I have undergone an enforced digital detox by moving to Africa - okay, that wasn't the reason I moved there but ironically, by getting rid of the digital noise, my life is enriched. In my village the connection is so slow as to be impractical. Twenty minutes to download a 2 line email. Now I go once or twice a week to an internet cafe a few miles away where I write a blog, check emails and read the news (and make comments on blogs like this!). I have a phone that makes calls and can send texts, and that is all. After a period of anxiousness that I wasn't getting the rolling news and updates of what my friends ate for breakfast, I now feel much happier and spend my days far more productively.
I work online so without connection I would be broke. But the good thing about this is that it has caused me to see being online as work. So as soon as I am finished the first thing i want to do is go for a walk or be in a park somewhere. I don't own a smartphone so once Im away from the laptop it all stops.
It is all about being disciplined. If you stay focus on a goal, you can make this happen. It isn't fun when you truly have an emergency and don't have the money that can help you.
Thank you! I am a kindergarten teacher and always looking for affordable ways to have these fun, creative products in my classroom. I work with a lot of kids that have sensory needs and if I buy the "real" things all the time, I'll go broke! I am so thankful to people like you who have the time and talents to figure these concoctions out and share them with the rest of us. Thank you! Thank you! Thank you!
It is certainly difficult to save, especially just starting out. One thing I learned from experience is that if I wait until the end of the month to save, the money is not there. You have to pay yourself first, even if it is only $10.00 week /paycheck. Or, try to save $1.00 week 1 and then $2.00 week 2 and on and on for the year. The trick s to make it first and automatic. Life insurance can wait until someone is depending on your income.
I used to put money into a 401K and borrow against that for major purchases, but advise against if because if you change jobs, even for a major pay increase, it can sink you as you have to be able to repay it in a short period of time or pay massive penalties if you can't get a loan. I had to put nearly $3,000 in tax penalties high interest credit card.
I wish I could afford to have saving goals now, but as a single parent that has had to change jobs and suffer unemployment three times in the past five years through no fault of my own for extended periods, I don't have that luxury.
Instead, my goal has been to always pay as much as I can on my credit cards (and try not to use them) to keep my rating up so my cards so if I have to pay rent with a cash advance until unemployment kicks (which thankfully was only once) I can so I can keep a roof over our head.
The tips you offered are invaluable. Hospitality exchanges are a great way to meet people, especially in CouchSurfing. Before taking a trip, one can build up credibility on their profile by meeting people in their local community through the forums or by hosting others for culture exchange. Thank you for sharing this!
I have my savings automatically deducted from my checking account as soon as my paycheck is deposited. I don't miss it because it feels like it was never there.
Great post Beverly. I still don't get why anyone cares about the Kardashians though. As for Suzy Orman offering a prepaid card, at best she should be ashamed of herself.
We started one this month. It's going so well that I think we might do it in February too! It has helped us pay some bills that needed to be paid. It's hard but it's worth it!
How does one calculate what amount is “too much cash to have sitting around earning ridiculously low interest”? If the average family spent over $4,000 a month and $2,500 of it was necessary expenses – as laid out in this article – wouldn’t they still need to put away $24,000 to $15,000 for their 6 month emergency fund? The family – if they wanted to be on the safe side – might lean towards the upper end to have stashed away. But what’s the tipping amount (and how do you figure that out) on the spectrum of $24,000 and $15,000 in which the emergency fund was too much?
My minimum emergency fund recommendation is save 6 months worth of expenses or the price of a descent used car, whichever is more money.
I figure that the most expensive thing that I own is my car and if it dies I'm basically stuck (public transportation and bicycles aren't going to cut it where I live), so having enough money to replace it immediately in cash is probably wise.
I would also scale the number of months worth of expenses with how volatile your income is. I'm going for one full year's worth of expenses just in case my company doesn't hit some of it's major goals in the next couple of years and then layoffs start.
I'm slightly confused; when the article says “Most experts suggest saving 10% of your income,” income means the net income / take-home pay, right? I’m already contributing a certain percentage of my gross pay towards my 401(k). Should I also be saving 10% of my net income on top of that percentage? If so, is this where the question of which IRA to choose between comes into play? Or, can I also put my 10% retirement savings in other investments like the stock market or a lazy fund? I might have just answered my own question; I just hadn’t thought of stock investments, mutual funds, or the like as part of my retirement savings. Please let me know if I did indeed figure it out or not! :)
Ive had at least 30 jobs, and they all suck, I hate jobs period, there all stupid. if anybody can find me a job Id actually love tell me, because I give up.
