When something you use again and again is on sale, take advantage. This strategy doesn't apply to perishable items, and you don't want to buy so much more than you need just to get a deal, but if you know you're going to use a product eventually, it pays to take advantage of the cheaper price.
— Jean Chatzky
If you're comfortable with what you have and who you are, you'll automatically be more comfortable talking about your finances.
Every minute you spend looking through clutter, wondering where you put this or that, being unable to focus because you're not organized costs you: time you could have spent with family or friends, time you could have been productive around the house, time you could have been making money.
People who are passionate about what they do reach financial comfort and wealth more often than those who are not. That argues for doing one of two things. Finding your passion and pursuing it. Or becoming passionate about what you're already pursuing.
I've never been a fan of loans between relatives or friends. They can divide relationships.
No one anticipates divorce when they're exchanging vows, and it can be devastating emotionally and financially. To ease the financial side of the blow, you need to maintain your financial identity in your relationship. That means having your own credit history - you need your own credit card - and your own savings and retirement accounts.
In money, and in life, you are very often your own worst enemy. You promise yourself you're going to diet, then eat not one or two French fries but a whole plate. You decide to really commit to saving for retirement, only to wind up with a new pair of shoes in your closet.
You can refi your car loan just like you can refi your mortgage. It's even easier and less expensive. There's no appraisal process, and fees are minimal for a new car title. A couple of caveats: Most lenders require that the car be less than five years old and have a minimum loan balance of $7,500.
If you work in a home office, you can likely write off that space, as long as you use it only for work.
July is high burglary season because so many people leave town. To help avoid making that obvious, suspend your newspaper subscription and have your mail held. Another clear indication is if all your lights are off for an extended period. To fix that, you can buy a timer for about $30.
Garnishments tend to happen when people hide from their debts and stop making even minimum payments. Eventually, creditors sell the debt to a collection agency.
If your appraisal comes back too low - you don't have at least 10% equity for a conforming loan or 20% for a jumbo loan - you might not be able to refinance at all, at least with a loan that's packaged and sold to Fannie Mae and Freddie Mac. That means you may have to pay a much higher rate.
I've gotten emails from people who purchased items from an infomercial, only to find out that the shipping was more expensive than the item itself. The lesson: If you truly want to order something you see on TV, go online to the product's website and see if you can find out more information.
Eliminating or substantially lowering just one major monthly expense can give you enough cushion to move into a more comfortable place financially.
Generally, there are three rules when it comes to borrowing money: You need to have good credit, proof of income and cash for a down payment. Most people have the first two, but it's the third that trips them up. And nowhere does that come into play more than the mortgage market.
For most, the largest asset is their home. This becomes a sentimental issue, I know, but if you're holding on to a home that you can no longer afford - or you need the liquidity - you need to think about solutions. One might be to bring in a tenant or roommate; a more drastic measure is to sell the home and downsize.
By working toward a financial objective, you'll start to see the money add up for retirement or the credit card balance go down. But it doesn't have an immediate impact on your day-to-day life, and when it does - like when you're pinching pennies to save more - the immediate impact could feel negative.
I know it's exciting to get an item on sale. But if you're buying for the discounts and not because it's something you need or want - either for yourself or for a gift - you're going about things the wrong way. Think of it this way: Saving 30% is great, but if you didn't buy at all, you'd be saving 100%, which is even better.
Our culture highlights the desire to always have more, even when we should be grateful for what we have.
While you're going through this process of trying to find the satisfaction in your work, pretend you feel satisfied. Tell yourself you had a good day. Walk through the corridors with a smile rather than a scowl. Your positive energy will radiate. If you act like you're having fun, you'll find you are having fun.
Do you have an emergency fund? If not, build one - aim for three months of expenses to start, then boost it to six. It will ease your anxiety and get you out of a potential jam.
Face your financial issues head on. Open your bills, pick up the phone, call your lender. If applicable, tell them you're struggling and explain why. If you lost your job or took a pay cut, be ready to prove it.
