RuMbO life group

Equis Financial Equis Financial

September 23, 2020

Who Needs Life Insurance?

Jump to Article

Subscribe to get my Email Newsletter

Does healthy living have to cost more?

September 21, 2020

Does healthy living have to cost more?

Many of us may be chair-bound during the workday and may come home lethargic and sluggish – seeming results of a sedentary lifestyle and some potentially unhealthy habits of office life.

You might be itching to break this cycle and establish some healthier habits for yourself, but you don’t want to break your budget either.

If you’re interested in improving your healthy habits – but aren’t interested in spending a lot of money to do it – read on!

Getting more exercise
Many people equate maintaining a regular exercise regimen with an expensive gym membership, but you don’t have to have one to exercise. One can perform body-weight exercises just about anywhere, so getting in some sit ups, push ups, squats, and a brisk jog can be free of charge. Other body-weight exercises, like pull-ups, may require finding a place to do them, but all one needs is a horizontal bar. This can range from a sturdy tree limb to the monkey bars at the playground.

Not sure where to begin? There are a myriad of free videos and programs online for all ages, goals, and body types. (As always, get your doctor’s approval before starting any exercise program.) If an exercise program is all new to you, you might want to start with only 10-15 minutes, then work up from there.

It does require forming a habit to establish a regular exercise routine. For that reason, it’s a good idea to build exercise into a part of your day. That way, a sense of something missing may arise when the exercise is not completed, which can be a motivation to get the workout in.

Eating healthy
This one may be a little harder to solve than the exercise issue, because saving money on your food bill may require a bigger time commitment than you’re used to, with additional shopping and food preparation. The good thing about fruits and vegetables is that many of them can be eaten raw with minimal prep time.

Internet shopping provides a myriad of resources for finding good deals for nutritious foodstuffs. If you’re feeling more adventurous and don’t mind getting your hands dirty, there may also be a local communal garden[i] in your area. Some apartment complexes offer their roofs to be used as gardens, and for those with no other options, growing right in your high-rise apartment is feasible[ii]. One of the best parts about gardening? It may give you some exercise in the process.

Unfortunately, most people can’t raise their own livestock, so for meat (and alternative protein sources) online delivery is an option, as well as shopping sales and using coupons at your local grocery store.

If all of this seems like too great of a commitment (admittedly it may take some extra work), there are other ways to start the journey without running headlong into an agricultural venture. Simply avoiding processed and fast foods is a start, as these options can be more expensive and may offer less in the way of solid nutrition. And if you find the “healthy” option too bland, make a pledge to yourself to stick with it until your taste buds become accustomed to the new foods, or experiment with spices and herbs to increase the flavor intensity.

Eating healthy and beginning an exercise program certainly demand a degree of attention and commitment, but they do not always require a lot of money. Regardless of what advertisers want you to believe, it is possible to stay in shape without a gym membership or expensive home gym equipment, and you can eat healthy without spending a week’s paycheck in the grocery store’s organic aisle.

  • Share:

A Life Insurance Deep Dive

September 16, 2020

A Life Insurance Deep Dive

We’ve explored the basics of life insurance, how it works, and what it’s for.

Today we’ll be fleshing out some concepts you might encounter as you look at your options for protecting your family. Let’s start with the different kinds of life insurance.

Different types of life insurance
Life insurance will almost always have a few basic parts—the death benefit (the amount paid to your loved ones upon your passing), the policy itself (the actual insurance contract), and the premium (how much you pay for the life insurance policy).

There’s a wide range of life insurance policies, each with their own strengths and weaknesses.

  • Term life insurance is the most straightforward form. It lasts for a set amount of time (the term), during which you pay a premium. You and your beneficiaries won’t receive any benefits if you don’t pass away during the term. This type of policy typically doesn’t feature other benefits on its own (you may be able to add other benefits with what is called a rider).
  • Whole life insurance is exactly what it sounds like. It never expires and is guaranteed to pay a benefit whenever you pass away. But it often comes with other benefits. For instance, it can include a saving component called a cash value. It usually builds with interest and you can take money from it any time.
  • Indexed Universal Life Insurance is similar to whole life insurance, but the cash value is tied to the market. The market is up? Your cash value goes up. The market goes down? Your cash value is actually shielded from loss.

Each of these types of life insurance have different strengths and weaknesses. A term policy might be right for you while a whole life policy might be better for your neighbor. Talk with a financial professional to see which one fits your needs and budget!

The right amount of life insurance
But can you have too little life insurance? How about too much? The answer to both of those questions is yes. In general, the purpose of life insurance is to replace your income in case of your passing for your loved ones and family. That should be your guidestone when deciding how substantial a policy to purchase. Typically, you’re looking at about 10 times your annual income. That’s enough to replace your yearly earnings, pay-off potential debts, and guard against inflation. That means someone earning $35,000 would want to shop around for about $350,000 worth of coverage.

Employer life insurance
This means that most employer-provided life insurance isn’t enough to fully protect you and your family. There’s no doubt that a free policy from your workplace is great. But they typically only cover about a year of wages. That’s not nearly what you need to provide peace of mind to your beneficiaries! Don’t necessarily refuse your employer-provided life insurance, but make sure that it supplements a more substantial policy.

Still have questions? Reach out to a licensed financial professional and ask for guidance! And stay tuned for next week’s article where we’ll debunk some common life insurance myths!

  • Share:


This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies that may be available to you. Before enacting a life insurance policy, seek the advice of a licensed financial professional to discuss your options.

How to Avoid Financial Infidelity

How to Avoid Financial Infidelity

If you or your partner have ever spent (a lot of) money without telling the other, you’re not alone.

This has become such a widespread problem for couples that there’s even a term for it: Financial Infidelity.

Calling it infidelity might seem a bit dramatic, but it makes sense when you consider that finances are the leading cause of relationship stress. Each couple has their own definition of “a lot of money,” but as you can imagine, or may have even experienced yourself, making assumptions or hiding purchases from your partner can be damaging to both your finances AND your relationship.

Here’s a strategy to help avoid financial infidelity, and hopefully lessen some stress in your household:

Set up “Fun Funds” accounts.

