@cara-reynolds-sum180-community-manager
active 6 years agoForum Replies Created
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Hi Antoinette! I think some of Carla Dearing’s advice on lending money to family and friends might also apply to co-signing on a loan. Carla wrote about how important it is to be able to respond with a loving no when we can’t afford to do what’s being asked of us, and also to remember: there are other ways of helping besides giving financial support (eg giving advice and encouragement).
Carla’s full blog post is here:
Lending money to family or friends: Should you do it, and if so, how?
Hi Josh. This is a big question at this time of year, for sure. You put your finger on what makes this a headache for me, personally – I’m not necessarily the best at crunching the numbers across different discount scenarios to spot the best deal/timing.
So, my approach is to bypass the math component and ask myself: “Is this sale item something that I need to buy ANYWAY?”
– If I legitimately need the item AND it’s on sale, that’s a green light
– If I need the item but it’s not on sale (yet), I MAY delay till I find a better price
– If it’s on sale and I only casually wish I had that item (“would be nice…”), that’s a no goIt’s not always easy to abide by this rule but it helps keep me out of the “but it’s on sale” trap. I think, over time, I end up saving money by buying fewer things that I don’t really need.
Kayla, I wish I could “like” your post 50x because I would! The constant deluge of promotional emails is like browsing at foodpr0n all day when you’re TRYING to be on a diet. I have been deleting them as soon as I can in batches, but unsubscribing is better yet. Kelby – thanks for the head’s up, will check out unroll.me, too.
Wow, what I great idea. AND a big challenge I think! I would love to try this but the biggest obstacle for me would be getting everyone in the household on the same page. Even when I think I’ve prepped beforehand, at the last minute someone will always REALLY REALLY need to pick up some Italian takeout, or run out of shampoo. Maybe tougher enforcement is what I need to make it work. Aha: being prepared to say NO is key! 🙂
Hi Josh! Carla Dearing has written a couple of posts on investing. I think she makes a few points that are relevant to your thread:
Investing 101: 6 simple steps to kickstart your investment portfolio
Investing 101: 6 simple steps to kickstart your investment portfolio
The main takeaway, I think, is that high-risk investments like cryptocurrencies are intriguing, but they are only appropriate after 90% of one’s investment portfolio is in pretty solid shape.
I hope this helps!
Hi Kelby,
This is a great question! I believe the answer is, “It depends on your debt.”
– If your debt is credit card debt (usually a high interest rate, therefore very expensive over time) then you should pay off your debt first, 100% – THEN tackle saving for retirement.
– If your debt is “smart” debt (things like a car loan or a home mortgage, which either help you go to work or build equity) then the ratio is a little different. In this case, Sum180 recommends putting 2/3 of your resources towards paying off your debt, and 1/3 towards saving for retirement.
Note: If your debt is a student loan, it only qualifies as “smart” debt if the interest rate is lower than 8%.I hope this helps!
An annual State of the Financial Union – what a great idea, Kayla! Check out these blog posts from Carla Dearing. I think they might be good fodder for your “financial summit” with your hubby:
6 powerful money habits to adopt before the year is over: Carla suggests setting an overall savings goal for the year, then adopting specific habits to make the savings happen.
Financial resolutions and how to stick to them: It’s one thing to make financial resolutions…and another thing entirely to keep at ’em through the year. (Hint: If you need help, ask for it!)
Hitting the reset button financially: 3 steps to start off on the right foot in the new year: My favorite tip from this list – challenge yourself, what aspects of your life could you downsize?
Good luck!
This is a tough one. I wonder whether you can identify two or three regular expenses that you can eliminate, and then put the resulting savings into your retirement fund directly? I know, it’s easier said than done…
For me the first sacrifice would probably my cell phone bill. I have a pretty indulgent plan and I could save a hundred dollars a month, or more, if I slashed it to the bare minimum. $1200 a year, that’s not bad.
Hi Josh! I’ve been in your position, and I admit I’m usually too embarrassed to remind my friends to repay me. This is NOT a sustainable situation, on my budget!
Carla Dearing wrote a post about our predicament, here:
How to split the bill with grace: Cost-sharing etiquette for casual, professional, and romantic situationsCarla offers great tips overall but my favorite is “Pay up on the spot.” Taking care of business immediately eliminates the awkwardness (for me) of having to ask for repayment days or even weeks later!
