Financial preparedness

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Money is probably the biggest source of anxiety for the vast majority of people and that's pretty understandable given that most of us simply wouldn't be able to function without it. Even when everything in life is normal and going fine, your finances will often be a little niggling worry that sits at the back of your head most of the time. But what happens when things go wrong? What about when the worst possible things happen and you're suddenly in a position when your finances have taken a really serious blow? The best thing that you can do is to try to be prepared for the unexpected. You can't always predict when something is going to go wrong, but here are a few of the most common blows to finances and how to put yourself in a better position to weather them.

Accidents

Not only can a car accident have some serious financial ramifications, but the physical and psychological consequences can be incredibly damaging and long lasting. Many of us use our cars to get to work, pick up our kids from school, see friends, run errands, get in the weekend fun, and do just about everything else in as well. That means that if you’re in a position where you're left without a car it can cause your entire life to grind to a halt. Even worse than that is the chance that you could suffer an injury from the accident. Physical injury can stop you from working as well as making everyday tasks difficult to deal with. It's a good idea to have a lawyer in mind should you need one that you can trust to help you deal with the financial problems that can result from a car accident or injury. From the guidance in how to pursue compensation to providing personalized legal representation to injury victims, there are plenty of options for getting the compensation that you need to protect your finances after an accident. Just make sure that you do your research and ask around. 

Losing your job

Losing your job can be one of the most serious financial disasters that a person can face. Ending up without your main source of income can have extremely long lasting effects on your financial situation. If you're in a position where you have a partner who can support you, that's fantastic, but by and large it would be very disruptive to the majority of households. The best thing that you can do to protect yourself from this situation is to make sure that you're putting a portion of your income every month into a savings account. I know this isn't always possible - most people I know are paycheck to paycheck or close to it, but every little bit helps. That way, in the event that you find yourself without an income for any length of time, your financial burden will be a bit easier than if you have no savings. Of course, you won't be able to live off your savings forever but at the very least it can help you to feel a bit less anxious and rushed while you're looking for a new job.

House Problems

In an ideal world, your home is your sanctuary. It should be the place where you feel the safest and most secure. That's what makes it all the more horrible if something happens to your house to disrupt that safety and security. Whether it's a robbery, flood, fire, or anything else, a household disaster can throw your entire life into total disarray. Of course the first and most important thing that you should do to protect yourself are to make sure that you have insurance that covers you in the event of any of these things, which will help mitigate the dollars leaving your wallet if something does happen. Really know and understand what policy covers what - pick up the phone and talk to your agent.You should also make sure that you get your electrical supply, pipes, heating and appliances all checked out regularly so that you don't end up with any nasty surprises. Make sure that you have somewhere that you and your family can go while any repairs are being done on your home and after that, the best thing that you can do is to try to get life back to normal as quickly as possible. The last thing you want is to let this problem have any long term effects on you or your family's quality of life.

Life is always going to throw curve balls at you, that's just the way the world works. But if you're prepared and you know how to deal with them, you can manage to get by with just a few scrapes instead of letting them knock you down fort the count. 

Tips to add?

Happy birthday to MFD, Debbie, AJ, and Griffin today! Lots of important people in my life are March 1 babies. 

Lifestyle Changes You Can Make to Improve Your Personal Finances

Happy Wednesday friends - today I have a post for you from Jacob who runs a personal finance/lifestyle blog called DollarDiligence.com. He actually paid down $25,000 in debt in under 15 months so when he approached me about a collaboration and post exchange, I said absolutely. Then I lost track of it and of course have not written a post for him to share over there. One day at a time, am I right? Anyway I figured you guys would like this because the info is good and it's not in my usual repertoire. Be sure to check out his blog and follow him on Twitter.

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What many people don’t realize is that their lifestyle contributes to their debt. You may think that you’re cutting expenses as much as you can, but you are going to find out within the next few minutes how you can make additional cuts and live even better.

If you’re buried under debt from all sources, you’re not alone. Starting with college graduates, there are over 40 million people who struggle with student debt. Opening it up to all of America, the average household credit card debt is around $6,000. Finally, the average mortgage debt is around $300,000. Yikes!

The fact is that you don’t have to be buried underneath tons of debt. You don’t have to be looking at disconnect notices or wondering how you are going to pay your living expenses. None of this has to happen to you. If it is happening, you can stop it. You just have to make some changes.

