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What is the Best Way to Manage Financial Stress?

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financial stress

Throughout my pregnancy, I have been attending yoga classes. Since I started attending these classes a lot of my stress levels are just lower, in general. On top of being good for my physical health, each class has helped improve my mental health as well. I’m less likely to freak out if I can remember the most important part of yoga: to breathe. That got me thinking about how people manage their financial stress and what we do to cope in our own family.

How We Deal With Financial Stress

This isn’t to say you can breathe your way through your financial hardships (though a yoga class or two may help you refocus). However, you can use some things from yoga to help yourself deal with financial stress.

  • Breathe: Sometimes you need to just step back and take a breath. This isn’t the end of the world and a nice cleansing breath can help with your stress levels.
  • Balance: Search for a way to balance out your finances and bring your stress down. Planning helps me a ton!
  • Set your gaze: Consider your goals. Is what you are stressing about really going to hold you back?
  • Drown out distractions: What things are distracting you from reaching your goals? Find a way to drown those things out.
  • Just unplug: Every once in a while, you need to just unplug. Cut off social media, emails, and maybe even your phone for the day. Recenter and come back with a fresh attitude.

Now, my husband doesn’t do yoga. He is more of a jiu-jitsu guy. Thankfully, we have ways of working through our own financial stress together. Normally, he is the calm and collected one. He makes phone calls, mends things when they are broken, and makes the problem (even if temporarily) go away. I am the planner. I sit down and figure out how we can avoid finding ourselves in that situation again.

For many couples and families, this is a great way to manage financial stress. You assign “jobs” to the people in charge of finance. My husband isn’t the best with planning, so bill pay and mapping out our finances each month is my job. He’s a better spender. So, when there is a big purchase to be made, he does the research. It works for us. For the most part, it is about what works for you.

Other Ways to Cope

What works for us won’t necessarily work for you. Thankfully, there are plenty of ways to cope with financial stress. Here are three ways I’ve seen be beneficial for other families.

  1. Have a true understanding of your financial situation. Oftentimes, stress stems from not knowing exactly where you stand financially. Take time to get to know your money and where you stand with your debt and long-term financial goals.
  2. Take a social media detox. Social media can be great, but it can also leave us looking at everyone else’s lives and saying, “That could be me.” People start envying one another and, sometimes, overspend trying to keep up with the Joneses. Turn your social media notifications off for a week (or more). It can do wonders!
  3. Consider counseling. Financial counseling can be a great tool if you are really struggling with managing your stress. Look into low-cost and even free options in your area.

Dealing with financial stress can be a killer. Once you find a way to manage your own stress, it can make a world of difference. You may even find you are meeting more of your goals and seeing more progress in your finances.

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How to Throw a Budget-Friendly Baby Shower

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budget-friendly baby shower

You may be just as surprised as I was to learn there are actually people who go into debt throwing their own baby shower. I have been checking out Pinterest boards and subreddits and, believe it or not, there are people that really spend thousands for their shower. Insane! We won’t be running our credit card for anything for our celebration. Here is how we plan to throw a budget-friendly baby shower.

The Average Cost of a Baby Shower

Baby showers typically cost between $100 and $1,000. Some showers may cost even more if you are anticipating a large number of people. I read about one couple who expected their shower to cost nearly $4,000! So, what makes up this seemingly astronomical cost?

First, the food people are eating is a huge part of the budget. Many people have their baby shower catered, so you are paying the caterer a “per person” price. This adds up quickly! Then when you factor in the cost of the cake, which can be up to $4 per serving, the price of food for your shower may be startling.

The next largest expense for your baby shower is the location. While some people choose to have it in their home, many people rent out a community center or other space for the shindig. Depending on your location, this can cost $200 and up.

Many people spend a fair amount of money on invitations and decorations as well. Invitations cost anywhere between $0.50 and $1 per invite. Decorations for the party can cost between $50 and $200 or more, depending on the size of the party and how many decorations you need to buy. Not to mention, you’ll need to buy plates, cups, napkins, and silverware as well.

