Training Plan: Endurance Cycling and Personal Finance

The following is a guest post by Troy Lambert from TroyLambertWrites. Enjoy! 

On March 11, 2016, I tore a calf muscle playing basketball with my son. I went up to shoot a three point shot, felt a sharp pain in the back of my calf like someone had hit me with a racquetball or stabbed me, and collapsed onto the court.

One week later on March 18th, I got married. It was the most expensive party either my wife and I have ever thrown, and it was a stretch to say the least. She has some health issues, and we took an unexpected and expensive trip to Seattle for treatment a little over a month before the wedding.

Financially and physically, we were at a low point. We needed a plan to get our finances back on track, and I needed to get back in the gym and on my bicycle. I didn’t know it at the time, but I would spend the last half of the summer training for a mountain bike race involving 53 miles of gravel road. Our plan for financial recovery and my training plan have some interesting parallels.

Moving Forward is Key

I’m a writer, and writing is a business. In both business and personal finance, we often hear that cash is king.

We ended the wedding with little cash, but with good cash flow. While physically injured, I had the potential for rehab and healing. That potential and our cash flow were more important than my actual strength or our financial position at the time.

Have a Plan

For our wedding day itself, we had a budget: planning a wedding is like starting a small business you plan to run for only one day and never expect to profit from. We suffered financial setbacks in that process, but managed to cut where we could.

Once we were past the big day, we needed a recovery plan. We needed to renew our savings and pay off any debt we incurred in the wedding planning process. However, just as in training for a cycling race, a general plan wouldn’t do.

• Specific short term goals need to be set. Whether those are miles for cycling or dollars for savings, these need to be reasonable and achievable, but aggressive enough that reaching your goals will not be easy.
• Milestones with a contingency plan need to be established. To successfully complete a race, you need to reach certain mile counts by specific dates set by your training plan. If you have not met them, you need to decide what that means, and how you will make them up, or reset your goals more aggressively. It is the same with savings and budget: aggressive milestones that stretch your income need to be set and established until you can achieve stability.
• Relax and Level Out. In every training plan you need to take days off for rest. During recovery from a financial setback, you need days off too, whether that is a date night out, or a family fun day where you allow yourself to splurge, at least a little. Once you have reached a certain financial or physical fitness level, adjust your plan to maintain your current level while allowing for growth at a more reasonable pace.

Having a plan is one of the most important keys to success. However, it is rare for things to work out exactly as anticipated.

Priorities and Plan B

Contingency plans are one of the most difficult things to do under any circumstances. Whether in endurance training, personal finances, or business, the issues are similar. You have to anticipate what could go wrong and determine what you will do if it does.

Injury. Injury can be physical or financial. Essentially this is a loss that impacts your ability to achieve the final goal. In finances this can be any monetary setback, from job loss to an unexpected car repair or hospital visit.

Theft. While injury is accidental, theft is loss intentionally caused by someone else with the intent to harm you. Not only does this hamper your ability to achieve your goal, but can affect your confidence in your skills.

Acts of God. During cycling training, there was a wildfire in our area that filled the air with smoke to the point where it was unhealthy to breathe. While there were indoor training options, none of them truly replicate mountain biking on gravel adequately. Financially, natural disasters can occur that you are not prepared for.

How do you deal with these setbacks? First, set priorities. What are the most important financial obligations you need to meet, and what can be pushed off until later? Do you need to dip into savings?

Second, deal with the issue at hand. Whether that is shifting resources to cover an injury, reporting and following up on theft, or dealing with insurance or whatever method you have in place to cover Acts of God, taking care of the problem before it gets any worse is essential.

Finally, reestablish a recovery plan. This is your path back to Plan A, and stability. This may look different than your original plan, as you may have learned things through setbacks.

Ready, Set, Go!

You set out on your financial plan with a goal in mind. Whether that was simply to have a cushion in savings, a dream vacation, or purchasing a new home, at some point you will have reached the starting line of your goal. In cycling terms, it’s race day.

The first part is probably uphill. Races usually start this way. The first part of vacation will be the outlay of money for plane tickets and hotels. The first few months of owning a new home will be filled with furnishing and fine tuning the space to make it yours.

Things even out at the top. Once you have passed the initial expenses or the first hill of the race, things get smoother, and moving at a steady pace is the most important thing. Slowing down means you won’t reach the finish as soon as you have planned, speeding up means you may run out of energy or money before the finish.

Finish Strong.  It’s likely this one financial goal is not your last, nor are you only going to ride in one race, then quit and stop cycling entirely. Each goal accomplished gives you confidence to move on to the next, so finish each as strongly as you can.

