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Our Debt Free Family

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Our Money Goals for 2022

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<p>It's the end of the year, which means many people are overspending to celebrate the holidays. The end of the year also brings about talk of New Year's resolutions and promises to live new, improved lives. I enjoy making resolutions each year and setting goals for our family to reach. It is fun to review how far we've come along and all of the things that changed throughout the year. We've already started brainstorming what money goals we want to attack in 2022.</p>::Pexels

It’s the end of the year, which means many people are overspending to celebrate the holidays. The end of the year also brings about talk of New Year’s resolutions and promises to live new, improved lives. I enjoy making resolutions each year and setting goals for our family to reach. It is fun to review how far we’ve come along and all of the things that changed throughout the year. We’ve already started brainstorming what money goals we want to attack in 2022.

What Money Goals Are Next?

When we set about deciding what financial goals we want to tackle in the new year we review what we’ve managed to accomplish over the last 12 months. This year was a slow one in terms of financial progress for us, but we made a number of upgrades in our lives. We added a new member of the family, upgraded our office equipment, and became a two-income household. Because we expanded our family and business this year, debt payoff progress was slow, but it wasn’t nonexistent. We maintained and grew in so many more amazing ways.

So, what’s in the cards for our family over the next 12 months? Here are some of the money goals we’re discussing for 2022…

  • IRA: One thing we’ve been talking about is opening retirement accounts. Both of us have worked as freelancers most of our adult life, so we haven’t had employee-funded 401K accounts or anything like that. We’d like to start contributing to IRAs and max them out next year. It will help with taxes too.
  • Savings for our child: We’ve talked about it a lot and we want to send our child to private school. To do that, we will need some saving stashed away when the time comes. We are going to do some research on education savings accounts that we can put money into for her. We will also be opening a high-yield savings account for her some time next year as well.
  • Tax account: We haven’t been organized enough in terms of keeping up with paperwork, etc. for taxes. One big money goal for next year is to set up separate accounts and have a system for electronically storing our receipts.
  • More organization: Speaking of electronically storing our receipts, we need a new system of organization altogether. Since having a baby and returning to work, things have been a bit scattered. So, the last week of the year we are going to do decluttering, organizing, and vision board creating.
  • Pay off one account: As far as our debt freedom goals go, we’d like to pay off one account next year (hopefully the car). Of course, I’ll keep you up to date on the progress on this here on the blog.

The Importance of Setting Goals

A lot of people chuckle at folks like me who set resolutions every year, but setting goals for yourself is important. It gives you something to work towards and helps you outline how you can reach your biggest dreams. For us, it will reaching debt freedom, having a home of our own, and providing a life for our family that we love. What more could you really ask for?

Readers, what money goals are you setting for yourself next year?

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Unpopular Opinion: People Spend Too Much on Babies at Christmas

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<p>I've been sharing some of my unpopular opinions on social media more recently and one that got a lot of people upset recently was about babies at Christmas time. As you know, we will have a four-month-old for Christmas this year. It is always an exciting time to be around kids during the holiday season. At the end of the day, she won't remember a single thing. We will create plenty of memories but people spend too much on babies at Christmas. That may be an unpopular opinion but it's true.</p>::Pexels

I’ve been sharing some of my unpopular opinions on social media more recently and one that got a lot of people upset recently was about babies at Christmas time. As you know, we will have a four-month-old for Christmas this year. It is always an exciting time to be around kids during the holiday season. At the end of the day, she won’t remember a single thing. We will create plenty of memories but people spend too much on babies at Christmas. That may be an unpopular opinion but it’s true.

Spending at Christmas

It is estimated that Americans will spend around $886 on Christmas presents this year. Much of that will be on gifts for kids, which is great. There is nothing better than seeing a child’s face light up while they are opening a gift on Christmas morning. However, when it comes to celebrating with your newborn, pump the brakes. People are spending way too much. There are the trendy family photos, matching pajamas, big presents, fancy outfits, and the list goes on. All of it is adorable, but it is also extremely expensive and unnecessary.

