Every year two of my closest friends and I use to exchange Christmas gifts.  We normally have stipulations that we could not spend more than $25 on each person. 

We are some savvy shoppers so we normally would have three gifts for each person.

In the last few years of our gift exchange, I was focused on giving an item that was cute, like costume jewelry and at least one item that will help them advance in the next year, whether it was financially, professionally, emotionally or mentally. 

If you are buying gifts this season for any of the special women in your life here are a few gift ideas to help them advance financially.

Budget Planner 

Help your favorite girls make a plan to reach their financial goals by getting them a budget planner. 

Everyone is trying to get their money right so they can actually get closer to the goals they want to achieve, such as, traveling, investing, starting a business, or even buying real estate.  Here are 3 cute options:

Go Girl Budget Planner

Lamare Budget Book

Clever Fox Budget Planner

All-In-One Cash Envelope  Wallet 

This may be my favorite item on the list, but I love a nice wallet that can be carried on its own without a bag. 

The great thing about these wallets is that they are stylish and you can still easily carry your cash envelopes with you without destroying them or having to constantly look for them in your purse.

Here are a few options I love and at least 2 of them have can also fit your phone!!!

Sligt Budget Envelope Wallet

Rnairni Budget Envelope Wallet

Anconkton All-In-One Cash Envelope Wallet

Rnairni All-In-Cash Envelopes Wallet Organizer Clutch

Piggybank

If you have a favorite “Lil” girl in your life, I am always a fan of teaching them how to save at an early age. 

Hopefully, a habit will be built where she becomes a life-long saver. Here are a few banks to help get them on the path to becoming super savers.

Teacher's Choice Digital Coin Bank

Save Spend Share Money Jar

Younion Piggy Digital Coin Bank

Planner

Do your friends or family have goals that they want to achieve but they are not financial?  Pick up a goal planner for them.

With goal planner, they will be able to write out their SMART goals outline the actionable steps they need to take to achieve them.  

Gettin Ish Done Planner

The 100-Day Goal Journal

The Next 12 Months 

Journal

A part of self-care is writing down how we feel and giving thanks for everything we have been blessed with.

I love giving journals because even if the receiver doesn’t use them for self-care there is usually a master plan written down in a notebook.  

Bullet Journal

Gratitude Journal

Becoming: A Guided Journal for Discovering Your Voice

In the comments below, let me know who are your favorite girls on your Christmas list?

Are you a saver or a spender?

Have you ever thought about which money personality you have?

I know some people have mentioned it is genetic, which may be possible but I always felt it was interesting that two people can grow up in the same household with the same parents and one be a spender and the other a saver. 

But when you think about it opposites attract so I’m sure one parent was a spender and the other was a saver.

It could also be their personal experiences, where one person spends because they didn’t have it and the other saves because they didn’t have it. 

If you are not sure if you are a saver or a spender, here are some signs to help you figure out which one you are.

You may be a saver if:

You Don’t Shop Recreationationally

You only buy what you need and will sometimes go without in order to not have to dip into your accounts. 

You don’t enjoy shopping and only do it as needed.

You purchase quality items for a low price so you are not constantly replacing items.

You Started Saving Early

You have always been savers as if you were born that way. 

It could have also been instilled in you as a kid by a saver parent but you always had money in your piggy bank.

 If you received money as a birthday or a Christmas gift you always saved some of it.

You operate as if you don’t have any money. 

You Saved When They Didn’t Have A High Income

Some people think that they can’t save money until they make more money but savers are able to save money regardless of their income. 

For you, it gives you gratification to know that you have money in the bank.

You developed the habit early and that made it easier for you to save when your income increased.

Related: How To Start Saving With A Low Income

You Live Below Their Means

You are not going to have all of your income walking out the door to pay bills. 

You live well below your means in order to save.

A saver I spoke with early this year was saving 40% of her income each month, but she didn’t aim for that percentage, she kept her expenses low and saved the rest.

You Avoid Using Credit Cards

Unless you have too.

This is in conjunction with keeping your expenses low. 

You only use credit cards when it is a large expense and you don’t want to take the money out of your savings because savings is security. 

For example, if you needed to do some work to your home, you may use a 0% interest (if paid in a year) credit card offer and actually pay the balance in the year to avoid the interest.

  You understand the concept of compound interest and you keep it top of mind.

It makes you uncomfortable when you have to use credit so they only do it when absolutely necessary.

You Hoard Money and Are Not Generous

This one is not for all savers, but some savers do hoard money and will only give if you ask. 

This is not because you are mean, it is just due to your past experiences so you are scared that you may need the money after you give it to someone else.  

via GIPHY

You may be a spender if:

Makes A Decent Amount Of Money But Doesn’t Know Where It’s Going

Spenders can have a good salary but they don’t know where it goes after payday. 

You may be paying your bills on time but it is hard for you to track the money left over after bills. 

You also have a habit of running out of money before payday.

You Don’t Have A Budget

This one is related to the last one.

Budgets have a negative wrap so the name along kills a spender’s shopping high.

You don’t like restrictions so you think a budget is not going to let you shop but you can build shopping into their budget.

You Shop On A Regular Basis

You shop on a regular basis and it doesn’t have to be for clothes or shoes. 

That’s a big misconception, it could be for anything.

There are spenders who just need to buy something so they always walk in the house with a bag, which could have candy to household items like, pots or lightbulbs.

Related: 9 Signs You’re Overspending

You like to live in the moment

You get a high when you are shopping.

You’re not concerned about whether or not you need the item they are purchasing. 

You are looking for instant gratification.

You Use Credit Cards On A Regular Basis

As a spender, you will use a credit card to satisfy your need to purchase an item. 

Even if you don’t use credit cards and you’re using cash you are not saving.

You are using all of your disposable income shopping for items you don’t need and just want. 

You’re A Gift-Giver

When you are shopping you love to pick up gifts for others. 

As a spender, you tend to give to those in need and those who are not in need.

Due to your shopping habits, you may see something your friend said they needed/wanted and you will pick it up because you are right there.

Is One Better Than The Other?

A saver is not better than a spender and a spender is not better than a saver.  

You both have to work towards being financially stable and enjoying life.

Finding a balance will provide a sense of gratification that you won’t receive from either extreme. 

It also makes it easier to compromise in relationships.

Which one are you? A saver or a spender?

I have an older car that I have owned for about 9 years and I have committed to driving this car until the wheels fall off. I'm blessed that it still runs smoothly but last year I thought I was going to have to get another car.

Due to a reoccurring issue that no one including dealership could figure out what was going on. 

So my husband and I had this grand idea that we were going to take the car another dealership but the day before we were going to drop it off, the car decided that it was done playing with us broke down in the middle of the street.

Thankfully we were able to move the car somewhere safe and have it towed to the dealership that was able to repair it.

Before I actually knew the cost to get it repaired I was preparing myself for the possibility that I may have to get another car if the repair cost were more than the car is worth.

I started looking at cars and how much they cost and after I  picked my jaw up off the floor, I realize that all of these new technological upgrades were causing the prices of cars to skyrocket.

Even though I didn't have to buy a new car here are five things you should consider when shopping for a new (new to you) car.

How much can you afford? 

You thought I was going to ask about what type of car you want first, didn't you?

Nope.

The first thing you actually should look at when you are in the market to buy a new car is how many cars can you afford?

 I know it would be great if you were able to pay for a car in cash but I am aware that everyone is not able to do that.

So if you have to take on car payments you want to be in the position where you are able to pay off your car quickly and also not be in the position where your new car expenses are going to have you strapped for cash.

The old school 20/4/10 rule says that you should put 20% down, for a 4-year loan and it should not be more than 10% of percent of your gross income each year to the loan. 

That includes car insurance.

This rule may be hard to follow these days due to the rise in car prices.

You should look at keeping the cost of your car no more than 10% of your monthly take-home pay.

According to the Bureau of Labor Statistics, the median wage for workers in the United States in the first quarter of 2019 was $47,060. 

So assuming that your monthly take-home pay would be around $2,949, your car payment should be no more than $294.90 and your total car expenses, including gas, insurance, and maintenance should be no more than 15% of your total take-home pay or $442.35.

Related: How To Create A Budget

How much will your insurance cost?

There are many factors that go into the cost of your insurance, including the year, make and model of the car you buy.

Any time you are looking to purchase a new car, with payments or in cash, you should contact your insurance company with the VIN number of the car, if possible, to find out how much your insurance policy cost will change. 

Each car has a symbol that insurers may use to determine the premium, so a 2019 Honda Accord may not have the same premium as a 2019 Audi A4.

How much does it cost to maintain the car?

Maintenance. 

I think that people forget about this one the most. 

They are so excited about getting a new car that they forget to research the cost of maintenance and if it had any problems, for example, transmission issues or a failed starter.  

Kelly Blue Book, Consumer Reports, Edmunds and Repair Pal are a great place to start if you are trying to get an estimate of the maintenance costs and common repair problems.

What is Your Credit Score?

If you are financing your car purchase, you should know your score before you go make your purchase.

It’s better if you start tracking your score a few months before, things happen and even if you have to make a quick decision you can easily check your credit score. 

Knowing your score will help you save money on financing and you don’t have to settle for the dealership’s financing.  

Who would you use for financing and for hows long?

Speaking of financing, you always have options besides the dealer. 

Even if you don’t have good credit. If you bank with a credit union I am always a fan of going there first. 

