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The 1-Percent Savings Solution

Want a simple, pain-free plan to increase your savings in 2020? CPA, author, and blogger Mike Piper says to save 1 percent more. “Increase your savings contributions by 1 percent of your gross income,” suggests Piper.

young woman holding up one finger indicating 1 percent solution

Just 1 percent—a good get-started savings plan!

It might be difficult to imagine how such a small change could make any difference at all, but according to Piper, this strategy can work wonders, especially if you are young. It’s so simple: get a savings plan.

Anything you can do to become a consistent saver is going to come back to bless you in the future. A personal program of consistent savings does more than increasing your bank account. It changes your attitude. It quiets your insatiable desires and moves you away from the financial edge where it is easy to worry and panic.

Money in the bank changes everything. Read more

What Every Kid Needs to Know About Greed and Thankfulness

If you are committed to teaching your kids how the world operates, teach them about money. You can use financial principles to teach everything from math problems to social issues. That’s because money is about values, relationships, choices, and self-worth.

While teaching your kids important values to guide their lives is of the utmost importance, when all is said and done those values are more likely to be caught than taught.

You have to live what you teach. Walk the talk. Teach by example.

If there is one thing that will ruin your kids’ lives, it’s greed. Teach them while they’re young how to pull the plug on greed, and you will have prepared them in a very important way to not only survive but also thrive in the real world. You might want to start with this lesson:

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An Incredibly Easy Way to Save Money Shopping Online

With the year’s biggest shopping season now coming into clear view, it’s time to gather our wits, sharpen our resolve, and determine to know everything we possibly can about how to save money. Today I want to show you an online shopping hack that will help stretch your holiday dollars until they scream!

I used to love a good shopping mall. But those days are long gone and I don’t miss them one bit since I’ve discovered the joys and convenience of online shopping. In fact, I’ll do just about anything to avoid having to go inside a mall. Or even a grocery store.

I’m going to walk you through the basic steps of an incredibly easy way to save money shopping online, using an actual purchase I made as an example.

Female hands typing on white computer keyboard

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How to Spend Money without Feeling Guilty

When you give yourself an allowance, it’s more than just cash—you give yourself the freedom to spend without feeling guilty. Early on in my long journey back to financial health, my husband and I agreed that I would have an allowance—my own cash, a regular expense listed in our fledgling household budget. That changed everything for me.

 

Girl with blue wallet showing her pulling out $10 bill

 

It used to be that when I felt broke, I’d turn to my bevy of credit cards to chase away the feeling. As long as I could spend money, it felt like I had money. My credit cards were my antidepressants (and my eventual undoing).

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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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19 Realistic Ways to Make Money Online

For all the convenience and access to information that the Internet offers, the ability to make money online, honestly and legitimately just might be one of the most useful. At a minimum, you need an Internet connection and computer. Or for some jobs, just a smartphone will do.

The challenge is to wade through all the sales pitches for free get-rich webinars to find authentic ways to make money. The opportunities for online jobs are there. But it’s not like winning the lottery. Most require hard work and dedication before you get paid for your time. But isn’t that true of just about any kind of job? None of what follows will make you an overnight millionaire, but each represents a legitimate way to earn extra money online.

 

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How to Break Bad Money Habits

Money a little tight these days? You might assume it’s due to rising costs, tightening credit and the fact you haven’t had a raise in, like, forever. But truthfully, if your basic needs are being met, problems you’re having are more likely a result of bad money habits you’ve picked up—behaviors you’ve repeated so often they’ve become almost automatic.

Woman stopping the domino effect suggesting she's breaking a bad habit

Don’t despair. In the same way you picked them up, you can replace bad habits with good ones: Stop the old behavior, and consciously repeat the new one so often that it becomes an almost automatic response.

Living without a spending plan

Spending money without a plan has to be the mother of all bad money habits. It’s like driving blindfolded. You don’t know where you are and can’t see where you’re going, so you don’t know when to stop. Pre-spending your paycheck on paper (also known as a budget) is the way to remove the blindfold so you can see what’s going on.

ALSO: Get Financially Fit With Good Habits

Paying with plastic

Depending on plastic—and I’m talking about both debit and credit cards—to cover your day-to-day spending might be very convenient, but it creates a bad habit. You stop noticing how much you’re spending, and that opens the door to overspending. Break this habit by figuring out how much cash you’ll need for the day, and put that much in your wallet. Leave your plastic at home, or put it in a less convenient place in your handbag or wallet.

Rolling a credit card balance

Credit card issuers know that once they can get you to cross the threshold where you owe more on your credit card than you can pay in a single month, they’ve got you where they want you—paying them interest month after month.

If you cannot pay the entire balance in a single month, you’re living way beyond your means. To break this bad habit, make it impossible to use it anymore until that balance is paid in full. Don’t close the account, but put that plastic far from you. Hand it off to a trusted friend or freeze it in a block of ice! Anything to help you break this bad money habit by replacing it with a good one. Then start paying down the balance as rapidly as possible.

READ: You Need to Kick Your Credit-Card Habit

Waiting to save

It might make sense to pay your bills first and then see how much you have left to put in savings, but that’s a really dumb idea. It will lead to a very bad result also known as no savings, because you will keep doing this same dumb thing month after month, year after year.

To break this habit, pay yourself first before you pay any of your bills. In fact, treat yourself as your most important creditor. Make up payment coupons like you have for your mortgage or car payment. Or set up an auto bill payment to “Myself.” Now move “Myself” to the front of the line so that the very first bill you pay each month is to You!

Even if it’s only $25—or even $10—to start with, do it. Over and over again. It won’t take long for that to become an almost automatic response and a very good habit!


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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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