Instead, spend some money on a babysitter and get some quality time in with your spouse.  The time you get one-on-one with them will make you return to your home, and your little one, more relaxed and happier. At least, that’s how I’d spend the extra money.

Baby’s First Christmas

Numbers vary on how much families spend on their baby’s first Christmas. The average family will spend about $330 per child. This breaks down in different parts, usually many of them unnecessary. Here’s a break down…

  • Baby portraits: This can cost $100+, depending on the package you purchase. Not to mention you’ll want to buy prints, frames, etc. You’ll also likely spend a pretty penny on the outfit they wear for the photos too. Instead of spending money on this for our little one we’ll be posing her for some photos throughout the week before Christmas in different outfits sent by family.
  • Matching pajamas: It is adorable and super trendy to have matching pajamas, but spending $45 on a onesie every year at Christmas time is insane to me. If you have a bigger family, that starts to add up fast. Even a matching dog bandana was $9. We’ll give our little one new pjs, a book, and a stuffed animal every Christmas Eve but there won’t ever be any pressure to hold the matching pj tradition.
  • Toys: Many families shower their kids in various gifts every year, and that’s great. As I mentioned above, many parents will spend more than $300 on each kid. Our family has chosen to have one big gift every year and lots of smaller, useful things. This year, our little one is getting a walker/activity center, which we paid for in gift cards we had from baby presents still. Typically, we will use Christmas bonuses and money to buy her big gift every year.

In the long run, we hope there is less focus placed on how much money is spent every year and more emphasis on the experiences we have together.

Readers, how much do you think you spent on your child’s first Christmas? 

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How We’re Planning to Spend Christmas This Year

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<p>Christmas time is usually hectic. Both my husband and I are typically working to meet end-of-year goals while rushing to get things done for the holiday. However, this year, our little one has forced us to slow down a little. That's something kids tend to do, by the way (if you don't have any). Despite our usual seasonal tasks being a little thrown off, we are planning to spend Christmas with family and surrounding the newest member with love.s</p>::Pexels

Christmas time is usually hectic. Both my husband and I are typically working to meet end-of-year goals while rushing to get things done for the holiday. However, this year, our little one has forced us to slow down a little. That’s something kids tend to do, by the way (if you don’t have any). Despite our usual seasonal tasks being a little thrown off, we are planning to spend Christmas with family and surrounding the newest member with love.

A Christmas That Came Together

All in all, this Christmas has just come together. I didn’t go pick up what I needed to make dinner until the Wednesday before Christmas. That is the same day I bought my husband’s gifts. I waited until the last-minute for everything because, well, we’ve been busy soaking up time with our baby. We both returned to work full-time in November and every spare moment we have is with her.

I’m thankful we are both able to work from home and be with her daily, even if there are some hard days. As a family, things generally come together for us. This Christmas is no different. We’ll have a few great things under the tree, thoughtful presents for family, a good meal, and plenty of homemade treats. Best of all, we will be with some of the people we love the most.

Reflecting During the Holidays

The holidays always tends to be a time of reflection for me. I take a moment to think about all that I’ve accomplished throughout the year. Last Christmas, we didn’t even know that we were having a baby yet. Amazing things happened for our family in 2021. There were career moves made, we went on trips, and we received the best gift of them all: our healthy daughter.

<p>spending christmas</p>::Pexels

From a financial standpoint, we are far from where we want to be. There is no doubt about that. We still hold debt and now have a little more to pay off from the birth of our child. Our budget has gone haywire and we need to buckle down. There is time for that still. For now, we are enjoying our child’s first Christmas and reflecting on how incredibly blessed we have been this year. We are beyond rich with love in our family.

Readers, do you use the holidays as a time to reflect on your accomplishments? Share some of your wins from this year!