A “Fun Fund” is a personal bank account for each partner which is separate from your main savings or checking account (which may be shared).

Here’s how it works: Each time you pay your bills or review your whole budget together, set aside an equal amount of any leftover money for each partner. That goes in your Fun Fund.

The agreement is that the money in this account can be spent on anything without having to consult your significant other. For instance, you may immediately take some of your Fun Funds and buy that low-budget, made-for-tv movie that you love but your partner hates. And they can’t be upset that you spent the money! It was yours to spend! (They might be a little upset when you suggest watching that movie they hate on a quiet night at home, but you’re on your own for that one!)

Your partner on the other hand may wait and save up the money in their Fun Fund to buy $1,000 worth of those “Add water and watch them grow to 400x their size!” dinosaurs. You may see it as a total waste, but it was their money to spend! Plus, this isn’t $1,000 taken away from paying your bills, buying food, or putting your kids through school. (And it’ll give them something to do while you’re watching your movie.)

It might be a little easier to set up Fun Funds for the both of you when you have a strategy for financial independence. Contact me today, and we can work together to get you and your loved one closer to those beloved B movies and magic growing dinosaurs.

  • Share:

What To Cut In Your Budget

August 19, 2020

What To Cut In Your Budget

Intro
Budgeting is empowering. It gives you information so you can make those decisions that will impact your future. But budgeting can often feel discouraging. It might even make us miserable! Especially if we look at our budget and decide to slash all the little things that make us happy. How many times have we been lectured about the amount of money wasted at coffee shops?

It turns out that’s not where most of your money is going. Here are some suggestions for where you should really focus when you’re slashing your budget.

Focus big first
We spend roughly $1,100 per year on coffee.(1) That’s about $3 per day. But that’s nothing compared to how much we spend on big ticket items. Housing alone costs $19,884 per year, and transportation an additional $9,576.(2) They’re by far the biggest drain on our income. So the question is, are you paying more than you should for housing and transportation?

Are you renting a large apartment in a ritzy part of town without roommates? Are you driving a stunning new sports car? Those might have more to do with your financial woes than your latte habit. Consider how you can reduce your rent, refinance your mortgage, or consider trading in your sports car for a more modest ride before you totally remove life’s simple pleasures.

Food
We spend about $7,729 on food every year.(3) Broken down monthly, that’s about $372 on food at home and $228 on eating out.(4) Around $133 of that ends up getting thrown in the trash due to spoilage or just not wanting to deal with leftovers. That’s a lot of money going to restaurant owners and landfills!

There’s nothing wrong with enjoying a nice meal out on the town every now and then. But, while you’re budgeting, come up with a strategy for eating at home more often. You’ll be surprised by how much that alone can save you in the long run! And if you end up with leftovers, there are plenty of ways to use those up so they won’t go to waste.

Replace cable
Americans still spend a staggering amount on cable television. The average bill is more than $200 per month!(5) That’s about as much as we spend eating out every month for access to shows and programming we could probably find online for less or even free. Cut the cord, sign up for a streaming service, and save bigtime!

The key takeaway is to try cutting back on the big items first before you take aim at your little daily joys. Use whatever you’re able to cut to reduce your debt or start saving for your retirement. You might be able to put away a bit of that extra cash towards your next down payment for a house or that fancy new car!

  • Share:

Dig yourself out of debt

August 17, 2020

Dig yourself out of debt

I hate to break it to you, but no matter what generation you are – Baby Boomer, Generation X, or Millennial – you’re probably in debt.

If you’re not – good on you! Keep doing what you’re doing.

But if you are in debt, you’re not alone. A study[i] by the financial organization, Comet, found:

  • 80.9 percent of Baby Boomers are in debt
  • 79.9 percent of Generation X is in debt
  • 81.5 percent of Millennials are in debt

There are some folks whose goal is to eliminate all debt – and if that’s yours, great! But one thing to keep in mind while you’re working towards that finish line is that not all debt is created equal. Carrying a mortgage, for example, may be considered a “healthy” debt. Student loan debt may feel like an encumbrance, but hopefully, your education has given you more earning power in the workforce. A car loan may even be considered a healthy debt. So, there are some types of debt that may offer you advantages.

Any credit card debt you have, however, should be dealt with asap. Credit card debt can cost money every month in the form of interest, and it gives you nothing in return – no equity, no education, no increase in earning potential. It’s like throwing money down the drain.

So, let’s get to work and look at some of the best tips for paying down credit card debt.

1. Get to know your debt
Make a commitment to be honest with yourself. If you’re in denial, it’s going to be hard to make positive changes. So take a good, hard look at your debt. Examine your credit card statements and note balances, interest rates, minimum monthly payment amounts, and due dates. Once you have this information down in black and white you can start to create a repayment strategy.

2. Get motivated
Taking on your debt isn’t easy. Most of us would rather not confront it. We may make half-hearted attempts to pay it off but never truly get anywhere. Need a little motivation? Getting rid of your credit card debt may make you happier. The Comet study asked respondents to rate their happiness on a scale of one to seven.[ii] It turns out that those who selected the lowest rating also carried the highest amounts of credit card debt. Want to be happier? It seems like paying off your credit card debt may help!

3. Develop your strategy
There are many strategies for paying off your credit card debt. Once you understand all your debt and have found your motivation, it’s time to pick a strategy. There are two main strategies for debt repayment. One focuses on knocking out the highest interest debt first, and the other method begins with tackling the smallest principal balances first. Here’s how they work:

  • Start with the highest interest rate: One of the items you should have noted when you did your debt overview is the interest rate for each account. With this method, you’ll throw the largest payment you can at your highest interest rate debt every month, while paying the minimum payments on your other debts. Utilizing this method may help you pay less interest over time.

  • Start with the smallest balance: As opposed to comparing interest rates, this method requires you to look at your balances. With this strategy, you’ll begin paying the smallest balance off first. Continue to make the minimum payments on your other accounts and put as much money as you can towards the smallest balance. Once you have that one paid off, combine the amount you were paying on that balance with the minimum you were paying on your next smallest balance, and so on. This strategy can help keep you motivated and encouraged since you should start to see some results right away.

