Why we wait to get our finances in order

Personal Money Planning has taken up a group virtual challenge. The task consists of running (or walking) a total of 1083 miles, which is the distance across the United Kingdom. As a team, we total our activities to accumulate the 1783km distance. Since Gary is really into running, and logs about 4,000 miles per day (well, not quite, but almost), he is pulling the rest of us along well. However, the competitive nature in me could not allow him to take full credit for getting us from Lands End to John O'Groats. Each day I have been logging a few miles myself. I’m just as determined to claim my medal as he is- 

The other morning, I was approaching my third mile when the temperature began to quickly rise. Since I was at the opposite end of my starting point, I had no other option but to continue my trek. As I was rounding the corner, a lady in a dark SUV drove by, looked at my red, sweaty face, and gave me an encouraging thumbs up. That doesn’t seem like much, but it gave me the enthusiasm I needed to make it the rest of the way.

Why is it that we often ignore or avoid the things we know are good for us, take for instance, exercising? 

Which Money Language Do You Speak?

Shark Tank star Robert Herjavec once said, “If you can’t speak money, you will be broke for the rest of your life”.   

So how exactly do you “speak money”? Money language is how you view money, and the understanding of how you use money to express yourself. Money is often cited as the number one reason couples argue. That’s because when it comes to financial matters, many people don’t speak the same language. Learning to  understand your partner’s money language, fears, and goals could help minimize this dilemma.

 

Having an open and honest discussion about your differing financial viewpoints might seem treacherous at first, but by doing so it can add depth and perspective to the relationship. Since both perspectives are integral pieces in the joint financial journey, the collective input encourages an equal collaboration in working towards the same goals. 

Tips and Tricks to Help You Create a Sustainable Spending Plan

Need some help creating a spending plan? What about just making some minor adjustments to the one you already have? Well, good news...I've got you covered-

Creating a spending plan may seem a bit daunting at first, but can actually be quite easy. The areas that give most people grief are categorizing their expenses into various buckets, like groceries, housing, transportation, and cash items. 

What if you could just separate these expenses into two categories...discretionary and non-discretionary expenses (wants and needs)? Would that not make it much easier? I'll show you how.

Here are some tips and tricks to help save money without having to resort to a steady diet of Ramen?

Check out the video here: https://www.youtube.com/watch?v=IoeAIpbe2hc&t=731s

How data breaches go beyond financial theft

Security breaches are nothing new. We learned this back in 2013 when Target lost data, again in 2014 when the White House was hacked, and back in 2017 when Equifax fell victim to a cyberattack. And here we are again, years later, with Capital One acknowledging their security breach of personal information.  

Make a list, and check it twice

If you've waited until the last few days before Santa comes to town to finish your Christmas shopping, here are some ideas to get you through the holidays on a tight budget.

What do you need?

First, take a closer look at what you're dealing with. How much do you still have allocated in your budget for gift-giving? Who do you still need to buy a gift for? It's important to make a list to ensure you aren't forgetting someone. Having to make an unplanned purchase later may throw you over budget.

Check your list twice

Santa was on to something when he made his list and checked it twice. Maybe consider doing the same. Do you really need to buy a gift for everyone on your list, or did they make the cut simply because you're in the Christmas spirit? It's easy to get overzealous and want to give a gift to each friend, colleague, and teacher your child has. However, that can get super expensive. Review your list and narrow it down to only those that are truly necessary. This will give you a better idea of how much you can spend on each gift.

Don't overindulge

There will be plenty of cakes, pies, cookies, and other treats to overindulge with this season. Make sure you're checking account isn't included on that list. Consider purchasing your gifts using only cash or gift cards. It's easy to spend an extra few dollars here and there to upgrade a gift, but it's not necessary. Trust me, your friends and family would not want you in a financial bind over a Christmas ornament or candle box set. As Jim Carrey says, "No holiday should manipulate you to the point where you're going into debt just to show someone you love them."

Bust up the boxes

Speaking of box sets, consider splitting up a gift set. Yes, you heard me correctly. Bust the set apart to create multiple gifts. For example, I recently purchased a two-candle set, each with a different scent. Although it was boxed together, separating them could provide me with two gifts instead of one. This allows you to spread the joy to more recipients.

Boutique antique

Remember, it is "Tis the season to give", not "Tis the season to buy". Consider making something to give as a gift. Are you good at baking? How about crafts? Often times you can find clearance items at discount stores or even a thrift shop. Dust it off, spray it with some Windex, and slap an initial on it. Now, instead of something used or boring, you have a boutique style one-of-a-kind gift.

Consider donations

If you're the type that burns your cookie, or your finger on a hot glue gun, you can always take a different route. Consider making a donation to a favorite charity. Some shy away from this, out of embarrassment for the size of the donation they can afford. Believe me, the charity will be happy to receive any amount. You won't even have to let the recipient know how much was given. Simply give them a card that says "Merry Christmas! A donation to (fill in the blank) was made on your behalf."

