Debt Free Life Hacks

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...

Have you ever really looked at your credit card bill? Carrying a balance, even a small one, can add up over time when you consider the interest. Sometimes, statements will include your balance, the minimum payment due, the interest/intersest rate, and the amount of time it will take to pay off the debt if you only pay the minimum - granted, you don't make any new purchases. It can be a little scary and even more reason to pay it off sooner than later.  Take a look at the example below: It’s a good idea to pay attention to your bill - in this case, the creditor is very transparent. Here’s a card with a relatively small balance, a high-interest rate (25.24% ), and a disclaimer. Highlighted in green, it states, “ If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance .” Given the facts - it would be in my best interest to pay more than the minimum - even if I can’t pay it all. Why? Because paying just the mi...

Have you ever taken your vehicle in for some routine maintenance only for the service advisor to provide you with a full list of things you should have done? I'm sure this has happened to many of you, and typically we're prone to think that they know what's best, and although you were getting a simple oil change that was under $100, you'll just go ahead and get all these recommended services now nearing the $400 mark.   Pump Your Brakes Before you agree, find out exactly what is going to be done. If it's an urgent issue that needs immediate attention, by all means, use your best judgment, but if it is seemingly minor items or services you're unfamiliar with, it's best if you do some research.  Doing Your Research Ask the service advisor to explain each of the recommendations. Ask if the recommendations are from the manufacturer or the repair shop. Ask for a printout of the recommended services. Only get what you came in to get and then research the recommend...

Auto-Pay Blues 😨 I'm a big fan of auto-pay. It ensures that bills are paid on time to prevent late fees and interest. Most of my bills are scheduled for payment using auto-pay, and typically it works just well. Recently, however, I discovered that bills I thought were paid through auto-pay had not been paid. How did that happen? I can only blame myself. You see, setting up auto-pay is great, but that doesn't mean you shouldn't be paying attention; I learned that set it and forget it is not the best approach. Why my utility bill was over $400 ?😱 I received an email from the utility company with the balance of my utility bill. When I saw the number, I nearly lost my mind. It was over $400, the highest utility bill I'd ever received. Yes, it had been freezing, but this couldn't be right, could it? After some investigation, I learned that the bill was 3 bills in one. The previous bill, stacked on top of the current bill, stacked on top of the final utility bill from ...