On top of all of this, people generally play games at baby showers. So, you’ll need to purchase what you need for the games as well as prizes. For instance, our shower will have a diaper raffle. For every pack of diapers and/or wipes someone brings, they will be entered into the raffle for one of three prizes. You may also want to include party favors for your guests as well.

Tips for a Budget-Friendly Baby Shower

As you can see, the cost of a baby shower can start to add up really quickly. We have been able to cut costs in a few areas that will save us a bit of money. Here are some tips I’m using to throw a budget-friendly baby shower…

  • Hold it at a time where finger foods are acceptable. We are having our baby shower at 1 p.m. and providing finger foods. I’d suggest checking out some of the Aldi charcuterie boards, which you can put together really cheaply!
  • Have your baby shower somewhere free. We are having our shower in our home, so it’ll be 100% free. If your house isn’t big enough to hold a shower, look for free venues around you. Many parks offer covered picnic areas for events for free or cheap.
  • Get close friends and family to chip in. My mom and a few of my close friends are pitching in for the big things (food, cake, prizes for the games). Talk to your folks to see who might be willing to help.
  • Keep it small! We only invited about 30 people and expect about half of them to show up. Keeping it small will help keep costs low all around.
  • Send e-invites. We didn’t stress sending paper invites out. Instead, we just created a Facebook event and invited everyone that way. Those without Facebook we called or invited in person.
  • Don’t stress decorations. I think we will spend less than $50 total on decorations. Remember, the most important thing is that you spend this time with friends and family.
  • Hit the dollar store. When it comes to plates, napkins, silverware, and some of the prizes, we are hitting our local dollar store. You don’t have to spend an arm and a leg on these items.

Readers, how much did you spend on your baby shower?

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Do You Celebrate Your Pet’s Birthday?

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celebrate your pet's birthday

In the debt-free community, it is frowned upon to spend money on things that aren’t absolutely necessary. However, I tend to think that if you don’t allow yourself any fun you’re more likely to stray away from your debt freedom goals altogether. One fun thing we do every year is celebrate our dog, Enzo. He has been our first “child” for four years now and, even with the arrival of our baby in a few short months, we wanted to continue his birthday celebrations this year. Do you celebrate your pet’s birthday?

What We Do To Celebrate

Now, we don’t do anything too extravagant. We simply make sure our favorite pup in the world has the best day ever. After all, he has brought us so much joy since being a part of our family. This year, we bought him some special treats, a new toy, and made him some homemade whipped cream (which he loves). Altogether, it cost us about $20 to help make a special day for our dog. His reaction, on the other hand, is always priceless, as depicted by the photo of him and his new toy below.celebrate your pet's birthday

Ways to Celebrate Your Pet

That being said, you don’t necessarily have to spend $20 to celebrate your pet’s birthday. They are simple creatures. Here are a few low-cost (or no-cost) ways we’ve celebrated Enzo in the past.

  • Go to the park. This is one of our favorite things to do on Enzo’s birthday. A quick trip to the dog park is absolutely free and they’ll have the time of their lives. If you have a cat that likes to be walked on a harness, consider taking them for a walk.
  • Set up a playdate. Our Enzo loves playing with other dogs so setting up a playdate with one of his favorite doggo friends is always a good no-cost way to make his day great.
  • Cook something special for them. There are a number of things you can cook that your pet will enjoy. They will love the change in food. Just be sure you are giving them something that is 100% safe and healthy for them to eat.
  • Do some of their favorite things. Whatever their favorite things may be, try to take time to do them. Enzo loves a good car ride, trip to the park, and even just a walk. All of these things are 100% free.
  • Give them extra attention. Simply giving your pet some extra attention on their birthday can be enough to may their day special. Best of all, it’s free.

Do You Celebrate Your Pet’s Birthday?

