HisandHerMoney.com

When two people with opposite money views marry, it’s the ultimate in “He said, she said.”

He wants to save every penny so they can afford their dream house within the next five years, and she would rather live it up today while pushing off their dream a little longer.

She wants to budget every dollar to track everything they buy, and he thinks they can trust themselves to keep within their spending limit without accounting for every single purchase.

He thinks golf clubs with a four-digit price tag are a reasonable want, and she thinks they’re a ridiculous luxury reserved for the very wealthy.

And on and on it goes.

For Talaat and Tai McNeely, a pair of high school sweethearts ready to take their relationship further, the money differences were more than just an occasional spat — they were an obstruction standing between the couple and marriage.

As the McNeelys share on their blog, hisandhermoney.com, here’s a sampling of some of the financial issues they were dealing with before they married:

  • Do we let our credit scores dictate if we are compatible for marriage?
  • How will our previous money habits play a role in our marriage?
  • Do we merge our finances?
  • How can we work together to become better at life and win with money?
  • Am I a loser because I have now made my debt problems my future spouse’s problems?
  • Can I change, or is my past really who I am?
  • Should I have a secret account just in case our money situation gets worse?
  • How will we purchase a home? Do we put it in both of our names and risk not having a low interest rate due to the lower credit score?
  • Do I have to take full responsibility for our finances simply because I’m better at it?
  • Will we have to rely on two incomes to run our home?
  • What will our lives look like five years from now?

Despite one partner being debt-free and the other carrying $30,000 in debt, the McNeelys decided to get married. They knew the financial road ahead could be bumpy, but they were prepared to weather the storms together for the sake of their relationship.

Today, after years of struggling to chart their own joint money path, the McNeelys are completely debt-free, have paid off their mortgage and run a 6-figure business online. They have learned enormous life lessons on their journey toward financial wellness, and they generously share these lessons on their blog, podcasts, videos and through their private community of couples seeking financial guidance.

The couple is passionate about helping others overcome their financial differences and build a better relationship and a better future together. Check out hisandhermoney.com to learn their secrets.

Your Turn: How do you and your partner deal with money differences? Tell us about it in the comments.

Learn More:
paychecksandbalances.com
hisandhermoney.com

Getting Ahead on Your Student Loan Before You Graduate

young woman working at a laptop in an officeAs you prepare for graduation and begin scouting different employment opportunities, be sure to look at the larger picture before you accept a position.

Hopefully, you’ve chosen a career path that will bring you joy and gratification. Equally important, though, is a job that can support your lifestyle choices. While the positions you consider for your first post-college job will likely offer the opportunity for growth, you’ll still need to pay your bills—and make your student loan payments—as soon as you graduate. A job that brings you satisfaction and a pleasant working environment will not last long if the salary it offers causes you to sink into debt.

How do you determine what kind of salary will be large enough to support your desired lifestyle?

To get this information, you’ll need to create a mock monthly budget for your post-college self.

Using a spreadsheet or paper and pen, create two columns, one for expenses and one for actual dollar amounts. In the expense column, list your typical monthly expenses, including housing costs, transportation costs, health insurance, groceries, entertainment costs, clothing costs, dining out, savings, etc. In the dollar column, list the amount of money you expect to pay every month for each expense.

Your budget should look something like this:

ExpenseMonthly Cost
Housing$1,200
Transportation$300
Health Insurance$250
Groceries$350
Student Loan Payments$350

It will take some research and some hard, honest thinking to come up with these numbers. For housing costs, take a moment to think about where you see yourself settling down after college. You don’t have to know the exact neighborhood you’ll live in, but it’s good to know the city that will work best for you in terms of lifestyle, career path, and family plans. You can narrow this down to a few choices so long as you keep it reasonable. Once you’ve chosen your desired location, research the median rental prices in the area on real estate sites like Zillow and Redfin.

