Beating Broke

Make Improving Your Finances Your Part-Time Job

September 20, 2023 By MelissaB Leave a Comment

Imagine you give all the money you make in a month to an accountant and ask him to manage the money for you. However, at the end of the month, he can’t tell you where the money went, just that it’s gone. You’d likely be highly upset and fire the accountant. Yet, that’s how millions of people handle their money. You can’t fire yourself, but you can educate yourself and make improving your finances your part-time job.

Are You Like Most Americans?

When is the last time you took a vested interest in your own finances? Do you make a budget every month? Do you track how much you spend each month and on what? If you don’t, you’re not alone. In fact, approximately 60% of Americans don’t have a monthly budget (Business Insider).

How much time have you spent reading personal finance books and articles in the last year? Learning about investing? If you’re like the average American, the answer is not much.

Instead, many of us spend time doing activities that really don’t help us much in the future—scrolling through Facebook and Instagram, watching our favorite tv show, having a Netflix binge, talking on the phone or texting.

Make Improving Your Finances Your Part-Time Job

What if you used just a fraction of that time to improve your finances? How different would your financial situation be a year from now? Five years from now? Ten years?

If you’re finances aren’t in the shape you’d like, why not challenge yourself to make improving your finances your part-time job?

What Is the Weekly Time Commitment?

Don’t worry, improving your finances isn’t going to take a lot of time. I’m just asking you to set aside two to four hours a week to improve your finances. You won’t be sorry.

Make Improving Your Finances Your Part-Time Job — Photo by Kelly Sikkema on Unsplash

What can you do in that amount of time? Plenty.

Set up a budget
Track your spending
Pay your bills
Call your credit card company to get your interest rates reduced
Investigate refinancing your student loans, and if doing so will save you interest, actually refinance them
Read a personal finance book
Call your internet and cable provider to get your monthly bill reduced
Investigate house and vehicle insurance costs and change companies if you’ll save money and get the same coverage
Get an assessment on your home to potentially lower your property tax bill
Learn about investing
Take free online personal finance classes
Invest some of your money
Sell some of your unused items on Craigslist or Facebook
Listen to personal finance podcast
Start building passive income (stocks are good for this)

This is only a small list of things you can do when you start your part-time job of managing your money, yet you can reap serious financial rewards.

Tools to Use

If you’re new to taking an educated, methodical approach to improving your finances, there are many places to go to learn more. There are also many tools available.

You Need a Budget (YNAB)

For the last four years, I’ve been budgeting using You Need a Budget (YNAB). I’ll admit, there’s a bit of a learning curve to using this software, but there are many free online trainings you can watch that cover every aspect of how to use the software. There’s also an active Facebook group, YNAB (You Need a Budget) Fans, where you can find quick answers to many of the questions you might have about the software.

If you’re interested in trying YNAB, you can sign up for a 34-day trial for free.

Morningstar Free Investing Classes

Don’t know the first thing about investing? Don’t worry. That’s how everyone starts. When you make improving your finances your part-time job, investing is an important concept to master. Morningstar offers a number of free classes that cover a wide-range of topics:

Stocks,
Funds,
Portfolios,
Bonds,
ETFs,
Retirement, and
Planning

To access these free courses, simply sign up for a free Morningstar account.

The Library

Another excellent, free place to learn more about money management and investments is the library. You can find so many books there that will teach you about improving your finances! Some of my favorite money management books include:

I Will Teach You to Be Rich by Ramit Sethi,

The Money Book for the Young, Fabulous and Broke by Suze Orman,

How to Make Your Money Last by Jane Bryant Quinn, and

Is Your Child a Money Master or Money Monster by Sunny Lee (excellent book for teaching your children in a natural way about money management)

All of these are available on Amazon, and if you get a copy of the book, the site will get a small commission that will help keep the lights on.

YouTube

You can find many money management and investment videos on YouTube. Just be sure to first check the credentials of the person offering advice. Anyone can put up a YouTube video.

I sometimes enjoy watching Dave Ramsey videos (though not when he goes on tangents).

If you’re new to budgeting, there are people on YouTube who share their budgets every month. One person that many people find inspiring is The Budget Mom. She shares her budget each month and also does a recap at the end of the month.

Make It Fun

If the idea of spending a few hours a week on personal finance makes your eyes glaze over with boredom, try to make the time fun. Set aside a certain time, maybe Saturday morning, or a few minutes every day. Get comfy and make your favorite drink and settle in to work.

Investing Time Now Means You’ll Save Time Later

Remember, as you increase your financial education, you won’t need to spend as much time on your finances. Maybe initially you’ll spend four hours a week or 16 hours a month, but a year or two down the line, when your finances are better and you know more, you may only need to spend two hours a week or eight hours a month.

As your financial situation improves, you’ll likely have more incentive to keep spending a little time each week working on your finances.

Try it. What do you have to lose except a better financial future?

How much time do you spend every week working on your finances and growing your financial knowledge?

Are You Teaching Your Kids to Follow Your Financial Habits?

September 18, 2023 By MelissaB 9 Comments

My oldest is 10, and he does chores around the house to earn an allowance. He works hard, and we’ve taught him to set aside a percentage for investing (10%), for saving (20%), and for giving (10%). That leaves him to spend 60% of everything he earns.

And spend he does!

He finds it extremely difficult to let his spend money sit and grow so that he can buy something bigger. Instead, as soon as the money hits his hands, he wants to spend it even if it’s a fairly insubstantial amount and can’t buy him much.

