financial goal

Apache is functioning normally

Inside: Learn why you may want to drive a beater car. Plus find tips to make sure you are getting a good deal.

Okay, let’s preface with… my dad has been in the car industry for over 40 years. So, I have grown up in dealerships, car garages, and service centers. My friends call me an expert, but I prefer to just be helpful so they don’t overpay when buying or getting repairs done.

Now, that authority is established, let me help you understand the beater car mentality.

If you are looking for a cheap used car, but don’t know where to find one, check out this guide that will help you get started.

Buying a used car can be tricky. It’s not just about finding one that is inexpensive, but also getting the right size for you and your lifestyle.

There tends to be more mystery surrounding what it’s like buying a new car from the dealership than an old one from somewhere else.

The main reason is that usually, they do not disclose how much of the price tag is going towards depreciation. What happens when your brand-new vehicle goes through years worth of wear and tear? It depreciates at a staggering rate and you end up with the same old car that’s only worth what is left of it.

Did you notice that keyword in the last paragraph – depreciation!

For many who are choosing to lower their costs and pursing FIRE movement, they know that a brand new car will depreciate the most within the first five years.

In this article, I will be shedding some light on how to find a cheap used car in your area if you are shopping for one. Also, if you are maintaining a beater car, you will find the tips to make sure your car lasts many more years.

Driving a beater car is not a sign of being poor or reckless. You still need proper auto insurance to drive.

With this guide, you’ll find out which cars have what features and quality that will fit your needs and lifestyle. Now, let’s find a car with features that are important to get around town and save your wallet!

Beater car is a term used to describe a vehicle that doesn’t look like it has any value. But could still be worth something if you have the right tools and know-how!

What Is a Beater Car?

A beater car is usually an older, higher-mileage vehicle that still runs and is legal to drive.

The term “beater” was coined because many of them have cosmetic damage and mismatched paint.

A beater car is rarely pretty but “gets the job” when it comes to getting you and yours from here to there.

What is the point of a beater car?

A beater car is a reliable and easy-to-fix car that is cheaper than a new car.

The point of a beater car is to save money and reduce the amount of maintenance that needs to be done on it.

It has little intrinsic value, & while not “easy on the eyes,” a beater car is generally a smart choice to wear into the ground.

There are many advantages to buying a used car, including insurance savings, tax breaks, and lower operational costs.

Beaters can also provide peace of mind because they are easier to repair if something does go wrong.

Should you drive beaters?

People are in different situations when they are buying cars.

The best customers for cheap cars are either first-time car buyers or people who have to save some cash to reach a financial goal they set in place.

On the other hand, if you like reliability, make income from your car, enjoy looking good, or do not know your way around a car, maybe you should skip a beaters car.

How Can You Recognize a Beater Car?

Picture of a beater car.

A beater car is a car that is older and cheaper than other cars in its class. It may also have high mileage or corrosion on the body. You can look for these signs to help you identify a beater car.

More than likely, they will be easy to spot. Many common ones include Honda, Toyota, and Suburu. Those are the engines that can keep on running!

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Is a Beater Car Worth It?

Picture of a beater car and some money.

Well, there are two sides to the coin on this one. So, we will present both arguments first.

Definitely Worth It

Simply put, a beater car is one that doesn’t cost a lot of cash. You can find reliable and affordable beaters if you know where to look. In most cases, the best way to find a cheap used car is by checking out local classified ads or online listings.

Beater cars are a great way to save money on all sorts of fronts.

For starters, they’re cheaper to buy than most other cars. Additionally, used cars can help with taxes, insurance, and maintenance costs.

In short, a cheap car is a great way to get around while keeping your expenses low.

Um, Hello – No!

A beater car is not worth it. There are many reasons why you should not buy a beat-up vehicle. The first reason is that they are cheap, and the owner will most likely not take care of them properly. Not only will the car need repairs, but you could also have to buy a new one.

Didn’t you know that you can lease a vehicle for next-to-nothing with a low-interest rate? (p.s. don’t fall for that line. Leasing a car is the worst thing you can do financially. That is a post for another day on leasing vs buying a car.)

All in all, it depends on what you need and what you can afford at the moment. For many, the answer to this question is yes, but only if you are looking for a cheap car.

What is the price of a beater car?

A used car is a vehicle that has been previously owned, so it has depreciated in value.

The price of a beater car is difficult to determine and varies depending on the quality of the vehicle, its condition, and what it might have been used for. Typically, you can find a solid mechanical vehicle for around $5000.

You can always check against the KBB price and run the VIN to check its reported history.

Beater Car Benefits:

The benefits of a beat-up car are listed here. Many people are proud of their vehicles and proudly want to be a part of the 200k miles club.

  • They include the opportunity to drive around with no maintenance, the ability to use it for parts, and the freedom from monthly payments.
  • A used car is cheaper upfront than a new car.
  • Cheaper on insurance. Beater cars require minimum coverage, so they’re cost-effective for monthly expenses.
  • A beater car is cheaper on gas (this is true for sedans; not so much for SUVs or trucks.)
  • The car will retain its value and not depreciate much more.
  • The car can still be sold for what was paid for it, as long as it is in the same condition.

Now, let’s dive a little deeper into each of these.

#1. Cheap Price

One reason to prefer a cheap car is because of the low price point.

For the first time ever, the price of a new car tops $47000 – an all-time high (source). That is a whole lot of money especially when it loses most of its premium in the five years.

Driving a beater may not feel as luxurious as driving a newer car, but the cheap price point lets you save money.

#2. No Car Payments

There are many benefits to not having car payments.

One of the most obvious is that you save money. In addition, not having car payments can also reduce stress and anxiety levels, because you’re not as tied down to a monthly payment.

It is not normal to have a car payment your whole life. That lifestyle will cost you a fortune with lifestyle creep.

#3. Cheaper Gas

Old and beaten-down cars that don’t require premium fuel will be heaven for your wallet, saving you hundreds, maybe even thousands of dollars per year.

Gas prices vary throughout the day, so drivers should plan their trips around the cheapest prices. In addition, using a cheap car can save you money on gas in the long run.

#4. Cheaper Parts

First of all, you need to find a reliable mechanic or be able to do some of the work by yourself.

In addition to being cheaper, older car parts are also easier to find. Car parts are still available from common car manufacturers, so you don’t have to go through a premium supplier to get what you need.

Additionally, the older vehicles do not have the fancy chips like the newer cars that make the cost of parts increase and the difficulty of getting those types of parts.

#5. Minimum Insurance Coverage

Buying a used car saves money on car insurance.

You only need to meet the minimum insurance requirements of your state, and you don’t have to worry about finance companies taking out full coverage collision and comprehensive insurance.

However, you may want comprehensive coverage if the cost is minimal compared to replacing the car. For instance, if you pay an additional $50 per year for full comprehensive coverage that will give you the $5k worth of your car back if something happens. That may be worth the extra cost.

Plus driving a car with a lower resale value can help save on vehicle taxes.

#6. Less Depreciation

Older cars have already depreciated in value over the years, so they aren’t going to lose much more during the period of your ownership.

Plus if the engine gives out, you can always sell it for scraps and parts at the local junkyard. That will help you recoup costs for another one.

Remember, you wipe away value from your brand new car once you drive off the dealer’s lot (source). This is a hot debate on whether your car is an asset or liability.

#7. More Freedom

When you are not bogged down by expenses of maintaining a high-value car, you have more freedom.

This is more freedom in your budget and more time freedom as you don’t have to work hard to pay for your mode of transportation.

Think about it… if you invested $500 a month for seven years at the average rate of return of 8%, you would have accumulated $55,000. Compounding interest will do amazing things for your net worth.

Beater Car Downsides:

Saving money is the biggest benefit of buying a used car.

  • Beater cars are potentially less safe than modern cars.
  • Long-distance car rides might not be possible with a cheap car
  • Downsides to having a good beater car include the possibility of breaking down and being far away from home if needed.
  • Possible more maintenance.
  • There is more risk. You don’t want to gamble.

#1. Less Safety

Cars from before the 2000s don’t have the same crashworthiness as newer cars.

This is a factor that you cannot deny and a serious factor when considering your purchase.

In a collision, they are more likely to sustain damage and injure the passengers inside.

#2. Low Probability of Longer Trips

These are great for commuting around town and getting you to and from.

However, there is a low probability you want to use them on longer trips.

Given there are many things that could go wrong, you don’t want to break down far from home or even a nearby city where you can get repairs done.

