How to Prevent Arguments About Finances

How to Prevent Arguments About Finances.

Money and finances are one of the most common sources of conflict for couples. Money problems can stem from not being open about your finances and having differing views of how money should be spent. To help prevent fights about finances, discuss each other’s views about money, come to a compromise that respects both your values, communicate about your finances openly, and set goals to help keep your finances in order.



Method 1 Discussing Your Views About Money.

1. Talk about your view on money. One of the money problems that arises between couples is due to their differing position on money. Some people are spenders and others are savers. These two mindsets can strongly clash. To help get past this problem, you should talk about these differences.

During this discussion, talk about whether you are a saver or spender.

Having open communication about your ideas and feelings on money can help you start to solve or eliminate problems.

For example, you may say, "I believe that money is hard-earned and should be enjoyed." Alternately, you may say, "Saving money is important to me. We work too hard for it to spend it often."

2. Discuss what money means to you. Often, the arguments about finances aren’t about money specifically, but about what money means to the people in the relationship. To help prevent any financial arguments, you and your partner should explain to each other what money means to you and what it signifies. This can help you understand each other.

For example, you may think that saving money means safety and security. You may think that saving money or spending it can show love and affection. Saving money may make you feel in control and like you have power.

You may feel that you deserve to spend your hard earned money on yourself, or you may feel that you deserve to save your hard earned money for future plans.

Determine if you or your partner use money as a way to measure success, status, or keep score with others.

Make sure to discuss any fears you have about money and the way that your family approached money growing up.

For example, you may say, "Saving money makes me feel safe. When we were growing up, we had no money, so having a savings account helps me feel like I'm taking care of my family."

3. Acknowledge your differences about money with an open mind. After you have discussed what money means to both of you, you should use the opportunity to understand each other’s position and ideas about money. You should not point fingers or try to make one of your right and wrong. There is nothing wrong with having different values about money. You have to work towards understanding, accepting, and compromising.

For example, work on understanding why your partner feels that spending money is something they have earned and deserved. Try to see how saving money makes your partner feel in control and safe.

Both you and your partner are two different people, which means you are not going to have the same opinions about everything. Communicating about your ideas of money can help prevent and avoid misunderstandings.

If your partner has illogical, irresponsible, or contradictory ideas about money, that is a separate issue. You want to accept different ideas about money, yet help your partner work through illogical money ideas that may harm your family.

Try saying, "I understand that you want to save money though I like to treat myself for my hard work. Can you explain to me why saving money is so important to you? I will explain to you why I think we deserve to spend some of our money."

4. Compromise with both of your sets of values. After you have figured out what each of you feels about money, you can then work on a compromise. Compromise means you both stay positive as you find a way to negotiate both of your values. Find some common ground that benefits you both. You should work on finding ways for both of your to compromise equally so one person isn’t giving up more than the other.

For example, you may come to a compromise where you set aside money each month to spend on yourself while your partner sets aside a similar amount to save. You both can come to an agreement on what things are considered special splurge purchases, and decide what you want to save money on to purchase or invest in in the future.

5. Take a break and come back to the discussion. If you and your partner are discussing money and start arguing or yelling, stop the conversation and go do something else. Stepping away for a moment will help you and your spouse have time to calm down and think more logically about what has been said.

You and your partner will not always agree about money. However, it is crucial that you learn how to compromise so you can meet everyone’s needs and address each other’s concerns.



Method 2 Communicating Effectively About Finances,

1. Be open about your finances. One way to help prevent arguments about money is the be open about your finances with your partner. This helps each of you be on the same page, so you won’t be keeping secrets about money or lying about money. These behaviors can cause problems and arguments.

When your relationship gets to the point where you start sharing bills and financial responsibilities, you should be open about all of your finances. This includes your debt, income, and financial obligations.

Tell your partner, "I want to share my finances with you. I have some student loan debt, a car payment, and two credit cards."

2. Keep your partner in the loop. You should share vital financial information with your partner so that you both stay informed of each other’s financial situation. This includes any changes to your income, tax returns, and credit reports. This helps maintain honesty and communication between you, and you can avoid potential problems if you keep something from your partner.

This often happens at the beginning of a partnership, when you let your partner know your financial situation. However, you should continue doing this throughout the relationship, especially if things change significantly.

For example, you may say, "My credit report has changed recently due to my recent bill payments. I'd like to go over what changed the credit report with you."

Another way to prevent arguments is to agree to text or call if you are thinking of purchasing something over an agreed upon spending limit, such as $100. If you or your partner is out shopping and finds something above the agreed upon limit, then sending a quick text or making a quick phone call may prevent an argument later on.

3. Establish weekly money talks. Another way to help prevent fights about money is to discuss any minor problems before they can turn into something worse. Getting together with your partner once every week or two to discuss the budget and any minor problems can help keep the lines of communication open and help prevent fights.

For example, you may get together and discuss how one of you spent more on groceries than was budgeted, or another minor financial problem. Addressing the problems early can help prevent the small things from turning into major problems.

You may say things like, "We went over the budget on groceries, but by cutting a few corners, we can adhere to it next month."

4. Talk about how you will approach helping out family. Many people help out family members financially. However, this can cause a lot of problems and arguments. To help prevent this, talk about what you and your partner want to do about helping out family members so you have a procedure in place.

For example, you may decide to help out a family member up to a certain dollar amount or a certain number of times each year. You may decide that you want to help out certain family members but not others. Discuss these issues with your partner and come up with a solution that you both can handle.

You may say, "I understand that your parents struggle, but we can only afford to help them for this set amount of money three times each year."



Method 3 Setting Financial Goals.

1. Create a budget. Budgets can help prevent a lot of arguments about money. Budgets create a solid plan for your money so there won’t be any questions or confusion about where the money goes and when. Budgets give you and your partner a guide to help stay on track where money is concerned.

If one partner has trouble adhering to the budget, you can look at the numbers and find areas that need improvement or adjustment.

Make sure to budget in money for extra purchases, such as an impulse buy or going out to dinner.

Include each of your money interests in the budget. If you like to spend money but your partner likes to save, budget those things in each month.

If budget has a negative connotation, consider calling it a “spending plan” instead of budget.

2. Share financial tasks. To help keep the financial responsibilities even and a joint effort, come up with a way share tasks and assign a duty to each person. This helps take all the pressure off one person and lets you work together to manage your finances.

For example, you may pay the bills while your partner makes and maintains the budget. You may focus on the savings account while your partner invests money.

3. Come up with long term goals. Figure out what your long term goals are for your money. Do you want to invest? Are you saving for a new car or house? Are there kids in the future? Do you want to take vacations? Each of these future plans are important. You should discuss what you and your partner want in the future and come up with a way to approach it.

Most of these purchases require pre-planning and saving. Prioritize what you want to save your money for.

4. Approach finances as a team. To help keep your finances running smoothly and eliminate any potential conflicts, work on your finances as a team. Even though one person may be in charge of the budget or paying the bills, you should talk about these ideas and sit down once a month to discuss the month’s finances.

You may decide to pay bills together and do the budget together instead of assigning the task. You may also switch back and forth and do a different financial task each month.

5. Consider having separate accounts. If finances and spending habits are a frequent source of frustration in your relationship, then you and your partner might consider setting up separate bank accounts and just maintain a joint account for your shared bills and savings. This may help to prevent arguments about finances if you each have a set amount of money to spend on whatever you want each month.

6. Seek professional help. If you and your partner fight too often about finances, you can seek professional help. You may want to visit a therapist who specializes in resolving conflicts in relationships. This can help you get past any barriers and help you learn how to compromise.

You may also want to visit a financial planner. Financial planners can help you figure out how to budget and compromise on financial issues.

February 25, 2020

how to prevent arguments about finances

How to Prevent Arguments About Finances.

Money and finances are one of the most common sources of conflict for couples. Money problems can stem from not being open about your finances and having differing views of how money should be spent. To help prevent fights about finances, discuss each other’s views about money, come to a compromise that respects both your values, communicate about your finances openly, and set goals to help keep your finances in order.



Method 1 Discussing Your Views About Money.

1. Talk about your view on money. One of the money problems that arises between couples is due to their differing position on money. Some people are spenders and others are savers. These two mindsets can strongly clash. To help get past this problem, you should talk about these differences.

During this discussion, talk about whether you are a saver or spender.

Having open communication about your ideas and feelings on money can help you start to solve or eliminate problems.

For example, you may say, "I believe that money is hard-earned and should be enjoyed." Alternately, you may say, "Saving money is important to me. We work too hard for it to spend it often."

2. Discuss what money means to you. Often, the arguments about finances aren’t about money specifically, but about what money means to the people in the relationship. To help prevent any financial arguments, you and your partner should explain to each other what money means to you and what it signifies. This can help you understand each other.

For example, you may think that saving money means safety and security. You may think that saving money or spending it can show love and affection. Saving money may make you feel in control and like you have power.

You may feel that you deserve to spend your hard earned money on yourself, or you may feel that you deserve to save your hard earned money for future plans.

Determine if you or your partner use money as a way to measure success, status, or keep score with others.

Make sure to discuss any fears you have about money and the way that your family approached money growing up.

For example, you may say, "Saving money makes me feel safe. When we were growing up, we had no money, so having a savings account helps me feel like I'm taking care of my family."

3. Acknowledge your differences about money with an open mind. After you have discussed what money means to both of you, you should use the opportunity to understand each other’s position and ideas about money. You should not point fingers or try to make one of your right and wrong. There is nothing wrong with having different values about money. You have to work towards understanding, accepting, and compromising.

For example, work on understanding why your partner feels that spending money is something they have earned and deserved. Try to see how saving money makes your partner feel in control and safe.

