Though some people say that “money can’t buy happiness,” having lots of money can mean a sense of stability in our daily lives.

It’s obvious that money or having that state of financial stability is an essential contributor to our happiness.

When we handle money properly and spend it wisely, then it gives us an appropriate amount of importance in our lives and makes us more fulfilled and content.

In the quest to becoming stable and financially able in the future, we often set goals. 

We set different goals: get a house for our family, retire at a young age, prepare a college fund for your kids and live on day-to-day basis debt-free.

These goals allow us to live our daily lives completely focused on what is important for us.

But some fear that the goals we set for ourselves might change entirely as we live our lives that we entirely quit on making goals at all. 

But making and changing goals is not really that problematic at all. You just have to gear your goals towards a future where you are happy and financially unburdened. 

In fact, some millenials actually think that money can be equated to a more fulfilled life.

According to Forbes.com, a new Wells Fargo study back in 2017 suggests that millenials or those under ages 20 to 36 link satisfaction and happiness with stability and financial responsibility.

About a third of the study’s participants are satisfied with their financial status and 62% felt happy overall, with 65% using the word “meaningful” to describe their lives. 

At this day and age, money and happiness can go together. 

How to find happiness in setting financial goals?

Here are some tips to achieve happiness and financial success:

Living in the present? How do you prepare for the future?

When it comes to setting financial goals, it is always important to go back to the present moment and setting up the mental framework necessary. At this moment, you question your personal financial status at present. Questions like:

• Do you have job that provides a stable income?
• If you don’t have a job, how do you plan to earn money?
• Do I own properties, or does my property own me?
• What is important: money or career?”

Answering those questions will allow you to start the process on how you plan to prepare your future and gaining peace with yourself. Sometimes, attaining a reason why we need to do this can help in setting your goals. Once you attain your reason, this will act as a compass for everything that you do. What is important is that the reason that you want to attained not only benefits you, but also your loved ones as well.

2. Needs, in. Wants, Out

De-cluttering what you need and want is often a big challenge for those aiming to go financially straight. We often periodically go to our possessions to get rid of stuff that we don’t need. By decluttering and deciding on what is needed or wanted, you are able to make a responsible choice on what to acquire in the future. For those who practice this, it also allows them to develop the attitude of not being needlessly tempted to buy stuff that are considered popular in favor on what is needed. Its a hard process, especially in letting go of things, but it is rewarding at the long run. Also, de-cluttering allows you to not only dispose things that you don’t need, but earn a little buck along the way as well.

3. Set short term goals.

Like what’s been said earlier, goals are good to plan but difficult to follow, especially on a long run. But goals are not all that bad. Rather than focus on a long-term goal, focus on short-term but attainable goals that will allow you to focus more on the process and see the rewards immediately. Short-term goals can be creating a monthly budget, paying a small debt, avoiding impulse purchases or swearing off credit card purchasing are simple but attainable goals that will allow you develop your end goal to attaining financial freedom in the future. Never make general goals as they end up unattainable. Rather than say “I want to get out of debt,” just say “I want to pay off $40,000 worth of debt within a year.” Its specific, measurable, realistic and importantly, attainable.

4. Conducting a “Status Check” on your present finances. 

If you feel you have been spending your monthly salary on absurd things and lifestyles, then its time for status check. A “Status Check” is necessary to determine what you need to prioritize on in preparation for your future. Do you need to cut yourself from constant partying with friends during the weekends? Do you need to cut off excessive spending due to constant shopping? Do you continue to eat out and putting risk on your wallet and your health as well? These questions should remind you what there is a need for a “Status Check” on yourself. When you set a financial goal, its important to realize that in order to achieve it, it will require some sacrifices on your part. Taking on a “Status Check” allows you cut off bad habits and developing good ones when it comes to your financial status.

5. Being frugal has its benefits.

Frugality could have lasting good effects on you, especially on how you handle your finances. While being cheap means it was painful to spend money, whether for needs or wants, frugality allows you still spend but without the pain.