You don’t anticipate needing to take this car on long trips in the near future because there is a low probability of needing to take it on longer trips. This is due, in part, to the fact that it doesn’t have great gas mileage and you don’t think you’ll need to use it for long distances.

#3 – Higher Maintancence Costs

You always need a sinking fund for repairs when you own a beater. Period.

You are one drive away from something going out and needing to be repaired.

Also, you need to find a quality mechanic that thrives on keeping older ones running without nickel and diming you along the way.

You cannot use a dealership service center to maintain your baby.

Which Are the Best Beater Cars?

Picture of a honda accord as one of the best beater cars.

The best beater cars are cars that are cheap, have low mileage, and are easy to repair. The cars are great to use as a daily driver, but they are not ideal for long distances.

Cheap cars can be a good option for car buyers on a tight budget or for young drivers.

There are many reasons to consider buying a used car over a new car, but the decision ultimately depends on the buyer’s needs and preferences

What are some good beater cars?

These reliable beater cars can be a great way to save money on car buying.

Some of the better cars to choose from that would make for a great beater include Toyota Corolla, Honda Accord, and Honda Civic.

They are old, but still in pretty decent shape. All in all, you want to look for one that is very well maintained and highly cared for. The ones sitting in your grandparent’s garages that were hardly driven and immaculately maintained.

What to Check Before Buying a Beater Car

The best way to ensure that you’re buying a good quality car is to do some research and make sure you know your facts.

All dealers are not created equal, so it’s important to check out what other people are saying about the dealer. Also, make sure that the car you’re buying is in good condition and has a clean title.

Many times, a beater is a car that is used to transport things such as furniture, trees, etc. Sometimes they are usually not very well maintained and maybe not very well cared for.

However, a used car can still be a good car for someone who is looking for a cheap car and does not care about the condition of the car.

Specifics to Look For:

  • Low mileage
  • Consider the brand/model
  • Fuel economy
  • Exterior and interior condition
  • Reliability
  • Maintenance history
  • Number of owners
  • Number of accidents
  • Anything rebuilt like the engine

For example, one of the Toyota Corollas I owed was older but had a new engine installed. Thus, the value of the Corolla was higher as the engine had minimal miles on it.

In fact, here is a picture of it… doesn’t look like a junker right?!?!

Questions to Ask Yourself:

Before buying a used car, you should check the following:

  • Is it in good shape?
  • On the engine, is it manual or automatic?
  • Is it the right size for your needs?
  • Does it have enough power?
  • Does it have enough room?
  • Is it reliable?
  • Is it comfortable?
  • Easy to drive?
  • Is it safe?

How to Buy a Beater Car

Picture of an infographic on buying a car.

When buying a beater car, you should check the following things:

1. Finding One to Buy

Many times, this will be the hardest part. Sometimes, the easiest if someone needs to get rid of one quickly.

Try buying a beater car from friends or family.

The next place to check is your mechanic. Remember, they are your best friends in this process and always know the movement of these types of cars.

Also, you can check online – Facebook Marketplace, NextDoor and Craigslist are great options but follow your instincts.

Lastly, you can try a local dealership. However, be very careful as you don’t want to be scammed or pay more than the car is worth.

2. Check the VIN Number

VIN stands for Vehicle Identification Number. A VIN is a serial number that identifies the make, model, and vehicle type of a motor vehicle.

The VIN number is a unique identifier for a car that can be used to learn about the car’s history and identity. The number is usually 17 characters long and contains both numbers and letters. It can be found on the dashboard, driver’s side door, or engine of the car.

More importantly, it can be used to learn about the car’s history and identity, including its make, model, year of manufacture, and more. Even if the car was stolen.

3. Look at Mileage

Beaters usually have high mileage, but how high is too high?

Do your research for what could be a red flag. Look up how the specific make and model you’re considering holds up in high mileage.

In this regard, lower is better, although beaters will generally have higher mileage than a newer used car. Look for beaters with 80,000 to 150,000 miles on the odometer, but don’t go over 150k miles. You want to drive it into the 200k mile club, right?

4. Run the Auto History Report

You want detailed information on a car’s history, including maintenance and repair records. This can be helpful in determining whether or not a car has been well taken care of. If a car has had many owners in a short period of time, it may be an indication that the car was neglected.

The VIN number (vehicle identification number) helps you obtain a vehicle history report by running through a service, like CARFAX. Companies like VINCheck.info and AutoCheck provide vehicle history information, too.

A good indication that a car may have been neglected or doesn’t run well is the fact that it has had many owners in a short period of time.

5. Checked by Your Own Mechanic

If you haven’t figured it out by now, a trusted mechanic is a must!

Before agreeing to the purchase, you must have the vehicle independently audited by your own mechanic. This may come at a small cost, but it is better to know the condition of the mechanical systems before you purchase.

Also, your mechanic can tell you what you should pay for it as well as any outstanding repairs or maintenance that needs to be done.

6. Passed State Inspection

When buying a car, it is important that it passes state inspection. If it doesn’t, you may end up spending more cash on repairs and/or fines.

You can ask for the last inspection report. If it has been more than a year, it is worth testing it again.

In any case, you don’t want to buy a car only to have it break down on you soon after.

7. Take it for a Test Drive

When you’re looking to buy a used car, it’s important that you take it for a test drive. This allows you to listen to any loud noises and also gives you a chance to feel the car out.

If something doesn’t feel right, then it’s probably not the right car for you.

When you’re looking to buy a used car, it’s important that the seller allows you to take the car to a mechanic for a test drive. If they don’t, it’s probably because they’re trying to hide something and it’s best to move on.

Fixing a Beater Car:

The best option for fixing a beater car is always to do the repair yourself. This will save your finances and allow you to learn more about how your car works. There are a variety of resources available online that can help you with this process, including videos, articles, and forums.

If you find a car with engine problems, you will need to consult a mechanic. The problem may be something simple that is quick fixes with a tune-up, or it may be more serious.

If the cost of repairing a used car is almost as much as what you paid for the car, then it may be time to move on.

Selling a Beater Car:

The process is very similar to buying it except now you are the seller!

The same places you would look for one would be the same places you would sell it – friends, NextDoor, Craigslist, mechanic, or Facebook Marketplace.

You might even be able to get some cash for your beater car by trading it in at a dealership. The dealership will likely give you less than if you had sold the car to a private party, but it’s better than nothing. However, some dealerships have pretty awesome trade-in policies to get you in a new and more expensive ride!

Reasons NOT to Buy a Beater Car

The most common reasons not to buy a used car are that they are very expensive to fix, impractical in terms of fuel efficiency, and require more time and effort than expected.

However, those of us who have owned older sedans, SUVs, or trucks know the significant savings associated with it and get many weird looks for others.

Top 10 Reasons NOT to Buy a Beater Car:

  1. You want/need a good-looking car.
  2. High reliability is a priority.
  3. You are a one-car family.
  4. You will lose your mind trying to fix it.
  5. It’s going to break down and you’ll be stranded somewhere, losing money.
  6. You will have to get a new car eventually anyway.
  7. It’ll cost you more money in the long run because it’s not worth fixing up and selling later on.
  8. You won’t be able to sell it for what you paid because it’s too beat up.
  9. You think leasing a car is a better deal.
  10. Deep down, you think a car payment is normal.

Is an Older Beater Car an Issue for You?

Beater cars can be a good option for people who want to save money on their car costs.

There are many advantages of a cheaper car including avoiding car loans and down payments, cheaper gas, and minimal insurance requirements. Plus used cars have already lost much of their value and are a better investment.

Maybe a full one beater isn’t right for you, but maybe a seven-year-old minivan with 85,000 miles is perfect.

In all honestly, people who are looking for a cheap car should consider buying an inexpensive car instead of a luxury car.

Now, I want to hear your favorite stories about your precious gem and how many miles it lasted…

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

Apache is functioning normally

According to the Motley Fool, the average American family has $7,630 in credit card debt, $11,244 in student loans, $8,163 in car loans, and $70,322 on a mortgage.

However, before you think the above amounts seem low, these figures include those who don’t have any debt. So, for example, when you only factor in those who actually have a credit card balance, the average amount shoots up to over $15,000.

All of the above shows that the average family has a lot of debt.

You’re different, though. If you’re reading this post, you are either close to paying off your debt or already have.

Paying off your debt, whether it be from credit cards, student loans, a mortgage, or something else, is an exciting time. A person works extremely hard and sacrifices many things in order to beat the “norm.”

But, what’s next?

Many don’t think about what to do after they pay off their debt. This can be a mistake and may even lead to someone falling back into debt.

