Commit. Plan. Take action.
My husband and I decided to pay off all of our debt, including our mortgage, as quickly as possible.
We understood it was a huge endeavor and estimated that it would take us about eight years to do, but we knew the feelings of freedom and achievement once we met our goal would be well worth the dedication, sacrifice, and hard work in the end.
As the saying goes, “How do you eat an elephant? One bite at a time.”
It’s a horrible feeling when you can’t pay your bills or you run out of money before the end of the month. When you’re not even half-way through the month and already know for sure your account will be hitting zero soon it can be even worse.
Before depression sets in or you hit panic mode, stop and take a deep breath. There are solutions when you need extra cash this month.
When you need extra cash this month, start your spring cleaning early. Take an hour or two to go through the clutter in your home or apartment.
If you are like me chances are you usually put it off until you have time. But what better time than when you need some extra money?
Tackle that closet or dresser that is stuffed with clothes that don’t fit or new items you never used and won’t miss. Then, go online to eBay, Amazon, Letgo, or some other site and give it a new home.
Have you ever considered filling out surveys to make some extra money? There are plenty online to choose from that are willing to pay for your opinion of their products or services.
Some pay more than others, of course, but you could make anywhere from an extra few dollars to $90 or more. Regardless of the amount, if you have a computer already and a little extra time on your hands you could be making money in no time.
Another thing to do when you need extra cash this month is ask for a raise. Obviously you will want to make sure you have been doing an exceptional job before you approach your supervisor. But this is one way to get some extra money in your budget when you need it.
If you don’t mind driving you could use your car to earn some extra money. Sign up for Uber or Lyft and within a few days you could be chauffeuring others around and earning money for it.
Don’t worry if you don’t have a car. You can still sign up through HyreCar. Just fill out the paperwork and they will do a background check before matching you to a car you can rent.
Having an unused bedroom can help when you need extra cash this month. With a little time and preparation you could rent it to other people such as vacationers or those traveling for business.
Check out the requirements with Airbnb to see if your home qualifies. You can either be absent or present when guests are there as long as you notify them before they rent.
You might be able to offer travelers additional services for extra money too, such a meals or transportation. However, if you do offer extras, make sure the prices are stated up front.
Often people just need someone to fill the gaps in their lives. You could be that person. Advertise on Facebook, Twitter, and other places so that your community knows you are available.
The services you could provide are only limited by your imagination and what others need. You could babysit, animal sit, clean houses or businesses, paint, detail cars, tutor, clear snow, clean gutters, wash windows, buy and deliver groceries, run errands, and more.
If you have a sewing machine and are good at sewing you could tailor, mend, and alter clothes for other people to bring in extra cash. Some communities have a need for these services with no one to fill it.
Check with bridal shops, dry cleaning services, and clothing stores to see if you can get referrals. You may even be able to turn your temporary side-hustle into a permanent side business.
If you love to spend time in the kitchen and are a good cook, turn it into a money maker. Decide if you want to cater full meals or bake cookies, cakes, and other sweets.
Then, advertise and share a few samples to get customers fast. Before you know it you will be raking in the dough.
As you can see, when you need extra money in pretty short order there are things you can do to get it. Choose one or two of these ways to add to your income and help you breathe a little easier.
Have you ever fallen short on cash before? If so, what did you do to solve the problem?
Jeanne is a married mother of 2 children who works as a full-time freelancer and also helps out occasionally on the farm she and her husband own together. Her background is mostly finance and medical office management. She’s currently working to improve her financial well-being and hopes to help others improve theirs as well.
Artificial Intelligence (AI) has transcended its role as a futuristic concept to become an integral part of our daily lives. Beyond its applications in various industries, AI has proven a powerful tool in personal finance, offering innovative ways to save money and make more informed financial decisions.
Unknown to many, there are 10 impactful ways AI can revolutionize your finances and contribute to significant cost savings.
Traditional budgeting methods can be time-consuming and prone to human error. AI-powered budgeting tools like Mint and PocketGuard offer a more thoughtful and efficient approach.
