-
5 Ways To Face Your Finances At Home (and Reward Yourself, Too!)
Written By: Kaitlyn Duchien
It’s day #423 (or something like that) in self-quarantine. Chances are, you’ve already watched an ungodly amount of Netflix, forgotten to shower more than once, finished a book you started 5 years ago, picked up knitting, and even tackled spring cleaning! Congrats! But, with the President’s recent decision to extend social distancing guidelines through the end of April, you’re probably wondering what on earth you’re going to do to pass the time now. While watching The Office for the 15th time is definitely a valid option, let’s consider using this as an opportunity to check your financial pulse and discover ways to cut costs, save a little extra, and even increase your generosity!
Perusing through your bank statements might not sound like the most exciting way to spend your Friday night. We get it. But, we believe it will pay off – big time! That’s why we’ve also included a few ideas to reward yourself after you’ve checked each of these 5 money management tasks off your to-do list. (You’re welcome).
- Budget: Make It. Modify It. Live it.
If you’ve never created a budget before, there’s no better time than the present! But, where do you start? For some do-it-yourself-ers, you may want to pull up your credit card and bank statements and create your own Excel spreadsheet detailing your income, spending habits, outstanding debts, and savings goals. For others (like myself), creating an Excel spreadsheet sounds about as fun as watching paint dry. If you can relate, check out these budgeting apps and templates to help you get started:
Ultimately, how you create your budget is much less important than simply having one in the first place. The goal is to understand where your money is going every month, allowing YOU to have control over your finances. If you’re not sure what happened to your paycheck, then your money has control over you (and that ain’t cool). No matter how you decide to budget, make sure it is a repeatable process that you can frequently revisit and revise as needed.
As you grow and evolve as a person, your budget should, too. That’s why – if you already have a budget – now is the time to review it and see how well you’re staying on track. Are there any specific categories where your spending is a little too high? Any small expenses that are adding up over time? Are you saving as much as you’d like? If not, can you automate your savings from your paycheck to your savings or your investment account to make it easier?
REWARD: Once you’ve created or reviewed your budget, reward yourself by breaking out your favorite board game or card game (or ordering a new one online) and having a game night! You can even plan a virtual game night by video conferencing with friends or family who share a common game.
- Subscriptions: Automatic Payments Are Great, Except For When They Aren’t
While reviewing your budget, you may have discovered that you’ve been paying for subscriptions or memberships that you haven’t been using (or getting your money’s worth out of). Spend 30 minutes identifying which subscriptions you don’t use and cancelling your membership. Or, instead of canceling the subscription all together, you may have the option of freezing the subscription or skipping a month if you just won’t use it right now, but might in the future. Here are a few ideas of automatic payments to look out for:
- Streaming Services (Maybe you started that 7-day free trial on Hulu to watch one specific movie and forgot to cancel it afterwards.)
- Transportation Services (Think: bus, train, or toll-road pass that you aren’t using right now due to working from home.)
- Gym Memberships (While many gyms automatically froze their member’s accounts, you might want to double check that you aren’t being charged while the gym is closed.)
- App Subscriptions (Trying to figure out why the $3.99 charge from Apple or Google Play is showing up on your bank statement? Click here to find out what app subscriptions you are paying for and how to cancel them.)
While email subscriptions aren’t necessarily costing you money, now might also be a great time to go through your 10,528 emails and unsubscribe from unwanted messages. It’ll unclutter your inbox, clear your mind, and even reduce your spending by eliminating marketing campaigns for items you don’t need (but apparently MUST have). Unroll.me is a great tool that will identify email subscriptions you are currently receiving and unsubscribe you in a couple easy clicks.
REWARD: Once you’ve canceled those memberships and deleted at least 9,627 emails, reward yourself by watching a movie or documentary about someone who inspires you.
- Bump Up Your Saving and Investing
For many people, the Stay At Home orders have resulted in reduced spending as many daily activities such as travel, eating at restaurants, going to the movies, working out at the gym, or even getting a haircut have been temporarily eliminated. Instead of wallowing in self-pity about how much you miss your favorite Starbucks drink or how badly you need to get your hair done, take advantage of the money you aren’t spending by intentionally putting it in a savings or investment account.
Also, due to the recent stimulus plan announced by the Treasury Department and IRS, many Americans will be receiving a payment of $1,200 (for single persons) or $2,400 (for married couples) if certain qualifications are met. If you are fortunate enough to not depend on the check to meet basic living expenses, consider using the funds to pay down high interest debt, transferring the money to your savings or investment account, or even donating to a charity you support. Leaving the funds in your checking account could lead to making unnecessary online purchases, just because you know the money is there to spend.
Lastly, if you are financially able, now may be a good time to increase your percentage of automated payments into your savings or retirement accounts. Even bumping up your contributions by 1-2% could make a big difference to your long-term savings goals without feeling much of a difference to your take-home pay. If you’re not sure how to automate or increase payments from your paycheck, reach out to your company’s HR department or directly to your bank.
REWARD: Boom – you’re slaying your savings goals! Reward yourself by building an epic fort out of bed sheets and blankets. You can even “camp” by making s’mores in the oven and having an indoor bonfire.
