Melanie De Jong

The Payday Reset: How to Budget Two Paychecks Without the Overwhelm

Thu, 09 Apr 2026 13:00:44 GMT

If you’re paid biweekly, a traditional monthly budget can feel frustrating. It gives you a helpful big-picture view of your finances, but it doesn’t always line up with how your money actually comes in. Because you’re not paid just once a month, a monthly budget can fall short when it comes to the day-to-day logistics of paying bills and managing cash flow.

The paycheck budgeting method is a simple, repeatable budget rhythm that changed everything for our family finances.

This method is very simple, but effective. You can use this system every single month to ensure you’re staying on track financially as a family.

By allocating your income out before the month begins, you remove a decision when payday comes. The less decisions we make, and the more habits we train, the less stress we feel!

How to Budget Two Paychecks a Month: Step-by-Step

You don’t need the latest budgeting spreadsheet with a fancy dashboard that has all different kinds of formulas giving you all kinds of information. This will just overcomplicate things and cause you to over-analyze.

It’s very simple: your total income less your total expenses every month should be positive. Ideally, it will equal zero– meaning you’ve planned every single dollar of income before the month has begun.

It doesn’t take financial expertise to run a household budget. It just takes a willing mind and committed spirit.

Step 1: Create a Zero-Dollar Budget

This means exactly as it sounds – you take every single dollar of your income and allocate it to a budgeted expense until income less expenses is equal to zero.

Before you break down your budget into two paychecks, it’s necessary to create your total monthly budget as the framework from which to work.

Here’s a detailed guide for creating your zero-based budget.

Step 2: Assign Every Expense to a Paycheck

Simply take your total monthly budget, and line by line split each budgeted expense into your two pay periods.

The expense can be split equally or not, you’ll just want to consider cash flow.

Consider Cash Flow

Think of your bank account like your fridge. You wouldn’t eat all your groceries on day one just because you planned your meals for the week…You’d spread them out so you have food every day.

Your paychecks work the same way—you need to spread your money so it lasts until the next one comes in.

Example:

Paycheck #1: $1,500
Rent: $1,200

That leaves $300 for 2 weeks of food, gas, and life…Even if paycheck #2 looks fine on paper, you’ll feel stressed in real life.

Use the Half-Payment Hack

Larger expenses such as your mortgage or rent might need to be assigned to more than one paycheck.

Right now, we are renting from my parents. Instead of setting aside the entire month's rent from one paycheck (we are paid weekly), I spread it across two.

Though I budget $900-$1000 per month for groceries, I set aside $450-$500 from two monthly paychecks rather than one paycheck.

By doing this, cash flow is stable (though we always have a one-month of expenses buffer in our account), and it helps me to actually stick to the budget by breaking the larger budgeted amounts into smaller, more manageable chunks.

Step 3: Plan Variable Spending

Variable expenses are costs that change from month to month, expenses that you have more control over. For example, groceries are considered a variable expense because you can easily adjust the line item in your budget from $800 to $725 if needed.

Rent or mortgage payments would be considered a fixed expense, because it does not change month to month and can't be easily manipulated.

To plan variable spending in your biweekly budget, you can either divide it equally into your two pay periods, or budget for it out of one paycheck.

Personally, I like to plan for expenses like groceries on a weekly basis. This helps me keep our spending in check. We are paid weekly, so I divide our total grocery budget by 4, and allow myself to spend that much on groceries per week. I could budget for groceries out of the first paycheck of the month, but I find that I tend to overspend when I do it that way.

Step 4: Include Savings Goals and Sinking Fund Expenses

To be intentional about reaching your family financial goals, set up your budget in this order:

Necessities
Savings and investing goals
Discretionary spending

Apart from not having a household budget at all, the mistake many families make is waiting to see what's "left over" after the month is done and setting that money aside for financial goals like saving and investing.

The problem with operating this way, particularly if you're living on one-income, is the money you think will be left over always seems to disappear before the month is over.

Your financial goals must become a part of your monthly budget. To do this, they need to be on paper. Specifically, they need a line in your monthly budget, prioritized before discretionary expenses such as vacations, entertainment, etc.

Step 5: Print Budget & Track

I know- a printed budget doesn't sound like an efficient use of your time. However, I'd urge you—especially if you're new to budgeting— to fill out a paycheck budget every month before switching to a digital paycheck budget.

Example Bi-Weekly Budget for a One-Income Family

You can see on this biweekly budget example there are two columns filled out, one for each paycheck. Total monthly expenses are listed on far left column, along with budgeted amounts for each expense.

Notice that all expenses are planned for, including non-monthly expenses like vacation, car repairs, Christmas, and school supplies.

Though there may not be any cash out for these expenses this month, it's important that we set aside money for them. This way, when December comes, there is $1,200 ready to be spent on Christmas gifts and celebrations.

There's no credit card guilt following you into January!

What if You're Living Paycheck to Paycheck?

Determine True Expenses

If you’re living paycheck to paycheck , the very first thing you need to do is total up your monthly income and all your true monthly expenses.

You must pinpoint what is causing the cycle to continue.

Are there more expenses than income every month? Is there a single expense or category that takes up a significant portion of your income? Do you actually really know what you’re spending?

To calculate your true expenses, look over your last 3-6 months of bank statements. Group all expenses into categories, and calculate an average amount spent based on the past few months.

Here’s the key: include every single expense. You must get a true picture, not a vague, “here’s what I think we spend in my head” picture.

If you’re relying on mental estimation to determine your expenses, chances are you’re under-calculating.

You need real data to work with, not the estimate in your head. This might be the most overwhelming step for some. Stick with me here.

Make a Plan

Now that you know what your true expenses are, determine if your expenses are greater than your monthly income.

If so, you have two options-- either cut expenses or increase income.

This can be difficult if you're a one-income family who prioritizes having mom at home, because you're already probably cutting costs wherever you can, and increasing income would potentially require you to neglect your primary responsibility-- the home.

Your husband is probably already working hard just to make ends meet as it is, bearing the financial load for the whole family.

So what to do? Where do you go from here?

While I can't tell you exactly what to do, I can share from experience what's worked for us when faced with the same situation.

How We Have Cut Costs When Funds are Tight

When I first quit my job as a CPA to stay home with our kids, our budget barely penciled out. We knew there were budget items we COULD cut, like tithing, but we were convicted to continue to tithe despite the perceived "financial strain" it was putting on our budget. So that was out.

So what could we cut? How would we make it work? We could make it by, but it was going to be a razor-thin margin every month.

First, pray . Ask the Lord for His wisdom, and that He might reveal to you how to be better managers of your finances and bless your efforts to honor Him.

Second, act . Here are some things we have done to increase our margins:

Cut out everything but necessities for a period of time.
Used cheap protein for all our meals - chicken, pork, and beef.
Got creative about entertainment. Found as many free or extremely cheap things to do with the kids as possible. Instead of taking them out for treats, we'd go to the library. I had to remind myself often they don't know the difference if we go to get ice cream or the library, they just like to go places.
Bought in MAJOR bulk - more upfront cost but cheaper in the long-run. I still buy in major bulk from Costco, Sams Club, Azure Standard, and Thrive Market.

Remember, this isn't forever. Seek the Lord and His infinite wisdom. He promises to give it to those who ask.

How to Budget by Paycheck (Step-by-Step Paycheck Budget Method for One-Income Families)

Tue, 24 Feb 2026 01:14:00 GMT

You have a monthly budget, but it isn’t working the way you hoped. You’re still feeling stretched between paydays and trying to make a calendar-based plan fit the way your income actually comes in.

That was me before I started budgeting by paycheck.

I had a monthly budget. I tracked it carefully. I thought I was being responsible.

But every time our weekly paycheck hit, I found myself asking, “Wait… what is this supposed to cover?”

The monthly plan looked fine on paper. It just didn’t match the rhythm of our paychecks.

And that mismatch created stress- especially for a family living on one-income.

That’s when I started using a paycheck budget - a simple, repeatable system that breaks our monthly budget down even further into smaller, more manageable steps.

Instead of spending countless hours trying to reconcile a monthly budget at the end of every month, I broke every budget line from our monthly budget down into paychecks. I gave every single paycheck a job before we spent it.

This simple shift completely changed how we handled money.

Managing our finances whilst keeping a home became achievable -- not a daunting task I dreaded every month because I knew we'd be over budget and I'd end up feeling overwhelmed and discouraged.

In this guide, I’m going to show you exactly how to budget by paycheck step-by-step, so you can stop feeling stressed between paydays and learn how to use a simple, repeatable system in a way that’s manageable alongside your home, your kids, and all else you carry as a wife, mother, and homemaker.

Let's get right to it!

What is a Paycheck Budget?

A paycheck budget is a method of budgeting where you plan your spending based on each individual paycheck instead of creating one monthly budget. Essentially, you are taking your monthly budget one step further by breaking it down into individual pay periods.

This approach works especially well for one-income families or anyone living paycheck to paycheck because it aligns bills and expenses directly with pay dates.

By assigning every dollar from each paycheck a specific job before you spend it, you control cash flow between paydays.

How to Budget by Paycheck in 5 Steps:

Download a budget template
Create a monthly budget
List all pay dates
Write down bills by due date
Assign bills/expenses to each paycheck
Budget variable spending
Plan savings first

Budgeting by paycheck means you take your monthly budget and split it into smaller budgets based on your paydays. The monthly budget is your overall outline, and each paycheck budget is the action plan for that specific paycheck.

By doing this, you can better organize what bills are budgeted at what point during the month and with what paycheck.

Why Monthly Budgets Don’t Work on One Income

If you have ever tried to put together a monthly budget for your family and found yourself frustrated because you never seem to be able to plan well enough and accurately predict for what life throws your way, it's not because budgets never work. Rather, your frustration lies in the fact that you're using the wrong system.

A monthly budget works great until you consider:

Irregular bills
Paycheck timing (most U.S. employees are not paid once per month)
Cash flow gaps

Take this scenario:

Say your family brings home $5,000 per month. Your mortgage is $2,000 and groceries average around $1,000.

On paper, that works.

But now let’s look at the rhythm of it.

If you’re paid biweekly, you’re bringing home $2,500 at a time.

If the mortgage is due on the 1st and you pay that full $2,000 from one paycheck, that leaves you with $500 to stretch until the next payday.

Out of that $500, you still need groceries, gas, and anything else that comes up.

Suddenly, even though your monthly numbers technically work, the cash flow feels tight.

That’s the part a monthly budget doesn’t show you.

This is where the paycheck budget alleviates the stress of managing cash-flow throughout the month. Here's a quick comparison of the two budgeting methods:

As a mom managing the day-to-day flow of the household, the paycheck budget method has brought more peace and clarity to our finances.

Instead of hoping a monthly plan stretches far enough, you’re working with money that’s actually in your account and assigning it with intention. That reduces mid-month stress, eliminates constant mental math, and makes it easier to manage your finances alongside your home.

How to Budget by Paycheck (Step-by-step)

1. Get a budget template

Before we divide everything by paycheck, we need a clear picture of the month as a whole. Think of this step as gathering the pieces for our puzzle. Think of this as clearing off the kitchen counter before you start cooking. Everything works better when you have a clear space.

If it feels overwhelming to start from scratch, I have a simple free monthly budget template PDF download that walks you through this exact first step (or sign up for the Google Sheets version below).

2. Make your monthly budget

Grab your budget template or a blank sheet of paper and list:

Your total expected income for the month
All fixed bills (rent/mortgage, utilities, insurance, subscriptions)
Your variable categories (groceries, gas, household, kids)
Any debt payments
Any savings goals
Budget every dollar down to zero (called a zero-based budget )

Before you assign each paycheck to a budget expense or goal, every dollar of expected income for the month needs to be given a purpose. This is your broad monthly budget. Don't leave any money remaining! Each dollar of income needs a job.

More budgeting resources:

3. Split budget into paychecks

Now that you can see the whole month clearly, we’re going to gently break it down into smaller, manageable pieces.

Look at your pay dates for the month.

If you’re paid:

Biweekly → you’ll likely have two paychecks (sometimes three)
Twice a month → two set pay dates
Weekly → four (sometimes five)

Write the dates across the top of your page. Here's an example using my one of my templates:

Under each paycheck date, draw a simple line down the page. Each section will represent what that paycheck needs to cover.

4. Write/List all Bills & Due Dates

List all your monthly expenses on the left side of the page. This includes both fixed and variable monthly expenses as well as any amounts being sent to savings, investing, or other sinking funds (vacation, new car, medical, etc).

Write the due dates next to any bills.

5. Assign Bills/Expenses to Paychecks

Now go back to your list of bills and look at the due dates.

Ask yourself:

“What bills are due before the next paycheck comes?”

Those bills get assigned to one or multiple paychecks. Divide any bills that can't come out of one paycheck by two or three, and start arranging your budget.

Instead of hoping money stretches across the month, you’re giving each paycheck a clear responsibility. When each paycheck knows its job, you don’t have to keep re-deciding what the money is for.

A Simple Example

Let’s say you bring home $1,000 per weekly paycheck.

For the first paycheck of the month, you might assign:

Mortgage: $400
Utilities: $75
Giving: $150
Groceries: $100
Gas: $75
Minimum debt payment: $200
Small savings transfer: $100
Household/misc: $200

Find a schedule that works for you and the situation you are in.

6. Budget Variable Spending

Variable expenses are where a lot of moms get stuck.

You might be wondering, “How am I supposed to budget for something that changes every month? Groceries aren’t the same. Gas isn’t the same.”

And that’s true — they do fluctuate.

But even though the exact number changes, you still need a clear limit.

Instead of trying to guess the perfect amount each month, choose a realistic number your family can work within. That becomes your monthly target.

It doesn’t have to be perfect. It just needs to be intentional.

That’s the number you’ll plug into your budget and divide between paychecks.

Now that paycheck has a purpose. When it hits your account, you already know where it’s going. No guessing.
No reacting. Just following the plan you already made.

Reminder

If writing this out for the first time feels daunting, that's ok. This is a new rhythm that doesn't have to be perfect.

And if you’d like a printable version that walks you through dividing your month into pay periods step by step, you can get my free printable budget templates , which includes a layout in the exact format I use at home.

You can follow it word-for-word or simply use it as a guide while creating your own system.

7. Plan Savings First

When piecing your budget together, prioritizing expenses is key.

As we made our family budget, we first budgeted for expenses that were priorities. Expenses like bills, groceries, giving, and saving came first. Everything else (entertainment, eating out, personal spending, vacations) was split between what was leftover AFTER accounting for the priorities.

This requires a trade-off. You may not be able to spend as much on eating out as you would like or hope after budgeting for your savings goals. You and your spouse have to decide what is most important for your family.

How to Budget Biweekly

Biweekly pay doesn’t line up neatly with monthly bills. Most bills are due on the same date each month, but your paychecks shift slightly every month.

Without a plan, that mismatch creates stress.

The good news is this: budgeting biweekly is actually one of the simplest ways to create consistency on one income — once you understand the rhythm.

Twice per year, biweekly pay creates a 3 paycheck month. If you’re wondering how to handle that extra paycheck, I walk through it here.

What Does Biweekly Pay Actually Mean?

When you’re paid every two weeks, you receive 26 paychecks per year. Most months you'll receive two paychecks, but twice a year you'll receive three.

The issue is that your bills are centered around a monthly cycle, which means your income and your expenses are operating on two different cycles.

Without a plan, it can feel like some months are stretched and others are easy — even though your income hasn’t changed at all.

The paycheck budget method fixes this by organizing your money around pay dates instead of calendar months.

What About a Three-Paycheck Month?

Twice a year, you’ll receive three paychecks in one month. Instead of treating that third paycheck as bonus spending money, think of it as margin.

You can use it to:

Build your emergency fund
Fund sinking funds
Pay down debt
Get ahead on next month’s bills

Those third paychecks are create breathing room.

For more ideas and a detailed explanation of how to handle three-paycheck months, read this post.

Biweekly Pay Example

For example:

If you budget $800 per month for groceries and you’re paid twice per month, you might assign $400 to each paycheck.

If you’re paid biweekly and some months have three paychecks, you can choose to:

Keep groceries consistent
Or use the third paycheck to get ahead

There isn’t one perfect way-the goal is consistency.

When each paycheck carries its portion of groceries, gas, and household needs, you remove the constant question of:

“Do we have enough left?”

What if You're Living Paycheck to Paycheck?

You can be doing everything “right” — cooking from scratch, skipping extras, stretching groceries — and still feel behind if there’s no system guiding the flow of each paycheck.

Living paycheck to paycheck isn’t sustainable because it keeps you reacting instead of planning. As a mom, when I'm reacting instead of being pro-active, I feel overwhelmed, stressed, and the constant decision-making fatigue can put me into a downward spiral of emotions that do not bear the fruit of the spirit.

Just like with parenting, when we reduce the number of reactive decisions we have to make, everything feels calmer. We may not have reached all of our financial goals yet, but we can still be steadfast.

Break the Paycheck Cycle

There isn't a fancy way to break the paycheck to paycheck cycle. Sure, there are things you can do to speed up the process (make extra money, cut expenses), but sometimes either option isn't possible.

Contrary to Dave Ramsey's advice, I wouldn't recommend a stay-at-home mom go out and get a job to help play catch-up on bills. That responsibility should primarily (and ideally) fall on the husband.

Don't send your kids to daycare so you can stop living paycheck to paycheck. Seek the Lord in prayer, and be faithful in your financial decision-making. Here's where to start:

Start with essentials and make a bare bones budget
Build a small buffer

Step 1: Start simple. With your next paycheck, assign money to the essentials: housing. utilities, groceries, rent/mortgage, minimum debt payments, etc.

Step 2: Create a tiny buffer. If there is anything left-- even $25 -- assign it to your "buffer" category. Your goal is to quickly build this category to create breathing room and break the paycheck to paycheck living cycle.

That's it. Don't try to overhaul everything at once. When money is tight and everything feels overwhelming, clarity beats complexity.

Common Paycheck Budget Mistakes (And How to Avoid Them)

When I first started budgeting by paycheck, I thought once I understood the method, everything would just click. It didn’t.

Not because the system didn’t work — but because I was still learning how to use it well.

Here are a few common mistakes I see (and have personally made).

Forgetting sinking funds - Expenses that don't show up every month are easy to leave out. Budget for the irregular expenses that come up like school supplies/clothes, oil changes, Christmas, birthdays, special events, etc. Read this post for a more in-depth explanation of setting up sinking funds. Just setting aside a small amount out of every paycheck for these expenses can make them seem manageable instead of overwhelmed.
Ignoring irregular/annual expenses - Expenses that don't show up every month are easy to leave out. Budget for irregular and annual expenses that come up like school supplies/clothes, oil changes, Christmas, birthdays, special events, etc. The key to is to budget for these expenses monthly. Read an in-depth tutorial on how I do that here.
Neglecting to budget for variable expenses - avoid the temptation to budget for the fixed expenses/bills and leave the rest out. If you don't tell those dollars where to go, your income will quietly disappear and you'll be frustrated that the budget isn't working.
Not adjusting when life happens - r emember your budget is a guide, not a contract. Life happening doesn't mean your plan isn't working. It just means you need to adjust, tweak, and move forward. Don't use life happening as an excuse to de-rail the budget completely and abandon ship.
Expecting immediate perfection - the first month or two might feel clunky. Don't give up! You might overspend in one area and have to adjust. It will take time.
Treating extra paycheck month money as "extra" - months that have an extra paycheck can and should be used to build stability, not spent frivolously and treated like a bonus. Give the extra paycheck a clear purpose -- emergency funds, sinking funds, or building a buffer.
Not tracking - personally, I like to log our expenses every other day. This way, I know exactly how much we've spent so far on each budget category, and how much I have left to spend. I use the EveryDollar premium budgeting app for easy tracking.

Frequently Asked Questions

ON A FINAL NOTE

Budgeting by paycheck is the perfect budgeting method for anyone who is not paid once a month.

This method works especially well for those who are self-employed or have irregular income.

This method allows you to look big picture at your finances with a monthly budget, while also staying organized and consistent day to day!

The Ultimate Guide to Using a Budget Notebook Effectively

Fri, 30 Aug 2024 13:28:28 GMT

If you’re looking for a better way organize your personal finances, a budgeting notebook is a great way to keep track of your finances and reach your financial goals.

Financial stability is not determined primarily by how much money you make, but rather by how well you plan.

That being said, we can do everything “right” on paper, but ultimately, the Lord determines our steps. Scripture says many are the plans in a man’s heart, but the Lord’s purposes prevail. We can’t say definitively that if you follow x formula, you’ll get y as a result. The Bible does have many financial principles that indicate if we do certain things, the likelihood of financial success and stability is greater. But we are to steward our finances with the little or the lot that the Lord graciously blesses us with—being content in every circumstance!

One of the ways we can steward our finances is through proper planning and seeking to improve our money management skills. This can be especially hard as a mom--- there are so many plates we are trying to juggle and things we must keep moving --- but it’s nonetheless an essential skill as a wise homemaker.

What is a Budget Notebook?

Also called a budget binder, a budget notebook includes all your key financial planning worksheets and documents in one place:

Spending
Monthly bills and due dates
Subscriptions tracker
Bullet journal expense tracker
Savings
Savings goals and savings trackers
Savings account balances
Sinking funds and worksheets
Debt
Debt snowball and debt payoff trackers
Budget planning
Monthly budget planner
Weekly budget planner
Bank account reconciliation

Your budgeting notebook can include as much or as little as you’d like—the list above is not exhaustive. Depending on your personality, you may choose to keep just the essentials, and that’s okay!

Benefits of Keeping a Budget Notebook

Even if you’re not type A, a budget notebook is a great idea because it will reduce financial stress by giving you a clear picture of your financial situation.

It’s important to know where things are with your finances so you can evaluate and plan. Without a clear plan, you’re aimlessly wandering around lacking any control of where your money is going.

In contrast, a knowledge of where things are coupled with a proper plan will help you reach your financial goals faster. If you’re aiming at nothing (you have no financial goals), you’ll hit it every time!

The great news is that you don’t have to be a numbers person to benefit from keeping a budget notebook! Budgeting is for everyone, even if it doesn’t come naturally, and even if you have no idea what you’re doing at first.

I’m here to navigate you through the steps of setting up a budgeting notebook. Even if you feel discouraged as you walk through the steps, stick with me! Your hard work will pay off in the end. It's comforting to know where things are so you can plan for where you want to be! Taking control of your finances isn't rocket science, it just requires a little planning and a lot of diligence.

Create your own Budget Binder / Budget Notebook

Budgeting

The foundation of financial planning is budgeting. The monthly budget is what gives a clear picture of where things are really at, and what you can do to get where you want to go.

Why Budget?

Trying to understand, organize, and take control of your financial situation without a budget is like trying to get to your destination without a plan. Your chances of successfully arriving at your destination on time greatly increase when you first map out your route.

Budgeting is an essential part of your financial planning -- whether you’re a numbers person or not—and will give you peace if you just take the time to get it dialed in.

We all need some level of predictability. Absent of a b udget, our finances will feel like they’re completely out of our realm of control. To an extent they will be—you’ll have unexpected expenses that come up during the month-- but we can prepare for and predict that we will have unexpected expenses at some point. Thus, the unexpected expenses aren’t really that unexpected; we know they will occur at some point.

Choose a Budgeting Method

Some considerations for budgeting include time period, template style, and the method of planning your expenses.

One thing I've learned that was a game-changer for me is that budgeting doesn't have to be done on a monthly basis. It can be done on a weekly basis, bi-weekly basis, or any other cycle you choose. The key is that it aligns with your personality (whether you're a detail or big-picture person), and your pay schedule(s).

Another consideration is whether to have a written budget or digital planner. If you're just starting out, I recommend actually writing your budget out on paper. Once you get the hang of it, you can switch to an excel budget template or editable pdf template.

Finally, there are different budgeting methods, such as the 50 30 20 budget method and the zero-dollar budget method. Personally, I prefer the zero-dollar budget method because it's specific to your needs, as opposed to the one-size-fits-all nature of the 50 30 20 budget.

Create your Monthly Budget

A monthly budget is easy to create, as long as you're using accurate information. My method for creating a monthly budget is as follows:

List monthly (take-home) income from all sources.
Write down all your fixed monthly expenses.
Calculate all your variable & seasonal/irregular expenses.
Set financial goals and put in the budget.
Label each expense as either necessity or discretionary, and adjust as needed.
Subtract total income from total expenses. Adjust until zero.
Track your spending!

Assigning every single dollar a purpose, on paper (or an excel spreadsheet) before the month begins will give you peace and bring order to your finances. Not everything will go according to plan- but we plan for that too!

An important note here is that checking your bank account balance is not the same thing as budgeting. If you spend and just keep checking your account balance to make sure it isn't zero, that's not a plan!

Budgeting has been a huge blessing to our family, and one reason we feel financially secure even whilst navigating becoming a one-income family so I can stay home with our children.

Free Budget Template

Download my free budget templates and pick a monthly budget page that works for your specific needs and will keep you focused on your budgeting goals.

If you’re paid weekly, the paycheck budget template is likely the most functional for your needs. If you’re paid monthly, the monthly budget template will work best. This free download has a budget for each style!

Spending

In this section of your budget binder, you might keep:

monthly bills, amounts and due dates
non-monthly expenses and due dates
sinking fund balances
monthly spending totals
subscriptions tracker

Failing to keep track of your spending after setting your budget is like mapping out a route for a road trip, plugging it into the GPS, then covering your gas gauge up so you never know how close you are to empty. If everything goes perfectly, you may be able to give it a guess and have no issues. However, any detours or changes in the plan, and you will find yourself frustrated and wishing you could see the gas gauge, because you never really know how much longer you can make it before you need to fill up.

It’s the same with our finances. We can make a fantastic plan (the budget), but if we aren’t tracking what we’re spending, it’s just a guessing game until the next fill up (payday). When living this way, you'll often find that at the end of the month there's more month than money left.

The easiest way to track your spending is through an app, such as EveryDollar, though I recommend manually tracking if the first time.

if you've developed bad spending habits, you might want to try a spending freeze to help you gain control.

Start Tracking

The first step to track your spending is to review your last 3-6 months of bank account statements and break the expenses into different categories.

Expenses that are fixed—meaning they don’t change month to month—are straightforward to budget. Variable expenses—those that change month to month— are budgeted for by using an average.

Next, make your monthly spending plan by writing down your monthly income (take-home), and listing out each expense category and amount and subtracting total expenses from income. If this number is negative, you are spending more than you make. If positive, you are in the green!

Finally, after making the plan it's vital to track your expenses on either a daily or weekly basis. I prefer to track our spending at least every other day to stay on top of it. I use the EveryDollar paid app, which automatically pulls in transactions from our checking account. All I have to do is drag and drop each transaction to the right budget category. This takes max five minutes per day!

Saving

This section of your budget binder could include your savings goals, savings account balances and documents, retirement account statements, and related research or account balances.

Tracking your savings goals will increase the likelihood of reaching them. No matter how big or small the goal, track your progress along the way.

As a rule of thumb, you should always be saving for something. If you wait until your car breaks down and doesn’t run to save for a new one, it’s likely going to be a stressful financial situation. Instead, setting aside a little bit every month long before you need a new vehicle will relieve the stress of the financial situation, making it an inconvenience rather than a crisis.

As much as possible, we are always saving for various future expenses, such as:

New vehicles
Medical expenses (via HSA)
Replenishing/building up emergency fund
Investing for retirement
Vehicle repairs & maintenance
Home repairs & maintenance
Home building fund (we are in the beginning stages of building)
Down payment on a home
New phones
Christmas gifts/parties
Special occasions
Vacations

Depending on the nature of the expense we’re saving for, we keep our savings in either our general savings account or in our high-yield savings account.

Some seasons have allowed us to save more than others. However, even if we can’t cover the full expense when it comes, having a good start is much better than nothing!

Download & print my free savings tracker bundle!

Debt

Create a section in your budget binder for your debt payoff goals. Whether you want to pay off your house, car, student loans , or credit cards , keeping visual track of your progress is key to staying focused and motivated towards your short and long-term goals.

Click here to download my free debt tracker bundle and track your debt payoff progress!

Financial Goals

Financial goal setting is a key part of a healthy financial plan. It might be helpful to start by identifying your financial stressors-- keep in mind these will be different for everyone.

Is it the mounting credit card debt? Crippling monthly student loan payments? Do you have any money set aside in an emergency fund?

Once you identify the stressors, you can create goals. If debt is eating your income every month, make a goal to pay off your consumer debt in 12 months. Then print out a debt free coloring page and visual debt payoff tracker, and put it in your budgeting notebook.

Organize Your Finances with a Free Budget Calendar Template

Wed, 19 Jun 2024 21:57:46 GMT

A personal budget is an essential tool in your financial planning toolbox. Think of your monthly budget as your roadmap to reaching your financial goals.

While it’s important to have a budget, sticking to the budget is equally important. After all, the plan does you no good if it doesn’t work.

When I first started budgeting, life was simple. We had two incomes, no kids, and we were working on paying off my student loan debt , so our budget consisted of essentials only. Setting up and maintaining our budget didn’t require much work.

Fast forward to now, we have one income and three little kids. Because of busyness and many more expenses to keep track of, utilizing a budget calendar has been a lifesaver for our family. Clearly laying out our income, upcoming purchases, social events, and financial goals helps us see the big picture and set up our family budget for the month.

Maybe you’ve tried budgeting before and it never seems to stick, or maybe you’re a first-time budgeter looking for some guidance. Either way, it’s important to create a budget that works in tandem with your paycheck schedule, monthly bills, and other irregular and regular expenses.

One of the best ways to get a big-picture understanding of your finances and develop an effective money management systems is it to use a budget calendar.

What is a Budget Calendar?

A budget calendar is simply a visual tool to aid in the budget creation and planning process. All that is required is a blank monthly calendar and a zero-based budget template.

The monthly calendar includes all events, paychecks, monthly bills and regular expenses, debt payments, and other financial obligations.

Seeing and visualizing where money needs to go—or be assigned—will aid in the budget creation process and is a great tool to navigate the month ahead with a better understanding of our financial situation.

Why use a Budget Calendar?

Have you ever found yourself at the end of the month realizing there is more month than money left? Absent of a proper plan, this cycle continues, causing frustration and stress. Operating in this way creates chaos and disorder in our personal finances and can leave us feeling out of control – like everything happens to us—as opposed to us driving where our money is spent.

Regardless of your financial situation, being a wise steward of our incomes requires proper planning. How much money you make (or how little) is not a proper measure of financial health.

A family with a small income can be using their money more efficiently than a family with an abundance of money; the difference being one family (with the smaller income) has a plan, and the other does not.

A budget calendar is beneficial for many reasons:

A budget calendar keeps you proactively involved in the budgeting process from start to finish. Utilize a budget calendar to keep track of your finances throughout the month, instead of totaling up spending at the end of the month and being uncertain where the budget got off track.
Allows for even cash flow through the month by planning what bills will be paid with which paycheck.
Reach financial goals faster as you plan for the month ahead. If you have a specific goal, use your calendar to write-in dates you can transfer money to your savings account.
Clearly lay out and understand your financial obligations. Just like writing appointments and social events on a calendar helps you feel more in control of our schedule, a budget calendar will help you feel more in control of your finances.

Think of a budget calendar as a visual representation of cash outflow for the month ahead. Just a quick glance at your calendar will help you put together your monthly budget in no time!

Free Monthly Calendar + Budget Calendar Templates

Before working out the mechanics of setting up your monthly budget calendar, you need a monthly budget template! I have multiple free printable budget templates to choose from:

These free printable monthly budget planners are free for personal use and can be printed/downloaded as many times as you’d like!

How to Create a Budget Calendar

1. Paychecks

The first step is to estimate your monthly income and write your paycheck(s) on your budget calendar on your pay dates (or expected pay dates). When actual paychecks come in, update your budget and budget calendar for your actual income and actual dates.

If you’re paid weekly or biweekly, the paycheck budget method is a great way to organize your budget into a weekly budget. Read more about the paycheck budget method here.

2. Bills

Write your fixed expenses on the calendar – these are your regular expenses that don’t change month to month—mortgage/rent, internet, tv subscriptions, cell phones, etc.

3. Debt

Include any debt payments on your budget calendar – car payments, student loan debt, credit card bills, etc.

4. Savings Goals

Many people make the mistake of having detailed financial goals, but determining they’ll figure out what’s left at the end of each month and put that towards their various goals. This doesn’t work for two reasons. One, there’s never anything left, and two, if there is, it is too tempting to use it for something else.

Determine how much you can set aside every month for various goals after setting up your zero-based budget. Then, set up an automatic transfer from your checking account to your savings and retirement accounts to discipline yourself to follow through with your goals.

Finally, be sure to track your savings goals so you can see how much progress you make over time. Download my free savings tracker to get started!

5. Variable Expenses

Your budget calendar will inform your decisions for how much to budget for variable expenses. They don’t necessarily need to be put on the calendar unless they have a due date.

Variable expenses vary month to month, such as groceries, some utility bills, recreation and activities, gifts, and fuel. Although these expenses are not fixed in nature, they should still have a maximum budget amount. For example, if upon review of your last six months of bank statements you spent between $150-$250 on fuel, you might budget $200 for fuel.

If you review your budget calendar for the month ahead and have two family outings that will require driving a longer distance than normal, you might budget $300 for that month instead of $200. Just remember, the difference ($100) will have to come from somewhere. In other words, another budget category will have to be cut $100 to keep the budget balanced. This is a true zero-dollar budget.

6. Irregular Expenses

Like variable expenses, your budget calendar will help you plan for seasonal and irregular expenses, like home maintenance, car repairs and maintenance, registration dues and fees, extracurricular activities, etc.

Once you identify recurring irregular expenses, you can set up sinking funds for them. This way, they don’t sneak up on you and threaten to blow the budget.

7. Annual Budget Calendar

If it’s your first-time budgeting, simply use a budget calendar to help you create your budget for the next month.

After you get the hang of it, start making calendars for months ahead. One of the main advantages of a budget calendar is it allows you to identify upcoming expenses and plan for them, including annual expenses like Christmas.

Customizing Your Budget Calendar

Color Code

One of my favorite ways to organize my budget calendar is to color code the calendar so that I can quickly see all our pay dates, bills, and social events. However, you can color code in whatever way you want-- whatever works for your personality.

Digital Version

If you prefer a digital template over a written template, utilize this google sheets budget template to use alongside your free budget calendar!

Debt Payoff: 5 Free Printable Debt Free Coloring Pages

Sat, 30 Mar 2024 14:51:49 GMT

You’ve made a plan to get out of debt, but now you actually have to execute the plan. You need a plan for your plan– how are you going to stay focused and motivated on your debt-free journey?

Maybe you have a lot of debt and a low income, and therefore, it’s going to take years to pay off your debt. Staying motivated will be difficult, especially when progress feels slow.

Whether you have a high income or low income; a lot of debt or a little debt; utilizing a debt payoff worksheet is a simple but creative way to track your progress and hard work towards your goal of becoming debt free.

Benefits Of Using Debt Free Charts

Monitoring your progress towards any goal– financial or otherwise– is a crucial bridge between setting your goal and actually attaining it.

A study by the American Psychological Association shows that frequently monitoring your progress towards your goal increases your chances of successfully reaching it. Furthermore, the same study found the more frequent the monitoring, the greater the likelihood of reaching your goal!

This is why debt free trackers are so beneficial for helping with focus, motivation, and achievement of your debt payoff goal! Benefits include:

Visual learners (who make up approximately 65% of the population) benefit greatly from pictures/images. Consequently, a debt free coloring page is an especially effective and powerful tool for these types of learners. A visual learner will be encouraged by the visual aid.
Offers a unique and creative way to stay motivated. Writing down your debt-free goal is important, but by taking it a step further using debt payoff coloring pages, you have another reminder of your progress. When you hit a road bump, seeing your charts representing your progress will be the nudge you need to keep going!
Progress tracking is directly correlated to goal achievement. As mentioned above, monitoring your progress increases the likelihood of hitting your financial goals.

A visual tracker is not only a fun way to fuel motivation, the benefits are backed by research.

5 Debt Free Tracker Coloring Pages

1) Credit Cards

Credit cards have mixed reviews in the personal finance world; some viewing them as a tool and opportunity to improve their credit report, others viewing them as a temptation to be avoided at all costs. I hold the latter view, not only because of personal conviction, but because research exposes the way credit cards affect our behaviors.

Key credit card debt statistic according to a recent survey:

49% of credit card users carry a balance month to month. Nearly half of all credit card users are not paying off their card in full every month. Effectively, they are using the card to close the gap between income and expenses every month.
The average interest rate on all credit cards is 22%. If you think mortgage interest rates are high, consider credit cards and the danger of getting into a cycle of credit card debt.
The average balance carried on a credit card is $6,500.
Willingness to pay goes up 100% with a credit card compared to cash. In a classic study, researchers found that those paying with credit cards were willing to pay a 100% premium over cash buyers for the same item.

Delayed payment does not affect our brain in the same way immediate payment does.

2) Car Loans

According to recent data , the average car payment is $726 per month, and the average auto loan term is approximately five and a half years. Additionally, according to an Experian report , the average interest rate for new car loans is 7.18% for new cars, and 11.93% for used cars.

With this information, if you were to buy a $40,000 vehicle with a down payment of $10,000, at an interest rate of 7% over 5 years, you would pay $45,642.16 for a $40,000 vehicle.

Even more, ot only are you paying more than the vehicle is worth, you are paying interest on an asset that is depreciating in value. On average, a vehicle will have lost 40% of its value after it’s paid off.

This is why a car loan is always a step backwards financially. Get that car paid off!

3) Student Loans

Becoming debt-free by paying off $20k of student loan debt while living on one income was a turning point in our financial journey as a newly married couple.

One of the first things you’d see when you walked through the door of our old, janky, $500-per-month apartment was the debt payoff trackers taped to the cheap, white refrigerator. It reminded me why I was doing what I was doing before I walked out the door for another 15-hour workday.

I had a constant visual reminder of our specific goal.

4) Home Mortgages

Just dream with me for a second… What would you be able to do financially if you didn’t have a mortgage?

Although I’d recommend paying off consumer debt first, paying off your house early pays huge dividends. Not only will you not have a mortgage payment every month, you will also get to keep the money you would’ve spent on interest! Furthermore, you will have the security of knowing that you are the 100% owner of the home– the bank can’t take it from you if you fall on hard times and default. On the other hand, if you fall on hard times you would be able to sell the home and keep the entire check.

Take this example: you take out a home loan for $200k over 30 years at 6%. If you pay just $200 extra per month on your mortgage, you’d pay it off 9 years early and save approximately $80k in interest!

Download the house payoff coloring sheets if you’re ready to tackle your home mortgage!

5) DIY Debt Free Coloring Pages

If you prefer to complete your own debt free chart, use these DIY debt free coloring sheets to track your journey. These blank pdf format printables can be used to track either savings goals or debt payoff goals. For more savings challenge ideas, visit this post.

The Debt Snowball Method

The debt snowball method is based on the momentum theory, combining time, intensity, and consistency to create a powerful force of momentum.

As opposed to the debt avalanche method -- which has you pay off the debt with the highest interest rate first -- the debt snowball method has you pay off debts in order from smallest to largest balance, regardless of interest rate. Here’s how to do it step by step!

1) List your debts in order from smallest to largest balance.

The first step is to list all your non-mortgage debt on a spreadsheet or piece of paper. Organize the list by writing the debts in order from smallest to largest balance, regardless of interest rate. Then, total up all the debt. You need to know what you’re working with. The total amount might be scary, but you need to acknowledge it. This step is not to discourage you, but to acknowledge where you’re at so we can create a solid plan!

1) List your debts in order from smallest to largest balance.

2) Make minimum payments on all debts except debt with the smallest balance.

Make a column on your list for the minimum payment and total balance of each debt. To work the debt snowball, make minimum payments on all debts except the debt with the smallest balance; pay as much extra as possible on that debt. The extra payments you make above and beyond the minimum monthly payment will be applied directly to the principal balance, making the payoff rate faster.

3) Pay as much extra as possible on the smallest debt.

Create a monthly budget to determine how much money you can squeeze every month to put towards the smallest debt. Where can you save money (what costs can you temporarily cut)?

Additionally, try and find ways to increase your income– walk dogs, babysit, have a garage sale, deliver pizza, tutor online, etc. If you can find a way to bring in extra money, it will accelerate the debt payoff process. The key in this step is to remember it’s only for a short period of time, it’s not forever.

4) Once the smallest debt is paid off, roll the payment into the next smallest debt.

Once the smallest debt is paid off, take the payment you were making on that debt (the minimum + extra) and add it to the minimum payment for the next smallest debt. This creates a snowball effect; the payment amount builds as you pay off each debt.

The best way to understand this concept is to see it in action:

The debt snowball strategy is to attack the smallest debts with intensity first, so you get a quick win and stay motivated. While the numbers matter, our behavior towards money and debt matters even more than the actual numbers! The psychology behind this theory is that if we have small successes at first, we are more likely to have big successes later.

5) Repeat until all debt is paid off.

Repeat this process until all your consumer debt is paid off! No matter how much debt you have, following a plan is crucial. It may take 6 months or it may take 6 years– just remember it will be worth it when you’re debt-free.

Remind yourself often of what you could be doing with the money that’s going to debt payments every month.

Don't Forget...

Don't undere stimate the power of a great visual to keep you motivated to reach your money goals. Filling in debt trackers is a great way to stay focused and motivated towards your ultimate goal!

The Ultimate Guide to Creating a Successful Family Budget

Sat, 27 Jan 2024 22:50:06 GMT

I created o ur personal family budget over 7 years ago, and the blueprint has allowed us to reach many of the financial goals we never thought would be possible, especially now that we are a one-income family .

Although the budget has evolved in many ways over the years, the security and stability it brings to our family– no matter our income level or number of children in each season — is a true blessing!

We’ve had seasons where we were living on an extremely tight budget, and seasons where money was plentiful– and in each season we’ve trusted the Lord’s provision but also understood it is wise to have a plan. Sometimes the plan derails and we have to improvise, but that is the exception rather than the rule!

Do you feel like there is never enough money at the end of the month? Does the word budget make you feel instantly overwhelmed? Is your financial situation really good but you'd like to be more intentional?

If you answered yes, then my hope is that this post will help you create a simple and practical plan for your family finances that gives you peace and freedom from the overwhelm!

What Is A Family Budget?

A budget is a roadmap, the tool you need to get where you want to go. A roadmap protects you from going off course. In the same way, a budget protects you from impulsive purchases and other financial habits and decisions that are going to put you off course.

A budget is not a straight-jacket, it’s for both the conservative nerd and the eclectic creative. It’s a crucial tool in the financial planning toolbox!

While I’m definitely the “nerd” in our marriage (I love spreadsheets, planners, lists, etc), my husband knows and values the importance of a budget just as much! He knows that without it we would quickly get off track, especially as busy parents of 3 littles.

Why is a Family Budget Important?

The degree of our frustration with our finances is often the gap between what our priorities are and what is actually happening.

A family budget allows us to define our priorities and make a plan so our personal finances reflect those priorities.

If one of your top financial priorities is to be able to bless others, it’s frustrating if it’s a challenge just to get all the bills paid during the month.

As a caveat, I would like to point out that having financial challenges does not necessarily indicate financial irresponsibility. The Bible is clear that the Lord tests us and gives us trials to continue our sanctification and prevent us from storing up treasures on earth that will pass away (Matthew 6:19-20).

However, there are many times when our financial hardships stem from a lack of financial responsibility. Ask the Lord to help you discern what is true in your situation.

In either case, having a clear plan for our finances– and being diligent in carrying out that plan– is good (Proverbs 21:5)

Free Monthly Budget Template

A monthly budget template is an essential part of a solid financial plan. Use one of my free monthly budget templates to quickly download and follow along as you work your way through the steps below!

How to Create a Successful Family Budget

1. Determine Your Monthly Income

The first step is (typically) fairly straightforward. List your monthly household take-home (after-tax) pay from all sources.

If you have irregular income (small business owners, commission earners, etc), use a low average of the past 6-12 months, or use your lowest estimated monthly income to create your budget. With irregular income, you want to be conservative with your estimate! Just because the income isn’t as predictable, doesn’t mean you can’t budget. In fact, I’d argue that it’s all the more important that you budget!

2. List Monthly Expenses

Next, determine your monthly spending. Start by logging into your bank account(s) and going over your bank statements, listing out all your monthly expenses.

It’s important that you don’t try and estimate what you’re spending without looking. Rather, go over each and every expense; many times there's a big difference between what you think you're spending and in reality what's going out! To make your budget effective, you need to be working with actual numbers, not estimates without any data.

Some expenses will be straight-forward and easy to budget for, while others will require a little estimation. Regular expenses (fixed expenses) are those that don’t typically change month to month– think mortgage/rent, some utilities, subscription costs, insurance, phone, cable, etc. Conversely, variable expenses are those that do change month to month, such as groceries and gas/fuel. For these expenses, still set a maximum monthly budget amount based on an average.

3. Convert Non-Monthly Expenses to Monthly Amounts using Sinking Funds

This is where most people get hung up– they say budgeting doesn’t work because unexpected expenses always come up and bust right through the budget! But here’s the thing– are unexpected expenses really that unexpected?

For example, you don’t know exactly when your car or home will need repairs. However, you do know that at some point your car and home will need repairs. So when the car breaks down is it really that unexpected? Or is it reasonable to assume at some point as you put more wear and tear on the vehicle, it will need repair?

This is why we want to set aside a little bit of money every month for expenses of this nature instead of trying to cash-flow them in a single month! It makes these expenses a lot easier to swallow, and less likely that you’ll have to dip into your emergency fund to cover the costs.

We try to use our emergency fund as a very last resort. We do what we can to plan and prepare for unexpected costs by having a line item in our budget for things like car repairs, home repairs, etc, and carrying the balance over month to month. It doesn’t always cover the entire cost when these expenses do occur, but it at least gives us a good start!

House maintenance / repairs
Car maintenance / repairs
Special occasions (birthdays, weddings, anniversaries, showers, etc)
Christmas gifts / celebrations
School supplies / extracurricular activities
Annual, semi-annual, or quarterly expenses/dues (insurance, memberships, etc)

To set up your sinking funds , simply take the total needed (or estimate) and divide by months until due. For expenses like house repairs and car repairs, estimate what you’ll need yearly and divide by 12. If your budget is tight, just set aside what you can, something is always better than nothing.

4. Create Budget Categories

After listing out your monthly (both fixed & variable) expenses and setting up your sinking funds, determine your budget categories. You can have as many or as little as you’d like, depending on your personality.

Some people like to have lots of budget categories so their budget is more detailed, while others like to keep it simple with just a few major categories and sub-categories.

Use these general budget category guidelines to evaluate your own budget:

Keep in mind these are suggestions, not prescriptions. Every family’s budget will look different, and this should be so!

5. Put Financial Goals in the Budget

A crucial budgeting step is to put your financial goals as a line item in your monthly budget. Most people create a budget and decide if they end up having anything left over, that’s what they’ll put towards saving and investing. The problem is, there is never anything left! Budget for your financial goals before budgeting for other non-essentials.

Long-term & Short-term Goals

Putting your financial goals in the budget is crucial if you want to actually reach your goals. If you decide to just see what’s leftover each month, you’ll often find the money disappears quickly!

Savings Goals

Have a line item for your savings goals. Examples of savings goals that you might put in your family budget include:

Fully funded emergency fund: aim to set aside 6-12 months of household expenses into a separate savings account for financial emergencies. This way, when larger, unexpected expenses arise, it is an inconvenience rather than a crisis.
Family vacation : set a savings goal for your next vacation. Instead of putting it on a card and paying for it later, have the money set aside and the trip fully-funded before leaving!
Vehicle replacement: it’s a good idea to always (if possible) be setting aside money for vehicle replacements.
Baby fund: depending on your insurance plan, having a baby can be rather expensive. Set aside money (temporarily stop investing and putting money towards other goals) into either a separate savings account or your HSA, if applicable. You may also want to set up a sinking fund for baby supplies and furniture.
Investing: a good rule of thumb is to invest 15% of your gross-income into tax-advantaged retirement accounts. If you can’t, do what you can! Developing the discipline of consistently investing on a monthly basis is important, so when you do have more funds to invest, you have already developed the self-discipline to do so.
HSA (Health Savings Account): if you have a high-deductible medical plan, you can set up a health savings account either through your employer or on your own. The major benefit of an HSA is that you can save money for medical expenses on a pre-tax basis. In other words, any money you put into your HSA is tax-deductible, so use it to your advantage!

Break each savings goal down further into a monthly savings amount, then put it in the budget!

Emergency Fund

I think it’s necessary to talk about the emergency fund more in depth because it’s so important. If you don’t have an emergency fund, focus on this financial goal before any others. An emergency fund is your hedge of protection against financial crisis, giving you financial security.

In the past, I recommended Dave Ramsey’s guidelines of setting aside 3-6 months of household expenses, but I now recommend setting aside 6-12 months, or more. The reason being you can now put your funds in a high-yield savings account and earn 5% interest, instead of 0.01% through your local bank.

Obviously, it wouldn’t be wise to stockpile cash in your emergency fund if you can make more in the stock market. However, with high-yield savings accounts , you can get a good rate of return and still have access to the funds, no maintenance fees, and depending on the account, potentially no minimum balance requirement.

Pay Off Debt

It’s hard to build wealth when your income is tied up in monthly payments. Student loans, credit cards, personal loans – add in a large car payment and your monthly debt payments could be taking up 25-50% of your monthly income.

It’s easy to see why so many people feel like money is always tight. When you’re in debt, you don’t have options. Lack of options will make you feel trapped. Not only will you feel trapped, but you are trapped if you have debt obligations every month.

Furthermore, consumer debt is a signal that the plan you're currently working isn't working. If you're using credit card debt to bridge the gap between income and expenses every month, then you're living in the red. You have to learn how to live in the green if you want to steward your financial resources well.

Make it a top priority to pay off debt quickly so you can free up income to accelerate other financial goals. Consider using the debt snowball method, which we found effective when we paid off over $20k of student loan debt in 12 months while living on one income.

6. Create a Zero-Based Budget

After including your financial goals in the budget, adjust and re-work until every single dollar of income is budgeted. Income - expenses should equal zero. If you have money left over, be sure to assign it to a purpose too.

Over-Budget

If you subtract your total expenses from your income and you’re in the red, you’ll want to find a way to either increase income or cut costs. Start with the easiest expenses to adjust and cut, such as groceries.

Groceries

One of the first things you can do to cut costs is reduce food waste and plan meals. Make your shopping list after you’ve made your meal plan, starting with trying to use up ingredients you already have at home. Grocery spending tends to be a big budget-killer, because of convenience meals and lack of planning. If I'm honest, when we’re super busy as a family, meal planning is one of the first things to go. As a result, I see the lack of planning reflected in our food spending at the end of the month! My biggest tip is to shop your house first before heading to the grocery store; making as many meals as possible with what you already have on hand.

Subscriptions

Paying for convenience has its place, so I’m not going to tell you to cut every single subscription service you have to cut costs. However, if you evaluate your monthly subscription services and determine there are a few that you either aren’t using or don’t provide enough value for the cost, get rid of them to free up funds in the budget.

Cash

Cash budgeting sounds like a lot of work— and it can be— but it pays off, no pun intended! If you struggle with impulsive spending or have a hard time keeping a few budget categories under control, try using cash envelopes to curb spending.

Studies show that when we use cash it affects our brains differently than when we use credit cards or debit cards, and as a result we spend less with cash. The bottom line is it hurts more to use cash, because we feel the transaction immediately as we hand the money over the counter, as opposed to swiping our plastic money.

Cash envelopes work great for groceries, personal spending, clothes, restaurants/entertainment, and gifts. You don’t have to use them forever, but using cash envelopes temporarily will help you reign in your spending and really think about your purchases.

Family Activities

The great thing about family fun is that it doesn’t have to be expensive. Especially with younger kids, they can be entertained by just about anything. My kids love to go to the park, do crafts, help me cook, play games as a family, go to the library, go on walks, etc. Get creative and make it a challenge to see how many free activities you can do together!

Under-Budget

If you’re under-budget after assigning income to all your expenses, give the money a job! Brainstorm some more sinking funds you may need, increase your savings or investing, or create a miscellaneous category to use as a buffer for smaller, unexpected expenses during the month.

7. Track Your Spending & Update Budget Accordingly

I use a budgeting app called EveryDollar to track our spending. It has many different features, but I personally like to use it exclusively for tracking spending.

Our actual monthly paycheck budget I plan out and set in google sheets. I’ve found an excel spreadsheet is the best method for budget planning, because I can copy & paste my budget into a new tab as a starting point for the next month!

There are a plethora of digital budgeting tools available, but don’t get lost in the sea of options. Keep it simple, you don’t need all the bells and whistles to effectively track your spending. In fact, making it too complicated will discourage you from sticking with it!

Figure Out What Budgeting Method Works

As a family, we use the zero-based budgeting method, and I highly recommend giving it a try! However, each family is different and has different circumstances and needs. Here’s a brief overview of the different budgeting methods and advantages/disadvantages of each.

50/30/20 Budget

A major benefit of the 50/30/20 budget is that it gives a simple, clear framework for breaking up your expenses. Specifically, expenses are broken down into needs (50%), wants (30%), and savings (20%).

The major advantage of this budgeting approach is the simplicity of an easy formula to follow, which is what many beginner budgeters are looking for.

The major disadvantage is that it is a one-size-fits-all approach, with no consideration for circumstances. For instance, if a family with four kids and zero retirement savings follows this approach, they will be under-funded in retirement. If an older couple with no children at home follow this approach, they will not be saving as much as they probably could.

Envelope Budget

The envelope budget method refers to utilizing cash envelopes for most budget categories by labeling the envelopes with a particular expense, then stuffing the envelope with the amount of cash you budgeted for that category/expense.

The major advantage of this method is the habit training and behavior modification it produces. As mentioned earlier, we not only spend less with cash, but our willingness to pay for an item is lower with cash than a card. In other words, we’re willing to pay more for the same item with a card than we are with cash. Simply changing our payment method affects our behavior! This is a simple switch you can do to help with overspending.

Without a doubt the major disadvantage is the inconvenience of using cash– it’s not as efficient as using a card. First, you have to remember to take your cash out of the ATM and bring it to the store. Additionally, keeping your envelopes organized can be a learning curve at first.

All that said, I still highly recommend using the cash envelope method, especially if you’re just getting started with budgeting. It’s a simple way you can start saving more (without cutting costs) right now.

Irregular Income Budget

All the small business owners and commissioned employees are thinking there is no way this is going to work for me. It will! The process just looks a little different.

Base your budget on your lowest expected monthly income.
Always cover necessities first.
Cover financial goals next.
Make adjustments when paid.
Track your spending diligently.

The key with irregular income budgeting is to estimate income conservatively and base your budget off this amount. Be sure to cover your necessities first (food, housing, utilities, transportation), then financial goals (saving and investing), then non-necessities.

In months income is higher than expected, start by catching up on anything you’ve had to put off– like saving, investing, vacation funding, etc.

In months income is lower than expected, stick to the necessities and make a note of how much you’re “behind” on things like investing, saving for upcoming, larger expenses (like a new car, house down payment, etc) so you can quickly determine how much to allocate in higher months to these categories.

Tips for Family Budgeting Success

Envelope Budget

We all do it. Impulse purchases can seem nearly impossible to get under control when we’re bombarded with constant advertising almost everywhere we go– on our phones, in the middle of the podcast we’re listening to, on the radio (if that’s still a thing), every website we visit, it’s nearly impossible to escape!

I can’t be the only one who’s on social media to see what friends and family are up to only to find myself on three different websites checking out products some person I follow “can’t live without.”

If you struggle with impulsive spending, or if there are budget categories you know you need help reigning in; consider trying the cash envelope budget.

Simply put, whenever your budget resets for the month (or whenever you’re paid if you’re using the paycheck budget method ) , take out of the ATM the amount of cash equal to what you have set as your budget for that category. It may be helpful to split the budget. For example, if you budgeted $800 for groceries for the month; instead of taking out $800 on the first paycheck, withdraw $200 per week.

Read in detail how I have used the cash envelope method to reset my spending habits.

Family Meeting

Especially if you have older kids, having a family meeting about things that need to change or goals that you want to achieve together may be beneficial. Include your kids in the process, helping them to understand why it’s important to budget and showing them how you're making the household budget. Don’t underestimate their ability to comprehend budgeting. It’s always a good idea to include your kids in what you’re doing– that’s how they learn! Even if you have young kids who might not quite understand money management, monthly budget meetings may be beneficial for you and your spouse.

Adjust to Changes

Many people treat budgeting with the set it and forget it method– they create a rough budget and don’t look at it again until the end of the month. Then, at the end of the month, they become frustrated because there’s no money left and the budget obviously didn’t work.

The problem is just like any plans in life we want to succeed, budgeting requires us to be active and engaged in the process; adjusting to changes, working through the weeds, rejecting complacency.

Prioritize Your Expenses

An important step in the budgeting process is prioritizing your expenses. Some will have to prioritize more than others, depending on income and circumstances. Chances are a family with six kids living in a high-cost area will have to prioritize a bit more than a family with two kids living in a low-cost area.

Prioritizing is a good exercise for us, because it forces us to decide what’s really important.

We always want to cover our four walls first: food, housing, transportation, and utilities. In the hierarchy of expenses, these should be at the top.

Next, budget for other essentials– just be picky about what expenses are truly essentials.

After essentials, budget for financial goals. In my unconventional budgeting formula, I put these in the budget before discretionary spending, because they are important to us as a family. We want to build the savings muscle so it becomes second nature. We’re okay with saying no to a few things now, so we can say yes later.

Budget for non-necessities (“wants”) last. The hope is that as time progresses you will be able to allocate more funds to these things! Of course, that’s not always the case. The Lord might have another plan in store. Whatever His plan– adjust accordingly!

Savings Goals Worksheet: Smart Financial Goal Setting

Sat, 13 Jan 2024 16:53:52 GMT

Setting savings goals is an essential part of a healthy financial plan. Whether you’re saving for a car, saving for a down payment on a home, or trying to build your emergency fund, having clear goals will allow you to build a clear plan, increasing the likelihood you’ll reach your goals!

If you’re here and feel like “Yes I’d like to set savings goals!”, but feel like you can ever make any forward progress in your finances because of your financial situation. I'd just like to encourage you that simply setting a goal is the first step!

On the other hand, if you have an abundance of income and feel like you don’t need this post, I’d encourage you that if the Lord has blessed you with wealth, without any clear priorities and direction for it, it’s easy to mismanage it.

Why Savings Goals are Important

It’s essential that we set savings goals so that we know how to prioritize our money. If we don't have a plan, we will be haphazard. We might save a little here and there, but it won’t become a habit.

It’s important to develop habits that will work in the good times and the bad times. If you haven’t built the savings muscle, when things are easy you can trick yourself into thinking you have a good grip on your finances. However, when any kind of financial trial comes, everything will feel out of control because you don’t have the savings muscle mastered.

For us, living on one income has required us to be very diligent about how we spend and prioritize our money. We have three small children to provide for, and in addition we want to make sure we are planning for the future and stewarding what the Lord has given us well.

How to Set Savings Goals

Smart Goals

Use the smart goals system to set effective savings goals.

Specific: Narrow your goal down as specifically as possible, don’t be vague.

Measurable: How will you measure your progress or whether the goal has been met?

Achievable: Is the goal realistic? For example, are you going to try to cut your grocery budget by $500 in one month? That’s probably not realistic, and you’re setting yourself up for failure before you even begin. Make sure it’s realistic.

Relevant: Why do you want to achieve this goal? What is the purpose?

Timely: Every goal needs a timeline. Giving yourself a deadline will help you feel the “good” pressure of making sacrifices to meet the goal. Once you set a target "save by" date, break it down into monthly goals, then weekly goals, etc.

I’d add one more criteria to the SMART goal framework– write your goals down. Studies consistently show that those who write down their goals are more likely to achieve them. One study showed that simply writing goals down resulted in a 42% more likelihood that you’ll achieve them.

Step by Step

For example, let’s say your goal is to save more money in the new year. That’s a great goal- but it’s not very specific, measurable, or timely, though it’s relevant and achievable. To break the goal down further, ask yourself the following questions:

What specifically do I want to save for (a house, new car, new furniture, etc)?
How much do I want to save? How can I measure my progress?
Is this goal realistic considering my unique circumstances?
Does this goal align with my priorities? What should I be saving for first?
What is my target date to have the money saved?

Answering these questions will help you have a clear vision of where you want to be and to execute it effectively. The next step is to determine how much you need to save every quarter, month, or even day to hit your goal, and how you'll do it.

Financial Goals Worksheet

Get my free savings tracker to set and effortlessly track all your savings goals in one place.

Savings Goals Examples

Short-Term Goals

Short-term goals are those that you hope to accomplish in less than one year.

Build an Emergency Fund of 3-6 Months of Expenses

An emergency fund is your hedge of protection against unexpected financial situations or circumstances such as sudden job loss, unexpected medical bills, a large, unforeseen home repair, etc. A good rule of thumb is to have 6-12 months of household expenses set aside in a separate savings account, to be used only for financial emergencies.

We keep our emergency fund in a high-yield savings account. Although tempting, don’t let your credit card be your emergency fund. This gives a false sense of security- we know that it has funds available if we need, but we don’t actually have the money!

Save for a Downpayment on a Home

If you’re currently saving for a home , it might feel like you’re going to be saving forever! Just remember, a little bit over time adds up. Being faithful month after month to set aside cash for your goal is a discipline– especially when it seems like an impossible feat. Just keep doing it.

We’re currently saving for something that seems so out of reach (building a house for cash), yet I know my trust in the Lord + diligence with saving is not in vain. I know ultimately it rests in His hands, and I am at peace that if He wills us to live here and build the house, He will provide!

Pay Off Debt

Have you ever borrowed something valuable from someone and until you returned the item you never felt comfortable? As long as the item was in your possession, you were a bit restless, knowing you were responsible for returning it? Did you feel a little relieved once you returned it, even though you were glad they let you borrow it for a time?

Having outstanding debts over your head can feel that way. Whether student loans, credit card debt, personal loans, car loans, business debt, or any other type of debt, creating a plan to pay off debt quickly is one of the most effective ways to change your financial future.

Proverbs warns us that the rich rule over the poor and the borrower is a slave to the lender (Proverbs 22:7). It’s easy to become a slave to Visa or Mastercard, especially if you’re using credit cards to bridge the gap between income and expenses every month. It’s not sustainable, and if the debt is building, eventually the dam will break and the river will rage through.

Make a plan to pay off debt quickly– I recommend the debt snowball method – so you can free up income to put towards other financial goals.

I’m so glad the Lord prompted us to pay off my student loans immediately after college graduation, because little did we know 18 months into marriage we’d have a baby boy in our arms. God is so gracious!

Long-Term Goals

Long-term goals are typically those that have a timeline of more than a year, or are ongoing/continuous (like retirement savings).

Increase Retirement Savings

Aim to save 15% of your gross monthly income toward retirement into either a Traditional or Roth IRA or 401(k) retirement plan. The earlier you start, the better. If you can’t make 15% work right now, just do what you can. Anything is better than nothing. Developing the discipline is what’s important!

When it comes to investing, time is money. Because of compound interest, even if you start earlier and invest less per month, you’re still better off than if you start later and invest more per month.

Don’t wait for the perfect time to start, just start developing the discipline by setting aside money every month. I’d recommend doing an automatic paycheck deduction or automatic funds transfer from your bank account so you don’t even think about it!

��Related Posts:

Save for a Home / Invest in Real Estate

Saving for a home might be a long-term goal rather than a short-term goal depending on your area, income, and financial situation.

Even if it will take you 5+ years to save for a home, commit to the process. Real estate is an incredible investment, because it rarely goes down in value.

If you already have a primary residence, you may want to consider saving for a rental property, to attain more assets in your financial portfolio. Furthermore, a rental property generates a passive income source for your family!

Pay Off Home Early

Before considering any additional real estate investments, it’s wise to focus on paying off your primary residence first. Make additional principal payments when possible to save on interest and to shorten the term of your mortgage loan. Depending on your interest rate, you could save tens of thousands of dollars by simply paying an extra $100-$200 per month on your mortgage!

Save up for Large Purchases & Irregular Expenses

Many people tell me they want to budget, but it doesn’t work for them because unexpected expenses always come up. For example, they make their monthly budget, but then the water heater unexpectedly needs replacing, and their monthly budget is busted. This happens month after month, and so they conclude that budgeting doesn’t work.

Here’s the thing– budgeting requires planning for both monthly and non-monthly (both expected and unexpected) costs. To do this, use sinking funds savings accounts.

Sinking funds are a budget category you establish whose balance is carried over from month to month. Because of this, it’s important to track the balance of your sinking funds on a monthly basis.

Sinking funds examples (get my list of sinking funds here):

Christmas fund
Car repairs
Home repairs
Baby fund
Furniture fund
Car replacement
Gifts (weddings, anniversaries, birthdays, etc)

Read in detail how to set up your sinking funds here.

Tips for Sticking to Your Financial Goals

It’s one thing to set goals, it’s another to actually stick to them! Here are some ways that you can set yourself up for success when trying to save money. If you’re not a saver by nature, saving money is going to require some additional habit changes. But don’t lose heart- savers can learn to spend a little more and spenders can learn to save a little more.

Create and Stick to a Budget

Budgeting is for everyone, not just finance nerds! In fact, a monthly budget is a crucial part of a solid financial plan!

You can get my free excel budget worksheet for a simple, no-fuss way to create a monthly budget you can stick to that will help you to take control of your personal finances. No more spending more than you make, no more getting to the end of the month and barely squeezing by.

Track Your Goals

The next step after setting goals is to track them. I recommend tracking your goals at minimum on a weekly basis. This way, you stay engaged and proactive in the process. Often times, you'll be so motived that you'll find extra money in places you didn't even think of, whereas if you don't track anything you may find yourself lacking motivation and giving up quickly.

Complete A Savings Challenge

After setting a savings goal, completing a money saving challenge is a great way to execute your goal by having a clear action plan. There are many different money saving challenges-- the 100 envelope challenge, 52-week classic challenge, penny challenge, and many more! These challenges help you break down your larger savings goal into mini-goals. They typically require setting aside a small amount of money everyday or week, which can make our goals seem more achievable than if we look at the total goal itself.

>>> GET MY FREE SAVINGS CHALLENGES PRINTABLE <<<<

��Related Posts:

Try a No Spend Month

A no spend month is technically a savings challenge, but I listed it separately because I think it's a very beneficial way to help prioritize your expenses and build your monthly budget. Completing a no spend challenge will force you to reset your spending habits and determine what are truly necessities.

To complete this challenge:

Pay Cash

Do you find it harder to part with cash than to swipe your debit or credit card? I know for me it's a lot less painful to swipe my debit card a few times per day than to hand over $20 here, $50 there. Well it's not just a myth, studies back up the science that we do spend more with a card vs. cash. One study showed that the willingness to pay of participants in the study went up by 100% by those using a card vs. those using cash!

In addition to a higher willingness to pay, overall average transaction size is higher for those who use cards vs. those who use cash. According to a Boston Fed study, the average consumer cash transaction was $22, while $112 was the average non-cash transaction.

Try using cash envelopes for budget categories that you struggle to stick to in order to curb impulsive spending habits.

��Related Posts:

To Wrap it Up

Although I full-heartedly believe that setting goals will help you achieve them, always remember that the Lord determines our path, and He gives to each their lot (Proverbs 16:33). The Lord prunes us, and one of the many ways He may choose to do so is by bringing financial hardship, for the purpose of sanctifying us and keeping us from being in love with the world and its possessions.

Don’t make plans for your money and ask Him to bless your plans. Ask for wisdom through prayer and His will, which is found in His Word. Proverbs is filled with wisdom regarding financial planning and is a great starting point.