That's one of the points of Crowdtilt, Thomas, to have only the people who fund an event attend it. But if you're talking about a surprise party and asking people to give money for an unknown event, then yeah, I guess that's possible. I don't know how they'd determine how much money something is worth before knowing what it is.
You asked some terrific questions! And you're correct that these cards are typically targeted toward lower-income folks. And since prepaid cards don't involve borrowing money, anyone can qualify. Your credit history isn't checked.
I know there are many people who have no idea how the bad the fees can get. That's one reason I get so annoyed when celebs promote these cards without giving all the facts. As you pointed out, the commercials never mention it and the fine print is tough to get through.
With prepaid cards, you often have to look hard to find all the fees or to find out how to avoid the fees. Would you believe I once had to read fine print that had been scanned sideways onto a prepaid card website? I had to practically lay down on my desk to read that thing!
There are procedures for canceling these cards and they vary by card issuer. If you had fees that were unpaid, that would complicate matters. You bring up a great point about the unpaid fees. If someone doesn't pay their phone bill, the vendor could report it to the credit bureaus. So if you had unpaid fees on your prepaid card, it's possible that could happen and it could impact your credit.
It's sometimes necessary to use these cards, but it should be a temporary solution.
I haven't looked at the details of that card, but if there aren't any hidden fees, that's not bad. Not many prepaid cards give rewards, so that's a plus.
Saving has always come naturally to me.
I just focus and plan ahead. When it comes to spending money, I wait and see if it is an item that is really necessary to have.
I have undergone an enforced digital detox by moving to Africa - okay, that wasn't the reason I moved there but ironically, by getting rid of the digital noise, my life is enriched. In my village the connection is so slow as to be impractical. Twenty minutes to download a 2 line email. Now I go once or twice a week to an internet cafe a few miles away where I write a blog, check emails and read the news (and make comments on blogs like this!). I have a phone that makes calls and can send texts, and that is all. After a period of anxiousness that I wasn't getting the rolling news and updates of what my friends ate for breakfast, I now feel much happier and spend my days far more productively.
I work online so without connection I would be broke. But the good thing about this is that it has caused me to see being online as work. So as soon as I am finished the first thing i want to do is go for a walk or be in a park somewhere. I don't own a smartphone so once Im away from the laptop it all stops.
"Who eats fried rice for breakfast?" :-) Check w/the entire State of Hawaii . . .
It is all about being disciplined. If you stay focus on a goal, you can make this happen. It isn't fun when you truly have an emergency and don't have the money that can help you.
Thanks for the post! I have a question - starting off, is it better to buy the frequent flyer master or the subscription to the travel hacking cartel?
Right now we're concentrating on our emergency fund.
Thank you! I am a kindergarten teacher and always looking for affordable ways to have these fun, creative products in my classroom. I work with a lot of kids that have sensory needs and if I buy the "real" things all the time, I'll go broke! I am so thankful to people like you who have the time and talents to figure these concoctions out and share them with the rest of us. Thank you! Thank you! Thank you!
It is certainly difficult to save, especially just starting out. One thing I learned from experience is that if I wait until the end of the month to save, the money is not there. You have to pay yourself first, even if it is only $10.00 week /paycheck. Or, try to save $1.00 week 1 and then $2.00 week 2 and on and on for the year. The trick s to make it first and automatic. Life insurance can wait until someone is depending on your income.
I used to put money into a 401K and borrow against that for major purchases, but advise against if because if you change jobs, even for a major pay increase, it can sink you as you have to be able to repay it in a short period of time or pay massive penalties if you can't get a loan. I had to put nearly $3,000 in tax penalties high interest credit card.
I wish I could afford to have saving goals now, but as a single parent that has had to change jobs and suffer unemployment three times in the past five years through no fault of my own for extended periods, I don't have that luxury.
Instead, my goal has been to always pay as much as I can on my credit cards (and try not to use them) to keep my rating up so my cards so if I have to pay rent with a cash advance until unemployment kicks (which thankfully was only once) I can so I can keep a roof over our head.