As everyone probably knows, debt is easy to fall into, and that’s the last thing anyone wants after they have worked so hard to pay it all off. Here are my tips for life, after paying off your debt.

Carefully celebrate your debt-free life.

I recently heard about someone who paid off their debt and then threw a HUGE party to celebrate. This person bought drinks for everyone, had a caterer, and more.

I can only imagine how much this newly debt-free person had to pay for this kind of celebration and whether or not it put them back into debt. For some, this may be a fun way to celebrate, but it’s definitely not for everyone.

There are plenty of ways to commemorate your new, debt-free life. You don’t need to spend a ton of cash, or go back into debt to celebrate.

Here are several examples of how you can celebrate your new, debt-free life:

  • Throw a frugal potluck. Just as much fun as a catered party!
  • Have a nice family dinner at your favorite restaurant.
  • Pay for a fun experience with cash that you’ve saved up, such as a vacation, skydiving, a visit to a theme park, or something else.
  • Do a debt-free dance.
  • Scream “I’M DEBT-FREE!”

Think about getting rid of your credit card.

If you fell into credit card debt but still have a credit card, you may want to think about getting rid of your credit card completely.

While there are many benefits of having a credit card, there are negatives as well. For some, credit cards can easily lead to racking up more debt.

You should carefully examine your credit card behaviors and decide if having one causes you to spend more money. You may not truly need one.

The last thing you want right now is to fall back into your old spending habits and go back into debt!

Start an emergency fund.

Only 40% of families have enough in savings to cover three months of expenses, and even fewer families have the usually recommended six months worth of savings.

The percentage of people who have emergency funds while in debt is even lower. Many of those paying off debt don’t have emergency funds whatsoever, or they just have very small ones.

Well, now that you don’t have debt, you should focus on building an emergency fund.

These are just a few of the many reasons why.

  • An emergency fund is there to ensure you don’t fall back into debt due to unexpected expenses.
  • It can help you if you lose your job.
  • It is wise to have one if you have a high-deductible health insurance plan.
  • It is a good idea to have an emergency fund if you have a car. Your car may need a repair, get totaled, or some other unpredictable expense may occur.
  • It is necessary if you own a home. We all know, one of the lucky things homeowners often get to deal with are unexpected home repairs.

Emergency funds are always helpful to have, because they offer peace of mind if anything costly was to happen in your life. Instead of building onto your stress, you will know you can afford to pay your bills and focus on more important things.

Related: Everything You Need To Know About Emergency Funds

Keep your budget.

After you pay off your debt, you may want to get rid of your budget, as you probably have a little extra cash. However, right now is the perfect time to keep budgeting.

This wiggle room may have you tempted to spend all of this extra cash, but now is the time to be smart and think of something useful to do with it.

I recommend putting this extra cash towards a new financial goal of yours, such as one listed below.

Work towards a new financial goal.

Just because you’ve paid off your debt doesn’t mean you are done with your finances. Right now is the ideal time to start a new financial goal, because you are likely very motivated after finishing your debt payoff goal.

If you haven’t already, there are many other financial goals you may want to start working towards. These include possibly saving for:

  • Retirement.
  • An emergency fund.
  • Travel.
  • Starting a family.
  • Buying a home.
  • Buying a car.

Have you ever fallen back into debt? What happened? How much debt do you currently have?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Buying things and adding debt to your life won't make you happy. Instead, you should do what makes YOU happy and think carefully about your spending.

Buying things and adding debt to your life won't make you happy. Instead, you should do what makes YOU happy and think carefully about your spending.Some people buy things because they think it will make them happier. They may buy a new pair of shoes to feel better about themselves or a new car to impress someone.

Well, I want to tell you something: Buying things won’t make you a happier person. Instead, you should focus on what makes YOU happy.

However, that doesn’t stop some people from spending much more than they have, especially because it’s easy to think that buying things will make them a happier person.

Considering that 68% of people live paycheck to paycheck, 26% have no savings whatsoever, the median amount saved for retirement is less than $60,000, and the average household has $7,283 in credit card debt- I’m going to assume that the average person is feeling more stress than happiness due to the things that they buy.

Sure, you may get a little bit of excitement as you purchase that new pair of shoes or new car (occasionally), but for the most part, you won’t still have that same feeling years later.

You probably won’t even be happy with that purchase just a month later!

Usually, you’ll regret it or feel some other negative feeling, and in today’s post we’ll talk about why that spending won’t make you happy.

Now, I’m not saying that all spending is bad. Spending is fine, as long as it’s budgeted for, you can afford it, and it actually makes you happy! In this blog post, I’m referring to the opposite type of spending- the type where you’re trying to impress someone, emotional spending, and so on.

Related:

Buying things won’t make you happy for many reasons. Continue reading below to learn more.

Your stuff doesn’t define who you are.

Having more stuff doesn’t make you happier and your stuff doesn’t define who you are.

You’re not that pair of pants…

You’re not your car…

You should only purchase things that you want and/or need, and not if you are trying to pretend to be someone else. You should only own something if you truly want it. Who cares about what everyone else has!

Your emotions can lead to spending disasters.

Some people spend money and buy things because they believe that it will make them happy. This is known as emotional spending.

According to NerdWallet, the average U.S. household (who has debt) has an average credit card debt of $15,611, and I’m sure some of that is due to emotional spending.

Emotional spending occurs for many different reasons. You may have had a bad day at work, a fight with your loved one, and so on. You might even be spending because you are stressed out about the amount of spending you have done.

However, emotional spending usually just leads to more problems and most often, never cures anything.

To end your emotional spending habit, I recommend:

  • Figuring out how much debt you have. You’ll most likely be shocked, and hopefully this will persuade you to change your spending habits and the way you deal with stress.
  • Understanding why you spend when you’re stressed. In order to stop stress spending, you need to really think about why you have this problem. Without understanding your problem, you may continue to fall into the same cycle over and over again.
  • Thinking about your financial goals, so that you can stay motivated.
  • Finding different ways to deal with stress.
  • Sticking to a budget.

Buying things can prevent you from reaching your goal.

You may be preventing yourself from reaching a financial goal by purchasing more and more. This can lead to additional stress, sadness, a feeling of defeat, and more.

The next time you are going to purchase something that is just a “want,” you may want to think about whether or not it will hold you back from your goal.

More stuff means more to maintain.

With every item you add to your life, there will be more and more that you’ll have to spend extra time and money to maintain. Things may get broken, lost, stolen, dirty, etc. They may need to be repaired or even replaced.

Who wants all of that stress?

That purchase may cost you more in the long run.

To build on the previous point, the initial cost of purchasing an item may not be the only cost. You may also need to pay to store the item, organize it, interest charges, and so on.

This can lead to more stress, more time spent on the item, and so on.

There’s always something else to buy.

I know people who are always buying the latest and greatest items. Every year they will buy the newest iPhone, they’ll upgrade their laptop, and more. Most of these people are in debt and live a paycheck to paycheck lifestyle.

Are these people happy?

I don’t know, but I don’t see how upgrading every single year could make you a happier person if you can’t afford it.

The thing is, there will always be something newer to buy. If you want the latest and greatest thing, you may be disappointed because there will always be something else.

What makes one person happy won’t necessarily be the same for you.

I’m sure almost everyone, at one point in their life, has felt the need to keep up with someone else.

You may want the same car, the same house, the same designer clothing, and so on.

The problem with this is that it can make you broke.

When trying to keep up with someone else, you might spend money you do not have. You might put expenses on credit cards to (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.

This can lead to a significant amount of debt.

Trying to the same things as someone else is not worth it because:

  • You will never be happy, no matter how much money you spend.
  • You will constantly compare yourself to everyone.
  • You will go into debt because that’s the only way you feel like you can keep up.
  • You will have a loan payment for everything because that’s the only way you can “afford” things.
  • You won’t have any money leftover for retirement, an emergency fund, etc. because you’re spending it all on things you do not need.

Instead, you should figure out why you want to keep up with someone else, think about your own life and your own goals, realize that jealousy won’t get you anywhere, and try your best to live within your means.

You’re not impressing anyone.

If you’re purchasing things just to impress others, well- you will be disappointed. For the most part, no one cares or will even know that you bought something new.

You should do what makes you happy and only buy things for yourself- not to impress anyone else.

Money problems may lead to stress and other problems.

If you buy things that you cannot afford, this can lead to significant amounts of stress and other financial problems.

You may find yourself with more credit card debt than you can handle, personal loans, high interest charges, stuck in a paycheck to paycheck lifestyle, and more.