Both you and your partner are two different people, which means you are not going to have the same opinions about everything. Communicating about your ideas of money can help prevent and avoid misunderstandings.

If your partner has illogical, irresponsible, or contradictory ideas about money, that is a separate issue. You want to accept different ideas about money, yet help your partner work through illogical money ideas that may harm your family.

Try saying, "I understand that you want to save money though I like to treat myself for my hard work. Can you explain to me why saving money is so important to you? I will explain to you why I think we deserve to spend some of our money."

4. Compromise with both of your sets of values. After you have figured out what each of you feels about money, you can then work on a compromise. Compromise means you both stay positive as you find a way to negotiate both of your values. Find some common ground that benefits you both. You should work on finding ways for both of your to compromise equally so one person isn’t giving up more than the other.

For example, you may come to a compromise where you set aside money each month to spend on yourself while your partner sets aside a similar amount to save. You both can come to an agreement on what things are considered special splurge purchases, and decide what you want to save money on to purchase or invest in in the future.

5. Take a break and come back to the discussion. If you and your partner are discussing money and start arguing or yelling, stop the conversation and go do something else. Stepping away for a moment will help you and your spouse have time to calm down and think more logically about what has been said.

You and your partner will not always agree about money. However, it is crucial that you learn how to compromise so you can meet everyone’s needs and address each other’s concerns.



Method 2 Communicating Effectively About Finances,

1. Be open about your finances. One way to help prevent arguments about money is the be open about your finances with your partner. This helps each of you be on the same page, so you won’t be keeping secrets about money or lying about money. These behaviors can cause problems and arguments.

When your relationship gets to the point where you start sharing bills and financial responsibilities, you should be open about all of your finances. This includes your debt, income, and financial obligations.

Tell your partner, "I want to share my finances with you. I have some student loan debt, a car payment, and two credit cards."

2. Keep your partner in the loop. You should share vital financial information with your partner so that you both stay informed of each other’s financial situation. This includes any changes to your income, tax returns, and credit reports. This helps maintain honesty and communication between you, and you can avoid potential problems if you keep something from your partner.

This often happens at the beginning of a partnership, when you let your partner know your financial situation. However, you should continue doing this throughout the relationship, especially if things change significantly.

For example, you may say, "My credit report has changed recently due to my recent bill payments. I'd like to go over what changed the credit report with you."

Another way to prevent arguments is to agree to text or call if you are thinking of purchasing something over an agreed upon spending limit, such as $100. If you or your partner is out shopping and finds something above the agreed upon limit, then sending a quick text or making a quick phone call may prevent an argument later on.

3. Establish weekly money talks. Another way to help prevent fights about money is to discuss any minor problems before they can turn into something worse. Getting together with your partner once every week or two to discuss the budget and any minor problems can help keep the lines of communication open and help prevent fights.

For example, you may get together and discuss how one of you spent more on groceries than was budgeted, or another minor financial problem. Addressing the problems early can help prevent the small things from turning into major problems.

You may say things like, "We went over the budget on groceries, but by cutting a few corners, we can adhere to it next month."

4. Talk about how you will approach helping out family. Many people help out family members financially. However, this can cause a lot of problems and arguments. To help prevent this, talk about what you and your partner want to do about helping out family members so you have a procedure in place.

For example, you may decide to help out a family member up to a certain dollar amount or a certain number of times each year. You may decide that you want to help out certain family members but not others. Discuss these issues with your partner and come up with a solution that you both can handle.

You may say, "I understand that your parents struggle, but we can only afford to help them for this set amount of money three times each year."



Method 3 Setting Financial Goals.

1. Create a budget. Budgets can help prevent a lot of arguments about money. Budgets create a solid plan for your money so there won’t be any questions or confusion about where the money goes and when. Budgets give you and your partner a guide to help stay on track where money is concerned.

If one partner has trouble adhering to the budget, you can look at the numbers and find areas that need improvement or adjustment.

Make sure to budget in money for extra purchases, such as an impulse buy or going out to dinner.

Include each of your money interests in the budget. If you like to spend money but your partner likes to save, budget those things in each month.

If budget has a negative connotation, consider calling it a “spending plan” instead of budget.

2. Share financial tasks. To help keep the financial responsibilities even and a joint effort, come up with a way share tasks and assign a duty to each person. This helps take all the pressure off one person and lets you work together to manage your finances.

For example, you may pay the bills while your partner makes and maintains the budget. You may focus on the savings account while your partner invests money.

3. Come up with long term goals. Figure out what your long term goals are for your money. Do you want to invest? Are you saving for a new car or house? Are there kids in the future? Do you want to take vacations? Each of these future plans are important. You should discuss what you and your partner want in the future and come up with a way to approach it.

Most of these purchases require pre-planning and saving. Prioritize what you want to save your money for.

4. Approach finances as a team. To help keep your finances running smoothly and eliminate any potential conflicts, work on your finances as a team. Even though one person may be in charge of the budget or paying the bills, you should talk about these ideas and sit down once a month to discuss the month’s finances.

You may decide to pay bills together and do the budget together instead of assigning the task. You may also switch back and forth and do a different financial task each month.

5. Consider having separate accounts. If finances and spending habits are a frequent source of frustration in your relationship, then you and your partner might consider setting up separate bank accounts and just maintain a joint account for your shared bills and savings. This may help to prevent arguments about finances if you each have a set amount of money to spend on whatever you want each month.

6. Seek professional help. If you and your partner fight too often about finances, you can seek professional help. You may want to visit a therapist who specializes in resolving conflicts in relationships. This can help you get past any barriers and help you learn how to compromise.

You may also want to visit a financial planner. Financial planners can help you figure out how to budget and compromise on financial issues.

February 11, 2020

How to Start a New Life with No Money

How to Start a New Life with No Money.

Starting a new life can be a great opportunity to make refreshing choices and decisions. However, doing so with no money can present a bit of a challenge as well. To make the most of your new life, start by creating a list of goals and keeping a positive mindset. Learn more about saving and your spending habits. Get a job to bring in additional income and reach out to your friends and family for assistance, if needed.

Method 1 Deciding How You Want to Live.
1. Be clear on why you are starting over. Spend some time determining whether or not you are creating a new life out of necessity or desire. If this is a choice based out of need, then you’ll want to identify what life improvements you will need to make as well. If you are making a decision based out of want, then carefully consider what your ideal life looks like.
For example, if you are starting a new life because you need some space from negative family members, then you might include limiting contact with these persons as part of your plans.
Or, if you are starting a new life because you want a challenge and some excitement, then you might consider placing yourself in a unusual circumstance, such as living in a foreign country.
2. Make any moving plans, if necessary. You may need to move to a new apartment or house in order to truly start over in the same city. Or, you may need to head out of the country entirely. Do as much research as you can online to determine the best way to use your limited funds. Look for locations where the cost of living is cheap and jobs are plentiful.
Find locations with affordable living options by selecting cities and then searching online for rent and food expense estimates. For example, in the Cook Islands you can find an apartment to rent for $130 a month.
3. Decide who to keep in contact with. Starting over can mean severing some personal ties, but it doesn’t always require breaking your bonds with your loved ones. Go through a list of all of your friends and family and determine what place they should have in your new life, if any at all. You’ll also want to consider how you will break the news to everyone that you’ve decided to start over, or if you will just stay silent about your choices.
For example, if you are trying to rebuild your finances and you have a relative who has a tendency to be a bad financial influence, then you will need to determine if you should continue to interact with them moving forward.
4. Keep a goal journal. Spend at least 15 minutes a day writing and thinking about your current situation and editing your goals. Try to create goals for a month, for one year out, for five years out, and for ten years out. Reassess your goals on a regular basis and change them if you need to. Make sure that your goals closely align with what type of life you’d like to lead in the future.
For example, you might write, “I would like to have $500 saved by the end of the year.” This will help you to be more financially stable, so it will likely fit with your lifestyle choices, too,
Make sure to think both big and small when setting your goals. Don’t be afraid to push for a goal that seems a long-shot.
5. Break down each goal into a series of actionable steps. Consider exactly what actions you’ll need to take for each goal and write them down as a sequence. As you decide to tackle that particular goal, look at this list as a reference. This will make larger goals seem more possible. This, in turn, will make you feel more in control of potentially difficult situations.
For example, if you plan to save money, then you’ll probably need to start by monitoring your spending or perhaps opening a savings account.
6. Seek out exciting, new experiences. It can be easy to get bogged down in the unknown or the unusual when you are starting over. Instead, force yourself to use positive adjectives when describing what you are experiencing. Change from using “weird” to “exciting,” for example. If you feel yourself getting too anxious, tell yourself to open your eyes and find one thing positive about your new environment.
For example, try to seek out the natural beauty of an area. Look for how the birds fly in the sky or how the sunlight comes through the trees. If you are stuck in an office all of the time, you can even print out these images and place them around you.
7. Give yourself positive encouragement. Starting over takes time and a great deal of work. Don’t expect everything to be in order overnight. Instead, be gentle with yourself and acknowledge all of your victories, even the small ones. Tell yourself throughout the day, “You are doing good.” Give yourself compliments as often as possible.
It is helpful to see your life as a book. This is just one chapter of many and does not necessarily tell you what the end will be. You are still writing it out.
You will also need to be watchful when you fail, so that you don’t let these moments set you too far off course. For example, if you make a poor spending choice with your limited funds, see if you can correct it as quickly as possible.