Ultimately our money is His, we are merely managers. Where does the manager go when he has questions/conflicts? To the boss of course. A wise manager cares for the affairs of his boss very carefully and thoughtfully. How much more should we seek His counsel for the money he has given us?!

Transform Your Finances with a Zero Based Budget Worksheet

Mon, 13 Nov 2023 01:08:49 GMT

For nearly 8 years, I’ve been making a zero based budget worksheet. Whether single and saving for a wedding, married and paying off debt rapidly, and now married with three kids in tow, the budget has drastically evolved over the years. However, the concept has remained the same: every dollar of income is given a specific purpose before the month begins.

Our monthly budget is our roadmap to success. When I get behind and don’t have the budget made before the month begins, I feel disorganized, out-of-sorts, and tend to be more impulsive with my financial decisions.

A zero based budget is a budgeting approach that will help you achieve your financial goals no matter how big or how little your income, and that's why it's my favorite!

What is a Zero-Based Budget?

Made famous by Dave Ramsey (read about his baby steps here), a zero-based budget is simply a budget that has a zero dollar balance. This means that total income less total expenses equals zero. It doesn’t mean you have zero dollars in your bank account at the end of every month.

Rather, the key principle is every single dollar of your income is being assigned to a budget line item, including line items such as saving and investing!

Although this is a straight-forward concept, many people struggle to put together a zero-based budget on paper. Understanding and utilizing the principles of zero-based budgeting outlined below will make all the difference in your financial planning!

Zero-Based Budgeting Principles

Planning. Success requires planning. Being haphazard with your money will leave you frustrated and discouraged. No matter how much or how little you make, with a plan, you can be successful and reach your financial goals. Zero-based budgeting requires upfront planning.
Prioritizing. Although you might always have money in your bank account without a budget, you likely aren’t prioritizing your money and making it work for you. Part of budget planning is prioritizing your expenditures– because money is finite.
Tracking. The “set it and forget it” method of budgeting won’t get you very far unfortunately :) Rather, you must be proactive in the budgeting process and track your spending throughout the month so you can update your budget accordingly.

Advantages of Zero-Based Budgeting

Zero-sum budgeting is the best budgeting method to reach your money goals for many reasons:

Flexibility. Although your goal is to stick to your budget, there is also freedom in knowing that your final budget for the month doesn't have to look like when you created it. You're going to update it as the month happens and actual pay comes in and actual expenses go out. The budget is your framework for financial success, budget often requires some tweaking.
Not a one-size-fits all framework. Other budgeting methods that use percentages for budget categories (like the 50/30/20 budget), don't have considerations for age, current retirement savings, debt, financial goals, or your specific needs.
Intentionality. The main difference between zero-sum budgeting and other traditional budgets is the intentionality.

How to Set Up Zero-Based Budget Worksheet

Setting up a zero based budget is a fairly simple process, it just requires you take the time to get things right. The most work is done up-front when creating a monthly budget. Beyond the first few months of tweaking the budget to get it right, it’s smooth sailing!

Follow this step-by-step guide to create your zero based budget!

Click here to get one of my free zero-based budget templates (or skip to the end of the post to see more free options).

1. Determine Monthly Income

First, determine your total household income, using take-home income (after-tax pay) vs. gross income (before-tax pay). This should be pretty straightforward, depending on how many sources of income you have. If you are paid hourly, straight-commission, or a combo of both, there are a few different ways to calculate your income.

If you’re paid hourly but your income is fairly predictable, simply use an average of your last 6-12 months of pay. Alternatively, you can use your lowest estimated monthly income from the last 12 months to base your budget off of.

Irregular Income

If you have irregular income or unpredictable income (such as a small business owner), simply base your budget on your lowest expected monthly income. Look at historical data to assist you in determining your final number.

2. Calculate Expenses

Second, calculate and categorize your monthly expenses. Calculating your true expenses requires thinking beyond your obvious monthly spending– you want to include both monthly and non-monthly expenses in your budget.

Monthly Expenses

Using your last 3-6 months of bank statements, add up and categorize all your monthly expenses, both fixed and variable.

Fixed Expenses

Fixed expenses are those that do not change from month to month. These expenses are easy to budget because you know exactly how much they will be and when they are due. Most essentials will fall into this category.

Examples of fixed expenses:

Housing
Utilities
Transportation
Debt payments
Childcare
Car Insurance
Home insurance
Monthly subscriptions & memberships

Generally, fixed expenses are harder to cut than variable expenses. It’s typically easier to cut your entertainment, grocery, and dining out expenses as opposed to trying to cut your housing costs in half.

Variable Expenses

Variable expenses refers to expenses that do change month to month. These expenses are directly influenced by your choices, and some are more easily controlled than others. However, it’s still important to set a maximum budget amount for each variable expense category.

If, for example, you decide to not set a max amount for groceries or clothing because of the variable nature of the expense, you’ll be shocked when you add up how much you spent at the end of the month.

To set a budget amount for variable expenses, first look at your average spending for that budget category.

Examples of variable expenses:

Groceries
Clothing
Recreation
Kids activities
Gifts/celebrations
Restaurants
Entertainment
Personal spending
Miscellaneous

As I have noted above, these expenses are typically easier to adjust than fixed expenses. If you need to trim the budget, start with your variable expenses, especially those that are non-essentials.

Non-Monthly Expenses

Many expenses are obvious: groceries, gas, utilities, housing, etc. But what about random birthday parties and get-togethers? What about when the refrigerator goes out and you have to allocate a good chunk of your paycheck to a replacement? What about the annual insurance premiums due January 1st?

In addition to budgeting for monthly expenses, you want to budget for non-monthly expenses in order to capture your true expenses.

To budget for these, set up sinking funds. A sinking fund is a strategic way to save for an expense or multiple expenses over time by setting aside money every month.

Unexpected Expenses

Without a doubt, unexpected expenses will come up during the month. Appliances don’t beep and tell you they are about to fail you (and probably right after you just replaced a bunch of other things). You can’t foresee the sprained ankle, broken arm, or tooth that got knocked out during the elementary basketball game.

However, I’d argue that although we don’t know when these expenses will come up, or what the nature of the expense will be, we do know this: they will come up.

So are they really that unexpected?

For instance, although you don’t know when your car will need repair or how much it will cost, you do know that it is likely your car will need repair at some point. You don't know how many birthday gifts you'll have to buy during the year for your kids various parties, but you there will be some.

We know these things happen, we just neglect to set aside money for them for various reasons. I get it – sometimes it’s too stressful to think about, the funds aren’t there, or you feel like you don’t have time.

However, putting these expenses in the budget will relieve so much financial stress and frustration.

Examples of unexpected expenses:

Car repairs
Home repairs
Medical bills

Set aside money for these expenses on a monthly basis. Keep these funds in a separate savings account (called a sinking fund ) so you aren’t tempted to spend on something else!

Expected Expenses

Non-monthly expenses that are easier to estimate are those that are probable and easily estimable .

Property taxes
Christmas
Insurance premiums
Annual gym dues
Registrations
School dues & supplies
Extracurricular activities
Gifts (weddings, birthdays, anniversaries, etc.)

First, write down the expense amounts that you know (insurance premiums and gym dues for example), and divide by months until due. For instance, if it’s January and your auto insurance premium is $1,200 due Jan. 1st, budget $100 per month.

For all other expenses, estimate what you’ll need to set aside or what your budget limits you to. You might want to be able to set aside $200/month for car repairs, but after working through the budget steps, you might find that you can only reasonably set aside $100/month. That’s totally fine! Don’t be discouraged. Remember, something is better than nothing. Small disciplines add up over time!

Budget Categories

Because many people like to have a point of reference, below I’ve listed Dave Ramsey’s recommended budget guidelines. These are broad categories that can be broken down further if needed:

Remember, your numbers will likely not fall exactly within these guidelines, and that’s okay! Every person has a unique situation with unique needs. These are meant to give you a point of reference– nothing more :)

3. Set Financial Goals

Third, set your financial goals and put them in the budget. This is the major difference between living paycheck to paycheck and a zero dollar budget– your financial goals are being met.

Some financial goals might include:

Invest 15% of take-home pay into tax-advantaged retirement accounts
Have 3-6 months of expenses in an emergency fund (see more below)
Pay off all debt as quickly as possible using the debt snowball method
Save for a down payment on a home
Save for a new (used) car replacement
Kids college fund/school tuition

Keep in mind some of your goals will be a monthly expense (like investing), and some will be sinking funds (like a car replacement fund)– a separate, specific savings account that you carry the balance over from month to month.

Emergency Fund

An emergency fund is your financial security blanket— unexpected, large expenses become an inconvenience rather than a crisis. I find it necessary to stress the importance of having this be a financial goal, if you don’t already have this done.

Aim to set aside 6-12 months of household expenses in a separate savings account that is easily accessible. Household expenses include all necessities (food, utilities, transportation, housing).

4. Prioritize Expenses

The next step is to prioritize your expenses. Necessities should be budgeted for first, followed by irregular/seasonal expenses. Finally, budget for discretionary expenses, or the wants in your budget.

The point is to create a budget from your priorities. Is saving and investing a top priority? Budget for investing before budgeting for recreation, dining out, etc.

5. Zero Based Budget

At this point, it’s time to adjust your numbers until total income less total expenses equals zero. Chances are, the first time you go through the budget it won’t look how you want. That’s ok! Keep adjusting numbers until you get it as close to what you want as possible.

If your budget comes out with a negative balance, you are spending more than you make and you’re going to have to either cut expenses or increase income.

Any extra money left at the end of the worksheet should be allocated to a budget category. Leftover money should not be considered "slush funds."

No matter what, at the end of the worksheet your budget balance should be a big zero!

6. Paycheck Schedule

Creating a paycheck budget schedule will help you break down your monthly budget into smaller, more manageable chunks. A monthly budget works great for those who are paid once per month. However, if you are paid weekly or biweekly, it can be confusing to try to get your pay schedule to line up with your budget.

Step 1: Make a separate column for each paycheck at the top of your budget worksheet. If you are paid bi-weekly, you'll have two columns. If you are paid weekly, you'll have 4-5.
Step 2: Grab a blank calendar and write your bills and paychecks on it. For each expense that has a due date, assign it to a paycheck before that date. For larger expenses (such as rent/mortgage), break it up into multiple paychecks to keep even cash flow. For variable expenses (groceries, restaurants, gas/fuel, etc.), it might be helpful to break these down into weekly amounts.
Step 3: Allocate discretionary/flexible expenses last. Simply plug those into wherever they fit.
Step 4: Budget every single paycheck down to zero. Just like we’re doing with the big-picture monthly budget!
Step 5: Once you are paid, consult your budget for that paycheck. Pay expenses that need to be paid with that paycheck, and earmark the rest of it for other expenses/goals.

Here's an example of a paycheck budget schedule:

7. Track Spending

Finally, your budget is useless if you fail to track your spending throughout the month. the best way to track spending is to set aside time daily or weekly to update your budget for your month-to-date spending. This way, you know exactly how much you have left to spend for each budget category. No guessing!

8. Create a New Budget for Next Month

Resist the temptation to copy + paste your prior months budget the following month. Every month is different. Thus, every month requires a new budget! Once you get the hang of budgeting, you'll find your budget doesn't need as much tweaking month to month. But, this typically doesn't happen until months 3-6. Trust the process!

Can You Create a Zero-Based Budget with Irregular Income?

It is so important to budget especially when you have irregular and unpredictable income. Otherwise, your finances become haphazard.

For irregular income budgeting, follow the steps above, but always budget for necessary expenses first. Then, in months that you have extra income, "catch up" your money goals like saving and investing. Still use your budget sheet as your guide and think over the long-term vs. the short-term.

Example of a Zero-Based Budget

I learn best by seeing and doing rather than simply reading. Therefore, I wanted to include an example of a zero-based budget so you can attach the concept to a picture.

FREE Zero-Based Budget Template

To help you in creating a zero-based budget, utilize one of the free budget templates below!

Best PDF Template

Google Sheets Template / Microsoft Excel Budget Spreadsheet Template

Create your own personal budget spreadsheet compatible with both Google Sheets and Microsoft Excel. This free budget template is the most popular monthly budget template on the blog! !

What is a High-Yield Savings Account?

Sun, 30 Jul 2023 20:39:43 GMT

Where do high-yield savings accounts fit into the financial plan for the productive Christian household? Are these types of savings accounts a wise investment for leaving an inheritance for our children’s children and stewarding the resources allotted to us? What are the potential risks associated with these accounts, if any? How can these accounts be utilized to meet your family finance goals? Are they only for the wealthy with tons of excess cash?

These are the questions I hope to answer, or at the very least, offer information to aid you in discerning whether a high-yield savings account is a wise investment choice for your family.

What is a High-Yield Savings Account?

A high-yield savings account simply refers to a savings account with an above average interest rate.

Considering the average traditional savings account interest rate is less than 0.5%, savers do not have much reward for putting their hard-earned cash in a traditional savings account. However, a high-yield savings account offers a simple solution—a higher rate, flexibility, and safety.

Advantages of High-Yield Savings Accounts

High-yield savings accounts offer many benefits, including:

High(er) interest rates. The most obvious advantage is the higher interest rate, which is typically 10-12x the average savings deposit rate (0.42% average APY according to this source ).
No additional fees (monthly or annual). Many high-yield savings accounts do not have any fees associated with their accounts. They can do this because the majority are completely online, requiring no physical location to operate. Thus, they do not have the overhead associated with a physical location.
Low or no minimum deposit amounts. Many high-yield savings accounts do not require a minimum balance. However, the banks offering the best interest rates typically structure their accounts using a tiered approach. Meaning, to get the highest possible rate, you must maintain a certain balance in the account.
Safety / security. Most banks are high security, but when you are dealing with a bank that is completely online, you wonder about how safe your money is and what measures they take to prevent fraud, identity theft, etc. The bank we use, CIT Bank, immediately called me after my husband had called to check on something, but he was not listed on the account yet. They wanted to make sure I was aware he was trying to get information. While annoying (we thought we had added him to the account), I was glad they had the layer of security in place!
Flexibility. You have access to the money in the account at any time, similar to a traditional savings account.
Simple setup. Most of the time, this type of savings account can be set up in 5-10 minutes online through identity verification steps.
*FDIC insured. Deposits are backed by the FDIC (insured by the government) up to $250,000 per depositor.

*I hesitate to add this as a benefit. At this point, you might be thinking how could this be a potential downside? Stick with me here. The more control the government has over the banking system, the more they can force compliance over it. Banks tout being FDIC insured as a benefit, but should not banks be run like a business and forced to insure themselves? I will not go too far off on a tangent, but I do think this is a valid consideration for Christians.

Disadvantages of High-Yield Savings Accounts

Variable rates. While they do boast higher interest, they are subject to change at any time.
Online only. Most banks that offer high-yield savings accounts do not have a brick-and-mortar location. However, most (if not all) do have online / over the phone customer service reps available. From our experience, we were able to call CIT Bank and get through to a rep after holding for 2-3 minutes. Not bad!
Not local. I prefer to keep my business local when possible, so this is a major disadvantage and something we considered before opening an account with a national bank instead of our local bank.

High-Yield Savings Account vs. the Stock Market

The main things to consider when determining when to put your money in a high-yield account instead of the stock market include time, risk tolerance, and flexibility.

If you plan to leave the money alone for 5+ years, investing in the stock market is typically the better option. On the other hand, if you need access to the funds before then, a high-yield savings account might be the better option.

Additionally, consider your risk tolerance. Many times, this will directly correlate with time. The longer you plan to leave the money alone, the more risk you may be willing to accept.

For example, let us consider an emergency fund.

Time: unpredictable. You never know when you will have a financial emergency.
Risk tolerance: low. Stability is important, you do not want your emergency fund savings to lose 10% one month and gain 5% the next.
Flexibility: very flexible. You need to be able to access the funds on a day or moment’s notice.

Considering these stipulations, the stock market would not be a good fit for your emergency fund. Run through these criteria when considering where the proper place for your money is.

High-Yield Savings Account Ideas

High-yield savings accounts work well for short-term savings goals. Examples include:

Emergency fund. A good rule of thumb is to always keep 6 months (minimum) of household expenses in a separate, easily accessible savings account.
Proceeds from a house sale. Many times, the proceeds from the sale of one home are used soon after the sale for the purchase or building of another. Because high-yield accounts are flexible and funds can be accessed at any time, this makes them a suitable place for large sums of money such as proceeds from the sale of a property.
House savings fund. If you are saving for a home and anticipate it will take less than 5 years to save up, a high-yield account is a top choice for your savings.
New car fund. The age of your current vehicle(s) will determine if a high-yield account is a good option for your savings. If the vehicle(s) will not need replacement for 5+ years, the market might be a better investment.
Christmas savings. Set a savings goal or Christmas and divide the total by 12 months. Starting in January, set aside a twelfth of the amount in a high-yield savings account.
Vacation savings. Ditch the credit card rewards and earn a little extra cash for your next trip!
Car repairs & home repairs fund. Repairs are unpredictable, so I would personally recommend only keeping savings of this nature in a savings account.

Most sinking funds have short-term timelines. Because of this, high-yield savings accounts are a great option for your sinking funds savings. If you are not familiar with sinking funds savings accounts, learn more about them here. Try a fun money saving challenge to help you stay focused and motivated towards your money goals!

How to Utilize High-Yield Savings Accounts as a Christian

High-yield savings accounts are one tool Christians can utilize to turn a profit on the resources allotted to them by the Lord for the purpose of providing for their own household, being generous to others, personal enjoyment, and blessing future generations.

A few criteria to consider when making financial decisions include:

Does the Bible speak to it (directly or indirectly)?
Based on the answer to the first question, is this in violation of any principles or commands outlined in Scripture?
Are any conflicts with Scripture issues of conscience rather than obedience?
Will this help turn a profit on the resources the Lord has given me (to the best of my knowledge)?
Are my motivations and intentions pure?

Many times Christians believe as long as they aren't using their money for immoral purposes they are being wise financial stewards. However, I'd caution that indifference towards money due to lack of knowledge is not wise. Parking money in a savings account earning 0.1% interest is not sinful, but it might not be a wise option considering it could be earning 5% in a high-yield account.

It's important that we seek out knowledge and biblical principles to follow in all facets of life- including our finances.

After all, there is not a single part of our lives that our faith should not touch.

9 Creative Money Challenge Ideas [ + Free Savings Trackers ]

Sat, 15 Jul 2023 11:47:24 GMT

If you're looking for a creative, fun, and inspiring way to reach your money goals, a money saving challenge is the perfect solution! From the penny challenge to the $10k savings challenge, find a unique savings plan that fits in your budget.

Completing a savings challenge will give you some extra cash for breathing room in your budget, help you overcome impulsive spending habits, and put you one step closer to your money goals!

You can start a savings challenge at any time, you don't have to wait until January to hit the reset button. Maybe you have an unexpected expense coming due in the near future, or you're working the debt snowball plan and need some more cash for momentum. A savings challenge is a great way to stay focused and motivated on your goal.

9 Money Saving Challenges for Every Budget

1. 100 Envelope Challenge

The 100 envelope savings challenge offers a simple and creative way to pile up cash over 100 days! Before starting the challenge, decide where you'll keep your funds. You can keep your cash in the envelope, make weekly deposits, or complete the challenge digitally. Ultimately, it depends on your spending habits and what you are comfortable with.

After determining where to keep your cash, follow these steps to complete the 100 envelope challenge:

Grab 100 envelopes and label them 1-100. If completing the challenge digitally, open a separate savings account to deposit your funds into everyday.
Put the envelopes in a bin, basket, or box and shuffle them.
Randomly select an envelope from the basket, or go in order.
Find a way to fill the envelope with cash, either by increasing income or cutting expenses.
Repeat the process for 100 days.
Determine what to do with the $5,050 savings!

100 Envelope Challenge Chart

2. 52 Week Money Challenge

Spin Off: Biweekly Savings Plan

Alternatively, if you have a biweekly pay schedule, you can complete the classic savings challenge in 26 weeks instead! To complete, you will save every other week instead of every week, in order to line up with your pay schedule. To do this, follow this savings pattern:

3. $1,000 in 30 Days Challenge

4. $10k Savings Challenge

5. Penny Challenge

6. 30-Day Dollar Savings Challenge

7. $5k Bi Weekly Savings Challenge

8. No Spend Challenge

Food (groceries)
Transportation (gas/fuel, parking passes, insurances, etc.)
Housing (mortgage, taxes, insurance, HOA fees, etc.)
Utilities (electric, gas, sewer, water, trash, internet, etc.)
Childcare (as required for work)
Medical care

Obviously, more items will be on the necessity list for some people. The goal isn't to see how many items you can do mental gymnastics to move them from the non-necessity category to the necessity category. The goal is to challenge yourself and change poor spending habits! You know better than anyone what areas you struggle with impulsive or unorganized spending- don't cheat yourself.

9. Trim Your Salary 1% Challenge

Just as it sounds, to complete this challenge, determine what 1% of your annual income is, and set a goal to save that amount! The idea is to give yourself a 1% raise without making extreme budget cuts. Instead, break it down into smaller chunks by month.

For example, if you make $60k per year, 1% of your annual income would be $600. To save $600 in one year, you need to save $50 per month. Brainstorm and make a list of one or a few expenses you can cut each month of the year to save $50. Maybe one month you don't buy any new clothes. The next month, go out to eat two times instead of three. You get the idea!

You can cut the same expense every month, or you can change it up and cut/trim a different expense each month. Whatever works best for your personality and situation!

Tips for Success with Savings Challenges

Saving money doesn't have to be complicated. Some of my favorite ways to save money quickly include:

Create a monthly budget. If you're not budgeting your finances every month, the first time you create a monthly budget it will feel like you got a raise! This is one of the simplest, quickest ways to find money to spare.
Curb impulsive spending habits with cash envelopes. Studies show when we use cash to shop, we spend less than when we use debit or credit cards, because our willingness to pay goes down.
Use a visual motivator. Keep a visual motivator like the savings challenge printable templates to help you stay focused on your goal. Fill in the shapes as you go so you're reminded of your progress.
Cancel subscriptions. One of the quickest ways to save money is to evaluate all your monthly subscriptions and cancel any that you don't use or that aren't worth the return on investment. In our digital age it's easy to let these expenses slip under the radar without realizing how much you're spending on them every month! Automatic renewals, apple pay, and other conveniences come with a price, they are designed for a passive consumer.
Shop your pantry. Instead of making your meal plan and grocery list from scratch, start with what you already have on hand and focus on using it first. This reduces food waste and drastically reduces grocery spending on a monthly basis.

How to Make a Budget in Excel + Free Template

Fri, 07 Apr 2023 19:13:23 GMT

Creating an excel budget not only saves you time, but it gives you flexibility to open and see your budget no matter where you are! Excel is an extremely handy tool, but it can be intimidating. Don't give up just yet- I'm going to walk you through how to make a budget in excel step by step.

You don't need to be good with numbers OR technology. Budgeting is for everyone- and I truly believe if you stick with the process, you will end up loving budgeting in excel. Once I started, I never went back!

I keep our personal monthly budget in google sheets, and you can get the exact template I use here .

Why a Budget is Important

Budgeting is a crucial part of financial planning, giving you control over your money instead of your money controlling you. While it sounds restricting, it's the exact opposite-- it gives you freedom to spend your money without guilt knowing you have a plan for every dollar.

If you've found yourself guessing how much money you have left to spend until the next paycheck, or you're using a credit card to fill the gap between income and expenses everything month, it's time for a budget!

A budget allows you to align your priorities with your finances. Many times, the level of our frustration with our money is the difference between what we want our money to do and what it's actually doing. Budgeting will help you bridge the gap between the two!

How to Make a Budget in Excel (Step by Step)

1. Get the Free Excel/Google Sheets Budget Template

First, get the download link to my free excel/google sheets budget template by signing up above, or clicking this link. Either way you will be able to download the free spreadsheet.

Next, we're going to get down to business and start customizing the template to fit your needs!

2. Fill in your income.

First, list your total expected take-home pay for the month you are budgeting for. This is relatively straightforward-- simply write your total household income at the top of your spreadsheet/worksheet.

If your pay is irregular-- like if you're a business owner with unpredictable income-- budget based on your lowest expected take-home amount. The key with irregular/unpredictable income is to be conservative with your estimate!

3. List all your fixed monthly expenses.

Fixed expenses are expenses that don't change month to month, typically your bills. You know exactly how much they will be and when they are due. Examples include:

Mortgage/rent
Insurance
Internet
Phone
Cable/TV subscription
Car payments
Student loan payments

Total your fixed expenses and subtract from your expected income. This is what you have left to budget with for your remaining expenses.

4. List all your variable monthly expenses.

Variable expenses are expenses that do change month to month, based on usage or another metric. List all your variable expenses on your budget worksheet and determine a max spending amount for each. You might need to review bank statements to help you get an idea of what you've been spending on each category. Don't guess! You want an accurate picture of your expenses.

Examples of variable expenses include:

Groceries
Gas/fuel
Restaurants
Recreation
Personal
Beauty
Toiletries
Household
Babysitters
Daycare
Clothing

Most variable expenses are also considered discretionary, meaning they are wants rather than needs and therefore very flexible. You might want to note which expenses in your budget are discretionary so you can come back to them later and adjust if necessary.

5. Brainstorm and budget for non-monthly expenses using sinking funds.

You know those annoying expenses that you completely forgot about that come up at the worst possible time? Like your car needs new tires, then your annual insurance premium you forgot about is due, and your kids have sports fees due next week? When you're unprepared, everything seems to be happening to you. However, when you're prepared and unexpected expenses come up, it's just an inconvenience.

There is a way to plan for both expected and unexpected irregular (non-monthly) expenses. A sinking fund savings account is a strategic way to set aside money for future expenses by converting the expense to a monthly amount.

Here's how to set one up ( follow along on Pinterest )

6. Put finance goals in the budget.

Saving and investing goals need to be a line item in your monthly budget. If you don't put them in the budget, they won't happen. If you bank on just using whatever you have left at the end of the month for saving and investing, you'll soon find there is never anything left over! Make it part of the plan. Automate it. This is an essential self-discipline to have with your finances if you want to build wealth.

7. Tweak and budget down to zero.

Give every single dollar a purpose on paper before the month begins. Don't leave any 'slush' funds. Purpose, purpose, purpose. Every single dollar has a purpose.

8. Establish a bill pay schedule.

List all your monthly bills, the total amount, and due date on a blank calendar. Then, fill in all your paychecks on the date you expect to receive them. Highlight each paycheck a different color.

9. Assign each expense to one or multiple paychecks.

Take your budget a step further and allocate each expense to one or multiple paychecks. The paycheck budget method works great for anyone who is paid more than once a month. It helps take the big picture and break it down into smaller, more manageable chunks. If you're paid more than once a month, your expenses can't all come out of a single paycheck. You have to utilize a bill pay schedule to ensure you aren't spending money before you are paid.

Step 1: Make a separate column for each paycheck at the top of your budget worksheet. If you are paid bi-weekly, you'll have two columns. If you are paid weekly, you'll have 4-5.
Step 2: Refer to your calendar with your bills and paychecks on it. For each expense that has as due date, assign it to a paycheck before that date. For larger expenses (such as rent/mortgage), break it up into multiple paychecks to keep even cash flow. For variable expenses (groceries, restaurants, gas/fuel, etc.), it might be helpful to break these down into weekly amounts.
Step 3: Allocate discretionary/flexible expenses last. Simply plug those into wherever they fit.
Step 4: Budget every single paycheck down to zero.
Step 5: Once you are paid, consult your budget for that paycheck. Pay expenses that need to be paid with that paycheck, and earmark the rest of it for other expenses/goals.
Step 6: Update your budget for every single transaction, so you know exactly how much you have left for each budget category. It might be helpful to do this on a daily or weekly basis.
Step 7: Keep a reconciliation of your budget balance to your bank account balance. This is especially important if you aren't using a budgeting software that automatically pulls in your transactions. When I was using the free version of the EveryDollar app, I kept a spreadsheet to reconcile my bank balance to my budget balance to ensure I didn't miss transactions.

For a more thorough explanation of this method, read my step by step tutorial of the paycheck budget method .

10. Track and adjust as you go!

Track your spending regularly. If you make a budget and don't look at it until half-way through the month or when the month is over, it's useless. A plan is only good if you execute it. Part of execution is daily or weekly tracking of your spending- and I mean tracking every single transaction. I recommend using an app to help you do this. The EveryDollar app has a intuitive, easy-to-use free version that works great for this!

Budgeting Pitfalls and Tips for Success

Many people quit budgeting because they become frustrated that it doesn't seem to be working as they hoped. However, usually all it takes is a few adjustments to get the budget in working order and have success. Below are the most common budgeting pitfalls I see. Be aware of them so you can assess whether you need to make some changes to the budget!

Not having a clear picture of expenses. Review bank statements in detail as you're putting your budget together. You want a really clear picture of what it actually takes to run your household every month. Write down every single expense and categorize it. Don't leave any expense unaccounted for!
Forgetting to budget for non-monthly expenses (both expected and unexpected) . If there is one thing that's certain with budgeting, it's that you'll have expenses every single month that are unexpected. So are they really unexpected? For example, you can safely assume that at some point your home and car will need repairs, you just don't know exactly when. Instead of waiting for the expense to hit and bracing for impact, make a budget category for car repairs and put aside money for it every month, carrying the balance over month to month. This way, you don't have to attempt to cash flow the expense in a single month. If it's a really large expense, you'll probably end up using your emergency fund (see next pitfall).
No emergency fund in place. Like budgeting, a healthy emergency fund of 3-6 months of household expenses is essential. If you have a large, unexpected expense, your emergency fund will turn a financial crisis into an inconvenience. Be sure to get this funded as quickly as possible- put it in the budget!
Not updating the budget throughout the month. Successful budgeting requires you to be proactive in the budgeting process throughout the month. If you make a budget and don't look at it again until the end of the month, you'll be frustrated! Update your budget at least weekly for actual spending. This way, you know exactly how much you have left for each budget category until the end of the month.
Being unrealistic. When people first start budgeting, they are often tempted to drastically cut their spending. As a result, they wind up frustrated when they are constantly over budget. If you're spending $800-$1,000 on groceries every month and you try to cut it to $350 in one month, you'll end up frustrated. Don't set yourself up for failure by being unrealistic.
Spouses not being on the same page. If you're married, its important to be on the same page with your spouse. The budget won't work without them on board. You need to have a shared vision, goals, and mission. You can't budget alone and hope for the best.
Impulsive spending struggles.

Whether you're a saver by nature or a spender, budgeting is for you! Don't think because you fall into either camp that you don't need a budget. It's essential to a healthy financial situation.

How Much to Spend on Housing

Mon, 13 Mar 2023 20:19:05 GMT

Are you asking yourself how much is too much to spend on housing? I don't blame you! The crazy real estate market of the past few years has left many buyers wondering if they'll ever be able to afford a house. Or at least one that's livable!

The current market can leave you feeling overwhelmed and discouraged. As a result, you might be tempted to live beyond your means and buy a home above your budget. However, you want your home to be a blessing, not a source of stress! A mortgage that takes up a large percent of your monthly income is stressful and doesn't leave much room to reach other finance goals.

So how do you determine how much to spend on housing? It's simple, all you need is a good picture of your financial situation.

How Much to Spend on Housing

1. Total your monthly take-home pay.

First, total up your monthly take-home pay (after-tax pay) from all sources. If you're married, this should be your combined income.

2. Calculate 25% of this number.

A good rule of thumb is to spend no more than 25% of your monthly take-home pay on a fixed-rate, 15-year mortgage. Spending more than a fourth of your monthly pay on housing runs the risk of being house poor.

The 25% limit includes:

Principal & interest
Property taxes
Homeowners insurance
HOA fees
Private mortgage insurance (PMI)

Don't rely on your mortgage loan officer to tell you what you can afford. When you get pre-approved for a mortgage loan, they will use their own criteria to determine the max amount they will lend you. Some banks will base their calculation on 40% of your gross income. Yikes! That doesn't leave much leftover for necessities, saving, or investing.

You should be in the drivers seat when determining how much house you can afford. This requires an understanding of your monthly income and expenditures (more on this in step 4).

3. Determine max purchase price budget.

Once you determine the max monthly mortgage payment you can afford, use this number to find your max purchase price. Ramsey Solutions has a handy online mortgage calculator to plug your numbers into and run some hypotheticals.

Keep in mind your max purchase price will be affected by how much you are able to put down, interest rates, mortgage term, etc.

When Should You Buy a House

You're ready to buy a home when you determine that you are financially ready.

Not when someone else says you are. Not because you got married a few months ago, not because your in-laws say you're wasting money on rent, not because interest rates are low, not because you feel like you have to buy a home before the market goes up again.

While the reasons listed above are good considerations , that's all they are- things to consider when deciding when the right time is to buy a home. They should not be the determining factor of whether you buy a home or not.

The truth is even if interest rates are low and the market is down, if you aren't in a good financial position to buy a home, the home will not be a blessing. Consider the following to determine whether you're ready to buy a home or not:

You have an emergency fund. A good rule of thumb is to have 3-6 months of household expenses saved.
You have saved at least 10% for a down-payment. While 20% is better, saving 10% will give you a good start!
You're debt-free. When your income is tied up in monthly payments, it's hard to build wealth and reach your financial goals!
Your spouse is in agreement. If married, being on the same page as your spouse is critical. If you aren't, don't move forward.
You can cash-flow closing costs and moving expenses. Don't roll these into your loan and pay interest on them or put them on a credit card. The only debt you want to have outstanding is your mortgage.
You're living on a monthly budget. Without a budget, you have no gauge of what you're spending every month, and therefore no way to tell if you can even afford the mortgage payment you're undertaking.

Once you have checked all the above off, you're ready to move forward with purchasing a home!

How to Save for a House

Saving for a home can be overwhelming when you look at how much it actually takes to put 20% (or even 10%!) of the purchase price down. Add in the crazy real estate market and skyrocketing home prices and you it can start to feel impossible! Tiny house, anyone? Kidding! Kind of ;)

Yes, purchasing a home is expensive and if you don't have a plan, you'll end up feeling stuck! Remember, there's always a way. It might take you longer than someone else, but with a plan you can accomplish anything!

Here are some ways to save money for a down payment:

Set a clear savings goal. Once you determine how much you can afford (based on the 25% of your income rule), aim to save 10-20% of your max purchase price budget.
Temporarily cut costs. There are so many ways to cut costs, but a few include: cancel subscriptions, complete a money saving challenge or no spend challenge, unsubscribe from emails that trigger impulsive spending, use cash envelopes, delete shopping apps from your phone, etc.
Increase income if possible. Pick up extra shifts at work, get a part-time job on the weekends, deliver pizza, house-sit, pet-sit, babysit, sell stuff, start a low-cost side hustle, etc.
Be patient. Don't let the red hot market cause you to make irrational decisions! It's really easy to get caught up in your emotions when you feel like it's now or never. Remember that decisions made in haste based on emotions usually cause regret.

FAQ's

Why 20%?

You might be wondering why having a 20% down payment is ideal. After all, it's not required and it seems like money you could put to better use... like decorating your new space!

Here's why putting 20% + down is ideal:

Avoid PMI. If you put down less than 20% of the purchase price of the home, you'll have an added fee to your monthly mortgage payment. This fee is called Private Mortgage Insurance (PMI), which is a form of insurance that protects your lender from the risk that you'll default on your mortgage. PMI is a separate monthly fee and does not reduce the balance of your mortgage.
Lower interest rate. Typically, the more you put down, the lower your interest rate. This is because the risk of default is lower- they are getting more of their money up-front, and thus don't bear as much risk.
Smaller monthly payments. The more you put down, the less you have to finance. Consequently, the lower your monthly payment.
Less interest. A portion of your monthly mortgage payment goes to interest (the interest portion of the payment should decrease over time as your balance lowers). If you have to finance less, the less interest you'll pay. This is a good thing, because interest does not reduce the balance of your loan. It's essentially your "fee" for borrowing money.

According to the National Association of Realtors , in 2021 the median percent down payment was 12%, and just 6% for the age group 22-30. This means buyers are financing on average 88% of the purchase price. Yikes!

Example

Let's compare two down payment scenarios. You are looking to buy a $300,000 home and put it on a 15-year, fixed-rate mortgage at 5.5% (we'll assume the interest rate doesn't change based on down payment amount even though it would).

20% down: If you put 20% ($60,000) down on the $300,000 mortgage, you would pay approximately $113,000 in interest over the life of the loan.

10% down: If you put 10% ($30,000) down on the $300,000 mortgage, you would pay approximately $127,000 in interest.

By putting down 10% instead of 20%, it adds $14,000 of straight interest to your loan (not including the additional $30,000 principal).

What are the differences in types of mortgages?

Buying a home can already be overwhelming, but add in trying to understand the different types of mortgages you can be enough to push you over the edge! Don't fall off just yet. Here's the basics of the most common types of home mortgages:

Adjustable Rate (ARM) - this type of mortgage sounds attractive because it boasts an initially low-rate loan. However, after a defined period the rate fluctuates with the market , exposing the homeowner to significant risk.
Federal Housing Administration (FHA) - this type of loan is designed for first time home buyers to make buying a home easier. These require as little as 3.5% down and are backed by the government. This type of loan now requires you to pay PMI over the life of the loan!
Conventional Fixed Rate - A conventional fixed-rate loan locks you into an interest rate so you aren't subject to fluctuations. Your mortgage payment is the same every single month, no matter what current interest rates are at.

Personally, I believe a conventional fixed-rate loan is your best bet. While putting less down seems tempting, and a lower * initial * rate sounds good, you will likely end up paying more over the life of the loan. If it sounds too good to be true, it probably is!

Should I keep throwing away money on rent?

I know you'll hate this answer... it depends. Right now, it seems like it's hard to find an area where renting is actually cheaper than buying! Many times, it's only slightly cheaper than buying.

In the past, rent has typically been way less expensive than a mortgage payment. However, according to recent statistics, the current asking rent is only 12.95% lower than the average mortgage payment nationwide. Keep in mind depending on the area, it could be much lower or higher than the average.

The price of owning a home is less straightforward than renting. You have your mortgage, but you also have to factor in real estate taxes, homeowners insurance, utilities, PMI (if applicable), home repairs and maintenance, etc. Being a renter carries the benefit of not having to stress when the water heater breaks or the air conditioning needs replacing. Additionally, with renting, you're paying for flexibility. If you decide you want to move, you don't have to try and sell a house and worry about market conditions or interest rates. You can simply move!

If you get into a mortgage before you're financially ready, it will be a burden rather than a blessing!

What is a Back Door Roth and Who Needs It

Tue, 07 Mar 2023 02:28:02 GMT

If you want to take advantage of the many benefits of a Roth IRA but make to much to do so, the backdoor Roth IRA conversion offers a workaround.

Roth IRA' s boast many benefits, including tax-free growth on your investments and tax-free withdrawals in retirement. Consequently, the Roth IRA is an attractive investment vehicle for those who want to mitigate their tax burden. Additionally, unlike a Traditional IRA, the Roth IRA does not have an RMD requirement or penalty for early withdrawals.

However, the IRS imposes income limits on who can contribute to a Roth IRA. Because of this, the backdoor Roth is a great option for those who would like to take advantage of Roth benefits, but don't qualify to contribute to one.

What is a Backdoor Roth?

High-income earners are barred by the IRS from contributing directly to a Roth IRA. However, the backdoor Roth is a specific strategy that is used to convert Traditional IRA contributions to Roth IRA contributions by putting money into a Traditional IRA post-tax, then immediately converting the account to a Roth IRA.

Who Needs a Backdoor Roth?

Whether or not you need a backdoor Roth is related directly to your modified adjusted gross income (MAGI) in the year the contributions are made. The table below outlines these income restrictions.

If your modified adjusted gross income (AGI) exceeds the amounts defined in the table above, you may be able to contribute a reduced amount until you reach the phase-out income. Once your income exceeds the phase out level, you may not contribute anything to a Roth IRA.

How to Complete a Backdoor Roth Conversion

In short, to complete a backdoor Roth conversion you must first fund a Traditional IRA, then rollover the funds to a Roth IRA and likely pay taxes on the conversion. Or, you can make nondeductible contributions to a Traditional IRA and rollover the funds to a Roth IRA without paying taxes upon conversion since you put the money into the Traditional IRA after-tax.

Here's how to do it step by step:

Open a Traditional IRA. If you don't already have one, consult a financial advisor. On the other hand, if you do have a Traditional IRA with funds in it already, you can convert the funds held in it to a Roth. However, keep in mind you'll have to pay taxes upon conversion of these funds, since you likely put the funds in the account pre-tax.
Fund the IRA with non-deductible contributions. This means you put money into the IRA after-tax, and you do not seek any tax deductions for contributions in the year contributed. While typically a Traditional IRA is funded with before-tax dollars, making after-tax contributions to it will save you the extra step at the end of the year of paying taxes upon converting to the Roth.
Communicate with IRA company, financial advisor, and/or HR department of your intent to make a conversion. Y our IRA administrator or brokerage firm should give you instructions and paperwork to authorize the conversion.
Make the conversion and pay any required taxes. If you fund your Traditional IRA with non-deductible contributions (after-tax contributions) and immediately convert it to a Roth, you shouldn't owe any taxes. On the other hand, if you are converting an existing Traditional IRA with deductible contributions in it, you'll owe taxes upon conversion.

A word of caution: if you are rolling over an existing Traditional IRA or 401(k) with pre-tax dollars in it, calculate the taxes you'll owe before making the conversion. You could end up with a hefty tax bill depending on how much you have in the account. Also keep in mind that ALL employer matching contributions are considered pre-tax, and therefore will always be taxed upon a rollover Roth conversion.

Rolling Over Funds vs Converting Funds

Maybe you're wondering why I keep using two different terms: rollover and conversion. Both refer to the transfer of funds from one retirement account to another, but the methods of transfer are different.

Specifically for a Traditional IRA or 401(k) to Roth transfer, a rollover refers to taking pre-tax Traditional funds from an existing Traditional IRA or 401(k) account and rolling them into a Roth IRA.

A Traditional to Roth conversion typically refers to moving after-tax Traditional funds from a Traditional IRA you recently set up, and immediately converting the Traditional account to a Roth account.

Got it? ;) Confusing, I know. Don't fret, a financial advisor can help you with this.

Roth IRA Benefits

Roth IRA's boast some major advantages over a Traditional IRA, the biggest being how and when the money in a Roth is taxed. Simply put, a Roth IRA allows you to grow your investment tax-free and enjoy tax-free withdrawals in retirement!

Below are notable perks of a Roth IRA or 401(k):

Withdrawals in retirement are tax-free
Earnings on contributions grow tax-free
No required minimum distributions at a certain age, unlike the traditional IRA
You can contribute to your Roth IRA past normal retirement age (subject to income limitations)
If applicable, beneficiaries that inherit your account will also receive money tax-free

For the majority of people a Roth IRA is preferred over a traditional IRA, especially if you expect your income to increase over time. It's always a good idea to consult your financial advisor and determine what's best for your unique situation.

Backdoor Roth Planning Considerations

While a backdoor Roth can be beneficial in many situations, here are a few things to consider before taking action:

A backdoor Roth conversion can trigger a significant tax burden if you are rolling over an old account. If you will have to take a distribution of your retirement funds to cover the taxes, you might want to reconsider.
The five-year rule: Roth IRA accounts need to be open a minimum of five years to make tax-free withdrawals without penalty. If you will need the funds sooner, you might want to keep the money where its at.
Tax ramifications in year of conversion could push you into a higher tax bracket. Not only will you have to pay the taxes on the money you convert, but depending on how much you withdraw, you could push yourself into a higher tax bracket. You want to avoid this if possible. Consult with your tax profession to determine the best course of action.

I can't stress this enough- consult with your tax professional and financial advisor when making investment decisions that have tax implications. You want to ensure that the benefits outweigh the costs before taking action!

Helpful related posts:

7 Short-Term Finance Goals

Thu, 02 Mar 2023 22:28:39 GMT

Short-term financial goals are milestones you want to reach with your money within the next year. These are often micro-goals that are key stepping stones to reaching your larger, macro-goals, also known as long-term goals.

Sometimes our long-term goals can seem overwhelming and impossible. This is why short-term goals are so great! They break down your larger goals into smaller, more manageable (and seemingly do-able) chunks.

These short-term goals can include many different things, such as saving for a home, paying off debt, saving up for a car replacement, or paying cash for your kids college. Financial goals will look different for everyone, but everyone should have them!

Here are some ideas of what your short-term financial goals could look like.

7 Short-Term Finance Goal Ideas / Examples

1. Build an emergency fund.

If you were to have an unexpected financial expense over $1,000, would you be able to cash flow it without wincing? If you wouldn't be able to, imagine if you could! That would feel amazing, right? That's exactly what an emergency fund is for.

An emergency fund turns a financial crisis into an inconvenience.

A good rule of thumb is to set aside 3-6 months of household expenses for emergencies. In the past, I would've recommended closer to 3 months in order to get the best return on your money. However, after 2020, I've changed my mind and would say keep closer to 6 months.

I'm tempted to keep 12 months of household expenses in savings. If you are too, there's nothing wrong with that. The point is to have a comfortable amount in savings to safeguard against large, unexpected expenses!

2. Invest for retirement.

Investing is crucial to building wealth. Often times, people are tempted to push investing down the road until they 'just have a little more money.' The problem with this mindset is that there will never be enough. Have you ever thought to yourself, 'I'd be so much happier if I just had a little bit more money'? Similarly, we can be fooled into thinking we'd FINALLY be able to invest if we had a little bit more.

Don't be fooled. Start with what you have right now, even if it's just $50-$100 per month! Start building the habit of investing first thing when you are paid. As your income increase or you cut expenses, it'll be easier to invest more since you're already in the habit.

Aim to invest at least 15% of your gross income into tax-advantaged retirement accounts, like a Roth or Traditional IRA or 401(k).

If this seems impossible right now, read how to invest when it feels like you have no money.

3. Beat impulsive spending habits.

If you struggle with impulsive spending, you're human. Even the most diligent of savers can struggle with impulsive spending at times. In fact, according to a recent study by Slickdeals, Americans spend on average $314 on impulse purchases every month!

To put this in perspective, if you were to invest $314 every month for 40 years with a 10% average rate of return, you'd have over $1.8 million. Ouch! That ought to make you think twice next time you want to click add to cart ;)

Here are some ways you can curb your impulsive spending habits :

Don't shop on your phone from bed. We tend to make irrational decisions when we're tired. Keep your phone out of reach!
Forget card information online. Force yourself to punch in your card information every time. Inconvenience yourself!
Unsubscribe from store emails that trigger impulsive buys. Daily emails broadcasting sales from your favorite stores aren't helping your impulse spending behaviors. Consider unsubscribing, at least temporarily.
Use cash envelopes for budget categories you struggle with. Studies have shown that we not only spend more, but are willing to pay more with a credit or debt card vs. cash. For things like groceries, personal spending, etc. take out your monthly spending limit in cash!
Get an accountability partner. Whether your spouse, family member, or close friend, find someone you can trust to check in!
Implement the 24-hour rule. Wait 24 hours before making any major purchases. Sleeping on it is always a good idea!
Put it in the budget. Have a budget category for personal spending. This way, you can make impulsive purchases (as long as they are within budget) without guilt!

Impulsive spending is buying anything that you didn't plan on buying. A major key to curbing your impulse spending is simply planning, using a monthly budget. This way, you don't have to have guilt because you have a plan!

4. Get on a monthly household budget.

A monthly budget can sound intimidating and restricting, but really, it gives you permission to spend your money without guilt! The best part of budgeting is that since you've planned how you'll spend on paper before the month begins, you don't have guilt associated with spending.

Spending guilt comes when we don't have a good handle on our finances and everything is haphazard.

When you don't live on a budget, you never really know if you can afford whatever you're purchasing. You get paid, so you spend until you start to feel crunched... then try to stretch until the next paycheck.

That's no way to live. Once you're on a budget, you can tell your money where to go, instead of wondering where it all went!

My free google sheets budget template is an extremely popular budgeting worksheet - it includes built-in formulas, color coding, and you can access it anywhere!

5. Increase your savings rate.

Saving money is a requirement for nearly every finance goal. Want to buy a home? A new car? Pay for your kids college? Invest for retirement? These all require margin in your finances to save. Make it a short-term goal to save more - but be specific about what exactly your goal is. How much do you want to save? By when? How much do you need to save per week, month, or quarter to reach your goal?

6. Save up for your first home or start paying extra on your mortgage.

Buying a home is a great way to start building equity and wealth, but you want your home to be a blessing! Don't be in a hurry, rather wait until you can save up at least 10% for a down payment. Even better, try to save 20% and avoid premium mortgage insurance (PMI), an annoying fee added to your mortgage for failing to have 20% to put down!

7. Get out of debt.

It's hard to build wealth or gain any financial traction when your income is tied up in monthly payments. To pay off debt quickly, consider using the debt snowball method by Dave Ramsey. We paid off over $20k of student loan debt in 12 months living on one income by following the debt snowball plan!

Debt doesn't have to be a way of life. Getting out of debt frees up income to save, invest, and put towards other financial goals! If you have consumer debt, don't wait and let it hang around. Make a plan to kick it to the curb.

Tips for Setting Short-Term Financial Goals

1. Consider Your Financial Stress Points

What are the biggest stress points for you financially? Do you have mounting credit card debt that you're worried about? Is your kids college fund looking scarce with only a few years until they graduate? Is your job unstable, so having a little more breathing room in the emergency fund would give you more peace?

Financial stressors are going to be different for everyone, but it's important to identify them so you can use them as a starting point for setting your short-term financial goals. It's equally as important to learn how to manage your financial anxiety. Sometimes no matter how much money you have in the bank, you still feel anxious. Unfounded fears can wreak havoc on your life, so focus on what you can control.

2. Create a Visual Progress Tracker

I love a good visual to help with focus and motivation. Make savings trackers for goals like saving for a down payment on a home, a new car, or a baby fund! Likewise, you can create a debt payoff tracker and fill it in as you pay off your debts. Visual reminders of our progress give us momentum and the motivation to keep going, no matter how far out of reach our goals feel.

3. Write them Down

Studies show that writing goals down increases the likelihood of achieving them. Write your goals down, and keep them somewhere you 'll see them often. Reviewing your goals when you begin to lose focus will help you get back on track!

4. Put them in the Budget

Include your goals in your budget. To do this, simply convert them to monthly amounts. If your goal is to invest $12,000 this year, put a line item labeled "investing" in your budget for $1,000. You can take this a step further and set up an automatic transfer from your bank account to your IRA every month. Automating good decisions is always a good thing, and it adds another layer of self-discipline to your finances.

5. Be Realistic

Challenge yourself, but be realistic. If you have been spending $1,000 / month on groceries and your goal is to cut grocery spending to $200 in one month, that's unrealistic. You're setting yourself up for failure before you even start. Slow, steady progress is the key to lasting change.

What Does Financial Freedom Look Like & How to Get There

Sat, 14 Jan 2023 18:17:42 GMT

Have you ever had to make a decision, but only one choice (the worst choice) was a realistic option due to some limitation? It feels like you're being trapped, because you have no options. There are other options, but you can't choose them.

This can look like an unexpected medical bill for $500 showing up in the mail causing an uneasy feeling in your stomach knowing you can barely make it to payday as is. You know it has to go on the credit card, and you also know you won't be able to pay the credit card any time soon.

But what if in those situations you didn't have to think twice about it? What if you have the money set aside and a looming crisis turns into an inconvenience?

Financial Freedom

Financial freedom is having options because of the way you've prepared through saving, paying off debt, budgeting, and investing.

How to Get Financial Freedom

Get Out of Debt

Building wealth proves to be difficult when your income is tied up in monthly payments. A $500 car payment here, a $200 student loan payment there. Not only do you have monthly payments on assets that are going down in value, you are paying interest on them. What if you invested the money instead? If you invest $700 every month for 40 years, averaging a 10% rate of return, you'll have over $4 million at retirement. Have you every stopped to think about it that way? Or have monthly payments become a way of life and you feel trapped in the cycle?

If you haven't added up the total balance of all your consumer debt, it's time to do so. You CAN get out of debt. It's harder to get out of debt than it is to get into it, but doing hard things always results in payoff.

Watch my Pin below for an illustration of how to get out of debt using Dave Ramsey's debt snowball method. We paid off over $20k of student loan debt in 12 months while living on one income using this method.

The debt snowball method uses the momentum theorem as it's basis. While it doesn't seem to make sense mathematically to pay off your debt from smallest to largest (because you are not considering in interest rates), it works psychologically! Getting a small win will help you believe that you can do this, and keep you focused and motivated on your journey to becoming debt free.

Invest 15% for Retirement

Investing is foundational to building wealth and becoming financially free. Those who are financially literate understand the opportunity cost of putting off saving for retirement. If you're young, time is on your side. If you're not, you'll just have to work a little harder to make up for lost time! Investing success is based on the principle of compound interest. Simply put, compound interest is i nterest earned on interest. Over time, this leads to exponential growth.

Investing tips:

Take inventory, calculate what you have now and what you need to retire.
Start investing at minimum 15% of your gross income (not counting any employer match).
Always invest in your 401(k) plan at least up to the ER match.
Don't invest in anything you don't understand.
Hire a professional.

Build a Strong Emergency Fund

We fear what we don't know, especially when it comes to our finances. If you don't have the cash to take care of an unexpected major expense, you'll live in constant fear of it occurring. Not to mention the stress that comes with knowing you're one unexpected expense away from going further into debt!

Rainy-day funds are essential because it's not a matter of if you'll have an unexpected financial emergency, but when . A fully funded emergency fund turns an unexpected major expense into an inconvenience rather than a crisis .

Keep your emergency fund in a separate bank account, and use it only for emergencies. A new couch or TV is not an emergency!

Live on a Monthly Budget

Without a monthly budget, your finances will be haphazard and it will be hard to make progress towards your goals. Even if you have a large income, steering the ship in no real direction will eventually lead to crisis. The problem with no plan is that it only works when things are going really good. The second you experience any financial struggle, it will be difficult to climb out. A good plan works in the good times and the bad times!

To create a monthly budget follow these simple steps:

Write down your expected monthly income for the month you're budgeting for. This includes hourly pay, salary, commission, gifts, etc. If you have irregular/unpredictable income, use your lowest estimate.
List your fixed monthly expenses. These are expenses that don't change month to month and are absolutely due (rent/mortgage, utilities, etc).
Write down non-monthly (seasonal/irregular) expenses and convert to monthly amounts. Budgeting for non-monthly expenses allows you to save up for them over time instead of trying to cash flow them in a single month.
Set financial goals and put them in the budget. This includes saving and investing goals. They should be a line item in your monthly budget!
Write down and budget for discretionary expenses. These are expenses you have every month, but are not necessities.
Subtract expenses from income. The goal is to budget every single dollar down to zero. Adjust/tweak your budget until you get there!
Track your spending! It might be helpful to us an app to help with this! Decide how often you'll track your expenses. I recommend at least weekly!

A monthly budget is your roadmap to financial success. Budgeting gives every dollar of your income a purpose, on paper, before the month begins. You're taking control of your personal finances, instead of letting your finances control you!

Live Below Your Means

The gap between your income and expenses every month is your breathing room. If there is no gap, you'll likely feel stressed and overwhelmed all the time because you're one paycheck or major expense away from a financial crisis. Assess where you're currently at financially - take inventory. Doing a monthly budget is most of the leg work to figure out where you are, but it's not the entire picture. What's your total household debt in relation to your income? Is there a single expense that's suffocating your budget? Figure out how you can effectively increase the gap between your income and expenses.

Avoid Being House Poor

If your mortgage payment is more than 25% of your net take-home pay, you might be house poor. Given the recent major surge in interest rates and housing prices, Americans are now spending on average 31% of their income on housing. That doesn't leave room for much else, especially after the rising food prices! The average grocery bill for a family of 4 is now $887 per month! To make up the difference, you have two options - cut costs or increase income.

Pay Cash for Large Purchases

Instead of going into debt for large expenses, save up for them on a monthly basis using sinking funds. A sinking fund is not that different from a savings account, the main difference being sinking funds are very specific. When you establish a sinking fund, you are creating a budget category whose balance will be carried over from month to month.

There are countless expenses you can save up for, but some sinking funds category ideas to get you started include:

Car repairs
Home repairs
Gifts (weddings, anniversaries, birthdays ,etc)
Furniture & appliances
Vacation
Insurance dues
Maternity leave

Those are just a few- you can tailor this list to your needs.

To set up your sinking funds, you will take total cost / amount of months left until expense needs to be funded. Click here for an in-depth tutorial on setting up your sinking funds in your monthly budget.

Delay Gratification

Creating habits that are conducive to wealth building and becoming financially free require delaying gratification. When you live on a budget, you can only spend what's in the budget. Once you decide to get out of debt and never go in again, you will be limited. You don't have the option of putting something on the credit card and worrying about it later. However, you will reap what you sow in due time. Don't make rash short-term decisions with long-term consequences. Carefully consider the cost of every choice you make today.

100 Envelope Challenge to Save Money Quickly

Thu, 05 Jan 2023 20:39:44 GMT

The 100 envelope savings challenge is a daily money saving challenge that helps you develop positive money management habits while saving over $5,000!

While completing money saving challenges won't make you wealthy, a savings challenge can help you develop positive money management skills and overcome impulsive spending habits. Additionally, completing a savings challenge is a great way to save up for a large, future expense little by little.

If you look at what you need to save, it can seem like an impossible feat. However, anytime you break your end goal down into smaller, "mini-goals", it will seem more do-able!

A visual that tracks your progress is a helpful and motivational tool, so be sure to get my free printable savings tracker before you start!

100 Envelope Money Saving Challenge

This savings challenge will help you develop self-discipline with your money, so you can stop impulsive spending habits and train yourself to save.

How it Works

After completing the 100 envelope money saving challenge, you'll have saved over $5,000 in just 100 days! Completing the challenge is very simple, just follow these steps:

Start with 100 envelopes and label them 1-100.
Put the envelopes in a basket, bin or other storage container.
Everyday for 100 days, randomly pick an envelope and put the amount of cash that is on the label inside the envelope.
Put the envelope somewhere safe and repeat the process for 100 days.
Deposit your $5,050 dollars and decide what you will do with your cash! You can save it, invest it, pay off debt, or spend it.

For example, if you randomly select an envelope and it is number 40, seal and put $40 in that envelope.

Tips for Success

Keep a visual reminder to track your progress. It's helpful to keep a visual progress tracker somewhere you see it everyday, like your planner or on your refrigerator. Fill in the visual as you get closer to your savings goal to help you stay focused and motivated.
On days you draw a large number, revisit your finance goals. I'm sure you've heard it said that keeping your "why" in mind is important. This challenge is no different! Make a collage, tape pictures to your desk, etc. Do whatever it takes to stay on track.
Complete the challenge digitally instead of with paper envelopes. An alternative option to the physical challenge is completing the challenge digitally. To do this, open a separate bank account to deposit your funds into. You can either 1) Label physical envelopes and draw everyday, but instead of putting money in the envelope make a deposit into the bank account 2) Use an online generator to randomly pick a number from 1-100 for you and deposit that amount into the separate bank account.
If you miss one day, don't miss two! The hardest part of sticking with a savings challenge is doing it daily. If you do miss a day, don't miss two. Once you develop a habit of inconsistency, it can be hard to get on track and finish the challenge. Don't beat yourself up over missing a day, but don't let it become a habit!

Other Ways to Save Money

1. A Monthly Budget

Ultimately, it's difficult to save money if you don't have a routine plan for how you'll do it. A monthly budget is one of your biggest tools to save money because you know exactly where your money is going.

Create your first monthly budget using my detailed instructions.

Get my free printable monthly budget template , or my google sheets budget template if you prefer to track your budget digitally!

2. Pay off Debt

Saving money is hard when your income is tied up in monthly debt payments. Upon completing this challenge, consider using the funds to pay down your debt.

For a strategic plan for paying off debt, follow the debt snowball method. Once you're out of debt, it will suddenly feel like you got a raise! This will free up disposable income to put towards your financial goals.

3. Cancel Subscriptions

One of the best ways to quickly cut spending is to review your subscriptions. Cancel any monthly subscriptions you don't use regularly, and turn off the "auto-renew" feature. This will force you to evaluate every renewal period whether you're using the subscription enough to warrant renewal.

4. Use Cash Envelopes

Cash envelopes are a budgeting tool used to deter impulsive spending habits. The idea is to force yourself to stick to your budget by keeping certain budget categories/expenses tucked away in your cash envelope. Studies have shown that when we use cash instead of a card, we spend less because cash affects our brains differently!

Brainstorm budget categories that you tend to overspend on, then when you are paid, put the amount of cash you've budgeted for the month into that envelope. alternatively, you can take the cash out weekly, or bi-weekly, whatever works best for you! For example, if you budget $600/month for groceries and you are paid weekly, you can take withdraw $150 per week. The key is once the cash in the envelope is gone, that's it! You're done.

Give the envelope method a try! It works great for budget categories like groceries, personal spending, beauty, clothing, etc.

5. Don't Save Card Info Online Shopping

Click. Click. Buy! Online shopping has become SO easy that it's persuading us to make impulsive decisions. When your shipping address, card info, and contact info is already filled in on your favorite website, it makes it that much easier to justify our purchases. If you want to save money, don't save any of your card information on any websites. Force yourself to take the extra step to get your card and fill in all the information. It will give you a little more time to think about your purchase.

6. Unsubscribe from Store Emails

Our inboxes are another source of persuasion for impulsive purchases. Have you ever given a site your email to get a coupon code, only to be bombarded by emails everyday after the fact? While this can be helpful for things like being informed about sales, it can also encourage impulsive spending.

7. Ditch Credit Cards

When you don't have any credit cards, you can only buy what you can afford. This forces you to evaluate every single purchases, carefully weighing the costs and benefits. Personally, we don't have a single credit card, and I've never thought twice about it. Not because I didn't think it would be nice to have more disposable income, but because it's not even an option. We took that option off the table, and now we don't ever think about it! It forces us to decide what is really worth our hard-earned money.

The 50 30 20 Budget Method + Does it Work?

Tue, 03 Jan 2023 12:21:42 GMT

Using the 50/30/20 budget rule, you create a personal budget by dropping your income into three buckets- needs, wants, and savings.

This method is a great option for those who like a specific formula to follow and find budgeting overwhelming. This budgeting method does not focus on detailed budgeting and precise spending amounts, but rather a loose framework.

How the 50/30/20 Budget Works

50% Needs

Needs refer to expenses that you require to live, or necessities. Typically, this includes food, housing, utilities, and transportation.

Mortgage or rent payments
Internet, water, sewer, garbage, electricity
Gas/fuel/public transport/parking
Childcare/daycare
Healthcare
Groceries

According to the 50/30/20 budget rule, needs should account for no more than 50% of your monthly take-home pay.

30% Wants

Wants in your budget refer to discretionary expenses, or non-necessities.

Personal spending
Hobbies
Subscriptions
Entertainment
Recreation
Restaurants
Vacations
Nonessential services

Be very careful when putting expenses in this budget category. It’s easy to mistake our wants for our needs! For example, we often think of our subscriptions as needs when we could live without them. It might even be uncomfortable to live without certain wants, but that doesn’t make them a need.

20% Savings

The savings bucket is reserved for financial goals. Such goals might include (but are not limited to):

Home down payment
Investing for retirement
Building emergency fund
Saving for a car replacement
College tuition savings
Paying off debt

Finance goals should always be a line item in your monthly budget, and this budgeting method ensures they are covered. If you don’t put them in the budget, they won’t happen.

However, 20% doesn’t go very far when it must cover retirement savings, emergency fund savings, college saving, paying off debt, and other savings!

If you want to start the 50/30/20 budget, or any other budgeting method, you can get my free google sheets budget template below!

What’s Best?

Because of the plethora of options available when it comes to budgeting, it can be hard to pick what method will be best for you.

Benefits of the 50/30/20 Budget

The 50/30/20 budgeting rule has some major perks:

The 50/30/20 budget offers a simple formula to follow. This is a welcome relief if numbers aren’t your strong suite and budgeting makes your head spin! Simply allocate your take-home pay to the three buckets and you’re done!
One bucket is devoted to savings goals, rather than simply saving what’s left over. Putting your goals as a line item in the budget is necessary to achieve them!
Offers an easy way for beginner budgeters to get started. Budgeting can seem overwhelming, especially when you are just starting. Using this method requires dropping every expense into 3 different buckets, which is simple enough that beginner budgeters won't get discouraged!

Overcomplicating the budgeting process can lead to discouragement. One of the biggest benefits of this budgeting method is the simplicity it offers.

Disadvantages of the 50/30/20 Budget

No two budgets should look the same, because no two people are in the same stages of life or have the same life. A budget should be a unique, personal plan tailored to your individual needs.

One-size-fits-all framework. A major drawback to this budget method is there is no consideration for your age, current retirement savings, debt, or your unique financial goals.
Savings bucket is only 20% of take-home pay. If you follow the recommended 15% investing rule, that leaves only 5% of your income to split between paying off debt and other savings goals!
Doesn’t work well for very low-income earners or very high-income earners. Someone making minimum wage will probably need to allocate more to necessities, and a high-income earner might not need to allocate so much to discretionary spending.

Using this budgeting equation, someone who has $100k in debt would still be allocating 30% of their income to wants! In my opinion, that is not wise. One of the reasons we were able to dig ourselves out of $20k in student loan debt in 12 months (living on one income) is because we cut our wants down to almost nothing for a short period of time. If we had used this budgeting method, it would’ve taken at least double the amount of time to get out of debt, and we likely would’ve lost motivation along the way.

A 70-year-old retiree’s budget will and should look different than a 25-year-old with little kids trying to get out of debt. The latter should have a greater portion of their income, if possible, going to paying off debt. The former might have more of their income allocated to wants and less to savings goals (because they’ve already hit them).

Ultimately, your budget needs to be a unique, custom plan tailored to your individual needs.

Follow along below for how I recommend budgeting in a way that reflects your needs, priorities, and keeps you engaged in the budgeting process.

How to Make an Effective Budget Plan

For detailed instructions for setting up a monthly budget, click here.

List your total expected monthly income.
Calculate and list your fixed and variable monthly expenses.
Brainstorm and put non-monthly expenses in the budget by converting them to monthly amounts.
Include finance goals in the budget.
Budget for discretionary spending.
Subtract total income and expenses.
Track your spending!

Take your budget a step further and use the paycheck budget method, allocating every single budget line item to one or multiple pay periods. Essentially, you create a budget for every pay period based on your total monthly budget.

Follow this YouTube video as I walk you step by step through the paycheck budgeting process!

You can use the paycheck budget method for the 50/30/20 budget, or any other budgeting method you choose!

I've found that breaking my budget down into smaller, more manageable chunks by pay period helps me stick to my budget. Give it a try and let me know how it goes!

Save Money Now: 11 Practical Tips to Immediately Save Money

Fri, 04 Feb 2022 02:43:00 GMT

With inflation being at a 40-year high, nearly everyone is looking for practical ways to save money right now. Here's how to save money immediately.

How to Cut Spending & Save Money Now

You’ve probably noticed that your grocery bill isn’t getting any lower. High inflation is affecting everyone’s grocery bill, you’re not alone!

We can’t control inflation, so let’s focus on controlling what we can control.

One way that you can lower your grocery budget is by carefully creating a meal plan weekly, bi-weekly, or monthly. But, before you create your meal plan, let me give you a few tips!

Meal plan backwards.

Most people meal plan wrong. They browse the store ads, write down a few things that are on sale, look for recipes that look appetizing, then go shopping. While this will help your grocery budget some, there is a better way to save money on groceries.

The key to saving money on groceries is to aim for a zero-waste kitchen.

No throwing out uneaten leftovers. Or letting food expire.