There are many things we could compare to personal financial planning, but if we think of it in terms of endurance cycling, it can help us think in terms of the long run. Always moving forward, having a plan, setting priorities and having a plan B, we will be able to achieve our goals and then some.

***Photo courtesy of https://www.flickr.com/photos/tejvan/5044111293/in/

Personal Credit Repair and Long Term Savings

The following is a guest post. Enjoy!

Lots of people don’t understand personal credit at all. They don’t know anything about their own credit histories, and they certainly don’t know what their credit score is if they even understand that concept at all. The thing is, credit history has a lot to do with how you’ll be able to save and grow your money over time, and a good credit score is essential for borrowing and employment opportunities that will give you the most advantages in life. Understanding your credit score is very important. We’ll show you how to improve it if it’s not so good, and we’ll explain why that’s important.

Your credit history is important because it tells a story about your financial life. There will be times in your adult life that you have to borrow money. You might want to buy a car, go to school, or buy a house. When you ask a financial institution to let you borrow the money you need to do one of these things, the lender will have to do some thinking about how much they trust you with their money. Your credit history tells them the info they need to know: whether or not you pay your bills on time, how much you rely on credit to live your life, etc. Your credit score wraps up all of this history into a single, three-digit number. Instead of reading your entire history, a lender just takes a peek at that number and makes their decision.

The end result is that you’ll pay either a lot or a little for a loan. If your credit score is bad enough, the lender probably won’t give you a loan at all.

As you can see, credit history is important. In order to save the most money on loans over the course of your life (and credit card interest, as well as a few other details), you’ll have to improve your credit score. But how is this accomplished? Credit scores, like we said above, reflect the way you use your money. If you pay your bills on time, don’t take out lots of loans in your everyday life (Credit cards and whatnot), and generally live beneath your means, you will appear to be financially responsible. This is great news for your potential lenders, and for your credit score.

As you establish long patterns of good credit and personal finance behavior, your credit history will have long stretches of excellent reports. As these excellent reports accumulate end on end, your credit score will rise. You can do your own research to find out specific ways that credit scores can be improved. There are a lot of details in this area, more than we can cover in a single post. But be encouraged, because no single step is that difficult. The hardest, possibly, is eliminating debt. Once that’s done, all of the rest of the procedures are pretty easy. In the end, you’ll have a great credit history and an awesome credit score, and you’ll see your financial life improve gradually as a result.

Personal Finance Statistics: How Do You Stack Up Against the Rest of America?

The following is a guest post. Enjoy! 

Managing your personal finances day-to-day has become routine, but many do not know how they stand against the rest of America. Are you better off than the rest or are you spending more than most of the country? Here are some statistics to help you determine if it is time to rethink your finances.

Finances and Credit Scores:

• 76% of America lives paycheck to paycheck.
• 77 million Americans have debt that averages to about $5,200 per person.
• A 700 score is considered a good credit score and the average credit score is 692.
• In 2015, between business and non-business, 911,086 Americans filed for bankruptcies. This is the lowest it has been in the past four years.
• 25% of middle-class households have less than three months savings.
• When using credit cards, Americans spend 12-18% more.
• In 2014, 48% used credit cards to pay for online purchases, while 30% use a debit card.
• Only 30% of Americans plan long-term savings and financial plans.

Ethnicity:

• Two in three households of color do not have three months of savings accrued.
• The home ownership rate for white households is 72% while the ownership for households of color is 46%.
• African-American households have interest rates at least 2% higher than that of white households.
• 50% of white households and 71% of African-American households have received calls from debt collectors.

Retirement and Gender Differences: 

• When it comes to knowing financial literacy (knowing how money works in the world, how to invest money and manage money, and how to earn money) women consistently score lower than men.

• There are no differences between men and women who have strong financial literacy.
• 50% of working Americans have less than $2000 saved for retirement.
• 24% of Americans have postponed their retirement at least once during the past year.
• 17% of retirees report that their current level of debt is higher than it was five years ago.
• 50% of today’s American families are at risk of not being able to maintain the standard of living once they retire.

3 Ways for Parents of Current (or Future) College Students to Save Money For Their Education

These days, a college education is not exactly cheap.  In fact, it’s more expensive than ever to attend a university in the United States.

While this is rather daunting, there are ways that parents of current (or future) college students can save money to help finance their education.  Here are just three examples:

• Have your student apply for scholarships:

There are a lot of different scholarship opportunities out there, and often times the ones closest to home are overlooked.  While there are larger national-level scholarships available, there are often scholarships available locally for students to apply for in order to help finance their college education.  These local scholarships are also often less competitive than larger regional or national scholarships, so your odds of getting one are greater.

• Optimize your student’s meal plan:

When it comes to paying for your student’s meals on campus, make sure you’re not pouring money down the drain by having the wrong meal plan.  If you find you are ending up with a lot of extra meals at the end of the term, you should consider changing to a plan with fewer meals (and likely a cheaper price tag!).