Method 2 Rebuilding Your Financial Life.
1. List out your debts. Take out a piece of paper or open up a spreadsheet on your computer. Write down all of the details regarding your debts. Include information about required payment amounts, due dates, and interest percentages. Update this list often and mark off the debts as you pay them off.
This will also allow you to see which debts need to be paid off first and which ones can come later. For example, it is always a good idea to pay off high interest credit card charges as soon as possible.
One entry on your list might look like, “American Express Card, $1,800 balance, 18% percent interest rate, $25 minimum payment per month.”
2. Develop a savings plan. Even without any money at present, it is still a good idea to consider what you will do with cash when you have it. Your goal should be to move away from a lifestyle that involves surviving paycheck to paycheck. This could mean finding a job and moving a certain percentage of pay into a savings account each month. This could also mean spending some time learning about saving on a site such as Learnvest.
There are also some handy spending “tricks” that you can learn, such as setting aside the change from your checking transactions using an app, such as Qapital.
3. Choose a thrifty lifestyle. Make a decision to pursue frugal, but safe, accommodations. If you are moving, select a location that will allow you to live in a thrifty way. Look into the cost of living numbers and consider the benefits of living within a city versus in a rural area, for example. You can also investigate saving money on transportation by forgoing a car.
For example, Panama is one location where you can live comfortably for around $300 a month.
4. Find a job. If do not have a paid position, then look for one by creating a solid resume. It might help for you to list out all of your skills before you begin applying for positions. You could contact a temp agency as well or just browse the job sites on your own. Make sure that you only apply for legitimate work opportunities.
You might also consider putting your skills to work by creating a business.
5. Create back-up plans. Without a financial safety net, there are many moments in life that you will need to navigate carefully. You’ll feel less anxious if you create at least one back-up plan for all of the major decisions and actions that you take. Try to think about both worst and best case scenarios.
For example, if you are saving money by cycling to work and your bicycle breaks down, what will you do? You might want to investigate public transportation as a back-up option.
6. Talk with a financial advisor. Go online and enter your city and “financial advisor.” Then, contact each advisor and ask if they offer any fee-free assistance. If they do, make an appointment and bring all of your financial paperwork with you to the meeting. They may also ask that you attend a financial support group with some of their other clients.
You can also find a forum for financial advice online and ask the members for tips on savings and tracking spending.

Method 3 Getting Help From Others.
1. Take advantage of government programs. Talk to government officials in your area to see if there are any assistance programs available to you. Consider these programs a temporary way to give your finances a boost in order to prepare you for future success. Make sure to follow all guidelines involved with the program.
For example, there are many government grants available to small business owners. Some of these grants can help you to start over with a new business even if you lack the initial funding. Check with the Small Business Association (SBA) for more details.
2. Ask your friends and family for help. Tell your friends and relatives about your goals and your plans to start over. See if they have any suggestions or advice. They might also be able to provide you will additional resources, financial or otherwise, to help you get on your feet.
Be aware that your story and choices may also help others to make positive changes in their own life. For example, you might have a friend who is struggling with credit card debt and could use any information that you learn about paying it down.
When talking to your friends and family members you might say, “I have very little money to work with, but I’m planning to get a job in an industry that guarantees regular pay and insurance as well.”
3. Consider staying with friends. Living expenses can very quickly destroy your budget and ability to save. If you have a friend or family member who is willing to let you “couch surf” for a while, you might consider this as a viable option. It will allow you to save up money and give you enough time to find a living situation that suits your frugal lifestyle.
You may also find that you are not the only person living in someone else’s home, especially in big cities. It is quite common for people to open their home’s to others searching for paid work in crowded, competitive areas.
4. Make lots of professional contacts. Every time that you talk with someone, try to consider how they could work as a professional contact for you. This may sound mercenary, but considering these connections can also make it possible for you to help them as well. When you are out in public, try to talk with the people that you encounter and be friendly as often as possible.
For example, if you are a waiter looking for work it never hurts to talk with the wait staff when you eat out at restaurants. They may be able to give you some tips regarding looking for a job in that area.
5. Talk with a therapist. Go online and enter your city and “therapist” into a search engine. Contact these professionals to see if any of them offer free sessions or group therapy. If so, this can be a great way for you to explore your past choices and how you can make changes for the present. In a support group, you can also find people who can be your friends in your new life.

Community Q&A.

Question : What if I hate my field and would definitely be required to get a degree I can't afford to get to be hired at the very bottom of the only field I think I might not be miserable in?
Answer : Some public libraries and business organizations offer free courses in many fields, with certificates upon completion. They could be classes that would be included to earn a degree and may become transferable college credit. A certificate could be the beginning to getting your foot in the door. Add to the certificate some volunteer work experience in the field. Submit this on your resume and gain contacts from your free certificate training and volunteer experiences that you might want to use for job references. Talk with your new contacts for tips on how they got started. Present all these at the interview for an entry position in your new field of work.

Tips.

When you are starting over it might be tempting to work all of the time, but make sure to give yourself breaks as well

June 02, 2020

How to Be Smart with Money

How to Be Smart with Money.

Being smart with money doesn’t have to involve high risk investments or having thousands of dollars in the bank. No matter what your current situation is, you can be more financially savvy in your everyday life. Start by building a budget to help you stay within your means and prioritize your financial goals. Then, you can work on paying down your debt, building up your savings, and making better spending decisions.

Method 1 Managing Your Budget.
1. Set your financial goals. Understanding what you are working toward will help you build a budget to meet your needs. Do you want to pay down debt? Are you saving for a major purchase? Are you just looking to be more financially stable? Make your top priorities clear so that you can build your budget to fit them.
2. Look at your overall monthly income. A smart budget is one that doesn’t overextend your means. Start by calculating your total monthly income. Include not just the money you get from work, but any cash you get from things like side-hustles, alimony, or child support. If you share expenses with your partner, calculate your combined income to figure out a household budget.
You should aim to have your overall monthly spending not exceed what you bring in. Emergencies and unforeseen occasions happen, but try to set a goal of not using your credit card to cover non-necessary items when your bank accounts are low.
3. Calculate your necessary expenses. Your first priority in building a better budget should be those things that need to be paid every month. Paying these expenses should be your first priority, as these items are not only necessary for daily function, but could also damage your credit if you fail to pay them in full and on time.
Such expenses may include your mortgage or rent, utilities, car payments, and credit card payments, as well as things like your groceries, gas, and insurance.
Set your bills up on autopay to make them easy to prioritize. This way, the money comes right out of your account on the day the bill is due.
4. Factor in your non-essential expenses. Budgets work best when they reflect your daily life. Take a look at your regular, non-essential expenses and build them into your budget so that you can anticipate your spending. If you get a coffee every morning on the way to work, for example, throw that in your budget.
5. Look for places to make cuts. Creating a budget will help you identify things you can cut from your regular expenses and roll into your savings or debt payments. Investing in a good coffee pot and a quality to-go mug, for example, can really help you save long-term on your morning fix.
Don’t just look at daily expenses. Check things like your insurance policies and see if there are places you can scale back. If you are paying for collision and comprehensive insurance on an old car, for example, you may opt to scale back to just liability.
6. Track your monthly spending. A budget is a guideline for your overall spending habits. Your actual spending will vary each month depending upon your personal needs. Track your spending by using an expenses journal, a spreadsheet, or even a budgeting app to help you ensure that you are staying within your means each month.
If you do mess up or go over your budget goals, don’t beat yourself up. Use the opportunity to see if you need to revise your budget to include new expenses. Remind yourself that getting off-target happens to everyone occasionally, and that you can get to where you want to be.
7. Build some savings into your budget. Exactly how much you save will depend upon your job, your personal expenses, and your individual financial goals. You should aim to save something each month, though, whether that’s $50 or $500. Keep that money in a savings account separate from your primary bank account.
This savings should be separate from your 401(k) or any other investments that you have. Building a small general savings will help you protect yourself financially if an emergency comes up, such as a major repair around the house or unexpectedly losing your job.
Many financial experts recommend a target savings of 3-6 months’ worth of expenses. If you have a lot of debt you need to pay down, aim for a partial emergency fund of 1-2 months, then focus the rest of your cash on your debt.

Method 2 Paying Off Debts
1. Figure out how much you owe. To understand how to best pay down your debt, you first need to understand how much you owe. Add together all your debts, including credit cards, short-term loans, student loans, and any mortgages or auto financing you have in your name. Look at your total debt numbers to help you understand how much you owe, and how long it will truly take to pay it off.
2. Prioritize high-interest debts. Debts like credit cards tend to have higher interest rates than things like student loans. The longer your carry a balance on high interest debts, the more you ultimately pay. Prioritize paying down your highest interest debts first, making minimum payments on other debts and putting extra money into your top debt priorities.
If you have a short-term loan like a car title loan, prioritize paying that down as quickly as possible. Such loans can be devastating if not paid off in full and on time.
3. Go straight from paying off one debt to the next. When you pay off one credit card, don’t roll that payment amount back into your discretionary funds. Instead, roll the amount you were paying into your next debt.
If, for example, you finished paying down a credit card, take the amount you were putting toward your credit card and add it to the minimum payment for your student loans.

Method 3 Setting Up Savings.
1. Pick a savings goal. Saving tends to be easier when you know what you’re saving for. Try to set a goal, such as building an emergency fund, saving for a down payment, saving for a major household purchase, or building a retirement fund. If your bank will let you, you can even give your account a nickname such as “Vacation Fund” to help remind you of what you’re working toward.
2. Keep your savings in a separate account. A savings account is generally the easiest place to put your savings if you are just starting out. If you already have a solid emergency fund and have a reasonable amount to invest, such as $1,000, you may consider something like a certificate of deposit (CD). CDs make your money much harder to get to for a fixed period of time, but tend to have a much higher interest rate.
Keeping your savings separate from your checking account will make it harder to spend your savings. Savings accounts also tend to have a slightly higher interest rate than checking accounts.
Many banks will allow you to set up an automatic transfer between your checking and savings accounts. Set up a monthly transfer from your checking to your savings, even if it’s just for a small amount.
3. Invest raises and bonuses. If you get a raise, a bonus, a tax return, or another unexpected windfall, put it in your savings. This is an easy way to help boost your account without compromising your current budget.
If you get a raise, invest the difference between your budgeted salary and your new salary directly into your savings. Since you already have a plan to live off your old salary, you can use the new influx of cash to build your savings.
4. Dedicate your side gig money to your savings. If you work a side gig, build a budget based on your primary source of income and dedicate all your earnings from your side gig to your savings. This will help grow your savings faster while making your budget more comfortable.