Who wants all of that?

Do you think that buying things makes you happy? Why or why not?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Almost everyone wants to find a way to make more money. Making more money may allow you to pay off debt, travel more, retire earlier, and more.

Almost everyone wants to find a way to make more money. Making more money may allow you to pay off debt, travel more, retire earlier, and more.Almost everyone wants to find ways to make more money. It’s only natural, as making more money may allow you to:

  • Pay off debt
  • Travel more
  • Retire early
  • Stop living paycheck to paycheck
  • Afford the things you want in life
  • And more!

One of the things that usually stops people from making more money is a lack of time. However, making more money and managing side hustles all depends on how badly you want it.

Some people may not want it as badly, and that’s fine. However, excuses won’t help you, so if you really want to make more money, then you will have to find more time in your day.

Just think about it: What do you think you could do with an extra 5-10 hours, or even more, each week?

Whether you want to transform your side hustle into your full-time career, want to make more money to tackle a financial goal, or something else, finding ways to make more money can completely change your life.

While I don’t side hustle any more, I am always looking for ways to increase my income. Before, I used to side hustle, work a full-time job, attend college, volunteer, and more. Now I mainly just focus on my business and managing a comfortable work-life balance.

Related:

Whatever it is that you are trying to balance, below are my tips for finding time to make more money.

Be realistic about how much time you have

Everyone has the same 24 hours in a day, but others may be more limited than others. I understand that different situations can make a person quite busy. In the end you always need to be honest with yourself about how much available time you have to make more money.

You don’t want to run yourself ragged, forget about the things that truly matter in life, hurt your work performance, and more.

However, many people do have extra time in their days but just don’t realize it. For one week, I recommend keeping track of the time you spend on various tasks and see how much time you waste.

You’ll most likely be very surprised and learn how to find extra time to make money.

Wake up earlier

When I had my day job, I would usually wake up around one to two hours before I had to start getting ready for work. I would use this time to work on my side hustles, which included replying to emails, brainstorming ideas, managing my blog, finding mystery shops, and more.

Sometimes, waking up early was rough, but it was nice to get everything done before I went to work.

If you’re not a morning person, you can always try to fit in time before you go to bed. Often I would even work on my side hustles for a few hours before I went to bed.

If you spent two hours every day before you went to work, you could put 10 hours each week towards your side hustle ideas.

Related: 9 Tips To Wake Up Early & Why It Feels So Good

Get rid of time wasters

I want you to do something right now. Yes, right at this moment!

Take a moment and really think about how much time you waste watching TV and browsing social media.

According to Neilsen statistics, the average person in the U.S. spends 40 hours each week watching TV and movies. Plus, according to AdWeek, adults spend nearly two hours every day on social media. For teenagers the amount of time increases dramatically, to nearly 9 hours a day!

That is an enormous amount of time being wasted.

Use short gaps in your day wisely

Everyone has gaps in their day. This could be a gap before you have a meeting, a gap between your day job and night classes, a gap before you have to pick up the kids from school, or something else.

Maybe you have 30 minutes or an hour. Most people will just plunk down on the couch and watch TV or browse Facebook. However, you should find ways to wisely use these gaps in your.

Multitask correctly, if you can

You may want to try to multitask, as long as it does not decrease the quality of your work or cause you to waste more time.

Some examples of easy and productive multitasking include:

  • While I am cooking a meal I work at the same time. Instead of just standing and making a meal, I use the little breaks I have to work. Or, I may even use that time to do short exercises, such as lunges, sit ups, squats, and more.
  • If you are on the phone and on hold, you could do something while you are waiting, such as creating your grocery list, short workouts, finishing up an email, and more.
  • Do all of your errands in one trip instead of spreading it over a longer period.

You do want to keep in mind that some people are good at multitasking, whereas some are not. There is proof that multitasking can actually result in you wasting time, because it can take time to get yourself ready every time you stop and start a task.

I recently read something that said whenever you start and stop a task you waste at least 25 minutes. That adds up over time!

Due to this, you will want to be smart when it comes to multitasking, and see what is and isn’t helping you.

Rethink your commute

This one may not be for everyone, as many people do need to drive to work. However, if you commute to work using something like a bus or train, then you might want to efficiently use this time by working on your side hustle jobs.

If your side hustle is something that you can do from your phone, laptop, or just with a piece of paper, then this can be a great time to brainstorm ideas and work on your side hustle.

Stay organized

Being organized can help you save time and make more money.

Here are some surprising statistics about being unorganized that I found from Simply Orderly:

  • The average person spends 12 days per year looking for things they can’t find.
  • Every day the average office worker spends 1.5 hours looking for things.
  • In a recent survey, 55% of consumers stated they would save anywhere from 16 to 60 minutes a day if they were organized.

Strategically use your lunch time

When I had my day job, my lunch time was almost always used for my side hustles. I would often bring my lunch to work, which allowed me to save money on food and to use that whole hour for my side hustle ideas.

Right there, that’s five hours every week for side hustles, just by using your lunch hour.

What do you do to save time, so that you can make more money? What time management tips do you have to share?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Do you want to live a great life? Do you feel like your life isn’t going the way you want?

Maybe your plan isn’t working, or you just want a change because anything is better than how things are currently going.45+ Ways To Live An Amazing Life

45+ Ways To Live An Amazing Life

Or, maybe you just want to improve your life even more this year!

No matter how you’re feeling, I believe that everyone is in charge of their own destiny and that everyone can learn how to live a great life.

If you feel things are not going the way you want them to go, then change it! You can improve your life and how you perceive it by taking part in different actions.

For that reason, I’ve packed this post with my best and most actionable tips so that you can live a great life, and there are some new ones that are sure to make this new year your best ever. Enjoy, and I hope this year is a great one for everyone.

Related reads:

How to live a great life in 2023!

1. Reach your goals in 2023.

To make it a great year, you’ll want to set goals so that you can reach your dreams. Those who set goals are much more likely to be successful than those who do not.

To reach your goals, you’ll want to:

  • Review the previous year along with your previous goals and objectives.
  • Make sure your goal is SMART.
  • Write down your goals and objectives.
  • Create a plan to reach your life goals.
  • Break your goal apart into smaller goals.
  • Keep track of your goal setting progress and make changes (if needed).
  • Find small ways to stick to your goal.
  • Find ways to motivate yourself when setting goals.
  • Make reaching your goal a friendly competition.

Read further at The Best Way To Set Goals And Reach Success.

2. Smile more.

Smiling is contagious and is very important if you want to live a great life!

Studies have even proven that smiling can improve your mood, even if it’s a fake smile.

Smile at the next person you pass, smile when you’re talking on the phone, smile when your loved one comes home, smile in an interview, and more.

Related: How To Better Yourself – 23 Challenges That Will Change Your Life

3. Don’t be afraid of what people think.

I used to really care about what other people thought of me, but I’ve been able to let go of that and now I couldn’t be happier. This has really helped me learn how to live a great life.

You shouldn’t let the opinions of others affect you, drag you down, control you, and so on. Like I always say “Who cares!?”

Why should the opinions of others matter to you? And, because everyone is different, all that should matter is what is right for you.

Related content: Learn How To Set Resolutions — Make This Year The Best Yet!

4. Spend less time watching TV.

I bring this up a lot on Making Sense of Cents, but this statistic is just crazy-

the average person watches around 35 hours of TV a week.

35 HOURS!

Our minds are greatly influenced by what we see on TV. Plus, watching TV can be a big time waster and can be detrimental if you want to live a great life.

Instead of turning on the TV the next time you are bored or looking for something to do, you may want to do something more worthwhile, such as working out, spending time with friends and family, reading a book, and so on.

5. Be more confident.

A lack of confidence may:

  • Prevent someone from believing in themselves.
  • Lead to someone being too shy to do what they want or need.
  • Force someone to do things they hate.
  • Cause someone to ruin a meeting, job possibility, and so on.
  • Lead to unhappiness.

On the flip side, confidence can open many doors for you.

It can lead to getting the job you want, making more money, reaching your dreams, meeting new people, networking, traveling the world, and more.

Read more at Be More Confident And Get What You Want In Life.

6. Be thankful for what you have.

The next time something negative is bringing you down, I suggest you try to remember all of the positive and good in your life. You already live a great life, you just need to remember that.

This is the power of positive thinking at its best.

You can be thankful for your family, friends, job, a past experience, opportunities, and more.

Thinking about everything you are thankful for can make something negative seem very trivial. You may even laugh at yourself for being so negative!

