Category Archives: Money

One of the Best Financial Habits You Can Make During the Month of December

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As we are filling up our carts with an abundance of gifts for your loved ones along with some presents for yourself, it is very easy for your December spending to go above and beyond your daily spending. Remember that it is only once a year and it is also good to remind yourself to still find ways to enjoy this festive season of generosity and to not feel stressed over the extra money that is spent. The money you spend will ALWAYS find a way to come back if you develop a good relationship with your money and you continue to develop an abundance mindset. These are habits that you can focus on year round and goals that you should make a conscious effort each and every day.

In the month of December, we are closing out another year and this is a good time to actually REFLECT on your money for the past year. Did you increase your net worth? Are there areas of your life that you overspent? How well did you manage your money in the past year? The ultimate way you can answer these questions is if you go through your credit card statements or if you take it a step further and keep a journal with all your expenses, this would be a good place for you to look at where exactly you spent your money and how much. While this for some might sound tedious and increase your stress levels, try to look at this as a way to set yourself up for a brighter future ahead. With the new year coming, it is good to look back and assess your current money habits so that you can create even better ones for the following year. If you don’t currently have a money reflection at the end of the year, it is never too late to start and let this December kick off this new financial habit before we ring in the new year!

Money Saving Tips After Overspending on Black Friday

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I don’t know about you but I definitely spent a lot more money this year from all the Black Friday and Cyber Monday deals this past week. Not only did I spend a lot of money over that weekend but even the weeks leading up to Black Friday–there were a ton of online sales that began before actual Black Friday! Nowadays, the sales are not limited to just Black Friday or Cyber Monday but the sales can go on for days or even weeks. Personally, I did all my Black Friday shopping online. I haven’t shopped in-person on Black Friday for many years now. Mainly due to the fact that I don’t like to deal with large crowds but I also believe that many of the deals are better online anyhow. As I go through my credit card statement, my first reaction is okay, it’s only the beginning of December and it is time to scale it back now! At the same time, we are moving onto the abundant holiday season where it is inevitable that more money is to be spent on gifts for the people I care about most along with other holiday expenses. So what is my advice on how to save some money this holiday season?

Go Through Your Previous Purchases and Return What Is Unnecessary – It is so easy to get cart happy and add lots of items simply due to how low the prices are. However, realistically, many of the items are impulse buys and not necessarily things that you need. Many retailers have a great return policy at this time where you have as much time as after the holidays to bring back any returns. Don’t be afraid to return any items that you actually don’t need at the moment.

Make a List and a Budget (and Actually Stick to It) – It is always a good plan to plan ahead when you are spending money over the holiday season. Start off with a list of people who you want to shop for along with a tentative budget that you are working with. This way, you are making a conscious effort on establishing not only who you want to spend your money on but also how much you are looking to spend. Also keep in mind when it comes to gift giving, sometimes handmade or inexpensive gifts with a lot of thought are just as valuable as monetary gifts so there is no need to feel obligated to spend a lot of money in order to please all the people on your gift giving list.

Pick Up a Holiday Side Hustle – The holiday season is a great time to find an extra source of income and to find a part-time job to work some extra holiday hours. Many retailers could always use the extra holiday help and if you find a job as a waiter or waitress, you will most likely make higher tips as people tend to be more generous during the holidays. This might also be also a good time to pick up a holiday craft and find craft fairs to sell your goods. If you have the extra time, it does not hurt to find extra work to keep up with all the costs that naturally come this time of year.

