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Financial Planning Series – Investment Planning

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New to financial planning? Start with the overview. Then understand cashflow and learn about insurance planning and risk management.

Investment Planning is one of the best things you can do to set yourself up for financial success. And the sooner you get started, the better off you’ll be when it’s time to use some of those funds for retirement living. But getting started can be confusing and overwhelming. Let’s break it down a little to help you feel more confident about getting started.

What is the purpose of your investments?

No doubt you have several short-term financial planning goals that might include a big vacation or down-payment for a house, but investment planning is best for long-term goals like retirement. Keep that in mind as you create your investment plan.

Allocating Your Assets

The younger you are when you start investing, the more risk you are able to take because you have a longer time to make up any losses and increase your funds. A good way to allocate your investment assets is with 70% stocks and 30% bonds.

Stocks can be both in the US stock market and the international stock market, so split your investments to 50% in each.

It’s good to divide your bond investments as well into 50% Treasury Inflation-Protected Securities (TIPS) and 50% in intermediate-term nominal US Treasury bonds.

Your overall allocation should look something like this:

35% – US stock market

35% – International stock market

15% TIPS

15% Nominal US Treasury bonds

It’s good to keep your investments at this split throughout your lifetime, keeping in mind that as you get closer to retirement you’ll want to keep a few years worth of cash easily accessible. The invested portion of your funds can stay at this same allocation.

Investment Selection

While the above may seem complicated, it’s not as difficult as you may think. All of these asset allocations can be accomplished with just four funds, all through Vanguard.

This gives you a nice mix of both low and high risk investments. If you hold your investments directly with Vanguard, there are no commissions to pay for buying and selling so your expense for each fund is anywhere from .05% to 20%. These funds provide a great way to allocate your investment account for very little money.

Why This Allocation?

There isn’t an exact science to investing and there are no “rules” about how much you need to invest and where, but this kind of split will give you good access to the stock market which is where your long-term financial growth will come from.

For the stock portion of your investments, a 50-50 split allows you to maximize your diversification while investing both in the US and internationally.

The bond investments of your portfolio are less about providing returns and more about offering protection when the stock market is down. Choosing US Treasury bonds are safe and guaranteed, providing peace of mind if the stock market is experiencing some lows.

Maintaining for the Future

Keeping your investment percentages static will allow for the most growth, versus changing your investment allocations year after year. Over the long-term you’ll see the most growth by just maintaining this balance.

With that said though, you’ll want to keep an eye on your investments and keep an open mind about possible changes you may want to make if you see an area not performing as well as you’d like for an extended period of time. You may also find that you need to make adjustments based on your own personal circumstances.

Getting started with investment planning doesn’t have to be difficult, the most important thing is to just start investing and grow your investment funds over time. The sooner you get started, the better financial shape you’ll be in when retirement comes around.

Learn more about financial planning by reading up on tax planning.

Financial Planning Series: Insurance Planning and Risk Management

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New to financial planning? Start with the overview. Then understand cashflow. 

While preparing for the future and your retirement may not be at the top of your to-do list when you’re young, it’s the best time to do it. The more years you have to invest in your retirement, the better off you’ll be when you get there. And insurance planning and risk management should be at the top of your to-do list.

When it comes to insurance, you want to make sure your family will be well provided for if something should happen to you, but you also want to plan for your own needs. Let’s take a look at what you need.

Life Insurance

Let’s hope your family never needs this, but if they do, a life insurance policy will provide much need income for your loved ones. Not only will it help them survive without your income, it will also help to provide for funeral expenses and your financial liabilities. Plus the benefits are tax-free. The younger you are when you apply for life insurance, the better rate you’ll pay. Waiting until your older to get life insurance will only increase your premiums. Look for a term policy and reevaluate your financial needs regularly so you can increase your coverage if need be.