On the other hand, if your student doesn’t currently have a meal plan, or he or she has a plan that doesn’t include enough meals to last the whole term and they’re spending more on groceries or take-out than they would if they had a larger meal plan, scale up.  Take a closer look at their budget (or what you’ve set for them) and if you find they are spending more money on outside meals than they would if they went for a larger meal plan, then consider upgrading to a meal plan that includes more meals per term.

• Use a cash-back credit card:

While you need to be careful that you keep your spending in check and not let it get out of control, when you do use a credit card you should make sure you use one that offers cash-back.

For example, the Upromise MasterCard® is a great example of such a card, allowing you to save money or directly help pay off your child’s student loans while you spend. With over 850 participating online stores, over 10,000 restaurants, and several major travel sites, you can get up to 10% cash back on your purchases through Upromise.com simply by using the Upromise MasterCard. There are a lot of necessary items that you’ll need to purchase for your student, and with hundreds of online retailers participating, there’s no reason not to get cash back on what you spend. Similarly, if your student lives far, you’ll want him or her to travel and visit during school breaks, and with several major travel sites participating, you can get cash back when you book your travel plans using the Upromise MasterCard. Further, you can get up to 2% cash back at certain department stores and movie theaters. Finally, you can get up to 1% cash back on any other purchase you make, therefore no matter what you spend your money on, you’ll be able to get a little bit back each time to help you finance your child’s college education. If you’re interested in learning more about the Upromise MasterCard, take a look at the infographic at the link below!

8 Tips to Help Repair Your Bad Credit

The following is a guest post. Enjoy! 

Have you had some financial missteps over the course of the past few years? Is your credit score less than ideal? If you answered yes, you’re definitely not alone. Failing credit scores have become one of the largest victims of the recession and financial crisis. Unfortunately, that’s the number banks, mortgage lenders and credit companies use to determine whether you can get credit and what interest rate you qualify for. It can now even impact the rate of your insurance premium or ability to get a good job. The following tips can help you repair your bad credit and gain some financial independence.

Fix Errors

Making unfortunate financial mistakes in the past can be bad enough. But you don’t want to be penalized for errors that you didn’t make. With close to 70 percent having errors, your credit report may be included. To eliminate any errors, you can obtain your own free credit report and analyze it for blemishes. If you find something that could be wreaking havoc with your credit score, fix it immediately. Then when it’s time to sell your house quickly and purchase something new, you’ll be ready.

Credit Repair Services

If you’ve tried your hand at repairing your credit score on your own, you may have hit some road blocks. That’s why many individuals hand this job over to an expert. Although a credit repair firm has the resources to tackle your disputes, you may not know where to turn. There are credit repair firms ready to take your money. There are also those who are legitimate. The best credit repair companies will know the regulations in place to help repair your credit. Based on user reviews, consumers will be able to make the best educated decision on who is reputable and those that are scammers.

Catch Up on Payments

If you’re having issues making a payment for your debt, you can work out a plan. Whether you consult a non-profit counseling agency or you contact the creditor directly, you may be able to negotiate better payment terms.

Timely Payments

How you pay down your debt will have a huge impact on your credit score. Going forward, plan on paying your credit card payments, auto loans, mortgage or rent on time each month. Your utility bills such as cable, gas and electric can also have an impact. If you miss a payment, contact the creditor immediately and ask if the late payment can be removed.

Establish Credit

You won’t be able to build your credit history without credit. Unfortunately, in order to achieve a good credit score, you need to get credit. To establish your own positive credit, check with your bank first. They may offer a secured credit card for individuals with a checking or savings account.

Upgrade to an Unsecured Card

Once you’ve made timely payments on your secured credit card, see if you’re able to upgrade to an unsecured card. You may want to begin by applying to a local department store. At the end of each month, make sure you can pay your bill in full.

Pay Down Debt

If you have outstanding debt, you want to pay down as much as you can. Set a budget to determine how much money you need for bills. Whatever is left over, use it to pay off your credit cards.

Avoid Credit Card Closures

Closing a credit card that you’ve had for a significant amount of time can have a negative impact on your credit score. If it’s the annual fee that you disagree with, ask the creditor to waive the fee or switch you to a card without one.

Instead of Taking Out a Payday Loan, Do This

The following post is by MPFJ staff writer, Chonce. You can read more articles by Chonce over at her personal blog, My Debt Epiphany. Enjoy! 

If you find yourself in a financial bind, the idea of taking out a payday loan may come up. Payday loans are short-term loans often with high interest that a borrower is often expected to pay back when they receive their next paycheck(s).

