Tag: Saving

Spending Plan Tips for Graduates

Congratulations! You finally made it and graduated, and now it’s time to face a different world. And that includes planning to spend your money. Keep the following spending plan tips for graduates in mind as you get out in the world and start working your first real job.

Use a Spending Plan and Plan your Spending

You are possibly going to have more money than you ever have. It’s going to be a smart move, on your part to plan to spend it. Money is good for three things, and spending is one of the three things, so it’s okay to spend just spend with a plan. 

Sit down with a piece of paper and a pencil and just write out where you are going to spend your money; how much, where, and what for. 

By doing this, you are creating a spending plan. Later you may want to move to a spreadsheet or app, but to start, use paper and pencil, keep it simple.       

Tracking Your Expenses helps You to Be More Aware

Track your spending if you want to manage your money better. There are lots, and lots of ways to track your spending…you pick one. You can track by app, spreadsheet, or on your phone, and it does not matter which as long as you track.

Record every expense every time.

Some expenses are just easy to forget. Here I am mainly talking about things automatically drafted, like the streaming subscription or maybe a credit payment. Car insurance payments every six months or once a year is another. Keep these expenses written down in your log so you do not forget them. And get a receipt from every place you shop or eat; this will help when it comes time to remember and record.

Also, contingencies and emergencies are going to happen. Do not forget to save for these. A good emergency fund will cover expenses for a couple of months and give you peace of mind.   

Again, congratulations! You have worked hard, sacrificed, and now it’s time to celebrate. After your celebration is over, start planning your spending and use these spending plan tips for graduates to creating a spending plan that works for you. It will benefit you as you grow in your career and life. Take care.   

Money is Good for Three Things

This spring as you are spending your money, keep in mind
the three things money is good for.  If I were to ask you what three
things money was good for what would you say? When I am
teaching how to create a winning spending
plan, I always ask this question and get a lot of different answers. 

Let me ask it in another way. 

The things you do with money, can be put into three categories, what are they?

When I ask this way, I always get similar answers.  Answers like It’s good for paying bills, buying stuff, saving, investing, and going shopping. 

And then I would say something to the effect of okay, we got spending and saving.  What is the third thing?  I put investing into the saving category. 

It’s interesting because at this point most of my students go blank.  Then
I ask again and say ok money is good for three things, spending, saving,
and…?  What are the three things we all do with money?

Most of the time I get no response and ask them to think about and move forward with the class.

My point in all of that is to say that it’s okay to spend your money. It’s yours, you earned it, and you should spend it.  Its okay to spend your money, but you should also spend it with a plan in mind.  My goal is to help you create a spending that helps you spend within some parameters. 

What Are the Three Things?

Simply put, money is good for three things: spending, saving, and giving.  Interestingly, sometimes when we talk about money, we forget about giving.  That is a discussion for another day. 

I am a Financial Coach, and I would like to help you navigate your finances and create a winning spending plan for you and your family.  Contact me
here, and we will do an assessment and get started improving your finances one GoldneRule at a time.  Take care.

This post is a repost from December 2021.

 

Money is Good for Three Things

My point in all of that is to say that it’s okay to spend your money. It’s your money, you earned it, and you should spend it but, you should also spend it with a plan in mind.  My goal is to help you create a spending plan to help you spend your money within some parameters. 

This holiday season as you, are shopping, keep in mind the three things money is good for.  If I were to ask you what three things money was good for what would you say?When I am teaching how to create a winning spending plan, I always ask this question and get a lot of different answers. 

Let me ask it in another way. 

The things you do with money, can be put into three categories, what are they?

When I ask this question, I always get similar answers.  Answers like It’s good for paying bills, buying stuff, saving, investing, and going shopping. 

And then I would say something to the effect of okay, we got spending and saving.  What is the third thing?  I put investing into the saving category. 

It’s interesting because at this point most of my students go blank.  Then
I ask again and say ok money is good for three things, spending, saving,
and…?  What are the three things we all do with money?

Most of the time I get no response and ask the class to think about and move forward with the class.

My point in all of that is to say that it’s okay to spend your money. It’s yours, you earned it, and you should spend it, but you should also spend it with a plan in mind.  My goal is to help you create a spending plan to help you spend within some parameters. 

What Are The Three Things?

Simply put, money is good for three things: spending, saving, and giving.  Interestingly when we are talking money, we forget about giving.  That is a discussion for another day. 

I am a Financial Coach, and I would like to help you navigate your finances and create a winning spending plan for you and your family.  Contact me
here, and we will do an assessment and get started improving your finances one GoldneRule at a time.  Take care.

Four Strategies to Help You Start Saving

Pay off high-cost debt.  The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates.  For example, if you have a $3,000 credit card balance at 19.8 percent, and you only pay the required minimum payment of 2 percent of the balance or $15 whichever is greater, it will take 39 years to pay off the loan. 

The personal saving rate in America in June of 2021 was 9.4%, which is a good rate of saving.  However, some families are not saving adequately for retirement, and lower-income households do not have adequate emergency savings for unexpected expenditures such as car repairs or medical bills. 

Saving must become a Priority

The mindset of saving needs to change.  Saving is an important part of financial security and a spending plan or budget can help you save. 

This can be done by setting saving goals and then developing a plan to meet the goal. 

Here are four saving strategies that may help get you started in the right direction:

  1. Pay off high-cost debt.  The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates.  For example, if you have a $3,000 credit card balance at 19.8 percent, and you only pay the required minimum payment of 2 percent of the balance or $15 whichever is greater, it will take 39 years to pay off the loan. 

With accumulating interest, you will pay more than $10,000 in interest charges.

  • Buy a home and pay off the mortgage before you retire.  The largest asset of most middle-income families is their home equity.  Once these families have made their last mortgage payment, they have far lower housing expenses.  They also have an asset that can be borrowed against in emergencies or converted into cash through the sale of the home.
  • Participate in a work-related retirement program.  If you participate in a work-related retirement program such as a 401k plan, with a dollar-for-dollar match, you will likely receive an annual yield of greater than 100 percent of your investment.  You save $100 and get $200 or more with the employer match.
  • Outside of work, save monthly through an automatic transfer from checking to savings.  These savings will provide funds for emergencies, home purchases, school tuition, or even retirement.  What you don’t see, you will probably not miss.

Once you realize that you need to save, develop a saving goal.  Then develop a plan to meet the goal. 

If you do not have an emergency fund, that should be your first goal.  Build up a $1000 emergency fund. 

By using the strategies above, you could, in no time, be on your way to meeting your goal and improving your financial situation.