These tools use machine learning algorithms to analyze your spending patterns, categorize transactions automatically, provide real-time updates on your financial status, and even find you the best loans like NetCredit. By automating budgeting and expense tracking, you gain a comprehensive understanding of your financial habits, allowing you to identify areas where you can cut unnecessary expenses.
Investing can be complex and intimidating for many individuals. AI-driven robo-advisors simplify the investment process by using algorithms to create and manage a diversified portfolio tailored to your financial goals and risk tolerance.
Platforms like Betterment and Wealthfront leverage AI to optimize your investments continually, ensuring that your portfolio aligns with market trends and adapts to changing conditions.
Using AI isn’t just about growing wealth. It’s also about managing debts intelligently. AI-powered debt management tools analyze your financial situation, identify high-interest debts, and create personalized repayment plans.
These plans may include strategies for debt consolidation and negotiation with creditors. By leveraging AI in debt management, individuals can make informed decisions to pay off debts strategically, saving money on interest payments and achieving financial freedom sooner.
Retailers and service providers increasingly use AI to offer personalized recommendations based on consumer behavior and preferences. Apps and platforms employ AI algorithms to analyze your spending habits and present tailored suggestions for discounts, promotions, and cashback offers. By taking advantage of these personalized recommendations, you can save money on everyday purchases without compromising your preferences or lifestyle.
AI significantly promotes energy efficiency in smart homes, leading to tangible cost savings. Smart home devices with AI algorithms can learn your behavior patterns and optimize energy consumption accordingly.
For example, smart thermostats adjust heating and cooling schedules based on your usage patterns, reducing energy bills. Investing in AI-powered smart home solutions enhances your lifestyle and reduces utility costs, leading to long-term savings.
Many individuals subscribe to various services, from streaming platforms to magazines, and it’s easy to lose track of these subscriptions. AI-powered subscription management tools like Truebill and Trim analyze your bank statements to identify and cancel unused or unnecessary subscriptions. By eliminating redundant subscriptions, you can free up funds previously spent on services you no longer need, contributing to significant savings over time.
Understanding financial concepts and making informed decisions is crucial for saving money. AI-driven financial education platforms, like Albert and Cleo, use machine learning to provide personalized financial advice and insights.
These platforms assess your financial situation, offer tips for saving money, and even provide guidance on investments and debt management. Incorporating AI-driven financial education into your routine gives you the knowledge to make sound financial decisions, ultimately leading to long-term savings.
AI excels at predictive analytics, and this capability can be harnessed for effective expense planning. By analyzing historical spending patterns and external factors, AI algorithms can predict future expenses with a high degree of accuracy.
This foresight allows individuals to plan and budget more effectively, avoiding last-minute financial stressors and enabling better control over their finances. Whether it’s planning for upcoming bills or setting aside funds for irregular expenses, predictive analytics can be a valuable tool for saving money.
Financial security is a top priority, and AI is crucial in safeguarding your assets. AI algorithms analyze transaction data to detect unusual patterns and flag potentially fraudulent activities in real-time. This proactive approach helps prevent unauthorized access to accounts, protecting individuals from financial losses and the hassle of resolving fraudulent incidents.
Tax season can be stressful for many individuals, but AI can simplify the process and potentially lead to significant savings. AI-powered tax optimization tools, like TurboTax and TaxJar, use advanced algorithms to identify eligible deductions and credits, ensuring that you maximize your tax savings. These tools stay up-to-date with the latest tax regulations, reducing the risk of errors and helping you navigate the complexities of the tax code more efficiently.
From automated budgeting and intelligent debt management to personalized recommendations and tax optimization, AI empowers users to make informed decisions that contribute to long-term financial well-being. With AI technology advancements, managing finances has become more accessible and less daunting. Using these tools and using them to their full potential, individuals can take control of their finances and achieve financial stability.
