Your college education plays an impactful role in every aspect of your life. One of the biggest impacts it makes is on your financial life. A lot of times, it puts a damper on your good times. The same happened to me when I started college. I had big dreams and I wanted to enjoy my twenties to the fullest. However, it wasn’t as easy as it seemed. Having to pay the student loan on the top of other expenses made it difficult for me to save money, invest in a retirement plan or go on a vacation. Yes! You do need a degree to climb up the corporate ladder, but the cost makes it difficult to afford your normal living.
However, it didn’t stop me from setting financial goals and working toward achieving them. I had to get a job to make extra money and limit my expenses only to my basic necessities. I saved to travel and invest in a retirement plan. It did take a lot of effort but in the end, it was worth it. It made me realize with proper planning and a little devotion I can pay of my student loan debt while enjoying the things I love. So today I am going to discuss with you how I kept student loan from ruining my financial health. Let’s get into it.
Ways to successfully pay off your student loan while doing what you love
Managing your student loan is important to feel less stressed and organized. Take a look at the ways I followed to get back on track with my finances while trying to pay off my student loans.
1. Create a strict budget and stick to it
Three of the top categories responsible for causing the most of the financial stress include student loans, credit cards and housing expenses. For me, the first step to combating financial stress was to write down what I need to spend on a piece of paper. That took the majority of anxiety out of my financial life. I created a concrete budget and tried my very best to stick to it.
I understand the majority of the youngsters find budgeting bland and boring. However, it doesn’t have to be. You can choose a creative way to track your expenses and income. I personally prefer journaling. I create two columns to track my expenses and income. I used colored markers and stickers to track where all my money was going and which expenses are easy for me to cut back. It helped me to make better decisions and plan to save for my next vacation.
2. Be clear about your financial goals
Setting your financial goals is as important as creating your own budget. Honestly, in the beginning, I wasn’t sure where to start. A couple of YouTube tutorials later, I decided that I need to break my goals down into three categories namely annual goals, monthly goals, and weekly goals. I divided my annual goals into smaller goals to achieve them on a monthly and weekly basis.
I calculated my regular expense for the month to see what could be cut back. I decided on a budget and planned on not to exceed it. Once my budget was decided, I put aside the rest of my income to hit my goal every month.
3. Having an Accountability Partner helps
Accountability is important when it comes to managing your finances as a student. I found it hard to stick to my goals and needed someone to remind me not to overspend. I had a friend with similar goals as mine and we became each other’s, accountability partners. It helped both of us to adhere to healthy financial habits we had developed. While choosing an accountability partner, you need to look for someone you don’t have a problem sharing your financial history with. Choose someone you can trust. If you have some extra cash, you can always invest in a licensed money counselor or a budget coach for professional help. It will enable you to make better financial decisions.
4. Make a plan to pay off your debt
How long does it take for student loans to be paid off? For federal student loans, the traditional 10-year repayment plan works. However, for me, it didn’t. I choose other ways to pay off my student loan debt including:
The debt avalanche or debt snowball method
A debt consolidation loan
Refinancing student loans
5. Keeping an eye out for discount offers
There are a few basic expenses that are inevitable. These include revamping your seasonal wardrobe. While I was a student, I relied heavily on coupons and promo codes to purchase my clothes and accessories for cheap. Coupons make student life easy. They helped me prepare for college with ease. I got everything I needed for my dorm at a discounted price. I learned shopping for college doesn’t have to be expensive. You just need to keep an eye out for the right options. Various brands offer exclusive student discount coupons. It made it cheap for me to shop for bedding, towels and appliances I needed for my dorm.
Wrapping up
Student life is stressful and student loan debt makes it even harder. However, with careful planning from the very beginning, you cannot only pay off your debt, meet your regular expenses but what you can do when your student loan is paid off is live your life to the fullest. That’s my story about how I paid off my student debt without letting it ruin my financial health. I hope you find it helpful.
I am relatively new to collecting miles and points. When I started, there was a steep learning curve that seemed overwhelming. It felt like it would be impossible to accumulate enough to make a dent in our travel expenses. My kids with only first world problems are used to regular travel with the word “Disney”, after all. I debated whether to even start. I’m glad I did. In a short amount of time, I have racked up enough miles and points to cover several first-class flights and multiple hotel stays for my family. This process requires organization and strategy, but it is well worth it. There are Ten easy ways I use to earn miles and points without doing anything I consider to be ethically questionable.
