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January is well known as the month consumers tighten their proverbial belts and go on spending freezes. But let’s face it: we still spend money. After all, who can resist 75% off Christmas decorations and wrapping paper for next year? Our family, for example, is planning to get a bigger Christmas tree when the holidays are over to use for the following year. And plus, this year is slightly different with Congress passing the stimulus bill and many people getting a few hundred or more sent their way. Even if you’re not quitting your shopping habit cold-turkey this month, there’s still reason to be careful about what you buy to get the most out of your money. Here are a few things that are typically best to purchase in January.
#1: Linens
“White sales” is a tradition that started in 1878, when a salesman by the name of Wanamaker decided to do something about the slump in his household good sales every January. At the time, all linen came in one color (it may have also had something to do with the fluffy white stuff on the ground), hence the name. Modern retailers sell bedding in many different colors these days, but you’ll still find “white sales” that offer all types of household linen at 30-60% off. [ continue reading… ]
I got a part-time job recently writing for a friend who is building out his website. I was trying to help my friend out, but all I can think of is how much I wish I would’ve found a freelance writing gig on the side sooner.
I kid you not, but it’s literally been life-changing. And this is coming from someone who doesn’t actually need any of the extra cash to secure a financial future.
Here’s why…
The Part Time Income Has Been AMAAAAAAAAAAZINGGG!!
Unlike here at MoneyNing.com where how much I make on a given day isn’t directly proportional to how much work I put into my own site during those 24 hours, I’m paid per article I write on his site. My friend needed quite a few articles before he is launching his site, so it’s so far been a “write as many as you want” type of arrangement. In other words, it’s “eat what you kill and the whole forest is open to you and you only”.
This also means that I can directly put a dollar amount to the work I’m putting in for my friend. I honestly haven’t felt this excited about writing an article in a long time. Feeling greedy? Just go write an article. Feeling nervous about the market ups and downs? Write another one. See someone on the street and you felt really bad for him? Go give him some cash and some love, and then go back home to write one more piece. [ continue reading… ]
I’m a work-at-home-mom with two kids under the age of four. I’ve been doing the freelancing-from-home gig since my eldest was two months old. And despite nearly four years of evidence to the contrary, I still wake up every single morning believing that today will be the day I cross off every item on my to-do list – from paid work to exercise to housekeeping to errands to childcare.
And every evening, when I look sadly over the long list of things left undone, I shake my head and wonder if I’ll ever achieve that elusive “work/life balance” I’ve been striving for.
As it turns out, however, I’m probably worrying about work/life balance unnecessarily and making myself a little crazy to boot. That’s because our concept of work/life balance doesn’t really exist.
Teaching kids to develop intrinsic motivation can be difficult. Many people resort to paying for effort and performance, but it’s not pleasant to be treated like a universal vending machine where kids put in a completed task and you spit out money. And once they hit the teen years, this connection between money and household tasks can easily get out of control. That’s unless your teens have learned the value of pitching in without getting paid by then.
So what’s a parent to do? Here are a few ideas to help you teach your kids the value of helping out.
How to Motivate Your Kids Without Paying Them
1. Trade time for chores. This is one of the best ways to teach younger kids about the value of helping out without getting paid. Saying “If we pick up all your toys right now, we can play catch in the yard for half an hour,” is an example of trading fun time for chores. This also teaches kids that time is valuable, which is an important life lesson that isn’t always grasped unless they are intentionally taught. [ continue reading… ]
Ahhhhhhh. The shiny new toy everyone thinks of when they want to get a vehicle. One of our readers, Tony, is thinking about getting one. What do you think?
Dear MoneyNing,
I’m 24 years old and have been fortunate enough to land a really good job straight out of college. I now earn $100,000 a year, max out my 401k/Roth IRA, and my retirement portfolio is already valued at $35,000. I also saved $23,000 in a taxable brokerage account that acts as my emergency fund.
I’ve been driving a beater Honda Civic since the college days when I needed a ride to get me to my part-time job, but it’s giving me serious issues so it’s time for me to get a new ride.