You can also get a loan from your bank, online lenders and the dealership. If you have good credit the dealer may offer you a lower rate to finance through them.

When it comes to your payment terms, I am a fan of paying off your car as soon as possible.

I have seen terms as long as 84 months. Please avoid this, the longer your payment terms the more you pay in interest.

The longer the loan, the higher the interest rate.

Which means there is a higher chance of owing more on your car than it is actually worth.

If you are in the market to purchase a car, I hope these 5 tips were helpful. What other things do you take into consideration when purchasing a car?

In last week’s post, I talked about the 9 Signs That You’re Overspending. If you haven’t read it yet, check it out here. 

I didn’t want to give you the signs without giving you tips on how to stop overspending.

Taking the steps to get in control of your spending will help you achieve the money goals you didn’t think were possible. 

Here are 11 ways to stop overspending.

TRACK YOUR SPENDING

One way to get an understanding of how and where you are spending your money is to track your spending.  

When you are tracking your spending you can’t fool yourself about much you are spending.

You could use a small notebook to track your spending, but I am a fan of using technology.  

One way you can track your spending is by using the apps on your phone.  

You can set up tracking tables in the Notes apps or the Evernote app.  

You can also use Google Sheets, the columns you should add are the date, place and amount but it would be even better if you tracked the reason for the purchase, how you feel and if it was a want or a need.

RELATED: How To Track Your Expenses

FIGURE OUT YOUR SPENDING TRIGGERS

If you are tracking your spending and your mood you will be able to see what triggers you to spend.

For example:

Do you feel the need to spend money because your friend is shopping too?

Instead of shopping, you can be the stylist and help your friend pick out a complete outfit.

You can also suggest other activities that don’t cost as much money, so you are still having fun with your friends but still saving money.

Do you shop when you’re upset or stressed out?

What are some other ways you could do to relieve your stress that doesn’t cause you to spend money or gain weight? 

You can go for a walk, go to the gym, listen to music, vent to one of your close friends or journal about it.

RELATED: 9 Signs Your Overspending

SWITCH TO AN ALL-CASH DIET

Have you heard of the envelope method?

With the envelope method, you are assigning dollar amounts to each budget category and putting cash in the envelopes to pay for your expenses. 

By switching to a cash diet you are not going to be as willing to spend money frivolously because you will be able to see how much money you have left after each purchase. 

Now in order for this to work you will need to take your debit and credit cards out of your wallet and place them somewhere safe (safe deposit box, maybe) where you will not pull them back out randomly.

 GIVE YOURSELF FUN MONEY 

Fun money is money that you can spend with no questions asked.

I love the whole concept of fun money because I think that it keeps you balanced.

You're able to still spend without feeling restricted but you're also able to allocate the money you need towards your bills and your financial goals.

The best way is by choosing the amount of fun money that you would need on a weekly basis and to withdraw it as cash or put it in a checking account just for fun money.

RELATED: Why you need FUN Money

WIPE THE HISTORY AND DELETE THE HISTORY ON YOUR COMPUTER

I know you didn't expect this one but your computer can hold your credit card information if you have saved it to your favorite shopping websites.

In order to help you avoid temptation, the best thing to do is to wipe your history on your computer and delete those cookies. 

You should also remove your credit card information from Amazon and Paypal.

Technology today makes it so easy to be able to make purchases without your debit or credit card so it’s best to limit all of those options.

CREATE A BUDGET

Creating a budget gives you a plan for every dollar that you have coming in from all of your income sources.

 Most people think that budgets are strict but you can actually build all of your fun into your budget, which includes going out with your friends, a little shopping, trips and whatever else you enjoy. 

You just have to create a budget that fits your lifestyle and not the lifestyle you want to have.

RELATED: How To Create A Budget

BREAK DOWN ALL OF YOUR PURCHASES BY HOW MANY HOURS YOU NEED TO WORK. 

By breaking down your purchases by how many hours you would need to work to cover that purchase it makes you aware of how much money you are actually spending and whether or not you want to spend money on that particular item. 

For example, lets say that you see a shirt that’s cute but you don’t need it.  

The shirt is $50 and you make $25 an hour. 

You would have to work two hours plus the taxes to pay for the shirt.

Is the shirt worth 2 hours of work?

If you really broke down how long you would have to work to pay for an item, you will probably only purchase items that you really want.

 SET SHORT-TERM FINANCIAL GOALS 

Setting short-term financial goals will motivate you to change your spending habit to reach your goals.

Make sure that your short-term goal is considered a SMART goal so that it is specific measurable attainable realistic and time driven.  

An example of a SMART goal is, I will save $300 within the next 3 months, by saving $100 each month.

Make sure you get an accountability partner to help you stay on track.

RELATED: 4 Steps To Reach Your Money Goals This Year

IMPLEMENT THE 24-HOUR RULE

By implementing the 24-hour rule when you see an item you would like to buy leave it in the store and give yourself 24 hours to decide if you really want to purchase the item.

When you leave something in the store and you're not thinking about it anymore after you leave the store then you really didn't want it in the first place. 

But if it is still on your mind go back the next day and if you get the item then it was meant for you to have it.

What I think you will realize is a lot of things that you thought you needed or wanted, you didn’t want once you gave yourself 24 hours to think about the purchase.

So make sure that you implement this rule, especially for larger purchases.

 UNSUBSCRIBE FROM STORE EMAILS

I feel like you have heard of this one before and didn’t do it.

 Sorry, it works. 

This is another great way to avoid temptation. 

When you are not getting those daily and weekly emails from your favorite stores you have no idea when the sale is happening.

So you won't be shopping when you really don't have a reason to shop.

And yes,  I realize that you will go back to that website and possibly purchase something but that's okay when they send you that first email after your purchase receipt just go ahead and unsubscribe again.

GIVE YOURSELF REWARDS  

With all of the items that I mentioned above to help stop overspending, sometimes you can feel a little restricted but if you set up rewards for your actions at the beginning then you have something to work towards and some motivation. 

You can give yourself rewards for achieving certain things like using all cash and not your cards,  or achieving your short-term savings goals, tracking your spending or even leaving that nice pair of shoes that you really didn't need in the store.

Your rewards do not have to be the purchase, but it can be a particular drink at Starbucks or maybe it is a massage. 

Your reward does not have to cost a lot but it should make you feel good.

Do you ever feel like you are spending too much money?  It’s not always easy to determine if you are overspending but if you are constantly on the go, don’t review your finances on a regular, feel guilty when you spend money or you’re praying that your card is going to be approved while in the store, there is possibility that you may be overspending.

Even if you don’t have any of the problems above you still want to keep your spending in check, especially if you plan to build wealth.  Overspending and building wealth don’t go together.

Here are 9 signs that you are spending too much

Your expenses exceed your income.

I'm not talking about your actual bills, I am actually talking about your lifestyle expenses causing you to exceed your income. These are items that you don't need but you enjoy having.  

Which can also include things you forget you're paying for, like subscriptions and memberships.  An example of this could be that you have an expensive hobby or entertainment. 

Spacing these things out on your calendar can help you still enjoy what you love while also saving money.

Related: How To Create A Budget

You're consistently using your credit card and carrying a balance.

So I understand that you may not have your emergency fund fully-funded so you may need to use your credit card to cover an unexpected expense. 

However, when you use your credit card for purchasing clothing, taking trips or eating out and you're not paying it off at the end of the month, it's a true sign that you cannot afford your lifestyle.

Now you are carrying a balance and paying interest so the items you purchased for the fun times are now costing more than what you originally paid for them.

Related: How To Pay Off Debt
How To Pay Off Debt With A Low Income

Your rent or mortgage is more than 30% of your income.

This one is not for the people who live in high cost-of-living cities, this is for those who live in more affordable cities but their rent or mortgage is over 30% of their income. 

Now depending on your financial situation, even 30% may be too much when you look at all of the expenses that you have to pay for.   

As a general rule of thumb, I typically like for all expenses so that's including everything that you have to pay for in order to live be under 50% of your income. 

I know that it is not always possible, especially now due to the amount of student loan debt some people have but aim to get as close as possible to 50% of your income. 

I aiming for 50% is because if you are working a full-time job and you are laid off unemployment typically will pay only 50% of your income (there are some stipulations to this).

So if you are looking for a new job at least you are receiving an unemployment check and hopefully, you will not have to dip into your emergency fund or if you do it will not spend all of your savings.

You buy things to keep up with your friends on social media.

So I've seen it, your friends on social media have the newest shoes, the high-end outfits, and they are traveling all over the world. 

What you have to understand is that what people put on social media is just a highlight reel of the good things, they are not posting the bad things so you really don't know what their financial situation looks like. 

With social media you have to focus on your own goals, what your friends are doing is none of your business.

You still can look good on social when you post pictures without spending a lot of money, it’s possible I have seen it multiple times so do not let what you see on social media influence your purchases and if you feel that it is maybe it's time for a social media fast.

You're not saving or investing for retirement. 

Savings account? 401K? IRA?

If you are saving and your savings account is looking like a revolving door where you save money but then you are withdrawing the money you just saved  to either cover a bill because you forgot to pay it or because you are trying to cover a recent purchase, not an emergency, shopping then you might be overspending. 

Savings accounts give you options and opportunities so you may be out of luck when something when you have an opportunity to take advantage of a situation but you have to pass it up because you don't have the money. 

Going back to the laid-off example I mention above, even though it doesn't seem great you may the opportunity to take your side hustle full-time or launch the business you have been dreaming about.