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How We Plan to Reach Our 2022 Goals

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<p>Everyone is talking about what their resolutions for the new year are. I spoke about our financial resolutions in a post on the blog here recently. What most people don't talk about is the dedication, motivation, and hard work it takes to accomplish each of those goals. It takes a substantial amount of planning and twice as much dedication. So, I'm sharing with you how we plan to reach our 2022 goals.</p>::Pexels

Everyone is talking about what their resolutions for the new year are. I spoke about our financial resolutions in a post on the blog here recently. What most people don’t talk about is the dedication, motivation, and hard work it takes to accomplish each of those goals. It takes a substantial amount of planning and twice as much dedication. So, I’m sharing with you how we plan to reach our 2022 goals.

What Are Our 2022 Goals?

As I mentioned in a previous post, our financial goals mostly center around getting organized. Our finances really aren’t very organized. We need to open up a tax account, a separate savings account, IRAs, and savings for our daughter’s education. At the beginning of the year, we may also be considering trading in our vehicle after we file taxes. However, we aren’t solely focused on improving our money situation. Everyone has other goals they want to accomplish in life.

Personally, I’d like to continue practicing yoga in the new year. I also want to lose this baby weight and keep up my book-a-week reading habit. I also intend on continuing to learn German and would like to take some sort of class outside my general realm of things. I’m also taking a vow to take one day off from social media entirely every week.

How We’re Reaching Them

That being said, we’ve got some pretty lofty goals we want to meet in 2022. So, we are going to need a solid plan to reach them. Where our financial resolutions are concerned, we are going to start the year off on the right foot by filing our taxes and getting everything paid off. Admittedly, filing will be a little more expensive this year. We made more and have more write offs. There are some other unexpected expenses coming up as well (emergency dental work for me). Thankfully, we have a plan for all of it. We’re stashing away a percentage of everything we make, even small freelance checks, and putting it towards getting these things taken care of.

Budgeting will play a huge role in reaching our money goals this year too. We will need to budget for our various savings plans, retirement, and taxes. It will be a challenge but sticking to our planned budget will be crucial. On the personal side of things, planning and prepping have always been key to success in my life. When I take the time to plan things out, they typically go well.

This year, that means more meal plans and food prep. It will also mean taking on a better routine all around so that I can maintain motivation and stability. Noting how I’ll spend my day and what I’ll eat helps everything else stay on track in some way. The same can be said of our finances. I keep a calendar budget and stick to it. Finding what works for you in terms of planning and honing in on it will help you reach your 2022 goals.

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Here’s Why It is Hard to Save Money

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<p>Our family has always struggled a bit with saving money. It seems every time we get an emergency fund established or a little money stowed away, Murphy's Law kicks in and we have to spend that cash to stay afloat. However, we aren't the only ones that struggle with this. In fact, most people find it hard to save money. Here's why...</p>::Pexels

Our family has always struggled a bit with saving money. It seems every time we get an emergency fund established or a little money stowed away, Murphy’s Law kicks in and we have to spend that cash to stay afloat. However, we aren’t the only ones that struggle with this. In fact, most people find it hard to save money. Here’s why…

Is It Really Hard to Save Money?

You may be thinking to yourself, “That sounds like an excuse to just not save.” It’s really not. Saving is hard, especially when you are spreading your focus across multiple financial goals. For us, we are focused on becoming debt-free, saving money for a home, and stacking up our savings. Sometimes, saving takes a backseat.

Not to mention, every time something comes up, we may have to dip into savings to take care of the cost. Of course, this is better than swiping our credit card or taking out a loan, but it makes reaching that three to six-month emergency fund difficult to reach.

All that being said, we aren’t alone. Much of America has a difficult time even saving enough money to cover a $1,000 emergency. That’s pretty nerve-wracking. Many people don’t even save 5% of their take-home income and 20% of Americans don’t save any portion of their income at all. But why?

Why?

In truth, most Americans aren’t saving any money at all because of their own choices. They aren’t willing to scale back or dial down their lifestyle. That isn’t always the case though. There are several factors that contribute to the difficulty of saving money.