With a rise in the number of people who have pets in general and many of those individuals choosing not to have children, celebrating your pets has become more normal than you’d imagine. People truly treat their pets like members of their family, which they should. Every dog (or whatever your pet of choice may be) deserves to have its day and you don’t have to spend an arm and a leg to give them a good one.

So, readers, what do you think? Do you celebrate your pet’s birthday too? How do you celebrate? 

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What Are the Best Online Registries?

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best online registries

Last week we talked a bit about virtual baby showers and some of the awesome ideas people have come up with to celebrate a new arrival virtually. In addition to there being a number of ways to celebrate from afar, there are also a plethora of ways to register for and receive gifts from loved ones (no matter where they are). Here are some of the best online registries I’ve found so far (plus the perks they offer).

Best Online Registries for Weddings

There are a number of online registries out there. Depending on what you are celebrating, there may be different options out there for you. Here are some of the best places to register online if you are getting married.

Amazon

Amazon will be listed here a few times because, among all of the online registry options out there, it is the best. You can register for a wide range of items, track what has been purchased, and send virtual thank you notes to each of the people who purchased something from your registry. It makes things really easy. For weddings, you can even add things like Southwest Airlines gift cards, Airbnb gift cards, and other monetary gifts to help you celebrate your big day.

Bed Bath and Beyond

If you and your spouse are moving in together or buying a new home after your big day, a Bed Bath and Beyond registry is also a good option. There are a number of coupons available for the retailer, so your guests can save some money. Plus, you have a full year after the gift is purchased to make a return. This way, you don’t have to go rushing around after your wedding.

Blueprint

Blueprint is an awesome online registry option because you have access to 50+ retailers through the site. They also just have a cash gift option, which is nice.

Honeyfund

Honeyfund is another registry option rising in popularity for newlyweds. This allows your guests to contribute to experiences or honeymoon costs instead of physical gifts. They can give money towards airfare, hotel stay, or experiences during your honeymoon.

Target

Target is always a good place to register, no matter what the occasion is. Like Bed Bath and Beyond, you’ll have a full year to return any gifts from your registry.

Zola

If you are planning your wedding through Zola, you may also want to do your registry through them as well. This website is truly a one-stop-shop for everything to do with your big day. The site also gives you access to more than 450 brands, making it pretty user-friendly no matter what you want to add to your registry.

Best Registries for Baby

After your big day, you may be planning a family, so you’ll need to create a new registry for your baby. Here are the best registries online for baby showers.

Amazon

As mentioned above, Amazon has a plethora of options when it comes to what you can add to your registry. Some of the perks to your baby registry include a diaper fund people can contribute to, group gifting options, and item suggestions. Amazon also provides you with a checklist of everything you need for your baby (things you may not have considered). Once you (or someone you’ve shared your registry with) purchase $10 worth of items from your registry, you’ll also get a free registry box from Amazon with some samples and things like baby socks. On top of that, Amazon also gives you a completion discount. So, after you’ve reached a certain point in your pregnancy, things on your list will be marked down.

Buy Buy Baby

Buy Buy Baby is a sister company of Bed Bath and Beyond. One of the biggest perks of registering here is that any coupons for Bed Bath and Beyond can also be used at Buy Buy Baby. You can receive a completion discount on your registry (between 10% and 15%). The store also does price matching. On top of all that, they also offer a free box of goodies with coupons and samples that you can pick up in-store.

IKEA

IKEA is a great place to register while you are putting together the perfect nursery for your little one. They carry cribs, changing tables, high chairs, and even a few baby toys. You’ll also be able to register for closet storage items, which is always a plus when it comes to putting together a nursery. Gift-givers who are buying things off the registry will also receive a family discount at checkout.

