Sweet Frugal Life

Being Frugal Doesn't Make Life Any Less Sweet

What Is The Debt Snowball Method?

By: Sweet Frugal Lifecomment

Tips for paying off debt with Dave Ramsey’s Debt Snowball.

Are you trying to pay off debt, but have no idea where to even begin???  First, you should know that you are not alone!  According to Debt.org, the average American has over $90,000 worth of debt.  This amount includes all debts, such as home mortgages, credit card debt and student loans.  But, there is hope!  You can become debt free!  It isn’t easy, but it is possible.  There are many tried and true methods for paying off debt, and one that I personally recommend is The Debt Snowball method.  I’m excited to share all about Dave Ramsey’s debt snowball in this article.

What Is The Debt Snowball?

The Debt Snowball method was first made popular by finance expert, Dave Ramsey and focuses on both the psychology and financial parts of paying off debt.  I love that it was designed as a way to help you gain confidence with paying off debt.  The idea is that as you pay off your smaller debts first you will become more excited and motivated to pay off the larger ones, which in turn helps you see more success.

How To Pay Off Debt Using The Debt Snowball

Alrighty, let’s get into the debt snowball nitty gritty!  The steps are simple really!

Step 1:  List debts in order of smallest to largest.

This first step to using the debt snowball is to make a list of all of your debts and put them in order from the smallest amount owed to the largest amount.  Remember, the interest rates of each debt does not matter, only the least amount owed.

This is the part when many people get confused.  It doesn’t always make sense financially to ignore the interest rates, but remember that the debt snowball is about psychology and finances!  The debt snowball is trying to help grow your confidence and motivation.  Choosing to pay off your smaller debt first motivates you to keep working towards debt freedom.

For Example

Here is an example of what your debts might look like when making your list:

  • $800 Credit Card with 7% interest
  • $5,000 Car Loan with 5% interest
  • $25,000 Student Loan with 15% interest

Step 2:  Pay extra on your smallest debt, while continuing to make minimum payments on other debts.

Now that you have put your debts in order from smallest to largest, it’s time to start paying them off.

If we use the above example of debts, that would mean that you would try to pay off the credit card debt first, because it has the smallest amount owed. 

  • $800 Credit Card with 7% interest
  • $5,000 Car Loan with 5% interest
  • $25,000 Student Loan with 15% interest

Keep paying the minimum payments on all other debts, but try to put ANY extra money that comes your way to paying off this first debt.  The more money you can throw at this debt, the sooner you will be able to pay it off and move to the next debt on the list.

A few ways you can find extra money to pay off your debt include:

  • Starting a side hustle to earn more money
  • Cutting a few items out of your budget

Related:  101 Ways To Save More Money

Step 3:  Pay extra on next smallest debt, while continuing to make minimum payments on other debts.

Once your smallest debt is paid off, it’s time to move to the next debt on your list.  You will now focus on paying off debt #2, while paying the minimum payment on all other debts.  

This is where the “snowball” effect starts to happen!  To pay off debt #2 you will use all of the extra money you were paying towards your first debt and the minimum amount you were already paying for this loan.

For Example:

  • $800 Credit Card with 7% interest:  Paying $200/month
  • $5,000 Car Loan with 5% interest:  Paying $100/month
  • $25,000 Student Loan with 15% interest

Again, referring to the debt examples from above, the next smallest debt will be the car loan.  You were paying $200 to the credit card and $100 to the car loan each month.  Combine these totals together to pay $300 each month towards the car loan.  You are officially “snowballing!”  Yay!

Step 4:  Repeat step 3.

Continue to repeat step 3 until all of your debts are paid off.  You got this!!!

Step 5:  Celebrate!

Once you have paid off all debts it’s time to celebrate!  Yes!  Celebrating your debt freedom is a very important part of the debt snowball method! 

Paying off debt is NOT an easy task, it takes a lot of hard work, patience, and sacrifice.  You deserve to be celebrated for this huge effort!  Go out to your favorite restaurant, invite some friends over, or do something that makes you happy!

Pros of the Debt Snowball Method

There are so many wonderful benefits to using the debt snowball when paying off debt. 

The debt snowball:

  • Motivates you as you watch the small debts disappear quickly.
  • Builds confidence as you find success with paying off your smaller debts,
  • Is simple and easy to implement.

Cons Of The Debt Snowball Method

While, I do love the debt snowball and highly recommend it, it does come with one big con.

The biggest con to using the Debt Snowball is that there is a possibility you will end up having to pay more money on debts.  This is all because you aren’t paying off the debt with the highest interest first.

If you choose to pay off a debt with only 2% interest and wait to pay off the debt with 15% interest, you are having to pay that extra interest rate longer, making it cost more in the long run.

This big con doesn’t make sense for a lot of people, and that’s ok.  Not everyone needs the psychology that the debt snowball offers.  Personal finance is personal, and if you need to adjust debt payoff methods to make them work for you, do it!

Is The Debt Snowball Right For you?

The debt snowball method is for you if:

  • You are trying to pay off debt.
  • You keep losing motivation with your debt free journey.
  • You need an easy to follow and understand debt free method.

Let me know if you any other questions about this debt payoff method.  I’m always happy to answer them in the comments or through a message!  It won’t be easy, but I promise your hard work and effort will be worth it!  There is no better feeling than that debt free feeling!

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How To Stop Overspending

By: Sweet Frugal Life8 Comments

Overspending Triggers and Solutions.

Some days I feel like my spending habits are right on point.  I am sticking to my budget, spending wisely, and stashing lots of money away into savings…….But then, I have other days when I just STRUGGLE and completely forget how to stop overspending! 

I find myself shopping impulsively, buying things without even checking the budget and using a “I want it, so I get to have it” mindset.  Does ANYONE else have this happen????

Obviously I know I shouldn’t spend this way.  Yet, I tend to ignore the voice of reason and spend.

I have learned that these overspending urges are usually the result of a trigger.  SOMETHING going on in my life (usually emotionally for me 😉 ) that causes me to want to overspend.

True Story….

The other day I got that urge to SPEND.  Like, really really spend.  I wanted to buy decorations for my home and I wanted to buy myself a few new shirts and I wanted to go out to eat and I wanted to take my daughters on a back to school shopping spree.

Fortunately, I was able to stop myself from spending this time, but I found myself wondering “What caused this spending trigger?  Why am I feeling the sudden urge to spend, when I know better?”

In this particular moment I was feeling frustrated; frustrated by my budget, and frustrated with the amount of money I am “allowed” to spend each month. 

I just wanted to throw the budget in the garbage and show that budget who’s boss.  I wanted to prove that I can spend what I want and when I want!

This is not healthy!  I need to be friends with my budget!  I knew then that something needed to change.

As a parent, I tend to always budget money for my kids instead of budgeting money for me.  Which I am HAPPY to do for them, but I was limiting myself to much.  I realized that when I am to limited, I get tempted to spend.

So, I decided to change my budget.  Next month I will be budgeting more money for my personal spending money.  I am hoping that by doing this it will eliminate that trigger and will help decrease the spending urges.

We all have different spending triggers and recognizing these triggers is the first step in learning how to stop overspending.

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Today I am going to share with you a few overspending triggers and and the solution to go with it!  I encourage you to pick out a few of your personal spending triggers and come up with a solution to help you overcome it.

How To Stop Overspending

The first step to stop overspending is to recognize what triggers you to spend money.  Here are a few suggestions of situations when you might be tempted to overspend.

1.  Spending Trigger:  Boredom

Maybe your spending trigger is boredom.  You might find yourself stopping by stores or browsing online just because you need something to fill your time.  You are using shopping as a form of entertainment, rather than as a means of buying things that you need.