Credit cards can be a great financial tool for everyday expenses and building a healthy credit score. Sometimes it can be a tool of financial independence or an instrument of debt. This depends on how you use them. Here, we will explore some pro tips on How To Use Credit Cards Wisely to Avoid Debt.
Many credit cards offer rewards, cash back, and miles on purchases that make people spend more and more.
However, this convenience of credit cards leads to debt quickly. According to Nerdwallet’s annual report, around 47% of U.S. households have outstanding credit card balances.
In this blog post, we’ve covered some pro tips on how to use credit cards responsibly to take advantage of all benefits while staying debt-free.
Before considering a credit card, it is very important to create a monthly budget and stick to it. This will help you in tracking your income and expenses. This budget will be your financial roadmap of expenses and savings. Try to manage funds for everyday expenses like rent, groceries, utilities, or travel. Never spend more than you earn.
Once you determine your financial needs, you get a clear picture of how a credit card fits in your needs. Remember, a credit card is not a money machine. Use it carefully to avoid debt.
Paying your balance in full each month is the best way to use a credit card wisely and avoid extra charges every month. But, make sure you are able to pay the payment in full each month. This will not save your money but also put a positive effect on your credit score.
In case, if you leave a card balance, try to keep it under 30% of your credit limit. This is because minimum payment is a trap of temptation. However, it seems manageable, but over time it becomes an iceberg of debt.
If you keep paying only minimum, this can accumulate years of high-interest payments turning your small purchases into larger expenses.
Pay Your Balance in Full is the best way to use a credit card responsibly.
Have you ever thought about What Happens If You Stop Paying Credit Cards?
Do you skip payments or have a large credit card balance to pay? Paying you balance on time is the best way to use a credit card responsibly. If you keep skipping payments, it will ruin your credit score.
Build a debt repayment plan and pay as much as you can each month and don’t use your credit card until you pay off the whole balance. You should not carry a balance.
You can take advantage of balance transfer of any 0% intro offers to pay your debt faster. You can set up automatic payment reminders for your upcoming credit card bills. This will ensure you never miss a payment and keeps your credit score improving.
Most cards come with rewards programs that offer reward, cash back, points, miles, and other perks. Check the reward benefits and choose a card that best matches your needs.
Credit cards that offer rewards may help you save. If you spend a lot, you might get cash back and can build wealth from it. You can transfer your rewards as savings automatically deposited in a checking or savings account
Your credit card network can also be a great source of income as sometimes it refers you to special offers. This can be a smart way to use your credit card.
Checking your monthly credit card statements is very important for any fraud transactions, suspicious activity or billing errors. Regularly check your monthly for unauthorized charges, unusual spending or any fraud purchases from your credit card.
To monitor your credit card statements regularly, you can set up purchase notifications in your credit card mobile app. This can help you in spotting the transactions that you don’t recognize.
If you are unable to pay your balance in full each month. But, try to keep a low credit utilization ratio. Generally, the credit utilization ratio is the percentage of the credit amount currently in use. For example, if you have a credit limit of $1,000 and you spend $500 on purchases, then you have a 50% credit utilization ratio.
If you use a high percentage of your credit limit, it can be harder to pay off debt. If you skip payments, it can negatively affect your credit score. Plus, you will keep paying more and more interest over time.
So, keep your credit utilization ratio below 30% of your credit limit.
Many people prefer to keep more than one credit card because many credit cards offer attractive benefits, but keep in mind that applying or opening too many accounts of credit at once will open our doors for debt. Also, this will negatively impact your credit score. So, try to limit the number of cards you have.
Only apply for cards that you can manage responsibly.
If you have a large balance, multiple cards, and are struggling with high-interest rates, try to negotiate about interest rates with your credit card issuer. They may lower your interest rate, if you have a positive payment history.
However, cash advance is tempting, but it is a shortcut to debt. Because, the cash advance always comes with high interest rates and charges.
It seems like a quick fix, but the high charges will make you fall into a debt trap. Use cash advance facility if you are facing a real financial emergency, otherwise avoid cash advance at all costs.
