General Finance — Beating Broke

9 Common Items for Guilt Free Regifting

December 23, 2019 By MelissaB Leave a Comment

Inevitably it happens. You open a gift from a well-meaning relative or coworker, only to discover it’s a gift card for a store you never frequent. Or it’s the third scarf you’ve gotten this season. Or it’s a pricey bottle of bourbon, and you don’t drink. Rather than be disappointed by the gifts that you receive, consider regifting them and saving yourself money. There are 9 common items for guilt free regifting that you should consider happily passing along to someone on your to-buy gift list.

9 Common Items for Guilt-Free Regifting

Gift Cards

Sure, you could sell the gift card, but an easier solution is to regift it. If you never shop at a certain department store but you know that your mother-in-law does, why not regift the gift card to her?

Before regifting, make sure the card hasn’t been used, that you know its exact value, and that your own name isn’t written on it.

Homemade Desserts

9 Common Items for Guilt Free Regifting — Photo by Mae Mu on Unsplash

‘Tis the season to receive homemade desserts, again, and again. You received peanut brittle and you hate peanuts? Simply take the brittle and create your own homemade goodie plate to give to someone else.

Gourmet Food

Gift baskets with gourmet food abound during the holiday season. These make excellent gifts, especially if you regift a meat and cheese basket to a man you know is on the Keto diet or a chocolate basket to your chocoholic office mate.

Personal Care Sets

You can easily regift personal care sets such as body lotions and lip glosses to any woman in your life, especially if you don’t know them well. The same goes for men’s gift sets such as cologne or hair gel.

Soap

Most people don’t buy or make fancy soaps for themselves, so these make a perfect gift for the person in your life who loves personal care items with a flair. This is also a great regift for those on your list that you don’t know well such as your child’s teacher.

Alcohol

Of all the regifts, this is likely one of the best ones to give. Plenty of people would appreciate receiving a bottle of alcohol, especially high-quality alcohol, for a gift.

Books

As long as you haven’t read it and the book still looks brand new, consider regifting it to your favorite bibliophile.

Pen Sets

A fancy pen set is on my list of the most boring gifts ever, but some people really like having a fancy pen that writes smoothly. Consider regifting this to the academic or business person in your life.

New Clothing

If you receive gloves, scarves, hats, etc., these make the perfect gifts to regift because they’re fairly generic. Just make sure the price tag is still on and the item is in pristine condition.

Regifting, when done well, i.e. carefully considering if the other person would actually like the regift rather than just giving it to her because you have to give her a gift, can offer several benefits. First, you get rid of a gift you don’t want or need. Second, you save money by not buying an additional gift. Third, you help the environment by consuming a bit less because you’re passing on your unwanted gift rather than buying a new one.

The holiday season is the time when most people regift. However, don’t forget, you can also regift for birthdays and housewarming parties. Perhaps save one bottle of alcohol as a gift when you’re invited to a dinner party.

Zero Net Worth: The Next Steps After Beating Debt

December 9, 2019 By MelissaB Leave a Comment

Debt can feel like a heavy shackle around your neck, weighing you down and making every movement difficult. The funny thing about debt is that you may not even realize that you feel this way until the debt is paid off. Then, you suddenly feel free and light, as if you can do anything! When you reach zero net worth the next steps after beating debt are imperative for a financially secure future.

Zero Net Worth: The Next Steps After Beating Debt

Celebrate (A Little)

Most people’s natural tendency is to splurge once they pay off their debt. Maybe they take an exotic vacation or just increase their standard of living.

While it’s okay to celebrate, do so in moderation. Achieving zero net worth is a fabulous milestone, but don’t erase all of your hard work by immediately living above your means and slowly putting yourself back into debt again.

Zero Net Worth: The Next Steps After Beating Debt — Photo by Jeremy Bishop on Unsplash

Decide on a splurge amount that you want to spend, and go ahead and spend the money. But after you’ve spent the amount you decided on, get right back to being financially disciplined and increasing your net worth.

Establish an Emergency Fund

You likely have a tiny emergency fund, if you have one at all. That was understandable while paying down debt. Now that the debt is gone, it’s time to make your future more secure with an emergency fund. In general, a six-month emergency fund is a good goal. However, if you’re the primary breadwinner or if your job is based on commission or not secure, you may want to have a nine-month emergency fund.