Solution:

The best way to stop shopping for entertainment is to find a new (cheap) hobby.  Find something that will fill up your spare time and give you a sense of purpose.  If you need some accountability, ask a friend to join you in this hobby. 

A few cheap hobbies include:  running, biking, walking, painting, sewing, crafting, reading, baking, etc.

You could even turn your hobby into a side hustle and have it make you money!  Here are a few side hustle ideas to get you started.

2.  Spending Trigger: Lack of Confidence

Many people shop because they are struggling with a lack of confidence.  You know the phrase, “keeping up with the Joneses” is a real true sentiment.  It’s so easy to look at your neighbors, friends, and others around you and feel like you want to dress like them, look like them, and have what they have.

Unfortunately, this feeling of trying to keep up causes us to overspend and buy items impulsively.  If you find your confidence growing with each new purchase, this might be one of your triggers.

True Story:

Many years ago I went shopping with my sister in laws on Christmas Eve.  They had a few items they still needed to buy for Christmas, so I joined them at the store.  I had all of my Christmas shopping done, but was going along for moral support.

Well, as they shopped and I watched what they bought for their kids, I started feeling insecure about what my kids were getting that year for Christmas.

So, I started impulsively grabbing this and that, trying to keep up.  I began lacking confidence in my previous gift choices, and so spent more than I should have.

Solution:

It’s so important for all of us to develop true self confidence.  We need confidence that doesn’t stem from the size of house we live in, the clothes we wear, or the amount of things we own.

Try reading a few self help books from the library to help you learn more about growing your own confidence.

The next time you want to buy something ask yourself, “Am I buying this because it will make me feel better about myself or because I need it?”  This self reflection can really be helpful in making smart money decisions.

3.  Spending Trigger: Shopping as Therapy

Do you find yourself at the store on the day you are feeling upset or emotional about something in your life?  This is one of the most common shopping triggers.

Shopping can give us a short sense of euphoria, making those really tough emotions temporarily disappear.

Solution:

Find a new way to deal with your emotions.  You might want to go for a run or walk.  Or maybe call a friend and vent to them for a few minutes.  Turn on the TV and watch your favorite movie.  Find something to help you get through the rough moment, that doesn’t involve spending.

I have found when I am feeling emotional a nice long hot bath really helps me relax and forget about the stressful day.

4.  Trigger: Jealousy

Do you get jealous when you see things that your friends or family members are buying?  Or maybe all of the social media influencers you follow seem to live a “better” life than yours, so you buy what they have to try to keep up?

I think most people feel like this from time to time, and it is a very similar trigger to lacking self confidence.

Solution:

Honestly, I think the first step to combating jealousy is to develop self confidence in yourself.  While you are working towards this it’s totally OK to distant yourself from the friends you are jealous of.

I have totally unfollowed friends and influencers on social media before because their posts were making me jealous and tempting me to spend.

Try to find a few frugal friends to lean on when you are feeling weak.  Use these frugal friends as your examples of a beautiful life.

5.  Spending Trigger: Sales

One of my personal biggest spending triggers is sales.  I LOVE a good sale.  But, if you are buying something just because it’s on sale, you are using sales incorrectly!

Solution:

One of my frugal rules is:  There Will Always Be Another Sale.  Always.  This is important to remind yourself of often.  So, the next time you are tempted to buy something because “it’s such a good deal,” remember that there will be another good deal.  There is no reason to buy something and overspend in your budget just for that one deal.

Another great tip is to delete your e-mail from all store databases.  This means they won’t be sending you the flashy emails announcing each and every sale.  If you don’t know about the sale, you won’t shop at the sale!  Problem solved!

clearance rack

6.  Spending Trigger: Friends

How many times has a friend invited you to do something that would cause you to overspend on your budget??  I think this happens to everybody at one point or another.

It’s hard to say No to friends.  We don’t want to hurt their feelings or have them take it the wrong way….so often we end agreeing to do things that we can’t afford.

Solution:

Be up front with your friends.  Tell them your spending limits and the activities that you will be able to or won’t be able to participate in.  Kindly ask them to stop inviting you to the activities out of your budget.  But then, in return make sure you invite them to frugal friendly activities so they understand their friendship is important to you.

I truly believe if they are a TRUE friend they will respect you and your budget limits.

In Conclusion

Every single person on this planet has multiple spending triggers.  We all experience these temptations.  However, it is up to us to figure out how to stop overspending and ignore the triggers.

 

Related Articles:

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How To Stop Impulse Buying For Good

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What is an Emergency Fund, FAQ

By: Sweet Frugal Lifecomment

Today I am explaining exactly what is an emergency fund and why you need one.

One of my most asked questions is, “What is an emergency fund?”  This is such an important question that I wish everyone would understand more.  An emergency fund is something that every single person needs and I want to help you understand how to get one.

I know that it’s not fun to plan for financial emergencies, it’s much more fun to plan for the fun expenses (like a new car or big house).

However, the truth is that nobody ever regrets having an emergency fund….but I know many who regret NOT having one.

This article is answering all of the most asked questions about emergency funds, so you can start making one for yourself.

Everything you need to know about Emergency Funds and why you need one today

What is an Emergency Fund?

Not sure what an emergency fund is?  It’s simple really.  An emergency fund is money you have saved and set aside to be used in the case of an emergency.

This is money that you won’t touch unless you really have to.  It should never be used for fun things, weekend vacations, etc.

Who Needs One?

Everyone needs an emergency fund (yes, everyone)!  It doesn’t matter if you earn a million dollars a year, or are deep in debt, you should have money saved for emergencies.  Don’t ever fall into the belief that an emergency won’t happen to you.  Emergencies can (and will) happen to anyone at any time.

The amount in the fund will look different to everyone, based on circumstances and needs, but the fact that we all need, one stays the same.

Why Do I Need An Emergency Fund?

You need an emergency fund because it gives you a safety net for any financial burden that might arise.  This could be a job loss, large medical costs, or unexpected home repairs.

If you already have planned ahead and saved money for these hard moments, have this money saved and set aside the burden will be lessened.  We have used our emergency fund multiples times!  We used it when my husband suddenly lost his job, when I had a medical emergency, and during an unexpected move.

Every time we have used money from this fund I have felt so grateful we had one it saved, but also developed the desire to save even more.  There is no better feeling than having money in the bank.  That form of safety is vital to me and our family.

When Should I Use Money From This Fund?

Deciding an appropriate time to use your emergency fund is very important.  This is your hard earned money and should only be used carefully and wisely.

Never use your fund for anything other than what it is meant for, an emergency!  Christmas gifts, traveling, and taxes are not an emergency, you should set up a sinking fund for these types of expenses.

When deciding if you should use your emergency fund ask yourself these questions:

  • Is it an Emergency?
  • Is it Unexpected?
  • Is it Necessary?

If you can answer yes to all three of these questions, than it is an appropriate time to use your emergency money.  If you answered No, than do not use it.  Instead come up with a different way to fund your expense.

What If I Feel Guilty?

I’m going to be honest with you, I really struggle using my emergency fund.  For some reason it makes me feel guilty.

If you’ve ever felt this way before, know that you are not alone.  If you are feeling guilty for wanting to use this money for emergencies, remind yourself that it is OK, this is what the fund is for!  You have been responsible in saving money, and it is ok to use this money when the time is right.  It is there to USE, when you need it.

But, be sure to replenish the fund after your emergency has passed.

How Much Money Do I Need Saved?