Disability/Long-Term Care Insurance

Should you ever become disabled (temporarily or permanently) through an accident or illness, disability insurance will help to replace your lost income. It provides immediate cash flow to help you maintain your lifestyle and cover additional expenses resulting from your disability. Likewise, long-term care insurance will cover expenses and cash flow for daily living should you require longer care or need in-home nursing, rehabilitation, or a memory care facility. Everyone should have this, but if you can only afford it for one spouse, women are more likely to need it then men as they tend to live longer.

Homeowner’s or Renter’s Insurance

If you buy a house, your mortgage company will require you to have a homeowner’s insurance policy to cover the financial loss should you experience a break-in, fire, or natural disaster destroying your home and your belongings. But if you rent, your personal belongings are not covered under your landlord’s insurance policy. Be sure to have your own policy just in case of a disaster or theft.

Auto Insurance

Most states require you to have auto insurance if you drive and will ask for proof of insurance when you get or renew your driver’s license. But cover yourself a little better than the minimum standards just in case you’re ever in an accident. You’ll need liability coverage for both personal and property damages, personal injury protection, collision coverage to cover any damage to your car, comprehensive coverage in case you have a different type of accident (like a tree falling on your car), and uninsured motorist coverage in case you are hit by someone who does not have insurance and can’t pay for the damages.

Now that we’ve covered insurance needs, let’s talk about your risk management.

First of all, what is risk management?

Basically it’s identifying and analyzing how much risk certain investments have, will they grow and by how much. It occurs everywhere in the financial world including stocks, bonds and even insurance (determining how much you need and if you will actually need it). It is not a perfect science so mistakes will be made, but it’s about making informed decisions with the information you have.

How does it affect you?

Simple, it involves making decisions based on your future needs (or what you think they will be) and the financial situation you are working towards. When it comes to investing, you are able to take higher risks with your money when you are younger, leading to a higher return on your funds, because you have more time to invest. The older you get and the closer you get to retirement, the less risk you’ll want to take because you don’t want to lose a significant portion of your savings and not be able to rebuild.

Insurance planning and risk management involving your investments are a great place to start your financial planning from the ground up. Looking at these items will help you build a strong foundation for increasing your investments and making sure you’re covered for any unexpected events.

Learn more about financial planning by reading more on investment planning.

Financial Planning Series: Cash Flow Analysis and Budgeting

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New to financial planning? Start with the overview. 

How confident are you about your financial future? If you’re not sure, you’re not alone. Research suggests that only one in three Americans have a budget that they work with to manage their finances. Taking control of your spending habits and creating a plan to save and invest is the best way to gain financial security and freedom. If you’re not working with a budget, you need to be. If you’ve never budgeted before, don’t worry, this step-by-step will help you.

The first step is to determine your cash flow; that is to say how much money is coming in and going out. Your total income is the amount left over after taxes and deductions like 401(k) contributions. If you’re self-employed or you’re paid on a commission basis, take a look at the past four to six months of income to get a monthly estimate.

Now list all of your fixed expenses, the things that are non-negotiable like school loans, car payments, mortgage or rent, and food. Also list any essential utilities like electricity, gas, water; your cable bill is not included as essential.

Don’t forget things you pay annually or semi-annually like auto insurance and repairs (oil changes, new tires, etc.), and property taxes. If you have pets, don’t leave out annual vet exams. It might be a smart decision to start thinking about investing in an affordable pet insurance! Take the amount you pay each year and divide it by 12; this is the amount you need to budget monthly.

Next up is variable and non-essential expenses. This would include items like going out to dinner, cell phone bill, cable bill, monthly or yearly membership fees and subscriptions. If you would still like to enjoy these simple pleasures, YourBestDeals.com can give you discounts. Make sure to create a category for “extras” that you usually don’t remember buying or add into your budget like trips to the local coffee shop.

If you’re not sure how much you’re spending on these things, it’s a good idea to figure it out. You may be surprised. Go through your bank records for the last three months and calculate how much you’ve spent on small, non-essential expenses. You may find areas that are large financial drains where you can cut back. Take what you think is a reasonable amount to spend on these non-essentials and add them into your budget.

The last step is to figure out what’s left. When you take your after-tax income and deduct all your fixed and variable expenses, what’s left is money that can be put toward your financial goals like saving, insurance, and retirement.