Here’s my simple process for creating a meal plan with the aim of zero-waste:

⭐️ Read: $5 Meal Plan Service Review

Buy generic.

Often (not always!), generic food and household supplies are made in the same factory as name-brand food and supplies.

Now, don’t hear me wrong. There are foods that are worth buying name-brand. My husband is a ketchup snob. Therefore, we only buy Heinz ketchup. We have decided it is worth the extra .50 cents for the increased flavor. In fact, there are a lot of foods that we buy name-brand because we believe the flavor to be superior quality, or we’d rather support a small business and pay more.

However, for household supplies (think plastic bags, laundry detergent, aluminum foil, dish soap, cleaning supplies, medications, etc.) we *almost* always buy generic brands.

You decide for your family what products are worth paying more for, but to save money quickly, focus on buying generic as much as possible.

Have your calendar handy.

When you're meal planning, have a calendar handy so you know what days require what kind of meals. For example, if you have a jam-packed day with back to back events and appointments, you'll need a meal planned that requires little prep.

Double a few meals + freeze one for later.

Pick a few meals to double, and freeze one for later. Casseroles are easy to double and freeze. This way, when something unexpected comes up, or you have a busy night, you can just grab a meal from the freezer instead of going through the drive-thru!

Choose a day to meal prep.

If possible, find a day to meal prep breakfasts, lunches and/or dinner. I like to prep breakfast and lunch meals one day per week so that the other 6 days I can quickly grab something.

Using a cash back app when online shopping is a great way to earn money without doing anything. If you aren’t currently using a cash-back app, this is a way you can instantly save money.

RebatesMe is one of the top CashBack websites where you can earn money for every online purchase you make. Offering over 4,000 online retailers to earn money while you shop, eat, & travel, RebatesMe provides you with deals, discounts, and cashback services for your everyday needs!

RebatesMe is currently offering a $30 cashback bonus just for signing up – it’s free & easy!

You can even earn DOUBLE cash back at select stores – these change every day so be sure to check here first before making a purchase!

The Offer

Currently, you can earn a $30 bonus when you sign up for a new RebatesMe account . You will be able to cash it out once you’ve accumulated a minimum of $10 in cashback through online purchases.

Cashing out

Your cashback is able to be cashed out via PayPal, debit/credit card, check, or a gift card.

Browser Extension

The RebatesMe Browser extension is a great add-on as it will give you a pop-up reminder when you are online shopping, showing you any available coupons and the current cash back rate at that particular store. You can even download the app for easy access if you prefer to shop on mobile.

Many times, monthly subscriptions are an incredibly useful tool that allow for a discount on a certain product in addition to the benefit of not having to constantly re-order.

I love the subscriptions we use ( Black Rifle Coffee Co., PinkStork, QuickBooks online, etc). But, if you really want to save money, it might be helpful to cut a few out that you don’t use that often.

Make a list of all the subscriptions you currently have and pick one to cut. This will help you quickly save money!

I know that you know what I’m talking about. The emails from your favorite brands and shops that you just can’t help but click when they land in your inbox.

If you struggle with impulse spending, either because you use shopping as a coping mechanism or just because you’re bored, unsubscribing from a few emails won’t hurt!

If you struggle with impulse spending, commit to at least sleeping on your purchases. Often times when you force yourself to think about a purchase for a while, you discover that you really don't need it after all!

A key secret to changing your money behaviors and disciplining yourself to save more money is to change your habits . Completing a challenge will change your habits.

A no-spend challenge (also called a spending freeze) is completed by challenging yourself to not spend any money for a set amount of time, such as a weekend, week, 2-weeks, or even a month.

Typical rules for a no-spend challenge are as follows:

The obvious benefit of completing a no-spend challenge is saving money. However, an additional benefit is the spending habits you create.

Taking a break from spending money will allow you to evaluate exactly where your money is going.

Another way to save money quickly is to complete a money-saving challenge.

Click here to get access to the free money saving challenge printables!

In general, you should consider refinancing your mortgage if you have:

A key consideration regarding refinancing is when you will break even on your interest savings from a lower rate after considering closing costs. In addition, you should also consider how long you plan on staying in the home.

For example, if you lower your interest rate by 1% by refinancing, on a $200,000 loan that would save you $2,000 per year in interest. If your closing costs are $3,000, it would take you 1.5 years to break even.

If you don’t plan on staying in the home for another 1.5 years, then it’s not worth it. However, if you plan on staying in the home for say, at least 5 years, it’s probably worth it considering you’d save $7,000 (4.5 years x $2,000 per year savings).

If you don't know where your money is going, it's hard to find any to save. The save money, you need a plan for where your money should go. Every single dollar should be planned on paper before the month begins. When you have a plan, you have a roadmap to success!

A budget is not meant to be restricting, daunting, confusing, or stressful . Rather, a budget is meant to give you permission to spend without stressing!

If you've never budgeted before, start here , and be sure to download my free monthly budget template.

5 Practical Tips For Clean Living On a Budget

Fri, 16 Jul 2021 19:41:00 GMT

I’m no clean living guru, rather, I'm what you’d call a reluctant crunchy.

Though I’m definitely getting more and more crunchy, I still truly seek to find unbiased information and make decisions based on the set of facts that I have.

By nature, I’m a skeptic.

In college, I wrote a persuasive essay arguing two opposing viewpoints, and my professor's comment was, “Great critical thinking. You’re equally persuasive with each argument, I’m not sure which side you’re on. Are you sure you want to be an accountant?”

While it’s true we are told many lies about the safety of products that we consume for monetary gain, we are also told lies about the harm of certain products for monetary gain.

Thus, it’s important that you think critically (and practically) based on the facts you have by constantly asking yourself critical thinking questions anytime you are being persuaded.

When it comes to cleaning products, I’ve changed my mind after doing a lot of my own research in the past year about the human immune system, studies showing the effects of consistent exposure to toxic chemicals, and corruption/suppression of information.

For this reason, I’ve started overhauling our home ditching and switching products, starting with our cleaning supplies.

I try to find products that strike a balance between practical, affordable, and safe.

Cause $90 shampoo just isn’t in the budget.

The upfront cost when you begin the switch to clean living seems like a lot (and it can be) .

However, be encouraged! I think you’ll find that certain product alternatives to the generic/cheaper brand are actually cheaper or only a little bit more expensive.

Here are my tips for non-toxic living, of course, as always… on a budget!

CLEAN LIVING ON A BUDGET

These are the steps I’m personally taking right now as I make the switch to a more natural, non-toxic, clean-living lifestyle.

In addition to DIY recipes, I am currently using the Young Living Thieves Starter Kit.

It is tempting to throw everything in your house in the trash once you decide to switch to a more non-toxic lifestyle.

When I first began the switch, this is exactly what I did. I’m kind of a go-big-or-go-home kind of person. Well, not kind of. I just am. Everything was going great until I realized I had to replace it all. Needless to say, back to the trash I ran.

Instead of throwing everything out, prioritize and move one step at a time.

You can even break everything down into micro-steps if you’re on a really tight budget.

Just with anything else (like personal finance) , baby steps are still steps forward!

I’ve decided to start switching out my cleaning products first and I’ve been replacing them with the Young Living Thieves brand.

I plan on doing my cosmetic products next. This will make me weep. I love my high-end super toxic makeup ;) But! I’m going to give the Young Living Savvy Minerals line a try, and use some tips I’ve researched to make it go as far as possible.

Price-wise, the makeup will be an easier switch because I buy mostly high-end makeup anyway.

Don’t buy it unless it’s in the budget. If you've never made a budget before, this step-by-step guide will help you do get started.

Ideally, you could throw everything in your home out and replace it with non-toxic products the same day. But that takes time and money. Just like with everything else, we need to consider opportunity cost before making decisions!

Overhauling your home to make it a safer, cleaner environment is not a license to go on a shopping spree and spend frivolously.

Rather, plan for the cost of product replacement. There are two ways you can do this:

Before dropping a chunk of change on non-toxic, clean living products, run the numbers.

When I bought the Young Living Thieves Starter Kit, the cost wasn't the issue, it was the perceived VALUE I was getting for the cost that made me reluctant.

However, after running the numbers based on a number of reviews from others, some simple math determined using Young Living for my household cleaner would actually be a wash in regards to cost.

Though it seemed like it would be more expensive in the long-run, the fact is that it's actually just a greater up-front cost.

DIY as many products as you can. There are SO many different natural recipes you can try that end up being way more cost-effective than anything you can get from the store.

Vinegar, water, baking soda, hydrogen peroxide, castile soap, essential oils, etc. are inexpensive ingredients that are common in DIY recipes.

You will save tons of money using just these ingredients and replacing toxins in your home.

Many times, influencers (for lack of a better word), make you feel like if you don’t use their product they sell or promote to make money, you’re not doing it right.

This goes for companies like Young Living as well. However, there are DIY recipes that work just as well that are a heck of a lot cheaper!

Keep in mind:

While I am loving the Young Living products I’m using, if there’s a cheaper route that is just as effective that I love just as much, I’m going to use it.

Hint: recipes to come soon!! Stay tuned :)

I’ve been trying out ALL KINDS of recipes. My husband calls me the fruity-tooty queen. His own words for crunchy ;)

CUT COSTS TO MAKE ROOM IN THE BUDGET

If you’re like hey, yes, I want to do this… but I’m not sure where the money is going to come from, here are a few ways you can cut costs in your budget to make room.

If you’ve never made a budget before, you’ll be amazed at how much money you can save and how much you were wasting before budgeting! Once you start budgeting, you suddenly feel like you have a lot of money. Instead of wondering where all your money went, you TELL It where to go.

You can get started with my free monthly budget template !

MY REVIEW OF THE YOUNG LIVING THIEVES STARTER KIT

I signed up for Young Living to get the 24% product discount and try the Thieves Premium Starter Kit.

Additionally, I wanted to show that just because a product seems expensive up-front, doesn't mean it is more expensive! Often times, high-quality, clean-living products in the end cost less or just about the same as the cheaper, toxic version.

Because these products are more efficient, versatile, and need more dilution, they are more sustainable.

All that being said, I want to review the Young Living Starter Kit I purchased.

This is exactly what comes in the Young Living Thieves Starter Kit:

As I mentioned before, I'm a reluctant crunchy. I'm going to be honest when I review clean living products and whether I think they are really worth the cost.

I will be repurchasing the Thieves household cleaner, Thieves toothpaste, and Thieves essential oil. Everything else that came in the starter kit was not worth the cost in my opinion.

Additionally, you can DIY the exact recipe Young Living uses yourself as long as you have the Thieves essential oil. More to come after I try it myself!

Stay tuned for more on my reluctant crunchy journey! ;)

Why You Need to be Saving For Retirement Now [+ What Percentage to Save]

Thu, 13 May 2021 16:31:00 GMT

According to a survey by Nationwide , the average age American workers start to begin saving for retirement is 31 years old. The issue is most Americans don't realize how much of a difference time (starting earlier) makes in investing.

Furthermore, the same survey found that only 22% of employees say they feel prepared for retirement.

The truth is, when it comes to retirement planning, most Americans don't know where to start.

In their defense, retirement planning is not taught in high school or college (unless you’re majoring in a related field). They simply think social security + whatever they can save here and there starting in their 30’s will sustain their current lifestyle in retirement. Then, they’re surprised when they have to keep working well into retirement and/or majorly downgrade their lifestyle in their later years.

Additionally, many Americans would rather keep their current high-consumption lifestyle rather than saving for retirement.

They say there’s never any money left over at the end of the month, yet they live in a house with a mortgage that takes half their monthly income and a car payment that’s close.

So, where do we start?

The first step is to decide to take responsibility for your financial future. YOU are in charge of when you retire, how much you have in retirement, and whether you get there.

Second, start learning. My goal is to help you understand how you can set yourself up for financial peace both now, and later.

Let’s dive in!

⭐️ Related Posts:

Saving For Retirement (What, Why, How)

When to Save?

If you commit to start saving for retirement early on, it can pay huge dividends. Even if you invest a smaller amount of money in total than someone who starts late, a 10-year head start can mean you end up with more money than they do at retirement.

For example, if you start saving $100 per month starting at age 20 and ending at age 67, with a 10% average annual return, you’d have $1,281,915. On the other hand, if you start investing at age 35 and contribute $300 per month until age 67, with a 10% average annual return, you’d have only $835,537.

Although you tripled your contribution amount in the second scenario, you were still worse off in the end! Starting 15 years earlier made a difference of $446,378 – nearly half a million dollars!

Hopefully you can see that investing early pays massive dividends later in life!

I truly believe ANYONE has the ability to retire a millionaire, if they are willing to delay their gratification, practice self-discipline, and be consistent.

I’m not saying this is an easy task, but I am saying it will be worth it!

If You’re in Debt

Getting out of debt is foundational to building wealth. For this reason, if you’re in debt it’s a good idea to pause saving for retirement. This allows you to wholly focus on getting out of debt as fast as possible.

Although this defies mathematical logic, it goes hand in hand with behavior logic.

Research shows we are more productive and efficient when we focus on one thing at a time.

If you simultaneously focus on paying off debt quickly and investing, you won’t reach either goal as fast as you would if you focus on each separately.

Like many other things, personal finance is 80% behavior and 20% situational. We make progress in our personal finances when we change our beliefs and behaviors about money.

To change our behavior, we need to focus on the psychology of money.

This is why you pause all retirement saving (yes, even if you have an employer match), because studies show your BEHAVIOR will change dramatically if you focus on one goal at a time.

In The Baby Steps

Our family follows Dave Ramsey’s 7 Baby Steps to Financial Peace. These steps have changed our life! Here’s where investing fits in the steps:

After paying off all non-mortgage debt, focus on saving. Then, once you build a solid savings cushion, focus on investing.

Note that baby steps 4-6 are done simultaneously. In other words, any extra money left over after investing should go to kids' college (if applicable) or extra mortgage payments.

⭐️ Read: Dave Ramsey's 7 Baby Steps To Financial Peace

How Much Will You Need?

The short answer: it depends. The better answer? More than you think!

If I’m being honest, I see myself taking a few vacations a year, visiting my grandkids often, and treating our family to some getaways. In addition, I’d love to be able to be outrageously generous to our church, missions, and various faith-based ministries. I’d love to bless people.

I look forward to (Lord-willing) seeing the fruits of my labor. Does this make me greedy? I hope not! The Bible says,

It’s important to note that Proverbs is a book of principles, not promises. As a general principle, if you’re disciplined, you will be rewarded! However, this is not promised. Either way, our faith and hope should be in Jesus Christ- not our riches (or lack thereof).

Money is a TOOL to be used to the glory of God!

This doesn’t mean we idolize money, retirement, or enjoying life. It should not be our treasure (Matthew 6:21). Rather, we find a healthy balance between enjoyment of, but not worship of, the money we’ve worked hard to multiply.

If you’re a believer, your money doesn’t belong to you. It belongs to the Lord, who graciously provides our needs. You and I are simply stewarding the money God has entrusted us with.

This is no light responsibility- and we shouldn’t treat it as such!

We should be intentional with our money, so that we glorify God. Having a plan for retirement is a way we can be intentional with our money, making what God has given us go as far as possible, and bless as many people as possible!

What Percentage of Your Income Should You Save?

As a rule of thumb, you should aim to save 15% of your gross (pre-tax) income every year. Do not consider any employer match, that is just a bonus. The employer match portion is not considered in your 15% calculation.

Another common mistake is bad math. I often get asked questions like, If I defer 6% of my income for retirement at my job and my husband defers 6% at his job, we’ve hit 12% retirement savings, right?

Wrong. If both spouses defer 6% of their income for retirement into a 401(k), they are saving 6% of their income. Both spouses need to defer 15% of their income in order to hit the 15% savings goal in total.

Where Should You Keep It?

You can keep the money in your 401k (employer-sponsored retirement account), or an IRA (Individual Retirement Account NOT related to your employer).

Within both these forms of retirement accounts are two main types of retirement accounts – Roth and Traditional accounts.

For purposes of this post, I’m not going to go into detail about the differences between a Roth IRA and a Traditional IRA. However, note that for MOST people, a Roth IRA is a better option than a Traditional IRA. The reason being money contributed to a Roth IRA GROWS tax-free and is never taxed when distributed in retirement. For a more in-depth explanation of the advantages and disadvantages of each, read this post.

If you’re employer has a Roth option, you can keep the full 15% there! You should at least defer the amount of the employer match available (regardless if you have the Roth option), because this is FREE money. You never want to leave free money on the table.

For example, if you’re employer doesn’t offer a Roth option (very uncommon), but will match up to 3% of employee contributions, you would want to contribute 3% to your Traditional 401k. For the remaining 12%, if would be advantageous to open a Roth IRA (if you meet the eligibility requirements) and get to 15% total contributions that way.

Kapeesh?

A NOTE ON STOCKS

Personally, we do not invest in single stocks. Rather, we buy mutual funds (groups of stocks designed to diversify risk).

Investing in single stocks means you buy a single share (stock) of a company in hopes of making a short-term profit. The goal of stock trading is to buy the shares of the company at a low price, and then sell at a high price.

Because you are chasing a short-term profit with stocks, you will have to bear a lot more risk than mutual funds.

You might make a big-time profit with one stock, but then lose your butt on five others.

It’s more of a gamble with your money. I refuse to gamble with money I’ve worked so hard for. I’d rather build wealth slowly but steadily and learn patience and the value of consistent discipline.

In my humble opinion, playing the single stock game is just another get-rich-quick scheme.

Be leery of these schemes. The Bible warns against hastiness:

I’ve heard it said the best way to get rich quick is little by little. Proverbs reiterates this:

While people do get rich quickly, they are often the exception to the rule. For example, those who put their life savings in Netflix or Walmart when they were start-up companies aren’t hurting for money right now. However, they made a gamble. They put all their eggs in one basket. While a few make it big, the majority end up worse-off or just break-even.

How Do I Save 15% When It Seems Impossible?

Ok, now you might be thinking... how in the world am I supposed to save 15% of my gross income? Don’t you know the government takes half of it?? Yes, I do know, by the way ��

If your gross household income is $80,000 per year, 15% of that is $12,000 per year, or $1,000 per month.

Ouch! Depending on your location, family size, and current lifestyle habits, that can seem nearly impossible .

It's not! As our family grows in size, hitting the 15% mark every year sometimes gives me anxiety! But we've decided (my husband and I) that saving for retirement is a top priority.

We're willing to do without right now so we can have more later.

Here are some tips to help when it seems like an impossible task:

Remember, getting to 15% savings may require significant sacrifice and major behavior changes. If you’re used to spending 85% of your paycheck, it’s going to be a hard adjustment!

How to Prepare for An Emergency on a Budget

Sun, 24 Jan 2021 14:00:00 GMT

If you're an everyday person who wants to know how to prepare for an emergency without being overwhelmed, you're in the right place.

First, I'd submit to you that if you're a believer in Christ, we don't need to worry about what could happen and when . We have comfort that nothing in this world can thwart God's plan for our lives. That's not to say that we don't have any responsibility and don't need to take action. Rather, trust God to guide your steps and act in wisdom.

That being said, that's what I'd like this post to offer to you- a practical, helpful beginners guide to preparing for an emergency!

In a financial context, many fear financial disasters that take away their security blanket. For example, a stock market crash that never rebounds. There is an extremely low probability the stock market will plunge to zero. However, because of this, it's wise to have an emergency fund.

Similarly, while the probability of your family having to take cover in your basement for 3 weeks is extremely low, it's wise to prepare practically. The key word is practically .

One one hand, you can live carelessly with no plan. On the other hand, you can live like everyday is the apocalypse. Neither are great options!

The goal of this post is to be less scared , more prepared . Continue reading to learn how to prepare for an emergency on a budget!

THE BASICS FOR BEGINNERS

The goal of emergency preparation is to limit disruption to your life and recover quickly. That's it. The goal is not to have an underground bunker you can survive in for 10 years! You can certainly do this, but that is not the goal.

To start, you need answers to a few key questions. How much do I need? Where should my focus be? Where do I start?

Let's dive in.

HOW MUCH?

According to theprepared.com , you should have adequate supplies to survive two weeks. Furthermore, the goal is to survive with no outside help , including electricity, water, gas, communication, internet, etc.

This means you need supplies adequate for two weeks of survival. This translates to:

Does that seem like a lot? You need more than you think you do! The good news is water is cheap. The bad news is food is not ;)

WHAT SHOULD I FOCUS ON?

You can survive weeks with food (though not recommended). On the other hand, you can survive only 3 days without water. Consequently, focus on water. Yes, water can be a pain to store! However, it's essential to survival.

WHERE DO I START?

Start with education . Next, build your foundation (finances + health). Last, build your supply .

The most powerful tool in your arsenal is knowledge. Instead of grabbing a checklist off the internet and spending $500 at Costco, research and learn from experts! What is essential, what skills can you learn, and what is the best route?

The best way to prepare for an emergency is to have the skills necessary to survive.

You're better off knowing how to hunt than knowing what to buy.

11 HACKS TO PREPARE FOR AN EMERGENCY

1. BUILD A SOLID FINANCIAL FOUNDATION

The truth is most emergencies are financial or medical . The probability of experiencing a financial or medical crisis is far greater than a natural disaster. Still, financial security is not a priority for Americans. In fact, studies show over 70% of Americans live paycheck to paycheck and could not cash flow a major financial emergency.

You NEED a financial plan that includes a budget, debt elimination, and saving for retirement.

PREPARING YOUR FINANCES

To prepare for an emergency, prepare your finances. Here's how.

This list is overwhelming if you do not have a solid financial foundation. Rather than trying to attack all at once, focus on one step at a time.

What is your biggest financial hurdle?

Focus on that first .

⭐️ Get 20% off any of my budget tools when you subscribe to my email list

2. TAKE YOUR HEALTH SERIOUSLY

In addition to your finances, your health is an essential foundation to survival. Americans have extremely poor health habits, putting themselves at great risk of a medical emergency.

What's the best way to protect yourself from developing heart disease or diabetes? Eat healthy and exercise. In the same way, eating a healthy diet and exercising regularly essential to avoiding a medical emergency.

Furthermore, being healthy will increase your chances of surviving a non-medical emergency. If you struggle to walk up stairs, have addictions, and/or require a lot of prescriptions because of poor health, it will be hard to survive any emergency.

Make your health a priority!

If you have not made your health a priority, start with small, daily habits:

As you master small habits, challenge yourself to do more!

3. START SMALL

Small, simple steps will go a long way for emergency preparation. It's tempting to blow your savings spend a couple grand on emergency supply kits and call it good. This is not an effective way to prepare for an emergency! Take your time to research what you really need.

Then, start slowly purchasing supplies based on your research. Resist the urge to rush and buy hundreds of supplies in one weekend!

4. BUY IN BULK

As a general rule, you save money buying in bulk. For this reason, I shop at large supply stores like my local Bomgaars, Walmart, Sam's Club, and Costco.

This is what I bought from Sam's Club for our emergency supply:

I budget for emergency supplies and only make purchases when the money is available. I do not EVER use money from our savings or a credit card.

5. CALCULATE & CUSTOMIZE TO YOUR FAMILY

Be sure to customize any checklist you use to your family size. Then, buy in bulk if necessary.

6. FOCUS ON QUALITY OVER QUANTITY

It is better to buy quality items that will work properly when you need them than cheap gear that doesn't work properly. If you are ballin on a budget, buy what you can afford.

Do not go into debt to build an underground bunker!

7. MAKE A SINKING FUND

When I started researching emergency preparedness, I quickly realized that I was very unprepared . Because of this, I started budgeting for the supplies and created a sinking fund.

A sinking fund is simply a specific and measurable way to save money for a period of time. For example, if your emergency stockpile is going to cost $800, set up a sinking fund with an $800 goal. To do this, add a line item to your monthly budget for emergency prep. If you have room for $100 per month in your budget, you start saving and in 8 months will have a fully funded sinking fund.

We set up sinking funds for any irregular or seasonal expenses. Examples of other expenses you can create a sinking fund for include car repairs, home repairs, annual or semi-annual insurance premiums, etc.

⭐️ READ: 8 Sinking Funds You Need in Your Budget

You can purchase items as you go, just don't spend more money than is in the fund at any given time.

8. KEEP IT SIMPLE

You're either going to be in your home, leave your home, or be away from home. Don't overcomplicate how you prepare for an emergency by creating a million different scenarios in your head.

Prepare for:

Prepare for these situations, not the zombie apocolypse.

9. START WITH THE MOST LIKELY SCENARIOS

Don't prepare for irrational, unlikely scenarios. You'll waste a lot of time. Instead, ask yourself key questions to prepare for an emergency in your area.

Answers will vary based on geographical location. Start by preparing for scenarios that have the greatest likelihood of occurring.

10. PRACTICE MAKES PREPARED

Learn and practice survival skills. If you've never handled a gun before, take a gun safety class. Ask a friend to shooting at the range with you. Learn how to quickly and effectively load a gun. My parents taught us how to shoot and properly handle guns. As a result, now that I have my own handgun, I'm more comfortable than most.

If you don't know much about hunting or growing your own food, start learning.

Similarly, if you don't camp often, take a camping trip. Learn how to make food with only hot water. Practice making a fire.

Think of skills that are essential for survival and practice .

Learning skills will get you a lot further than a bucket of gear in the closet.

11. sHELF-STABLE FOOD LIST ON THE CHEAP

You can easily create an emergency food supply on a budget! Whether you're working with $500 or $50, you can start small and make your money go as far as possible when creating your emergency supply. Here's what you need.

I created this list from this article.

BUDGET EMERGENCY FOOD SUPPLY IDEAS

Grains: Rice, rolled oats, all-purpose flour, pasta, quinoa, cornmeal, instant mashed potatoes
Beans: Pinto, black, navy, kidney, lentils, lima, chickpea
Fats: Olive oil, shortening, vegetable oil, peanut butter, coconut oil
Protein: Canned tuna, canned spam, canned chicken, sardines
Spices: Salt, sugar, honey, white vinegar, apple cider vinegar, soy sauce, garlic powder, Italian seasoning, garlic powder, chili powder, paprika, coriander
Baking: Powdered milk, baking soda, yeast, powdered sugar, vanilla extract
Fruits & veggies: Anything canned or dried

This is not meant to be a comprehensive list, but is a great place to start on a budget!

BONUS: EMERGENCY CHECKLIST IDEAS

While checklists are helpful, invest in education first.

This is not an exhaustive list. You know what your family needs better than anyone, this list is just a starting point.

EMERGENCY HOME CHECKLIST:

Hopefully you now have a good place to start your prepping! This post is a rational, practical, guide for normal people who simply want to be more prepared. NOT scared.

Ultimately, I know that while it's helpful to prepare for an emergency, my days are already planned out by the sovereign Lord and ruler of the universe! This brings me tremendous peace. No matter what, his plans will not be thwarted. He sits on the throne, and nothing happens outside of His will.

11 Smart Money Goals to Start the new Year Right

Mon, 11 Jan 2021 04:10:00 GMT

Money goals help us stay focused and motivated change our habits. As a result, changing our habits changes the direction of our lives. While that might seem like a stretch, the power of habit -- a pattern of behavior that becomes our default response to a situation - can't be overestimated. Developing healthy financial habits should be part of your personal goals this year.

This next year may bring many financial blessings or challenges. Either way, you can control your response and preparedness.

Pick some (or all) of these money goals to control how YOU respond and prepare for this new year!

The Importance of Goal Setting

Having clear financial goals is an essential part of financial success and a foundational to achieving financial freedom. A large amount of studies consistently show that setting high and specific goals is directly linked to greater task performance, motivation, and persistence, compared to vague, easy goals.

How to Set Personal Finance Goals

While this sounds cliché, setting goals gives you perseverance when life gets hard. They give us purpose, accountability, and action steps. SMART goal setting is a great way to develop clear, specific goals no matter what type of goal you're setting - personal, financial, professional, family, or otherwise.

Specific -A good goal has specific objectives. The more specific, the better!
Personal - Your goals have to be just that -yours. If you are setting goals based on anyone else's expectations for you, you'll fail.
Timeline - Create a realistic but aggressive time frame for meeting your goals. Check in often!
Written - Research shows that when you write your goals, it gives you a greater sense of accountability. Ask anyone who has reached a major goal or milestone in their life- they often say the key is staying motivated. Without motivation and perseverance, we can quickly feel defeated when any major or minor setback comes (and they will)!
Measurable - Create a detailed plan for yourself to get from point A to point B. What steps do you need to take daily, weekly, monthly?

Goals help you create a straight line from point A to point B. Don't skip this step!

11 Financial Goal Examples for 2024

These examples of financial goals are meant to be suggestions , not prescriptions. Depending on your financial situation, your goals could look very different, and that's okay! The goal is to achieve financial independence, no matter your income or circumstances. If some of these goals seem unrealistic, simply break them down further into smaller steps and create your own timeframe.

Short-term Goals

Short-term goals are typically defined as goals that take a few months up to a year to accomplish. Additionally, they are often micro-goals that act as stepping stones to your larger, long-term goals!

1. Pay Off All Debt

Debt is the Greek word for poison. Ok, it’s not, but you get the point. When debt is present in your life, it slowly starts to kill all your goals in the form of monthly payments. Debt has become normal- student loan debt, car loans, personal loans, credit card debt- you name it, most people have it.

Most people don't see debt as an issue although it is eating up their income and keeping them from gaining traction financially. They think, well hey, everyone else has one, I might as well have one too! However, following the crowd isn't particularly helpful when the crowd is living paycheck to paycheck.

While there are people who have credit cards who faithfully pay them off every month, that doesn’t make them responsible. Moreover, research shows that you spend more money with a credit card than with cash or a debit card. In fact, consumers are willing to pay 20% more with credit than with cash! I wouldn’t call that responsible. I’d call it a passive negative behavior.

Small doses of tempting bad behaviors over time will negatively affect your finances.

The Debt Snowball Method

If you currently have debt, make a plan to pay it all off using the debt snowball method. Using this method, you pay off all your debts in order of smallest to largest, regardless of interest rate. Once you have paid one off, you take the amount you were paying on that debt and add it to the payment for the next debt on the list. Thus, the snowball effect.

Make this a resolution and start today by listing all your debts, setting a payoff target date, and creating a visual to track your progress! Visually seeing your progress every month will help you stay motivated when you’re burnt out (we all get to that point)!

The key is to KEEP GOING until you’re completely debt-free. I’ve never met anyone who regrets getting out of debt!

2. Cut Up Credit Cards

Since you’re paying off all your debt, you might as well cut up the plastic money too. Commit to never going back. Don’t keep the card around “just in case.” Just in case ends up leaving you with a new couch, new TV, and pizza for the third night in a row because you had a rough day.

3. Save More Every Month

Saving more money is a great goal, and the good news is there are many ways to find money to save!

The truth is, saving money is rarely an income problem, it’s almost always a behavior problem. You need to change your behaviors if you want to change your outcome. Here are some ways you can save money!

Meal Plan

One of easiest budget categories to overspend on is groceries . Most people don't track how much they're spending, and most don't plan their meals. As a result, they end up hitting the drive thru multiple times per week and constantly going to the grocery store. Dinnertime at our home is cheap, stress-free, and fun! How? I use a meal planning service called $5 meal plan to plan my meals for me. It only costs $5 per month, which is more than worth it to me. They send me a meal plan, shopping list, and detailed instructions every Friday for my meal plan for the following week! Additionally, I can use their online recipe bank if I'd like! Here's a detailed review.

Use Cash Envelopes

Cash envelopes are a simple but effective way to change your money behaviors. Start small, and eventually you'll see major changes in your habits.

Here are a few tips for using the cash envelope method:

Fill. Every month or week, fill your envelopes with cash for budget categories you decide warrant an envelope (groceries, gas, blow money).

Limit. Once the money in your envelope is gone, that's it! You're done spending in that budget category for the month.

Time. Give yourself time to get used to the system. Like anything else, no one becomes an expert in a day! Be gracious to yourself until you get it down.

Cash envelopes help develop self-discipline, one the number one habits required for wealth building. Although this seems like a small change, your successes and failures are built on the small changes and decisions you make everyday!

Cut Out 1-2 Expensive Habits per Week

What are your most expensive habits? For me, before getting my own espresso machine, I would buy a latte everyday. A latte costs about $5 per day, or $25 per week. Cutting it out saves at least $100 per month.

Another common expensive habit is eating out and recreation . Don't get me wrong, I love both! However, if you don't budget for it, this can easily become a money pit.

Commit to getting rid of 1-2 expensive money habits per week!

4. Invest 15% of Your Income for Retirement

Too many people feel unqualified to start planning and saving for retirement. Don’t be intimidated! Rather, invest in educating yourself on the basics of retirement planning. Trust me, you don't need to be an expert! Simply understanding the differences between Traditional IRAs and Roth IRAs will help you make informed decisions about where to put your retirement savings.

Here are some tips:

Here are some tips:

Think long-term. If you’re looking for a get rich quick scheme, I can’t help you. Too many people pull out of their investments at any sign of a downturn in the market. Don’t chase short-term gains, you’ll end up getting burned in the long run. Investing is a marathon, not a sprint.
Consistency is key. Put your investing on auto-pilot by making your investment contributions an automatic withdrawal from your bank account.
Diversify your risk. The best way to diversify your risk in the stock market is to invest in mutual funds, which are groups of single stocks. Learn more about each here.
Learn. Many people don’t take the time to learn about their different retirement options and plans because they think it’s too complicated. A basic understanding of the different types of plans, how they work, and investment strategies will go a long way. If you don’t know what you’re investing in, you could be setting yourself up for failure. It’s worth taking the time to learn enough to be dangerous.
Utilize a financial advisor. Be sure to find someone you can trust that will teach you about investing, not just throw big terms at you and tell you they have it handled.

A good rule of thumb is to invest 15% of your gross (pre-tax) income after all your debt is paid off. If you have debt, focus on paying that off before investing. You are most effective when you focus on one goal at a time!

⭐️ READ:

5. Review Insurance Policies

I hate dealing with insurance. I’ll make spreadsheets, balance the budget, reconcile our accounts, but talking insurance is like nails on a chalkboard to me. It’s on my list of some of my least favorite things to do.

However, it is incredibly important. In fact, it’s essential, and therefore should be included in annual financial planning processes.

INSURANCE CHECKUP

There are many insurance products on the market, so it's hard to determine which products are necessary. I follow Dave Ramsey's guidelines, and he recommends the following (please see this post for reference):

Auto – It goes without saying that everyone needs liability coverage. However, whether you have collision and comprehensive is up to you. If you have older vehicles that are junker cars, you may only want liability coverage.
Homeowners – If you own a home, immediately purchase homeowner's insurance. While this insurance covers most scenarios, it typically does not cover flood damage. Therefore, if you live in a area where that is a threat, you’ll want to get flood coverage as well. It’s not cheap- so seriously consider this before moving to an area where a flood is a threat.
Health insurance – Most people have health insurance through their employer. Often, there are different types of plans to choose from and it can be extremely confusing trying to decide what’s best for your family. If you’re a healthy individual, a high deductible plan might be best for you. On the other hand, if you have recurring medical issues or a major medical event (like having a baby), you might want to consider a low-deductible plan. Alternatively, there are also health sharing ministries that like insurance, cover medical care.
Long-term disability – Long-term disability insurance covers you in the event you are unable work because of sickness or injury. Typically, you should have coverage for 65% of your income. If you have a fully funded emergency fund, short-term disability insurance is not necessary. You’ll pay more in premiums than if you just save up the money to cover it.
Life insurance – Many people are underinsured when it comes to life insurance. You need life insurance 10-12x your annual, pre-tax income. Additionally, if you’re a stay-at-home mom, you still need life insurance of at least $250k. This will ensure your spouse has enough money to pay for childcare.
Long-term care – Around age 60, it’s time to start thinking about long-term care insurance. This will cover the cost of a nursing home (which are wildly expensive), and/or in-home care. Don’t pass the financial burden onto your children or other family members.
Identity theft protection – Identity theft is on the rise as hackers become more skilled. Be sure to have coverage that includes protection and recovery services. This will save you countless hours if you are a victim of identity theft.

Read my detailed review of my personal health insurance alternative, Chr istian Healthcare Ministries!

6. Build an Emergency Fund

70% of Americans live paycheck to paycheck and could not survive an unexpected financial emergency.

You CAN be prepared for when financial challenges come. If you’re prepared, financial challenges become inconveniences instead of crises .

Identify your household expenses. The key word is expenses—not household income per month. If you lost your job, what expenses would have to be paid? Total how much it takes you to live per month with just the necessities.
Save up 3-6 months of household expenses. Whether you save 3 or 6 months is completely up to you. If you’re income is stable, 3 months of expenses is probably fine. If you’re self-employed and/or have irregular income, you might want to have closer to 6 months of expenses saved.
Park in a high-yield savings account or money market account. If you keep this money in your checking account, it can be tempting to use it for something else. Additionally, if your debit card is stolen, you are at higher risk. I recommend keeping your emergency fund in a high-yield savings account or money market account. Be sure that whatever account you keep it in, you can write checks out of the account without penalty.

You can’t avoid money challenges; they will come whether you want them to or not. However, you can control whether you are as best prepared as you can be!

Build your emergency savings, so when the rainy day comes (it will), you are ready! Plus, the peace of mind having an emergency fund brings is priceless.

⭐️ READ:

7. Create a Budget Blueprint

The best way to carry out your money goals is to create a detailed monthly budget. When you create a budget, you can tell your money where it’s going. Whether your goal is to save more, invest more, or pay off debt, creating a budget allows you to free up your income to do all those things! A budget bridges the gap between your financial priorities and reality. Many times, the severity of our frustration is the difference between our priorities and what is actually happening. Utilize a budget to prioritize your monthly expenses and cash flow.

Your budget is the foundation of your personal finances.

Write down total expected net (after-tax) monthly income.
List all fixed monthly expenses.
Brainstorm irregular/seasonal expenses & convert to monthly amounts. Include both expected and unexpected expenses (annual insurance premiums, medical bills, car repairs & maintenance, home repairs & maintenance, etc. ).
Set financial goals & add to budget.
List discretionary ( adjustable ) monthly expenses.
Continue until total income - total expenses equals zero .
Track your spending & adjust as needed.

In order to be successful, your budget needs to be realistic, flexible, and detailed. Furthermore, I'd encourage you to have a written budget. This makes it official, memorable, and holds you accountable!

✏️ BUDGET WORKSHEETS & TEMPLATES:

MONTHLY BUDGET TEMPLATES

If you're tired of spending hours every single month budgeting and tracking your spending, an excel budget template kills the stress of time management.

This excel budget template boasts:

* A separate tab for every month
* Monthly overview chart to quickly see your budget to actual numbers
* Color coded/formatted cells to show over and under budget amounts
* Instant download start right now
* Error proof certain cells are locked so you can't mess up the formula's
* Estimated & actual inputs

If you're a time-sensitive person, the excel budget template will work wonders for you and your finances! Furthermore, you can print if you'd like!

In addition to the monthly budget template, I created a budget by paycheck excel template!

This excel budget template allows you to take total control over your money:

The budget by paycheck method of budgeting is my favorite. I like to take the big picture and break it down into simple, effective steps.

In other words, I like to have a specific, detailed plan to execute.

If you are the same (detail-oriented) , the budget by paycheck method will suite your fancy!

Long-term Goals

Long term financial goals that will take a year or longer to complete. Typically, these are your "big-picture" goals that will ultimately lead you to financial freedom.

8. Save up for Large Future Expenses

Regularly set short-term, mid-term, and long-term savings goals. In other words, you should always be saving for something, because there's always something to save for. Use sinking funds to set aside money on a monthly basis for future expenses.

Down payment on a house.
New baby/maternity leave.
Car replacement.
Major home renovation.
Real estate investing.

In short, to set up sinking funds simply take the total savings goal and divide by months until due or target due date. For example, if you estimate you'll need a new vehicle in five or so years, and it will cost about $30,000, you'll need to set aside $500 per month for five years.

9. Track your Net Worth

Tracking your net worth is another visual motivator to make smart money decisions. Your net worth is the true measure of your wealth. While many people think that having a high income is equated with being wealthy, this is a huge misconception.

Anyone can make a lot of money. It takes financial discipline to be wealthy. If you make three figures but your lifestyle costs three figures, you’re not wealthy. You’re broke.

You can calculate your net worth with a simple equation:

NET WORTH = TOTAL ASSETS – TOTAL LIABILITIES

Assets include financial assets (retirement accounts, cash on hand, savings accounts, etc.) and non-financial assets (the fair market value of vehicles, your home, and other possessions).

Liabilities include any debt you have against those assets, and any consumer debt. Examples include home mortgage balance, vehicle loans, credit card debt, student loans, home equity loans, etc. Includes all debt in your name.

If you think about this equation logically, it makes sense. If you own a home worth $300k and your mortgage balance is $225k, the $75k difference is what you would pocket if you sold today. You wouldn’t pocket the $300k, you would have to pay off your mortgage.

Keeping track of your net worth will give you an accurate picture of your wealth and help you stay motivated! Use this net worth tracking template to understand and track your wealth.

10. Pay Off Home Early

While many people see renting as wasteful , they don’t think twice about their 30-year mortgage and how much money they are paying in interest. Depending on the size of mortgage and interest rates when you buy, you could save tens of thousands of dollars or more by making a goal to pay off your home early!

For example, if you have a $200k home loan, over 30 years, at an interest rate of 3%, you will pay $103,554 in interest. Consequently, in total, you will pay $303,554 for a $200,000 home. Wow, what a waste! Yes, you get something for it (as opposed to renting), but not for a good deal.

But what if you make extra payments and off your home early?

Continuing with this example, if you pay $200 extra on your mortgage per month, you will save $30,910.34 in interest and shave 8 years off your mortgage! Furthermore, if you pay $500 extra instead of $200 per month, you save $53, 081 in interest and shave 14 years off your mortgage!

Make it a goal to pay off your home early – in 15 years or less. If you can't pay off your home in 15 years or less, you're probably not ready to buy a home yet.

Just $200-$500 extra per month makes a huge difference. That’s most people’s car payment... hope you like that car ��

11. Be Generous

Generous people are happy people. Even more, generous people get much more joy in giving than they do in spending on themselves.

If you're a Christian, generosity is a command . God commands us to tithe and give towards his Kingdom work for our benefit. Tithing is the scalpel He uses to perform heart surgery. It keeps our priorities in order. Being outrageously generous should always be one financial goal of the believer.

Too often, we get our security from our money. We hold it with a closed fist. We need to trust that God will provide, and when He does, we need to be outrageously generous. Ultimately, the money is not ours. It's His!

Be generous this year. For you that might be $100, or $1,000 or $10,000! God sees the heart of the giver, and God loves a cheerful giver (2 Corinthians 9:6-7).

Printable Savings Challenges: Transform Your Money Habits

Thu, 10 Dec 2020 21:27:00 GMT

Utilize a printable money saving challenge as a fun and engaging way to to develop strong savings habits. A key part of money management is saving money. Start a savings challenge to save extra cash, putting you one step closer to your financial goals!

Have you found yourself wondering why there is never enough money at the end of the month? Do you feel stuck trying to break the cycle?

If so, savings challenges are an amazing tool at your disposal to jumpstart your savings goals!

Benefits of Savings Challenges

A free printable money saving challenge has many benefits. To name a few:

Visual reminder of progress. According to research , visual learning triggers emotions, improves comprehension, and sticks better in our long-term memories.
Offers creative and specific ways to save money for unexpected expenses that come up during the year.
Works whether you're on a tight budget or have a flexible budget. Everyone has a different financial situation. Here you'll find a savings challenge for every budget!
Breaks down larger amounts into smaller, more manageable steps. When we look at the end goal, it can seem impossible to reach. However, if we break it down into small steps, it helps us stay motivated.
Deters poor and/or impulsive spending habits, increasing financial literacy. Personal finance is 80% behavior and 20% head knowledge. If you can change your behavior, that is the most important thing!

There aren't many downsides to utilizing a savings challenge free download.

Where to Keep your Savings

You can keep your savings in a piggy bank, bank account, or even a high-yield savings account . Where you keep the funds will depend heavily on the total amount and time limit of the savings challenge. For small savings challenges, it's smart to keep the money in a basic bank savings account. For bigger savings challenges, take advantage of the above-average interest rates of high-yield savings accounts.

Free Money Saving Challenge PDF

Get my free savings challenge printables below! Simply sign up and get the savings challenge printable pdf free download sent right to your inbox to start the instant download.

The free printable savings tracker includes a savings challenge printable for every money challenge listed below. To create your own DIY savings challenge, download the blank monthly savings challenge printable instead!

Short-Term Savings Challenges

$465 30-Day Money Saving Challenge

The 30 day savings challenge is a short but fun challenge that will give you a quick win and an easy way to save money quickly. By the end of the challenge, you'll have almost $500 to put towards your financial goals! Completing this challenge is the perfect way to set aside a little extra money when you're on a tight budget.

Download the free savings challenge template and start now!

$1,000 Emergency Fund

The baby emergency fund savings challenge is to save $1,000 as the first step of Dave Ramsey's 7 baby steps. This serves as a starter emergency fund. Save more money each week by multiplying your savings by 10 with this straightforward money-saving challenge.

Download this weekly printable money saving challenge to have your emergency fund complete in just 14 weeks!

100 Envelope Challenge

To complete the popular 100 envelope savings challenge:

Start with 100 envelopes and label them 1-100.
Put the envelopes in a basket, bin or other storage container.
Everyday for 100 days, randomly pick an envelope and put the amount of cash that is on the label inside the envelope.
Put the envelope somewhere safe and repeat the process for 100 days.
Deposit your $5,050 dollars and decide what you will do with your cash! You can save it, invest it, pay off debt, or spend it.

Download the free 100 envelope challenge chart now!

No Spend Challenge

he goal of this challenge is to become more mindful of spending habits and cut unnecessary spending. You'll find you can save a significant amount of money by simply being more conscious of your spending choices. A prerequisite to saving money is being aware of you're spending it.

To complete this challenge, only spend money on necessities for a set amount of time. This means cutting out unnecessary expenses like eating out, buying new clothes, or indulging in entertainment activities.

The easiest way to successfully do a spending freeze is to not spend money on days you work. If you’re like me, and don’t work outside the home, a spending freeze can seem impossible. After all, how else am I supposed to burn another hour with the kids before dad gets home??

Here are some more tips for successfully completing a spending freeze:

Exercise instead. When temptations arise, get on your workout gear. The endorphins from your workout will help curb impulsive spending behaviors.
Take a food inventory. For moms, the biggest hurdle will be not going to the store for any groceries. First take inventory and build meals based on what you have at home.
Make coffee at home. Instead of hitting the espresso stand, make your own at home for a week and save $25.
Work on getting organized. If you find yourself with extra time, focus on getting your finances, meals, kids schedules/activities, etc. organized!

Don't forget to download the no spend savings challenge printable pdf to start!

Long-Term Savings Challenges

Classic 52-Week Savings Challenge

This classic money saving challenge allows you save money is a simple, easy-to-follow way. Simply save the amount that correlates to the week you are on over the course of a year. On the first week, save $1. On the second week, save $2, the third week save $3, and so on so forth for 52 weeks.

At the end of the year you'll have saved over $1k to put towards your financial goals!

The classic challenge is great for any budget, because you never have to save more than $52 in one week!

Download the free printable 52-week money challenge template shown below! Complete the blank 52 week money challenge printable by coloring in each week as you go!

$2,756 Double 52 Week Savings Challenge

The double classic 52-week money challenge is another version of the classic 52-week challenge. Instead of increasing the deposit each week by $1, the deposit increases by $2. For example, the first week you will save $2, The second week save $4, the third week save $6, and so on so forth.

By the end of this challenge (week 52), you will have saved $2,756.

$10,000 Savings in 52 Weeks

If you're up for a tough challenge, try the $10k in 52 weeks challenge! Saving 10,000 might sound like an impossible feat, but with a clear savings plan you can achieve this lofty goal!

This is a great way to save for a new vehicle, kid's college, retirement, or a down payment on a home!

By the end of this challenge (week 52), you will have saved $10,000.

I recommend keeping your savings in a high-yield savings account, which boasts above-average interest rates (typically 4-5%). You can lean more about them here.

Penny Challenge

Saving spare change through the penny savings challenge will give you $667.65 at the end of the year. To complete, simply save $0.01 on day 1, $0.02 on day 2, and so on so forth for 365 days.

In Conclusion

Utilize money challenge sheets to save money quickly, whether you have large or small income. Savings challenges start by putting our savings goals into perspective. Looking at the final goal can be discouraging. However, once we break our goals down into monthly, bi weekly, or even weekly amounts, they suddenly seem achievable!

Be sure to download the free savings challenge sheets!

The Best Frugal Gift Ideas Under $50 for 2020

Wed, 25 Nov 2020 19:13:00 GMT

If you don't love breaking the bank every holiday season, this post detailing the best frugal gift ideas is for you!

Let's be honest, sometimes we have a hard time paying for Christmas presents because we spent the majority of our Christmas budget on ourselves ;)

It seems like I struggle every single year to think of unique and creative gifts for people!

We don't buy a ton of Christmas gifts, but what we do buy I like to be valuable to the person receiving it!

Here are some gift ideas that I thought would be a great idea for pretty much anyone!

Related Content:

FRUGAL GIFT IDEAS FOR EVERYONE

1) GIFT CARD PACK

What I love about buying gift cards is that you can a lways get them at a discount.

If you're not buying them at a discount, you're seriously missing out. I buy all my gift cards from Sam's Club or use Groupon and never pay full price.

For instance, you can buy $50 of Starbucks gift cards for $40 through Sam's Club!

The higher dollar amount the gift card, the higher the discount!

Buy gift cards in bulk and have a gift for literally anyone- spouse, coworker, child, teacher, etc!

2) STORE MEMBERSHIP

Why not give the gift of a store membership?

Costco and Sam's club (only $35 after $10 gift card for joining) are awesome wholesale membership stores!

3) COFFEE SUBSCRIPTION

I recently signed up for Black Rifle Coffee Co.'s coffee subscription after trying their whole bean espresso... amazing! I don't have to worry about running out of coffee beans anymore, they deliver to my doorstep on a custom to me schedule!

Coming from a family of small business owners, I wanted to try and diversify products I buy. After trying their coffee on a whim, I was hooked .

My favorite part? They are VETERAN OWNED & over 50% of their staff are veterans.

⭐️ ⭐️ Through my link you can get 20% off your first order!

This is a great gift for any coffee lover! You could cover the subscription for 3-6 months, or however long you can afford!

An awesome feature is that you can choose to have 1 bag, 2 bags, 4 bags, etc. delivered, so you can customize for your budget.

4) BOTTLE OF WINE

If you're budget isn't big this year, you can't go wrong with a classic bottle of wine! Put a bow on it and call it good. Let's be honest, half the excitement of Christmas presents is how they're wrapped :)

5) CHATBOOKS PHOTO BOOK

Chatbooks takes high quality photos from your camera roll, Instagram and/or Facebook and converts them into a photo book!

You can get these babies delivered to you (or someone else) for under $25!

This is the perfect solution for people who don't have hours to spend putting photo books together on other photo book sites!

⭐️ Click here for $10 off your first order using my link!

6) FREEZER MEAL PLAN/MEMBERSHIP

If you have a busy mom in your life with lots of littles, or one who is expecting a little, a freezer meal plan or dinner meal plan is a fantastic gift to give!

For freezer meals, using MyFreezEasy you can sign them up for a monthly, quarterly, or annual membership!

They will get instant access to recipes and instructional videos complete with customized meal plans and shopping lists sent directly to their phone!

If you're thinking more a traditional dinner meal plan instead of freezer meals, $5 meal plan is a great service.

It costs $5 per month and every meal should average to cost less than $5 to make!

A meal plan is delivered right to your inbox every week complete with a shopping list organized by ingredient. If you don't like any of the recipes, you can go to your member portal and build your own meal plan!

For a full review of $5 meal plan, see this article !

7) DIY MASON JAR GIFTS

I am SO not in the crafty department, but I found a post with 25 adorable mason jar gift ideas that are extremely budget friendly! If you're crafty and like to save money, this is your jackpot!

8) BOOKS

Don't under estimate the value of books! Of course, my favorite book to give is Dave Ramsey's Total Money Makeover. This book honestly changed our lives and makes a great gift for everyone.

During the holidays, you can get most of Dave's books for $10! Just head over to their website.

9) BAKED GOODS

Who doesn't love some good baked goods? Not ideal if your New Years resolution is to get on a diet... but it's all about moderation, right?!

You can easily make baked goods in bulk and package them all cute for gifts! This is perfect when you're gifting to other family members.

10) CLOTHING

While this seems pretty standard, it's a gift that you can get for a reasonable price that is also a necessity. Get a more expensive piece of clothing (under your gift limit) that the person you are buying for normally wouldn't buy for themselves!

My favorite place to shop for reasonable priced boutique clothing is Jane.com.

I was introduced to their website by a coworker and love it! You support small business because thousands of boutiques sell their clothes on Jane.

OTHER WAYS TO SAVE ON HOLIDAY GIFTS

1) NON- CREDIT CARD CASH BACK

No, i'm not talking about credit cards. That's the greek word for demon. Kidding.

Since we don't believe in credit cards, for cash back I use Rakuten , which gives you cash back for both online and in-store purchases!

They even do double or triple cash back offers during the holidays!

I installed the browser extension on google chrome so when I visit a site that offers cash back, I automatically get a pop up showing me the cash back:

They also have a mobile app that you can use when purchasing in store! This is easy money to save, all you have to do is click the button! Once you earn $50 or more, they will kick out a check to your account!

2) SHOP WITH CASH

I highly recommend doing your Christmas shopping with cash, especially if you tend to overspend on gifts!

You can check out my cute floral watercolor cash envelopes !

Only take the amount you've budgeted for gifts in cash to the store.

This will change your behavior , which is the source of the spending problem!

3) MAKE MORE MONEY

If you want to bless others but don't feel like you have the funds, try and make some extra cash before the holidays!

Do NOT bust your budget without having the cash to do so.

Instead, wait until you have the extra money. Some great ideas to earn additional cash include:

I hope this gives you some good ideas for your Christmas shopping!

Keep an eye out on the blog for a Black Friday guide! I'm working on putting together the BEST deals to shop online or in-store.

Cause everyone hates deals that aren't really deals.

Don't worry, I will be your Black Friday warrior ;)

10 Practical Money Skills You Should Know

Tue, 24 Nov 2020 04:22:00 GMT

One thing I’ve learned from being a CPA, money blogger, and friend, is that common-sense, old-fashioned, practical money skills are just as much (if not more) useful and applicable today than in the past.

Even further, I believe because many lack practical money skills today, they find themselves living paycheck to paycheck.

Why is this?

Consumer money behaviors have changed drastically over time in response to a changing marketplace, culture, and generation.

A recent survey by BigCommerce found that online shopping (led by Amazon) has turned us from after work and weekend shoppers to 24/7 shoppers. The study reported 43% of consumers shop while in bed, 23% shop at work, 20% shop while on the road, and 20% shop while in the bathroom.

We’re ALWAYS shopping.

Additionally, because we live in a culture plagued by instant gratification, as a byproduct, we naturally have a sense of entitlement.

We want a nicer car than our parents, a bigger house than our parents, and a fancier vacation than our parents, RIGHT NOW.

Don’t fall for it. Our culture is screaming at you something that will destroy your finances.

So how do you set yourself up for success financially?

Follow these practical money skills outlined below to get your money under control.

10 PRACTICAL MONEY SKILLS

Outlined below are 10 practical money skills that will help you become financially literate.

1) HOW TO BALANCE A CHECKBOOK

First, let’s get one thing straight, checking your bank account balance and balancing your checkbook are not the same thing.

Today, many people simply check their bank balance every so often just to make sure they aren’t over drafting. If they don’t spend more than what’s in their account, they think they’re in a good place financially.

WHY RECONCILE?

Consider this example:

It’s Monday. You quickly login and check the balance of your checking account before rushing off to do your daily tasks. You have $2,000 to work with until next week. Great! Should be more than enough, you think to yourself. You know there’s one or two bills that will automatically come out of your account between now and then, so you take that into account.

Come Saturday morning, you login again and check the balance. $500?? How did it get so low so quickly?? Uh oh. The two bills that are due haven’t even been processed yet! What in the world?? You scroll through the transactions.

Oh, yup. Forgot about our semi-annual insurance premium that automatically comes out of the account. Oops, also forgot about the check you wrote the babysitter two weeks ago that she finally cashed. Looks like your husband ate out a few times on his lunch break at work.

Well, shoot. You were thinking you’d FINALLY be able to buy that new couch that’s long overdue.

Guess it will have to wait until next paycheck, along with so many other things!

Rinse, repeat.

STEP BY STEP

This example shows the practical benefit of reconciling your account. Additionally, there are psychological benefits, you think and behave differently with your money when you know where it’s going.

A common misconception is that because most people don’t use checks anymore, account reconciliation is not necessary. This couldn’t be further from the truth!

In fact, I’d argue in our digital age, it’s even more important to reconcile your account.

Here’s how to do it.

It’s up to you how often you want to reconcile your checking account.

If you have a nice cushion in your account, you might only do it weekly. If you’re meticulous like me, you do it at the end of every day.

You’ll find that as you get the budgeting process down, it’s easier to reconcile your checking account daily since you’re updating your budget daily for actual expenses that occur.

Reconciling your checking account is simple:

The reason this is your TRUE account balance is because at any time, the checks you’ve written could be cashed or deposits recorded.

If you make financial decisions based solely on your bank balance, you are making decisions that are not based on reality.

Keep track of your TRUE account balance at least weekly, if not daily!

2) THE DANGERS OF DEBT

Although debt is often touted as something that can be ok (even good) if managed well, it is dangerous. Here’s why.

Remember, the convenience of a card is costly . Debt creates enough risk to offset any potential benefit.

If you’re currently in debt, it would be wise to get out as quickly as possible. We paid off over $20k of student loan debt in 12 months while living on one income!

Learn more about how we followed D ave Ramey’s debt snowball .

3) HOW TO BUDGET

If you learn one old-fashioned skill, please learn how to budget.

A budget is a safeguard against all kinds of financial turmoil.

The reason many people always feel so out of control financially is because they don’t have a plan. Or, they have a plan- ish.

While not having a plan might work in the good times, it doesn’t work in the bad times.

A good plan will work in both the good and bad times and will help you be ready for both!

The beauty of a budget is that because you are intentional with what you do with your money, it takes the stress out of your finances!

The goal of budgeting is to assign and spend every single dollar on paper before the month begins.

Don't think of a budget as a bunch of rules and restrictions. Instead, it's freeing because you give yourself permission to spend without guilt knowing that you have a plan!

To get started budgeting, I have TONS of resources. You can start by downloading my free monthly budget template.

BUDGETING HELP:

BUDGETING TEMPLATES:

4) COMPOUND INTEREST (A LITTLE GROWS TO A LOT OVER TIME)

The secret to becoming an everyday millionaire is to understand and utilize compound interest. If you commit to learning. more about any of the practical money skills laid out, let it be compound interest. It's that important.

Simply put, compound interest is interest earned on interest. The best way to explain is by example:

If you deposit $100 into a mutual fund and earn 5% interest on your deposit during the year, you will have $105 at the end of the year. The next year, if you again earn 5%, you will earn interest not only on the $100 you initially deposited, but on the $5 you made the previous year as well.

Therefore, you will have $110.25 at the end of the second year ($105 x5%).

This example shows the power of compound interest and time! If you start investing early, you are way ahead of the game because your money has more time to compound!

Therefore someone who invests $1,000 at age 20 and doesn’t touch it until age 60 will have more money than someone who invests $20,000 at age 40!

Time makes a huge difference. TIME IS MONEY.

Now that you know how compound interest works, use it to your advantage!

5) HOW TO SAVE

The ability to save money is an invaluable skill. By saving money, you are setting yourself up for success in the good AND bad times.

You need two major savings accounts at the very least.

First, you need a savings account with 3-6 months of household expenses in it. This is called your emergency fund. The more unpredictable your income, the closer to 6 months you should have in the bank.

Second, you need a saving (s) account for large, upcoming purchases and irregular but predictable expenses. This includes, but is not limited to, major household repairs, a new car, major car repairs, college funds for your children, vacations, etc. Often times, these savings accounts are called sinking funds.

A major complaint amongst Americans is that they feel like various expenses are constantly sneaking up on them. If you want to feel more prepared, budget and save for these expenses year-round with sinking funds.

Be sure to keep track of your sinking funds so you know exactly how much of your savings is earmarked for what.

This is the template I use to track my sinking fund balances!

Learn more about how to set up sinking funds from the posts below:

Although these seem like common sense tips (because they are), the statistics show that most people are not following them. Studies show that 8 out of 10 Americans are living paycheck to paycheck and would not be able to cover a major financial emergency!

6) TAKING CARE OF WHAT YOU OWN

We live in a disposable world. What I mean by this is that if something has any minor defect, we don't like it, etc., we simply throw it out and get a new one. Because of this, I think we've lost motivation to take GOOD care of what we own.

I love buying quality products that last a long time, but the product itself is only half the equation. Part of the responsibility for the longevity of the product is on me, the buyer.

Take good care of your things that you work hard to pay for and you won't have to replace them as often.

Practical money skills are not new, hard to comprehend ideas. Rather, they are old-fashioned common-sense skills. Sometimes. we just need a refresher :)

7) GETTING THE MOST BANG FOR YOUR BUCK

One of the most important money concepts you can learn is value . By definition, value is t he importance, worth, or usefulness of something.

Value is what you need to take into consideration before every purchase you make.

A good exercise to help you gauge the value of an item is to convert the purchase into hours worked.

For example, if you make $25/hr and there is a sweater you really want for $50, you had to work 2 hours to pay for the sweater. Is that worth it to you? Will the sweater give you enough value in return?

Managing money well isn’t about buying the cheapest things possible to save money. Rather, it’s about spending your money in a way that you get the most value for your money.

You work hard for your money, you want want you purchase to reflect that.

8) DELAYED GRATIFICATION

There is an opportunity cost to everything.

While I would LOVE to have the latest and greatest vehicle, furniture, etc., I’m not willing to sacrifice my future for it. The opportunity cost to buying outside our means is saving for retirement.

That’s not to say there is something inherently wrong with having expensive things. Rather, we are going to live within our means so we can save diligently for retirement.

DELAY GRATIFICATION BY LIVING WITHIN YOUR MEANS

Keep in mind everyone’s means are different.

We recently bought a used 2018 van and paid cash. That was within our means. For someone else, it might be within their means to buy an Escalade and live in a 5,000 square ft house.

You can gauge whether you are living within your means by assessing three major things:

1) Do you have a good chunk of money left over at the end of every month that you can save and/or invest? A good rule of thumb is to save 15-20% of your gross income every month.

2) What is your net worth? You can calculate this by taking your total assets – your total liabilities.

Assets include the current selling value of your home, vehicles you own (not lease), cash on hand, retirement account balances, etc . Liabilities include any debt (credit card, student loans, vehicles, home mortgage, payday loan, etc.) you have outstanding.

3) What does your retirement savings look like? You should have at least half of your total annual income saved in retirement accounts by age 30. How are you doing? Are you on track? If not, why? It’s likely a problem stemming from not living within your means.

9) STEWARDSHIP

When thinking of practical money skills, stewardship probably doesn't come to mind right away. However, ultimately, everything you do with your money reflects how good of a steward of it you are.

As a Christian, I know that ultimately my money belongs to God, and he entrusts it to me to steward well.

When we think of our money this way, we treat it differently. Our behaviors change.

Constantly remind yourself that you are merely a steward, everything you have been given belongs to God.

How much more does this cause us to be careful , prudent , and generous with our money?!

10) THE JOY IN GIVING

The Bible tells us that is more blessed to give than to receive. While most of us know this to be true, we still struggle to give to others because of our selfish human nature. We all have a natural tendency to look out for our own well-being first.

The same is true with how we handle our money.

In principle, we’d like to think that we’re generous because after we do our duty to tithe, we’re in the clear! Game on. Time for the new furniture, new vehicle, or whatever else suits our fancy in the moment.

Let me be clear, owning expensive things is not inherently bad! Having a nice car or nice furniture is not sinful. We become sinful when we don’t follow God’s command to steward wisely what He gives us, including our wealth.

So, while there is no magic number or equation for how much you should give, seek to have the heart of a giver.

Remember, what we do is who we are. Are you generous with your money? Has someone ever given generously to you? How did that feel?

I’ve heard it said that our wallet is a scalpel that God uses to perform heart surgery- our giving reveals the condition of our hearts!

WHERE TO START

By now you're probably feeling a bit overwhelmed by all the things you SHOULD know.

I have good news- the best way to get from where you are to where you want to be is by taking small, consistent steps :)

Master one of the practical money skills mentioned above. Then, master another. So on and so forth.

Remember, Rome wasn't built in a day!

YOU CAN DO THIS :)

31 Simple Money Management Tips Successful People Always Follow

Tue, 03 Nov 2020 19:35:00 GMT

At the end of the year, we start to think about our habits, including our money management habits. If you're reading this and thinking next year you need to start doing things better, I'd challenge you to keep reading and start today .

I'm not one for New Years resolutions because I believe when things matter to us we take immediate action.

In other words, if you don't have a good enough reason to motivate yourself to start today, you won't in January either.

As we approach the end of the year, now is a good time to reflect, evaluate, and make change.

MONEY MANAGEMENT TIPS FOR THIS YEAR

These are some of the top money management tips I think everyone should know!

1) Get a grip on where your money is going.

First things first, to manage your money better you must know where it is going.

If you do not currently track your spending, this will require a little bit of work. Here is how to evaluate your spending:

Are you surprised by your spending? What categories can you trim down?

2) Income- Expenses must be positive. You cannot run your home at a deficit.

Is your total spending in any of the months you evaluated more than your total monthly income? If so, you need to make some changes. You cannot live spending more than you make. It will lead to financial ruin.

3) Plan your spending using a budget to avoid money stress.

A budget is your best defense against overspending. When we plan everything on paper before the month begins, we can spend with confidence, knowing we've done our due diligence.

4) Your budget should be a zero-dollar budget.

After subtracting budgeted income from budgeted expenses, your bottom line should total zero. Every single dollar you plan to receive should be assigned before the month begins.

5) If married, your spouse needs to agree on the budget.

If you are married, it is crucial that you and your spouse agree on how your money should be spent.

Money problems are the number one cause of divorce. If you have a reluctant spouse, change your approach. When we first started getting our finances together, I did not approach my spouse the right way. Your approach matters.

Once you get on the same page, it is important that you:

❤️ Related posts:

6) Try to get one month ahead on all your bills.

Imagine being one month ahead on all your bills! This doesn’t mean you pay them early. Rather, this means you always have one months' worth of expenses cushion in your checking account. You always pay your current months bills with last month's income.

Click here for detailed instructions on how to get one month ahead on your bills!

7) Budget from your priorities.

Create your budget based on your priorities. This will look different for everyone. Your unique budget will not look the same as anyone else's, because you have different priorities. Budgeting this way takes away the guilt of spending because every dollar is not only planned, but it’s ordered based on what is most important to you.

For example, let’s say you have $800 until you get paid next. Your financial obligations until then include daycare ($250), groceries ($50), utilities ($200), car insurance ($100), and your credit card bill ($325). You also need new tires soon ($500). You know that you won’t be able to cover all these obligations with $800. So, what do you do?

You plan your spending based on the cash you have today in a way that reflects your priorities.

Here is how it might look:

This is how you would distribute your money based on your priorities. When people realize they don’t have enough cash to cover their financial obligations, they panic. Instead, plan based on your priorities.

Do this until you get current on everything, and then create a new plan for your new cashflow, goals, and priorities.

8) Have a miscellaneous budget category, but do not abuse it.