Credit cards will earn you the most miles and points by far, even if you don’t spend a lot each month. You can build miles and points very quickly, particularly with a few introductory bonuses. There is nothing stopping both you and your partner from taking out the same card, even if you are listed as an authorized user on the other’s card. Keep in mind if you do not pay your balance in full each month, this is not for you. Any benefit you receive from the miles and points will be more than canceled out by fees and interest payments.
The credit cards with the best incentives require good credit. If you don’t have good credit, work on improving your credit score before you start applying. A quick google search will tell you generally what credit score you need to increase your approval odds. NerdWallet is a great free app that breaks down your credit score and makes suggestions to improve it.
Organization is key. When you start accumulating enough credit cards to play Poker, you need to make sure things don’t slip through the cracks so you don’t get into financial trouble or accidentally miss a payment. NerdWallet keeps a list of your credit cards and their balances, and I also use Mint, another free site, to keep track of all my financial accounts.
There are tons of credit cards from which to choose. You should get a sense of which ones you want in the next year or two and apply in a strategic order. Even if you have great credit, if you take out too many too fast, you will start getting denied. I do not recommend listing your partner as an authorized user on your cards because accounts on which you are an authorized user will also be listed on your credit report. This will look like you are opening accounts twice as fast. You can both take out the same card individually and receive double the rewards.
The requirements of each individual company are constantly changing, so double check before you apply. There is too much to say about the benefit of each particular credit card for one article, so I am only going to focus on application guidelines and introductory bonuses for a few cards I like for beginners. You should read what each card offers, like free checked baggage, TSA precheck credits, and airport lounge access, to decide if the card will benefit you long term. Generally, here are some things to keep in mind as of the time of this writing:
Chase Cards
Chase has a 5/24 rule. If you have taken out or been listed as an authorized user on someone else’s card from any company more than 5 times in the last 24 months, you will most likely be denied. Note, this is not just five Chase cards. Any company at all is included in the count. Apply for Chase cards first.
Chase has a lot of great products for beginners. We like the Chase Sapphire Preferred, which as of the time of this writing has an introductory bonus of 60,000 Chase Ultimate Rewards points (worth approximately $750) after you spend $4,000 on the card in the first three months. We also use airline credit card offers like the Chase Southwest Rapid Rewards Plus card, which as of the time of this writing offers 40,000 Rapid Rewards points (worth approximately $600) after spending $1,000 in the first three months. If you prefer cash over travel rewards and a card with no annual fee, Chase Freedom offers a $200 statement credit after spending $500 within the first three months. These are just three examples. Chase has plenty of other great choices as well.
Note, you can typically earn introductory bonuses on the same card more than once if you wait the specified amount of time before applying again. Check the terms of each card and know how to earn miles with credit card.
American Express
American Express has several great cards. I have found these cards to be pretty easy to get. However, they do this obnoxious thing where they take back your introductory bonus if you cancel the card within a year or if they figure out you made ineligible purchases to hit the minimum spend, such as gift cards. Make sure you do not cancel the card or do a product change until after the annual fee posts the next year. The annual fee is refundable for up to 30 days after it posts.
My favorite American Express card for beginners is the Hilton Honors American Express Surpass Card. It has an introductory bonus of 130,000 Hilton Honors points (worth approximately $650) after spending $4,000 in the first three months. It also gives you a free weekend night if you spend $15,000 on the card in a calendar year, as well as several other benefits.
American Express has a once per lifetime rule for introductory bonuses, so wait to apply until you see an offer you really like.
Barclays
Barclays is a tough nut to crack. Apply for this one early, and don’t bother if you have taken out a bunch of other cards recently. If you can get to this one early enough to get approved, the Barclays AAdvantage Aviator Red World Elite Mastercard offers 60,000 American Airlines AAdvantage miles (worth approximately $960) after you make any purchase and pay the $99 annual fee.
You can earn the introductory bonus multiple times if you wait the requisite amount of time.
Citibank
Citibank cards are pretty easy to come by regardless of how many cards you have taken out recently.