MyRegistry.com

If you just can’t decide which retailer you favor or want to condense your lists from each, MyRegistry.com is a great place to start a registry online. You can add gifts and items from literally any online retailer to your registry. As if the added convenience wasn’t enough, you’ll also be able to reap the benefits of any completion discount the retailers offer. For instance, Buy Buy Baby items on your list will be eligible for up to 15% completion discount.

Pottery Barn Kids

Pottery Barn Kids is another great place to register when you are piecing together your nursery. Like many of the others listed here, they offer a completion discount (20%). The discount is valid for up to six months after you’ve given birth.

Target

Target is another retailer that has a great online registry for your new arrival. One of the biggest perks of registering with Target is that you’ll get 15% off of whatever you don’t receive after your baby has been born. You can also stop by guest services at a Target location and ask for your baby registry gift. Their box is packed full of coupons and samples ($50 value).

Walmart

There are Walmart locations all around the United States, making it an accessible place for anyone to purchase items from your registry. The retailer also offers a price-match guarantee on items from most other stores including Amazon, Target, and Kohl’s. Similarly, they also offer a welcome box with coupons and samples.

Registries for Other Occasions

Even if you aren’t getting married or having a baby, there are plenty of things you may want to celebrate. For instance, you may be moving into a new home. Consider registering at one or more of these places.

Amazon

Once again, Amazon is a great place to start. They have literally everything you could think of when it comes to putting together a housewarming registry or list for another type of celebration. In my opinion, it is one of the best online registries out there simply because of its convenience.

MyRegistry.com

Besides Amazon, MyRegistry.com is another great pick for creating your online registry. You can add items from literally any retailer that has a website. This makes it much easier to find and receive exactly what you are looking for.

When it comes to celebrating other occasions, many of the options listed above are great too. Walmart, Target, Bed Bath and Beyond, Pottery Barn, IKEA, and other retailers all offer online registries to make your gift-giving and receiving easy.

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How to Plan a Virtual Baby Shower

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virtual baby shower

The COVID-19 pandemic changed a lot of things for people. Mainly, it has changed the ways many of us interact with one another. Now, more than ever, there are virtual events taking place and people are “Zooming” in to join parties. If you’re expecting a new addition to your family like we are, you may be wondering how to go about planning a virtual baby shower.

Virtual vs. In-Person

There are plenty of pros and cons to having a virtual baby shower versus an in-person get-together. When you are considering which will be best for you, you should weigh each of the points below and think about what you’ll be comfortable with.

Pros and Cons of a Virtual Baby Shower

The main pros where hosting a virtual shower is concerned are reducing your risk of exposure to COVID-19. Although more and more people are getting vaccinated, it is hard to tell what is/is not safe. Additionally, if you have a number of family and friends out of town, it makes it easier for them to feel involved.

Cons of hosting virtually are more personal in nature, typically. You won’t get to take photos for your memory book or play any humorous games in person. It may also impact the types of gifts you receive. Many people tend to spend more when they are attending a shower in person.

In-Person Baby Shower Benefits and Disadvantages

There are not many cons to hosting an in-person baby shower other than potential exposure to the virus. You may also be concerned about the cost of hosting a shower. However, this is generally taken care of by a third party throwing the event for you. If you are more of an introvert, an in-person event may also cause you some anxiety.

The benefits of hosting an in-person shower are plentiful. You will get to see some of your close family and friends and celebrate the arrival of your new baby. It gives you a chance to play fun games with one another and truly enjoy the day. You may also find you receive more items from your registry (and more fun non-registry items) when you host something in person as well.

How to Plan a Virtual Baby Shower

When it comes to planning a virtual baby shower, you need to be creative. Virtual showers didn’t really exist until about a year ago, so ideas for games, activities, and what to do need to be thought up. Here are a few things to help you get started.