Next, work on transportation costs. If you already own a car, you’ll have an idea of what it costs you each month. Otherwise, spend some time thinking about what kind of car you want to drive. You can find listings on Carfax.com. Include costs like auto insurance, gas, and upkeep, in this category.

Or, if you plan on living somewhere with reliable public transportation, you might choose this route instead. Make a calculation of how much you’ll spend on bus and/or train rides, along with the occasional cab or ride-share ride.

Complete your budget using your best estimates for each category. Once you’ve filled out each expense amount, add up your total and multiply it by 12 to give you the amount of money you’ll need each year for supporting the lifestyle of your choice. (This number will increase with inflation, but since current salaries will likely increase along with the inflation rate, this exercise can still give you an idea of the annual salary you’ll need.)
Now that you have these numbers, you’re ready to go ahead with your job search. When considering possible positions, you don’t have to choose the one that pays the highest salary if there are other things about the job you don’t love. However, it’s best to pursue positions that can actually support you.

Your Turn:
Are you choosing your first job for the salary or for other factors? Share your take with us in the comments.

Learn More:
knsfinancial.com
usnews.com
usnews.com
brazen.com

Give Your Finances Some Therapy With Amanda Clayman

Protrait of Amanda ClaymanMeet Amanda Clayman, a financial therapist and influencer who uses a therapeutic approach to help people get their finances on track.

Clayman is no stranger to financial struggles. She shares her journey on her blog, telling the story of the “$19,000 haircut” which served as her personal rock bottom and forced her to take her career in a new direction. Clayman makes it clear that it was not a lack of financial literacy or an upbringing steeped in bad money habits that led to her money troubles. Instead, it was the snowball effect of one bad choice leading to another, until she was struggling under a mountain of debt with no visible way out.

Today, Clayman is a popular financial influencer and a practicing clinician who specializes in money issues. In 2006, she partnered with The Actors Fund and founded a cognitive behavioral therapy-based financial wellness program. She says that money can be a tool for transformation, and this belief helps shape her approach for financial healing.

Clayman tells her followers that financial challenges are inevitable; they can only control their reactions. They need to be proactive at developing a healthy way to handle these setbacks so they can set firm, loving boundaries, make value-based decisions and align behavior with intentions when faced with a financial hardship. Ultimately, this will enable followers to view these challenges as a source of personal growth and empowerment.

You can read Amanda’s story on her blog and follow her on Twitter at @mandaclay to learn more about this transformative approach toward money management and financial wellness.

Your Turn:
Do you have a plan in place for financial setbacks? Tell us about it in the comments.

Learn More:
twitter.com
amandaclayman.com

5 Ways to Trim Your Fixed Expenses

Monthly expense sheet with glasses and claculator on deskWhen trying to trim a monthly budget, most people don’t consider their fixed expenses. These recurring costs, which include mortgage payments, insurance premiums and subscription payments, are easy to budget and plan for since they generally remain constant throughout the year. While people tend to think there’s no way to lower fixed expenses, with a bit of effort and research, most of these costs can be reduced.

Here are five ways to trim your fixed expenses.

1. Consider a refinance
Mortgage payments take the biggest bite out of most monthly budgets. Fortunately, you can lower those payments by refinancing your mortgage to a lower interest rate. The refinance will cost you, but you can roll the closing costs and other fees into your refinance loan. Plus, the money you save each month should more than offset these costs. A refinance is an especially smart move to make in a falling-rates environment or if your credit has improved a lot since you originally opened your mortgage.

2. Lower your property taxes
Taxes may be inevitable, but they aren’t set in stone. You may be able to lower your property taxes by challenging your town’s assessment of your home. Each town will have its own guidelines to follow for this process, but ultimately you will agree to have your home reappraised in hopes of proving its value is less than the town’s assessment. This move can drastically lower your property tax bill; however, if you have made improvements to your home, it may be appraised at a higher value, which could raise your taxes.

3. Change your auto insurance policy
The Geico gecko and Progressive’s Flo, who love disrupting your favorite TV shows, actually have a point: You may be overpaying for your auto insurance policy.

