Are you in Financial Denial? If the answer is NO, then you probably are. Just kidding. However, Jimmy Ingrilli, from the Tayne Law Group Blog, shares 5 signs you may be in Financial Denial.
What separates the financially responsible from those in financial denial?
While the reasons may differ from person to person, one answer can be their willingness to correct money problems if and as they arise. A hallmark of being financially responsible is taking action to right your money ship, while someone in financial denial is not able to admit they are having financial problems. It can be hard to admit or even notice a money problem exists, so here are some signs you may be in financial denial.
You’re Not Honest About Your Finances
If you’re dishonest, look to avoid conversation, or even downplay financial issues, then there’s a good chance you are in financial denial. Avoiding financial problems will not only hurt you, but can also hurt your loved ones. Financial dishonesty can lead to further disaster as your family members may spend money based on how they believe they stand financially. Someone who is financially responsible should know their income, exact debt, credit score, what their budget is, how much they should save, and have long and short term financial goals.
You Borrow Money Often
While borrowing money may seem necessary at times, a person living in financial denial believes borrowing money is the norm. They may rely heavily on credit cards or borrow from friends and family in order to pay off debt and bills. In other words, they “rob Peter to pay Paul.” This will never get you on track as you are only taking on debt to pay other debts and will never teach you responsible financial habits.
You Think ALL Your Debt is Good Debt
These days, debt is a household word and is often used to help us purchase big-ticket items. Good debt can be any loan you take on with the ability to pay back or any debt that can generate future income such as a school loan, … (continue reading Signs you’re in Financial Denial)
It doesn’t matter if you have $500 or $500,000 in your bank account, saving money is always a smart decision. Some people chose to save a percentage, while other save a fixed amount. It’s important to revisit your savings plan frequently to know what changes you need to make. Cut costs and optimize your financial situation with these simple steps.
Plan Your Meals Before You Shop
The fastest way to waste money is to go shopping without a plan. Grocery lists are useful, but even then you’re guessing. Instead, plan meals for the week before going grocery shopping. This will stop you from buying items you never end up using. Coupons will also be easier to find because you’ll know exactly what to look for. This is especially important when you are getting foods that can spoil quickly. You may find it better to shop more often so that you don’t waste money on food that could go bad.
Search for Online Coupons
With the internet at our fingertips, there isn’t an easier time to use coupons. For example, you can use coupon codes for Kohl’s to save on many items you need like clothes, shoes and home items. Check to see if the coupon actually needs to be printed out. Many stores will accept the online coupon when you show the clerk your phone. Before you decide to buy anything, always make sure to search for online coupons.
Don’t Buy Bottled Water
Buying bottled water is thinning your wallet. Spend $10 on a good reusable water bottle that will more than pay for itself. Buy a big 48 ounce Nalgene if you’re worried about volume. Filling that bottle up will last you all day. You’ll save money, time, and the environment.
Ditch Your Membership and Buy Home-Gym Equipment
First thing, cancel all memberships you aren’t using. Sure you may hit the gym someday, but it’s been a while. A low monthly membership rate is not a reason to cancel. You’re paying more long-term than if you were to start a higher priced membership in the future. Instead, buy gym equipment that will pay for itself. An average $30 gym membership will run you $360 a year, not to mention travel costs and time lost.
Make Your Own Coffee
It’s pennies to make your own coffee, but dollars to buy a prepared one. Skip the Starbucks and invest in a single serve drip coffee maker that you’ll pay it off with only 4-5 uses. Look for coupons to buy bulk coffee ingredients. You’ll make better cups of coffee than you’ve ever bought prepared.
Saving money doesn’t necessarily mean you have to drastically change your lifestyle. With these tips, saving money can be easier than ever. No matter your income, it’s important to take steps to save for a rainy day.
Not sure when to start your financial planning? Of course, starting sooner is best, but what should we do if we start later in life? In honor of National Save for Retirement Week (October 18 – 24, 2015), New York Life shares some great tips on Financial Planning in your 20s, 30s, 40s and 50s.
