Commit. Plan. Take action.
According to the Kaiser Family Foundation (KFF), “About a quarter (26 percent) of U.S. adults ages 18-64 say they or someone in their household had problems paying or an inability to pay medical bills in the past 12 months. Now think about these same statistics as people age. With age, health care needs and costs tend to increase. This potentially means more personal indebtedness for those with health care issues.
We all know at least one person that takes being “a penny pincher” to a whole new level. The ones that buy the cheapest toilet paper and pull the 2 sheets apart to make 2 rolls or the one that buys paper plates and tries to wash them.
I would definitely classify myself as being a penny pincher, but hopefully not to the extreme stated above! (My husband might have a different opinion of this!) From my experience, I’ve noticed that when one becomes too much of “a penny pincher,” it actually hurts your bottom line more than helps it. Here are some [Read more…]
Any time there are big changes in our lives, the financial planning aspect of things gives me a bit of anxiety. I begin to think about every penny we will need to make the new shift in our lives go off without a hitch and, guess what? Things almost never go to plan. Not exactly anyway. So, we have had to put some thought into how to prepare for big life changes headed our way.
In a few weeks’ time, I hope to be able to share some positive news with you all on the blog. There are some HUGE changes coming our way. They are also changes that will involve some financial planning and saving on our part. As you know, we recently moved into a new home. On top of that, we’ve been going through even more changes that will impact our family in a big way.
Thankfully, my husband recently got a new job. He is able to work from home with me now and his income will greatly assist with these changes. We are aiming to get a substantial amount of money saved and then looking to double up on our debt payments. Hopefully, within the year, we will have our car 100% paid for (that is the goal anyway).
Since we have started planning for this big change coming up in our lives, it got me thinking about how others prepare for big life changes. Of course, there is nothing that works for everyone but there are several common ideas and things most people do when they are prepping for something big.
Depending on what kind of change you are preparing for, the steps to get there will look different. If you are preparing to buy your first home, you will be making some financial sacrifices and also spending a great deal to get ready for that. If the changes you are making are more personal in nature, like quitting cigarettes or getting sober, your steps will look different. However, each of these tips seems to be applicable across the board.
When it comes to how to prepare for big life changes there is no “how-to” guide. You need to find what works best for you mentally, emotionally, physically, and go with that. It may not look the same as what worked for your friends or family, but if it works for you, that is all that matters.
Readers, how have you gone about preparing for big life changes? What was key for you?
With recent career changes and a few months without a second income, we have been looking at ways to improve our finances. Like many other people during the pandemic, we experienced job loss and decreased wages last year. The loss in work pushed us to move sooner and make changes. One thing we settled on doing to help improve our situation was selling back debt that is no longer serving us. Here’s how we are doing it.
You may be thinking to yourself, “There is no debt that serves you.” However, when it comes to the debt we have had to take out to further our careers, it was serving us in a way. You may remember my husband’s tool debt from his time in the shop as a mechanic. When the pandemic hit, the shop he was working for downsized, and he was one of the newest employees, so he was cut.
This put us in a position where we had to continue paying for tools that weren’t being used as well as a storage unit to keep them in. It was a major drag on our finances overall. Eventually, because we no longer had that second income, it became impossible to keep up with the monthly payments. So, we started looking at our options.
At first, we looked at selling the toolbox and some of the tools to help pay off the debt. Once again, the pandemic made this pretty impossible. No one was looking to spend thousands of dollars on a toolbox when a lot of other people were out of work too. Eventually, the account went into collections early this year as we continued to look at our options.
After discussing the issue with the company we are indebted to, they said they would be willing to buy back some of the items he had purchased and subtract the total from the amount owed. While this didn’t completely get rid of the debt we have, it did get the storage bill off our backs. It also decreased the amount we owed by $7,500 when all was said and done.
We didn’t get rid of everything either. They wouldn’t buy back used tools. So, my husband still has everything he needs in the event he wants to return to working in a shop or wants to do some side work as a mechanic. So, the security of having the tools for the job is still there.
For now, it also gets the monthly bill off our plate. Obviously, the amount in collections will still need to be paid off, but the $400+ monthly bill is not weighing on us at this very moment. We can shift our focus to paying off some other items, getting things caught up, and then settling with the collections agency later on in the year. For us, that is a win.
Readers, have you ever sold back debt like we did?