If you’ve had the same policy for several years, speak to a company representative about lowering your monthly premiums. By highlighting your loyalty and having an excellent driving record, you may be able to get a lower quote. You can also consider increasing your deductible to net a lower monthly premium.

If your insurance company is not willing to work with you, it might be time to shop around for a provider that will. A few minutes on the phone can provide you with a significant monthly savings for a similar level of coverage. Once you have a lower quote in hand, you can choose to go back to your original provider and tell them you’re seriously considering a switch; they may change their mind about their previous lowest offer.

4. Consolidate your debts
If you’re carrying a number of outstanding debts, your minimum monthly payments can be a serious drain on your budget. Plus, thanks to the high interest rates you’re likely saddled with, you might be feeling like that debt is going nowhere.

Lucky for you, there is a way out. If you have multiple credit cards open, each with an outstanding balance, you might want to consider a balance transfer. This entails opening a new, no-interest credit card, and transferring all of your debts to this account. The no-interest period generally lasts up to 18 months. Going forward, you will only have one debt payment to make each month. Plus, the no-interest feature means you can make a serious dent in paying down that debt without half of your payment going toward interest.

Another way to consolidate debt is to take out a personal loan at Advantage One Credit Union. Our personal loans will allow you to pay off all of your credit card debt at once. You’ll only need to make a single, affordable monthly payment until your loan is paid off.

5. Cut out subscriptions you don’t need
Another fixed expense most people mindlessly pay each month are subscriptions. Take some time to review your monthly subscriptions and weed out those you don’t really need. Below, we’ve listed some of the most commonly underused monthly payments:

  • Gym membership
    Are you really getting your money’s worth out of your gym membership? It may be cheaper to just pay for the classes you attend instead of a full membership. Or, if you have a favorite workout machine at the gym, consider purchasing it to use at home for a one-time cost that lets you to drop your gym membership.
  • Cable
    Why are you still paying for cable when you can stream your shows for less through services like Netflix and Hulu? If you don’t want to cut out cable entirely, consider downgrading to a cheaper plan that drops some of the premium channels you don’t watch much.
  • Apps
    How many apps are you signed up for? You may not even remember signing up for an upgraded version of an app you rarely use. A quick perusal of your monthly checking account statement or credit card bill can help you determine how much these subscriptions are costing you. Drop the apps you’re not using for more wiggle room in your monthly budget.

Your fixed monthly expenses are actually not as “fixed” as you may have thought. By taking a careful look at some of these costs, you can free up more of your monthly income for the things that really matter.

Your Turn:
How have you lowered your fixed monthly expenses? Share your best tips with us in the comments.

Learn More:
debtroundup.com
experian.com
thesimpledollar.com

Book Review: The Latte Factor: Why You Don’t Have To Be Rich To Live Rich

The Latte Factor cover - white cup on saucer full of coffee with a dollar sign drawn in the cremeIf personal finance books make your eyes glaze over, but you can never say no to a page-turning novel, this book was written for you.

In The Latte Factor, best-selling author David Bach and co-writer, John David Mann, present a personal finance book that reads like a novel. It tells the story of Zoey, a young woman in her 20s who is perpetually struggling to make ends meet. Like many of her contemporaries, Zoey is weighed down by staggering student loan and credit card debt.

Though she’s working in New York City at her dream job, she can never seem to get ahead of her expenses. When Zoey’s boss suggests she get acquainted with Henry, the barista at the coffee shop Zoey loves, she has no idea how significantly this connection will change her life.

Henry is an elderly gentleman who is working at a relatively low-level job, but has built himself a comfortable cushion of savings. He shares his three primary principles of financial freedom with Zoey, which she immediately dismisses as nonsense. Soon, though, she comes to appreciate that small but significant changes in her daily routine can make a huge difference in her finances. She learns to adapt Henry’s principles: Pay yourself first, make savings automatic and live the life you want today. Slowly, she makes the changes she needs in her life to achieve financial freedom.