  1. Start an online registry. We started our registry on Amazon, which makes it easy for people to search, find what we are in need of/asking for, and send directly to our home. For folks out of town, this has been great! Target, Walmart, and other retailers also have online registries. Do some searching to figure out which one you like the most.
  2. Start a diaper fund. You can do this on Amazon’s registry fairly easily. If you aren’t registered on Amazon, consider creating a fund for diapers where people can contribute. In the first year alone, new parents will spend more than $1,000 on diapers. So, this is a valuable gift for people to give.
  3. Figure out who WILL be present. Even though you are hosting virtually, have a couple of friends or family over while you host the virtual event. This makes it less awkward when you are putting activities together, opening gifts, and easier for you to take those frequent bathroom breaks.
  4. Create a virtual invite. You can either do this via email or a Facebook event page. Have a way for people to virtually RSVP and a system for keeping track. Of course, there is less stress on the RSVP than if you were providing food and drink for everyone.
  5. Search for virtual games to play. This website has quite a few good baby shower game ideas that you can play virtually. One of the popular ones is “Guessing Baby,” which entails guessing the exact delivery date, weight, measurements, etc.
  6. Have a virtual message board. Allow your virtual guests to leave well wishes for the family and new arrival. Be sure you use a message board that you can readily gain access to. Some will even allow you to download the messages (which you may want to keep for your baby book).

What I’ve Decided to Do

While a virtual baby shower does have a lot of options, I’ve personally decided to hold one in person. We have a lot of local family and friends that will be excited to celebrate (and so are we). Of course, for our out-of-town folks, we will still be extending the invite and online registry so that they can be involved in the celebration if they can’t make it in person as well. It will be a day to remember with family and friends!

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Low-Cost Ways to Celebrate Mother’s Day

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low-cost ways to celebrate

This Sunday is Mother’s Day and it is my first as an expecting mother. It is also the first in a couple of years that I will actually be able to see my mother and grandmother during the weekend. Most of us are on a budget these days, so we’ve been digging around for some low-cost ways to celebrate as well as frugal gift ideas. Here’s how we are spending the holiday.

Low-Cost Ways to Celebrate

The best way to save money on your Mother’s Day celebration and other get-togethers throughout the year is by hosting a potluck-style event. This year, we will all be bringing something over to my mom’s for our meal together. I was in charge of bringing a dessert, which is always a relatively low-cost part of the meal. I’ll be bringing cookies and a pie. Here are a few more ideas for low-cost ways to celebrate.

  • Have the party later. Typically, having your celebration the week after the actual holiday can help save you some money. All of the Mother’s Day gifts and cards will be on sale next week, saving you some cash. You will also miss the rush of people at restaurants and other events, which could potentially save you money as well.
  • Scope out deals and freebies. This is another great way to save money on your celebration. Every year there are retailers and restaurants that offer deals and freebies for Mother’s Day. In some cases, you may even be able to score mom a free meal.
  • Create memories instead of buying things. If you are truly focused on finding low-cost ways to celebrate, finding ways to create memories instead of spending money is a good route to go. Do free activities with her like visiting a park or find cheap, fun things to do with her instead of dropping money on a big gift. Chances are, these activities will mean more to her anyway.
  • Start new free (or cheap) traditions. For instance, we used to go on a walk after big meals together (just me and mom). These walks are a memory I’ll always have with her. Look for some traditions you can start with your mom this year that don’t cost much if anything at all.
  • Do lunch instead of dinner. If you are going out to eat, lunch is always cheaper than dinner. You can save a good bit of money by heading to a Mother’s Day breakfast or lunch instead of a dinner out.

Small Gifts

Another way we’ve managed to keep costs down this Mother’s Day is by limiting the amount we are spending on gifts to under $20 per person. It may not seem like a lot, but the gifts we’ve picked out are meaningful. They each also signify each of our mother’s “graduation” into grandmotherhood with the coming of our new child (something each of them is excited about).

All in all, the best thing you can do to keep your Mother’s Day celebration low-cost is by setting a budget and sticking to it. This goes for all of the holidays throughout the year. If you are strict with the budget you have set for your celebration, you’ll be golden.

