Category Archives: Money

How To Visualize Financial Success in 2020

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You may feel like you have a handle on your finances, or you might be worried about a new business venture.

There are quite a few things that can concern you when you are managing your finances, and you should work to visualize financial success in the future.

You do not need to succumb to anxiety when you can use these actionable tips to improve your life and give you peace of mind.

Create A Budget That You Can Fine-Tune

When you are creating a budget, you can write down all your income and expenses. You should be honest with yourself, and you should write down all the recurring expenses that you have.

These tiny expenses can add up because they are often difficult to notice. This is especially true when you have automatic debits set up for your accounts.

When you write up a budget, you can see how much goes out and how much comes in.

You can begin to cut some of the expenses that you do not need, and you should keep yourself accountable for the budget.

If you ignore the budget, you have not made any progress. This is why the budget should always be the first step in imagining your financial success.

Create Lists For Everything

You can create a list for everything. Your lists will give you direction because they can tell you what needs to be done, when it should be done, and how long it will take.

You should also create lists that help you pay your bills, save money, and ensure that you are sticking to your budget. The lists will also help you get more work done, save money, and stop spending so much money.

You can create a list for your groceries, plan meals for the week, and plan any items that you need to buy.

You can stop making so many impulse purchases if you have a list of everything that you need.

You will also spend much less time at the store if you are using these lists.

Keep these lists on your phone or write them down. Do what makes it easier for you to remember what to do, when to do it, and what you need for the house.

You Should Create A List Of Goals

You should create a list of goals that you can easily refer to. These goals might be very simple, but you should ensure that you cross off each goal, add more goals as needed, and hold yourself accountable.

If you are not achieving certain goals, you need to be sure that you write down mini-goals that will help you measure your successes.

Save Money In A Simple Place

You should save money in a simple place like a jar, box, or piggy bank. It helps if you can see the savings add up, and you can continue to save until you have so much money that you need to make new goals.

You can spend some of the money that you have saved, or you can count all the money so that you know where you stand.

You might want to deposit this money in an online savings account, and you could even use an investment app to invest some of your money.

Saving money is a habit that is easy to get into if you are using a simple piggy bank or jar. You will teach yourself to continue to save money, and it will become natural

You might even choose to use an app that rounds up all your purchases, helps you save the money, and allows you to set goals.

You can transfer that money to your bank account, or you can send that money to a micro-investment account that will help you earn extra money every month.

Plan To Pay Off Certain Bills

You should plan to pay off certain bills that have a particular payoff date. You should keep track of that date, pay more into the account when you can, and count down the days until the bill is paid off.

That money will go back into your budget, and you can ensure that you have more money to pay off another bill.

You can continue to pay off bills so that you are not swimming in debt, and you can start living off cash.

Remain Positive

You must try to remain positive so that you can achieve your financial goals. Many people get discouraged if things do not work the way that they want to.

It can be easy to see why your financial successes will not happen overnight, but you should try to remain positive. This is why you need to have goals.

You need goals that will help you stay on the right course. You can be positive because you are going in the right direction.

Journal

Journal as much as you can about your finances so that you have some perspective on your finances.

You should write down the things that you would like to achieve, and you should also write down any ideas that you have.

Your journal is a place where you can rack what you have done with your money, plan what you want to do next, and consider your options.

You can write down and scratch out anything that you do not need, and you can continue to make charts, keep your budget in the journal, and even write down contacts in the book.

Conclusion

You can imagine your future financial successes if you are using the tips listed above. You can turn your life around by using these tips to start a budget, to learn about money, and to save money.

You can gain some perspective when you have a budget that will hold you accountable, and you can write down all your ideas in a journal.

If you need some quick cash for a financial boost, apply for a title loan online with Loan Cheetah. You can use your car title as collateral.

Your financial success will not happen overnight, but you can teach yourself a few things that will ensure you have money, you pay down debt, and you stick to your goals.

How To Estimate Your Monthly Expenses

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When it comes to budgeting, most of us have a pretty solid grasp of our monthly income. It can be more complicated if you’re self-employed. There will be fluctuations as your sales go up and down, but they typically fall within somewhat predictable ranges at given times of the year. Estimating your expenses, on the other hand, can be a bit more challenging.

The Importance of Estimating Your Expenses

A budget is essential for sound money management. Having one keeps you from flailing from one financial emergency to another throughout your life. Financial mismanagement from not having and sticking to a budget typically ends with not having sufficient savings to fall back on when you’re retired.

