50 Free or Cheap Ways to Celebrate Progress

In the journey toward financial freedom, celebrating wins, no matter how small, can be a game-changer. Acknowledging your progress and rewarding yourself along the way not only boosts morale but also keeps you motivated to continue on your path to financial success.

The best part? Celebrating your financial wins doesn’t have to break the bank.

Here are 50 affordable and even free ways to reward yourself for achieving your goals:

At-Home Celebrations

  1. Host a DIY Spa Day: Treat yourself to a relaxing spa experience at home with a bubble bath and a face mask.
  2. Cook a Special Meal: Try out a new recipe or indulge in your favorite comfort food.
  3. Have a Movie Marathon: Enjoy a movie night at home with your favorite films and snacks.
  4. Organize a Game Night: Invite friends or family over for a fun game night.
  5. Take a Day for Self-Care: Spend a day pampering yourself with activities you enjoy, like reading or crafting.
  6. Do a Home Improvement Project: Tackle a small home improvement project to improve your living space.
  7. Host a Virtual Celebration: Connect with friends and family virtually to celebrate your achievement.
  8. Create a Vision Board: Spend time creating a vision board to visualize your future goals and dreams.
  9. Start a Gratitude Journal: Begin a journal to reflect on what you’re grateful for and your progress so far.
  10. Plan a Future Trip: Research and plan a future trip to give yourself something to look forward to.

Outdoor Adventures

  1. Plan a Picnic: Pack a picnic and head to a local park or beach for a relaxing day out.
  2. Go for a Nature Walk: Spend time outdoors and enjoy the beauty of nature.
  3. Visit a Local Park: Explore a nearby park and take advantage of the outdoor amenities.
  4. Have a BBQ: Fire up the grill and invite friends over for a BBQ.
  5. Go Camping: Spend a night under the stars at a local campground.

Cultural and Educational Experiences

  1. Visit a Free Museum: Check out a local museum or gallery with free admission.
  2. Attend a Free Concert: Enjoy a free concert or music event in your area.
  3. Explore a Farmers Market: Visit a local farmers market and pick up some fresh produce.
  4. Take a Free Class: Sign up for a free or discounted class to learn something new.
  5. Volunteer for a Cause: Give back to your community by volunteering for a cause you care about.

Fitness and Wellness Activities

  1. Try a New Workout: Experiment with a new workout routine or fitness class.
  2. Go for a Run or Walk: Enjoy the outdoors with a run or walk in your neighborhood or local park.
  3. Practice Yoga or Meditation: Take time to relax and rejuvenate with yoga or meditation.
  4. Join a Sports Team: Get active and join a local sports team or club.
  5. Attend a Fitness Event: Participate in a free or low-cost fitness event in your area.

Social and Community Engagement

  1. Host a Potluck Dinner: Invite friends over for a potluck dinner.
  2. Join a Meetup Group: Connect with like-minded individuals by joining a meetup group.
  3. Attend a Community Event: Check out local community events, such as festivals or fairs.
  4. Host a Book Club Meeting: Start or host a book club with friends or neighbors.
  5. Organize a Neighborhood Clean-Up: Get involved in your community by organizing a neighborhood clean-up event.

Creative and Artistic Pursuits

  1. Take a Painting Class: Explore your artistic side with a painting class.
  2. Write a Short Story or Poem: Get creative and write a short story or poem.
  3. Learn a Musical Instrument: Start learning to play a musical instrument.
  4. Start a Blog or YouTube Channel: Share your thoughts and experiences with others through a blog or YouTube channel.
  5. Create a Scrapbook: Preserve memories and create a scrapbook of your achievements.

Financial and Career Development

  1. Review Your Financial Goals: Take time to review and update your financial goals.
  2. Create a Budget: Develop or revise your budget to align with your financial goals.
  3. Research Investment Opportunities: Educate yourself about investment options that align with your financial goals.
  4. Update Your Resume: Keep your resume current and up-to-date.
  5. Set Up a Meeting With a Financial Advisor: Seek advice from a financial professional to help you reach your financial goals.

Random Acts of Kindness

  1. Pay It Forward: Perform a random act of kindness for someone else.
  2. Write Thank You Notes: Express gratitude by writing thank you notes to those who have helped you along the way.
  3. Donate to a Charity: Support a cause you believe in by making a donation.
  4. Leave Positive Reviews: Share your positive experiences by leaving reviews for businesses or products.
  5. Send Encouraging Messages: Send encouraging messages to friends or family members who may need a boost.