The amount of money needed for emergencies will vary from person to person.  A good rule of thumb is to have at least 6 months-1 year of living expenses set aside for emergencies.  This is quite a bit more than others recommend, but I would rather you have to much than not enough.

When my husband unexpectedly lost his job, people kept telling us he would find a new one in a few weeks.  7 long months went by before we were finally receiving a paycheck again.  Having that emergency fund in place brought us a lot of peace and comfort.  If we had only of saved for 3 months, we would have been even more stressed and in a bad place.

What are Living Expenses?

Wondering what exactly you should calculate when deciding on your living expenses?  Living expenses are the expenses that you need in order to live and survive.  These will include housing costs, utilities, food, clothing, insurance, gas, and any other basic needs.

You do not need to add extras such as traveling, eating out, etc.  If an emergency arises you will not be traveling, so there is no need to save for it.

Where Should I Keep This Fund?

An emergency fund needs to be kept in a place easy to get it.  This fund is liquid, meaning you can access it in short notice.

I prefer to keep our emergency fund in a savings account or money market account.  Whatever you do make sure you do not put this money in the stock market.

In Conclusion

I hope this article helped you to understand everything you need to know about emergency funds!  Let me know if you have any questions!  I am always here to help!

 

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How To Find Extra Money In Your Budget

By: Sweet Frugal Lifecomment

What you can do to have more money each month.

How would you feel if I told you that it’s possible for you to have an extra $300 each month?  It will not require getting a new job, getting a raise, starting a side hustle, or selling anything.  Sounds pretty good, right???  However, it might require a little bit of time and sacrifice.  Would you want to know more details?  Well, I’m going to give them to you!  Today I am sharing exactly how to find extra money in your budget with these two strategies.

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1.  Analyze Your Fixed Expenses

The first strategy to having more money in the budget each month is to analyze your fixed expenses.  Your fixed expenses are the item in your budget that you have to spend money on each month and usually stay the same.  Common fixed expenses are rent, mortgage, utilities, etc.

I encourage you to look over your fixed expenses FIRST, because these are often the expenses most people think can’t change.  But, they can!

Make a list of each of the fixed expenses you pay each month.  Once you have made your list I want you to put a star next to the items you believe you can lower.

Here are a few examples of fixed expenses that you might be spending to much money on:

Insurance:  The great thing about insurance (and I’m talking ALL insurance, home insurance, car insurance, life insurance, etc.) is that you can shop around to many different providers and agents.  First, call your current insurance agent and explain to them that you are wanting to find a way to lower the cost.  Ask politely if there is anything they can do to decrease the amount you are currently paying. 

Next, call a few different insurance providers and ask them for a quote.  After you have a few different insurance quotes you can then make the decision of whether you would like to switch to a new provider, or stay where you are.  Either way, the amount you are paying should be decreasing.  If your current agent wasn’t willing to lower the rate, it might be a good time to switch to someone new.  In many cases you might find the best deals by having your car insurance with one company and life insurance with another.

 Cell Phone:  A monthly cell phone bill can get expensive fast, fortunately there are cheaper options out there.  Look into a few alternative cell phone companies, such as Tello Mobile or Red Pocket Mobile.  We have used both of these and were so impressed with the high quality service and super cheap rates.

Cable TV:  Still paying for cable?  That’s OK, you’re not alone.  But, this is one of the easiest fixed expense to cut.  Cancel your cable and replace it with one, maybe two, streaming services.  Look into Prime Video, Netflix, Hulu, YouTube TV, Disney+,  Paramount+, etc. until you find the right fit for you.

Internet:  If you haven’t negotiated the price of your internet yet, I suggest you do so now.   If you have been a loyal internet customer, they will usually work with you in lowering the price.  All you have to do is ask!

Utilities:  Try to come up with a few strategies to decrease your utilities costs.  This might include fixing seals on doors and windows, turn your thermostat up or down a few degrees (depending on the season), taking shorter showers, etc. 

If you are needing some more tips be sure to check out my two articles; How To Lower Utility Bills in Winter and How To Lower Utility Bills in Summer.

Monthly Subscriptions:  What are the subscriptions you are paying for each month?  Your subscriptions might include your TV streaming subscriptions, magazines, beauty boxes, gym membership, music subscriptions, phone apps, meal plans, etc.

Choose one, two, or maybe even all of those subscriptions to remove from your budget.

One thing that has helped me with subscriptions is to put them on a rotation.  For example, if I currently have a Netflix, Disney+, FabFitFun, and IPSY subscription, I will choose 2 of them to keep and cancel the rest. 

After a few months of using the subscriptions I kept I will then cancel those and renew 2 more.  I keep rotating my favorite subscriptions so that I can enjoy all of them throughout the year, but only paying for a few of them at a time.

Here is a quick example of what a rotation schedule might look like:

January-June:  Pay for FabFitFun and Netflix.

July-December:  Pay for IPSY and Disney+.

 

 

2.  Analyze Your Variable Expenses

The next step to finding extra money in your budget is to reduce your fun spending.  After you have examined your fixed expenses, it’s time to look at your variable expenses.

Variable expenses are the expenses in your budget that change month to month. 

Take out your list you made of your Fixed Expenses.  Now, I want you to add all of your Discretionary Spending categories to the list.  Look at each of the things that you spend your money on closely.  Put a star next to the items you think you can spend less on.

For example, your updated list might look like this:

Fixed Expenses

  • Rent
  • Insurance*
  • Car Payment
  • Cell Phone*
  • Cable TV*
  • Electricity*
  • Water*

Variable Expenses

  • Groceries*
  • Clothing*
  • Entertainment*
  • Gas
  • Eating Out*
  • Travel*

In many instances variable expenses are HARD to cut from the budget, because it is usually the spending that makes life a little more enjoyable.  I’m hoping to show you a few not so difficult tips for decreasing your fun spending.

Eating Out:  How often do you go out to eat for lunch or dinner.  Are you constantly stopping and buying a Starbucks or other treat on your way to work? 

I challenge you to cut the number of times you eat out a month in half.

So, if a normal week for you includes 5 Starbucks, 3 fast food lunches, and going out to dinner twice, cut that in half to:  2 Starbucks, 1 fast food lunch, and out to dinner once in a week.  You can do it!!!!

Groceries:  I know that we all have to eat, and groceries are a part of life.  But, are there some things you can do to lower the amount of money you spend on groceries each month?  I bet you can!

Take a look at my article, 10 Quick Ways To Lower Your Grocery Bill, to find a few tips for spending less.  Choose one (or all) of the tips in the article to start implementing into your grocery routine.

Clothing:  Another common variable expenses is clothing.  If you don’t need any clothes at this time, avoid going to any clothing stores or browsing online clothing stores. 

However, if you are needing some new clothing items, shop at discount stores, such as Ross or thrift stores, like ThredUp for the clothes that you need.  You can find good quality clothing, for a fraction of the price, if you are willing to change where you shop.

Entertainment:  If you are looking for how to find extra money in your budget, entertainment is usually a good place to look.  There are SO many cheap ways to entertain yourself and still have fun.

Rent a movie instead of going to one.  Check out books from the library instead of buying them.  Invite friends over for a pot luck dinner instead of going out to eat.

When choosing cheaper forms of entertainment, be willing to try new things and get creative.  You just might find a few new favorite hobbies!

Travel:  Do you love to travel?  I do too!  As a matter of fact I love it so much that we consistently contribute money each paycheck into our travel sinking fund.

If I was needing extra money though, travel is something that can be made cheaper.  For example, plan a staycation instead of going somewhere.  Look for fun (cheap) activities you can do around your hometown so that you don’t have to pay for flights or hotel accommodations.