Rather than taking your loved one out for a date in a very expensive restaurant, why not prepare a sumptuous home-cooked meals? It saves you money and makes the experience more personal. Sometimes, there is nothing wrong with being dependent on budget coupons if you know how to make use of them. If it allows you to enjoy the regular things you want without spending too much, then you’re in the right direction.

6. Start implementing those goals and reflect on them if they’ve been attained or not.

Remember the old saying “The journey of a thousand miles begins with a single step?”

Even with all the goals that you have set, it will never be attained if you don’t start implementing them.
If you have set a time-frame on what to do, you have no choice but to make them happen. Stop procrastinating and starting taking action. Once you start implementing them, monitor your progress through constant reminders by Google Calendar or post-it-notes in your calendar. If you are not constantly reminded of your goals, then it makes it harder to be attainable.

Once you’ve set your goals, then start reflecting on them. How did you get to where you are now? What steps did you take? What obstacles were preventing you from achieving your goals? How did you manage to get rid of those obstacles? Whether you attained those goals or not, reflection is an important step to knowing what mistakes must be avoided. Through knowing the mistakes and the successes you’ve made in attaining that goal, then you can apply good practices and ignore bad ones. 

7. Learn from your successes and mistakes.

Committing to be more financial stable is not a walk in the park. In everything we do, we all have our hits and misses. The important thing is that whatever is thrown at us, we have to learn to embrace it. Success often goes hand in hand with failure. There will always be those moments you get to miss paying out on your bills because you made the mistake of spending money on unnecessary things. If you want to be financially stable, ridding these mistakes from your system are necessary. Mistakes like borrowing money to spend on fancy things or not saving for emergencies shouldn’t be repeated. Don’t treat your goals as simple lists of what to do but as stepping stones on learning how to achieve financial stability in the future. 

Preaching is easier but practicing what you preach is harder. That’s why its important to practice on how to simply attain your goals. Constant practice makes perfect and it doesn’t take a genius to realize that you’ve already done what you set out to do. 

Finally, discipline is a key factor. Those goals you set for yourself will never be realized if you don’t have the willpower to focus on them. Always think of the end goal and just focus on running there. If you want to target on saving a huge amount of cash for a year, it can be attainable as long as you discipline yourself and always have your eye on your specific goal. 

Also, money is an important factor in achieving your goals. If you don’t have money, you don’t get to achieve what you want with your life. So focus on earning your money, saving them and making them grow, and eventually, someday, you can be a millionaire and billionaire in your own right. 

It is never too early to start preparing for long-term care. In fact, the best time to do so is when you are still at your prime: when you are healthy and earning. It is a myth that not all people need long-term care — everyone needs it. At some point in our lives, especially when we are older, we would need medical and custodial assistance. This is actually where the myth comes. Most people think that long-term care only refers to the medical needs of a person, particularly a retiree. In fact, long-term care refers to everyday activities. When people are older, they would need assistance in bathing, dressing, eating, walking and even shopping for one’s daily needs.

According to Forbes, in 2012, nine million Americans needed assistance in their daily living activities. The number is expected to balloon to 12 million by 2020. Close to 70% of adults will need some kind of living assistance by the time they turn 65. You cannot think that perhaps you will be part of the 30% because what if you are not the exception? Also, the number refers to people in their mid-60s. The percentage could increase as the person also becomes older.

What are the options in paying for long term care?

Medicaid

           Medicaid covers the following:

•        Care in long-term care hospital
•        Skilled nursing care in a nursing facility
•        Eligible home health services
•        Hospice and respite care

But because this is government, the requirements are strict. You have to be living in poverty, based on the government’s qualifications, or below that. The requirements also vary in every state. So while it is free, not everyone can avail himself of it. Medicare coverage is also only for over a short period of time. It doesn’t cover chronic illness.

Traditional long-term care

This is a kind of insurance that covers assisted-living needs that are not covered under any health insurance. You can customize the insurance to fit your needs. However, a major downside is that if you terminate the policy, you can get back any of the premiums you have already paid.

