Debt Free Life Hacks

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...

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...