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A Tribute to Money Smart Women and Moms

By | 2020, Money Matters | No Comments

May brings a time to reflect on women and the influence they have or have had in our lives. Whether it is a mother, grandmother, sister, daughter, or a good friend, we can all think of someone we love that has inspired us.

Helping others is an innate, nurturing quality of most women. If we have the knowledge, we want to share it with those around us. This is especially valuable when it comes to sharing our knowledge of money.

It was not that long ago that people did not talk openly about money. Thankfully, times have changed. Money has an impact on each of us, from earning a living, to buying groceries, to paying for college, to saving for retirement. It touches almost every aspect of our daily lives, and at some point, we developed ideas and values surrounding money.

Looking back, I can see how the lessons I learned at an early age helped to create a foundation for my financial decisions today – saving, living within my means, investing in my future, and giving back, all principals that were taught to me when appropriate. The lessons do not stop there. How we earn money is important as well. Do something you enjoy, give it one hundred percent, and treat others fairly, are some of the cornerstones I try to build on.

The decisions we make surrounding money are unspoken examples to those who are watching, and the message we send is important. Think of your situation, who helped form your financial values?

You can share your money smarts with others by talking openly about money and sharing your experiences, good and bad. Stories are a great way to do that. It helps others connect with the message you want to convey, and it makes you seem more relatable. Remember, no one is perfect; sharing your hardships and failures is just as important as sharing your successes.

We make a difference in the lives of others, even if we are not mothers. If we share our experiences, we can help others make better financial decisions and become successful, financial speaking.

I admire you for mentoring those around you. You are generous beyond measure, with your time, talents, knowledge, and, when possible, your money.

I wish each of you a wonderful Mother’s Day.

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A Newlywed’s Guide to Financial Success

By | 2020, Money Moxie, Newsletter | No Comments

I’m sure most people reading this article have heard that money is one of the leading causes of divorce. That can be disheartening to hear when you’re planning a wedding. Being a newlywed myself, I have thought a lot about myself and my husband’s financial success and how to achieve our personal financial goals. I also know from observing friends and former classmates that young people often don’t even know where to start when it comes to making good money choices, especially when you add another person to the picture. As I’ve thought about all of this, I have come up with a list of things that will help newlyweds be successful in their financial endeavors.

1. Talk about it – This first one is arguably the most important. Money is often a taboo subject, but it is important to have open communication about money, especially in marriage. It is best to talk about money before you get married, but if you haven’t, talk about it as soon as possible. Make sure you both understand each other’s expectations for your money. For example, let your spouse know if you expect them to talk to you before making purchases over a certain amount. It is essential to be honest with your spouse, especially about any debt you may have.

2. Build an emergency fund – Having an emergency fund should be a top priority for newly married couples. The general rule of thumb is to have 3-6 months’ worth of living expenses saved up for emergencies such as a lost job, family illness, natural disaster, or major home repairs. This will bring security in case disaster strikes.

3. Design and track a budget – Start by reviewing your joint budget for the last few months and assigning dollar limits to each spending category. Remember, a budget is a work in progress. It is okay to make adjustments, especially in the first few months. Tracking your spending after creating a budget is just as important as making the budget. There are many ways to track your spending. Some people use apps; some people use spreadsheets; some people use the envelope method. The envelope method is primarily just using cash for your budget, and once the cash is gone, you’re done spending in that category for the month. This is especially helpful in areas in which you tend to overspend. Try out a few different methods and find the one you like best.

4. Save for retirement – This one is not something newlyweds often think about. Retirement can seem like it is so far in the future you don’t need to worry about it. However, starting to save for retirement when you are young really gives you a leg up. Having time on your side helps you take advantage of compounding interest. Even if you start small, saving something toward your retirement early on can have a big impact. Contributing to your employer-sponsored 401k plan is an excellent place to start.

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Back to School College Planning: Real Advice from a College Student

By | 2016, Money Moxie, Newsletter | No Comments

College. When being described by those with a diploma hanging on the wall, it is a golden age of lasting friendships and high-stakes pranks. When imagined by youngsters that haven’t flown the nest, it is an escape from the demanding thumb of the parents. True, college is a great place to meet new people and discover independence; it is also a challenging time of learning to balance life with money.

The average college student graduates with $24,000 in debt, according to the Project on Student Debt.

college_debt

College doesn’t have to be four years of ramen noodles and Friday nights at home—with the right money management, any college student can have the same outlook (even if it is forty years in retrospect) as those that have moved their tassel.

Tip #1: Look at the Long Run
For as many times as the incoming freshman has been told: “College opens up so many doors, do whatever you want to do,” just remember that you cannot do everything that you want to do. Doing everything you want, satisfying every craving, or buying each impulse item will wipe out a bank account before the end of first semester.

Think about what will matter in a few years, rather than the latest craze or obsession. Will Jerusalem Cruisers last? Probably not. But having enough money to pay for next semester’s rent will matter. Save money for the long run, rather than spend it on something temporary.

Tip #2: Be Budget Friendly
The best way to manage money is to have a set budget and stick with it. Download one of the hundreds of budget-making apps (Mint is recommended), and decide how much you are going to spend and save each month.
Don’t just budget for bills and tuition; also budget for food, dates, books, and socializing. Being budget friendly goes beyond just having a reminder of how much you are supposed to spend though—you have to obey your own rules.
Find ways to cut back, whether it’s buying used textbooks online, having a suburban mom’s coupon book on hand, or trying your hand at a homemade meal. Many college campuses have fun free activities you can participate in. Having a budget will help you save money while still having enough for the essentials.

Tip #3: Shop Savvy
Taking a trip to the store is a dangerous activity; financially, that is. There are hundreds of options and sales, not to mention the pushy salespeople. To stay safe, shop savvy. Know exactly what you need to buy before you even enter the store, and how much you can spend.

Paying with cash is a great way to keep from going over-budget. Swiping a credit card is easy—sometimes too easy. It is easier to spend less when shopping with tangible money.

Be careful about the 5-buck-or-less temptations; those little buys add up quicker than you think. Finally, avoid impulse buys by making a 30-day waitlist. Put random finds and wants on the list. If in a month you still want something, chances are it will really add to your life.

Tip #4: Invest Early
Saving throughout college is the smart thing to do; automate your savings whenever possible. Leaving it in a bank or taped to the back of the toilet, however, isn’t always the best choice. If you’re not swimming in student debt or fishing coins from public fountains, it’s a good idea to start investing.

Before you jump in and make rash decisions, read up. Use the library and find out what will work best for you.

Whatever path you choose, start small. Diversify your investments, and plan on a regular schedule. By investing early, you garner one of the greatest advantages: time. Even if your investments are small, they will grow with time.

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