It has been suggested that the best time to start shopping for alternative long-term care options is when you turn 50. But there is nothing wrong with starting early. The future starts now! According to the 2016 Gentworth Cost of Care Survey, the average rate for long-term care in an assisted living facility is close to $45,000 every year; over $82,000 for nursing homes and over $92,000 for private rooms.

Legacy Optimizer Strategy

This is basically just a life insurance policy with a long-term care “rider” as in an add-on. The premium is over $300 but less than that of the traditional long-term insurance. But the advantage of this is that it has a death benefit because of the life insurance coverage. Payment also includes a monthly option so that you don’t have to be burden with paying for it in thousands on a one-shot basis.

Annuities

You have to be careful with annuities, though, because a lot of insurance agents will sell you this without explaining why. Basically, an annuity is a contract between you and your insurer where you pay quite a large sum of money regularly so that by the time you retire, you get to enjoy a steady stream of cash. But if you already have a retirement plan, then you don’t really need this. However, if it is attached to assisted-living needs, then that is worth investing in.

The fixed-indexed annuity with a single premium is worth discussing with your insurance agent. If you can put a lump-sum amount to the insurance at the age of 55, you will be eligible to a monthly allowance of over $2,000 every month. If it goes to long-term care, there is what they call a “doubler benefit” where your $2,000 will be doubled every month. But the doubler doesn’t come into effect until two years after the income starts coming in.

The hybrid

Options for long-term care plans are cropping up because of the many reservations against traditional long-term care plans. One of those spawned from weariness over the traditional care plan is The Hybrid. It is called such because it is basically like the traditional policy but with better benefits such as allowing the insurers to get back their premium upon termination—that is, of course, if the one-time premium has been accomplished. There is also a death benefit attached to this policy. This plan also gives benefit to the spouse.

Individual Retirement Account

More popular as IRA, this plan is an investment tool where an employee sets aside money for retirement. The same can be used for long-term care, but it is not advisable. IRA should really take care of your monthly expenses: utility bills, groceries, clothing, etc. While this is enough for your daily sustenance, it may not be enough to cover assisted-living care.

401K

This employer-sponsored retirement plan is similar to IRA. And just like IRA, it might be enough to cover your regular home expenses but it might not be enough to cover assisted-living care.

According to a research by Nerdwallet, one in four people who have filed for medical bankruptcies in 2013 are people aged 55 years old and older. This is a worrying statistics since it generally means older people have a hard time getting a hold of their finances, usually because of medical needs. This is why it is important that as soon as you start working, you will be able to set aside funds for long-term care.

You can open an account that is separate from your savings and payroll accounts. This separate account will be for your future. In order for you not to forget to feed some funds to that account, allow a deduction from your payroll straight to the bank. This way, you can just forget about the account and allow the funds to balloon. You need to be proactive about the future, and not just be reactive. Our twilight years should be the time when we don’t have to worry about anything anymore. We have been worrying since our 20s, we should be enjoying life in our late 60s.

No one likes to find himself in debt because it’s like digging a hole without a way of getting out. But, here are some examples of how debt can be used to your advantage, or what we call  the “good debts“

Use debts to buy assets 

Taking out a mortgage to purchase a physical asset is a good thing. The land or home you acquire will only increase in value over time. So, even if you get into debt because of this purchase, it becomes more of an investment because of the time factor involved.

It would be illogical and impractical to use up all your savings just to place an ideal location under your name or under your corporation’s name. Even maintenance costs can be seen as a way of incurring debt, but having a better payoff in the long run. You need to repair your roof and it may cost quite a bit now, but the returns will come back in a couple of years or more.

Incurring student debt for a higher purpose

The ideal scenario would be to have won the lottery, and you would be able to pay for your education right off the bat. Or you were able to secure a scholarship grant and have your tuition worries settled.

But, that would be far from the ideal when aspiring to attain a Master’s degree or even putting in the work towards a doctorate. What options are available for those hoping to advance their careers through such educational opportunities? That’s where student loans come in.