Either strategy can work well. Pick the one that seems best for you, execute, and most importantly – don’t give up!

4. Live by a budget
As you begin chipping away at your credit card debt, it’s important to watch your spending. If you continue to charge purchases, you won’t see the progress you’re making, so watch your spending closely. If you don’t have a budget already, now would be a good time to create one.

5. Think extra payments
Once you are committed to paying off your debt and have developed your strategy, keep it top of mind. Make it your number one financial priority. So when you come across “found” money – like work bonuses or gifts – see it as an opportunity to make an extra credit card payment. The more of those little extra payments you make, the better. Make them while the cash is in hand, so you aren’t tempted to spend it on something else.

6. Celebrate your victories
Living on a budget and paying off debt can feel tedious. Paying off debt takes time. Don’t forget to take pride in what you’re trying to accomplish. Celebrate your milestones. Do something special when you get that first small balance paid off, but try to make the occasion free or at least cheap! The point is to reward yourself for your hard financial work. (Hint: Try putting up a chart or calendar in your kitchen and marking off your progress as you go!)

Reward yourself with a debt-free life Getting out of debt is a great reward in and of itself. It takes discipline, persistence, and patience, but it can be done. Come to terms with your debt, formulate a strategy, and stick to it. Your financial future will thank you!

  • Share:

First time home buyer? Beware hidden expenses.

First time home buyer? Beware hidden expenses.

If you’re getting into the home buying game, chances are you’re feeling a little overwhelmed.

Purchasing a home for the first time is exciting but it can also be very stressful! Anyone who’s been through that process could probably share a story about a surprise hidden expense that came along with their dream home.

Read on to help prepare yourself for some common costs that can pop up unexpectedly when you’re purchasing a home.

Emergency fund Before we get into the hidden costs of homeownership, let’s talk a little about how to help handle them if and when they do arise. If you’re getting ready to buy a home but don’t have an emergency fund, you may want to strongly consider holding off that purchase, if at all possible, until you do have an emergency fund established. It’s recommended to put aside at least $1,000, but preferably you should save 3-6 months of your expenses, including mortgage payments. An emergency fund is the most fundamental personal finance tool you can have in your toolkit. It’s like the toolbox itself that holds all your other financial tools together. So, before you start home shopping, build your emergency fund.

Homeowners associations If your dream house happens to be in a neighborhood with a homeowners association (HOA), be prepared to pony up HOA fees each month (some HOA’s may charge these fees every quarter, or even annually). HOA fees may cover costs to maintain neighborhood common areas, such as pools or parks. They may also cover maintenance to your front lawn, and/or snow removal from driveways, etc. Typically, a homeowners association will have a board that enforces any agreed-upon property standards, such as having you remove ivy from your home exterior, or making sure your sidewalk is pressure washed regularly.

If you purchase a home with an HOA, be prepared for the added cost in fees as well as adhering to the rules. You may incur a fine for such things as your grass not being mowed properly, or parking your boat or camper in your yard.

Private Mortgage Insurance (PMI) PMI comes into play if you can’t make at least a 20% down payment on your new home. If that’s the case, your mortgage lender charges PMI which would kick in to protect them if you default on the loan. It can cost 0.3 to 1.5% of your mortgage. However, once you have 20% equity in the home, you don’t have to pay it anymore. (Note: You may have to proactively call your mortgage company and tell them to remove it.)

Maintenance costs If you’ve been living the maintenance-free life in an apartment or rental home, the cost of maintaining a house that you own may come as a shock. Even new homes require maintenance – lawn care, pressure washing, clearing rain gutters, painting, etc. There’s always going to be something to upgrade or repair on a home, and many first-time home buyers aren’t prepared for the expense.

A good rule of thumb is to budget about 10 percent of the value of your home for maintenance per year. So, if you buy a $250,000 home, you should prepare for $2,500 a year in maintenance costs.

Home insurance Be prepared for some sticker shock when purchasing your homeowners’ insurance. Homeowners insurance is typically significantly more expensive than purchasing a renter’s policy. If you live in an area prone to natural disasters, be prepared to pay top rates for homeowners’ insurance. If you live near a body of water, you may also need flood insurance.

Life insurance Many first-time homebuyers may not give life insurance a thought, but it’s an important factor that can help protect your investment. You probably need life insurance if anyone is depending on your income. Especially if your income helps pay your mortgage every month, you should strongly consider a life insurance policy in case something were to happen to you. This will help ensure that your spouse or significant other can continue to live in your home.

Homebuying is exciting and part of the American dream. But don’t neglect to come back to reality – at least when making financial decisions – so you can budget properly and anticipate any hidden costs. This will help ensure that your first-time home buying experience is a happy one.

  • Share:

What Are We Spending Money On?

July 22, 2020

What Are We Spending Money On?

We spend a lot of money.

All things told, we spend about $101 per day, whether we feel it directly or not.(1) That comes out to roughly $36,764 per year. Over half of all Americans spend more than what they earn.(2) The bulk of that goes to important categories like shelter and utilities.(3) But it doesn’t take much digging to find some less important spending patterns. Here’s a quick look at what we’re spending (i.e., wasting) our money on!

Food
How can you waste money on food? It’s essential to survival and health!

But it turns out that throwing away cash on food is really easy. Americans spend an average of $209 per month on just eating at restaurants, which comes to a total of $2,508 yearly. Add in the cost of drinks and you’re at $4,776!(4) But that’s just eating when you’re out. Another huge issue is chronically overbuying food to consume at home. We throw out around $1,600 of food per family every year.(5)

That brings us to a grand total of $6,376 dollars spent each year on restaurants, drinks, and wasted food. And that’s not including categories like takeout!

Shopping
We’re notorious shoppers. We spend around $108 on approximately five impulse purchases per month. Online shopping is a substantial category as well, with our digital purchases costing us around $84 monthly. Interestingly, we spend nearly $94 per month on subscription boxes. That adds up to $3,432 on non-essential shopping annually.

Personal care
Everyone wants to look, smell, and feel attractive. And it turns out that most people are willing to pay a king’s ransom on their appearance. Personal grooming comes out to $94.25 monthly. Gym memberships (which often go unused) cost the average American $72.53 per month. All told, we spend around $2,000 annually on looking good.