Method 4 Spending Money Wisely.
1. Prioritize your needs. Start each budget period by paying for your needs. This should include your rent or mortgage, utility bills, insurance, gas, groceries, recurring medical expenses, and any other expenses you may have. Do not put any money toward non-necessary expenses until all of your necessary living costs have been paid.
2. Shop around. It can be easy to get in the habit of shopping in the same place repeatedly, but taking time shop around can help you find the best deals. Check in stores and online to look for the best prices for your needs. Look for stores that might be running sales, or that specialize in discount or surplus merchandise.
Bulk stores can be useful for buying things you use a lot of, or things that don't expire such as cleaning supplies.
3. Buy clothes and shoes out-of-season. New styles of clothes, shoes, and accessories generally come out seasonally. Shopping out-of-season can help you find better prices on fashion items. Shopping online is particularly useful for out-of-season clothes, as not all stores will have non-seasonal items.
4. Use cash instead of cards. For non-necessary expenses such as going out to eat or seeing a movie, set a budget. Withdraw the necessary amount of cash before you go out, and leave your cards at home. This will make it more difficult to overspend or impulse buy while you're out.
5. Monitor your spending. Ultimately, as long as you're not spending more than you bring in, you're on target. Regularly monitor your spending in whatever way works best for you. You may prefer to check your bank account every day, or you could sign up for a money-monitoring app such as Mint, Dollarbird, or BillGuard to help you track your spending.

April 11, 2020

how to organize your personal year end finances

How to Organize Your Personal Year End Finances.

You should never organize your year-end finances all at once. Rather, you should be engaged in a steady process of organizing and reorganizing your financial documents and information throughout the year. The process you use when organizing at the end of the year will be basically the same process you use monthly or quarterly to evaluate your investments, insurance, and budget. Use the year-end financial organizational process to get the opinion of a financial planner to help you streamline your finances, identify areas of waste, and take corrective actions to save money.

Method 1 Getting Organized.

1. Select your organizational categories. Knowing how to organize your financial documents can be tough. Thinking broadly about the sorts of documents you ought to organize for your year-end finances will help the process move along smoothly. Some documents might need to be copied and placed in multiple locations. For instance, education loan payments might need to be in a “loans” folder and also a “taxes” folder. Depending on what sort of financial documents you have, you may or may not need folders devoted to each of the main financial categories, which include.

Financial management (bank statements and loan records).

Insurance and annuity documents (policies and statements).

Estate documents (wills, trusts, and powers of attorney).

Investments (stocks and bond).

Income tax information (tax returns and documents attesting to charitable giving).

Employment and military records (discharge papers and employee benefits).

Home records (appraisals, renovation receipts).

Medical documents (summaries of recent appointments and any medical bills or payments made).

Legal documents (passports, personal records, and real estate settlements).

2. Use the same organizational system for all your documents. You probably receive and pay some bills through regular mail, and some through digital outlets or automatic account debiting. In this case, it's important to impose a parallel structure on your analog and digital documents alike.

For instance, if you organize your vertical files containing utility bills, credit card bills, and other significant financial documents in order that they were received, you should not organize your digital files into folders containing payments, bills, and receipts according to the company or institution that you made the payments to.

3. Know what to keep. Retain anything tax-related for at least three years. Keep anything that demonstrates a financial loss for seven years. For instance, you ought to keep a bill of sale on a property that sold for less than what you paid for it. You should also retain receipts for transactions paid by credit card until you get the credit card bill that reflects them. Finally, keep all monthly account statements until you get the year-end reconciliation statement.

Conversely, you should know what to get rid of.When new insurance policies arrive, get rid of the old ones.

Err on the side of caution when disposing of financial documents. If you're unsure if you need to keep something, retain it.

For more in-depth guidelines on what you should pitch and keep, consult IRS Publication 17.

4. Use an app or website to help you organize. There are a variety of handy apps to help get your year-end finances organized. For instance, you might check out feedthepig.com, manilla.com, or mint.com.Apps that might help include Mint, Personal Capital, and Spending Tracker.

Method 2 Looking Ahead.

1. Set a budget. Find ways to save next year. Use your year-end financial organization time to identify sources that are draining your money. For instance, if you're paying for cable TV but never watch it, think about cancelling it altogether.

Overall, you should be spending about 35% of your income on home expenses (rent, utilities, and groceries), 15% on transportation expenses (car insurance, train fare, and auto repairs), 25% on entertainment and other miscellaneous expenses, 15% on paying off debt, and putting the final 10% of your income toward savings.

If you live in an expensive area or have a low income, you might need to contribute more money to home expenses and less toward debt or miscellaneous expenditures.

2. Simplify payments and financial data for next year. When you're done organizing your current year's financial data and documentation, look for ways to streamline the process next year. For instance, you can cut back on time spent searching for wayward documents by using automatic bill payments. You might also use debiting by tying regular payments like utilities and credit card charges directly to your bank account.

Cut back on the number of credit cards you use regularly. This will reduce the number of credit card bills you need to juggle. Use the credit card with the lowest interest rate as your day-to-day credit card, and use the other cards once a month in order to prevent their disuse from hurting your credit score.

For the same reason, limit your bank accounts. You should have one checking account and one savings account. If you have multiple checking and savings accounts, close the one with the most fees and least generous terms of service.

Consolidate your retirement accounts and investments, too. If you have several IRAs, transfer all the money into a single IRA. Use one brokerage firm to simplify investments.

3. Keep your finances organized throughout the year. Instead of putting all your receipts, account statements, and other financial documents in a stack and watching them slowly pile up over the course of a year, put them in the appropriate file or folder as you receive them. This will prevent confusion when trying to organize everything at year's end.

Use a three-ring binder with pockets to organize your financial materials in an orderly way. Move non-current financial records to your filing cabinet.

If you feel more comfortable printing out digital documents, print them out and put them in your vertical file or binder.

If you don't print out digital receipts and other documents, ensure that you put them in the appropriate folder according to your predesignated system as you receive them. For instance, when you get your digital W-2, immediately download it and put it with your other tax documents.

If you need to copy certain digital documents to make them accessible in multiple locations, don't be afraid to do so.

Method 3 Evaluating Your Financial Health.

1. Consult a financial planner or accountant. With the help of a certified financial planner or accountant, you'll be able to get your year-end finances under control. They can help you find ways to save when you file taxes in the coming months, and can explain some of the nuances of the tax code. For instance, you might want to ask.

Should I accelerate or defer income?

What losses or gains should I take this year?

Should I convert my traditional IRA to a Roth IRA so that my earnings will grow tax-free?

Are there any charitable donations I should make?

2. Total your year-to-date spending. You should have a column with all the payments, investments, and savings you have at the end of the year. Compare these numbers to their counterparts at the beginning of the year to get an overall sense of your financial health.

Your investment value should be greater at the end of the year than it was at the beginning of the year.

Your savings should be higher at the end of the year than it was at the beginning of the year.

Your spending should be less than the value of your savings.

3. Review your credit reports. Each year, you are entitled to three free credit reports, one each from the three major credit agencies (Experian, Equifax, and TransUnion). These reports will let you know if your credit score is good or if it needs a boost.

The best way to check your credit reports is not to check all three at once, but rather to space them out regularly over time. Ideally, you'd check one every four months.

4. Check your portfolio. Read the latest reports from your stock broker or financial planner to determine the relative health of your investments. If your portfolio is not doing well, think about investing elsewhere. Talk to a certified financial planner or stockbroker for advice about how to develop a robust portfolio.

Method  4 Finding Ways to Save.

1. Analyze your insurance coverage. If you have home, life, auto, or other insurance, contact some agents representing insurers in your area to find out if you have the best coverage you can afford. If you've made improvements to your home over the past year, you may have increased the value of your home, and that value should be reflected in your insurance policy.

Likewise, if you've welcomed a new family member into your family over the past year, you must check with your insurance provider to guarantee that they're covered under your insurance.

2. Review your tax data. Working with a tax professional, find ways to reduce your tax burden before the year is out. Charitable giving is the easiest way to do this. Look for reputable charities whose work you believe in through GuideStar (http://www.guidestar.org), CharityWatch (https://www.charitywatch.org/home) and Charity Navigator (http://www.charitynavigator.org).

You can also make in-kind (material) donations to thrift stores like the Salvation Army in exchange for a tax discount.

You can also qualify for tax deductions based on work-related expenses like travel or items of clothing you bought specifically for work.

3. Update your information where necessary. If you've had a change in your marital status you may need to revise your tax withholding and/or employee health coverage. If you're unsure if you need to update this information, contact a financial planner for assistance.

4. Empty your flexible spending account. A flexible spending account for healthcare should be used to cover outstanding claims from your doctor, dentist, or other health provider. If you have a flexible spending account oriented toward other types of spending like dependent care, employ the account to cover the appropriate expenses before the year is out.

Only $500 of a flexible spending account can carry over into the following year, so it's important to take full advantage of the account before the year ends.