The strategy here is to get into debt so you can get a degree. This degree will get you promoted and, when you’re able, you should pay off your student loans eventually.

Federal student loans give you more leeway with regard to repayment because the grace period allows you to obtain your degree first. But, you must stay in school to maintain this effect.

There are also other available student loans with flexible payment plans. You won’t be charged exorbitant interest and fees until you are able to bring up your income to a certain level. The loan agreement understands that as your income grows, you are able to pay back your loan more and more. Arrangements can be made to consolidate this.

Create good credit by using debt

Your credit history will determine your worthiness and reliability in paying off your loan. This will become more crucial should you intend to purchase a home or a vehicle.

Settling your credit card balances at the end of the month by paying the entire balance may seem like the right way to go. But, that makes you “credit invisible”. Since you paid off everything, there will be some hesitation with lenders because they are not able to view any credit history. That’s where you need debt to come to the rescue.

Do not just keep on buying stuff for the sake of just buying stuff. The purpose here is to create a credit history through charging items on credit and paying less than the balance only for a few months. Look for a 0% interest credit card so you can build up your credit without having to incur any additional interest. You are showing potential lenders that you can take on a loan and you are able to pay it off in a timely manner.

Use debt to begin a business or investments

Starting a business comes at a price. The reality is you have to invest in special equipment, build up an inventory, and project your operating expenses without the guarantee of any sales coming in at the moment. You’ll also need to assign a salary for yourself, but this only happens once you are able to settle any and all other business expenditures. Such is the challenge of entering entrepreneurship.

Although some claim to have luckily started a business without taking a loan, a short-term business loan may give you some breathing space so that some expenses can be covered by this instrument. Acquiring this loan can assist you in getting your business on track so that you are able to earn back your money in good time.

The deterrent for most people in getting into business is the fact that you have to consider taking out a loan. Waiting for enough money to be generated by sales may slow down your climb to the success ladder. Debt in this manner can be used strategically because you are hoping to lessen the gap in achieving solvency without sacrificing quality. There will most likely be a tax-deductible carrier on the loan because this deals mainly with helping to increase your business growth.

Use debt to buy or acquire real estate

The strategic way of using debt by taking out a mortgage has been discussed earlier. When you use debt to acquire property which generates income through leasing agreements and such, you’re well on your way to earning your first of many millions.

Income property acquired through the interest paid on mortgage loans has a tax-deductible benefit. There’s quite a number of individuals who take out a loan to buy a house, renovate it, then flip it. The profit they earn gets used to purchase more houses with potential and the cycle repeats itself. Multiple apartment houses owned by these entrepreneurs have been developed with this hardworking practice.

There can be an upside to debt

There are various reference materials on the Internet that can better inform you about what is good debt and how it can be differentiated from bad debt. Empower yourself by looking into this information as soon as you possibly can.

Don’t fall into a debt trap by thinking that all debt can be a good thing. It’s just a matter of being prudent and purposeful on how you can use debt to your advantage. Always be aware that any loans you take on must be settled immediately as possible. But, the help that comes from good debts may just be that necessary and timely boost you need to get you going.

One particular goal in most people’s lives is to eventually retire. However, retirement planning can also be as daunting as simply planning out what to do during retirement. Saving up for your golden years can be a complicated task given the limited help you can get from Medicare and also the unexpected illnesses you might get. Imagine asking yourself this question: What happens if you don’t have enough money to retire?

But there are several people who have found a way around this troublesome ordeal.  

Well, they say, to avoid the problems of retirement is simply to not retire. Well, there are more people than you can imagine who would love to continue moving around, flipping through pages and documents to feed their slowly shriveling brains.  

Some people just can’t imagine doing nothing. While some of us might admire these individuals, we still hope to spend the remaining days going on holidays in the tropics and watching the grand kids play. Now, if you happen to be one of these unique individuals, take heed of these pieces of advice on the ins and outs of not retiring and keeping yourself busy all the way until 70!  

Stay Physically And Mentally Fit 

One of the main concerns of staying out of retirement and keeping yourself moving and busy is that your body should always be at its healthy state. All that work interaction and new ideas you come across should not burn out all your brain cells from staying idle.  
 

