Category

Money Management

Aug 24
Love0

Dear Credit … Let’s Just Be Friends

By Credit, Love and Money, Money Management No Comments

Dear Credit,

I was so excited to meet you that I had to have you! But, I think we rushed into our commitment. Instead of being patient and learning more about you, I fell in love with what you I could acquire with you without realizing the cost of our relationship. So, our financial one-night stand turned into a long-term financially abusive relationship.

You didn’t change … I did.

I was surprised when your “giving” demeanor changed into “Debt,” the “Taker.” But, that is just a part of your personality.

Now that I am wiser, I realize that our relationship is financially and emotionally unhealthy. For example, when I started having financial problems, you were relentless in your demand of my money, time and emotions to satisfy you.

It’s not you … It’s me.

Credit, you are who you are. And because I was financially promiscuous and did not use financial contraception (a budget) with you, I wound up with Financial STDs (Substantially Tremendous Debt). That financial dis-ease not only infected and affected me, it infected and affected everyone around me, especially my family. I took time away from my family to work to make enough money to relieve the financial hardship I was in with you. I have just decided to make the changes required to have a better financial life for my family and me.

I’m in love with another.

I can’t go on treating the one I love like a financial side-piece. Even though you think that you are the center of my universe, I will no longer work and live my life enslaved by you. I’m actually in love with Money and he’s been helping me get a handle on stabilizing the financial roller-coaster I’ve been riding on with you.

You’re not bad.

Credit, you are not Bad. You are actually a good business partner and friend. I just got consumed with you and became overwhelmed when you turned into your alter ego, Debt.

Let’s just be friends.

Credit, I don’t want to lose you, but our current relationship is financially abusive. I do believe that there are some awesome opportunities for us to partner in the near future. But, this time, I am better prepared to handle this partnership.

Thank you for being there for me.

I do appreciate everything you helped me to acquire. It was indeed a learning experience. Now that I know better, I look forward to having a more productive and profitable relationship with you as “friends.”

Sincerely,

Tarra

Aug 23
Love0

Should I Invest in CryptoCurrencies?

By Investments, Money Management No Comments

Why should I invest in CryptoCurrency?

When most people think of investing they think of stocks, bonds and real estate. Very few people know about a very new asset class that is changing the face of investing and introducing investment possibilities to new investors. CryptoCurrencies have only been around since 2009. Designed as a way to make peer to peer payments over the web, cryptocurrencies have made countless millionaires and offer an investment platform for regular people.

The first cryptocurrency, Bitcoin, was created in 2009. It was designed to allow people to pay for things over the internet without middlemen, like PayPal. Since it’s inception, the value has grown over 4000%. People use Bitcoin as a store of value and to buy things over the web from places like Overstock.com. As more people have gotten into the market, the value has grown exponentially.

As an investment, cryptocurrencies are very attractive to new investors. They are particularly appealing because of the very low entry costs.  It’s possible to start buying cryptocurrencies like Bitcoin for as little as $10.  People enjoy investing in cryptocurrencies because they have huge medium and long range growth potential. Investing $100 in 2010 would have made you a multi-millionaire today. There are lots of reasons why people invest in cryptocurrencies. A little research will help you to find the best reason for you.

Where can I buy CryptoCurrency?

The only place I purchase my crypto-currency is Coinbase. A reputable exchange, Coinbase is one of the oldest exchanges for Bitcoin, Litecoin and Ethereum. It allows individuals to purchase all three of these currencies and store them in an online wallet. Through Coinbase, you can keep track of the value of your investments and also use it to make purchases. Our next blog will discuss digital wallets and where you can spend your new found wealth.

For more information, go to http://www.investnoir.com.

Aug 22
Love0

12 Things You Are Wasting Money On

By Money Management, Saving No Comments

Are you aware of how much money you are wasting?

Imagine being able to save money without impacting your lifestyle by getting control over the items that you waste money on.  Before you start to slash your budget and cut out the fun, re-evaluate the ways that you spend without thinking.  Here are 12 ways that you waste money and how you can change this spending.

Overdraft Fees.