Only by having an accurate grasp of your expenses can you hope to know how much money you’ll have left over at the end of each month or whether you’ll have more month left at the end of your money.

How to Accurately Estimate Your Monthly Expenses

You need to sit down and write out every expense you have each month. Also, if you have bills that are due quarterly, for example, don’t forget to write down a monthly portion for each of them.

The following is a list of expenses that most people will have.

  • Rent or Mortgage
  • Car Payment
  • Car Insurance
  • Car Gas and Maintenance
  • Electric Bill
  • Gas Bill
  • Water Bill
  • Cable and Internet
  • Groceries
  • Eating Out
  • Student Loans
  • Health Insurance
  • Credit Card Payments

For many, the above list will not be comprehensive. You may have a gym membership and a Netflix subscription, in which case, you’ll need to add those.

Do you have a pet? Their food purchases may already be covered under your grocery expense listing but anything else may have to be added to your expenses list.

Also, if you have a medical condition, be sure to add your out-of-pocket copay on any prescription medicines you buy and for any regular doctor visits.

One Critical Item to Remember When Estimating Expenses

Mike Tyson had a famous quote that “everyone has a plan until they get punched in the mouth.” Life can throw punches occasionally.

You’ll have car breakdowns, rushes to the emergency room with a sprained wrist or whatever, your home furnace may finally give up the ghost and who knows what else.

There will be unpredictable events that will exceed a given pay period’s income, so you’ll need savings to handle it.

One recommended formula for budgeting is known as the 50/30/20 rule.

This refers to:

  • 50 percent of your income for essentials such as rent, utility bills and food.
  • 30 percent for discretionary spending.
  • 20 percent put away in savings.

This is, of course, the ideal scenario. Even if you exceed your expenses in a given month, you should still make sure to put something away for a rainy day since it all adds up over time.

Let Your Phone Be Your Expense Tracker

The best way to estimate monthly expenses is by keeping track of current expenses. Many bills are fairly regular in their amounts and when they’re due.

So, if you know how much you paid this month, they won’t be much, if any, more next month. One of the best, most convenient ways to do this is through the use of expense tracking apps.

You can simply Google “best consumer expense tracking apps,” and you’ll be presented with a ton of options. Since they are on your phone, they’ll be with you wherever you are as you’re spending money.

They enable you to almost effortlessly plug in expenses as you incur them. Many also have the capability to link to your bank and other useful options. Thankfully, the days of having to save and add up a pocketful of wrinkled receipts to keep track of where your money’s going are long gone.

The Power of Information

One of the best things about tracking expenses and how it enables you to estimate future expenses is what it tells you about yourself. You may find you spend way more money in a particular area of your life than you ever realized before tracking it.

Perhaps you didn’t know how much all those lattes at the local coffeehouse were adding up to each month. This information can cause you to cut out certain expenditures when you realize that they’re keeping you from saving money toward other things in your life.

If you see you’re spending too much on credit card payments each month, this will help you to see the wisdom of cutting back and paying as you go with cash.

If you have a fair amount of credit card debt that is high interest, you may even want to prioritize paying this debt off above saving money.

Most savings or investment accounts will yield lower interest rates than what you’ll be paying on your credit card debt, so you’ll be losing money by putting it into savings before paying this off.

Most of us have a pretty good handle on our income, which makes tracking our expenses the major obstacle to sound financial budgeting and planning. Follow the tips above to find out where your money is going and have the power at your fingertips to change financial course in your life.

How To Evaluate The Condition Of A Used Car Before Buying It

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The decision to buy a used car can be a stressful one. There are a lot of things to consider and have checked before you spend your hard-earned money. There are some assumed risks a buyer takes on when buying a vehicle that is pre-owned. Finding and purchasing a used car that is trouble-free will take some time and effort. It is important to know how to determine how reliable a used vehicle is before you purchase it and have to spend your hard-earned money fixing unsuspecting mechanical headaches down the road. To make the process a little easier and less risky, below are some tips on how to properly evaluate the condition of a used vehicle before you purchase it.

Evaluating A Used Car:

•Ask For Ownership History- If available, request the ownership history for the vehicle you are considering. Also, take note of the mileage from the odometer and view any available maintenance records.

•Inspect Body- Carefully inspect the body of the vehicle for damage. Note any scratches, chipped paint, dings and any other obvious damage that may need repairing.

•Thorough Test Drive- It is crucial to take a used car for a test drive. Pay close attention to how it handles. Check how well the brakes work, if the car pulls in any specific direction or if there are any noises that are unusual.