- Insurance – Are You Covered?
The topic of insurance might make you want to pour yourself a big glass of your favorite beverage. (Go ahead – we’re not judging). The reality is that most of us have some form of insurance (auto, health, life, etc.), but we don’t know much about how it actually works. Since you’ve got a little free time on your hands, do some research on the insurance that you own. Make sure you understand the basics – like how much the insurance costs vs. what benefits it provides. Along those lines, evaluate whether you are overinsured or underinsured in any area and make adjustments accordingly. Here are a few places to start:
- Health Insurance: If you have health insurance through an employer, ask your HR department for a copy of your health insurance plan documents. Make sure you’re aware of your deductible, or how much you owe out of pocket before your insurance kicks in to cover the rest. If you have access to a High Deductible Health Plan (HDHP) and a High Yield Savings Account (HSA), it might be a good idea to keep at least your annual deductible amount in your HSA. Your contributions to your HSA will be tax deductible, the interest earned in the account is tax-deferred, and if you end up needing to use the funds to pay for a qualified health care expense, the money will come out tax-free.
- Auto Insurance: Chances are, you’ve got it (or at least you should). But how do you know if you’ve got enough insurance and what exactly it covers in the case of an accident? NerdWallet provides an excellent resource of key car insurance terms. Use this as a reference while reviewing your benefits summary, which you can usually find on your car insurance website or by calling your local agent. Also, Insurance.com provides a great calculator for determining how much coverage you realistically need.
- Life Insurance: Or should we say, Love
Insurance. Really – this is the only insurance you’ll buy that won’t benefit you in any way. But, it could mean the
world to your loved ones if you pass away unexpectedly. Some employers provide
basic life insurance coverage for employees (something like 2x annual salary).
Check with your HR department to see if this is the case (and to make sure your
beneficiaries are up-to-date). However, the reality is that coverage through
your employer may not be sufficient to take care of your loved ones if they
suddenly lose your income. Remember: if you own a house, a car, student loan
debt, credit card bills, etc., your loved ones will be responsible to continue
paying these obligations even without you around. Use these tools to figure out
if you are properly insured:
- www.LifeHappens.org Life Insurance Calculator
- Disability Insurance: Same concept as
life insurance applies here. Some employers provide basic disability insurance
coverage for employees, but you’ll want to check with your HR department to see
if this is the case. However, often the coverage provided may be extremely
minimal and won’t come close to meeting all of your basic needs if you are
unable to work. Here are a few resources to determine if you need additional
coverage:
- www.LifeHappens.org Disability Insurance Calculator
REWARD: By the time you’ve brushed up on your insurance coverage, you may have already finished your first drink of choice. Why don’t you pour yourself another and host a Virtual Cocktail Party with friends and family? You deserve it.
- Charity – When The Best Way You Can Help Is Staying At Home
As we are bombarded with media headlines about the pandemic and, at the same time, urged by our political leaders to stay at home, it can leave us feeling helpless. We know the world is hurting, but the best way to help prevent the spread and flatten the curve is to keep to ourselves. But, this doesn’t mean we can’t still make a huge positive impact right from our own living room.
If you are fortunate enough to have money leftover after taking care of your basic needs, consider donating to a charity that is actively meeting the needs of those most affected by COVID-19. Even $5 could provide several meals to a child who normally receives their nourishment through school breakfast and lunches. Find an organization that you believe in and make a donation, big or small. Not only will it provide resources to those who need them most, but it will also allow you to be actively involved in fighting the COVID-19 battle. CharityNavigator.org lists multiple organizations responding to COVID-19, along with a description of the nonprofit and detailed information about the needs it is meeting. Leave a comment below sharing the charity that you are supporting and why it means something to you!
REWARD: Giving to charity provides the best reward of all: joy in knowing that you have made a positive impact on the world.
-
How to Talk to Your Kids About Money
Written By: David Hessel, Fiduciary Financial Advisor in Brookfield Wisconsin
Opening up and starting conversations about how to handle money and finances with your kids may seem overwhelming, but it doesn’t have to be.
As a parent, it is your role to serve as a positive influence in their lives to get them on the right financial track. Here are five things to consider as you embark on helping your children understand the importance of being responsible with their finances.
Start Simply, When They Are Young
Start discussing money with even the littlest ones by including by including them in everyday activities, such as grocery shopping or budgeting. This allows money to become a tangible concept and not some abstract thing that they cannot see. You can also ask them questions such as “We have 5 dollars to buy a treat, would you pick gelato or cookies?”. These types of conversations help children to understand that their are trade-offs to any decision, and that money is not infinite.
Be Truthful
Being honest with your kids is a great first step to opening the door to discussing finances. You can share the family budget for items like groceries or entertainment, and explain remind them of this limit when they ask for items that don’t fit within it.
Additionally, if there are things in your financial past, such as going into debt, that you are not proud of, share that with your kids. Honest moments with your kids are very valuable and will help build trust. Keep in mind that the more open and honest you are with your kids, the more open they will be with you, so being truthful about your own finances is a great place to start.