Reflective and Mindful Practices

  1. Practice Gratitude: Take time each day to reflect on what you’re grateful for.
  2. Meditate: Spend time meditating to clear your mind and reduce stress.
  3. Journal: Write in a journal to reflect on your progress and thoughts.
  4. Practice Mindfulness: Be present in the moment and mindful of your actions and thoughts.
  5. Celebrate with a Friend: Share your achievements with a friend and celebrate together.

No matter how you choose to celebrate your progress, the important thing is to take the time to acknowledge your achievements and reward yourself for your hard work.

By celebrating your milestones, you’ll stay motivated and inspired to continue on your financial journey.

Debt Snowball vs. Debt Avalanche: Which is Best?

Staring at a massive debt balance can feel really overwhelming. 

Debt usually balloons over time,  so it is vital to pay it off as soon as possible.

If you’ve ever contemplated reducing your debt load, you might have come across two popular strategies: The Debt Snowball and its sibling the Debt Avalanche. 

But which one is the real champ for your wallet?

Some finance experts argue that one strategy is better than another but the truth is, you can’t go wrong with either (as long as you’re slaying your debt!)

Understanding the Basics

First things first, both methods almost exactly resemble each other in requiring you to pay minimum payments on all your debts while you focus on one debt at time. However, they have different approaches.

The Debt Snowball

 Imagine rolling a snowball downhill, gradually picking up more snow as it goes. That’s the Debt Snowball strategy. Here’s how it works: You list your debts from smallest to largest, regardless of interest rates. You then focus on paying off the smallest debt first while making minimum payments on the rest. Once you knock out the smallest debt, you move to the next, and so on until all of your debts are paid off. It’s all about the psychological win of clearing debts one by one, gaining momentum (and motivation) as you go.

The Debt Avalanche

Now, picture an avalanche sweeping away your debts, starting with the highest peaks. That’s the Debt Avalanche method, also known as debt stacking. How it works: You prioritize debts based on their interest rates (regardless of balance). You tackle the one with the highest interest rate first while making minimum payments on the others. Once you clear the highest-interest debt, you direct all your extra cash flow towards the next highest on the list, and so forth, until all your debts are cleared. This method saves you more on interest payments in the long run, but it might take longer to see those victories.

Which One Should You Choose?

Ah, the million-dollar question! Well, personal finance is just that: Personal. The best strategy really depends on your financial personality and long-term goals.

Go for the Debt Snowball if:

  • You thrive on quick wins and need motivation to stay on track.
  • Seeing tangible progress, like crossing debts off your list, keeps you pumped.
  • You have debts of varying sizes, and tackling smaller ones first feels manageable.
  • You anticipate that your income will grow over time.

Go for the Debt Avalanche if:

  • You prefer to tackle your biggest challenge first.
  • You’re all about saving money on interest and are in it for the long haul.
  • You can stay focused on the big picture, even if it takes a bit longer to see results.
  • You’re juggling multiple debts with substantially different interest rates, and you want to minimize interest costs.

Pro Tips to Supercharge Your Debt Payoff

  1. Establish an Emergency Fund: Having a rainy-day fund will cushion you from unforeseen circumstances such as unexpected medical expenses or car repairs.
  2. Stay Consistent: Whichever method you choose, consistency is key. Stick to your repayment plan like glue and you’ll see progress.
  3. Track Your Progress: Keep tabs on your debt balances and celebrate milestones along the way. Beyoncé wasn’t built in a day! In other words, it’s a marathon, not a sprint.
  4. Cut Costs: Look for ways to trim expenses and funnel those savings into your debt payments. Every little bit helps!
  5. Boost Your Income: Consider side hustles or selling unused items to generate extra cash for debt repayment. Get creative!
  6. Seek Support: Share your debt journey with friends or join online communities for accountability and encouragement.

The Bottom Line

When it comes down to it, both the Debt Snowball and Debt Avalanche are effective payoff strategies. It’s all about finding the strategy that aligns with your financial mindset and goals. Whether you’re sprinting down the debt snow hill or methodically chipping away at the ice, the important thing is that you’re taking steps toward a debt-free future. 

So, pick your method, stay focused, and let’s crush those debts together!

Remember, you’ve got this!

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The 50/30/20 Budgeting Rule Explained

Have you ever felt overwhelmed by budgeting and managing your money? I totally get it. That’s why I want to share a super simple and effective way to get your finances on track: the 50/30/20 budgeting rule.

Trust me, it’s a game-changer!