For beginners, I like the Citi/AAdvantage Travel Rewards card which offers 50,000 American Airlines AAdvantage miles (worth approximately $800) after spending $2,500 in the first three months. I also use the Citi Premier which offers 60,000 Citi ThankYou points after spending $4,000 in the first three months. The value of Citi ThankYou points varies depending upon how you choose to redeem them. I generally use them to book rental cars through the travel portal, but there are several options.
You can earn the sign-up bonuses more than once on these cards as long as you wait the appropriate amount of time (listed on the individual application) to reapply.
Capital One
Capital One tends to decline people who have taken out a lot of cards recently. You should apply for these cards on the early side.
I like the Capital One Venture card. This card has a purchase eraser that allows you to erase any travel-related expense on your statement with your points, so it is very flexible. At the time of this writing, you earn 50,000 bonus miles (worth $500) after spending $3,000 in the first three months.
You can earn sign up bonuses on Capital One cards more than once.
2. Throw Your Debit Card Away
You should be using your credit card for everything. Your debit card should be reserved solely for taking out cash for Tooth Fairy money. When you use a debit card or cash when you could use a credit card, you are flushing miles and points down the toilet.
3. Use the Best Credit Card for Each Purchase
After you hit your minimum spend, pay attention to the percentage each card pays for certain categories. We cycle through a handful of cards for various purchases. One card will pay more at grocery stores, while another will pay more for gas. Make yourself aware of the general spending categories and try to maximize your earnings.
4. Check Your Accounts Regularly for Offers on Current Accounts
Most credit card companies offer extra miles and points for shopping with certain vendors. There is typically a section called “Just For You” or something of the sort when you log on to your account. Check the offers to see if you were going to shop there anyway. If you were, go through a shopping portal and use the corresponding credit card to make the purchase.
5. Credit Card Referrals
Like all those credit cards you have recently taken out? Refer your friends. Several credit card companies offer incentives to refer people, and there is generally no restriction preventing you from referring your partner, even if your partner is an authorized user on your card. My husband and I constantly refer each other for cards we were going to take out anyway. Be aware credit card companies sometimes send a 1099 for the value of the referral points if the value exceeds a certain threshold.
6. Register for Miles and Points Loyalty Programs
Loyalty programs are free and require almost no effort. Anytime you travel, you should make sure you have joined that airline and/or hotel’s frequent traveler program and make sure that the trip has been added to your account to earn frequent flyer miles. It costs you nothing but ten seconds of your time. Familiarize yourself with the rules of the loyalty program. Some programs’ points expire after a certain period of inactivity, but there is almost always a way to reset the clock without traveling. I use the free AwardWalletearn points app to keep track of my miles and points and their corresponding expiration dates.
7. Dining
Several airlines and hotel chains have dining programs like Aadvantage Dining. All you need to do is register your credit card with the site and dine at one of the restaurants. The points generate automatically. When you register for the first time, there is often an extra introductory bonus in addition to the normal points earned. Here is an example of one of these programs. You can register for as many programs as you want, but the points will only apply to one. Dining at one of these establishments is a great way to reset the clock if your points are about to expire.
8. Shopping Portals
Shopping portals are an easy way to earn miles and points for purchases you were going to make anyway. Register with a portal, then just click through to the store’s website. The prices are exactly the same and you can use any promo codes or discounts at the store you would like. The number of points earned is based upon the purchase price. On Swagbucks’ shopping portal, for example, you’ll find online RedBubble coupons, Michaels coupons, and other promo codes and deals for thousands of merchants. Another example of a shopping portal can be found here. This is another great way to reset the clock if your points are about to expire.
9. Surveys
You can take surveys to earn miles and points with some loyalty programs. An example of how to earn airline miles without credit card can be found here. The earnings are quite low for the time invested, like less than minimum wage, so I don’t recommend spending any real-time on these unless you are just hanging out on the couch anyway. It is another way to reset the clock.
10. Retention Offers
When the annual fee posts on your credit card, it doesn’t hurt to call the company to ask if they have any retention offers available. Sometimes, they will give you an incentive to keep the card, such as a statement credit or the ability to earn extra miles. If you decide you don’t want to keep a card, at a minimum, ask for a product change to a no annual fee card. This will keep the account open so it appears you are holding onto your cards long term. Credit card companies don’t want customers who are going to take the introductory bonus and close the card. If you have a bunch of accounts on your credit report that were only open for a few months, it will look bad for you when you apply for new cards.