It's extremely important for you to save for retirement. 

If you don’t think so, look at it this way, you don't want to go back to work on Monday mornings so why you set yourself up to work the rest of your life?

Even if you own a business you love you're not going to want to work in the business forever. 

And let us not mention the people who are forced to retire due to their health, so don't live in a fake reality of you have a long time to start saving.

  You don’t.

If you're not already contributing to your company’s 401k plan, you should start and see if your employer offers a match.

If your employer does not offer a 401k then look into investing in a Traditional or a Roth IRA.

Related: Retirement Plan Series: IRAs

Retirement Plan Series: Employer-Sponsored Retirement Plans

You run out of money before the end of the month.

Do you normally more month than money? 

Are you trying to hold on to that last $20 until payday but you end up pulling out the credit card because you can't do it? 

Well, it sounds like it's a great time to figure out what you're actually spending your money on.

Are you eating out for lunch every day?  Going to brunch every weekend with your girls? Hitting the hottest parties, sports bars, and lounges? 

Even if you don't have a busy social life you may be spending the money on other things, so take a look at you're spending and make adjustments.

It doesn't mean that you can't actually do some of these things you just, might do it less often or pick places that are not as expensive.

Related: How I Do A Monthly Financial Checkup

You're throwing away food on a regular basis

If you're throwing away food on a regular basis, you're eating somewhere but it's definitely not at home. 

Are you eating out a lot even though you have food at home? 

Are you buying more food than you actually need?

Are you lying to yourself saying that you're going to make lunch so you buy groceries but you're still eating out? 

I'm not going to say you have food at home.

This may be an unpopular opinion but if you are eating out most of the time and buying groceries too, you are probably spending close to the same amount for groceries and eating out.  

You might as well just allocate your money to eating out most of the time and buy fewer groceries.

 Then you will not be throwing away as much food and the money saved on groceries could go towards one of your financial goals.

You don't remember when or where you brought items.

This typically happens when you're making a lot of impulse purchases.

So you know the dollar spot at Target, the travel size section at Sephora near the checkout or even the sale rack at your favorite store.

You're buying items that you don't really need and then you forget that you actually purchase them, so when you find them in your house your wondering where did come from and why do you have so many.

A lot of the clothes in your closet still have price tags on them or have not been worn.

When you look in your closet do a lot of the clothes you have still have price tags on them or they've only been worn once? 

And I’m not talking about your special occasion pieces.

You're continually adding new pieces to your collection of unworn clothing. 

You also have shoes in your closet that you either forgot you owned or you have not worn them yet because you're still trying to figure out how you're going to incorporate them into your wardrobe.

You only purchased them because they were cute and on sale.

(Editor’s Note:  I know this is hard but sometimes you have to leave the cute shoe on the sale rack).

You may also have duplicate items in your closet. 

It may be time to sell some stuff on Poshmark, Mercari, Depop or eBay and use this money the fund one of your financial goals. 

If you have 2 or more of these signs, you may be an overspender and it’s time to start taking steps to get it in check, by tracking your spending, budgeting, and prioritizing saving & paying bills before anything else.

You don’t want to be in the position where your overspending keeps you from taking advantage of a great opportunity.

Related: The 7-Day Financial Reset

I saw a post on Instagram that said it is the last quarter in this decade.  That definitely made me evaluate where I am compared to where I want to be.

If one of your goals this year was to save more money and you feel like you are behind on your goal or you just don’t want to start the new decade in the same position.

Charles Schwab’s Modern Wealth Survey showed that Americans are still struggling to save with 59% living paycheck to paycheck.

Have you ever thought about doing a savings challenge? 

A savings challenge is a great way to build up the money you need while creating a habit of saving so that it becomes a part of your everyday habits. 

Habits are formed by making small changes so a savings challenge is exactly what you need if you are trying to build a habit of saving. 

Related: 4 Savings Challenges To Kick Off The New Year

What could you do with the money from a savings challenge? 

What you do with the money that you save from the savings challenge depends on YOUR goals. 

You may use it to fund your opportunity fund, pay off debt, travel, cash flow Christmas, a down payment for a car, business start-up costs, invest or even purchase that one item you have been wanting forever.

Related: Gift Sinking Funds: Have Money For Gifts Year Round

Where to put the funds you are saving? 

The money you save for your savings challenge should be saved in an online savings account. 

Why?

Because you want your savings account to be somewhere that gets a higher interest rate than brick and mortar banks. 

Also, you also don’t want it easily accessible if you are tempted to spend on something random. Online banks typically take about 2-3 business days to transfer funds. 

Some of the online savings accounts that I recommend are Marcus and CapitalOne 360. You can also save in your Digit and Qapital accounts.

Related: Automate Your Savings With Qapital

Save Automatically With Digit

12-Week Savings Challenge

I have three 12-week Savings Challenges that will help you save either $300, $500 or $1000 in 12-weeks. 

I like to operate in 12-weeks sprints because it allows you to be super focused for a short period of time, take a break when you need to and pick back up whenever you are ready. 

So you don’t have to wait until the beginning of the year, month or week, to start your saving challenge. You can start working toward your saving goals today.

You typically go to the doctor's office at least once a year for a physical and the dentist every six months for a dental check-up but how often do you check on your money.  It’s just as important as your health.

If you think about it, money affects every area of your life, for example,  transportation whether you ride public transportation, take an uber or drive your own car, you pay in some way for all of these options, (unless you’re walking).

Even the most financially savvy person needs to keep  track of what is going on financially to make sure they are on the right track to achieve their goals 

Here some other reasons why you need a monthly financial check-up:

Know where your money is going and plug any leaks in your budget

When you complete a financial check-up you get an idea of how you're spending your money, how much money it costs you to live every month and where you're spending that money.  It’s important to know the answers to these questions because if you don’t know where your money is going, you’re either going to miss out on something you want or something you need.

By completing a monthly financial check-up you'll be able to see if you’re spending too much shopping for things you don’t need or if you are spending the same amount on groceries each month as eating out.  

Are you spending more than you make?

You also know whether or not you're spending more than you make. For example, if you are bringing in $3,500 a month and spending $4,500 a month that means that you are using your credit cards, payday loans and you're taking it out your savings.  

Spending more than you make is a sign that you need to either increase your income or cut your expenses

Sometimes when people are making a budget, they will make their budget according to how they actually want to spend and not according to how they actually spend money.

If you already have a budget, a financial check-up will show you what you actually spent in those categories so you will know if you're really just overspending or is your budget realistic. 

Track your debt, savings, and investments.

While doing your financial check-up you're also going to know where you stand when it comes to your debt, savings, and investments.  

You will know what your balances are and if you need to pay off more debt, increase your savings or invest more.

It will also give you an opportunity to determine if you could contribute more to reach your goals, how much more you can contribute and an action plan to make it happen.

Track your goals

When you check on your money monthly they will tell you how close you are to reaching your financial goals.  

You will know whether or not you are staying on budget, if you are putting a dent in your debt, if your saving and investing accounts are increasing.

 So once you look at your financial goals you are able to see if you have made progress towards this goal and how far you are from actually achieving your goal. 

It also gives you a chance to decide if you're going to increase your goal, pause your goal or create new goals to increase your level of wealth.

For example when we moved and decided to put the kid in private school.  I knew it was going to be expensive and I was nervous about the cost but once I found out the monthly cost, I was not as worried because I knew we could afford it.   If I was not doing a financial check-up I would not have known if we could actually afford private school.

To hold yourself accountable

If you start performing a financial check-up on a monthly basis you will start holding yourself accountable for your actions. You can even do this with a friend to hold each other accountable for their finances because I always say, I don’t want to travel by myself.  I need my friends with me.  

It'll also help you stay financially organized because on a monthly basis you're looking at your numbers so you know where you stand going into the next month which will make it easier to make quick decisions when something comes up 

It reduces stress when you have a handle on your finances you feel good.  Even if you’re not where you want to be, you feel better because you have implemented a plan to get there.

If you are looking to get a better handle on your finances, to know where your money is going, to see if you are progressing towards your financial goals and have peace of mind when it comes to your money then download my free financial check-up checklist and action plan that will guide you through the steps to complete your financial checkup and create an action plan for your finances for the next month.

And if you don’t think you can do it yourself, click the button below to set up an appointment with me and we will go through the financial check-up together.

I just came back from my third Fincon and this year, my favorite city in the US, Washing DC at the Washington Hilton.  I really enjoyed myself this year but I was exhausted the entire time because I made the mistake of going on vacation before Fincon.  We went on what I call a Southern Tour where we visited friends and family and dropped our kid off at college so we hit eight cities and three weeks and I was home for less than a week and then went to Fincon where you don’t get much sleep. Because money nerds like to network, handle business and have fun all at the same time.

You Went To Fincon Again?

So why do I go to Fincon every year?   It’s a great place to network with other like-minded people. I also get an opportunity to learn skills that will also allow me to improve my business and when you are around people who are doing great things it motivates you to step your game up or take a different direction in business.  One of the best things that happen at Fincon is that I get to see my friends in person but I always encounter someone who has already accomplished one of my financial/life goals and they always give me insight on how to accomplish my goal and mistakes they made. That tidbit of information is priceless. 