•Have Vehicle Inspected- Before purchasing a used car, have it thoroughly inspected by a qualified mechanic of your choosing. They will be able to let you know if the car is worth what the seller is asking for it. Be wary of sellers who encourage you to use their mechanic.

•Vehicle History Report- Ask for a copy of the vehicle’s history report from an independent service. Companies to consider for this tip include AutoCheck and CARFAX. You can use the vehicle identification number to check if the vehicle was involved in any floods or had been rebuilt. These sites can also alert you to odometer fraud.

•Service History- If purchasing a used car from a private seller, ask them if they have maintenance records that you can review. Most car dealerships selling used vehicles will have service records for their customers to review.

•Read All Fine Print- Before you purchase a used car, it is important to fully understand what is covered in the warranty. Read the fine print to see how long you are covered under warranty and if there are any restrictions to be aware of. Some warranties cover specific repairs and some do not.

Safely Buying A Used Vehicle After Evaluating It

When purchasing a used car, especially from a private seller, it is important to take precautions so that you don’t get taken advantage of. Always get the sale in writing before money exchanges hands. It should include a promise of the condition of the vehicle and some evidence proving it, if possible. Any correspondence regarding the sale of a vehicle should be saved. Keeping a secure paper trail on all transactions can save you headaches in the event you were sold a lemon. Pay special attention to any used car listings that speak of new or repaired parts.

Getting Funded- Differences Between Credit Unions And Banks

If considering personal loans for buying a used car, you may be wondering if you should go with a bank or a credit union. Banks and credit unions have their differences and distinguishing between the two can be confusing. The most important difference between the two is that banks are institutions that are for-profit. Credit unions are non-profit organizations.

Other notable differences include banks having higher fees and lower interest rates while credit unions offer lower fees and higher interest rates on their loans. Additionally, it is easier to find a bank nearby than a credit union in some cities. Credit unions often boast better customer service, and banks often have rewards programs, better technology and easy mobile access.

Choosing between a bank or credit union depends on what features work best for you. Consider your priorities including customer service, services offered, banking applications and branch locations. When looking for a loan to buy a used car, you may want to shop around at both banks and credit unions to find the best interest rate offered.

Different Ways To Supplement Your Retirement Income

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Retirement is something that most people look forward to. They think that they will have the time to finally do what they want. However, many people underestimate the amount of money that they need to retire. That is why they may need to supplement their income. There are several things that you can do to supplement your retire income.

Rent out Spare Rooms

If you have an extra room in your home, then you may want to rent it out. Renting out spare rooms is an easy way to bring in some extra money. You can use a website like Airbnb and list your room. All you have to do is set the price, the dates that the rooms will be available and the rules that your renters will have to follow.

Delay Social Security

Social Security can be used to supplement your retirement income. You can draw Social Security at the age of 62, but you will not be able to get the full benefits. You can increase your Social Security by eight percent for every year after the age of 65 if you wait until you are 70. That is why if you can delay your Social Security, then you should consider doing so.

Get a Part-Time Job

Many people who are retired get bored with sitting in the house all day. That is why if you want to make money and fight boredom, then you should consider getting a part-time job. Working 20 to 25 hours a week can significantly boost your monthly income.

Freelance

If you do not want to commit to a part-time job, then you should consider freelancing. You can make money by selling your services if you are a freelance. You can make money by writing, designing graphics, editing videos or translating documents.

There is a great demand for freelancers. There are many websites that allow you to sell your services such as Fiverr. You can also create your own website and promote your services.

Pet-Sit

If you love animals, then you can make money by pet-sitting. There are always people who are looking for someone who can pet-sit. Petsitter and Rover are two of the websites that you will be able to use in order to find a pet-sitting job. You may be able to make over $1,000 per month by pet-sitting.

Take Paid Surveys

One of the easiest things that you can do to make extra money is to take paid surveys. Crashcrate and Inboxdollars are some of the websites that will pay you for taking surveys. You will definitely not get rich from doing this. However, it is a great way to supplement your income.

Make and Sell Things on Etsy

If you are an artsy person, then you can make and selling things on Etsy. This will give you a chance to make money from a hobby that you may have been doing for decades. Etsy is one of the most popular arts and crafts sites. It has over 34 million users. It also brings in $2.8 billion per year. Etsy works in a way that is similar to eBay.