Why Younger Generations Are Often Labeled Lazy And Ways to Prevent This

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While today’s youth face many challenges such as a higher cost of living, significantly higher costs for college education, and just an overall harder time getting ahead in life–it is somewhat understandable why it can take longer for young adults to get established and become financially independent. However, despite all of these setbacks, there are definitely ways to overcome this and to set up the younger generations for success. People complain that the younger generations are lazy and don’t want to work hard for anything. They favor instant gratification and doing what is least required of them in order to get by. While I don’t want to generalize everyone to be in this category, I do have to agree that this is the common trend with the youth nowadays. While many do not want to hear this, this issue stems mostly from PARENTING. If you parent your children in a way to allow them to achieve their goals and build them to be independent adults as opposed to dependent and needy adult children, then you are doing the right thing. Unfortunately, I see many parents who are doing the opposite which is ultimately creating a very lazy generation where they simply do not possess the life skills to survive out in the real world outside the comfort of their parents’ homes.

One of the biggest issues is that many parents are failing their children by overindulging their kids and handing everything to them without them working for anything. This is a huge mistake that often backfires in the long run. Parents complain that their adult children do not want to work or go out and get jobs. Well do you blame them? Why would they if they can get everything provided to them for free at home? It is essential that you teach your kids the value of building a strong worth ethic at an early age and understand the importance of developing a career that they love in order to be happy in life while also being able to create financial stability. If you buy your kids everything, then they get used to this way of life where they do not have to try or make any effort because everything is free at their disposal. So whenever they need something, as opposed to going out in the world to earn it, they are just going to expect that their parents will continue to provide everything for them. If this was a pattern that you fell into as a parent, then it is important to step up, establish boundaries, and BREAK THE CYCLE. Otherwise your kids are going to be adult children who mooch off of you forever which will not only eat a way at your retirement savings but also hinder your children from growing up and making something out of themselves.

It is incredibly sad to me to see so many young adults still depending on their family’s resources when they are fully capable of working and paying their own bills. That is why it is up to parents to make their children learn the value of money by making them learn how to earn it themselves and get them to pay for their own expenses when they are old enough to work. This prevents them from expecting free handouts all the time and pushes them to think outside the box and develop passions that will build into wealth over time. That is why it is necessary that parents TEACH the value behind hard work and set high expectations for their children so that they can thrive as adults.

Financial Compatibility Matters – Why You Can’t Be Afraid to Discuss Your Financial Situation with Your Partner

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They say that one of the number one reasons why relationships fail is due to money matters. While many do not want to believe that, I can see how this can happen. It can be stressful enough making and managing your own money. Then factor in your partner’s money habits which can either make your life more stressful or potentially easier. Let’s also forget that money does NOT buy you happiness. Sure, maybe it can make your life easier and there is more financial security but money does not buy a happy relationship. It is for this reason that it is important to recognize that being with someone who has a lot of money does not necessarily guarantee a lifetime of bliss with this person because at the end of the day, you want to find someone who you love unconditionally–with or without a big bank account. There is also a reason that there is the saying, “more money, more problems.” When someone is rich, with that comes more financial responsibilities and also the risk of mismanaging their wealth which could mean being in a ton of debt later in life. On the opposite extreme, being with someone who is a broke bum can understandably bring upon added stress to your life. It can also be an extremely sensitive subject to discuss because you do not want this person to feel even worse about their financial situation. So is it important to still talk about finances and is there a safe way to approach it appropriately?

The short answer is: YES, of course it is important to talk about money in your personal relationships! I can understand why people do not want to because you may feel that it is not your right to know but if you eventually plan to buy a home together, pay joint bills, and essentially merge your adult lives together–then having some money conversations are absolutely needed if you want to build a strong financial foundation together and to ensure you both see eye-to-eye when it comes to money. So often, you see one person who is a great saver and then someone who cannot save a dollar if their life depended on it. This can cause a lot of arguments and tension if you have two people who simply do not agree on how their money is spent. Looking at it from both points of view, does the saver want the spender to spend all their money? Does the spender want to feel deprived and that the saver is constantly controlling their money? These are things that couples really need to think about. From personal experience, I have dated people who were bad with their money and did not know how to save. Over time, it got very annoying and although that was never the definitive reason as to why I would break up the relationship, this was something that was always a consideration because I did not want to be with someone who had zero discipline when it came to saving their money and did not prioritize their financial future.