If you would rather take a more hands-on approach when making a donation, you can always check with the charity and see if volunteer help is needed. Your card can then include something like "5 hours of work was donated on your behalf". 

Gifting it forward

It's also important to remember that gift-giving issues are truly a first world problem. Some would care less about the scent of a candle versus the warm that it can provide. Consider creating gift bags with socks, gloves, toiletries, and snacks to hand out to those less fortunate. For the amount of money you plan on spending for one gift, you could make multiple gift bags. I assure you, it will truly be appreciated.

If you're really short on cash, consider giving the gift of time. No, I'm not talking about a watch, but your actual time. Set up a meeting for now or in the future to get together simply to hang out. It may be over lunch or even a cup of coffee.

Whatever you choose to do, just make sure not to overdo it, with the cookies or the gift spending.

Merry Christmas! 

Michelle Kuehner is a Registered Investment Advisor Representative and President of Personal Money Planning. She is also a Certified Credit Counselor and Certified Financial Health Counselor, writes Fix Our Budget blog, and has over 25 years of experience in the financial industry.

Santa sprinkled with a bit of Scrooge

It's the holidays! Everywhere you look there are decorated trees, mesmerizing lights, and the smells of cinnamon and pine. For many individuals, this time of year is not as exciting as it is for others though... It also means buying gifts and spending money they may not have. While it may not seem like a large amount, an extra $20 here and there can add up quickly.

As the holidays approach you may find yourself in a bit of a bind: Consumers are in a spending mood this year, with plans to hand over 4.1% more than they did during the last holiday season. That puts the average of $1,000 per shopper, according to the National Retail Federation. Everyone wants to be a Santa, but it pays to throw in a bit of Scrooge. Here are some tips to help make sure your holiday spending doesn't go from "Ho, Ho, Ho" to "Ho, Ho, Holy cow I spent how much?"

1. Have you made a holiday budget? 

Before hitting the checkout lanes, it's a good idea to create a list of people (and pets) you plan to buy gifts for, including a budget for each person. That will help keep the spending within reason. A list also helps wrap your head around how much you are actually spending overall. While $10-$20 gifts for your co-workers doesn't sound like much, it can add up quickly. Make sure to keep a line item for those last-minute gifts you may have forgotten about. Already have your shopping underway? It's not too late! Even doing this after the fact can be a helpful lesson to be mindful of gifts purchases in the future.

2. Have you started shopping? 

Shopping throughout the year is a great way to level out your spending and snag some great deals. If you see the perfect gift for a friend on sale in July, grab it now and stash it away until the right time. This doesn't just apply for Christmas shopping, but for birthdays, anniversaries, or any other gift-worthy mile-stone. I tend to buy things on clearance and stash them in a spare closet. When the time is right, they get a great gift, and I have saved a lot of money.

3. Do you have rewards points to cash in?

Many stores, or cards, have loyalty programs that you can cash in this time of year. For instance, I have an Amazon Visa, and throughout the year I use it for almost all of my purchases. Gas, groceries, household items, items for the office, travel, etc... I allow the points to accumulate, and when the holidays roll around, I have already built up a decent amount of points that convert into dollars on my Amazon purchases. This year I handled almost all of my shopping by cashing in my points. It's a great way to save throughout the year, while still purchasing those much-needed items.

4. Be cautious of the sites you shop on...

When it comes to sales, the old saying "you can go broke saving money" could not be truer. While a merchant can throw a sale sign on just about anything, make sure you can't get a better deal somewhere else. It's important to check bargains against the original site to see if the deal is really a steal. Sites like Ebates or Wikibuy are great resources to check for deals and coupon codes. The run all of the published coupon codes and let you know which apply to your purchase. Even though I'm pretty thorough in my frugal research, I have even been surprised with a better deal a few times. (Side note: By clicking the links above, I may benefit monetarily)

5. Want a fun gift idea?

I've never really understood the whole White Elephant holiday gifting game. I mean, you buy a random gift with no particular person in mind and pass it around a certain number of times until you wind up with something you may or may not like. Yes, there are some laughs to be had, but I think those would probably be had regardless if I were having a gift "stolen" from me. 

How about giving gifts that every recipient will truly appreciate and love? Grab multiple pairs of socks, gloves, toiletries, and snacks to create holiday gift bags to hand out to those less fortunate. You can have those same laughs watching your friends and family decorate the gift bags, or make it a game and divide into teams to see who can bag the most items.  It's a great way to enjoy that gift-giving feeling and helping out someone in a time of need. 

6. Bringing it home...(made)-

Instead of putting your finances in a bind for the next year, consider gifting items you've created on your own. Don't get me started on the number of ideas Pinterest has, and there are plenty that you can involve the kiddos with as well... 