It is very essential to learn how to use a credit card responsibly to manage your expenses. It can prevent you from debt and help you in earning rewards and other perks. By implementing above said strategies, you can master the art of using credit cards wisely.
To use a credit card wisely and avoid debt, don’t skip payments, make payments in full and reduce credit utilization ratio, etc.
Remember, credit cards are a financial tool, but like any other tool, they require responsible use.
In 2022, Cash App experienced a data breach which affected more than 8 million users. It is nearly impossible to completely remove risk when conducting electronic funds transfers regardless of the use of cutting-edge encryption and fraud detection technology that Cash App implements to keep users’ funds safe from scams and other fraudulent activity.
From data breaches to Cash App glitches, here are 6 steps to take to reduce the likelihood of being a victim of fraud or any kind of unauthorized access:
If you encounter unusual activity or suspect that your account may have been compromised due to a scam, report the issue to Cash App’s customer support immediately.
To report a glitch, visit the Cash App support center within the app or visit their official website. Provide a detailed description of the issue, including any error messages or unusual behaviors you experienced. Attach relevant screenshots or transactions to support your claim.
For your Cash App balance to be FDIC insured up to $250,000, you must have a Cash Card, or are a sponsor of any active sponsored account. Cash App also states that Bitcoin and investment balances are not insured by the FDIC.
Keep in mind that being FDIC insurance does not mean your account is protected from fraud on individual transactions. FDIC insurance covers your funds up to $250,000 in an event where Wells Fargo, the bank holding your Cash App balance, goes out of business.
There are other avenues for holding individual cases of fraudulent activity or scams.
Self Inc also offers a FDIC insured Credit Builder Account which allows you to build your savings and credit score at the same time by reporting your monthly deposits to the 3 big credit bureaus; Equifax, Experian, and TransUnion.
You may be wondering whether or not Cash App is safe considering the large number of scams out there as well as the possibility of a security breach. Rest assured that Cash App is relatively safe and there is a very low chance of you being a victim of a Cash App exploit if you take the 7 steps above.
Block Inc, formerly Square Inc., and owners of Cash App, meets the international standard for managing information security as indicated by their ISO 27001 certification. They also utilize industry-standard cryptographic protocols and message formats such as SSL/TLS and PGP to transfer data.
However, safeguarding your Cash App account data as if it was your very own bank account add an extra layer of protection.
Social media has changed the world in so many ways (some good, some bad). One thing it has certainly done (for me) is provided me with new, interesting ways to think about things and approach projects. Recently, I have seen people choose a word to represent the year to come. Many people have chosen words like “hustle” or “positivity.” My word for 2023 is “productivity.”
Of course, everyone wants to be productive, but I chose this word this year because last year was really busy. Even though I was running around and felt exhausted and busy constantly, I didn’t get as much done as I wanted to. Then I came across this inspirational post on Facebook and it really spoke to me. It said…
Be productive, not busy.
When I read that I was like, “that’s it! That’s what I need to focus on.” It is kind of like that old adage “Work smart, not hard.” I want to focus on improving my everyday processes to reach my goals (both short-term and long-term). Before starting projects, I’ll analyze what the best approach is to protect my time (and money).
A lot of my productivity goals for 2023 will require a bit of planning. To start, I’ve begun waking up just a bit earlier every day and jotting down a brief schedule of what I have planned. If you saw my last post, I talked about my main goals for the year and I plan to achieve each of these by being productive and planning out my day.
For instance, to achieve my goal of learning German, I will carve out 10 to 20 minutes every day for a quick lesson. To be able to read a book a week, I am scheduling about an hour a day devoted to that alone. My goal of practicing self-care every day will be achieved by waking up just a little earlier and taking care of my skin and practicing yoga.
Our main finance goal of paying off at least half of our debt will also be helped along by being productive instead of busy. Last year, we were a bit frantic with our financial plans. This year, we will track every penny and have a set plan for paying off our accounts.