Another great topic! A few thoughts come to mind:
1. Lisa, Kayla – have you guys looked at websites that connect creative freelancers with clients? Fiverr and 99Designs are a popular ones, but I know there are others. You sign up with the site to be a service provider; clients come to the website and choose from the provider list who they want to do their project. The idea is to take the marketing/networking/billing part of the job off your plate, so you can focus on just doing the work. It gets you in front of many more potential clients than you might meet on your own.
2. When it comes to saving more, SUM180 has found that having a specific savings goal in mind can really help. It’s a very motivating first step – when you know how much you need to save, it can really kickstart your thinking and spark creative ideas about how to get there. I think it also helps focus your thinking.
One example – side gigs are great, but what about cost-sharing, too? Under the “cost sharing” umbrella alone, there may be dozens of ways to “share” the cost of expenses we currently cover alone. One example: subscriptions and memberships sometimes allow family sharing plans. If you split the cost with someone else who had individual subscriptions, your savings can add up. I can see this as a good way to build $500 in savings or so, over a few months.
If my savings goal were bigger – say $10,000 or more – I’d probably think seriously about a housemate. Cutting my rent in half would move me towards my goal faster than smaller cost cutting measures would, for sure!
Just some thoughts. 🙂
Great conversation about best ways to tackle debt! I’d like to chime in just to mention SUM180’s approach, which is to tackle the highest-interest debt first, but also to balance this by building a savings cushion simultaneously. The two actions work together to strengthen your financial picture.
Yikes, dating can be expensive for sure! Instead of dinner, which always means higher prices on everything, maybe meet for a specific fabulous dessert and coffee? Or, like Stacey suggested, breakfast; I am a big fan of brunch dates. Or “let’s check out the X,Y, or Z” dates (farmer’s market, street art festival, classic car show, etc).
The challenge, I think, is to defuse the pressure most of us feel to impress a date via spending… (No one wants to appear “cheap,” even when we’re on a budget…) But if we can find things to do that are interesting and fun in themselves (besides being affordable) then maybe we can better focus on the moment, and enjoying each other’s company.
Hi Kayla! What a great question – I’m super interested to hear what others have to say on this topic. For me, it’s pretty clear that carrying cash makes it easier for me to spend. So I try to avoid carrying cash because for me, mentally, as soon as I withdraw cash from the ATM, the money is already “spent.” I can’t easily track where the money goes – so it gets frittered away on little things. In contrast, when I use my credit card, there’s a paper trail that – for me – imposes accountability. I have to answer to myself for everything I spent whenever I pay off my credit card at the end of the month. That erects a bit of a barrier against frittering and splurging. 🙂
By the way, I have a travel rewards credit card too, and I also use it to pay for everything. It’s worked for me for years – the rewards are nice. I got a Mac laptop and an iPad about a year ago. (This *may* be influencing my preference for credit vs cash…)
Wow, I understand. That’s a bold resolution and probably a tough one to stick to, if (like me) you’re prone to feeling anxious about money even in the best of times. The best things about being self-employed, in my opinion, are having control over your own schedule and the freedom to do diverse projects that are interesting and rewarding. But the unpredictability of paying work sure can be a big downside. I hope you find a steady client/project or to take some of the pressure off, and enable you to start building up that rainy day fund. Good luck!
I haven’t tried this myself as a provider, but I have recently been using apps like Thumbtack and Takl as a client. The apps connect users with providers of household services – everything from simple repairs to furniture assembly to yard work. From a provider perspective, it eases the burden of marketing yourself, bidding on projects, and scheduling. Once you’ve connected with clients and established a professional relationship, you don’t necessarily have to use the app(s) any more – it’s essentially a networking tool. I think this would be convenient for someone wanting to make a extra money for the holidays – you bid only on the projects you choose, so you are in total control of your own schedule.
Of the two apps, Thumbtack seems to offer more “professional” services (eg electrical work) than Takl (house sitting) but there’s plenty of overlap between the two.
Takl
https://app.takl.com/register
Thumbtack
https://www.thumbtack.com/pro