January 22, 2020

How to Organize Your Personal Year End Finances

How to Organize Your Personal Year End Finances.

You should never organize your year-end finances all at once. Rather, you should be engaged in a steady process of organizing and reorganizing your financial documents and information throughout the year. The process you use when organizing at the end of the year will be basically the same process you use monthly or quarterly to evaluate your investments, insurance, and budget. Use the year-end financial organizational process to get the opinion of a financial planner to help you streamline your finances, identify areas of waste, and take corrective actions to save money.

Method 1 Getting Organized.

1. Select your organizational categories. Knowing how to organize your financial documents can be tough. Thinking broadly about the sorts of documents you ought to organize for your year-end finances will help the process move along smoothly. Some documents might need to be copied and placed in multiple locations. For instance, education loan payments might need to be in a “loans” folder and also a “taxes” folder. Depending on what sort of financial documents you have, you may or may not need folders devoted to each of the main financial categories, which include.

Financial management (bank statements and loan records).

Insurance and annuity documents (policies and statements).

Estate documents (wills, trusts, and powers of attorney).

Investments (stocks and bond).

Income tax information (tax returns and documents attesting to charitable giving).

Employment and military records (discharge papers and employee benefits).

Home records (appraisals, renovation receipts).

Medical documents (summaries of recent appointments and any medical bills or payments made).

Legal documents (passports, personal records, and real estate settlements).

2. Use the same organizational system for all your documents. You probably receive and pay some bills through regular mail, and some through digital outlets or automatic account debiting. In this case, it's important to impose a parallel structure on your analog and digital documents alike.

For instance, if you organize your vertical files containing utility bills, credit card bills, and other significant financial documents in order that they were received, you should not organize your digital files into folders containing payments, bills, and receipts according to the company or institution that you made the payments to.

3. Know what to keep. Retain anything tax-related for at least three years. Keep anything that demonstrates a financial loss for seven years. For instance, you ought to keep a bill of sale on a property that sold for less than what you paid for it. You should also retain receipts for transactions paid by credit card until you get the credit card bill that reflects them. Finally, keep all monthly account statements until you get the year-end reconciliation statement.

Conversely, you should know what to get rid of.When new insurance policies arrive, get rid of the old ones.

Err on the side of caution when disposing of financial documents. If you're unsure if you need to keep something, retain it.

For more in-depth guidelines on what you should pitch and keep, consult IRS Publication 17.

4. Use an app or website to help you organize. There are a variety of handy apps to help get your year-end finances organized. For instance, you might check out feedthepig.com, manilla.com, or mint.com.Apps that might help include Mint, Personal Capital, and Spending Tracker.

Method 2 Looking Ahead.

1. Set a budget. Find ways to save next year. Use your year-end financial organization time to identify sources that are draining your money. For instance, if you're paying for cable TV but never watch it, think about cancelling it altogether.

Overall, you should be spending about 35% of your income on home expenses (rent, utilities, and groceries), 15% on transportation expenses (car insurance, train fare, and auto repairs), 25% on entertainment and other miscellaneous expenses, 15% on paying off debt, and putting the final 10% of your income toward savings.

If you live in an expensive area or have a low income, you might need to contribute more money to home expenses and less toward debt or miscellaneous expenditures.

2. Simplify payments and financial data for next year. When you're done organizing your current year's financial data and documentation, look for ways to streamline the process next year. For instance, you can cut back on time spent searching for wayward documents by using automatic bill payments. You might also use debiting by tying regular payments like utilities and credit card charges directly to your bank account.

Cut back on the number of credit cards you use regularly. This will reduce the number of credit card bills you need to juggle. Use the credit card with the lowest interest rate as your day-to-day credit card, and use the other cards once a month in order to prevent their disuse from hurting your credit score.

For the same reason, limit your bank accounts. You should have one checking account and one savings account. If you have multiple checking and savings accounts, close the one with the most fees and least generous terms of service.

Consolidate your retirement accounts and investments, too. If you have several IRAs, transfer all the money into a single IRA. Use one brokerage firm to simplify investments.

3. Keep your finances organized throughout the year. Instead of putting all your receipts, account statements, and other financial documents in a stack and watching them slowly pile up over the course of a year, put them in the appropriate file or folder as you receive them. This will prevent confusion when trying to organize everything at year's end.

Use a three-ring binder with pockets to organize your financial materials in an orderly way. Move non-current financial records to your filing cabinet.

If you feel more comfortable printing out digital documents, print them out and put them in your vertical file or binder.

If you don't print out digital receipts and other documents, ensure that you put them in the appropriate folder according to your predesignated system as you receive them. For instance, when you get your digital W-2, immediately download it and put it with your other tax documents.

If you need to copy certain digital documents to make them accessible in multiple locations, don't be afraid to do so.

Method 3 Evaluating Your Financial Health.

1. Consult a financial planner or accountant. With the help of a certified financial planner or accountant, you'll be able to get your year-end finances under control. They can help you find ways to save when you file taxes in the coming months, and can explain some of the nuances of the tax code. For instance, you might want to ask.

Should I accelerate or defer income?

What losses or gains should I take this year?

Should I convert my traditional IRA to a Roth IRA so that my earnings will grow tax-free?

Are there any charitable donations I should make?

2. Total your year-to-date spending. You should have a column with all the payments, investments, and savings you have at the end of the year. Compare these numbers to their counterparts at the beginning of the year to get an overall sense of your financial health.

Your investment value should be greater at the end of the year than it was at the beginning of the year.

Your savings should be higher at the end of the year than it was at the beginning of the year.

Your spending should be less than the value of your savings.

3. Review your credit reports. Each year, you are entitled to three free credit reports, one each from the three major credit agencies (Experian, Equifax, and TransUnion). These reports will let you know if your credit score is good or if it needs a boost.

The best way to check your credit reports is not to check all three at once, but rather to space them out regularly over time. Ideally, you'd check one every four months.

4. Check your portfolio. Read the latest reports from your stock broker or financial planner to determine the relative health of your investments. If your portfolio is not doing well, think about investing elsewhere. Talk to a certified financial planner or stockbroker for advice about how to develop a robust portfolio.

Method  4 Finding Ways to Save.

1. Analyze your insurance coverage. If you have home, life, auto, or other insurance, contact some agents representing insurers in your area to find out if you have the best coverage you can afford. If you've made improvements to your home over the past year, you may have increased the value of your home, and that value should be reflected in your insurance policy.

Likewise, if you've welcomed a new family member into your family over the past year, you must check with your insurance provider to guarantee that they're covered under your insurance.

2. Review your tax data. Working with a tax professional, find ways to reduce your tax burden before the year is out. Charitable giving is the easiest way to do this. Look for reputable charities whose work you believe in through GuideStar (http://www.guidestar.org), CharityWatch (https://www.charitywatch.org/home) and Charity Navigator (http://www.charitynavigator.org).

You can also make in-kind (material) donations to thrift stores like the Salvation Army in exchange for a tax discount.

You can also qualify for tax deductions based on work-related expenses like travel or items of clothing you bought specifically for work.

3. Update your information where necessary. If you've had a change in your marital status you may need to revise your tax withholding and/or employee health coverage. If you're unsure if you need to update this information, contact a financial planner for assistance.

4. Empty your flexible spending account. A flexible spending account for healthcare should be used to cover outstanding claims from your doctor, dentist, or other health provider. If you have a flexible spending account oriented toward other types of spending like dependent care, employ the account to cover the appropriate expenses before the year is out.

Only $500 of a flexible spending account can carry over into the following year, so it's important to take full advantage of the account before the year ends.

January 22, 2020

How to Managing Stress and Your Finances During the COVID-19 Pandemic

How to Managing Stress and Your Finances During the COVID-19 Pandemic.

By Monika Ritchie.

There’s no doubt that as we weather the coronavirus pandemic, stress has increasingly become a regular part of our lives. As if worries about our own health and the health of our loved ones isn’t enough, many of us are feeling the pressure of financial stress from mounting bills, reduced incomes, and job uncertainty.

That kind of stress can lead to many health issues, and decreasing it is a great way to help us stay healthy in a time when that’s so crucial. So what can you do to manage stress during the coronavirus pandemic? Getting your finances sorted out as soon as possible will go a long way to mitigating your money worries. Pair financial stress relief with tips to take care of your mental health, and you’ll be able to manage this difficult time more effectively.

4 Tips to Take Care of Your Finances During COVID-19.

During this time your health really does come first, but taking care of your finances will alleviate some of the tension and stress you might be feeling. Knowing that your money issues are taken care of will also allow you to focus more on your wellbeing. Here are a few steps to help you move forward:

1. Reach Out to Your Bank and/or Creditors.
The best time to talk to your financial institution is before things have gotten out of hand. Concerned about paying your mortgage? The sooner you reach out, the better. As nervous as you might feel about talking to your bank, keep in mind that a lot of people need help right now, and many banks, credit unions, and lenders are working to support you. They’ll appreciate you being proactive and will help you find solutions.

2. Get Familiar with the Resources Available to You.
Right now, there are a variety of resources available to help you through this difficult time. Whether it’s support during unemployment, deferred payment plans, or other emergency benefits, learn about which programs are for you. Visit this comprehensive coronavirus resource page to find all of the key resources available for Canadians in one spot.

3. Build and Adjust Your Budget for Reduced Income.
If you don’t have a budget, now is a good time to put one together. If you’re facing a significant reduction in income due to the COVID-19 pandemic, then track your expenses carefully and build an emergency budget. If you already have a budget, consider reviewing it to see if you can pare it down and reduce your expenses further. Take advantage of staying home for all this time and implement a no-spend challenge to help yourself save on discretionary expenses.

How to Manage Your Money During an Unexpected Financial Crisis.