All in all, I am hoping that setting a goal to be more productive (and less busy) this year will free me up to do more of the things I enjoy, like spending time with my husband, hiking, reading, doing makeup, and crafts. As I’ve stated in the past, a huge part of me being successful in life, and in my finances, is being able to achieve a balance. That’s why I’m choosing to be productive and NOT busy this year.
Readers, do you choose a word to describe your year? What is yours?
This article is about the perception of different price action trading. It also includes various trading strategies and the way of reading the charts. It can assist in reading commodities, futures, and chart movements and creating personal process and its action. Some strategies are depended on the technical analysis and individual opinions. It is such a type of trading that incorporates both fundamental and technical analysis. It is needed to make the right decision at the right time. [Read more…]
The purpose of this blog is to take you through the exact process that my husband and I have used to pay off more than $65,000 of debt in 11 months on a single middle class income.
To get you started on your journey, there are a number of things you need to do get your house in order.
1. Make a promise and get your spouse on board
2. Calculate your net worth
3. Review the checklist for a strong financial plan
4. Set your goals
5. Track your spending.
This posting is about a key part of the process in your debt payoff journey – developing a debt payoff plan using the debt snowball.
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This step is where you determine which debt you will pay off first, assuming you have more than one debt. We need to prioritize your debts so that you will focus on paying off one debt at a time.
If you make extra payments at one time toward all of your debts or even just a few, it will take much longer to realize significant results. This may lead to feelings of discouragement and frustration with the debt elimination process.
By focusing your energy on eliminating one debt at a time, you will see quicker results and earn a greater sense of accomplishment for all your hard work.
You will work on paying off the smallest balance first and make the minimum payments on each of the other debts.
Put as much money as you can each month toward the smallest debt.
Once that debt is paid off, you will cross it off (and celebrate!) and move on to the next debt on the list. Add the amount you have been paying on your first debt to the minimum payment for your second debt on your list and that becomes your new payment amount for your second debt.
This is called the debt snowball method. As you pay off the smaller debts, the amount of money you have available to pay off your bigger debts increases.
You will gain momentum as you rapidly cross the smaller items off your list. Paying off the smaller debts quickly gives you a series of “small wins.”
In his book “The Power of Habit
By the way, Duhigg’s book is great, I recommend you pick up a copy
Let’s say your debt snowball looks like this:
Paying off your total debt of $31,850 probably feels overwhelming. Perhaps it is almost as much as your annual salary from your job. You might be thinking that it would be YEARS before you would be able to pay it all off.
And that might be true. It might be years but probably not as many as you think if you are intentional and focused on your goal.
Let’s say you work really hard in finding room in your budget (we’ll discuss strategies for this in a future post), and you are able to pay $500 toward Credit Card 1 each month while making the minimum payments on each of your other debts.
After two-and-a-half months, you have paid off Credit Card 1!
The following month you add $500 to the minimum payment for Credit Card 2. We’ll say that amount is $95. So in month four, you pay $595 toward Credit Card 2.
At that rate, it will take you about four months to pay off Credit Card 2.
After eight months, you have paid off two credit cards totaling $3,550!
Achieving those quick, small wins makes paying off your auto loan feel much more attainable. Your enthusiasm for paying off your debt has increased, and now you are even more motivated to pay off your auto loan as quickly as possible so that you can move on to paying off your last debt!
In month nine, your excitement spurs you to find an additional $100 in your budget so instead of adding $595 to your auto payment, you are adding $695 to your minimum payment of $250.
How long do you think it will take you to pay off your auto loan when you are making payments of $945?
Possibly only five months because your balance has decreased while you have been working your debt snowball even though you have only been making the minimum payment up until this point.
After thirteen months you have paid off three debts totaling $9,050, and you are able to add $945 to your minimum payment for your student loan!
Even though your student loan balance may still be over $20,000, you realize that in thirteen months, you have been able to pay off almost a third of your original debt total. And as your income increases over time, you will be able to pay even more toward your student loan each month.