What is the 50/30/20 Budgeting Rule?

The 50/30/20 rule is a straightforward budgeting method that divides your after-tax income into three categories:

  1. 50% for Needs: These are your essential expenses, like rent or mortgage, utilities, groceries, transportation, and insurance. Basically, the things you need to live.
  2. 30% for Wants: This is the fun part! These are your non-essential expenses, like dining out, shopping, hobbies, and entertainment. It’s all about enjoying life without going overboard.
  3. 20% for Savings and Debt Repayment: This is your future-focused category. It includes savings, investments, and paying off any debts like credit card balances or student loans.

Why Use the 50/30/20 Rule?

The beauty of the 50/30/20 rule is its simplicity. It’s an easy way to see where your money is going and make sure you’re covering your bases without getting bogged down in complicated spreadsheets. Plus, it helps you strike a balance between living for today and planning for tomorrow.

How to Implement the 50/30/20 Rule

  1. Calculate Your After-Tax Income: This is your take-home pay after taxes and deductions like health insurance and retirement contributions.
  2. Divide Your Income: Allocate 50% to needs, 30% to wants, and 20% to savings and debt repayment.
  3. Track Your Spending: Keep an eye on your expenses to make sure you’re sticking to your budget. There are plenty of apps and tools to help you do this.
  4. Adjust as Needed: Life happens, and your budget should be flexible. If your situation changes, tweak your budget to stay on track.

Tips for Success

  • Prioritize Your Needs: Make sure you’re covering your essential expenses before anything else.
  • Be Realistic About Your Wants: It’s okay to indulge, but keep it within that 30% limit.
  • Automate Your Savings: Set up automatic transfers to your savings account to make sure you’re consistently setting money aside.
  • Tackle High-Interest Debt First: If you have debt, focus on paying off the ones with the highest interest rates to save money in the long run.

The Bottom Line

The 50/30/20 budgeting rule is a fantastic tool for anyone looking to get a handle on their finances. It’s simple, flexible, and effective. By following this rule, you can ensure you’re meeting your essential needs, enjoying life, and building a solid financial future. So, give it a try and see how it can transform your approach to budgeting!

FAFSA Loophole Allows Grandparents to Contribute to College Costs

The eternal struggle of balancing college dreams with financial realities just got a whole lot easier, thanks to a little loophole in the latest FAFSA update.

The much-anticipated changes brought by the FAFSA Simplification Act have become a reality. That’s right – the U.S. Department of Education recently unveiled the 2024-25 FAFSA (aka Free Application for Federal Student Aid), and it’s bringing some game-changing updates with it.

What’s the Scoop?

In the past, there was a catch to having a grandparent 529. Withdrawals from these accounts were factored into FAFSA, potentially lowering a student’s eligibility for federal financial aid. 

But recent updates to the FAFSA form have changed the game. These revisions bring positive developments for families saving for higher education. Like now, grandparents can support your education journey without any red tape holding them back.

The ABCs of 529s

A 529 is a state-sponsored, tax-advantaged account into which parents, and honestly, anyone who wants to pitch in (grandparents, cool aunts, you name it), can toss some money into it, to one day cover those pricey college bills.

Many 529 plans let you open an account with as little as a thousand bucks. Although you can’t score a tax deduction for your contributions to a 529 Plan federally, the money you invest in the plan gets to grow TAX-FREE. Plus, when it’s time to make withdrawals for those college bills, you won’t have to fork over any taxes on the earnings, as long as you’re using the funds for eligible expenses.

Funds invested in a 529 plan can cover various educational expenses, including tuition fees, both on-campus and off-campus accommodations, meal plans, textbooks, supplies, computer equipment and software, internet connectivity, and even up to $10,000 in student loan repayments for the account beneficiary and their siblings.

How the Grandparent Loophole Works

In the old system, numerous factors determined the amount of aid students received, such as the household’s total size, the number of children attending college, and various income sources (including assistance from grandparents).

Under the previous FAFSA regulations, assets within 529 college savings plans owned by grandparents were not disclosed on the form. However, distributions from these accounts were considered untaxed student income.*

Due to FAFSA simplification, inquiries regarding financial contributions from grandparents have been removed from the FAFSA form. Distributions from grandparent 529 plans will no longer be classified as income on a student’s tax return under the new FAFSA. Consequently, they will no longer count as untaxed student income, alleviating concerns about affecting need-based eligibility for aid. 

This introduces a grandparent 529 loophole, enabling contributions to grandchildren’s college funds without negative financial aid consequences. 