There are a few safe ways to approach the subject without necessarily bringing it up directly right away. For starters, observe your partner’s behaviors when it comes to money. Is this person very frugal when they order food from a restaurant or does this person like to order everything from the menu? What are things that this person likes to spend money on–is it a daily coffee, vacations, material goods, and/or spending categories? Does this person talk about money goals such as paying off their student debt, saving up for enough money for a house, etc.? There are many things you can observe without asking.

As time goes by within your relationship and you get to know each other better, it is okay to open up the conversation and to talk about each other’s personal finances. It is better to be open and upfront than for it to be a guessing game or to feel like you can’t talk about these things. People should not be afraid to be open and honest, even when it comes to their financial situation. It will either bring two people closer together or further apart. If it does end up being a conflict within the relationship, it is much better to know now and to break it off rather than to stay and then find out when it is too late that the two of you are not financially compatible.

How My Money Perspective Has Changed From My 20s to My 30s – What Would I Do Differently? (If Anything)

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As I reflect about my life and my relationship with money, I would definitely say that my approach to spending, saving, and investing has radically changed over the years. Am I just becoming older and wiser or does the current state of the economy have any impact on my views on money? It can be a combination of things but I do believe that with life experience comes more knowledge. I have always had a passion for building wealth and that is something that has not changed since my 20s but my perspective is definitely different now and there are many ways in which I view money differently than I did a decade ago.

Having Money In My Bank Account Means More Than Spending It – I have always been a rather good money saver but over the years, I have become an even more aggressive saver. Why? As I have aged, it is just more satisfying to have a bigger bank account than to spend money on material goods or going out. I am much more willing to sacrifice my desires and wants now than I was able to in my youth. It comes more natural for me to say no to unnecessary purchases and to just save my money instead. For me personally, it just feels good to have a lot of money stored away in a bank account than to spend it.

Spending Money on Clothes Doesn’t Excite Me Anymore – I have always had a love for fashion and wearing stylish and flattering clothing. That would also mean having the nicest shoes and handbags to go with my outfits. Fast forward to the present moment and I now do not care about clothing like I used to. Over the years, I have accumulated a wonderful wardrobe of classics and staple pieces that still fit and look great year after year. This is why there really is no need to go out and constantly buy new clothes unless it is an item that is worn out and in need of a replacement. I also want to point out a valuable life lesson: No one really cares what you wear more than yourself. So there really is no need to overspend on clothing or feel the need to impress anyone because no one really cares about the clothing you wear. That is not to say that you should totally neglect your self image but to consciously make an effort to be less vain because at the end of the day–no one cares what you wear!

I am Obsessed With My Retirement Savings – When you are in your 20s, you do not really think about retirement enough unless you are taught the importance of compound interest and investing as early as you can. Fortunately, my mother had me open an IRA account at the age of 18 years old. While I was making contributions to my IRA as much as I could at the time (which wasn’t too much), my biggest regret is not making a conscious effort to max out my IRA contribution every single year. When I turned 30 years old, I made the conscious effort to start doing that and have really seen the increase over the years which is very encouraging. This motivates me to keep investing into my retirement and watching it grow over time.

My Time Is More Valuable Than Money – Despite how much I prioritize working and making money, as I have gotten older–I have tried to have more of a balance between my work life and personal life. In other words, I cherish and value having quality time as opposed to working nonstop. Sometimes you have to take the time to say no to work and actually enjoy living your life. I would rather just work less and make more as opposed to feeling like I need to work constantly. In the past, I would push myself to work as much as I can, even if that meant less free time to do the things that I loved. Although I still would consider myself a hard worker, I have toned down the intensity and have made having free time more of a priority over work.

Booking a Vacation Is Worth Every Penny – I have been an avid traveler since my mid to late 20s when I started to make a high enough income to allocate money towards one of my biggest passions in life–international travel. To this day, I still believe that travel is money well spent and something that I would never regret spending because the memories that are created are so worth it. While not everyone might have a love for travel, it is important to find something that you love and allow yourself to spend the money on your desired category of choice with zero regrets. I spent the money on travel then and will continue to spend my hard earned money on travel throughout the course of my lifetime. It can be an expensive hobby but it is one that I will always justify as an essential expense.