Keeping your day job can help maintain your social activity, giving you a sense of purpose while keeping you away from the feeling of isolation, which gets most retirees depressed and grumpy. 
 

AVOID BOREDOM 

Retirement may not be the same for many people. For some, retirement is a holiday in the Bahamas or that coveted tropical cruise every year or that fishing session with the grand kids. But for others, retirement can be such a boring idea. Some people have just worked their butts off so much at such a young age that it has become part of their system. 

This is not entirely a bad thing for you, holiday cruise goers out there. Keeping yourself busy will make your mind healthy and your body fit. Don’t dwell in your sedentary work. Remember that boredom can cause the feeling of isolation and depression for some older folks. 
 

REINFORCING THAT SAVINGS ACCOUNT 

 Early in your life you tend to consider creating a savings account for retirement. This is, of course, a good thing as you never know what may happen in the future. What if you are no longer fit for a job? What if your savings are diminished and they can no longer cover the high costs of health care?

Now, keeping yourself in the workforce can help you reinforce this as for obvious reasons. You will still be earning and, given your many years of work experience, your position may be higher that time and pay bigger than what you had several years ago. This would be the perfect opportunity to reinforce or start that retirement savings account. 

 

REINFORCING YOUR SOCIAL SECURITY PAYMENT 
 

Something that you can benefit from not retiring immediately is basically delaying your social security payments.  This means bigger and better returns. Sure, you’ll be working a few more extra years (that’s your choice) that will help you save up more for your inevitable retirement when you’re old and gray. Once you get your Social Security payment you’ll be rolling big time for the remaining of your life. 
 

HEALTHCARE BENEFITS 
 

Medicare does not kick in until you’re 65 and if you started working at an early age that means you can basically retire at a younger age. Now, those who decided not to retire but cannot escape the cold grasp of aging before 65, then you can benefit on companies that give healthcare to their employees.  

Once Medicare coverage kicks in, you can use the coverage of your healthcare and Medicare to cover most of whatever medical bills you expect to have cutting out a huge part of your expenses, possibly entirely covering the whole cost. 

 
 THE POSSIBILITY OF RECEIVING PENSION WHILE WORKING 
 

Here is a little trick for those of you who want to maximize your earnings and savings if you don’t plan to retire. Some companies and/ or organizations allow you to retire thus commence receiving pension then get rehired into your last position before retirement or into a new branch of service, giving you more room to save up or reinforce that eventual retirement plan of yours. 

 

VOLATILE INVESTMENTS 

 Let’s say you were such a good planner that you had all the initiative to start investing in different stocks or businesses when you were much younger, but like in all things, you can never know how the tide will turn. Maybe your investments will boom. but for some unfortunate individuals they may come crashing down like the rusty and rattled roller coaster that the stock market is.  

As we have mentioned countless times, this will be a good chance for you to reinforce whatever savings you have combined with your ballooning social security payment, this will be an opportunity for you to maybe re-invest in other businesses or stocks now that you are much older and wiser with the work experience you have had all these years. 

Now that you have a general idea on what to expect or benefit out from not retiring, now the time to decide on how you want to spend the remaining work years of your life. There is no bad choice whether it is to retire or not, what matters most is what makes you happy and what will be the best for your family and loved ones. 

 
 

There’s such an insane urge to splurge during the holiday season. But, it’s good to reign in on your spending habits so you can ring in a better new year with more savings in your accounts. Let’s take a look at some money-saving tips for the holidays.

1. Follow a budget as much as possible

The amount allocated for a gift would give an impression on how much you value the person. The fact that you are making the effort to purchase an item for someone shows that you value that person. There are also expenses incurred for parties, charitable donations, and other costs, but by planning ahead on what you want to spend, you’ve already allotted the necessary funds for such without unnecessarily dipping into your main savings.