Saving should definitely be a higher priority than spending so if what’s left isn’t enough to put something aside each month, you may want to review where your money is going and find more ways to cut back.

Now that you have a budget in place, you’ll want to review it regularly, once a month or so, until you’re certain that it’s working for you. A good rule of budgeting is the 50/30/20 rule which says that 50% of your income should be put towards your fixed expenses, 30% towards variable expenses, and 20% towards saving and investing. If you can manage to work within these parameters for your budget, you should be off to a good start for your financial future.

Learn more about financial planning by understanding insurance and risk management. 

Financial Planning Series: Financial Planning Overview

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Building a successful financial plan can be confusing and overwhelming. Especially if you don’t know what you need to know or even what questions you should ask. I’ve got you covered! Over the next several weeks we’ll be taking a look at the many important ingredients to a successful financial plan.

Before we get started though, let’s take a look at the overview and figure out what ingredients your financial plan needs.

Cash Flow Analysis – Analyzing your monthly and yearly cash flow is an important factor for every other aspect of your financial plan. After all, you won’t know how to budget, how much you can invest, and how to plan for retirement without knowing how much money you have coming in and going out. Understanding your cash flow, both now and for the future, will help you make well-formed decisions for your finances.

Want all the details? Learn more on Cashflow Analysis here.

Budgeting – If you don’t yet work with a monthly and yearly budget, we’ll be talking about why it’s important, how to create one, and how to stick with the budget you create. Knowing where and how you have to spend your money, finding ways to save, and planning for the future will help you make decisions about how much you can really afford to invest instead of just guessing and hoping for the best.

Insurance Planning – We all know that we need health insurance to cover medical expenses and vision and dental insurance to get our annual checkups, but what about other types of insurance. Do you know if you need life insurance? Do you know the difference between term and whole life insurance? What about long-term care insurance? We’ll be taking a look at the different types of insurance policies you may have not considered yet but should to make sure that you and your family are well protected.

Get all the deets on Insurance Planning by reading more.

Risk Management – What does “risk management” even mean? And what does it have to do with you and your investments? We’ll take a look at the different types of risk so that you can determine, based on your financial goals, how much risk you should be willing to take with your money and why.

Investment Planning – When thinking about investing money for the future, the choices can be overwhelming. And how do you know if you’re making wise decisions? We’ll take a look at what it all means and how to create an investment strategy that will give you confidence in your financial future.

Basic Income Tax Planning – The downside to increasing your net worth is that you have to pay more taxes. What do you need to know when tax time comes around? Should you hire a professional or can you handle it yourself? Are there ways to reduce the amount of tax you’ll have to pay? All these questions and more will be answered to help you get ready for Uncle Sam’s annual request for payment.

Retirement Planning – At some point, you’ll no doubt want to retire. And you may even want to retire early. How will you know when you can retire and still be able to maintain your lifestyle for the remainder of your life? And how do you create a financial plan to help you get there? And what happens if an unexpected financial emergency arises after retirement? Don’t fret, I’ll have all the answers for you.

Estate Planning – In your final stages of life, you’ll want to make sure that everything you’ve worked so hard for is there to protect and help your loved ones when you’re gone. Do you need estate planning? Is it something you can do yourself or are you better off hiring a professional? What happens to your business if you have one? And your savings, trusts, and investments, who gets them? You may not think you need estate planning yet, but it’s never too soon to start thinking about it and building towards your plan.

The Financial Planning Series is coming soon so be on the lookout for all of these great topics so you can feel secure in your financial future.

 

Financial Habits to Set Up in 2017

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2017 is a brand-new opportunity to meet goals and start habits that we want to prioritize over the span of the year. Resolutions are made every year to stop smoking, eat healthy, or go to the gym. Although physical resolutions are terrific, it is also important to place focus on our financial habits as we start the new year. What type of financial goals do we have for ourselves? What habits should we form now to help us meet those goals? Here are five financial habits that will be beneficial for 2017.