There are many payday loan lenders all throughout the country and you may even see some stores in your neighborhood offering these services. However, payday loans are often the worst type of loan to get and not a real solution to your financial problems which is why I always advise against them.

The Trouble With PayDay Loans

Payday loans appeal to low income earners with average or poor credit. Ultimately, they only truly benefit the lender. Lenders get to loan you money and collect interest on it while you stress out over paying them back. If you take out a payday loan, you may feel a brief sense of relief while you pay for the expenses you have, But when it’s time to pay back your loan and you have to cover interest as well, you always loose money.

Payday loans have some of the highest interest rates typically around 400% which is outrageous. If you have to borrow $300, you’d have to pay back that money along with almost $100 in interest meaning you lose money during your next pay period. If you can’t pay back the loan quickly, it can get worse which makes these loans not worth it in regards to the convenience they do provide.

To avoid having to consider a payday loan, try out these options instead.

Start Building Up Your Emergency Fund

When things are going well financially or you have a little extra money at the end of the month, put it into a savings account for a rainy day. It’s best to save and build your emergency fund consistently no matter how good or bad things are going and don’t stop until you get your account to a reasonable number that you feel comfortable with.

Payday loan lenders take advantage of borrowers by offering high interest rates because they know a payday loan is an absolute last resort and the borrowers don’t have any savings to fall back on.

Even if you can only set $25 or $50 aside each paycheck, it’s a start and will come in handy should you ever need it.

Do Some Extra Work

If you don’t have much in your savings account and an emergency or unexpected expense pops up, consider doing some extra work to earn the money you need. Ask your employer if you could pick up some overtime, ask friends and family if they need help with anything or need a babysitter, offer to help someone move, or apply for gigs online on sites like Craigslist.org, and Upwork.com.

There are so many things you can do to earn some extra money quickly. Worst case scenario, consider selling something you no longer want or need for quick cash. Odds are, you have something lying around your home that you can do without. Sell that item online, at a garage sale, or utilize your local area’s online buy, sell, and trade group.

Change Your Budget Around

When options are slim, you can always change your budget around so you can be able to round up the extra money you need. If you reach out to your utility companies, landlord/mortgage company, other lenders etc. and ask for an extension on your monthly payment until your next payday, they may work out a verbal or written agreement with you.

Shuffling around the due dates for certain expenses can really help you avoid a high-interest payday loan.

Use a Credit Card

While I don’t like advising people to use a credit card to cover extra expenses they can’t handle, credit card interest rates are much cheaper than payday loan interest rates. If you have a smaller purchase that you need to make, I’d definitely recommend making it on a credit card and paying off the balance as quickly as possible.

If you have a credit card with a temporary 0% APR, that might be an option that is well worth it too. However, if you’ve maxed out your credit card or don’t have one, I wouldn’t recommend signing up for a new credit card just to pay for expenses you truly can’t afford.

Also, if you have bad credit, this option may not apply to you and you will have to try some of the other alternatives along with preventative methods like building your emergency fund while you work on improving your credit.

Once You Start Using Payday Loans It’s Hard to Stop

Once you get started with payday loans, it’s very easy to get sucked into the debt cycle. You start by paying back your loan along with the extra interest charges. Since you paid extra money due to interest, your cash flow may be offset for the following month causing you to be short on money for savings and regular expenses. This can prompt you to take out an additional payday loan to help make ends meet for the time being. The vicious cycle can continue again and again and wastes a lot of time and money while causing you unwanted stress.

Your best option is to build up a comfortable savings buffer and avoid taking out a payday loan at all costs by utilizing the alternatives mentioned.

How about you all? Have you ever had to take out a payday loan? How are you avoiding the option of having to take one out in the future?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/foilman/5640782502/in/

How To Consistently Earn An Extra $1,000 Per Month

The following post is by MPFJ staff writer, Chonce. You can read more articles by Chonce over at her personal blog, My Debt Epiphany. Enjoy! 

How nice would it be to make an extra $1,000 this month? If you have bills piling up, debt payments that need to be taken care of, or just need a little extra money to make ends meet, an extra $1,000 probably sounds very nice.

Let me tell you a little secret. It’s pretty easy to earn $1,000 this month if you consider all your options and work hard at it. You can pick up an extra job, sell some of your clothes, have a huge garage sale, or take on an additional project this month.

However, it’s not as easy to consistently earn $1,000 each month, but that’s what you really want. Instead of receiving a one-time lump sum, you can earn up to $12,000 per year if you utilize any of these techniques to earn at least an extra $1,000 per month.

Freelance Writing

If you have any experience with writing content for print or online or if you’ve ever written for a blog before, you might want to earn extra money for freelance writing. It’s a popular side hustle and an effective way to earn $1,000 per month consistently.