Here lately I’ve been feeling pretty burnt out. I’m burnt out on work. I am feeling burnt out with friendships and daily activities. All in all, I am really feeling the need to unplug, take a step back, and just breathe. However, I always find myself feeling guilty for taking that time off. I should be working, doing this and that. That guilt got me thinking about how burnout affects other parts of my life and how to identify when that break is needed.
Signs of burnout can be different for everyone, but there are some common symptoms that many people experience. According to Psychology Today, if you are feeling any of these things you may be experiencing burnout on some level:
Burnout is not unavoidable. In fact, there are a number of things you can do to make sure you don’t run yourself ragged (I just haven’t been doing them). Mommy Thrives is a mom blog that has covered some great ways to avoid burnout that you should try and implement in your day-to-day life. Here’s a quick list…
Like I said, great ideas, but I have not been doing any of that. I’ve been feeling a bit drained recently and I began thinking about the last time I truly took time off for myself. When you look at the list above, I ticked just about every box. Getting things done has been difficult. Some days it is hard to focus on all of the things that need to be done. It impacts my mood, my productivity, and, at times, it has an effect on our finances too.
More recently, I have had a lot of trouble sleeping, which was the biggest sign for me. Normally, I sleep pretty well and get around eight hours per night. Over the last few weeks, however, I have been waking up multiple times throughout the night. The sleep tracker on my smartwatch says I average between 30 and 50 minutes of deep sleep per night (Woah!). Now, this lack of sleep could be contributing to the rest of my symptoms, but when it comes down to it, I am burnt out. Period.
My mom always says, “The only thing you have to get done today is what you get done today.” I laugh when she says this because I think of my to-do list, which is normally about a mile long. But, really, how do you start to recover from burnout? What do you need to do to climb out of it and come back to your regular duties actually feeling refreshed?
Healthline wrote a great blog post about burnout and how you might be able to best recover if you hit that wall as I have. Some of the suggestions include things like being firm about your boundaries and leaving work at work (two things I always struggle with). The blog also talked quite a bit about being in-tune with your own personal needs. On your days off, clear out your schedule and just relax. I’ll be honest, on my days off I’m usually running around checking even more things off my to-do list.
The Mommy Thrives blog mentioned mental health days and going on a hike. Hiking is one of my favorite things to do and I have not been on a hike since August 2019 (Yikes!). When it boils down to it, I’m not taking my downtime to truly tune into my personal needs or do anything I really enjoy. Instead, I’m thinking about all the things I could be doing.
Well, thankfully, I have a supportive husband who has seen this burnout coming from a mile away. He has been pushing me to do more things I enjoy and things to help my stress levels. I have started taking two yoga classes a week (which has been amazing) and in about a month we will both be unplugging for a long weekend at the beach. We never got our honeymoon and still actually have an Airbnb gift card from our wedding two years ago, so we will get one night free. While I’ll still have a month of work to do in the midst of this burnout, it is so nice to know I have these things to look forward to, to help me re-center.
Readers, how have you been able to recover from burnout in your own life? What tips do you have?
Let’s dive right into the world of personal credit. Think of your credit score as a financial fingerprint – it’s unique to you and super important for your financial health. Whether you dream of a new home, car, or just want to keep your finances in tip-top shape, understanding your credit score is key.
A credit score is a grade that lenders use to determine how likely you are to repay a loan. This number ranges from 300 to 850; you want to aim high. A higher score opens doors to better interest rates and terms when you borrow money.
So, what goes into strengthening your credit score? Here are five aspects you want to consider:
Your credit score is like your financial passport. It impacts more than just loan approvals and interest rates. It can affect your insurance rates, your ability to rent an apartment, and sometimes even job opportunities.
You’ve got to know where you stand. You can check your credit score for free through various online services. Also, every year, you’re entitled to a free credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion. This report doesn’t include your score, but it shows the information your score is based on.
Here are some proven strategies:
There’s a lot of misinformation out there. Let’s set the record straight:
Credit cards can be a double-edged sword. Here’s how to use them wisely:
If your credit score has taken a hit, don’t despair. Here’s how to start turning things around:
Life throws curveballs, and your credit can be affected by these changes. Say you’re getting married, divorced, or even changing careers – these events can shake up your financial situation.
If you’re merging finances with a spouse, your credit habits will impact each other. In a divorce, separating joint accounts and understanding how shared debts are handled is crucial.
Career changes, whether it’s a new job or a bout of unemployment, also demand a fresh look at your budget and credit management. Staying proactive and adapting your credit strategy during these times is key to maintaining a healthy score through life’s ups and downs.