The Recap

A lot of things happen at Fincon but I like to focus on the things I love.  Once I landed in DC I went straight to the Elevate Community Meet-Up for people of color.  Elevate is the brainchild of Sandy Smith,  and it’s great to have an opportunity to meet people in this space who look like me.  There are so many people in the community teaching you about different aspects of money. I'm going to refrain from naming too many people because I don’t want to miss anyone but I will say that Dominique Brown spoke at this meetup and the one thing that I took for him is that he spends four hours a day doing things to help move his business to the next level.  I knew I needed to spend more time moving my business forward, but he gave me the keys I needed to make it happen.

This year I purchased the pro pass so I was able to meet with brands at the pro networking event where I was able to get in front of brands for 10 minutes each and actually have a discussion about what they have to offer for my audience and what Financialdemics has to offer.  There was also a networking lunch where you were invited to eat with a brand. The lunch was good and I may be biased because it was tacos (I love tacos). During the lunch, I was able to talk with the brands to get more information than I would get in the 10-minute sessions.  We also had a really great conversation about cars (buying them, costs and maintenance). If I haven’t mentioned this before, I am a car girl. I like cars, they don't go along with my financial goals because they are a depreciating asset, but I do like cars so I do know a lot about cars.  I fell off a little bit for a minute, but I’m back.

Later that evening, we went to the Black Girl Fin Magic Meet-up.  Black Girl Fin Magic was founded by Brandy Baxter and they promote, support, and grow all women of color with tools to become innovators and successful business owners in the fields of personal finance, business finance, and financial services.  At this meet up there are so many beautiful black women in the space of personal finance doing great things from helping you build your money foundation, to paying off debt, credit, investments and real estate.

I also had a great opportunity to participate in a service project that was the brainchild of Olivia Bradley West and her beautiful family. She is really raising change agents. The service project was sponsored by the National Endowment for Financial Education (NEFE) and the volunteers were able to help make a birthday in a bag for 600 foster kids in the DMV area. Now as a part of this project I actually worked the station where the volunteers picked the cake and frosting for the birthday bags.  I love projects where I get to help others so this was right up my ally. 

I hung out in Fincon Central which is an expo hall where you get to also talk to brands but you are competing with 2500 other too. I actually got to model for a “magazine cover” with AARP and the photographer caught a great candid of me. Ally bank put my face on a macaron and I think me plus Ally equals my dream car.  I also had a chance to I talked with Cozy. I just love their services, I am a landlord and so I use their services to accept rental payments, manage the expenses, etc. It was just a pleasure to actually talk with the founder, he created a really great product so if you are a landlord who self-manages you may want to into Cozy.

I did sneak away from the conference for a little bit and went to the Smithsonian National Museum of African-American History. I have been there before but it’s hard to see the whole museum in one trip and so I went to finish the rest of the museum while my roommates checked out the first part. If you have not been to the African-American History Museum before, you should make a plan to go. 

When I came back from the museum I actually did attend a session. I attended about four or five sessions this year.  I had a goal this year to network with other people and meet with brands this so sessions were not my priority, but I do enjoy them.  I always learn things to help expand my business to the next level so if you every attend Fincon pick the sessions that are going to work for you and help get you closer to your goals.  

Solvency sponsor a happy hour on the rooftop of the W hotel.  It was beautiful up there are you had a view of the White House.  Solvency is a company that helps you resolve tax debt. They have resources on your website if you want to resolve it on your own but then they also have contacts for you if you need to actually reach out to someone like a tax lawyer. 

I also attended the Plutus Awards which celebrates excellence in financial media and the highlight of the night was seeing Sandy Smith of YesIAmCheap go from being nominated 19 times and never winning to winning 3 awards in one night.

I had a good time at the Fincon closing party this year.   It was in the hotel and they bought in DJ Trini, he had me on that dance floor to the point where your girl’s knee was hurting the next day. There were ice cream, popcorn, and desserts for everyone to enjoy, 

If you are in the financial media space and you have never been to Fincon or you have been on the fence about going, you should definitely put it on your list of things to do.   Especially next year because it’s in Long Beach, CA

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It’s a really great experience where you will actually make friends, most likely lose your voice and get the opportunity to slide in on a great game of Phase 10 in the lobby.

Keep checking the Fincon website to see when the tickets go on sale for 2020 and they also offer scholarships.  

Most of the time conversations around net worth are preceded by a certain celebrity’s name.  I, myself, just engaged in a debate discussion about Shawn Carter’s (Jay-Z) net worth and whether or not he is truly a billionaire.

What we really should have discussed was our own net worths, why it is important and how to increase them.  

What Is Net Worth?

Net Worth is your assets (everything you own) minus your liabilities (everything you owe). 

Your net worth can be positive, you have more assets than liabilities or it can be negative, more liabilities than assets.  

Your net worth is a figure of your financial health and it is a true measure of wealth because it tells you what is left after you pay off everything you owe.

Why Does It Matter?

Your net worth gives you a snapshot of where you are financially at any point in time, shows your progress toward your financial goals, keeps a tally of how much debt you have and show you how close you are to achieving financial independence.

How To Calculate Your Net Worth?

To calculate your net worth you first need to add up the value of all of your assets.  Your assets will include:

• The balance in your checking, savings, investments (such as brokerage accounts) and retirement accounts.

• Value of bonds or treasury bills

• Value of your real estate investments, including the value of your home if you own ( if you’re not sure, check Zillow for the approximate market value

• Value of any cars, and/or recreational vehicles you own

• Value of any precious jewels (jewelry)

• The value of your business, if you own one.

• Any personal items of value, like an art collection.

Now add up all of the assets you have listed.  This number is your total assets.

Next, you need to list all of your liabilities, what you owe, and their balances. Which includes:

• Your credit card and personal loan balances. 

• The amount you owe on your home and any other real estate. 

• The amount you owe on your cars and/or recreational vehicles.

• Your student loans balances. 

• Your medical debt and any money you owe to other people.

Total up all of the liabilities you have.  This number is your total liabilities.

Now subtract your total liabilities from your total assets to get your NET WORTH.

At this point, you will either have a positive or negative net worth.

Examples

Here’s an example calculation of net worth for Kim & Tosha

Kim

Total Assets:$ 25,000 

Total Liabilities $ 35,000

$25,000 - $35,000 = ($10.000) - Negative Net Worth

Tosha

Total Assets: $185,000

Total Liabilities: $92,000

$185,000 - $92,000 = $93,000 - Positive Net Worth

Don’t Be Concerned With A Negative Net Worth

If you have a negative net worth you do not be concerned, depending on what stage in life you are in you may have a negative net worth, for example, a recent graduate may not have any assets or a low number of assets and they have student loans. 

That person may have a negative net worth, whereas, a person who is a few years older and owns a home or has started saving for retirement and investing may have a positive net worth.

Ways To Increase Your Net Worth

There are several ways you can increase your net worth. 

The easiest ways are to:

Reduce Debt - By reducing what you owe your net worth will increase but you will also have more disposable income to put towards your financial goals.  You can start reducing your debt by tracking your spending and creating a budget that focuses on paying off your debt.

Spend Less Than You Make - the easiest way to do this is to automatically save money by paying yourself first.  Building up your savings and your emergency fund will increase your total assets and it will give you the options when an unexpected situation or an opportunity comes up.

Invest -  This includes your retirement.  By investing more you have the opportunity to increase your net worth but also save for retirement years.  Investing may allow you to increase your assets faster than a standard savings account.

How often should you calculate your net worth?

I prefer to calculate my net worth on a monthly basis when I complete my financial checkup. 

Completing it monthly allows me to see where I stand when it comes to achieving my debt pay off goals.  It also helps me see if I am on track to reach my retirement and investing goals.

So the next time you and your friends start discussing a celeb’s net worth, ask them when was the last time they calculated theirs and let them know what your net worth is.  It’s time we start helping each other get to the next level.

After I told you how I complete my monthly Financial Checkup, I received a question about how I complete my budget on a monthly basis, so I thought it would be a great topic to bring here. 

My process may seem like it takes a while, and it did when I first started, but now that I have a process it only takes me about 15-20 minutes.

This is what I do at the end of the month after I complete my Finacial Checkup.

I like to list out all of my expenses for the upcoming month first.  To do this, I like to use the Financial Toolkit Expense Tracker.

I list all of my normal monthly expenses first and then I list any additional expenses I need to pay for in that month.  

That includes adjustments to old goals or adding new goals, birthdays, travel, events, etc. Note: Birthdays and travel typically come from my sinking funds but I always add them to my budget because it helps me track my spending. 

The Expense Tracker automatically totals my expenses so I already have an idea of how much I plan to spend for the month.

Once I have completed the Expense Tracker I update my Paycheck Budget template. 

Each Month of the Paycheck Budget Template has 5 payday columns along with a monthly total.  So it doesn’t matter if you get paid weekly, bi-weekly, twice a month or monthly, it can work for everyone.

I get paid bi-weekly, so I only need the first 2 paycheck columns, sometimes the third.

Since I am salaried my income is normally the same so I add the income I expect to receive and then for my expenses, I split my expenses for the month in half, the first half is allocated to the first paycheck and the second half is allocated to the second paycheck. 

I have been doing the half payment method for a long time, it’s emotional. I didn’t like a large amount of money leaving my account so it was a way to trick my brain, but it actually made my budgeting and bill paying process easier so I have stuck with it for all of these years.

Once I update the Paycheck Budget Template, the monthly column will show how much I expect to receive in income for the month and the expense section should have the same total as the Expense Tracker.