Readers, how much do you budget for Mother’s Day each year?

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How Much Does It Cost To Have a Baby?

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how much does it cost to have a baby

There are a lot of expenses that should be considered when you have a little one on the way. Prenatal care, the cost of delivery, and then the cost of taking care of your child should all be factored into your budget. So, how much does it cost to have a baby and how can you prepare?

Cost of Prenatal Care

Prenatal care is the first set of expenses you will face when having a baby. The costs associated with prenatal care can vary wildly based on your medical history, special needs, and choices you make throughout the prenatal phase. For instance, if you decide to have genetic testing done, it can increase the overall cost of your prenatal care. Similarly, if you are tested for gestational diabetes and need insulin to maintain your blood sugar, that will impact the cost as well. If you have a difficult pregnancy and require more care than others, this will also increase expenses associated with prenatal care.

Prenatal visits cost between $100 and $150 each and there are around 14 visits throughout your pregnancy. The average total cost lands around $2,000. Without insurance, you can expect to spend between $95 and $200 per visit. However, some appointments where lab work is performed can cost as much as $800. Most insurance companies will pay between 80% and 95% of these costs. So, if you have insurance, you may pay about $15 out of pocket for each visit.

The insurance I have only cover 60% of these visits though. At the end of it, I will be paying $1,060 out-of-pocket for my own prenatal care, possibly more depending on how the pregnancy progresses. If you’re in the same boat, don’t worry! Your doctor will likely have a payment plan available for prenatal care costs. I am paying $278 per month for insurance and $260 a month out-of-pocket directly to the doctor’s office.

Delivery Costs

One of the bigger expenses, of course, is the delivery of your new child. This is not included in your prenatal care costs. For patients without insurance, the cost of a natural vaginal delivery can range from $9,000 to $17,000, depending on your location. If you need to have a C-section or there are complications with your delivery, this can increase the cost to somewhere between $14,000 and $25,000. Other services that may add money to your total will be the induction of labor with drugs and whether or not you have a private room for aftercare.

Individuals with insurance may still have to pay at least a four-figure balance after delivery. The out-of-pocket costs can range from $1,500 to $3,000, but they can very well reach your out-of-pocket maximum for the year. For my insurance plan, the maximum out-of-pocket cost for the year is $6,000. I may very well reach that, depending on the cost of delivery and any unforeseen costs throughout the process.

These delivery costs only cover the cost of caring for the mother though. Your baby will also receive a separate bill. This bill will range from $1,500 to $4,000 for a healthy baby delivered at term. If your baby is premature or has any health complications at birth, this bill can increase significantly.

Cost of the First Year of Life

Beyond delivery and prenatal costs, you will need to think about the other “unseen” expenses of having a new baby. The average middle-income family in the United States can expect to spend about $12,000 on their child during the first year of life. By age two, this increases by about $500 annually.

In the beginning, you can expect to spend about $50 per week on diapers alone. Throughout the first year, this can rack up to an astounding $3,000. So, if you are invited to someone’s baby shower, they really do appreciate receiving those diapers. Oh, and new moms, if you find you have too many of one size, you can take them back. Huggies and Pampers will be accepted at any major retailer to exchange for a different size. If you receive store-specific diapers, you will need to return them there.

On top of the cost of diapers during the first year, new parents typically wind up spending $6,000 on other baby items such as the crib, strollers, car seats, and other big-ticket items to get ready for the new baby. Talk to experienced parents and get an idea of what you really need. You may be focusing on things that aren’t going to get all that much use, to begin with.

How Much Does It Cost To Have a Baby?

All of the costs above considered, to have a baby and get them through their first year of life, you could very well end up spending $50,000. Depending on your insurance plan, the help you receive from friends and family, and other financial factors, this could be dramatically less. There are also a number of resources you can use to decrease the overall cost of prenatal care and delivery. For instance, using a midwife instead of a gynecologist for delivery could save you about 30% of the overall cost.