Budgeting

Create weekly and monthly budgeting plans, and take time afterwards to review how well you are sticking to the budget. When you have a plan in place, it is much easier to save money and spend less. Reviewing how you are doing regularly will help you to evaluate where you are financially and what you should change.

Setting financial goals

Set some goals that are important to you and be vigilant in sticking to them. One goal may be to create an emergency savings fund of $2,000. Another may be to stay under budget for 6 months in a row. Whatever your goals are, write them down so that you can hold yourself accountable.

Avoiding debt

One of the greatest habits you can keep is to never create debt for yourself. This means always living beneath your means, and NEVER above. Can you create this habit for yourself for 2017? If so, you will be a happier you with healthier finances.

Contributing to retirement

Create a Roth or Traditional IRA and make it a habit each paycheck to contribute into the fund. It is never too early to start preparing for retirement. The sooner you start, the more money you will have saved up when the day comes.

Giving (some people may call this Tithing)

Make it a financial habit this year to give to others. This may come in the form of giving to a particular charity, tithing at church, or donating money to a cause you believe in. When we give to others, we are blessed in return. If allowed the opportunity, giving may do even more good in your life than you ever could have imagined.

Think of whatever habits are important to you financially this year and write them down! Writing down what we want is so important because only then can we continually hold ourselves accountable. Hang your list on the fridge or sit it by your bed. Every day make it a priority to continue these habits in your life.

If you think these 5 habits listed above could be beneficial to your own personal finances, then I encourage you to truly try to stick to them over the next 12 months. It is the small things that you do every day that bring about big change in your life. Healthy habits create healthy finances, and that’s the goal that we all should be aiming to reach. Good luck!

For more on forming habits, and ways to get rid of bad ones, check out these great articles.

5 Habits That Cost You Thousands
Increase Your Financial Stability by Taking Advantage of New Spending Habits
Sandy Smith Talks Gen Y Money Habits

 

Seize the Day: 5 Cities That Offer Graduates Great Opportunities

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City BusinessThe time after college graduation can be both exciting and a bit scary. After all, it’s your time to shine and seize the opportunities that come your way. While you may feel like renting your own apartment or house is the ticket to freedom and independence, living at home can help you save money on rent and perhaps be closer to your job.

But oftentimes this method of saving money can end up making people lazy, complacent and unambitious. It’s better to set the tone for the next couple years of your life and get out of your comfort zone. Sometimes that means moving to a new city in search of a new job, new friends and a new life. If you’ve decided it’s time to take the plunge into your adult life, it’s important to become educated about which cities provide the best opportunities for recent graduates.

Here are some quick stats on the five best cities for recent college grads.

Arlington, Virginia

  • Jobs in management, business, science or the arts: 67.1 percent
  • Percentage of population age 20-29: 21.4 percent
  • Percentage of population 25 and older with a bachelor’s degree or higher: 71.5 percent
  • Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 31.4 percent
  • Median earnings for residents 25 and older with a bachelor’s degree: $72,406

Madison, Wisconsin

  • Jobs in management, business, science or the arts: 52 percent
  • Percentage of population age 20-29: 24.7 percent
  • Percentage of population 25 and older with a bachelor’s degree or higher: 56.8 percent
  • Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 24.9 percent
  • Median earnings for residents 25 and older with a bachelor’s degree: $45,176

Washington, D.C.

  • Jobs in management, business, science or the arts: 60.5 percent
  • Percentage of population age 20-29: 20.7 percent
  • Percentage of population 25 and older with a bachelor’s degree or higher: 55 percent
  • Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 26.1 percent
  • Median earnings for residents 25 and older with a bachelor’s degree: $62,475

Boston

  • Jobs in management, business, science or the arts: 47.2 percent
  • Percentage of population age 20-29: 24.8 percent
  • Percentage of population 25 and older with a bachelor’s degree or higher: 46.5 percent
  • Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 29.1 percent
  • Median earnings for residents 25 and older with a bachelor’s degree: $55,810

Minneapolis

  • Jobs in management, business, science or the arts: 48.3 percent
  • Percentage of population age 20-29: 22 percent
  • Percentage of population 25 and older with a bachelor’s degree or higher: 48.1 percent
  • Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 22.4 percent
  • Median earnings for residents 25 and older with a bachelor’s degree: $46,837

Keep in mind, it’s important to have a clean driving record for potential job applications. Don’t underestimate the possibility that certain jobs will require you to utilize your car during work hours. In general, it’s also important to stay safe on the road as you commute to and from work. Refresh your memory on the rules of the road.