Starting from square one with your credit can seem daunting, but it’s totally doable. If you’re a young adult or new to managing credit, begin with a simple credit card designed for beginners or a small personal loan.
Another great strategy is to become an authorized user on a family member’s credit card. Just make sure they have solid credit habits! Also, consider credit-builder loans offered by some financial institutions; they’re specifically tailored for those looking to establish credit. Do your best to stay away from predatory payday loan services or ensure to read over the terms carefully before you sign an agreement. Remember, the journey to building credit is about demonstrating consistent, responsible financial behavior over time. Patience and diligence are your best friends here!
Remember, managing your credit score is a marathon, not a sprint. It takes time, patience, and consistent effort. Stay on top of your payments, use your credit wisely, and regularly check your credit report for accuracy. With the right strategy in your back pocket, you’re well on your way to maintaining or achieving a stellar credit score.
And there you have it, your personal credit demystified! Keep these tips in mind, and you’ll be navigating the credit world like a pro in no time.
My last personal update had a ton of good news and it seems like that isn’t going to stop any time soon. In fact, we have some even better news!
We paid a total of $391 on our credit cards this month (the first payment in a while). It felt so good to be getting back on top of each of our payments. We’re also happily saving up our $1,000 emergency fund. Once that is in place, we will have quite a bit more cash to snowball our debt. We are half way to our savings goal currently.
On top of that, we have a family first…
My other half and I have had two Thanksgivings together (this will be our third). However, we haven’t ever hosted Thanksgiving. Our first holiday together, we visited with his family in Tennessee, and last year we stayed home and had a meal with just the two of us. This year we will be hosting our family!
This is huge for a few reasons.
First, I am happy we have the ability to host our family this year. We aren’t scraping by so badly we can’t spare $40 for a meal. This has given me some additional optimism about our current financial situation.
Second, it is absolutely a big deal to have the family here, in our home, and cook for them and have quality time. We’ve not had the entire crew here before.
Lastly, we have a budget and we’ve managed to stick to it! Here’s how…
Like I said, we’ve managed to keep the entire meal under $40. Everything costed $36.89 to be exact. It hasn’t added any additional cost either!
We scoped out the different sales on turkeys and picked a 15-lb bird up for $4.10. The promotion required you to purchase $35 in groceries to get the $0.27 per pound price, so we just purchased our week’s worth of groceries and got the turkey at a decent price.
Everything else, we’ve picked up at Aldi. Because I had some marked down meat stored away, the “extra” cost of the Thanksgiving fixings was offset by having backup meals at home already. So, we didn’t go over our $50/week grocery budget when we got everything else either.
So, essentially, Thanksgiving isn’t going to cost us any extra this year! We are looking forward to a nice Thanksgiving with family in OUR home (without even altering our budget). How awesome is that?!
Readers, what do you have planned for Thanksgiving this year?
Unless you’re up to living dangerously and getting unpleasant surprises, knowledge is something mandatory before taking out a loan. Whether we’re talking about payday loans, installment loans or personal loans, the same rule applies. It could save you from a lot of trouble, as you can avoid taking out a loan if the risks are too high.
That being said, if you were eager to learn more about personal loans, you’ve come to the right place. We collected some information in order to tell you what you should know regarding personal loans. Without further ado, let’s get to it!
Personal loans can be secured or unsecured. The secured ones are backed by collateral, like an asset or a savings account. If you’re not able to repay it, then the lender has the right to claim your asset as payment for the loan.
Concurrently, unsecured loans are not backed by collateral, and the lender decides if you qualify based on the financial history. In case you don’t qualify, or you seek a lower interest rate, some lenders can also give you the secured loan option.
One way many people use personal loans is for debt consolidation. You may get a lower interest rate, and you also have an organizational advantage of only having one bill to pay monthly. Basically, it gathers all the bills into one, so you don’t have to stress with multiple payments.
You can indeed obtain a personal loan from a bank, and that’s probably the first place coming to your mind regardless. However, the bank is not the only place where personal loans are offered, as there are other ways to obtain one.
For instance, online lenders, consumer finance companies, credit unions, and peer-to-peer lenders can also offer you a personal loan.
During the application process, the lender will pull your credit as a part of the application process. Consequently, your credit score will slightly decrease. Whether it will increase afterward or not depends on you and how you pay off the loan.
Although a mortgage is paid off over decades, personal loans are another story. They are usually paid off in seven years or less. In a way, this could be a good thing, because you won’t get to borrow money for longer than you need. Conversely, it also means that if you are trying to borrow a huge amount of money, the payments may be too high for you to keep up with if you take this type of loan.