4. Stay Safe and Be Aware of Scams.
Unfortunately, even during a worldwide health emergency, scammers are trying to take advantage of the situation. With so many individuals anxious about the state of their health and finances, many are susceptible to frauds around COVID-19. Be wary of any unsolicited emails, phone calls, or other communications, especially ones that request donations or sensitive information. Do not give out any of your personal information to unfamiliar individuals or businesses, and don’t fall victim to text message scams that ask you to get your money by clicking on a link. When in doubt, contact a company or the government directly by looking up their contact information yourself.

Tips to Manage Your Mental Health During COVID-19.

By now, everyone is familiar with the guidelines around social distancing and self isolation, but that doesn’t mean you need to resign yourself to loneliness and zero social contact. Your mental health is just as important as your financial well-being, so check out these six tips for self-care:

1. Connect with Family and Friends.
While in-person visits are not possible right now, phone calls, video chats, and emailing are all great ways to stay in touch with loved ones. You can share photos and videos, favourite songs, recipes, and more. Make it a priority to (remotely) interact with at least one person outside of your house every day. It will do wonders for your mood and emotional health as well as theirs.

2. Catch Up on Unfinished Projects.
For many of us, there are simply not enough hours in the day to catch up on our various chores and miscellaneous projects. If you’re “stuck” at home, it can be a great time to finish these off. Not only will you check some items off your to-do list, but you’ll get a great mental boost from being productive. However, be wary of tacking a project with a higher price tag than what you can afford on reduced income.

3. Use Community Resources.
Many communities across the country have risen to the challenge of providing support services to those who may need extra help during this time. If you have mobility issues or other challenges, you don’t need to struggle alone. Look into programs in your area that can help you with running errands, grocery shopping, and other necessities. On a larger scale, many grocery stores now have options for online shopping and delivery to help with social distancing. Try connecting with your community on Facebook or see if your province has a central resource centre to coordinate offers of help.

4. Get Creative with Exercise.
You may not be able to go to the gym for now, but many fitness providers are offering online and remote classes that you can follow along with. If you’re not really a gym person, you can lift weights and do strength training from the comfort of your own home. Or you can simply put on your favourite music and have a dance party. You’ll burn calories and get a great boost from all those endorphins!

5. Get Outside If You Can.
Most public spaces like playgrounds, parks, and pools have been closed. But going out for a walk, hike, or run is acceptable if you’re doing it in areas that allow you to keep your distance from other people. If that’s not possible, simply sitting on your balcony or in your backyard with a book is a great way to get some fresh air and vitamin D.

6. Reach Out for Help If You Need It.
If you’re starting to feel overwhelmed or anxious with what’s been going on, counsellors and other support professionals are often available for appointments over the phone or online and can help you work through feelings of anxiety, panic, or depression. You don’t have to suffer alone, so reach out if you need to. If you’re not sure where to turn, contact the Canadian Mental Health Association to find services in your community.

When to Ask for Help from Professional Credit Counsellors.
There’s nothing wrong with getting some professional help before you back yourself into an even tougher spot with a do-it-yourself (DIY) debt relief program. Building budgets, accessing government resources, and speaking to creditors can be a daunting task – especially if you’re new to the experience and feeling stressed and overwhelmed. An accredited financial counsellor can help with navigating the resources available to you, building an emergency budget, and working through your options in an objective and pressure-free environment. Don’t be afraid to reach out – the best non-profit consumer credit counselling services are ready to help.

July 16, 2020

How to Get Money Quickly Without Borrowing It

How to Get Money Quickly Without Borrowing It.

It can be difficult to come up with cash at short notice for an emergency. Fewer and fewer people have secure jobs and savings accounts to rely on during tough times or unexpected circumstances. Fortunately, there are still ways to scrape together necessary funds quickly.

Method 1 Doing Odd Jobs In Your Neighborhood.
1. Advertise your services. Build your own website or post on online pages such as Craigslist.
Specify in your advertisement what types of jobs you can do (home repairs, plumbing, electrical work, yard work, cleaning etc.), what you charge, and when you are available.
Provide multiple ways to contact you. If you can be reached by both phone and email, you might have a better chance at getting work.
2. Build your potential customer base. Speak to nearby friends and neighbors first.
Tell them that you need money and are willing to do light housework and yard work in the area.
Ask them to tell their friends and neighbors too, and recommend your services.
Your neighbors and friends may very well end up being your first customers. Be sure to tell them to spread the word that you do good work when you're finished.
3. Charge reasonable rates for your work. The main reason someone might consider hiring you over a professional service is that you're a lot less expensive.
Ask for a small amount of money that you can live with, rather than a large sum.
A good way to estimate what to ask for is to set a low hourly rate, say $8 or $10. Also, prorate your work to the nearest half hour. In other words, if you work for 6 hours and 33 minutes, just bill for 6 hours and 30 minutes. That keeps things simple.
4. Act professionally. Dress in clean clothes and smile when people answer their doors. Offer a handshake when you introduce yourself. Make eye contact.
Be sure to describe exactly what types of services you offer, whether its small home maintenance, yard work, cleaning etc.
Be willing to do jobs on weekends and evenings.
Return calls and job offers quickly and promptly.
5. Bring your own equipment. If you have specialized equipment you can bring, such as a toolbox for house repairs or a rake for leaves and grass, bring it with you.
Heavier items like ladders and lawnmowers can be left at home, but be sure to mention you have access to your own.
Don't accept jobs that you don't have the equipment to complete.

Method 2 Finding Short-Term Jobs.
1. Think about what your skills are. You might be able to find a short term job more easily if you have certain skills.
Bookkeeping and accounting jobs are often short term or temporary. If you have skills as a bookkeeper, you can often find a well paying position on a short-term basis.
Offices and human resource departments often look for part-time workers when they have an increase in paperwork or filing.
If you have tech skills, some firms or websites may hire on a short-term basis.
2. Check the local listings for short-term jobs. The online marketplace Craigslist features an “ETC” category under the Jobs heading local newspapers also often carry advertisements for quick, temporary work. Check everywhere you can and think about what you're able to do.
Take a job as a sign waver. All kinds of businesses hire sign wavers to stand outside for 8 or 10 hours and wave a large sign at passing cars. Used car lots, payday loan stores, and furniture stores in particular use this marketing technique and often pay in cash at the end of the day.
Help out with event work. Browse listings for people and small businesses who need help setting up, running, and tearing down booths for local events like farmer's markets and street fairs. These jobs often start early in the day and often pay the same day. Be prepared to do anything from construction to running a booth.
3. Participate in studies or surveys. This isn't a reliable way to make a lot of money, but if you're just a few dollars short, it can make up the difference. A Google search will help you find some online surveys.
Be sure you qualify for the study before you apply. For example, you won't want to apply for a study that is looking at the effects of smoking if you aren't a smoker.
Apply in person to expedite the process. In the case of some surveys, you'll be able to show up and do a paid survey right then and there. Studies usually last longer, but may provide compensation before the end of the study period.
4. Join a temp agency. Temporary work agencies place thousands of employees with daily work. If you have specialized work skills or previous experience in a field, you might have very good luck temping. There are a number of tips to help you get started with an agency.
Visit the agency. Tell them you want to work, and follow their instructions. There will usually be an application to fill out, followed by an interview where you go over your work history and qualifications.
Bring a resume with you. It will help the temp agency sort out what types of jobs you are qualified for.
Dress for an office environment. Business dress shows you are looking to be successful and will fit in a professional setting.
Meet your agent. He or she will work to find jobs for you every day. Try to be pleasant and get along with your agent; it could help your chances some.
Take any job you're offered. Temp agencies can't work miracles; they don't find work for every temp employee every day. If your agent finds work that you can do and offers it to you, take it immediately.
Sometimes, a temp in a longer-term contract can get hired on as a regular employee, so always treat it like a “real” job.