Start Downsizing Right Now

It’s time to start getting rid of stuff you don’t need and things that are costing you money. You can capitalize on the nice things you have that you have no use for by selling them on Facebook groups, eBay, or Craigslist or simply have a yard sale.

I’m all about not keeping unnecessary things around. In fact, I won’t buy new clothes unless I absolutely need them. I remind myself daily that the goal is to retire by the time I’m 35. I really want that because I have seen too many people work their lives away and have little to show for it by the time they reach retirement age.

Once you eliminate the clutter, you can take a look at what you really have. These are the things that you need, so make sure you use them. Instead of going to the store and buying something you already have because you need it and can’t find it, organize everything so you know what it is.

It’s amazing how many people clear the clutter and find that they have four or five of something. In that case, put those online sales platforms to use so you can get some of your money back on them.

Eat Well and Cheap

Food is another area you have to watch. I had to start watching how much money I spent on food. I knew nothing about couponing or discount grocery stores until I started exploring ways I could buy groceries cheaper without starving myself.

The internet and the Sunday newspaper are great sources for coupons. Look at the sales papers for individual stores to find the best deals. You also need to review coupon policies so you aren’t surprised at the checkout. 

Some communities have couponing classes at the local library or another location so you can learn how to stretch your dollar as much as possible. Do a little Facebook search to see if there are any events scheduled in your area.

Also, don’t forget about the discount grocery stores, like Aldi, where you can get your groceries at 50 percent to one-third of the cost you would pay elsewhere. There are few name brands in these stores, but they tend to carry healthier options so that you can eat well without paying a fortune. Due to the lack of name brands, there may be no coupons. You can combine coupon shopping at other stores with discount grocery shopping and still come out better in the end without putting your nutrition at risk.

It's also good to go homemade with your meals. It can be tempting to drive through a fast food restaurant because it’s convenient, but your wallet and your cholesterol pay the consequences.

Hygiene without the Cost

Hygiene products tend to cost. If you are the type that has four bottles of half-used lotion sitting on a shelf, commit yourself to using those before buying more.

As with grocery shopping, health and beauty products can be purchased using coupons. You can also explore products that are very good for their price. Just because it is cheap doesn’t mean it’s bad. You have to look a little harder to find the shelf tags for these cheaper products, but they’re there.

Pay Cash for Everything

Of course, paying cash for everything has some major advantages. First, you already have the money. You won’t owe anyone for spending that money. When using credit, you are spending someone else’s cash and you have to pay them back with interest. The interest is how they make a profit.

Therefore, paying cash for everything should keep you from overusing your card. You won’t have to pay any interest which is especially helpful if you tend to overdo it. Everything you purchase is free and clear. Just make sure you don’t overdo it with cash either. The whole point is to save money.

Budget Strictly and Save

Lastly, you need to create a budget that you stick to and save money every chance you get. This is something you have probably heard a million times, but it works. Budgeting can be difficult to get used to at first, but you will love the result.

Jacob recently entered the personal finance blog world with the advent of Dollar Diligence. He’s new, so if you want a fresh voice, feel free to read a few articles. Twitter: @DollarDiligence

Personal Finance Tips to Save Money Today for Summer Travel Ahead

Happy Friday friends! Lauren Davidson, a senior at a prestigious university here in Philadelphia, contacted me about sharing an article to build her writing portfolio. I am not one to give space for free, but sometimes the Grinch's heart grows three sizes in one day, and it did this time, so here it is. 

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With the economy finally picking up steam, many families are looking ahead to their first real family vacation in years, or ever. As the summer season approaches and plans are finalized, now is the time to get your finances in order so you can enjoy the time away without worrying about those post-vacation blues. While there are a number of things you can be doing to get financially prepared for a great vacation, here are three essential personal finance tips.

Create a Budget and Saving Plan

Trying to plan and execute a vacation without a full scale budget and savings plan is certain to lead to disaster – or, at least disappointment. Any financial endeavor worth pursuing must have a plan in place if you want to realize your vision. A successful family vacation requires a plan consisting of three steps:

Establish a goal. Any type of vacation plan is going to have a cost. You need to determine what that cost is and whether it is reasonable in light of your capacity to save for it. That means creating a detailed vacation spending plan, complete with time line and expenses, leaving room for a splurge or two and the unexpected. The last thing you want is to have to turn to your credit cards to cover your expenses.