Financial Planning in your 20s
Start saving early
Consider this crazy math: Assuming the same hypothetical rate of 5% return on the savings, a 25-year-old who invests $2,000 a year for 13 years can end up with more by the age of 65 than a 37-year old who invests $2000 a year for 29 years, even though the 37-year old invests more than twice as much!1
That head start is what makes all the difference.
And here’s why:
When you save or invest in a given year, your money earns interest. The following year, you earn interest on your original money plus the interest from the year before. In the third year, you earn interest on your original money and interest from the first two years (and so on for years four through “however many you live”).
This is what’s known as a compound interest. And it’s one of the reasons you should start saving now, when you have decades ahead of you for that money to grow. To free up some cash for your initial investments, here are a few simple things you can start doing today:
Be real: First things first. Be realistic about what you actually need and what you just “sort of want.” Invite your friends to dinner and have each of them bring a dish (it’s cheaper than takeout and a lot more fun). Learn to mend your clothes (and add your own touch to them). Save your favorite cup of designer coffee for when you absolutely need it—you’d be surprised how quickly you can afford a term premium.
Embark on a tall order so you don’t come up short: Take the time to sit down and identify your goals: short, medium and long. Define them in clear absolutes: saving up for furniture, a car, or a honeymoon (short term); building a nest egg for a house or apartment (medium term); planning for kids, their college, your retirement (long term).
Give yourself some credit: In order to qualify for the best interest rates on a credit card, car loan or mortgage, you’ll need to build a solid credit history. So pick a single card and stay on top of the payments.
Cut the cord: If a parent or role model is helping you manage your finances, it’s time to take the reins and put yourself in charge. After all, whoever controls your finances controls your life—and your future.
Think before you marry: Remember, your spouse will be your co-money manager, so financial values and views on spending and saving are something you should discuss before you consider a ring.
Put your health first: Make sure you have continuous (i.e., no breaks in coverage) health insurance. Don’t let an unexpected health issue and the resulting medical bills diminish your savings.
While your 20s may have been spent getting to know your worth out on the job market, making some spending mistakes and possibly not putting saving for retirement on top of your priority list, your 30s are the time to be completely and absolutely serious about your financial future.
More likely than not, you’ll have to consider the financial needs of your spouse and/or children, which means your financial responsibilities and expenses are likely to increase as well. Don’t be thrown off track by short-term moves in the market and don’t get distracted by the headlines. Stay on course towards your personal goals. Remember that a disciplined long-term investment approach is still the best way to go. In addition to that general advice, here are some methods for addressing the challenges and coming out ahead:
Get rid of it: Eliminate non-mortgage debt. Nothing frees up cash for your growing family responsibilities like paying off high-interest loans. If you didn’t take care of credit card debt in your 20s, now is the time to do it. Student loans and car loans come next.
Be a number cruncher: It’s time to sit down and do the math. Figure out how much you need to retire and start saving for the investment plans you’ll want.
Put yourself first: Don’t save for your kids’ college tuition before saving for retirement. It may be far easier to take a loan out for college.
Spread the wealth: Diversify and protect your portfolio. You’ll need to weather both the ups and the downs securely.
Ask the hard questions: Plan for the “what ifs” by insuring what you have. Homeowners insurance, health insurance*, disability insurance* and life insurance: they’re all crucial.
With 20 years of work behind you and another 20 (at least) ahead of you, now is the time to prepare for the second half of your career and for retirement afterwards. If you’re fortunate to have a disposable income, try not to dispose of it all. You may want to consider an retirement plan to boost your retirement savings. Remember, you’re far more likely to need that discretionary income in your later years.
To help you secure both your own and your family’s financial futures, here are six targeted initiatives to consider during your 40s if not sooner:
Create a master plan: Figure out when you want to retire, how much you want to earn each year and create a realistic map to reach your goals.
Sock it away: Once you know how much you’ll need, stay disciplined and save consistently.