To get started, you should start a blog or develop an online portfolio to showcase your work. Once you start interacting with other bloggers or leaving comments on other sites, you can ask to contribute some quality guest posts to other sites to get yourself noticed and develop some writing samples.

Then, you’ll want to start pitching potential clients including other bloggers, small business owners, or solopreneurs who you think could benefit from your content on a consistent basis. A great way to earn money as a freelance writer is to pitch sites with a blog to see if they can hire you as a regular contributor or staff writer. Pitching is the hardest step in the process but the more you do it, the better your results will be. It’s a competitive industry but there’s also more than enough work for everyone.

Start quoting clients with a starting rate of $50 per 800-1000-word post, then you can raise it as time goes on. If you charge clients $100 per post and complete 10 posts per-month or two per-week, you’ll earn at least $1,000 each month.

Virtual Assistant Work

Virtual Assistants are becoming more and more of a necessity for growing businesses. A virtual assistant (VA) is an online work-from-home personal assistant who helps businesses and individuals with a wide variety of different tasks.

Being a VA allows you to work from the comfort of your own home and set your own hours so you can earn a flexible income. VAs do everything from scheduling social media updates and creating invoices to editing content and blog posts, checking emails, creating newsletters, online research and more.

As long as you are good with computers and can type well, you should be able to market yourself as a VA and learn how to perform a wide variety of tasks. Some of the best ways to get started are to start searching for gigs on sites like Zirtual.com, start a blog or professional website to immerse yourself in a community of people who may need your help in the future, and cold pitch busy blog owners, companies, and entrepreneurs.

VAs can start off earning between $12-15 per hour but can earn up to $30-60 per hour depending on the task. Of course, the higher you charge, the less you have to work to get to $1,000 per month, but even if you start with a rate of $18 per hour and work very part-time to earn $1,000 each month.

Real Estate Photography

Like to take photos? You can turn your habit into a profitable side hustle that allows you to earn an extra four figures per month. Real estate is a bountiful market as there are always potential renters and buyers who are searching for a new residence.

Property owners know the value of presentation and understand that good photos means more quality leads. If you have a quality camera that takes professional photos, start a portfolio of your work by uploading photos to sites like Flickr or even starting your own professional website to advertise your services.

Print out business cards and start sending them to realtors in your area and going to local networking events to meet other potential clients in the industry. You can even take on one or two pro bono gigs in exchange for a testimonial or referral. Freelance photography is already a pretty popular gig and with real estate images, you can easily charge anywhere from $100-300 per shoot so if you did just a handful each month you can earn $1,000 in no time.

Website Development

With more than 2 billion people on the internet, it’s no wonder why almost everyone wants a website these days. While everyone wants a visually appealing and professional website, they have no idea about what all goes into the process or how to create a stunning site.

If you have an experience with programming and coding, you can cash in on your skills by developing websites for clients. You can start marketing your services by using the same techniques I mentioned for the previous gigs.
On the bright side, if you’re interested in this type of work but don’t have much experience, you can always take a programming class and learn everything you need to know. You can make that investment back pretty quickly because experienced programmers who work full-time can earn up to $150k per year. If you just do it in your spare time and charge clients anywhere from $300-800 for a fully functional website as a starting rate, you can easily earn at least $1,000 after just doing two or three projects.

Teaching Students a Second Language

You don’t have to speak any foreign languages fluently to earn money from this side hustle. You can teach students English online from the comfort of your own home.

If you have a knack for English or a teaching background, this would be an ideal opportunity. Some great places to start looking for online teaching jobs are TurtorABC.com and Italki.com. You’ll want to charge a reasonable rate of around $30 per hour of language tutoring. If you teach online for at least 8.5 hours each week, you’ll earn $1020 per month.

Summary

As you can see, the list can go on and on. In order to earn $1,000 per month consistently, you must determine what your skills are and what you like to do. Then, properly market yourself to potential clients and network. You have to present yourself as a professional and showcase your experience in order to lock in the rates I discussed earlier. It may be a challenge in the beginning but it’s not impossible since many other people are doing it.

As an added motivation, just think of what you could do with an extra $1k each month when it comes to paying off your debt, making progress on your investments, and increasing the savings in your bank account.

How about you all? Do you have a side gig that brings in consistent income each month?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/76657755@N04/7027595009/in/

8 Unconventional Things You Could Do to Retire Early

The following post is by MPFJ staff writer, Chonce. You can read more articles by Chonce over at her personal blog, My Debt Epiphany. Enjoy! 

Early retirement is not just a craze. It’s a lifestyle and state of being that attracts many people who are either burnt out from working or just want to enjoy life to the fullest while considering work as an option and not a mandatory activity.