7. Start investing.

I want you to start investing if you haven’t done so yet.

You want to invest your money so that you can:

  • Retire one day.
  • Prepare for unexpected events in the future.
  • Allow your money to grow over time.

Read more at The 6 Steps To Take To Invest Your First Dollar – Yes, It’s Really This Easy!

8. Be kind to others.

You should always be kind to others. This can help both you and others live a great life. Being kind can open your mind, help you stop dwelling on negative things in life, brighten someone’s day, and more.

You can be kind to others by doing things such as:

  • Say hello to every person you walk by today.
  • Open doors for others.
  • Smile at strangers.
  • Help someone with their groceries.
  • Volunteer somewhere.

Related post: 50+ Random Acts of Kindness.

9. Look for ways to save more money.

Looking for ways to save more money may allow you to pay off your debt quicker, improve your financial habits, help you reach your dream sooner, and more.

Plus, there are many, many different ways to save money. You don’t need to sacrifice your favorite things or live an unhappy life in order to save money.

It’s all about being realistic and finding a good balance between saving and spending.

Read more at 30+ Ways To Save Money Each Month.

10. Take a risk.

Have you ever thought about doing something particularly risky but were too afraid to go for it?

Well, it may be your year! Or, at least maybe you can start planning to take that risk?

Doing something risky every so often can get your heart beating and your adrenaline rushing. This can really make you feel alive and like you are in charge of your life.

11. Realize that it’s okay to fail.

If you’re taking risks or trying new things, there is a chance that you may fail.

But, that’s completely okay!

You won’t know if something will work or not unless you try it, and sometimes failure is just a part of the learning process.

Part of living a great life is failing every now and then. Accept that fate now and you’ll be better prepared when it happens.

12. Create a budget.

The average family carries a lot of financial stress. Most people have student loans, credit card debt, a mortgage, car loans, and sometimes other forms of debt.

However, not many people have a budget.

In fact, 68% of households in the U.S. do not prepare a budget.

Budgeting can help you take control of your finances, which can then help reduce stress and allow you to reach your dreams. Having a budget is crucial if you want to live a great life.

Read more at The Complete Budgeting Guide: How To Create A Budget That Works.

13. Say yes.

If you often find that you’re hiding from everyone and you feel like you are stuck, you may want to try branching out and saying yes more often.

Saying yes can open you up to more situations, help you grow as a person, and so on.

14. Say no.

If you say yes to everything, but you are ready to pull your hair out, then you may want to start saying no. No one wants to be walked on or spread too thin, and you also don’t want to be holding yourself back from the things that you truly want to do in life.

Saying no may allow you to have more time to focus on what you truly want from life.

15. Don’t let life pass you by.

It can be really easy to let life pass you by. Before you know it, years or even decades may be gone.

Too many people have the mindset of “Oh, in 10 years life will be so much better because of such and such.” And then, they just let their lives go by without ever thinking about the present.

Well, what about now?!

10 years is a long time!

Reaching a goal is great, but you should always make sure you are living life to the fullest (on a budget, of course).

16. Cherish moments with loved ones.

You should never take a moment for granted with those that you love. This will sound very doom and gloom, but you just never know what may happen to you or them.

Plus, spending time with your loved ones is always a great time, so why not just do it more?!

17. Pay off debt.

Paying off your debt can lessen your stress levels, allow you to put more money towards something else (such as retirement), stop paying interest fees, and more.

Debt can hold a person back significantly, and by paying off your debt you may be able to live the life that you’ve always wanted.

Let’s make this the year that we finally get rid of our debt or at least work our way towards eliminating it!

Read more at How To Eliminate Your Debt.

18. Exercise more.

Whenever I’m feeling a little stressed out, tired, or even grumpy, I try to fit in a workout. I know that even a small workout is better than none.

Exercising is great and it can improve your life because it can make you healthier all around. You will feel more confident, your mind will be clearer, you will be able to better cope with stress, and more.

19. Increase your credit score.

If you need a loan for anything in the future, you can do easy things to increase your credit score. Watch your utilization rate on your credit cards, pay your bills on time, watch the amount of hard inquiries on your credit report, and so on.

Your credit score is important because it can affect your interest rate and whether or not you will get approved for a loan.

Just a few percentage points can mean the difference of hundreds of dollars each month.

That means you can wind up saving THOUSANDS each year just by increasing your credit score. You can check your credit score for free with Credit Sesame.

20. Don’t keep up with the Joneses.

Whether you are five years old and want that new toy everyone is playing with, or if you are 50 years old and are feeling the need to upgrade your house, car, etc., everyone has experienced wanting to keep up with someone else.

The problem with this is that keeping up with the Joneses can actually make you broke.

When trying to keep up with the Joneses, you might spend money you do not have. You might put expenses on credit cards to (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.

This can then lead to an excessive amount of debt and potentially set someone back years with their financial goals, if not decades.

21. Do what YOU want to do.

What makes you happy, excited, joyful, and motivated? That’s what you should be doing with your life (as long as it’s legal)!

Stop thinking about what other people want you to do and start listening to your heart. Who cares about what others think? If you spend all your time thinking about others, you will just be wasting a ton of time!

  • If you want to live a life of adventure – Go for it.
  • If you want to start a family – Start planning one.
  • If you want a better job – Get one.
  • If you want to change the world – Do it.

22. Read as much as you can.

I’ll admit it, I don’t read as many books as I would like to.

I’m so focused on reading about personal finance, but I know I need to occasionally take a break and do some reading for pleasure.

Reading is great for many reasons, such as:

  • Providing knowledge.
  • Improving your memory.
  • Opening your mind.
  • Bringing out your creative side.
  • It is affordable entertainment.

And more!

23. Think positively.

I say this often, and I believe it.

Thinking positively can greatly improve your life and your outlook on life. Being positive can help motivate you, it can help you to not waste time on regret, and more.

Related article: Why I Believe Being Positive Can Change Your Financial Situation And Your Life.

24. Don’t waste time on being negative.

You are wasting your time when you are being negative.

Instead of wasting your energy on things like dwelling on regret and/or gossiping, you can be more productive by using this time for things that actually matter.

By being more positive, you will be able to better simplify your life.

25. Find free forms of entertainment.

Someone once told me how expensive it was to have fun. They were telling me about all of their debt and everything that goes along with it, then they also told me that their monthly “fun” budget was around $500.

Uhhh what?! $500? A month?!

If you are trying to get rid of high-interest rate debt, I can’t think of any reason for why you should be spending $500 a month to have fun.

There are many ways to have fun for cheap. Check out How To Have Frugal Fun for some of my ideas.

26. Stop letting money control you.

If you want to gain control of your life and make it a great year, then you need to gain control of your money.

This means you need to stop worrying about all of the things that are holding you back. Instead, create an action plan so that the littlest things do not tear you down or stress you out.

27. Get enough sleep each night.

According to the National Sleep Foundation, the average person needs around 7.5 hours of sleep in order to “function at their best.” However, the average person actually only sleeps around 6.5 hours.

Lack of sleep, according to HealthLine, can lead to issues such as:

  • Impaired brain activity
  • Memory problems
  • Moodiness
  • Depression
  • Cold and Flu
  • Type 2 Diabetes
  • Weight gain
  • High blood pressure
  • Heart disease

Due to this, you should aim for 7-8 hours of sleep every night.

28. Find something good in a negative situation.

There may even be some good in a bad experience, even though it can be hard to think about the positive while you are experiencing something negative.

Through the power of positive thinking, you can use a bad experience to learn something new about yourself, to realize you made a mistake, to come up with a new plan you never thought of before, and more.

Taking the negative and turning it into a learning experience can help prevent a negative situation from happening again. Or, maybe next time you’ll be more prepared!

29. Travel to a random place.

There are many wonderful places in the world. Traveling to a random place can help improve your confidence, open you up to new experiences, and may even make you a little uncomfortable- and sometimes that’s okay.

30. Create a bucket list.

If you don’t have a bucket list, I recommend creating one now! In case you are unaware, a bucket list is where you list all of the major goals you want to meet, places you want to visit, and things you want to do in your life.

Creating a bucket list can give you the motivation you need to work harder towards your dreams, it can give you a sense of direction, and a great feeling of fulfillment as you complete each amazing thing you want to do.

31. Welcome the unknown.

Some people like to ignore the unknown because they are afraid of it. However, you’ll never know what your future holds unless you try new things and welcome different experiences.

When looking forward, you should make a realistic plan for what may happen once you start taking steps to reach your goal. This may make the whole thing much more relaxing and less stressful because you will be more prepared for the unknown.

