Debt Free For 2016?
Is one of your New Years Resolutions to pay off debt? If so, congratulations! With planning and dedication, I’m sure you can stick to it and achieve your goal. However, resolutions are nothing if they are not backed up with plans and actions. So, now is the time to get organized and figure out your next step. Check out these tips by Shaunna Privratsky at the Dollar Stretcher Blog if you want to cut down on debt in 2016:
-Stop charging on credit cards and create a workable budget.
-Pay off one loan/bill at a time
-Stop turning to debt when faced with a car/medical emergency, instead, build up an emergency fund
-Seek debt consolidation and credit counseling services if you need additional help
Merry Christmas Eve!
Wordless Wednesday: Enclosed Courtyard
Saving Money On Christmas Presents
There are only three days left until Christmas, which means it’s time for the procrastinators of the world to start shopping. If you’re a procrastinator, and you like to save money, like me, then this post is for you! Christmas doesn’t have to bankrupt you every year, and you can still be frugal if you are looking last minute. Check out these tips by Deanna Michaels at From This Kitchen Table for getting Christmas presents on a budget:
-Make a list of everyone you need to buy for, so there are no last minute surprises
-Have a set gift budget for each person, and take the money out in cash so you don’t overspend
-Use homemade gifts: sew, crochet, bake, cook, and craft your way through the holidays
-Buy used- don’t get junky items, but you can find some great books, toys, clothes, and board games at thrift stores
Stretch That Paycheck!
If you’re living paycheck to paycheck, you probably already have a million tips and tricks up your sleeve to make your money last as long as possible. Obviously, you pay your rent and other bills first- then get groceries with whatever you have left over. Then it’s basically gone. But, if you need to make it stretch just a bit further, check out this post by Andrea at Savings Lifestyle for some great tips on making it last longer:
-Make a DAILY budget: pay the bills, buy groceries, save a little, then determine how much of the money left over you can spend per day.
-Skip Starbucks and other fast food places- you save WAY more by cooking your own!
-Learn to DIY- Youtube can show you how to fix or make anything!
Wondering About Refinancing?
Refinancing is when you, well, refinance your home- your negotiate the terms of your mortgage again, or get a completely new one. You can get a lower interest rate, switch from a 30 year to a 15 year, or whatever else you want to change. If your financial situation has changed, but you’re still making the same payments, it may be time to refinance. Check out this post by Radwa Madkour at the House Hunt blog for why refinancing may be a smart decision for you:
-You can reduce your monthly mortgage payment
-Consolidate credit cards or other loans to lower interest rate
-Use it to finance home renovation projects with equity you have built up
Pay Off Your Mortgage Faster With The “Snowball Method”
The “Snowball” Method is Dave Ramsey’s system for getting out of debt quickly. It basically boils down to paying off the smallest loan you have first. So, if you have $2,000 in credit card debt, a $10,000 student loan, a $15,000 car loan, and a $150,000 mortgage, then you aggressively go after the credit card debt first, then move up. Most people think that you should pay off the debt with the highest interest rate first, but by eliminating an entire payment first, you are saving more money. For more info, check out the entire article by Dave Ramsey here, and this post by Stacy at Stacy-Work In Progress, for how she actually used the method:
It not only gives you a feeling of success when you knock out that first debt, it also gives you a small, manageable goal that doesn’t seem impossible to reach. Every time we crossed a creditor off our list, we had reached a goal. I’ve had to stop focusing on the big picture and get down to the details. Those details are what are going to get us to our final goal!
Friday Fun Video: Audit Red Flags
You are more likely to get audited if you do any of these three things. Watch the video to find out!
Money Mindsets That Are Keeping You From Being Rich
For the sake of this post, I’m going to ignore that there are hundreds of other factors that contribute to low income- inflation, wage stagnation, lack of jobs- the list goes on and on. This isn’t an article about that. Instead, I’m going to focus on what you CAN change, rather than what you can’t. It sounds a little touchy-feely, but a huge factor in financial success is your attitude. If you don’t like where you’re at, you take the steps to change it. Check out this post by GoGirl Finance at Levo.com for phrases that rich people never say:
-“I could never do that”(pay off large amount of debt, save 50% of income). You are already aspiring to give up.
-“I’ll just rely on my credit card if I have an emergency”- instead of saving an emergency fund.
-“YOLO”- it’s okay to have fun, but you always need to plan for the future.
– “I’m too young/scared to save for retirement/start investing”- the magic of compound interest favors the young!