Additionally, you can look for secondhand clothing, take hand-me-downs from friends and family, and do some bargain hunting when it comes to providing for your child. There are a lot of coupon programs and freebies you can receive that will help you deal with the cost of a new baby.

Readers, how much did it cost you to have a baby? What were the biggest expenses?

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Setting Your Child Up For Financial Success

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setting your child up for financial success

Since we have announced that we are expecting our first child, we have been putting a lot of thought into how we can set our child up for success. We’ve discussed private school vs. public school, reading to them, and teaching them various things. But how do you go about setting your child up for financial success?

Why It Is Important

Neither one of our families had great financial success when we were younger. In fact, there were a lot of moments we remember our parents struggling. Because of this, setting our little ones up with what they need to be financially stable is important to us. It should be important to you, too.

When you are able to display good money habits for your kids, it makes it easier for them to be a financially stable individual as an adult. Beyond that, providing a financially sound environment for your children will also help reduce their own anxiety and tensions in the home all around. So, how do you go about setting your child up for financial success?

Setting Your Child Up For Financial Success

At an early age, you begin doing things with your child to help boost their development. For many families, this takes the form of a nighttime reading session, socializing your child with others, and teaching them some level of responsibility. As they grow older, it is important to also teach them some financial lessons.

  • Encourage saving. Large purchases in life typically take some kind of planning and usually saving. Try and encourage your child to save up for big items they want or things that are important to them.
  • Open a checking account. When your kid reached high school age, it is a good time to open a checking account for them. It will help them learn responsible spending practices. Additionally, when they start working, they will be able to receive a direct deposit.
  • Add your child as an authorized user. Once they have gotten used to using a checking account, consider adding them on as an authorized user on your credit card. This can help teach them more responsibility and kickstart their credit score.
  • Talk to them about their credit. Many young adults enter their lives without knowing anything about their credit score or how to improve it. Be sure you talk to your child about their credit and educate them on secured credit cards. They can be a great way to help them at the beginning of their financial journey.

Bottomline

There are a lot of things that go hand-in-hand with parenting a child that many people don’t often think about. Educating them about finances starting at a young age with saving and through their teenage years will help set them up for financial success later in life.

Readers, when you had your children how did you teach them about money, saving, and debt?

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What Is the Real Problem Behind This Couples’ $232000 in Debt?

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$232000 in debt

Occasionally, I also write on another personal finance website called Saving Advice. The site, which typically gives out financial advice and insights into saving methods, also has a blog section where everyday people can blog about their finances. There are a number of people who have blogged there for over a decade. One of the newest members is what recently caught my attention though.

An American Debt Story

In the original post, the blogger outlined their debt and broke it down into accounts. Immediately, people began to comment on the couple’s astounding debt figures. After having paid off more than $60,000, they remain $232,000 in debt. From the post:

A bit about myself, I’m a thirty-something-year-old woman living in Alaska with her husband who’s in the ARMY and 3 children (16yo girl, 13yo girl, and 4yo boy). I’m a Dave Ramsey enthusiast although I do disagree with some of his teachings (for example, saving $1,000 for emergency fund).

The comment section was full of suggestions on what the family should do as well as other personal stories to help her know that she’s not alone. In fact, a lot of people on the site have paid off six figures in debt. But the real question is how does $232000 in debt accrue?

How Do You Get $232000 in Debt?

First and foremost, if you take a look at the original post (linked above), you will see that the family has FOUR car payments they are in charge of making. This one of the biggest red flags on the list of their debts. They also have tens of thousands of dollars in credit card debt. There are also a number of personal loans and student loans listed as well.

All in all, there has been very little reflection (on the part of the blogger) on what got them into this situation, to begin with. They owe payments on a Prius, truck, van, and RV. There is no doubt with three children that the van is likely needed, but the other vehicles are excess. The blogger says that they use the Prius for Doordash, but even the average Doordash salary would not excuse the monthly cost in car payments.

