Start Saving NOW for the Holidays

Christmas is just over 8 months away, which may seem like a long time, but it can come up quickly. By starting to save now, you give yourself plenty of time to build up a nest egg for the holiday season without having to dip into your regular budget. Plus, starting early allows you to take advantage of sales and promotions throughout the year, which can help you stretch your dollars further.

One way to achieve this goal is by setting up an automatic savings plan. With automatic savings, a fixed amount of money will automatically be transferred from your paycheck or bank account to your savings account. This system helps you save money effortlessly, and you won’t have to think about it actively.

There are 31 weeks between now and Black Friday, to reach a savings goal of $1000 by then you would need to save around $32 biweekly. However, this calculation does not take into account any interest that your savings might earn, so you may want to increase the amount you save each pay period slightly to account for that.

Remember, the earlier you start, the more time you have to save, and the more financial security you’ll have when it comes time to enjoy the holiday season.

Breaking Away from Poverty

Growing up in poverty can have a significant impact on an individual’s life chances and future opportunities. Children raised in poverty may have limited access to quality education, healthcare, and career opportunities, which can perpetuate the cycle of poverty. Due to financial constraints, families living in poverty may struggle to provide children with basic needs like nutritious food, adequate housing, and stable environments, which can negatively affect their physical and emotional development. Lack of exposure to positive role models, networks, and resources can also limit their ability to break out of poverty.

There are various ways to break away from poverty, some of which include:

  1. Education and training: Obtaining a good education and developing relevant skills and knowledge can help individuals secure better-paying jobs and improve their economic status.
  2. Access to healthcare: Poor health can limit an individual’s ability to work and earn a living. Access to quality healthcare can reduce medical costs and prevent illnesses from developing or becoming chronic.
  3. Financial stability: Building savings, reducing debt, and creating a budget can help individuals become financially stable and better equipped to handle unexpected expenses.
  4. Support services: Access to resources like affordable housing, food assistance, and child care can ease the burden of poverty and provide individuals with the necessary support to improve their situation.
  5. Networking: Building positive relationships with others is important for obtaining job opportunities, accessing resources, and gaining knowledge.

Please understand while education is important, there are many other ways to break the cycle of poverty without a bachelor’s degree.

One option is to pursue vocational training or certification programs in fields that are in high demand, such as healthcare, technology, or skilled trades. These programs can provide individuals with the necessary skills and knowledge to secure well-paying jobs without requiring a four-year degree.

Another option is to start a small business or work for oneself as an entrepreneur. This can be done by identifying market needs, developing products or services to meet those needs, and building a customer base.

Networking is also important here – connecting with other professionals in the field and seeking out mentorship and resources can be key to success.

Lastly, it’s important to remember that breaking the cycle of poverty often requires a multifaceted approach. Building financial stability, accessing support services, and investing in personal development are all important components in creating a brighter future.

I’m Back!!!

I know I have been missing for a while, BUT it’s with good reason. We purchased our first home! There are so many things I want to share, things I learned, things I wish I would have done differently and things I am so happy we put in motion for this buying experience. Even with proper planning and saving diligently for the past three years I felt like we STILL didn’t have enough money saved!!

Over the next few week’s I will be discussing things like: interest rate locks, private mortgage insurance, conventional loans, mortgage rates, debt to income ratio, and why finding the best realtor for your needs is so important.

I am so excited to share with you, our journey of the home buying process. There were ups and downs but coming home to our new home has made it all worth it!

2021 Inflation rates!

Inflation, what is it and how does it affect me?

If you’re like me I am sure you have noticed the increase in just about everything. Homes, used vehicles, food, and everything else in between. For most Americans including myself the cost of everything has gone up, except my salary. Inflation is a general price-rise in the economy over a certain period of time. From 2020 to 2021 inflation in the United States has risen 5.3%.

With the rising cost of inflation my family has had to make a few drastic changes. We were determined to lower our debt to income ratio and kick it up a notch with our savings. Even with so many things happening in the economy we were still able to figure out what the best choices for our family were financially and were able to adjust accordingly.

