Search Results for: life insurance

8 Ways to Save For an Engagement Ring Without Going Broke

March 24, 2021 By Justin Weinger Leave a Comment

When you’re ready to ask the big question, the thing that can be a little daunting is figuring out how to afford a ring. Living the broke life means you probably don’t want to get a high interest loan, or add more debt to your credit card, so what can you do instead? You can save. If you haven’t started saving yet, now is a good time to start. Because if you want her to say, “I do”, you’ll probably want to put a ring on it.

Set a Budget

Start with a reasonable (for you) budget in mind. If you’re slinging burgers and hustling Uber rides for money, it’s likely that a $10,000 ring isn’t right for you. While old-school experts say you should plan to spend 2-3 months salary on a diamond, new research shows that’s not the case anymore.

The truth is, you decide on a budget that works for you. Pick a number, and plan to stick to it. It can be easy to get carried away later on, but if you know how much you have to spend, it becomes easier to stick with the budget.

Split it Up Over Several Months

If you’re thinking about marriage but not ready to ask just yet, it’s a great time to start setting aside money each month. Once you’ve figured out how much you want to spend on a diamond ring, you can figure out how much you need to have on hand. Let’s say you want to spend $2400, you would need to set aside $200/month to have enough money for it in a year.

Be a Cheap Date

Setting financial goals, means you might need to make some sacrifices. If you aren’t already frugal in some areas of your life, it’s probably time to start so you can get that ring. There are plenty of ways to go out with your loved one without spending a fortune every time. Go out to eat less each month. Rent movies instead of seeing them at the theater. Don’t splurge on expensive trips.

Find Affordable Rings

The truth is you don’t need a ring with a diamond the size of the crown jewels to pop the question. Princess cut engagement rings are one of the most affordable cuts and one jeweler, Diamond Nexus, has several sparkly options for under $1000. If you got frugal enough, you could save for one of these beauties in just a few months.

Automate

It’s hard to spend your money if you can’t see it in your bank account. Automate your saving using the tools your bank offers or even using an app. Forbes mentions in this article that one of the best ways to save money is through automation. Some people even use apps that round up their savings. It’s a great way to set aside your “spare change” from purchases you already make.

Check Your Entertainment Budget

If you’re paying for 7 streaming services plus cable, internet, and 14 other subscription services, maybe it’s time to say goodbye to some of these or try to do more free and outdoor activities. Once you fill your time with sunshine, maybe you can say, “see you later.” Some people save as much as $300/month by cutting subscription services or getting smaller cable and internet packages.

Change Your Insurance Company

Insurance costs a lot of money over time. There is insurance for your home, your car, your health, and even your death. One way to cut costs to save up for that engagement ring is to switch insurance companies. While you may not be able to choose your health insurance, you can save big when you switch your car, home, and life insurance. Some people are overpaying on these important items by thousands of dollars a year.

It’s easy to save up for your engagement when you put your mind to it. The best thing about saving up and paying cash for a diamond ring is the peace of mind you gain by not having to worry about paying for it later. You can get down on that knee and ask for her hand in marriage without the dark cloud of debt. And with these good savings practices put in place, you’ll set the stage for a healthy financial future in your marriage.

How to Handle Financially Toxic Parents

September 14, 2020 By MelissaB 20 Comments

Your parents should provide for you as you grow up, but what happens when they ask you for money? Should you give money to your parents? The answer to how to handle financially toxic parents depends on both you and them.

Reasons Your Financially Toxic Parents May Need Money

There are many reasons your parents may ask you for money. Some are valid reasons, and others, not so much.

A Job Loss

Sometimes the unexpected happens. Your parent may find him or herself out of a job and in need of money. Our neighbor, Rob, worked hard all his life. Because he married young and he and his wife had children in quick succession, Rob never got to go to college. He worked as a janitor. While he and his wife were responsible with their money, they just didn’t have much money. They couldn’t establish much of an emergency fund because his income just paid the bills and covered the expenses of his seven children.

When Rob was 59, he lost his job. At that age, he had a difficult time finding a new job. In this situation, helping your parents out, if you’re financially able, is the right thing to do.

An Unexpected Funeral

How to Handle Financially Toxic Parents — Photo by Rhodi Lopez on Unsplash

If your parents no longer have life insurance and one dies, how does the other pay for the funeral? Funerals can run upwards on $10,000 or more. If your surviving parent doesn’t have the money to pay for the service and burial, contributing to this expense can be a nice gesture.

However, it is always better to plan for the future. If your parents don’t have a life insurance plan, talk to them directly. Remember, it’s never too late to have a policy. Burial insurance can be a savior by covering the funeral costs. Burial life insurance is nothing but a permanent whole life policy with small death benefits. Insurance experts also call it final expense insurance, funeral insurance, etc. You will be surprised to know that most of the big companies provide burial insurance for seniors. So, if your parents don’t have a policy yet, inspire them to have one and prepare for the unexpected.

For Younger Siblings

My friend, Joan, became friends with another girl, Leslie, in high school. Leslie had an unstable home life and eventually moved in with Joan and her family. When we all graduated high school, Leslie went to college for engineering and also worked full-time to support herself.

At regular intervals, Leslie’s mom, who still had four younger children at home, called Leslie and asked her for money. For years, Leslie gave money to her mom because she felt guilty. After all, her stepdad had just left, and her mom had to provide for the younger kids.