Method 3 Selling and Reselling.
1. Think about selling your car. This isn't a practical step for many people, but if you're lucky enough to live somewhere you don't need a car to get to work or the grocery store, you're sitting on a huge mound of cash in the driveway. There are some helpful steps to complete this process.
Gather your car's information. Find the title and registration, maintenance receipts and records, and a car history report. Also know the features of your car (CD Player, seat controls etc.)
Having regular receipts and records for oil changes and routine maintenance can show that your car was well cared for and can help you get a good offer.
Set a price for your car. To find the right price, you can look up the value of your car with Kelly Blue Book or look in the classifieds section of your newspaper to see what price cars like yours are selling for.
Advertise the car online and in newspapers. In your ad specify the model and year of the car, its features, its true condition (if it is in need of repairs be honest), your asking price, and acceptable forms of payment. Include lots of photos and multiple ways to contact you.
2. Have a yard sale. Advertise it for free on Craigslist, or for a small fee in the local newspaper. Clean and organize everything you intend to sell, and lay it out in front of your house or apartment on the morning of the day of the sale.
This approach works best for people who haven't previously sold things for cash out of necessity, and still have a lot of items to sell. People are more interested in bigger yard sales.
Price everything slightly high, but be willing to haggle down. Most yard sale items will reasonably sell for 1/3 to 1/2 of the original price, if the item is in good condition.
Keep your prices in $.25 intervals to keep change handling simple.
To make up the difference, try to feature some bigger items, like furniture and exercise equipment, that you can get a bigger chunk of change for. Place these items at the end of the driveway or yard to lure in buyers.
Many neighborhoods have a coordinated yard-sale day. It is a good idea to hold your yard sale during this event because it will draw in a large crown of potential buyers.
3. Sell your belongings online. There are two basic ways to do this if you need to turn a quick profit: Craigslist and eBay.
On Craigslist, post your item for sale in the appropriate section of the site. Be sure to post pictures if you can; people often don't bother with listings that don't have photos attached.
Use the word “firm” if you refuse to haggle on the price; use “OBO” to indicate you might be willing to go down on it a bit.
On eBay, you can set various time and purchase options, which may have fees attached to them.
If you choose to sell it at a fixed price with the Buy It Now option, you will have to pay a flat fee of a couple dollars in addition to a percentage of the sale price. Buy It Now allows you to control your selling price.
If you choose to sell your item at auction, choose a period of time the auction will be active. Sunday evening is said to be the most lucrative night of the week for auctions by frequent eBay sellers.
4. Sell to a pawn shop. Pawn brokers are people who will pay cash for just about anything you own that isn't disposable or perishable. Pawn brokers tend to pay very low amounts and won't haggle.
Bring your items with you to the pawn shop. Most pawn shops keep short hours for security reasons, so go before 4PM to be sure you get in.
Decide whether or not to accept the offer. Expect to get $60 for a $500 bicycle, and on down the line proportionally. In most cases, you should only visit a pawn shop if you absolutely need money right now and have no other options available as you won't get a good value on your items.
5. Resell to collectors. There are collector's markets for just about everything with any cultural significance, from commemorative plates to video games and old toys. If you arm yourself with knowledge, you can make a killing buying items for cheap and selling them to collectors at a profit.
Specialize in one type of collectible. You might specialize in retro toys or specialized glassware. Start by seeing what collectibles you already own and build from there.
Know your subject. Do the research to find out what an item in good condition looks like and is worth. Know which items are commonplace or super rare. Rare items will get a better price.
Visit cheap places. Yard sales and thrift shops are your best friends as a collectables reseller.
Use computer resources. Websites that specialize in collectibles can help you to gauge what collectibles are selling for in your area.
Sell online. You'll often get a better price online than you will selling to a local collector, and this can widen your customer base.
Get to know dealers and insiders. These people can be great connections for you to advertise your collectibles and get to know vendors who can help you sell your items.

Method 4 Using Unorthodox Approaches.
1. Perform on the street. If you're lucky enough to own an instrument and talented enough, busking is the art of musical street performance. A good busker in a busy spot can make a nice little pile of cash in an hour or two of playing. The following are some helpful tips for busking.
Get permission. Some cities and communities have ordinances that require a permit or fee for street performance.
Choose a good location. Avoid areas where there are other street performers but still have high traffic. Choose busy downtown areas in safe locations as a starter.
Choose your repertoire carefully. A good time of year to busk is during the holiday season. Jazz and popular music are also successful themes.
Be polite to your audience. Be warm and friendly with everyone who crosses your path. Smile and nod whenever you make eye contact with anyone.
2. Collect scrap metal. Iron, steel, and especially copper can be sold to scrapyards by the pound. To make a significant amount of profit, you'll need to bring in quite a few pounds, so be sure you have a vehicle with space for the metal.
Look around abandoned lots and derelict buildings for pipes and metal fixtures. Junk bins outside tech and office firms may have bunches of wire or other components that can be sold as scrap.
Be very careful if you collect scrap. Wear heavy gloves, bring a partner, and don't hunt for scrap at night.
Don't steal or strip metal from anything that's still in use.
Search neighborhoods in the morning before garbage collection. You can often find items that can be used for scrap or fixed up and sold.
3. Go rock hounding. There are guidebooks available in most areas that show where valuable rocks can be found. Fossils, geodes, and semi-precious gemstones are all widely available in some areas. Keep in mind though that this may take time to find a collection and might not be a fast solution to your money problem.
Learn different gemstone grades. If you're hounding for semi-precious gems, remember that coloration and size can sometimes make them quite valuable.
Bring a shovel or spade, gloves, a hat, and a pail or bucket. Very often, to find the better-quality rocks and fossils, you'll have to dig down into the ground a little bit. Be sure this is legal where you are; most places marked in a guidebook should allow it.
Be careful to stay off of private property, including mining claims.
Sell your haul to a specialty store. You won't get a whole lot, most of the time, but it's next to impossible to sell raw stones online.
4. Sell plastic bottles for money. It's possible to collect bottles from other people's recycling and sell them for money.
You'll have to collect quite a few of them before you can make a profit, so be prepared to put some effort into this method.
You'll also have to find a national recycling buyer that purchases plastic bottles in bulk. A simple Google search should help you find companies that you can work with.
5. Sell you hair. Believe it or not, there is a market for your hair. If you have "virgin" (non-dyed or treated) lengthy hair, you can earn quite a bit of money for it.
Your hair is an outgrowth of what goes into you, so if you eat healthy and don't smoke, you can sell your hair for a premium.
An online tool exists to tell you how much your hair is worth.

Community Q&A.

Question : Where can I sell foreign coins?
Answer : A local coin dealer might be interested. Try Craigslist, too.
Question : Do people really buy hair?
Answer : Yes, they do! Some people don't have hair, so real-hair wigs are very popular.
Question : How do I sell old and rare postal stamps?
Answer : Find the value of the stamps by doing some research online first. Then, look for local auctions, swap meets, or even antique stores where you could find someone to purchase the stamps. There are also plenty of places online where you could sell them yourself once you've found the value, like eBay or Craigslist.
Question : How can you do this if you are a kid?
Answer : Start with scrap metal. It is easy to do and is free.

Warnings.

Don't steal, blackmail, or counterfeit to get money. If you think it's a lot of trouble being broke, wait until you're broke and standing in a courthouse on a felony charge.
You may have to pay income tax or other taxes on your earnings, especially if you are working a second, or even third job. Don't fall into the trap of getting paid cash-in-hand for more than you are legally allowed to earn as having to pay the Inland Revenue, IRS or other agency a large amount of back tax is not going to improve you financial situation in the long or short term.
Don't gamble if you need money. The odds are even at the very best (and only in craps betting); generally speaking, odds are that you'll lose. There's a reason people call the lottery an “idiot tax.”

June 04, 2020

How to Understand Personal Finance Basics

How to Understand Personal Finance Basics.

Understanding your personal finances can be very overwhelming, particularly if you’re just starting out. It is tough to know how best to handle your money, how to go about paying off debt, and where and when to invest. By following some basic steps for doing these things, as well as saving for emergencies and retirement and insuring the assets you’ve worked hard to obtain, you can begin to understand your personal finances and become more confident in your ability to make good decisions regarding them.





Learning How to Create a Budget.



Gather your financial statements and information. Creating a budget is one of the most important aspects of personal finance. A solid budget allows you to plan for how you’ll spend the money you bring in each month and illustrates your spending patterns. To begin, gather all the financial information you can, including bank statements, pay stubs, credit card bills, utility bills, investment account statements, and any other information you can think of.

Most people make monthly budgets so your goal is to figure out how much you make in a month and what your monthly expenses are. The more detail you can provide, the better your budget will be.



Record your monthly income. After gathering all of your financial data, separate out your sources of income. Record the amount of income you bring home in a month. Be sure to include any side jobs you have.

If your income varies from month to month, it may be helpful to figure out your average monthly income for the last six months or so.



List your fixed monthly expenses. Next, look over your financial documents and record any fixed expenses you have, or those that are essential and do not change much from month to month.

Fixed expenses can include things like mortgage payments or rent, credit card payments, car payments, and essential utilities like electric, water, and sewage.



List your variable monthly expenses. You also need to record your variable monthly expenses, which are items for which the amount of money you spend each month varies. These expenses are not necessarily essential and are likely where you will make adjustments to your spending in your budget.

Variable expenses can include things like groceries, gasoline, gym memberships, and eating out.



Total your monthly income and expenses. Once you have recorded all of your income and expenses, both fixed and variable, total each category. Ultimately, you want your income to be larger than your expenses. If it is, you can then decide where it is best for you to spend your excess income. If your expenses are more than your income, you will need to make adjustments to your budget to cut your spending or increase your income.



Adjust your variable expenses to hit your goal. If your budget shows you are spending more than you are earning in income, look at your variable expenses to find places you can cut back on spending, since these items are usually non-essential.

For example, if you are eating out four nights a week, you may have to cut this back to two nights a week. This will free up money you can put toward essential expenses like college loans or credit card debt.

In addition, you may be paying unnecessary monthly fees, like overdraft or late fees. If you are spending money on these types of fees, work on making your payments on time and keeping a bit of a cushion in your bank account.

Alternatively, you can work on earning more instead of spending less. Evaluate whether or not you can pick up a few extra hours of work a week, work overtime, or work any side jobs to increase the amount of money you’re bringing in each month.



Review your budget every month. At the end of each month, take some time and review your spending over the past month. Did you stick to your budget? If not, where did you veer off course? Pinpointing where you are exceeding your budget will help you figure out what kind of spending you need to pay attention to most. Reviewing your budget can also be encouraging if you find you are sticking to it. You may find that it’s extremely motivating seeing the amount of money you saved by cutting back the number of days you eat out a week, for example.













Strategizing to Pay Down Debt..



Pay more than the minimum amount due each month. Even following a strict budget doesn’t mean you can totally avoid debt. Large purchases, like cars, school, and houses often require you to take out a significant loan. In addition, it can be easy to rack up credit card debt quickly. One of the personal finance basics you must understand is how to take care of this debt as quickly as possible. The first step to doing this is to pay more than the minimum payment as often as you can.

For example, say the minimum payment on your car loan is $50 a month. Paying even $60 a month toward this loan can help you pay it off sooner and cut down on the amount you pay in finance charges over time. The more you can pay above the minimum, the better.