If you find yourself grabbing a few drinks with friends after work or on the weekend, be smart about who drives. Use Uber or Lyft and eliminate the chances of getting a DUI. If you strive to maintain a clean driving record, you will — and it will save you a lot of unnecessary hassle in the future. Growing up means not only preparing for a big move, but also acting responsibly in all areas of your life.

Yes, Someone Is Taking Your Money

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When we’re kids, the world of grown up finance seems distant and confusing. Bank accounts and mortgages are words we didn’t understand. Our only experience with money was the cash we carried to school, or the allowance our parents may have doled out to us every month or so. We might have lost a quarter while playing, or given up our lunch money to the bully at recess. Whatever it was, grown up money habits seemed safe and secure. We figured that once we got to be adults ourselves, we could lock away our savings in an impenetrable vault and live without worry that someone else might take it.

The thing is, though, people do take your money. Today more than ever, regular people are vulnerable to the predations of individuals and corporations who make it their business to steal or skim as many dollars as they can get access to. It’s not too different from the schoolyard bully situation, though today’s ripoff artists like to hide behind suits and expensive desks, or even cloak themselves in digital anonymity. For people looking to make their money go farther and last longer, it’s imperative to stop these characters before they start. It’s almost always easier to prevent theft than it is to recover funds. Here are some things to keep in mind.

  • PPI and Other Unwanted Subscriptions. PPI, or Payment Protection Insurance, is a fine financial product that was unwittingly foisted on many borrowers in England over the past couple of decades. It’s not that the insurance was bad. Most people just didn’t want it, and didn’t know that somewhere buried in their dozens of loan application documents was a contract they were signing for the coverage. Today there are many class action lawsuits in motion, and the PPI deadline is quickly approaching. There are examples of many similar ripoffs, but sometimes we’re our own worst enemies. Ever subscribed to entertainment or monthly shipments from Amazon or other providers? It’s easy to forget about these services and just let our funds slip away monthly.
  • Encryption and Anonymity. If I were to ask you which online passwords were the most important, which would you identify. No, not Facebook (though it’s not totally insignificant). No, not your HBO NOW account. Email and Banking? Yes! Totally! It’s getting easier than ever for hackers to crack weak passwords. When it comes to email, this is the gateway to all of the rest of the information available about you online. Most of us have our other passwords mentioned somewhere in our emails, so hackers often find financial passwords and move on from there. If they can get through a bank password without cracking your email, all the easier. Try Google 2-Step Authentication for your most important web accounts, and request that your institutions support 2-Step Authentication if they do not already.

It’s harder than ever to get through life without someone picking your pockets. In the digital world, it’s just like the old playground bully situation. Keep your stuff safe by paying attention and preparing for the worst. You might be able to keep your money to yourself.

Five Ways to Save on Your Business Insurance

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Man with city in handBusiness insurance can get expensive. In 2014, the average cost of a small business insurance policy was $725.33 across all industries, business sizes and policies, according to Insureon. This cost rose with the number of policies purchased. Businesses buying two policies paid an average of $1,405.86; those purchasing three paid $2,424.53; and those buying four spent $3,817.68.

Type of policy also affected cost, with general liability insurance averaging $425 and employment practices liability insurance averaging $1,585. Your industry may also affect your costs, with general liability insurance for a consulting company rising to $3,000 a year, while a landscaper might pay $15,000, says Trusted Choice.

All these costs add up, but here are a few strategies to help lower your rates.