Final Thoughts
Earning miles and points is work, but it can also become a fun hobby. The miles and points we have accumulated over the last couple of years have saved us thousands. It is important to stay organized and apply in a strategic order to maximize your benefits. While it may take a substantial amount of time to manage miles and points, it is worth it.
Andy is a blogger at Penny Less Dad and a financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life.
Who says you can’t have a stylish child without breaking open your budget? There may be pricey brands that your child knows and loves, but you can always find a fashionable alternative for a fraction of the cost. We’ve put together a list of top kids brands and stores that specialize in sensational clothing, but they all offer jaw-dropping savings, either through their sales or their everyday prices so that you can shop fashion for less. If you get the shopping bug at any point, don’t worry! You can treat your dashing little man or darling little princess to a new outfit or two, guilt-free.
So Sweet Fashion
If your fashionable child tends to prefer clothing from the flashier retail brands, such as GAP, Zara, and The Children’s Place, then you can save big by shifting your allegiance over to Sydney So Sweet. The online store even beats shopping at that certain big-box chain with the bulls-eye, plus the clothing is much more unique. It offers you the chance to dress your kiddo in one-of-a-kind styles from head-to-toe.
Noteworthy for its bright colors, eye-popping patterns, and larger-than-life accessories, the store offers clothing for boys and girls in a range of designs. That being said, the shop is a little girl’s dream. You can find outfits for a variety of occasions, including holiday-themed apparel for every holiday you can imagine. The store also prides itself on its seasonal offerings, which allow you to effortlessly pick out clothes for your child that are weather-appropriate but cute to boot.
What we love most about Sydney So Sweet—besides the affordable prices, of course—is the store’s versatility. It’s like a one-stop-shop for everything your little boy or girl might need. As mentioned, its stock is especially geared toward little girls.
For example, if you need a place that specializes in inexpensive but fabulous costumes, this is your go-to. That’s a major bonus during the Halloween season, but it’s also fantastic for little girls who enjoy playing dress-up and make-believe. Every so often, momma, you can surprise your fairy tale princess or magical mermaid with a new costume to add to her collection.
Beyond that, the store is also renowned for its tutus. If you know anything about kids’ fashion, especially as it applies to girls, then you know that tutus are all the rage. Even mom can get it on the action since the store offers an assortment of Mommy-and-Me tutus, along with matching outfits that moms and daughters can wear every day.
It’s All About Old Navy
The prep style looks adorable on kids, don’t you think? It’s not every child’s cup of tea, but plenty of tots love to dress in clothing that evokes the preppy aesthetic. There are also plenty of parents who want to dress their kids in classic pieces, timeless basics, crisp tops, and pastel colors.
Unfortunately, that preppy look can get expensive. Top kids clothing brands like Ralph Lauren, Tea Collection, and L. L. Bean have perfected the style, but those clothes don’t come cheap. The good news is that parents who are shopping on a budget can dress their children in clean lines and comfy fits courtesy of Old Navy.
You might be skeptical about seeing that name, but hear us out before you make up your mind. Old Navy and, by extension, the GAP and Baby GAP, aren’t always inexpensive. Especially when you’re shopping at those stores as an adult, items can get a bit pricey. That goes for babies, toddlers, and older kids, too.
But—there’s a big but here, an unmistakable caveat: GAP and Old Navy have some of the best sales ever. They don’t just occur during holidays and seasonal transitions, which means that they’re more accessible. You don’t have to get to the store ridiculously early to battle for khaki shorts or tiny polo shirts just to save a few bucks.
It helps to sign up for alerts from Old Navy—and GAP, too, if you like. Along with getting ahead of the sales curve, you’ll also have instant access to coupon codes and discounts. We live for coupon codes and discounts. Keep an eye out for online exclusive deals, as well. You can often save more when you shop online.
The secret is to shop smart. Wait for the sales. If you see a piece that your child can wear often and well, think about buying it in several different colors. You could also size up as you make purchases to prepare for your baby’s next stage of development.