Overdraft fees can be as high as $35 per transaction, so if you have 3 overdrafts per month then you end up spending $105 in fees.  What could you do with the extra money?  You can prevent this by maintaining a cushion in your checking account to reduce the risk of over drafting the account.

ATM Fees.

ATM fees are really harsh because the bank servicing the ATM and your bank both charge you fees to access your money.  Planning in advance will help to reduce ATM fees.  If you know that you will need cash, then plan in advance to get cash from your bank.  Search the web to find ATMs owned by the bank where you have your checking account.  Use those ATMs only.  If you are in a situation where there are no bank-owned ATMs nearby, then go to a place like CVS were you can get cash back.

Late fees.

Late fees add up quickly.  Just imagine paying a bill late every month and each late payment included a fee of $15.  Over the year you would have paid $180.  What could you have done with the extra money?  Reevaluate how you structure your bills to ensure that you have adequate cash flow to pay your expenses on time.  Also, consider setting up automatic payment to minimize the likelihood of paying bills late.

Unused subscriptions.

Look at your bank statements to identify subscription services or automatic monthly expenses that you don’t use.  For example, if you have a gym membership that goes unused, then cancel it.  If you have multiple streaming services that you don’t use, then cancel it.  Don’t pay for things that you don’t use or need.

Clothes that sit in the closet.

Shopping used to be one of my biggest budget busters.  I would by clothes because they were on sale or because I thought that I needed to have it to be in style.  Inevitability, those clothes went unworn and wasted space in my closet because I didn’t have a plan for when I would wear them and if I really needed them.

Buying things because they on sale.

If you find an item on sale, evaluate whether you would buy the item if it was full-price.  If the answer is no, then put it back.

Grocery shopping without a list or while hungry.

Have you ever grocery shopped while hungry?  If so then you probably ended up with a ton of extra food in your cart, and you walk out of the store with way more stuff than you planned to buy and may even go to waste.  Before you walk into the store, survey your cabinets and determine your meals for the week.  After you do this, then create the list and stick to it.

Food waste.

According to a study by the National Resource Defense Council, the average American family wastes on about $2,200 of food per year.  That’s literally throwing money away.  To reduce food waste use a grocery list, buy less, keep track of when items expire, and also get creative about using all of the food before it goes to waste.

Buying items for convenience.

A bottle of water at the gas station can cost $1.50 versus about $.10 if you buy a bottle of water in bulk.  The cost of water can be even less if you fill up a refillable cup.  Try to minimize convenience purchases by planning in advance.

Dining out daily.

You can dine out, but be aware of how often you dine out and how much you spend.  If you buy dinner 5 times a week and pay $15 each time then you will spend $3,900 over the course of a year.  Even if you scaled back to 2 times per week then you will save $2,340/year.  To reduce the cost of dining out, plan meals more, look for dining discounts, and try to take half of your meal home to cut the cost in half.

Not maintaining your health.

Medical costs are expensive and according to a study by Harvard University, they are also the number 1 cause of bankruptcy in the United States.  To avoid high medical costs, focus on prevention by maintaining a healthy lifestyle and going to the doctor and dentist for regular check ups.

Cable bill

With all of the streaming service options, it makes a lot of sense to cancel your cable.  You still have to determine internet, but if you cut the cable then you can reduce your monthly costs and only pay for the services that you use.  PC Mag has a great story about what your tv options are if you cut the cord.

Now that you know where you may be wasting money and how to fix it.  Look at these ideas and determine which area is costing you the most money and then start there.  Once you fix that area, then move on to another.  Good luck!

Originally appeared on EverydayPowerBlog.com by Aisha Taylor, a financial freedom expert who brings a modern and fresh twist to wealth consciousness. Prior to becoming a full time entrepreneur, Aisha spent 6 years in Corporate America in a Fortune 100 as a Senior Financial Analyst. Aisha now works full time in her company Frugal-n-Phenomenal (FNPhenomenal), and she is on a mission of to help women break the vicious cycle of making money but not keeping it, and to help women live frugally yet phenomenally.