For example, if you want to leave your job for something else but are afraid of what may happen, one thing you might want to do is to make sure you have a well-funded emergency fund. This way, if it takes you a little longer to find your dream job or dream life, your emergency fund will be there to help ease some of the stress.

2017 is here! If you want to learn how to live a great life, then you'll want to read this. Let's make 2017 a great year full of great things!

2017 is here! If you want to learn how to live a great life, then you'll want to read this. Let's make 2017 a great year full of great things!

32. Be open to new things and tackle your fears.

When was the last time you did something new? So many people live inside their comfort zone when they actually need to branch out every now and then.

Yes, stepping outside of your box can be tough, but what if it completely opened your eyes and changed your whole outlook on life? Wouldn’t that be amazing?

If you want to learn how to live life to the fullest, this is something you need to do every now and then. You could even give yourself a goal to try something new each day, each week, or each month.

33. Become more organized.

Being unorganized can waste a significant amount of your time. It leads to late fees, stress, lost items, and more.

Here are some surprising statistics I found from Simply Orderly about being unorganized:

  • The average person spends 12 days per year looking for things they can’t find.
  • Every day, the average office worker spends 1.5 hours looking for things.
  • In a recent survey, 55% of consumers stated they would save anywhere from 16 to 60 minutes a day if they were organized.
  • 23% of people pay bills late and have to pay late fees because they are unable to find their bills.

34. Be open minded to live a great life.

Being open minded is a great quality. There are billions of people in this world and everyone is different, so instead of judging others we should be more open minded.

And, everyone can stand to be a little more open minded.

Being open minded can help you accept changes, love others, be optimistic, learn from others, and most of all, it’s relaxing. Instead of worrying about what everyone else is doing, you can relax, have less stress, and just accept those around you.

35. Finally get rid of cable.

The average monthly cable bill is over $100. The average cable bill is around $200 a month.

You can read more about cutting cable here and how to save money by doing this. I recommend getting a digital antenna so that you can receive local channels for free!

We don’t pay for any form of TV (not even Netflix!), and we LOVE it.

36. Drink more water to live a great life.

According to Lifehacker, the average person should drink around 9 to 13 cups of water per day. This is just a baseline, though, as if you exercise or are in hot weather, then you should consume more.

However, not many people get anywhere near this amount of water.

Drinking water can help you lose weight, perform better, be happier, prevent headaches, help your skin, and is a must for your body to survive.

37. Make more money.

Here on Making Sense of Cents, I spend a lot of time discussing extra income, side hustles, side income, and how to make money online. I believe that earning extra income can completely change your life in a positive way. You can stop living paycheck to paycheck, pay off your debt, and more, all by earning extra money.

In fact, because of extra income and my blog, I was able to pay off $38,000 in student loans within 7 months, I was able to leave my day job in order to pursue my passion, travel full-time, and more!

Related blog posts:

38. Spend less time on social media.

The average person spends many, many hours on social media each week.

Between Pinterest, Facebook, Twitter, Instagram, Snapchat, and many others it can be quite easy to waste your entire day.

If you find that you are spending too much time on social media and that it is negatively impacting you, you may want to shut down the social media accounts that you are spending too much time on. You can even create a time block so you cannot access your accounts during certain periods of the day, and so on.

39. Declutter and downsize.

Decluttering and downsizing can help you:

  • To save money. In some cases, a bigger home can cost more due to higher utility bills, more clutter being bought, higher insurance, more maintenance and repairs needed, higher purchasing price, etc.
  • To have less clutter. The bigger your home, the more likely you’ll have empty rooms that you feel the need to put stuff in. Now that we live in an RV, we are much more mindful of what we buy. We think about every purchase in terms of weight, size, where we can store it, and more.
  • To spend less time on maintenance and repairs. If all other factors between two homes are the same (age, location, etc.), a bigger home is more likely to take up more of your time and money due to more things breaking.
  • To spend less time cleaning. A larger home is going to take a lot more time to clean than a smaller one.

40. Have regular family money meetings.

Talking about money and conducting regular budget meetings is an important task for every family and serious relationship to take part in. A family who has regular money talks and budget meetings is more likely to be financially successful and happier than a family that doesn’t.

Regular money meetings can lead to better communication between family members, a more unified financial goal, family members being more involved and motivated, and more.

Read more at Family Budget Meetings – Yes, You Need To Have Them.

41. Keep a journal.

While I don’t have a journal, I do have this blog, which acts as a journal in a way. Keeping a journal can help you reflect on your past, and it also allows you to see the progress you are making towards your goals and dreams.

Plus, spilling your heart out every so often is great for the mind and soul.

Related tip: If you’re looking for a life planner, I highly recommend checking out Erin Condren and looking at their life planners and monthly planners. This can be a great way to stay motivated so that you can reach your dream life!

42. Don’t be afraid to be successful.

When some people become successful and reach their goals, they occasionally start feeling guilty.

Yes, I know, this might seem weird. However, I understand this.

Sometimes I really dislike telling my friends and family how great life is and how much I love my business. I often feel guilty, but I just need to remember that a mixture of luck and hard work led me to where I am. Everyone has their down points, and I had them as well.

You shouldn’t be afraid to talk about your accomplishments, and you shouldn’t ever be ashamed of your success.

43. Sit silently.

When was the last time you just sat down in complete silence with no distractions? For the average person, this is probably a rare occurrence.

Sitting silently can help you reflect on your life and what’s going on in the world around you. It can also help you relax, destress, and clear your mind.

44. Have an emergency fund.

An emergency fund is something that I believe everyone should have. However, according to a report by Bankrate.com, 26% of Americans have no emergency fund whatsoever.

This same report stated that only 40% of families have enough in savings to cover three months of expenses, with an even lower percentage having the recommended six months worth of savings.

This is frightening to me, as having an emergency fund can really help you get through tough parts of your life.

An emergency fund can help you if you lose your job, if your hours are cut back, if you have an unexpected expense, and so on.

Read more at Everything You Need To Know About Emergency Funds.

45. Stay motivated.

Even with how much I love saving money, every now and then it becomes easy to get unmotivated and want to SPEND ALL THE MONEY!

I’m sure I’m not alone either.

While many choose to live a frugal life, it’s not always easy. Some have large amounts of debt to pay off, others find it hard to stick to a budget, and more.

Finding financial motivators will help you continue to work hard towards your goal, even when it seems impossible. Without motivation, one might give up on a financial goal quite easily. This is why it’s so important to learn how to stay motivated.

Read more at Paying Off Debt And Budgeting: Tricks For Staying Motivated.

46. Stop being afraid of your past.

Just because you may have failed at something in the past, this should not prevent you from aiming for your goals. I know people who have completely given up with reaching for hard goals because they weren’t successful in the past. However, that’s a horrible mindset to have.

If you have failed in the past, then you should use those mistakes as learning tools for the future.

What will you do to live an amazing life? What tips on how to live a great life do you have to share with us?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Are you interested in paying down debt? Here's how this couple paid off $62,000 in debt in just 7 months! Yes, it is possible to do this!

Are you interested in paying down debt? Here's how this couple paid off $62,000 in debt in just 7 months! Yes, it is possible to do this!Hello! Today, I have a great post from my blogging friend James. James and his wife paid off $62,000 in debt in just 7 months! 

Shortly after we got married, my wife Andrea and I got serious about our finances and paid off all our debt.

This is the story of how we turned a profit on our wedding, combined our finances, and paid off $62,000 of debt in 7 months.

Related:

Where’d all the debt come from?

All the debt was mine. I was a dumb young kid and thought I’d always be able to out earn my stupid decisions. Until one day I couldn’t.

Despite a generous 3-year military scholarship at my pricey, private college, I had student loans to pay for:

  • my housing (~$12,000 x 4)
  • my freshman year’s tuition (~$30,000)
  • and a summer study abroad program (~$15,000)

Then shortly before I graduated, USAA, a military-member’s bank, offered me a $25,000 loan at the ridiculously low rate of 2% interest. USAA dubbed it a “Career Starter Loan,” but really it was their clever way of ensuring I’d be a customer for the foreseeable future. I used $15,000 to refinance my study-abroad loan, bought a new laptop, and put the rest in savings.

If you’re keeping count, that pushed my total debt upon graduating college up over $100,000.

So of course I immediately got serious about my finances, did a budget, and started attacking my debt, right?

Nope.

I bought a sports car instead.

