Your Stress-Free Financial Life

The Beginner's Guide To A Stress-Free Financial Life

2009-01-19T08:22:00.002-06:00

Many of you know that I am writing a book. Well the book is done and in the editing process. This blog is the interactive version, if you will. A lot of the tips and tricks mentioned here are listed in the book, and the blog is meant to be continuing education.

I'll keep you posted on the progress.

Talk soon

2009 and Your Money

2009-01-09T15:19:00.003-06:00

This year is scheduled to be a continuation of horrible-ness, in relation to money. We all know the situation - weak stock market, banks going down, job-loss in every sector, etc.

What's important is that you are prepared for anything and everything.

This goal this year: Stretch every dollar and save the rest.

To reach this goal you will need to:

Drink the free coffee at work even if it is bad;
Make your lunch;
Drink tap water (depending on your location);
Don't start driving a lot just because the gas prices came down;
Buy on sale and with a coupon - especially at the store.

With all of these suggestions, you will save money. And the money you save put in your piggy bank or in a savings account.

Remember, if you lose your job, you need 9-months of money saved. This is not just to cover the rent and utilities. It includes:

Rent
Utilities
Phone / Cell Phone
Gas for car
Groceries
Medical
Monthly pharmacy prescriptions
etc.

Why 9-months? Because that's the average time to find another job that is comparable. You don't want your money to run out on you, so save save save!

Hey, I was laid-off twice in a 12-month period. I lived this advice. My money barely made it and it was stressful!

Until next time!

I created some cool shirts related to the bailout and Obama - Check them out at www.micis-boutique.com

It's been a long time since my last post. The main reason is basically because I wanted to see what would happen after the bailout was approved and how the market/economy would fair. The other reason is that I have been working on my book titled THE BEGINNER'S GUIDE TO A STRESS-FREE FINANCIAL LIFE. It will be available, hopefully by March 2009. I'll keep you posted (pun intended :))

It's Tax Season

2008-09-15T10:58:00.001-05:00

Yes, I know it’s September. But this is a good time to review the items for your Income Tax Return.

By items I mean your credits and deductions. But most importantly how much money you have withheld from your payroll check. Many of you may find that you have TOO MUCH withheld – others TOO LITTLE.

If you receive a huge refund check, you have too much withheld.
If you receive a statement of how much you owe, then you have too little withheld.

Though the big refund is great to receive, what you don’t realize is that you could have that money all to yourself throughout the year. Meaning, instead of giving it to the government to make money on it through the interest, you could have more coming to you on your paycheck.

Check this out. If you’re paid every other week, you receive 26 paychecks in a year. So say your refund is $4,000.00. If you divide the refund amount by the number of paychecks per year (4,000 ¸ 26) you will see that you could have approximately $150.00 more on your paycheck coming to you.

Now you ask, how do I make the change? How can I fix this? Well, first list out all your deductions and credits and their corresponding amounts. Here is a list of examples. This is not a complete list.

Child Credits
Medical Expenses and/or Medical Savings Account Expenses
Dry Cleaning
Interest Paid on Mortgage

Then go to the IRS calculator with your latest paycheck and the deductions/credits information. Answer the questions and viola! The IRS calculator will tell you, to date, if you will owe or receive a refund. They will also instruct you on how to change your allowances so that you don’t owe them, but also so that you don’t receive the refund check.

The web site is: http://www.irs.gov/individuals/article/0,,id=96196,00.html

Here’s an except from the site:
Purpose of This Computer Program The purpose of this application is to help employees to ensure that they do not have too much or too little income tax withheld from their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that accompany Form W-4. You may use the results of this program to help you complete a new Form W-4, which you will submit to your employer.

Once you make the change, be responsible with the extra cash. Use the money to pay down your debt and start a savings account.Until next time….

Settling the Credit Score

2008-08-13T21:09:00.001-05:00

Here is a great article from Yahoo! Finance....

Times are tough, and understanding your credit score is crucial to financial survival. But knowing your score and getting access to it isn't so easy.
Credit scores affect everything from rates on mortgages and car loans, to credit card terms and even whether you get a job. Lenders use them as an indication of how likely you are to repay a loan. The most widely used credit score is known as FICO, which ranges from 300 to 850. Credit scores change over time, depending on your credit history, which is explained in your credit report.
In recent years consumers have had the ability to access one free credit report a year. But getting an accurate reading of your credit score remains problematic and costly.

Visit the following web site to read the full article...

Teach Your Children the Value of Money

2008-07-31T21:14:00.003-05:00

Here is a great article I found on Yahoo! Finance under the How-To Guides. Enjoy

Teach Your Children the Value of Money
There are a number of ways you can teach your children to form healthy savings habits. This article offers some age-specific teaching tools.

Click Here for article

My $0.76 Dinner

2008-07-12T08:36:00.005-05:00

That's right, $0.76 for dinner.