In order to retire early, it’s no secret that you need to start investing heavily early on. Compound interest and diversified assets will be your keys to achieving financial independence so you can retire way earlier than at age 65.

I always find it fascinating to read true stories about how certain people amassed enough wealth to be able to enjoy early retirement. At first, it sounded like an unrealistic fantasy and something that was out of my reach. But since I’m still in my 20s and I’ve learned how to adopt a frugal lifestyle and sacrifice the things I don’t truly want or need, I see early retirement being a real possibility for me and anyone else who wants to commit to the end goal.

As a result, here are 8 unconventional things you can do to help yourself retire early.

1. Save More than Half of Your Income

Saving 10%-20% is what most people will consider an acceptable savings rate if you want to live an average comfortable life. But since early retirement isn’t everyone’s average goal, you’ll need to take your savings rate to the extreme and in most cases save well over 50% of your income.

Of course the more you earn, the more significant your savings will be especially if you have a dual income household. A large part of your savings strategy should include investing not only in retirement accounts but in stocks and bonds so you can have a diversified portfolio.

In my opinion, your liquid savings should be kept at minimum and in a high-yield savings account. Depending on how stable your situation is, it would be best to carry anywhere from 6 months to 1 year’s worth of living expenses in your emergency fund.

2. Spend Absolutely Nothing on Clothes and Entertainment

In order to save 50%+ of your income, you’ll need to cut a few expenses temporarily or even permanently to free up more of your income to dedicate to your cause. Clothes and entertainment are the first spending categories I think of when considering which things to cut.

You probably have more clothes than you think when you go through your closet and consider everything you have. I was able to stop purchasing clothes for 8 months last year and just wear what I have. I saved so much during the time because I used to shop a lot.

With entertainment, consider it a fun challenge to see how long you can go without spending money on enjoyable outings and meetups with friends. I say ‘fun’ because you should still go out and have a social life. You’ll just need to search for free events, host some get togethers at your place, and get creative.

Take the savings you generate from having a $0 entertainment and clothing budget and invest it.

3. Sell Your Car and Invest the Money you Save Without It

Owning a car can cost you tens of thousands of dollars throughout your lifetime thanks to expenses like the price of the car, interest if you finance, repairs and maintenance, and more.

If you can get by in your neighborhood by walking, riding a bike, or using public transportation, you could save a ton of money that could be put toward your retirement goals. You can even use Uber to help fill in the gaps and score free rides by referring others to download the app and sign up.

4. Work a Side Hustle for Years

Having a low income can very well prevent you from being able to retire early. To combat this, consider asking for a raise at your current job, applying for a new position, or working a profitable side hustle. There are so many side hustle options out there and it basically just depends on what your skills are and what you like to do.

You can write, become a virtual assistant, do graphic design, sell items online, cater, give lessons, tutor, babysit and so on. Side hustles are often short-term since it’s challenging to managing a full-time job and a gig on the side. However, if you can manage your time properly and take care of yourself and your needs first, you may want to consider side hustling long-term so you can rack up a ton of extra cash.

5. Become a Minimalist

Becoming a minimalist is a great way to clear your mind and free yourself and your home from material possessions so you can become more appreciative of what you do have. It’s also a great way to save money and avoid lifestyle inflation.

If you keep buying more and more stuff, you’ll never retire early. With minimalism, you can sell all of the belongings you don’t want or need and enjoy a clutter-free lifestyle while focusing on what you do value in life.

6. Only Travel Domestically

Traveling is a must for some people, but it’s expensive. If you don’t want to wait to travel but still want to retire early, consider taking only budget domestic trips and taking advantage of travel hacks for the time being.

Only taking one small trip within the country each year is not a bad tradeoff if it still allows you to reach your goals. Then, you can save international travel for when you retire early.

7. Pay Yourself for Coffee Each Day

Whether you purchase coffee each morning or not, this is a great strategy to implement to help you set more money aside for the future. Since the average cup of coffee costs $4 or so, make your own at home, but still pay yourself each day in the amount the coffee costs at a cafe.

If you give yourself $4 each day, that’s $28 per week, $112 per month, or $1344 per year extra that you can save and invest.

8. Don’t Buy a House

Buying a house was the American Dream decades ago and still is today for some people. However, more and more adults are putting off this huge financial step in their lives in order to pursue other passions.

Depending on where you live, renting may not be considered as throwing away money if market rates are low. Plus, the average person spends hundreds of thousands of dollars financing their home and paying it off. Imagine if you could be enjoying that money in retirement instead.

Of course you’d need to be okay with denying the option of homeownership.
But how much is your goal of retiring early worth?

When planning for early retirement, it’s all about maximizing your investment contributions and deciding what you will give up now in order to enjoy financial freedom later.