In this scenario, I anticipate that it might take you another year-and-a-half to pay off the student loan. As a result, it has taken you two-and-a-half years to pay off your total debt balance of $31,850!
Exciting, right?
This is the method my husband and I have used to whittle away more than $87,000 of debt in 20 months on a single income, but our numbers were much larger.
If we can do it, you can do it too!
If you’re making good progress on your debt payoff and your credit is good, you might consider refinancing. If you’re going to do this you might consider going with a company like SoFi. They’ve been making waves with their low priced loans.
Enzo has brought so much joy into our lives that his presence is truly priceless but the cost of a puppy is real. First you have to pay for the dog, and if you are seeking a pure-bred dog they can be expensive. Once you’ve gotten a puppy you’ll have to pay for shots, dog toys, dog food, dog bed, vet checkups, training classes, treats and even puppy bath supplies. The cost of a puppy can get pretty high, especially within the first year.
Saving for a puppy is a good idea, especially if you’ll only be able to afford the regular month-to-month expenses of having a dog. To prepare for your first year of having a dog you should probably save (or be able to afford) the following:
If you want to try and save for the costs of your puppy’s first year of life you’ll want to save anywhere from a couple hundred to a couple thousand dollars. The good (and bad) news is is that they won’t stay puppies forever. Eventually he cost of having a dog will be spread out across the year.
A dog costs you about $695 per year. The various vet checkups, insurance and food costs are what really impact the overall cost. Here is the average annual cost of a dog broken down:
Budgeting for a dog can be difficult. You should always have some money saved in case of a vet emergency but, other than that, you only have to spend about $70 per month on your dog. If you are able to make your vet appointments during the last or first month of the year you’ll be able to save for exams as well!
In addition to the financial cost of having a puppy there are also other costs. You will have to spend a lot of time with a puppy training them and caring for them. There is also a possibility of losing sleep (if they have a hard time adjusting). Any way you look at it, a puppy or dog is a huge responsibility and they deserve all the love you can give them. Be sure you are able to afford and care for your pup before bringing him home.
Have you gotten a puppy and realized it was more responsibility than you could take on? What did you do?
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I remember growing up and seeing my mom cut a credit card over the trash. That was it – no more credit cards. It seemed to be something I saw regularly in personal finance advice forums and tips sections. “Cut up your credit cards.” But do people still cut credit cards these days?
Cutting your cards is a fairly old-fashioned idea. As I said, I saw my mom do it about 20 years ago. In fact, they used to cut your card in the store if it was declined at one time (what a concept, eh?). Physically cutting up the credit cards is more symbolic than anything though.
When my mom chopped hers into little pieces over the kitchen trash can, she undoubtedly still held debt on that card. Cutting it up was to get rid of the temptation to use the line of credit. Cutting it up got rid of the ability to dig herself (and the family) further into debt.
Thinking back, I wonder what personal finance guru told mom to do this (or maybe it was my Paw-paw). Either way, it was one of the key things I remember about money in my home growing up. I may get around to eventually sharing some of the others, but this one came up more recently on Reddit.
So, do people still really cut their cards? Of course, you should cut it up before you throw away an expired or canceled card, but what about an open account?
When I was scrolling on Reddit, I found people are actually still doing this. It came as a surprise to me (just like it does when someone uses cash envelopes still), but I kind of liked it. This is grassroots personal finance to me. It is relatable and, more importantly, it works for some people.
Credit cards for me, personally, were never a huge thing to triumph. The majority of our debt is medical debt, student loans, and car notes. Credit cards never came into the picture much. I hold about a $500 balance on one card. So, whether or not I should cut credit cards never entered my mind, but it could be beneficial for some individuals.
If you do not trust yourself not to swipe the card, by all means, cut it. However, you should not cancel or close credit accounts if you can help it. That can damage your credit and keep you from doing things like buying a home or starting a business.
In short, if you think cutting your cards will make it easier for you to control your spending and wrangle your debt, do it. There is nothing to ever be lost from seeking debt freedom.
Readers, have you cut credit cards?