While it's true a small treat won't blow your budget, indulging every day could - the same way a slice of cake probably won't hurt but, if you make it a daily habit, you may have trouble fitting in your pants.
Debt certainly isn't always a bad thing. A mortgage can help you afford a home. Student loans can be a necessity in getting a good job. Both are investments worth making, and both come with fairly low interest rates.
Getting a tax refund is nice, but having more money year-round is better. If you get a chunk of change from the IRS, you're giving the government an interest-free loan - not something they, or any bank, would ever give you. Instead, change your withholding so you get a little extra in each paycheck.
By the time most people file for bankruptcy, their credit is already trashed, they have a high debt-to-income ratio - a key indicator lenders look at - and they've likely defaulted on more than a few accounts.
In a relationship where finances are shared, it's important that both people know what's going on. If one spouse likes being the family accountant, it's fine for that person to take the lead, but the other spouse shouldn't be in the dark.
Simply calling your credit card issuer and asking them to lower your interest rate may yield immediate savings.
Anything past 90 days constitutes 'severe,' but all late payments stay on your report for seven years if reported.
No purchase is so urgent, no bargain so rare, that you don't have time to research it thoroughly, despite what they might have you believe. This applies, in particular, to infomercials that urge you to 'Call now, while supplies last,' or 'Call in the next 10 minutes for a free gift.'
I give out similar advice all the time: Take a month to write down where your money is going. By the end, you'll have a road map that tells you where you can cut back.
Embrace your fire - even in hard times. A down economy can actually be a great time to start a business.
Knowing where you stand in your quest to accumulate enough money for retirement is an incredibly important part of the planning process.
Couples that do save have stronger, more stable, less stressful unions. In other words, you don't want to be fighting about saving; you just want to be saving, period.
Nontraditional students often have the misconception that aid is intended only for high school students entering college. Luckily, that's not the case.
You may be basing a portion of your self-worth on your bank account without even realizing it. Try to pinpoint the activities and qualities that, free of charge, fulfill you.
Find the autonomy in your work. Autonomy is key to feeling good about the work you do, no matter what kind of work it is.
Too often, we make budget cuts - then blow the savings. Instead, think about your financial picture. Do you have high-interest rate debt? Paying it off faster will save you a bundle.
Turning a blind eye to your finances always brings trouble. When you let the bills or late notices stay in their envelopes, you're making matters worse. When you finally have to deal with the problem - believe me, you will eventually - it will be exaggerated because you didn't take action.
Put all of your savings on autopilot, and you won't likely notice the missing cash.
If you live in a yard sale kind of neighborhood - in good weather, most neighborhoods are crawling with them on weekends - do a sweep to see what the competition is charging. No one is going to buy your $7 book if they can get it down the block for $1.
Use an accountant the first time you file your taxes after becoming a freelancer. It will be worth it.
I love a hotel that offers Wi-Fi Internet access, especially if it's free. But I never access sensitive information, like my bank account or an online shopping site that stores my credit card information, on a public Wi-Fi connection.
Joining finances can be tricky. Money has long topped the list of topics couples fight about.
When you're setting up a budget, a general rule is to start with your fixed expenses - your housing and insurance payments, and car payment, if you own one.
Most credit cards provide some sort of protection against a defective purchase, and with gold or platinum cards, you'll often get double the manufacturer's warranty. You're also not immediately out your own money if something goes wrong.
If you haven't gotten a raise in the past couple years for a job well done, it might be time to ask for one.
If you're not clipping coupons before going to the grocery store, you're overspending. If you're ordering in or going out to dinner because you don't feel like cooking, you're overspending. If you're not tracking where your money is going, you're very likely overspending.
Resilience isn't a single skill. It's a variety of skills and coping mechanisms. To bounce back from bumps in the road as well as failures, you should focus on emphasizing the positive.
I'm big on setting goals, but I also think that if you have too many lofty ambitions and set goals for everything, you can sabotage your efforts by overextending your brain.