The tips you offered are invaluable. Hospitality exchanges are a great way to meet people, especially in CouchSurfing. Before taking a trip, one can build up credibility on their profile by meeting people in their local community through the forums or by hosting others for culture exchange. Thank you for sharing this!
I have my savings automatically deducted from my checking account as soon as my paycheck is deposited. I don't miss it because it feels like it was never there.
Great post Beverly. I still don't get why anyone cares about the Kardashians though. As for Suzy Orman offering a prepaid card, at best she should be ashamed of herself.
I divvy my savings goals up between my different savings accounts that way I'm always prepared in case of a financial emergency
We started one this month. It's going so well that I think we might do it in February too! It has helped us pay some bills that needed to be paid. It's hard but it's worth it!
Plan and simple deodorant: Half fill a bottle with Witch Hazel, add baking soda until the bottle is 3/4 full shake and you're done.
As a dog deodorant put straight witch hazel in a spray bottle and spritz your dog. The dog smell is gone!
How does one calculate what amount is “too much cash to have sitting around earning ridiculously low interest”? If the average family spent over $4,000 a month and $2,500 of it was necessary expenses – as laid out in this article – wouldn’t they still need to put away $24,000 to $15,000 for their 6 month emergency fund? The family – if they wanted to be on the safe side – might lean towards the upper end to have stashed away. But what’s the tipping amount (and how do you figure that out) on the spectrum of $24,000 and $15,000 in which the emergency fund was too much?
My minimum emergency fund recommendation is save 6 months worth of expenses or the price of a descent used car, whichever is more money.
I figure that the most expensive thing that I own is my car and if it dies I'm basically stuck (public transportation and bicycles aren't going to cut it where I live), so having enough money to replace it immediately in cash is probably wise.
I would also scale the number of months worth of expenses with how volatile your income is. I'm going for one full year's worth of expenses just in case my company doesn't hit some of it's major goals in the next couple of years and then layoffs start.
I'm slightly confused; when the article says “Most experts suggest saving 10% of your income,” income means the net income / take-home pay, right? I’m already contributing a certain percentage of my gross pay towards my 401(k). Should I also be saving 10% of my net income on top of that percentage? If so, is this where the question of which IRA to choose between comes into play? Or, can I also put my 10% retirement savings in other investments like the stock market or a lazy fund? I might have just answered my own question; I just hadn’t thought of stock investments, mutual funds, or the like as part of my retirement savings. Please let me know if I did indeed figure it out or not! :)
Ive had at least 30 jobs, and they all suck, I hate jobs period, there all stupid. if anybody can find me a job Id actually love tell me, because I give up.
That's one of the points of Crowdtilt, Thomas, to have only the people who fund an event attend it. But if you're talking about a surprise party and asking people to give money for an unknown event, then yeah, I guess that's possible. I don't know how they'd determine how much money something is worth before knowing what it is.
You asked some terrific questions! And you're correct that these cards are typically targeted toward lower-income folks. And since prepaid cards don't involve borrowing money, anyone can qualify. Your credit history isn't checked.
I know there are many people who have no idea how the bad the fees can get. That's one reason I get so annoyed when celebs promote these cards without giving all the facts. As you pointed out, the commercials never mention it and the fine print is tough to get through.
With prepaid cards, you often have to look hard to find all the fees or to find out how to avoid the fees. Would you believe I once had to read fine print that had been scanned sideways onto a prepaid card website? I had to practically lay down on my desk to read that thing!
There are procedures for canceling these cards and they vary by card issuer. If you had fees that were unpaid, that would complicate matters. You bring up a great point about the unpaid fees. If someone doesn't pay their phone bill, the vendor could report it to the credit bureaus. So if you had unpaid fees on your prepaid card, it's possible that could happen and it could impact your credit.
It's sometimes necessary to use these cards, but it should be a temporary solution.
I haven't looked at the details of that card, but if there aren't any hidden fees, that's not bad. Not many prepaid cards give rewards, so that's a plus.
The second definition is correct -- no spending except for necessities.
I love waking up early. It just feels like I can get so much more done in the day. I get tired and sleepy way too early in the evening anyway.
Cats are a great way to get you up, but they can be lethal in keeping you in bed longer if they decide to snuggle in the morning.
Saving has always come naturally to me.
I just focus and plan ahead. When it comes to spending money, I wait and see if it is an item that is really necessary to have.