Debt Free Life Hacks

  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. For example, the government offers the Retirement Savings Contribution Credit, commonly called the Saver's Credit. This tax credit rewards taxpayers who invest in their future by saving for retirement. It reduces your taxes while also encouraging you to save for retirement. How much is the credit? The credit is up to $ 1,000 (up to $ 2,000 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 filing status, you can receive a credit of 10%, 20%, or 50% of eligible contributions to a 401(k) or an individual retirement account (IRA). This is a non-refundable credit that reduces the amount of taxes due but cannot exceed the amount of taxes owed.  Who qualifies for the credit? Individuals 18 or older who cannot be claimed as a dependent on an...

  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...