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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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9 Easy Moves That Will Simplify Your Spending

Confused and stressed out about how to manage your money so you don’t run out before payday? Put these nine easy moves into action and you’ll be well on your way to simplify your spending.

a chess board covered in US five dollar bills with chess pieces in play

 

I know what you’re thinking—simplify and spending in the same sentence? Ha! Like that’s even possible when we have credit cards, debit cards, bank accounts, bills, bill-pay, auto-pay, fees, penalties, interest rates, and fees to keep track of. How can we possibly make managing money simple?

By having a plan. By choosing to become accountable and then using every tactic possible to streamline and de-stress your money.

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Savvy Shopper Tricks and Treats

You think shopping is what you do when you buy things. That’s true, but it’s more than that. Shopping is a competition with you on one side and retailers on the other. And whenever the store gets more of your money than you planned to leave behind, they’ve executed a brilliant shopping trick. They win.

What follow are the tricks that retailers don’t want you to know. Learn them well and you’ll you’ll turn the tables on them. You’ll start winning at the shopping game!

girl in black dress and witch hat holding shopping bags, looking at camera and smiling

TRICK: Buy only the loss-leaders and get out of there

A loss leader is something retailers sell so cheap, they’re losing money on the deal. Buy-one-get-one-free (BOGO) is a great example. It’s like bait to get you into the store because they know if they can do that, you’ll buy other stuff at full price. The trick is to take just enough cash so you can buy up all of the loss leaders you will use and then get out of there.

Why stores hate this trick. Retailers hold sales to increase their cash flow—not to save you money. They do anything they can to get you through the door. Statistics tell them that once you’re in the door, there is a high statistical likelihood that you will pick up enough full-priced items to more than make up for that loss leader. It’s a risk on their part and when you don’t follow their plan, they lose. You win.

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How to Win the Credit Card Balance Transfer Game

There’s nothing fun about credit card debt. An outstanding balance of $5,000 that is subject to 19.99% interest means you’re paying about $1,000 a year just in interest. Imagine if that $1,000 could go directly to repaying the balance instead. You could pay it off in record time instead of stringing it out for many years.

If you’re carrying credit card debt, transferring that balance to a new credit card with a 0% introductory rate could be the way out of your heavy debt situation. Just beware: There are pitfalls in the balance transfer game that if not avoided could end up making your situation worse, not better.

 

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To play the balance transfer game well requires financial maturity and personal discipline. Are you up to it? Should you wish to play, you’ll need to adopt this strategy to come out a winner:

Fine print

Find a balance transfer credit card application. You want one that offers at least 15 months of 0% interest, has no annual fee, and a small if any, balance transfer fee. Search at IndexCreditCards.com. Read the application very carefully. Know exactly what’s in the terms and conditions.

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5 Home Buying Mistakes That Will Make You House Poor

Buying a home is likely the largest purchase you will ever make. This is not the time to make mistakes that could easily plunge you into a financial situation you cannot afford. 

During my 18-year career as a real estate broker, I learned a lot of things but none as valuable as what not to do! I didn’t learn this in a seminar or while studying to pass the licensing exam. I witnessed real-life situations where buyers did really dumb things related to buying real estate—buyers who then went on to regret the decisions they’d made.

Avoid these five home-buying mistakes and you will avoid getting in over your heads with a house you cannot afford—and save yourself many thousands of dollars and heartaches in the process.

 

Young couple looking at their dream house

Mistake: Allowing a lender to determine how much you can afford

When you meet with a lender to get pre-approved for a mortgage, that lender is going to tell you how much house you can afford and how much money the company is willing to lend to you. Understand this: He or she is concerned about only two things: 1) Your ability to repay the mortgage and 2) the size of his commission.

This lender wants to steer you into the biggest mortgage possible. Ignore that number. It is not based on what you can afford because the lender has no idea what you can afford.

You need to set your own housing budget before you ever sit down with a lender or other real estate professional, which is based on your specific financial situation and lifestyle. And that housing budget should be realistic enough so that you can afford to make progress on all your other important financial goals like maintaining a healthy emergency fund, getting debt-free, and funding retirement accounts. Read more

How to Live on a Budget and Love It

For many years I wouldn’t have anything to do with a budget because I couldn’t stand the idea of anyone—or anything—telling me how to spend my money. And where did that get me? Into one big financial mess.

 

Looking over the shoulders of a happy couple creating a budget they can live on and love

 

Every month, when I ran out of money, I would turn to MasterCard and Visa for a bailout. To me, any available credit was the same as income. It was my money to do with as I found necessary. Really bad idea.

What I learned from going through that experience and finding my way back to solvency is that, as much as we may loathe it, a budget is the ticket to financial happiness―not the straitjacket I feared it would be. I’ve come to prefer calling this a “spending plan” rather than a  budget, but honestly, the terms are interchangeable. It’s just a way to pre-spend your income on paper first.

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Common Money Myths and How to Stop Believing Them

The wedding was complicated and expensive. But it’s over and you are ready to settle back and enjoy your new life together. I’m here to warn you about some common money myths that newlyweds have been known to bring with them into their marriages.

But wait. You’re not a newlywed? No one is immune to believing these myths. No matter your marital status—learn these lies about money so you can stop believing them. It will improve your life.

 

 

Myth: Double the income, half the expenses

This is what I call newlywed fuzzy math: Merging your lives and incomes into one household is the equivalent of getting a raise. It goes like this:

When we live together, we split the rent or mortgage payment; we share the utilities and household expenses. We’ll have twice as much money.

Don’t believe that, not for a second. While there may be some truth in sharing expenses, the outcome is not what you think. Been there, done that, trust me on that. More likely, more money will immediately lead to more spending. Without a solid plan, that will quickly lead to more debt because you’ll use that money for a down payment on stuff you really want.

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The Ultimate Risk-Free, High-Yield, Guaranteed Investment

From time to time, this kind of question pops up in my inbox:  How can I get started investing in stocks and mutual funds that are risk-free and have guaranteed high rates of return?

Of course that makes me laugh hysterically, not only because there is no such thing as a risk-free investment let alone one with a guaranteed high rate of return, but more because someone thinks I am an investment advisor. I am simply not qualified nor licensed to advise anyone on traditional Wall Street, stock market type of investing. But that’s not to say I don’t have some advice for them.

Happy couple jumping for joy investing in their debt

My investment advice is unconventional, perhaps, but it makes so much sense, I think you’re going to be amazed. When looking at investments, many people disregard one of the best and easiest places to invest their money—their own debt.

 

First, let’s agree that the reason anyone wants to invest is to increase their net worth by making their money grow. There are two ways to do that. 1) You can increase your assets or 2) decrease your liabilities.

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