2. Keep your spending on track

Receipts and vouchers are your best friends because they provide accurate documents or pieces of evidence on how you’ve been spending your money. With your budget in hand, try to not go overboard by trying to have lavish treats for yourself because you feel you deserve it. You also don’t deserve ending up broke. Maintain a separate account for all of your holiday expenditures. Use bank apps to monitor what’s actually happening in real time. Don’t allow your spending to become like a runaway train where you will be unable to pull the brakes. Documenting what you’ve spent will help you stay on top of things.

3. Extras are unnecessary

Do you really need that extra latte? Should you treat yourself to a brand-new pair of shoes. You’d be surprised how much you are able to save by focusing on what are important instead of the extras.

4. Focus on other people, not just yourself

Being part of a family with multiple numbers can cause a strain on your finances especially when you choose to gift each and every one of them. Perhaps, it would be more fun, and more financially viable, to just have a “Secret Santa.” You’ll be able to focus on your relationships more instead of obsessing over what you’re going to get.

Volunteering for outreach programs or participating in a feeding event for the less fortunate brings out the real reason for the season. You would be supporting more worthy causes instead of purchasing presents that may or may not be appreciated. Because, for those who have less, they will indeed be grateful for any blessings that come their way.

5. Have more cost-effective celebrations

Going on a family trip every holiday season can put a strain on the finances. You can save more money by just strolling around the neighborhood to check out the decorations or baking some sweet treats at home. They can become a more meaningful and cheaper way to celebrate the holidays with your loved ones, too.

6. Why not try a potluck

Caterings costs are high. But, you may ask your loved ones or other attendees to participate in a potluck. That will help reduce the cost. It also allows everyone to feel that they have something to contribute. The younger people can plan out games and other activities to keep a fun-filled holiday party.

7. Explore clearance sale

Find malls offering huge discounts during their clearance sale before you take the plunge. The enticement of bagging a great deal can be rewarding, but it may also be disadvantageous. Most of these items on sale are from past seasons or old items that these brands want to get rid of. However, you need to figure out if the sale can guarantee you more savings or you might be spending again needlessly.

8. Don’t splurge

Now that you’ve bought everything on your checklist. Don’t make a convenient excuse to just see what they have in the mall unless you won’t be tempted to go overboard.

You may feel the need to buy some last-minute items as part of the holiday rush. So, make sure everything is included in your budget. This doesn’t mean you have to deny yourself that need to shop because you’re too caught up in the frenzy of the mob. You’ve managed to plan ahead and have prepared everything. But, when you’re done, stay done.

9. Evaluate then execute a better strategy

After all that holiday madness, it’s time to sit back and meditate. Were you able to stay within your budget? Did you give in to impulse buying? What helped you and what didn’t help you stick to the plan?

Prepare yourself as well for a credit card payoff strategy. It would be ideal to settle your balance the following month, but if you enjoyed yourself too much then really needs to set in and you must hunker down and figure out how to remove this debt. Don’t let the interests wreak havoc on your finances and try to pay them off in the next three to four months.

For decorating needs, there’s no harm in reusing the decors you used last year. Or, if you feel the need to buy, you need to make sure you have enough space in the house to store these decors so you can use them for the next holiday season.

One last thing

Holidays always entice everyone to open their hearts a little bit more. Advertisers and retailers hope to do likewise with your wallet. But you don’t need to be splurging a lot of money just to cope with this event.

There’s more to enjoy the holidays than getting too caught up in a vicious spending cycle. Spending quality time with your loved ones may be the best investment you can make. And, hopefully, you’ll manage to stay within the budget.

People in their 30s are the most productive. People in their 20s are still struggling to find their footing in the world. And once they found it, they don’t get too serious—at least not yet, as your 20s is reserved for partying and having fun. But real responsibilities start to creep in when you are in your late 20s—this is when people start having families. In your 30s, life becomes REAL. So what are the things you should know by the time you’re 35?

Here are five things every 35-year-old should know about money.

Know your credit score

 

According to Time magazine, only half of the millennials are aware of their credit scores. And since you are almost “not a millennial” anymore, it’s best to be aware of your credit standing. Knowing your credit score means you are aware of your financial standing. There are great advantages to knowing your credit score. It means you could save thousands of dollars when taking out a mortgage and loans. You don’t need to be a homeowner to get good car loan rates and insurance premiums.