Aug 16
Love0

7 Tips for Financial Freedom

By Credit, Money Management 3 Comments

Do you desire financial freedom? I DO!

While interviewing a few millionaires and people who are considered “Financially Free” and living the life of their dreams, each of them shared some tips about how to become financially free. So, here are 7 Easy Tips to Achieve Financial Freedom.

Set a SMART Goal.

Your first goal doesn’t have to be big. Your goal should be Small, Meaningful, Attainable, Reasonable & Timed, which will put you in a better financial position than you are right now. Making your goal too big or too difficult may make you feel defeated if you don’t or cannot reach it. For example, start by trying to save $500 in 6 months. Once you reach your goal, work towards the next one.

Control Spending.

Overspending is the assassin of savings and can keep you in financial bondage. By controlling your spending through a spending plan or budget will help you make better purchasing decisions. Also, do small things to avoid miscellaneous spending that takes a big chunk out of your budget. For example, avoid getting that $5 cup of coffee every morning; bring your lunch to work instead of eating out every day; look for season sales where you can get 50-75% discounts for clothes or technology; and cook dinner instead of eating out every night. You will see that you will save a heap of change over time.

Save with a passion.

You have to be passionate about your savings in order to make real substantial progress. Being half-hearted about your goals won’t get you anywhere. You maintain momentum when your saving is driven by your passion. Remember, financial freedom doesn’t come free, it comes with a price. In order to reach your goal of financial freedom for your future, you must first make small sacrifices now. Develop a monthly savings goal with an actual dollar figure and use discipline and self control to reach it.

Avoid high cost mistakes.

Major money mistakes are by far the best way to sabotage your financial future. We are all probably guilty of at least one big financial blunder in our past. In life there are always setbacks, delays, obstacles, and problems to overcome. If you can avoid high cost mistakes by staying focused on your priorities and goals, you can continue on your path with minimal or no disruption. If life throws a monkey wrench at you, remember to keep focused with positive thinking. Stay optimistic, even in the worst of times. Our attitude towards each problem, dictates our success or failure in overcoming them. Use any disruption or setback as a motivator to work harder, catapulting yourself forward.

Invest with diligence.

You don’t have to be a stock broker to know how to invest. All it takes is a little self-education and desire to do so. You can start by starting a 401k with your employer, if they offer it. If they don’t, then open a Traditional IRA (Individual Retirement Account) or Roth IRA. Start making small contributions to the retirement savings account on a consistent basis. For a 401k, you should make sure to contribute enough to get the company match, if they offer it. Most companies match contributions up to 6% of your weekly gross pay. Of course it will vary from one company to the next. Start contributing as soon and as much as possible. Starting at a young age will increase your chances of having a nice nest egg at retirement. Time and compounding will work for you.

Timing is Everything.

Bad timing in finances can be devastating. Moving ahead too quickly by making a purchase of a big ticket item before you can really afford it can be detrimental. Timing is crucial with purchasing and investing. For example, when purchasing a vehicle, go shopping in October, close to the end of the month. This is when most dealerships get their new shipment of the new year vehicles. They usually have great deals on current and past years models to make room for the upcoming year’s new models.

Create 7 Streams of Income.

Identify at least 7 ways that you can create revenue. Work on the first 2 – 3 by establishing a plan of action, seek assistance, and execute. Then work on the next 2. Streams of income could include Employment income, investments, home-based business, etc. This is powerful because if one of your streams of income is stopped or reduced, you will the others to fall back on. Helpful Hint: Be creative!!! Remember all great new businesses or ventures start with one small creative idea. Steve Jobs, the founder of Apple Computer started his business by selling his car for supplies and building his first computers in his parent’s garage.

Using these 7 easy tips will help you on your journey to financial freedom.

Comment your tips for financial freedom below.

Aug 15
Love0

Financial Talks For Every Stage Of Your Relationship

By Love and Money, Money Management No Comments

When do you start talking about money in a relationship? While financial compatibility in a relationship is important, no one wants to explain their 10-year student loan payment plan on a first date. Nevertheless, money habits (especially the less-than-favorable ones) and debt should be out in the open long before a couple moves in together or gets engaged, in my opinion. Similarly, within the first year or two, I think it’s relatively easy to gauge whether your financial values align. If one person is pushing for an all-inclusive resort vacation in Tahiti, while the other would rather take a local weekend camping trip, it’s worth discussing the difference in spending styles.