Talk About Values
Encourage your kids to consider what is important to them for their future. Start by asking questions such as “Do you want to own a house or rent when you grow up? or “What splurges would you like to be able to make when you grow up (travel, cars, etc)?”.
Helping kids to visualize what they want for the future is a crucial component to talking to kids about money and financial goals. Talking about what they value and hope to have in their future allows them to take a long-term view, which is critical to the concepts of saving, budgeting, and paying down debts.
Establish Family Goals
As a family, talk about your budgeting methods and set specific goals together. For instance, perhaps you set a weekly grocery limit of $150. Take your children to the store with you when you shop and have them help look for sales or clip coupons to keep your cart under budget. Involving your children however you can with the family finances is a great hands-on way to educate them and give them a chance to see real-life examples of how their financial habits will impact them in the future.
Lead By Example
There may be certain financial topics that you are not as knowledgeable about, and that’s okay! Take the opportunity to learn with your kids. Showing your kids that you are interested in growing your understanding of financial topics will heighten their interest in it as well.
Talking to your kids about money may seem like a daunting conversation to have if you don’t know how to approach it properly. However, broaching the subject sooner rather than later will reap many benefits for you and your kids. Ultimately, you want your kids to have the knowledge and skills they need to handle their own finances responsibly as they grow up. As a parent, it’s your job to instill this knowledge in them and to open the door to an often taboo subject so that you can help them get off on the right foot with their finances. Financial habits are formed young, so it’s critical that you start early and start the conversation today. Make your kids feel comfortable to talk about finances with you by using these tips.
Looking for more guidance on how to be financially stress-free? Schedule a 30-Minute Phone Call with David Hessel, Fiduciary Financial Advisor in Brookfield Wisconsin, here or send him an email at dhessel@gvcaponline.com.
You can find the original article here.
GVCM is an SEC Registered Investment Advisory firm, headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188. PH: 262.650.1030. David Hessel is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at: https://www.adviserinfo.sec.gov/IAPD/Global View Capital Insurance, LTD. (GVCI) insurance services offered through ASH Brokerage and PKS Financial. David Hessel is an Insurance Agent of GVCI. Global View Capital Advisors, LTD is an affiliate of Global View Capital Management, LTD (GVCM). This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
-
Finances: The No. 1 Reason Americans are More Anxious Than Ever Before (+ How to Manage it)
Written By: David Hessel, Fiduciary Financial Advisor in Brookfield Wisconsin
As we get older, more and more expenses end up on our plate. From mortgages to car repairs, it can feel like there are endless bills to pay. And as we all know, with more bills, comes more pressure, anxiety and stress. In fact, the American Psychological Association found that money is Americans’ number one stressor.1 Finances have remained at the top of the list since the survey began in 2007.2
When it comes to stress, the numbers don’t lie. The Proceedings of the National Academy of Sciences conducted a study that evaluated heart health changes before, during and after a recent financial crisis and found that during the recession, both blood pressure and blood glucose levels increased in respondents, signaling a worsening in heart health.3
While many of us dream of being financially secure, most of us can agree that traditional education in our public schools does not properly equip us with the knowledge and resources necessary to be effective financial decision-makers. There seems to be a growing gap between financial literacy and our population, causing many people to lose hope and get trapped in a deeper hole of debt.
However, when it comes to money, there are four ways you can more effectively manage your finances so you remain in control of your spending habits.
Tip #1: Automate Your Savings
It can be difficult to set aside money every month, especially after you’ve been anxiously awaiting to get your paycheck. If you’re someone who struggles with putting money away, consider setting up an automatic transfer from your checking account to your savings account each month to make sure that no matter what, you’re continuously growing your nest egg. Whether you want to be prepared for any emergencies that may come up or have a dream of buying a house one day, adding money to your savings account every month — even if it’s only $100 — can get you closer to the financial stability you need to feel confident about your future.
Tip #2: Stay Away from Impulse Purchases
With so many products out there — ranging from new gadgets to the latest ‘must-have’ accessories — it can be difficult to put a cap on your spending habits. Instead of putting yourself right in front of your guilty pleasures, consider putting your money towards experiences, rather than material items. If your favorite past-time is going to the mall, swap window shopping with a picnic out in the park or a day out at your local museum (some museums offer discounted prices over the weekend). While retail therapy may seem like the solution to your problems, oftentimes, you end up feeling worse than if you had spent your time making memories instead. With these memories, your craving for consumerism may gradually die down, leaving you with more time to enjoy the simple pleasures in life.
Tip #3: Focus on What You Can Control
While it’s difficult to effectively plan ahead for every single expense we’re going to have, you can at least have an initial game plan for where your money is going to go. Theoretically, every month, you know you’re going to have to pay rent or a mortgage, buy groceries, pay other utility bills and fill up on gas a few times. So, after you get your paycheck, subtract all of these expenses from your total amount. This will give you a clear idea of how much “fun” money you have to spend each month. And, if you plan to put some money into your savings account, you’ll want to make a note of that too.