  • Rising cost of housing, childcare, education, and healthcare: This is completely out of your control, but everything is going up. With the rising cost of necessities, it is hard to save money.
  • Debt: One of our loan payments is $488 per month. Think about if that was going into savings! Debt is a huge killer when it comes to being able to save.
  • Not making enough money: Your wages simply may not be high enough to stash anything away and cover your basic needs.
  • Lack of organization: Many people don’t track their spending, which can help you identify areas where you might be able to save.
  • Social activities take priority: This is especially hard for younger individuals. Oftentimes, social engagements take a higher priority than your finances (and they shouldn’t). Plan for outings and don’t overdo it.
  • Financial ignorance: Most of what you need to know about finance wasn’t taught in school and parents often fail to teach their kids about managing their finances too.
  • No desire to learn: While you may not have learned young, you can learn how to better manage your money now. You have to want to do it though.
  • Lifestyle inflation: When you get a raise, start saving more money instead of inflating your lifestyle costs.

The best piece of advice I can give you if you are struggling with saving like we often do is to stop comparing yourself to others. This is at the heart of why it is so hard to save money for many people. Unfortunately, when we compare ourselves to others, we wind up overspending and possibly even hindering financial progress altogether. All of this just to keep up with the Joneses. Don’t do it!

Readers, what part of your personal finances do you struggle with most? Why?

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Does IRS Debt Show On Your Credit Report?

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Does IRS Debt Show On Your Credit Report?

<p>irs debt credit report</p>::Pexels

 

Many individuals are often concerned about how different types of debts can impact their credit scores and financial future. Among the most common queries is whether or not IRS debt shows up on a credit report. This is a valid concern, as credit reports are a reflection of one’s financial health and can influence everything from loan approvals to job applications.

 

Today, we’ll delve deep into the relationship between IRS debt and your credit report and uncover some key facts.

 

Consulting A Tax Professional Can Make A Difference

 

Navigating the intricate web of IRS debt can be daunting for many individuals. Given the complexities and potential repercussions of unresolved tax debts, seeking the counsel of a tax professional becomes not just beneficial but almost essential.

 

For example, Tax Law Advocates offers a trained eye that can spot nuances in your tax situation that you might overlook, ensuring that you’re not only compliant but also maximizing your financial strategy.

 

Tax professionals are well-versed in the multifaceted world of tax laws. Their knowledge extends far beyond mere numbers; they understand the implications of these figures, the potential pitfalls, and the best strategies to employ. They can be your guiding light in the otherwise dark maze of tax jargon, deadlines, and procedures.

 

Another advantage of consulting a tax expert is their experience in dealing directly with the IRS. Oftentimes, taxpayers can feel overwhelmed or even intimidated by the idea of communicating with this formidable agency. A seasoned tax professional, however, knows the intricacies of IRS processes, its expectations, and the best negotiation tactics. Their expertise can mean the difference between a favorable resolution and a costly mistake.

 

The Direct Impact Of IRS Debt on Your Credit Report

<p>irs debt credit report 2</p>::Pexels

 

Historically, the IRS used to report tax liens on an individual’s credit report, which could seriously damage their credit score. However, as of 2018, the three major credit bureaus, namely Equifax, Experian, and TransUnion, stopped including tax liens on credit reports. This change was initiated due to numerous errors and discrepancies associated with lien reporting.

 

Now, the IRS itself does not directly report your tax debts to these credit bureaus. That said, unresolved IRS debts can indirectly influence your credit. Opting for a loan to pay off the IRS debt will introduce a new line of credit, which will be reflected on your credit report.

 

Tax Liens Can Still Be Problematic

 

Even though tax liens no longer appear on credit reports, they still present other financial challenges. If the IRS places a tax lien against your assets due to unpaid taxes, it essentially gains a legal claim to your property.

 

This can be problematic if you’re trying to sell your assets or use them as collateral for a loan. While the lien itself won’t show up on your credit report, lenders might find out about it during their due diligence, which could influence their lending decision.