Cable and streaming
Another big category of spending is entertainment and apps. The biggest culprit here is—surprisingly—cable. On average, we shell out $90 per month for unlimited access to reality shows and documentaries, many of which are now available online. Throw in spending on movie streaming ($23.09), music streaming ($22.41), and other paid apps ($23.24), and our overall spending on digital entertainment is around $1,904.88 per year!

Tallying these four categories, we see that Americans are spending about $13,712.88 annually on non-essential items. That’s a staggering amount of money! It’s enough for a full year of college, including tuition and books.(6)

Non-essential spending does have its place—it can actually be very important to your quality of life and overall well being. But you might be surprised by how much of your financial power is getting wasted on things that are truly unnecessary or have cheaper alternatives.

  • Share:

Should You Only Use Cash?

July 6, 2020

Should You Only Use Cash?

Bills and coins are outdated.

Who actually forks over cash when they’re out and about anymore? Paper money and copper coins are a relic of the past that are useless in a world of credit cards and tap-to-pay…

Except when they’re not.

Using cards and digital payment systems actually comes with some pretty serious drawbacks. Here’s a case for considering going cash only, at least for a little while!

The card convenience (and curse)
Plastic cards can make spending (a little too) easy. See an awesome pair of shoes in the store? No problem! Just swipe at the counter and you’re good to go. Online shopping is even more frictionless. Everything from new clothes to lawn chairs is a few clicks away from delivery right to your front door.

And that’s the problem.

You might not notice the effect of swiping your card until it’s too late. Those shoes were a breeze to buy until you check your bank account and see you’re in the red, or you get your credit card bill. It’s easy to find yourself in a hopeless cycle of overspending when buying things just feels so easy.

The pain of spending cash
Handing over cash can be a different phenomenon. Paying with actual dollars and cents helps you connect your hard-earned money with what you’re buying. It makes you more likely to question if you really need those shoes or clothes or lawn chairs. Studies show that people who pay with cash spend less, buy healthier foods, and have better relationships with their purchases than those who use credit cards.(1) That’s why going with cash only might be a winning strategy if you find yourself constantly in credit card debt or just buying too much unnecessary stuff every month.

Security
To be fair, cash does have some safety concerns. It can be much more useful to a criminal than a credit card. You can’t call your bank to lock down that $20 bill someone picked out of your pocket on the subway! That being said, cards expose you to the threat of identity theft. A criminal could potentially have access to all of your money. There are potential dangers either way, and it really comes down to what you feel comfortable with.

In the end, going cash only is a personal decision. Maybe you rock at only buying what you need and you can dodge the dangers of overspending with your cards. But if you feel like your budget isn’t working like it should, or you have difficulty resisting busting out the plastic when you’re shopping, you may want to consider a cash solution. Try it for a few weeks and see if it makes a difference!

  • Share:

Read this before you walk down the aisle

June 24, 2020

Read this before you walk down the aisle

Don’t let financial trouble ruin your future wedded bliss.

Most newlyweds have a lot to get used to. You may be living together for the first time, spending a lot of time with your new in-laws, and dealing with dual finances. Financial troubles can plague even the most compatible pairs, so read on for some tips on how to get your newlywed finances off to the best possible start.

Talk it out If you haven’t done this already, the time is ripe for a heart to heart talk about what your financial picture is going to look like. This is the time to lay it all out. Not only should you and your fiancé discuss your upcoming combined financial situation, but it can be beneficial to take a deep dive into your past too. Our financial histories and backgrounds can influence current spending and saving habits. Take some time to get to know one another’s history and perspective when it comes to how they think about money, debt, budgeting, etc.

Newlyweds need a budget Everyone needs a budget, but a budget can be particularly helpful for newlyweds. A reasonable, working household budget can go a long way in helping ease financial stress and overcoming challenges. Money differences can be a big cause of marital strife, but a solid, mutually-agreed-upon budget can help avoid potential arguments. A budget will help you manage student loans or new household expenses that must be dealt with. Come up with a budget together and make sure it’s something you both can stick with.

Create financial goals Financial goal setting can actually be fun. True, some goals may not seem all that exciting – like paying off credit cards or student loans. But formulating financial goals is important.

Financial goal setting should start with a conversation with your new fiancé. This is the time to think about your future as a married couple and work out a financial strategy to help make your financial dreams a reality. For example, if you want to buy a house, you’ll need to prepare for that. A good start is to minimize debt and start saving for a down payment.

Maybe you two want to start a business. In that case, your financial goals may include raising capital, establishing business credit, or qualifying for a small business loan.

Face your debt head on
It’s not unusual for individuals to start married life facing new debt that came along with their partner – possibly student loans or personal credit card debt. You may also have combined debt if you’re planning on financing your wedding. Maybe you’re going to take your dream honeymoon and put it on a credit card.

Create a strategy to pay off your debt and stick to it. There are two common ways to tackle it – begin with the highest interest rate debt, or begin with the smallest balance. There are many good strategies – the key is to develop one and put it into action.

Invest for the future Part of your financial strategy should include preparing for retirement, even though it might seem light years away now. Make sure you work a retirement strategy into your other financial goals. Take advantage of employer-sponsored retirement accounts and earmark savings for retirement.

Purchase life insurance Life insurance is essential to help ensure your new spouse will be taken care of should you die prematurely. Even though many married couples today are dual earners, there is still a need for life insurance. Ask yourself if your new spouse could afford to pay their living expenses if something happened to you. Consider purchasing a life insurance policy to help cover things like funeral costs, medical expenses, or replacement income for your spouse.

Newlywed finances can be fun Newlywed life is fun and exciting, and finances can be too. Talk deeply and often about finances with your fiancé. Share your dreams and goals so you can create financial habits together that will help you realize them. Here’s to you and many years of wedded bliss!

  • Share:

The Food Waste Epidemic... And What You Can Do About It

June 10, 2020

The Food Waste Epidemic... And What You Can Do About It

Food waste is a big problem.

