Budgeting

How Do You Budget With Irregular Income?

March 25, 2020 By Trey LaRocca Leave a Comment

Sometimes it feels like the only thing I write about is budgeting. This is something I am extremely proud of. Budgeting is one of the most valuable disciplines one can master in life, and it can bring balance and peace to so many other aspects of life. Some people, though, struggle to get a solid monthly budget plan because they have no idea when or what they will be paid. Commission workers, small business owners, and independent contractors all have widely varying payment schedules and amounts. This can cause stress when coming up with a monthly budget when there is no real solid “monthly income” figure. No need to fret, though; we are here to help. there are ways to strategize and work around this obstacle, and we have some ideas. So, without further adieu, this is you budget with irregular income.

Cost Deduction Method

The Cost Deduction Method is really a fancy name I am using to flip the roles on traditional budgeting. Where your monthly income is usually the anchor to your budget, cost deduction makes your monthly expenses the new focus. Instead of subtracting figure after figure from your monthly total income, you add up your expenses starting with your needs. The way this works in practice is you mark down the bare necessities, and you dedicate all of the money you make to those until your income surpasses them. After which, you check those off. Then, as the income starts to move past those expenses, you move to the traditional strategy of deducting from income, except you use the difference between the cost of your needs and your total income for that month.

Priority List Method

This one is much simpler. The priority list method involves making a list, in descending order from most important to least important, and marking down their costs next to them. As your income comes in, you start to check things off of that list, and you stick to the order. The great thing about this method is that you organize your priorities when you are in a logical and rational mental space. After doing this, it is pretty much on autopilot. You have already decided how you are going to spend your money, and once you have exhausted the list, everything is extra to be saved! This one is similar to the first in the sense that you are using expenses as your anchor point, which takes the stress out of trying to predict what your monthly income will be.

In Summary

Despite the fact that there are only two options here, I really think there is something for everybody. Budgeting should be simple, and these are two very simple ways to get it done. I’m not going to try to make you do financial gymnastics, as that is really the fear assigned to budgeting in the first place. Just pick a method, and let the tools do the work. This will make your finances feel much less unpredictable, and bring a lot more stability in your life.

Want to Save Money on Your Electric Bills? Follow These 3 Tips!

March 24, 2020 By Trey LaRocca Leave a Comment

Depending on where you live, your electric bill could vary pretty widely. For many in the US, though, it becomes a major burden on a monthly budget. With summer coming down the line, a triple-digit bill in the mail is a reality for a solid portion of the population. With so many looking down the barrel of this issue, it is important to know how to cut these costs without living like a caveman. We don’t want anyone sweating like mad in their living room, and we aren’t gonna have you unplug everything in your place when you aren’t using it. With that said, here are our 3 tips on how to save money on your electric bills:

Get a Smart Thermostat

This one benefits you in two ways. The first is that many electric and gas companies will give bill credits for customers that buy a qualifying smart thermostat. These credits can pay for a substantial amount of the cost incurred by getting the device, and make sure to check how and if your providers participate in this kind of program before buying. The second way is the more obvious one: they are smart. These thermostats give you the ability to change and monitor home temperature from anywhere. They also often use a function that automatically turns off your climate control when you get far from home and turn it back on when you get back inside of the “geofence” radius. All of these functions work in the background to save you money on your electric bills. Not only are smart thermostats convenient, but they also save you some serious cash.

Use Your Windows

Sometimes when your house gets a little stuffy, it is still reasonably comfortable outside. The instinct to hit the thermostat is a strong one, but before you do, pop outside for a second. If it is still pretty nice and cool outside, consider just opening windows and sliders to get some airflow in. Use a fan in or near one of these windows, and see if that does the trick. Oftentimes this will serve the same purpose as the AC without the same hit to the budget. Not only that but it also just feels better to get some fresh air in the home, as stagnant air can often feel far more stuffy and muggy than what comes in from the window.

The “Dark Hour”

A really useful technique, financially and otherwise, is to take an hour every day to turn everything off. If it has to happen at night, a light or two is fine. The point of this time is to get off the screens, shut down all the tech and sit and enjoy your family. If you live alone, take some time to read a book or clean the place up a little bit. Hell, shut off the lights in the bathroom and take a relaxing candle-lit bath and just relax. This can be beneficial in so many different ways, so much so that the financial benefit is really just a bonus. this one is my favorite, as it costs nothing and really helps you connect with yourself and your family.