 

Potential Consequences Of Unresolved IRS Debt

 

<p>irs debt credit report 3</p>::Pexels

 

Apart from potential tax liens, not addressing your IRS debts can lead to other unfavorable outcomes:

 

  • Garnished Wages: The IRS has the authority to garnish your wages if you have unpaid taxes. This means they can directly take a portion of your earnings until the debt is settled.
  • Seized Assets: In extreme cases, the IRS can seize your assets, such as property or bank accounts, to cover the unpaid taxes.
  • Loss of Passport: For individuals with a significant tax debt (usually over a certain threshold, which may change over time), the IRS can inform the State Department, potentially leading to the denial or revocation of your passport.

 

Taking Proactive Steps Can Avoid Credit Complications

 

If you find yourself owing money to the IRS, taking proactive steps can help mitigate potential credit complications:

 

  • Installment Agreements: The IRS often allows taxpayers to set up installment agreements, enabling them to pay off their debts over time. While this agreement itself doesn’t appear on your credit report, it helps avoid further actions like wage garnishments or asset seizures.
  • Offer in Compromise: This is an arrangement where the IRS agrees to accept a lower amount than what is owed. However, it’s essential to note that not everyone qualifies for this, and it’s often recommended to consult with a tax professional before proceeding.

 

In Conclusion

While IRS debts do not directly appear on your credit report, they can still indirectly influence your financial health. Ignoring or postponing action on these debts can lead to more significant problems, such as wage garnishments, asset seizures, or travel restrictions.

Understanding how the IRS operates and taking proactive measures can make a world of difference. Whether it’s setting up installment agreements, negotiating offers in compromise, or simply staying informed about your rights, every step helps in safeguarding your financial future. Remember, when in doubt, it’s always a good idea to seek the expertise of a tax professional. They can provide insights, offer solutions, and be your advocate in navigating the intricate world of taxes.

 

 

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Financial Spring Cleaning: How to Clean Up Your Budget

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<p>Most people think about clearing out their closets when "spring cleaning" comes to mind. While I suggest everybody do that a couple of times a year, your spring cleaning routine should also apply to your finances. Here are some ways that you can spruce up your budget this season.</p>::Pexels

Most people think about clearing out their closets when “spring cleaning” comes to mind. While I suggest everybody do that a couple of times a year, your spring cleaning routine should also apply to your finances. Here are some ways that you can spruce up your budget this season.

Make Sure It’s Working

First and foremost, you need to make sure that your current budget is working for you. If it has been a while since you’ve done any financial spring cleaning, then it is likely you need to make some significant changes to your budget. You want to make sure it works for your current lifestyle. It also needs to help contribute to your larger financial goals – whatever they may be.

If your budget isn’t working for you anymore, don’t be afraid to scrap it and start from scratch! There is nothing better than a clean, blank slate to help you get back on track.

Consider Additional Budget Items

After you’ve considered whether or not your current budget is working for you, start thinking about things that you’d add to make your life easier. I know this isn’t necessarily what people think of when they think “spring cleaning.” Normally, you think about purging items from your home and decluttering. However, you should also consider what might make it easier to keep clean and organized throughout the rest of the year.

For instance, we added some organization products to our closet and it stays more tidy throughout the year. Similarly, with your budget, if you plan for things like vacation or allocate money to areas that make your life easier, it will work in your favor.

Get Rid of Things You Don’t Need

You shouldn’t only be adding things to your budget though. Just like cleaning out your closet, you need to get rid of things you don’t need too. Chances are, you probably don’t need all of those streaming services. You probably also don’t need a $6 coffee every single day. Look for areas where you might be able to cut/trim costs and make those changes.

Don’t Forget to Save

If you’re like me, you get a little too excited about that last step (getting rid of things). I’m addicted to throwing things out (seriously). Oftentimes, I’ll wind up tossing things I could have used or things I shouldn’t have thrown away at all. Saving is important too. It deserves a line on your budget.