Compare Prices

The most basic step to take is to compare rates from different providers. You’re probably familiar with Progressive’s commercials about comparing quotes on car insurance, but the company also offers quotes on business insurance policies including general liability insurance, commercial auto insurance, property insurance, workers’ compensation insurance, professional liability insurance and special policies designed for contractors.

Other business insurance sites to investigate are InsWeb and NetQuote.

Buy a Bundled Package

If your business needs multiple policy coverage, another way to save is by buying a bundled package, which can be cheaper than buying individual policies. A popular package for small businesses is a Businessowners Policy (BOP). As Forbes explains, a BOP typically combines general liability and property insurance with policies such as business interruption insurance, vehicle coverage and crime insurance.

BOPs do not typically include certain types of policies such as professional liability insurance, workers’ compensation or disability insurance. However, you may be able to negotiate a customized BOP that includes some of these policies added on. Some commercial insurance providers may bundle in your home and car insurance.

Choose a Higher Deductible

HomeInsurance.com editor Arthur Murray suggests lowering your business insurance costs by increasing your deductible, the amount of money you have to pay before your insurance policy pays their portion. Choosing a higher deductible reduces the amount of money your insurance company pays in the event of a claim, so if you’re willing to pay a higher deductible, insurance providers are willing to lower your premium.

Of course, this will make you liable for paying your deductible should you need to file a claim. Choosing a higher deductible will also discourage you from filing small claims, potentially making you eligible for a discount if you remain claims-free for a long period. Some providers may also offer a discount if you pay your premium in a lump sum.

Reduce Your Risk

Insurance companies are willing to offer discounts to clients who present less risk. You can lower your risk by taking proactive loss prevention steps.

For instance, implementing a theft prevention plan by taking steps such as installing IP cameras for surveillance can help persuade your insurer to offer a lower rate on crime insurance.

Starting a workplace safety program and making disaster preparation plans are other examples of steps to take to reduce your risk in the eyes of your insurance provider.

Work with Your Agent

Consult your insurance agent for insight into the best ways to bundle your insurance and which prevention steps to take. You should also keep your agent updated about any major changes in your business that may affect your insurance needs. Allstate recommends reviewing your insurance coverage with your agent once a year.

Strategies for Handling Unexpected Expenses

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business idea, education, people and technology concept - close up of female hands with calculator, pen and lighting bulb drawing in notebook on table

Only 38 percent of Americans have enough money saved up to cover an unexpected expense such as a $1,000 emergency room visit or a $500 car repair, Bankrate found. Twenty-six percent of respondents said they would cover expenses by reducing spending on other things, 16 percent would borrow from family and friends, and 12 percent would use credit cards. What would you do if you had to pay for a sudden bill? Here are a few strategies to help you prepare for the unexpected.

Build an Emergency Fund

Personal finance author Dave Ramsey recommends saving up a $1,000 emergency fund before pursuing any other financial goals. The purpose of this is to cover unexpected immediate expenses, such as fixing a plumbing emergency or buying new car tires so you can get to work. Store this money in a separate checking account so you’re less tempted to spend it.

After meeting this initial goal and paying off non-mortgage debt, Ramsey recommends saving up enough to cover three to six months of living expenses, in case you lose your job or face a similar situation. In today’s tough economy, saving enough for nine or even twelve months isn’t a bad idea.

Start Budgeting

In order to save up an emergency fund, it will help to create a budget. Two out of three Americans don’t prepare a detailed budget each month, according to a Gallup poll. If you’re new to budgeting, a simple guideline experts recommend is the 50/20/30 rule.

The 50/20/30 rule means that you put 50 percent of your monthly income towards essential expenses such as rent, 20 percent towards financial goals such as building savings and repaying debt, and 30 percent towards discretionary spending on non-essentials such as clothes or entertainment.

Buy Insurance

Having adequate insurance is another preventive measure that can keep you out of financial emergencies. The NEA recommends that in order to have comprehensive insurance against financial emergencies, you should consider a range of possible policies.