I was 22 years old, only 4 months into my Army career, and had racked up over ~$115,000 in debt. All I had to show for it was a fancy diploma, a 3 year old Mazda, and $1,100+/month in debt payments.

My wake up call

As can happen in the military, I got hurt.

I always knew it was a possibility, but never thought it’d happen to me. Ultimately, the Army decided it was best if they “retired” me. Just like that my once promising career was over only two years after it started.

Fortunately for me, the Army is a huge, slow moving bureaucracy and I had some time to prepare for my unexpected new life as a civilian. Unfortunately for me, I got hurt during the financial collapse of 2008 and I was entering one of the worst job markets of my life.

I didn’t know how long I’d be without a reliable income, but I knew I’d still be expected to reliably come up with $1,100/month for debt payments.

I opened an excel file and made my first crude budget, subtracting what I needed to spend each month from what I made each month. Turns out I had more money leftover at the end of the month than I realized. I saved as much of it as I could and set it aside as an emergency fund.

Six months after leaving the Army, and nearly draining my savings, I convinced a Fortune 500 company to put me in charge of a $15M/year operation. Now armed with a decent salary I set aside one month’s worth of expenses as a small emergency fund and attacked my debts with a vengeance.

I finally understood what a hindrance my debts were and I wanted them gone!

If you’d like, check out this article to get the exact tools and tactics I used to attack my debts. Following this plan, I would’ve paid off my remaining ~$80,000 and been totally debt free in 3 years.

There was just something I had to do first.

Will you marry me?

My debt was no secret to Andrea, and to her credit, she didn’t really care. She valued me more than my debt and saw how hard I worked to get through my career crisis and get my act together. In fact, we grew closer through all the craziness.

We’d been together for 5 years at this point and it was time to move our relationship forward. I paid off a couple more debts, kept current on my remaining balances, and used my excess cash each month to save for an engagement ring.

In September 2011 I asked Andrea to marry me, she said yes, and we were married a year later.

In that year, I paid the minimum payments on my remaining debts and we saved all our excess cash to pay for our wedding and honeymoon.

We made sure to stretch our dollars by:

  • Booking a daytime wedding, it was a lot cheaper to rent a venue during the day than at night.
  • We rented centerpieces (the vases all the flowers went in) instead of buying them. I’m not sure what we would’ve done with 20 identical glass cylinders after the wedding, anyway.
  • Made our invitations and programs using kits available from craft stores.
  • “Hired” friends and family in the industry we would’ve been willing to hire even if we didn’t know them
  • Andrea’s aunt is a seamstress and made all the bridesmaids dresses.
  • Our DJ/Pianist was a friend.
  • Our Photographer was a friend.

In the end, we had a beautiful wedding, a great honeymoon, and were able to pay for everything in cash. We even had a bit leftover.

Joining forces

After our honeymoon, we moved into a new rental house and started combining our finances. Then once we could see all our money coming into and going out of the same account, we redid our budget.

Andrea and I both earned similar incomes, but now our expenses were much less as a married couple than when we lived on our own. We only had one rent payment, one set of utilities, etc. Since our “married” expenses each month were pretty close to what each of us spent as a single person we had a lot of cash left at the end of the month.

By this point, the debt was down to ~$62,000 and it was time for us to attack it.

Andrea and I both wanted to pay off the debt quickly, but we didn’t agree on how. The main point of contention centered around the money we had leftover from our wedding, wedding gift cash, and some of Andrea’s savings from her years as a responsible person.

Even though Andrea had shown me incredible grace, I still felt ashamed of my debt. I didn’t want it hanging over our heads and was willing to take drastic action to to wipe it out.  

I wanted to throw most of our savings at debt, leaving just enough to act as a small emergency fund. Then once the debt was totally gone, we’d rebuild our savings to its previous level.

That plan would have us out of debt really fast, but was risky as it would leave us with only a small emergency fund for a while. I didn’t love this risky plan, but I was anxious to pay off our debts and was already used to living with only a small emergency fund. Besides, with two incomes I figured the odds of us having a catastrophic emergency were quite small.

Andrea, however, hated that plan.

She wasn’t comfortable with the risk and did not want to drain our savings. Having a big emergency fund gave her a sense of security I’d never experienced before and the idea of only having a small emergency fund freaked her out.

Balancing speed with security was a new concept for us. We viewed risk differently and had to come up with a plan we’d both be happy with. The more we talked about it, though, the less our conversations centered on our finances.

Instead, we focussed more on building the life we wanted.

Debt freedom and a big emergency fund were just some of the ingredients.

We both wanted to travel. We both wanted to give to charity. We both wanted to pursue work we love.

Paying off the debt would give us the freedom to do so.

We never wanted to worry about putting food on the table. We never wanted to wonder how we’d pay our rent. We didn’t ever want to be tied to a job we didn’t like just because we needed the money.

A big emergency fund would help us avoid those things.

Our plan for paying down debt

So here’s what we came up with.

  • We agreed to use some savings to pay off a couple of my smaller student loans completely. This still left us with enough of an emergency fund to maintain Andrea’s sense of security.
  • We agreed to keep our expenses to less than half of our combined income. We could’ve afforded to rent a fancier house and eat lobster every night, but we chose not to. This way, if one of us lost our jobs we’d still be able to pay rent and keep food on the table. While we were both working, though, we’d use the leftover cash to attack the remaining debt.
  • We agreed to stay focussed and pay off all the remaining debt in less than a year. If by our first anniversary we still had some debt we’d tap into our savings to pay off whatever small amount was left.

Assuming everything went according to plan, we’d be debt free with a healthy emergency fund within the first year of our marriage.

FINALLY DEBT FREE!

Everything went according to plan and we’re done paying down debt!

Seven months later we were totally debt free. ~$62,000 paid off and we still had a healthy emergency fund.

Or to put it another way, we paid off ~$115,000 in five years, about a year faster than if we’d not gotten married and I just paid it off myself. I paid off ~$53,000 in 4 years on my own, slowed down my debt attack to get married, and together with my awesome wife wiped out the rest.

Even more important than paying off the debt, Andrea and I learned how to set the course of our lives and take action to get us there. We grew closer as a couple as we faced the challenge of paying off debt. Best of all Andrea and I learned to work together to achieve great things.

Now it’s your turn

Maybe you’ve never talked about hopes and dreams or set goals with your partner.  Or maybe you’ve never even thought about it for yourself. This can be tough and tricky, but I’d like to help you out.

It’s pretty easy to articulate a “what” and a “how” for money and call it a day. Take for example “Let’s pay off our credit card/student loan debt by cutting our expenses.” That’s great and responsible, but boring. Instead, as Andrea and I learned, start with “why” you want to do something.

Think about or ask your partner:

  • How would it feel to have an extra $100, $500, or $1,000 leftover at the end of the month?
  • How would you approach your career differently if you didn’t have to trade your labor just to pay Sallie Mae or Visa?
  • How much fun could you have?
  • How generous could you be?
  • What new options would you have in your life?

Taking this approach, you’d come up with something like: “I want to take a job for the love of it, give more money to charity, buy that thing I’ve always wanted without feeling guilty, and/or stay home with the kids. So let’s trim our expenses to pay off our debt.”

With a solid “why” like that, the “what” and “how” are just details. You’ll also be much more likely to stick with your goals when, not if, something comes along to distract you.

Pessimism is practical

If you find yourself struggling to come up with a worthy “why” release your inner pessimist. Think about all the things you don’t want in life. Think about what you’re afraid of. Then flip it by stating the opposite.

Take “I’m afraid I’m going to work as a corporate slave forever just to pay off my student loans” and flip it to “I want to pay off these loans so I can afford to work for a non-profit.”

“We’re going to be too broke to travel or have any fun when we get older” flips to become “I want to travel the world with our friends and family, so let’s save up a bunch of money to do so.”

Once you have your “why” figured out, “what” to do with your money and “how” will come more easily.

You’ll be able to withstand temptation and not get distracted by shiny stuff. And by working towards a worthy “why” together with your partner, you’ll learn to talk about money without fighting because you won’t just be talking about money. Instead, you’ll be planning and working towards a better life together.

I hope you and your partner will face the challenge of your finances, decide what you really want for your lives, and work towards your goals together. Aggressively paying off our debts actually brought Andrea and I closer together and deepened our marriage. We learned how to talk about tough subjects, set goals, and work together to achieve them. You and your partner can do the same.

Author bio: James helps couples handle and talk about money without fighting at loveandmoneymatters.com. Enjoy his blog post about paying down debt below.

What’s your family’s biggest financial goal? Why is it important to you? Are you currently paying down debt?