Establish a savings goal. Based on the amount need to fund your complete vacation, you need to establish a goal for how much money you will need to have in your vacation fund. If your savings time frame is less than a year, you should expect to earn zero interest on your savings. So, if your vacation expenses will run $3,000, you need to calculate how much needs to be saved weekly between now and the start of your vacation. If your vacation is planned for 25 weeks out, you will need to save $120 a week.

Find the savings in your household budget. Saving $120 a week, or around $550 a month can be a tall order for some families. That is why you need a household budget. If the goal is important enough, you should be able to reprioritize spending for a short period of time. Comb through every single expense in your budget – both essential and non-essential expenses – to see what can be redirected to savings. You will be surprised with what you can find. The important thing is to then make your savings contribution the first expenditure in your budget.

Budgeting and saving, especially for a short-term goal, can be difficult to manage for some families, which is why it is recommended that you employ technology to help you. There are two apps that can be particularly helpful. Mint from Inuit and You Need a Budget are personal finance apps available on iOS and Android that let you track and manage your spending and saving in real time. They can also be instrumental in helping you to pay down debt, which is the next essential tip to follow.

Pay Down or Refinance Debt

If you have a large amount of debt, you should consider whether now is a good time to take a family vacation. Paying off high interest debt should be a top priority for any family. However, if your debt is manageable and, more importantly, there is a chance to pay it off or, at the very least, refinance it to lower your monthly expenses, now would be a good time to put that strategy into action. Here are some steps to take with your debt right now.

Credit card debt: See if you can find a 0% introductory rate credit card to transfer any high interest credit card debt. Ideally, you can find a card with at least a 12 month promotional period.

Student debt: While it’s not possible to pay down student debt in a short period of time, you may have available some options for lower its cost, either through student loan consolidation or refinancing.

Mortgage refinancing: With the likelihood of higher mortgage rates in the near future, this may be your last chance to lock in low rates. If you have been considering it, doing so now could lower your monthly expenses to allow for more savings.

Make it a Family Endeavor

By making it a family endeavor, one in which everyone contributes by finding new ways to save and make money, the vacation will turn out to be a rewarding experience and much more enjoyable for all. Enlist the kids to organize a yard sale, or help with selling items on eBay or Craigslist. Putting the kids in charge of tracking the savings goal will keep them involved and active in holding everyone accountable. 

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What do you do to save money for travel? 

Time to pay the piper: February Wallet Watch Report

Back at the end of January I committed to watching my wallet. My rules were:

1. Wallet watch lasts from February 1 - February 29
2. Do not purchase any shoes, apparel, accessories, or home goods.
3. No Amazon shopping.
4. Mind the food and household spending - use the food in the freezers and pantry.
5. No purchasing beauty products or makeup unless something runs out and there is not a feasible substitute.
6. Approved spends: hair cut and color, tip for my massage (set aside in January), weekend away February 12-14, M-F Dunkin Donuts coffee
7. I must track spending and share how I did on Friday, March 4.

So here I am sharing on March 4. Time to pay the piper.

Necessary Spend: February 3
Purchased: Whirlpool side by side refrigerator water filter 
Amount: $45.20
With: debit - house account
Note:  In a cruel twist of fate, the yellow filter light came on on February 2. I was going to re-order from Amazon (which would have broken the rule), but it was $20 more than on Filters Fast so I ordered from there and donated $1 to a clean water fund. 

Date of infraction: February 4
Purchase: A fucking mug
Amount: $7.99
Note: Of all things, a fucking mug. Like hello not a necessity especially for me, queen of mugs. I had been hawking a specific mug for the shore house. I got a message that it was back in stock on zulily for $7.99, which was 50% off the price on Amazon. I jumped on it. I had a free shipping credit so that softened the blow, otherwise the price would have been the same. 

Date of infraction: February 5
Purchase: A bagel
Amount: $2.19
Note: I brought a breakfast sandwich that I found on the back of a shelf in the freezer. That was so freezer burned it was inedible. So I tried, but sort of unavoidable food expense. 

Report: Weekend away February 12-14 in New Orleans
This was an approved spending weekend, but I still wanted to keep spending $$ outside of dinners to $300. I came in at $368.41. I blame the tie dye muumuu. 

Date of infraction: February 19
Purchase: Eyeglass repair kit
Amount: $6.49
Note: Yes, of course I needed it. But it was purchased from Amazon so it was a violation.