Inevitably, there will be expenses every month you don’t plan for. Am I the only one who constantly forgets about weddings, birthdays, and baby showers ? While budgeting will hopefully mitigate many of these surprises, a miscellaneous category should be in the budget to cover unplanned expenses.

9) Make sure there is a “fun money” category.

Whether your debt free or in debt up to your eyeballs, you need to have a fun money budget category. The amount you budget will differ depending on which situation you’re in, but there is a need for it in both situations.

When we deprive ourselves, we often end up binge spending and blowing the budget! Then we feel intense guilt and buyer's remorse and are tempted to throw the towel in on the whole budget thing.

Plan against this temptation, have a fun money or blow money budget category. Use this category to spend money on whatever you’d like without guilt.

The fun money budget category is especially important if you’re married. Have a separate fun money category for each of you that can be spent on whatever you’d like.

One rule- you are not allowed to criticize your spouse for what they use their money for. If they stay within the agreed upon amount, let them do as they please. This will prevent A LOT of money fights.

10) Make a budget & bill schedule using the budget by paycheck method.

Often people get hung up on how to align their budget with reality . They make their monthly budget, but when the money comes in and bills come due, they aren’t sure how to reconcile that in their budget.

For example, let’s say a husband and wife are making their budget. Together, they take home $6,000 per month. The wife is paid weekly, on average taking home $500 per week. The husband is paid on the 20 ^th every month, earning a salary of $4,000.

When they create their budget, they plan spending totaling $6,000. However, since they are cash strapped the first half of the month, they aren’t sure how to decide what budget categories to “fill” first.

There are a few ways to handle this. First, download my free budget by paycheck template to get started.

HOW TO ALLOCATE YOUR SPENDING & INCOME

The first way is to get one month ahead on their bills. This will take some time. To achieve this, anytime the wife earns more than expected (budgeted), or they are under on a budget category, they should apply that money to their “get one month ahead” fund.

Once they save one month's worth of expenses, they should always keep that in their checking account as a buffer.

This way, they are always living on the prior month's income, and it takes the “cash strapped ” feeling away.

The key is to not spend your buffer amount on things that aren’t in the budget. Leave it in your checking account as a true buffer between the first half and second half of the month cash flows.

The second way is to create a bill pay schedule. Let's say a few of the larger expenses aren’t due until the last day of the month or first week of the next month (utilities, rent/mortgage, insurance, etc.). Though the bill might come earlier, it isn't’ due often until a few weeks later.

The couple could decide to pay the larger bills that aren’t due until the first week of the following month with his income on the 20 ^th . With her income, they completely “fill” the fun money, date night, groceries, etc. budget categories.

In other words, they create a bill pay schedule alongside their budget.

11) Use cash for budget categories you tend to overspend on.

Research shows that when consumers use cash instead of a debit or credit card, they spend less. For budget categories you struggle to stick to, use cash envelopes! Categories that are great for cash envelopes include groceries, fun money, gifts, haircare, etc.

Download and print my free cash envelope templates to get started!

12) Use an excel budget to save time budgeting.

If you’re an excel user, an excel budget is a fantastic way to save time budgeting. Additionally, the formulas make creating a bill pay schedule with a paycheck-by-paycheck budget super quick! I keep our paycheck budget in excel, you can use my exact template too!

⭐️ EXCEL PAYCHECK BUDGET
⭐️ EXCEL STANDARD BUDGET

13) Download & use Every Dollar app for mobile budgeting.

Dave Ramey’s Every Dollar app is a free budgeting tool you can use to track your spending. Upgrade to Ramsey Plus to connect the app to your bank account. Personally, I create a paycheck budget in excel, and then I use the free app to track my spending.

14) Cut up your credit cards.

Cutting up your credit cards means no more minimum payments to add to the budget! It’s no secret I don’t have warm feelings towards credit cards! In fact, we do not have any credit cards! We’ve found that living a 100% cash-flowed lifestyle keeps things simple and keeps us away from temptation.

15) Set aside 3-6 months' worth of expenses in an Emergency fund.

A fully funded emergency fund for financial hardships gives you security. Of course, we know our security and comfort should not be in money. Rather, it should be in God alone. We trust that He will provide, but it is our job to steward wisely what he has given us, including planning for the future.

An emergency fund is 3-6 months of household expenses set aside for emergencies such as a job layoff, major household repair, etc.

The riskier your life is, the closer to 6 months of expenses you should have saved.

16) Save year-round for expenses that catch you off guard.

Do certain expenses always seem to sneak up on you? Christmas? School registration fees? Semi-annual insurance premiums?

When you aren’t prepared, these gotcha expenses always seem to hit at the worst possible time.

Before we were budgeting consistently, it seemed like these expenses came up right after the car broke down, the heater needed to be fixed, and our yearly insurance premium was due.

Here’s how you can start saving for irregular expenses year-round by using sinking funds!

HOW TO USE SINKING FUNDS

17) Save up and pay cash for large purchases.

Similarly, use sinking funds to save up for large purchases over time. Set realistic, specific, attainable goals. If your vehicle is old and has lots of miles on it, start saving for a new one now. It could take 3-5 years, and that’s okay! The point is to avoid using debt to fund your purchases and cash-flow them instead.

18) Keep savings funds separate from your regular checking.

At a minimum, keep your sinking funds and savings in one separate account from your checking account. This way, you’re not tempted to use the funds for something else. Alternatively, you can set up separate savings accounts for each sinking fund.

19) Pay extra on your mortgage when you can.

Can you imagine what life would be like without a mortgage payment? After your consumer debt is paid off and you’re consistently investing, use any extra cash to pay down your mortgage. You can take years off your mortgage by simply paying a little extra every month. Small amounts add up over time. So, whether it’s $100 or $500 extra per month, make it a habit!

20) Only use your emergency fund on actual emergencies.

When you really want something bad enough you can make anything an emergency .

The toddler spilled juice on the sofa again, so we need a new one.

We have had the same TV since we first got married, we need a bigger one.

While these are inconveniences, they are not emergencies. New furniture or a new TV should be cash-flowed by saving up over time, not using the emergency fund.

An emergency fund is for true emergencies, such as job loss, a large car or house repair needed, and things of that nature.

21) Keep a savings tracker in your planner.

I have a case of major mom-brain, and thus I consult my planner ALL DAY LONG.

I like to keep ALL my personal, financial, and business documents in one place. Every month, I simply print my new budget documents, hole-punch, and stick in my planner.

To keep track of your savings balances and sinking fund balances, get a planner template!

22) If you are going to pay for kids' college, start saving now.

If you plan to put your kids through college, it is a great idea to start saving now! Personally, we will not be paying for our kids' college, for a variety of reasons. However, many parents DO plan to pay for their kids' college, which is an awesome gift to your children! If you are wondering if it is time to start saving, it is. From the second you find out your expecting, it is time to start saving! College is a HUGE expense, I highly recommend consulting a financial advisor to see what college savings plans are available in your state.

23) Invest at least 15% of your gross (before-tax) household income.

To live close to the same lifestyle you do now in retirement, you should be saving at least 15% of your gross (pre-tax) income. To achieve the same lifestyle, you should estimate living off 80% of what you do right now. While this is a good goal, most people want to achieve a higher quality of life in retirement than what they have now. Because of this, investing 15% instead of the widely recommended 10% of income will help you achieve that goal!

24) Automate your investing contributions.

The best way to ensure you hit your retirement savings goals every month is to automate your contributions. By automating your contributions, you hold yourself accountable.

25) Open an IRA in addition to your 401(k).

An IRA (Individual Retirement Account) often has more investing options than an employer-sponsored retirement account, otherwise known as a 401(k). We follow Dave Ramsey’s recommendation to invest up to the employer match in our 401(k), and then invest the remaining amount to get you to 15% in an IRA.

26) Invest in mutual funds instead of single stocks.

Investing in single stocks is playing Russian roulette with your money. A better financial plan is to invest your money into historically high performing mutual funds. By doing this, you’ll see steady, consistent growth over time. Investing in mutual funds allows you to diversify your risk by investing in groups of stocks rather than single stocks.

27) Pay off all your debt BEFORE investing.

When we focus on one thing at a time, we are more effective . Before getting knee deep in investing, pay off all your consumer debt. Making the monthly contribution to your investment account will be a lot easier without any monthly payments draining your income.

We used the debt snowball method to pay off over $20k of student loan debt in 12 months! If you are currently in debt, start your debt snowball and pave the road to financial freedom.

28) Save for large purchases AFTER investing.

Don’t sacrifice your future for what you want today. In other words, learn to delay your gratification. Make sacrifices now, so that you can enjoy your life (and money) later. This means saving up for wants and needs happens with money that is left over after investing. Do not get into the habit of pausing investing to satisfy your material desires. It’s a hard habit to break. Stay the course, practice self-discipline.

29) Do not chase short-term gains or get rich quick schemes.

It sounds cliché, but if i t sounds too good to be true, it is. Warren Buffet puts it this way, if you aren’t willing to own a stock for 10 years, do not even think about owning it for 10 minutes.

30) Use a financial advisor.

Although I know quite a bit about investing, we use a trusted financial advisor to manage our portfolio. He ensures we have dotted all our I’s and crossed all our T’s. What I do not know, he explains. A good financial advisor is a great teacher. Do not invest in anything you do not understand. If your advisor does not take the time to help you understand where your money is going, do not give it to them to manage.

31) Learn about investing. Become self-educated.

Although I was an accounting major in college, most of what I learned about investing came from personal study. I have always been intrigued with personal finance, so I sought out to learn as much as I could. Spend time learning how to manage the money you work so hard to earn. It is not rocket science. Read, read, read. Then read some more.

⭐️ More on investing & retirement:

11 Ways to Quickly Save Money for Christmas

Sat, 10 Oct 2020 19:59:00 GMT

With the holiday season quickly approaching, I want to share how to budget for Christmas, so you avoid financial stress and have peace of mind, no matter how much or how little money you have for Christmas shopping.

Between the rising cost of food making Christmas dinner cost a small fortune, travel expenses, and the pressure to buy extravagant gifts because of what we see on social media, the Christmas season can be a huge financial stressor for many families.

In fact, in 2019, U.S. households spent an average of $1,496 on Christmas shopping.

Even more, over one-fifth of Americans went into debt for Christmas shopping. Of those that went into debt, 30% were relying on their tax return to pay it off.

Yikes! Nothing like counting your eggs before they hatch.

Allowing your Christmas spending to follow you into the New Year via credit card debt will create financial stress; not a great way to kick off the New Year!

The good news is with a solid financial plan for the holiday season – no matter how much money you make -- you can rest assured you’re not spending beyond your means.

SAVE MONEY FOR CHRISTMAS

While some of these ideas may seem extreme, keep in mind they are designed to help you save money fast .

1) Budget for every single person.

Set a realistic budget for every family member or person on your list. Make your gift list and check it twice! Then, stick to your list and your total Christmas budget (the hard part). Don't feel bad about declining to be part of a gift exchange if it's not in the budget this year.

I budget $75 per kid for Christmas, and that includes gifts and stocking stuffers. Our total budget for Christmas presents has to match what we've saved that year. In other words, we save for Christmas year-round, and whatever I have saved when I start shopping is what our total Christmas budget is- no exceptions.

For reference, in the United States, parents spend an average of $276 per child on Christmas gifts.

We have a large family and little kids, so we don’t spend near that per child. Once we have older kids we may spend more, but even then, I don’t think we will hit anywhere near the $276 range.

2) Track your spending.

As you begin your Christmas shopping, be sure to track your spending as you go. I know, elementary stuff, right? The problem is this is often the hardest part, actually logging what you’ve spent. To make it easy, I’ve created a free google sheets Christmas budget tracker!

Download my free Christmas budget printable to help you keep track!

⭐️ Other holiday savings tips:

3) Take inventory of subscriptions.

Cut out any unnecessary subscriptions. These days everything has an option for a subscription. Before you know it, you’re having stuff delivered right to your door every other day! While very convenient, chances are not all the subscriptions you have are necessary. See if you can cut—even temporarily—a few subscriptions to save the money instead.

4) Use cash back apps.

Using cash back apps is a way to save money with just a click of a button. I know this sounds sketch and like a scam, but it is truly a very simple, fast, and easy way to save money. You know how when you go through the coffee stand and forget to have them punch your card for a free one? That’s how I feel when I shop online and don’t use a cash back app. You literally just earn money just for the purchases you make.

My favorite cash back apps are Rakuten and Rebates Me. They both offer cash back at thousands of popular stores! Additionally, they consistently offer double or triple cash back at certain stores.

Stores include Target, Sam’s Club, Macy’s, American Eagle, Verizon, etc. Look yourself!

You can easily install Rakuten on your web browser within minutes. This way, Rakuten will show you a notification when you visit a site that they offer cash back for.

Rakuten and Rebates Me even search the web for coupons available to the site you are on and automatically applies them to your order at checkout.

If you do a lot of online shopping, this is an effortless way to save!

5) Stop eating out until Christmas.

Are you a restaurant or fast-food junkie? One of the biggest ways we saved money when we were paying off debt was cutting out dining out.

Let me tell you, it adds up FAST.

What I thought we were spending eating out and what we were actually spending were vastly different.

Commit to eating dinner at home and bringing lunch to work to save up cash.

You can also read 8 expenses you need to cut from your budget!

Tips to avoid the drive-thru / dining out

To avoid eating out altogether, you have to be very intentional about setting yourself up for success. Here are a few tips.

Once we started doing the three things mentioned above, we saved hundreds of dollars on groceries!

Other money saving grocery hacks:

6) Find something small to cut out temporarily.

I know many people are sick of hearing “cut out latte’s and you’ll save money!” Although many people roll their eyes at this suggestion, it adds up! For certain generations, they consume more gourmet coffee beverages on average than plain coffee:

If you get a coffee 3x per week, that adds up to $15. If you save $15 per week for 6 weeks, that equates to $90.

See how simple that was?

Remember, cutting out treats isn't forever, it's just to help stock up cash.

Depending on your budget, that can go a long way for Christmas shopping!

Other ideas include nail salon visits, subscriptions for “extras” (non-necessities), gas station purchases, etc.

7) Save for Christmas year-round in a high-yield savings account.

So, what is the best way to save money for Christmas? I highly recommend saving for Christmas year-round! You can do this by setting up a Christmas sinking fund in your budget.

This way, when December rolls around you aren’t scrambling to get cash together for various Christmas expenses. It’s a great feeling to have the cash ready to go when it’s time to buy Christmas gifts!

You can even keep your Christmas savings in a high-yield savings account and earn interest on the money you’re setting aside. We use CIT bank for our savings account and love the higher-than-average interest we earn.

While this is the best way, life happens! Sometimes you roll with it and stack up as much cash as possible a few months before.

8) Shop with cash.

To avoid making impulse purchases, use cash for your in-store transactions. This will help you hold yourself accountable for your spending.

While credit cards are convenient, and even boast many benefits, studies show that we tend to overspend when using a credit card vs cash or a debit card. The reason is simple—we don’t “feel” it as much because we aren’t required to pay for it right away.

While credit card rewards are a huge pull fo rmany people, the psychological impact of using a card typically outweighs those benefits; you spend more with a card.

For us personally, we shop with cash or debit cards. I don’t even want the temptation or option to have credit card bills following me into the new year.

9) Shop Black Friday or Cyber Monday.

I do the bulk of my Christmas shopping on these holidays. It’s inevitable that you’ll have to utilize online shopping; so if you’re going to do it, shop on one of these spending holidays for steep discounts! I'm not a last minute shopper, I like to have all my ducks in a row well before Christmas. This doesn't always happen, but I try my best to make it happen.

10) Complete a savings challenge.

A savings challenge is a great way to build momentum, save money fast, and stay motivated! There’s something about doing a “challenge” that psychologically changes how determined and motivated we are to reach a specific goal.

Even more, having a large goal broken down into smaller, bite-size steps makes it more likely we will reach that goal.

For savings challenge ideas, read this blog post that details how to complete a no spend challenge, $10k savings challenge, bi-weekly savings challenge, weekly savings challenge, etc.

MAKE MONEY FOR CHRISTMAS

Instead of focusing on cutting costs to save, try and make some extra money for Christmas! Especially if you already have a tight budget, some of the above tips might not be possible. Here are some creative ways to make money for Christmas!

1) Sell stuff.

If you have stuff that you’re willing to part with, declutter and sell. Many times, you can list your stuff on various social media sites. Price it cheap and get it out the door. The goal isn’t to make a huge profit on your stuff, the goal is to get cash into your hands. Plus, you'll feel better too having less stuff to look after. We've found that having lots of stuff creates a chaotic home environment!

2) Deliver on the side.

You can make good money delivering pizzas! My friend recently delivered pizzas for 3 hours and made $60 plus a free meal. That’s $20/hour! If you have 3 hours to spare on a weeknight or weekend, it is an effortless way to make some good cash!

3) Clean houses.

Nowadays, so many people work outside the home and are just busier in general than ever before. As a result, they are looking to create more time by outsourcing some basic tasks.

Cleaning is one of those tasks and is prime real estate for an easy side hustle!

This is a very practical way to make money. Place an ad in the paper, make a post on social media, and ask friends to spread the word.

4) Offer teaching or coaching.

Do you have any special skills? Actually, it does not have to even be a special skill. There are many people who lack common skills (myself included) that are looking for someone to teach them!

Everyone has something to offer. Are you a great gardener? Do you decorate well? Have you figured out some cleaning hacks to save time for busy moms?

While these might seem like “basic skills” to some people, I was looking for more guidance and expertise.

I have taken paid online courses for baby sleep training, money management, and scheduling your day with little kids.

How to do it:

Offer in person training or coaching or create an online course.

There are benefits and drawbacks to each. Let us briefly look:

Online Course

Benefits

Drawbacks

Coaching / in-person

Benefits

Drawbacks

WHY TEACHABLE?

If you go the online course route, I recommend using Teachable. They help you EVERY step of the way. Additionally, they have an amazing resource library full of step by step videos. Teachable also has regular webinars with successful Teachable course creators sharing their secrets to success!

You can start building a course for free, and only start paying for the platform when you put up your course for sale!

5) Babysit or pet sit while people are out of town.

The sitter market is hot . I will tell you what. I remember getting paid $3-$5 per hour to watch multiple kids. Not the case anymore. Our sitter cost more than our dinner a lot of the time!

While we love having grandparents babysit, they need a night off sometimes too ��

I am always looking for trustworthy, responsible sitters for my kids whether young adult, middle-aged adult or older.

Obviously, the holidays involve traveling for most people. If you are going to be staying home, consider offering pet sit while owners are out of town.

Additionally, many parents have work parties and other holiday parties that require them to find a sitter.

Give up an afternoon, weekend, or entire day to make some quick cash!

6) Start an Etsy shop.

Much to my surprise, one of my most successful streams of income is from Etsy.

You are probably thinking, yeah but you spend hours on end working on it every week I bet.

Nope. Right now , I am spending less than 10 hours per week working on every aspect of my business- the blog, Etsy shop, and online courses.

I do 3 simple things to be successful on Etsy:

Follow their recommendations
Research what people are searching for
Create printables based on my research

Like an online course, Etsy is a great passive income stream. This is perfect for busy moms who do not have a lot of time on their hands.

In fact, I only work on my online business when my kids are napping or in bed. That’s it.

I became a stay-at-home mom to be with my kids more, not start a full-time job and park them in front of the TV.

If you can't do either

On one hand, maybe it’s not in the cards for you to save more money this year because you have cut all the costs you can. On the other hand, maybe you’re not in a position where you can extra time to make more money.

Or maybe you’re like me and you think holiday spending is obnoxious, and your frugal heart just can’t bear it.

Whatever the case, here are some things you can do to make the holidays more enjoyable and less focused on money.

1) Focus on time with your family.

Try to focus on the quality of time with friends and family rather than the quantity of gifts you give or receive.

Although this sounds cliché, memories last a lifetime. Some of my favorite childhood memories are of our big, hectic family gatherings with screaming kids and wrapping paper strewn everywhere.

I do not remember any of the gifts I got growing up. Not one.

I must jog my memory to remember what my husband got me last year.

However, I can tell you exactly what my favorite parts of the day were- playing games with family and enjoying a nice dinner together.

Focus on the memories, not the gifts!

2) Frugal gifting ideas.

No matter what your financial situation is, you can do something special for everyone on your list. Consider handmade gifts and shopping at thrift stores. Remember, Christmas shouldn't be a competition of who gives the most expensive gifts.

A great idea for kids that you can do on any budget is to follow the 3-gift rule.

With this rule, each kid receives 3 gifts:

A want
A need
Something to read

This is a great way to keep the gifts down and remind your kids that gifts aren't the most important part!

3) Find free activities to do.

There is an abundance of free activities for families during the holidays! These are some of our favorite things to do:

Drive around looking at Christmas lights
Watch old movies
Attend church/community events
Make eggnog, cookies, sangria, and all the goods for your family & others

You don’t have to look far to have free family fun. Search your local newspaper, community Facebook page, etc. for updates on events!

4) Stay off your phone.

While this is easier said than done, put your phone away for the day. Instead of trying to recreate the perfect photo op, just focus on being present.

Many times, our kids, spouses, and family compete with our phone for attention... and lose.

In addition to taking away from our families, our phones also feed our envy.

If this is a tough year financially, scrolling through social media will not help you feel better.

There is nothing worse than feeling guilt for what you cannot afford and opening social media to see all the 10-year-old's that got iPhones for Christmas.

Do yourself a favor and stay off your phone!

BUDGETING FOR CHRISTMAS

With some careful planning, you can create a holiday budget that aligns with and allows you to still reach your financial goals.

This is my step-by-step process for budgeting for Christmas.

Start with listing every single person you plan to buy a gift for this year.
Then, list how much you would like to spend on each person.
Total it up. This is your total budget.
Evaluate the Christmas budget total. Is this feasible?
Consider what you will be saving by cutting expenses and/or making more money.
Add to your monthly budget. If you have never made one before, here's how to do it. You can snag a monthly budget template from my Etsy Shop:
Stick to the plan & keep track of your spending!

A plan is great, but you must execute the plan. While it’s tempting to overspend, remember, paying cash for Christmas and exercising self-control will put you in a much better place financially.

You will be so happy you started the New Year off with no financial strings attached!

These are just a few of the best ways to save and/or make money or Christmas.

�� READ:

Is Money The Root of All Evil?

Mon, 05 Oct 2020 13:40:00 GMT

I can’t count the number of times I’ve heard from another’s mouth; money is the root of all evil! Often this claim is based on a passage in 1 Timothy 6 that is, like much of scripture, misinterpreted.

However, I can count on one hand the number of times I’ve heard an in-depth sermon on how Christians should handle money. Part of it might be because the subject of money can be taboo in Christian circles.

Many pastors tiptoe around the subject and stick to some general Sunday school principles. Don’t lust after money. You won’t take it with you when you go. Be content. End of sermon.

The vague nature of these principles has left many Christians confused, and thus creates more questions.

What about debt? Is it bad? Should I have a credit card? Is it financially (and therefore biblically) responsible to wait and save money before having kids?

While I’d love to dive into all these questions, because they are all questions that I’ve wondered about myself, today I’ll address one.

Is money the root of all evil?

Let’s dive into what scripture has to say.

➡️ Related reads:

IS MONEY THE ROOT OF ALL EVIL?

In short, no, money itself is not the root of all evil. When we ask this question, we are missing the point. The key variable that is left out of such a question is our personal responsibility —how we behave towards money.

If we love money and it becomes an idol that we serve, then our behavior and heart attitude towards the money is evil. The Bible reiterates this over and over.

Contrary to popular belief, the Bible has a lot to say about money!

Let's take a look at biblical money principles according to scripture.

1) MONEY ITSELF IS AMORAL

Money is neither good nor bad. Rather, the LOVE of money sinful and the root of all kinds of evil:

The key word in this verse is love. It does not say that money is the root of all evil. Rather, the love of money is the root of all kinds of evil.

John Piper points out the significance of the phrase all kinds of evil, as this implies that not just one, but many desires stem from the love of money.

When we try to place blame on money, we completely miss the point. It’s like blaming cookies for making us gain weight. While it’s true that cookies don’t provide great nutrition, we are the one who decides whether or not to insert one into our mouths, and how many times.

2) GOD DOES NOT SHOW PARTIALITY BASED ON INCOME

The Bible is clear that God is just, and therefore does not show partiality to anyone.

He doesn’t show partiality to anyone based on sex, marital status, wealth, race, or occupation.

He will judge each person’s work on this earth impartially:

This means that whether rich or poor, God will judge your actions on the same basis.

3) THERE ARE GODLY RICH & GODLY POOR

If the Bible says money is the root of all evil, then we would have to conclude that those who have a lot of it are evil. However, it is very clear in the Bible that there were rich godly people.

Job was an abundantly wealthy man and the Bible makes is clear that he was also a very godly man (Job 2:3).In fact, when he lost everything but remained faithful to God, the Lord blessed him with twice as much wealth!

There are godly rich and godly poor as well as greedy rich and greedy poor.

4) SERVING MONEY IS SINFUL

God made it clear – you can’t serve both Him and money [or anything else]. We must choose whom we are going to serve.

5) WE ARE NOT PROMISED WEALTH

First, godliness does not promise material wealth, but rather, spiritual wealth.

Nowhere in the Bible does it say that if you do x,y & z, God will bless you materially.

In fact, you can do everything right- budget, save, invest, and still experience great financial disaster.That is not to say that we shouldn’t budget, plan, save, and invest. These are very wise things to do according to Scripture.

However, these are principles (particularly in the book of Proverbs), not promises.

If you budget, save, and invest, you are 10x more likely to succeed financially than if you don’t.

This is a general principle .

However, that is not true for everyone. Some people don’t budget, save, or invest and end up very wealthy.God gives and takes away.

We have budgeted, saved, and diligently invested throughout our marriage and have experiences times of financial blessing and financial drought.

No matter where you find yourself on the wealth spectrum, one thing is certain-- we are called to steward what God has given to us.

6) CAUTIONS AGAINST DEBT

The Bible is clear- debt is not a good foundation to build your finances on.

If you’ve ever been, or currently are in debt, you know the weight of it. I felt this weight immediately after graduating college with $20k of student loan debt.

Following Dave Ramsey’s debt snowball method , we were able to pay it all off in about one year.

Debt causes personal stress, puts pressure on your marriage, and keeps you behind financially.

Because of debt, many people are putting off getting married, buying a home, and having children. All because they are crushed under the weight of debt.

Debt is ultimately a heart issue . In order to fill the gap between our wants and the funds available, we look to debt to fix the issue. Debt is a direct product of envy, greed, and lack of planning.

Steer clear of consumer debt! If you can’t pay cash for it, you can’t afford it!

7) MONEY REVEALS INTEGRITY

We should constantly be asking ourselves, if Jesus opened my checkbook, would I be ashamed?

Although money tends to be taboo amongst Christian circles, it’s important that we do talk about it. God doesn’t take the subject lightly, he says in His Word:

It is SO easy to make money our treasure and commit idolatry. Because of this, we need to talk about it and constantly be on guard!

8) GIVING

God makes it clear, if we don’t give with a cheerful heart we might as well not give at all.

Do you see the theme here? God is concerned with the attitude and posture of our hearts.

Naturally, the question of how much believers should be giving arises. It's an important question! After all, your church depends on your giving for sustainability!

At the very least, your pastor, church staff, and church amenities are supported with the giving of the congregation. However, beyond that, many churches also support various youth organizations, missionaries, and other groups within their church.

Research shows that only 10-25% of church members tithe, and 80% of them only give 2% of their income ( Nonprofit Source ).

I've heard it said that the last thing believers submit to God is their checkbook.

HOW MUCH?

The difference in opinions revolves around whether the 10% tithe is still required today, or if that Old Testament command is not applicable today.

While it’s true that the Old Testament rules are not applicable today (Jesus death on the cross fulfilled the covenant), in the new covenant everything is greater.

As a result, if the Old Testament command is to tithe 10%, the new covenant is greater. I think then, when we ask the question (do I HAVE to give 10% to my church??), we are completely missing the point.

We are HOPING there is a way we can get out of giving a small portion of our income and keeping it instead.

9) MONEY WILL NEVER SATISFY

We are human beings created by God to find satisfaction in Him. Have you ever heard a wealthy person say, more money doesn’t solve your problems! I have, and I remember thinking to myself, yeah, easy for you to say.

But it’s true, if you struggle being content with what you have right now, you won’t be content with more either. This is pointed out in Ecclesiastes:

Whomever loves wealth will never be satisfied with their income. This is because money is not meant to satisfy us—Christ is.

Keep your eyes fixed on Jesus. Don’t let money distract you, deceive you, or control you.

10) IT ALL BELONGS TO GOD

Last, but definitely not least, everything you have belongs to God, including your money.

When we see our money this way, how much more should we care what we do with it?!

Remember, He is the giver of every good gift in our life- our spouse, children, family, friends, and monetary blessings.

He is also our provider.

While this may seem like a hall pass to get out of working diligently and just getting by, it’s quite the opposite.Rather, our motivation and understanding of work changes! We are designed to work, God made us that way.How we work then, it unto God and not unto man.

If this is the case, we go above and beyond instead of just getting by doing mediocre work.

PRACTICAL APPLICATION TO THE BELIEVER

CREATE A HOUSEHOLD BUDGET

According to Luke, those who don't count the cost to build a tower before building are foolish .

If you don't know how much money you are taking in and spending every month, that is foolish. The wise man plans head and carefully considers his steps.

A budget is simply a plan for your money.

Many people get turned off to the word because it sounds restricting , cumbersome , and too smart-sounding.

What they don't realize is that budgeting is quite simple !

You can easily create your first budget in just 7 simple steps.

Budgeting is a simple process of planning your spending, tracking your spending, and adjusting as you go.

The beauty of budgeting is that rather than being restricting, it actually allows you more flexibility !

DON'T TRY TO GET RICH QUICK

If it sounds too good to be true, it is. In an effort to get rich quick, many end up losing whatever wealth they've built.

Behind any get rich quick scheme is greed. The Bible is clear that self-discipline and consistency are the key to any kind of long-term sucess:

Larry Burkett says that trying to get rich quick leads to 3 errors-

All three of these things violate biblical principles, which are principles believers are to live their life by!

BUILD WEALTH OVER TIME

Many times, the issue is not how much we make, it’s how much you spend. You don’t need to chase the next carrot to finally be satisfied. I can almost guarantee that you don't have an income problem, you have a spending problem.

The reason most people don't live this way is because they don't even realize they are spending more than they are making, or they don't care.

It's normal to spend more than you take in and use credit cards to fill in the difference between your income and expenses every month.

While I could write a whole post on why people live this way, it boils down to feeling entitled to what we can't have.

Live within your means, don't spend more than you make, and know where your money is going.

Because we are sinful, we tend to rely on money when it is plentiful and cry out to God when it is scarce. Continually be evaluating where your treasure is. Pray for contentment in Christ, ask God to keep you from lusting after fleshly desires.

Your income may rise and fall, but God stays the same. This is why is exhausting to find your comfort in your finances! Every time anything remotely threatens your income, you'll be miserable.

It's a rollercoaster that isn't worth riding.

SO WHAT DOES THIS MEAN?

In summary. the kingdom of God is for both the impoverished and wealthy . God is just - he doesn’t show partiality to anyone.

He came for the fishermen and the tax collectors, the top 1% and the bottom 1%, the rich and the poor, and everyone in between.

Jesus didn’t come to just save a certain class – he came for sinners – the all-inclusive class.

Your heart attitude, which determines how you spend your money, is what He is concerned with.

Your wealth or lack of wealth doesn’t automatically determine your fruitfulness for Jesus.

How you steward what God has given you—whether a little or a lot – determines your fruitfulness.

10 Practical Productive Tips From a Stay at Home Mom

Sun, 20 Sep 2020 12:00:00 GMT

If you have raised little kids, you are familiar with the struggle to be productive as a stay at home mom. I had productivity pretty well mastered, then I became a mom.

The laundry seems endless, for some reason the kids need to be fed AGAIN, and any free moment you have it's tempting to lay on the couch and scroll through social media before someone inevitably screams, "MOMMM!!"

Although you're home all day as a stay at home mom, I've found it harder to keep a clean house than when I was working full-time. Here's an excerpt from a typical day in the glamorous life-

Feed baby. Make breakfast. Toddler who is learning how to not spill his food ends up spilling all over the floor. Clean toddler off. Put "hose in kitchen" on hubby's to-do list. Start eating my cold breakfast. Get interrupted by toddler who needs help. Time to feed baby. Clean up toddlers mess at table. Meanwhile , toddler has made 5 other messes. ..

You get the picture. I'd bet you're thinking, u h huh. Yep. Same here.

While I can't get your toddler to stop making messes, I can share a few pieces of productivity advice I've received and put into practice since becoming a stay at home mom!

➡️ Read:

PRODUCTIVITY HACKS FOR STAY AT HOME MOMS

1) START BY MAKING YOUR BED

In his book, Make Your Bed , Admiral William H. McRaven encourages beginning your day with a task completed by making your bed. When you hop into your bed at night, you can reminded that if nothing else, you did one thing well- made your bed.

Don’t underestimate the power of small habits. It’s the small changes in our life that are the sum total of all the decisions we’ve ever made.

Start small, start by making your bed.

2) GET DRESSED FOR THE DAY

You don’t need to get dressed up by any means, but you need to get out of your PJ’s. This will signal to your brain that it is time to get going with the day.

You’ll find that the longer you stay in your PJ’s, the longer you procrastinate. Plus, we all know how easy it is when you’re in your comfy clothes to just crawl back into bed when the kids are napping. Sometimes, this is needed! However, don’t make it a recurring habit if you don’t have a newborn and you are getting enough sleep at night.

3) KEEP A BASKET AROUND THE HOUSE

Keep a basket around during the day, collecting items that are in rooms they don’t belong. This is an especially great tip if you have a home with more than one floor. Keep your basket by the stairs, and every so often put items back to their respective floor. My basket is almost always filled with TOYS! We are working on downsizing our toy collection ;)

4) CLEAN IN SMALL INTERVALS

Set a timer for 5-15 minutes throughout the day and speed clean. Once the timer goes off, move onto the next item on your to-do list. I don’t know about you, but once I start cleaning, I can sidetracked with all sorts of mini side projects.

5) KEEP TRACK OF YOUR HABITS

I preach the motivating nature of keeping visual reminders to track progress. If you want to be more productive and break bad habits, use a habit tracker! This will help you GET IT ALL DONE. As a stay at home mom, I struggle will staying self-motivated. A visual reminder, like this habit tracking sheet, is what you need to be self-motivated!

6) MEAL PLAN

If you commit to meal planning your meals once a week, every two weeks, or once a month (if you’re super ambitious), you will change your LIFE.

I know that sounds dramatic . However, I was once a newlywed with no idea what she was doing. I wouldn’t even start thinking about what we were having for dinner until 3 or 4pm every night. As a result, I’d end up scrolling Pinterest for 10 minutes, going to the store for the couple ingredients I didn’t have, and slapping together a meal. Multiple times a week. I could’ve saved so much time if I would have planned my meals!

Since I blog part-time while my kids are napping (I don’t want to take away from the reason I became a stay at home mom), I don’t have much time for meal planning. Because of this, I use a meal planning service called $5 meal plan.

It costs a whopping $5/month, and every meal is designed to cost under $2/person.

This service is TIME friendly and BUDGET friendly! Double whammy!

Whether you work full-time, part-time, or don’t work at all, this meal planning service is a huge asset to moms with a full plate.

You can try it free for 14 days here and instantly get your meal plan for the week. Additionally, you’ll be sent a grocery list organized by ingredient and store section.

If you have special dietary needs in your family, they have gluten-free, dairy-free, vegan, paleo, and keto meals as well.

Y’all… it’s the best. I love it, and I’ve been using it for over 2 years now!

⭐️ Other meal prep/grocery hacks:

7) DO ONLINE GROCERY PICKUP

Online grocery pickup is a life-saver for busy moms with little kids . Let’s be honest, it can take 10 minutes just to get the kids from the car to the store. It’s a blessing to be able to shop from the comfort of your home, and pickup without having to unload the kids!

Another bonus is that you don’t have to spend half the time in the store trying to not act like a crazy mom because your kids want to touch, lick, and buy everything ;)

One word of caution, be sure to stick to your grocery budget when shopping this way! Online shopping though convenient, removes the cause-effect nature of the transaction in our brain. Because we are not physically handing over money, it’s easier to spend.

Be very careful and watch your spending patterns when grocery shopping online!

8) MAKE FREEZER MEALS FOR BUSY NIGHTS

Between kids sports schedules, school programs, volunteer opportunities, and other events, most families have a few nights per week that are hectic. You bustle from one place to the next, and by the time you get home it’s dinnertime.

Instead of taking time to prep a full meal, keep a freezer meal stash! I do this by simply making double batches a few times per week of whatever meal I’m making.

For instance, If I have tuna noodle casserole one night, I double the recipe and freeze one for later! You have all the ingredients out anyway, just double the recipe and freeze in a disposable pan for later. You’re welcome 

9) CLEAN UP DINNER WHILE IT’S COOKING

It’s tempting to scroll through your social media while dinner is cooking. Instead, start cleaning dishes as you use them. This means less time cleaning up after dinner, and you’re multi-tasking in an effective way. When multi-tasking, you want to pair tasks that don’t require a lot of brainpower together. Otherwise, multi-tasking is ineffective.

10) KEEP YOUR PHONE OUT OF REACH

Make yourself work to waste time on your phone. During the day, I try to keep my phone in our bedroom. This way, if I want to scroll instead of getting things done, I have to get up, put down what I’m doing, and walk to the bedroom. While that’s not a HUGE feat by any means, you’ll be surprised how this simple, small change will deter your bad habits.

11) PUT A LOAD OF LAUNDRY IN FIRST THING IN THE MORNING

After making your bed, throw a load of laundry in. This way, you don’t have to try and find a break somewhere while caring for the kiddo’s to start it. This is another item to check off your list and give you a small win. It’s the same concept with using the debt snowball to pay off debt. You pay off the smallest debts first so you get an easy-win and stay motivated!

12) FOCUS ON CLEANING A DIFFERENT PART OF THE HOUSE EVERY DAY

It’s easy to get overwhelmed by cleaning, especially with you’re in the house with messy kids all day! I focus on one area of the house per day.

I have my daily tasks, such as wiping down the counters, steam mopping, putting dishes away, etc. I do my daily tasks, and then when I have 5-10 minutes to spare, I focus on the one area. If that are is the kitchen, for example, the cleaning jobs in addition to daily tasks might include:

By grouping tasks by area, you can keep your house on a consistent cleaning schedule!

13) COMPLETE TASKS THAT REQUIRE BRAINPOWER IN THE MORNING

Most people have the most mental capacity in the morning, an optimal time to complete tasks that require more brain power.

Save tasks that require less thinking for later in the day. I reconcile our checking account, pay bills, and fold laundry in the evenings. By this time my mental and physical energy is running low. By batching these tasks later in the day, I avoid overwhelm!

Mutual Funds vs Stocks: How to Know What's a Better Investment

Thu, 17 Sep 2020 20:29:00 GMT

Investing jargon can be downright confusing, so I'd like to share the differences in mutual funds vs stocks investing portfolios. This is important to understand because how you invest will have a direct effect on how much money you have in retirement.

When talking about investing, most people don't think retiring a millionaire is within reach.

What do think it takes to retire a millionaire?

Taking lots of risks, which you can’t afford to do? Having a lot of luck, which you never seem to have?

The truth is, most of the time, everyday millionaires are not extraordinary people who got rich quick or on a whim.

It’s not because they had a supernatural vision that prompted them to invest in Starbucks when it first began, and they went from eating Ramen to prime rib on the beach in Dubai.

Rather, it’s because they were frugal, disciplined, and patiently invested over time.

Furthermore, most millionaires know what they’re investing in. They take time to educate themselves about the economy, stock market, and general money principles.

Isn’t it interesting that many Americans work so hard to earn money and are so consumed with their career, but they can’t take the time to manage it well?

Investing isn’t rocket science. However, that being said, it can be confusing because there are many different ways to invest and opinions on how you should invest.

Let me break it down for you!

You should begin investing after you’ve paid off all your non-mortgage debt, and have 3-6 months of expenses saved in your emergency fund. Then, and only then, are you ready to invest money for retirement.

If you decide to invest while you’re in debt and don’t have much in savings, you will be financially insecure and ineffective because you are trying to focus on too many different things at once.

Research shows when you focus on one goal at a time, you are more effective!

A good rule of thumb is to invest at least 15% of your gross (pre-tax) income.

First, if your employer offers a retirement plan, invest in that plan up to the employer match. An employer sponsored retirement plan is also referred to as a 401(k), or 403(b) if your employer is a tax-exempt organization.

Next, invest outside your employer sponsored plan into an IRA (individual retirement account), preferably a Roth IRA. Anyone can open an IRA, however whether you open a Traditional or Roth IRA will depend on your income.

⭐️Read: Roth IRA vs Traditional IRA: What's Best for You?

I recommend only investing up to the employer match in a 401(k) plan is because typically, you are limited in your investment options. On the other hand, when you open an IRA, your investing options are endless. An investment professional can help you choose investments for your IRA portfolio.

If you feel that your employer plan has some great options, feel free to invest the full 15% in that plan!

The key point is to make sure that you are investing at least 15% of your gross income.

Diversification is the key to long-term i nvestment success. In other words, spreading your money across multiple investments to mitigate the risk of having all your eggs in one basket.

Let's take a look at the key differences when choosing between mutual funds vs stocks.

MUTUAL FUNDS VS. STOCKS

STOCKS

Investing in single stocks means you buy a single share (stock) of a company in hopes of making a short-term profit. The goal of stock trading is to buy the shares of the company at a low price, and then sell at a high price. Additionally, when you buy single stocks you avoid high, recurring fees. Essentially, you are your own portfolio manager. You pay a fee to buy the stock, and you pay a fee when you sell it. You’re not paying someone to actively manage your investment portfolio.

Yes, there are stories of people who bought stock in Facebook and Netflix when they started up and are now millionaires.

However, for every success story stock trading, there are a dozen stories of failures.

The problem with stock trading is you chase short-term profit and bear incredible risk. You might make it big with a few different stocks, and then lose your tail on a few other ones.

It’s a poor strategy for long-term wealth building.

MUTUAL FUNDS

On the other hand, when you buy mutual funds , you purchase a fund that consists of groups of stocks- potentially hundreds. This diversifies your risk.

Christ Hogan puts it this way - Investors have a long-term perspective while traders have a short-term perspective.

TYPES OF MUTUAL FUNDS

The types of mutual funds that you invest in should be determined based on your age and risk appetite.

There are four primary mutual fund categories that Dave Ramsey recommends spreading your investments out across, including:

Choose mutual funds that historically deliver consistent results over a 10 or 20 year period.

A NOTE ON BONDS

Bonds are a type of fixed investment, and are considered a safe, low-risk investment. The three main types of bonds are corporate, municipal, and U.S. Treasury Bonds.

When you purchase a bond, you are the lender. Typically, you will receive a return on your investment in the form of dividends or interest.

However, that is not always the case. Because you are the lender, you bear interest rate risk, credit risk, risk of default, etc.

Bond buying and selling can get very complicated, so I’d highly recommend talking to an investment professional before you give it a go.

Similar to single stock trading, buying bonds is not a great strategy for long-term wealth building.

One of the big reasons the majority of Americans aren’t investing enough is because they feel like they don’t’ have enough money to invest.

As a result, they either don’t’ invest at all, or invest a small percentage of their income and simply hope for the best.

The truth is, if you want to consistently invest every month, you need to live on a household budget. Although living without a plan might work in the good times, it doesn't work in the bad times.

The key to a good financial plan is one that works in both good and bad times!

You can get my free monthly budget template available exclusively to my subscribers to get started!

DON'T FORGET...

In summary, when it comes to mutual funds vs stocks, the key difference is the riskiness of the two types of investments.

Investing in single stocks is riskier, and while it may provide short-term profits, it is not a great long-term investment strategy.

In contrast, mutual funds diversify risk by grouping single stocks into funds. This is a better long-term investment strategy for those who are patient and willing to ride the highs and the lows of the market.

Remember, chasing short-term returns will only leave you with your pants down when the tide goes out!

Stay in the market for the long-haul and you can rest easy knowing that you're setting yourself up for success in retirement.

5 Unique Self-Employed Retirement Plans You Need to Know About

Thu, 27 Aug 2020 21:04:00 GMT

If you own and run your own business, you might not be aware of the self-employed retirement plans available to you.

Just because you’re on your own when it comes to investing and retirement planning, doesn’t mean that you have to miss out!

Many times, small business owners are unaware of the retirement planning tools and plans available to them outside of an IRA. As a result, they put off worrying about retirement until it's too late!

Let's take a look at five unique self-employed retirement plans available!

Related Content:

OPTIONS FOR SELF-EMPLOYED RETIREMENT PLANS

Anyone can open an IRA (Individual Retirement Account). However, whether you can contribute to a Roth or Traditional IRA will depend on your income.

Benefits:

Disadvantages:

KEY CONSIDERATIONS

EMPLOYER: No consideration - individual plan.

EMPLOYEE: Individuals may contribute up to $6k per year. However, there are income limits on who can contribute to a Roth IRA.

TAX: Traditional IRA contributions are generally made pre-tax, and Roth IRA contributions are generally made after-tax. Additionally, distributions from a Roth IRA are tax-free. On the other hand, distributions from a Traditional IRA are taxable.

A Solo 401k is available to self employed business owners with no employees (or just a spouse as an employee). In this type of plan, you are the employee AND employer. Consequently, you can make contributions in both capacities. Moreover, you can choose between a Roth or Traditional 401(k).

Benefits:

Disadvantages:

Example: You open a Solo 401(k), and make $55,000 in 2020. You make the $19,500 max employee contribution, and contribute the employer portion of $13,750 (25% of $55k). Your total contributions are then $33,250, the most you can contribute for 2020.

KEY CONSIDERATIONS

EMPLOYER: Can contribute up to 25% of compensation or net earnings from self-employment.

EMPLOYEE: Can contribute 100% of earned income, up to $19,500. Total contributions can’t exceed $57,000.

TAX: For employees, tax deductibility depends on type of IRA. Learn more about the differences here. For employers, all contributions are deductible as a business expense.

A SEP (Simplified Employee Pension) IRA plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees . A business of any size can establish a SEP. This is arguably one of the best self-employed retirement plans.

Benefits:

Disadvantages:

Example: You open a SEP IRA. You have one employee. Your net self employment income is $75,000 and your employees income is $50,000. You decide to contribute 10% of your business earnings to your retirement account, or $7,500. Because you contributed 10% of your own compensation, you have to contribute 10% of your employees compensation, or $5,000.

Key point: This plan works especially well for self employed individuals with no employees.

KEY CONSIDERATIONS

EMPLOYER: Can contribute up to 25% of net earnings from self-employment, up to $57,000 in 2020.

EMPLOYEE: Employers must contribute equally for all employees. In other words, if you contribute 15% of your own income, you must contribute 15% of each of your employees income.

TAX: Employees contributions are tax-deductible on their own return, but distributions to participants are taxed. Employer contributions are deductible as a business expense.

A Simple (Savings Incentive Match Plan for Employees) IRA is a plan available to small businesses with up to 100 employees . Essentially, it is a start-up retirement savings plan for small businesses.

Benefits:

Disadvantages:

Example : You are a self employed small business owner with 4 employees. You adopt the policy of matching each employees contribution up to 3% of annual income, rather than nonelective contributions. One employee makes $40,000 for the calendar year and starts contributing to the plan beginning in June. The employee contributes 2% of his salary, or $400. Regardless of when the employee began contributing, you must contribute 2% of their annual salary. Thus, you will contribute $800.

KEY CONSIDERATIONS

EMPLOYER: Must adopt a matching policy of either a 3% employee contribution match, or a flat 2% match.

EMPLOYEE: Can contribute up to $13,500 in 2020 (doesn’t take into account employer match).

TAX: Employees contributions are tax-deductible on their own return, but distributions to participants are taxed. Employer contributions are deductible as a business expense.

You may set up your own pension in retirement as a self-employed individual. However, this doesn’t come without a catch- these types of plans are expensive to set up and maintain.

A defined benefit pension plan offers a guaranteed income stream in retirement. Because of the high cost of this plan, mainly government funded institutions offer it. Only 10% of private businesses offer a pension plan! Here's why.

Benefits:

Disadvantages:

KEY CONSIDERATIONS

EMPLOYER: The employer carries a heavy cost burden with this type of plan. Additionally, they are required to keep plan funded at a certain amount.

EMPLOYEE: Enjoys guaranteed income streams in retirement.

TAX: Contributions are generally tax deductible, and distributions in retirement are taxed as income.

TO CONCLUDE

If you didn't know about these self-employed retirement plans available to you as a small business owner, now you know! Take the next step to save for your future by starting a plan for you and/or your employees.

Freshbooks vs QuickBooks: Powerful Tools For Small Business Owners

Thu, 20 Aug 2020 18:53:00 GMT

THE BEST

Accounting Software

For Your Business

QuickBooks and FreshBooks are two of the most popular accounting software systems for small businesses, both offering enhanced accounting features. Figuring out which is the right fit for your business can seem overwhelming!

I'm going to help you evaluate which is the best fit for your business.

As an accountant, I've mainly seen QuickBooks being used for traditional businesses, and was intrigued by FreshBooks because of it's cloud based system and enhanced features .

That being said, I will give a fair comparison between the two so you can make the best decision possible for your business!

FRESHBOOKS VS. QUICKBOOKS: SHORT VERSION OVERVIEW

WHO IS FRESHBOOKS FOR?

FreshBooks is designed for self employed entrepreneurs, service based businesses, and other professionals and independent contractors.

It's geared towards smaller businesses with a single owner or just a few employees. It has a fantastic price for the features it provides. It is NOT geared towards brick and mortar businesses that require inventory tracking, lots of bill tracking, etc. However, it will work for this type of business as well.

Recently, FreshBooks upgraded their software to provide double entry accounting, so it is becoming a tough competitor to QBO for traditional brick and mortar businesses as well. However, I'd personally still recommend QBO for traditional businesses that require inventory accounting.

WHO IS QUICKBOOKS FOR?

QuickBooks is best for traditional businesses that need advanced reporting features like inventory tracking, payroll, etc. Additionally, a major feature that QBO offers is accrual accounting.

Both software programs offer very user-friendly platforms with robust features. Additionally, they both offer monthly pricing plans and different levels based on customization, features, and users.

QBO offers great reports for your tax preparer and inventory management features. You can even give your accountant access to your QBO file and set them up as a separate user.

QUICKBOOKS VS. FRESHBOOKS DETAILED REVIEW

INVOICING

FRESHBOOKS

The bread and butter of FreshBooks is the advanced invoicing features that allow you to get paid faster and easily create custom proposals and project estimates. Your clients can accept estimates and proposals online, and it will be turned into a project and invoices (if desired) within FreshBooks.

Check out this video demo:

Although FreshBooks invoicing is geared towards projects and proposals, it works for traditional invoicing as well.

QUICKBOOKS

With QuickBooks invoicing , you can:

WINNER

Both programs offer top notch invoicing options. No clear winner.

PROJECT MANAGEMENT

FRESHBOOKS

FreshBooks offers web-based centralized space for file storage. This feature works great for teams that need to collaborate on projects! FreshBooks is made for project management. Keep all your conversations, files and feedback in one place. You’ll keep your team in sync and your projects on schedule!

QUICKBOOKS

Boasting impressive job costing reports, QBO has project tracking aimed specifically at the construction industry.

WINNER

Because FreshBooks is made for project management , it is easily the winner here. However, if you need to manage projects with physical materials input, QBO is the better option.

TIME TRACKING

FRESHBOOKS

With Freshbooks the time tracking feature , you can automatically bill for tracked billable hours, review daily breakdowns of your tracked time, each team member (employee) can track their time, and add detailed time tracking notes. Additionally, FreshBooks offers a built-in, easy to use timer for both desktop and mobile.

QUICKBOOKS

In QBO, you can track billable hours by client or employee and automatically add them to invoices. Even more, you can enter hours yourself or give employees protected access to enter their own time.

On the downside, in order to get the time tracking features FreshBooks offers in QBO, you have to pay double the price.

WINNER

FreshBooks is the winner regarding time tracking. Even on the cheapest plan, unlimited time tracking is available! Additional functionality includes advanced time tracking reports filtered by project, employee, client, or contractor.

PAYROLL

FRESHBOOKS

FreshBooks does not have payroll built into the software. This is a major downfall of FreshBooks! However, they do integrate with payroll apps like Gusto.

QUICKBOOKS

In contrast, QBO offers payroll built into the software. But, the payroll feature doesn't come without an expensive price tag. Starting at $45/month + $3 per employee per month, QBO payroll does include automated taxes and forms.

If you need more advanced features, payroll will cost you $75 per month + $8/employee per month.

WINNER

While QBO has payroll built into the software, it is rather simple to connect Gusto to FreshBooks. However, QBO is the winner because of the built-in payroll feature. This takes away the need for ran extra step!

REPORTING

FRESHBOOKS

Financial reporting features in a simple, robust, easy to use and analyze format. One major downfall is there is no accounts payable report. Consequently, you will have to keep track of nay unpaid bills. Additionally, no payroll reports are available since it is not a feature offered in the software.

QUICKBOOKS

QuickBooks plus and advanced plans offer customizable, enhanced reports. Even more, QBO has a lot more reports to choose from. There is no limit to the custom reports you can build in QBO.

WINNER

QBO is easily the winner here, as it boasts TONS of reporting options, including accounts payable, payroll & 1099 reporting. However, if you feel like you won't use all those reports, FreshBooks has all the reports you NEED. Sometimes too much information creates confusion. As a result, you lose sight of your main objectives.

INTEGRATION

FRESHBOOKS

With the FreshBooks mobile app, you can work on the go with full capability- send invoices, receive payments, and even snap pictures of your receipts to easily record expenses. Additionally, you can chat with clients from the app. '

QUICKBOOKS

Similarly, the QBO mobile app also offers great features, including bank reconciliation, sending invoices, receiving payments, and snapping pictures of receipts to record expenses.

WINNER

Both programs have great integration with other apps/software, but the FreshBooks app offers more features than the QBO app.

PRICING

FreshBooks plans are priced based on features, number of users, and billable clients. A benefit of their pricing is the affordability.

FRESHBOOKS PLANS

Lite Plan

If you've just started your business as a blogger, freelancer, or virtual assistant, you might want to try the Lite plan first. You can invoice up to 5 clients per month, automatically import bank transactions, and accept various payment forms.

Plus Plan

For more established entrepreneurs, the Plus plan allows 50 billable clients per month. This plan will allow automatic generation of invoices for clients and double entry accounting in addition to lite plan features.

Premium Plan

The premium plan boasts 500 billable clients per month in addition to all plus plan features.

Select Plan

The select plan is a custom plan for users with over 500 billable clients per month. In addition to all other plan features, a personal, dedicated account manager will be assigned to your business. Even more, it includes super low transaction fees and customized training for you and your team!

For all plans, you can add team members for $10 per member per month.

A free 30 day trial is available for all FreshBooks plans!

QUICKBOOKS PLANS

*Please note the discounted prices below are only valid for the first 3 months, then you will be charged full price!

ESSENTIALS PLAN

The essentials plan is best for businesses that need basic accounting functions, including tracking bills due. Additionally, this plan allows up to 3 users. With the essentials plan, you do NOT get project tracking, or time and expense tracking.

PLUS PLAN

If your business requires inventory tracking, job costing, or budgeting, you will need the QBO essentials plan. Up to 5 users allowed. Note that the inventory tracking feature is only available with QuickBooks Plus & Advanced, which starts at $70/month (after the first three months).

ADVANCED PLAN

The plus plan offers advanced reporting, custom user permissions, a dedicated account support person, and up to 25 users.

A free 30 day trial is available for all QBO plans.

WINNER

When it comes to price, FreshBooks is the winner. The reason being, you can get more features for a more affordable price. QuickBooks Online is kind of like an a la carte menu. It sounds good at first (with the base price), but you find that any feature you add significantly increases your fees. Because of this, FreshBooks is especially appealing to new businesses.

FRESHBOOKS VS. QUICKBOOKS: ON A FINAL NOTE

While both software programs offer incredibly robust features, one might fit your business better than the other depending on what kind of business you run.

For example, if you are a photographer, freelance writer, tutor, web designer, or social media consultant, FreshBooks might be the best option for you because of it's advanced invoicing, project, and time tracking features. Additionally, you get a lot more bang for your buck if you don't need advanced features!

On the other hand, if you own and operate a small retail store, restaurant, plumbing business, auto store, etc, QuickBooks might be the best for you because of the inventory tracking, job costing, reporting, and payroll features.

If you have limited accounting experience , FreshBooks is by far the easier program to operate and understand. Conversely, QuickBooks Online is the entire accounting package on a cloud based system.

If you're unsure of which is the best fit for your business, you can try FreshBooks free for 30 days and try QuickBooks free for 30 days!

This way you can get your hands dirty for a month and make your own evaluation :)

Roth IRA vs Traditional IRA: How to Know What is Best for You

Tue, 11 Aug 2020 02:24:00 GMT

When it comes to retirement planning, some key knowledge you need to know is the differences between a Roth IRA vs Traditional IRA.

I don't know about you, but when I first started learning more about retirement planning and investing I was confused with all the jargon.

However, it is VITAL that you understand your options for saving for retirement. Unfortunately, most Americans aren't saving enough to keep the same lifestyle they have now in retirement.

In fact, research shows that just 16% of Americans are saving over 15% of their income for retirement.

From what I've heard from others, one of the reasons they aren't actively investing is because they don't understand it.

Because of this, they avoid it all together and figure they'll deal with it later. This is a huge mistake!

Millionaires are made by patiently investing over a long period of time. If you start investing early, you are WAY more likely to build wealth and be secure in retirement.

That being said, let me lay out the differences between a Roth IRA vs a Traditional IRA for you! This way, you'll be equipped to take a step forward with confidence and start investing :)

Related:

ROTH IRA VS TRADITIONAL IRA

KEY DIFFERENCE

The main difference between a Traditional IRA and a Roth IRA relates to when and how the money that you put into the IRA is taxed.

ROTH

When contributing to a Roth IRA, you use after-tax dollars. However, the money you take out in retirement is tax-free. Additionally, the money you earn on your investment grows tax-free.

��Key point: When you withdraw money from your Roth IRA, you will not owe any taxes, because you already paid taxes on your contributions.

TRADITIONAL

On the other hand, you contribute to a Traditional IRA pre-tax. The downside is when you pull the money out there will be a taxable transaction. Both the money you contributed AND the earnings will be taxed at the time of withdrawal. Essentially, you are deferring the tax you’ll have to pay to a later date.

��Key point: When you withdraw money from your Traditional IRA, you will owe taxes, because your contributions were made pre-tax.

When only considering the tax ramifications of each type of account, it comes down to what you expect your income to do.

If you expect to be in a higher income tax bracket in retirement than you are in now, a Roth IRA may be the best option.

On the other hand, if you expect your income to decrease over time, then the Traditional IRA might make more sense.

INCOME IN RETIREMENT

Many people tend to think that their income in retirement will be lower than it is today.

However, what many people fail to realize that although you likely won’t have your traditional wage income or business income, you could potentially have less tax deductions and credits due to being empty nesters.

With no dependents in retirement, you won’t be eligible for the child tax credit ($2k per child), childcare credit (for working families), or any of the education credits for kids in college.

As a result, your taxable income might actually be higher in retirement even though you aren’t earning a wage anymore!

I recommend consulting with your tax advisor and financial advisor and discussing retirement planning.

OTHER CONSIDERATIONS

ELIGIBILITY

There are no age limits on contributions to either a Traditional or Roth IRA. However, there are income limits for contributions to a Roth IRA (there is a work-around this limit discussed later).

INCOME LIMITS

While anyone can contribute to a Traditional IRA, only those with earned income below a certain level can contribute to a Roth IRA.

For single tax filers, your Modified Adjusted Gross Income (MAGI) must be under $139,000 for the tax year 2020 to contribute to a Roth IRA. If married and filing jointly, your MAGI must be under 206,000 for the tax year 2020.

As mentioned previously, there is a work-around this rule, discussed later.

DISTRIBUTIONS

Many times with retirement income, there is something called a required minimum distribution (RMD for short). This is an amounts the IRS requires one to withdraw annually. The purpose is to spread out distributions from one's retirement account over their life expectancy.

In other words, the IRS doesn't want you to defer taxes, so they require you to make distributions that are taxable.

A Traditional IRA is subject to RMD’s, beginning at age 70 ½.

On the other hand, there is no RMD requirement for a Roth IRA if you are the original owner.

This makes it beneficial to have a Roth IRA because if you don’t need the money, you don’t have to take withdrawals from the account.

Furthermore, if you don’t touch the account, when you pass away, the beneficiary of your account can enjoy tax-free distributions.

CONTRIBUTIONS

The maximum amount you can contribute to either a Roth or Traditional IRA is $6,000 per person per year , or 100% of earned income, whichever is less.

You can make a “catch up” contribution of $1,000 (for a total contribution of $7,000) if you are 50 or older without any penalties.

IRA FOR A CHILD

For both a Roth and Traditional IRA, you can open an account for a minor child. In this case, a parent will be the custodian on the account.

However, keep in mind the contribution rules! The maximum amount you can contribute is the LESSER of $6k (for 2020) or 100% of earned income.

For example, let's say your 12-year-old child makes $3,000 mowing lawns during the summer. If they have no other income during the year, the maximum amount you can contribute to their IRA is $3,000.

The reason you can only contribute $3,000 is because in this case their earned income is less than the $6k contribution limit.

CONVERTING A TRADITIONAL IRA TO A ROTH IRA

For those who are over the income limitations for contributing to a Roth IRA, you can still take advantage of the tax benefit of the Roth IRA by doing a Roth IRA conversion.

When you convert the Traditional IRA to a Roth, you will pay tax on the amount you convert.

However, the good news is, you can enjoy the tax-free distribution on the contributions and earnings upon withdrawal later!

If you are in this situation, it means that you have been phased out of making a Roth IRA contribution because of the income limits. As a result, it might be smart for you to make the conversion from a Traditional IRA to Roth IRA if you expect your income to continue to increase.

EXAMPLE

Let’s look at an example, because it might be best explained that way.

Say you have $6,000 in a Traditional IRA. If you leave that money for 30 years and it earns 10% average over those 30 years, it will grow to about $105k.

If you keep the money in the Traditional IRA, you will pay taxes on the entire $105k (contributions AND earnings) every time you make a withdrawal.

However, if you convert the $6,000 from a Traditional IRA to a Roth IRA in the year you make the contribution, you will only pay taxes on the $6,000. Then, you can enjoy tax-free distributions on the $105k in retirement!

It makes a big difference, $99k (105,000 - 6,000) of taxable income, to be exact.

A word of caution when doing this- it only makes sense to make the conversion if you have the cash to pay the tax bill! Otherwise, you'll pay a penalty for withdrawing from your retirement account early. This cancels out the benefit of the conversion.

CONCLUSION

Ultimately, when it comes to deciding between a Roth IRA or a Traditional IRA, it depends on what you expect your income to do in the future. This is, in my opinion, the most important consideration.

You can either enjoy the tax-free benefit today , or enjoy tax-free distributions in the future.

That’s A LOT of information to chew on- if you’re unsure of what you should do in your particular situation, I highly recommend finding an investment professional.

We went to Dave Ramsey’s website and found an investment professional there, and if you follow his plan, I’d highly recommend you do so as well!

Everything You Need To Homeschool Your Kids Confidently This Year

Mon, 27 Jul 2020 19:35:00 GMT

If you're a homeschool mom feeling overwhelmed, unqualified, and/or unorganized, this post is specifically for you!

Maybe you want to homeschool but you're scared to take the leap. Or, maybe you don't have a choice because of the current situation in the U.S. regarding COVID-19. Whatever the case, this resource is sure to help YOU help your KIDS.

I'd like to introduce you to Ultimate Bundles, a platform that releases bundles of content nearly every month. They do bundles of information/resources so that they can keep the products affordable!

In other words, if you bought all the resources separately, it'd be way more expensive! They have high-quality contributors in every niche contribute to their bundles, and they sift through all submitted products and choose only the best.

Because of this, you can be confident you are getting a great product for a fantastic low price.

I hate rip-offs and I would never promote one to my audience. Fhat would go completely against my mission for this blog- to teach women financial literacy and confidently choose how to prioritize their money!

ULTIMATE HOMESCHOOL BUNDLE

THE PURPOSE OF THE ULTIMATE HOMESCHOOL BUNDLE ...

WHO IS THIS FOR?

Both new and seasoned homeschool moms!

For new homeschool moms, this will help you overcome your fears, stay organized, and be confident in yourself as a teacher.

For seasoned homeschool moms, this will help you switch up your curriculum a bit and offer additional support to your skill set.

WHAT WILL I GET?

Inside, you will find resources to homeschool kids from preschool to high school, plus resources to support you as the homeschool teacher.

It includes art appreciation, reading, phonics, international studies, science, nature, language arts, and more! Furthermore, it includes resources to support the homeschool parent (things like planners, how to use technical tools in your homeschool, teaching children with dyslexia, and getting started with homeschooling).

This bundle is a collection of:

This bundle is jam-packed with helpful resources to choose from for every age. Consequently, you'll be able to diversify your curriculum and choose what you'd like for your childs' appropriate age.

WHEN WILL I GET IT?

You will have instant access to the bundle once you complete your purchase. A login and password to your member dashboard will be created, and you'll have access to all the resources in ONE place :)

Additionally, you will be able to sort through your resources by produce type or grade level!

You will have access to your member dashboard area for six months, so you have six months to sign up for the courses you'd like and download and print the workbooks, guides, printables, and other resources.

HOW MUCH DOES IT COST?

The bundle only costs $29.50, and an additional $10 if you want the cheat sheets!

If you were to buy everything separately, it would cost hundreds of dollars! For example, two resources included in the Ultimate Homeschool Bundle are:

These two resources alone cost $32 if bought separately!

WHAT ARE THE CHEAT SHEETS?

The cheat sheets were created because bundle customers wanted a quick way to find the resources that were most applicable to their children’s education right now . They are an extra $10.

Each resource in the bundle has a 1-5 page CliffNotes-style summary to go along with it, so you can cruise through the information so. much. faster. This way you can start creating or updating your homeschool curriculum, or you can quickly discover which resources fit within your homeschool philosophy and goals.

For a mere 10 bucks extra, you can add the full package of cheat sheets to your bundle, making it much easier to use this awesome collection of tools to help you have an effective homeschool.

These CliffNotes-style summaries will not only allow you to zone in on which resources you should start with, they’ll also allow you to absorb the key principles wayyyy faster. Which helps you create the right homeschooling atmosphere for your family - without missing a beat!

Click here to check out the bundle & cheatsheets.

DETAILED PRODUCT LISTING:

➡️ PRESCHOOL & KINDER

➡️ ELEMENTARY SCHOOL

➡️ MIDDLE SCHOOL

➡️ HIGH SCHOOL

ORGANIZATION

SUPPORT

ON A FINAL NOTE

If you're a homeschool mama who is scared, overwhelmed, or feeling unqualified, YOU CAN DO THIS! Almost every single homeschool mom I have talked to myself has said they felt all these same things initially.

On the other hand, if you're a seasoned homeschool mom who feels like you're failing, let me say this- you're probably doing better than you think you are :)

There are SO many studies that have shown the benefits of homeschooling, from knowing what you kids are being taught (from a religious standpoint), to better developement, and higher achievement for their grade level as compared to kids in a traditional classroom setting.

If you want to (or don't currently have a choice ;) ), know that YOU are capable of teaching your children and God entrusted them into YOUR care because he knew you were the best mom for them :)

How He Aggressively Paid Off $43k Of Debt in 2.5 Years!