When it comes to “how does this happen,” it is the lack of self-reflection that plays a huge role. When a problem arises, a loan came through for them in an emergency instead of a savings fund. They have also made a lot of unnecessary expensive purchases.

My Thoughts

Of course, I still hold quite a bit of my own debt. We have not been able to make much progress on our debt freedom journey in recent months, but we are able to truly examine our finances. At this time, while she’s made a huge step in blogging about their debt, she hasn’t truly examined their finances.

She lists budgeting as one of her hobbies in the first post. However, she is still budgeting outside of what they actually have coming in. She is budgeting around debt payments and loan money. I think before she truly makes progress beyond the minimum payments she will have to identify what got them there in the first place.

For our family, we continued to go into debt because we overspent or thought we could afford more than we actually could (i.e. higher rent, too high car payments, etc). This is because we lived paycheck-to-paycheck our entire lives. So, when we got paid, it was “treat yourself” day. Because of this, we have to budget a set amount of money for “fun” activities so we don’t splurge. The reasoning behind their family’s debt will likely look different and so will the solution.

Readers, what do you think about this couples’ $232000 in debt? What would you suggest for them? 

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5 Top Ways to Protect Your Family’s Wealth

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When we start a family of our own, one negative side effect that is shared unanimously around the globe is an anxiety over our loved one’s futures when we are no longer around to care for and protect them.

While this is entirely natural, and cannot be eradicated from late night bouts of insomnia entirely, there are practical steps we can take to make certain that our family’s wealth remains intact, even in our absence, and that they are always safe and provided for. Read more below.

  • Create a Will to Ensure Your Assets Are Distributed According to Your Wishes

Dying without a will represents a significant risk. The only way you can feel confident about your family’s future is by creating a will that is valid, comprehensive, and up to date.

Without it, you could be leaving the future of your estate in the hands of laws of intestacy, which stipulate that only certain, close family members stand to inherit anything from your estate. The rules preclude non-married partners, even those who have been cohabiting for many years, from inheriting, which can put your family’s future in jeopardy.

  • Look into Trusts and How They Can Help to Protect Your Family’s Finances

Trusts are utilised by many people to ensure that their assets are protected during their lifetime, and after their eventual passing. They can be used to ensure that the finances are safeguarded against tax and a wide array of other issues that may interrupt your wishes from being realised.

  • Protect Your Business Assets

It is easy, when looking into ways to protect your family’s wealth, to overlook any business interests or concerns, and to see them as entirely separate. When you are a business owner or shareholder, for instance, ensuring that measures are put into place that ensure the continuity of business as usual will mean that both your business and your family do not run into difficulties in your absence.

One of the most common and effective ways of ensuring this is by appointing LPA, or Lasting Power of Attorney, to someone you trust to continue making importance business decisions on your behalf.

  • Ensure Your Will and Legal Documents are Kept Up to Date

Not only is creating a will essential to protecting your family’s future, but ensuring that it is kept up to date and reflective of your most recent wishes will prove just as vital to your own peace of mind over your family’s future.

For instance, if you and your spouse make the decision to enact an informal separation, then they still stand to inherit from your estate under the rules of intestacy, or under an outdated version of your will.

You cannot feel certain about your family’s future, and the dispensation of your wealth, unless you routinely revisit and make amendments to your will.

  • Don’t Forget Your Digital Legacy

Just a few short decades ago, creating a will meant considering assets that were far easier to keep track of, such as your estate and bank accounts. Nowadays, our estate is also being spread increasingly thin across the digital sphere. The term ‘digital assets’ comprises things as diverse as our digital photo albums, social media accounts, and, in recent years, virtual currencies and e-wallets.

Forgetting this means overlooking a significant portion of your estate – a portion which may be lost or forgotten about entirely. It is equally as important as property and savings accounts, and must be acknowledged fully within a valid will.