Does “Money Buy Happiness?” – If Not, Then What Does?

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Many people hear the expression that “money buys you happiness.” While there is some truth to that in the sense that having the ability to spend it freely and providing financial security are very positive things that many of us strive for in our lifetimes–it does not necessarily guarantee you happiness. There are people who have a lot of money but might not know how to manage it successfully which eventually leaves them in more financial trouble or could bring upon more added stress into their lives. There are also people who have unlimited financial resources who live unfulfilling lives and simply aren’t happy. So what are some other keys to happiness that do not revolve around money? 

Pursuing a Meaningful Career That Adds Value to the World – It is really important to dig deep and determine what you want to do with your life and finding a career path that is spiritually rewarding and brings intrinsic happiness. When I say a “career,” that also can include volunteer work, being a parent, etc. It does not have to tie into a job that brings in an income but really just finding your authentic purpose in your life.

Building Healthy Relationships – People often underestimate the importance of human interaction and developing healthy relationships but it is very beneficial to have good people in your life. Even if you are someone that is introverted and prefer to spend most of your time alone, that does not mean that you should not have zero relationships in your life. It is wise to have a social circle of people who are there to support you and spend your quality time with.  

Loving Self to the Fullest – You might already hear this all the time (especially in this blog 😉 ) but you need to love yourself! If you are not in a place where you feel that you love yourself, then you need to determine ways to get to that place. This could mean finding a better job, getting out of a bad relationship that is preventing you from thriving, or pursuing new hobbies that bring you joy. It is a necessity to find and learn ways to love yourself to ensure you are bringing happiness into your life. 

Lifestyle Inflation – What It Is and Can It Be Avoided?

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It is hard to understand how someone with a high income could be living paycheck to paycheck but it is more common in today’s society than ever before. While there is no denying that high levels of inflation can be a culprit, there is also a phenomenon known as lifestyle inflation which is making it even harder for people to save money. An example of lifestyle inflation could be when a person gets a work bonus or a new job with an increased salary, then this person feels more justified to buy luxury goods or spend more money than ever before. While it is good to treat yourself and spend your hard earned money, it is still really important to prioritize investing and saving as much money as you can because you not only need it for your future but you also might need it for an unexpected emergency.

In your youth, it is very easy to fall into this lifestyle inflation trap because maybe you want to own a fancy car or dress in designer clothing. If you can afford it right now, you might be thinking: Why not? Again, there is nothing wrong with treating yourself but this cannot be an ongoing habit or this is going to lead to a lack of savings and potential debt. The right mindset to have is asking yourself, how do I build my net worth? If you place your focus on building wealth over time, then it will become easier for you to resist overspending on things that you truly do not need. As you get older, it will probably become a more conscious decision to save for retirement or to find investment opportunities rather than overspending. 

The best way to avoid lifestyle inflation is to first shift your mindset as I mentioned previously. For me personally, my mind is more focused on seeing more money in my savings and investment accounts than in my closet because I am a practical person with an understanding that excessive material goods really is not a necessity nor is it really making my life that much better in the long run. Whereas in my youth, I cared very much about having new and stylish clothing including designer labels. Once you have made a mindset change, then the next step is to develop the right habits to support your beliefs. In this case, that would mean to allocate your money towards necessities only and to commit to your financial goals. It can take time to develop the right habits but as long as you start implementing them, then your habits eventually become much more automatic. 

5 Ways to Stay Financially Savvy During the Holiday Season

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Most people would agree that it is easy to get carried away and overspend during the holiday season. While it is a time to be generous, it is also important to be mindful of your spending habits so that you do not find yourself getting into major debt once the holidays are over. While it is normal and expected that you are going to spend more money in the month of December, there are definitely savvy ways to allow for your dollars to go further.