Bach draws on his decades of experience counseling clients through debt and toward a life of responsible money management to build a realistic story that is both engaging and enlightening. You have to believe he’s helped many “Zoeys” along the way.

Some readers are uncomfortable with the fact that Zoey is portrayed as a caricatured female who does not know how to handle her money and that the book is essentially badly disguised “mansplaining” in a way that talks down to women. Others, though, have found The Latte Factor to be a fun book that leaves readers with lots to think about.

Do you have to be rich to live rich? Read The Latte Factor and find out today!

Your Turn:
Have you read The Latte Factor? What did you think about this book? Share your thoughts with us in the comments.

Learn More:
goodreads.com
policygenius.com
amazon.com

Tw

Step 6 Of 12 Toward A Debt-Free Life: Trim Expenses

Now that we have a budget, let’s slim it down!

a couple plan their finances in a journal

You’ve already practiced spending less thanks to Step #2 in this series. Now, it’s time to get serious about it.

Take a long, hard look at the money you spend each month and find your weak spots.

  • Where do you spend the most on unnecessary purchases?
  • What’s your particular vice? You may even have several spending traps.
  • How can you cut back on you daily expenses?

Any extra money you save goes toward your debt payments.

Your Turn:
What’s your spending trap? Share it with us in the comments.

 

Six Figures Under – Dig Out From Your Mounting Debts

Six Figures Under personal finance made publicWhen Stephanie and her husband found themselves looking at a six-figure student loan debt load in 2009, they didn’t know how to start freeing themselves. Their small family’s budget was just barely making it to the end of each month. How would they possibly pay off such an overwhelming amount of debt?

Fast forward to the end of 2016 and that huge, monstrous debt was completely gone.

How did they do it?
On her blog, Six Figures Under (SixFiguresUnder.com), Stephanie shares her family’s ongoing story, detailing the steps she’s taken and the changes she’s made in her family’s lifestyle for paying down their debt while continuing to live financially responsibly. She is brutally honest about her struggles and successes, sharing the mistakes she’s made along the way and the triumphs she’s celebrated. She also offers readers complete transparency into her family’s finances, posting actual numbers about the income her family earns, their fixed expenses, investments and the way they choose to spend their money on non-fixed expenses.

But Six Figures Under is not just about Stephanie’s story. Stop by the blog and you’ll find a large community of active followers joining in on a mission to pay down their debts and live a more financially conscious life.

For 2019, Six Figures Under is on a Debt Smash-athon charge. The blog’s community is invited to share the amounts of debt they’ve paid down each month. The numbers are then tallied and posted on the blog with the big wins singled out with special mentions. In March 2019, the Six Figures Under community paid down a total of $149,866.53 of debt, invested $31,202.12 toward retirement and put away $39,151.21 for big savings goals. The feeling of togetherness motivates members to boost their efforts in paying off their debts.

There’s more than numbers to Six Figures Under. Check out the blog for the following categories and topics:

  • Frugal Living Ideas – Here, you’ll find tips and tricks for saving money on everything from family road trips to grocery bills. Posts are always engaging and packed with actionable tips you can apply to your own life today.
  • Budgeting and Finance –  The blog advocates living on last month’s income—and shows readers how to live this way, plus creating a manageable and realistic monthly budget.
  • Debt – Read up on tips for increasing your debt payments and common mistakes people make when handling their debt.
  • Ideas for Increasing Income – These posts cover a broad range of money-making ideas, from running a killer yard sale to starting a thriving business on Etsy.

Members of the blog get friendly monthly reminders inviting them to share their progress with the rest of the community, as well as frugal living tips and ideas delivered directly to their inbox.

The Six Figures Under blog is an inspirational, friendly place that is packed with money management tips and strategies for doubling down on your debt payments. Check it out today and join the debt-smashing fun!

Your Turn:
Do you have a target date for paying down all debt? Or are you just chipping away at it, month by month? Share your debt-paying strategy with us in the comments.