If you are new to my blog, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:

  • Find ways to make extra money – Here are over 75 different ways to make extra money.
  • Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna and enjoy free TV for life.
  • Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $100,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.75 per month plus you get a free domain if you sign-up through my tutorial. Also, I have a free How To Start A Blog email course that I recommend signing up for.
  • You should know your credit score – Check your credit score with Credit Sesame for free!
  • Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, American Consumer Opinion, Pinecone Research, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
  • Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back too!
  • Save money on food. I joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
  • I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
  • Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Save more, spend smarter, and make your money go further

It may not come as a big surprise since we all know that Mint users are financially savvy – but saving for a big purchase and paying off debt reign supreme for Mint users when it comes to their 2015 financial resolutions!

In a recent Mint survey, millennials revealed that their top financial stressor included debt (think student loans), saving for retirement, and over spending – while respondents age 36+ were most stressed out by not having enough savings for the future (you’re not alone)!

We hope the takeaways from the Mint user survey below will help encourage you to be good with your money  and keep working towards your 2015 financial goals all year long!

Mint.com 2015 Survey Results:

In 2015, my primary financial goal is:

  • Saving for a big purchase (house, car, etc.): 35%
  • Paying off debt: 34%
    • Paying off student loans – 14.16%
    • Paying off credit card debt – 19.06%
    • Saving for an emergency fund – 22.20%
    • Saving for a vacation – 9.62%

How much do I save?

  • 93% of respondents are saving at least once a year with 83% of all respondents putting money away every paycheck

What do I spend my money on?

  • 59% of all respondents by far the biggest expenditure every month was housing
  • 28% of respondents said their highest expenditure is food and beverage

What I find most stressful about finances:

  • The overall trend of financial stressors among respondents age 36+ was not having enough money or enough savings for the future
    • Interesting, a number of respondents over the age of 36 are still paying off student loan debt
    • Among millennials – the responses seem to vary including not making enough money, debt (including student loans), saving for retirement, over spending, and not having enough money  to afford the things they want

Do the results above ring true for you? Let us know in the comments below!

Save more, spend smarter, and make your money go further

  • Previous Post
    Things to Consider When Shopping for Car Insurance

  • Next Post
    Mint.com Personal Finance Tips & Tricks

Mint

Mint is passionate about helping you to achieve financial goals through education and with powerful tools, personalized insights, and much more. More from Mint

Browse Related Articles

Source: mint.intuit.com

Apache is functioning normally

Do you feel like you are stuck in the debt cycle? Learn exactly how to finally escape the debt cycle so that you can live the life you want.

Do you feel like you are stuck in the debt cycle? Learn exactly how to finally escape the debt cycle so that you can live the life you want.Do you feel like you are stuck in a never-ending debt cycle?

Perhaps you keep getting out of debt, only to fall back into it shortly after. That is what a debt cycle is, and many people fall into this cycle and can’t seem to get out.

Falling into debt over and over again can lead to insane amounts of stress, unhappiness, sadness, and feelings of hopelessness. No one wants to experience these feelings.

But, I want to tell you that it IS possible to get out of the debt cycle.

Today, I will help you finally escape the debt cycle so that you can live the life you want.

Face your problem

Before we continue, you need to realize why you keep falling into a debt cycle. You should think about the answers to the questions below:

  • Do you feel like you deserve everything you buy?
  • Are you trying to keep up with the Joneses?
  • Do you have an emotional spending problem?
  • Are you afraid to face how much debt you have?
  • Do you feel like debt makes things seem more affordable?
  • Are you unprepared for emergencies?
  • Do you truly understand how debt and interest rates work?
  • Are you living paycheck to paycheck?
  • Do you live beyond your means?
  • Do you have credit card spending problems?

To get out of a debt cycle, you need to realize why you keep falling into debt. By understanding why you are falling into debt, you can begin to prevent yourself from falling back into a debt cycle.

However, until you dig deep and realize this, the debt cycle will never end.

Side note: I highly recommend that you check out Personal Capital if you are interested in gaining control of your financial situation. Personal Capital is very similar to Mint.com but 100 times better. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation. You can connect accounts such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more. And, it is FREE.

Add up your total debt

This is related to facing your problem, as adding up your total amount of debt will help you realize how to gain control of your debt. This will help you to truly understand how much debt you are dealing with.

Plus, most people have no idea how much debt they have. By adding it up, you will have a more realistic view of your debt problem.

Create a budget

Most people have student loans, credit card debt, a mortgage, car loans, and sometimes many other forms of debt. However, not many people have a budget.

According to a survey done by Gallup, 68% of households in the U.S. do not have a budget.

Budgeting can help you take control of your financial situation so that you can stop the revolving debt cycle.

Read more at The Complete Budgeting Guide: How To Create A Budget That Works.

Pay off debt

In order to get out of the debt cycle, you’ll have to pay off your debt!

No surprise there.

Paying off your debt can lessen your stress levels, allow you to have more money to put towards something else (such as retirement), stop paying interest fees, and more.

Read more at How To Eliminate Your Debt.

Create a vision board

Having your financial goal displayed in front of you can make it that much more real, plus it’s nice to have a constant reminder of what you’re working towards.

Various ways to make your financial goal visual include:

  • Create a graphic that demonstrates your financial goal. I did some research and found a blog post on A Cultivated Nest about many creative ways to do this.
  • Keep a picture of your goal on hand. You could even go all out and create a vision board on Pinterest, or you can create a poster board of all of the things that debt freedom will allow you to do.
  • Write down what debt free life will be like for you.

Start an emergency fund

An emergency fund is something that everyone should have. However, according to a report by Bankrate.com, 26% of Americans have no emergency fund whatsoever. This same report found that only 40% of families have enough in savings to cover three months of expenses, with an even lower percentage having the recommended six months worth of savings.

This is scary to me, as having an emergency fund can greatly help you get through hard and unexpected situations that may arise.

An emergency fund can help if you:

  • Lose your job
  • Have your hours cut back
  • When your car breaks down
  • If you have a medical expense, and so on.

Plus, an emergency fund can help you get out of the revolving debt cycle. This is because if an emergency does arise, you won’t be forced to rely on debt in order to solve your situation. Instead, you’ll have your emergency fund to bail you out!

Read more at Everything You Need To Know About Emergency Funds.

Spend less than you earn

Too many people live paycheck to paycheck. This can lead to credit card debt, high interest rates, and more.

You should always be spending less than you earn. If you aren’t, then you need to find ways to cut your budget and/or increase the amount of money you earn.

Save more money

Finding ways to save more money may allow you to pay off your debt a little faster, improve your financial habits, help you reach your dream sooner, and more.

Read more at 30+ Ways To Save Money Each Month.

Make extra money

I believe that earning extra income can completely change your life in a positive way. You can stop living paycheck to paycheck, pay off your debt, and more, all by earning extra money.

In fact, because of extra income and my blog, I was able to pay off $38,000 in student loans within 7 months, leave my day job in order to pursue my passion, travel full-time, and more!

Making extra money can do something similar for you as well. It can help you break out of the debt cycle as you’ll be able to put more money towards your debt, and you will be able to spend less than you earn.

Related articles:

Try using just cash

If your problem with debt is that you don’t know how to correctly use credit cards, or credit cards or too tempting for you, then you may want to get rid of your credit cards and try using cash.

A cash budget is when you pay for the majority of your purchases in cash. Of course, there are certain expenses, like a mortgage payment, that you may not be able to do that for or that you may not want to do that for. For the most part, any and almost all spending is done with cash when a person is taking part in a cash budget.

A cash budget can help because:

  • It forces you to think about where your money is going
  • It can prevent impulse shopping and clutter
  • Spending actual cash “hurts” more than spending money with a credit card

Don’t keep up with the Joneses

Whether you are a young child and want that new toy everyone is playing with, or if you are a parent and are feeling the need to upgrade your house, car, etc., everyone has experienced wanting to keep up with someone else.

The problem with this is that keeping up with the Joneses can make you broke and fall into a revolving debt cycle.

When trying to keep up with the Joneses, you might spend money you do not have. You might put expenses on credit cards to, in a pretend world, “afford” things. You might even buy things you don’t really care about. The problems can go on and on.

This can then lead to a lot of debt and potentially set your financial goals back years, if not decades.

You should stop caring about what other people are buying, and, instead, only do what makes you happy.

Are you stuck in the revolving debt cycle? What are you doing so that you can get out?

Related Posts

<!–

–>

Source: makingsenseofcents.com