Michelle Kuehner is a Registered Investment Advisor Representative and President of Personal Money Planning. She is also a Certified Credit Counselor and Certified Financial Health Counselor, writes Fix Our Budget blog, and has over 25 years of experience in the financial industry.

Don't start your budgeting journey with a budget

Typically when someone decides it is time to put together a budget, one of the first steps they take is to find the right tool to use. This could be an app they download on their phone, a software program, an excel spreadsheet, a template they’ve found on Google, or even a Big Chief tablet and a crayon. However, none of these are the right first steps in creating a successful budget...it starts with the data.

When I provide budgeting assistance through our Financial Coaching program, the first thing

I tell our clients is not to use a budget. Yep, you heard me right. For the first month or so I

want to collect data, not try to plug numbers into a predesigned template that may not be the best option for their lifestyle. That's like trying to force a round peg into a square hole. 

If you Google “budgeting worksheet”, you come up with a little over $4.4 million results. This is because budgeting is not a one size fits all issue. I’m sure the first person that uploaded their budget template onto the internet thought theirs was fantastic. Then someone else came along with a tweaked version, and so on and so forth. It’s important to personalize the tool you plan on using.

Credit Reports vs Credit Scores...

Interested in how your credit score is calculated? Well, it's not as simple as just paying your bills on time. Your FICO score is based on five different factors... Here's the breakdown:

30%   Available Credit
10%   Number of Inquiries
10%   Type of Credit
35%   History of Credit
15%   Length of Credit

How To Protect Your Finances When Leaving An Abusive Relationship

What unique financial hurdles does someone face when they are in an abusive relationship?

Unless you have personally been a victim, it is truly hard to understand the reasons one stays in an unhealthy relationship. More often than not, the abuser has made the victim feel as if they are dependent upon the abuser. That without the help of the abuser, the victim could not survive financially in the world, and it is only by the grace of the abuser that the victim has a roof over their head, and food on the table.

Bring children into that equation, and the hold one has over another can significantly multiply. The fear of breaking up a family, uprooting kids from their home, and denying them from seeing both parents every day can be too much for one to handle.

Spring cleaning your financial records

If you’re anything like me, spring cleaning is a welcome annual occurrence. Getting everything cleaned and organized gives me a sense of refresh and order. However, others may see this as more of a necessary evil. Regardless of your outlook on such tasks, when it comes to your financial documents, neglecting your annual financial “cleaning” could cost you more than a few extra dust bunnies.

Budgeting Blunders

Creating a budget is not that difficult. In fact, it can be jotted down on a napkin with a crayon. But sticking to a budget is where the hard work takes place.

Here are a few areas where I see budgets take a nose-dive. Don't let one of these budget blunders allow you to become a victim of a savings snafu.

Keep It Simple

One of the largest mistakes people make, by far, is creating a budget that is too complex.  In an attempt to allocate each penny, which is a good thing, they create a budget that has forty five or more line items, which is not a good thing.

How Your Fund Raiser Could End Up Lowering Your Funds

Online sites meant to help can actually hurt

(Also published on The Penny Hoarder) 

My community pulled together recently to help a young father battling cancer for the second time. A local cupcakery held a fundraiser in his honor and donated $1 to his family for each cupcake sold on a particular day. The store was packed, the lines were long, and the cupcakes sold out quickly -- well, at least the triple-chocolate cheesecake ones did.

When it comes to raising money for a cause, what used to be as simple as putting out a donation jar has been made even easier -- you can ask people to donate right from their smartphones through crowdfunding sites like GoFundMe, GiveForward and YouCaring.

But does that help actually hurt you when it comes to tax time? As the recipient, do you need to claim the funds you raise through a crowdfunding campaign as income, or is that money considered a gift?

Tips For Getting Through Unplanned Debt

I can’t remember my parents ever talking about money matters with my siblings and me. I know for a fact my grandparents never openly discussed such things. However, I see it becoming more common place for families to open up about financial matters around the dinner table, and I think it’s great.

When everyone is involved, it helps them understand why certain things are, or are not, possible. Better yet, keeping the lines of communication flowing is the best thing for any relationship, regardless of the topic.

The Baby Boomer Boomeranger: Adult Children Returning Home

Jeopardizing Your Retirement By Financially Helping Adult Children

As parents, we want to give our children more than what we were given growing up. Whether it’s the latest technology, the newest clothing trends, or the most memorable vacations. That’s human nature, and there’s nothing wrong with that. But at what point is it time to cut the financial umbilical cord?

The Boomeranger

One-third of baby boomers are still helping their adult kids in their 20’s and 30’s financially. Actually it appears many of these baby boomers gave birth to boomerangers…adult children returning home to live with their parents. Not only are these parents stuck covering the cost of a roof overhead, but at times also a cell phone, car payment, car insurance, and health insurance.

At what cost do these extra expenses have on the parents? More often than not, a hit to their retirement savings. Whether it’s less being put back, or funds being borrowed or disbursed, not as much is getting holed away.