The H&M Kids Difference
Once a store that catered to children across the pond, H&M has been a mainstay in the United States for nearly a decade or more. Thank goodness it finally arrived! Just as an FYI, mom and dad might want to start shopping there. Right now we’re focused on the kids, though, and H&M Kids is heaven-sent, too.
We’re not exaggerating when we say that your child could shop at H&M Kids for his or her entire life. The store sells clothing for newborns, infants, toddlers, youngsters heading to school, tweens, and teens. You won’t ever bust your budget buying school clothes or vacation apparel, either. That’s a must for thrifty parents.
You may have to play it smart with your choices. This is a store where you can find dresses for little girls that only cost $5, but other items may be $20-$30. Of course, that’s still an affordable range for quality clothing that your child can wear until he or she completely outgrows it.
Like Old Navy, H&M Kids is known for its unbelievable sales, as well. Time it right and you can score up to 60% off, which is impressive. If you’re interested in becoming a rewards member, then you’re eligible for additional discounts. In fact, the store will even let you combine membership deals with existing sales. For example, you may be able to get 20% or 25% off an item of cheap clothing that’s already deeply discounted.
Because the clothes at H&M Kids are high-quality with a precious UK flavor, you can replace all the expensive preppy brands when you shop there. It also gives you the opportunity to dress your child in a way that mimics the adorable, old-fashioned quality of other quirky UK brands, such as Peacheyboo, Toby Tiger, and Zara.
Stylish Savings at Circo
Circo is your answer to the big box retailers. Particularly if you find yourself at Target all the time, you’ll enjoy the savings potential at Circo, which is aimed toward style-conscious parents who need to stick to a budget. We know it’s hard, and not just because your little one seems to grow more every month. Replacing outgrown clothing is expensive enough, but also, who can resist the urge to dress their dumpling in all the latest fashions?
We’re wild about Circo for more than just its prices. For one thing, the store specializes in gender-neutral clothing. That’s a bonus for a number of reasons, but we’ll stick to the fashion-related ones. Some of the most stylish clothes are gender-neutral because they highlight the design, the color palette, and the fit. Neutral colors and silhouettes allow you to curate a capsule wardrobe for your child, one that’s full of quality clothing items that can be mixed and matched.
Let’s go back to the prices, though. Circo allows you to be thrifty without sacrificing your child’s sense of chic. This is a place where you can get a pack of four onesies for $10 or less. However, the items are durable and well-made, so you won’t have to replace them constantly due to wear and tear. Thanks to that and their gender-neutral designs and hues, you can save back the clothing for a younger child to wear. Win-win!
Forever 21 for Tiny Divas
Not even adults can deny that Forever 21 has cute clothes. As it happens, your little girl is never too young for Forever 21. Not many parents realize that the store markets to younger ladies, too. Forever 21 Girls is geared exclusively to girls, obviously, so it’s not as versatile as some of the other brands and stores on our list. You can’t find clothes for babies or toddlers, either. It’s a hot-spot for grade school girls and tweens. When your princess hits her fashion-conscious phase, this is where she may find her new aesthetic.
Prices are on-par with the adult store, which places them in-line with Circo, H&M Kids, and Sydney So Sweet. Most pieces are trendy, but they’re sweet as can be and totally age-appropriate. The selection is astounding, as well. You’ll usually discover surprising seasonal stand-outs at the beginning of each season, and the store often kicks off with a sale. Like other stores mentioned, however, Forever 21 Girls doesn’t really need a reason to offer discounts. The shop is happy to do so at the most random times, which means you can score a fantastic haul just because.
No matter the season, the store is full to bursting with on-point picks. You can get your girl kitted out for Spring Break or the start of school in September without spending hundreds of dollars. Heck, there are dresses for less than $25 and versatile tops available for less than $10. Most of the stock mixes and matches effortlessly, as well, so a single top can go with four different bottoms and one skirt will look great with an array of shirts, sweaters, or tanks.
All the Labels at thredUP
We have to admit that this is a bit of a cheat. Finding alternative labels to your child’s favorite brands is awesome, but sometimes, your kiddo wants what he or she wants. Other times, you want to show off your adorable child in a particular brand, as well. Splurging on a big name can be expensive, though, and it’s hard to justify the cost. So what do you do—give up? Of course not. You thredUP. See what we did there?