Health insurance is essential in the event that a medical emergency treated at somewhere like CSU urgent care hits you with a high hospital bill. Life insurance can protect your loved ones in the event of your death, and some policies enable you to borrow or cash out funds. Disability insurance safeguards you in the event that you’re unable to work. Mortgage life insurance can help your loved ones cover your house payments in the event that something happens to you. Homeowners or renters insurance can protect you against emergencies such as fire or theft. Auto insurance can protect you from the cost of having to replace a vehicle or make repairs.

Finding Financing When You Aren’t Prepared

What if it’s too late to take the preventive measures above and you need to raise funds fast? In this case, you still have a few options. Using your credit card or borrowing from family or friends are the most common strategies. If you need immediate cash and you have a credit card but you can’t take a cash advance or would prefer to avoid the interest, you might offer to take a friend shopping on your credit card in exchange for them giving you the amount of cash you need.

If you’ve got something worth selling, you can use it to raise cash. Some good candidates include gold, silver, collectibles, extra clothes, and books.

You can also sell your labor. If you have freelancing skills in areas such as writing or graphic design, you might advertise them online. Sites such as TaskRabbit let you connect with consumers who need help with chores such as moving, home repair, cleaning, shopping, and event planning. You may also be able to convince people you know to give you money in exchange for promise with help on tasks. For instance, you might promise to babysit a friend’s kids.

Another option is crowdfunding. GoFundMe includes a section where you can raise funds for emergencies. Finally, Need Help Paying Bills lists a wide variety of charities and other resources that provide assistance with bills, mortgage, debt, and other financial burdens.

 

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4 Life Hacks to Maintain Your Social Life While on a Budget

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Friends Eating

One of the first things to go in serious debt elimination or cash saving budgets is entertainment. When you’re used to an active social life, this can become the most challenging part of the whole process. After all, just because you’re on a spending diet (or fast) doesn’t mean your friends are. They are used to you doing things with them—things that, more often than not, cost money—and they aren’t going to stop inviting you to fancy dinners just because you’ve announced your allegiance to Dave Ramsey.

So how do you maintain you’re social life while strapped for cash? Balancing a budget while keeping your social life alive is not only possible, it can be fun. Your budgeting days offer the opportunity to switch up the social routine by adding creative activities to the mix. Here are four hacks to stay social without spending an arm and a leg.

For the Drinkers

Host a beer tasting party. Not as stuffy or expensive as a wine tasting party, and slightly classier than bring-your-own-PBR Scrabble night, a DIY beer tasting party will thrill your social group. Invite beer-loving friends to bring a six-pack of a unique brew and hold blind tastings throughout the night with homemade score cards. Vote on first, second and third place.

For the educational-minded, have participants explain the history and science behind their beers. If you’re lucky, one of your friends will bring something fancy like Guinness’s new Nitro IPA—a smooth, creamy pale ale made with Guinness yeast—and teach you all about nitrogenated beers.

For the Foodies

Throw a recipe swap party. Improve your foodie game, save some cash and hang out with your friends in a fresh way all at the same time. It’s the same idea as a potluck except you choose a theme for the dishes and everyone walks away with a bunch of new recipes. Themes could be anything from appetizers to culturally inspired dishes. Along with their dish, each friend brings a stack of recipe cards to hand out. As the penny-pinching host, your goal is to keep your dish as simple as possible by making something from ingredients you already have, or mostly have, in the house.

For the Fashionistas

Organize a clothing trade. If fashion’s your jam, organize a clothing swap with your chic friends. Send out an Evite a month in advance, being sure to note a precise amount of items each person should bring to ensure quality, fair selections. Depending on how insane your friends are about free clothes, you might need to implement some additional rules such as a lottery system detailing the order in which people “shop” for clothes. This event is a two-birds-one-stone situation: an innovative way to spend time with friends and a fresh new wardrobe—for free.

For Anyone, Anytime:

Propose anything nature-oriented. If you’re worried about telling the whole world that you’re broke—don’t. Simply become the friend who has taken a sudden interest in Mother Nature. Most outdoor activities such as hiking, camping and biking are free or extremely affordable. Even getting together with a friend to walk the dogs through the park or a nature reserve can set the stage for quality time at the best price.