Knowledge is power and having the proper information upon applying for a personal loan can be a life-saver. Not only that you’ll know the multiple ways in which it can help you, but you will also be aware of the disadvantages and you can avoid them.
December is next week! How crazy is that? It seems like 2018 flew by and, while we’ve made a lot of progress this year, we are looking forward to a much better year in 2019 financially.
First, we have to push through the hustle-and-bustle of the holiday season. We have a lot of plans coming up that will likely require some strict budgeting on our parts. Both of us love giving gifts. This year, we will be finding ways to do that without spending much cash so we can continue focusing on our personal goals.
Just a month ago we were optimistic about being able to spend some money on Christmas. My other half had a new job and we were slowly starting to dig ourselves out of debt. However, the new job didn’t pan out the way we’d hoped and he has found himself temporarily unemployed again.
He almost immediately landed another gig that starts the first week of December. So, we won’t be down and out for long, but it will hinder our ability to do everything we’d planned on for Christmas. This year the folks that live out of town won’t be receiving big packages. Family and friends that live closer will be receiving handmade gifts and personal moments instead of anything too costly.
Normally we budget around $1,000 total for our families and friends for Christmas. This year, we are scaling that WAY down. Instead of sending and giving gifts, we are planning to make quite a few of our items.
First, our godchildren are coming over the second Saturday in December to bake and do crafts. This will serve as their Christmas gift (and they’ll get to leave with something cool that THEY made). The entire day will only cost us about $20.
For family and friends that are local, we are planning to make goodie boxes. You can grab cookie tins for $1 each at the Dollar Store this time of year. Then we are going to make everything else from scratch. When all is said and done, it should cost around $5 per person.
Folks that live further away will be receiving a Christmas photo and card. We have some cards leftover from last year that we will use and potentially buy a few extra if needed. The photos will be printed at mass and cost less than $10 total.
I also grabbed some yarn at Michael’s on Black Friday (10 skeins for $20). I plan to make some hats and scarves for family and friends both near and far.
At first, we were a bit stressed and bummed out when we started budgeting for Christmas. What we realized was that this will probably be one of the most fulfilling Christmas seasons of all. Not only will we be furthering our overall goal of being more financially secure, but we will also be able to hand make gifts that will be appreciated by our friends and families.
Readers, how are you handling budgeting for the holidays? Are you making any gifts?
As you know, towards the end of August we were counting the minutes until our baby arrived. Thankfully, our little one, Dahlia, arrived on August 31, 2021. She is a beautiful, healthy baby girl and she has completely changed our world.
Let us formally introduce you to Dahlia. She was born 7 lbs. 14 oz. at 8:54 p.m. on August 31. From the moment we met her, she amazed us both.
Of course, there have been plenty of ups and downs. Labor was not easy. I was technically in labor a little over 32 hours and in the hospital four days. Breastfeeding was extremely difficult and caused me a great deal of anxiety. We’ve had to address the cost of formula, find a formula that sits well with her, pacifier or no pacifier, swing or no swing, and the list of decisions and concerns goes on. But, from what I understand, that’s parenthood. We are just along for the ride!
Right now, she is a little over two months old and sleeps really well. Both of us are adjusting to our new lives as parents who work from home. Kids change your life in so many amazing ways. Of course, I went through the life-changing experience of giving birth, but we have also brought a life into this world who is so special to us both. Neither of us knew we could love anyone as much as we love our little girl. As we look to what’s next for us, she is at the center of every decision, every move we are making.
Preparing for Dahlia’s arrival was our main focus throughout 2021. We’ve been stocking up on things, saving money, and paying for medical care to get her here safely. All of our prep work paid off well. We have been prepared for just about everything that has been thrown our way since she arrived. As far as our debt freedom journey goes, it is still slow moving. However, our journey has a whole new meaning now.
Now, our debt-free journey is about providing a more financially stable environment for our child, something we both lacked growing up. It gives us a new sense of purpose and more urgency behind paying down and paying off our debts. At the beginning of the year, we will be shifting our focus to paying off large sums on our car loan. After that, we will focus the efforts on student loans and small debts. That is our plan for now. The sooner we are debt-free the sooner we are able to look at buying a home and building the life we picture for our family.
To me, this is the magic of the debt-free community. Everyone has their reasons behind their journey. Some people want to be financially free, others want to avoid hardship (because they’ve been there), and people like us want to build a positive, health environment for their families.
What is the reason you decided to pursue debt freedom?