We love contributing to our Travel Sinking Fund, but if something came up where we needed more money in our budget, this is one of the first things we would cut.

 

Finding Extra Money In Your Budget

Now that you have examined your budget closely, and made a list of a few expenses you can decrease, it’s time to put it into action.  Look at the items you have placed a star beside on your list.  Using the tips I shared above, choose a few of your starred expenses to spend less on this week.

Keep implementing your plan even on the weeks it feels hard.  It won’t always be easy to change your spending habits, you will get spending urges!  Fortunatly, spending urges pass if we wait, so be willing to wait out those urge and remember your big money goals.

Now that you are spending less in both your variable and fixed expenses, you should have some extra wiggle room in your budget.  Make sure to use that money we found wisely, hopefully to pay off debt, save for your future, or another important expense.

You got this!  I believe in you!

 

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How To Reduce Monthly Expenses

By: Sweet Frugal Life34 Comments

What we did to save more money each month.

I am not naturally a frugal person.  I was raised by two frugal parents, but I lean more towards wanting to shop and buy all of the pretty things (I’m looking at YOU Target).  It has been a huge learning process for me to become more frugal and to realize the value and beauty in cutting back and saving money.  Learning my new frugal lifestyle has been over the course of years, and quite honestly, I’m still trying to better myself.  Today though, I started thinking about all the things we have cut from our over the years, and I was blown away with the amount of money we are saving ourselves just by making a few different lifestyle choices!  If you don’t know what to cut from budget, this article is for you!  I truly hope it helps you learn how to reduce monthly expenses.

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Pack Your Lunch:  $1000

Packing a lunch for work, instead of eating out with coworkers, has been our biggest money saver.  Every night I pack a lunch for my husband to take to work.  A packed lunch doesn’t need to be anything special or fancy.  Most days it’s just leftovers from dinner the night before, occasionally he will bring a sandwich.

It’s important for my husband to be sociable and build strong relationships at work.  So, a few times a year he will bring some cash to work and go out to eat with his coworkers.  There has been a few times he has joined them for lunch, and ordered something small.  You can keep these strong relationships, while bringing a lunch from home.

I was so surprised to find out this simple habit is saving us over $1000 a year!

Change your own oil:  $210

The second thing we did to reduce monthly expenses was to change our own oil.

My husband taught himself how to change the oil in our two vehicles, all it took was watching a few YouTube videos.  It takes him less than an hour to do and he claims it’s super easy.

He uses this oil drum to drain the oil.  You can deposit the oil for free at most auto parts stores.  This is not some natural talent he has, he had to get out of his comfort zone to learn this skill.  If he can do it, you can do it too!

Once you master changing your cars oil, consider looking into other car maintenance you can DIY.  My husband has changed our brake pads and spark plugs from time to time.  Honestly, I get a little nervous when he does it…..but we haven’t crashed yet!

This simple task DIY oil changes saves us $210 a year.  It’s not a huge savings, but every penny adds up.

Cut the Cable:  $480

A few years ago we decided to get rid of our cable TV.  We were actually already on a fairly cheap rate, but we decided we could do without it.  There are so many budget friendly alternative TV options available now.

You can sign up for Hulu, Netflix, Disney+, YouTube TV, Amazon Prime and more!  I recommend limiting yourself to one or two subscription services.  If we join all of them, you’ll probably end up paying more than you were paying for cable!

The best part is, you don’t even need to spend hundreds of dollars on a fancy smart TV.  Just invest in a simple, affordable Roku and you can watch each of your TV subscriptions.

We have saved $480 a year by doing this!

At Home Haircuts:  $200

I have been giving my husband at home haircuts for over 15 years now, my son has been getting them since the year he was born.  I am not a professional, hair is NOT my talent. I have watched a few YouTube tutorial videos and both my husband and son get very basic cuts.  I have made a few mistakes on both of them, but I keep learning and trying.  And luckily boys hair grows out fairly fast!  😉

All it took $20 to purchase clippers, and I’m still using the same set 14 years later!  You can find a similar pair to ours here:  Wahl Complete Hair Cutting Kit.  This one quick purchase has saved us hundreds and hundreds over the years.

These at home haircuts saves us $200 each year.

Workout at Home:  $840

Exercise is important for the human heart, body and mind.  However, I have just never been willing to pay $70/month for a gym membership.

So, my husband and I have learned how to get a good workout from home.  We go for a run or bike ride during the warm months.  We love using free YouTube workout videos (my favorites are Yoga with Adrienne and PopSugar Fitness) at home and have even scored some really cheap used gym equipment that we enjoy on a regular basis.

These at home workouts are a $840 yearly savings!

The Results:  $2730

Just by making these 5 adjustments to our lifestyle we save $2730 a year!  So, in five years we have saved $13,650!  Ten years it will be $27,300!  Those little expenses don’t seem like a big deal during the day by day, but over time they add up to be a very very BIG deal.

It really has not been hard to cut any of these things from our budget.  We have been living this way for years and honestly never seem to miss a gym membership or cable TV.  It has just become our way of life, and it’s a great life!  It can be hard to form new habits, but once you do, those habits become your way of life and you often never really look back!

Take a look at your budget and lifestyle.  Can you find a few things that you could change in order to save money?  I promise the pay off is so worth it!

 

 

 

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How To Budget With An Inconsistent Income

By: Sweet Frugal Lifecomment

How to budget when you have an irregular income.

Have you been trying to budget with an inconsistent income and keep falling short?  Do not worry!  You are not alone!  This is a very common problem that people with irregular incomes experience.  When incomes changes from month to month it can be very hard to know how to budget.  I mean, if you don’t know how much money you’ll be earning each month, how do you decide how much to spend?  I get it, and I am here to help!  There are a few tricks you can use to make budgeting with an irregular income not only easier, but possible.  Today I’m excited to share my tips to help you learn how to budget with an inconsistent income.

First Things First

Before we get ahead of ourselves, let’s first do a quick run through and how to make a budget.  When it comes to budgeting, I recommend making a zero based budget. 

Zero based budgeting is really just a fancy term that means that when making your budget your expenses will equal your income.  Every dollar you will be earning will have a job, a category it will be put in.  This doesn’t mean you will be spending every dollar, just that you will find a category for every dollar in your budget.

This form of budgeting has helped my husband and I find so much financial success and limit our impulse spending.  If it’s not in the budget, we can’t buy it!

If you are new to zero based budgeting, or budgeting in general, make sure to grab my free Budget Cheat Sheets below to help you get started!

How To Budget With An Inconsistent Income

There are a few different tricks you can do when learning how to budget with an inconsistent income.  I suggest trying a few of these methods out until you find what works best for you and your income.

1.  Make your budget based on your lowest expected income.

My first tip to budgeting with a variable income is to make your budget based off of your lowest expected income for that month.  It’s always better to have to much money, instead of not enough, right?  Right.

When you budget off of your lowest expected income you can be confident in knowing you have budgeted enough money for your monthly expenses.  And, if your income ends up being higher, well, than that’s just icing on the cake!

To find your lowest expected income you will first need to review your income statements from the previous year.  Compare each month until you find the lowest amount you earned last year.

Use that amount of money as your base income for your budget.  

If throughout the month you earn more money than you your lowest expected, you can use that money to:

2.  Budget off of the previous months income.

Instead of living off of the amount of money you will be earning this month, live off of your income from the previous month.

For Example:

Let’s say that you earn $5,000 in January, $3,200 in February, and $5,500 in March.

In February you will not budget or spend any of the $3,200 you will be earning.  Instead, you will be budgeting and spending the $5,000 you earned in January, and set aside your February earnings.  Then in March you will budget the $3,200 from February and save your March earnings until the next month.