Sat, 18 Jul 2020 11:00:00 GMT

It's no secret that in order to pay off debt you have to work hard and stay motivated. One of the best ways to stay motivated on your debt free journey is to hear from others who have walked the journey!

Because of this, I'm doing a debt free stories series on my blog, where you get to hear from others who have broken the chains of debt! They detail how they did it, how they stayed motivated, and what the keys to success are!

You don't want to miss out on this series :)

Next up in the debt free series is Brad and his wife Angelica!

Other debt free stories:

MEET BRAD!

I'm Brad Long, a Dave Ramsey Master Certified Financial Coach, Veteran, Corporate Software Salesman and (now formerly) Professional Touring and Recording Guitar player.

I LOVE helping people 1) organize their finances, 2) get on a written budget 3) eliminate their debt and 4) chart a course to FI in 10 years or less.

⭐️Check out Brad's site, zerodebtcoach.com !

GIVE US A LITTLE BACKGROUND LEADING UP TO YOUR DECISION TO PAY OFF DEBT. HOW MUCH DEBT DID YOU HAVE? WHAT KIND OF DEBT WAS IT AND HOW LONG DID IT TAKE YOU TO PAY IT ALL OFF? DID YOU HAVE A ROCK BOTTOM MOMENT?

I had transitioned from a lucrative corporate sales job to being a contract musician. I was utterly unprepared for the "lumpiness" that goes along with being a contractor and I struggled for the first 3 years.

As a result, I took out a HELOC (home equity line of credit) to use as my emergency fund. Then one day I looked up and I had used all of the $43,000 of line credit and my financial situation had not gotten any better.

I was in the middle of a downward spiral financially and emotionally speaking when I discovered Dave Ramsey's material. It was a game changer for me.

A LOT OF PEOPLE TALK ABOUT THE IMPORTANCE OF HAVING A “WHY” ON A DEBT FREE JOURNEY. WHAT WAS YOUR WHY?

I was literally so sick and tired of being sick and tired. My "why" was to escape the train wreck I had created for myself and never look back. I had reached the point that I was willing to do whatever it took.

HOW DID YOU TAKE ACTION? WHAT MADE YOUR DEBT PAYOFF JOURNEY POSSIBLE?

I devoured all of Dave Ramsey's content and did exactly what I now teach my students to do:

1) I organized my finances

2) got on a written budget

3) eliminated all of my debt and,

4) am now over 50% of the way to FI.

HOW DID YOU STAY MOTIVATED?

I kept going back to my "why" and I was maniacally attached to my budget and expense tracking. I (temporarily) went back into corporate sales and kept my music career as a side hustle. With those two generators in place and some fastidious budgeting and expense tracking, I was able to obliterate all $43,000 of that debt in 2.5 years!

If you want to get your finances in order, start with one of these budget templates .

W HAT SACRIFICES DID YOU MAKE?

I literally had to change my mind . Fortunately, I was broken enough that I was totally open to challenging all of my beliefs about money and what had gotten me to the low point that I was.

WHAT WERE THE BIGGEST OBSTACLES YOU HAD TO OVERCOME ON YOUR DEBT PAYOFF JOURNEY?

My biggest obstacle was getting started and learning the skills I needed to move forward in the process. As mentioned before, I was DONE with being in debt and was not at all tempted back into the mindless behaviors that had gotten me into trouble in the first place.

WHAT IS THE BIGGEST LESSON YOU’VE LEARNED BECOMING DEBT FREE?

That it's possible and it's not as hard as people may think. The hardest thing is making the decision to do it. I mean REALLY deciding you're going to do it. You have to "burn the ships" and not allow yourself to EVER go back. It's SO worth it on the other side and I want that for all my students!

WHAT IS YOUR BEST PIECE OF ADVICE YOU’D LIKE OTHERS WHO WANT TO PAY OFF DEBT TO HEAR?

If you're thinking about getting out of debt, examine your motives. I know this may sound odd, so let me explain.

First, you must be able to clearly define your "why" . Why? Because the process will be difficult and demanding and you WILL be tempted to quit. Your "why" will be pivotal in those moments.

Even more, you have to really be willing to examine your beliefs about money, personal finance, wealth and just economics in general. Once you enter into the debt-elimination process, the very disciplines required to achieve debt-freedom will challenge those beliefs.

So just go ahead and decide you're going to start thinking about those beliefs and challenging them.

IS THERE ANYTHING ELSE YOU’D LIKE TO SHARE WITH THOSE WHO WANT TO BECOME DEBT FREE.

I just want to reiterate how awesome it is to be on the other side of debt servitude . Most importantly, whatever it costs you, whatever the sacrifice, I promise you it's worth it!

START YOUR DEBT SNOWBALL

How to Create a Simple Budget for Irregular Income

Mon, 13 Jul 2020 02:43:00 GMT

One of the biggest mistakes entrepreneurs, visionaries, and others with unpredictable and irregular income make is believing that either a budget won't work for them, or that they don't need one.

This couldn't be further from the truth! In reality, these are the people who need a budget the most!

The uncertainty of not knowing when you are going to get paid, how much it will be, and how long it will be until you have money in the bank can cause a lot of stress.

Creating a budget for your irregular income will help life the load of unnecessary stress off your shoulders!

⭐️ Read:

HOW TO BUDGET IRREGULAR INCOME

1. WHAT'S COMING IN?

When you have irregular or unpredictable income, it's important that you make a budget based on your lowest expected income.

This way, when you adjust your budget as money actually comes in, you hopefully only have to make upward adjustments, not downward adjustments!

Look at your income over the last year, of your lowest months of income, what is the average? Use that are your estimated income.

2. WHAT'S GOING OUT?

Next, you need to get a grip on what your true expenses are. I'm not just talking about the number in your head that you *think* is accurate.

If you want to win with money and be financially responsible, you need to know what it truly you to live every single month.

This seems straightforward, but calculating monthly spending is where most people make the biggest errors.

TWO BIG MISTAKES WHEN CALCULATING MONTHLY SPENDING

Calculating your monthly spending is not difficult, but it does require thinking beyond your obvious monthly spending.

Because of this, many people are frustrated financially and don't realize with a little digging, they can fix the issue!

The problem is, when I ask someone what their monthly expenses are, they are able to easily rattle off the obvious - r ent/mortgage, utilities, daycare, at least a general idea of groceries, Hulu, Netflix, cable, dining out, fuel, etc.

Honestly, this is why they come to me in the first place- because after they take their monthly income and subtract the items mentioned above, there SHOULD be a ton of money leftover! But they are frustrated, because at the end of the month there never seems to be much left over.

They wonder, how can this be? According to my calculations, we should have plenty left over!

The reason typically is either one or both of the following-

If you fail to do these two things, your monthly budget won't work.

You'll find yourself frustrated because it seems like you can never get it right. While perfection isn't the goal (we want to leave room for flexibility), you can get pretty close if you take these two things into account.

THE RIGHT WAY TO CALCULATE EXPENSES

If you want your budget to work, you need to create the best plan possible.

This will make it more likely you will succeed at budgeting and stick with it!

The trick to creating the best possible plan is to account for every single dollar , and put in the work up front to figure out where things REALLY are.

In order to do this, you need to account for your yearly spending, and break your yearly spending down into a monthly budget, and then if desired, a paycheck budget.

CALCULATE TOTAL YEARLY SPENDING

Depending on how much of a grip you have on your spending, this might require you to go through 6 months to a years worth of bank statements.

While doing this, look for not just your monthly expenses, but expenses throughout the year that always seem to catch you off guard. When we account for our TRUE expenses, we actually have an idea of what it takes us to live every single month instead of a wild guess.

List ALL your expenses month by month. After you do this, take an average for things like groceries, household supplies, baby supplies, etc.

Again, be sure to include non-monthly expenses that tend to catch you off guard, such as annual insurance premiums.

SEPARATE EXPENSES INTO CATEGORIES

After you've listed all your expenses, separate them into categories based on the nature of the expense , as follows:

�� Key Tip: For variable expenses, calculate the average (and err on the high side).

CONVERT NON-MONTHLY EXPENSES INTO MONTHLY AMOUNTS

For expenses that come up irregularly or seasonally, convert these into monthly amounts. Do this for both expenses that are obligations and non-obligations.

Obligation Example: Your annual car insurance premium is $500. To have this money on hand when it's due, you can set aside $42 every month in a sinking fund.

Non-Obligation Example: You are spending about $200 on car servicing and repairs every couple months. This translates to $1,800 a year. Set up a sinking fund for car repairs and budget $150 per month.

➡️ These are some common sinking funds you should have in your budget .

A sinking fund is just a fancy term for a budget category that carries it's balance over from month to month. Hopefully you can see that by doing this, you will be better prepared for ALL your expenses, including ones that "pop up" out of nowhere.

Track your sinking fund balances from month to month using a sinking funds savings tracker. This ensures that your sinking fund money doesn't get lost in your other money. If you don't separate out your sinking funds, you might find that you accidentally spend the money you've set aside!

3. ADD ALL FINANCIAL OBLIGATIONS TO THE BUDGET FIRST.

If you have irregular income, you want to have a budget that ensures you are covering, at minimum, your financial obligations. These are expenses that are unavoidable, not easily adjustable, and due no matter what (hence the word obligation).

Obligations can be both fixed and variable expenses, and monthly or irregular. Be sure to include them all! For example, you would want to include the annual car insurance premium we broke down into a monthly amount in step 2.

This includes things like debt payments, utilities, rent/mortgage, daycare, HOA fees, insurance, etc.

These are the expenses that you add to your monthly budget FIRST.

If your lowest monthly income can't cover your obligations, you need find a way to cut expenses.

4. DEFINE & ADD YOUR GOALS/PRIORITIES.

This step might seem out of order (like it should be after step 5), but I want you to consider your financial goals into your monthly budget BEFORE you set your budget for discretionary expenses (things like eating out, clothes, entertainment, recreation, etc.)

This way, your budget is lining up with your priorities.

Here are some examples of goals that would be added to your budget in this step:

Many of these priorities can have a sinking fund set up to save!

For example, if you want to save $30,000 for a downpayment on a home over the course of 2 years, you would need to save $1,250 per month. Put this $1,250 in your budget as a line item and treat it like a financial obligation!

This is how we were able to save for a down payment on our home as well as pay for a car in cash!

5. ADD DISCRETIONARY SPENDING.

Discretionary expenses are expenses that you will have every month, but they are not necessities.

This includes things like eating out, recreation, entertainment, blow money, clothing, etc.

After you have listed out all your income and all your expenses (both fixed and variable) and your financial goals, subtract them and see where you end up. If you have a positive balance, it's time to add in your discretionary spending.

At this point, I'd like to note that this step you might have to go back and adjust the budget items you added in step 4.

You need to decide what your priorities are.

If your personal spending money is more important to you than traveling every year, then adjust your budget to reflect that!

6. ADJUST AS MONEY COMES IN.

When you have irregular income, it's important that you adjust your budget for actual dollars received during the month.

The hope is that you'll only have to adjust upwards, meaning, you took in more money than initially planned and budgeted. This won't always be the case, but if you properly plan, 99% of the time this will be the case.

Let's say you planned $3,000 of income for the month. However, mid-way through the month you've already received $3,000. The temptation will be to take whatever you make in excess of $3,000 and treat or reward yourself. Don't do this! Rather, have a plan for the money that you make in excess of what you budgeted.

Where do you want the excess to go based on your priorities?

7. TRACK YOUR SPENDING.

It's extremely important that you actually track what you're spending throughout the month.

This is true for both consistent and irregular income budgeting. If you have a plan but fail to see how your plan is performing, your plan is useless.

You can use an expense log or a digital accounting software system.

The most popular accounting systems for small business owners are QuickBooks and FreshBooks. As an accountant, I've had experience with both.

QuickBooks is for more traditional brick and mortar businesses, while FreshBooks is geared towards service based businesses and online professionals.

Whatever you choose, just be sure you are keeping track!

8. BREAK YOUR BUDGET DOWN BY PAYCHECKS

Since your income coming in every month will always be different than the previous month, you can't simply use a traditional monthly budget template to track your income and budget throughout the month.

This is why I created the budget by paycheck spreadsheet, a simple, robust worksheet specifically designed to help budget irregular income.

In the left column, you enter your planned monthly budget. In other words, the budget you'd like to stick to if your income allows it that month.

The green columns are where you actually budget as you receive your paychecks, and keep track of how much you have left to budget.

This spreadsheet allows you to take your monthly budget and break it down into smaller, more manageable chunks. This way, you are more likely to stick to your budget, because you are actively taking your planned budget and allocating your income based on those budget amounts.

If a paycheck isn't close to your planned amount, no problem! You simply adjust your budget for that paycheck!

This spreadsheet works because it helps you take your actual dollars and make them coincide with your plan.

It creates a simple way to help you keep flexibility with your budget.

How This Professional Paid Off $18k in 15 Months By Moving Home!

Thu, 09 Jul 2020 21:38:00 GMT

Becoming debt free is no easy task, and one of the best ways to stay motivated is to hear about others' success!

This is why I think it's important and encouraging to hear other people's stories to learn from them, and stay motivated yourself by knowing what is possible!

Today I am interviewing Elisabeth, a young professional who is currently in the midst of her debt free journey! She is a content marketer who also blogs at thefinanceeffect.com , which you should be sure to check out for more financial advice and motivation.

Let's get into her story!

MEET ELISABETH!

I am a Georgia girl who loves my family, Chihuahua pup and traveling. I was a business major in college and eventually went for my MBA (specializing in International Finance & Investments). This was a dual degree where I studied both in North Carolina and Germany.

While I wouldn't trade the experience for the world, that degree put me over $70K in student loan debt!

Give us a little background leading up to your decision to pay off debt. How much debt did you have? What kind of debt was it and how long did it take you to pay it all off? Did you have a rock bottom moment?

To get serious about paying this student loan debt off, I moved back home as a 28-year-old professional (I have a remote job in content marketing that allows me to do this).

I am one of six kids and two of my little brothers are still at home. I moved back into my old bedroom and readjusted to having my parents and siblings as roommates, and I struggled HARD with the decision.

After living in Frankfurt, Germany for six months for an internship, it felt like a step backwards. I also was ready to get a cute place of my own. But the move back made sense for my situation. I didn’t have a lot in savings and desperately needed to build that up and make a dent in my loans. Thankfully, my parents were open to me moving back in (and my brothers like having me around most of the time ;)).

I've paid off $18K in debt in one year and three months with an aggressive payoff plan and budget. I'm also on track to pay off almost $22K by the time I move out in August.

A LOT OF PEOPLE TALK ABOUT THE IMPORTANCE OF HAVING A “WHY” ON A DEBT FREE JOURNEY. WHAT WAS YOUR WHY?

I was so sick of worrying about payments and having that huge debt amount hanging over my head (I was even scared to open my Great Lakes student loan account every month to check the balance!). I was also tired of not being able to save for other things in life or invest money in a business!

HOW DID YOU TAKE ACTION? WHAT MADE YOUR DEBT PAYOFF JOURNEY POSSIBLE?

As I mentioned above, I moved back home to begin my debt payoff journey. This move happened officially in August 2018 - at first, it was just a temporary solution until I could save up some money. I built up my emergency fund over several months.

In January 2019, I followed the debt snowball method and paid off credit card debt first while making minimum payments on my student loans.

Debt snowball visual illustration:

In short, the debt snowball method is a form of aggressively paying off your debt. To. do this, you pay off debt in order of smallest to largest, regardless of the interest rate.

After my credit card debt was paid off, I jumped into paying off the $74K in February 2019. I sat down and calculated exactly how much I owed (I had GRADUATE PLUS loans and Stafford loans) and the interest rates.

Then, I looked at my budget and determined how much extra I could pay each month on my loans. After realizing that I could pay $1200 of my paycheck per month if I continued to stay at home (and pay a small rent to my parents every month), I had honest conversations with my parents who were supportive of me moving back for a while longer.

HOW DID YOU STAY MOTIVATED ON YOUR DEBT FREE JOURNEY?

I have two motivation strategies:

⭐️For visual motivation on your debt free journey, check out my editable pdf debt snowball tracker!

WERE THERE ANY SACRIFICES YOU HAD TO MAKE TO BECOME DEBT FREE?

From sticking to the $1200 student loan payment every month, I can’t exactly save as much as I would like for other things like retirement or investing in a business.

Also, moving back home hasn’t always been easy. My parents have been supportive, but it’s been different being back with my little brothers (16 and 14) and sometimes feeling like I’m still in high school. There’s also those awkward conversations at family events, answering the question, “So where are you living now?” Telling them that I’m living at home at almost 30 years old isn’t information that I’m excited to share. :P

However, in addition to paying off a good chunk of debt, I’ve made good memories being back at home. I’ve gotten to attend most of little brother’s football games and other events. I’m also close with my parents (my mom is technically the other member in my ‘at-home co-working space’).

So though the journey hasn't been without its small sacrifices, I’m thankful that I’ve had the opportunity to both pay off debt and spend quality time with my family.

WHAT WERE THE BIGGEST OBSTACLES YOU HAD TO OVERCOME ON YOUR DEBT PAYOFF JOURNEY?

I wouldn’t call living back at home an obstacle (since it’s the reason I’ve been able to make progress with my debt), but it has been challenging sometimes just struggling to feel like a successful adult. There's a certain stigma still attached to living back at home and I've gotten strange looks from people when I share my living situation.

It’s also not always easy knowing that $1200 of my paycheck is off limits every month (I would LOVE to be using that amount to put more into my blogging business or investments).

WHAT IS THE BIGGEST LESSON YOU’VE LEARNED BECOMING DEBT FREE?

I'm not completely debt free yet, but the closer I get, the more that I realize that getting out of debt is all about planning and being consistent with that plan.

Once I decided that I was going to be living at home, I mapped out a debt-payoff plan and gave myself a move out month (August 2020). I made my payment amounts automatic (and bi-weekly) so I wouldn’t feel tempted to spend my $1200 payments.

I’m also saving for a new(er) vehicle so I’ve had to be consistent with how much I’m stocking away for that purchase every month. Once I’ve finished saving for my car ($500 savings every month), I’m going to roll that $500 over into my student loan payments.

Having a solid plan with debt payments, savings, and also knowing that my move home is temporary has helped me pay off as much as I have.

WHAT IS YOUR BEST PIECE OF ADVICE YOU’D LIKE OTHERS WHO WANT TO PAY OFF DEBT TO HEAR?

Make a debt payoff plan and be consistent with your payments!

Maybe you’re not able to move back home like I did. Still try to block off a realistic amount of your paycheck that can serve as a student loan payment every month (more than the minimum amount). Write it down in your budget and live off the other portion of your paycheck. Make your debt payments automatic so you can kiss the monthly amount goodbye and not feel tempted to spend it.

You can always add more on top of this payment, but it’s important to have a baseline amount to ensure that your debt is going down as much as possible.

Consistency is key!

IS THERE ANYTHING ELSE YOU’D LIKE TO SHARE WITH THOSE WHO WANT TO BECOME DEBT FREE?

Get a hold on your spending! Paying off my student loan debt has made me more aware of how much I spend each month on things that aren’t really necessary. Look at your bank statement. It’s a little tedious, but go line by line of your transactions. Determine which purchases count as a “want” and which purchases count as a “need.” Budget how much you actually should be spending on certain purchases and eliminate the fluff (e.g. do you need to be paying for both Netflix and Hulu every month?). This extra money can then go toward your debt payments.

⭐️Read more from Elisabeth at thefinanceeffect.com!

Click here to read our debt free story, how we paid off over $20k in 12 months living on one income!

START YOUR DEBT SNOWBALL

How This Family Paid Off Over $90k & Became Debt Free in 21 Months!

Thu, 25 Jun 2020 23:30:00 GMT

To kick off my debt-free series on the blog, I have an amazing mama sharing her debt-free story! I'm so excited to start this series because hearing from others has an amazing way of making you feel like you're not in this alone!

Courtney details her families experience below! I highly recommend following her on Instagram!

Tell me a little bit about yourself.

I am a stay at home mom blogger with a 17 month old toddler, and a baby on the way! I have a few “side gigs” here and there to help support our vacation and home renovation funds, but love focusing on where God has called me first and foremost: motherhood.

Give us a little background on your debt. How much was it? What kind of debt? How long did it take you to pay it off? How did your spouse feel about it?

My husband and I both had school debt, car debt, and credit card debt. Our total debts added to over $90k! We were both on the same page with getting it paid off and being debt free, although I was more “gung ho” about it. It took us 21 months to pay it off. It was challenging for my husband to allow me to take the wheel with our finances, but he did and is now so happy we are debt free! Ever since we completed that large goal, talking finances continues to get easier and easier since we both have the same intention in mind: staying debt free!

A lot of people talk about the importance of having a "WHY" on a debt free journey. What was your why?

I honestly felt called by the Lord to clear debt from my name, outside of our mortgage. I felt convicted to get rid of our debt so we could grow our family with less stress, have options for me to stay home, and better serve others.

How did you take action? What made your debt payoff journey possible?

Baby Steps, and a lot of budgeting! I was watching where every dollar went, versus checking on finances on a month by month basis. We had more money coming in than we needed to support out “four walls”, and were wise with our spending, so until we decided to use every dollar the right way, we didn’t have to pay attention as closely as we did when we shifted our focus. We celebrated the big and small wins along the way, and that reward made it even more reinforcing to keep going!

How did you stay motivated on your debt free journey?

Watching the numbers go down was the most motivating! We realized that we would have so much more flexibility if that debt was gone.

⭐️ Watch your debt payoff numbers go down using editable pdf debt snowball tracking worksheets.

Were there any sacrifices you had to make to become debt free?

We ate a strict diet and less snacking. Less fun drinks at home (i.e. soda, teas and flavored drinks and just drank water!), if we had people over, we did potluck style instead of cooking for everyone. We also worked A LOT. We both were working full time, and picked up any side work. We never said no.

What were the biggest obstacles you had to overcome on your debt payoff journey?

We had to spend a lot of time apart during our first year of marriage. We still had “us” time, but we struggled to find time when we were both working so much. It was stressful, but worth it.

What is the biggest lesson you've learned becoming debt free?

I don’t want to “owe” people. I want to give to people. That is the biggest shift in my heart. I used to think “everyone has debt,” or “ I can afford a car payment so why not?” Now I think, “If I can’t afford the whole car up front, I cannot actually afford the car!”

What is your best piece of advice you'd like others who want to pay off debt to hear?

Paying off debt can be a lot like dieting. I see so many people give up, stop checking on their finances daily/weekly, and think “I’ll never pay this off.” Just like a diet, if we don’t find something that we can be consistent with, we will have inconsistent success. Find what works for YOU and your family, and stick with it, even when it gets hard.

Is there anything else you'd like to share with those who want to become debt free?

I love encouraging others to become debt free. It really does provide a new sense of freedom, such as being able to stay home and raise my babes when my anxiety got too challenging to go to work every day. Without paying off our debt, we wouldn’t have had that option!

I'm sure you've enjoyed reading Courtney's story as much as I have, be sure to check out this beautiful mama on Instagram!

Read debt related content:

Why You're Frustrated About Your Money & How to Fix It

Sun, 14 Jun 2020 03:07:00 GMT

Money problems and frustration with your money is something that many people battle their entire life. Here's why.

It's payday. You check your bank account, woohhoo!

You calculate what you'll have left to work with after the bills you need to pay before your next check are paid. Hmm, not bad. You can finally get your mom a NICE birthday gift, sign up your daughter for dance lessons, and have a date night!

You think to yourself FINALLY we will get on track with money! Then...

You get a notice your annual community pool membership fee is due next week. Your calendar tells you it's your turn to make breakfast for your sons baseball team, a hefty addition to your grocery spending. An unexpected visit to urgent care after your daughter fell off the trampoline.

Next thing you know, you're limping a long until your next payday and you're FRUSTRATED because all the things you wanted to do with your money once again aren't done.

Opportunities might arise, but you can't take them because your money is held hostage until the next direct deposit.

What it all boils down to is that you are frustrated because you're money is not doing what you want it to.

While you might be frustrated that unexpected expenses arise out of nowhere, the root of your frustration is that you wanted to use that money for something else that is a bigger priority to you.

This is why it's important to have a plan and a plan that is based on your priorities.

HOW TO EFFECTIVELY DEAL WITH MONEY PROBLEMS

1. CREATE A PLAN

In order to tell your money what you want it to do, you have to create a plan that you can stick to every month. The best plan you can have for your money is a monthly budget. Here's a detailed instructional post on how to create one.

Additionally, you can snag my free monthly budget template to get started drafting your budget.

My budgeting worksheets & tools:

WHY THE BUDGET WORKS

Even if you're not a budget person, stick with me here.

What separates ok plans from excellent plans is the ability of the plan to work in both the good times and the bad times.

A budget is an excellent plan because it works in the good times and the bad times.

Most people think of a budget as a restraining, complicated, time-consuming task that they don't need because (for the time being) they are doing fine financially without one.

Then the crisis hits. A job layoff, unexpected medical bills, your transmission in your car goes out, you have big goals that seem unreachable. The stress mounts.

Once the fog clears and you're left with the mess, you realize that you need a plan! You realize there is a problem. This is good! You are coming to terms with the fact that money is indeed finite and it needs to be managed if you want it to reflect your priorities.

Your monthly budget is the foundation of your financial plan. Once you create a budget, it will feel like you got a raise! It's like breathing in cool, fresh, mountain air.

2. DEALING WITH THE UNEXPECTED EXPENSES

Another common reason money problems seem to arise out of nowhere is because of unexpected expenses that catch us off guard. These expenses leave us stressed and defeated!

The best way to deal with unexpected expenses is to build an emergency fund and set up sinking funds.

EMERGENCY FUND

Simply put, an emergency fund is a fancy term for a savings account that holds 3-6 months of your household expenses. This is your protection against the curveballs life throws at you.

When you don't have an emergency fund, you are living at the mercy of life's unexpected events, which I promise will come!

Here are some instances where using your emergency fund might be necessary:

A brand new TV is NOT an emergency ;) It's important that you make sure your emergency fund is only used for true emergencies, and immediately replenished after use.

SINKING FUNDS

Sinking funds are a simple tool you can use to save money for larger expenses over time. It sounds so easy, right? It is! The hardest part of funding your sinking funds is being disciplined to not use the money for anything else. Because of this, I recommend setting up a separate bank account for your sinking funds!

If you want to go on vacation, purchase some new furniture, or buy a new vehicle, the logical thing to do would be to save up the money for it over time!

However, that's not what the majority of Americans do. Rather, they decide one day they need something, and whether they have the cash for it right now or not, they buy it!

This is why Americans have more credit card debt (and debt in general) than ever before.

I'd like to introduce an alternative method to debt, sinking funds!

it will require patience, but it's worth it to not feel the weight of debt and monthly payments every month. No one likes the feeling of having a looming large credit card balance hanging over their head.

SETTING UP YOUR SINKING FUNDS

Setting up your sinking funds will take a little time, especially if you're not sure where things are at in your finances. In other words, if you don't know what you're spending every month, it's going to take some leg work.

Here's how to set up your sinking funds:

Don't forget to track your sinking funds every single month! If you don't, you can easily lose track or use the money for something else.

We are leaving for vacation next week, and it feels so good to know that we have the money set aside in a sinking fund, and our vacation spending isn't going to follow us home! No buyers remorse or guilt when we get home!

By purposefully planning your expenses, and I mean ALL your expenses (monthly, quarterly, annually) you negate the feelings of frustration of not being prepared for certain expenses.

3. KNOWING YOUR PRIORITIES

LETTING YOUR PRIORITIES LEAD

This is where budgeting gets fun!

You get to create a unique and specific plan that will allow you to live a life based on your priorities.

I'm not saying you won't have frustrating months where you have to use your emergency funds more times than you'd like, but when your spending consistently reflects your values and priorities you experience true freedom.

So how do you create a budget that reflects your priorities?

First, define your priorities. What are you money goals? Some of ours include:

✅Be generous.
✅ Invest for our future.
✅ Leave a legacy for our children.
✅ Have me stay home with our children.
✅ No consumer debt.
✅ Pay off our home early.
✅ Visit my family in Oregon at least once a year.

Once we defined our priorities, we made sure that after our financial obligations (fixed expenses we HAVE to pay) were budgeted, we added these goals into our monthly budget.

Essentially, even though these items are not fixed financial obligations, we treat them like they are.

PRIORITIES CAN CHANGE

Realize that your priorities will change over time, and that's okay! In fact, that's good!

For example, when we found out we were pregnant with our first child, we had to shift our priorities. Instead of throwing all extra money at our retirement and home, we started aggressively saving for maternity leave and medical costs.

➡️ Read: How to Budget for a Baby

Because our priorities changed, our budget changed. We added a sinking fund for the costs mentioned above, and we also started a sinking fund for baby supplies.

It's okay for your priorities to change, and when you have a plan to ensure your finances are reflecting your priorities, you'll have financial peace!

GENERAL GUIDELINES

So you've set your priorities, made sure your obligations are accounted for, but now you're wondering- how do you know if you're overspending?

First of all, if after you account for your financial obligations, goals, and sinking funds you have a negative balance, you have to find a way to cut spending and live on less than you make.

However, even if you come out positive, that doesn't necessarily mean you aren't overspending!

These are some general budget guidelines based on the Dave Ramsey budget system:

If you're outside these ranges a little it's not a big deal, because everyone's situation is different. However, if you are way off from these guidelines, that could be a sign of overspending.

➡️ Read: Breakdown of the Best Budget Percentages for Your Family

4. DEALING WITH YOUR SPENDING

If you are overspending, the only way you will know is by tracking your expenses. I recommend using an app or an editable pdf expense log and bill tracking sheet!

What items can you trim down? Or, do you simply need to make more money?

What frustrates a lot of people is that often the only solution offered to money problems it to cut out your daily latte.

Trust me, while it adds up over time, I understand that for many people that isn't going to cut it because they have an income problem!

In that case, I obviously highly recommend starting a blog (it is super nice side money)!! Otherwise, look for a part-time job, sell on Etsy ( I make a good chunk of money on Etsy), or consider finding a virtual assistant job.

You can always find a way to make more money:

➡️Read: 10 Ways to Make Extra Money From Home
➡️Read: 5 Reasons to Stop Being Scared & Start a Blog
➡️ Read: How to Make Extra Money Before Christmas
➡️ Read: How to Start a Wordpress Blog on Bluehost

How to Budget a 3 Paycheck Month on One Income

Tue, 26 May 2020 02:29:00 GMT

If you're paid biweekly, you might notice that there are a few months every year where it seems like there is an extra influx of cash-flow. This happens when you have a 3 paycheck month.

No big deal, right? Just extra spending money. Well, if you are a one income family like us, that third paycheck can either be wisely stewarded to be a major blessing, or frivolously spent without thought. The latter is often the temptation we are faced with.

The temptation to reward ourselves for all our hard work as mothers and homemakers and all that we manage is real.

However, if we are to be wise keepers of our home as Proverbs 31 calls us to, then faithfully managing our finances includes thoughtfully making a decision about what to do with a third paycheck.

What is a 3 Paycheck Month?

A 3 paycheck month happens when you’re paid biweekly and receive three paychecks within the same calendar month instead of the usual two. Because biweekly pay results in 26 paychecks per year, two months each year will include an “extra” third paycheck. Budgeting a 3 paycheck month intentionally can help you build savings, pay down debt, or get ahead on future bills instead of letting that additional paycheck disappear.

Why Biweekly Pay Creates 3 Paycheck Months

What I mean by a month with an extra check refers to the fact that some months have four weeks and some months have five weeks. If you are paid bi-weekly, this means you will have two months where you have an additional paycheck.

Why a 3 Paycheck Month Feels Like “Extra” Money

If you aren't living on a monthly budget , you likely have some gaps in your finances. You can afford certain things one month, but not the next. You basically play a game of spend until there isn't more, then cool the spending until the next paycheck comes. While this can "work" for a while, you'll likely find yourself frustrated if there's no intentionality. Or, if you're a one-income family, you'll likely find that it creates financial stress.

When a 3 paycheck month comes along, it can feel like you suddenly either managed your finances much better that month, or got a little raise. However, neither is true. It is just simply one of two months per year that are 3 paycheck months.

Why It Disappears Without a Plan

Have you ever heard the maxim 'failing to plan is planning to fail?' While it sounds cheesy, it holds true. When we fail to plan things that we can, in wisdom, we can trust the Lord with the outcome. We will make mistakes. But it is often in those mistakes we learn invaluable lessons the Lord graciously teaches us.

Failing to plan a third paycheck can lead to temptations like:

Small upgrades - being in the paycheck to paycheck living rock tumbler finally gets to you and you decide to treat yourself for surviving in it so long. The irony is you'll be back in the rock tumbler of paycheck to paycheck living the next month if you use it for upgrades instead of creating margin.
Catch-up spending - spending more in a margin month because you felt restricted in previous months. Suddenly the thing you couldn't afford before is within reach. This can look like bigger grocery trips with more extras, more eating out than usual, or letting budget categories grow because it "feels safe."
Lifestyle creep - an extra paycheck month can make you feel like you suddenly got a raise, so you raise your expenses to match.

Here's how to create a simple plan for your third paycheck.

How to Budget a 3 Paycheck Month (Simple Plan)

First things first, it's important to actually budget your extra paycheck. Productive Christian households carefully plan for the future.

As a homemaker, I’ve learned that a lot of peace comes from preparing ahead of time. Just like meal planning or laying out books for homeschool the night before — it’s not flashy, but it changes the whole feel of the day.

Practically, when thinking about how to budget a 3 paycheck month, we want to consider a few things before making a decision (with our husbands) on what would be the most fruitful for our family.

1. Cover Regular Bills First

Before you decide what to do with the third paycheck, look at your first two paychecks for the month.

Have your normal monthly expenses already been assigned?

Mortgage or rent
Utilities
Groceries
Insurance
Subscriptions
Childcare
Minimum debt payments

If those are already covered by your usual two paychecks, then your third paycheck is not needed for survival.

It can be tempting to treat a third paycheck like bonus money without first checking the foundation. Make sure the basics are covered first.

2. Choose One Wise Priority

What would make the most difference right now? Don't try to do a million different things with a third paycheck.

Scattered money rarely creates progress.

Assign your third paycheck to a clear purpose based on your priorities. This might include:

Build your emergency fund
Pay down debt
Fund sinking funds
Get ahead on next month’s bills

Small, focused progress is key.

3. Assign Every Dollar

Even though it feels like “extra,” it still needs a job.

Write it down. Use my free paycheck budget template to help you assign your income to your expenses.

If $1,500 is going toward savings and $1,000 toward debt, be specific.

When we don’t assign our money, it quietly slips away in small decisions — extra grocery runs, small conveniences, little upgrades that don’t feel significant in the moment.

But when every dollar has direction, we protect the margin God has provided.

4. Think Long-Term Stability, not Short-Term Relief

A third paycheck month can feel exciting.

But for a one-income home, stability is more valuable than excitement.

Using that paycheck to strengthen your foundation — instead of increasing your lifestyle — creates something much better than a temporary boost!

What to Do With a Third Paycheck on One Income

During an extra paycheck month, start with your priorities. We always want our spending and managing of our financial resources, entrusted to us by the Lord, to reflect our priorities.

This doesn't mean we don't enjoy our money. The Lord gives us good gifts to enjoy. Rather, we must consider how we can be most faithful.

Each family must decide, prayerfully, what that looks like, but here you'll find some ideas.

1. Get Ahead on Bills

Getting a month ahead on your bills simply means using last month's income to pay this month's expenses. This creates a healthy cash flow. You can pay an expense knowing there is money in the account to cover it, because you have specifically assigned those dollars from the prior month to that expense.

In order to do this, simply calculate what your monthly obligations are (you don't need to include expenses that are NOT obligations like investing). After you've done your calculation, take that portion of your check and put it into your checking account as a buffer.

This way, you constantly have a one month of expenses buffer in your checking account!

Alternatively, you could keep this designated amount in your savings account if having it in your checking account tempts you to spend it.

➡️ Read: How to Stop Living Paycheck to Paycheck and Get One Month Ahead on Bills

2. Boost Sinking Funds

A sinking fund is a strategic way to save for an expense or multiple expenses over time by setting aside money every month.

The goal of sinking funds is to have the cash to pay for larger, seasonal/irregular expenses instead of finding yourself overwhelmed when they hit because you didn't plan for them.

Before spending your extra cash, consider boosting your sinking funds! I know it's tempting to spend it on something you've been wanting for a while, but remember your priorities.

Is it important to you that your family takes a vacation every year and spends quality time together? Put some of your paycheck (after you've covered necessities) towards your vacation fund.

Some common sinking funds include:

Car repairs
Christmas
Vacation
School expenses
Annual insurance dues
Gifts (birthdays, anniversaries, weddings, baby showers, etc)

A good way to keep track of your sinking funds and their balances is to use a worksheet every month. This way, if you keep the money you have earmarked for certain sinking funds in your checking account (or all sinking funds in a savings account), you can easily track the balances and reconcile to your checking or savings.

3. Fully Fund Emergency Fund

An emergency fund is simply your savings set aside for unexpected, large expenses. Wisdom says that it's not if a financial need will arise unexpectedly, but rather when . Therefore, we would be wise to plan for it, as Proverbs exhorts us:

“The prudent sees danger and hides himself, but the simple go on and suffer for it.” — Proverbs 22:3

Without savings, every unexpected expense pushes you backward.

It can lead to credit cards, shifting bills around, and that constant thought of “What are we going to do?”

When you have an emergency fund in place, large, unexpected cash outlays become an inconvenience rather than a financial crisis.

Sinking Fund vs. Emergency Fund Expenses

Because emergency fund and sinking fund expenses can get muddled, it necessitates a discussion about the differences between the two.

Both are funds set aside for unexpected expenses.

To differentiate, a sinking fund is money you save ahead of time for expenses you know are coming — even if they don’t happen every month. An emergency fund is money you set aside for expenses you cannot reasonably plan the timing for — it's your safety net.

For example, I would classify car maintenance and repairs as a sinking fund expense. Although you don't need maintenance or repairs every month, you know that it's likely at some point during the year your vehicle will require it. A major vehicle repair (let's say thousands of dollars worth of repairs), would likely classify as an emergency fund expense.

4. Pay Off Debt

If you have consumer debt, consider putting using this extra paycheck month as an opportunity to increase momentum towards your debt snowball.

In short, the debt snowball method is a way to pay off debt by focusing on your smallest balance first, regardless of interest rate. You make minimum payments on all debts but put any extra money toward the smallest one until it’s paid off, then roll that payment into the next smallest debt. As each debt disappears, your payment “snowballs” into larger amounts, helping you gain momentum and motivation.

You continue this process until all your debt is paid off- hence the term debt snowball!

We paid off over $20k of student loan debt in 12 months while living on one-income. This is one decision I will never regret. It made it that much easier to have me come home full-time with the kids, leaving my well-paying job as a CPA.

5. Increase Investing

One income families should strive to make investing a top priority. Don't be discouraged or lose heart if you can't set aside much right now. Finances are seasonal . You may be in a growing season or a shrinking season.

Often, when a young family has all littles and mom is at home it's a shrinking season. That's OK. Because you're not hitting all the goals Dave Ramsey says you should be doesn't mean you're failing.

Act wisely and trust the Lord for His provision!

Simply set aside what you can every month, and consider using your extra paycheck as a little boost, especially if you aren't regularly contributing to an investment account.

What if You're Living Paycheck to Paycheck

The paycheck to paycheck living cycle is exhausting.

It leaves you wondering in the back of your mind if you'll be able to afford the lunch date your friend suggested, because you know in the back of your mind you need the money to go elsewhere. So you feel guilty.

Living this way increases the decisions we have to make on a daily basis, which in turn increases our stress levels. Like a domino effect, the increased stress can cause us to make poor decisions, or give up altogether.

How a 3 Paycheck Month Can Help You Break the Cycle

If you're living paycheck to paycheck, choose one of these options to budget your third paycheck:

Create your first $1,000 buffer
Catch up on overdue bills
Cover next month’s largest expense early

You'll be so glad you did this when the next month comes around and you have more breathing room, even if just a little.

Common Mistakes in a 3 Paycheck Month

Without a clear plan, a 3 paycheck month can slip through your hands quickly. We want to be intentional about the use of the paycheck, not haphazard. Here are some common mistakes that are easy to make with a third paycheck.

Treating It Like Bonus Income

A third paycheck is not a bonus, but it can feel like it. It is part of your yearly income, and we are wise to manage it as such!

Spreading It Too Thin

It’s tempting to divide that third paycheck into five different goals:

A little to savings
A little to debt
A little to home projects
A little to fun
A little to catch up

But scattered money rarely creates noticeable progress.

When everything gets a little, nothing really changes.

Choosing one focused priority creates momentum you can feel.

Increasing Lifestyle Expenses

If a 3 paycheck month increases your monthly lifestyle instead of strengthening your foundation, next month may feel just as tight as before. It can feel like you suddenly got a raise, but this is just one month of two that there will be an extra paycheck!

Catch-up Spending

After feeling restricted for a while, it can be tempting to think you can finally let loose and actually enjoy some of your money. But if you don't have clear plan for the paycheck or if you don't operate on a monthly budget, the next month will be just as hard.

Not Deciding Before it Arrives

If you wait until the third paycheck hits the bank account to decide where it's going to go, emotions can take over quickly. Simply making a decision about what you're going to do with the money before it arrives makes it much more likely you'll stick to your plan, not letting emotional impulse spending take over.

Frequently Asked Questions About a 3 Paycheck Month

7 Amazing Free Resources for New Bloggers

Fri, 22 May 2020 20:08:00 GMT

This is a no BS guide to free resources for new bloggers!

I have used every single one of the 7 free resources for new bloggers that I list and detail below at some point in my blogging journey.

When I first started blogging, I didn't have hundreds or thousands of dollars to pour into my new endeavor. In fact, we were aggressively paying off debt, so I had very minimal funds to work with!

I found it super frustrating that any type of resource that other bloggers regarded as absolutely ESSENTIAL to being a successful blogger typically came with a hefty price.

Nonetheless, I managed to find some incredible free tools that will suite any blogger!

The 7 free resources for new bloggers listed below will help you tremendously no matter where you are in your blogging journey!

7 FREE RESOURCES FOR NEW BLOGGERS TO HELP YOU GROW

1. THE FREE BLOG PLAN

This free video course is by the amazing Suzi Whitford, whom I really admire and have personally learned A LOT about blogging from by taking her courses.

I started by taking this free course she offered, and it was extremely helpful.

The printables included in this course really helped me get on a consistent plan with my blog, because as a busy mom I don't have much time to spare!

You'll love this course just as much as I did!

2. CANVA

If you want to get blog traffic from Pinterest, you're going need to have amazing pin images that stand out. Canva is a free image editor that allows you to create stunning Pinterest pins for free!

They offer a pro version as well that is paid, but to be honest the free version is all you really need, as it has a lot of functionality and comes with a lot of bells and whistles already.

I started with Canva when I first started blogging, and I've been so happy with it I haven't decided to upgrade to anything else. I'd really encourage you to give it a try!

3. 550+ FREE STOCK PHOTOS FROM IVORYMIX

This is not your traditional "five free stock photos" freebie- this is 550 free stock photos PLUS new free stock photos delivered to your inbox every single month.

No, this. is not a gimmick and no, there are no strings attached besides signing up for her email list. I know, I thought the same thing- too good to be true!

You can sign up here to have high quality stock photos delivered to your inbox every single month.

She has images for TONS of different niches, including:

Here are some examples of the free stock photos you will receive:

At first I downloaded Kayla's free stock photos, and I loved them so much I upgraded to a membership plan. They are STUNNING photos!

You will not be able to get free photos like this anywhere else, trust me, I looked!

4. FREE PINTEREST TEMPLATES

To be honest, my Pinterest pins looked pretty sad for a while when I first started blogging. I did a little digging and eventually found some incredibly designed free Pinterest pin templates.

Since I didn't have a lot of pin designing experience, I signed up for Kara at Simplifying DIY Design's free Pinterest templates (they will open in Canva so be sure to create your account) .

Additionally, I signed up for the free templates offered by Kristin at AppleCart Lane, she has beautiful templates to help you jump start your creativity! She has lots of great tips for creating pins that stand out in general. I got a lot of tips from her blog when I first started!

The best part about these templates is the hard work of the actual pin design is all done for you! All you have to do is change the words and pictures! How awesome is that?!

This is a great place to start if you're not a Pinterest natural (it's okay- I'm definitely not)!

5. SHAREASALE

Affiliate marketing is the very first way I started making money with my blog, and since I didn't have a ton of money to throw at my blog, I had to find affiliate marketing platforms that were free.

Share-a-sale is a fantastic affiliate marketing platform that is completely free to join! They have thousands of different affiliate programs you can sign up for!

They offer a wide variety of affiliate programs for almost every niche! It's extremely likely you'll be able to find at least five to ten different affiliates for your specific blogging niche.

6. TEACHABLE

A great way to make money through creating your own products is to create an online course with Teachable.

Suzi Whitford, a blogger whom I really admire and have learned a lot from, makes over $9k per month through her online courses with Teachable. I've taken some of her courses and they aren't anything super fancy, just incredibly valuable information!

The great thing about making an online course is that you can update your product/course and users will have lifetime access, this offers immense value to your customers/clients!

Teachable offers a free plan so that you can set up your course and see if Teachable is the right fit for you, no strings attached! You can keep the free plan even when you LAUNCH your course, the transaction fees are just higher than the paid plans!

FEATURES

Here's why Teachable is the best choice for an online course platform:

Teachable is the best online course platform, and one of the many perks is that you can create, customize and sell a course for free with them.

AMAZING resource for new bloggers, or bloggers who don't have a lot of money to drop on building their business! Let's be honest, not many of us do when we first start blogging- I know I didn't!

7. MAILCHIMP & MAILERLITE

Both MailChimp and MailerLite are great email marketing platforms that offer quite a bit of value for their free service.

You can easily do what you need to with either of these free email marketing platforms if you are just starting out as a beginner blogger!

I personally started with MailChimp, and then upgraded once I started bringing in some revenue from my blog. I didn't have hundreds of dollars to throw at my blog when I first started, so this was a great option for me!

��Read: 3 Essential Tools You Need to Monetize Your Blog & Increase Traffic

ANOTHER OPTION

If you'd rather start with a more robust and seamless email service provider, I'd recommend Convertkit as your first choice. It's amazingly easy to set up email automations and sequences that target your audience. Once I switched to Convertkit, here's how my audience grew:

My biggest frustration when starting with Mailchimp was that setting up a sequence and opt in form was extremely difficult. Because this was so simple, I started setting up opt-in freebies right away and as you can see it was insanely successful!

I now have tens of thousands of email subscribers, and a lot of my success was because of Convertkit!

You can start with Convertkit 100% free up to 500 subscribers through my link!

ON A FINAL NOTE

These 7 free resources for new bloggers will help you grow your blog without spending a ton of money.

Don't feel like you have to break your bank account to start a blog when you haven't built your email list and grown your traffic yet! By implementing these free resources and upgrading LATER (after I'd made some money back), I was able to steadily grow my blog!

I hope this is an encouragement to you!

THEME BY NUMBER COURSE

13 Reasons Why Divi Builder is the Best Wordpress Website Builder

Thu, 21 May 2020 01:38:00 GMT

CREATE BEAUTIFUL WEBSITES

WHY I SWITCHED TO DIVI

This post will detail 11 reasons why I switched from traditional WordPress themes to Divi by Elegant Themes. Divi is a visual site builder that comes with a lifetime membership and hundreds of pre-made blog page, post, shop, and sales page templates!

WHY I SWITCHED TO DIVI

If you're anything like me, it's super frustrating when you buy a WordPress theme only to find it isn't exactly what you were looking for. Hours of code later, you're still getting nowhere. After switching to Divi, I'll never go back to a traditional WordPress theme. Here's why!

This is meant to be an in depth review and explanation of why I switched from traditional WordPress themes to the Divi Builder by Elegant Themes.

Divi is a huge theme dashboard that essentially gives you the option to customize your site exactly how you want it (for any kind of niche) by building a site using a block-style system.

No more coding, submitting theme support tickets, and being limited in your design to the theme you purchased.

With Divi's modules, you can build pages, posts, landing pages, and shops for literally any kind of business under the sun!

While there are many reasons that Divi is the best option for creating a beautiful website, these are the top 11 reasons why I'm glad I switched to Divi and the Divi builder from traditional WordPress themes!

13 Reasons Why I Switched from Traditional Wordpress Themes to Divi

1. ABSOLUTELY NO COD ING

The worst part about purchasing a website theme is that although you can get it to look how you want, I've found that whenever I install it, there are always things I want to change!

Of course this isn't that big of a deal, but if you're anything like me, website coding is not something you'd write on your resume. I HATE coding.

Before Divi, I would spend hours researching and watching videos to try and figure out how to make my theme look the way I want with a code, and try not to ruin my website or have it crash in the process!

Instead, add, delete and move elements around on the front end of your website. No coding and no confusing back end options.

With Divi, there is absolutely no coding required , everything is built using a "block style" system, that is completely compatible with Gutenburg by WordPress.

LEARN MORE ABOUT DIVI!

2. VISUAL DIVI BUILDER

The Divi visual builder allows you to edit your website visually in real time, instead of building a page or post and having to preview. Instead, while editing you instantly see the results.

With the Divi builder , you have complete control over every aspect of your website design.

The Divi builder is best explained by watching the video below. It's hard to put into words how the drag and drop block style system works!

3. PRE-MADE LAYOUTS

Over 800 pre-made website layouts come packaged right inside of Divi for free. Brand new layouts are added weekly along with royalty free photos, icons, and illustrations.

This is a priceless feature of Divi. They add a new layout pack to your library at least weekly.

If you aren't comfortable building pages and posts for your website from scratch, Divi comes with over 800 free layout packs for all kinds of pages, posts, industries & services!

Each layout is designed for a specific niche, here are three examples of pre-made layout packs designed for a specific niche, but they can really be customized to fit any niche if you like the layout!

The layout packs have been so helpful for me when designing various pages on my blog!

4. HELPFUL ONLINE TUTORIALS

If you need help with the DIvi builder or creating pages, blog posts, or any of the modules, Divi has a tutorial for it!

In addition to a blog, they also have a YouTube channel along with 24/7 chat and support for theme tutorials and documentation.

6. COMPATIBLE WITH GUTENBURG

Divi is completely compatible with Gutenburg! You can use both (my personal preference), or just use Divi. When writing my blog posts, I'll write the actual text and content using Gutenburg, and then I'll use the Divi Builder visual editor to edit in real time.

When you go to write a post or create a new page, you'll be given the option to use either the default editor or Divi Builder.

Because Divi is completely compatible with Gutenburg, you can easily toggle back and forth between the two. In other words, you don't have to pick one or the other- you can have the best of both worlds! :)

7. THE EXTRA THEME FOR BLOGGERS & MAGAZINE PUBLISHERS

Along with your Divi membership, you'll get the option to install the Extra theme, this is not a separate purchase, to be clear. You pay for Divi once (if you choose the lifetime membership) and get EVERYTHING I discuss in this blog post.

Basically, Extra takes the Divi Builder framework and extends its advanced Drag & Drop builder power to work on your homepage and categories with a brand new set of post-based modules.

Extra comes with a new set of Divi Builder modules built specifically for the needs of bloggers and online publications.

The picture right is a sample of a homepage design built using the Extra theme framework. You can easily duplicate this exact design for your homepage, as Divi provides the "file" you need to make your homepage identical to the demo site.

Additionally, even if you have the Extra theme installed, you still get to use the Divi builder for all other pages (other than home and category pages).

8. CREATE & USE GLOBAL ITEMS FOR EFFICIENCY

When creating layouts from scratch, you can save different features and parts of your layout to your Divi library. This way, it's easy to duplicate a section or page you've created that you want to re-use on a different page or post.

You also have the option to make these items global.

When an item is made "global" in the Divi library, it's mirrored across all the pages you add it to.

Whenever this global element is updated, the updates are automatically pushed to each instance of the global module! If you have a repeated module or section on your site, simply make it global.

If this sounds really confusing, don't worry. Divi offers TONS of tutorials and explanations that walk you through all the features of Divi.

9. BUILD BEAUTIFUL LANDING PAGES

With Divi, you can build beautiful landing pages and sales pages from scratch, or use the presets in the library (800+ landing page templates)!

This way, you won't ever have to pay for a service like Leadpages, because you can literally build a page from scratch with simple drag and drop features and endless customization options!

10. CREATE HIGH CONVERTING OPT IN FORMS WITH BLOOM

Before using Bloom, I just simply created my pop up forms and other forms in Convertkit.

While these are fine to use, once I had the unlimited design options that Divi's Bloom plugin offers, my conversion rates skyrocketed.

Here is a high converting opt in form that I created with Bloom:

Again, Bloom comes with Divi, you do not have not purchase is separately!

Additionally, my favorite features of Bloom include:

Bloom makes it really easy to target your audience and customize your form to certain page & post types.

11. SPLIT TESTING

Just like split testing is available for the Divi Bloom plugin, split testing is available across tons of different areas of your site.

With Divi, you broadcast different versions of your page to different visitors and figure out which version is most effective at converting your unique goals using powerful stats and insights.

You can test different headlines, colors, and layouts, and Divi will tell you which ones perform the best!

Once the test is over, you simply select the highest performing variation.

Super simple and super slick!

5. NO "SUPPORT TICKETS" 24/7 ONLINE CHAT HELP

Divi offers 24/7 chat support in addition to the hundreds of online tutorials!

It is always frustrating when you buy a new theme, and then constantly have to submit support tickets for various things!

In contrast to traditional WordPress themes, Divi offers around the clock support for their users. I have chatted with their support team multiple times and it's a seamless, efficient process.

12. UNLIMITED WEBSITES AND UNLIMITED USERS WITH PURCHASE

When you join Divi, your one license allows you unlimited users and unlimited websites.

In other words, if you have clients that need website building done, you don't pay for each website you build. Or, if you have multiple websites yourself, you can install Divi on all of them, no additional licenses needed.

This sets Divi apart from a lot of other website building platforms and other theme sellers!

13. PAY PER YEAR OR ONE LIFETIME ACCESS/MEMBERSHIP FEE

You can join Divi for $89/year or have lifetime access & membership to Divi for a $249 one time fee!

If you're ready to upgrade your blog to a robust and simple website builder, join Divi today!

THEME BY NUMBER COURSE

How to Know if Christian Healthcare Ministries Is Right For your Family

Sat, 16 May 2020 14:00:00 GMT

After having our first child we were desperate to find a more affordable insurance option, and christian healthcare has been the perfect solution for us!

Let me back up . We paid right around $6k out of pocket for our first child. Yeah, ouch.

Additionally, it was going to cost us an additional $700 per month to have him covered with traditional insurance through my employer.

Now, let me be clear- a child is a blessing no matter what and I don't think the cost of having children should scare you out of having a family! In fact, in our experience, having kids has made us more financially responsible!

While we were prepared financially to pay for our first child, we figured it couldn't hurt to shop around and see if there was a better option.

Because after sending the check for our hospital bill and paying approximately $500 for simply breathing, I needed to receive the Holy Spirit .

I'm happy to report I have received the Holy Spirit and although I'm still being charged $500 for breathing, I now have private "health insurance" (you'll understand the air quotes later) that is affordable and has already saved us thousands!

I know many of you are wondering how to know what health insurance is right for you, so I'm going to give a detailed review of the private christian healthcare ministry we use called Christian Healthcare Ministries.

P.S. it's endorsed by Dave Ramsey and that made it all the more a good fit for us!

WARNING! This post is jam-packed full of information :)

KEY FEATURES OF CHRISTIAN HEALTHCARE MINISTRIES

Here are a few of my favorite things about CHM that I will go into detail about:

Moreover, they are committed to offering quality assistance and meeting the needs of their members. I LOVE CHM.

I'll go over how it works, how it differs from traditional health insurance, the pro's, con's, the details, and how to know if it's right for you!

Let's get started.

WHAT IS CHRISTIAN HEALTHCARE MINISTRIES?

Christian Healthcare Ministries and other similar ministries (Christian Medishare, Samaritans Ministries, etc) operate by health cost sharing. Health cost sharing is when medical needs from members are shared using the predetermined, fixed monthly membership fees from other members.

Simply put, this means Christians share the medical needs of other Christians.

The non-profit organization exists to help it's members uphold their Christian beliefs and satisfy their medical needs while keeping their insurance costs low.

It's pretty neat to be a part of a program where hundreds of thousands of Christians come together to share each others needs. In fact, CHM members have shared over 4.5 billion in each others medical needs!

Here's a look at costs shared in 2019 alone:

Even more, CHM members are committed to praying for special needs of fellow members! What an amazing opportunity to come alongside our brothers and sisters in Christ!

THE COST

CHM has three participation levels. Each person in your household using CHM may be on different/varying levels of coverage.

For example, you could be a gold level member (to have maternity needs covered) and your husband (who has no underlying health conditions) could choose to be bronze level.

The cost for each membership level per person (unit) is as follows:

Gold level coverage - $172 per unit per month

Silver level coverage - $118 per unit per month

Bronze level coverage - $78 per unit per month

⚠️ NOTE: AFTER 3 UNITS (3 PEOPLE), ANY ADDITIONAL UNITS ARE NO ADDITIONAL CHARGE.

UNDERSTANDING UNITS

One unit is one participating individual within a membership.

For example, a single person is one unit. A married couple is two units. A married couple with four children is THREE units, based on the 3-unit max rule.

So, if you have four kids and you and your spouse are on CHM, and everyone has gold coverage, your total monthly bill would be $516 for all six of you.

If only one spouse participates with all the children, that would count as two units.

INCENTIVES

Another benefit that separates CHM from traditional health insurance coverage is that they offer incentives to their members.

First, they have a refer-a-friend program, where if you refer a friend, you will get one month of membership free!

Second, if you are a silver or bronze level member, any discounts you receive on your medical bills are applied to your personal responsibility amounts (essentially your deductible) - $2,500 for silver members and $5,000 for bronze members.

CHM places a heavy emphasis on obtaining discounts from healthcare providers.

Consequently, CHM is able to keep monthly membership fees low! :)

THE BROTHERS KEEPER OPTION ( AVERAGE OF $45 ADDITIONAL COST PER QUARTER)

Brothers Keeper is a safeguard against catastrophic illness or injury, by enabling members to meet their medical needs past the $125,000 per incident sharing limit.

How much extra protection/sharing Brothers Keeper offers depends on your membership level and years of membership.

The breakdown by membership level includes:

You can see that without Brothers Keeper, the bill sharing limit per incident is $125k, regardless of membership level.

With Brothers Keeper, bill sharing per incident for gold members is unlimited.

By adding Brothers Keeper to your silver or bronze level membership, every year you increase your sharing limit per incident by $100k, up to $1 million.

This graphic hopefully makes it less confusing!

The Brothers Keeper option costs on average $45 extra per quarter, plus there is a yearly fee of $40 per membership.

In other words, it could cost you an additional $220 per year to "up" your coverage to this level.

COVERAGE

➡️GOLD LEVEL

For Gold members, CHM shares 100 percent of bills for any medical incident exceeding $500 (before discounts) as long as all other Guidelines are met. Keep in mind they share 100% of bills up to $125,000 per illness, UNLESS you are part of the Brothers Keeper add-on (scroll down to learn more).

Please note that the $500 personal responsibility (essentially a deductible) is PER INCIDENT , not per calendar year.

GOLD + BROTHERS KEEPER

By adding Brothers Keeper to your gold membership, the $125k cap for amount shared per illness is removed and the amount shared per illness becomes unlimited.

➡️SILVER LEVEL

For Silver members, CHM will share eligible medical needs exceeding $2,500 (your personal responsibility per incident) , up to $125,000 per incident.

Includes:

Does NOT include:

SILVER + BROTHERS KEEPER

By adding Brothers Keeper to your silver membership, you get an additional $100k of cost support. Additionally, with each annual renewal receive $100k of extra support up to $1 million.

➡️BRONZE LEVEL

For Bronze members, CHM will share eligible medical needs exceeding $5,000 (your personal responsibility per incident) , up to $125,000 per incident. If you add Brothers Keeper, there is no limit on amount shared per incident.

BRONZE + BROTHERS KEEPER

By adding Brothers Keeper to your silver membership, you get an additional $100k of cost support. Additionally, with each annual renewal receive $100k of extra support up to $1 million.

COVERAGE EXAMPLES

CHM routinely shares bills related to the following non-exhaustive list:

***Start with CHM and fill out an application!

PER INCIDENT RULE

CHM calculates coverage per incident, which can be for one bill or multiple bills.

For example, if I go tothe doctor for a regular checkup, that would not be a bill eligible for sharing.

On the other hand, if I fall and break my leg, that would be an eligible need for bill sharing. Additionally, all bills related to this including x-rays, procedures, etc would be bundled together as one incident, and I would only be liable for my personal responsibility amount of $500 (on the gold program).

BILL SHARING PROCESS

HOW DO I SUBMIT A MEDICAL NEED?

After receiving care, you will need to ask your healthcare provider to give you an itemized bill that includes date of procedure, patient name, place of service, charge for each procedure,and procedure codes.

You can send submit bills online or via mail or fax.

If you are unsure of how to do this, CHM has various resources on their website to walk you through the steps.

CAN I VIEW THE STATUS OF MY BILLS?

When submitting bills online using the member portal, you are able to also view the status of those bills.

Below is a snapshot of my member portal and bills I've submitted for maternity needs.

You can see that all these bills have been received and filed!

WILL I HAVE TO PAY FOR THE BILL OUT OF POCKET?

CHM does not require you to pay the bill first before they share the cost.

Rather, you can pay if you'd like to and are able to avoid being billed multiple times by your healthcare provider, but if you alert your provider about your healthcare ministry, they will work with you regarding payment due dates.

HOW LONG DOES IT TAKE FOR CHM TO SHARE BILLS?

In general, bills are processed in the order received. However, if your healthcare provider offers a significant discount for paying within a certain time frame, CHM will give those bills priority.

On average, bills can take 30-60 days to be shared.

The bill "sharing clock" starts the day CHM receives and files your bill, not the date you mail it.

As a result, one downside to using a healthcare sharing ministry is bills typically take longer to get paid than if ran through traditional insurance. It's a more manual process!

WHO CAN JOIN & HOW TO JOIN

ELIGIBILITY

To join CHM, you simply must be a Christian who embraces CHM's statement of beliefs regarding alcohol, substance abuse, and sexual immorality (read more on that here).

✔️You will NOT be turned down for coverage because of a pre-existing medical condition. There are no restrictions based on age, weight, geographic location or health history.

✔️CHM can be used as a complementary option to Medicare. With this in mind, note that CHM is always a secondary to other payment sources.

✔️You can join anytime- no open enrollment period.

HOW TO JOIN

To join, simply fill out the online application and choose your starting date.

You’ll receive your welcome packet and CHM membership card within two to three weeks of submitting your application. You also will receive Heartfelt , CHM’s monthly magazine, around the 1st of each month your monthly bill around the 15th every month.

DETERMINING IF IT'S RIGHT FOR YOU

I know, all this information is daunting. Unfortunately, when it comes to insurance, figuring out the best option is not usually a cut and dry answer.

For us, while we are having children, it makes financial sense for me to be on CHM. Here's why:

If I take my monthly membership dues + yearly brothers keeper dues, the total for my healthcare coverage is $2,300 under CHM. Because they share 100% of eligible maternity bills after my personal responsibility of $500, I pay significantly less than $10,000 to have a child.

Even if I did go to the chiropractor routinely, it doesn't cost that much per visit- maybe max $50. I don't need insurance coverage for that, we save for medical costs on a regular basis.

If you have a medical condition that requires a lot of procedures, prescriptions and/or doctor visits, CHM might not be the best fit for you. Please note CHM WILL share for catastrophic medical events (car accidents, cancer, broken bones, etc).

REAL LIFE EXAMPLE - PREGNANCY & BIRTH COVERAGE

Paying a ridiculous amount of money for the birth and care of our first child is what prompted us to begin looking for an alternative to traditional health insurance.

After looking and doing a lot of research and number crunching, I signed up for the Gold Level Membership with the Brothers Keeper add-on.

I am the only member of my household using CHM, as it was cheaper for my husband and children to be on a high-deductible family plan through my husbands employer.

Here's a breakdown of how my maternity and labor/delivery bills have been shared by CHM.

MATERNITY & LABOR/DELIVERY BILL SHARING BY CHM

We paid around $1,000 out of pocket for the maternity/prenatal care and labor and delivery of our second child .

The $1,000 consists of our $500 deductible, and $500 for costs that were not eligible to be shared by CHM, which was primarily the cost of vaccines.

It's important to note that each hospital has their own policy on how they handle billing for maternity and labor/delivery.

Our hospital bills you for your regular maternity appointments after you deliver. It's a global charge, meaning that it is a fixed amount you pay for your prenatal care. Our global charge was approximately $3,800.

Approximately one month after submitting a document showing the global charge (this document came in my prenatal binder given to me at my first prenatal appointment), I received funds to pay the global charge.

Because our healthcare provider offers a 20% discount if a bill is paid in full within 30 days, CHM expedited the check for my global fee and thus I was able to pay the fee before I was actually billed for it.

In other words, I prepaid this charge using funds received directly from CHM.

LABOR/DELIVERY BILLS

At the time of this post, I have submitted by labor and delivery bills and expect to receive funds to pay those bills soon. However, I am still waiting! Consequently, I will update this post after the bill sharing process is complete.

I expect to receive funds for the full cost of my bills since I am a gold member and also have the brothers keeper add-on.

The new babe is will not be added to CHM, but rather has been added to my husbands family plan through his employer, as it was more cost effective for our family.

Read: How to Financially Prepare for a Baby

PROS & CONS SUMMARY

PROS:

CONS:

MEMBER PORTAL

CHM offers a member portal to submit bills, view the status of bills, download information guides, update account information, etc.

Because of this feature, the manual process of obtaining and submitting itemized bills is actually rather easy! Moreover, having the option to submit and upload bills online drastically reduces the time it takes CHM to share those bills!

THEY HAVE TONS OF RESOURCES !

Without a doubt healthcare cost sharing is different than traditional forms of health insurance, but let not your heart be troubled!

CHM has TONS of resources for their members to help them navigate the process of submitting medical needs, using your member portal, and working with your hospital.

These resources include videos, pdf guides, health care provider letters, examples of itemized bills, etc.

Video Resources

The video resources pictured left are available for you to help you through every step of the process.

For example, there are videos on how to submit bills, knowing the terminology, maternity bill processing, the CHM guidelines, etc.

The videos are meant to be a visual tool to help you!

PDF Guides

In addition to the videos, the PDF guides are meant to help you understand the bill sharing process, what costs are eligible for sharing, and provide a more detailed instruction for members.

Other Resources

Together with the videos and pdf resources, CHM also has a blog, radio show, magazine, and legal documentation available to members.

Therefore, you should be able to have just about every single question you could have about CHM answered without every having to make a phone call!

I have been impressed with the abundance of resources available to help you learn the CHM member sharing process!

FINAL THOUGHTS

Ultimately, it is up to you and your family to decide what health insurance option/alternative is best for you.

I highly, highly recommend Christian Healthcare Ministries as an affordable alternative to traditional health insurance.

While I was skeptical at first, after being with CHM for a year now and going through pregnancy, I can say with 100% confidence it was the right choice for us.

The main reason we chose to go this route is because while in the season of childbearing, it is most cost effective for us to do so. If I were to be on my husbands high deductible plan, we would be liable for $10,000 per birth of child!

I am SO thankful for CHM and how they have lowered the cost of childbearing for our family! :)

You can fill out an application and start today by clicking here!

Leave your questions in the comments and I'll be sure to try my best to answer them to the best of my knowledge.

