Money Challenges

$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.

$1 A Day Savings Challenge

December 31, 2019 By Jeffrey Strain 4 Comments

If you’re looking to save a bit more money this year, an easy way to accomplish this is to do a $1 a day savings challenge. There are a lot of different challenges out there that try to catch your attention but even when they aren’t that complicated, they still aren’t nearly as simple as the $1 a day savings challenge. The concept is easy and straightforward. All you need to do is put away one dollar a day and at the end of the year, you’ll have an extra $365 in the bank. That’s all there is to it.

In fact, the hard part of this challenge is figuring out where to get an extra dollar a day. This shouldn’t be too difficult to figure out for most, but if you’re having trouble, using a random making money idea generator can help you come up with ideas to create that extra dollar a day.

This challenge is actually too simple for a lot of people. It’s so straightforward and easy that they don’t see a challenge in it. There are certainly a number of different ways to adapt this challenge to make it seem more complicated, but we hope you can learn how to embrace the simplicity that comes with this savings plan. Learning to relish the simple ways to save will make saving money a lot easier for every aspect of your life in the long run. In fact, while saving money is important, far more important is getting into the habit of saving a little bit (in this case, $1 a day) and forming that habit.

How Dollars Can Add Up

If you want to save more money, you can adjust the daily amount saved to increase your overall savings. If you opt for a $2 a day savings challenge you’ll end up with $730 at the end of the year. Still not
enough? The $3 a day savings challenge will net you $1,095 at the end of the year and the $4 a day savings challenge will put an extra $1,460 into the bank after a year. You can even try the $5 a day savings challenge to end the year $1,825 richer. There’s no need to stop there if you want to save even more money.

As mentioned above, while this truly is the easiest fashion to save money, there are some people who need a little something extra or some type of twist to make saving money more of a challenge. A couple of
good examples are the 365 penny a day challenge that will save you nearly $668 at the end of
the year and the classic 52 week money challenge that will help you save $1,378. If you’re looking for a $1 a day savings challenge more along these lines, that’s certainly possible as well.

$1 A Day Savings 52 Week Money Challenge

If you want to save approximately $2,000 for the year, there’s a simple way to accomplish this by combining the $1 a day savings challenge and the 52-week money challenge together. In this case, you would save $1 a day for 5 weeks, $2 a day for 5 weeks, $3 a day for 5 weeks, $4 a day for 5 weeks, $5 a day for 5 weeks, $6 a day for 5 weeks, $7 a day for 5 weeks, $8 a day for 5 weeks, $9 a day for 5
weeks and $10 a week for 5 weeks. Those 50 weeks will help you save $1,925 and then you can determine how much you want to save for the final two weeks of the year ($5 a week for the final two weeks will get you to $1,995 and $6 a week for the final two weeks will make your yearly savings $2,014).

This $1 a day savings 52-week money challenge is far more complicated than the $1 a day money challenge, but as we mentioned, there are some who find having to save different amounts each week more of a
challenge. This is when it’s important to understand what motivates you most when saving money. Both of these are year-long challenges which means you’ll need a lot of dedication and motivation to see them
through. Choosing the challenge option that can best appeal to what motivates you most will be essential to successfully complete either challenge.

Savings Tip: Cutting Down on Monthly Spending

October 16, 2019 By Susan Paige Leave a Comment

Without a proper budget and financial plan, it’s easy to spend out of your means monthly and find yourself in debt without even realizing it. Expenses can add up quickly, and you may end up spending more than you are making.

There are plenty of great methods to cutting down monthly spending that may be worth looking into when you find yourself needing to save money.

Get Some Extra Income

If you found that after creating your budget you do not have extra money to cut down on, another viable option is to get another part time job. This can be reselling clothes on a resell platform, or driving for a ridesharing app.

If you find yourself with some extra hours on the weekend, you can make some extra money to cover extra expenses! Getting a part time job bartending or waiting tables on the weekends could really potentially supplement your income, even if it is just a few extra hours during the week.

Another excellent option for getting an extra influx of cash is taking out a loan, specifically a title loan. This type of loan can let you keep driving your car while you pay off the loan and have some extra money for your budget.

Calculate What Your Spending Habits

Most people love to drink coffee in the morning. Whether it be from a big coffee chain like Starbucks or a tiny little café on your way to work, coffee expenses can add up quickly, and you can be spending over $185 a month on espressos alone! This can be an example of spending outside of your means.

One of the ways to manage your spending habits can be tracking your spending habits. An easy way to do this can be keeping a spreadsheet in your phone and recording what you spend, as well as tracking your automatic debits for more accuracy. Every time you go out to eat, or pay a credit card bill, mark it in your expenses category that matches what type of expense it is!