Make sense?

Budgeting off of the previous months income can take some practice and self control, but it is a great way to ensure you have the money before you budget for the month.

If you find yourself constantly tempted to spend your monthly income, instead of the previous months, you might want to set up a separate bank account to store that money in until it’s time to use it.

3.  Create a Hill and Valley Fund.

A Hill and Valley Fund is one of the most effective ways to budget with an inconsistent income.

The Hill and Valley Fund is based off of the “Hills” and “Valleys” many people with irregular incomes experience.  Some months your income will be big, like a Hill; and other months it might be a lot smaller, like a Valley.

Creating a Hill and Valley Fund is a way for you to help even out these variable income months.  A Hill and Valley Fund is similar to a sinking fund.

*A sinking fund is a fund you save into regularly, but only use when needed.

The best way to grow this fund is to save some of your excess money during a “Hill” month into this fund, which isn’t always easy, but so important.   Then, on the months when your income is low, a “Valley” month, you can use some of the money you have saved.

You can track your Hill and Valley Fund, similar to a sinking fund, within your budgeting programs.  Or, set up a separate banking account to keep this savings in.  Whichever works best for you!

Stay Consistent

It can be stressful when trying to learn how to budget with an inconsistent income.  One of the most important things to remember is to not let that stress deter you from budgeting.  Keep working your budget, trying different methods, and using your Hill and Valley fund and you will see success.

Try these three steps when making your next budget, and remember to stay consistent.  Consistency is key to living within a budget, no matter how much money you earn.  You can do it!  I believe in you!

 

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11 Things to do Today to Lower your Monthly Expenses

By: Sweet Frugal Lifecomment

Easy ways cut expenses from your budget.

Are you feeling stressed about your monthly bills?  The expenses keep coming in yet the income is staying the same?  I have been there!  I have felt the stress of not feeling like we will ever have any extra money.  It’s not fun!  I learned quickly, and a little begrudgingly that in order to eliminate this finance burden in my life I would need to cut some things from our monthly expenses.  And guess what!  It worked!  I was able to eliminate a few things and clear up some extra room in our budget!  Here are 11 Things you can do TODAY (yes, do them now!) to lower your monthly expenses and save more money!

Cut costs on your monthly budget so you can have more money. frugal living help | how to have more money | how to get out of debt | how to save more | budget help #budgeting #budgettips #savingmoney

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Why You Need To Lower Monthly Expenses

You might be wondering why you should take the time and hassle to lower your monthly expenses.  Maybe you feel like you are doing pretty good financially, and don’t want to add any extra stress to your life.

These are legitimate thoughts!

However, I want to present to you a few reasons why the effort and sacrifice just might be worth it!

Pay Off Debt Faster

Do you have debt?  Maybe it’s some lingering student loans, or perhaps a few extra charges on the credit card.

You might not realize it right now, but this debt is holding you back financially.  That extra money you have to pay towards interest each month is money that you have earned, and you deserve to keep it to use for something else!

Once you have paid off your debts you are able to begin saving, spending, and planning for expenses that are important to YOU!  Becoming debt free is one of the best ways to relieve financial burden and finally take charge of your money.

When you cut your monthly expenses you will be able to have extra cash to pay off your debt quicker, putting you one step closer to that sweet financial freedom you deserve.

Save For A Large Upcoming Expense

If you have any large upcoming expenses, such as paying for braces, buying a house, or a new child on the way, lowering your monthly expenses is a great way to save up for that expense.

When you make a few of the changes I suggest below you will have some extra cash that can be used for the big life events that you might have coming up.

Save For Something Fun

Another great reason to lower your monthly expenses is to be able to have more money to spend on something fun!

Maybe you like to vacation.  If you were able to have an extra $200/month, you could put that money into a vacation sinking fund and in a year you will have enough money to take a small vacation.

This didn’t require earning more money or putting the vacation on the credit card, all you had to do was cut some expenses and use that extra cash for something fun!

Imagine the fun things you have been wanting in life, when you do the work to lower your bills, you are giving yourself a chance to afford the fun things in life!

How to Lower Your Utility Expenses

Lowering your utility expenses is one of the easiest expenses you can cut.  It doesn’t require very much extra effort, and can have a huge impact on your finances.

1.  Reduce Your Home Thermostat

Consider lowering your house thermostat by 1 or 2 degrees during the day and 10 degrees at night (just pile on those blankets and flannel pjs!).  We keep our thermostat set to around 68 in the winter and 78 in the summer. 

By making this one simple change you can save up to 10% on your electricity bill!  Quick, go lower that thermostat asap!

2.  Switch to LED Light Bulbs

If you haven’t switched out the traditional light bulbs in your home for LED light bulbs now is the time to do so.  LED light bulbs are more expensive upfront, but through time the savings is huge and well worth the initial cost!  This 6 pack on Amazon is a good deal at $14.

The great thing about LED light bulbs is that they last forever!  Ok, I might be exaggerating a bit here…they don’t really last forever.  But they do last for a very long time!  As a matter of fact LED light bulbs lasts 5 times longer than regular light bulbs.  This means buying less light bulbs which will save you money (yay!).

The other great thing about LED light bulbs is that they use much less electricity, which brings down the cost of your electric bill.  Just one regular light bulb will cost you $15 a year.  One LED light bulb will only cost $6 a year.  Multiply this number by the amount of light bulbs in your home and you will see huge savings.

3.  Lower The Temp on Your Hot Water Heater

Double check the temperature on your hot water heater.  Lower the temperature down to 120 degrees.  This is low enough to see a savings in your monthly bill, but high enough that your showers will still feel warm and your dishes will get cleaned.   For every 10 degrees you lower your hot water temp you will save your family about 3%.

How to Lower Your Household Expenses

It’s no secret that running a household is expensive!  However, there are a few things you can do to help bring down these costs.

4.  Switch your Cell Phone Carrier

Shop around to multiple cell phone carriers.  If you have been with the same cell phone carrier for a while it might be time to switch.  Most cell phone carriers will offer you a good deal for being a new customer, all you have to do is ask!

Your original cell phone provider might even match the deal when they find out your considering switching.  Don’t be afraid to negotiate a little!

Last year our family started using Tello Mobile.  Plans start as low as just $6 month and we have been so impressed with the coverage.


The wireless network you deserve

5.  Negotiate Your Homeowners Insurance

Ask your insurance provider for special discounts on homeowners insurance.  Most will be willing to offer you a deal if you bundle with your auto insurance.

You might also get a deal if you have a security system, have retired recently, been with the same company for a long time or updated your home to make it more disaster proof.  My motto is that it never hurts to ask!  Remember, everything is negotiable!

Don’t be afraid to shop around for different providers while you are at it.  You might be able to find a cheaper rate somewhere else.

6.  Pack a Lunch for Work

One of the quickest ways to lower your monthly expenses is to stop going out to eat.  Eating out regularly is very expensive.  I have found it important to make a meal plan each week and stick to it.

If you consistently eat out for lunch while at work, start packing a lunch from home instead.  Give your co workers a polite, “no thank you” to the lunch invites and eat a lunch from home.

My husband loves to take dinner leftovers in his lunch.  Whenever we have leftovers, we just proportion them into lunch sized servings and stick them in the fridge.  This makes it easy to grab and bring to work, and tastes much better than a sandwich!

How to Lower Entertainment Expenses

Another budget category that is easy to lower are entertainment expenses.  Entertainment usually falls under the want category, making it easy to stretch a little thinner if necessary.

