Money Wellness Wednesday - Secret Stash

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Secret Stash

Well, it's not really a secret. But you may want to pretend it is. It's your Emergency Fund. Stash that money away and don't even look at it as available money to spend.

What is an emergency fund and how much should I set a side? Start with the beginner amount. This is $1,000. If you have debt you are paying off, except your mortgage, get this beginner amount of $1,000 set aside before making additional debt payoff payments. This $1,000 is JUST for emergencies such as a water heater that goes out or an unexpected car repair or medical deductible. This is definitely not for the new pair of shoe,s that just went on sale at a price you "cannot" pass up but need some of this money or you can't buy it without borrowing, emergency.

If you are debt-free, except your mortgage, your emergency fund now must jump to the next level. Before paying down your mortgage with extra principle amounts, beef up that emergency fund. How much should you increase your emergency fund by? The best way to calculate how much you need is to first determine how much money you need to live on each month. Then multiple this amount by a minimum of 3 months, but 6 months is best. 

This beefed up emergency fund is for unexpected loss of income, such as a lay off from work or a medical issue that would prevent you from working. Then you have at least 3 months of emergency funds available until you can regain that income. 

And don't forget, if you use any of your emergency funds, you need to replenish them soon as possible.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Freedom Fridays - Easy Payment

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Easy Payment

Have you ever been at the store or online and you linger looking at something that might be a big ticket item? You don't need it but you wouldn't mind owning it. So you stop and inspect it a little closer. You picture it where you would use it. You are not seriously thinking about actually buying it, but you are definitely interested.

The next thing you know, there is a salesman right beside you telling you about an "easy payment plan" or a pop up on the screen telling you how easy it will be to finance and with super easy payments.

Don't fall for it! It's a trap to get you into debt. Debt will keep you for reaching your goals. Even non-financial goals. You want to get out of debt as soon as possible, and not take more on. 

Begin to change your habits from asking "how much per month" to "how much". Then asking yourself if you need it. If not, and you are still in debt, delay that purchase. Walk away. But if you really want it, save up for it to pay for it outright. Say "NO" to more debt.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money & Marriage Mondays - Cheap Date?

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Cheap Date?

When it comes to paying off debt faster, saving for an emergency fund, saving for a down payment on a house or saving for retirement, there are some changes in how we spend money that can help us to stay on track. 

One idea is to change where you go on your date nights with your spouse in order to pay less or nothing at all when you go out.  Here are some ideas for a "cheap date":

• Go out for breakfast instead of dinner. It's often a lot less than dinner.
• Watch the sunrise or the sunset. Bring some snacks and beverage to enjoy while taking in the view. (Make sure you hold hands or cuddle on a blanket.) 
• If you love books, browse at a bookstore. Maybe pick up a coffee while you are there.
• Volunteer together. Check your church, the city website, social media, or meet ups to find something you can serve together in. This will help others and likely bring you closer together.
• Take a hike (or a walk or a bike ride) together. Possibly bring a picnic and plan on stopping somewhere along the way. Make a day of it.
• In the summer, sometimes you can find a free outdoor movie screening. Bring your own popcorn!
• Cook dinner together instead of going out. You can save so much money and make sure you take time to kiss the "cook".

Changing money habits takes work and inspiration. Try some of these ideas and let us know some of your ideas.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Freedom Fridays - Payoff Student Loans Faster

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Payoff Student Loans Faster

Here is a great student loan calculator from Dave Ramsey's website and some great tips on how to use this calculator and to inspire you to get this debt paid off faster so you don't live with this debt for 20+ years.

https://www.ramseysolutions.com/debt/student-loan-payoff-calculator?fbclid=IwAR0pw2px87ktaB31s0RF4Xu3RIb9HAle3AxkL0j32Wm3FCjHWsSBM7bkmuw 

This calculator shows you how quickly you can pay off your student loans. By calculating the impact of extra payments, you can learn how to save money on the total amount of interest you'll pay over time.

Want to Pay Off Your Student Loans Early?

Use the Extra Payments functionality to find out how to shorten your loan term and save money on interest by paying extra toward your loan's principal each month.

Understanding Your Student Loan Payment

Your student loan payment is defined as your principal and interest payment. When you pay extra on your principal balance, you reduce the amount of your loan and save money on interest.

Making Additional Student Loan Payments

Get creative and find more ways to make additional payments on your student loans. Making extra payments on the principal balance will help you pay off your student loan debt faster and save on interest. Use our free budgeting tool, EveryDollar, to see how extra payments fit into your budget.

Calculate Different Scenarios

See how early you’ll pay off your student loans and how much interest you’ll save. Let's say you have $35,000 in student loan debt with monthly payments of $360 at 4.5% interest on a 10-year repayment plan. By making an additional $325 payment toward the principal every month, you'll save over $4,688 in interest and pay off your student loans 5.4 years sooner!

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.

Money Wellness Wednesday - It's Time To Break Up

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It's Time To Break Up

Want more control over your money? It's time to break up with these 5 bad habits.

1. Spending without a Plan
2. Paying for convenience
3. Spending without keeping ctrack
4. Making impulse purchases
5. Spending to feel better

These bad habits will cause you to overspend on everything. Over time, this overspending can really add up. 

And what does that mean? You will have less money to pay off your debt, to build your emergency fund, to save for a house and for retirement and to give generously.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form.