FAQ'S

IS IT LEGAL?

YES! CHM is a non-profit federally certified exemption to the Affordable Care Act, and therefore is an eligible option under national healthcare laws.

CHM will provide you with a letter to give your healthcare provider if they are not familiar with how CHM works.

WHO IS ELIGIBLE TO JOIN?

Anyone who holds upholds the same belief system as CHM (and signs their document stating so) . Additionally, CHM has no requirements regarding-

WHAT DO YOU MEAN BY HEALTH CARE SHARING MINISTRY?

CHM is NOT insurance, this is important to understand.

However, it is a unique and affordable alternative and just because it's not technically insurance, that shouldn't make you afraid!

The mission of CHM is to glorify God and serve his people! They do this by providing an affordable healthcare option to Christians as a community of believers to rally around and encourage each other.

Yes! CHM is a great compliment to Medicare. Please note, if you have Medicare, you must have parts A & B. CHM will only share bills as a secondary option/resource to Medicare.

CHM knows that spiritual support is just as important as financial support. Because of this, CHM sends a monthly magazine sharing testimonies of various families/members of CHM. Additionally, CHM has a prayer page included in the magazine with specific prayer requests from members struggling with different medical situations.

No, no one is excluding from participating (so long as you agree to the CHM guidelines). However, there are a few ineligible treatments for sharing (immunizations, regular/routine checkups, non-incident related prescriptions, etc).

No! This is one of the things about CHM that seems "too good to be true!" Regardless of your income you are eligible to join and you will pay the exact same amount as everyone else.

Brother’s Keeper is your safeguard against catastrophic illness or injury. Brother’s Keeper is a low-cost, Bible-inspired program enabling CHM members to meet medical bills that exceed the $125,000 limit per illness specified in the CHM Guidelines .

Gold level members: Signing up for Brother’s Keeper provides unlimited cost support per illness (diagnosis).

Silver and Bronze members: Signing up for Brother’s Keeper provides an additional $100,000 of cost support. With each annual Brother’s Keeper renewal, participants receive an additional $100,000 of assistance, up to $1 million per illness.

Resources

8 Sinking Funds I Always Budget for & How I Do It

Thu, 07 May 2020 20:43:00 GMT

Sinking funds are a great way to save for expenses that often catch us off guard!

Does it seem like certain expenses seem to pop up out of nowhere every single year and cause you endless money frustration?

You were planning on buying a new table because your kids have worn yours out, but you forgot about the fees associated with school sports. Looks like the table will have to wait another couple months.

The cycle continues. The next month, you FINALLY get to purchase your table.... but you weren't expecting your car to break down. I mean come on- didn't you just get it fixed a couple months ago?

If this cycle is one that you are familiar with, know that we go through the same thing- and that's why I've found a better way to deal with it.

You see, I know that murphy is going to hit us. It's not if - it's when.

Just this month we had a water pipe burst, our AC unit needs to be replaced, and we just had a baby last month!

Talk about a triple whammy!

I could choose to focus on what is going wrong and how much it's going to cost us and wallow in despair, or I can prepare and focus on the positive.

SINKING FUNDS

WHY THEY ARE IMPORTANT

The biggest reason I love sinking funds is because they take the stress out of budgeting. Before we started budgeting, I constantly felt like I was on the defense when it came to our money.

Expenses always snuck up. I'd have to put off something else I wanted to spend on in order to make up for the surprise expense. There was no plan. Stress levels were high because we couldn't save as much money as I wanted (and knew we could).

Finally, we started budgeting and in the process set up our sinking funds!

This is how they will help you:

Doesn't this sounds great? It is! I can't wait for you to set up your sinking funds and see how it takes the stress out of your finances :)

[et_bloom_inline optin_id="optin_1"]

8 SINKING FUNDS YOU NEED IN YOUR BUDGET

While you can set up a sinking fund for anything you'd like, these are 8 sinking funds I recommend you have in your budget for sure!

This list is not exhaustive, if you have another annual or semi-annual expenses, set up a sinking fund for those as well!

Other ideas for additional sinking funds include:

We will get more into this in the next part of this post!

HOW A SINKING FUND WORKS INTO THE BUDGET

LIST ALL YOUR IRREGULAR/SEASONAL/BIG-TICKET EXPENSES

Use the list above as a guide for getting started, and list all your seasonal/irregular expenses that come up throughout the year.

It might be helpful to look at 3-4 months of bank statements to get a good idea of what your true expenses are.

Be sure to include expenses that are not necessarily "due" at a certain time, but expenses that come up irregularly and catch you off guard.

Typically, these are expenses that are not predictable, but they are probable. For example, you don't know exactly when your car will need fixing next, but you can assume that it is probable your car will not go years and years without needing any work done.

Therefore, it would be a good idea to set up a sinking fund for car repairs. This way, when the car does need fixing, you have the money saved (or at least a good start).

This is a lot less stressful than having to figure out how you're going to foot the whole bill in a matter of weeks!

BREAK EXPENSES DOWN INTO MONTHLY AMOUNTS

Once you have a comprehensive list of all your true yearly expenses (to the best of your knowledge), convert each expense into monthly amounts.

Let's say your car insurance premium is $300, and is due semi-annually on June 30 & December 31. In order to have the funds saved up for this, you would need to budget and set aside $50 per month.

If you're reading this post and your car insurance premium is due in four months and you have nothing saved, then divide the total by four months rather than twelve months so you can get on track.

ADD TO YOUR MONTHLY BUDGET

Once you break down your sinking funds into monthly amounts, now it's time to take those amounts and add them to your monthly budget.

Be sure to add all your sinking funds to your monthly budget. If you find that after adding your sinking funds your budget is in the negative, you are going to need to adjust other categories downwards.

Can you cut your eating out budget? Personal spending?

Whatever the case, your budget should total zero. Every single dollar should be accounted for.

UPDATE (OR CREATE) YOUR INCOME ALLOCATION SHEET

I break my monthly budget down by paycheck. In other words, I allocate my income to each budget category.

This sounds confusing, but really all I'm doing is taking my broad monthly budget and breaking it down into smaller pieces, so I know exactly how to budget the income that flows in throughout the month.

⭐️ Read: Budget by Paycheck Method

This is the exact excel budget by paycheck template I use!

You can see in the picture above that I have a monthly budget example on the left and each paycheck during the month is assigned a budget amount.

You do not have to do your budgeting this way, but it helps me stick to my budget!

Otherwise, when you create your monthly budget at the beginning of the month, you could be tempted to spend more than what you are in taking in during the month.

Even though in TOTAL at the end of the month you may spend less than you take in, your timing (when you actually get paid vs when you're spending) might be off. Then you risk having a negative (overdraft) account balance.

We do keep a "cushion" in our checking account because we are actually one whole month ahead on our bills at ALL times.

However, when I see those dollars in our account, I'm not seeing what they are actually "assigned" to.

Hopefully that makes sense :)

TRACKING YOUR SINKING FUNDS

There are a few different ways to track your sinking funds , while I recommend at least keeping them in an account separate from your regular checking, no certain way is right or wrong. Just make sure you're tracking the balances!

➡️Keep in regular checking account.

If you go this route, be super diligent about tracking your balances and reconciling your checking account every single month. You don't want to get sinking funds mingled into your regular, monthly expenses.

Additionally, you will be tempted to use your sinking funds to cover other expenses when your budget is short, don't do this (if at all possible)!

➡️ Transfer to your savings account.

If you've read my other content, you know that I recommend keeping your emergency fund in a savings account. You can add your sinking fund savings to this account, just be sure to once again, keep track of the balances of the sinking funds vs. your emergency fund.

➡️ Open a separate bank account specifically for sinking funds.

In my opinion, this. is the best option. This way, you deter any temptations to use your sinking fund money for other things!

If you struggle with financial self-discipline, this might be a great option for you!

What to Do With Your Stimulus Check Based on Your Financial Situation

Sat, 25 Apr 2020 22:32:00 GMT

When the government announced they would be sending out stimulus checks, did anyone else see Oprah in their mind saying "you get a check, they get a check, everyone gets a check!" ??

Or was that just me?! ;) Despite how you feel about this stimulus check situation, the reality is if you meet the requirements you're going to get it.

The requirements are as follows.

To qualify for the FULL amount of aid, your adjusted gross income (income before taxes) has to be under-

The money received would be reduced by $5 for every $100 your income is over these limits. That being said, if you make over $99,000 as an individual or $198,000 as a married couple, you would be phased out completely from receiving any relief.

If you are within those limits and you have not yet received a stimulus check, you can find out the status of your check by clicking here.

So, you got a check dropped into your bank account, now what to do with it?!

THE IMPORTANCE OF AN EMERGENCY FUND

A fully funded emergency fund means that you have 3-6 months of household expenses saved in cash.

These funds are specifically set aside and not to be touched unless there is an emergency.

Right now, if you do not have an emergency fund, this needs to be your first priority! Don't wait for the government to bail you out.

Although what's happening economically is not your fault, financially responsible people have money set aside for a crisis.

If you do not, hopefully this is a wake up call!

WHEN DO YOU USE YOUR EMERGENCY FUND?

An emergency would be something like a loss of job, major unexpected household repair, or any other expense unpredictable and unlikely in nature. A new couch is NOT an emergency.

Many household and auto repair expenses aren’t emergencies either, and this is where you need to use discernment. While you don’t know exactly WHEN your car or home will need a repair, you know that at although these expenses are unpredictable in nature, they are probable.

Use sinking funds to plan for expenses that are unpredictable/irregular in nature, but probable (car repairs, home repairs, etc).

[et_bloom_inline optin_id="optin_1"]

ANALYZING WHAT TO DO WITH YOUR STIMULUS CHECK

YOU HAVE A STABLE INCOME

It's important to separate facts and your fears. When we are afraid, we tend to make irrational decisions out of fear.

Don't let fear control you or your money. Instead, make calculated decisions based on the facts of your situation.

If you (and your spouse) have a stable income and a fully funded emergency fund, put your stimulus check towards one of your goals.

GOAL CONSIDERATION

Here are some things I would do if I was in this situation:

If I was in this category and still had student loan payments, I would put the stimulus check towards my student loan debt. Think about it this way, in three months you're going to have to resume payments anyway, why prolong the payoff date?

The goal of the debt snowball (find out more about this method here) is to pay off debt aggressively, and only pause if there is a financial crisis in your home.

There might be a financial crisis in our world right now, but that doesn't mean YOUR household is in a financial crisis!

If you've done the things you need to do to prepare for turbulent times (have an emergency fund and live within your means), you don't need to operate out of fear.

STUDENT LOAN DEFERRAL?

I'd highly recommend having paying off debt as your top priority if you have a stable income and fully funded emergency fund.

Although student loan deferral does not accrue penalties and interest, this does not mean the loan is forgiven. Rather, those payments are still due, it's just extending the period of time you have to pay it (without penalty).

Currently, you can defer your payments through September 2020. However, if you want to pursue this option, you need to contact your student loan provider. They will not automatically defer your payments, you have to call and request deferral.

YOUR INCOME IS UNCERTAIN AND/OR YOU'VE BEEN LAID OFF.

If your income is uncertain or you've been laid off, use this money for what it was meant for- to pay for basic necessities or increase your emergency fund.

If I was in this situation, here is what I would use a stimulus check for (in this order)-

OTHER CONSIDERATIONS WITH UNCERTAIN INCOME.

The key to managing your finances well is a budget. I know it sounds simple, but it works!

I can't tell you how much peace living on a budget brings me. Why?

Because I know we're living on less than we make. Our financial goals of saving, investing, and paying off our home early are being met. We don't need a stimulus check to make ends meet.

I don't have to guess about these things- I know they are happening because we are actively telling our money where to go.

Get my monthly budget template for free and step by step help for setting up your budget, modifying it every month, and sticking to it!

OTHER FINANCIAL DECISIONS

In addition to what to do with your stimulus check, many other financial questions arise when we have a global money crisis.

SHOULD I KEEP PAYING OFF DEBT?

If your income is stable and you have a fully funded emergency fund, don't be afraid to continue to pay down debt.

On the other hand, if you don't have 3-6 months of expenses saved up and/or your income is uncertain or lost, I would pause the debt snowball for the time being.

Once this passes, and it will, continue with your debt snowball.

More on paying off debt:

WHAT ABOUT INVESTING?

If you have a stable income and fully funded emergency fund, keep investing 15% (or more) of your gross income.

Many fearful investors pull their money out of the stock market when things start to look bad. As a result, they miss out on the gains of the stock market when it rebounds. Then, they try to dump their money back in, but they have to buy the same investments at a much higher price!

Don't be fear mongered into making irrational decisions.

Take the money from under your mattress and go march it back to the bank ;)

DOES MY BUDGET NEED A CHECK IN?

Now is the perfect time to do a budget check-in . What I mean by this, is it's important to set aside time to evaluate your budget every so often. This ensures that your budget is still reflecting your priorities and you're continually making modifications to it as life changes.

Right now, many of you might be in a time where life is changing and there are a lot of unknowns related to your income, or you just are feeling a bit uneasy and you want to make sure you have all your bases covered.

Either way, here are a few questions to ask yourself when evaluating your budget.

Make your budget reflect your priorities.

If you don't have a budget, I have many templates to help you get started:

A budget lets you control your money instead of it controlling you!

WHERE DO I START IF MY FINANCES ARE A MESS?

Hey, I'm not going to shame you. What worked for you before might not be working for you right now, and you need a plan and some hope!

If your finances are a mess and your head is spinning with where to begin, stop, take a breather, and walk through these steps.

--> Start with what you have today . How much money do you have in your account and what bills are due before you either get paid or have income coming in again?

--> Make a plan for every single dollar in your account today. Where is each dollar going to go? Focus on the four walls (food, transportation, shelter, and utilities). Next, focus on any other bills that aren't necessities. Can you pay them all? If not, don't. Make sure your family is fed and the lights don't get shut off.

--> Create a Budget. What does it take you to live every month? Look at your bank statements for the first four months of the year. Find out what your true expenses are. No more guessing. Ignorance is not bliss!

--> Evaluate Whether You Need More Income. Obviously if you are facing job loss, the number one priority is to find work ASAP. If you have not lost your job but you are spending more than you make and/or in debt, consider getting a second job. This can be temporary until you get your finances under control. Consider finding a job at a grocery store or delivery job (Postmates and Instacart) .

--> Read my post How to Stop Living Paycheck to Paycheck and Get One Month Ahead on Your Bills ! This is an excellent resource for budgeting when you are living paycheck to paycheck!

Focus on one paycheck at a time, and build from there. Make sure every time income comes in, it get's allocated based on your budget. Here's a template to help you do that.

Remember, now is a great time to make sure your home is in financial order!

Don't wait for the storms to come, beat them to the punch.

You can do it!

The Biggest Reasons for Financial Problems in Marriage

Sat, 25 Apr 2020 15:00:00 GMT

First of all, if you have financial problems in your marriage, you are NORMAL. This doesn't make it right, but I want you to know that you are not alone.

Many couples experience financial stress in their marriage at some point.

The problem is that at that point 50% of people give up on the marriage.

If you can identify the problems early and commit to working through them, you can save yourself a lot of trouble!

Tons of research has shown that the reasons listed below for financial struggles in marriage are truly the cause of many money fights.

Safeguard your marriage against these issues!

ON A FINAL NOTE

Financial problems in marriage can be avoided if you're willing to put in the work and fix the problem ,before it even begins.

If you can combine your bank accounts, agree on priorities and goals (how the money should be spent), and budget together, you're a long ways ahead of most couples!

How Being Frugal Will Keep You From Being Broke

Sun, 19 Apr 2020 11:00:00 GMT

I've been called a lot of things, but being called frugal is by far one of the best compliments I've ever received.

This comes as a surprise to many, because the word frugal is often equated with being broke.

The truth is many frugal people are far better off than those who are not.

In Thomas Stanley's The Millionaire Next Door (a fantastic book that should be required reading in high school), he notes that the average millionaire lives a rather modest lifestyle.

Your life is the sum total of all the decisions you make- good or bad, and it's the small decisions that matter most.

Why? Because the small decisions and habits you develop early on dictate how you respond to larger decisions.

You can call me frugal, just don't call me broke, and let me explain why.

A NEW DEFINITION OF BROKE

Broke probably isn't what you think it is.

It might be the family next door with the brand new SUV. Or, it could be your flashy cousin who just bought a half million dollar home on the golf course.

Simply put, being broke means you spend more money than you take in, you don't save any of your income, and/or you have debt.

Until those three things change, you're broke.

WHAT SETS FRUGAL PEOPLE APART

1. DEBT FREE LIVING

If you're living under the bondage of debt, you're not living at all. The truth about debt is that it is a product that has been so heavily marketed to us that we feel like we can't live without it.

Most people think having $10k on a credit card, a car loan, a house loan, and student loans is normal.

Those same people scratch their head and wonder why they never have any money left over to put into savings for unexpected financial difficulty or retirement.

When you have monthly payments, you are a slave.

Those monthly payments TELL YOU what to do with your money, instead of YOU TELLING your money where to go.

We used the debt snowball to pay off over $20k of student loan debt in 12 months when newly married and living on one income.

The spreadsheets seen above are the perfect sheets to help you track your debt payoff progress!

2. WE LIVE ON FAR LESS THAN WE MAKE

Frugal people understand the value of delayed pleasure.

We choose to live on far less than we make so that later we can enjoy the fruits of our labor.

This is accomplished by living on a household budget.

Budgeting is the key to unlocking financial freedom.

It all starts with the small disciplines that you add to your daily life that influences the direction of your finances.

While budgeting seems like a good thing to do but not necessarily something that will change your life, I'd challenge you to give it a try and see how it transforms your finances.

When you start living on a written, monthly budget , you all of a sudden feel like you have more money!

3. SAVING IS SECOND NATURE

Frugal people understand the opportunity costs of their financial decisions . If you decide to buy an expensive item, that means you forgo the opportunity to invest that money and earn compound interest on it. However, they also understand that focusing on value when making purchases is important. Instead of buying expensive items on a credit card, they save up for them. In addition, they save for retirement, and have a fully-funded emergency fund for a rainy day.

Saving up for large purchases over time can be accomplished using sinking funds. Ditch the credit card and try your hand at saving up over time. You'll never go back!

4. WE UNDERSTAND YOU ARE NOT WHAT YOU DRIVE

A car payment is most people's second largest monthly payment aside from their mortgage.

Car payments kill your ability to build wealth.

I got made fun of quite often for driving a 16 year old car I bought in college until this year when we bought a used minivan with cash.

But you know what? It really doesn't bother me at all.

I have reached the point where what people think is not my primary motivator.

Am I against drive a nice, new car that's paid for in cash? Absolutely not!

However, I know that a new car is most definitely not an investment.

A new vehicle loses 60 percent of it's value in the first four years. A $28,000 car will lose $17,000 of value in the first four years you own it. This equates to almost $100 per week.

You might as well drive down the highway throwing $100 bills out the window.

I drove my 16 year old car because there's nothing wrong with it and it's cheap to drive.

Driving a fancy vehicle isn't a priority for me because it's not an investment.

5. CREDIT CARDS DON'T ENTICE US

Credit card is just the greek phrase for demon. Just kidding. Kind of.

We don't see a need for a credit card. If we only buy what we can afford, we don't need one.

I've done my research regarding credit cards.

I know that the additional money you spend because of the psychological effect of credit on your brain far outweighs the benefit of cash back or airline miles.

Most people don't understand how we can live without a credit card because of the myth of the credit score.

T o put it simply, we don't bow down to our FICO score and we haven't needed to show "good credit" for anything other than buying our home.

A good credit score isn't an indication that you're good with money. It indicates that you interact with debt a lot.

My debit card does everything a credit card would do, the kicker with the debit card is I have to actually have the money to spend it. Dumb, right?

6. OUR GOAL ISN'T TO KEEP UP WITH THE JONESES

Most people struggle with the temptation to 'Keep Up With the Joneses' at some point in their life.

This is a struggle for me all the time.

I'm committed to being a disciplined saver and invester, but with that comes sacrifice

We live on a budget. Our cars aren't brand new but they are paid for. We are not house poor.

In other words, we are delaying our gratification.

We are going to live like no one else now, so that LATER we can live like no one else.

7. WE SAY NO TO LITTLE THINGS SO WE CAN SAY YES TO BIG THINGS

I might say no to an extra vacation every year, eating out multiple times a week, and buying an obnoxious amount of Christmas gifts, but you can but I'm saying yes to investing over 15% of our gross income for retirement.

Our kids won't be involved in every single activity there is growing up, but Lord willing their parents will leave them a legacy one day.

Frugal people say no to small things so they can say YES to big things.

How to Quickly Start a Budget When You're Completely Lost

Thu, 09 Apr 2020 22:36:00 GMT

It can seem like an impossible and daunting task to start a budget when you have absolutely no idea where to begin.

Maybe at this point you have no idea where your money is going. Or, maybe you have somewhat of an idea, but you want to be more disciplined and dedicated to a budget plan.

I've always been a girl who loves numbers. I make spreadsheets for fun. My ideal date would be planning our next months budget over a couple calculators and a glass of wine. I'm not kidding.

However, if you're not this type of person it can feel hopeless to get control of your finances!

That is why I started this blog. To help people who feel like they're not equipped or not knowledgeable enough to manage their finances and kill money stress.

Let me tell you right now, you CAN do it, and you WILL.

Yes, it's frustrating at times, but it's SO worth it, and to be quite honest it's a lot simpler than you probably think!

Here's where to start with budgeting when you have absolutely no idea what you're doing.

HOW TO START A BUDGET WHEN YOU'RE LOST

You can snag this monthly budget printable for free right here!

THE MYTH: BUDGETING ONLY WORKS FOR SOME PEOPLE

FRUSTRATION #1: UNEXPECTED EXPENSES

Many people avoid budgeting offering the excuse that budgeting is frustrating because the budget never works out perfectly, and they claim there's only so much you can plan for- unexpected expenses always come up!

Let's be real here. How many expenses are REALLY, TRULY, unexpected?

Yes, your car might suddenly break down and cost $500 to fix. You can't predict when that will happen, but did you really expect your car to run forever with no issues whatsoever?

If you're being HONEST with yourself, the expenses that you claim are unpredictable are actually expenses that are probable, but

FRUSTRATION #2: TIME

If you have ten minutes to scroll through Instagram, you have time to keep up a monthly budget.

While it's true that the initial set up takes a little more time, the time lost is paid back exponentially as you learn to save more, spend less, and meet your financial goals.

I'd submit to you that you can't afford NOT to budget. It must be a priority in your schedule. Once you get a few months of budgeting under your belt, it starts to become second nature and you'll be on your way to a budget that only takes minutes to complete every month.

FRUSTRATION #3: I'M NOT A NUMBERS PERSON

You don't have to be good with numbers to be great at budgeting. In fact, you don't even have to know how to add because we have a calculator to do that for us.

My husband is a free spirit, meaning he's a go with the flow type person who

WHAT IT COMES DOWN TO

Ultimately, you can throw out every excuse in the book not to budget.

The truth is, most people are simply afraid to face their money fears and are scared of seeing where things are really at.

It's not the time, or unexpected expenses frustration, because you make time for a lot of things in your life that are frustrating at first.

It's the fear of knowing where you truly stand and realizing that your money habits and behaviors need change.

1. START WITH WHAT YOU HAVE RIGHT NOW

How much money do you have? What bills need to be paid before your next paycheck? This is your starting point.

I'm a realist, so although it's important to make a monthly budget BEFORE the month begins and have a plan in place, it's also important to ultimately adjust and deal with your ACTUAL monetary dollars.

Before you set up your monthly budget, start with what you have in your bank account right now.

Take that amount, and assign every single dollar a job until you're paid again.

Here are some pointers for doing this:

Once we have the dollars in our account RIGHT NOW (actual money) assigned, we can move onto making an actual budget for the rest of the month and a blueprint for every month.

2. THE MECHANICS- SET UP THE BUDGET

Before every month begins, you need to review what income you expect to come in. Don't leave anything out- include bonuses, cash gifts, alimony, child support, annuities, unemployment, social security, etc.

Write this amount down at the top of your budget template.

IRREGULAR INCOME?

If you have irregular income, estimate your months pay either based on prior year or current year trends.

Be conservative in your estimate.

I highly recommend using a budget by paycheck worksheet if you have irregular income, because this helps you stick to your overall monthly budget by breaking your budget own by each specific paycheck.

Irregular income tips:

What are your fixed, variable, seasonal & discretionary expenses?

To get an accurate picture of what it takes you to live every month, go over your past couple months of bank statements.

This will give you a good idea of what your true expenses are, rather than your best guess that you have in your head.

The reality is that what we THINK it takes us to live is often a lot less than what it actually takes us to live every month.

The little costs add up, the big costs sneak up on us, and unless you have a written monthly budget and you're consistently tracking your spending, the truth is you really have no idea where you're at financially.

At this point, many people realize that what is going out of their checking account is actually more than what's coming in, the timing is just off.

You could constantly be operating your household at a deficit and not realize it because your bank account shows a positive number.

But then you forgot about the real estate taxes that are due next month, your semi-annual car insurance premium, and you're forced to pull money from your savings to avoid an overdraft.

In reality, you're just living on a "float", and if you were to have any major unexpected expense you'd have a negative account balance.

LIST YOUR EXPENSES

Once you've figured out what's coming in, list all your fixed and irregular expenses. These are the necessities.

List discretionary expenses after you've listed your goals.

I like to keep track of all my irregular/seasonal expenses using an expense log worksheet.

Be sure to take your time with this step to make sure you are capturing all your expenses (I promise you'll forget a few).

FIXED EXPENSES

These are expenses that don't change from month to month, they are a set amount.

IRREGULAR/SEASONAL EXPENSES

Irregular and seasonal expenses are great sinking fund categories. For more on sinking funds, read 9 sinking funds everyone needs in their budget.

ADD THESE IRREGULAR/SEASONAL EXPENSES TO YOUR BUDGET

These are the "gotcha" expenses that show up *seemingly* out of nowhere.

In this step, break these expenses down into smaller, manageable monthly amounts.

Basically, you put these in your monthly budget and treat them like a bill (just an imaginary one).

This way, when the expense comes due or event takes place that requires a cash outlay, you already have the money saved!

Wouldn't that feel amazing??

DISCRETIONARY EXPENSES (* CALCULATE IN YOUR BUDGET AFTER YOUR GOALS*)

Discretionary expenses are ones that can be easily adjusted. They aren't DUE (like bills), and therefore they hold room for manipulation in the budget.

Write these expense categories down for now, but don't assign amounts quite yet, we will first add our financial goals to our budget.

Once you've listed all your different types expenses, add your goals into your budget.

Financial goals include things like saving, investing , and leaving a legacy.

The first goals that you should add into your budget include:

If you don't have a lot of money in savings, focus on building your emergency fund first.

To add goals into your budget do the following:

By performing this exercise/step in the budget process, you are forced to realize that there are trade offs with your money, and you are able to make decisions based on your priorities.

This gives you POWER over your money. You are now controlling it and telling it what to do instead of the other way around.

So, in light of the whole budgeting process, after you've taken your income less your fixed & seasonal/irregular expenses, what are you left with?

Take that amount and allocate it to your financial goals and your discretionary spending.

The reason I want you to first consider your financial goals is because you will now decide what your priorities are. If you REALLY want to save money fast, adjust your discretionary spending to the lowest possible level and allocate the remainder to your goals.

If you don't want to be super aggressive and having personal spending cash is more important to you than paying off debt, you can allocate the money based on those priorities.

Look at your discretionary (most flexible/adjustable expenses) in conjunction with your financial goals and set your budget for each.

After all is said and done, your total expected income minus your total budgeted expenses should equal zero.

If you budget all your income for the month and you have $100 left over, you're not done yet.

Allocate those dollars to saving, paying off debt, retirement or another goal.

Don't leave any dollars unaccounted for!

After you've made your budget, it's time to track your spending .

If you've never done this before, you're about to learn a lot about where your money is going.

This isn't meant to be a restriction but rather a strategic plan to free you from the stress of constantly having to worry about money.

If you create your budget but then don't update it throughout the month, all you've done is created a forecast.

Budgeting requires you to be proactive. No, I'm not talking hours a day spent on your budget.

Maintaining your budget shouldn't take more than five minutes per day.

I highly recommend entering your transactions daily, so that you get in the habit and you don't have to login to your online banking and try to figure out where you left off.

Tracking digitally can save you a lot of time budgeting every month, and that's why I create an excel budget template that is easy to use and lays out your budget in a simple format.

You can use this template to fit your budget schedule- enter amounts daily, weekly, or use it at the end of the month to put your budget in "final format" and use it as a starting point for the next month!

HOW DO YOU COMPARE TO RECOMMENDED BUDGET PERCENTAGES?

Once you have a well drafted budget, it's important to evaluate.

Are there certain areas that you deviate from the chart (pictured left) by a lot?

If so, evaluate if this is reasonable. Obviously, if you have an hour long commute to your job, your transportation budget might not fall within the 10-15%, but use the chart as a guide to evaluate if you're overspending.

Remember, every budget will be different.

However, use your discernment to evaluate if a budget category is drastically different from the recommended percentages because of circumstances, or because of behavior problems.

For instance, if you're single and spending $500 a month eating out (I know that's a bit dramatic), don't make excuses for why that's necessary because of your circumstances.

NOW WHAT?

START WITH SMALL CHANGES

While there's a time and a place for drastic budget changes (if you're paying off debt), being realistic with your budget is key to helping you stick to it.

If you're spending $800/month on groceries for your family, don't try to cut the budget to $400 in one month.

Rather, focus on trimming different areas over the course of a few months.

As you get your feet wet budgeting for a few months, you'll be able to get an idea of what is realistic for your budget.

WORK OUT THE WEEDS

I'm going to be honest, your first few months budgeting will probably not go great.

That's because just like anything else, budgeting takes practice. It's a learned skill.

It takes approximately three months to get a budget that works down, be committed to working through the weeds of budgeting!

IF YOUR BUDGET IS IN THE RED

If after you create your budget you realize you're actually spending more than you're taking in every month, you need to find a way to either increase income or cut costs.

You can't operate at a budget deficit, it is impossible to build wealth that way.

Here are some tips for cutting costs:

7 Things You Should Never Do in Times of Financial Hardship

Mon, 23 Mar 2020 18:28:00 GMT

It's no secret that financial hardship either has come right now or will come for many people at some point in their life.

Many people just happen to be experiencing that time right now, and I want to encourage you!

Breathe. You'll make it through this. It won't last forever.

During times of uncertainty, it is SO SO tempting to panic and live life based on the spirit of fear.

When the rest of the world is in complete hysteria it's hard NOT to lose your cool.

But you know what I'm challenging you to do right now? Not lose your cool.

God is still in control. You're alive. Take it one day at a time and focus on what you CAN control, not what you can't.

Regarding your finances, I want to help you out and be a voice of reason in your life in the midst of chaos.

So here are some common mistakes many people make during times of financial hardship that you might be tempted to do right now.

7 MISTAKES PEOPLE MAKE DURING FINANCIAL HARDSHIP

1. Make Decisions Based on Panic & Fear

We almost never make smart decisions when our decisions are based on panic and fear.

You have the power to decide how you will react. Focus on what you can control.

It's natural see your heart rate jump as you scroll through social media or constantly check the latest headlines. There is unrest and fear everywhere.

Stay calm. Do NOT freak out. Don't let your emotions take control of your money.

When we operate based on our emotions, we don't operate well.

Have you made a lot of good decisions in the heat of the moment?

Now is not the time to go into doomsday mode and put all your cash under your mattress, drain your checking account buying toilet paper and water, or sit in the bank line for three hours because everyone else is .

If you're in a particularly difficult time of financial hardship, it might be extremely tempting to follow the crowd that is operating completely out of fear and panic.

Letting fear consume your thoughts will NOT help your situation.

Instead, I'll give you some tips (keep reading) to help you navigate this time of hardship.

2. Cash Out Your 401k

Repeat after me: I will not touch my 401k. I will not touch my 401k.

I know what you're thinking, easier said the done.

Take these wise words to heart-

Just don't do it. You WILL regret it. Specifically, you'll regret it when the market bounces back.

3. Go Into Debt

No matter how tempting it may seem, now is NOT the time to go load up your credit card and dig yourself further into a hole.

It sounds promising, but remember, at some point the bill will have to be paid and digging yourself further into a hole isn't the way to go at a time like this.

Debt is slavery.

Paying off debt & other debt resources:

4. Neglect Your Budget or Live Without One

I think many people are learning something right now- that a financial plan is crucial!

If you aren't on a budget yet, it's about high time you get on one.

You can find the four editable PDF templates pictured above here .

This is a wake up call for many people who have never cared to track where there money is going. Now they're left wondering why they don't have any spare change.

So if you aren't living on a budget, here's how to create your first budget.

If you don't live on a monthly budget, you really can't ensure that you are stretching every dollar as far as it can go because you don't know where your money is going in the first place.

Getting on a budget will allow you to make your dollars go FARTHER because you can find what you can cut out and get your budget in tip top shape.

PAYCHECK TO PAYCHECK BUDGET

Once you have a broad monthly budget set up where you direct every single dollar to a purpose, you need to break your budget down by paycheck and allocate your income to different categories.

If you don't do this, all your doing is creating a forecast instead of a budget.

Budgeting requires you to be proactive.

On the left is an example of a budget that is being broken down by paycheck.

This is the exact budget by paycheck template I use every month to allocate our income to our budget categories.

When you budget this way, you can break down your big picture monthly budget into smaller chunks that make it easier to follow & easier to track!

Every time you get paid, you can fill out this template and adjust for any differences in expected pay vs actual pay.

EXCEL BUDGET

If you like to track your finances digitally, keeping an excel budget template makes the process seamless.

The template I created to the right is simple, easy to use, and will help you keep your finances on track.

All it takes is filling in the budgeted column until the budgeted income and expenses total balances to zero, and update the actual column as the month goes on.

The two columns on the far right show the difference between your budgeted and actual spent as well as what percent of your income that category took up for the month!

An excel budget template works great for people who are using their computers regularly and like to keep everything digital!

5. Not Make Any Changes if Your in a Tough Situation

Many people are going to have to make some major budget changes in the near future. It's inevitable.

Think about what you can cut out/go without for now.

I'm not saying everyone needs to drastically change their budget, but if you need to, take heart knowing there's always ways you can reduce spending.

If you find yourself out of work and in financial hardship, don't panic. Go out and get some part-time work!

There are many jobs opening across the country as people flock to grocery stores, delivery services, etc.

Resources to Make More Money:

6. Keep Your Debt Snowball Going if Money is Tight

If you're being hit very hard right now (or likely will be in the near future), it's okay to pause your debt snowball.

Instead, focus on building up your baby emergency fund.

Once this particularly difficult time passes, then it's time to get gazelle intense again.

Don't feel like you're failing if you have to put paying off debt on pause! We had to put our aggressive debt payoff on pause when we had to replace the motor in my husbands truck.

While at the time it felt like failure, I was glad that we had to cash set aside to pay for the expense, and that's exactly what we did- paid for it and then resumed the debt snowball.

Remember, this too shall pass.

7. Focus on What You Can't Control

You can't control the returns on your retirement account right now. Nor can you control other peoples reactions to the social, political, and economic environment.

You can control your attitude, your decisions, and whether you will operate out of faith or fear.

Take heart, my friend. It won't last forever.

Financial hardship is temporary, don't fall into a negative long-term mindset.

Stop Living Paycheck to Paycheck & Get A Month Ahead On Your Bills

Thu, 05 Mar 2020 02:21:00 GMT

Living paycheck to paycheck is a frustrating and dangerous cycle that can seem nearly impossible to get out of when you're stuck in it!

I'm going to show you how to break the cycle and give yourself some breathing room!

When live on your prior months income, you have money waiting for your bills instead of your bills waiting for money.

If you currently live paycheck to paycheck and you feel as if you're constantly trying to stretch your last dollars until you get paid again, the best thing you can do is build a buffer in your checking account.

I recommend having a buffer of a month's worth of income.

In other words, your checking account balance will rarely dip below one months worth of income!

How amazing would that feel??

Here's how to do it.

HOW TO GET A MONTH AHEAD ON YOUR BILLS

FIGURE OUT YOUR TOTAL EXPENSES.

The first thing you need to do is figure out what it will take to get a month ahead on your bills.

In other words, what does it take your family to live every month? Do NOT guess.

Most of the time, if someone thinks it takes their family $3,000 to live every month, the number is actually closer to $4,000. Just for fun, write down what you THINK it takes you to live every month (if you aren't already on a budget and don't know this number for certain).

List out ALL your household expenses (both monthly and irregular/seasonal expenses ). Additionally, for variable expenses, use an average monthly amount.

Here's how to do this in just a few steps:

You don't have to include discretionary expenses (expenses that are desired by not necessary) when doing your spending calculations, but include it if you'd like to have these expenses accounted for in your cushion.

BUILD A CUSHION.

Once you have calculated what you spend every month, now it's time to SAVE that amount as a cushion in your checking account.

To some this might seem impossible, but I promise if you're willing to put in the work it will be worth it!

When you live off of OLD money, you'll never want to go back to the paycheck to paycheck lifestyle again!

In order to get a month ahead on your bills, you either need to find extra money or cut your spending.

Did you get a tax refund this year? A year-end bonus? Use that to give you a head start!

The goal is to do this as quickly as possible, if you drag it out too long you're more likely to quit and continue the paycheck to paycheck cycle.

CUT SPENDING.

One way to start building your cushion is to cut your spending for a few months.

USE CASH.

Start using cash envelopes to really get the ball rolling!

When you use cash instead of a debit or credit card, studies have shown that you spend less. Not only do studies show this, but I can assure you from personal experience that when I use my cash envelopes I'm a lot more likely to stick to my budget.

Read my in depth tutorial on how to use cash envelopes to save money!

You can also get my free cash envelope templates sent right to your inbox by subscribing to my email list!

Plain envelope templates work just as good as my fancy floral envelopes, they just aren't as pretty to look at ;)

MAKE EXTRA MONEY.

Another way to build your cushion that might be more realistic for you if you are living on a tight budget already is to make more money.

Remember, this doesn't have to be forever (unless you end up really enjoying your side gig or turning it into a full time deal). The temporary sacrifice is worth the lasting impact it will have on your finances.

Here are some of my favorite ways to make extra money/save more money:

EXTRA PAYCHECK MONTH.

If cutting spending and making more money are not practical for you right now, another option is to wait for a month where you will have an additional paycheck (5 week months).

Save the additional paycheck instead of spending it and use it to get a good cushion!

I'd use this as last resort because it will likely take you more than one full paycheck to get one months worth of expenses in your checking account, so it could take you a whole year to build your cushion!

Ideally, you'd like to have your cushion saved in less than six months.

HOW TO BUDGET LAST MONTHS INCOME

GET ON A BUDGET

First things first, you need to live on a monthly budget if you want to keep your cushion intact. If you don't live on a budget, the cushion will disappear and you'll be right back to living paycheck to paycheck.

When you don't live on a budget, you never really have any idea how long the money in your bank account at any given time is going to last you.

It's a game of Russian roulette- is there going to be more money than week or more week than money?

By living on a budget you are able to assign every single dollar in your checking account .

You are also able to account for every dollar in your checking account, meaning, at any given time you can say exactly where each dollar of your checking account balance is going to go!

No more guessing games. Gone are the days of wondering if you'll have enough money to make it to payday. Less stressing about bills.

If you don't already budget, you need to figure out what method will work best for you and/or your family.

DECIDE WHICH BUDGETING METHOD WORKS BEST FOR YOU

MONTHLY BUDGETING

The first and most common method of budgeting is monthly budgeting. I preach about budgeting A LOT (like it's a full time job) , but I think there are a lot of misconceptions about the method of budgeting that I actually use.

Yes, it's important to set and create a MONTHLY budget, however if all you do is create a monthly budget, tuck it safely in your budget binder and forget about it until the last day of the month, the budget is worthless.

Don't get me wrong- creating a monthly budget is an essential step in the budgeting process , but it's not where the process ends.

If all you do is create your monthly budget and nothing else, you've created a forecast.

You'll likely find yourself frustrated and out of money at the end of the month if this is all you do.

I'd highly recommend creating your budget (see steps below), and then breaking it down by paycheck.

For a step by step tutorial, you can follow my guide to creating your first budget here!

PAYCHECK BUDGETING

Once you have your broad overview monthly budget, breaking it down and allocating income to budget categories is the next step.

This will make it easier to follow your monthly budget, because every dollar not only has a purpose BEFORE the month begins, but you have a plan for whenever a paycheck it deposited!

Don't over complicate this step. Obviously if you're paid once a month this step is very simple.

However if you're paid weekly, it's a little bit more difficult to think about your big picture budget if you don't break each paycheck down.

I have some handy editable PDF paycheck budget templates available in my Etsy shop to help you start getting a handle on your monthly budget!

Or you can snag my free paycheck budget template and get started today!

Don't confuse paycheck budgeting with living paycheck to paycheck .

When you break your budget down BY paycheck you are simply allocating funds.

When you are living paycheck to paycheck, you are out of funds and relying on your next paycheck to replenish your supply and pay bills.

The goal is to use the paycheck budgeting system to strategically plan so that you have money waiting for every single bill that comes due- not the other way around.

For an in depth overview of the budget by paycheck system, read this tutorial.

EXCEL BUDGET

You can also create and track your monthly budget using excel, I personally use an excel budget template to track our budget in addition to a written budget (both monthly and paycheck budgets).

I'm a huge fan of being as efficient as possible (#momlife) , but just know that's when you use digital/electronic tools, it's harder for your brain to connect concepts.

In this case, it's harder for your brain to adjust to budgeting concepts if all you're using is digital products.

That being said, if you're a beginner budgeter, I'd recommend starting with a written budget or using BOTH methods!

MY BUDGETING METHOD

I actually use a combination of all the budgeting methods listed above!

Personally, I like to keep a monthly budget which I use as a broad overview to break down what percentages of our income went to/are going to certain budget categories and so I can see the big picture.

In addition, I keep a budget by paycheck spreadsheet that breaks our budget down by paycheck. This spreadsheet tells me exactly where every dollar of any given paycheck will be allocated. Essentially, it's our monthly budget broken down into smaller chunks. Here's how to create your own.

FINAL POINTS TO AVOID LIVING PAYCHECK TO PAYCHECK

Since I know that when you are living paycheck to paycheck it can be an extremely discouraging time, I want to leave you with some encouragement and key takeaways/pointers.

I hope this was encouraging and helpful!

If you are living paycheck to paycheck, just know that it doesn't have to be that way.

Choose to take control and change your financial future!

The Lost Art of Teaching Kids About Money By Being Hard on Them

Mon, 24 Feb 2020 03:04:00 GMT

As parents, we have such a powerful influence in teaching kids about money.

The truth is teaching kids about money has little to do with math and a lot to do with what you expect of them.

It doesn't seem like that long ago I was 15 years old and falling asleep in Bible class because I'd been up at 5am feeding the calves on my parents dairy farm.

That probably qualifies as child abuse these days. It's sad, but true.

My parents made it clear that we were going to work regardless of the activities we were involved in. Even though basketball and volleyball demanded much of my time, that didn't mean I was let off the hook.

Whether good or bad, our experiences shape, but don't define, who we are.

I wouldn't be who I am today if it wasn't for my parents and the lessons, both direct and indirect, they taught me about money.

Today's generation of parents have lost the art of teaching their kids the value of hard work. Any discomfort or challenges their children face are immediately removed.

I know this sounds harsh, but it's truth, and it comes at a cost.

According to a study, 70% of millennials age 18-34 received financial support from their parents within the last year!

Three-in-five of the participants said they couldn't afford their current lifestyle without the support.

I'd argue this is the result of a generation of young adults whose parents refused to be hard on them.

Here's what my parents taught me by being hard on me, and why I'm glad they were!

I learned everything is earned.

I've learned that reaping the benefits of your hard work is far better than having someone hand them to you.

I had to earn what I wanted. No questions asked.

We wouldn't even think twice about asking our parents for money to go to the movies, for clothes shopping, or for a dinner out with friends, because we knew the answer already.

Any such request (though laughable), if we dared try, would only get the reply, "N-O."

Everything we had (besides necessities like food, shelter, etc) was earned.

Yes, starting in middle school. No, I didn't die.

I learned to show up and work for the things that I want.

Trust me, your kids will not die because they have to work for what they want.

I learned how to budget.

Once I realized that I was responsible for making sure what money I did earn stretched far enough, I was forced to make a basic budget.

Do you want to know part of the reason so many adults are financially clueless?

Because their parents never made them manage money.

After all, if you have everything paid for you don't have to manage!

It's called learned helplessness.

More on Budgeting:

I learned to exceed expectations.

Though I didn't realize it at the time, my parents were teaching me to exceed expectations.

Of course they knew that most of the kids in school didn't have to work as many hours as we did (or even work at all), but they knew that when we left home we'd be much better off.

By setting higher expectations than most parents, they give us an invaluable gift that our employers would thank them for!

I learned life isn't fair, and that's okay.

Any time I was feeling sorry for myself and would tell my parents that it wasn't fair that I had to work and hardly any of my peers did, I'd be met with the response "you're right, life isn't fair."

That response would make me so mad I could hardly stand it.

They were right, life isn't fair, and the sooner I learned that the better.

I learned to differentiate between wants and needs.

One of the most invaluable lessons my parents taught me by being hard on me was that life is full of opportunity costs.

Since I was responsible for my financial well being, I had to differentiate between my wants and needs.

In other words, I was forced to tell myself no quite often, a discipline that has proved to reap great benefits as I've gotten older and made more money!

A FINAL NOTE

Teaching kids about money is a lot simpler than most people make it.

Stop making everything perfect for them. Don't remove every obstacle that comes their way. Have high expectations. Stop paying for everything.

There is an epidemic of a generation of adults that can't function independently of their parents financial support.

So what's one of the most important ways you can teach your kids about money?

Let your kids get used to someone being hard on them.

Chances are they might thank you later ;)

How to Use an Excel Budget Spreadsheet to Save Time!

Thu, 13 Feb 2020 02:44:00 GMT

Using an excel budget spreadsheet is a surefire way to save you time every month managing your finances.

While creating and perfecting your first budget takes time, updating it can be hassle free if you're willing to try something new!

Even if you choose to use an excel budget template to help you with your monthly budget, I highly recommend having a budget binder to help you get a grip on your finances.

The disconnect we experience when we do things electronically changes how our brain responds and it can be tempting to become passive with your finances.

However, the efficiency of a digital money management is hard to pass up, and that's exactly why I keep a written budget binder that gets updated monthly AND a digital budget that gets updated whenever we have money come in!

If you're set on using a digital budget template, here's how to do it!

HOW TO USE AN EXCEL BUDGET SPREADSHEET

FREE GOOGLE SHEETS BUDGET

I have created a simple, easy to use spreadsheet, watch the video below to see how my free google sheets budget template works! Download a copy and get started. Alternatively, I have a detailed excel budget template with spending charts and built-in formulas to help you get your budget up and running!

The google sheets budget template utilizes the budget by paycheck method, breaking your monthly budget down into smaller, more manageable chunks.

DETAILED EXCEL BUDGET TEMPLATE

There are endless ways to use excel and that's what makes it great!

HOW TO FILL OUT YOUR EXCEL BUDGET

BUDGETED EXPENSES

If you want to create a budget that actually works, you need to get a true picture of your expenses. This means you need to know what ALL your yearly expenses are so that you don't leave anything out.

Expenses generally fall into three categories - fixed, seasonal/irregular, and discretionary.

Fixed expenses are ones that typically do not change from month to month, for example rent/mortgage.

Seasonal/irregular expenses are expenses that are sporadic and do not occur every single month. Examples include annual insurance premiums, activity fees, real estate taxes, and Christmas spending. Furthermore, seasonal/irregular expenses include expenses that are unpredictable but probable.

Discretionary expense s are ones that can be easily manipulated. They are not fixed, but they occur regularly. Examples include personal spending money and dining out.

Review your last couple months of bank statements and brainstorm all your expenses that it takes to run your household.

Additionally, write down all expenses that are likely to occur at some point (seasonal/irregular), though they aren't predictable .

For example, you don't know when your car is going to need fixing next, but you know it's probable that at some point it will need repair.

Thus, you should probably include car repairs in your monthly budget as a sinking fund.

Once you have these amounts, input them into the budgeted column.

ACTUAL EXPENSES

The key to getting an accurate picture of your finances is tracking your spending on a regular basis.

You can do this a couple different ways.

EVALUATING YOUR BUDGET

Update & evaluate your budget during the month. You don't need to spend hours analyzing every amount or anything like that, but as events happens and/or circumstances change, be sure to update the budget!

Once you get the hang of budgeting you won't have to do much updating, but it's important to keep the budget up to date.

For example, if you end up going to visit your parents who live a few hours away and you didn't initially plan on it, you'll likely need to update your budgeted gas amount. To do this, simply increase the gas budget and decrease another category.

While this seems counterproductive (like what are we actually accomplishing by budgeting then) , making these changes to your budget forces you to realize that there are trade offs with money.

Before budgeting, if you had to make this extra trip you likely wouldn't have done anything different financially.

Now that you have a budget, you know that it must balance to zero. You can't spend more than you make in a month!

So although our budget is always changing and needs some tweaking throughout the month, we are still accomplishing our goal- assigning our dollars to our priorities!

DON'T FORGET THE IMPORTANCE OF A WRITTEN BUDGET

I would like to give a word of caution that nothing can replace the importance of a written budget .

First, having a written budget it essential f or you to commit it to memory and stay motivated to stick with the process.

This is especially true if you are a beginner budgeter!

Second, having a written budget fosters a change in behavior, which is what we are ultimately after.

Just as using cash helps you connect to your money more and understand the pain associated with spending money, having a written budget helps you connect to controlling your money.

Third, a written budget sets the budget in stone. The monthly budget is like a contract with yourself (and your spouse).

Equally as important as creating the budget is sticking to it. Consequently, if you don't write your plan down, you're not as likely to stick to it!

BREAK IT DOWN BY PAYCHECK

After you create your first budget , I recommend taking it a step further and breaking it down by paycheck.

This way, it's easy to allocate exactly where money needs to be assigned in light of the entire monthly budget.

Not everyone thinks this way, but I know I'm not alone!

I like every single process/plan in my life broken down into smaller, bite sized goals and actions.

Breaking your budget down by paycheck allows you to have a budget and bill pay schedule that fits your specific pay schedule.

One of the most frustrating things about budgeting to me when I first started was having a MONTHLY budget, but struggling to see how that fit our pay schedule.

This template has columns for every paycheck you receive and will allow you to break your budget down into smaller, more manageable amounts.

This will ensure you actually STICK to your budget.

If you're looking to save time budgeting, this excel budget by paycheck template can be saved to your computer or you can upload it to google docs!

I keep this exact template in my google docs so that I can access it from anywhere at anytime!

This spreadsheet will allow you to account for every dollar BEFORE the month begins and DURING the month as your income comes in.

It's important to not just create a budget forecast, but to create a budget and then actively manage it as the month goes on.

If you're into all things digital, you'll love this template!

Formulas automatically calculate.

OTHER TIPS FOR MAKING BUDGETING A BREEZE

USE EDITABLE EXPENSE LOG TEMPLATES

If technology is your jam, you'll love using an editable PDF template to track your monthly bills and spending.

I print these out and put them in our budget binder so I can quickly see what expenses have varied significantly month to month and by how much.

As the month progresses, I type our monthly bills into the PDF and then print when the month is over!

DOWNLOAD THE EVERYDOLLAR APP

I LOVE the EveryDollar budgeting app and if you are an app person, you will love it too!

The free version is all you need to make tracking your expenses a BREEZE.

You can track sinking funds, set savings goals, and set debt payoff goals all within the app.

The beauty of the app is that you can whip out your phone after you've purchased your groceries and enter the expense in a matter of seconds.

If you're always on the go I'd highly recommend using this app to track your budget throughout the month!

CONSISTENCY IS KEY

When it comes to expense tracking, consistency is key.

You're going to find yourself spinning in circles if you aren't consistent with creating a monthly budget. In fact, you'll find yourself more frustrated because you've put in SOME work, but you're not seeing results.

Updating your budget throughout the month is just as important as

This brings me to the next point, do it daily.

DO IT DAILY

In my own experience, I've found that tracking my spending daily works best.

This sounds cumbersome, but I promise I don't spend more than 5 minutes a day entering expenses. I use the EveryDollar app to track our spending as the month goes. Then, I transfer the totals from the app to our paper & excel budgets.

Yes, I'm a SUPER nerd and have three different ways I budget, but I love it.

If you have 5 minutes to scroll through Instagram (imagine if we all ONLY spend 5 minutes on social media), you have time to track your expenses daily!

It just depends on what you prioritize.

Create a Budget You Can Stick To (5 Best Hacks)!

Sat, 01 Feb 2020 17:35:00 GMT

Maybe you've tried the whole budgeting thing, and you were even pretty dedicated, but you found yourself unable to create a budget you stick to.

No matter what you try, nothing seems to work and you're about sick of all this budgeting talk.

There always seems to be more bills than money, and if there is anything left over, it's nothing to write home about.

Today I want to share why your budget isn't working, and how you can fix it!

Budgeting hacks/tips:

5 WAYS TO CREATE A BUDGET YOU CAN STICK TO

1. FACE YOUR FEARS

This first tip is very simple. You need to face your fear of finding out where your finances are really at and stop making excuses.

I'm not a money person. It sounds complicated. I'll figure it out later when I'm older. I don't have time, I'm too busy at work.

You're literally telling me that you're so busy making money that you don't have time to manage the money you're working so hard to earn?

Everyone is busy. If you don't make time for your money, you'll just be a hampster on a wheel constantly trying to earn more money in hopes of keeping up with your spending and lifestyle increases.

In order to create a budget you can stick to, you need to face your fears.

2. TREAT IT LIKE A BUDGET NOT A FORECAST

One of the biggest mistakes people make when budgeting is setting up their budget and treating it like a forecast.

Budgeting requires being proactive in your finances, not passive. You don't set your budget and then turn on autopilot mode. If you do, you'll likely end up frustrated at the end of the month.

At this point, you realize you've overspent on groceries, you didn't save as much as you thought you could, and things didn't necessarily go as planned.

You painted a picture of how you wanted the month to go, it didn't go that way, and you feel immediate failure once you realize real life didn't align with your predictions.

At this point, many people give up and think what's the point anyway?

The problem is that although you might always have money in your bank account without a budget, you likely aren't prioritizing and making your money work for you.

You're simply getting by , which is what causes money stress in the first place, and thus making you consider budgeting.

CHANGING HOW YOU THINK ABOUT THE BUDGET

Changing how you think about budgeting requires changing how you think about your money- as a finite resource.

What many people don't realize is that the feeling of scarcity isn't necessarily a bad thing.

In fact, I think the opposite feeling is more harmful and detrimental to your finances- the feeling of always having enough when all you're actually doing is scraping by and living paycheck to paycheck.

TAKE THIS EXAMPLE:

Let's take a quick example.

You have $800 in your checking account today left until payday.

Your $200 electric bill, $80 phone bill and $100 car insurance bill are due before you get paid again. You also now you'll need groceries before payday, you estimate $120 worth. Even though you don't have a budget, you know that in your head.

You think to yourself, wow, we're in pretty good shape! That leaves you with $300 left until payday! You're delighted knowing that you can either use that $300 towards your goal of paying down debt or putting it into your savings for a down payment on a home. Life's good.

Except the next day you realize you're almost out of diapers for the baby, those will cost $40.

Then you look at the calendar and realize your extended family from out of town is visiting and you're all supposed to go out to a fancy steak restaurant tomorrow.

Well shoot, I guess that $300 towards your goals will have to wait until next month.

Sound familiar?

THE SOLUTION

The feeling of scarcity will either drive you to quit or drive you to make better decisions with your money.

If you want to make better decisions, give every dollar a function before the month begins based on your goals. Then, be proactive and ADJUST your budget as money actually comes in and expenses actually go out.

So how does this work with my previous example?

It's likely that when you got your prior paycheck, you immediately started spending some it (without sticking to any real budget).

You went out to dinner with friends, stocked up on groceries, and bought your spouse a birthday gift.

No feelings of scarcity, because it was payday!

However, if you had known that your savings goals wouldn't happen this month you might have planned your meals and grocery shopping more carefully. You might have invited your friends over instead of going out.

If you had made a budget before the month began based on your priorities, things might look (and feel) differently!

You can get my FREE MONTHLY BUDGET TEMPLATES to help you get started with your budget.

3. MAKE IT REALISTIC

If you're constantly adjusting your budget for overspending in certain areas, you're probably not being honest with yourself when setting your budget in the first place.

My grocery budget for our family of three is $300 per month, but if you have a family of 5 that probably isn't realistic.

Just like unrealistic diet cuts, unrealistic budget cuts don't work.

Base your budget on reality, but as a word of caution, don't use the reality of your poor spending habits to justify budgeting more than you should for certain categories.

For instance, if you're single and you look back at your bank statements and realize you've been spending $600 per month on groceries and dining out and haven't saved any money, don't set your grocery budget at $600 when you first make your budget.

That's confusing reality with stupidity.

The same goes for paying off debt. If you have a goal to pay off your student loans ASAP and you and your spouse have been spending $500 per month going out, don't set that budget at $500.

Rather, challenge yourself to set it at $150 (which is reasonable) and change your stupid money behaviors instead.

4. THINK OF IT AS A CONTRACT BUT BE FLEXIBLE

Yes, this tip sounds like a huge contradiction- how can you think of the budget like a contract but also be flexible ??

The goal of budgeting is to make what's actually happening in your finances and your priorities align by creating a plan you can stick to.

So your budget should be thought of like a contract between you, your spouse, and your money.

This way, when you are tempted to have frequent dinners out instead of taking time to meal plan so you can stick to your grocery budget- you are reminded of your contract.

However, there are times that require flexibility. Because life is unexpected!

5. ADAPT & CHANGE

When I have to adjust our budget for changes in our life, it's nearly impossible for me to have a slight feeling of failure, and that's not how it should be.

You can and you should shift your budget around for different stages of life and as your priorities change.

When you have long-term goals, it's normal to have to make adjustments as you go. This doesn't mean you've failed, it means you are living and breathing.

HOW TO ADJUST WHEN OVER OR UNDER BUDGET

On a monthly basis, you'll likely end up either over budget or under budget in certain areas. That's normal- as long as these amounts aren't consistently fluctuating by $50 or more.

Read closely, because this is a key budget concept that many don't quite get.

KEY CONCEPT EXAMPLE 1: ADJUST AS THE MONTH GOES

If you predicted $1,000 of cash per week coming in to your bank account based on your salary and halfway through the month you've only brought in $600, you need to bring out the budget and adjust it.

Adjust your discretionary expenses so that your budget balances again- i.e. what is coming in is exactly what is being budgeted.

If you set up your budget correctly for that month, you would have assigned every single dollar of the predicted $4,000 to a budget category.

As a result, if you don't adjust the budget, you'll have budgeted $4,000 for the month when you only brought in $3,600.

You'll find yourself over budget and frustrated if you don't adjust.

Thus, you'll never feel like you are able to create a budget you can stick to.

KEY CONCEPT EXAMPLE 2: RECONCILE BUDGET BALANCE TO BANK BALANCE (MONEY IS FINITE)

Let's say that you did pretty good on sticking to your budget for the month, but you had some discrepancies.

For simplicity sake , we will only look at a couple budget categories and assume on the rest you were spot on.

In this example, you're only $25 over budget, not a big deal. However, if you budgeted $2,000 of cash coming in for the month, and you end up spending $2,025, when your next paycheck comes (let's say it's $1,000), your bank balance will only show $975.

If you create your budget for the next paycheck based on $1,000 and forget the amount you were over budget from the prior month, you'll wind up $25 over budget again (considering you were spot on with all your budget categories).

Can you see how this snowballs? Pretty soon, you'll be wondering why your budget isn't working and here's why.

When you're over budget in any given month, that amount that you overspent doesn't just disappear and you have a clean slate the next month.

You actually, physically spent more money than what came in.

To fix, you can either start your next budget with $25 less than what you expect to earn, or pull from a sinking fund.

GETTING STARTED WITH BUDGETING

In order to create a budget you can stick to , you need to actually create a budget!

I have tons of budgeting resources that I've created to help you (FINALLY!!) take control of your money.

Here are some templates perfect for getting started with budgeting:

If you're wondering when the right time is, it's now, friend!

Trust me, if you're stressed about money now, you'll be more stressed later.

Once you perfect and create a budget you can actually stick to, you'll feel a weight lifted off your shoulders.

Don't fall into the trap of neglecting your finances, take control now and pursue financial peace.

7 Surprising Money Habits I Wish I Knew Earlier

Mon, 27 Jan 2020 02:41:00 GMT

Most people don't come out of high school (or college) knowing what money habits are going to set them up to win with money.

In fact, our education system has FAILED young people when it comes to teaching them about finances.

The truth is the norm in many (or most) households is to run the budget like Congress.

Which means there is no budget. You spend what you have in cash, and then you spend some more. No one's really keeping track and everyone has their head in the sand.

Here's what I wish I knew, and what you should know, about money in order to win financially!

First, get my free finance planner to help you crush your finance goals :)

10 MONEY HABITS I WISH I LEARNED EARLIER

1. The Power of Compound Interest

Unfortunately, they let you graduate high school without knowing what compound interest is.

Compound interest is simply earning interest on interest.

Let's take a look at an example:

You have $1,000 that you deposit into an investment account. You earn 10% interest on your investment in year 1. At the end of year 1, you would have $1,100. In year 2, you earn 10% interest once again. However, in year 2, instead of earning $100 of interest, you will earn $110 of interest.

Year 1 Balance: $1,000 + $100 interest ($1,000 x 10%) = $1,100

Year 2 Balance: $1,100 + $110 interest ($1,100 x 10%) = $1,210

In year 2, you earned $110 instead of $100 (like year 1) because you earned 10% interest not only on your initial deposit, but on the interest earned in year 1.

Thus, you earned interest on interest. Hopefully you can see from this example that investing while you're young is key.

The earlier you start, the longer you will earn compound interest, and the more it will snowball.

Remember, every little bit counts.

2. If You Don't Have a Plan You Won't Win With Money

Living on a zero based budget means you have a plan for every dollar that you take in during the month BEFORE the month begins.

I do this every single month on paper and on my excel budget template (pictured above).

If you've never made a budget before and you don't know where to start, here's a 7 step tutorial.

A big misconception about budgeting is that it's only for people who are math geeks or good with numbers.

Nothing could be further from the truth! Budgeting is not as scary as you think, in fact, it's pretty simple if you're willing to sit down and try.

The idea of budgeting is very basic!

You simply take your monthly take-home pay (or an average if you have irregular income), and you plan out how every single dollar that comes in will be spent.

You won't get it perfect the first month. Or even the second.

However, trust me, if you stick with it, it will become second nature.

Especially if you are a beginner budgeter, it is of utmost importance that your budget is written .

If it's not written, it won't get done.

Your mind is not a good place to store your budget. I can hardly remember what I ate for dinner let alone the monthly budget.

Snag my set of editable PDF budget templates and get started today!

3. Debt is Acid that Eats Wealth

You've likely been taught that debt is a tool and if used carefully, it can benefit you financially.

I want you to chew that up and SPIT. IT. OUT.

Debt is acid that eats wealth.

When you get into debt, you are agreeing to become a slave to a monthly payment. The lender is your master and you do as they say.

The truth is that debt creates enough risk to offset any advantage you could possibly think of.

In my opinion, the biggest risk surrounding debt is that it makes it SO easy to live beyond your means.

If you want something you really can't afford, debt allows you to get it, and get it quickly. '

We have the American Dream backwards. It's not to have whatever you want whenever you want, but rather to live a debt free life free of financial burden.

Pay off debt rapidly & other debt content:

4. Your Spouse Will Probably Have Opposite Money Behaviors than You

Most of the time (not ALL the time), a couple exhibits opposite money behaviors.

There is typically a saver and a spender, and they attract.

Repeat after me, it is okay that my spouse interacts with money differently than I do.

I know, that's hard for me to admit too ;)

The key is learning how to work together as a team so that you can win with money.

HOW TO WORK AS A TEAM WITH YOUR SPOUSE

THE RELUCTANT SPOUSE

Many people find themselves frustrated with a spouse who seems uninterested in talking about money and taking control of their finances.

If this is you, please know, it takes time.

The goal is not to control your spouse and force them to change so you can have your way.

Rather, your spouse likely wants the same things you do (financial peace), they just don't like the way you're approaching the situation, especially if you're attacking them.

5. Many People Are Going Broke Trying to Look Rich

Have you ever looked at another persons lifestyle and thought, "well if they can afford that we sure should be able to!"

There's two things wrong with this assessment.

One, you have no idea if they can actually afford it. They could be up to their eyeballs in debt. Two, that attitude is both prideful and toxic.

Statistics show over and over that the Joneses are broke.

In fact, the average American has about $38,000 in personal debt, excluding home mortgages.

The next time you see your neighbor driving their fancy new vehicle, just think about the monthly payment and stay in your lane!

6. No One is Responsible For Your Finances Besides YOU

It's not anyone else's job to save you from the financial choices you have made.

If you have debt, can't save money, etc, the best thing you can do is own up to the choices you've made and then decide to change.

Has anyone ever felt personally victimized by our education system? I know I did before we decided to pay off my student loan debt in 12 months.

Then I realized that it was my choice to go to an expensive four year college, I signed the dotted line every year, and it was no one else's fault but my own.

Own up to your financial mistakes and learn from them!

7. You MUST Live on (A lot) Less Than You Make

While this sounds like a simple concept, many people who THINK they are living on less than they make are actually spending more than they take in.

To achieve the same lifestyle you have now at retirement, it is recommended that you invest at least 15% of your gross income for retirement after paying off all your debt.

The problem is only 16% of working Americans are saving over 15% of their income for retirement.

The average person reading this is saving under 10% of their take home pay (not even their gross pay).

We don't have an income problem, we have a spending and debt epidemic.

People simply don't know how to live on less than they make.

HOW TO LIVE ON LESS THAN YOU MAKE

1. Create a household budget.

2. If you have no room to save or invest every month, cut costs. You have to reduce your spending. It might be painful for a while, but it's possible. Take responsibility.

3. STOP USING DEBT. If you're in debt, it's high time to get out as fast as you can. Use the debt snowball to pay off all your debt.

There you have it, what I wish I knew about money wayyyy earlier.

I am still relatively young, so I'm glad that I took initiative and decided to invest in learning more about money.

My hope is that you'll do the same and I can help you along the way!

How to Meal Prep on a Budget [What You're Doing Wrong]

Tue, 14 Jan 2020 00:00:00 GMT

Do you want to learn the secret to meal prep on a budget? Most of y'all are doing it all wrong!

When I first got married, I did it all wrong too. Maybe you can relate...

I was at the store almost every other day picking up an ingredient.

Meal time was frustrating and stressful for me.

I absolutely hated it.

I'm happy to report that I've come a LONG way in meal planning and making meals in general (I once asked my husband how my meal tasted and all he said was "I've had worse") .

Here's my best meal planning tips and what I credit for sticking to a $300/month grocery budget (including our 1.5 year olds meals).

Other meal planning tips/hacks:

HOW TO MEAL PREP ON A BUDGET

First, you'll either need to keep a digital copy of your meal plan for the week or keep a written copy that you can easily hang on the fridge or put in your planner.

You can subscribe below and get my free meal plan template!

It's important to keep your meal plan somewhere it can be easily accessed, because otherwise you won't stick to it!

1. INVENTORY WHAT YOU ALREADY HAVE & BUILD MEALS

INVENTORY

The FIRST step in meal planning for those who like to save money is to inventory what you already have on hand.

This is how you reduce waste , which is the biggest budget killer.