Transfer credit card balances with high annual percentage rates. If you have a credit card for which you are paying a high annual percentage rate (APR), it might be a good idea to look into transferring this balance to a credit card that offers a lower APR or no APR for a certain amount of time. This way, your entire payment will be applied to your balance, not interest.

Read the fine print before transferring a balance. Most cards charge a transfer fee (3% of the balance, for example) and only offer 0% APR for a limited amount of time (12 or 18 months, for example). Make sure you understand the terms of your new agreement and shop around for the best option before transferring your balance.



Calculate the amount of debt on each credit card. If you have multiple credit cards, compare the amount of debt you have on each one. You can use this information in two different ways:

Some people believe paying off the credit card with the smallest balance first is best. The idea here is that getting the smaller amount of debt paid off will motivate you and allow you to focus on your remaining debt.

Alternatively, some people believe you should focus on paying off the largest balance because you will be paying the most in interest on this balance. To do this, you would try to make more than the minimum payment on this balance, while paying only the minimum on your smaller balance.

If possible, the best solution is to pay more than the minimum simultaneously on each balance.



Dedicate excess funds toward paying off debt. Once you are able to follow your monthly budget, dedicate any extra funds you have at the end of the month toward paying down your debt. It can be tempting to use this money to treat yourself to a fancy dinner or a new TV, but remember your long-term goals before doing this. In the long run, paying down debt will serve you better than treating yourself to something unnecessary.



Consolidate your debt. If you have multiple credit card accounts, student loans, a mortgage, a car loan, or any combination of these debts, consolidating them into one payment may help you manage them more easily. Typically, when you consolidate debt, you’ll get a debt consolidation loan. These loans usually have a lower interest rate and require lower monthly payments.

While consolidating your debt can make it easier to manage, it may also increase the amount you’ll pay in the long run because it extends your payments over a longer period of time.

If your credit score is not good, you may need a co-signer to be able to get a debt consolidation loan.

You can also consolidate your credit card debt by transferring all of your balances to a 0% APR credit card. If you think you can pay off your debt within 12 to 18 months, this might be a good option. However, if you think it will take you significantly longer to pay it off, this might not be a good option because the 0% APR is usually only good for 12 to 18 months.



Refinance your loans. Refinancing is generally a good option if your financial situation has improved since taking out your loan. Similar to consolidating your debt, refinancing your loans also consolidates your debts and may allow you to make lower monthly payments on your loans. Refinancing might also allow you to shorten the term of your loan to pay off your debts more quickly. In addition, depending on your financial situation, you may also be eligible for a lower interest rate.





Choose a student loan repayment plan. If you can afford it, the standard repayment plan is your best option for repaying federal loans. A standard plan requires you to pay the same amount every month over a ten year period. If you can’t afford the payments on a standard plan, however, the government offers two alternative categories of plans—income-driven and basic.

Income-driven repayment plans extend the terms of your loan to 20 or 25 years and require you to pay a certain percentage of your income toward your loan each month, rather than a fixed monthly payment. In addition, any amount still owed at the end of your loan term is forgiven.

Basic plans include standard, graduated, and extended repayment options. Standard is the best option if you can afford it, but graduated or extended plans may be right in some situations. Graduated plans start you off with low payments and gradually increase them over time. This plan can be good if you expect to make more money over the years. Extended plans extend the terms of your loan to 25 years, allowing you to make smaller payments each month, but pay more in interest over time.











Saving for Emergencies and Retirement.



Set up automatic deposits. It can be tough to commit to putting money into your savings account every month, but it is important to do so to ensure you have enough money for emergencies and for your future. If possible, make automatic payments into a saving account each month.

For example, set your bank account so it automatically transfers $50 from your checking account to savings account at least once a month.

Or, if your paycheck gets deposited directly into your account, you can usually set it up so that a certain portion (either a dollar amount or a percentage) is deposited straight into your savings account. Most professionals recommend putting 10 to 20 percent of your income towards savings each month.



Contribute to a retirement savings plan. You should start saving for retirement as soon as possible to ensure you’ll have enough money to live comfortably when you are done working. The amount you need to contribute to this savings account monthly depends on a number of different factors, like when you start saving, how much you are starting with, and whether or not you’re going to receive any kind of employer contribution.

Many employers offer a 401k, or a retirement savings plan, of some kind to their employees. A lot of companies will also match a percentage of the employee’s contributions into this account over time. If your employer offers a plan of this sort, start contributing to it as soon as you can, even if it is just a small amount.

If you are self-employed or your employer does not offer any kind of retirement savings plan, you can set up your own plan through investment websites or many banks.

Consult a financial advisor to figure out how much you should be putting away for retirement to reach your goals.[19]



Build an emergency fund. In addition to saving for retirement, you also need to save for emergencies, like losing a job, costly car repairs, or unexpected medical expenses. You can use your bank’s savings account for this emergency fund.

Financial professionals recommend you have enough in your savings account to cover a month and a half of living expenses for each person you claim as a dependent. For example, if you are married with one child, you should have enough to cover four and a half months of living expenses.











Investing for Beginners.



Invest in a Target Date Fund (TDF). Figuring out where to invest your money is one of the hardest parts of personal finance basics. Essentially, you want to invest in a variety of stocks, bonds, and treasuries—but which ones? Target Date Funds make this a little easier for you. A TDF is basically a hands-off retirement account. You enter the age you want to retire and the TDF will automatically spread the money you put into this account across a wide variety of stocks, bonds, and treasuries.

Some of the recommended companies through which to do this are Vanguard, Fidelity, and T. Rowe Price.



Diversify your investments. If you choose a more hands-on approach to investing, it is important to diversify your portfolio to reduce risk. Diversifying means that you choose a variety of stocks, bonds, and treasuries in which to invest. You should make sure your investments are spread over a number of different companies and industries. This way, if one company or industry suffers a financial downturn, you will only lose a portion of your investment, not the whole thing.



Invest in your 401k. As mentioned above, investing in a 401k provided by your company is a good idea. There are a couple really good things about this option. First of all, most of the time, the money you put into a 401k is deferred on your taxes until you take it out of the account. Some 401ks are taxed before investing, however, so check with your employer to find out which one you have. Second, your employer will often match the amount of money in your 401k (up to a certain amount) so you are, essentially, getting free money just for investing.

You should invest in a company match 401k even if you are in debt. The return you receive on this type of investing is often more than what your debt is.

The amount of money your company will match often depends how much you invest in your 401k. Usually, you have to hit certain investment thresholds, which will then determine the percentage your company will match.



Invest in a Roth IRA. Another investment opportunity offered by many employers is a Roth IRA. In a Roth IRA, you pay taxes up front on your investment. Investing in a Roth IRA is an especially good idea for young people with low incomes, considering the tax rate will likely increase in their lifetime. This type of investment can be very helpful because it will provide you with a pot of money for your retirement that won’t shrink due to taxes.]















Understanding Why to Insure Your Investments.



Get property insurance. You should invest in property insurance to protect your home, which is often one of your biggest assets. Property insurance is actually required if you have a mortgage. This type of insurance will protect you from having to pay out-of-pocket for any major unforeseen home repairs.

If you rent, it is just as important to invest in renter’s insurance. Your belongings can add up to a significant investment and getting renter’s insurance will help protect you in the event of a burglary, fire, flood, or other disaster.



Buy life insurance. Getting life insurance is especially important if you have a family or are married. Life insurance makes sure your income (or at least part of it) is supplemented in the event that you pass away. This is important because your family could face very tough financial situations if they are unable to make up for the portion of income you brought to the table.



Get health insurance. Health insurance premiums can be a small price to pay if you find yourself sick or seriously injured. Medical bills alone can put you in serious debt if you don’t have some sort of insurance policy. In addition, you’ll likely miss a significant amount of work if you are seriously injured, leaving you no way to pay these bills.

Many employers offer health insurance to their employees at a discounted rate. Usually only full-time employees are eligible to receive health insurance through the company, but some companies may offer it to part-time employees as well.

Buying health insurance independently, without the help of an employer, can be expensive. However, it is worth investing in to make sure you are not crippled by debt in the event you become sick or injured.[28]



Buy automobile insurance. Finally, you should invest in automobile insurance. In fact, it is required of anyone who owns a car in the United States. Auto insurance helps cover the cost to repair your car after an accident and medical bills for you and others involved. A major car accident can put you in debt from car repairs and time off work if you’re injured. It is also possible your assets can be seized to help pay for the other driver’s medical bills if the accident is your fault. Having automobile insurance can help diffuse some of these costs and help keep you out of debt.















Working with a Financial Planner.



Start now. One of the most important things you can do for your personal finances is to start thinking about them and working on them early. It may seem like you have plenty of time to save for retirement, but you can actually lose a lot of money in interest if you wait too long. Make financial planning a regular part of your life—like going to the doctor—and get started as soon as possible.

Get your significant other involved. If you are planning a future together, make sure to include your significant other in your planning. Talking to your partner and including them in the process will ensure you are both on the same page with your spending and saving habits and allow you to develop a plan that meets both of your needs.



Be proactive. Some people assume that everything will work out in the long-run and ignore negative cues about their finances. If you do this, however, you could set yourself up for a major loss. Instead, think about how negative financial situations, like severe drops in the stock market, might affect your financial security and plan alternative options.



Plan out the details. Many people see saving for retirement as a race to reach a certain amount of savings before the date they retire. This approach can be misleading, however. Instead, think about the things you’ll need to pay for, like housing, healthcare, eldercare, hobbies, transportation, and so on. Do your best to figure out how much these products and services will cost you and how you’ll finance them.





Tips.

Figuring out how to handle your personal finances can be very confusing whether you’re a beginner or not. It is a good idea to consult a financial planner to help you decide how to best handle your money.

November 13, 2019