Fuck this wallet watch moment: February 19
What kind of butthole doesn't allow for their own pedicure when they h - a - t - e doing self-pedicures? This kind of butthole. 

Necessary Spend/Gold Star Day: February 24
MFD needed to replace his wireless headphones (Mae ate his...for real) and the best price was on Amazon. This is neither here nor there, because it was coming out of his spending money and not mine. I ordered them for him so they could be same day delivery prime-style and resisted ordering anything else aside from foot wash for stank feet that was a necessity. Trust me. I avoided the shoes and books on my wish list like a saint-style person. 

Date of infraction: February 27
Purchase: Three candles, small coffee sign for shore
Amount: $21.01
Note: I should have put a caveat on my home buying restriction, because I am still stocking and decorating the shore house, and that has to be mostly finished this month. But alas I did not, so WHAMMY. Also, the candles were for the Owner's unit so DOUBLE WHAMMY.

Date of infraction: Various
Purchase: Zumba classes
Amount: $18
Note: Was it in the budget? No. But I think it was a good spend for health and wellness. 

Returns from things purchased before South Africa trip:
Sun hat from Amazon - $10.46
Bathing suit from Amazon - $23.99
Bose Charger from Amazon - $29.99 (wrong one)
Skirt and tee from JJill - $57

Groceries:
I did not do a large grocery shopping this month, choosing to work through the freezers and pantry and supplement where necessary with dairy, produce, and chicken or pork. This required more in person errand running and less online grocery ordering, which I hate. I ended up at Target twice for a combo of household stuff and groceries. I didn't buy anything extra. Booyah. I'm still working on clearing out the fridges and pantries and refraining from unrestrained grocery shopping. 

Beauty Products:
I ran out of my Posh day face cream but had a little travel tub of it I had made for Africa, so I am using that up and placed another order on March 1. 

Massage Tip: 
Never used it. 

Did you watch your wallet in February? How did you do?

An InLinkz Link-up

Not worth a dime

Early in September, I wrote a post about things I thought were worth every cent I spent on them. I went on to say that spending is really personal - we all have those things where we say I can't believe she spent $X on that! - while we merrily spend a mint on something someone else thinks is totally not worth it. To each her own, basically, where spending is concerned. That being said, this post is the counter to that one - things I don't think are worth a dime:

Designer jeans. One, I hate jeans. B, I'm not spending $150 on them.

Pumpkin spice lattes - too sweet. I like pumpkin. I can make them at home.

Bridesmaid dresses. You pay a mint for the GD things and they never have smoothly functioning zippers. Come on manufacturers. Get it together.

Hunter boots. I love how they look, sincerely, but spending $150 for a pair of rubber boots is not in my wheel house. I will gladly accept them as a gift.

Manicures. Once every 2-3 months I go into the nail salon for a clean up because I don't clip my cuticles. Every week I do my own. Practice makes perfect.

Diamonds. I'd rather have a unique piece of play jewelry than the expensive gems any day. My mom is dying over this, I know.

3D movies and most movies in the theater in general.

Bottled water. It's wasteful, too. I'll bring my own.

Most warranties, especially those that solicit me by mail.

ATM fees. Those charges piss me off.

Lottery tickets. It doesn't stop me from buying one when it's a big pot though. Spending a dollar on a dream is something I can handle every once in a while.

Hotel rooms. When I'm on vacation, I'm typically not in the room a lot. We're out seeing and doing or beaching. Give me the mid-range room any time and I'll spend the savings on experiences and awesome meals.

Video game systems. I've never owned one and I never will. I had a wii in my possession for a time that was a hand me down. We never hooked it up and after a year in a closet we passed it on again.

What are some things you don't think are worth the money?

 

Worth Every Cent

Thanks to Analisa at Sunset 79 for this post idea.

Spending is really personal - we all have those things where we say I can't believe she spent $X on that! - while we merrily spend a mint on something someone else thinks is totally not worth it. As I've gotten older, through general trial and error and just living life I've found things I think are worth every penny I spend/spent on them. Some actual things, and some experiences or opportunities. My worth every cent list includes...

Extra leg room and the ability to board first on flights

Polarized sunglasses

Farm fresh food

A solid cross body bag

Time (paying for convenience)

A balcony on a cruise or a view of the ocean on land

A knee-length down jacket

Bedsheets

A really great dinner out experience

LASIK

Extra iphone chargers

Saving up for vacation

Sonicare toothbrush

Amazon Prime Membership

Professional hair color (Kristi you rock)

Shampoo and conditioner to protect that hair color

A good set of kitchen knives

Name brand condiments

Lady lunches

Pedicures

Yankee Candles

A colored enamel cast iron pot

What are some things you think are worth every cent?