I make an effort to follow my budget for the next two weeks and a couple of days before my next payday I take 15 mins to update my actual spending in the Paycheck Budget Template which gives me an idea if I am on track for the month. 

If I am on track then I continue doing what I’ve been doing. If I am not on track, overspent in one category or another, then I can adjust accordingly for the rest of the month, to avoid going over budget so I can stay on track to reach my financial goals.

How do you set up your budget each month?  Let me know in the comments below.

Are you looking for additional ways to pay off debt?  I know an app that can help.

A couple of years ago while attending FINCON, I found out about this app that helps you make extra payments towards your debt through the snowflaking method.    Well I have been using this app for a while now to make additional payments to my student loan and I really like this app so of course, I had to come and tell you.

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What is Qoins?

Qoins is an app that automates additional debt payments to help you pay off your debt faster and help you save money in interest.

How it works?

It works similar to the automated savings apps, so think of DIgit or Qapital but for debt.

Qoins will either set aside spare change through their Round-Up method or save between $.50 and $5.00 every few days using their Smart-Savings method.

During the month they will withdraw the money from your checking account in $5.00+ increments to save it for you and at the end of the month, they will send a check to the debt you chose in the app.

How much does it cost?

Qoins deducts a small fee, $1.99, from the monthly payment it sends on your behalf.

The monthly fee covers the cost of sending the payment and helps to keep the company running.

You will not be charged while your account is paused. 

Is it secure?

Qoins uses 256-bit level encryption, similar to your bank, and they do not store your login information.

While your money is waiting to be sent it is held in an FDIC insured account.

Features that will help you stay on top of your coins

Before Qoins withdraws money from your account they will actually send you a text letting you know they are going to withdraw a specific amount and on what date.  They will also let you know that you can cancel the withdrawal in the app before that date and time. So if you know you will need that money for something else then you can cancel the withdrawal before they process it.  

You can also have funds waiting to be sent today off your debt, sent back to you (minus the $1.99 fee).  You should only do this if you have a large emergency happen and you really need the money. The point is to pay off your debt faster but Qoins understands that things happen.

They also have a feature that allows you to pause activity for up to 30 days.

The App

The Qoins App can be downloaded from the App Store and Google Play.  It has a really clean interface that addresses you by name, shows you your current Qoins balance, when it will be sent, the individual withdrawals from your checking account, and your payment history, including how much you have paid off so far. 

How to sign up

To get started all you need is yourself (must be 18 or older) and your U.S. checking account.

Once you create your account, link your funding source - the account where all of your payments will come from.

Link your round up account(s) - you can connect your checking account and your credit cards and these are the accounts Qoins monitors to determine how much to save and send for your extra debt payments). 

If you want, your funding source and your round up account can be the same.

Qoins will send you 2 small test deposits to your bank account that you will need to confirm in the app. 

Once confirmed Qoins will start saving extra debt payments for you.

My Thoughts

If you like automated savings apps and are looking for additional ways to automate your debt repayment, then Qoins can help you do that.  The additional payments made using the Qoins app will help you pay less interest on your debt and get you closer to your financial goals. You definitely want to make sure that you set it up to save enough money to make it worth the monthly fee.  I set it up on my fun money account and it has sent approximately $50 in extra payments to my student loan each month, for the last 6 months in addition to the payments I made.

So if this is the first post you have ever read from me,  I am a spender and I got it honestly from one of my parents who will not call out in this post.  The interesting thing about it was I always felt guilty because my other parent a saver. Interesting combination right.  Yeah, I know, and just for the record, my brother is naturally a saver like the other parent.  

Since one of my parents was frugal I have been blessed to see some of the benefits of having money in your savings account and how they were not as stressed when unexpected expenses arise.

The experience that sticks out to me is when the motherboard on my brother's laptop went out during his Freshman year of college. The warranty was up and my brother didn't even ask for a new one.  My parents discussed it and went out and brought him a new one. And just so you know my parents are the type that research the best brand, specs, and extras so it wasn't the base model. The fact that they were able to purchase a new top of the line laptop in 3 days without breaking a sweat was amazing to me. 

When that happened, I was already saving money but not at the level my parents or the should I say the saver parent was.  When I questioned my saver parent about it, they said, “that's why I save so I can do these things without thinking twice.” 

At that time, I had a decent sized savings but it was dwindling quickly due to home repairs and I was not actively building it back up at that moment (I was saving money but I could have been saving a lot more to build the account back up).   

Our conversation made me realize that I needed to set up a system to save more without actively saving.  

Here is how I save as a natural spender.  

The first thing I did was create a new budget, I needed to see how much more I could allocate to saving in addition to what I was already doing.

The next thing I did was increase my contribution percentage on my 401k.  I was contributing more than the match but I realized I could contribute more and reduce my taxable income (the Accountant in me is always looking for tax benefits). 

Now it was time to allocate more money to my emergency fund. I increased the amount I had direct deposited to my savings each paycheck. At that time my direct deposit was sent to 3 accounts: my savings, the bills account, and my fun money account.  In order to increased the amount I was saving each month, I decided to decrease my fun money allowance. I chose to reduce my fun money account because I was not spending all of it anyway, I just liked the option to spend it if I wanted to.

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To keep my hand out of my savings, the savings account that receives my direct deposit is not at my bank.  Why? Because it makes it hard to access the money. So I check the balance but I am not touching that account unless it is an absolutely necessary which why I have multiple savings accounts.  

I set up a portion of my paycheck to go directly to my Capital One 360 account and that is where I save the majority of my emergency fund.

Check out my Digit & Qaptial Reviews

I also have a Digit account and a Qapital account.  Both the Digit and the Qapital account are automatically deducted from my checking account based on my spending habits, rules, and set goals.  I save for fun items in these accounts, such as personal trips or something I want that is more expensive so I set a goal for it and when I hit the goal amount, I go and get what I want. 

Most people are surprised to hear I have all of these savings accounts (the rest are jointly held) and please know that you don't have to be like me and open up multiple savings accounts, it can be overwhelming for some but it helps me save for multiple reasons.

What I want you to take from this is that you can save as a spender, you just have to make it work for you.

Just so you know, a few years ago I was asking my spender parent questions about money (I wanted to know the spender parents money mindset) and  I found out that spender parent does automatically save too. So like I said earlier, I got it honest.  

Are you a natural spender, how do you save money?

I love reading and one of my favorite topics is of course Personal Finance.  One of the first Personal Finance books I read was Total Money Makeover. That book helped me learn how to create a budget.  If you are looking to increase your personal finance IQ here are a few books you should check out.

The 60-Minute Money Plan:  A Short & Sweet Workbook For People Who Hate Budgeting 

This workbook is definitely short and sweet.  It’s great for a person who’s ready to take action quickly.  Taylor Medine breaks down how to create a budget and provides you with the budget templates.  Before you jump into learning how to create your money plan the book focuses on your mindset, your why and forgiving your past money mistakes, which are all attached to your money goals.  Once you start creating your budget, Taylor also gives you tips on how to cut expenses and increase your income. In one hour you can create an easy to follow plan for your money that will help you reach your money goals.

Also Read:  One Week Budget

4 Financial Languages:  The Secrets to Communicating About Money

I have talked about communicating with your partner about money on the blog before but if you have not had the experience yet, let me tell you, it’s not always easy.  Tarra Jackson has released a book that makes communicating with your partner fun, by helping you understand how to communicate with your partner based on their financial language instead of your own.  This book is an easy read that breaks down facts, quotes, confessions, to-dos and not to-dos in an aesthetically pleasing way that makes you want to keep reading. She even talks about my favorite couples’ activity, money dates.  Even if you don’t currently have a partner this is a great book to identify who you are and to save yourself from some arguments in the future.  

Also Read:  Financial Fornication

The Money Manual:  A Practical Money Guide To Help You Succeed On Your Financial Journey

The Money Manual will provide you with the basics of personal finance when you are ready to change your financial situation.  Once you get the book, you should download the companion Money Manual Workbook so you can work through the tasks in the book. At the beginning of the book, Tonya Rapley has you complete a self-assessment that will help you determine where you stand and what goals you want to achieve.  She shows you how to create and achieve your goal using the SITA method. The book also focuses on using money as a tool, navigating your student loans and how to manage budgeting, saving, debt and credit. If you are looking to get on or back on track with your money then this book is for you.

Also Read:  Real Money Answers

Broke Millennial: Stop Scraping By And Get Your Financial Life Together

Broke Millennial is a book that combines true stories you can relate to with financial lessons.  What I really enjoy about this book is that it can be used as a reference guide for the different financial situations you may encounter in life, such as, choosing the right financial products, not letting your friends control your money, managing your student loans or negotiating your salary.  Erin Lowry even talks about investing and preparing for retirement. She also does a great job of incorporating humor along with actionable advice. This is a book you if you are looking for financial advice from A-Z.

Also Read:  Rich Dad Poor Dad

Right now, I am reading Reach Your Money Goals In 3 Steps. It’s a quick read so look out for my thoughts on it.

If you have already read the books I mentioned, let me know what you think.  Also, what books do you think I should add?

Are you looking for a better way to get on the same page with your spouse when it comes to managing your money?

Have you heard of Zeta? Well if you haven’t and you're looking for a better way to manage money as a team with your partner then continue reading.

What is Zeta?  Zeta is a free money management tool that is specially designed for couples.  It doesn't matter what point you are in your relationship so if you're living together but you have some joint bills, newly engaged and you and your fiance’ are saving up for your wedding and honeymoon or if you are married then this may be the app for you. Zeta can be conviently accessed online at askzeta.com or you can download the app from the App Store or Google Play.

