Sharing insights since 2007 on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom!
Inflation is the rate at which the prices of goods and services rise over time. This phenomenon may seem like a plan hatched by an evil mastermind, but inflation isn’t necessarily a bad thing. It’s generally a sign that the economy is growing — and during your working years, you can usually expect your wages to rise with inflation so your spending can keep pace.
The big problem arises when you’re trying to save money for your retirement, since inflation erodes the purchasing power of the money you put aside. When inflation averages 3.5% per year (and it generally falls between 2% and 4% each year), prices double about every 20 years.
If you hope to retire at age 65, then you have to account for prices to double while you’re working and during your retirement.
Surveys indicate that the average American wedding costs about $28,000. With couples dropping so much money on an event with many moving parts, it’s becoming increasingly popular to purchase wedding insurance.
This concept wasn’t even on my radar when I was married, and it wouldn’t have been something I considered necessary. But, then again, I spent about 1/3 of that average on my wedding.
Although I’m tempted to scoff at the concept of insuring a one-day event, I do realize there are legitimate reasons this might be a prudent financial decision for some.
What Is Wedding Insurance?
Weddings are now planned up to a year in advance. All of the deposits, reservations, and non-refundable expenditures add up, and if something goes wrong at the last minute, there’s no time to recoup the loss. Wedding insurance is designed to cover unfortunate events such as a venue being double-booked, or the wedding dress getting ruined before the big day. [ continue reading… ]
Receiving a lump sum of money is something you think will never happen to you — until it does.
And though it will often be due to unfortunate circumstances, like a death in the family, you’ll still have to know what to do with it.
A family member recently gifted me $6,000, which was one of the largest sums of money I’ve ever received. Now I’m wondering what the smartest move is.
My current financial situation:
After getting divorced in 2012, I moved in with my dad for a few months. Frustrated by sharing a bedroom (and bed) with my two daughters, I took out a $10,000 loan against my car, purchased a trailer, and put it on land owned by my dad.
This loan was on a four-year term, with the interest hovering a little over 3%. The current payoff is right around $6,700, and it is my only debt.
My emergency fund is in place, but I wouldn’t mind having more in savings. I also just began putting my extra money in a personal investment account.
I’m now presented with a choice: Would it make the most sense to save the money, pay off debt, or invest it? [ continue reading… ]
My money is made from the comfort of my own home. I get to sit in my pajamas until lunchtime, and if something comes up, I can set the work aside and go do something else.
Recently, my colleague Alexa wrote about the freedom she enjoys as a freelancer, and I can relate. I feel a great deal of freedom with my choices. I could never go back to working in an office, where they tell you what to do and when to do it.
However, not everyone is comfortable or happy when they get out of a more traditional work setting. I associate with a number of people who work from home and set their own hours, so sometimes I forget that not everyone wants the lifestyle I have.
In fact, some people prefer a more traditional 9-to-5 job. My husband, for example, likes to have a regular job to go to (although he largely chooses his own hours since he teaches at the college level).
Ditching the 9-to-5 isn’t for everyone. Here are some reasons people prefer the traditional workforce:
They show up in my inbox during the first week of the month, usually just a few days apart. When I see them, I pause and whisper, “Please, please, please, let it be low!” over and over again. With my mouse pointer hovering, I close my eyes and open my electric or natural gas bill for the month.
It’s a lot like playing the lottery.
When I open my eyes, I hope the numbers fall in my favor. The lower the number, the easier it is to pay them. But living in the Midwest, we have a saying: “If you don’t like the weather, just wait until tomorrow.” Conditions can change quickly, as can your utility bills. All it takes is one summer heat wave, or one of those polar vortex things to cause the bills to skyrocket.
I’ve finally had enough of playing the utility bill lottery.
The key to being successful with a budget is to properly identify your expenses each month — which is hard to do in the wonderful climate of Minnesota. My natural gas bill shoots up during the winter months as we heat our home, but declines to almost nothing during the summer. My electric bill skyrockets during the air conditioned summer months, but cuts itself in half during the winter months.
By following these four easy steps, however, I’ll finally be ready to handle any utility bill. [ continue reading… ]
One of the biggest financial news stories right now is the approaching deadline to sign up for health insurance under Obamacare. If you aren’t covered by a health plan right now, you have until March 31, 2014 to sign up — or face the possibility of a penalty next year when you file your tax return.
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