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5 Ways to Give Yourself a Raise

Is money a little tight? Hoping a raise will come through soon? I hate to burst your bubble, but even if it is exceptional, a raise probably won’t do much good. 

By the time a raise is adjusted for taxes, you’ll be lucky to see half of it in your bank account. And if that’s not bad enough, it’s a common problem that when you earn more, you automatically spend more. Reckless spending can consume a lot of cash, fast. 

Woman opening bright pink wallet to discover complete lack of money

 

The degree of reckless spending seems to rise in direct proportion to income. It won’t be long until you are back in your old financial rut just barely getting by. Sadly, until you get serious about your spending, more money will never be enough.

The secret to getting cash inflow to exceed outflow is to reduce the outflow. That is a solution available to almost everyone.

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An Amazing Way to Slash High Heating Bills

Until several years ago, I didn’t know something existed called a heated mattress pad. It makes sense since I’d lived in Southern California for most of my life, where it is mostly warm all year round.

Relocating to Colorado where the seasons are more pronounced, I had a lot to learn about heating a house without going broke. That first winter our heating bills shot to the moon because we were heating the entire house to a comfortable temperature day and night. Trust me—high heating bills can be shocking.

surprised woman gets letter with bad news

Lower the temp

We saw a semi-dramatic reduction in the heating bill when we decided to lower the thermostat to 60 F. at night and use this Bionaire micathermic space heater in our bedroom, but that wasn’t altogether successful. My husband and I have different internal thermostats. He would be cold while I’d be turning the space heater down a notch or two.

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Why You Need an Emergency Fund and How to Get It

Emergencies are a fact of life. When you’re faced with an expected event—from a broken bone to a job layoff—you can be ready. An emergency fund is a stash of money set aside to cover financial surprises life throws your way—events that can be stressful and costly.

Last year, Mitch and Jenn had a string of bad luck. Mitch broke his leg in a skiing accident, Jenn’s car broke down requiring major repairs and their home’s aged roof decided to fail right in the middle of a major storm.

 

The timing for all of this wasn’t ideal—four weeks before Christmas. The financial and emotional toll of these events continues to be huge, but nothing like it might have been if they hadn’t been diligently building their Contingency Fund, more commonly known as an emergency fund.

An emergency fund creates a safety net for a home and family. This way you are less prone to experience a disaster when an emergency comes your way.

Mitch’s health insurance is covering most of the costs of his surgery and follow-up therapy. Still they’ve had to come up with more than $2,400 to cover his deductible, co-pays, and prescriptions. The car repairs were just shy of $2,700—not surprising given the car’s age and 140,000 miles.

It was the roof that really threw them for a loop. The estimate to repair it—with no assurance that said repairs would last for longer than a few months—was $750, with a new roof coming in at an estimated $12,000.

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How to Give Yourself a $2,000 Raise in a Hurry

If there’s one thing that I love about you, my loyal readers, it’s how responsive you are. Sometimes you like what you read, other times not so much. Now and then you simply need more information. But no matter what, I can always count on hearing from you. Which brings me to what I wrote on pulling the plug on subscription pay-TV. It brought a huge response.

According to this 2012 article from NPD Group, the average pay-TV bill was predicted to hit $123 per month by 2015—more than $1,400 a year—and will hit $200 ($2,400 a year) in 2020. So far the predictions are right on the money.

For many, that’s money that could be better used to build an emergency fund or pay off debt. No wonder that column struck a chord with so many readers.

Overhead close up photo of a woman putting money in her purse.

 

The most-asked question had to do with the need for an antenna to receive free, local HD broadcasting. Which kind? Which one works best?

As I was fielding your messages, my husband and I were in the process of relocating. In 2015, we moved from California to northern Colorado. What a change from big city life in Orange County to a little village boasting a population of just 18,000. And what a perfect opportunity to test antennas to find the best way to enjoy free TV and quality programming in our new location. Read more

23 Ways to Chop Your Grocery Bill

Need a foolproof way to cut your food/grocery expenses by 25% this month? Announce to your family that there will be a complete ban on the consumption of food during the first week of every month. There. That should do it!  Twenty-five percent right off the top.

What?! Don’t think you can pull that off? Me either, but not to worry. Here are some much less painful—and I hope a bit more realistic—ways to chop the high cost of food.

 

You couple aghast at the cost of their groceries while looking at the receipt

Create a shopping list

Do this at home when you are hungry. You will be more creative and thorough.

Not hungry

You will be compelled to buy everything in sight regardless of what’s on your list. Tip: If you can’t avoid it, head to the bakery a pick up a cookie or grab a protein bar on your way in. That will be enough to silence your hunger and clear your mind.

Leave the kids at home

You will stick to your shopping list with much less frustration and stress if you fly solo.

Avoid convenience or specialty stores

You won’t find many bargains there.

Groceries online

Online grocery shopping is the latest and greatest for many (me!). It keeps me out of the supermarket where, even with a list, I’m an impulsive disaster just waiting to happen. I shop at KingSoopers (part of the Kroger Family of stores) and pay a flat fee of $4.95  per order for its ClickList service. (Read more about that here.) Walmart offers its groceries online program with free same-day pickup is now available at hundreds of Walmart stores nationwide (store locator). Walmart does not charge a pickup fee but has a minimum order requirement of $30.

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How to Save $1,000 Cash Painlessly

The most important thing you can do to make your personal economy strong is to have an umbrella—an emergency fund with enough money in it to pay all of your bills for six months. And it needs to be safe and secure in a bank account. You read that right—half a year’s income! Wait. You can’t even imagine being able to save that much? No worries. The secret to getting there is to start small. Let’s say you make $1,000 your emergency fund goal.

U.S. $100 bills folded and secured with a paper clip

Save 10%

Weekly, or as you get paid, save 10% of your paycheck. Too much? OK, start with 5% or even 1% and build up from there. Just start!

Make it automatic

This is going to be hard, but I know you can do it: Make feeding your emergency fund—whatever the amount—the very first bill you pay, before anything else.

Once you have accumulated $50, go to your bank or credit union and open a savings account. Or open a free savings account at an online bank like Ally.com or Marcus.com (Goldman Sachs).

While you are opening that account, set up an automatic deposit authorization. This will give your bank authorization to automatically transfer the amount you designate from your checking account straight to your emergency fund. Here’s a secret: You won’t miss what you don’t see in the first place. Okay, you’ll miss it for the first few paychecks, but soon you really will not miss it.

Get rid of non-essentials

Give up the little things such as cable TV, eating out, and gym membership and that landline phone you have, but never use. That’s a start, you’ll know instinctively how to add to this list.

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25 Ways to Save $1,000 on Monthly Expenses

A number of years ago I met Kathryn and Galen. They’d won a contest sponsored by Woman’s Day magazine. The prize? A money makeover and financial coaching with … me! From our first meeting, we became fast friends.

Not only were they drowning in debt, Galen was dealing with a protracted season of unemployment. Their financial situation was grim.

 

Young couple worried about how to cut expenses and get out of debt

Kathryn and Galen were totally committed to working with me as I created a plan that, if followed diligently, would get them out of debt and on their way to financial freedom.

The problem was that even with their new scaled-back lifestyle, my students were $1,000 short every month—an amount they would have to find somewhere, some how, if this plan were to work.

Never have I seen a couple so committed to getting out of debt. They didn’t complain or seek pity. They didn’t whine or make excuses. Instead, they adopted a “scorched earth” attitude as they became committed to doing anything and everything possible to reach their goal.

Here’s Kathryn’s list of the 25 things they did to cut expenses and find find the $1,000 they needed every month in order to stay on track with getting out of debt:

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