Zeta is set up so that you and your partner are able to manage your finances together and reduce the amount of mystery when it comes to your spending so you can both work together to reach your financial goals. With Zeta you are 100% in control of what you share with your partner. That means you are able to manage the joint accounts that you share with your partner but you're also able to manage your individual accounts that you don’t want to your partner to bave access to, which works well for couples who manage their money together for everything for the household but they also have their personal spending account for fun money.

Is It Hard To Set Up?

Zeta has an user-friendly interface that allows you to set up your account in less than 10 minutes. Once you sign up and add your accounts, you invite your partner and your partner can also set up any individual accounts they want to add.  

You and your partner can choose to create your budget at that time or wait until your Money Date but the system will automatically start tracking your spending, so you will start receiving a weekly email that shows where your money went so you both know what’s going on in your shared accounts.

What Features Does It Have?

This tool has several features to make your life easier. It tracks your spending spending in your connected bank accounts and gives you the option to create a shared and personal budget. So you can create a budget for your personal expenses, goals and activities, like a girls trip, or if you are working on paying off personal debt and you also can have a shared budget with your partner for you household expenses, goals and activities, like, a house, wedding or travel fund.

Once you add all of your checking, savings, debts, and investments Zeta will aslo calculate your net worth. They even give you the option to manually add the instiutions they don’t have but they had all of my financial insitutions in their system.

Zeta also allows you to create custom categories for your spending and budget so instead of being stuck with categories that are not realistic to your life you're able to add exactly what you and your partner need.

There is also a split transaction feature so if you and your significant other purchasing an item together, you can notate that both of you or one of you owes the shared account money.  It also allows you and your partner to notate if you have already paid back your portion.

There's also a memo feature that makes it easy to ask questions or leave notes for your partner about specific transactions, which should make your money dates efficient and quick.

Zeta has incorporated a Bill Reminder feature so you don’t forget a bill is due. The Bill Reminder feature also notices when you are consistently paying a creditor for the same amount and will ask you if it is a new bill so it can add it to your Bill Reminders.

Zeta’s Goals feature is another great addition that helps you list your financial goals and keep track of your progress toward goals. I really love this feature because in order to reach our life goals we need to be able to properly manage our money.

Is it Secure?

Zeta does not store your login information for your financial institution. They connect to your institution through a third-party service tool called Plaid. All passwords are encrypted to prevent hacking.

When your partner accepts your invitation to join Zeta they will have to follow a two-step authentication process before they are able to see the accounts you have chosen to share with them.

My Thoughts

The mission of Zeta states teamwork makes the dreamwork, because when you and your partner work together for the common goal, it’s easier to reach your goals together. Zeta is working hard to make sure you are your spouse are on the same page.

I really like this product because:

• It’s free

• It’s easy to get started. It takes less than 10 minutes to get set up.

• You can access it from anywhere. Zeta is available via website or app.

• You’re 100% in control of what you share

I think this is a great tool to use with your partner to end money fights and become #relationshipgoals.

Once you say the word budget it seems like the energy in the room disappears, but a budget is not a bad thing it gives you the ability to pay for everything you need and everything you want.

Having a budget helped me pay off over $50K in debt and fund my emergency fund, but it has also allowed me to do things I love like travel.

One of the points of frustration when creating a budget is trying to remember what you actually pay for each month and something or a few things always gets left off in the first draft of the budget.  Instead of making the process difficult I have created a list budget categories to help you create your budget with ease.

When creating a budget always start with an estimate of the amount of income you expect to receive.

Income

Salary (after-tax)

Side Hustle Income

Child Support (income)

Bonus

Part-time Job Income

Investment Income

Rental Income

Other Income

I believe in paying yourself first so if you build it into your budget you will not have to worry about not having anything left to save.

Savings

Emergency Fund Savings

Extra Debt Payment

Long-term Savings (goal based)

Short-term Savings

College Saving

Travel  Fund

Wedding Fund

Birthday Fund

Gift Fund

Health Savings Account Contributions

Flexible Spending Account Contributions

401K Contributions

IRA Contribution

It’s essential to keep a roof over your head so below are expenses that are related to maintaining housing.  Even though the last 3 can be considered lifestyle expenses, I still wanted to include them with housing.

Housing

Mortgage

Rent

HELOC

Homeowners Insurance

Rental Insurance

Personal Property Insurance

Home Repairs

Home Maintenance

HOA Dues

Lawncare

Alarm System

House Cleaning

Yes, you should include giving into your budget, it just makes life easier.  I’m never caught off guard when that tithe check clears.

Giving

Tithe

Offering

Charitable Gifts

Fundraisers

These are all the things that make living in your home comfortable.

Utilities

Water/Sewer

Electric

Natural Gas

House/Cell Phone

Cable

Internet

Trash

Household Items

Air/Water Filter

Paper Products

Printer Ink

Printer Paper

Cleaning Products

You have to eat, let’s set a goal for how much you expect to spend on groceries.  I include kid’s lunch for those who pay for their children to each lunch at school.

Food

Groceries

Kid’s Lunch

Baby Formula/Food

Restaurants

You have to get to work so here are all of the cost associated with it.

Transportation

Auto Gas

Auto Repairs

Auto Maintenance (Tires, Brakes, Oil Change, etc.)

Parking

Property Taxes

Registration

Inspection

Parking Tickets

Toll Fees

Driver’s License Renewal

Public Transit

Taxi/Uber/Lyft

Auto Insurance

Motorcycle Insurance

For all my pet lovers they’re cute but they cost money too.

Pets

Pet Food/Treats

Pet Insurance

Pet Supplies

Pet Medical Fees

Pet Toys

This is one of those categories that no one wants to pay for but we need it.

Medical & Insurance

Life Insurance

Health Insurance

Long-term Care Insurance

Medical Co-pays

Dental Insurance

Dental Co-Pay

Medical Insurance

Prescription Co-Pay

Optometrist Co-Pay

Disability Insurance

Medical Devices

Personal Property Insurance (jewelry, computers. etc)

Repaying debt is an important part of reaching your financial goals.  

Debt Repayment

Car Payment

Student Loan Payments

Credit Card Payments

401K Loan

Personal Loan Payments

Federal/State Taxes owed

If you’re like me these are the things you don’t mind paying for

Lifestyle

Entertainment

Netflix

Hulu

Amazon Prime

PlayStation Vue

Gym Membership

Audible

SiriusXM

Fun Money

Clothing

Shoes

Hair Care

Nails

Eyebrows

Cosmetics

Toiletries
Laundry

Dry Cleaning

Last but not least, the kids.  They have a lot of expenses attached to them, the best thing I have ever done was add most of the categories below to my budget.

Kids

Daycare/Afterschool

Private School Tuition

School Transportation Fees

Club Dues

Extracurricular/Sports Activity Fees

Field Trip Fees

College Tuition

School Textbooks

School Supplies

Kid Allowances

Standardize Testing Fees (SAT/ACT)

School Uniforms

Child Support (paid)

Hopefully, these categories will help you when creating your budget.  If you have a category you would like for me to add to the list, let me know in the comments below.

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Emergencies, they happen but they don’t sting as bad when you’re able to pull the money from your savings to cover it.  According to Bankrate.com only 40 percent of Americans would pay an unexpected expense of $1,000 from savings, 1/3 would borrow the money by using a credit card, personal loan, or by asking a family friend.  If you have to borrow it then that’s what you have to do but here’s the thing about borrowing money you borrow the money, you still have to pay it back so you now have another bill to pay each month. If you don’t have an emergency fund already, here’s how to build a beginner emergency fund fast.

How much should you save?

It has been recommended by many to start with $1,000, I even started with that amount but after my own experience, I personally think you need at least one month of expenses in your beginner emergency fund, especially if you are in a high cost of living area.

Once you pick an amount that makes you comfortable and now you can calculate how much you can afford to save toward your goal.

To calculate how much you can afford to save, you need to know the following:

Your fixed monthly expenses - These are recurring monthly expenses that are the same every month, like your rent, car payment, car insurance, gym membership, cable or even utilities that don’t fluctuate too much from month to month.

Your monthly debt payments - This is the minimum amount you pay each month for your mortgage, car payments, credit cards, student loans, personal loans, etc.

Your flexible expenses - These are for costs that vary month to month, so food, clothes, entertainment, hair, nails and any other discretionary spending you may do during the month,

Non-monthly expenses - This includes car taxes, registration fees, insurance payments (if you don’t pay monthly), etc.  You can save for these expenses monthly.

Take the total of the 4 expense categories and subtract it from your monthly take-home pay.

Now you know how much you can save in one month just from your income.

You need a separate savings account

Now that you know how much you can save just from your income, you need a savings account and I’m not talking about the savings account at your current bank.  You need a saving account at a bank that is not at your current bank and takes a little work to access, like across town or online.

If the account is hard to access, you are only going to put in the work if it is an emergency.

Here are a couple of banks I recommend:

CapitalOne 360  - CapitlaOne 360 allows you to set up different savings buckets so I have been using them for years to save for different goals.  I save for all of my sinking funds in this account, along with any other large ticket item I may need want.

Marcus by Goldman Sachs - Last year I saw the interest rate at Marcus climbing so I decided to move a portion of my emergency fund to Marcus.  So far so good, I love their interface and I‘ve had a great experience so I will probably move over the rest soon.

