, and I guess I'm alright with that.😂 Credit card companies don't want people who pay back their money every month and they don't want people to never pay back their money. It's OK to be a Deadbeat😮😉 What's wrong with paying your bill in full every month? While bankers and creditors may benefit from you carrying debt from month to month ( they call these customers revolvers ), how does that actually benefit you? It does not.  Typically it's better...

You work hard for your money, and the unfortunate reality is that individuals work hard to take it. As consumers, we must do what is in our power to protect our finances/identity.  SCAM is an acronym introduced by the Justice Department that provides rules/tips on protecting your identity.  SCAM stands for: S - Stingy & Skeptical:   Be stingy and skeptical about giving out personal information ( online and in-person ). C - Check:  Check financial information often (alerts, accounts, etc.) A - Ask:  Ask for credit reports and review them regularly. M - Maintain:  Maintain careful records.  The point is that you want to protect what is yours. It's so easy for information to get into the wrong hands these days, so using these tips could be a great way to help protect yourself. Being s tingy just means you are careful about what information you give out and to who. C hecking your accounts is important because you can potentially catch things early ...

Try not to get too excited, but this week we're talking about taxes! 😆What do you know about FICA? Have you ever noticed the deduction on your pay stubs and wonder what it was all about? FICA stands for Federal Insurance Contributions Act (FICA); put simply, FICA is a federal payroll tax. FICA is the money that comes out of your gross wages to pay social security taxes  ( old-age, survivors, and disability insurance ) and Medicare taxes ( hospital insurance tax ).  How much comes out of your check? The total amount that you pay is 7.65% of your gross wages. 6.2 percent goes to social security tax , and the remaining 1.45 goes to Medicare tax . Unless you're self-employed, your employer helps out by matching your contributions bringing the total to 15.3%. Self-employed individuals are responsible for the total amounts. Keep in mind that everyone's situation is different, these amounts apply to many, but there are exceptions. Individuals over a certain income threshold may ...

 In one of the previous posts, I talked about some DIY automobile maintenance. This video is an example of one simple car maintenance item that can save you a little money on labor.  In this video, I change my engine air filter for the first time. I purchased my engine air filter from the dealership, but you could save even more if purchased elsewhere. Enjoy! Managing your Money Like a Boss sometimes means getting your hands a little dirty (in a good way ) to save more and spend less! 

 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...