*Income that isn’t taxed for a student could potentially reduce their eligibility for financial aid by up to half of the amount of cash assistance received. For instance, if you were to withdraw $10k from a 529 plan to assist with college expenses, your child or grandchild’s eligibility for aid could be reduced by $5k under the previous guidelines.

Why It Matters

Let’s be real for a sec. College is expensive!

The typical yearly expense for attending a private, four-year college has surpassed $53k, while it’s slightly above $23k for an in-state public institution, as reported by The College Board.

As college tuition continues to climb, more and more households are relying on financial assistance (grants, scholarships, work-study programs, student loans, etc.) to bridge the gap between their savings and the ever-mounting expenses of a college education. 

So, for a growing number of families, navigating the maze of financial aid options is not just important – it’s absolutely essential for turning their college aspirations into reality.

The Other Advantages of a Grandparent 529 Plan

Beyond the recent FAFSA updates, these plans pack even more punches:

First off, did you know that funds from a grandparent 529 can be used not only to cover traditional college expenses like tuition and textbooks but also to chip away at those pesky student loans. With the flexibility to put those funds towards loan repayments, it’s like getting an extra boost towards financial freedom post-graduation.

Additionally, recent years have seen a relaxation of restrictions, expanding the scope to cover continuing education classes and apprenticeship programs. Moreover, families now have the option to transfer unused funds from 529 plans to Roth individual retirement accounts (IRAs) without incurring income tax or tax penalties.

An there’s more! Grandparents are not locked into a single beneficiary. Nope, you heard that right – they can switch things up and change the beneficiary if need be. So, if a designated beneficiary decides not to pursue college or obtains a full scholarship, they can change the 529 beneficiary to another grandchild or family member.

The Bottom Line

Sure, navigating the world of financial aid can feel about as fun as watching paint dry. But, finding a loophole in the system? Now, that’s the kind of twist we can get behind. So, why not spread the word and let Granny and Gramps know they’ve got a new superpower in their arsenal?

With the new FAFSA changes in effect, now is a perfect opportunity to establish a 529 plan for a grandchild who is not currently enrolled in school.

It’s a win-win situation that’s making waves in the world of financial aid, and I’m here for it! 

College should be free anyway.

The Pros & Cons of Automating Bill Pay

Managing your bills can be overwhelming. You’ve gotta keep track of each bill, when it’s due and how much must be paid. And if you have a lot of bills, that can be very stressful. But if you struggle to stay on top of your bills, automating bill pay is one possible solution.

One of the great benefits of online banking is auto bill paying. With auto bill payment, your bills are paid automatically on a preset date each month and your checking account, debit or credit card can be used as the payment source.

I get it, it’s definitely comforting to know your bills will be handled each month with a minimal amount of effort on your part. And while that seems great, there are some disadvantages to automating bill payment that you should be aware of too. Knowing the pros and cons of auto bill pay, can help you decide whether it’s the right tool for you and your money.

First up, the pros:

1. You’ll save money. Paying your bills on time means few late charges and when it comes to debt, if you’re paying more than the minimum amount due or making multiple payments in a month, it means you’ll pay less interest too!

2. Automating bill pay saves time. Though it’s not an excuse to put your bills out of your mind completely or set it and forget it, you’ll spend less time and energy worrying about paying your bills and whether they were paid on time. You won’t need to sit down and spend a lot of time on bill paying activities.

3. Your credit score might get a boost. Many people find that their credit scores improve after a few months of paying bills automatically and that’s because late payments are a primary cause of lowered credit scores. However, with auto bill pay, late payments should be a thing of the past. Just be sure that you keep your checking account funded adequately.

4. There’s a lower risk of identity theft. Identity theft continues to be a significant issue everywhere and in case you missed it, my social security number was recently found on the Dark Web. While there probably aren’t a lot of people who send payments through the mail, some people still do. However, sending snail mail with your account numbers and credit card numbers available to credit thieves is always a risk. While taking care of business online isn’t foolproof, there is far more effort made to keep your financial information safe.

5. It benefits the environment. Signing up for automatic bill payment often means you start to receive bills electronically or via paperless billing. Which means the company billing you doesn’t have to spend the money or chop down trees to mail you a bill. Which means there’s less impact on the environment. Not to mention the mail carrier will burn less gas delivering those bills to you or payments for you.