Other ways to build your beginner emergency fund fast

You may not be able to build your beginner emergency fund just from your income so here are some options.

Make it a priority by saving first

Instead of paying your bills first and saving last.  Save as soon as you get paid, then pay your bills. You can set a predetermined amount you can afford transferred to your savings account each pay period.  

Sell items around your home

We all have items around the house that are barely and never used or worn and they just taking up space. Do a little cleaning and organizing and sell those items online.  

• Old cell phone, tablet or laptop sell it to decluttr

• New or barely worn clothes or shoes, items around your home- eBay, Mecari and Poshmark

• You can also sell items on Facebook Marketplace (just make sure you meet whoever you are selling to in a designated safe area in your city)

Use an app that would automatically save for you

One of the easiest ways to save without thinking is by using apps like Digit and Qapital to save.  I love both of these apps because I am a spender and I like for most of my saving to be done automatically and both of these apps will do that for you.  It’s amazing how much you will save when you set a rule and let the app do its work and don’t worry both apps have the same 256 bit security encryption as your brick and mortar bank.

Check out my review of both products below.

Qapital Review

Digit Review

Pick up a side hustle

Side hustling is the way I built my beginner emergency fund and how I paid off $48K in debt.

There are so many side hustles out there, you just have to pick one you enjoy.  

A few side hustles, include mystery shopping, driving for Postmates, selling jewelry, selling items on eBay and more.  If you are looking for side hustles check out this post of 30+ side hustles.

Bring your lunch to work 3-4 times a week

Are you eating out every day for lunch?  Have you ever calculated how much you spend in a week on lunch?  Well, if we are being conservative and spend approximately $10 a day on lunch, that is $50 a week and $200 a month.  That’s money that could be going into your beginner emergency fund. Now if you are highly motivated you can bring your lunch to work 5 times a week and put the difference you saved into your savings account, but I believe in some type of balance so bring your lunch to work 3-4 times a week.

Don’t forget to put the amount you saved into your savings account, leaving it in your checking account is not saving.  It will eventually be spent.

Cut your cable

I know some people don’t want to cut their cable, but hear me out.  It doesn’t have to be permanent, just until you hit your goal and if you don’t want to completely cut off your cable, maybe you can downgrade your current package and add the difference to your savings account.  

Alternatives To Cable

Make adjustments to your monthly expenses

One of the ways that I save money is by making adjustments to my fixed monthly expenses.  I already talked about cutting cable, but I have also found ways to reduce my car insurance, get monthly discounts on my cell phone bill, eliminate subscriptions I don’t use, etc.

Cut expenses article

Bank your windfalls

Do you receive bonuses or tax refunds, bank them.  Not in your checking, the savings. If you receive a large amount of money, you can either bank the whole thing or spend a little, so you don’t feel completely restricted and bank the rest.  

Once you build your beginner emergency fund you can continue saving to build a 3 to 6 month emergency fund, stop building your fund temporarily to focus on paying off debt or you can save and pay off debt at the same time. Just don’t forget to put the amount you saved into your savings account, leaving it in your checking account is not saving.  It will eventually be spent.

Investing is a critical part of building wealth and surviving financially over the long term.

Unfortunately, many women defer investing to their husband or never invest at all.

I’ve seen the scary results of women not taking an active role in the family finances.

When I worked at a financial planning firm, we had a client pass away.

His wife came into the office for a meeting so she could be caught up on their accounts.

This was the first time we were ever meeting her. Up until now, she simply let her husband handle the investing.

Now she was alone and completely clueless as to their investment plan, her investments, and even account balances.

But this isn’t the only reason women need to take an active role when it comes to investing.

As a woman, you face unique financial challenges compared to men.

In this post, I will highlight these challenges and how you can take action so that you can become a successful investor.

3 Major Financial Challenges Women Face

#1. The Pay Discrepancy Challenge

Though strides have been made, women are still too often at a disadvantage versus men when it comes to equal pay.

While there has been improvement over the years, since 2000, the percentage difference has remained the same.

For example, if a man earns $100,000 annually, a woman in a similar role only makes $81,800.

It doesn’t take a math major to see the impact of lower earnings over the course of one’s life.

#2. The Family Challenge

Another challenge women face is working and having children.

While new moms will get paid a portion of their salary when on maternity leave, it is only a fraction of their full-time income.

Add in the possibility of wanting to stay home to raise their children or even needing to reduce hours to handle family duties, women lose income and potential promotions as a result.

#3. The Longer Life Expectancy Challenge

Finally, on average women live longer then men. As of this writing, the gap is 5 years.

This means women need on average 5 years more savings in order to survive financially.

And in some cases, they need a lot more!

As you can see, these challenges are significant. Earning less and living longer are a recipe for financial disaster.

So how do you go about investing so that you can survive financially?

Here are 4 tips to get you on the right path.

4 Steps To Overcome Financial Challenges

#1. Understand What Investing Is All About

Your first step is to get an understanding of investing. I am not suggesting you go back to college and get an MBA.

But you do need to understand the basics.

Read books, listen to podcasts, and check out online forums for information.

Books that I highly recommend include The Essays Of Warren Buffett, A Random Walk Down Wall Street, and The Intelligent Investor.

The more basic understanding you have when it comes to investing, the smarter choices you will be able to make going forward.

#2. Create An Investment Plan

Once you have a basic understanding, you need to create an investment plan in order for investing success.

This plan will detail your goals, your risk tolerance, your investments and more.

Think of it like a map. It is there to guide you on your journey.

Many times throughout your journey, when the market gets crazy, you will refer back to it to keep a sound mind and stick to your plan.

#3. Start Now

I was going to list this point second because it is so important.

You need to start investing now.

Not tomorrow or in a few years. Now.

The reason is simple. Every day your money will compound and grow.

The longer you put this off, the less time you have for your money to work for you.

This results in you having a lot less money than you otherwise could have.

So make it a priority to start investing as soon as possible.

#4. Hold Investments Long Term

The last point to investing success is to hold long term. Too many people get caught up in the hype of the market and buy and sell investments.

This will lead to disaster. You cannot time the market. No one can.

You have no idea what the market is going to do from one day to the next. No one does.

Your best option is to pick solid, low-cost investments, and hold them for many years and invest more money into them on a regular basis.

By following this strategy you are buying more shares regardless of what the market is doing and as a result, will be able to take full advantage of compounding.

Final Thoughts

At the end of the day, women face financial challenges that can lead to a lot of stress later on in life.

By being proactive and learning about investing and starting as soon as possible, you will lessen the impact of these challenges.

There is one final point about this topic I want to make.

If you are in a relationship and your spouse is handling your finances, make it a point to schedule a monthly financial checkup to be kept in the loop.

Also request a one page summary with important information like account numbers, contacts, etc.

After experiencing the death of a client, I created a file like this for my wife. I want to make sure she doesn’t have the added stress of money on her plate should I pass first.

While it is not easy to talk about these things, they are conversations that need to be had so that your loved ones can continue on with less stress after your passing.

Author Bio: Jon Dulin is a finance professional and writes at moneysmartguides.com. There he helps readers on their journey from paying off debt to starting to invest so they can achieve their financial dreams.

Making payments on your student loans is the worst. Unfortunately, there’s no getting around it: You have to pay them back. But how do you know if you’re doing it the “right” way?

Obviously, you want to pay them off as fast as you can. That way, you can spend that money on something more fun. But should you consolidate your loans or refinance them? It can feel overwhelming when trying to make this decision, especially when new offers are constantly arriving in your mailbox.

But don’t sweat it!

By the time you finish reading this article, you’ll know what the differences are and how to pick the right one for you. Ready to dive into student loan consolidation vs. student loan refinancing? Let’s go!

What is Student Loan Consolidation?

When you think about consolidating your student loans, you’re referring to a specific program from the U.S. Department of Education. It’s called a Direct Consolidation Loan, and it combines some or all of your federal education loans into one loan. So, if you have two loans - one for $8,000 and one for $6,000 - they morph into one brand new loan for $14,000.

Doing it this way trades your two separate payments for a single monthly bill. And you can still take advantage of the federal repayment plans and forgiveness programs.

What is Student Loan Refinancing?

Student loan refinancing is similar to consolidation except it’s open to private student loans in addition to any federal student loans you might have.

For refinancing, you take out a new private student loan with a private lender to replace your current loans. For instance, if you have a $5,000 federal student loan and a $2,000 private student loan, refinancing could combine them into one private student loan for $7,000.

The key consideration is that refinancing a federal student loan means it will no longer exist. Since it becomes part of your private student loan, it won’t qualify for federal repayment or forgiveness plans.

How is Student Loan Consolidation Different from Refinancing?

Though they sound the same - both choices combine two or more loans into one - you need to consider their benefits and drawbacks before making a decision.

Types of Loans That are Eligible

Because student loan consolidation is a federal program, it isn’t open to private student loans. If you want to consolidate your federal student loans into a single monthly payment, applying for a Direct Consolidation Loan is simple enough.

Nearly all federal student loans can be consolidated. For a complete list, check out the federal student aid website. But here are a few of the most popular ones that are eligible:

• Federal Stafford Loans: Subsidized, Unsubsidized, and Nonsubsidized

• Federal Perkins Loans

• Nursing Student and Nurse Faculty Loans

• Direct Loans: Subsidized and Unsubsidized

• PLUS Loans from the Federal Family Education Loan Program

To get started, you’ll go through a private lender. Your local bank or credit union might be able to help. But you might get a better rate if you shop for loans online. And if you think about it, comparing loans from the comfort of your own home sounds pretty great.