How to Pay the Bills During the Coronavirus Pandemic

March 23, 2020 By Amanda Blankenship Leave a Comment

As the coronavirus spreads across the United States and cases increase by the day, more people are getting laid off from their jobs. Some businesses are closing due to government restrictions in the area. For instance, many cities have restricted all dine-in business for restaurants. Because of this, many people are without work and are left wondering how to pay the bills during this crisis.

How to Pay the Bills During a Pandemic

It is not yet clear what the stimulus package in the U.S. will look like to help the American people, and the economy, recover from this. If you are looking for immediate relief or help, the following tips will help you figure out how to pay the bills or make arrangements for your finances.

Contact your mortgage lender. You may be eligible for a reduced mortgage payment or a complete pause on your payments altogether. Call your lender and discuss what options may be available to you. Important: Do not wait until you start missing payments to call.
Apply for forbearance or deferment on your student loans. Many student loan borrowers saw Trump’s announcement that he would waive all interest on student loans during the crisis. That doesn’t mean you don’t need to still make payments though. If you’re having trouble making payments, you can apply for deferment or forbearance for your loan. Read more here.
Call your utility companies. Yes, even your electric, water, gas, etc. will be able to work with you on payments at this time. If you are out of work and really hard-up for money, many of these companies will allow you to make partial payments, if needed. You may also qualify for free or reduced utility prices based on your income.

Lastly, many businesses and large corporations are putting a pause on any action they may typically take against delinquent accounts. For instance, Bank of America has paused all of its evictions, foreclosures, and repossessions until after the coronavirus pandemic has calmed down. That being said, you still should call and discuss your options with the lender/company.

Conclusion: Communication is Key

We, as a nation and as human beings, are all going through this together. Remember if you are calling a customer service line that they are likely dealing with high call volumes, not to mention their work environments have likely changed as well. Communication and kindness will go a long way during this time.

Lastly, if you find yourself out of work at this time, consider looking for a side hustle or another way to generate income during this time. We’ve compiled a list of 38 ways to make money on the side here.

Never Pay Full Price For a Cell Phone Again With These Tips

March 18, 2020 By Trey LaRocca Leave a Comment

Cell phones are extremely important devices in this day and age. Sometimes it can feel like our entire world revolves around our phones. Work, school, friends, and family are all readily available at the touch of your finger. This makes having a reasonably current phone pretty dang important. The struggle here, though, is that you are often forced to pay out the nose to get a new phone. So, how do we make sure your phone is current and wallet-friendly? Here are the best tips to make sure you never pay full price for a cell phone again.

Used Market

Just like any tech purchase, the used market is a great place to start. Oftentimes, you don’t need the newest phone to stay current, and you can absolutely land a very similar experience from a generation older. This opens the door to great prices on the used market, where you can easily save half the cost of a new phone. Make sure you buy from sellers with good reputations on whatever marketplace you use, and verify the phone works before sending any sort of payment. This will ensure you get the best value without having to pay any installments on the phone itself. the best part about this one is you can always sell the phone for pretty close to the price you purchased it if you don’t like it.

Holiday Deals

Patience is a virtue, and you should use this to your advantage. Cell providers almost always have new-plan discounts around the holidays, and they can be very aggressive. So, if you are making your purchasing decision, and you have the ability to wait until the nearest holiday, definitely do so. This will allow you to roll the phone’s value into your cell payments if you don’t have the cash on hand. It also means you’ll have a brand-new phone, which matters a lot for some people.

Phone Leasing

Leasing is a touchy subject for most financially-inclined folk, but I think a phone is a perfect lease. It isn’t something people tend to hold onto for more than a couple of years, and the lease allows you to pay far less each month to own the phone for as long as 2 years before upgrading. The great news is, they don’t tend to require down payments. After your 2 years, you could easily find the next new phone for a similar payment, making the next update move a lot smoother.

At the end of the day, there are a lot of great ways to accomplish your goal here. With these tips, you definitely should never pay full price for a cell phone again. Just be smart, keep your eye out, and utilize patience when making any buying decisions. All of these together, as well as knowing what you need out of your phone, will ensure that you never pay more than you should.

Streaming Services You Should Cut Out Now

March 18, 2020 By Trey LaRocca Leave a Comment

When it comes time to reign in your spending, the little things are almost as important as the big ones. While streaming services are nice to have, a lot of the time we end up paying for ones we barely use. Not only that, but a few of them even share common content that is available on other platforms. All of these are things to take into consideration when cutting some out to save money. To help make the decision a little easier, here are the streaming services you should cut out now.