Send Digital Holiday Cards (or Make Them) – Everyone nowadays loves to create holiday cards with a family photo. While this is a nice tradition, you can easily create a digital one or even take a photo of a hard copy of one of the cards and then send them to the people you care about via text or email. Personally, I only order maybe 10-15 holiday cards at max to send to close family and then everyone else will receive a digital greeting or a regular card. This will save you a ton of money on the cards itself along with postage. You can also make holiday cards which is a wonderful gesture. Both of these options still show that you care without breaking the bank.

Set a Budget on Gift Giving – When you make a list of everyone you are buying presents for, it is also important to determine a budget for each person and to think about the maximum you are willing to spend all together. This will help you make better spending decisions because you know what your limits are. By taking the time to actually create a budget, this will make you more conscientious of what you are spending. If you happen to go a little over budget, there is nothing wrong with that! Let’s not forget that this happens to be the season of giving after all.

Shop Around and Compare Prices – I know this probably goes without saying but with so many shopping options, it is best to really shop around to get the best deals. You would be amazed at how much you can save from one store to the next. Timing is also everything in which you usually get the best deals on Black Friday and then the weeks leading up to Christmas. While online stopping tends to have the best deals, sometimes going to a store in-person, you can find some good deals as well.

Secret Santa Gift Exchanges – If you have a large family or a big group of people to shop for, it is a good idea to set up a Secret Santa gift exchange where everyone picks a name and shops for one person as opposed to having to buy for every single person. This can be fun as you won’t know who your “Santa” is until the day of the gift exchange. This is not only a fun tradition but allows for you to save a lot of money.

Pot Luck Meals – If you decide to have a holiday gathering, it can easily add up when you write out a list of all the foods and drinks that you need to get along with any other party decor that you might need. That is why making it a pot luck where everyone is assigned a dish to bring is a great way to cut down costs while also allowing for there to be a variety of dishes that you might not have thought to make yourself. Most people are usually okay with this arrangement so you shouldn’t feel bad to ask your guests to bring something.

How to Teach Your Children to Become Financially Independent

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One of the greatest spiritual gifts that you can give to your children is teaching them how to be financially independent. Many parents seem to believe that they are doing their children a favor by giving them everything that they can provide them and by paying for all their expenses. Even if parents have an abundance of wealth, it is still wiser to teach their children how to earn their own money and not to consistently receive financial handouts. In the long run, when children are given free stuff all the time without having to work for it, this creates entitled, spoiled, helpless, and lazy adult children. In order to break this cycle and to prevent this from happening, as a parent, it is important to teach financial independence from the start. This might require some tough love on your part but it will ultimately ensure that you raise children who become self sufficient and financially secure adults who are not dependent on mommy and daddy’s bank account. This is a positive thing and should not be seen as a selfish act as you are forcing your children to grow up, preparing them for the realities of the real world, and building their self worth that they are fully capable of doing this themselves. So where do you begin? The short answer is–as early as possible! There are also some other tips that I would recommend.

Encourage Your Children to Work and Earn Their Own Money – As soon as they can get their working papers, encourage your children to go out in the real world and get a job. Even if the job is not glamorous or high paying, it is still better to push your kids to work and make their own money as opposed to just supplying them with your credit card or money whenever they want something. They are going to eventually need to find a career path but in the meantime, it is smart to have them gain some work experience which will build their work ethic.

Make Them Pay for Everything – I know this might be tough to enforce if your children do not have a steady job or source of income yet but it is essential to make your children pay for everything from the start. Then they will not rely on you for every little thing and expect free handouts. Is your child at an age to drive a car? Do not give them a free car–have them work for it! In addition, they should pay for their car insurance, gas, and the maintenance costs. If you tell them that they need to pay for these things, they will figure it out. This might mean working a job after school or saving strategically but these are great skills to possess. You want your children to be doing these things. It might take them more time to buy the things that they desire but that’s okay. You want to teach your children to know how to pay for things and put in the work that is necessary to earn everything.