For those who aren’t familiar, thredUP is a different kind of clothing store. It’s a place where you can sell your child’s gently-used and outgrown clothing. It’s basically an online consignment shop. You know how quickly your kid goes through clothes. Packing up the outgrown items and keeping them in the closet seems like such a waste of money and resources, especially since the majority of them are probably like new.
Not only does that mean that you can make money on your baby’s clothes, but you can also get your hands on designer labels for fractions of the original costs. We’re talking about all the best-known baby brands, such as Lilly Pulitzer and Mini Bodini. It’s even possible to sell baby clothes for credit to go toward any orders you make in the future.
Thrifty moms and dads know how and where to save money. Now you know how to find stylish kids’ clothes on a budget and shop the cheapest children’s clothes online, as well. Share your frugal fashion tips, too! What brands do you gravitate toward? Where do you shop to find affordable clothes for your little fashion plate?
Running your household finances can be overwhelming at times. Financial situations constantly change, therefore we have to adapt the way we run our family finances. Creating a financial blueprint is essential to having a smooth operation of your money.
If you choose to put effort into
broadening your financial knowledge, then your money situation can flourish.
Having a blueprint could even help you make money.
Planning is essential in laying a good framework for any situation. Not just financial.
If you do not have a plan or a clear visual of your finances, it will be extremely difficult to know where you may need to make changes to the way you run your household finances.
Questions such as, “is your financial situation where you like it to be”?
Is it mediocre and could use a
makeover?
Or, is it not where you would like
to see it, and you know you need to make some adjustments?
Whatever the case may be, take a look at how you manage your family’s finances, and assess it. Just come up with an honest answer to yourself as far as if it needs to change or not.
To be aware of your financial situation is a simple rule for conquering the successful management of your finances. A simple process is all you need to get on track.
Create your Financial Blueprint to Make Money
What is a financial blueprint?
A blueprint is an outline of anything that needs to be constructed and is a vital part of building anything.
Without a plan, how would you know how to build something? You pretty much wouldn’t. It would end up in chaos.
So, managing your family’s finances is no different.
A financial blueprint is a phrase referring to a plan you have regarding your household finances.
It’s the kind of relationship that
you have with money and how you interact with money.
When people say that they are struggling financially, a lot of times its due to a lack of planning and understanding.
Your blueprint just has to be some
kind of outline to let you know what your goals are, and what needs to happen
to achieve them. It helps you to build a solid foundation, in which you
can create a healthy relationship with money.
Why do you need a financial blueprint?
Having a foundation for managing your finances is imperative for any household. Not only does it map out your financial goals, and provide a list of expenses vs. income, it provides insight as to how you think about money and how much money you have.
A blueprint basically lays on the table where you are today, where you want
to be in the future and then how you are going about getting there.
Our situations change all the time, so it’s good to refer back to your plan periodically.
Your outline will help you with your financial decision-making and how you are going to change your behaviors in order to achieve your goals.
As with anything, you need methods and strategies clearly defined, so that
you know what you are supposed to be doing with your money.
Another reason that it’s important to have a good outline of your financial situation is that it will keep you from making oversights when it comes to doing items with your finances.
An example of a simple oversight that could turn into being a huge mistake is having a spouse listed as your beneficiary on retirement accounts after a divorce. Or not having your children listed as beneficiaries or other people you want listed.
If you are looking at your financial plan periodically, you will see these to-do items and get it taken care of.
How your money blueprint affects others
Quite honestly, your money blueprint
affects way more people
in your life than just yourself.
Did you ever notice that your own thoughts about money are stemmed from how money was handled when you were growing up?
Whether you came from a challenging financial childhood or a comfortable financial lifestyle, it has directly affected your own relationship with money.
You may say to yourself, wow, I grew up in a home where we financially struggled and I do not want to live like that as an adult.
Or, you may have grown up in a well off home life, and thought to yourself
that you would love to maintain that same lifestyle as an adult.
Or you may think that you do not like living with a lot of high-end items and you would prefer to lead more of a minimalist lifestyle.
Whatever your opinions may be, it has been molded by your childhood experiences
with money.
So how does your own money plan affect other people?
It goes to show that the children that you are raising in your own home are going to be directly affected by seeing and watching the financial decisions that you make.
If you want your kids to grow up having a healthy relationship with money
and make good decisions, they have to see you do it.