The purpose of this exercise is to make yourself more mindful of the money you’re spending each month. When you know — without a doubt — certain specific expenses are going to come up, you can start planning ahead to make sure you’re not spending more money than you have.
Tip #4: Be More Goal-Oriented
For some people, the thought of having a goal can be terrifying as it means there is a chance they might fail. However, if you never set goals for yourself, you’ll never have complete control over your financial life. To get started, begin with a realistic goal that can ideally be achieved in less than five years, such as paying off your credit card debt. Once you’ve identified what you want to accomplish, write it down.
Oftentimes, the simple act of writing down your goals can make it feel more real, therefore making you more accountable. Next, create a rough timetable of how you are going to achieve your objectives. This timetable could include information such as how much money you’re going to save every month, as well as milestones for each payment you’re going to make. Over time, you’ll begin to gain more confidence about your finances, in turn leaving you feeling more in control — and capable — of managing your money on your own.
Looking for more guidance on how to be financially stress-free? Schedule a 30-Minute Phone Call with David Hessel here or send him an email at dhessel@gvcaponline.com.
You can find the original article here.
- https://www.apa.org/news/press/releases/2015/02/money-stress
- https://www.marketwatch.com/story/one-big-reason-americans-are-so-stressed-and-unhealthy-2018-10-11
- https://www.pnas.org/content/115/13/3296
GVCM is an SEC Registered Investment Advisory firm, headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188. PH: 262.650.1030. David Hessel is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at: https://www.adviserinfo.sec.gov/IAPD/Global View Capital Insurance, LTD. (GVCI) insurance services offered through ASH Brokerage and PKS Financial. David Hessel is an Insurance Agent of GVCI. Global View Capital Advisors, LTD is an affiliate of Global View Capital Management, LTD (GVCM). This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
-
7 Steps to Set and Follow a Wedding Budget
Written By: David Hessel, Fiduciary Financial Advisor in Brookfield Wisconsin
A wedding can be an exciting time, and sometimes it can be easy to let your emotions get the better of you and spend more than you anticipated on spending. While it is a special day in your life, it is important to set and stick to a budget you can afford so you do not have the stress of paying off excess debt when you are embarking on the next stage of your life. So how can you stay on track with your wedding budget and still have a day you’ll never forget? Take a look at these 7 tips.
1. Take a Hard Look at Your Finances
The first step, and most often the least exciting when planning an event, is taking a good, hard look at your current financial situation. You will need to come up with an amount that you will be able to save in time or that you can afford to cut from your budget or savings accounts. Once you have determined the most you can spend, a number 10 to 20 percent less, that will give you your budget range. While this can be an awkward conversation for many new couples starting out, it is a good way to build a strong foundation for discussing money matters throughout your marriage.
2. Create a Reasonable Guest List
One of the largest expenses of a wedding is the food and drink, and the amount you will need to provide for your guests will have a direct effect on the total costs. While it can be tempting to invite everyone that you know, including distant family you may rarely contact, it is best to set an amount on your guest list that is reasonable and stick to it. Start out by determining numbers for close family and friends to make sure you have the most important guests on the lists before you begin adding more.
3. Determine Contribution Amounts From Others
While some couples may tackle their wedding expenses all on their own, often times the bride’s and groom’s family will contribute to the wedding expenses. It can sometimes be awkward determining how much they plan to contribute or what items they plan on paying for, but it is an important discussion to have sooner rather than later. Just remember that if you accept monetary contributions from family, they will probably expect to be able to provide some input.
4. Create a Wedding Account to Stay on Budget
The best way to stay on budget and keep track of your wedding spending is by opening a banking account and setting aside the money budgeted in it. Use the money in the account only for the wedding expenses. If you end up with some extra in the account at the end, you will have some spending money for your honeymoon or be able to pick up a couple of items from your registry.
5. Decide What Parts of the Wedding Are Most Important to You
There are primary parts of your wedding that will require a significantly larger expense than others such as the food and the venue rental. Though aside from the standard big-ticket items, wedding expenses can come with a wide range of price tags. Determine with your future spouse which items you are willing to splurge on and which items you care about less. You may be willing to choose a more reasonably priced dress to be able to have an open bar, or limit flower options to have a live band for music. Have some fun and plan a date night where you write a list of your wedding priorities.
6. Set a Budget-Friendly Wedding Date
Having flexibility in your wedding date is a great way to shave some bucks off of your budget as well as get the vendors you want most. Some of the most popular times of year to have weddings are around holidays so it is best to avoid these weeks as you may have problems securing a vendor or be required to pay an increased rate. Your specific area may also have seasonal trends with popular wedding months. If this is the case, choosing an off-month will give you the best bang for your buck.
From personal experience, allowing yourself to enjoy your engagement and waiting 2-3 years before the big day gives so much flexibility with spending and discounts. One example here is, typically when you book a vendor, they will lock you in at current pricing. (ask if not clearly stated) Most are bound to increase over the next 2-3 years; so by giving yourself more time to plan, you end up saving a decent amount of cash too.