How about you all? Have you ever thought about retiring early? What unconventional things could you do to make that a reality?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/jakerust/17160423251/in/

10 Cheap Summer Activities for Kids

The following post is by MPFJ staff writer, Laurie Blank.  Laurie is a wife, mother to 4 and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom and to a simpler, more peaceful life.

Summer is almost here, which means the kids will be out of school and looking for something to do. How can parents make sure to keep kids entertained without breaking the bank this summer?

I know that for us, as we work to pay off our debt we also work to keep entertainment expenses at bay. We don’t want the kids locked in the house all summer in the name of saving money, so we work to find cheap summer activities that will entertain the kids while still keeping our budget in check.

Here are some of the fun activities we’ll be having our kids do this summer.

Organized Outdoor Play

Once the kids reach age 5 or so, they love gathering with friends and playing organized games. Soccer, baseball, airsoft, sword tag; there’s tons of options for play when you gather up some friends and meet at a local park or at the house of someone who has a large yard to play in.

Fishing

There’s something about fishing that is simple yet fun. Dig up a few worms, head to a local fishing lake and toss in your line for hours of entertainment. This is an activity that the whole family can enjoy, and if you do it right you can come home with dinner.

Hiking & Biking

Our family spends lots of time at local state and county parks on hikes and bikes. Depending on which parks/paths you choose, you can go for an easy trek or a rugged one.  A Burley for your bike or a baby carrier or jogging stroller for your hike allows you to bring little ones along as well.

Picnics

A picnic is a super simple way to do something different for very little cost. You have to eat lunch anyway; why not enjoy it in the great outdoors on a soft blanket while listening to the birds sing? Don’t want to go anywhere? Simply picnic in the summer sun of your back yard.

Free Outdoor Summer Concerts

Many cities and towns boast free summer concerts via local musicians or music houses. Check out your state’s tourist website or specific city websites for information on times and dates. Be sure to arrive early so you can get a good spot for enjoying the show.

Game Nights/Movie Nights

Spoons, anyone? There are tons of board and other games that can be played with kids of any age. If you’re not into board games, pop some popcorn (the old fashioned air poppers really do make it better), turn down the lights and enjoy a movie theater atmosphere right in your living room.

Bonus: Many local theaters offer free movies for kids on summer mornings. Check out your local theaters for more information.

Bonfire Nights

It doesn’t cost much to install a fire pit in your back yard, and the one-time expense can account for years of enjoyment. This easy-to-build and inexpensive fire pit makes a great gathering place for families. Just add some bonfire-friendly foods such as s’mores and you’re set.

Beach Days

A bit of gas in the car, some sunscreen, some snacks and you’re all set for an inexpensive but fun day at a local beach. Be sure to bring some drinking water for staying hydrated and some friends for extra fun.

Day Trips

Check your state’s tourist site for some nearby towns or cities that have fun things to do, and plan a day trip with your kids. Smaller towns often have goodies such as candy shops or historical sites that make for an educational and fun day for kids and adults alike.

Summer Festivals

In our family, we just can’t get enough of summer festivals. Nearly all small towns and communities hold a summer festival of some sort. In Minnesota it’s Kolacky Days in Montgomery, Taco Daze in Scandia, and the Strawberry Fest in Cottage Grove, just to name a few.

Although these types of events can get expensive if you don’t make a plan, we keep costs low by bringing a picnic lunch and setting limits on costs for rides and/or festival foods. Many town festivals don’t charge an entry fee and have free entertaining attractions such as bands, car shows and variety shows.

Summer can be an expensive time for keeping kids entertained, but it doesn’t have to be. With a little research and planning, you can load up on summer fun for your kids without draining your pocketbook.

How about you all? What is your favorite cheap activity for your kids?

***Photo courtesy of https://pixabay.com/static/uploads/photo/2016/01/16/02/49/kid-1142785_960_720.jpg

Are Our Children Causing Our Personal Financial Crises?

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

My son competed in both the preliminary and then the regional qualifying National History Bee competitions.  The preliminary exam was taken for free at home, so no cost to us.  The regional Bee was only 1.5 hours from our house, so, besides gas, it cost us next to nothing.

He did well in both exams and has now qualified for the National History Bee in June which is almost 2,000 miles from our house.  While he was very excited and we were excited for him, we cautioned him that we might not be able to afford the trip.  After all, between the fee to compete, the airfare for two, the hotel for four nights, taxis, and meals, the trip would easily cost us $1,500.  That is simply not money we can come up with quickly and easily.

Years ago, when I was in high school studying Spanish, I would have loved to have joined the Spanish Club on their trip to Spain.  For years I had wanted to travel to Spain, but I knew that was not a trip our family could afford.  I didn’t even ask because I knew it was definitely not in the budget.