I want to get a Tesla 3 and that’s going to cost roughly $50,000. I know cashing out my retirement funds to buy that beauty is a really stupid move, so I plan to finance the car with all the cheap loan options that are out there.
Can I afford one? Talk me out of it if you must!
There’s a lot to like about Tesla cars. I have a friend who bought a Tesla 3 a couple of years back, and I’ve never seen people get excited about their cars like how Tesla owners do about theirs. The company Elon Musk has been able to build from scratch is nothing short of spectacular. He symbolizes the pinnacle of the American Dream. Owning a Tesla isn’t just merely buying and driving a car, but being part of this history. I can see why you would want one, but let’s get right into the finances.
First of all, congratulations are in order for being able to max out your retirement accounts and build a healthy savings cushion at such a young age. I poked around and a likely financing option for you is to borrow $40,000 for 60 months. At a 2% interest rate, the monthly payment would be $701 and at 4%, $737.
For discussion purposes, I’m going to assume that you find a killer deal and the vehicle is going to cost you $700 every month. Add in the extra insurance cost at your age and it’s easily $800 a month.
Have you made this calculation? There are so many Teslas in my neck of the woods that, as crazy as this sounds, the $50,000 car no longer feels like a frivolous purchase. Still, that money is a big jump from what I assume is practically paying nothing to drive the Honda Civic.
You can certainly afford to pay $800 a month for something you truly love. The question is whether the monthly outlay is worth the cost to you. Is paying $800 a month, plus the loss of compound interest on half of your emergency fund, worth getting that shiny new toy you drive for part of your day?
Also, consider this. A new Tesla is a state of the art vehicle with great range and power. In a few years though, your shiny new toy will slowly become just an outdated tool used for commuting because surely there will be newer Teslas with better range, more sophisticated tech, and more comfortable seats. When it comes time to change cars, it’s most certainly guaranteed that you’ll get another Tesla or a vehicle that’s comparable in price because it’s incredibly hard to downgrade your tastes after you’ve upgraded them. By giving in to your impulse and buying into that awesome new piece of technology now, you aren’t just committing to $800 a month for 60 months, but you are likely committing $800 a month for life unless you are willing to make the probably painful step to downgrade what you are used to later.
There’s no mention of a family, so I’m assuming that you are single. But your family situation will likely change in a few years and you may have other financial priorities. Do you want to commit a huge chunk of your disposable income to the car now for the foreseeable future? Here’s another comparison. Paying $800 a month on a 30-year mortgage at today’s low rates of 3% or so equates to borrowing $190,000. Plus, part of that $800 goes towards building equity in your house. You will eventually own that car with the finance route, but a vehicle is a rapidly depreciating asset that may not be worth that much in five years. Would you rather drive a sweet car for a while? Or would you rather use your purchasing power towards a dream home and be wealthier on paper to boot?
There’s no right answer here. I have a friend who drives a Porsche 911 and rents, while another friend of mine drives a 10-year-old Honda Odyssey minivan but live in a multimillion-dollar home.
When we get together, our 911 friend is obviously the one we envy more. He’s also the louder talker who’s always talking about what we could do, where we could go, and how we can spend our money. The reality, though, is that the friend who drives the older minivan is the wealthy one.
Who do you eventually want to be when you go up? You’ve done well and are in a position to be plenty wealthy if that’s the goal you’d like to pursue. But what do you actually want? Get that question figured out and you have your answer.
This year has been a whirlwind for pretty much everybody in the world. We are lucky things turned out much better than we thought they would financially, but there are many others around us who are struggling with their finances. If this is you, I know it can be tempting to let that negativity permeate your life. But before you just go with the flow and let that happen, know that not addressing your mood can result in even worse finances. Often, a downward spiral affects a number of areas of your life, and that can spill over and make your finances even worse. While you don’t want to ignore financial difficulties, you don’t want to succumb to them, either. So, here are five tips for staying positive about your finances when things seem bleak. [ continue reading… ]
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