Create a Realistic Budget

When you find yourself in a financial pinch, sometimes one of the best steps can be creating a budget to understand your financial situation. The first step to creating a realistic budget it to start tracking your monthly expenses. Then, you can separate the expenses into two categories:

Fixed Expenses-These are expenses that do not change from month to month. They can be items like mortgage payments, rent, car payments, or utility bills.
Variable Expenses– These are expenses that will change from month to month. These are generally items like gas, eating at a restaurant, groceries, and entertainment.

By separating your monthly expenses into two categories, you are able to track what money you can save by seeing where you are overspending. If you are spending too much in your fixed expenses, consolidating bills or debt may be your answer.

If you are spending too much in the variable expenses, you may be eating out too much and need to start taking your lunch to work.

Get Control of Your Finances

With the right financial plan, you can get in control of your finances and help cut down on your extra spending!

For more on this consider reading our articles on:

The 52 Week Money Challenge

The 365 Day Money Challenge

The 52 Week Mega Money Challenge

Image source: Pixabay.

Savings Challenge: $1000 by Black Friday

October 2, 2019 By Flanice Lewis Leave a Comment

There are eight Fridays between now and Black Friday. Those are eight opportunities to save up for holiday shopping, especially if you budget or get paid weekly. If you get paid biweekly, you have four or five paydays to save up. If you don’t think you have room in the budget to save, then you’ll need to get creative to reach $1,000 by Black Friday.

Reaching your goal will be easier if you break it up into small chunks. Here are five ways to save $125 per week.

Easy ways to start saving are to cook more of your meals at home and use coupons for groceries. Also, bike, walk, or take public transportation instead of driving if it is more affordable. Skip happy hour and try potlucks at home to spend time with friends. Additionally, review your subscriptions and services you may not use. Cancel Netflix and sign up for free with a new email address for 30 days. You will have saved $12.99 already. If you don’t think that’s a lot, keep in mind that everything will be on sale for Black Friday so that $12.99 plus any interest earned can buy a toy, doll, action figure, coloring book, or pair of kids’ shoes. Dig deep into your budget to see where you can save.
Now is a good time to shop around for new car insurance, cell phone plans, or bank promotions. You can make hundreds of dollars by lowering your monthly expenses and putting the savings into a new account. If you decide to have $125 per week or $250 every two weeks direct deposited, you could have an extra $100 or $200 in your account by the end of November.
Sell items to earn $1000 without having to change your lifestyle. If you’re going to purchase the latest gadget, then sell your old one. You’re probably going to buy clothes and shoes, so make room by selling items on Poshmark. Additionally, You should sell things that still have tags because you will get more. Do you have any watches or other jewelry collecting dust? You can sell them on eBay. If you handmake items, sell them on Etsy. Some brick and mortar consignment shops will buy unused products from Bath and Body Works and Victoria’s Secret.
Extra Work. Side hustles are old faithful for extra money towards a goal. Wash cars, mow lawns. If you’re in the northwest where it’s already snowing, plow driveways and sidewalks. If your job offers overtime, take advantage.
Get a seasonal job. Many businesses hire seasonal workers. Some start earlier than others. Know that it will be two to three weeks before you receive your first paycheck. Plan to set all of the money earned aside for holiday shopping. If you know you want to purchase items at a particular store, try to get a seasonal position there. Many offer employee discounts, even during the holidays. I worked as an associate at Coach after college during the holidays. I started as a seasonal employee and became eligible for the discount and other perks in time for Christmas.

If you’re not into holiday shopping, this plan is an easy way to beef up your emergency fund or save towards a goal. These tips are useful for any dollar figure or event you’re planning. If you have an anniversary trip six months from now, you could have $3,000 saved by following the same plan.

How to Get Huge Savings When Shopping Online

Best Savings Rates For September 2019

Tips on How You Can Save on Vehicle Insurance

What Can You Do With A Frozen Bank Account?

September 5, 2019 By Tamila McDonald Leave a Comment

Learning that your bank account is frozen is usually a shock. While you have some access to your account, a lot of your activity is restricted. This can make it incredibly challenging to manage financially, particularly if your only bank account is frozen. If you’re stuck with a frozen bank account, knowing what you can and can’t do is beneficial. Here’s a look at how a frozen bank account works.

What You Can Do When Your Bank Account is Frozen

If your bank account is frozen, there are still certain things you can do with the account. You do maintain your ability to review your transactions. Additionally, the account can accept certain kinds of deposits. However, that is the limit as to what you can do while the bank account is frozen.

What You Can’t Do When Your Account is Frozen

Once your bank account is frozen, you can’t withdraw any of your money. Additionally, you can’t transfer out any of the funds, even if it is for paying bills.

Until the account is unfrozen, your money is essentially locked away. You’ll have to address the source issue if you want to regain access to your funds.

How to Handle a Frozen Bank Account

The moment you realize your bank account is frozen, you need to call your bank. There are a few reasons why it may have frozen your account, and you can’t take action until you know which scenario is in play.