Be Okay Saying No When Your Children Ask for Material Objects – It is understandable that your children are going to constantly be asking you for new stuff. It is important to establish what are actual needs versus wants. Oftentimes, the items are not necessities in which it is okay to say no. If the child wants something badly enough, it is a good idea to teach them the benefits of saving any money that they receive or earn to eventually buy the item themselves because it will always be more valuable when it is earned as opposed to being given things for free. It is also good to say no so that the child learns to appreciate what they have as opposed to becoming materialistic and acquiring too many unnecessary possessions.

Teach Them the Benefits of Both Saving and Investing Their Money – Most children are not wise enough to think about the long term effects of their everyday habits. That is why it is natural that they want to spend money to satisfy their need for instant gratification. However, if they were aware of the benefits of compound interest over time and/or the value of saving money for an emergency fund, they would be be more inclined to start saving and investing at a young age. It is up to you as a parent to teach your children financial literacy, especially considering that this is not a subject that is taught in most schools. The best way to teach this is through example and during their younger years so that they can start making the right financial decisions from the start.

Don’t Let Your Adult Children Live at Home for Free – I know this sounds harsh but adults should learn to become adults. That means taking on responsibilities such as moving out of their parents’ house, paying their own bills, managing their personal finances, etc. When you let your adult children live at home for free, they tend to become freeloaders who have no motivation to work or do anything. Do you blame them? Why work when they don’t need to?! It is for this reason that you should encourage your children to move out and learn how to navigate adulthood on their own. Aside from financial lessons, there are so many other life lessons that are gained from living independently such as becoming more responsible and self sufficient. If you allow them to live at home still, maybe consider having them buy their own groceries, contribute towards utilities, pay rent, and/or do extra chores around the house. This might encourage them to want to move out or at the very least teach them that living at home comes with a cost.

3 Ways to Avoid Living Paycheck to Paycheck

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It is hard escaping news headlines that a higher percentage of people are living paycheck to paycheck, even people who have a high annual salary. There are many contributing factors that are causing this including the rate in which inflation has increased over the past year. Aside from that, when people make more money, they also tend to spend more because they feel they deserve it or that they are comfortable enough to spend more while saving at the same time. No matter how much money you are making, it is essential to make money management a top priority. This will allow for yourself to be in a better financial position in the long run and ensure that you won’t be living paycheck to paycheck. Like most things in life, it is never too late to start and develop the right habits to get you on the right financial track.

Set Up Automatic Payments Into Your Savings Account – Whatever amount you can comfortably afford, determine a set amount that will automatically get deducted once a week and then you do not touch the money. This is a quick way to build savings without really thinking about it. If you are more disciplined, you can manually put the money into your savings every week and change up the amounts as needed depending on how much extra that you have left over. Every dollar counts so any little bit that you can put towards your savings is better than nothing!

Reduce Consumption and Eliminate Non-essentials – I recently wrote about how reducing consumption is a great way to save money. This could really range from anything from using less energy/gas to eating less at a restaurant so you have a second meal to take home at a later time. There are so many ways in which you could reduce what you consume each day. It is also smart to examine your monthly subscriptions and other services/products that you currently have and then eliminate the ones that you do not really need. Do you pay for cable or a gym membership that you never use? Then this might be the time to cancel these services altogether so that you can allocate the money into your savings and/or investments.

Track Every Dollar That You Spend – If you follow my blog, you probably have read me talk about this consistently but it is important to track your expenses everyday. This helps you stay accountable with your financial decisions and can also serve as a tool for analyzing your money habits. Did you notice that you spent more money on non-essentials last month? Then you can strive to reduce your spending the following month. The only way you can truly track this is by actually taking the time to record all your expenses in order to stay focused both on spending less while maximizing your daily savings. If you can do both of these things at the same time then you will find that you will not be living paycheck to paycheck anymore.