So, you can imagine my surprise when my mom heard about my son’s performance in the History Bee and immediately told everyone we knew that he’d be competing even though we hadn’t said yes yet.

Kids Today Get Much More Than We Did As Kids

This is not the first time that my mom has surprised me this way.  When I was young, my grandparents always sent me a card for my birthday and one for Christmas.  My birthday card always contained a crisp $2 bill, and my Christmas card had a $1 bill.  I saved all of those bills because they came from my grandparents, and honestly, even back then there wasn’t a lot I could buy with them.  Even now, years after both of my grandparents passed away, I still have those bills.

So, when I had my own kids, I expected my mom to behave as my grandparents did, but she didn’t.  Instead, my kids get $20 for birthdays from her and many presents from her for Christmas.  In fact, she was going so overboard at Christmas that we had to have a heart-to-heart and ask her not to give them so much.

We Spend on Our Kids at Our Own Financial Detriment

But it’s not just my mom.  Kids today get a lot today, and not just from grandparents.  I, too, have been guilty of giving my kids too much.

When my son was three, he started attending an immersion Montessori language academy.  It was expensive, but it was only a tad more expensive than day care in our area would have been.  I was working full-time and my husband was a full-time graduate student, so child care was essential.

But when my son was five, I took maternity leave for a year to care for our newborn child.  Without my income, we couldn’t afford to leave him in that pricey school, but we didn’t want to uproot him.  We went in debt for a kindergartner.  Even now, seven years later, I shake my head at our stupidity.

But we’re not the only parents making these irrational decisions.  Neal Gabler recently wrote a controversial article for The Atlantic in which he confessed dumb money decisions over the years that have forced him and his wife into a financial hole as they near retirement. He states that he and his wife “manage to scrape by, though child care and then private schools crimped our finances.  No, we didn’t have to send our girls to private schools.  We could have sent them to public school in our neighborhood, except that it wasn’t very good, and we resolved to sacrifice our own comforts to give our daughters theirs.  Some economists attribute the need for credit and the drive to spend with ‘keeping up with the Joneses’ syndrome’, which is so prevalent in America.  I never wanted to keep up with the Joneses.  But, like many Americans, I wanted my children to keep up with the Joneses’ children because I knew how easily my girls could be marginalized in a society where nearly all the rewards go to a small, well-educated elite.”

Like Gabler, we lived in an area with a poor public education system.  After the Montessori school, we sent our son to a parochial school.  We did get financial aid, but to be honest, we couldn’t afford any amount.  When we got ready to put our two daughters in the same school, we realized just how insane our tuition bill would be, even after financial aid.  Before our daughters could even go, we pulled our son out of school and started homeschooling, which has been a great financial and family decision.

Since then, we’ve been cautious with the way that we spend money, especially on our kids.

Society’s Expectations Have Changed

But here’s the thing—society’s expectations have changed.  When I was in school and couldn’t travel to Spain with the Spanish Club, it wasn’t that big of a deal because many kids’ families couldn’t afford the trip.  The ones who got to go were usually the kids from rich families.

But now, whether you’re a family with money or not, you’re expected to fork over the cash for every opportunity your child might have.  I can’t tell you the amount of pressure we’ve been under to send our son to the National History Bee.  In the end, we did decide to send him, but we’re doing extensive fund raising so we don’t have to go in debt for the event.

People just expect that you’ll spend money on your kids for every opportunity that they get, and if you don’t, the implication is that you don’t care and aren’t willing to sacrifice at best, or that you’re a bad parent at worst.

These Assumptions Are Killing Our Finances

Unless you’re making a very healthy income, giving our kids all of these experiences is not realistic.  But the better question is, should we still try?

A friend, Kathy, recently sent her second college-aged child on a study abroad to Italy.  While there, Kathy’s daughter had the chance to travel on weekends to many other countries and see much of Europe.  Kathy’s daughter did get some scholarship money, but Kathy and her husband are footing most of the bill.

Kathy has wanted to go to Europe for years, but she hasn’t been able to because she’s been paying for her children to go.  She doesn’t expect to be able to go for some time because while she’s helping her children go to college and study abroad, Kathy and her husband have been neglecting their retirement account.  They’ll have some serious catching up to do when their daughter graduates next year.

Kathy’s situation is not unique, just like Neil Gabler’s isn’t.  Over and over, in family after family, children are reaping all of the rewards while their parents struggle financially.  As Rhonda Stephens of The Huffington Post writes, “At some point in the last 25 years, the tide shifted and the parents started getting the marginal cars and cheap clothes while the kids live like rock stars.”

How about you all? Have you noticed this trend?  Should this be happening, or are we causing harm to both ourselves and our kids who are getting so many perks without really working for them?