Inventory your fridge, freezer and pantry BEFORE making your meal plan and grocery list.

I start with what meat and dairy products I have first, because that is the bread and butter of most of our meals.

BUILD AS MANY MEALS AS POSSIBLE BASED OFF WHAT YOU HAVE

Once I've done a quick inventory, I go online to the $5 meal plan dashboard and sort through recipes by ingredient.

I then build as many meals as I can for the week using only what I have on hand already, OR if I have most of the ingredients already I'll add it to the list.

2. BRIEFLY SCAN STORE SALES

Look at the weekly specials for your favorite grocery stores.

Pro tip: the front page and back page of the flyer typically show the biggest deals. The rest is just fluff.

If there is a great deal on an item, I'll build a meal (or multiple) around it and buy it in bulk.

For instance, if there is a sale on meat, I will stock up and use the meat for multiple meals that week (or prep it for lunches).

Don't spend too much time on this, just quickly look at the front and back pages of your favorite stores.

3. BUILD REMAINDER OF MEAL PLAN

After you take inventory and build as many meals as possible, scan store ads and build meals around sales, the next step is to build the remainder of your meal plan.

You can choose a family favorite, or do whatever you like for the remainder of the meals, as long as you are on budget.

4. PRICE IT OUT

Before you go to the store, price out what your grocery trip will cost you.

If you are over your budget, cut out one of the more expensive meals (typically meals that require a lot of ingredients or have expensive protein).

If you're not sure what you're grocery budget should look like, a good rule of thumb is $100/person in your family.

I always make sure that I know approximately how much my trip should cost me so I know that I am on budget.

5. ASSIGN EACH MEAL TO A DAY

Take out your calendar or planner and use it as a reference for assigning a meal to each day.

Here are some basic guidelines I use:

Figure out what works best for your schedule. If you have kids in lots of activities, you may want to stick to freezer meals and crockpot meals.

6. WRITE IT DOWN

Make it a habit to write your meal plan down and/or post is somewhere so your entire family can see.

This way everyone is on the same page.

7. SAVE TIME & MONEY BY USING A MEAL PLANNING SERVICE

We're all busy. When meal planning, you have to weigh whether or not you have time to research/find recipes and make a grocery list every single week.

If time is a big struggle for you, I'd highly recommend using a meal planning service.

Because if something is time consuming, boring, and stressful, you likely won't do it, even if it has great benefit.

The service I use is $5 meal plan , costs $5 per month and every meal you make is designed to cost under $5!

Each week, my meal plan is delivered right to my inbox!

The meal includes a menu and a shopping list sorted by ingredient/store section. The menu includes:

Additionally, you get a shopping list for the week organized by store section and ingredient!

You can read my full review (and tutorial) of how I use $5 meal plan for more info!

OTHER WAYS TO SAVE MONEY ON GROCERIES

USE CASH

Cash is king. When you use cash, it triggers a different effect in your brain than when you swipe a debit or credit card.

Have you ever noticed that it's harder to hand over a $100 or $20 bill than it is to swipe a card?

You think about your purchase more. Maybe you put something back. You pay more attention to prices.

I love me some good, hard cash. Check out the cash envelopes I use here.

FREEZER MEALS FOR BUSY NIGHTS

Often times being busy holds people back from meal planning. Between kids practice, school concerts, social events, work, and other activities, let's be honest it's easier to just pick up a pizza or run through the drive thru.

If you can take just one day (many moms like to plan on Sunday-I do mine on Thursdays) out of the week and plan your meals, there is an easy way around this.

Freezer meal planning is the busy moms best friend!

The same gal that founded the meal planning service I use ( $5 meal plan) , founded MyFreezEasy, which is exactly what it sounds like- a freezer meal planning tool.

The MyFreezEasy monthly meal plans have some fantastic features:

Learn more about the MyFreezEasy membership in my detailed review.

My favorite feature is the mobile app! You can easily build a meal plan from scratch in minutes (yes minutes) , or use the meal plan for the month.

* You can start for free here (and start freezer meal prepping instantly)!

ONLINE GROCERY PICKUP

Many people have said that they saved money on their grocery bill when they switched from in store purchasing to online grocery pickup.

The only thing I don't like about online grocery pickup is that I can't use cash.

However, I have tried it and I do feel like I tend to spend less when using this feature because I'm less tempted to buy things not on my list.

If you have trouble with impulse buying and you tend to end up with unplanned purchases in your cart while in store, try online grocery pickup!

* Through my link get $10 off your first Walmart grocery order pickup!

LIMIT TRIPS TO THE STORE

I try to stick to a once a week grocery store trip. The more I'm at the store, the more I spend.

Obviously there are times when I forget an ingredient or we have a quick change of plans, but for the most part I stick to once a week grocery shopping!

This will be hard at first, especially if you find yourself at the store 3-4x per week, but once you make it a habit you'll be amazed at how much money you save.

MEAL PREP THE RIGHT WAY

The most common mistake when learning to meal prep on a budget is organizing your meals from scratch without looking at what you have on hand.

This is also known as shelf-cooking. I honestly can't tell you how much I've reduced our food waste by meal planning this way.

This is one of my biggest tips, a long with using a meal planning service if you're just way too darn busy to spend hours meal planning!

How to Prepare Your Budget for the New Year

Mon, 06 Jan 2020 00:37:00 GMT

It's January, which means it's time to prepare your budget for the new year!!

I know what you're thinking... why does she have so many exclamation points? Budgeting is not exciting and falls below sorting hangers on my to do list.

If you will just give budgeting a chance, I promise with a little work it will change your life . Yes, YOUR LIFE.

I tend to be a tad dramatic, but this is not an exaggeration folks.

Budgeting forever changed our finances and I honestly can't imagine what our finances would look like if we didn't budget.

A lot more stress. Frequent money fights. Not near as much saving or investing. Inconsistent and irregular tithing.

If any of these are the norm for you, take heart. I'm here to help!

So, whether you've never set up a budget in your life and want to learn to do so , or if you're a seasoned budgeter, this is a great refresher post for you!

It's important to evaluate your budget for the new year, because it will look different every single year!

Setting up a Budget for the New Year

1) Evaluate Money Goals & Set New Ones

Goals are the driving force behind any kind of monetary success you experience. Without goals, dreams are just ideas .

Take time to set new financial goals, review existing goals, and create and execute a plan of action for the new year!

In order to be successful, your goals need to be:

Your goals should be a line item in your monthly budget. Furthermore, they should be prioritized in your budget after financial obligations, but BEFORE discretionary (flexible, non-essential expenses) spending.

Continuing with previous examples, if your goal is to pay off at least $12k of debt, you should add the $1k per month minimum as line item in your budget. Any and all extra money should be thrown at the debt and allocated to debt in your budget!

If it's not written in the budget, you're not as likely to make it happen. Make it a habit this year to write out your monthly budgets, committing them to memory.

2) Identify New/Changing Expenses for the Year

The first thing you need to do is review your past year and identify what changes to your budget need to be made for the current year.

For instance, we got a notice in the mail just a few days ago that my health insurance premiums will be increasing by $20/month. I know that I will need to adjust the budget for this increase.

We are also having another baby this year, so I know that I need to increase my baby budget category, and we have been padding our savings account to prepare for anything unexpected.

Ask yourself the following questions:

Use these as a starting point for identifying and setting up new sinking funds.

3) Set up Sinking Funds

Sinking funds are a way to save up for large expenses by breaking the large expense up into small, monthly savings.

A sinking fund is more specific than a savings account, because you know exactly how much you'll put in and when you're going to use it.

If you plan on saving for Christmas, a family vacation, and maternity leave all in one year and lump it all in your checking account, chances are eventually the lines will blur.

We want to be intentional about our savings.

Get out your calendar and/or review your bank activity from the prior year.

Identify any large expenses that came up this past year that you will likely have again either in the current year or sometime down the road. Set up a sinking fund for these.

Intentionally track your sinking fund balances from month to month.

I track mine using the template pictured right. You can get it here.

Sinking fund ideas

5) Have Room for Error

A slush or miscellaneous fund is a great defense against unexpected expenses that come up throughout the year.

Just be careful, because having room for leeway in your budget doesn't mean that you budget $500 a month for screw ups.

If you're consistently screwing up the budget by $500 then you need to change your spending habits.

Rather, a miscellaneous fund is for honest mistakes and expenses that you simply forget or didn't plan.

I use the miscellaneous budget category for things like extra baby supplies, the baby shower or wedding I forgot about, and for buying different things in bulk.

Instead of beating yourself up, you use the miscellaneous fund, get back on your feat, and keep budgeting!

6) Make a New Zero-Based Budget

The final step is to set up your zero based budget.

Having a zero-based budget simply means that every single dollar coming in every month has a function.

For detailed budgeting forms, including the exact ones we use, check out these templates:

We follow Dave Ramsey's guidelines for what we should be spending on each budget category.

Depending on your needs these might vary a bit, but if you are out of these ranges you could be living above your means.

If you are paying off debt , instead of saving/investing, all extra money would go towards your debt snowball .

Other helpful posts for getting out of debt/ debt payoff hacks:

Monthly Budget Templates

Excel Budget Templates

This easy-to-use excel budget template gives you the tools you need to track your spending and plan your income.

The formulas in this spreadsheet will automatically highlight categories where you are saving up (green) or overspending (red), all you need to do is decide how much of your income you can dedicate to each category (feel free to edit them to your liking!)

Includes a tab for all 12 months and can be used year after year. Simply copy and paste tabs to use indefinitely!

Download as many times as you'd like, in case you lose or switch computers/files.

This excel paycheck budget allows you to take your broad monthly budget and break it down into pay periods. If you're like me, and you like to break everything down into simple steps, this is perfect for you.

You can still print this budget out if you prefer to have a hard copy! It is set up to fit perfectly on traditional letter paper. No adjustments necessary!

The budget by paycheck method is my FAVORITE way to budget.

By breaking down your monthly budget every pay period, you are staying proactive in the budgeting process.

This way, you are more likely to stick to your budget!

PDF Monthly Budget Templates

If you're not super excel savvy (no shame), and prefer a written or printed budget, I have templates for those too!

Personally, I like to have a written (typed) copy of our monthly budget printed out, and then as we receive our pay throughout the month, I allocate the budget to the paychecks using my excel template!

Additionally, if your budget is written and in plain sight, you're more prone to stick to it!

Pictured left are two of my many pdf budget templates. These templates are fillable, so you can type directly into them!

Note: The blue cells are only to show that these are fillable, they will not print blue :)

Set up your budget for the new year with confidence!

Happy New Year, Cheers!

How to Develop Money Habits so You Reach Your Financial Goals in 2020

Tue, 31 Dec 2019 14:00:00 GMT

If you want to reach your financial goals this year, you might need to start thinking about your goals differently.

This is a good time of the year to talk about habits because this is when everyone and their mother creates New Years Resolutions.

In and of themselves, New Years Resolutions aren’t inherently bad. In fact, I appreciate the sentiment and I’m glad that people want to change!

However, the issue lies in the fact that 92% of New Years Resolutions don’t last and will be gone before Valentine’s Day.

Soon enough you find yourself scouring the house to remember where you hid the candy. Or in the Target checkout line you swore you weren’t going to be in unless the apocalypse happened.

ACHIEVING FINANCIAL GOALS

In his book Atomic Habits, James Clear says that winners and losers generally have the same goals. Successful people and unsuccessful people generally have the same goals.

When it comes to finances, I don’t know anyone saying I want to double the debt I’m in, fight with my spouse about my spending habits, and save nothing for retirement.

If those are your goals, you probably need to see a psychiatrist.

We all have similar goals, yet we end up with vastly different results.

There are some people who will always be broke. Always.

They won’t stop getting into credit card debt. They’ll always feel like there’s more bills left than money at the end of every month. And, they’ll continually blame it on their lack of income.

The truth is, for these people, more money wouldn’t help. They’d just have more payments.

For others, broke will just be a place they are passing through and they will eventually become wealthy.

What’s the difference between these two people?

While both have goals, they have extremely different systems.

1. Start with WHO Goals

When you know who you are, you know what to do. When you’re trying to quit drinking, you say to others who offer you drink after drink “that’s not who I am anymore.” Your identity has changed.

A healthy identity creates positive habits and positive habits reinforce a healthy identity.

Who do you want to become? Do you want to become someone who spends carefully? Who is able to give abundantly? Do you want to be someone who achieves financial freedom? Or maybe you want to be someone who spends carefully instead of shops impulsively?

Identity shapes habits. Next, start with changing small habits.

2. Focus on SMALL Habits

No single action changes your identity. However, multiple, small actions over time will change how you see yourself and will eventually change your identity.

Sean Covey said, “Habits will make or break us. We become what we repeatedly do.”

If we will change what we do and our habits, the outcomes will fix themselves.

This isn't to say that you shouldn't set big goals. You absolutely should! It's how you go about achieving those goals that often gets done the wrong way.

Let's say your goal is to pay off $40k of debt in 3 years. Instead of not buying yourself ANYTHING or going out to eat AT ALL, reduce those areas to a realistic goal.

Success (and money saving) is done little by developing small disciplines that reap a big harvest over time.

3. The Overnight Success Myth

It’s the things that no one sees that bring the results that everyone wants.

Many people have said to me, “of course you could pay off so much debt in 12 months, you had two incomes and no kids.”

However, there was a lot that other people didn't see.

My husband was still in school when we married so we were living off one income during our debt payoff period, we drastically changed our spending habits, it took MONTHS to get our budget right, I picked up extra hours at work to earn extra money.

Lots of people want to be debt free, but they get frustrated because they think getting there will be easy or they get frustrated because of lack of early results.

4. Key Financial Habits You Must Master

When it comes to your finances, what habits can you put in place to ensure that you meet your financial goals?

Developing the following fool proof habits will help you hit your financial goals this year:

These are all s mall disciplines that lead to major results. Just don't quit. Don't get discouraged. One step at a time.

BUDGETING

If you’re frustrated because there’s never any money left at the end of the month, create a budget and stick to it.

Every single month I create a written budget and an excel budget that are identical.

A budget is one of your most powerful tools to achieve your financial goals.

To learn how to set up a budget that works, take my five day Budget Bootcamp email course.

Or, get started budgeting right away by snagging my free budget template by subscribing to email list!

GET OUT OF DEBT FOR GOOD

Maybe debt payments weigh you down and create lots of financial stress.

Commit to getting out of debt as soon as possible by reducing your expenses.

It's hard to save any money at all if you're a slave to monthly payments.

Don't believe the lie our culture tells you, that debt is normal. Debt will kill your dreams and crush your financial goals.

INVEST FOR YOUR FUTURE

If you are worried about retirement and haven’t saved much, make a plan and automate your investing. Make it an auto-withdraw from your bank account every month.

No one is responsible for making sure you have enough saved for retirement besides you.

Make it a priority.

SET UP SINKING FUNDS

Do you ever feel caught off guard by expenses that sneak up on you out of no where? Maybe you're nodding your head saying yes, every single month.

Sinking funds are a specific and measurable way to set aside cash savings for a period of time.

They allow you you to save money over time for expenses that are not monthly, recurring expenses.

GET ON THE SAME PAGE WITH YOUR SPOUSE

Being on the same page with your spouse regarding money is invaluable.

You will be a lot more likely to hit financial goals that you set and work towards together.

When you have different financial goals or only one spouse is determined to better the financial situation, you are moving apart.

Related:

5. Be Patient with Results

When we don’t see results fast enough, we wrongly conclude that small, good decisions don’t matter that much. Or, we can also wrongly conclude that small, bad decisions don’t really matter that much.

Maybe you decided last year that you were going to get out of debt for good. You stopped going out for dinner 2x a week, started meal planning, and cut out your weekly shopping trip.

At the end of the month, you had an extra $300 to put towards your debt.

Then, instead of owing $28,600 on your student loan, you now owed ONLY $28,300.

You got discouraged. Soon, you were back to your old habits.

Remember, our life is the sum total of ALL the decisions that we make. They all matter.

You rarely wreck your finances all at once.

You cut the corner here, buy a few things without telling your spouse there, and go to the mall just one more time with your friend even though you know you need to start saving more.

While you may not see crazy results right away, but by adding small disciplines to your life, you WILL reap a harvest.

These decisions will get you out of debt. Investing for your future. Changing your family tree. Leaving a legacy for your children.

5 Ways to Avoid Money Problems in Your Marriage

Sun, 29 Dec 2019 21:00:00 GMT

In honor of our third wedding anniversary today, I'd like to share five key ways you can avoid money problems in your marriage!

The number one cause of divorce in America is attributed to money fights.

The good news is that if you and your spouse can work as a team and agree on your finances, you can set up a healthy safeguard against conflict.

I promise you will still have disagreements about money. However, when you are on the same page about your finances these disagreements are resolved quickly and in a healthy way.

To avoid money problems in your marriage, read on!

Other marriage & money tips:

5 HELPFUL TIPS FOR BEATING MONEY PROBLEMS IN YOUR MARRIAGE

1. TALK ABOUT MONEY OFTEN.

Larry Burkett said "Money is either the best or the worst area of communication in marriages."

Work to make money one of the BEST areas of communication in your marriage!

If you avoid talking about money with your spouse, you're just building pressure for a big blow up.

Chances are you might avoid talking about money because it always ends in a an unresolved fight.

If you refuse to discuss your finances with your spouse, you are creating an opportunity for resentment against your spouse for certain money behaviors to build.

One spouse might be frustrated by their lack of inclusion in the money process but they are afraid to speak up because every time they do they are insulted.

Or, maybe you're frustrated with your spouses bad spending habits. Do they run to the store in response to strong emotions?

In either situation, the issue needs to be discussed openly without fear of insult.

2. USE A BUDGET FOR ACCOUNTABILITY.

Having a written, agreed upon monthly budget creates an exponentially higher likelihood of you to work together with your spouse.

I like to keep our personal budget in an excel template, uploaded to google docs for easy cloud access. My most popular budget template is the excel budget template , pictured below. It's a great budget template for beginner budgeters!

A budget is your road map for financial success.

You might think you know where your money is going, but until you TELL it where to go you'll never hit your financial goals.

This is why most millionaires live on a budget.

If millionaires need a budget, why wouldn't you?

3. IDENTIFY THE SPENDER & THE SAVER.

Understanding the key differences in how the saver and spender operates has been key for us in developing a money strategy that works.

I'm the saver (nerd) in our relationship.

While I'm really savvy with spreadsheets, charts, reports, and I don't spend much money, I tend to have control and trust issues.

My husband is the spender (free spirit) .

Though he's better at staying grounded in both good and bad financial times, he can tend to make some irresponsible money decisions if he's not careful.

We both recognize these things about each other (and ourselves) and make our best effort to work on these traits.

Be willing to look in the mirror and identify what you need to work on. Recognize that just because you might be the saver in the relationship, doesn't mean your a dictator and your spouse has no say.

UNDERSTANDING HOW MEN & WOMEN RELATE TO MONEY DIFFERENTLY

Often times, a man's deepest fear is failure and a woman's deepest fear is abandonment or lack of security.

When you understand your spouse's fears, you can respond to them in a way that reassures or calms their fears.

Avoiding comments that wreck your wife's sense of security or your husband's fear of failure will go a long way in getting them to discuss money in a peaceful, united way.

4. COMBINE YOUR FINANCES.

This is a marriage, not a joint venture. I don't care who makes more, who spends more, or whatever else. Combining your finances creates unity.

But what if one person makes more money?

Regarding the budget, you don't get more votes if you make more money. That's not how a successful, unified marriage operates.

When you see every penny that comes into your bank accounts as OURS instead of yours or mine, it forces you to create money goals together.

Every marriage is either growing together or apart.

Combine your finances, agree on goals, work through problems together and grow together!

5. NEVER KEEP MONEY SECRETS FROM YOUR SPOUSE.

Never ever keep money secrets from your spouse, big or small.

Always be truthful when talking to your spouse about money and avoid being defensive of any bad money behaviors you have.

Often I hear women joke about hiding shopping bags in their car so their husband won't see them.

I get the humor, but it's not helping your marriage. It's a sign of an underlying problem, because if you feel like you have to hide your purchases your spouse obviously has a problem with your spending.

A LITTLE REFLECTION...

As we close in on three years of marriage, I am grateful for how much progress we've made in working together as a TEAM.

When we first got married, I definitely had the attitude that money was MY thing and since I was the saver I was in charge of all decisions.

That created a lot of strife in our marriage as my husband became more and more frustrated with my controlling nature.

I was frustrated with his lack of caring about how our money was spent and irresponsible spending.

Once I stopped seeing myself as right and him as wrong , my perspective shifted and I was able to understand we BOTH had areas to grow in.

Yes, we still fight, but we are always working towards fighting fair.

How to Make Money Blogging in 2020!

Sun, 22 Dec 2019 19:05:00 GMT

Today I want to share how you can make money blogging in 2020. The first $1k I made as a blogger was the hardest money I ever earned. It didn't come without lots of blood, sweat, and tears.

However, I can now say blogging has been a huge blessing for me as a busy mom!

Some days I worked 3 hours straight on my blog during nap time and other days I don't touch it at all except for 30 minutes strung together.

This post will be a review of my year, detailing what worked for me and what did not work for me, in hopes that you can learn something too!

I frequently read these type of posts from other bloggers and I've always been able to learn/take away something and implement in into my own strategy.

No, obviously every blog is not the same and what works for one person might not work for another.

However, what worked for me this year is consistent with what many of the big name bloggers recommend!

Blogging hacks & advice:

MAKE MONEY BLOGGING IN 2020 DO'S & DON'T'S

Many of the things that I'v learned blogging this year that worked well are ideas/strategies I'm still trying to improve!

That's the thing about blogging, there is ALWAYS something to learn or a new strategy to try.

I'll have new strategies to try as I enter yet another very busy season in life, we are welcoming another baby in April 2020!

Next year I'm sure my blogging year review will look very different!

WHAT WORKED WELL

1. FOCUSING MY AFFILIATE MARKETING ON A FEW PROGAMS/PRODUCTS

Instead of focusing on promoting every single product that I like or that has worked well for me, I decided to focus just a few.

Once I did this, I was able to stay on top of my affiliate marketing game and be a lot more effective at my promotion techniques.

If you're interested in learning how you can easily make money through affiliate marketing as a beginner , sign up below to have the top affiliate programs for new bloggers sent right to your inbox.

2. FIGURING OUT WHAT MY AUDIENCE WANTS

Figure out what your audience wants from you. That is gold.

The best way to figure this out is to ask them and evaluate what your most popular posts (and products) are.

The truth is you don't have to reinvent the wheel and constantly be coming up with new, unique products. Instead, evaluate your top posts and top product.

Do they have anything in common? Are they on the same subject? If so, take it and run with it. Create more products centered around that theme/idea.

3. MY EMAIL MARKETING STRATEGY

I dedicated a good chunk of time to learning the ins and outs of Conver t kit , the best email service providers for bloggers.

The ability to easily set up automations and sequences for your opt-in-freebies makes Convertkit far better that it's counterparts.

I created new opt in freebies that were centered around my most popular products. You want your opt in freebie to be ALMOST as good as the actual product you're selling, you want people to be astounded they are getting it for free!

4. UPPING MY PINTEREST STRATEGY

Nearly 70% of my blog traffic comes from Pinterest , so I place my weekly Pinterest scheduling at the top of my priority list.

The key to success on Pinterest is posting relevant content, posting when your audience is most engaged, and having irresistible pins.

This is what I use for Pinterest to make my life easier:

- Tailwind - This pin scheduling tool pins to Pinterest for me all day long at the times my audience is most engaged based on analytical data. One month after signing up for Tailwind, my blog traffic increased over 525%. Through my link, give it a try and get one month free!

Pictured above is a snapshot of my site traffic after starting to use Tailwind in September 2018.

- IvoryMix Stock Photos - The images you use for your pins have to be absolutely stunning otherwise you will not get traffic. I'm not going to sugar coat it. I tried getting away with using only free images, but as I got further into my blogging journey is was nearly impossible to find high quality images that hadn't been used by tons of other bloggers. I use IvoryMix stock photos designed by Kayla Butler for my pin images. She sends me hundreds of photos every single month!

Get 550 Free Stock Photos to try out yourself, including the ones pictured below!

- Canva - Canva is the online program that I use to create my pins. I could rave about Canva all day long. It's intuitive, has tons of free templates, and you can easily save templates for your pins. This way, all you have to do is change out the text and image when you create a new blog post. Canva is what I've used from the beginning of my blogging journey.

5. GETTING A SIMPLE & ROBUST THEME FOR MY BLOG

Up until now, I've purchased theme after theme depending on what suited my fancy at the time. However, it seemed I was always having new ideas for my blog layout & customization, so I'd often have to change themes to try and find something that was close to what I envisioned.

The only problem? I always ended up disappointed because no theme could do all the things I wanted it too, at least not without hours of coding!

Then I stumbled upon Divi and I kid you not, it has saved me HOURS & HOURS of work.

THE DIVI THEME

Divi is a super unique website building software that allows you to have control over literally every single area of your website. You can build pages, posts, content areas, etc., from scratch, or you can use pre-made layouts and templates from Divi.

I was wasting a lot of time browsing for themes and trying to figure out how to code certain things into my website. So purchasing Divi and making the investment was 1000x worth it. Can't recommend Divi enough. Read more about why I love Divi and learn more about it's features.

Related Content:

WHAT DIDN'T WORK WELL

1. WORKING ON 10 THINGS AT ONCE

My mind tends to have 10 tabs open at once and I click around from tab to tab all day long.

This doesn't work well for efficiency purposes. Because of this, I have to be very conscious of when I'm doing a bunch of things at once but not really getting anything done.

Yes, there is a lot to do every day as a blogger. However, trying to do them all at once is incredibly inefficient and will leave you feeling burnt out and drained.

2. AVOIDING A SCHEDULE/PLAN

I'm still not very good at abiding by a set schedule/plan partly because I have to be flexible as a mom, and partly because I feel like I never have enough time!

This is a work in progress, but when I have NO plan and try to coast along, it typically doesn't work very well.

3. NOT CONNECTING WITH MY AUDIENCE OFTEN

My first trimester of pregnancy was extremely exhausting and I felt incredibly unmotivated to do anything.

It was basically just survival mode.

As a result, I didn't work as much on my blog and it showed. My traffic and income went down during my first trimester of pregnancy!

HOW TO START A BLOG IN 2020

A huge misconception is that since blogging is trendy right now, there isn't room for anyone else to make money blogging.

The online world is huge, don't let this fear keep you from starting a blog!

Instead, take the plunge and start your blogging journey. Starting an online business does not require a large cash outlay- it's one of the cheapest businesses to start!

I have a step by step tutorial that shows you how to get your site running in under 15 minutes. There's no excuses not to start!

5 Things I've Learned Going from Full Time Working Mom to (Mostly) Stay at Home Mom

Mon, 16 Dec 2019 19:11:00 GMT

In all honesty, I never saw myself rocking the stay at home mom life.

I declared early on that I was too driven, too ambitious and staying home with kids all day would drive me nuts.

However, right around when my son was six months old God started to place a calling on my heart that I couldn't run away from.

Though I didn't reveal this to anyone except my husband, I had been having constant internal conflict from the day I went back to work.

I would come home after working long days (especially during tax season) drained, irritable and with no physical or emotional energy to pour into my spiritual life, my husband, or my son.

It was defeating and I felt like a failure for not yearning for "something more" than motherhood as my calling.

My husband was left with a burnt out, spiritually starved, unfulfilled wife.

We made the decision that having me home was a priority for our family, and it was one of the best decisions we've ever made!

Here's what I've learned so far ;)

5 THINGS I'VE LEARNED AS A STAY AT HOME MOM

First I want to say that I understand there are many women who want to stay home but their finances or other situations tell them they just can't swing it.

I'm NOT saying that if you are a working mom you can't understand the hardships and lessons of motherhood or that you're wrong.

However, I DO believe that our culture has made being a stay at home mom something that isn't worth sacrificing or yearning for.

Additionally, many times (not all the time) part of the problem is we don't want to let go of our lifestyle in order to stay home.

This post is a brutally honest reflection of my personal experience going from a working mom to staying home a lot more!

1. SACRIFICIAL LOVE IS THE BEST LOVE

Raising children requires sacrificial love, and being home has given me one of the biggest lessons in sacrificial love. I've never respected my mom more in my life than I do now, because I get it.

Being a mom requires you to literally lay down your life day after day and become a servant.

I have never experienced the kind of love I have for my child outside of parenthood.

Although a pale reflection of the love that Christ has for us, my faith has reached a whole new spiritual realm in becoming a mother.

Our son has always gone to bed around 7pm. Consequently, when he was in daycare five days a week, I had a meager 2 hours of time with him on week days.

Although I loved him unconditionally, I wasn't the one dealing with the 10th meltdown of the morning, the refusal to nap, or wiping his butt for the hundredth time.

I've learned more than I ever have in my life about the beauty of sacrificial love.

2. I REALLY DON'T MISS THE PAY

To be honest, I thought I would miss the extra money a lot more than I do.

Sure, there are days when I think that it would be nice to have some additional income. I mean, who wouldn't?

For many women, they have to weigh the cost of childcare and costs associated with being a working mom and many times it's almost a wash.

For us, that wasn't the case. I made well more than the cost of childcare and other costs associated with being a working mom.

The pull on my heart to nurture and shepherd my children was much greater than the pull to pad our bank account a little more.

God has been working on my heart and refining my character- I no longer desire accumulating as much money as possible.

Yes, I OF COURSE want to be a good steward of the money he has entrusted us, but it doesn't consume me anymore.

I haven't missed the pay like I thought I would.

3. EMPLOYEE'S ARE REPLACEABLE, MOMS ARE NOT

I'm NOT saying this to knock on employers, but I've learned that every employee is replaceable.

A mom? You're irreplaceable .

Of course there are great things mothers can learn and great habits we can develop from being both a mom AND an employee.

The things I've learned as an employee have undoubtedly helped me in my motherhood journey.

However, my employer wasn't in disarray because I decided to not work as much. Life goes on. Other people are hired.

Every employee is replaceable.

4. TAKING CONTROL OF YOUR FINANCES GIVES YOU FREEDOM OF CHOICE

Taking control of your finances allows you to live in financial freedom and happen to life, instead of letting life happen to you.

When we were considering having me scale back at work, we had to take a major, detailed look at our finances and evaluate if it would be possible.

Because we have been disciplined and have always only lived on one income (even when we were both working), it made the decision for me to stay home a lot easier.

When you live below your means , you have wiggle room.

How do we manage to do that? It's called a budget , m'friends!

I know what you're thinking- a budget isn't going to change our lives.

I'd submit to you that a budget is one of the most powerful, life-changing tools in your financial toolbox.

Sign up for my free google sheets budget template and start crunching your own numbers. Take inventory (maybe for the first time) of where things are at.

5. STAYING HOME IS 10X MORE EXHAUSTING THAN GOING TO WORK

Being a stay at home mom is emotionally and physically exhausting.

There is no morning or afternoon break, I'm on the clock 24/7.

Being in the office, I can sit and stand when I please. I only worry about myself and my own work. If I want to run an errand or stop by a store to shop, I can do it in peace.

My world has been ROCKED now that I'm home more.

I didn't expect it to be this much more exhausting. Really.

But I can say beyond the shadow of a doubt, it is the most rewarding job I've ever had. Hands down. No questions asked.

The most difficult and rewarding job.

11 Ways to Make Money Before Christmas

Sun, 08 Dec 2019 23:17:00 GMT

Who wouldn't mind being able to make extra money before Christmas?

It's always nice to have some spare change when the holidays roll around because it seems like you always end up spending more than initially planned.

Does the family really have to eat again? Another gift exchange you got pressured into?

You don't want to be the grinch, so if it's not in the budget, find a way to make some extra cash instead!

More Hacks to Make Money:

11 UNIQUE WAYS TO MAKE MONEY BEFORE CHRISTMAS

1. BLOGGING

Okay, I know you want to make extra money BEFORE Christmas, but I just can't not mention my favorite way to make extra money... BLOGGING!

Let me tell you a story. There was once a girl who started blogging and her only regret was not starting sooner. SPOILER ALERT! That girl is me ;)

Here's what makes blogging the bees knees :

Yes, it takes time to get things started and you have to commit to it, but it's worth it.

If you want to make some extra money long-term, consider starting a blog. You have literally almost nothing to lose.

Other Blogging Hacks/Resources:

2. CREATE AN ONLINE COURSE

Everyone knows a lot about something.

Whether it be photography, sewing, blogging, building a vegetable garden, watercolor painting, wedding planning, or anything else, there are always other people looking to learn more about a subject that you have expertise in.

I'm working on my first online course right now, and I can't believe how quickly I've been able to fill up the modules because of everything I've learned over the years about personal finance!

I use Teachable to make my online courses because I am not tech savvy at all, and with their platform I don't have to worry about design, marketing integration, etc.

To launch a successful online course , use Teachable and start creating!

3. BABYSIT OR HOUSE SIT

Babysitting and house sitting are great ways to make extra money!

Advertise on your social media page, church bulletin/website, or even at work that you are available to babysit or house sit.

Many people have all kinds of holiday gatherings leading up to Christmas and New Years and are often looking for someone willing to watch their kids instead of go out!

4. USE RAKUTEN TO EARN CASH BACK AT OVER 2,500 STORES

Rakuten allows you to earn cash back on your purchases both online and in-store at over 2,500 stores!

We don't have any credit cards, so instead we get back through Rakuten .

Here's what I love about earning money without thinking using Rakuten!

Plus, every time you refer a friend to Rakuten and they make a qualified purchase, you'll get $25 added to your cash back balance!

5. TEACH ENGLISH ONLINE

If you are passionate about teaching kids, being an online tutor might be the perfect side job for you!

You can make up to $22/hour through VIPKID teaching English online AND choose when and where you want to work.

VIPKID develops the curriculum you'll need to teach English to children from China, all you have to do is be engaged and ready to help others!

Start making money tutoring whenever and from wherever you want with VIPKID!

6. MAKE MONEY GROCERY SHOPPING

Instascart is a service that will pay you to shop for and deliver groceries directly to a paying customers front door.

There are two ways you can make money with Instacart.

To get started, apply by providing some basic information, then shop (and deliver if that's the option you choose)!

Sign up with Instacart and get paid to deliver groceries.

7. GET RID OF YOUR STUFFITIS

Have you ever noticed how addicted to stuff we are as Americans?

We try hard to only buy what we need and will use, but we still end up with a storage room full of stuff that we don't use!

Start selling your junk (oops I mean stuff) . Really. I promise you won't miss it.

Try listing 3 things for sale online everyday until Christmas using Facebook marketplace, local swap groups, Poshmark, or any of the other selling sites/apps.

You'll be surprised at what people will pay for your junk (*ehem* stuff)!

8. WORK A SEASONAL JOB

During the holidays, retail stores, post offices, and UPS/Fedex type companies are always looking for seasonal help.

Search your local newspaper, Craiglist, Indeed, etc. for ads regarding seasonal jobs. Or, simply ask a place you think might offer seasonal work.

More than likely if they are a business that is driven by holiday sales, they'll be able to make room for you on their team!

9. SAVE YOUR CHANGE

Start a savings challenge in the weeks leading up to Christmas by setting aside all your spare change in a jar.

Since I faithfully use cash envelopes to save money, I always have spare change on me!

If you use the cash envelope method of budgeting, simply take your coins that you have in each envelope at the end of every day and put them in your jar.

We often have $30-$50 worth of change saved up in a short amount of time!

10. SET UP AN ETSY SHOP

If you have a knack for creativity, consider starting an Etsy shop .

Consumers flock to Etsy every year during the holidays in search of the perfect unique gift for their special someone!

Just like an online course, if you have expertise or a specific skill in any area, there is always a market for it.

Maybe you're good at quilting, knitting, making DIY gifts... whatever it is, there's money to be made!

11. MAKE A BUDGET

Want to make money before Christmas? Start budgeting and it will suddenly feel like you have all sorts of extra money!

Don't underestimate the power of a written, monthly budget.

Christmas comes at the same time every single year. Yet we act so surprised when it comes around so quickly!

If you have a monthly budget and save for it year-round, you won't have to worry about making any extra money at Christmas.

I can't even begin to tell you how much simply living a budget changed our lives!

If you haven't already, make your first budget today!

7 Holiday Shopping Habits of People Who Value Their Money

Fri, 29 Nov 2019 22:37:00 GMT

Do you find yourself with a lot more gifts than money in your bank account after doing your holiday shopping?

According to the NRF , holiday shoppers will spend an average of $1,047 this holiday season, and considering over half of Americans wouldn't be able to cover a $1,000 emergency, this is a big hit for many.

So why doesn't anyone seem to be that stressed about it?

Because they have their plastic friend to come to the rescue- allowing them to spend money they don't have and pay for it later!

Or, they want to so badly for their kids to feel included with all the other 10-year-olds getting ipads for Christmas so they drain their bank account and hold their breath until the next paycheck.

Friends, there is a better way to do your holiday shopping, because yes, it can be fun!

What makes it really fun is not having the stress of your holiday spending following you into the new year!

Here's how to have a financially stress-free (I can't promise your family won't cause you any havoc ;) ) holiday season!

Other Holiday Posts:

HOLIDAY SHOPPING HABITS OF THE FINANCIALLY FREE

1. They Don't Overextend Themselves

Sometimes without knowing, many Americans overextend themselves financially, especially during the holidays.

Have you ever felt the pressure to spend beyond your means in the spirit of the holiday season? You are not alone! I've felt like this many times myself!

Many feel like they've been pressured into spending more than their bank account could handle on gifts, food, and other holiday celebrations.

I'm here to tell you that you don't need to feel guilty for living within your means.

Just because you aren't willing to sacrifice your savings and investing goals to join ANOTHER gift exchange doesn't make you the grinch, and you're not ruining Christmas.

Constantly ask yourself this holiday season, "are we overextending ourselves?" If the answer is yes, scale it back!

2. They Aren't Afraid to Say No

Those who value money have learned to say no to things that don't align with their priorities.

Saying no to a lot of little things (like extra gifts, vacations, etc) allows you to say yes to a few big things (retiring early, paying off your debt, paying off your home, etc).

What I'm not saying is don't buy any Christmas gifts, what I am saying is be okay with saying no to things that aren't in the budget!

3. Credit Card Debt is Out of the Question

Carrying last years expenses into the New Year is a great way to make sure you spend the next year struggling to make it to break even.

Don't keep your plastic friend lurking in your wallet or purse ready to use as a crutch to bridge the gap between your income and your spending.

I have a super simple proven process for beating credit card debt - pay them off, close the accounts, cut them up, throw them away and start using cash.

I like to use cash envelopes like my floral watercolor envelopes pictured below to do my Christmas shopping because it's a lot harder to hand Uncle Ben over the counter than it is to swipe a card.

Using cash for your holiday shopping will help change your spending behavior, which is the goal!

How to Stay/Get Out of Debt:

4. Spending is Planned

When Christmas and other holidays are in the budget , they are a lot less stressful.

Living on a budget doesn't mean you never spend any money. Rather, you spend every dollar on paper BEFORE the month begins.

As a result, you will feel the freedom of knowing that you have a plan, and that plan gives you permission to spend within budget without guilt!

If you have never done or have had trouble sticking to a budget, snag my editable PDF budget templates below in my shop!

Getting on a budget will allow you to save for Christmas year-round instead of scramming to buy gifts and consequently draining your bank account.

Budgeting Hacks & Tips:

5. They Stretch Every Dollar

When you start to value your money, you stretch every dollar as far as it can go, no matter how much money is or isn't coming in.

If I'm out shopping, rather than buying what I'm out to get at the first store, I price compare for the best deal (if the savings is worth more than my time).

Instead of going to the grocery store every day and planning dinner at the last minute, I make my best effort to meal plan faithfully every week. I pay $5 for a meal planning service that does it for me. In my opinion, $5 per month is worth it when I save $100 a month on groceries.

Stretching every dollar is a habit of people who value money they worked hard for.

6. Gift's Aren't the Center

While most people enjoy getting and receiving gifts at Christmas, people who value their money know that gifts aren't the focus of Christmas.

My husband and I don't even get each other any Christmas gifts (gasp) !

The only gifts we do are stocking stuffers for each other with things that we need. The gifts aren't the focus of our Christmas. We genuinely enjoy each others company and our families company!

However, the most important reason for the season is making Jesus Christ the center of our holiday. He came to pay the ultimate price so that we may have life!

7. They Don't Compare to Others

Have you ever listened to someone else talk about all the money they were spending on gifts? Or rather, all the gifts they got this year?

Soon enough, you start to wonder why your husband didn't buy you a new apple watch, a trip to the Bahamas, and the latest suburban.

I mean c'mon, does he even care? ;)

At one time, I struggled with constantly comparing myself to others. I still have days I struggle, but I've learned that it isn't worth it.

I'm no longer impressed by how much money someone is spending on gifts or what they got for Christmas. I'm impressed by how much they save, invest, and steward their money!

If you struggle with comparison, leave your phone somewhere out of sight during the holidays. Stop scrolling, start giving thanks.

17 Simple Christmas Gifts for Mom She'll Love

Mon, 25 Nov 2019 00:47:00 GMT

Mothers deserve the world, but sometimes it can be hard to find gifts for mom!

It never fails every year I set out with the best intentions of shopping early for parents, and end up sitting at our kitchen table a week before Christmas trying to figure out what the heck to get my mom and dad that will show them how much they mean to me.

I've learned that you don't have to get the most unique, sentimental gift to show your loved ones that you love them.

In fact, you shouldn't feel like you have to get them anything to show them you love them.

I'm not saying it's bad to spend a lot of time thinking and choosing a gift for your loved one, because some of you are gifted (no pun intended) in that department!

I most certainly am not. If you aren't either, just remember that the most meaningful gift you can give someone is your presence in their lives and your love!

In this post I'd like to share some gift ideas for YOUR mom or just a special lady in your life.

Here's my special mama and I at my baby shower for our first little babe!

Now that I'm a mother myself, I have more respect and admiration for mom than I ever have in my life!

It's no job for the faint of heart!

Don't be afraid to spoil the mom in your life, as long as it's in the budget!

Related Posts:

Perfect Gifts for Mom

$10 and Under Gifts for Mom

These two gifts from Chatbooks are a steal! They are both under $10 and you can get $10 credit to Chatbooks using my link!

$30 and Under Gifts for Mom

My favorite gift from the list below is probably the state shaped bamboo cutting board. I have one I got as a shower gift shaped like my home state of Washington and I love it!

If you're looking for unique, the cutting board is a great gift!

$50 and Under Gifts for Mom

Do we have any wine lovers in the house? I'm a sweet red kind of gal. Like the kind that's so sweet it tastes like grape juice. Does that count??

Regardless, check out the Macys' Wine Cellar deals listed below for your wine-o mama!

$100 and Under Gifts for Mom

If you have a higher budget, the gifts below are a great value. I'm all about getting a the best bang for my buck. My husband calls it cheap, but I just tell him I like to stretch every dollar he works hard to earn for our fam;)

OTHER SHOPPING TIPS

STICK TO A BUDGET

Your best defense against overspending while shopping for gifts is having a plan, in other words, a BUDGET.

If you aren't already on a budget, now is a great time to start !

Here's how you can quickly create a budget for Christmas.

A budget gives you permission to spend money without guilt, because you already have the money saved!

In other words, you live off of last months income, not this weeks paycheck.

You can check out my ultimate budget bundle I created jam packed with budget templates, debt payoff spreadsheets, expense tracking sheets, and other budget tools!

Related:

USE CASH INSTEAD OF A CREDIT CARD

All that holly jolly can do a lot of damage if you're putting everything on a credit card.

Don't let this years expenses follow you into next year!

No, I don't care about all the cash back you'll be missing out on.

Studies show you actually spend MORE with a credit card than with cash, so stick to the real stuff and there's your cash back.

Plus, you can get cash back without a credit card by using Rakuten while shopping online and in store (use the app)!

They offer double cash back at TONS of stores during the holidays!

Be sure to use cash envelopes to keep your spending on track during the holidays!

Related Content:

REMEMBER...

This holiday season, everywhere you go you will be bombarded with messages from advertisers telling you what you "need" to get in order to make your loved ones feel special.

Don't fall for the trap.

The only thing you need to do this Christmas to show your loved ones how much they mean to you is be present. Stop scrolling. Put your phone down.

Remember to be thankful for what God has already blessed you with.

The Best Time Saving Way to Make Easy Freezer Meals

Fri, 22 Nov 2019 22:31:00 GMT

Introducing a new dinnertime favorite... super easy freezer meals!

They're so easy your husband might not even ask you one question if left unattended to make on his own ;)

Freezer meals are great for just plain busy moms, expectant mothers, working moms, you name it.

They're also great for the budget. Because let's be honest, when push comes to shove and we don't have a plan for dinner we end up with a lot of waste and lots of drive thru receipts.

Both are major budget killers.

So, what's the solution? Not just having a plan, but having a plan for when there actually isn't any time to make dinner.

You go from work to soccer practice to band concert and soon dinner is in the frantic slap something together mode.

There is a better way thanks to freezer meals!

Here's how MyFreezEasy works and why it's great for the busy mom!

THE BEST EASY FREEZER MEALS TOOL

MyFreezEasy is a freezer meal system designed by Erin Chase of $5 Dinners. A mom of four boys, she knows the stress that comes with having kids or a spouse that is constantly hungry!

Her goal is to remove the overwhelming feelings that surround feeding your family!

When we first got married, I remember thinking, it's time to feed him again? Already?! Now I have a hungry husband AND toddler to feed and soon to be baby!

If there's anything I can do to take the stress out of meal time I'm on board that train!

HOW MYFREEZEASY WORKS

Here are some of the best features of MyFreezEasy that you'll love:

THE MOBILE & TABLET APPS

This system is designed for the on-the-go mom who doesn't have hours to sit around making a meal plan and creating a shopping list.

You can literally pull into the parking lot of the grocery store, download or build your own meal plan, and have a shopping list ready to go.

Some key features of the mobile app include:

See below how easy it is to use the mobile and tablet apps!

The picture above illustrates the process for building your own meal plan.

However, there are preset meal plans that are sent to your inbox and uploaded to the member area every single month!

EFFICIENCY

After you have your ingredients, all you have to do is find an hour to make 10 meals!

Erin even has video assembly instructions, so it's like you're making the meals with her.

You don't have to worry about waiting for anything to cook or having down time, during this hour you'll be super efficient.

CUSTOMIZE

You can easily customize your meal plans to be the perfect fit for your family!

Whether you have a small family or large family, you can customize the meals to be the perfect fit by adjusting the serving sizes.

Cause who has time do math? ;)

WANT TO TRY IT FREE?

If you just want to see if you like it or if it will work for your family, you can try it for free!

Here's what you'll get in the free freezer meal workshop:

I always like to try before I buy, so this free workshop is a great option to get familiar with freezer meal cooking! :)

Happy freezing!

Related Content:

The Secret to Creating Extremely Clickable Pinterest Images [+550 FREE IMAGES]

Sat, 09 Nov 2019 16:19:00 GMT

I know what you're thinking, I have enough to worry about with my business and my Pinterest images (or Pinterest in general for that matter) falls right around sorting hangers on my to do list.

Or, maybe you haven't started your your blog or online business yet and you're just curious as to what it takes to be successful!

Pinterest is an extremely important and often under-utilized tool for MANY businesses.

When I first started, I tried to grow my blog using Facebook only. Then I tried Facebook and Instagram.

FINALLY, I tried Pinterest, and that's when the magic happened.

Not instantly of course, there were some hurdles along the way! But that's why I want to share with you to day so hopefully you can avoid making the same mistakes I did.

Now, nearly 80% of my visitors to my site come from Pinterest!

All it took for me to get them here was putting a little effort into my Pinterest pins!

Today, I want to share with you how to create Pinterest images that flood traffic to your website!

WHY PINTEREST?

What's great about this is that Pinterest is a completely free platform with 291 million monthly users.

291 million people go monthly to Pinterest for inspiration and with intent to buy.

It's a melting pot of people waiting to view your content y'all.

I believe Pinterest is one of the fastest ways to increase traffic to your website and thus increase your sales.

HOW TO CREATE CLICK WORTHY PINTEREST IMAGES EVERY TIME

Pinterest is important, and it's also important that you focus on one social media platform at a time.

So many people make the mistake of trying to explode their Pinterest traffic, gain 20k Instagram followers and be super active on Twitter all at the same time.

This is a recipe for disaster. You'll be more effective if you focus on one thing at a time, and I'd recommend focusing on Pinterest first!

OPTIMIZE YOUR PINS FOR SEO.

You can optimize your pins to be found in the Pinterest search a few different ways.

Here are the most important ways:

This is an important step that most people miss! Always be sure to include a pin description (that isn't just your blog post or website page title).

Telling people a little about your pin goes a long ways in increasing the click through rate!

CHOOSE FONTS AND COLORS THAT COMPLIMENT EACH OTHER.

Have you ever seen a really ugly pin on Pinterest? Usually it's the font or color combination that makes you react negatively to an image.

Many pinners are browsing Pinterest on their phones, so you want to make sure your pin is easy to read and catches the eye!

Stay away from loud color combinations and fonts that are hard to read.

YOUR PHOTOS HAVE TO BE STUNNING.

The key to getting people to click is in the photo- it has to be absolutely stunning.

I've tried using free photos, and I wasted a bunch of time trying to find quality photos for every post and to make it worse, I would see pin images that use the same free photos I did. NOT GOOD.

I use a stock photography service created by Kayla at Ivory Mix .

She creates high quality, high resolution stock photos that can be used by you without restrictions.

I can easily browse the images in my member area by niche, as pictured below!

This just a snapshot, there are over 2,500 photos in the library and tons of niches!

Kayla adds hundreds of new photos every single month, so there is always new images!

GRAB 550+ FREE STOCK PHOTOS HERE FROM IVORYMIX!

These are some of the beautiful images that you get for free by simply signing up for Kayla's email list, including the images pictured below!

I started by signing up for her free photos and was instantly impressed, so I signed up for a membership!

ONLY PIN RICH PINS.

Rich pins are a free product available for anyone on Pinterest that simply show extra information about your pin.

Here's how to set up rich pins for your website.

CREATE AT LEAST 5 PINTEREST IMAGES FOR EACH BLOG POST.

For every blog post or product that you sell, you should aim to create at least five different Pinterest image designs for that page.

I use Canva , a free online design platform, to make my Pinterest images.

To be as efficient as possible, I have five templates saved, so all I do is change the titles and images on the pin and boom! I have my five pins.

You can definitely make more images than this depending on how much time you have to spare.

PIN AROUND THE CLOCK.

When you're first starting Pinterest, it's a good idea to pin at least 30x per day, and specifically at times when your audience is most engaged.

I don't have time to sit around all day waiting for my alarm to go off and manually pin at the times my audience is most engaged.

Just a shot in the dark, I'm guessing you don't either :)

I use a Pinterest pin scheduling service called Tailwind that allows me to schedule my Pinterest pins a year in advance if I'd like.

Additionally, Tailwind does the hard work for me. It sets up a customized pin schedule for me based on when audience is most engaged :

For more information about Tailwind (including a free 30 day trial ) , you can find my review of Tailwind here.

Related Content:

CHECK YOUR ANALYTICS FREQUENTLY.

Pinterest has great analytics for you to see what pins are performing well.

The only downside to Pinterest analytics is that you can only see data for the past 6 months, and the analytics are very basic.

I use Tailwind to analyze how I'm doing on Pinterest, it's a great feature of using the service!

Here's a snapshot of my Tailwind dashboard, showing me a summary of how I did the past week.

I check my analytics frequently so that I can see what pins and group boards are getting the most engagement, and what pins are going viral on what boards.

I take my top performing pins and repin them to my boards that have the most engagement, thus increasing the traffic to my site!

DON'T HAVE A WEBSITE YET?

If you're thinking about creating a website/blog, remember that it costs almost nothing to start!

I use the Wordpress blogging platform on Bluehost, and through my link you can get a free domain name and monthly hosting for as little as $3.95/month, as long as you sign up for at least 36 months!

It takes under 15 minutes to get started, and I have a step by step tutorial to walk you through it!

Give it a whirl! :)

Related Content:

How Student Loans Will Cripple Your Ability to Build Wealth

Fri, 01 Nov 2019 21:44:00 GMT

I know this is a wildly unpopular stance, but it's true so I'm going to say it - student loans will enslave you financially and cripple your ability to build wealth.

Right now, the average student graduates with just over $35,000 in student loan debt.

Add in their $20,000 car loan and $5,000 credit card debt and they've successfully dug themselves into a $60,000 hole before they've made any real money.

We live in a nation where many people are enslaved financially.

Think about it, what has all this pushing of higher education led to?

It's led to young adults mindlessly wandering into debt and expecting the student loan tooth fairy to pick up the tab.

The student loan crisis thrives upon the idea that if you don't go to college, you will have unfortunate consequences.

In other words, if you don't go to college you'll be a social outcast who lives in their parents basement until they are 30 and never makes over $20,000.

I'd argue if you don't go to college (or go debt free) you'll be at least ten years ahead of your peers when you graduate- here's why.

Debt Related Resources:

HOW STUDENT LOANS CRIPPLE YOU

YOU START YOUR CAREER DIGGING YOURSELF OUT OF A HOLE.

One of biggest reasons college is shoved down our throats is because if you go to college, THEN you can get a "good job."

Don't worry about the debt, you'll be able to pay it off in to time with the outstanding job you get.

Yet many college students end up taking jobs that are not in their field of study and/or that don't require a degree.

A degree is NOT priceless. In fact, so many people have a degree it doesn't set you apart at all!

Instead of going to college for four years and starting $30k in the hole, many students would be wise to go straight to work and start building a nest egg.

I know that some professions do require a degree and a lot of continuing education, but I would still advise paying cash for school.

It's not easy, but it's worth it!

DEBT ENSLAVES YOU.

Want to take an extra day or two off of work? Can't afford to do it because the bills won't be paid.

Have a new job opportunity? Can't afford to take it because you've extended yourself too far financially.

When you're in debt, your master is the lender and whomever is your master gets to make all your decisions.

Proverbs 22:7 says, "The rich rule over the poor, and the borrower is slave to the lender."

There is a reason the Bible warns against debt, because it enslaves you. God wants you have to more freedom than that.

YOU'RE LEFT FEELING OVERWHELMED.

Most students don't even realize what they've gotten themselves into until they get their first notice in the mail saying their first payment is due.

Just think, 21 years of payments, that's enough to make anyone feel overwhelmed!

You can borrow however much money you want, go to any school you want, and have no ramifications... until you graduate.

Then you're left with a mess and no idea how you're going to get out of it.

Student loans don't hurt at the time- you're in college, not paying a dime, living the good life.

It hurts when it's time to buck up and pay.

Only then do you wonder... was it really worth it?

THE COURSE OF YOUR LIFE IS ALTERED.

People are waiting longer to get married. To have kids. Divorce is rampant and the most cited reason for divorce is money problems.

You'd love to start a family, but you can't afford it.

You want to be a stay at home mom, but you can't afford to quit.

Buying a house would be nice, but you can't save because of all the monthly payments.

All your dreams and goals get delayed and take a back seat because of your debt.

Digging yourself into a hole has both short and long term affects.

If you can go to school debt free and your spouse does the same, you will be at least 10 years ahead of all your peers.

Your student loan debt will not dictate when you get married, have kids, etc.

You will tell your money where to go- not the other way around.

DEBT KEEPS YOU BEHIND.

Statistics show the average student with a bachelors degree takes 21 years to pay off their student loans.

If the average student takes 21 years to pay off their loans, that means it takes them 21 years just to break even- to get up to broke.

Keep in mind, you're not paying back the face amount of your loans, you're also paying 21 years of interest.

That being said, if you are the average student with $35,000 of student loan debt and it takes the average of 21 years to pay off, you'll have paid $49,473 for a $35,000 degree after accounting for interest of 3.5% (a low ball) .

Does that sound like a good deal?

WHAT'S THE SOLUTION?

CHANGE HOW YOU THINK ABOUT STUDENT LOANS.

Stop believing what our culture deems "normal" , because normal is BROKE.

Student loan debt is not good debt. It's bad debt.

Student loan lenders do not have your best interest in mind. They're trying to figure out how they can make the most money off of you.

Now, I'm not against education. I think education is a great thing- for some people.

The reality is not everyone who starts college finishes, and not everyone who goes to college has a clue what they want to do. In fact, most don't.

This is why many students end up either not finishing school, changing majors (cue more debt because more school) , or finding out they love a field that doesn't even require a degree.

But, because they were told they would amount to nothing unless they went to a four year school, they signed their name on the dotted line and off they went!

Change how you think about student loans.

GET ON A BUDGET

Whether you're saving for school or you are the person I'm describing with a mound of debt- a monthly budget is an essential tool for you.

When we started budgeting , suddenly we were able to free up more income to throw at my student loans.

To give you all the tools you need to succeed financially, I created a budget bundle that includes 45+ pages of personal financial resources.

Or, you can sign up for my free budgeting email course below that will help you create and understand your first budget!

CHOOSE A SCHOOL YOU CAN AFFORD.

What if students actually calculated what they can afford, and only let those schools be options? We'd have a heck of a lot less than 44 million people in student loan debt.

Trade schools and community colleges are SO underrated.

Colleges are overcrowded with students looking to get degrees in fields that are swarmed with competition. On the other hand, trade schools offer degrees for fields that have very competitive pay and jobs sit open.

I think the reason so many students shy away from trade schools and community colleges is because we're told they're second best.

We're told you should look at them ONLY if you are dirt floor poor.

Even if you only go to a community college for two years and then transfer to a four year school, you'll have saved $40k or more!

The bottom line is DO THE MATH. Choose a school you can afford.

7 Strange Things We Did On Our Debt Free Journey

Sat, 26 Oct 2019 19:55:00 GMT

When you decide to become debt free, you'll find yourself doing a lot of things that other people wouldn't consider normal.

During our journey to pay off my student loans in 12 months , we were those people who did really weird things with their money.

Now on the other side, I'm here to tell you that being weird WORKS!

In fact, I'd highly recommend it if you want to pay off a lot of debt in a short amount of time.

Here are the unusual things we did during our debt free journey!

Weird Things We Did On Our Debt Free Journey

1. Paused Our Retirement Saving

During our debt payoff journey, we stopped all investing, which seems to contradict convention wisdom that teaches to invest as soon as possible.

This sounds strange because we're taught to invest as soon as possible, whether you have debt or any savings at all.

Instead, we followed Dave Ramsey's wisdom to focus on one thing at a time in order to be as efficient as possible.

In his baby steps, investing for retirement doesn't come until the fourth step:

It's important to focus on one thing at at time so you can put 100% of your effort towards paying off debt . Additionally, you'll be more prepared when emergencies arise.

If you try to pay off debt, save for retirement, and build an emergency savings you'll become overwhelmed and not nearly as efficient.

2. Taped Visuals to Our Refrigerator

I'm a huge fan of having visual reminders of your goals so that you're made aware of them every single day.

While we were paying off debt, I had a picture of a thermometer that I would color in every time we made another student loan payment.

This kept me motivated knowing that with every payment we were inching closer to our goal... debt freedom!

Additionally, I kept our debt snowball tracking worksheet handy all the time so whenever we made an extra payment, I could easily update it and plan the next payment. It sounds nerdy, but I always got such an adrenaline rush when I would update our debt snowball worksheet!

START YOUR DEBT SNOWBALL

3. Rarely Went Out to Eat

We ate worse on our debt free journey than we did in college.. . I'm talking grilled cheese and spaghetti friends.

When we first got married, we would go out to eat ALL THE TIME and it wouldn't be anything for us to drop $500 going out to bars on the weekends.

After all we were young, had no kids, and made good money. Why not?

If I could go back, I'd slap myself and say BECAUSE YOU HAVE A MOUND OF DEBT TO PAY OFF, YOU CAN EAT STEAK LATER!

When we started budgeting, we found that eating out was one of our biggest downfalls. But, it become an opportunity for us to change our behavior and send the money to debt instead.

So, we rarely went out to eat during our debt free journey!

4. Rented for Under $600 a Month

No one should be buying a house when they are deep in debt. No, I don't care if it's a good deal.

Don't convince yourself that buying a home is more important than becoming debt free.

Buying a home while you're in debt will not only tire and stress you out, it will inhibit your ability to pay off debt quickly.

Consequently, you'll be chained to your debt a lot longer than you should be and you'll be paying exponentially more interest on the debt than if you would've been patient and focused on one thing at a time.

Only after you become debt free are you ready to buy a home.

5. Lived on a Bare Bones Budget

If I had to describe our budget during this time in one word, I'd say... creative , and not the fun creative ;) We lived on a bare bones budget.

A bare bones budget is one that covers only the basic necessities.

We're talking food, shelter, clothing. If you want a take out pizza, better call grandma and ask if she'll slip you a 20 one last time.

If you'd like to pay off debt, you MUST ball on a budget.

You can get free budget templates by signing up for my free finance planner by clicking here, or sign up below!

6. Put Bonus Money & Gifts Towards Debt

This might make us super weird. We put any money we received as cash gifts (birthday, wedding, etc) towards our debt!

We decided to forgo an exotic honeymoon and nice new purchases for our apartment and instead dig ourselves out of the hole a little bit more.

Yes, it's extremely tempting to spend the money on yourself. However, when you become laser focused on paying off debt, it becomes easier and easier to say no.

7. Ignored the "Grace Period"

The grace period is referring to the six months after your college graduation when you are not required to pay on any of your student loans.

Instead of enjoying this "free period" , I paid on my loans with any extra money I had!

Any payments you make during this period go towards reducing your principal balance (not interest), which is favorable to you.

BECOMING DEBT FREE

The best financial decision we've made to date is to put our heads down and pay off all our debt.

We followed Dave Ramsey's debt snowball method to pay off our debt, and were able to pay off $20k in 12 months while fresh out of college and living on one income!

Believe me when I say if we can do it, anyone can!

Here are some resources for you to get started attacking YOUR debt!

How to Get Insane Pinterest Traffic Without Ads [ A Tailwind Review ]

Sun, 20 Oct 2019 23:11:00 GMT

Yes, you can get insane Pinterest traffic to your blog, business site, etsy shop, etc. without using any ads , and I want to share how I got insane Pinterest traffic from Tailwind!

When I first started blogging, I thought the only way to get traffic to my blog was by spending a ton of money on Facebook, Pinterest and Instagram ads.

Thankfully, before I went ahead and started throwing $100 bills out the window, I did some research.

I decided to do a free trial of a service called Tailwind that all big name bloggers raved about, and to be honest I didn't expect much.

I'm happy to report that now 75% of my blog traffic comes from Pinterest, and I went from hundreds of monthly pageviews to tens of thousands.

My blogging journey has been a lot of trial and error, but Tailwind is one service I can confidently say you need as a blogger, and unlike other tools, it won't break the bank!

HOW TO GET INSANE PINTEREST TRAFFIC WITH TAILWIND

Below is a screenshot of my blog traffic stats after just TWO MONTHS of using Tailwind:

I started using the free trial in September 2018 (100 pins for free), and bought a full year (with unlimited pins) the following month.

As you can tell from the screenshot of my pageviews during this time period above, my growth was exponential!

WHY TAILWIND?

Tailwind is the best. Without it, I'd be lost. I'm not kidding. My blog really didn't take off until I started using Tailwind, and here's why!

ANALYTICS

Tailwind does the hard work for you, with analytics that go above and beyond what Pinterest itself can offer you.

As a result, you cant spend more time working on what matters- content and sales!

Some of my favorite analytics offered by Tailwind include:

These features only scratch the surface of the analytics available to you.

I use the analytics to re-pin my top performing pins over and over again, leave group boards that are not performing well, and increase my organic traffic.

SMART SCHEDULING

Tailwind offers a smart schedule feature , which recommends times for you to pin based on your follower engagement.

You can pin as much or as little as you'd like, it will keep refreshing suggested pin times based on your followers engagement over time!

BULK PIN SCHEDULING

By far my favorite feature is the browser add on tool that allows you to upload and/or select multiple pins and bulk schedule them.

With the browser add on, you can select and schedule multiple pins at once from ANY webpage, including the Pinterest dashboard.

This is a LIFE. SAVER. I don't know about you, but I'm a busy mom who doesn't have all day to spend perfecting my Pinterest pinning schedule.

I hardly have time to shower, so the $10 a month it costs to have Tailwind is a no brainer.

SIMPLIFYING PINNING

A simple drag and drop feature allows you to edit and organize your pin schedule to your liking.

The shuffle feature allows you to shuffle your pins to spare your followers from repetitive content.

Tailwind will also automatically tell you if you've already pinned something to a Pinterest board, making your profile less spammy and less likely to be flagged for spam.

The interval setting allows you to schedule one pin to multiple boards at an interval.

INTERESTED? THROUGH MY LINK GET ONE MONTH FREE!

In the world of website traffic, Pinterest is the name of the game.

Being the frugal fanatic that I am, I tried many different things to increase traffic to my site without spending a dime.

As a result, I wasted a lot of time and didn't make any progress.

Trust me, I want to spare you the agony of pouring in thousands of hours to your blog and feeling like your spinning in circles.

After ONE month of Tailwind I saw incredible results, and I never looked back.

I'd encourage you to give it a try, with the one month free trial you have nothing to lose!

Why Lifestyle Creep is Your Biggest Hidden Money Problem

Thu, 17 Oct 2019 22:00:00 GMT

You can give me every excuse in the book, but the honest truth is more than likely your biggest money problem is your lifestyle creep.

You get a big bonus or raise and it's time to upgrade the cell phone, get a new car, plan the exotic vacation you've been waiting for, and remodel your home!

Without realizing it, you've effectively spent MORE than your raise, putting you in a worse financial situation than before, even though it appears to be better.

When people talk about their financial struggles, they usually point back to their wage as the issue.

This is a clever tactic because it diverts the attention and symptom of the problem from themselves and their own actions.

Lifestyle creep is the reason many people with modest incomes are actually wealthier and better off than those considered top income earners.

Anyone can fall into the trap of lifestyle creep. If you aren't careful with your money and don't practice self-discipline you'll likely be next!

WHAT IS LIFESTYLE CREEP?

Lifestyle creep is when you live on more than you make, making it hard to save, invest, and results in living paycheck to paycheck despite having a higher income.

Many times lifestyle creep is brought on by an increase in wage and/or bonus that results in your standard of living increasing by more than the increased income.

All of us can fall prey to this trap when our income rises.

Your paycheck is larger, and you're ready to give yourself a big pat on the back for a job well done!

Suddenly the mall sounds more appealing than the thrift store.

You reward yourself with a nice dinner out, but soon enough dinner out becomes the norm.

The problem with lifestyle creep is that it's impossible to get ahead financially if you are spending more than you make, no matter what your income is.

Lifestyle inflation can be avoided by laying some ground rules and practicing some good old fashioned self-discipline.

HOW TO AVOID LIFESTYLE CREEP

AVOID DEBT AT ALL COSTS

I can't say this enough- just because you can afford the monthly payment doesn't mean you can afford an item.

True affordability is defined as being able to pay the full cash price for the item right now.

For example, let's say you get a $5k raise and reward yourself with a new vehicle for $15k that you finance over 5 years at 3%.

Although your monthly payment will hover around $270 and cost you $3,240 a year (less than your $5k raise), you're stuck with that $270 monthly payment for four more years.

Even if you get another $5k raise the next year, chances are your household costs will have risen, and you'll again find a way to reward yourself.

If you're currently in debt, start the debt snowball today and break the chains of monthly payments.

Monthly payments destroy your ability to save, invest, and have financial peace .

REWARD YOURSELF WISELY

It's not a bad thing to reward yourself with a nice dinner for working hard, just make sure it's in the budget!

Instead of buying yourself a nice new car and outspending your raise, treat yourself to a nice dinner and do a budget check in.