 

Increase your 401(k) contributions

 

At this age, chances are you can already afford to pay a higher contribution for your 401(k). Remember that this is your future. If you want to have a more comfortable future, you have to start investing in it at the soonest possible time. It is understandable, though, that in your 20s, you can only afford to contribute the lesser amount. If you can open more than one retirement account, that would even be better.

 

Know your net worth

 

People, not just the young ones, don’t really bother knowing one’s net worth. This is because most people don’t think it’s necessary. But it actually is. If you want financial stability, you have to know your whole financial picture. Your net worth can be calculated by adding all your assets, properties, investments, cash and other bank accounts minus your liabilities—your debts and other financial obligations. When you know your net worth, you will know how to improve your finances and make improvements in your fiscal activities.

 

Savings

 

Everybody knows you need to save for the future. But how much should be enough? According to financial experts, one should have savings that would allow you to financial live for three to six months. More is obviously better. In life, nothing is ever certain. So if you ever lose your job, it pays that you have a rainy day fund.

 

Know your debt

 

It is normal to have a loan, and as long as you pay on time and with the proper amount, your credit score is bound to be good. More people only know the amount they owe but nothing else. Actually, you should know your debt and the interest you are paying. This will give you proper control of your money. This will also allow you to determine the day you will eventually be debt-free.

In your 20s, you can still get away with being financially irresponsible. But in your 30s, it just doesn’t sound proper anymore. One should be financially savvy at 35 in order to make smarter decisions concerning money.

Owning your residence has its share of maintenance costs and expenses for upkeep. On the other hand, when you rent, of course, you need to take good care of your abode, but you may have fewer worries when it comes to the property.

Since you have to set aside a fixed amount per month for your rent, you have to live within a budget. Let’s take a look at some budgeting tips for renters so that you get to survive within your means.

Figure out what you’re bringing in and what you’re spending on.

Okay, it’s time for a reality check. If you only earn so much, what are the other items that make up a bulk of your expenses? After taxes, how much is left from your monthly income? Deduct the amount that you need to pay for utilities (light and water), Internet, mobile device, grocery items, and fuel. By keeping in mind your monthly expenses, you’ll better understand your present financial position.

Time to cut out frivolous spending.

After figuring out what you’re spending on, it’s time to determine what you can save on. Maybe you really don’t need that additional cable subscription. Perhaps you can take the time and effort to switch off all the lights before you go to sleep. Maybe you don’t need to dine out. You’ll probably enjoy preparing meals at home even more. Use a blanket or put on a comforter instead of turning up the heat. The goal is to save more each month instead of burning a hole in your pocket.

Nurture fiscal discipline 

By putting this into practice, you get to enjoy more of the simple things in life. So, who cares if you don’t have the latest gadgets or that you keep up with what’s “in”? Once you accept that your smartphone still works fine and your clothes are still decent, there’s no need to go crazy and irresponsibly go on a spending spree. What you presently own is adequate and gets you to where you need to be.

Keep an emergency fund 

When you strictly follow a budget, you’ll be surprised as to how much you are able to save. Don’t blow it all because you just have to purchase that giant television. Look into safe investments that can give you a better return. Consider opening a high-yielding savings account that you can conveniently forget that it’s even there. Do your best to set aside about three to 10 percent of your monthly income for an emergency fund. It can increase over time, but the point is to build it so you have something to use when absolutely necessary.

It may take a whole lot of willpower and discipline, but it will pay off. Don’t just save money to pay for the rent but make sure to prepare yourself to meet the challenges of life.

Logic dictates that a household headed by a single parent is going to have more of an uphill battle than a household where both parents are present and earning money. There’s a deficit of one earning there—so it’s not going to be easy. Even in cases where there are two parents, but only one of them is working, there is still a great advantage because there is someone who can manage the household. A single parent has to work and manage the household—there will be a large difference there concerning morale and physical strain.