7.  Cancel All Subscriptions/Memberships

Look through all of your monthly subscriptions and memberships.  Pick a few (or a lot) of these subscriptions to cancel immediately.  You just might be surprised how quickly the extra money adds up from this simple switch.

Don’t forget these common subscriptions/memberships:

  • Gym Membership (try one of these free exercise ideas instead)
  • Netflix
  • Amazon Prime
  • Hulu
  • Disney Plus
  • Magazine Subscriptions
  • Music Streaming Services
  • Beauty Box Subscriptions

If this feels like a huge sacrifice to do all at once, try cancelling just one or two per month.  This will help you ease in to the change.  Just don’t forget to keep canceling something new every few months!

8.  Cut Your Cable

Do you still have cable TV?  Get rid of it to save an extra $40-60 every month. 

We did this a few years ago and I thought we would miss it (especially the DVR).  Fortunately we actually haven’t missed it at all!  There are so many other affordable ways to relax and watch TV.  A few of our favorites is to rent movies from the library and use Netflix.

Other Ways to Save

Now that you’ve reduced your entertainment, household, and utility expenses there are still a few more things you can do to free up some extra money.

9.  Increase Your Auto Insurance Deductible

Consider increasing your auto insurance deductible.  This will result in a lower monthly premium, saving you money each month (which is what we want!!).

Just be sure you have enough money in your emergency fund to cover the deductible in the case of an accident.

10.  Ask for a Lower Credit Card Rate

If you have any credit card debt call these credit card companies and ask for a lower monthly interest rate.  Most companies will be willing to honor this request if you have been paying on time each month.

I know this can be a scary phone call to make, but really the worst thing they can say is, “No”, right???

11.  Sell Clutter Around Your Home

Use your clutter around your home to make a little extra money!  Take an hour today to sort through your home and use a few online platforms to list a some of your clutter for sell. 

My favorite quick-to-sell place is Facebook Marketplace.  Most items I list for sell on Facebook sells within a few hours.  Use this extra cash to help pay for your bills this month.

Try to make a goal to sell a 2-5 items every month.  If you have any debt this is a great way to get this debt paid off a little faster.

In Conclusion

You do not need to implement each of these ideas into your life immediately, just pick a two or three to do today and then pick a couple more to do tomorrow.

These small simple changes will make a big difference over time.

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How to Start Budgeting for Beginners

By: Sweet Frugal Life4 Comments

Your Budgeting Questions Answered!

I receive so many messages on a daily basis from people wanting to learn how to start budgeting, but they don’t know how to take that first step.  It is always so amazing to me when I see others who want to improve their life and financial situation.  This isn’t an easy thing!  It can be scary trying to make such a big change into the unknown.  There can be a lot of questions when you first start budgeting and I want to answer some of those for you. 

FAQ for budget beginners2

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How do I begin budgeting?

The very most asked question I receive on Instagram is “How do I start budgeting?”  I think one of the hardest parts of most new habits is starting.  It is always hard to take that first big, sometimes scary, step in a new direction.  I have three suggestions to help you get on the right track for a successful budget.

1.  Make A Zero Based Budget

I recommend making a Zero Based Budget.  This is a budget where your expenses and income will be the same, you give every dollar a job to do.  This doesn’t mean you SPEND every dollar, it means that it has a purpose and place within your budget.

If you are new to budgeting, it might take you a while to figure out just how much money to budget for each category.  This is normal!  A budget is fluid, meaning it is always changing. 

I had about a year of FAILED budget (no lie) before I finally learned what works for me and my family.

A great resource to get started is my Free Budget Worksheet.  Grab it by signing up below!

2.  Track All Expenses

Once you make your Zero Based Budget I recommend tracking all of your expenses throughout the month.  Yes, this means to right down every.single.thing you spend.  Even that $1 pack of gum.

Tracking your expenses keeps your budget accurate, and gives you a great window into your spending habits.  By tracking your spending habits, you will be able to see what areas you are over spending in and areas you could cut back.

3.  Check Out Dave Ramsey

I highly recommend everyone new to budgeting, frugal living, or paying off debt read the book, The Total Money Makeover by Dave Ramsey.  This book changed my mind and was the one thing that put me on my path to frugal living and mindful spending.

Check it out from your library, borrow it from a friend, or order it from Amazon.  No matter how you get it, just read it.  Dave Ramsey uses easy to understand terms as he explains exactly how to fix your financial situation.

What is the best way to keep track of day to day spending?

Ok.  So now that we understand it’s important to track spending, let’s talk about exactly how to do that!

There are a few different ways to track your spending.  Truth is, there are many different ways to track spending.  What’s most important is that you stay consistent with tracking.  Now, let’s discuss your other options.

1.  Excel Spreadsheet

When we started budgeting my husband put in hours making us an excel spreadsheet budget.  It was full of details and catered to our spending and needs.  

Using an excel spreadsheet for tracking expenses is free and easy to customize, but can be very time consuming!

2.  App or Software

After using the excel spreadsheet for a few years we moved on to a computer budgeting program.  It was seriously the best decision.

We have been using You Need a Budget for about 10 years now and have never looked back.  It is so user friendly and very affordable!  You can download the app onto your phone and update it as you spend.

A few other great apps available are Every Dollar, Mint, and Pocket Guard.

3.  Paper and Pen

There is nothing wrong with tracking expenses with paper and pen.  As a matter of fact, I know many who prefer doing it this way.

When tracking spending it is important to stay consistent.  Pick a day of the week, schedule a time, and develop a routine for tracking your spending.

How do you use cash envelopes?

Cash envelopes are a great way to limit your spending and stick to your budget.  They are fairly easy to use too!

Just make your budget, and then get out enough envelopes for your spending categories.  Label each envelope, “Clothing”, “Groceries”, etc.  Stuff the envelope with enough cash to cover your budgeted amount.

As you go throughout the month, use the cash envelope to purchase items in each category.  Once the cash is gone, your spending for the month is done!  

How do you make a grocery budget?

First, I want to remind you that grocery budgets will vary greatly!  There is no secret amount or right/wrong way to budget for groceries.  Food prices vary in different parts of the world, and different families have different needs/diets.

It will take some trial and error to find the right grocery budget for you.  A good rule of thumb is $100/person/month.  So, a family of four would have a budget of $400/month.  However, if you find yourself needing more in your budget that’s OK.  Make your budget work for YOU!

How do you save money on groceries?

Groceries are one of the biggest expenses for most budgets.  But!  I have learned a few ways to ease this burden!

1.  Meal Plan

The number one way I have found to keep those costs low is to meal plan.  Plan out every meal you want to eat for the week.  As you meal plan, write out your grocery list, and stick to this list while you shop.  Having a plan reduces the temptation to impulse shop and eat out.

2.  Walmart Grocery Pickup

Another fantastic way to stick to your grocery budget is to use Walmart Grocery Pickup.  It is completely FREE and you get to shop at home (in your PJs!) and then pick your groceries up at the store.  You don’t even have to get out of your car!!

The thing about Walmart Grocery Pickup is that you are able to watch your cart total on the app as you shop.  If you find you are spending more than your budgeted amount, just delete a few items from the cart!  So easy!  So helpful!

What are the easiest cashback apps for frugal beginners?

I’m always getting asked about the best cash back apps.  And, I love answering this question because cash back apps are one of my favorite things ever!!

Here are a few of my favorite:

1.  Ibotta

Ibotta is the cashback app I have been using the longest.  It’s easy, straightforward and always has a few rebates available!  Sign up using this link for up to a $20 bonus!  Whoo!