If you’re not sure where to begin, take a look at Credible. It’s an online marketplace that assembles different lenders to help you find the best deal. Just like you’d compare airfare or hotel rates online, Credible lets you compare different terms and interest rates of loans.

Even though you can’t consolidate private student loans, refinancing them is an option. And remember, federal student loans qualify for refinancing, too.

How Your Interest Rate is Calculated

Your credit history might play a role in the interest rate you pay, though how much impact it has depends on whether you choose to refinance or consolidate. You see, the interest on a Direct Consolidation Loan is calculated differently than if you refinanced your loans.

With a Federal Direct Consolidation Loan, the interest rate on your new loan is equal to the weighted average of the loans you just combined.

If you have a decent credit score (or a potential cosigner does), this might not be your best bet. Going through a private lender to refinance your student loans might qualify you for rates as low as 2.80% APR.

Since everyone knows having a lower interest rate can save you thousands over the life of your loan, this is an essential factor.

Repayment Options You Can Expect

Sticking with consolidation lets you tap into the federal student loan payment protections. If you don’t have great credit or want the option of an income-driven repayment plan, or think you might qualify for Public Service Loan Forgiveness, this is the way to go.

But there are advantages of refinancing with a private lender. In addition to the possibility of a lower interest rate, opting for a shorter repayment term when you refinance can save you tens of thousands of dollars, too.

Just don’t forget that refinancing your federal loans makes them ineligible for any of the federal repayment plans.

When to Consider Consolidating Your Student Loans

Even though you can only consolidate your federal student loans once, sometimes it makes sense to do it. Here’s when to consider a Federal Direct Consolidation Loan:

• To simplify your payments: Rolling your federal student loans into one can make paying them easier. Rather than juggling more than one loan servicer and multiple due dates, you’ll only have to remember one.

• Access income-driven repayment plans: IDR plans like Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) is only available with federal student loans. This is crucial if you’re planning to ask for Public Student Loan Forgiveness (PSLF).

When to Consider Refinancing Your Student Loan

If you have more than one private student loan, federal student loan, or a combination of the two, refinancing with a private lender might be the better path. You may want to think about:

• Lowering your interest rate: Qualifying for a lower rate with a private student loan is a real possibility. Consolidating uses a weighted average of your previous federal student loans. But refinancing gives you an interest rate based on your credit history.

• Paying off your balance faster: Private lenders can offer you shorter repayment terms when you refinance your private and federal student loans with them. This lets you pay it off more quickly, and can put more money back in your pocket.

Which is Right for You: Consolidating or Refinancing?

Either way, you can save big with consolidating or refinancing your student loans. It comes down to the types of student loans you have and whether or not they’re eligible.

Weighing the pros and cons of any potential savings against the possibility of losing federal payment protections can help you make the right decision. In doing so, you could stamp out student loan debt in record time and save yourself tons of money.

Amy Beardsley is a freelance writer and staff writer for Club Thrifty, a website dedicated to helping people dream big, spend less, and travel more.

Have you consolidated or refinanced student loans? Give us your tips in the comments!

Do you know where you stand financially?  At the end of every month I sit down for 30 mins and complete a financial checkup.  A financial checkup is a layout of all my income and expenses for the month along with an analysis of how I spent my money in the previous month along with any outstanding debt balances and a status update of where I stand when it comes to my financial goals, so the balance in my savings, sinking funds and investment accounts (including retirement).

Running a financial checkup also helps me understand my spending patterns and it helps me know where I stand going into the next month so I can make quick, effective decisions if an unexpected expense or an opportunity came up.  It also helps me create an action plan Ito get me closer to my goal or if I had a new goal so wanted to reach.

Running a financial checkup every month help me build my emergency fund, pay cash for my wedding, take trips out of the country, pay off over 48K in debt and it helped me realized that I could invest and pay off my student loans at the same time.

How I run a financial checkup 

Disclaimer:   As I go through the steps it may seem like a long process be it is actually pretty fast.  I have it down to less than 30 mins.  

Check my bank account balances

The first thing I do is check all of my bank account balances.  I have multiple bank accounts but I don’t go to all of the accounts to check my balances I only go to Mint.  It also shows me the balance in my savings account.   

Now if a balance in one of my accounts does not seem right then I will go to that account so I can see all of the transactions for that account only.   I am also completing a spending analysis where I’m basically asking,  what did I spend money on over the last month? 

Once I know how much money is in the bank, I make sure all of my bills have been paid.  Most of my bills are paid automatically from my account but there are a couple that I actually pay each month like the mortgage on my rental property and my rent.  They could run automatically,  but I’m just particular about it.

I also check to see what bills are due and make sure I’m still at least a month ahead (this money sits in my checking account).   Even though I have an emergency fund, I still like to be a month ahead on paying my bills.  It gives me a head start if anything were to happen.  

Check my debt balances

Now it is time to check my debt balances.  Some of these are also available in Mint.  I have a credit card that gets paid off every month, my student loans and the mortgage only rental property.  Since the credit card gets paid off monthly I am only checking the balance on my student loan and making sure the additional payments are applied correctly (to principal) and I am doing the same thing for the mortgage.  

Compare my debt balance to my debt payoff plan.  I have goal of paying off my student loans in 3 years.  So I have an estimated amount that I have to put towards the principal each month.  Sometimes I hit the number sometimes I don’t.  I’m always trying bring in more income so can I do to contribute more.  This is where my action plan come into play. 

So check your debt balances and compare them to your credit limit if you have one and if you have a goal to pay off debt determine how much you need to payoff each month to reach your goal and are you on track to reach your deadline.

What’s my networth?

Your networth is your total assets minus your total debts.  The goal is have a positive networth.  It’s ok if it is negative, the point of knowing your networth is for you to know where you stand and you can decide if you want to make it a goal to to increase your networth.

What’s my credit score?

Then I head over to check my FICO score. I typically get an email at the beginning of the month so I already know my score. Note:  Sometimes I skip this part but if I know I am going to use my credit soon so I will check.

Am I on track to reach my financial goals?

At this point I know where I stand, so now I am looking at my goals and I create an action plan for the next month.

Now that you have answered the questions above, you should be able to make an action plan for your money that will help you achieve the goals for yourself. 

If you ran a financial checkup yourself let me know how it went and how you feel about it.  If need someone to help you sign up for a financial checkup session with me.  

In the Financial Checkup Session, we will we will discuss your goals,  organize your expenses so you know where you stand financially and create a customized plan to help you accomplish your financial goals.

To more about the Financial Check Session and schedule a session click the button below.

Once a month we will post a video or blog post interview with a side hustler so you can learn more about the different side hustle interview options available to you. If you have a side hustle you want to suggest or if you want to be interviewed click here.

Tell me a little bit about yourself, your side hustle and why you started?

My name is Allynn and I’m 27 years old. I love sports, music, painting, and videography. My side hustle is delivering food with Postmates. I started because I was looking for ways to make extra income other than just having one stream.

Is it easy to get started?  How does someone get started?

It’s fairly easy to get started. There are certain documents that have to be submitted in order for one to be approved for delivery. For someone to get started you have to first download the Postmates fleet app and fill out information. Once a person is approved, you’re provided with some material that will be needed to finally start delivering orders.

When you first started how did you market yourself and how long did it take to turn a profit?

The good thing is I didn’t really have to market myself. Certain restaurants advertise themselves on Postmates to have their food delivered to them. I will say you will need to understand the demographic areas to receive more deliveries which means more money. Every delivery you’re guaranteed to make a profit.

Do you need to be outgoing to be successful in your side hustle?

You don’t really need to be outgoing to be successful you have to be motivated. I would say Postmates does a good job of providing incentives for you to be successful.

How do you make time for your side hustle?

I would pick certain days after work to do deliveries especially depending on the time I get off.  The weekends are also good because people tend to cook less than they do during the week.

What is a typical day like for you?

A typical day for me is going to my full-time job. I normally get off at 7 or 8 pm and if I’m doing deliveries, I pick an area where I normally get 2 to 3 deliveries quickly and go home.

Are there any tools you need in order to run your side hustle?

If you mean tools as physical, you will definitely need some form of transportation, a smartphone, and I would say to keep your phone charger close by. Outside of that, you will need to be attentive to the order that you’re picking up, there’s a great chance you can leave something that someone ordered and that’s money gone to waste.

Is this your first side hustle or have you done other side hustles in the past?

No this isn’t my first side hustle, but I will say this has been my most successful one.

If so, what other side hustles have you done?

Another side hustle I’ve had previously was Uber.

What advice would you give to someone who was interested in doing your current side hustle?

If you’re looking for something simple, that allows you to make extra money along with incentives, and you’re not the most social person in the world, I would definitely recommend Postmates. They provide opportunities for you to make money on your time, and you’re always guaranteed to walk away with a profit after every delivery.

What opportunities has side hustling provided you?

It has provided me the ability to save money and have fun money. Often times when we have bills especially in this economic climate you don’t really get to use your money the way you want to; doing Postmates has really done that for me.

Tell us where to find you (website or social media).

If you want to laugh at posts I come across daily follow me on Twitter: LeVrai_Conteur or my Snapchat: Alchan_Ming

If you have a side hustle and you would like to share it with us, email me at hello at financialdemics dot com.

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