Create Sinking Funds

Zero Net Worth: Steps to Take After Beating Debt — Photo by Max Rovensky on Unsplash

At the same time you’re building your emergency fund, I’d also recommend creating sinking funds. Sinking funds allow you to save for future expenses, helping you avoid going into debt in the future. Let’s say you think you’ll need a car in four years. You plan to buy used and think your car will cost $20,000. Each year, you’ll want to save $5,000 for that car or $416 a month. You’ll set that money aside every month just as if you were paying a regular bill. When you’re ready to buy your car, you’ll be able to do so with cash.

Sinking funds can also be created for smaller expenses such as a vet fund for your dog. When he needs to see the vet, you’ll have the funds to pay cash. Other common sinking fund categories are home repairs, home improvements/decoration, car repairs, and medical bills.

Start Saving for Retirement

Unless your employer matches your retirement contributions, I’d start contributing to your retirement fund AFTER you have a six-month emergency fund and sinking funds established.

If your employer does match, I would start investing right away up to the amount that your employer matches. So, if you make $50,000 a year, and your employer matches the first 3% of your salary for retirement contributions, I’d go ahead and invest the $1,500 a year (3% of your salary). Your employer’s contribution will double your amount to $3,000 a year. Definitely take advantage of that offer for free money.

Final Thoughts

Congratulations! Paying off all of your debt is a huge accomplishment. Now that you have zero net worth the next steps after beating debt are crucial to your future financial security. If you take these steps, you’ll be on your way to a solid financial future.

Things to Avoid When You’re Broke

November 25, 2019 By MelissaB Leave a Comment

Things to Avoid When You're Broke

Most of us have been there. You have three dollars in your checking account, and it’s five more days until payday. You may feel overwhelmed and not sure what to do. Unfortunately, many people in this circumstance feel that there is nothing to be done and, out of desperation, ignore their situation – continuing to live life as if their finances aren’t dire. However, all this does is make the situation worse. Instead, consider things to avoid when you’re broke so even if you’re not improving your situation, you’re not making it worse.

Things to Avoid When You’re Broke

Using Credit Cards

When you’re broke, credit cards can feel like a lifeline. For a while, at least until you reach your credit limit, you can continue to maintain your current lifestyle. But, this is a mistake! You’re broke! If you admit that and are frugal with your money, once your current financial hardship ends, you’ll be in a position to improve your finances. However, if you have to pay back thousands of dollars of debt, you’ll still be broke. Please don’t make this mistake.

Paying for Entertainment

Entertainment is expensive. Movie tickets cost $10 or more; a meal out costs $10 to $40, depending on where you dine. Netflix costs $13 a month. All of these expenses add up over 30 days. If you’re broke, don’t pay for your entertainment!

Go to the library and check out a movie for free. Attend a local free concert at the university. Invite friends over for board games.

Nobody says you can’t have fun when you’re broke, but find ways to be entertained that don’t cost any money.

Not Having a Budget

Burying your head in the sand is easy when you have no money. If you ignore the situation, it won’t exist, right? Wrong. Ideally, you should be budgeting every month, but this is even more important when you’re broke.

You have limited money, and you have to decide where that money should go. When you have a plan that you can follow, you’re much more likely to not overspend. Having a budget and following it is absolutely necessary when you’re broke so you don’t make your financial situation worse.

Hiding Your Situation

Don't Do These Things When You're Broke — Photo by Ali Tareq on Unsplash

Being broke is embarrassing, but being honest with your family and friends is the best way to handle the situation. If you’re not honest and you pretend that everything is fine, your friends may be offended when you repeatedly turn down invitations. If they know your situation, they may be more willing to find things you can do together without putting a financial strain on you.

Things to Remember When You’re Broke

Even though at the moment you may feel hopeless, remember that you’re likely not going to be broke forever. You will get a better job or have fewer expenses in the future (probably the former rather than the latter). Your financial situation will improve, but that improvement can come faster if you make sure to consider these things to avoid when you’re broke. Don’t make your future more difficult by making bad money decisions when money is tight!