Now the cons:

1. A lack of awareness. There’s a reason this is my number 1 con for automating bill pay. Do you know how much your bills are each month? How would you know if there was an increase in your bills or a billing error? Can you be certain that you’ll have enough money in your account to cover the bill? When your bills are paid automatically, there is the potential to lose awareness and this can come at a steep cost to you in overdraft fees.

1. It can be challenging to stop payments. Automatic payments set up with your bank are usually easy to stop. However, automatic payments set up with a credit card or with the merchant can be very challenging to stop. Be sure to read the terms and conditions to make sure you understand the process for stopping payments. In some cases, written notification is required.

2. Excessive credit card debt. If you’re using a credit card as your auto payment source, it’s possible to rack up a lot of debt quickly, especially if you are not budgeting for those payments. Be sure to keep your eye on your balance and pay it in full each month to avoid going deeper into debt and accruing interest.

3. The costs can be higher. Most auto bill pay services are free or very inexpensive. However, some do charge a fee. Some merchants also charge fees if you want to pay your bills automatically. Be sure the costs, if any, are reasonable.

As you can see there are advantages and disadvantages with automating bill pay. If you’ve got a pretty good idea of what you owe, to who, and are in control of your money, the benefits definitely outweigh the risks. The time and money savings are a significant advantage over paying your bills manually.

Regardless of whether you choose to automate your bill payments are not, it’s important that you maintain awareness of your bills and the balance of your payment source. So be sure to review your bills and bank account balance(s) regularly.

Consider the pros and cons I mentioned above before deciding to add (or remove) this tool from your financial tool belt.

More on the blog:

7 Common Money Beliefs You Should Stop Believing

6 Signs Your Finances Are in Trouble

6 Tips to Protect Your Personal Info & Your Money

Technology has come a long way but with all of these advancements, there’s the downside of vulnerability. And that vulnerability is exactly what people who are up to no good are counting on to take advantage. So we must do what we can to protect ourselves and our money.

Most credit card companies offer some sort of credit score and basic identity theft service. This service provides you with an updated credit score, usually once a month, and will alert you to any suspicious activity related to your social security number and other personal information like your phone number or address.

Well I recently received an alert saying that my social security number and some other info of mine had been compromised. Specifically, that it had been discovered on the Dark Web.

This image is a screenshot of the alert I received from Capital One CreditWise. The alert states that my social security number has been compromised and found on the Dark Web.

If you’ve never heard of the Dark Web, it’s a hidden part of the internet that you can’t find with a regular internet browser like you and I have. Privacy? Sounds great right? No! All kinds of illegal activity happens there like the sale of guns, illegal drugs, and even social security numbers.

Unfortunately, I’m no stranger to my email and password combos being compromised as a result of a data breach and by now, you probably aren’t either! Some well known data breaches were Target, Experian, Yahoo!, Linkedin, basically all social media platforms, and even the U.S. Government!

But this is different. I’ve been working hard to pay off my debt and raise my credit score. I don’t want someone to take my identity and benefit from my hard work and I’m sure you don’t either!

So at this point we all need to keep an eye out and make sure we’re doing what we can to safeguard our information and our money. Because hackers don’t want us to live our best lives or better yet they do, and want to benefit from it.

If you received a similar alert, here’s what you should do:

  1. Check and monitor your credit report and report any fraudulent activity.
  2. Monitor your bank accounts and credit card accounts. Place a lock on any debit and credit cards you aren’t actively using.
  3. Change your passwords on email and other accounts that have been compromised. Set up two-factor authentication where possible.
  4. Request a fraud alert or credit freeze on your credit profile with all 3 major credit bureaus (Experian, Equifax, TransUnion). Placing a fraud alert requires companies to to verify your identity (usually by calling you) before granting new credit in your name. You only need to contact one of the major credit bureaus to place a fraud alert on your account and they will notify the others and a fraud alert lasts for a year. A credit freeze on the other hand, limits access to your credit report altogether. This makes it even harder for someone to open a new account in your name and that includes you, and remains in place until you lift it. So keep that in mind before applying for new credit card or loan. Both of these are free to do.
  5. If you haven’t already, create a mySocialSecurity account with the Social Security Administration. By doing this you claim your social security number and benefits before someone else gets an opportunity to.
  6. If you believe someone has used your social security number to file a tax return in your name, report it to the IRS here or by calling 1-800-908-4490.

Here are some additional steps you can take to help protect your personal information and your money:

  1. Avoid using public WiFi
  2. Use a password manager to keep your strong passwords secure
  3. Stay alert by monitoring your credit reports and bank accounts
  4. Shred sensitive documents before throwing them out
  5. Remove your personal information from Google, Facebook, and other sites 

Stay safe out there in these internet streets!