 

About that Dollar Shave Club

My mom brought me this Chi-Chi's sombrero from  her attic last night. RIP Chi-Chi's.

Update 11/13/17 - We no longer use the Dollar Shave Club monthly service because they are advertising on Sean Hannity's program and we do not support programs who provide shelter to pedophiles like Roy Moore. I placed an order with Dorco and that's how we'll go forward. 

Let me start by saying Tuesday sucks. And also that I was not compensated for this post or given a free product to try and review. I'm just passing what I consider to be a good deal on to you, dear readers.

I saw a blog post on a 'lil hoohaa about the Dollar Shave Club in December. What a genius idea for a stocking stuffer! I promptly signed MFD up. Mail fail - it came, I didn't squirrel it away, and I am into instant gratification so I said open it now! He's been using the razor blades for a month and likes them better than his former razors. Can I take a minute to say that I love that I have a husband who will play along with my desired blog photos?

Anyway...I typically buy Venus to the tune of $12+ per package and MFD uses Schick for $14+ per package. Buying razors always makes me mad because that's freaking highway robbery but if one does not want to walk around like a hairy Sasquatch it's a necessary expense. Could I use cheaper ones? I could. I could also shave my legs with a cheese grater. As I was saying...

Dollar Shave Club offers packages for $1/month, $6/month, or $9 for month. I chose the $6/month package for MFD. The initial package includes the razor and four blades, and four new blades arrive via mail every month. It's marketed towards men, but it's a great deal for women too. I thought let me get in on that, and bought a one off razor and pack of cartridges for myself. I'll just steal one of his or order another set to arrive with his monthly order whenever I'm running out. The razors are good and do what razors should do.

MFD's razor expenses went from $14/month down to $6/month, a savings of $96/year. I only buy cartridges every other month, so I went from $72/year to $36/year for an overall razor savings of $132/year. I love cutting costs like a boss wherever I can, especially if the product performs well at the lower price point.

If you want to save some cash, give Dollar Shave Club a try. I also learned that you can buy blades direct from Dorco USA, which supplies Dollar Shave Club, and if you buy in bulk you can save more - 6 packs of four blade razors for $28, free shipping over $25. So you can save $8 more over a period of six months if you choose. I will never remember when we're out, so I'm sticking with a monthly delivery from Dollar Shave Club that requires no thought or action from me.

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Haikuesday:

Razors. You need them.

Dollar Shave Club saves you cash.

Use it to buy shoes.

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I thought this was a good savings opportunity to pass on - every little bit counts, right?

Time to refuel

This actually is a burnt out light bulb. 

MAN. My light bulb is burnt out you guys. I'm busy at work, I have a zillion errands to run, I can't catch up on hausfrauing, my mind is going a mile a minute all the time. I'm feeling the pull from many directions, and pressure to do and be from all sides. My brain seriously felt like it might fall out of my head yesterday.

This morning I thought about the small things that made me smile over the past week and it helped me relight my fire enough to switch it into gear and finish this week out in ass kicking style.

• Sleeping with the windows open
• New nail polish
• Catching Overboard on tv
• Staying up late to finish a good book
• Sleeping in
• Laughing so much my cheeks and stomach hurt
• Dreaming about soft ice cream
• Found money

• Seeing lots of sweet mullets in person
• A successful new recipe
• A coupon for a free iced coffee
• Two vats of iced coffee in my fridge 
• Spending time with my BFF 
• Hearing one of my more obscure favorite songs on the radio
• The arrival of US Magazine in the mailbox just as the weekend is starting
• Leftovers from my neighbor =  don't need to pack my lunch
• A cheery little pitcher
• Drying lavender
• Kisses from my dogs
• Getting a video of my brother's first college soccer game from my mom since I couldn't be there
• A funky bottle adds a little disco to dish doing 

• Fruit in a bowl
• Turning off the Republican National Convention and going to bed
• A shopping trip with MFD
• The smell of baby powder
• Brother's Pizza
• Getting veggies from my uncle's garden
• Brie
• A three day weekend looming in the not so distant future

What's getting you over the hump today?

p.s. I mentioned coffee twice in that list. That calls for another cup. Cheers.