Don’t believe me? Just check out these food waste facts:

- The average family throws away around $1,500 of food every year.(1)

- One recent study found that we toss around a third of all consumable food, with wealthy nations being the biggest culprits.(2)

- Cutting back our food waste just 15% would free up enough food to feed 25 million Americans.(3)

Those are incredible numbers. And they touch everything from the poor in other parts of the world to your own wallet! But what can you do? How can you not only combat a global problem but also look out for your own financial needs? Here are a few practical ways to reduce food waste and save some money while you’re at it!

Shop with a plan
The first step to not wasting food is only buying food you plan on eating. That means deciding ahead of time what you want to eat, making a list, and only buying those items at the store. Sure, it’s thrilling to walk down the produce aisle just waiting for an exotic veggie to catch your eye or buying extra meat just in case you want pork chops instead of chicken thighs. But you’ll quickly find that shopping without a strategy can lead to overbuying. This raises the potential that food won’t get prepared and will get thrown out. Always start with a list and shop from there.

Online shopping may help you stay on track with your list—and save you a ton of time! It’s fairly simple these days to log in to your favorite grocery store app, check items off, then click Delivery or Pick-up. (Keep in mind the store may charge a small fee for these services, but if it means not throwing out yet another unopened box of spinach, it might be worth it!)

Store wisely
Even the best planner will overbuy at some point. Maybe there’s a great sale on your kids’ favorite snack crackers, or you want to pick up a couple extra bottles of wine since they’re BOGO. You might stock up on Monday and then remember you have dinner plans with the in-laws on Friday. Don’t panic! Keeping your food from going bad is actually pretty simple. For many perishable items, just take a deep breath, open your freezer, and put your food inside. Close the freezer door. Your food should be safe from going bad until your schedule clears up. Just remember to dethaw your food before you try cooking it!

If you find you’re stocking up often on dry goods, you might want to invest in some quality containers (plastic, glass or metal) to help keep your food fresher, longer.

Reuse (safely)
But what happens if you prepare a ton of food for a meal only to discover that your stomach is smaller than you anticipated? Open up the trash can and dump all of that delicious, edible food?

Never!

The classic leftovers loophole is to put your food in proper containers and leave them in the fridge until you can get back to them in the next day or two. You can also freeze leftovers if you need. But why stop there? Those leftovers are just begging to be transformed into something fresh and delicious! Why not stir fry them with some rice or cook them into a casserole? Get creative and make something new and amazing!

Reducing food waste takes a little work and planning. But with the right attitude, it can be a fun way of contributing to your community, helping the planet, and avoiding a hunger strike by your bank account!

  • Share:

How Much Is Enough To Retire?

June 3, 2020

How Much Is Enough To Retire?

How much money do you need to retire? That’s a tough question to answer specifically.

People have different expectations of their golden years that range from simple and cheap to extravagant and expensive. But there are a few simple guidelines you can follow that might help point you in the right direction.

Standard of living
How do you envision your retirement? Surrounded by family and friends in the suburbs? Kicking back on white sands? Fishing outside your tiny mountain lodge? Each of these visions come with different price tags and will require different types of planning. Dreams of a simple and stripped back retirement will cost you less than touring Europe or enjoying exotic cocktails on the beach. Figure out the standard of living you want in retirement, estimate how much it will cost and for how long, and then make a plan.

How much should you have saved?

So you’ve figured out how much you want to spend annually during your retirement. How much does that mean you need to save? Let’s say you’ve done your homework and your standard of living will run you about $40,000 a year throughout your retirement. The general rule of thumb is that you want to be able to withdraw roughly 4% of your savings each year throughout retirement without running out of money. To find that number, just take your desired annual spending and divide it by .04 to get your savings target. That means you would need to save around one million dollars to sustain your lifestyle.

How much should you save per month?

Financial advisors typically suggest you put 15% of your income towards retirement. Just remember that there’s always some wriggle room depending on your situation! You might be well ahead of schedule already, due to your budgeting and thriftiness. Maybe you’re just now starting to save and you need to put away a little extra. It’s always best to consult with a professional before making a big saving or investing decision!

The sooner you start planning and setting goals, the better. Start thinking about what you want out of your golden years, crunch the numbers, and meet with a professional!

  • Share:

Questions To Ask When Buying In Bulk

May 13, 2020

Questions To Ask When Buying In Bulk

Buying in bulk is a no-brainer, right?

It seems cheaper and you can (hopefully) get all your shopping done for the family in one trip. What’s not to love?

But there are certain things to consider when shopping wholesale. Here are some questions you should ask yourself before buying in bulk

Can you afford the upfront cost?
Overall, buying in bulk at a big box store can be cheaper than normal shopping at your local supermarket. But it may not feel that way at the register. The upfront cost can be higher than you’re used to, so just make sure that you’ve budgeted that in. Remember, this is a long-term game where the savings can show up further down the line.

Will this product expire?
As a general rule of thumb, you want to avoid perishable items when buying in bulk. Let’s say you go to the wholesaler and notice that you can get a bargain on chicken. Sounds awesome! Should you buy 45 pounds of chicken and slam it in your fridge? Probably not. You’ll have about a week to get through that amount of poultry. Whatever is leftover will have to go into the freezer (more on that later).

But that still means that non-perishable paper items and personal care essentials are fair game. Buying razors in bulk? Go for it. Party cups? Fire away. Canned foods, beans, rice, and spices are also excellent to buy in bulk. But there’s another factor to consider…

Do you have enough space?
Getting a good deal is amazing. But stuffing your house to the brim isn’t. Make sure you have enough storage space before you decide to buy something in bulk. That deal on toothpaste might be a once in a lifetime opportunity, but will you have enough room to store it? You might be able to get away with buying perishable items and jamming them in a freezer, but how much freezer space do you have? Will you need to purchase an additional freezer? Just because you can afford a deal doesn’t mean you can afford to store it.

Buying in bulk can be a great way to save money. Just make sure you prepare and do your research before you start purchasing huge quantities of items!

  • Share:

How Much Should You Save Each Month?

How Much Should You Save Each Month?

How much are you saving?