At the beginning of this year my biggest personal financial goal was to save at least half of my income. Even though we still have three months left in this year I have already exceeded my goal. Another goal that I had was to increase my credit score. I cannot count how many times I’ve heard people say “Credit does not matter” I am here to tell you, it does. Not only is credit important but having access to cash while having good credit is just as important. According to the experts inflation will only go down about 2% over the course of the next two years.

In 1990 when I was born the average teacher salary in the United States was $33,000. In 2021 the average teacher salary in the United States is $63,000. in 1990 the average price of the home in the United States was $79,000. Can you guess what the average price of a home in the United States is in 2021? Around $269,000. Yes, you read that right. How can over the course of 31 years salary only increase $30,000 while the cost of an average home increased $189,000. Inflation affects everyone. Save what you can, invest what you can, and make smart money choices daily.

Families who spent the $79,000 in 1990 with 30 year mortgages For now finished paying for their homes and many are now selling those same homes for four times what they paid.

Where are you with your 2021 saving goals?

Every new year that rolls around many of us start new goals. It can be weight loss goals, money goals or even bucket list goals. The thing is after the “new” of the new year, wears off. Many people, Including myself somehow lose sight of the goals that they set. This year for me, I knew would have to be different, my goals were different my income was changing, and my mindset was determined to accomplish every goal that was set out for me this year!

It has been a while since we talked but it is not because I haven’t been crushing those 2021 finance goals my husband and I set. Surprisingly, we have not only accomplished but also EXCEEDED our money goals. I can not wait to share with you all exactly how we did this.

Don’t let anyone tell you that budgeting doesn’t work. Don’t let anyone tell you that you need more this or more that. Live within your means, set goals and accomplish them!

Let’s Talk Short Term Goals

How can you save when you only make enough to pay your bills?

So many people ask me HOW? How am I able to save consistently every single time I get paid. Especially when I don’t make much money, in a few short words “I have a side hustle”. Over the course of taking a job for less money I knew I would have to find a way to continue saving to reach my goal. Honestly I wonder myself how I have time to check off daily, weekly and monthly goals. Between school, work, selling life insurance part-time, balloon decorating part-time and being a parent I am often spread thin. My short term goal is to save $15,000 to purchase our first rental home THIS year and be able to start our “cash flow”. Cash flow is the amount of profit that we will bring in each month after collecting all income, paying all operating expenses, and setting aside cash reserves for future repairs on the rental that we will be purchasing.

How to Calculate Cash Flow

An example of a simple equation:

Cash flow = gross rental income – all expenses and cash reserves

Monthly rental income: $900

Monthly operating expenses:

  • Mortgage: $310
  • Property taxes: $90
  • Insurance: $75
  • Property management: $70
  • Vacancy reserves: $50
  • Repair reserves: $100

Total monthly expenses: $695

Cash flow: $205 = $900-$695

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Budgeting for the Holidays

Easter Edition

We recently decided to take a last minute trip to visit family and friends out of town. While speaking with my mom, I explained to her that I was going to present my girls their Easter Basket when we come home because I didn’t want them to destroy my family members homes! What she said next really made me think. “If you were going to wait to give them their basket then you could have waited for the after Easter Sale”. However, I had already done this without even realizing it. I had purchased easter baskets and grass last year for this current Easter. After Christmas I purchased the toys that I would be placing in the baskets in January for 80-90% off. They only thing I had to purchase was candy and since I had the baskets and toys completed for 4 little girls one of the other mothers decided to purchase the candy for the baskets. I was able to present Easter Baskets to four little girls with a retail value of over $125 each for around $25 dollars each. Each Basket included scented markers, giant coloring books, two LOL surprise dolls, cups, candy, and even molding clay! Planning and budgeting goes hand in hand. Knowing how to budget and making sure you are never caught “last minute” shopping/planning you are sure to met your budgeting goals and needs daily/weekly monthly and yearly! -Budgeting Cents