7. Fight the Urge to Splurge
It can be easy to get caught up in the money and excitement of unique items that will make your wedding perfect. Just remember that it is the wedding vendors job to upsell as much as possible to try and resist the temptation to have add-ons as they can cause your budget to quickly get out of control. It is also good practice to make sure you bring a list with you when picking up wedding items, so you do not find yourself distracted and purchase items you do not need.
Try following the seven tips above to give you a better chance of staying on budget while still having the wedding that you always dreamed of.
Looking for more guidance on how to budget for your big day? Schedule a 30-Minute Phone Call with David Hessel here or send him an email at dhessel@gvcaponline.com.
You can find the original article here.
Global View Capital Advisors, LTD is an affiliate of Global View Capital Management, LTD (GVCM). GVCM is an SEC Registered Investment Advisory firm, headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188. PH: 262.650.1030. David Hessel is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at:https://www.adviserinfo.sec.gov/IAPD/
Global View Capital Insurance, LTD. (GVCI) insurance services offered through ASH Brokerage and PKS Financial. GVCI is headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, Wisconsin 53188-1126, PH: 262-650-1030. David Hessel is an Insurance Agent of GVCI.
-
Face The Fear Podcast – Wedding Planning with Event Extraordinaire, Andi Jo Clark!
Join us as we chat with Andi Jo Clark, Event Director at Union 12 about all things weddings, planning and budgeting for your big day! (We even dish out some non-financial wedding tips!) 🙂
Andi Jo Clark – Event Director at Union 12 (Event Center & Banquet Hall):
- Email: info@union12.com
- Website: http://www.union12.com/
- Facebook: https://www.facebook.com/Union12Hall/
- Instagram: @union_12_hall
Face The Fear:
- Instagram – @face.the.fear
- Facebook – https://facebook.com/FaceTheFearFW
- Twitter – @Face_The_Fear
- Website – www.facethefearfw.com
-
Tips to Talk Finances With Your Spouse
Do you talk finances with your spouse? No? Well, you should. As awkward as it maybe, it is so important to have regular discussions over your financial situation.
Now, I know this might be tough if there is a dark cloud over your finances, and may cause disagreements, but sweeping it under the rug only makes it worse. I assume there is some sort of discussion related to this subject, but is it a quick “honey, did you pay the rent?” or is it a full-on conversation related to goal setting, where you are at, where you want to be, and the steps you are taking to get there? There is a HUGE difference. Don’t get me wrong, you can still ask if the rent is paid but having the actual in-depth discussion behind that question is what is so important.
Finances are one of the biggest causes of divorce in the US. I don’t mean to be a Debby downer, but it is a fact. By having these discussions and putting the work into creating a successful financial future, this can help you to avoid being in that statistic.
To make this a little less awkward, I have some tips to help lighten the load:
- Icebreaker: That initial conversation is probably going to be the toughest to start. Make it comfortable. Schedule a time to sit down to a nice dinner or get in your pjs and talk money with pizza. Anything to make the situation more relaxed. Try to start by discussing the positives of your finances. Maybe you saved an extra $300 this month, or you raised your 401k contribution, literally anything positive. Doing this can help get you both in a good mood. If there is nothing positive to start off with, maybe bring in a solution to an issue. Say you have a massive medical bill due this month, instead of just looking at the fact that you are going to spend a ton of money that maybe you do not have, look on the bright side that at least after this month you won’t have that bill and you can put that money into savings next month. Get creative and try to keep the mood light. The discussion will be more productive if you are both happy.
- Do not lie: This is probably THE most important tip I can share. Hiding items related to money is the easiest way to cause an argument and create issues. It is so much better to get everything out into the open so together you can take the steps to make it right. No matter how embarrassing it is, or how big of a burden it may be, you are in this together. In my opinion, I would much rather hear the bad news up front and work through it than be lied to about it as the problem is getting much bigger. Be open and communicate the issues. This is so important.
- Use tools: There are so many resources out there to help you reach your financial goals. From budgeting websites, spreadsheets, templates, books, the list goes on and on. Find a tool that works best for you and your spouse. If you budget monthly and like apps there are sites such as Mint or Everydollar. If you budget weekly and like to have a paper copy, maybe you find a spreadsheet that you can fill in. Anything to help make it easier. This can also help make future conversations a breeze to get through. On top of that, you will visually be able to see how you are doing and stay on track.
- Make goals: By setting financial goals you and your spouse will have something to work towards. Instead of waiting for the next paycheck to blow on food- guilty, say you made a goal to pay off your car 1 year quicker, now you have a purpose for the money that betters your future. These goals can be short term or long term, or even better a mix of both. Consider writing these down somewhere, your phone, computer, notebook, etc. Being able to see them will help make it harder to give up on them. Make sure they are goals you both agree on and benefit you both.
- Make a plan and stick to it: Whether this is a budget, or a 5- year plan, make a plan. Discussing what you want to achieve and talking about how to get there is a great step, but really getting down deep and planning everything out will help you realize what you have to look forward to, what you can do right now, or where you are making mistakes. If you do not have a basic household budget yet, that might be a good place to start. Find a way that works best with your pay schedules and stick to the budget. From there, start making a longer-term plan. For example: In 5 years you and your spouse are going to build a house and to get there, year 1 you are going to cut the amount you eat out in half every month and put that money into savings, year 2 you are going to do so and so…and year 3 and 4 and so on until you build the house. Hang your plan on your fridge and talk about it frequently. Keep your budget, or plan in front of you so you can keep each other accountable if one of you starts to fall of track. Teamwork makes the dream work!