For me, financial compatibility is not about how much my partner makes, or how much debt he has, but about how he chooses to spend his money and approach savings. I honestly don’t think I would see a future with someone who spends $50 at a bar every weekend but isn’t saving any money, simply because that’s not compatible with my relationship to money.

Because money is the “leading cause” of strain in relationships, it’s important to get comfortable talking about money with your partner in an open and non-judgmental way. To help navigate these love and money conversations, I outlined five financial conversations and when you should have them in a relationship. I then asked two financial professionals about each conversation and when it should come up. Ben Barzideh is a wealth advisor at Piershale Financial Group, a wealth management firm just outside of Chicago, and Kimberly Foss is a certified financial planner and president of California-based Empyrion Wealth Management. Here’s what they had to say about these five financial conversations.

Financial conversation: How much debt do you have?

When to have it: When it starts to “get serious,” which will be different for everyone, but likely in the first two years of a relationship.

Foss: ‘Fess up about the debt too soon and you risk scaring that special someone away. However, if you wait too long, it can complicate things. If you are becoming very serious in your relationship, it is time to speak up. [If you carry a lot of debt], think of the roles being reversed — wouldn’t you want to know? You might be surprised just how understanding and open your partner is.

 

Financial conversation: Are our money habits compatible? If not, how can we meet each other halfway?

When to have it: When it starts to get serious.

Foss: Some people are spenders and some are savers. This might seem harmless with small-scale purchases, but it will be a hurdle to overcome when financial obligations and necessities [come into play]. Similar to discussions about disclosing debt, honest communication about your attitude toward money can bring understanding and harmony to financial decisions.

Barzideh: You find out if your financial practices are compatible with your partner’s by having an open conversation to assess where you agree and where you disagree. The areas of disagreement need to be compromised on in order for the relationship to [progress] smoothly. It’s important to be considerate and respectful of your partner’s wishes and habits.

 

Financial conversation: What are your future money goals?

When to have it: Before moving in together.

Barzideh: In the first five years of a relationship, there needs to be a lot of open communication about every aspect of your current financial picture and also your vision for the future. One of the most critical components of a successful relationship is communication, which absolutely pertains to finances. It’s very important to create an accurate snapshot of [your] current financial situation. Identify core values, goals and priorities. Basically [ask each other], what are you looking to do with your money and your life?

 

Financial conversation: What’s mine and what’s yours? What happens to our shared purchases if we break up?

When to have it: Before moving it together.

Foss: Until you are married, keep major purchases separate and documented. Because you don’t have the same legal protections as married couples in case of a split, it’s a good idea to keep track of who paid what toward every major purchase. Detail out a “yours, mine and ours” list of furniture and household items when you move in together.

 

Financial conversation: Do we want to merge our finances?

When to have it: Around the time of engagement — or after at least a year of living together if you see each other as life partners but don’t plan on getting married.

Foss: Couples should do what’s right for them. I have a client who says she will never marry her significant other and never combine finances with him. I have another client who combined finances with her now-husband shortly after they were engaged. Typically, I recommend keeping finances separate until the knot is tied as the laws apply differently to married couples as opposed to two people cohabiting. If you do combine finances before marriage, [I recommend] leaving some accounts separate for personal needs or gifts and drafting an agreement (define who “owns” each financial account) before any finances are combined. It may or may not help you legally in the event of a nasty breakup, but it’s better than nothing.

This article originally appeared on Forbes.com by Maya Kachroo-Levine, a personal finance writer, editor and digital content consultant. She loves to find new ways to budget and side hustle, whether through her own trial and error or by interviewing other people. Her work has been featured on The Atlantic, Refinery29, LA Weekly, and Marie Claire, among others. Follow Maya Kachroo-Levine on Twitter: @mayakach.