Adjust your budget for your new income, but stick to your budget principles.

Your adjusted budget should still follow the percentages above (the percentages represent % of monthly take home pay).

Makes sure you put some fun money in the budget otherwise if you deprive yourself of guilty pleasure spending completely you'll be more likely to bust the budget.

GET ON A DANG BUDGET

A zero based budget helps you to avoid living beyond your means.

Most people are scared away from a budget because they say they don't have time.

Our monthly budget takes me five minutes to complete at the start of every month and I just created an excel version of my best selling monthly budget template for those in a real time crunch!

If you're new to budgeting or need to brush up your budgeting knowledge, click the image below to sign up for my free budget bootcamp email course!

DON'T MAKE HASTY MONEY DECISIONS

When you get a raise and/or bonus, don't drive straight from work to the car dealership.

As your income rises, make gradual money changes.

If you make hasty money decisions, you're headed straight for financial ruin due to lifestyle creep (the phrase itself sounds icky) !

A few good rules to avoid making hasty money decisions include:

Any time our income rises, we don't make ANY sudden changes.

We actually make REALLY REALLY slow changes, and that has saved us from poor decision making!

DO THE MATH

If you are set on purchasing an item, make sure you've done the math to see if you will be spending more than your raise.

This seems like common sense, but so many people say their money problems started when their income rose and their spending rose more.

Most people know how to do the math, but let their impulsiveness get the best of them.

In fact, I'd argue that Americans are the least self-disciplined they've ever been when it comes to money behaviors.

Even if the math doesn't make sense, we just can't say no.

Stick to this rule of thumb- if you're spending more than you make you need to start telling yourself no.

The Honest Truth About the Holiday Spending Craze

Sat, 12 Oct 2019 17:07:00 GMT

The truth about holiday spending in short is that most Americans spend more than what they can afford.

In 2017, Americans racked up approximately $1k in Christmas debt, mainly credit card debt.

Many Americans are willing to ring in their new year with Christmas debt that will follow them all year- in the name of Christmas cheer!

Kids in America get more presents than ever before, and parents are forking out more than ever before.

I've witnessed at family celebrations kids crying when they opened their gift because it wasn't what they wanted.

I think this begs the question... is the holiday spending overboard and are the lessons we are teaching our kids good?

If you're like me and want to be as smart as possible about your holiday spending and teach your family valuable lessons, keep reading!

HOW TO BE SMART ABOUT HOLIDAY SPENDING

PUT IT IN THE BUDGET NOW

Christmas DOES come at the SAME TIME every single year !

I budget for Christmas year round. Every single month I have a certain amount I set aside so that I have the money when it comes time to buy presents, and this way I can start my Christmas shopping way early!

In January (or now if you're just starting to save), take the total amount you'd like to spend on Christmas gifts and divide that by the months until Christmas.

For example, if you typically spend around $600 on Christmas gifts and you start budgeting for it in January, you would need to set aside $50 every month to reach your goal by December.

This is the simplest and most effective way to avoid holiday spending stress- put in the budget!

This way you don't have to come up with $600 extra in December and sacrifice more important goals to do so, like saving and investing!

If you've never made a budget before, start here.

You can snag my free budget template by subscribing below!

A budget gives you permission to spend money without guilt.

Whether you go all out for Christmas or, like me, think Christmas spending is overrated, as long as it's in the budget you don't have to feel guilty!

Guilt comes when you spend money you know you don't have.

Having a plan for your money is the best way to avoid money stress, especially during the holiday seasons!

KEEP YOUR LIST SMALL

Make your list. Check it twice. Cross a few people off. Don't feel bad about it.

Ok that sounded a little harsh, but do you really need to get your niece, post man, and all your kids teachers gifts?

No, you don't! Yes, I know Pam got all her kids teachers an iPhone X and a massage, but c'mon. It's not necessary. In fact, it's a little overboard.

If you really feel like you can't cut anyone from the list, opt for a DIY or homemade gift instead... cookies anyone?

BE STRATEGIC ABOUT GIFTS

I'm going to be honest, my son plays with the boxes and wrapping paper a lot more than any toys he receives as gifts.

In fact, we did not get our son anything for his first Christmas, and he won't be getting him anything this Christmas either *GASP* !

He gets plenty of loot from his grandparents!

At this age, instead of gifts, we make a contribution to his savings account.

Yes, I get lots of bewildered looks and side-eyes from all the fun moms. To be honest we have the money to spoil our child rotten, but we want him to learn from an early age to appreciate gifts, not expect them.

Get creative with gift-giving and be ok with being different!

THE FOUR GIFT RULE

The four gift rule is simple and will ensure a clutter free Christmas.

The four gifts include a want, a need, something to wear, and something to read!

This idea is great because it works for every age.

While as they get older their present budget will probably get larger, you can keep the same concept!

P.S. if someone in your life needs to get their finances together or learn more about how to manage money, check out my budget bundle ! It includes everything you need to manage your money well!

Related Content:

SHOP ALL YEAR

I'm that crazy person whose shopping for Christmas in July and goes to the store on December 26 to get my Christmas decorations.

The benefit of shopping year round is that you can take advantage of the real sales and space out your shopping so you're not left to do all your shopping the week before!

Try to always buy the item you're out to get during the off-season.

For instance, if I'm looking for a winter coat as gift, I buy it in July.

I save lots of money this way by avoiding being forced to buy all my gifts in December during the "Christmas sales" that aren't really sales.

They just mark up the normal prices and then advertise a 50% discount to trick you into buying the item at normal price.

Someone's gotta tell you the truth ;)

DON'T BE AFRAID TO SAY NO

Let's all say it together... N-O! It's OKAY to say no to people when they ask you to attend another Christmas party or be a part of another gift exchange. Really, it's fine.

I realize that it's not going to break the bank to be a part of another $15 gift exchange, but believe me when I say IT. ADDS. UP.

Add the $15 extra gift exchange you agreed to, the $10 gift you got your boyfriends sister, and the $30 you spent on teachers gifts and there's $55!

When we were getting out of debt , we mastered the word no and the phrase it's not in the budget right now.

Saying no back then because we had to and we were laser focused on our goal set us up for success now , when we have the money to spend but have learned that our spending should reflect our priorities.

I realize that in a culture that teaches you to say YES to everything, saying no can be difficult.

That's why you have to work at it, it's a learned habit.

In a crowd that's broke (but doesn't look the part), don't be afraid to say no.

Related Content:

THROW AWAY THE CREDIT CARD

Want to give yourself an awesome gift this year? Cut up your plastic crutch!

No, I'm not kidding, and no, I don't care about all the points you're missing out on.

The truth is, the points/miles/cash back/whatever-the-heck-else gimmick only causes you to spend MORE money than you normally would. Think about it. The $200 purchase suddenly doesn't bite so much because you're getting 3% of it back! It's basic psychology.

Studies have proven OVER and OVER and OVER (yet people still try to convince me otherwise) that you spend more with plastic , and specifically, with credit over debit.

Credit card users tend to focus more on the benefit over the cost of an item.

In one study credit card users were willing to spend 2x as much with a card than with cash!

Related Content:

MAKE EXTRA MONEY

If you're dead set on spending a certain amount but can't do it with your current budget, make some extra cash !

Here are just a few ideas to make money from the comfort of your own home:

There are endless other ways to make extra money including picking up extra hours at work, cleaning houses, helping coach a sports team, etc.

START A SAVINGS CHALLENGE

If you are really in a bind and need to save money fast for Christmas, start a Christmas savings challenge!

Set cash aside every week and keep it somewhere safe and somewhere you'd have to work to get it!

In other words, don't keep it in your purse.

You don't have to use the exact savings challenge I have shown here, just search Pinterest and you can find tons of them, or create your own!

REMEMBER WHY WE CELEBRATE

The well known Christmas tagline rings true, Jesus is the reason for the season!

So many times we get caught up in the parties, gifts, contests, and treats, that we barely spend 10 minutes remembering the reason we celebrate.

That is the reason our family celebrates, all other celebrations come second!

The Best Cheap Beauty Products I Use Every Day

Sat, 28 Sep 2019 17:23:00 GMT

I'm all about the cheap beauty products life. At one time I was a beauty product snob, but I feel like many of the drugstore brands have really upped their makeup game in the last couple years!

I get asked a lot what my secret is to buying makeup and other beauty products on a budget.

Here's my beauty secret... most of my makeup comes from the local Walmart!

In college, I would buy quite a few higher end makeup products and basically flush money down the toilet.

Now, my beauty routine looks a little different, because I have found some great drugstore dupes for my favorite high end products!

Related Content: My Beauty Hacks Your Wallet Will Love

MY FAVORITE CHEAP BEAUTY PRODUCTS

MAYBELLINE GEL EYELINER

I started using this eye liner in college and I fell in love with it right away.

I'm kind of a nerd and I watch a lot of YouTube makeup videos, and so many of the big makeup YouTubers say this is their favorite eye liner!

It's comparable to the Mac gel liner.

COVERGIRL KAT EYE MASCARA

Over the years I've used a lot of different mascara's, but this is my current favorite!

This mascara is extremely inexpensive and does the job just as good as a high end mascara.

I almost NEVER buy high end mascara. For me, it's a waste of money.

E.L.F CAMO CONCEALER

This is a very full coverage concealer.

If you have under eye circles or just like the full coverage look, this is for you!

It's a great dupe for the Tarte Shape Tape concealer, a higher-end favorite of mine!

If you have dry skin I'd opt for the Maybelline Fit Me Concealer below.

MAYBELLINE FIT ME CONCEALER

I use this concealer in the summer because it's not as full coverage as the e.l.f. concealer and is a little more breathable.

It's sheer and lightweight, but stays all day.

This is a product I almost always have in my makeup bag!

I use the shade Medium Sand for reference.

PHSYICIANS FORMULA BUTTER BRONZER

I'm not going to lie I like this bronzer BETTER than the Stila Hoola bronzer, and it's a fraction of the price.

This bronzer smells DELICIOUS.

I've been using this bronzer for about a year now and it's a staple in my beauty routine!

Wet n Wild MegaGlow Highlighting Powder

If you're looking for an inexpensive highlighter that's good quality, this is one of my favorites!

It's pretty similar to my Becca highlighting powder, except that it's only $5!

I've never been much of a Wet n Wild gal, but this product is one of my favs!

MAYBELLINE FIT ME FOUNDATION

I use this foundation during the winter when my skin is more dry.

If I do use it during the summer, I mix it with a primer or another foundation so that it stays on my face all day (I'm very oily).

I actually used this foundation on the day of my wedding (in December).

This is another product I've used for years and almost always have on hand!

RIMMEL STAY MATTE

If you're a full coverage type of girl, this is for your sister.

This foundation is not moving. It stays intact all day!

I love wearing this when I have a long day or an event that I need lasting coverage for.

For everyday, I will mix this with the Maybelline Fit Me foundation above just to make it a little more breathable.

It works best if you blend it out with a beauty blender!

Note: if you have really dry skin I would NOT recommend this.

LOREAL MAGIC LUMI LIGHT INFUSING PRIMER

I like to use a primer when I have a special event or I mix it with my foundation when I want it to last longer.

This primer is the best that I have tried from the drugstore!

It gives a really nice soft glow to the face without making you look oily or greasy!

MAYBELLINE FIT ME LOOSE POWDER

I like to powder my face with something light after applying foundation to get it to stay!

Every single day (that I put makeup on) I use this powder!

Super inexpensive and comparable in quality to the Laura Mercier translucent powder!

ROUND UP

These products I use in my daily makeup routine!

You'll notice that I don't have any eye shadows from the drug store, and that is because I do not use any from the drug store.

I bought the Jaclyn Hill palette (which is very affordable) and that is all I use!

You don't have to spend an arm and a leg to have quality makeup products.

Hope you enjoyed today's post!

7 Things You Are Doing That Are Ruining Your Finances

Fri, 27 Sep 2019 12:01:00 GMT

Are you ruining your finances without even realizing it?

There are many poor money habits many Americans blindly wander into and that ultimately leave them living paycheck to paycheck.

Don't be that person- take control of your finances and follow the principles below to experience financial freedom.

Many people want financial freedom but not many people are willing to travel down the road that will get them there.

The following 7 habits are ruining your finances!

7 HABITS RUINING YOUR FINANCES

1. Comparing Yourself to Others

Scroll through your Facebook or Instagram feed and you'll basically see a competition for who can own the most, accomplish the most, or have the most followers.

A lot of the time, if they are being honest with themselves , the reason people go into debt is to impress other people with money they don't have.

With all due respect, mind your own business.

People who constantly compare themselves to others easily fall into the trap of debt, because debt allows us to live a lie.

If you learn to be content with what you have, right now, and not worry about what other people think if you drive a paid for old beater , you'll make better financial decisions.

Related Content: Is Comparison Making You Broke?

2. Making Minimum Payments

Many people have three, four, five different monthly payments they are making, yet scratch their head and wonder where all their money goes every month.

Monthly payments will devour your income.

The problem is, we've been taught that monthly payments are a way of life.

In order to change this habit, you need to look at a new way of defining affordability.

Whether or not you can afford something should not be based on what the monthly payment is, but rather what the total cash price is.

In other words, if you can pay for the entire purchase in cash RIGHT NOW, then you can afford it. If not, you can't!

Minimum payments are ruining your finances.

3. Failure to Track Your Spending

If you don't track your spending, you have no idea where your money is going every month.

You might think you have an idea, but usually your best guess is pretty far off from the truth.

Before we started budgeting faithfully, I thought I knew what was going out every month on groceries, eating out, entertainment, etc.

I was absolutely shocked when I actually started tracking what we were spending every month- it was WAY more than what I thought.

YOU NEED A BUDGET

Does the word budget scare you? It shouldn't! It sounds restricting, which is ironic- because it's actually what will bring you freedom.

To win with money, you need to know what is coming in every month and where every single dollar is going. You need a budget.

The monthly budge templates pictured below are included in my budget bundle and sold separately ! I created these for beginner budgeters who want to finally take control of their money!

Don't be afraid of budgeting. It has single handedly transformed our finances!

4. Lack of Short & Long Term Goals

Though you can wander into financial ruin, you can't wander into financial success.

Achieving financial freedom takes work and will require you to set goals bigger than what you've ever thought.

Set goals for your money (both long and short term) and break those goals down into small steps.

STUDENT LOAN DEBT EXAMPLE

When we decided that we wanted to get intense about our debt and pay off my student loans , we broke our large goal down into smaller goals.

Our overarching goal was "pay off Melanie's student loan debt in under 2 years."

We broke that goal down into a smaller goal- send at least $2k per month to my debt every month.

Then we broke that down even further. How could we send $2k per month when we were living on one income?

Well, we would have to be extremely frugal and cut all unnecessary expenses. So we set goals for our monthly spending, working extra hours, finding additional income, etc.

BREAK IT DOWN!

5. Listening to Everyone Else

Following the crowd will not lead to wealth building.

I don't know if you've heard, but there's a lot of broke people out there acting like they are rich.

If you want to build wealth, don't take advice from your broke best friend- the one with the new car and a mound of debt attached to her ankle.

Be careful who you take advice from. There are well meaning people who will give you bad financial advice like g o to college no matter what, get a loan to buy a reliable car , and credit cards are a great tool.

Once I started learning more about personal finance, I started to realize that there is a small handful of people I should be taking financial advice from.

6. Lack of Discipline

How many times have you told yourself that THIS is the month you finally get your finances in order?

It's kind of like when moms say this is the month we are finally going to get on a schedule/routine!

I get it, you can't have it all together.

Life is full of trade offs and you have to pick and choose what you are going to devote your time to.

You won't have a perfect budget every month. Unexpected expenses will come up. You have kids and the expenses multiply.

When you are disciplined with your money, these things are easier and less stressful to deal with.

Don't let your lack of discipline and motivation when it comes to your finances destroy you and your families financial future.

Make it a priority!

7. Living Above Your Means

While are economy is booming, 78% of Americans are living paycheck to paycheck. So what gives?

I'd argue that although we are richer than ever as Americans, we have been saturated in a culture that teaches us that we deserve what we want RIGHT NOW , no matter how much money we have in the bank.

Just graduated college? Buy yourself a car as a YAY ME gift to yourself.

Just got married? Better find a house just like mom and dads.

Can't stand to see everyone going on a tropical vacation BUT you? Put it on a credit card and pay later.

For goodness sake, take control of your money. Spend less than you make. Stop worrying about what everyone else has. Stop ruining your finances.

Be content with where you are RIGHT now.

If you can't do that, you'll never find true contentment, no matter how big your paycheck.

How I Made My First $1,000 Blogging [ Secrets to Make Money Blogging ]

Sat, 21 Sep 2019 20:56:00 GMT

It's hard enough to figure out how to make money blogging, but the first $1,000 you make blogging will some of the hardest earned cash of your life.

Blood. Sweat. Tears. More tears.

I vaguely remember bawling my eyes out the year I started my blog because my site crashed and I couldn't figure out how to get it back up.

My beloved husband had it running by morning. Bless his heart.

Unless you're a lucky overnight success, you'll likely have a lot of obstacles to overcome and a lot of time into your blog in the first year.

There is GOOD NEWS!

After you make your first $1,000, it becomes A LOT easier to start making money consistently from your blog.

When I say I make make money blogging, I get a lot of bewildered looks (especially from the older folks).

So YES, I make money blogging and it has a 100x better ROI than a 9-5 job for me.

That being said, I want to share part of my journey with you so you can learn from my mistakes but also figure out if what worked for me could possibly work for you!

This is a little bit out of my comfort zone because I'm being really transparent and giving you my "secrets of success" , but I want you to succeed.

I truly believe there is room for everyone in the online business world! The more the merrier! :)

HOW I MADE MY FIRST $1,000 BLOGGING

There are SO MANY ways to make money blogging. The key is to find what has worked for the most successful bloggers, try it out yourself, and find what works for you.

My blogging journey has been marked by many failures, but I want to share what has really worked well for me!

⭐️Read: The Top 4 Ways Successful Bloggers Make Money

1. BECOMING LASER FOCUSED ON PINTEREST.

If you've done any research, you know that Pinterest is your golden ticket to bucket loads of traffic to your site.

I tried to fight it at first because investing in your Pinterest power isn't cheap. So I waited, and waited.

I tried manually pinning around the clock and I kid you not was so tired and stressed out about it my hair started falling out.

Finally, I decided to bite the bullet and try Tailwind , a service that allows you to schedule your pins to Pinterest weeks out in advance and gives you in depth analytics on how your pins/posts are doing!

In just one month, my traffic went from nothing to 20,000 pageviews and has gone up at a rapid pace ever since!

Here's a picture to show the surge in traffic after just ONE month of using Tailwind as a VERY beginner.

Sometimes you have to spend money to make money, y'all.

Tailwind is t he bees knees. The cat's meow.

Through my link you can get a free month of Tailwind to try it out yourself if you're curious or have been toying around with the idea of investing in it!

⭐️Read: How to Flood Traffic to Your Blog With One Trick

2. BEING CONSISTENT WITH POSTS.

Posting consistent, quality content keeps people coming back for more.

Unfortunately, consistently posting is easier said than done, because most beginner bloggers have a job, family, and life!

There's a sick kid, a house that's being neglected because of time spent blogging, a husband that's digging from the bottom of a dirty laundry basket.

So then the blog would take a back seat and I would only post when I had some free time, which is... never.

Consequently, I would end up writing blog posts at midnight, when my tank was long past empty and my posts reflected that.

My husband and I decided to divide and conquer. He took on more household tasks and watches our son for an hour or two when I need to write new content so that I can produce consistent, quality content.

This seemed to help my stats and keep new visitors returning to read more!

3. I CREATED MY OWN PRODUCT.

I spent a LONG time THINKING about creating my own product and that is my only regret, that instead of thinking I started doing a lot earlier.

Once I created my own digital product, specifically, my Budget Bundle , my sales really took off.

Creating your own product is great for a few reasons:

Additionally, you can have an affiliate program for your product, incentivizing others to market your product, which means your reach will extend even further!

SendOwl is a great service for managing the delivery of digital products and you can also manage your affiliate program with SendOwl!

I HIGHLY recommend creating multiple products your first year blogging.

4. FIND A WAY TO MAKE MONEY WHILE YOU SLEEP.

If you're a busy mama like me, you know that you don't have hours on end to spend on your blog every single day! When I first started blogging, I had more spare time on my hands to work on it. Now, I have a young child that requires my care 24/7.

I knew I needed to change my strategy, because I couldn't keep going the way I was forever. This is where affiliate marketing comes into the picture!

[et_bloom_inline optin_id="optin_3"]

I HONED IN ON AFFILIATE MARKETING.

Simply put, affiliate marketing is a way to earn income by promoting a product or service and in exchange receiving a commission.

Second to creating my own product, focusing on affiliate marketing has been profitable for me.

However, when I first started, I did it all wrong. I would say yes to everything and anyone who approached me about promoting their product- which was NOT the right thing to do.

Once I became very picky about what I promoted and only focused on a few products/services I truly believe in (and personally USE), my affiliate marketing income went up.

>> Click here for 11 high paying affiliate marketing programs that I recommend (and personally use) <<<

I make most of my affiliate income through Bluehost , the hosting service I use for my blog, so it's not even related to money management, and that's okay!

If you're lost at where to start with affiliate marketing, don't worry, I was too! I took an online course from a blogger who earns over $50k per month from affiliate marketing and implemented what I learned immediately! Soon after, my affiliate marketing income skyrocketed! I'd highly recommend her course !

⭐️Read: The 10 Best Affiliate Marketing Programs for New Bloggers

5. OFFERING VALUABLE OPT IN INCENTIVES.

What's in it for me? That is the question that every viewer is going to ask themselves when deciding whether to click on your post, pin, or subscribe to your email list.

Once I started offering valuable opt-in incentives and learning more about my audience, I saw my email list subscribers climb dramatically.

The key is to give away a GREAT product for free, like a product that you think you should be selling because of all the work you put into it.

Then, make something EVEN BETTER and market it to those who got your freebie!

When you offer and deliver an incredible free product, your audience will trust that anything they purchase from you will be great quality and valuable to them.

6. UPPING MY EMAIL MARKETING GAME.

Email marketing has never been my strong suite if I'm being honest. I hate sending emails because I feel like I'm bothering people and being spammy!

I've had to realize that if people sign up for my email list, they WANT to hear from me, and if they don't, they can unsubscribe!

If I'm being honest, it's hard dealing with "followers" and "subscribers" because it's hard not to take criticism or when people unfollow you personally .

Once I got past that, I decided that I needed to upgrade from Mailchimp (the free email service provider I was using), and switch to Convertkit .

I BOUGHT CONVERTKIT.

I spent countless hours trying to sort, segment, and figure out how to set up an opt-in incentive with MailChimp. After much frustration, I finally decided to switch to Convertkit , and I watched my list grow the fastest it ever had.

You can see my growth from when I first started with Convertkit and after one year of using Convertkit.

My subscribers grew by over 4k, and part of that time I wasn't super active on my blog!

Here's what I love about Convertkit:

You can try it free up to 500 subscribers through my link, or do a free 30 day trial of the paid plans!

It's user friendly and worth every. single. penny.

7. I FOCUSED ON VALUE.

Once I started focusing on what my audience wanted from me and not necessarily what I wanted to give them, I started to make money!

What could I create that would bring value to the life of my audience?

This proved to be harder than I thought to figure out and it took quite a bit of trial and error.

Some of my opt-ins flopped. A few of my products hardly anyone bought.

But, I kept going. I kept producing.

Once a product takes off or users respond well to an opt-in, you can pin point what is valuable to your audience.

This takes patience and a willingness to fail a few times before getting it right!

THE BEST WAY TO MAKE MONEY BLOGGING

So now you're wondering, well what's the best way to make money blogging?

The truth is that there really isn't any "right" answer. It will depend on your audience, your personality, writing style, and creativity.

For me, I'm not a very sales-y person.I promote a few products I believe in, but it's still hard for me to ask people to use my links!

Yes, I'm running a business that I pour a lot of time and effort into, but for some reason I still feel guilty! It's easier for me to promote my own products!

There isn't a magic formula, but I learned a lot by reading about other bloggers journey's and taking their advice!

HOW TO START BLOGGING

If you are interested in blogging, I so so encourage you to give it a shot . I thought about it for a long time before I started, and my only regret is not starting earlier!

Trust me, if I can do this, anyone can!

I'm the most non-techy millennial out there and I figured it out by God's good grace ;)

If you have a dream of turning your blog into a. profitable business, I'd highly recommend using Bluehost for your hosting.

Through my link you get a free domain name AND Wordpress for free when you sign up with Bluehost! Woohoo, freebies!

For a full tutorial on how to set up your first bog (in under 15 minutes), read this post (it includes pictures)!

ON A FINAL NOTE

Yes, I make money blogging, and yes, you can too!

I hope this is informative if you've always wondered how in the heck bloggers make money and encouraging to you if you're just starting (or want to start) blogging!

Blogging has been an incredible creative outlet for me and a way to share my personal finance knowledge with others.

Ultimately that is my goal- to serve others!

"But be sure to fear the LORD and serve him faithfully with all your heart; consider what great things he has done for you." 1 Samuel 12:24

How to Effectively Lower Your Electric Bill

Wed, 11 Sep 2019 20:12:00 GMT

The summer always seems to remind me I need to look for ways to lower our electric bill because every time it comes I consider homesteading and washing our clothes in the crick.

And every time my husband tells me to stop being so dramatic ;)

That being said, am I the only one whose electric bill skyrockets in the summer and tends to always be higher than I expected?!

I need help in this department, so I figured I'd do some research and let you all in on what I find out!

These are some practical tips to lower your electric bill every month!

Change Light Bulbs

While energy efficient light bulbs cost a little bit more upfront, they can save you some serious dollars over time!

I'm that spouse who rolls my eyes when my husband comes home with energy efficient light bulbs because why couldn't he just grab the 99 cent ones and call it good? !

Turns out my beloved is much smarter than I and is trying to appeal to my frugal tastes!

Switch out the most used lightbulbs in your house for LED lightbulbs and replace the rest when they burn out!

Shut The Door

I'll admit I'm one of those people who likes the window down and heat on my feet in my vehicle, but I've come to learn that doesn't work to well in a home!

When you have your AC unit or furnace running while the door is open, not only are you letting the hot or cold air escape, but you're making your run harder for a longer period of time.

If you leave the door open frequently, you might as well just drive down the highway throwing $20 bills out the window...!

Turn Off the Lights

Super simple and easy tip is to turn off the lights when you leave the house or you are not in the room.

When I was younger, I never understood the obsession adults seemed to have with turning off the lights before going anywhere... now I get it!

During the day I try to only keep one light in our house on and use natural light to keep the house bright!

Use a Programmable Thermostat

Most people have a programmable thermostat already, but in case you don't this is a must have to keep your electric bill low.

If you're constantly fidgeting with the thermostat when you leave the house, when you get home, and right before you go to bed, you're racking up your bill.

Instead, program your thermostat to do this automatically. If it's in the budget, consider investing in a smart thermostat that you can program from your phone!

Replace Air Filters

To keep your HVAC system running at maximum efficiency, replace the or clean the filters every couple months.

This will also ensure you have cleaner air circulating through your home!

Wash Clothes Using Cold Water

Instead of washing your clothes in hot or warm water, wash your clothes in cold water.

I recently started doing this after having always washed my clothes in warm water and I've seen a drop in our electric bill and an increase in the time my shower stays scalding hot (just the way I like it).

I also make sure to not do laundry unless I have a full load to wash, no need to waste!

A whopping 90% of the energy used by your washer goes to heating water!

Adjust Fridge & Freezer Temperatures

If you keep your fridge and/or freezer temperatures unnecessarily low, you can be using more energy than you need and thus have a higher electric bill than you want.

Freezers should be set to 5 degrees and refrigerators should be set to 37-40 degrees for maximum efficiency.

Another note, make sure your food is covered properly. If it isn't, it will dry out and release moisture causing your fridge to work harder than necessary!

Install Ceiling Fans

Ceiling fans keep the air circulating in your home so that your heating/cooling unit doesn't have to work as hard!

Air conditioner units are typically one of the highest energy consuming sources in a home so whatever you can do so that it doesn't have to work as hard helps!

Get an Energy Audit

With the help of your utility company, you can perform an energy audit, which is typically free!

An energy audit tells you how efficient your homes energy use is.

This might include an interview, running some tests, inspecting your home for air leaks and quality of insulation, etc. Then they will give you their best recommendations for making your home more energy efficient!

Budgeting for a Baby: Essential Financial Planning Tips

Fri, 06 Sep 2019 00:00:00 GMT

Expecting and raising children is one of life's greatest joys, as well as one of life's most humbling and rewarding experiences. Becoming new parents stretches us in ways we can't understand prior to having a new baby, allowing seemingly endless opportunities for sanctification, as well as endless opportunities for thanksgiving and praise to the Lord!

In many ways, we can't prepare for this tremendous blessing in our life. However, there are a few things we can do to prepare, not excluding having a proper baby budget.

According to to the U.S. Department of Agriculture , the average total cost of raising a child from birth to age 17 is $233,610 for the average income couple with two children.

That number will fluctuate a little depending on where you live, how much gov. assistance you get, etc., but one thing is clear- it will cost you!

While many people will ask you if you've got your nursery together, how many diapers you have, etc., one of the most important ways new moms can plan is to get their personal finances in good order.

HOW TO PROPERLY FINANCIALLY PLAN FOR A BABY

A baby is a blessing no matter your financial situation, and raising children gives us a unique opportunity to trust the Lord for His provision-- financially, physically, mentally, emotionally. He gives us what we need; when we need it.

If you find yourself unable to do any of the following steps, don't give way to fear! Pray, seeking wisdom with your finances, asking the Lord to reveal to you ways you can improve your financial situation and have more stability.

Let's go through the process of financial planning for a baby so you are prepared for whatever comes your way!

1. Fully fund an emergency fund

The first order of business is to have 6-12 months of household expenses in an emergency fund. An emergency fund is simply money that you set aside for unexpected costs.

A roof that needs to be replaced, an AC unit that breaks down, a car that needs fixing, etc.

How much you need is dependent on how stable your income is. One one hand, if you are a one income household or self employed, I'd recommend 10-12 months. On the other hand, if you are a two income household with steady jobs, 6 months is probably fine!

If you are having trouble finding ways to save money and beef up your emergency fund before baby comes, these are expenses we cut to save $13k every single year.

Download one of my free savings plans for a strategic, fun way to stay focused on your savings goal!

2. Save enough to cover your deductible / out-of-pocket max

It's no secret that medical expenses are burdensome for many people. Hopefully I'm not the only mom who goes through a decision making process before bringing my child to the doctor or E.R. because well... I'm sick of medical bills.

Medical bills are the gift that keeps on giving... once you think you're done, there's always a few stragglers!

There's probably a 99% chance that you will meet your deductible for the year once you give birth. Additionally, note that your deductible will not just be the deductible for you, it will be the family deductible.

Depending on your insurance coverage-- whether you have a high-deductible or low-deductible health insurance plan- -- you might need to save quit a bit of money. Additionally, how long your hospital stay ends up being, the type of health care you receive (hospital vs. midwife), and your zip code (rural vs. city hospital) will also factor into the final cost.

I recommend saving your out of pocket maximum- not just your deductible - in addition to your 3-6 month emergency fund for maximum financial preparedness.

Your out of pocket max refers to the amount you are responsible for above and beyond your deductible. This is typically a percentage of costs above and beyond your deductible that you are responsible for. See blow for a detailed example.

Example

EXAMPLE: Your deductible is $5,000, your out of pocket maximum is $8,000, and your coinsurance percent is 20%. If total hospital bills amount to $13,000, you'll actually be responsible to pay $6,600.

$6,400 = $5,000 deductible + [20% x $8,000 [13,000 total costs - 5,000 deductible]].

Continuing the example, if you're hospital bills are more than $13,000, you will pay more than $6,600, but only up to $8,000.

If you can't afford to save your out of pocket maximum, at least save your deductible, that's a great start!

Depending on your household income, you may qualify for financial assistance from your healthcare provider. Many offer discounts, payments plans, etc.

HSA Plans

If you have a high deductible health insurance policy, you can contribute money pre-tax to your HSA (health savings account). A health insurance plan is considered high deductible if the individual deductible is $1,600 or higher and $3,200 or higher for families.

Using an HSA is a great way to save for out of pocket medical expenses, including some of the big one-time costs.

When choosing health insurance plans, not only do you need to consider the difference in premiums for a low deductible vs. high deductible plan, but also the tax savings associated with a high-deductible plan. Depending on what tax bracket you fall into, this could be significant savings.

3. Figure out how long of maternity leave you can afford

Can you save money for maternity leave in addition to covering your deductible and funding your 3-6 month emergency fund? Analyze your income and expenses and determine how long you can go without a paycheck for, which will be dependent on how much money you have saved!

Here's how to figure out how much you need to save:

(monthly take home pay x months of maternity leave desired) / months left to save

For example, say you take home $3,500 per month but only need $2,000 of your paycheck to cover your bills. You have 8 months left before your due date and you want to take a 3 month maternity leave. To calculate how much you need to save for maternity leave:

($2,000 x 3 months) / 8 months = $750 a month you need to save

Note I used $2,000 because that is the amount needed to cover necessities, which is all you need to cover during this time.

4. Save for maternity leave

Once you figure out how much you need to save per month, it's time to get aggressive and save. You want to get this done as fast as possible; get aggressive and stick to a tight budget! Find a way to make some extra money in addition to your day job. Sell stuff, cut expenses out, pick up a few extra shifts. Keep track of your savings as you go!

5. Start budgeting for additional expenses

Now it's time to figure out how much you need to budget for your new budget category every month- BABY! You won't know the actual costs until baby is here, but you can give your best guess/estimate and adjust later

SUPPLIES

Baby expenses/supplies should be a separate line item in your monthly budget.

This is a non-exhaustive list of some things you may need:

Disposable diapers / cloth diapers
Wipes
Changing table
Diaper bag
Baby clothes
Nursing bra/clothes
Burp cloths
Diaper rash cream
White noise machine
Swaddles
Bath/tub
Pacifiers
Thermometer
High chair (not needed immediately)

Hopefully you'll get many of these items gifted to you or second hand. It's likely that the biggest costs you'll have on a monthly basis are diapers and wipes.

BIG-TICKET ITEMS

If this is your first baby, you may have a few of the big-ticket items purchased for you and given to you at your baby shower. The following baby items can run on the expensive side, and it is a good idea to save up for them sooner rather than later:

Infant car seat
Baby monitor
Quality crib
Durable stroller
Breast pump*
Rocking chair
Baby carrier (depending on quality)

* Your insurance provider is required under the Affordable Care Act to cover the cost of a breast pump. However, some require a prescription from your provider in order to take advantage of this benefit. Additionally, every insurance company has different stipulations, so be sure to go to their website and read before purchasing a new pump!

Having had 3 kids in 3 years, I've learned to focus on value over price. Obviously, we all have a maximum budget we can spend even if we want to buy the best value, it might not be an option with our budget. I aim to make my big-ticket items one-time purchases.

I've purchased items on the cheap end, just to have to replace them after a year because they wore out so fast. If it's in the budget, it's worth it to buy the higher quality, more expensive baby gear.

CHILDCARE

Daycare is one of the major expenses you'll have to budget for if you plan on returning to work after having your baby. Be sure to include this in your newly updated budget!

Also evaluate how much you'll actually be taking home and making per hour after paying for childcare costs. According to Baby Center , while costs vary widely depending on location, type of care, etc., you can expect costs to be on average $1,000-$1,200 per month.

CHECKUPS

Do you need to budget separately for routine checkups and/or other medical costs?

Since we have a high deductible HSA plan, we pay anywhere from $200-$300 per doctor visit. We contribute to our HSA every month to make sure this is covered!

INSURANCE PREMIUMS

Chances are your insurance premiums are going to go up if you're a first-time parent. This is a great time to look into all your options for insurance and re-evaluate.

You may want to consider changing plans (a child is a qualifying event meaning you can change your plan without waiting for open enrollment).

Would it work best for your entire family to be on one plan? What if the baby and your spouse are on their own?

The most important things to consider are your deductible and your premiums. Sometimes one plan might seem better than another, but the premiums are so high that you pay more in premiums than the deductible of the other option.

Confusing, I know! My point is take time to look into your insurance options!

6. Have regular budget checkups

Keep track of your progress and do regular budget check ins to make sure you are hitting your savings goals.

I'll say this again, if you aren't on a budget now, you need to be.

I highly recommend having a written monthly budget.

If you don't write it out, chances are you won't ever look at it, stick to it, or track it.

7. Relax

Talking about money can be extremely anxiety inducing, especially if you're looking at my steps outlined above thinking there's no way I can do that.

I would encourage you to relax and know that no matter what, it will work out! There's help available if you are struggling financially and my steps outlined above aren't meant to induce anxiety but rather give you peace. Remember that!

OTHER PLANNING POINTERS

When You're in Debt

If you're in debt and working on your debt snowball, I recommend pausing your snowball until after baby is born.

Any extra money you were throwing at your debt should now instead be used to beef up your emergency fund and maternity leave savings.

You need to save up as much as you can. Once everyone is home and healthy, you can resume your debt snowball!

If you need assistance

If you know that with your income you will not be able to cover your deductible, talk to your hospital about getting financial assistance.

Most hospitals and medical centers offer a discount or will reduce your bill if you can show proof of income/hardship.

Or, if you haven't made good financial choices up to this point and have a higher income but no savings, you might quality for an interest-free payment plan.

Cost savings on baby supplies

There are many ways to save money on baby supplies.

Here are some quick tips to save on baby supplies:

Sign up for free formula samples. If you're formula feeding, sign up for free samples from all the formula companies you can! This way when trying out different formulas, you don't have to buy a whole can and risk wasting it.
Create a baby registry on Amazon for 20% off. For a certain period of time, if you buy on Amazon, you'll get 20% off everything on your registry. I loaded my registry with things so that I would get the 20% discount.
Try different diapers and formulas until you find a generic brand that works. While the first store brand you try might not work great, keep trying! I've found that Sam's Club and Costco's Kirkland diapers are great quality. Check their websites often to find the best deals on diapers.
Make your own baby food. Instead of buying a jar at the store, buy fruit/veggies and blend it yourself!
Search facebook marketplace for deals on gently used baby items. This is a great option if you live in or near a big city, because it increases the likelihood you'll find a high quality, high-dollar item that is gently used at a steep discount!
If you're a regular thrift store junkie, keep an eye out for baby supplies. Many times, families that are coming out of the baby stage will donate a big chunk of it just to get it out of their storage. This is an easy way to save a lot of money; you can often get these items at half the cost of brand new.

Keep in mind that baby's first year is relatively inexpensive compared to the total cost of raising a child.

Staying home after baby

In deciding whether to stay home or not after baby, follow this step by step process to help you analyze if you're able to live on one income. When our son was about 9 months old and we found out we were pregnant with our second child, we decided that we wanted me to stay home. So my husband and I sat down together to make a mock budget. If you want to stay home but you're not sure if you can do it, you need to create a budget . It's very important that you live on a budget and both you and your spouse are committed to sticking to it!

Most Importantly...

It's great to financially plan for a baby, but don't let the stress take away from the joy of being an expectant mother! Yes, babies can be expensive and that can cause stress. But as someone who has stressed over the cost of having children, I wish I had spent less time worrying and trusted the Lord's providence.

Instead of seeing a child as a financial burden, pray that the Lord would give you a biblical perspective on children. They are a blessing and an inheritance according to Scripture, and so we should rejoice anytime He blesses us with a child!

How to Have Fun While Paying Off Debt!

Sat, 31 Aug 2019 17:47:00 GMT

A huge misconception is that you can't have fun while paying off debt.

What I'm not going to tell you is that getting out of debt really isn't that hard and you don't have to make any sacrifices.

The gospel truth is that if you want to get out of debt, you're going to have to work for it. Hard.

That being said, it doesn't mean you have to eat top ramen 3x a day and go to bed at 7pm so you're not tempted to spend any money.

While we were paying off debt , we still wanted to be able to enjoy life, and I truly believe that if you learn to enjoy life at EVERY stage, you'll be a lot happier in the long run.

Even while paying off debt, I believe it is absolutely essential that you have a category for fun/entertainment.

It shouldn't be a large amount, but you should have some. Otherwise you'll deprive yourself and be so tempted to indulge that you'll blow the budget.

HOW TO HAVE FUN WHILE PAYING OFF DEBT

START YOUR DEBT SNOWBALL

GET A LIBRARY CARD

Ok, I feel super nerdy, but I'm freaking obsessed with the library.

In all honesty, I get a warm, fuzzy feeling when we pull into the parking lot and I know i'm about to frolic the aisles of books.

You get the picture here. The library is awesome because you can check out A LOT of books at a time and don't have to pay a dime!

BECOME A FOODIE

Foodie is a valid skill for a resume... who's with me?

In all seriousness, get creative with your meals!

Don't do the same thing all the time. Spend some time trying new recipes and experimenting in the kitchen!

Here's one of my favorite cookbooks that has easy and interesting recipes!

I've definitely gone way out of my comfort zone in the kitchen in the last year, because... why not?

I'm proud to say there's only been a handful of times that my husband has given a meal a rating lower than 5.

For someone who at one time HATED cooking, that's a win.

Related Content:

HOST A GAME NIGHT

Instead of going out to the bars and paying $12 for a couple drops of alcohol and same ice cubes , stay home and have a game night with homemade drinks!

Play cards and have friends over after you put the kids to bed!

When we first got married, going out with friends to bars sucked up a lot of money. It was nothing to drop $500 in one weekend eating out and going out at night.

Once you start telling your money where to go instead of wondering where it went, you'll be amazed at how it suddenly feels like you got a raise!

OPT OUTSIDE

Whether it be bike riding, hiking, fishing, or whatever else, have an outdoor adventure that requires minimal cost!

We love to go for walks with our little guy!

Explore your own area or take a little drive for the day and find out what your area has to offer!

VOLUNTEER

A great way to spend your free time is volunteering. No cost and you get to help others!

Ask around at your church, community center, senior center, local shelters/soup kitchens, etc.

There is always somewhere to help, you just have to be willing to do it!

HAVE A ROMANTIC DINNER IN

This has been our thing as of late... not because we're paying off debt but because well... a one year old.

We'd love to have a babysitter every week, but it's hard to come by! So instead, we've opted for date night in, and saved some serious cash for doing so!

Throw the extra $50 at your debt (or more) instead of going out to eat.

When we were paying off debt, we rarely ate out.

Groceries/dining out were categories we seriously slimmed down once we got on a budget.

ORGANIZE YOUR HOME

Get some tips from Marie Kondo and get your house in order. Less is more.

Organizing is a big job! I'm in the process of organizing our entire house room by room, and it's a full time task! And I'm not even paid for it!

It'd probably be a lot easier if I didn't have a child following me around undo-ing all the organizing I just did... but hey. I do the best I can. A for effort!

HAVE BONFIRES

A bonfire is a great idea for the whole family to have fun for free or extremely cheap.

We got a cheap fire pit from Amazon for our back patio and we love sitting outside by the fire!

Frugal family fun at it's finest. All you need is some hotdogs and marshmallows and you're all set.

SELL STUFF

Start digging around your home for things to sell and earn some extra cash to put towards your debt!

Sell old clothes, furniture, toys... your kids!

I kid, I kid. No pun intended.

You can post items for sale on Craigslist, local Facebook swap groups, selling apps like Mercari and Wish, etc.

START A BLOG

Blogging about your debt payoff journey is not only a great way to stay motivated and inspire others, but also will allow you to earn some extra cash!

The best part is starting a blog has an extremely low start up cost and takes less than fifteen minutes to set up.

Through my link , you can get website hosting and Wordpress for $3.95/month as long as you buy at least 36 months of hosting!

That's the cost of one latte a month.

I think that everyone who is on a financial journey should consider blogging! I'm so glad I decided to stop caring what everyone else would think and take the plunge myself.

The best part is you can inspire others to get out of debt and pursue financial peace. You can give them hope!

I have a quick and easy step by step tutorial with pictures on how to set up your blog and start sharing your knowledge with others.

THE SECRET TO HAVE FUN WHILE PAYING OFF DEBT

Now that i've listed some cheap or free ideas for you to have fun while paying off debt, I want to share a secret with you!

The BEST way to ensure you can still live on your debt free journey is to have a written, monthly budget.

Tricky, I know.

I say this in almost every single one of my posts, but that's because it's so important y'all.

You can get a free budget template sent right your inbox by subscribing below! Plus, you'll be the first to know every time I have a new post!

A budget is NOT about limiting yourself. It's about taking control of your money so you CAN live the life you want.

While you're getting out of debt, you definitely still want a bare bones budget, but it needs to have a fun money category!

11 Meal Planning Resources That Will Make Your Life Easier

Tue, 27 Aug 2019 01:35:00 GMT

Whether it's back to school finding a routine, busy jobs, or life in general that makes meal planning tough, I want to ease the stress and offer some of my favorite meal planning resources!

I've been at the point where life is so busy and stressful that 3x a week we are picking up take out otherwise it's mac and cheese or top ramen.

It's not fun, the meals are not nutritious, and you feel overwhelmed but don't have time to do anything about it.

To be quite honest, I do not enjoy cooking, nor do I ever feel like my life affords me the time.

So how do I stay motivated to meal plan (most of the time, I am human and sometimes say forget it) every week?

My secret is to make it as easy on myself as possible to meal plan, grocery shop, and prepare a nutritious meal.

Now that I'm a mom, I'm always looking for shortcuts, tools to make me more efficient, and the easiest possible way to get something done RIGHT.

Because you see, it goes beyond meal time.

I want to be efficient in my home so that I have more time for what matters most , my family, without sacrificing nutritious meals, a clean home, etc.

That being said, to help with the overwhelm of meal time, I want to share some of my absolute favorite resources.

Related Content:

THE BEST MEAL PLANNING RESOURCES

1. FREE FREEZER MEAL PLANNING SUCCESS GUIDE

I love free. Music to my ears. One of my favorite free tools is the Freezer Meal Planning Success Guide .

This super awesome freebie includes:

This free freezer meal planning guide is the perfect way to get started with freezer meals, it's jam packed with useful information and tips everyone can use!

2. FREE MEAL PLANNING PRINTABLE

I have my very own meal planning templates that I offer to my subscribers for free.

Simply subscribe below & the templates will be delivered to your inbox!

Printables are a great way to start organizing your meal plan without spending any money. Cause... I love being frugal. So I'm giving these to ya for free!

3. $5 MEAL PLAN

If you've ran with me for a while you know that I use a meal planning service called $5 meal plan that delivers my weekly menu and shopping list to my inbox every single week!

If I don't like some of the meals for the week, I can easily login to my member dashboard (pictured below) and hand select meals from a recipe bank and get the same recipe list and shopping list delivered to my inbox!

You can see that I'm able to build my own plan, save and download templates, or just visit the library to find a quick recipe!

This service has hands down reduced the cost and time spent meal planning!

I wrote a post reviewing this meal planning service if you want to know more.

4. INTENTIONAL BITES PLANNER

If you're looking to take control of your health and make meals that taste delicious, the Intentional Bites Meal Planner is designed to assist you in finding what fuels your body best.

The Intentional Bites Planner is here to assist and guide you on your journey to finding the right fuel and food for your body.

5. FOIL PANS FOR FREEZER MEALS

Foil pans are amazing. I've officially entered into mom world, because when these arrive it's the highlight of my day!

I use these foil pans to make my freezer meals. No dishes = less cleanup time for mom!

I always order the foil pans pictured above and keep a stack in my pantry so whenever I decide to double a recipe I can quick grab a pan, pour in the ingredients, and freeze!

6. MEAL PLANNING DRY ERASE BOARD

Using a meal planning dry erase board is an awesome way to get the whole family involved with dinnertime.

If a child/your spouse uses the last of something, have them write it on the grocery list section.

Keep the dinner menu up in site for everyone so that all members of the household know what you're having what night, and that eating out is NOT on the menu.

7. FREEZER CUBES

I'm slightly obsessed with freezer meals. My motto is you can freeze anything. Bread, cheese, yogurt, butter, bananas, sliced fruit. You name it, I freeze it.

I do this because I like to have lots of ingredients on hand so that it's easier for me to shelf cook, meaning I make meals based on what I have on hand.

To keep things organized, a freezer cube works wonders. It also makes it easier to freeze liquids (think soups) because it stays flat when you freeze it.

It's not very big, so it will fit in just about any freezer.

8. 40 PIECE FOOD STORAGE CONTAINERS WITH CHALK LABELS

Organization will help you tremendously with meal planning. Using food storage containers makes it easier to take inventory, keep your food organized by type, and it creates more space so you can buy in bulk.

ORGANIZATION is the name of the game, friends. I know, I fought it too. Don't. Succumb to the pressures.

The containers pictured below are available for Amazon Prime and work fantastic!

If your food is disorganized and messy, meal planning and cooking will feel like more of a burden than a blessing!

Keep it organized, you'll be more likely to make meals!

9. A WRITTEN MONTHLY BUDGET

Y'all knew I was going to have this one in here. If you aren't ballin on a budget, your meals might look good but your bank account won't.

One of the ways to take stress out of meal time is to reduce your spending on groceries!

Sticking to a written monthly budget gives you peace and allows you to spend without guilt.

Pictured above are some of the pages from my monthly budget bundle , which includes 4 different styles of monthly budget templates as well as a meal plan printable!

Living on a budget isn't about limiting yourself, it's about being responsible with your money so that you ultimately win with your money!

10. GROCERY BUDGET MAKEOVER ONLINE COURSE

Maybe you’ve tried meal planning, but then quickly realized it was taking hours of extra effort.

I mean, you have to research and choose recipes, inventory what you have in the pantry and fridge, make sure everything you have is still fresh, check what’s on sale, revise your recipe choices, make long and specific lists for each store – and that’s before you even leave the house!

The creator of this course , Erin Chase from $5 Dinners, cut her grocery bill in half using a combination of strategic grocery shopping, meal planning & couponing methods .

This course will help you get your grocery budget AND list in order.

There is a free and paid version of the course , so whether you have money to spend or not you can learn something from her!

The Grocery Budget Makeover is a total spending overhaul that will help you stop overspending, stop wasting money, and forever change your mindset and strategy when it comes to grocery shopping .

11. ELECTRIC PRESSURE COOKING 101

If you're looking to utilize your EPC more than you currently do, or if yours is still sitting in the box, this course will be your life saver!

The Electric Pressure Cooking 101 Course will teach you to gain the knowledge and confidence to pressure cook anything!

In this course , you'll learn/get the following:

This is a great course for efficient meal planning and preparation, because the EPC is designed to save you time!

NEXT STEPS

Do you have trouble keeping your grocery spending under control, or your spending in general? Are you aware of how much money is coming in and out of your bank account every month? There was a time when we did not, and our life was chaos! Sign up for my free Budgeting Bootcamp email course!

The Top 4 Ways Successful Bloggers Make Money

Thu, 22 Aug 2019 01:00:00 GMT

Are you interested in learning how to successfully blog for money? I'm about to dish the top ways successful bloggers make money.

I know what you're thinking, how in the heck do bloggers make money?

The simple answer is... there are endless possibilities!

Initially I thought that my niche was oversaturated and there was not enough room for me.

I decided to put myself out there anyway and start blogging, and I'm so glad I made that leap!

Never in a million years did I think I'd be making a part time income!

I don't want to be too blunt, but if you're thinking about starting a blog, FREAKING DO IT. Seriously.

There will always be an audience who loves your unique voice and message.

*steps down from soap box*

Okay, back to blogging. Here's how you can make some extra, part-time, or full-time income blogging!

Blogging hacks/tutorials:

TOP 4 WAYS TO BLOG FOR MONEY

1. Display Advertising

Simply put, a display ad is a code you embed into your site that will show visitors an ad, and if they click through you earn a small commission.

Google Adsense is one of the most popular ad networks for new bloggers. Anyone can join and it's easy to use!

Once you have more traffic coming to your blog, you might qualify to join MediaVine ad network.

The benefit of using ads to make money is that it's very easy to do. Starting out, it can be one of the easiest ways to earn a little income (but there's a better way... I promise).

The downside of using ads is that they deter visitors from coming to your site, make your site slower, and you have to have a lot of traffic coming to your site to make any real money.

I do not recommend using display ads as the main focus for monetizing your site.

If you use ads, I recommend using them sparingly!

Lease Ad Space

Leasing ad space on your site involves a company paying you to place their ad on a specific area of your site.

This requires a ton of traffic to make any real money.

I would not recommend using this monetization strategy until far, far down the road.

Write Product Reviews

Similar to sponsored content, a company may offer to give you one of their products for free in exchange for you writing a review on their product.

Once again, this is not a great monetization strategy (unless there's a certain product you really want).

While it's a nice idea, you want to focus on producing a cash flow from your blog, not just getting free stuff.

2. Create Your Own Product

Printables

I make about half of my blog income from selling my own digital products, mainly printables.

I design most of my Printables in PowerPoint, and use fancy fonts and unique colors to make them pretty!

To deliver the products to my audience, I monetize these mainly through my email list. I use ConvertKit to set up automatic emails to subscribers.

Online Course

Creating an online course has a huge potential for revenue , and the best part is all you have to do is create the course and then you can make money while you sleep.

A favorite course platform amongst the best bloggers is Teachable .

eBook

Everyone has knowledge to share, and an ebook is the perfect product to begin monetizing your knowledge.

You can create an eBook using a free software such as Canva, PowerPoint, Word, etc., and sell it online.

Once you create an eBook or printable, you can use SendOwl to deliver your products to your users and manage your affiliate program related to your product or service.

Alternatively, you can offer a free eBook in exchange for emails!

Using ConvertKit , you can easily deliver the eBook to subscribers and then set up an email sequence to offer those subscribers your paid products (the upgrade)!

Photos

Selling stock photography requires some initial start up fees, but this niche has huge revenue potential.

I currently use IvoryMix for my stock photos (the ones you see on my pins and post images), and I pay a pretty penny for my photos.

Consider offering a stock photo service if you're in the photography niche or have an interest in photography!

Membership Site

A membership site involves you offering a service (content) in exchange for a periodic or one-time fee.

Creating a membership site is a six step process:

A membership site could include videos, tutorials, printables, photos, classes, or literally anything you can think of!

3. Affiliate Marketing

Aside from digital products, the other half of my blog income comes from affiliate marketing.

I did everything wrong when I first starting affiliate marketing. Then, I took the course Making Sense of Affiliate Marketing , and within weeks I was doubling my affiliate income.

Now, half my income comes from affiliate marketing.

I've created a list of the top 11 high paying affiliate programs for new bloggers.

Subscribe below and get your free copy and start earning affiliate income!

4. Services

Virtual Assistant

One of the fastest growing work-from-home jobs is virtual assistants for online entrepreneurs.

A virtual assistant does anything from editing blog posts to answering emails.

Doing virtual work allows you to work from home , have flexible hours, and the possibilities are endless!

Related Content: 10 Flexible Work From Home Jobs

Freelance Writer

Freelance writing is one of the easiest and simplest ways to start making money as a new blogger.

One great benefit of freelance writing is that you are building your writing skills for your own site and getting paid to do it!

The downside of freelance writing is that it takes a lot of time (creating a portfolio, pitching to bloggers, writing content), and as a new blogger you need to savor every extra minute you have to making YOUR site and content better.

While this is a good way to earn some extra cash, don't let it take up a lot of your time.

HOW TO SET UP YOUR BLOG IN UNDER 15 MINUTES (IF YOU HAVEN'T ALREADY)

Now that you know the different ways to make money blogging (and my humble opinion on the best ways), it's time to get your site running ! Yay!

1. CHOOSE YOUR DOMAIN

A domain name is the URL of your site, my domain name is liverichlyspendsimply.com.

Keep in mind when you sign up for hosting you don't need to decide on a domain name right away, so take your time!

Here are a few quick tips for you when deciding on your domain name!

If you have one in mind, great! If not, think about if for a while.

2. BUY HOSTING & INSTALL WORDPRESS FREE

You will need site hosting and a blog platform to get your blog up and running. If you use Bluehost , you will get your platform (Wordpress) AND domain name for free!

Bluehost is the best choice (and top choice amongst bloggers) because of it's unrivaled customer service, plethora of resources/tips, and low price.

With Bluehost, the actual hosting is the only upfront cost there is to starting a blog, and even then, through my link it's only $3.95 per month!

That's literally the cost of one latte.

You can start a money making blog and earn thousands for the cost of a latte.

Here's how to do it step by step!

1. GET STARTED

First, head over to Bluehost if you haven't already. Your screen should look like the screenshot below!

Click the green "Get Started" button , cause you're ready to start a money making blog!

2. PICK A BLUEHOST PLAN

More than likely the basic hosting plan is all you'll need so go ahead and select that plan.

Remember, if for some reason you need to change this, you can always upgrade later.

3. REGISTER YOUR DOMAIN

Go ahead and register your domain name (and make sure it's available).

If you aren't positive on your name, that's ok! A pop up box will show up after a few seconds of viewing the page that prompts you to register later.

4. CREATE YOUR ACCOUNT

The next screen will ask for your basic account information to get your Bluehost profile set up.

This is where you set up your credentials for Bluehost.

Fill those in and move onto picking your hosting package!

5. CHOOSE A BLUEHOST HOSTING PACKAGE & LENGTH

To get the best possible deal, select the 36 month plan for $3.95/month (due up front). This comes to $142.20 for three years of blog hosting!

It's hard to think of any other business that has that low of a start up cost.

6. SET UP PASSWORD & LOGIN

This is a simple step, just be sure to save your password either digitally or write it down.

7. PICK A THEME

Using a free theme (at first) is perfectly fine if you're a beginner blogger. Go ahead and select a theme, you can always change it later.

8. INSTALL WORDPRESS ON BLUEHOST

You're almost done! Get ready to live your blogging dreams out and blog your little heart out :)

Once you've selected a theme, you can start building your site exactly how you want it.

Just click " start building!"

Next, you'll be prompted to select business or personal.

Choose the applicable option.

Ta-da! You have your Bluehost hosting set up and your Wordpress dashboard is pictured below!

Now you can use the panel on the left to write posts, set up your sidebar, and customize your theme!

I'd recommend having at least 10 posts ready to be published before you make your site live.

Side note: your site will be in demo mode until you make it live, which is the next step!

9. START YOUR BLOG FOR MONEY

Once you are ready to make you site live, go ahead and finish the process!

START A BLOG FOR MONEY

There are limitless ways to make money blogging.

The online world is growing at a fast pace, and I truly believe there is room for everyone.

If you've been on the fence about blogging or you aren't sure if it's right for you, i'd submit to you, what do you have to lose?

That was my motto when I first started a blog for money!

Start a blog for fun. Do it for a creative outlet. Start a blog for money.

Whatever the reason, I promise you can make your own online masterpiece!

9 Important Sinking Funds You Need in Your Budget

Sat, 17 Aug 2019 17:04:00 GMT

Do you get stressed because you always seem to forget about a bill or expense and then it hits your checkbook like a brick?

I'd like to share 9 important sinking funds you need in your budget to properly plan for all your expenses.

A sinking fund is a strategic way to save for an expense or multiple expenses over time by setting aside money every month.

Although this is a simple concept, not many Americans seem to be practicing it considering the average American saves less than five percent of their income!

A sinking fund is a tool you need in your budgeting toolbox!

A SINKING FUND IS AN INPUT TO YOUR BUDGET

It's pointless to set aside money every month if you're not tracking where it's going, how much you have left, and making a plan for your hard earned cash.

Before you start setting up sinking funds, you need to be on a budget.

Sinking funds are just a TOOL for your budget , not a replacement.

To get started on a monthly budget, subscribe and get access to my free monthly budget template !

Because budgeting is my bread and butter, I want to share with you my plethora of knowledge and help YOU succeed financially and have PEACE.

Don't miss out on these free tools, they are designed for you!

HOW TO SET UP YOUR SINKING FUND

WHEN YOU KNOW THE AMOUNT YOU NEED

Often times you know exactly how much money you need to save by a certain date. This makes setting up your sinking fund very simple.

For expenses that I know what the exact amount due will be (or can approximate), the formula looks like this:

Total amount needed/months to budget = monthly budget amount

For example, I know that I need an oil change every three months or so, and it typically costs around $60, so if I get my oil changed 4 times a year for $60, it costs $240 total.

If I take $240/12 months, that's $20 a month I need to save in order to be able to pay for my oil change when the time comes!

UNCERTAIN AMOUNT NEEDED

If you don't know exactly how much or exactly when you'll need money for a certain category (think medical, travel, gifts, etc), use the same formula above but evaluate often.

I do a rough estimate of the amount needed, and then I adjust my monthly budgeted amount as needs arise.

For example, I have no idea when medical costs will arise (most of the time) or how much they'll end up being.

Basically, I just know it'll be expensive ... am I right?!

So if I estimate we will spend $2,000 on medical expenses every year, I should budget around $150 per month for medical costs.

This year, we got a bill for my son for $1,000 and I only had $600 in my medical savings fund. Once we got the bill, we took as much extra out of the next paycheck as we could (without sacrificing our investing), and paid for the rest using our emergency fund.

Then, we replenished our emergency fund to get it back to where it was.

The key is that we did not sacrifice our monthly investing amount.

We cut costs elsewhere, used our emergency fund, and then replenished the emergency fund the next month!

1. TRAVEL

We just returned from a week long trip to the Oregon coast, and we take several vacations like this a year while living on one income!

When you are strategic with your money and treat it well, it will treat you well.

I set aside a little bit of money every single month for our travel fund whether we have a trip planned or not.

We don't go anywhere until we have the trip fully funded and paid for in cash, this allows us to take stress free vacations that don't follow us home (on a credit card).

2. CAR MAINTENANCE/REPAIR

It's a good idea to have a sinking fund for car repairs, maintenance, and/or a car replacement if you will need a new vehicle in the foreseeable future.

We having a car sinking fund set aside for registration, regularly scheduled maintenance, and repairs.

It's a great feeling when you find out your car needs a $500 repair and you have the money set aside already!

3. HOME REPAIRS

Every home owner should have money set aside for home repairs, because it's not a matter of if something will break/need replacing, it's a matter of when.

Anyone who has bought a home knows that Murphy comes to visit when you least want him to.

Whether it's the A.C. that breaks down, roof that needs replacing, or basement that floods, it's best to be prepared instead of scratching your head wondering how you're going to pay for it.

We have money set aside for home repairs and a remodel that we are currently working on!

4. CHRISTMAS

PSA: Christmas comes at the same time every year!

Duh, right? Well research shows that Americans on average racked up $1,000 of holiday debt and and had no plans to pay it off right away.

Don't rack up a holiday hangover that will follow you until July when you finally pay off your credit card.

Instead, save money for Christmas every single month.

5. MEDICAL

Medical costs are inevitable, so be prepared for them .

Rather than being depressed when your $2k bill for a physical comes (kidding.. kinda), set aside money every month so that you have a good head start.

This is probably the biggest sinking fund expense we've had the last few years.

We pay $200-$300 every single time we go to the doctor, and we paid thousands of dollars to have our son.

While it's a tough pill to swallow paying the bill, I can be thankful that we budget and were able to write a check for birth expenses.

6. MEMBERSHIP DUES

Gym dues, magazine subscriptions, and any other membership dues should be tracked and paid for in a sinking fund.

Dues and fees are easy expenses to forget and have sneak up on you!

Make a list of all dues, fees and registrations you have due during the year and divide by 12 to figure out how much you need to save monthly for each.

It's too cumbersome to have a sinking fund for EVERY due/fee, so I'd recommend just having one fund.

7. SCHOOL FEES/REG/SUPPLIES

I don't have to budget for school expenses quite yet, but I know they add up fast and it seems like there always a field trip, extracurricular, or other expense for school related activities!

While I wasn't very aware of it at the time, I think about all the expenses my parents paid for me over the course of my school years (on top of the tuition expense for a private school), and it's got to be a good chunk of money!

Especially parents who have kids that are involved in a lot of sports, my advice is to BUDGET. BUDGET. BUDGET.

Also, if you have to sacrifice retirement savings, house savings, etc. to pay for your kids club or AAU sports, it's ok to say no. Really, it's fine.

It's important to let your kids know that if something isn't in the budget, it's not happening.

8. PET

Pets can get really expensive really fast, put them in the budget!

I've heard that a dog surgery can cost just as much as a human surgery! If that's the case, you might be out a few grand unexpectedly if your pet has health issues.

Just like you put food and medical expenses for yourself and your family in the budget, put the pets in the budget, they're part of the fam!

9. GIFTS

Another highly used sinking fund category in our budget is gifts.

Baby showers, weddings, bridal showers, birthday parties, family birthdays, anniversaries, etc. happen almost every single month!

In any given month, it's almost guaranteed we will have some sort of gift to buy.

If I budget for it, it's a lot more fun to shop for the gift, and that's the beauty of a budget.

A budget gives you PERMISSION to spend WITHOUT guilt. It sounds restricting, but really it sets you free financially.

There you have it- the 9 sinking funds you need to have financial success! Don't discount the power of sinking funds in your budget.

Melanie De Jong

The Payday Reset: How to Budget Two Paychecks Without the Overwhelm

How to Budget Two Paychecks a Month: Step-by-Step

Step 1: Create a Zero-Dollar Budget

Step 2: Assign Every Expense to a Paycheck

Consider Cash Flow

Use the Half-Payment Hack

Step 3: Plan Variable Spending

Step 4: Include Savings Goals and Sinking Fund Expenses

Step 5: Print Budget & Track

Example Bi-Weekly Budget for a One-Income Family

What if You're Living Paycheck to Paycheck?

Determine True Expenses

Make a Plan

How We Have Cut Costs When Funds are Tight

How to Budget by Paycheck (Step-by-Step Paycheck Budget Method for One-Income Families)

What is a Paycheck Budget?

Why Monthly Budgets Don’t Work on One Income

How to Budget by Paycheck (Step-by-step)

1. Get a budget template

2. Make your monthly budget

3. Split budget into paychecks

4. Write/List all Bills & Due Dates

5. Assign Bills/Expenses to Paychecks

A Simple Example

6. Budget Variable Spending

Reminder

7. Plan Savings First

How to Budget Biweekly

What Does Biweekly Pay Actually Mean?

What About a Three-Paycheck Month?

Biweekly Pay Example

What if You're Living Paycheck to Paycheck?

Break the Paycheck Cycle

Common Paycheck Budget Mistakes (And How to Avoid Them)

Frequently Asked Questions

ON A FINAL NOTE

The Ultimate Guide to Using a Budget Notebook Effectively

What is a Budget Notebook?

Benefits of Keeping a Budget Notebook

Create your own Budget Binder / Budget Notebook

Budgeting

Why Budget?

Choose a Budgeting Method ﻿

Create your Monthly Budget

Free Budget Template

Spending

Start Tracking

Saving

Debt

Financial Goals

Other Financial Documents

Organize Your Finances with a Free Budget Calendar Template

What is a Budget Calendar?

Why use a Budget Calendar?

Free Monthly Calendar + Budget Calendar Templates

How to Create a Budget Calendar

1. Paychecks

2. Bills

3. Debt

4. Savings Goals

5. Variable Expenses

6. Irregular Expenses

7. Annual Budget Calendar

Customizing Your Budget Calendar

Color Code

Digital Version

Debt Payoff: 5 Free Printable Debt Free Coloring Pages

Benefits Of Using Debt Free Charts

5 Debt Free Tracker Coloring Pages

1) Credit Cards

2) Car Loans

3) Student Loans

4) Home Mortgages

5) DIY Debt Free Coloring Pages

The Debt Snowball Method

1) List your debts in order from smallest to largest balance.

1) List your debts in order from smallest to largest balance.

2) Make minimum payments on all debts except debt with the smallest balance.

3) Pay as much extra as possible on the smallest debt.

Choose a Budgeting Method