I was driving home and trying to figure out what I wanted for dinner. With my quest of living on the cheap and trying to lose weight, I eliminated the idea of eating fast food. Also, all I had was $10.00 in my purse.

Well, I decided to go to the grocery store - Aldi. This is a discount grocery store in the Chicagoland area. With my Aldi canvas shopping bag, I picked up a medium size pizza for $2.29.

After I cooked it, I realized that I wasn't as hungry as I thought. So I split it into 3 meals.

$2.29 divided by 3 meals = $0.76

Remember, there's always a way to live on the cheap!

(As far as the weight loss, I will have to walk twice a day to burn off the pizza meals)

Until next time...

Baseball Game: A Spending Vortex

2008-06-29T16:35:00.003-05:00

I had the pleasure of going to a baseball game on Saturday. Thankfully the Chicago White Sox beat up on the Chicago Cubs (called the Crosstown Classic). But that's not why I'm posting.

I realized yesterday that the ball park is a spending vortex. You have to pay for the ticket, parking, drinks and food, at a minimum. And if your kids want more (program, t-shirt, etc.) there goes more of your money.

I spent $74.00 and my ticket, parking and peanuts were free! Crazy. This is the result of the spending vortex.

Though it was a great game day, I could have spent less. Instead of eating the fries, polish and the Italian sausage at the game, I should have eaten before the trip. That way I would have only spent money on drinks. And did you know that some parks will allow you to bring in coolers?

Learn from my spending mistake and still enjoy the game.

Until next time...

Lunch Money: A Debt Trap

2008-06-26T14:10:00.003-05:00

Where I work, just like yours, there are a lot of people that eat out for lunch. I do sometimes as well. But this is for those that choose to do so almost every day.

I used to be one of them before my financial enlightenment. But with high gas prices, which cause the food prices (your grocery bill) to increase, cuts needed to be made.

Eating out for lunch is definitely one of them.

You’re thinking: what’s $5 or $10 for lunch? I know, it’s a small figure – on the surface!

Let’s dig a little deeper. $5 a day brings us to:

$5 x 5 days = $25/week
$25 x 52 weeks = $1,300.00/year

You could use this $1,300 on some more meaningful items, right?
-Pay your car note for 3 ¼ months at $350/month
-Pay your rent or mortgage for a month or so
-Pay off or towards your credit card bill
-Use towards a down payment for a car/home
-Start to invest in a retirement account
-Start to save in your emergency fund
-Save for a vacation

So you can imagine $10 a day, right?

$10 x 5 days = $50/week
$50 x 52 weeks = $2,600/year

Along with the previous list, this $2,600 could be used more wisely.
-Invest in an IRA, this is over 50% of the max contribution
-Use for your kids’ school clothes and supplies at the beginning of the year
-Better vacation

Now take what you typically spend in a week on lunch and times it by 52 to come to your yearly number.

I’m sure it is some crazy number. On top of this number you still have to buy groceries. What are you thinking!

We’re all about a stress-free financial life. Don’t keep tumbling down into this trap.

See you soon!

P.S. I went out to lunch today – for FREE! This is always allowed.

Wealth Building Basics - 4 Things You Must Do

2008-06-25T15:23:00.002-05:00

Good Afternoon:

Wealth seems like an elusive concept. You probably figure that you, the working person, can never be wealthy. This is not true. It will take work, but it is possible. There are areas you will need to conquer, but once you do, you're well on your way.

Balanced Budget
A balanced budget is not only the first step, it is the most crucial step. You can always have a budget, but your goal is a balanced one. This is the only way to know how your money is coming in and out.

Debt Reduction
This step is just as critical. If you have too much debt, you will not have a lot of wealth. A real priority must be debt reduction. This is the credit cards, the payday loans, etc.

Asset / Investment Planning
Once you have reduced your debt, it's now time to build up your assets and investments. This includes investing in a 401k plan at work, saving money in mutual funds, opening an IRA (Individual Retirement Account) and maxing it out yearly and minimizing your tax obligation, to just name a few.

Retirement Planning
I mentioned the 401k and IRA previously, understand that they are retirement accounts, but they are also part of your investment portfolio. Other planning includes your living expenses and medical expenes. Once you determine the level that you want to live (i.e. 70% of your current living level), you have to work towards saving and investing this amount. Remember, you want a comfortable living.

Well there you go - the 4 areas to conquer. These are the basics, but a great starting point. There's no secret formula that the wealthy know, that you don't. It just takes time and discipline. The road may not be easy, but the reward will be so sweet.

Introduction

2008-06-24T22:00:00.001-05:00

Hello All:

This blog is set-up to provide you with basic money tips and advice in a no-nonsense kind of way. But we will have fun!

I look forward to the future.

Stephanie

Related Feature

2007-10-04T19:18:00.000-05:00

The above article features related content.