The One You Forgot You Had

We have all done it. Maybe it started as a free trial, or just the one you snagged to binge on particular show, but they both ended the same way. You were checking your bank account, and you were hit with the “oh yeah” moment. Oftentimes this comes after months of paying for it without knowing it. Now, what some will do is say “well I paid for the month, might as well keep it and see what’s on.” Don’t be that person. If you forgot about it once, you’ll do so again. Cancel your subscription and enjoy the time you have left with it.

The One You Only Watch One Show On

Sort of ties into the top one, but this is for those who intentionally keep those subscriptions running. If you only watch one or two shows on the streaming service, there is no reason to keep it running year-round. If the premier of a season really sneaks up on you, it doesn’t take more than 5 minutes to start your plan back up and watch to your heart’s content. Don’t waste $200 on something that should only need to cost $15-30.

The One With A Bunch of Projects “In the Works”

The name of the game for most streaming services is original content. The quality and quantity of exclusives is what really sets each one apart from the others. If you end up paying for one that is slow to put out new stuff, you can always cancel and start back up when they have actually finished a few things up. None of the big services really have a problem getting content out, but when it comes down to the wire, count out the original series that you actually must see as they come out on each service. Whichever has the lowest number can go for now, and you can catch their “in the works” projects as they come up.

At the end of the day, this decision will be different for everyone. For this reason, I have refrained from naming any specific services. I personally only subscribe to two streaming services, because I only watch a few shows. I understand that others have a lot of different things they like to see, though, so my recommendations won’t exactly help much. Just keep these factors into account, and make sure you aren’t just buying up every service until you end up essentially paying a premium cable bill.

$100k Salary and Broke: 7 Steps to Change Your Financial Picture

March 4, 2020 By Trey LaRocca Leave a Comment

So, you’ve got your first big job (with a big paycheck), yet you still find yourself having no money after expenses? You’d be surprised how many people find themselves in your situation. As people make more money, their spending tends to ramp at a similar pace. The best way to mitigate this (other than maximizing you income) is to track and trim your spending. To help you do this, here is a quick 7-step roadmap on how change your financial picture:

Step 1: Price Out the Big Stuff

The first step to cutting spending is to figure out what is eating up most of the budget. These are expenses like rent/mortgage, car payment, big bills, etc. Anything that totals over $100 is written down under this category. When I say written down, I mean break out a pen and paper and write them all down– big! Calculate how much these things cost and put the price next to the corresponding expense. Try to put them in descending order based on price to keep it organized.

Step 2: Check for Rats

The big stuff is easy, but the little things add up. Just like rodents, small splurges on eating out and hitting the vending machine at work can infest your expenses. Set some traps, and write down all expenses under $100 in this category. Leave one or two lines empty in between to keep these separated from the big guys.

Step 3: Total it Up

This one is fairly simple. Simply add up all of your spending for a month and total it up. Compare this with your actual income, and evaluate how much you are left with. Disappointing, right? That’s what we are going to fix.

Step 4: Qualify

Now, next to each expense on both lists, put a star down next to each thing you absolutely need. Most of these will be on the big-ticket list, like rent and bills, but things like haircuts and filling up the gas tank count too. Anything you couldn’t (or shouldn’t) reasonably go without gets a star. Note: This can include date nights if you have a significant other, but keep it to once every couple weeks if you can. Things that don’t get a star are Netflix subscriptions, fast food stops, or random gifts to yourself. These are nice-to-haves, not need-to-haves.

Step 5: Total it Up Part 2

Total up your need to haves, then subtract it from your total expenses. Wallow in shame for a moment, then shake it off– we have work to do.

Step 6: Set a Goal

Now that you have calculated the amount of “extra” spending you do, you can figure out how much needs to change. Set an initial goal of a 20% decrease in this final number. After you’ve done that successfully, crank it up to 35%. After that one, 50%. You see where this is going. Do I expect you to get it to 0%? No, and neither should you. When you make six figures, your job probably ain’t the easiest gig in town. You deserve to let loose every once in a while. This is just meant to help you prioritize the ways you want to spend, and shed light on the little snack demons that are plaguing your income.

Step 7: Count Your Stars

Still not seeing enough of a difference in your leftover income? This probably means that your “needs” either aren’t all necessary, or (more likely) they are overpriced. Paying $700/month on a fancy car that is rapidly losing value? Get out while you can. Buy used and save that “new car” premium. Decided that every “date night” has to include Ruth Chris and a hotel stay? Relax a little, you’re trying too hard. Nice things are nice, but being broke isn’t. Enjoy your money, but practice restraint so you don’t have to stress every month when the bills come around.