But while day to day expenses will be hard for a single parent, it’s not impossible. Here are some financial strategies or budgeting tips for single parents:

Keep a budget

Your budget as a single parent will look different than the budget of a household with two parents. Keep your budget and believe in your own budget. The important thing here is that you put everything in a journal so that you don’t overspend. Putting things on paper puts a semblance of truth and legality into it. There are also mobile apps that will help you track your expenses to make things easier and faster for you.

Enroll in automatic payment systems

Penalty fees and fines don’t have space in a single-parent household. Every solo parent should prevent himself from succumbing to unnecessary expenses. Late payment of bills is a big no-no. It is just stupid that you are already having a hard time paying the bills and you have to pay a fine for it. And penalties are preventable. The best way to do this is to link your bills to your credit card or debit card so that bills will be automatically deducted. This way, you will never be late in paying for your bills.

Don’t splurge on food

This is not going to be a popular strategy especially if you have children—particularly boys. Food is important. However, single-parent households have to make more sacrifices than the two-parent households. And one such sacrifice would have to be on food. Don’t go on impulsive grocery shopping. You will only spend what money you have left after paying all household and other regular bills. Anyway, cooking food is a talent. You don’t need to have the most expensive produce to make the most delicious food. You just have to be creative.

Start your emergency savings

One of the best budgeting tips for single parents is to keep emergency savings.

Would single parents even have enough to set aside emergency savings? It’s going to be difficult, but every single parent should try harder to have an emergency fund. It is actually the single parent who will need the emergency savings more. This is for expenses that you don’t anticipate, hence, emergency.

Ask the kids for help

All those budgeting tips for single parents won’t be that easy if you don’t share the issue with your children.

The children should be made aware of the situation at home. Explain to the children the financial difficulty of being in a solo-parent household. Ask them to help you budget household expenses. Ask them to be more thrifty. Ask your children to scrimp on expenses. Your children are willing to help. They just need to be more aware of the situation.

Can anyone get through life without credit? Of course! In theory, it would be the best way to live because it means that you are living within your means. That you are only spending the money that you actually have and when you actually have it. With proper budget management, one can live within his salary.

The only reason why people think that they can’t live without credit is that the money almost all Americans own makes it so easy to shop; hence, people overspend all the time. Not only that, people start to spend beyond their means. According to reports, almost all Americans who own a credit card have a balance in their bill every month.

But now that it has been established that a person can actually go through life without a credit, is it wise? Not necessarily. While credit cards may be considered the root of some evils, being with credit actually carries some advantages. Here are some reasons why a person will need credit to go through life:

 

Buying a house

Unless you are loaded enough to buy a house in cash, having a good credit standing is actually one of the things financial companies look for when you take out a mortgage. The company needs an assurance that you are a good creditor and you pay on time. Having a high credit score spells the difference between getting the loan or not.

 

Rewards & cash backs

Credit card companies are fond of giving away rewards, rebates and sometimes some cash-back promos. All you have to do is use the credit card—the more you use it, the more chances of getting a reward or rebate. Sometimes, the return is actually quite worth it.

 

Renting a car

Just in case you find yourself in a different state and you would like to drive around, the option would be to rent a car. However, you can’t rent a car without a credit card anymore. The credit card just seems to be a more secure identification.

 

Protection

It’s ironic how a credit card can actually protect you when it is the very reason you are spending more. Credit cards give you the illusion that you have money when every swipe is actually a debt unless you pay for the accrued expenses before the month is up. If your credit card is stolen, or at least if the information in your credit card is stolen, you will be protected under the Truth in Lending Act. This means that whatever fraudulent activities done with your credit card could not be blamed on you. The same could not be said with check and debit card payments.

Another example about the importance of credit cards is the loss. When you lose your credit card, it can be canceled and replaced. But a lost cash is gone forever.

 

Emergency cases

There are some cases wherein you have absolutely no money—but when you have a credit card, it’s as if you have money to spend. So in emergency cases, it helps to have a credit card.