Even if you and your partner are struggling financially, you do not have to keep voicing to the kids that you don’t have money for this or money for that.
On the flip side, it is extremely healthy for you to let the kids know that you may be on a budget.
That instills good values in the kids to let them know that you can’t impulsively spend on everything you want.
You want them to grow up knowing that the family may be on a tight budget,
but that is all the more reason to work hard for things you want to spend on.
Some questions your blueprint should cover
In order to know how to create a good financial foundation, you have to know what questions you need to be answering.
Coming up with the questions is just as important as the answer. This is because, if you are truly trying to put yourself in a better financial situation, you need to be asking yourself the right information.
For example, it is not as relevant if you have a question on your blueprint about how much money you want to have at retirement. The more relevant question may be, how much can I save per month towards retirement.
Your long term goals can be the
dollar amount that you want in your retirement accounts in decades to come.
Your blueprint is more of a big picture of what’s going on in your financial situation now and in the short term future.
1. What roles do the other people that share money with you have?
2. Does one of you need to get impulsive spending under control?
3. Do you just need to cut a few
expenses out that can be controlled?
4. Is spending not an issue, but you
could be better at putting money in a savings account?
5. Are you a spender or a saver?
6. Should you combine finances with
your partner, or not?
7. What is your opinion on
investing?
8. What is your situation with work?
9. What kinds of things can you cut
out of your monthly budget and what can you not live without?
10. Are you willing to take financial risks?
These questions will help you gain a much more clear understanding of your big picture.
It’s basically a way to have you
think about what all is involved in your financial belief system. These are
things most of us don’t really think about too much, so when you sit down to
make a financial plan and goals for yourself, you can start to dig deep into
what you believe.
That will help you have a better
situation with money today and in the future.
Without a plan, your money is potentially not being managed well at all.
This could lead to extra spending
that you aren’t realizing you are doing. Or, it could lead to a lean savings
account when you could have had extra money to put in it.
Tip:
Be honest to yourself
if you need to cut spending on some “extras” during the month.
Example of a financial blueprint
A great example of a financial blueprint would be an excel
spreadsheet.
List out all your bills
Put accurate amounts for your bills or take averages
List your savings account as a bill – contribute to it
Get involved in investments and list that out as a bill
List groceries, eating out and gas as bills
Total your spreadsheet and subtract from how much income comes into the household
This is your leftover money for the month
Now you know exactly what that month’s expenses total, compared to how much income is brought into the household. This is crucial information that you can use to plan your month financially.
Understand your blueprint
This is the number 1 rule in learning how to manage your family’s finances. You must understand the blueprint that you made. This is not always going to be a task that you really want to do, but it is necessary. You must take a hard look at your situation and know the answer to a few questions.
Understanding exactly what your monthly
expenses are and how much income will be brought in that month, is key. Once
you have that knowledge, you can financially plan your month accordingly.
This all goes into how you can make money in your month. Understanding and having a financial blueprint helps you not spend too much money in your month and helps you follow a plan. This, in turn, helps you have more money in your month because you are not spending impulsively. You also have your financial goals in front of you so you are more likely to stick to your plan.
How do you make money by having a financial blueprint for your money?
The answer is simple. If you know where your money is going each month, then you can save money and that means you are making money. You may be spending on extras that you didn’t realize you were spending on. Or impulsively spending, and you didn’t even think about it.
Once you got all of your expenses written down, it will bring your attention. Now, that you are aware of some impulse spending going on, you can make a plan as to when you spend on those items. Check out this article on how to cut your monthly expenses and your spending. Now your financial blueprint is taking shape and you are seeing more money in your bank account before your next payday.
Creating your blueprint doesn’t have to be
stressful
1. You assessed your situation on how you manage your family’s finances.
2. You came up with an answer of if it needs a makeover or not.
3. You understood your blueprint of what needs to happen to be on a good track.
All these things do not have to be stressful. How do you eat bread? Yep, one bite at a time. Just keep that mindset. You do not need to overwhelm yourself with how to manage your family’s finances. You just need to understand it!
Hopefully, these guidelines gave you some good tools in your tool belt to get a good solid plan to manage your finances.
Andy is a blogger at Penny Less Dad and a financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life.
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