That might be an uncomfortable question to answer. 45% of Americans have $0 saved. Almost 70% have under $1,000 saved (1). That means most Americans don’t have enough to replace the transmission in their car, much less retire (2)!

But how much of your income should you send towards your savings account? And how do you even start? Keep reading for some useful strategies on saving!

10 percent rule
A common strategy for saving is the 50/30/20 method. It calls for 50% of your budget to go towards essentials like food and rent, 30% toward fun and entertainment, and the final 20% is saved. That’s a good standard, but it can seem like a faraway fantasy if you’re weighed down by bills or debt. A more achievable goal might be to save around 10% of your income and start working up from there. For reference, that means a family making $60,000 a year should try to stash away around $6,000 annually.

A budget is your friend
But where do you find the money to save? The easiest way is with a budget. It’s the best method to keep track of where your money is going and see where you need to cut back. It’s not always fun. It can be difficult or even embarrassing to see how you’ve been spending. But it’s a powerful reality check that can motivate you to change your habits and take control of your finances.

Save for more than your retirement
Something else to consider is that you need to save for more than just your retirement. Maintaining an emergency fund for unexpected expenses can provide a cushion (and some peace of mind) in case you need to replace your washing machine or if your kid needs stitches. And it’s always better to save up for big purchases like a vacation or Christmas gifts than it is to use credit.

Saving isn’t always easy. Quitting your spending habit cold turkey can be overwhelming and make you feel like you’re missing out. However, getting your finances under control so you can begin a savings strategy is one of the best long-term decisions you can make. Start budgeting, find out how much you spend, and start making a plan to save. And don’t hesitate to reach out to a financial professional if you feel stuck or need help!

  • Share:

Budget Date Ideas

April 29, 2020

Budget Date Ideas

Budgeting might seem like the death knell for your dating life.

No more extravagant dinners? No more fun times at the movies? No more nights out on the town? How else can you keep that spark alive? But sometimes adding constrictions to your dating life can be a fun change of pace and actually spice things up. Here are some great budget-friendly date ideas.

Cook dinner together
An expensive dinner in a nice part of town is always a killer date idea. But it can start to add up if you’re not careful. That’s why cooking a special dinner at home as a couple is a great alternative. You save money on ingredients, you get real portion sizes that will last you for days, and it’s a fun activity that takes teamwork. Not a chef by nature? YouTube will be your best friend. There are tons of great recipe walkthroughs that will help you two knock this one out of the park!

Go on a hike
You should never tell your partner to take a hike. But you should definitely ask your partner to go on a hike! There’s nothing much better than some physical exertion in the great outdoors with someone you care about. Just remember that this one can add up if you’re not careful. Here are some pointers to make your hike a thrifty winner:

-Drive your most fuel efficient car

-Avoid cutesy stops full of expensive trinkets

-Research and see if the trail you’re hiking charges for parking

-Pack as much food as possible

Follow these tips and you might be surprised how inexpensive a trek can be!

Watch a sunset
Sunsets are incredible. There’s no reason that you and your significant other shouldn’t be sitting outside to take in the everyday beauty of the sun slipping behind the horizon. Any sunset is good, but here are a few steps you can take to find the absolute best sunset for your dollar!

-Choose the right day. The best sunsets typically occur a few hours after rain while there’s still a bit of cloud coverage. Too many clouds hide the sun, but just a few will catch the final light of the day. Check your forecast ahead of time!

-Choose the right location. You don’t have to go far to find the perfect sunset viewing spot. Watching the last beams of the sun shine through skyscrapers? Amazing. Hitting up a small, local airport to watch planes at twilight? Gorgeous. Bathing in the light of golden hour on your front porch with your gal (or guy) beside you? One for the books.

-Pack a picnic. Wherever you decide to watch the sunset with your partner, just remember to pack some food. It’s a great alternative to an atmospheric (and expensive) restaurant!

Creativity is key. The more inventive your budget date ideas are, the more memorable they’ll be. You might find yourself looking back on your budget dating years as some of the best and most exciting of your relationship!

  • Share:

The Keys to Paying Your Bills On Time

The Keys to Paying Your Bills On Time

Not paying your bills on time can have significant impacts on financial health including accumulating late fees, penalties, and a negative hit on credit scores.

But maybe you – or a friend – learned about those consequences the hard way. Most late bill payers fall into 1 of 3 camps: they forget to pay on time, they don’t have enough income, or they have enough income but spend it on other things.

In case you – or your friend – are stuck in 1 of these camps, consider the following tips to help pay the bills on time.

I forget to pay my bills on time.
If this is you, you’re actually in a more advantageous position. There are many easy fixes that can help get you back on track.

  1. Use a calendar. This is a tried and true, but often underutilized, method to track your bill due dates. When you get a notice for a bill – either by email, text, or snail mail – jot the due date on your calendar. You can also set a reminder if you use an electronic calendar.
  2. Fiddle with your due dates. Many companies offer flexible due dates. Experiment with what due dates work for you. Some people like to pay their bills all together at the beginning of the month. You may find that you like to pay some bills in the beginning and some in the middle of the month. It’s up to you!
  3. Take advantage of grace period/late fee waivers. If you do forget about a bill and have to make a late payment, give the company a call and ask them to waive the late fee. Late fees can add up, ranging from $10-50 depending on the account. It’s worth a try!

I don’t have the money to pay all my bills.
If your income doesn’t cover your outgo no matter how diligently you pinch those pennies, it won’t matter what type of bill payment method you use, you’re going to have trouble. If you’re in this situation, there are 2 solutions: increase your earnings or decrease your expenses.

  1. Find a side gig. Take a temporary part-time job to make some extra income. Delivering pizza in the evenings or on weekends might be worth doing for a few months to make some extra dough.
  2. Shop around. Shop around for savings. Prices vary on almost everything. Take a little extra time to make sure you’re getting the rock-bottom best prices on your insurance, cable, phone plans, groceries, utilities, etc.