Be a Career Coach

You have spent most of your life building your career. You can make money in your retirement years by helping people make the most of their careers. You can give them tips for preparing for an interview and putting together a resume. You can start your own career coaching business. There is also a platform called The Muse that you can use. The Muse will connect you with people who are in need of career advice.

The Absolute Safest Investments for Your Money

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If you are wanting to get ahead financially, you can’t just depend on your paycheck to do it. Many people are barely getting by, living paycheck to paycheck. Then there are people who know if they are going to get anywhere, they are going to have to live below their means and start putting that money into places that it can work for them.

The problem with that is that many people think they should save that money in their savings accounts, but when savings accounts typically aren’t gaining enough to keep up with inflation, the person is really fooling themselves. In about ten years, that money will have far less buying power than what it has today. So we can hardly call a savings account an investment.

So What Is the Solution?

There is only one way a person can make a stable plan to get ahead. They have to invest their money in something that can grow ahead of inflation. But there are good ways to invest and bad ways. How does one decide on where they should be putting their money to get the best return? A lot of this has to do with time frame and purpose, and there are some general rules that can be used to know best positioning for your finances in terms of keeping them safe.

Diversify, Diversify, Diversify

The first rule for keeping investments safe is diversification. Single stocks and bonds rely heavily on getting in at the right time. Because of this, people generally start with mutual funds.

Investor.gov states, “There are four reasons investors choose mutual funds:

  • Professional Management. The fund managers do the research for you. They select the securities and monitor the performance.
  • Diversification or “Don’t put all your eggs in one basket.” Mutual funds typically invest in a range of companies and industries. This helps to lower your risk if one company fails.
  • Affordability. Most mutual funds set a relatively low dollar amount for initial investment and subsequent purchases.
  • Liquidity. Mutual fund investors can easily redeem their shares at any time, for the current net asset value (NAV) plus any redemption fees.”

Mutual funds give much less of the knee jerk reaction for every directional shift the economy takes. Instead, it may slightly move one way or the other. It allows for the managers of those accounts to only make slight corrections rather than ones that are more drastic.

Timing Is Everything

Some may think that picking a conservative investment means it is going to be the safest, but this isn’t necessarily true. Aggressive and conservative just tell us how fast or slow these investments travel. If it has the ability to travel upward quickly, it also has the ability to travel downward just as quickly.

So an aggressive investment is not an investment for short-term goals. This is because if it has a quick downturn, it is uncertain if there will be time to pull back up.

A conservative investment is not going to travel as quickly. If it has a downturn, it should be relatively small and be able to bounce back more quickly. The problem is that its gains will also be small. So where it is a safer investment for the short term, it has issues in the long term. This is because if an investment is only growing at one-third the rate of inflation, over a ten-year period, it has actually lost a considerable amount of buying power. The money is there, but the money isn’t worth as much.

The Basic Rule for Time Frame

  • 0-1 year: savings account or money market account
  • 1-5 years: very conservative investment, heavy on bonds, very little or no equities
  • 5-10 years: moderate account; half bonds, half equities
  • 10+ years: aggressive account, mostly or all equities

Kent Thune gives a more detailed breakdown of this in his article “3 Mutual Fund Portfolio Examples for 3 Types of Investors”

Again, some will ask how an aggressive account can be safe. The history of the market has never been in decline more than three years in a row, and our economy has continually seen increase over the long term. Because this is the case, an aggressive mix should be viewed as safer than conservative for a long-term investment.

The Roth IRA

One factor with timing is making sure it is where you can get your hands on it when you need to. If it is strictly for a long way off, having it in a tax-qualified account isn’t a bad idea. But since you can’t touch those accounts without a penalty until you are 59 and 1/2, it may not be the best if you think you will ever need it for any reason. There is, however, one exception.

The Roth IRA is a special tool to use when placing investments. This is because it has the ability to be used for a long-term tax-qualified investment, but if you ever run into a tight spot, you are able to pull out the principle that you put in. So if you have invested $20,000 into your Roth IRA, You are able to pull out that $20,000 without penalty. You just can’t touch the growth. There are also special stipulations that can be used to pull out a percentage to be used for educational or first-time home buyer situations.

Think Mutual Fund, Think Safe

There are no guarantees with investing; it does take some risk. Nobody can time the market, and that is what most people are concerned about. So to take the guess work out and simply rely on the rules of time frame and purpose, mutual funds will be the safest place for you to invest.