Hopefully these tips help you and your spouse start the conversation for your financial future. Talking about money does not have to be awkward. If you take the time to create a more relaxed environment and discuss the positive things you have or can do, in my experience, it helps so much. This is the person you are stuck with forever, make sure you are both on the right page to have a successful future!
Written By: Dakota Otis
-
5 Apps That Make Cents
Let’s take a poll. Do you have an iPhone (or other smartphone if you’ve somehow survived without biting into the Apple)? Do you want to make more money? I hope you’ve answered yes to both of these questions. (If not, who are you and ARE YOU OKAY?) Here are 5 apps to help you make (and save) a few extra cents:
Stash is an app built for investing newbies. In fact, 86% of the app’s users are first-time investors. Stash is basically the Planet Fitness of investing platforms — a Judgement-Free Zone where users are provided basic investing education in an easy-to-understand way without some of the complexities of other robo-advising platforms. The app allows you to create an account and begin investing with as little as $5. Investment choices include individual stocks and ETFs, categorized by features like market capitalization or social responsibility. Currently, three different subscription plan options are available, based on your investing goals: Beginner, Growth, and Stash Plus. The Beginner Plan ($1/month) allows you to open your own taxable brokerage account, receive financial education, and use the Stash debit card with Stock-Back (earn stock as a reward for shopping at certain companies, like Amazon or Starbucks). The Growth Plan ($3/month) offers all previous benefits, plus tax-advantaged retirement accounts such as a Traditional or Roth IRA. Finally, the Stash Plus plan ($9/month) adds the features of a UTMA/UGMA accounts (savings for children), double Stock-Back rewards, and monthly market insight reports. (Disclaimer: Stash is an investing platform. If you choose to invest, you will be subject to market risk and could lose money. Also, Face The Fear is not sponsored by Stash. We just genuinely like the app and think you will, too).
2. Achievement
Ever find yourself binging Netflix with ice cream tub in hand, wondering when you lost your motivation to workout and where you’re going to find it again? Achievement is here to help. For some people (aka me), the idea of strutting my “beach body” next summer isn’t enough to get me off the couch. Achievement knows money is a big motivator for many people, so it rewards you in cash for being active. The app synchronizes with various fitness apps you may already have on your phone, such as Apple Health, My Fitness Pal, Fitbit, Garmin, and even Twitter. You’ll earn points by completing exercises, logging food, measuring your heart rate, tweeting about your health, and reading health-related articles. Once you reach 10,000 points, you can “cash in” your points for a $10 reward sent to your PayPal, personal bank account, or a charity of your choice. Good for your health. Good for your wallet.
3. Drop
You spend money. I spend money. We all spend money. That’s a fact of life. Why not earn cash back on the money you’re already spending? Add an extra “drop” or two to the savings bucket, per say? Meet Drop – the cash back app. Drop allows you to link your credit or debit cards to the app, then gives you cash back points on purchases you make everyday at retailers such as Target, Starbucks, Lyft, AT&T, Apple, and more. You can also shop at certain retailers through the app to receive additional discounts on purchases you make and earn “boosted” cash back points. Once you’ve collected at least 5,000 cash back points, you can redeem them for gift cards to restaurants, movie theaters, clothing stores, airlines, and more. It’s an easy way to put some money back in your pocket without even thinking about it. (P.S. Drop is my personal favorite cash back app, due to ease of use and retailer options. However, if Drop doesn’t tickle your fancy, here are a few other highly-rated cash back apps you might enjoy: Rakuten, Ibotta, and Dosh).
4. Hopper
Have you ever spent hours online trying to book a flight, searching for the cheapest option available, and finally purchased the tickets – only to find out prices decreased a few days or weeks later? Same. That’s when I found Hopper. Hopper is a free app designed to solve this problem and – from personal experience – it works wonders. The app allows you to choose a departure and destination location, as well as preferred dates for your travels. It then tracks those flights, analyzes travel trends, and tells you the best time to buy the tickets at the cheapest price possible. When I recently used Hopper to book a flight to Bogota, Colombia, it suggested that I wait to purchase the tickets, because it predicted a better price in the future. In the meantime, Hopper tracked the flight over several weeks, notifying me when the prices increased or decreased. However, even when there was a decrease in ticket price, Hopper would tell me if the prices were expected to continue decreasing in the coming weeks (so I should keep waiting) or if this is the lowest predicted price (so I should purchase the flights now). I followed Hopper’s advice and secured the cheapest tickets possible before they jumped up in price again. If you’re a frequent flyer, Hopper will easily save you hundreds of dollars (and hours of stress) a year.