However, over time, her mother continued to spend irresponsibly, but Leslie didn’t feel like she could say no because if she did, her younger siblings would do without. Leslie begrudgingly gave her mom money until all the kids were out of the house.

Bad Money Management Skills

How to Deal with Financially Toxic Parents — Photo by allison christine on Unsplash

Now, I’m on the flip side and am old enough to have friends who have adult children. One of those “friends” (and I use the term loosely), Heather, continually writes on Facebook about her money troubles. These posts always appear as thinly veiled requests for money.

In the most recent post, Heather wrote about the financial troubles she and her husband have and went on to say that their 20 year old son, who is working two jobs and taking a full load of college classes, is giving them money to pay for their utilities and gas to and from work.

However, in that same week, Heather posted about going out to eat two different times and having a manicure and pedicure as well as getting her hair highlighted.

Say what?!

Should You Give Your Parents Money?

As an adult, if you find yourself in the awkward position of deciding whether or not to give your financially toxic parents money, there are a few questions you should ask yourself:

Can you afford it? Do you have the money to give your parents? Can you loan them money without causing your own financial hardship?

Why do your parents need the money? Are your parents in a truly tight financial spot because of unemployment, sickness or another issue? Or, do they have a history of mismanaging money and now, like so many times before, they’re in a bind?

Are they trying to change their situation? If your parents are facing financial difficulties, are they taking steps to try to improve their situation? Are they wisely cutting expenses and learning how to manage their money so they won’t be in this position again? You probably can’t give them advice here because they likely won’t listen, but you can recommend your favorite financial blogs or books to help them get a better handle on how to manage their money.

What does your spouse think? If your parents are routinely asking for money, your spouse may be annoyed or angry. After all, you’re giving away money that now can no longer be used for your own retirement fund, household needs, or for your kids. If your spouse is tired of you giving your parents money, please listen. The last thing you want to do is make your own marriage unstable to enable your financially toxic parents bad money habits.

Money arguments are the number one cause of divorce. Giving money to your parents frequently can definitely lead to tension and disagreements in your own marriage. Is enabling your parents worth it?

Should You Cut Your Parents Off?

If you do decide to lend your parents money, how often can you do so? You should set boundaries for the limit of your generosity in the beginning. Leslie, the girl I went to high school with, regularly gave her mother money for eight to ten years. Then, as her younger siblings grew up and left home, Leslie saw that her mother often caused her own drama and financial woes.

She cut her mom off about 15 years ago, and now she rarely hears from her.

I don’t know how long Heather’s son will lend his parents money, but I hope it’s not for too long. There’s no reason why a son should be financing his mother’s highlights and pedicures when he himself is working two jobs to pay his way through college.

Finally, if your parent is in dire financial straits due to addiction or gambling, you shouldn’t lend them money. Using tough love here would be the best advice.

Have your parents ever asked to borrow money for you? If so, how did you handle it?

Are you a parent? If so, have you ever asked to borrow money from your children?

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The Best Spacing of Children for Your Finances

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4 Ways to Make Sure Your Bills Get Paid On Time

June 24, 2019 By MelissaB 2 Comments

You’re busy. I get it. I’m busy, too, and sometimes I forget to sit down and pay my bills in a timely manner. However, I don’t want a ding to my credit score. Because I’m so busy with my kids and their many activities, and L.I.F.E., I use several strategies to make sure my bills get paid on time.

Here are some of my favorite strategies:

Set e-mail reminders.

For each of my credit cards, I have set up e-mail reminders. Depending on the company, I’m sent an e-mail reminder six to 10 days before my payment is due. I can’t tell you how many times these e-mail reminders have meant the difference between a late and on-time payment. Everyone should set e-mail reminders for their bills, in my opinion, especially if you have a very busy schedule.

Set up recurring payments to your credit card.

While I generally avoid setting up recurring payments to my checking account, I do advocate setting up recurring payments to credit cards. Why? If a charge is fraudulently applied to your credit card, the credit card company protects you. If the same thing happens to your checking account, your entire account could be emptied, and then you would miss other payments to other creditors and have to pay for bounced checks.

In addition, if you have a credit card with a rewards program, you could gain rewards simply for paying your monthly bills that you used to pay via check and snail mail. Those points can add up quickly when you’re paying your monthly recurring bills with credit cards. Just make sure to pay off your credit card each month.

Set up a special account for automatic payments from your savings or checking.

If you still prefer to set up automatic payments to your bank account, I’d suggest setting up a separate account just for automatic payments. Then, if there is an error on the vendor’s part, you don’t risk paying overdraft fees on your regular checking account.

I have one account that is devoted solely to automatic payments for my husband’s student loans and our life insurance (the only two payments I have set to auto pay from our bank account). These are both fixed expenses, so at the beginning of every month, I just schedule a transfer to that account so the payments can be deducted. Since I don’t use this account for any other purpose, there is no worry about not being able to make other payments or bouncing checks.

Keep all of your bills in one place.

If you’re still receiving bills in the mail rather than electronically, keep all of your bills in one place. If you use snail mail, also keep stamps there. Then, when you’re ready to sit down to pay your bills, you have everything you need right in one place.

What are your strategies to make sure your bills get paid on time? What suggestions would you add to this list?