SOURCES:

https://www.sixfiguresunder.com/

https://www.sixfiguresunder.com/our-story/

http://www.barebudgetguy.com/six-figures-under/

https://www.sixfiguresunder.com/family-budget-update-march-2019/

Step 5 Of 12 Toward A Debt-Free Life: Create A Budget

young woman writing financial information in a notebook and examining her credit cardThis month, you’re going to organize your finances. Hold onto every receipt, bill, paystub and invoice you produce throughout the month. Sometime during the last week of May, sit down with all of your paperwork and start crunching the numbers.

When you’re through, you should have all of these questions answered:

  • How much is my net monthly income?
  • How much are my monthly fixed expenses?
  • How much are my monthly non-fixed expenses?

Now that you have the numbers in front of you, work on creating a budget. Designate the necessary funds for your fixed expenses. Then, with the remaining money, determine how much you will spend in each non-fixed expense category; like groceries, clothing, entertainment, etc.

Put your minimum debt payments in the fixed-expenses category, with another category for extra debt payments in your column of non-fixed expenses.

Your Turn:
What was the most challenging part of creating your monthly budget?

5 Ways To Spring Clean Your Finances

Young black man sits at computer desk planning his budget on a computer.Q: Spring is here! I’ve cleaned out my house and now I’m ready to take on my finances. I’d love to give them a thorough cleaning, too. Where do I start?

A: It’s wonderful that you’ve decided to clean up your finances. Springtime is months after the holiday squeeze and still a while away from the pricey summer season, making it a prime time for whipping your finances into shape.

So, let’s get cleaning!

1. Dust Off Your New Year’s Resolutions
We get it: New Year’s resolutions get stale as soon as the calendar hits February. But this was the year you were really fired up and ready to conquer the world. Why sell yourself short when your goals are actually within reach?

Use the fresh energy and renewal of spring to revisit the list of resolutions you penned back at the end of 2018. What were your budgeting goals? What were your savings dreams? Have you achieved any of those goals? If not, what’s holding you back?

Take stock of where you are financially and get back on track, moving forward and toward those goals. It’s not too late to make it happen this year!

Do it today: Dig out that paper with your New Year’s resolutions and go through your financial goals one at a time. Did you overreach? Were you irresponsible? Tweak and adjust as necessary, create a new tracking system if the existing one isn’t working, and then get out there and own those goals!

2. Sweep Out Your Monthly Budget
Now that you’ve taken stock of your resolutions, take a good look at your monthly budget.

Review your spending habits of the last few months. What are your weak spots? Where can you cut back? Have you been alotting too much money for one category and not enough for another? It’s time to take stock!

Do it today: Review your monthly budget and choose one area to trim. Create concrete and realistic steps to make that happen. For instance, try the money envelope system to keep you on track, or stick to cash-only so you don’t slip up. Your budget will thank you!

3. Freshen Up Your W-4
You might be celebrating a generous tax return this year, but that only means the government has been handling some of your money all year long instead of it earning more for you. It’s almost like giving the government an interest-free loan! You could have used those funds to start investing, add to an existing emergency fund, launch a business or to save for your dream summer getaway.

Take a closer look at your W-4 so you don’t overpay in taxes again this year.

Do it today: Spend some time researching your best withholding options or ask your accountant to help you work out the numbers. Adjust your W-4 accordingly and submit it to the payroll specialists at your workplace.

4. Pile Up Your Savings
Once you’re cutting down on your spending habits and taking home a larger check each payday, why not use the extra money to bump up your savings? You can add to an existing fund, build a new one, open a Savings Certificate or start investing. You have many great options!

Speak to an Advantage One employee today to find out about our fantastic savings options.

Do it today: After choosing a savings option, stop by [credit union] to set up a direct deposit. Each month, your money will be automatically transferred from your checking account to your new account. It’s the ultimate in set-it-and-forget-it!

5. Toss Your Debt
This spring, while you try on old, scratchy sweaters and make piles of junk to toss in the trash or sell for cash, why not get rid of your debt, too?