Labor Day Vacation Tips While On A Budget

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You don’t have to break the bank to take a great family vacation this Labor Day or fall season. The key to staying on a budget means being flexible and finding ways to have fun that don’t cost an arm and a leg. When traveling with your family, it is important to take everyone’s idea of fun into mind before choosing the itinerary. With a little strategic planning in advance, you and your family can plan a getaway this fall season that is cost-effective and budget-friendly.

Look For Non-Popular Destinations To Visit

If you are wanting to plan a budget-friendly family getaway this fall, you can save money by visiting destinations that are less frequented. For example, if you are planning to travel to Europe, look for cities surrounding Paris instead of Paris itself. The idea is to start with a place you would love to visit and find local, more affordable surrounding areas to visit instead.

Instead of staying in the heart of the city, the outskirts are typically more affordable when it comes to accommodations and entertainment. It is more cost-effective to travel to the city during the day for activities than paying for accommodations nearby. Finding more affordable accommodations during your trip will allow you to spend less money overall.

Use Loyalty Programs And Rewards

Another tip for traveling during the fall season on a budget is finding ways to get discounts. If you are an infrequent leisure traveler, you should enroll in a rewards program that will help you get deals and discounts during your trip. Consider finding a credit card to use during your getaway that offers rewards or benefits for certain activities you pay for on your credit card.

You may also consider investing in a loyalty program with a rental company or a hotel chain. Points can quickly add up over time and you may end up receiving a discount for future stays, or even a free visit.

Rely On Apps And Resourceful Websites

Take advantage of comparison websites that allow you to find the best deals on flights, restaurant and hotel accommodations. Sometime you can find a packaged deal that includes airfare, hotel accommodations, and/or a rental cars. You can also go to the city’s website that you want to visit. They might have local deals for accommodations and activities.

With technology, it seems like there is an app for everything. Apps like ParkWhiz or Spot Hero can help you find cheaper parking in certain tourist areas. And, apps like Groupon or Living Social have deals for getaway options as well as local activities. Do a quick free app search and be surprised at what deals you find.

Have An Outdoor Adventure

Planning a trip during the fall opens up more opportunities to plan outdoor adventures. There are many great things you can do with your family outdoors that are great for your budget. Consider traveling to a national park of your choice. The national park system gives families an affordable and wonderful way to visit beautiful landscapes, learn about cultural and geological history, admire wildlife living in their natural habitats and learn to appreciate the wonder of the great outdoors. To make things even better, plan your trip for a day when the national park you choose offers a free day for visitors.

Plan Factory Tours

There are many factories across the country that allows visitors to tour their facilities for a small fee. There are even some that will let you visit for free. If you have children, a behind-the-scenes look at some of these facilities can show them how things they see or eat are made. The best thing about these tours is they often come with free samples and free swag. If you are planning a road trip, consider lining up some factory tours that are consistent with the route you’re taking.

Additionally, many bigger cities have free self-guided tours you can download through an app onto your smartphone. You may also choose to hire a company for a guided tour that will show you some top spots throughout the city you are visiting. Self-guided tours are an interesting way to explore special areas in cities to find hidden gems you may have missed otherwise.

Book Accommodations Early and Look For Low-Cost Carriers

When it comes to flights and hotel accommodations, the best way to get a good deal is by booking as early as possible. When you have children, low-cost carriers such as Southwest are a great option to consider because their average ticket prices are typically lower than other airlines. When looking for tickets and hotel rooms, it is also best to compare the rates to find the most affordable one on the date you plan to visit.

Consider Road-Tripping To Your Destination

Purchasing airline tickets will definitely get you to your destination quicker. However, it can also cost more than other options in certain scenarios. If your heart is not set on flying to your destination, planning out a road trip can be a more cost-effective and less stressful alternative. When your desired destination is a driving distance away, it is often more affordable to travel by car, especially when you have multiple family members.

Aside from the cost benefits, a road trip can offer more advantages including pit stops at attractions and visiting some hidden gems along the route. With kids, the ability to stop regularly allows them to get up and move around to release any pent-up energy they might have. Many parents agree that traveling with kids is easier on a road trip than flying.

Stock Up On Supplies

To reduce some of your out-of-pocket expenses while on your fall trip, bring a stash of snacks, toys and books to keep everyone entertained while traveling. Eating out while traveling can get very expensive, even when you stop for snacks. Bringing your own food can save you from having to buy expensive meals when you don’t have to. When you pack meals or snacks for a road trip or flight, you will save money and be guaranteed food to eat when you are hungry. In some cases, you may have to wait for a flight attendant to bring you food or it may not be available at all.