Organize in a Way That Works for You

At the end of the day, your budget will look different than someone else’s. This is because it is designed to work for you. The same way you organize the pantry after cleaning it out applies to your finances. You want to make sure the things you use the most are accessible. More than that, you want to make sure it is functional. After a bit of financial spring cleaning, you should have a clear idea of your goals and budget.

 

The Best Credit Card for Everyday Spending for Families

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<p>Credit where credit's due. There are some great deals around which can really help stretch your budget. When you're juggling the expenses of a family, your plastic friend can really become one of your best friends.</p>::Pexels

Credit where credit’s due. There are some great deals around which can really help stretch your budget. When you’re juggling the expenses of a family, your plastic friend can really become one of your best friends.

There is one vital thing to be careful about though. You need to make sure you can pay off the balance every month and in full. That way you won’t incur interest and you won’t run up debt. Budget carefully and be wary of payday loans.

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What is the Biweekly 26 Week Money Challenge?

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<p>Looking to have more control over your finances and put away more money? The Biweekly 26 Weeks Money Challenge, or the 26 Week Savings Challenge as it is sometimes called, is an excellent way to reach your saving ambitions. In this thorough guide, we will show you how to accomplish this challenge step-by-step and monitor your savings grow. this guide is suitable for all levels of saving, from novice to experienced, and is designed to keep you on track, motivated, and make the most of investing your earned money.</p>::Pexels

 

Looking to have more control over your finances and put away more money? The Biweekly 26 Weeks Money Challenge, or the 26 Week Savings Challenge as it is sometimes called, is an excellent way to reach your saving ambitions. In this thorough guide, we will show you how to accomplish this challenge step-by-step and monitor your savings grow. this guide is suitable for all levels of saving, from novice to experienced, and is designed to keep you on track, motivated, and make the most of investing your earned money.

 

 

<p>test app</p>::Pexels

 

 

How does the Biweekly 26 Week Money Challenge Work?

A year’s worth of savings can be achieved with the 26 Weeks Money Challenge, a straightforward but powerful savings method. The idea is simple: for 52 weeks, you save a certain amount of money each two-week period. You can build up your savings in a manageable and sustainable way by starting small and gradually increasing it each week.

First, you will decide on an initial savings amount. This could be as low as $1 or as high as you like, but be realistic. The key is to pick an amount that is suitable for your financial circumstances . After determining your initial savings amount, you’ll follow a predetermined schedule that outlines how much you need to save each week.  Here’s an article on how to save 10,000 using the biweekly 26 week money challenge. 

The schedule typically follows a pattern during which you increase the savings amount incrementally every two weeks over a one year period. You may begin by saving $2 for the first two weeks, add $4 for the next two weeks, add another $6 for the third two weeks, and so on. In this case, you are incrementally adding $2 on your previously added savings amount per two-week period.

While not a Money Challenge, Self Inc offers a Credit Builder Account which allows you to build your savings and credit score at the same time by reporting your monthly deposits to the 3 big credit bureaus; Equifax, Experian, and TransUnion. The average user who make on-time payments can expect to see a credit score increase of 49 points. 

 

<p>write blog posts</p>::Pexels

 

Benefits of the 26 Week Money Challenge

There are many benefits to the biweekly 26 week savings challenge that will improve your financial situation and achieve your savings goals. Here are some advantages:

  • Builds discipline and consistency: The challenge requires you to save money consistently over a long period of time. By sticking to the schedule and saving each week, you’ll develop discipline and create a habit of saving. This can help you make smarter money decisions and keep your overall financial goals at the forefront of your mind when making purchases.

 

  • Help boost your savings by a large amount: Over the course of the challenge, the savings amount gradually increases, allowing you to accumulate a substantial sum of money if you’re consistent. By the end of the 26 week period, you’ll have boosted your emergency fund, savings account, or any other financial goal you have in mind.