More Resources:

Experian www.experian.com

Equifax www.equifax.com

TransUnion www.transunion.com

Official FTC Identity Theft Website: https://www.identitytheft.gov/#/

7 Common Money Beliefs You Should Stop Believing

This post contains affiliate links.

No matter where you are on your financial journey, by now I’m sure you know that there’s a lot to learn about money. And when it comes to your money, it’s not necessarily the things you don’t know (though this is important too) but rather the incorrect things you believe, that cause many of the real challenges in life. 

I’m talking about money beliefs. What we believe about money as a result of what we’ve been told or even how we were raised. Unfortunately, a lot of what we’ve believed about money isn’t true and all it takes is a few errors in your thinking to ruin your finances and your financial future. Improving your understanding of money and personal finances is the most effective way to get on the right track and on the path to prosperity.

Here are a few common money beliefs you should stop believing:

Income equals wealth. 

Actually, people that make more have a tendency to spend more. Think about lottery winners. They are notorious for losing everything and fast. Many of the families that earn over $1 million per year manage to outspend their income. You can earn a very high income and still live paycheck to paycheck. Trust me, I know. Wealth is what’s left over after you’re done spending. The more money you’re able to invest in appreciating and income-producing assets like investment real estate and index funds, the more you can expect your wealth to grow. A high income provides opportunity but it doesn’t provide a guarantee.

Find out where you stand with Personal Capital’s Net Worth Calculator!

Money has nothing to do with happiness. 

Studies have consistently shown that more income results in greater levels of happiness, especially if it helps us to meet our basic needs. For years, the break-even mark appeared to be $75,000 per year. Meaning if you’re earning less than $75,000, you could expect your feelings of happiness to increase with a greater income. But if you’re already earning that much or more, more money wouldn’t make you feel any better. However, a recent survey by the Wharton School showed a rise in people’s well-being and sense of control as they earned more, above $75,000! Seriously, how good would YOU feel if you had enough money to take care of what matters to you?!

Wills are for rich people. 

Let me tell you, I’m not rich (yet) and I have a will! To be honest, it was one of the most empowering money moves I’ve made and it gave me a different kind of peace of mind. Listen, everyone with children or assets needs a will. I’ve heard how taxing and messy things can get, especially amongst relatives, about the belongings of someone who has passed away. So unless you want the courts to decide who will raise your children and/or receive your assets, you need a will.  A simple will is only a few hundred dollars. You might even be able to do it yourself for less. A couple of sites you can check out are: Trust & Will and US Legal Wills.

Owning is better than renting. 

The “American Dream” isn’t what it used to be. No shade to homeowners. I’m a homeowner but knowing what I know now about homeownership, I would still be renting. From a financial standpoint, whether one is better than the other just depends. Mortgage interest is deductible, but that’s a lot of debt (and risk) to take on for such a little deductible when you compare the two. Plus, the additional costs of homeownership like increasing property taxes and repairs, aren’t talked about enough. There’s no calling maintenance when something is broken. As a homeowner, everything is on you and if you’re not prepared for the home-related “what ifs”, you are setting yourself up for a financial catastrophe. Crunch the numbers and decide for yourself.

Quality and price go hand-in-hand.

Or as I heard recently, “You get what you pay for”. There are many examples of this statement being false. For example, generic drugs are identical to the brand name version and cost much less. The truth is companies price goods and services in order to maximize profit. So that means the perceived value affects pricing, not the actual value. Many items are priced to accommodate expensive marketing campaigns. The Beats headphones are considered by experts to be only worth half the common retail price. In this case, you’re not paying extra for higher quality.

Index funds never win. 

Who said that?! Over time, index funds outperform the majority of managed funds. More often than not, the lower expenses and turnover rate of an index fund are more important than a professional stock-picker. By buying index funds, you get to take advantage of the ability to match market returns for very little expense.

If you’re new to investing, haven’t started yet, or have investments but want to make sure you’re investing in the right thing, check out Delyanne the Money Coach’s Slay the Stock Market course!

You should never have a credit card. 

I almost laughed out loud at this one. Credit cards can be another useful tool if used properly. Credit cards can help you build and maintain an excellent credit profile and you’ll need that if you ever want a job, insurance, to rent or apply for a mortgage. However, credit cards also provide a means to spend money you don’t actually have. This can be a challenge or a godsend, depending on your individual circumstances. It was a challenge for me, as I ended up in $50,000 credit card debt!