5. Mint
If you’ve been a Face The Fear follower for a while, you KNOW how we feel about Mint. Budgeting is tough. Keeping track of every penny that leaves your wallet can be tedious and time consuming. Wouldn’t it be wonderful if there was a little accountant living in your phone, keeping track of your budget for you, cheering you on when your credit score increases, and letting you know when you need to cool it on your spending habits? Say hello to Mint – the free budgeting app that keeps tabs on your cash money all in one place. Mint allows you to sync your accounts to the app – everything from your checking and savings, credit cards, 401(k) and HSA, internet service, car payment, investments, and more. By consolidating all of your assets (what you own) and liabilities (what you owe) in one place, it becomes much easier to assess your complete financial picture and determine if you are on track to reach your financial goals. You can create your own custom monthly budget, and Mint will let you know if you’re close to exceeding your budget in a particular category. It will also remind you when you have a bill due soon, and it will congratulate you when you’ve paid off debt. While Mint is really a one-stop-shop budgeting tool, it is most effective when credit/debit cards are your primary payment methods (vs. cash) and when you actually sync as many accounts as possible to provide a holistic financial picture. If you still frequently use cash for purchases or don’t want to bother connecting all of your accounts, Mint might not be the best fit for you. Overall, however, it’s an excellent resource to keep track of your finances in the palm of your hand (without becoming an Excel budgeting wizard – unless that’s your thing – then, you do you booboo).
We hope you’ll find these 5 apps helpful to budget, save, and grow your cash money. Let us know your favorite money-saving or money-making apps in the comments below!
Written By: Kaitlyn Duchien
-
What Is High Yield Savings?
Are you a person that has a traditional savings account with your current bank? You know, the typical savings account that is paired with your checking account? Are you a person without a savings account at all? If you answered yes to any of these questions, please read on. If you have never heard of one, I am here to tell you a little bit about high yield savings accounts. It is essentially a normal savings account, only you get a higher interest rate. What is an interest rate? It is a percentage of your money that a bank will pay you just for having your funds housed with them. Free money — who doesn’t want that? Traditional savings accounts usually have a very low interest rate. For example, my interest rate through Chase bank is 0.01%. This is a common rate based on studies from Credit Karma. On my high yield savings account though, I have a 2.15% interest rate. This is a difference of 2.14%. Now, I am not here to tell you to get a high yield savings account, but I do think you should do some research into the benefits of opening one. NerdWallet is a great resource to research as well as find a bank that you are interested.
I know this might sound too good to be true, like what’s the catch? And there are some potential downfalls of a high yield savings account if you do not research. One of the biggest is service fees. These can sneak up on you and really bite you from behind if you are not aware of them. You also want to make sure that if there are service fees, they do not outweigh the interest you are receiving. There are plenty of banks that do not have fees on their accounts, but you just have to make sure you find the right one. You can also run into banks that require high minimum amounts that you must start with and not go below. If you are just starting your journey in savings this may not be practical for you. Another potential issue with this account is the transfers between accounts. If you are opening an account in a separate bank from your normal everyday bank, and an emergency arises, there may be an issue with getting your money in time. These are all items that you can avoid if you are paying attention to what money you are holding where and the banks you are going through. Talking to a representative is a great way to find out any hidden potentials that may not fit into your goals.
If you are still interested in one of these accounts, make sure before you open one you research, research, research. There are so many to choose from and they all may offer different incentives, fees, and options. Don’t just pick the one with the highest rate. I have had an amazing experience with one of these savings accounts, and it is potentially an easy step to make a huge difference in your long term financial goals.
Article Contributed By: Dakota Otis
Contact Us: facethefearfw@gmail.com
-
Save Now, Live Later
“It’s just money, you’ll make more,” is a fairly common phrase used by today’s millennials. In a world of instant gratification and two-day shipping, self-control has become nearly obsolete. We hardly bat an eye to make one click purchases or drop $300 for front row concert tickets, but putting money into a 401k or even a savings account seems like a total waste. At the ripe age of 23 I don’t have too many friends who are planning for retirement or even trying to save at all. While I do realize saving in your early twenties for something that seems like it will never come is hard, confusing, and completely overwhelming. However, being able to discover the importance of saving now versus later can impact many years of your life.
For starters, let’s take a look at what now vs later actually looks like. If you were to start saving at age 22 for retirement you probably wouldn’t have a ton of extra money to put in, but a little goes a long way. For example: you are 22 years old making $30,000 a year. If you were to put $225 per month (6% of your paycheck + $0.50 company match) at a 9% annual rate of return, it would give you $1,547,602 by the age of 67. That is not changing your contribution at all and assuming you started with $0 in your 401k account. Now let’s look at a 35-year-old making $60,000 a year. We are going to give them a $5,000 starting 401k balance and contribute amount of $450 a month until age 67. By the time they retire, they will have $1,044,338. In this scenario, the 22-year-old is going to retire with $500,000 more just from starting early! They were making less, contributing less, and starting with less, and still came out on top. Imagine where you could be with an increase in salary and a higher contribution amount each year. For the final scenario, let’s combine these two people. If the 22-year-old saved their $225 per month until age 35 and then their $450 a month until age 67, they would retire with $2,030,350.