Don’t skimp: You may have more expenses than ever; still, it’s important to keep in mind that every dollar you save now can potentially earn you as much as $10 in retirement income.
Keep a close eye out: Scrutinize your retirement plan every couple of years. Make sure your retirement savings are living up to your expectations.
Embrace change: Be open and flexible to changing your retirement age and amount you save as the economy and your portfolio’s performance shift in response to events.
Protect your loved ones: Make sure the beneficiaries on all your accounts are up to date. If you don’t already have one, create a will. And determine if your life, disability* and homeowner’s insurance provides enough coverage for your family’s needs.
If you haven’t started your retirement planning yet, then now’s the time to start. The good news is that you probably have 10-15 peak earning years left to reach your goals. Additionally, many of your larger expenses—like your mortgage—may soon be behind you, so one strategy would be to use those funds to save for retirement. Keep in mind that you’re entering a phase where market volatility can be more of a concern because you will have less time to recover from a dip.
And remember, if you’re in your peak earning years, you should maximize your 401(k) by making sure you are contributing enough to take advantage of your employer’s full match.
You’ll also want to put each of the following on a checklist:
Look out for Number One: No more distractions. Your retirement plan should be your first priority now.
Be calculated: Estimate living expenses and determine what your accounts will be worth when you retire. You can use the calculators available on the Internet to determine these figures, or you can contact your financial professional to give you a more accurate number.
Consolidate: If you have worked for several employers over the years and have accumulated a number of smaller plans, consider consolidating them: this will give you a clearer picture of your plan’s overall performance. It can also make managing your portfolio simpler and easier. Note, however, that your asset choices may be somewhat limited if you choose this option.
Make it an obsession: It’s important to pay close and frequent attention to your retirement plans. Be sure to review them yearly. At this stage, your portfolio and estate planning goals need close attention.
Do a balancing act: Assess the risks and rewards of your retirement portfolio. Keep an eye on asset allocation and make sure you are looking at the percentage allocated to each type of asset at least once a year. Redirect future contributions or rebalance your portfolio between asset classes as necessary.
Play catch-up: Part of the Restoring Earnings to Lift Individuals and Empower Families (RELIEF) Act of 2001 allows you to aggressively build your retirement account now, and in some cases catch up for lost time. Keep in mind, though, that the IRS has specific catch-up limits that apply to individuals 50 and older. Ask your financial professional to help you do all you can to maximize your nest egg now.
Shopping online isn’t always associated with saving money. In fact, some people think it costs them more. However, when you’re a savvy shopper, you can quickly find that online shopping is the way to keep more funds in your wallet.
Money Back Sites
When you shop at the store, you aren’t always receiving money back on your purchases. Check out websites where you can go to that connect you to an array of stores. Then, you can receive money back almost every time that you shop.
Free and Reduced Price Shipping
Perhaps you’re a person who loves to flip through magazines and fill out order forms. Chances are, you are paying a hefty price for shipping when you purchase products that way. Instead of spending your money in that manner, look online. You can often find free or reduced price shipping, especially if you need to stock up on multiple items. Some sites allow you to pay a low price to get free shipping all year.
Comparison Shopping
It’s true that you can go from store to store to see which place has the best price, but you need to realistically consider how many shops you’re going to drive to before you just decide to buy the item. With online shopping, all you need to do is open up another tab on your browser, and you can see where the best deal is.
Bulk Purchases
Buying in bulk at the store can prove trying if you don’t have someone to help you carry everything. Also, you may find that you don’t have room in your cart. You can buy items in bulk online for wholesale or reduced prices, and they can get delivered right to your door.
Coupon Sites
While finding coupons in the weekly circular and so forth is certainly possible, the internet allows you to research coupons for a specific store or website. Doing so can help you to maximize the savings that you get. You can use coupon sites like, 15% off 6pm coupon code, to get the best prices on clothing, shoes and accessories.
