Before you begin your journey to financial freedom, it is beneficial to discover and reflect on the reasons why you spend. Uncovering the emotions behind each acquisition may help you stop overspending in its tracks.
Category Archives: Uncategorized
Mobile Deposits: What Do I Do with Checks After They’re Deposited?
Technology has made depositing a check easier than ever. Gone are the days of driving to the bank and waiting in line just to get your money into your account. With the push of a button, your bank receives a picture of your check and the money appears in your account shortly after. Continue reading
The Difference Between a Personal Check and a Cashier’s Check
The majority of our banking transactions are now completed digitally, using a credit or debit card or a digital and mobile banking app. Even in today’s environment, you may need to submit a check to complete a sale, and it’s crucial to know the differences between the numerous sorts of checks you’ll come across.
We make it easy to know the key differences between cashier’s checks and personal checks. Keep on reading to find out more! Continue reading
Old School Personal Finance Habits That Still Work
Among the flurry of “new year, new me” sentiments, there’s one thing that often gets overlooked: the value of tried and true. There’s a lot of outdated advice in the world of personal finance — things your grandparents believed that maybe don’t apply so much anymore. However, there are a number of old-school personal finance habits that still test true.
Continue reading
Economical Chronicles: 5 Tips for Frugal Living
Whether you’re a young college student just getting started with adult life, someone in their 30s or 40s raising a family, or even in your middle age or beyond, there are always benefits to living frugally.
Continue reading
Benefits of Encouraging Your Teen to Work
Many parents are reluctant to encourage their teenagers to find a job. They worry it will be a challenge for teens to juggle work and school. However, this dynamic might actually teach them balance and better equip them with a sense of responsibility.
There’s a lot your teen can gain from a part-time job – and that’s not just extra spending money. Continue reading
Personal Finance In Your 30s
Your 30s can be an exciting time. Many people in this age group are enhancing their careers, getting married, starting families and buying homes for the first time. This is also a time to re-think how you manage your finances. There are several things that you can do to get your money in order while you are in your 30s. Continue reading
Working During Your Vacation: Finding the Balance
These days, people often talk about work/ life balance. It’s an easy thing in theory to understand, but often difficult in practice to implement. This holds especially true when you’re on vacation. Granted, sometimes it’s unavoidable to not work while you’re on break.
If you have an upcoming vacation and you know that you’ll have a hard time maintaining your work/ life balance while you’re gone, here are some pointers to help you spend more of your vacation vacationing and less of it working.
These three tips help you set up the systems that you need to set up before you go in order to achieve more balance on vacation. They also help you to establish some work safety nets so to speak so that if it’s truly an emergency, your clients are still taken care of even if you’re not there. Continue reading
Working From Home: Creating a Productive Space
More people today work from home than ever before. The Internet has made this scenario possible. Connect with colleagues without a physical commute. The career possibilities are almost endless.
However, you don’t just show up to a standard office anymore. You must create one yourself. Take a few tips from the experts as you build an office that reflects personality and productivity. Working from home can be a thrill with these office suggestions. Continue reading
Warning Signs That Your Debt Is Getting Out Of Control
If you’re like most folks in the United States, you may have some debt. For may people, some debt is fine. But for others, it can be a real financial burden. Is your debt getting out of control? Read further to see if it it and learn about some tips for getting your debt back in check.
Warning Signs for People With Debt
The following symptoms or conditions may indicate your debt is out of control:
- Your debt is causing you stress, even to the point of losing sleep.
- You are not saving regularly from you paycheck because you need the money to finance your debt.
- Your emergency fund has run out and your debt is still out of control.
- You use your credit cards to pay off debt and now they are maxed out.
If these or other emotionally painful experiences are haunting you, you may need to get a better handle on your debt situation.
Types of Debt
Everyone is different so that means that there is no one hard-and-fast rule regarding how much debt is too much for any one individual or family. Nonetheless, it is often useful to think in terms of three types of debt: Good Debt, Bad Debt, and Toxic Debt. Let’s examine these:
- Good Debt: Debt that is taken on to buy something that generally increases in value, such as a home or business.
- Bad Debt: Loans taken on at very high interest to buy things that decrease in value or are rapidly used up.
- Toxic Debt: Debt with sky-high interest rates and/or debt you simple cannot afford.
Debt/Income Ratio
A good yardstick to use when thinking about your debt is your Debt/Income Ratio. If it is 15% or less, you are likely using debt wisely. If it is greater than 50%, you are likely having a problem with too much debt. What is your Debt/Income Ratio?
Tips for Effectively Managing Your Debt
Here are some useful tips to keep in mind when considering taking out a loan for several common needs or wants:
- Housing: Limit your housing costs to 35% of your income or less. If it is too high, consider refinancing your mortgage.
- Cars and Other Vehicles: Most experts suggest that car loan expense should remain below 20% of your take-home pay. If your debt level is beyond this consider refinancing or buy a less expensive vehicle.
- College and Other Education: Here’s a simple rule: Don’t borrow unless you have to! If you need to finance your college or trade-school education, take on no more debt than you expect to earn in your first year working after college.
In conclusion, debt can be a good thing or a real detriment to your financial well being. By considering the type of debt you are incurring, and by calculating your Debt/Income Ratio, you may be better able to assess your risks. Above all, stay away from Bad Debt and especially Toxic Debt.