2.  Fetch Rewards

The easiest cashback app ever is Fetch Rewards.  Fetch Rewards takes less than a minute to use, and rewards you with points for every receipt.  These points can be redeemed for gift cards to your favorite places (Target and Amazon!!).  Try it for yourself here and use code FETCH2K to get 2,000 bonus points!

3.  Rakuten

Another very easy app to use is Rakuten.  Rakuten gives you cashback when you shop online at participating retailers.  I never buy anything online without first checking the Rakuten website!  Sign up today and get $10 bonus when you spend your first $25!

I share more details about cashback apps here!

What should my budget look like?  What is normal for our family?

When you are learning how to start budgeting it’s important to remember that no two budgets look the same, and that’s how it’s suppose to be.

My normal will be different than your normal.  What I spend on groceries, will be different then what you will spend on groceries, etc.  This is one of my favorite parts of a budget.  You can customize it and find something that works for you personally!

What can you do when you cut back, budget and still don’t have enough?

I loved this question; because it is so relatable and real situation for many of us.

My first piece of advice is to keep your head up!  You are NOT alone!  There are so many dealing with similar struggles.  I strongly believe that together, we CAN help each other reach our financial goals.  Reach out to facebook groups and instagram accounts that discuss this issue.  Surrounding yourself with others in this situation should give you the strength, support and ideas to help get you through it.

When you have done EVERYTHING you can think of and the money is just still NOT adding up, that means it’s time to take more extreme actions.  Here are a few ideas to take when you need to be “gazelle intense.”

 1.  Sell items in your home

Look around your house for items you don’t use very often.  Sell these to earn a little extra money.  My goal is to always earn about $50 each month just by selling my clutter.

10 Items In Your House You Can Sell Quickly To Make Money 

5 Places Online To Sell Your Clutter and Earn Cash).

2.  Start a side hustle

Try to find another way to bring in extra money.  A side hustle is a job you can do during your free time.  Here are a few side hustle ideas you can do at home.

3.  Make some sacrifices

Look through your budget one more time and find a few things you could cut out to have more money.  A few ideas are to stop eating out, lower your phone data plan, stop going to movies, skip the daily Starbucks, or cancel your TV subscriptions.

4.  Earn more money

Consider asking for a raise from your current employer.  If you have been working at the same location for over a year, many employers will consider giving you a raise.

If a raise won’t happen you might want to make a job change.  Begin searching around for a job that will pay better and still make you happy.

5.  Downgrade

If you are in desperate need of more money and none of the other suggestions will work for you, you might want to look into downgrading in a few areas of your life.  This might mean trading in your car for a cheaper model or moving into a more affordable home.

I understand it is NOT easy when the money just ISN’T there.  ESPECIALLY when you feel as if you have sacrificed again, and again and again.  I get it, I have been there!  Keep your head up.  Keep trying.  Be “gazelle intense.”  I believe in you!

In Conclusion

I hope this article answered all of your questions about budgeting!  Feel free to reach out if you have any other questions.  I’m always happy to help!

Remember that learning to budget takes time, and that’s OK!  Don’t give up if you fail the first few times…..keep trying and keep learning.

 

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FAQ from Budget Beginners (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I hope this helps you understand how to start budgeting for beginners.

Money in Your Twenties: What You Need to Know

By: Sweet Frugal Lifecomment

Finance tips for your twenties.

The twenties were some of the best years of my life.  It’s a wonderful time when the entire future lays ahead of you and you feel ready to conquer the world.  This is also a time when a lot of personal growth and learning occurs.  You make big decisions that have big consequences on your future.  One of the most important of those decisions how to manage your money.  Oh how I remember being young (and dare I say naive….).  I thought life would go exactly as planned and money would never be an issue…boy was I wrong!  I so wish someone, anyone, had sat me down and taught me more about finances.  Sure, I understood that I should spend less than I made and that you had to work for money….but there were some important things I was very ignorant of.   So today I am going to share those lessons with you.  Here are a few things I think you should know about money in your twenties.

what I wish I knew about money in my twenties - money tips for 20 year olds

1.  Start Saving For Retirement ASAP

One of the most important things you should know about money in your twenties is to start saving for retirement asap!

I know in these early adult years retirement feels forever away.

Guess what?  It’s not.  The retirement years are going to come quicker than you think.

The day you start earning money is the day you should start investing into a retirement savings account, such as a 401k or IRA.  Time is your friend when it comes to investing and compound interest.  So, start early!

2.  Budgets Are For Everybody

For about half of my twenties I didn’t think I needed a budget.  I never spent more than we earned, so I felt confident in my money management skills.

After reading Dave Ramsey’s Total Money Makeover my views on money shifted drastically.  I realized that a budget is for EVERYBODY, and we could have more money if we started budgeting.

The next day my husband and I sat down and made our first budget.  We weren’t pros at the beginning….as a matter of fact we failed many times.  But through practice and patience we mastered budgeting and our finances improved.

Everyone should be budgeting, it doesn’t matter how much money you make or save.  A budget will help you help you save even more and help you control your spending.

3.  You Need An Emergency Fund (and probably a bigger one than you think)

In your twenties it’s easy to feel as if all the bad things only happen to other people….never to you.

I’m here to tell you, that they do and will happen to you too, unfortunately.

I don’t know what will occur in your future, but I do know that you need an emergency fund to cover any expenses or circumstances that might come your way.

Try to save a minimum of 6 months living expenses in your emergency fund.  This will give you enough to cover most emergencies without feeling stressed about the distant future.

4.  Debt Is Dumb

You will run across many advertisements trying to convince you to sign up for this credit card or buy that piece of furniture on credit.  You will hear phrases like, “0% down” or “no payments for one year!”  Many people will tell you it’s normal to pay off debt.  It becomes confusing as you try to weed through what’s correct and what’s not.

I’m here to tell you that debt is just dumb.  Period.  It will only bring you financial stress in your future. 

Stay out of debt!  Remember, if you save up and pay cash for something, rather than buying it on credit, you will end up spending less in the long run!  No debt=no interest!

The only thing I recommend anybody going into debt for is to buy a house.

5.  Your Tax Refund Is Not Free Money

I remember the time my husband and I got our first tax refund back in the mail.  It felt like free money just being handed to us.  I basically thought it was the best thing ever and immediately started planning all the fun ways to spend this new found money.

What I WISH someone had told me was that a tax refund is NOT free money.

In fact it is money that you worked hard for and EARNED……and then loaned to the government interest free.

If you do receive a tax return remember that this is not free money, it’s money that you earned and should be used wisely.  I suggest using it to pay off debt, grow your emergency fund, or to help you save for a big upcoming purchase.

6.  You Don’t Need a Fancy Car

In my twenties I truly thought I needed a brand new car to “officially” become an adult (insert eye roll here).

Oh, how wrong I was!

I’m here to tell you that you do not need a fancy car.  If you want one, and can pay cash for it, go for it, but it is so not necessary.  Cars are known for losing their value quickly.  In fact, cars will lose around 15% of their value EACH year, that’s a lot of wasted cash.

Look for a vehicle that will be safe, reliable and fuel efficient.  Look for one that will be able to grow with you as your life changes throughout the years.  Most importantly, look for one that you can afford.

7.  Bills Are Negotiable

Your bills are negotiable!  Don’t ever be afraid of asking for a better rate or cheaper amount.  The trick is speaking up, knowing your facts, and being polite.

You will find big savings each month if you begin negotiating your bills.

8.  Just Because You Can Afford It Doesn’t Mean You Need to Buy It

This is an important one so listen up.

Just because you have the cash to buy something right now…doesn’t mean that you need to buy it right now.

Don’t give in to your impulses and the flashy sales that will come your way.  You worked hard for your money and shouldn’t blow it on items you won’t value in the long run.