He just can’t seem to save up for the things he wants.

Instead, he’s enticed by advertisements. He reads the newspaper and magazines to find free catalogs to send away for, and then he wants to spend his money on any little thing.

It’s driving me crazy.

His money, his life. I should let him spend the money and be disappointed when he has no money to spend later.

Actually, that’s already happened. When we first moved to Arizona, he saw a 2015 calendar at Costco for $15. This calendar had scenic landscapes of Arizona and was quite pretty. I told him to wait because as 2014 came to a close, he could get calendars cheaper. But he couldn’t wait, and then in December and January, he was disgusted to find how cheap calendars got.

Still, his behavior hasn’t changed.

As a parent, I wonder how much I should interfere.

You see, when I was young, I was just like my son. I spent every Saturday at the mall, my money burning a hole in my pocket. I HAD to buy something, even if it was just a pair of socks I didn’t need. Every week, I walked through the same stores, buying stuff I didn’t need, just like my son buys the stuff he doesn’t need now.

However, my mom never stepped in. She gave me a wide amount of freedom. Whatever money I earned was mine to spend how I liked. She didn’t even ask that I set aside a portion of it for savings.

I was a responsible kid and bought my own car, paid my insurance, paid for gas, and also bought my own clothes. I think she figured that I was handling my money well, so it was up to me to decide what to do with the rest.

When I was a teenager, my friend and I used our money from our job to go out to eat and see a movie every Friday. Sometimes we’d go out to eat on the weekdays, too.

What a waste!

Imagine if I had instead invested just a small portion of that in a Roth IRA. Or if I had saved it to pay for part of my college education. Maybe I wouldn’t have graduated with $25,000 in student loan debt.

Even now, I have a hard time saving, though I am getting much better. I’m finally able to stick to a budget and make saving a priority. It’s taken me 40 years to break bad spending habits that I learned in childhood. Let’s be honest, getting a hot deal isn’t really a deal if you don’t need the item and it robs you of the ability to save.

I want to teach my son this lesson now, so he can be more financially responsible than I was for many years. But that lesson is oh so hard to teach.

How much do you guide and interfere in the way your child chooses to spend money?

For More Great Reads, consider checking out Kidwealth.com and kidsaintcheap.com.

How Being a Smart Driver Can Help You Control Your Finances

September 13, 2023 By Erin H Leave a Comment

Side view of an elderly man in glasses driving a car on a sunny summer day

If you find yourself struggling with debt and financial uncertainty, taking control of your finances may feel unobtainable. However, the feelings of discomfort shouldn’t make it feel unessential. One often overlooked aspect of regaining financial stability is becoming a competent and responsible driver. Your choices behind the wheel can have a notable impact on your budget. Consider being a smart driver to gain control of your financial situation.

Lower Insurance Costs

When you’re in a financially precarious situation, every dollar counts. One of the most direct ways to save money is with a reduction of your insurance costs. Responsible driving behavior includes obeying traffic laws and avoiding accidents. If you want to keep your insurance premiums low, you should maintain a clean driving record. The less you spend on your insurance means you have more money to budget.

Focus on Fuel Efficiency and Savings

Fuel expenses are a hefty chunk of your monthly budget. Being a smart driver includes adopting fuel-efficient habits. You may be surprised to find that keeping your tires properly inflated keeps your vehicle fuel-efficient. Driving at a moderate speed and keeping your car maintained also help you save at the gas pump.

Another consideration is adding a turbocharger, which can save a significant amount on fuel. According to AutoDeal, turbochargers can magnify the efficiency capabilities of an internal combustion engine by anywhere from 10% to 30%. Talk to your mechanic about installing a turbocharger in your vehicle to learn more about the costs associated with this service.

Minimize Repair Expenses

Regular maintenance and responsible driving can reduce the likelihood of costly repairs. Expensive repairs can add up quickly and become a significant financial burden for someone requiring control of their finances. If you are looking to extend the life of your car, seek assistance whenever an issue arises with your vehicle.

Reduce Risk

Motor vehicle accidents pose a risk to your physical health and financial stability. According to Just Great Lawyers, there are more than 2.3 million people sent to the hospital from motor vehicle-related injuries each year. Responsible driving can greatly reduce the risk of accidents. To reduce the chances of high medical bills, avoid distractions and stay focused on the road while driving.

Choose Affordable Transportation

If you’re facing financial difficulties, reconsidering your methods of transportation may make all the difference. Owning and maintaining a car can be cost prohibitive. If possible, explore substitute options like carpooling and public transit. These services reduce the financial burden of vehicle ownership.

Be cautious when looking for financial help through a loan. In challenging financial times, some individuals turn to high-risk financial options like car title loans. These loans require your vehicle as collateral to borrow money. According to BankRate, they often come with exorbitant interest rates, as high as 25% to 50%. Take the time to consider all of your options before taking on a loan such as this to avoid falling further into debt.

Smart Budgeting

Creating a budget is primary to reclaiming control of your finances. Being an intelligent driver should be integrated into your budgeting efforts. Allocate a specific portion of your budget for vehicle-related expenses. You want to be sure to include insurance, maintenance, and potential repairs. When you’re able to stay within the parameters of your budget, you can manage your finances more effectively.

Being a competent driver means making responsible choices that align with your financial goals. When you give your attention to actions related to safety and fuel efficiency, you can reduce your expenses. These aspects of being a smart driver contribute to your financial well-being. Even when faced with challenging condition, you can recover control of your finances.