 

  • Encourages financial awareness: The Biweekly 26 Weeks Savings Challenge requires you to track your progress and stay engaged with your finances. This increased awareness can help you identify areas where you can cut back on expenses, find opportunities to save more, and make better financial decisions overall.

 

 

 

Variations of the 26 Week Savings Challenge

The beauty of the 26 Week Money Challenge is that it can be customized to suit your preferences and financial situation. If you cannot adhere to the rules of the basic 26-week challenge method doesn’t resonate with your personality or budgeting goals at the time, there are other variations you can try. Here some of the more popular ones:

  • Simple 26 Week Money Challenge: This method uses 26 weeks or 6 months rather than a full year. Good for working towards a short-term goal or for individuals who are paid on a weekly basis and able to contribute more often.

 

  • Reverse 26 Week Money Challenge: In this variation, you start with the highest savings amount and gradually decrease it each week. This can be a great option if you want to front-load your savings or if you anticipate having more financial flexibility in the earlier weeks.

 

  • Double-Up Challenge: If you’re up for a more aggressive savings approach, you can double the savings amount each week. While this requires a higher level of commitment, it can result in significant savings by the end of the challenge.

 

  • Customized Challenge: Feel free to create your own version of the challenge that aligns with your specific goals and financial capabilities. You can modify the savings amounts, duration, or even add personal milestones along the way. The key is to make it work for you.

 

 

Tracking your progress during the 26 Week Money Challenge

Keeping track of your progress is essential to stay motivated and accountable throughout the 26 Weeks Money Challenge. Here are some effective ways to track your savings journey:

  • Use a savings tracker: Create a visual representation of your progress by using a savings tracker. This can be as simple as a spreadsheet or a dedicated savings tracking app. Update it each week to see how much you’ve saved and how close you are to reaching your goal. A clean copy of the free printable 26 Week Money Challenge PDF worksheet  can be downloaded here.

 

  • Celebrate milestones: Break down the challenge into smaller milestones and celebrate each one. For example, after saving for 10 weeks, treat yourself to a small reward or indulge in a favorite activity. Celebrating milestones can help maintain motivation and make the challenge more enjoyable.

 

  • Share your progress: Consider sharing your progress with friends, family, or even on social media. This can create a sense of accountability and support. You might even inspire others to take on their own savings challenges.

 

<p>write blog posts</p>::Pexels

Ways to stay motivated during the 26 Week Money Challenge

Staying motivated throughout the 26 Weeks Money Challenge is crucial for success. Here are some strategies to help you stay on track:

 

  • Visualize your goals: Create a visual representation of your savings goals. This could be a vision board, a picture of something you want to save for, or simply a written statement of what you hope to achieve. Keep it somewhere visible as a constant reminder of why you’re taking on the challenge.

 

  • Track your progress visually: As mentioned earlier, use a savings tracker to visually track your progress. Seeing your savings grow week by week can be incredibly motivating and reinforce your commitment to the challenge.

 

  • Find someone to keep you accountable: Share your goals and progress with a trusted friend or family member. Having someone to hold you accountable and provide support can make a significant difference in staying motivated. You can check in with each other regularly to share updates and offer encouragement.

 

  • Reward yourself: Set up rewards for reaching milestones or achieving specific savings targets. Treat yourself to something you enjoy or have been wanting as a way to celebrate your progress. Just make sure the rewards align with your overall financial goals and don’t derail your savings efforts.

 

 

<p>test app</p>::Pexels

 

 

Conclusion

Remember, the key to success in setting realistic goals, staying disciplined and consistent, and finding ways to stay motivated throughout the journey. With the right mindset and the tips, strategies, and resources provided, you’ll be well-equipped to make the most of the 26 Weeks Money Challenge and transform your financial future. The challenge is just one tool in your financial arsenal. Continue to build upon this success by setting new goals, exploring other savings strategies, and making smart financial decisions that align with your long-term objectives.

 

 

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How Often Should You Review Your Budget?