Time truly is money and these scenarios show the importance of beginning now. To run scenarios of your own, Dave Ramsey has a great online calculator which can be found at https://www.daveramsey.com/smartvestor/investment-calculator.
Now after reading that, I am sure everyone is wanting to retire a millionaire, because… who wouldn’t want that? However, it’s a lot easier said than done. Finding the motivation and discipline can be a tough obstacle to overcome. Here are just a few tips to find your money motivation. The biggest thing is to surround yourself with it. Talk about, think about it, get excited about it. Grab a calendar and write out goals for where you want to be and when. Make short term achievable goals and stick to them. When you fall behind and don’t reach your goals, go back and write them again. Just keep doing this until it becomes a habit. Also, surround yourself with people who are wanting the same things. Being surrounded with friends who spend money as quick as they get it will make it that much harder to stay disciplined. Make sure to take advantage of any resources available to you (for example, everything Face The Fear has to offer!!). The more knowledge you are able to obtain, the better. One of my favorite things to do to motivate myself is to listen to Dave Ramsey’s podcast. Hearing about other people overcoming their debt and saving big is a great way to motivate yourself to do the same. So start now, don’t give up, and get rich.
Article Written By: Sydney Ford
Disclosure: The numbers given above are examples and are not guaranteed results and the company match varies by company.
-
Budgeting: 5 Tips & Tricks to Make the Budget Stick
Have you ever spent an obscene amount of time researching and crafting the perfect budget, only to give up on it a week later like a poorly executed diet plan? Do you find yourself trying to stick to your budget but your inner Donna Meagle just won’t let you?
If the answer is yes, you’re not alone! Only about a third of Americans actually make and maintain a budget (Yikes!). Being a college student newly introduced to the world of ‘adulting,’ I have tried countless methods in an attempt to set myself financially free. Here are some tips and tricks that have made my life easier (and hopefully yours, too).
- Find an app or budgeting system that works for you.
Mint and EveryDollar are great apps that allow you to budget and track your expenses. BUT, in case you want more options, Buzzfeed has already found, rated, and summarized 17 other apps to help you stay accountable. Other ways you can budget include Excel Spreadsheets, good old fashion pen and paper on templates like this template, journals, whiteboards, and more. You’ll want to make your budget before the month starts and adapt the budget to each month. Whether you’re picking up a side hustle in summer time or celebrating birthdays, you’ll need to account for everything! At the end of each month, see where you overspent and try to improve your budget for the next month ahead.
- Get a calendar, find a place to hang it where you’ll see it, and fill in the boxes.
Add your bills, the due dates, pricier events like birthdays, etc. to help you organize your expenses. It takes some time, but it’s totally worth it! If you have a fluctuating income, you could even add your day-to-day earnings on the calendar. This will help you visualize your month ahead and show you how much you need to have in your account by the next bill. Not to mention the satisfaction you’ll have when you get to cross out that bill for the month! If you want a more private alternative to this, create events with this information in your phone’s calendar and set reminders for yourself.
- If you can, try to pay cash!
I’m not suggesting you carry your entire life savings on you but try to keep only what you budgeted to spend for the day. This will force you to stay on target, and you won’t have to deal with credit card interests if you use cash! People tend to spend more money when they use a debit or credit card compared to when they use cash. With cash, you can look directly at what you have left and adjust your spending habits accordingly.
Another reason why paying with cash can be helpful is all the loose change you’ll accumulate! You can keep these coins to yourself and cash them in at a later time for cash, or gift cards if you want to avoid fees. If you choose the cash option, you can turn that coin fund into an extra savings fund for your personal goals. You’ll be surprised how quickly coins add up.
- Find a way to organize your cash.
Some people like Dave Ramsey’s method of using envelops, but that’s not the only way. Another easy way to organize cash is by purchasing a hanging shoe organizer and put labels on each pocket with different budget categories such as groceries, gas, rent, clothing, etc. You could hang this in your closet, your office, or anywhere you feel would be safe. This cash should be for short-term purchases, not for your emergency fund or savings goals. For that money, I recommend a safe savings account. You can find a good savings account here.
- Lastly, don’t be afraid to say no.
In the beginning, budgeting will be difficult because you’ll have to tell yourself no more often—especially compared to your friends that don’t budget. Does this mean you have stay home all day and watch re-runs of the Office instead of hanging out with your friends?
Of course not! There are plenty of free-to-low-cost ways to have fun. If you’re running low on your recreational fund, try some of these. Not only will this help you stay on track, but it will challenge you to do something different. Also, saying no lets you say yes later. Instead of spending money on late night trips to Taco Bell, you can put that money towards a short-term savings goal like a road trip!
These tips have made me perfect my budgeting habits, and they may help you conquer the budget! If you need more ideas, Pinterest and Google will be your best friends. Just remember that the hardest part about budgeting is keeping yourself accountable and accepting that you’ll make mistakes. You will fail. You will adapt. You will overcome. Be patient and find a system that works for you. Your current self and future self will thank you!
Article Contributed By: Kianna Dalton
Contact Us: facethefearfw@gmail.com