Debt is ugly on you. It holds you back from moving forward, keeps you in a spending trap that only gets stronger with time and clings to you like caked-on mud. Wash it all off this spring with an actionable plan to get rid of that debt for good!

Do it today: We know that paying down debt is easier said than done. But, you can do it! All you need is a plan. Review your debts and pick one to pay off first. It can be the debt with the smallest amount of total owed or the one with the steepest interest rate. Find a way to double down on your payments toward that debt. You can do it by taking on a side hustle, seeking a promotion at work or trimming existing expenses. After you’ve paid down this debt, move onto the next one. Accelerate its payoff by applying the total payment amount from your first debt to the new one – in addition to the regular payment you were making on it. Keep going until they’re all gone. It might take until next spring, but eventually, you’ll kick all of your debt to the curb!

Spring is here—it’s time to freshen up your finances so they’ll be in tip-top shape for summer!

Your Turn:
How do you clean out your finances in the spring? Share your best tips with us in the comments.

SOURCES:
https://www.thebalance.com/spring-clean-your-finances-2385567

https://www.moneytalksnews.com/13-tips-for-spring-cleaning-your-finances/

https://www.google.com/amp/s/amp.kiplinger.com/article/retirement/T065-C032-S014-3-ways-to-spring-clean-your-finances.html

7 Signs You’re Living Beyond Your Means And How To Fix Them

Young black couple counting money and comparing to bills due with looks of concern1. You’re carrying a credit card balance from month-to-month

If you have a high credit card balance and you’re paying just the minimum each month, you can end up carrying this balance for years while paying a lot in interest. You might also be tempted to make more purchases on this card since it already has a balance.

The fix: Try to make double payments and stop using the card until the debt is paid off.

2. You stress about bills

Monthly bills should be fixed into your budget. You should be able to pay them easily without any stress.

The fix: Take a look at your monthly budget and find ways to cut back.

3. You can’t save 5% of your monthly income

If you can’t put away at least 5% of your monthly income into savings, you’re living beyond your means.

The fix: Again, trim your expenses and restructure your budget to include at least 5% for savings.

4. You don’t have emergency and rainy-day funds

Ideally, you should have an emergency fund to cover major unexpected expenses, and a rainy-day fund for small expenses you can anticipate.

The fix: Start building your funds now by putting away as much as you possibly can each month.

5. Your mortgage payment eats up more than 30% of your monthly income

Most financial experts agree that your monthly mortgage payment should not exceed 30% of your take-home pay.

The fix: You have two choices here:

1.) Find ways to boost income. Seek a raise at your current job, freelance for hire or find another side hustle for extra cash.

2.) Scale back your mortgage payments. Consider a refinance. Speak to a mortgage expert at Advantage One to see if this is right for you. If your mortgage is crippling your budget, consider downsizing to a smaller and cheaper place.

6. You lease a car you can’t afford to buy or finance

Can you afford to pay for or finance your car? If the answer is no, you’re in financial trouble.

The fix: Downgrade your vehicle to one you can actually afford.

7. Your financial decisions are influenced by your friends’ spending habits

Thanks to the hyper-sharing culture of social media, the pressure to keep up with the Joneses is stronger than ever. If you find yourself making financial decisions based on your friends’ choices, you’re likely spending more than you can afford.

The fix: Stop looking over your shoulder and keep your eyes on your own life and your own wallet.

If you’re in over your head, Advantage One wants to help! Stop by today and our financial services partners will be happy to guide you out of any financial mess.

Your Turn:
What’s your personal red flag that your spending has gotten out of control? Share it with us in the comments.

SOURCES:
https://www.google.com/amp/s/www.hermoney.com/invest/financial-planning/warning-signs-of-living-beyond-your-means/amp/

https://www.investopedia.com/articles/pf/08/in-over-your-head.asp

https://rockstarfinance.com/7-signs-that-you-might-be-living-well-beyond-your-means/