When choosing whether to buy something or not ask yourself these simple questions:

“Do I need this?”

“Did I budget for this?”

“Will I use this for many years?”

If you can answer yes to all three of these questions, than it is a good buy.  If you answer no to any of them, I would wait a few days before making the purchase.  This gives you the time to make an informed decision, rather than buying on impulse.

9.  Credit Cards Are Great…..If You Use Them Correctly

I am a HUGE fan of credit cards in my own life.  I use them regularly and love the cash back that I can earn from them.  Each of my credit cards are paid off in full every month and I always spend within my budget.

When I was in my twenties, I had heard many people say that credit cards were bad….so I didn’t use them.  Later down the road, as I learned and studied more I realized I was missing out on a lot of rewards.  

I now use credit cards regularly and would never go back.  If you are wise with your money I encourage you to look into a few reward credit cards.  We personally use a Discover Card and love the cashback earned each month.

HOWEVER!  There is a big but here!

If you struggle with constant over spending, are often over budget, and have a history of credit card debt, I would advise you not to open a credit card.  In this instance the rewards are just not worth the risk of overspending.

Learn Money Skills NOW

The most important thing I can teach you about finances in your twenties is that it’s important.  This is the crucial time in your life to learn everything you can about money now so that you will be able to implement it throughout the rest of your life.

If you are looking for a good place to start learning about money I highly recommend the Master Your Money Super Bundle.  This bundle is available for only 5 days and is over 90% off!

Master Your Money Super Bundle 2020 

In it you will be given all of the tools you need to start budgeting, investing, paying off debt and cutting expenses.  I have already learned so much from this bundle and know you will too! 

Grab it today before this deal is gone:  Master Your Money Super Bundle 2020

In Conclusion

The twenties were one of my favorite times of my life.  It was when I truly grew and found myself.  Enjoy this time while you are in it, but never forget that the future isn’t as far away as it might feel, and finances matter.  I hope these tips helped you learn how to manage money in your twenties.

 

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How To Stop Impulse Buying For Good

By: Sweet Frugal Life7 Comments

10 tips to help you stop impulse shopping today.

Let’s talk impulse shopping.  Truthfully??  This is something I have always struggled with.  Do I budget?  YEP!  Do I love to save money and watch my bank account grow?  ABSOLUTELY!  Yet, I STILL impulse shop!  (you win some and lose some right???)  A few years ago I made a few changes to help stop this bad habit.  Through time, and a lot of practice and fails, I have finally been able to control myself more at the store.  If you can relate to this, well you’re in luck!  Because today I am going to share a few tips to help you learn how to stop impulse buying.

secrets to stop impulse buying

1.  Admit you Have a Problem

The first step to quit this bad habit is to admit that you have a problem.  Many impulse shoppers try to rationalize their impulse buys.  These phrases sound a little like, “Oh, but it was on sale, so it was a smart buy,” or “It was something that we really needed anyway, so it wasn’t really an impulse buy.”

The truth is that these phrases are only excuses.  We make up excuses to hep ourselves feel better when we know we messed up!

The next time you buy something on impulse, admit to yourself what you did.  Don’t make up an excuse or explain the buy away.  Impulse shopping doesn’t make you a bad person, it makes you normal….but that doesn’t mean it’s what is best financially.

You must admit you have a problem, before you will ever be able to change.

2.  Recognize your Triggers

Now that you’ve admitted you might have an impulse shopping problem, it’s time to decide what your spending triggers are.

Is there a certain store that you leave buying more than you should have (this would be Target for me!).  Or maybe when you are feeling stressed you spend more than you want to.  Pay close attention to your spending habits and make a list of a few of the triggers that tempt you to shop.

3.  Find Alternatives To Shopping

The third step to curing impulse shopping is to find alternative activities to help keep you away from your spending triggers. 

If shopping at Target tempts you to overspend, shop at Walmart instead (this is what I had to do!!)

If you shop when you are feeling upset, find a different activity to help you work through those emotions.

If you follow a really cute, sweet blogger on Instagram, but her posts about darling clothes on sale make you want to spend money….unfollow her!

Do whatever it takes to find something to keep you away from your personal triggers.

4.  Leave the Cards at Home

Ditch your credit and debit cards and instead shop using cash.  This is the best way to make sure you don’t overspend.

Decide how much money you want to spend at the store, put that much money in an envelope and leave EVERYTHING else at home.

You will need to pay close attention to everything you put into your cart, because you literally can’t afford to buy anything that costs more than the cash in your wallet.

5.  Make a List

Never go to the store without a premade list in your hand.  Commit to buying what is on that list, and NOTHING else (even if you pass by the cutest shirt….and it’s on a huge discount….just keep on walking!).  This has saved me so many times!  For some reason if it’s written down, I am much better at sticking to my goals.

6.  48 Hour Rule

Give the 48 hour rule a try the next time you want to impulse buy.  It’s super easy!

Just set a dollar amount (mine is $50) and commit to waiting at least 48 hours before buying anything above that amount.

This will give you time to make sure you REALLY want this item.  Most of the time when I wait 48 hours, I tend to change my mind and realize that I didn’t need the item after all (funny how that works huh!).

The 48 hour rule also gives you time to shop around, and see if you can find a similar item at a cheaper price. 

When you wait to make a purchase you are giving yourself time to separate emotions from logic, or want vs. need.  This is so important when learning how to stop impulse buying.

7.  Give Yourself Splurge Money

Be sure to include “splurge money” in your budget.  Splurge money is money for you to spend however you WANT!  (yay!  I love splurge money!)

Your splurge money will give you that sweet little taste of freedom in spending.  This can help curb a lot of your spending temptations.

The amount you budget for splurge money will be different for everyone.  If you have a very tight budget, your splurge money should be a smaller amount.  If your budget has some wiggle room perhaps you could give yourself more money.  As always, do what’s best for YOU!

8.  Walk Around With Your Shopping Cart

This suggestion might seem a little silly, but it works for me!

Whenever I get tempted to impulse buy something not on my list, I grab it anyway and put it in my cart.  I don’t head right to checkout, but instead browse around the store for a while.

After 20 minutes or so, when it’s time to leave, I look at my cart and the items I stashed in there and ask myself, “should I really buy this?  Do I have money in my budget for this item?  Is it something I need?  Could I wait and budget for it later and come back and buy it?”

Because I gave myself that time to walk around with it in my cart, my voice of reason come back and I usually decide to put the items back where they belong.  Try it!

9.  Use a Spending Buddy

Find a friend who has similar financial goals as you and use each other as someone to talk to when tempted to impulse buy.

A few years ago I had a good friend who agreed to be my spending buddy.  Whenever I would find that one item I thought that I just HAD to have, I would call my friend.  I explained to her what I wanted and she would ask me the important questions about if I really needed it, could I find something cheaper, etc.  And, I would do the same for her in return.

My spending buddy was so great at helping me spend less.  And because I KNEW I would need to call her before I bought anything….it made me second guess my impulses, I only wanted to call her for important things!

10.  Forgive Yourself

This is one of my very most important tips!  We are all going to make mistakes, change is HARD…..and perfection is IMPOSSIBLE!

Remember to forgive yourself when you overspend and impulse buy.  Use these mistakes as an example to learn from.  Make a plan about how you will be do better next time, and then MOVE ON.

In Conclusion

If you are struggling with overspending and trying to figure out how to stop impulse buying, try out a few of these tips.  The most important thing is to remember to keep working at it.  You won’t cure your shopping problems over night, but through time, patience and effort you can form new habits.

 

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Remember to just say no the next time you are tempted to shop on impulse.

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