Assess Your Financial Situation

I know we have talked about creating a budget and sticking to the budget. What we haven’t talked about is how all that advice goes right out the window when you are struggling to make ends meet. First thing first, be honest with YOURSELF. Most people use cards instead of cash (especially myself) so this made it extremely easy for me to track my purchases for the previous month. What I found out was that I was spending almost $600 dollars a month MORE than what I made. How? I was “saving” money in theory because I have always used the “pay yourself first” method. I was also using my credit cards throughout the month but instead of paying them off in full at the end of each month I was only making the minimum payment which was hurting me more because of the interest and balance building every month. Basically, I was just digging myself in debt without even realizing it. I know this is a budgeting a saving blog BUT I am ALWAYS honest. The first thing I did was gathered every single bill, subscription, need, want that I had and built a real budget. Once I had my budget complete instead of me paying the minimum on all my cards so that I wouldn’t get behind I started with the card that had the smallest balance and paid it off, and then I slowly moved up the ladder, the most important thing here though is I did not use my credit cards anymore. As of March 2021 I have been able to pay of four of my six credit cards while NOT adding anything to the balances of those cards. My goal for the end of 2021 is to have no credit card debt by December of 2021. I am not financially free YET, but I’m getting there!

  • The Moment of Truth: List your Assets and Liabilities
  • Budget for Saving: Record your expenses (paying into your savings will be an expense)
  • Write down your financial goals both short term (1-3 years) & long term (4+ years)

ASSETS- This is everything you own that have monetary value.

LIABILITIES- Debt or financial obligation that you owe someone else.

Student Loan Forgiveness

Back in 2008, when I first started college one of the things that drew me to wanting to become an educator besides the love of children and learning, was that there were student loan forgiveness options. I mean lets be honest most people are not becoming teachers for the income. However, something that I did not know was that there is not only federal forgiveness but also state forgiveness programs for teachers as well as public service student loan forgiveness options.

Public Student Loan Forgiveness (PSLF) is a loan forgiveness program for public service workers. These workers include: Emergency Management, Government (Excluding Congress Members), Military, Public Safety, Law Enforcement, Public Health which includes Nurses and Nurse Practitioners, Social Workers, Early Childhood education including Head Start and Childcare workers. Although this is just a overview of those who qualify you can check with your loan provider to see if your specific job qualifies.

The requirements for PSLF besides an eligible employer is that you must be employed full-time, at least 30 hours per week. However, part-time positions also qualify if your hours add up to 30 hours per week. The borrower must make 120 qualifying payments towards the direct loan while simultaneously working for the qualifying employer. Each year of qualifying you can submit the Public Service Loan Forgiveness Application for Forgiveness (studentaid.gov) form.

The best part about the PSLF is that if you are also an educator you can stack it with the teacher student loan forgiveness if you qualify for it also! The teacher loan forgiveness program is a federal program for educators that work in low income schools, allowing for forgiveness of up to $17,500 in student loans. To qualify for this loan forgiveness program you must have been employed full-time as a teacher for at least five consecutive years. Work at an elementary or secondary school or agency that serves low income students and have federal direct student loans that are not in default. Teacher Loan Forgiveness Forbearance Request (PDF) (studentaid.gov)

-Budgeting Cents

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Budget for January 2021

The point of me starting this blog was to teach the steps that helped me save over $10,000 in 15 months. The difference is I now make $40,000 less a year than when I was able to accomplish that. Now I feel like I am making cents while trying to turn them into dollars. Today I want to be really transparent with you, after I completed my budget I realized there was NOTHING left to save. When I say nothing I mean I my bills were $66 over my income. When I decided that I was going to get my act together to start saving I knew that it would be difficult and that it would be more difficult than the last time. I refuse to not save though. I have completely stopped with my hobby of “clearance shopping” where I buy things simply because they are cheap. Knowing that my budget is in place and that I am over budget the first thing that I will be doing is called the debt snowball. I will start with my smallest bills and use all my extra income to eliminate them. As of now the smallest bill I have is a credit card with $428 dollars on it. To help me get this paid down I decided to go through clothes that my children and myself no longer wear or can fit and sold them to local consignment shops, to my amazement I was able to get $125 dollars between the two. After applying that to the credit card it not only eliminated my monthly payment but also lowered my interest. Making less makes saving difficult but not impossible. You can do this. I can do this. We can do this.

-Budgeting Cents