Usually, banks only freeze bank accounts for three reasons:

Illegal or suspicious activity
Unpaid debts and the creditors have court orders
Unpaid debts to the government

Your next steps may be determined based on the reason for the freeze. For example, if there is an unpaid debt that went to collections and that creditor is trying to access your account to collect payment, you may be able to speak with the creditor and come up with another arrangement.

However, in nearly all cases, it is wise to consult with a lawyer. Getting a bank account unfrozen can be incredibly complicated since it usually means that criminal activity is suspected, you are fighting against a court order, or you owe the government money.

Keep An Eye On Your Mail

As you work to figure out your next steps, keep an eye on your mail. Usually, you’ll be receiving a notice that will discuss whether any of the money in your account is “exempt” from the freeze. Additionally, it should contain instructions regarding what you may need to do to get the account unfrozen. By reviewing it carefully, you may be able to start a procedure that could resolve the issue with or without the help of a lawyer.

You should also review local laws and regulations regarding frozen bank accounts. In some cases, there are legal requirements regarding how much of your money has to remain unfrozen, ensuring you can handle various necessities of life. For example, the Exempt Income Protection Act in New York is one such law. Not all states have the same regulations, so you’ll need to research yours to determine what protections are available.

Should You Open Another Bank Account?

If your main bank account is frozen, opening a new account at a different bank is usually a good idea. This allows you to handle various financial basics, like deposit paychecks and pay bills. This is especially true if your pay is being directly deposited into the frozen account, as you’ll need a new place for that money to go. Similarly, if you are receiving government benefits such as Social Security, you might need a new bank account, so you can have that money deposited into a usable account.

Have you ever had to deal with a frozen bank account? What were you able to do with it? Share your experience in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

30 Day Money Saving Challenge: Save $100 in One Month with Quarters

January 11, 2019 By Jeffrey Strain 4 Comments

Now that the new year is underway, people across the country are striving to make their resolutions a reality. If your goal is to increase your emergency savings (or even start your first emergency savings account), a quick money challenge can be an excellent option. While popular approaches like the 52-Week and 365-Day challenges are great choices, they do require a full year commitment. If you want to start with something shorter, this 30-day money saving challenge might be right for you.

How to Save $100 in a 30 Days

If you want to start slow or simply have a need for a quick $100, you can painlessly get the money you need with a 30-day quarter challenge. This approach is great for individuals who are living paycheck to paycheck, as the daily deposits never exceed $7.50.

On day one, deposit $0.25 in your savings account, the value of one quarter. Then, on day two, you deposit two quarters instead of one, making your deposit into your savings account $0.50 and bringing your balance up to $0.75.

As you proceed with the challenge, you just add $0.25, or one quarter, to the deposit amount from the previous day. On day 10, your deposit will be $2.50. On day 20, you’ll reach $5.00. Finally, your day 30 deposit is only $7.50.

You can also remember the amount by recognizing that the number of quarters you deposit matches the day of the challenge. For example, on day 10, you would deposit 10 quarters, which have a value of $2.50.

At the end of the challenge, you’ll have $116.25 in your account. Plus, if you put the money in a high-yield savings account, you might even earn a little bit of interest too.

If you would rather do the challenge in cash, you can place the appropriate number of quarters into a jar at home instead. However, you won’t earn any interest this way, and you might have to wrap up your change in rolls before depositing it into a savings account.

Want to Save $500 in 30 Days Instead?

If you want to challenge yourself, and pull together almost $500 instead of $100, then use dollars instead of quarters. On day one, deposit $1.00. Then, deposit $2.00 on day two, $3.00 on day three, and so on until you finish the 30 days.

At the end of a 30-day dollar challenge, you’ll have $465 in the bank. Plus, your largest deposit is just $30, the cost of a single fast food meal for many families of four.

Benefits of the 30-Day Money Saving Challenge

While the biggest benefit of completing the 30-day challenge is increasing the balance in your savings account, you also get more out of it than that. Along the way, you are setting good savings habits, helping you create a solid financial cushion in case of an emergency.

Plus, there is nothing to say that you have to stop after 30 days. You could always keep going, increasing your deposit by $0.25 each day until you reach a particular savings goal or hit the end of the year. Alternatively, if you are living paycheck to paycheck, you can start over each month, using the date to guide the size of your deposit. That way, your largest daily deposit never exceeds $7.75, making it much more manageable for anyone with a tight budget.

Consider Money Saving Apps

A great way to supplement your savings is the automated approach with an application like Empower

Simply sign up and let the program analyze your checking account. The app will then make automated withdrawals which don’t impact your spending and sweeps them to an account you control. It is a super easy way to save money without a lot of effort. Click here to check it out.

In either case, you are creating an easy way to bolster your savings, ensuring that you have a health emergency fund in place at all times.

Do you have a tip for saving $100 a month? Share it in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.