Shopping Cart Removal
When you go to the store, by the time you get to the cashier, you might be tired and ready to go home. Therefore, when the total exceeds what you wanted to spend, you don’t bother to put any items back. If you’re shopping online, you can see the shopping cart total rise as you go, and you can quickly remove items if the price becomes too much.
Shopping online may not be associated with saving money, but due to these reasons, it certainly should be. Consider these tips to save money next time to purchase items online.
So, where does a student’s money go over four-years in college?
After four years of all-night study sessions with friends, countless early morning classes, and semester after semester spent learning — with a dash of blowing off steam here and there — what does that piece of paper (degree) actually cost?
In honor of National College Saves Month in September, below is a cool infographic by AffordableSchools.net about the real cost of college and where the money goes.
The bulk of student expenses come from school tuition — and heavy student loans for students that aren’t eligible for scholarships, grants, or other financial assistance.
$23,410: The average cost of in-state tuition for a public university in 2015.
$46,272: The average cost of in-state tuition for a private learning institution in 2015.
$35,000: The average amount of loan debt a 2015 graduate will have to face in the coming years.
Graduate students tend to have higher loan debt than their undergraduate counterparts, with 65 percent of 2012 graduates racking up$50,000 in student loans.
59 percent of students end up not finishing their undergraduate degree, and may have up to $10,000 in debt that they are struggling–or don’t want to–pay back.
Hitting the Books
Once students have set their schedule for the semester, it’s time to purchase the required course materials.
One course worth of books = hundreds of dollars. Students spent an average of $313 per course on books, according to The National Association of College Stores.
The College Board found students paid anywhere from $1,146 to $1,244 for books in the 2014-2015 school year.
The cost of books continues to rise. One study found the price of books jumped 82 percent in the last 10 years alone.
Where to buy? Approximately 66 percent of students still buy their textbooks and college materials from their local college bookstore.
Other students value short term leases on learning. According to a Student Watch survey, 40 percent of college students preferred torent their textbooks rather than purchase them outright.
Plugging In
With more classes than ever going mobile, many students may prefer a tablet or laptop to keep up with class notes, research and term papers. In 2013, technology purchases for educational purposes reached $13 billion.
81 percent: The average amount of students who prefer to study digitally. This marks a 40 percent increase from 2013.
Of 1,700 students surveyed, 77 percent indicated they felt they scored higher by using a tablet or laptop than simple class notes. Approximately 48 percent said that digital-based studying actually saved them time in the long run.
Food and Drink, A la Carte
Everyone needs to eat–and college students are typically strapped for cash. That doesn’t mean they don’t dole out cash for not-so-smart eats.
The price of pizza stacks up. The average college student could spend $2,000 on pizza over the course of four years, according to Mark Kantrowitz at FinAid.org.
Oodles of noodles: still a student staple. At 13 cents a package, ramen noodles remain a favorite for many students–it’s Japanese nickname gakusei ryori translates to “student food.”
Party on…to an empty wallet? Over a four-year time period, the average college student could spent $500 a year on alcoholic beverages.
The freshman five. Freshman typically drink five alcoholic beverages per week–which could negatively affect their academic performance.
Getting Around
Having a place to crash and a way to get around town is essential for every student.
$9,804: average cost of room and board at public university
$11,188: average cost of room and board at private university
The College Board estimates that college students spent between $2,609 and $3,242 during the 2014-2015 school year on transportation, among other personal expenses, including clothing or entertainment.
Test Time
Prepping for graduate school may begin before many college students even cross the stage to collect their undergraduate degree. Graduate level tests such as the GRE and GMAT take precious hours of study–and extra money–to ace.
GRE: $195
GMAT: $250
LSAT: $175
MCAT: $300
Other fees may also apply, including paying the testing site, or having to reschedule. Both the GRE and GMAT charge $50 to reschedule a test date.
Share your comments below.
About Tarra Jackson
Tarra “Madam Money” Jackson is a financial educator, international speaker, author, and wealth empowerment strategist helping you heal, build, and grow your wealth.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
You must be logged in to post a comment.