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Budgeting can be a huge pain, especially if it seems like you are constantly revisiting it. I feel like we are constantly examining our budget for places to trim and save more money. Even if you’re not in the midst of a financial crisis, you should review your budget on a regular basis to make sure you’re accounting for changes and saving as much as possible. So, how often should you review your budget?

<p>Budgeting can be a huge pain, especially if it seems like you are constantly revisiting it. I feel like we are constantly examining our budget for places to trim and save more money. Even if you're not in the midst of a financial crisis, you should review your budget on a regular basis to make sure you're accounting for changes and saving as much as possible. So, how often should you review your budget?</p>::Pexels

1. When There’s a Major Shift in the Overall Economy

Before we get into the periodicity of budget review, the most important time to review your budget is when there are uncontrollable economic changes that will affect your spending power. We are in unprecedented financial times where inflation can eat away at your income without notice. If you’re waiting for your periodic budget review to catch the impact of economic changes, you may be heading for increased debt.

 

2. When There’s a Change in Your Finances

You should absolutely take a look at your budget whenever there is a major change in your personal financial situation. So, you’ll want to review your budget when you’ve gotten a raise, lost income, or paid off debt. If there’s a major change in cash flow, you’ll likely need to make major changes to your budget which may be for the better. For individuals with a bit more disposable income, you’ll want to increase your savings and retirement investments. Consider opening a Webull account where you can invest for free. They even offer an IRA options and a wide variety of research tools to for beginners to reduce risk.

If you have lost income due to a pay cut, working less hours, or encountered a period of unemployment, you’ll want to trim unnecessary costs immediately in order to save money. Having liquid savings is crucial in debt reduction as it prevents us from falling into the hands of predatory lenders. First comes debt, and then goes your credit. The latter leads to even more debt.

 

3. Monthly

We are currently looking at our budget on a monthly basis because we need to identify places to trim constantly. Many others take a look at their budget on a monthly basis as well, especially if they are attempting to pay off debt. The best time to do this is generally at the end of the month. Take a look at the previous month’s budget and determine how well it worked for you and your family. Adjust certain aspects of your budget as needed. Here are 3 printable debt free charts to help track your budget.

4. Quarterly

Another great way to review your budget is quarterly. Many of us make financial goals at the beginning of the year. Revisiting those goals, and your budget, every three months can help you stay on track. It can also help you review where you may be able to trim costs on a larger scale. For instance, if you notice you’re spending a lot on entertainment the first quarter of the year, you can make a concentrated effort to scale back in the second quarter.

 

5. Biannually or Midyear

You should always take a look at your budget at the 6-month mark of the year. Did you make financial promises to yourself as a New Year’s resolution? Budgeting and better financial management are on the country’s the top 10 list of New Year’s resolutions. You’re at the halfway mark and this is the time to see how well you’ve been budgeting for the first half of the year. Another benefit to a midyear budget review is acknowledging the incoming heavy spending periods; summer vacation, back-to-school, Thanksgiving, and Christmas. If you have never conducted a personal midyear budget review, here is a great article on how to conduct a midyear budget review.

 

5. Annually

Some people thrive on an annual budget and only review it throughout the year if there is a major change in their finances. For me, this simply wouldn’t work, but if you are already debt-free and have a great savings plan in place, an annual budget review may work for you. Consider investing in dividend paying stocks.  However, keep in my that even the most profitable companies in the world conduct at least quarterly budget reviews. A lot can happen in the span of 12 months. You may be missing out on opportunities if you fail to identify budget challenges or additional savings and investment potential early on.

 

6. Conclusion

If you’ve ever asked yourself how often should you review your budget, you’re not alone. It is a question I’ve struggled with occasionally. Keeping constant tabs on your finances can be exhausting but the financial freedom it can lead to is motivating! Budgeting is never a once size fits all situation so I suggest you try starting with a monthly budget review then decrease the frequency depending on your budget spending and income variations.

Readers, how often do you review your budget? 

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