I overspend and don’t have enough left to pay my bills.
Managing income and expenses takes some practice and persistence, but it is doable! If you find yourself consistently overspending without enough left over to cover your bills, try the following:

  1. Create a budget. Get familiar with your income and expenses. This is the only way to know how much disposable income you’re going to end up with every month. You can track your budget daily on an app like PocketGuard, Wallet, or Home Budget.
  2. Stash the money for bills in a separate account. Put your bill money in a separate checking or savings account. This will keep it quarantined from your spending money and help make sure it’s there when the bills come due.

Good Financial Habits
If you feel bill-paying-challenged, or you have a friend who is, try some of the above tips. Taking care of your obligations when you need to can relieve stress, build good credit, and reinforce healthy spending habits for life!

  • Share:

What Are Foreign Transaction Fees?

What Are Foreign Transaction Fees?

Travelling abroad can be expensive.

Tours, hotels, gourmet food (unless you’re in England), and plane tickets can add up quickly. But a three percent charge for buying something in a foreign country? That can be the straw that breaks the camel’s back. It’s called a foreign transaction fee, and it’s an easy way for credit card companies to make an extra dime off your out-of-country adventures.

What’s a foreign transaction fee?
A foreign transaction fee is a charge that your credit card issuer tacks on when a transaction goes through a foreign bank or involves a currency that needs to be converted. Charges vary between providers, but normally the fee is around 3% of the transaction total.

It doesn’t seem like much. A burger in Germany might go from $3.50 to $3.60 if your provider charges a 3% foreign transaction fee. But it can start to add up over extended vacations or study abroad programs, especially if you’re on a college student’s budget!

Can you avoid foreign transaction fees?
Fortunately, it’s getting easier to dodge foreign transaction fees. Some companies have totally eliminated the fees from their cards. Others have cut back on the number of cards that carry the fees. But the trend definitely seems to be that foreign transaction fees are on the way out.

Overall, a 3% charge while you’re abroad isn’t the end of the world. But if you’re planning a budget backpacking trip or trying to make ends meet as an exchange student, it’s probably worth looking into a card that won’t charge you extra!

  • Share:

Habits of Successful People

Habits of Successful People

Successful people come from all types of backgrounds.

But did you know there are certain habits they tend to have in common? What’s better yet, they’re mostly practices that don’t require a huge budget to start doing. Here are three concrete ways that you can imitate the wealthy—starting today!

Wake up early (but also get enough sleep)
Let’s establish right away that most people shouldn’t wake up at four in the morning if you’re going to bed at midnight. Lack of sleep can exacerbate or cause dozens of health and mental issues ranging from obesity to depression (1). That’s the exact opposite of what rising with the sun is supposed to do!

The primary perk of going to bed early and waking up early is that it helps give you control of your day. You’re not simply rolling out of bed forty-five minutes before work and coming home too tired to do anything useful. Instead, you get to devote your most productive hours to something that you care about, whether that’s meditating, working on a passion project, or exercising. Speaking of which…

Exercise
Exercise is something that the successful tend to prioritize. One survey found that 76 percent of the wealthy devoted 30 minutes or more a day to some kind of aerobic exercise (2). It seems obvious, but working out doesn’t just improve physical health; it can help ward off depression and increase mental sharpness (3). It’s no wonder so many successful people make time to exercise.

Read
Almost 9 out of 10 wealthy people surveyed said they devote thirty minutes a day to reading. Why? It turns out that it can improve mental awareness and helps keep your brain fine-tuned (4). But reading can also be a valuable way of expanding your perspective, learning new ideas, and drawing inspiration from unexpected places.

Some of these habits might seem intimidating. Switching your bedtime back three hours so you can wake up before sunrise is a big commitment, as is working out consistently or reading books if you’re just used to scanning social media. Try starting off small. Get out of bed thirty minutes earlier than usual for a week and see if that makes a difference. One day a week at the gym is much better than zero, and reading a worthwhile article (like this one!) might pique your appetite for more. Whatever your baby step is, keep expanding on it until you’re an early rising, iron-pumping, and well-read machine!

  • Share:

Student Loans: avoid them or use them the smart way?

Student Loans: avoid them or use them the smart way?

Going to college can be a great way to invest in your future and get the training and education you need to thrive in the modern job market.

But we’ve all heard the horror stories of students saddled with thousands in loans that they struggle to pay back, sometimes for years. Student loan debt is often the most pressing financial issue for college students and recent grads.

So how do you take advantage of the benefits of a college education without burdening your future with years of debt? Here are some tips to help you avoid high student loan payments and pay your student debt off more quickly after graduation.

Work through school
The days of working a minimum wage job to put yourself through school seem to be over. However, working enough to cover at least some of your books and living expenses may make a huge dent in the amount of money you’ll have to borrow to graduate.

Work-study programs on campus are often good options, as they are willing to work around your class schedules. Off-campus part-time jobs can be a good option as well, and may offer better pay.

Live as cheaply as possible
Everyone knows the cliché of the broke college student existing on nothing but ramen noodles. While not many people would recommend trying to live on nutritionless soup every day, you should be able to find ways to cut your cost of living to reduce the amount of money you need to borrow to sustain your lifestyle.

Try living off campus with family or roommates and packing sandwiches instead of paying expensive meal tickets and dorm fees. Bike, walk, or take public transportation to avoid parking. Take advantage of free on-campus healthcare, counseling, free food events, free entertainment, and more so you can spend as little as possible on living campus life.

It’s okay to go out and have fun sometimes, but don’t borrow from your future in order to live beyond your means now.

Try to avoid unsubsidized loans
Subsidized loans are offered by the Department of Education at lower interest than many private bank loans, and they do not begin accruing interest until after you graduate. Take advantage of these loans first and try to avoid the unsubsidized private loans which begin accruing interest immediately and often have a higher rate. (1)

Be mindful of your future payments
It can be tempting to expect that you’ll have a great job earning plenty of money and time to pay back the student loans you’ve accumulated. But each time you take out a loan, you make your future payments higher and your payback time longer. Be sure to look at the numbers of how much your payment will be every time you up your loan amounts. Can you realistically envision yourself being able to pay that amount every month in just a few years? If not, it may be time to rethink the student loans you’re racking up, and possibly even reconsider your degree or career plan.