Do any of these erroneous money beliefs sound familiar? Can you tell what money beliefs are actually limiting your financial growth? Consider all of your money beliefs and question if they might be incorrect, too. Having accurate beliefs enhances your money decision-making skills and results so do your best to avoid buying into the myths.

More on the Blog:

6 Signs Your Finances Are in Trouble

8 Ways to Curb Your Overspending

6 Signs Your Finances Are in Trouble

Most financial challenges aren’t solely due to unfortunate events. They usually have a foundation of poor, consistent financial habits. With effective habits, most financial challenges can be handled. However, with improper financial habits, even the smallest unexpected expense can be devastating.

While there are many negative financial habits one could be guilty of committing, there are a few that are especially damaging, and the key is to recognize them and do something about it before it’s too late.

Here are 6 signs your finances are in trouble (and some ways you can fix it):

1. You can’t save consistently

People that are consistently free of financial challenges have a consistent saving habit. There’s always money available to handle the inevitable financial emergencies if you save part of your paycheck each time you get paid.

Make a promise to yourself that you’ll save a certain percentage of each paycheck. Getting on a written budget that prioritizes saving can help. If you’re on a tight budget, look at cutting back or eliminating things you don’t really need.

2. You spend excessively

The more you spend, the less you have to save. It’s that simple. Spending too much money makes you vulnerable and more likely to have financial challenges. Very excessive spending leads to accumulating debt, which is the ultimate financial curse…trust me…I know!

Look for other ways to amuse yourself other than spending money you don’t really have on things you don’t really need. I provide 30 things to do instead of spending money in this Instagram post.

3. You excessively use credit cards or other forms of debt

Debt is a major obstacle to financial health and stability. Debt can be such a burden and most debt comes with expensive terms that makes debt a costly way to spend money and that can make getting out of debt nearly impossible.

Beware of debt. Budget for essential items and save for emergencies and big purchases. If you have to use debt to purchase something, especially something non-essential, it’s a good bet that you can’t afford it.

4. You ignore bills when you get them

No one likes to pay bills. However, bills have a way of piling up and eventually have to be paid. During that time, you’re still spending money that should be going toward your bills. This is a huge mistake.

Make looking a your bills a ritual you perform one day a week. Spending just a few minutes at the beginning of each week looking at what bills are coming due can help you make sure your money is being allocated to what you need.

5. You’re constantly paying penalties, fees, and excessive interest

Did you know that credit card companies earn more money from late fees than they do from interest? ATM penalties are steep and those interest-free loans have huge interest penalties if you don’t pay them off on time.

Paying your bills on time can help you avoid late fees. If you know you need to pay a bill late, call or go online to make a payment arrangement, if possible. Use ATMs that don’t require a fee and/or budget for the cash you need for the week and take it out all at once. This will lessen the chances that you’ll run to an ATM for cash without a plan.

6. You’re raiding your savings, investments, and retirement accounts

There may be times that dipping into your savings or other accounts might be justified but it should be for a good reason. Cashing out part of your 401(k) for a trip to Disney World doesn’t qualify as a good reason. Wiping out your savings because you spent more money than you had to spend at Target probably isn’t a great idea either.

Savings accounts are for saving. Investment and retirement accounts are for saving and building wealth for your future self. Don’t rob your future self.

Check out this related post:

8 Ways to Curb Overspending

8 Ways to Curb Overspending

Overspending is a big challenge for many of us. Our eyes get a little big for our wallets, and we give in to impulse. It’s actually like overeating. It’s the result of short-term thinking without giving the consequences full consideration before making the decision to do it. And if you think about it, spending money is kinda like a drug…a quick way to feel better.

I know firsthand how challenging getting in control of your overspending can be, so I’ve rounded up 8 ways to help you keep your unnecessary spending in check:

1. Spend According to Your Budget

You do have a budget right? Right?! Make a budget and set a limit for the amount of money you can spend. If you get the urge to purchase something, whip out your budget and make a responsible decision based on the what your budget is telling you.

2. Remember Short-Term Pleasure Leads to Long-Term Pain

If it’s pleasurable in the short-term, you’re going to suffer in the long-term. The opposite is also true. Working out every day isn’t always fun fun in the moment, but the rewards are great and can be long lasting. A $300 Ivy Park outfit might be satisfying today, but what about three months from now when it’s too hot to wear it?