Go to trade school, earn an apprenticeship, or work in your chosen field before you commit to a college degree in that field
It’s not a popular topic with many high school guidance counselors, but learning a trade and finding a well-paying job without a degree is not only possible but a great option. Try finding an internship or trade school where you could get training for much less money than a university.

Consider community colleges and state schools
It’s a common misconception that private, ivy league, “big name” colleges are far superior to state schools and automatically the better option. However, state schools can often have great programs for far less money. Also, if you choose a local school, you can live close to your family support system while working through college. It’s possible to have a very successful career with a college degree from a state school, and be more financially stable in your future than someone struggling to pay off loans from an expensive private college.

Likewise, an associate’s degree from a community college can save money toward your bachelor’s degree, allowing you to pay far less than you would even to a state school. Just make sure your degree and credits will transfer to the university of your choice.

Find a graduate program that pays YOU
If you choose to pursue a Masters or Doctorate degree, try to find a program with a teaching assistant position, fellowship, or some other option for getting reduced tuition or getting paid to get the work experience you need.

Resist the urge to move up in lifestyle when you graduate
When you scrimp your way through school, it’s tempting when you get your first degree-related job to celebrate by loosening the reins on your frugal ways and start living it up as a young professional.

It’s great to reward yourself, and you need to adapt to your new financial situation (you may need a new wardrobe or a better car), but resist going too crazy with all the “extra” money a new job in your field can make you feel like you have. You should still live on a budget and manage your money carefully to pay off your student loans as soon as possible so you’re better prepared to move into the next phase of life unencumbered by a mountain of debt. Make paying back debt a priority, and pay extra when you’re able.

Education can be expensive and in some cases impossible to get without loans. But with frugality and an eye toward the future, you’ll be better prepared to get the education you need to succeed in life without being encumbered by debt for years. The high cost of education combined with the high cost of living can make a college education more of a financial burden for today’s students than ever before. By thinking outside the box and carefully prioritizing your educational goals—balanced with your finances—you can pursue your dream degree and have a better chance at a stable financial future.

  • Share:

Begin Your Budget In 5 Easy Steps

February 3, 2020

Begin Your Budget In 5 Easy Steps

A budget is a powerful tool.

No matter how big or small, it gives you the insight to track your money and plan your future. So here’s a beginner’s guide to kick-start your budget and help take control of your paycheck!

Establish simple objectives
Come up with at least one simple goal for your budget. It could be anything from saving for retirement to buying a car to paying down student debt. Establishing an objective gives you a goal to shoot for, and helps motivate you to stick to the plan.

Figure out how much you make
Now it’s time to figure out how much money you actually make. This might be as easy as looking at your past few paychecks. However, don’t forget to include things like your side hustle, rent from properties, or cash from your online store. Try averaging your total income from the past six months and use that as your starting point for your budget.

Figure out how much you spend
Start by splitting your spending into essential (non-discretionary) and unessential (discretionary) spending categories. The first category should cover things like rent, groceries, utilities, and debt payments. Unessential spending would be eating at restaurants, seeing a movie, hobbies, and sporting events.

How much is leftover?
Now subtract your total spending from your income. A positive number means you’re making more than you’re spending, giving you a foundation for saving and eventually building wealth. You still might need to cut back in a few areas to meet your goals, but it’s at least a good start.

If you come up negative, you’ll need to slash your spending. Start with your unessential spending and see where you can dial back. If things aren’t looking good, you may need to consider looking for a lower rent apartment, renegotiating loans, or picking up a side hustle.

Be consistent!
The worst thing you can do is start a budget and then abandon it. Make no mistake, seeing some out-of-whack numbers on a spreadsheet can be discouraging. But sticking to a budget is key to achieving your goals. Make a habit of reviewing your budget regularly and checking your progress. That alone might be enough motivation to keep it up!

  • Share:

Saving For Retirement: Where Do I Start?

January 29, 2020

Saving For Retirement: Where Do I Start?

We all know we should be saving for the future.

But depending on your stage in life, it might feel like retirement is either too far away or it’s too late in the game to make much of a difference. Regardless of your income—or which season of life you’re in—you can (and should) start saving for retirement. Here’s how to get started:

Make savings automatic
Have your employer deposit a set dollar amount or percentage from each paycheck to a savings account or your 401(k). It’s an effortless way to start loading your savings account while also reducing temptations to overspend.

Pay yourself first
Your attitude towards saving makes a big difference. It shouldn’t be something that is optional after all of your other spending. If you view saving the way you would a bill and pay it to yourself first, you will be far more likely to save.

Investigate IRA options
An IRA is a retirement account that invests your money in stocks and bonds. Many people opt for either a traditional IRA or a Roth IRA, though there are other types to choose from. The big difference between the traditional and the Roth is how and when their tax exemptions kick in. Contributions to the traditional are tax deductible until they are withdrawn. A Roth, on the other hand, gets taxed on contributions but withdrawals are tax deductible and get to grow tax free. The maximum amount you can contribute to an IRA is $6,000 – $7,000 per year (depending on your age), so you’ll need to consult your budget to see how much you can put away.

Establish your permanent lifestyle
It’s easy to be tempted to try to one-up our friends’ and neighbors’ lifestyles. But continually increasing your cost of living can set your retirement up for failure. Establish a basic amount of what it takes for you to live a comfortable lifestyle, and stick to that mode of living. Doing so can help you save money right now and also give you an idea of how much you’ll need to save for retirement.

Meet with a financial professional
Investing can be intimidating, especially when it’s your future on the line. Be sure to meet with a licensed professional before you make any big saving decisions. Getting an extra pair of qualified eyes on your goals and strategies is always a good move and can help bring you peace of mind about your retirement strategy!

Whether you’re just entering the workforce or retirement is right around the corner, there are many ways to contribute to your future. By adjusting your lifestyle, investing carefully, and making it a priority to prepare for the future, you can nurture your peace of mind and look forward to seeing how your financial strategy unfolds in your golden years.

  • Share:

Market performance is based on many factors and cannot be predicted. This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Any examples used in this article are hypothetical. Before investing or enacting a savings or retirement strategy, seek the advice of a licensed financial professional, accountant, and/or tax expert to discuss your options.

Subscribe to get my Email Newsletter