3. Give Yourself Space Before Making a Decision

Like other habits, overspending lacks thought. It’s automatic. You’ve learned to receive pleasure by giving in to the impulse to spend. Stop for a moment, breathe and disengage your mind from the path that it’s on. Try spending 30 minutes doing something else and see if you still want to buy it.

4. Consider What Your Overspending is Actually Costing You

Too much debt can make it impossible to get a mortgage or a car loan. You might not get to take that vacation and if you do, coming back to a mountain of debt will quickly wipe away all the relaxing vacation feels. There may even come a time where you can’t purchase the things you need to live. Not to mention, you might also get stuck working well beyond the age you desire because you spent the money on unnecessary things.

5. Avoid Opportunities to Overspend

When are you most likely to overspend? Is it while visiting your favorite store or website? Just stay away. Avoid the temptation altogether. Make a list of your favorite places to spend money and remind yourself of the consequences.

6. Note How You Feel Before and After You Purchase

Do you spend when you’re not having a good day? What emotions trigger the urge to buy something? How do you feel afterwards? Before making a purchase, ask yourself if you need the item or if you’re just making yourself feel better. If you’re just making yourself feel better, don’t buy it, and if you can, find another…more beneficial way to feel better.

7. Feel and Express Gratitude

Ask yourself what you’re grateful for before overspending. Studies have shown that feelings of gratitude increase willpower leading to reduced spending. Gratitude can increase resistance to instant gratification because you end up feeling content with the things you already have. Give it a try. Also keep in mind that stress and anxiety lower willpower, significantly.

8. Track Every Penny You Spend

When all else fails, review how much you’ve spent. Keep a running total and sure to include everything, no matter how small. You’ve spent a fortune on small items over your lifetime. Track it all and see how you feel once you’ve totaled it up.

Avoid spending money on things you don’t need. Overspending is a dangerous financial habit. Replacing your savings always takes longer than you think it will. Relying on debt is even worse. If you currently overspend, give this issue the time and effort it deserves because overspending is the fastest way to destroy your finances.

5 Money-Saving Gift Ideas for Valentine’s Day

Valentine’s Day is an occasion to show others that you care by giving gifts from the heart. I mean who wouldn’t want to give their loved one everything their heart desires? However, that’s just not feasible or necessary, and many store-bought gifts costs way too much, especially if you’re on a tight budget. The good news is you can have a great Valentine’s Day without spending a lot of money! Here are 5 money-saving gift ideas for Valentine’s Day:

1. Celebrate Early

There’s no rule that says you can’t celebrate early. Valentine’s Day might officially fall on February 14th, but why not consider celebrating in the days before or after. Restaurants, flowers, and cards are all significantly less expensive. But if you still want to celebrate on the 14th and want to get out of the house, consider a breakfast date. It’s the most important meal of the day and the least expensive. Lunch is another less expensive option.

2. Plan an Experience at Home

It’s a pandemic! Rather than taking your significant other out for a night on the town, consider a quiet day or evening at home. Plan an indoor picnic on the living room floor, cook a delicious meal for your loved one or chef it up in the kitchen together, queue up something to watch on Netflix, give each other a massage, listen to music and just be with your partner. Good conversation and company are free.

3. Make it Yourself

At the end of the day, it’s the thought that counts. There’s no need to spend $4.99+ on a greeting card that will get thrown in the trash, so opt to make a card this year that they’ll remember forever. You could also write a poem or love letter and frame it, make a scrapbook, make a list of everything you love about your partner, or grab a gift basket and fill it with small items your partner would enjoy and use.

4. Knock Out Something on Their To-Do List

My to-do list is constantly growing and a little assist would go a long way. If your significant other has a lot on his or her plate, consider creating coupons for tasks they mention they have to do (or complain about) often or just jump in to help lift the load. I promise this act of service will go a long way.

5. Skip the Day Altogether

You don’t need the calendar to tell you when to express your love for someone plus some of us just got finished celebrating Christmas. Consider skipping the day altogether especially if you give gifts throughout the year, just make sure your partner is okay with it first. And if you’re at this stage in your relationship, make a plan together for how you’ll spend the money you saved by skipping the holiday.

Bonus

Roses cost a small fortune on Valentine’s Day so find another flower your significant other loves. Also, florists are more expensive than the grocery store or the farmer’s market. Grab a bouquet and deliver them yourself!

No matter what you decide to do this Valentine’s Day just remember that love doesn’t require money. A fun and memorable Valentine’s Day can be enjoyed on a budget.