Category Archives: Fix Your Finances

{Financial Cents} Say No Social and Yes to Finances!

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She Makes Cents money saving blog for women

During the infancy of She Makes Cents, I started reading Shoo…Jimmy Choo by Catey Hill. This, I admit, was another book I picked up because I like the title.  In it, Hill goes beyond the standard advice to create a spending chart and record everything you spend your money on in it. She adds the recommendation to also include additional information such as who was with you and the motivation behind your purchase. I did this for about two months and learned that I often spent extra money when I was with one particular close friend. I usually spent money on expensive lunches and after reviewing the spending chart, my motivation behind my spending was purely emotional. I didn’t realize that was I was spending a great deal of money simply because I missed hanging out with her like I did when I was in college. Fast forward almost two years later where I started repeating the pattern of emotional and socially inspired spending. With my current job, I got back into the habit of frequently going out to lunch with the girls. I didn’t want to miss the great conversations but most importantly, I didn’t want to appear anti-social.

At the start of the year, something clicked for the Mr and me. Our view on how we spend money as a couple and individually has narrowed. We have become super serious about saving and making better decisions on how we spend our money. Does that mean no lunches with the girls? Absolutely not! It does mean that I won’t be going with them EVERY DAY for lunch or drinks after work, though. Instead I am cooking more at home and packing more lunches. As much as I hate to decline a social invitation, I would hate it more if the collective whole of my socially motivated financial decisions were the reason I wasn’t truly living a fabulous debt free life. I am proud of myself. I find that I’m eating better and cleaner. I also becoming a better cook, which is always a plus, but more importantly, I have learned to say no to social and yes to finances!

What Have You Had to Say No To?

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{Financial Cents} 4 Smart Ways to Spend Your Tax Refund

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tax refund

 Have you ever gotten your tax refund and thought to yourself, it’s time to go shopping? I have. Growing up, my mom would take a large part of her refund and she and I would go on a shopping spree…even if it meant driving from mall to mall to find a wider selection or hanging out on a school night. That is how I grew up thinking about refund checks… like some sort of magical windfall of new shoes, purses, and dresses. Now fast forward to the present, I now know it’s better to try to break even than to get a fat refund. In reality, if you are receiving a large refund then you are paying too much in taxes throughout the year.

Divide and Conquer Your Money

If you are like me and you know you will be getting a refund of some sort, it is important to find a better way to spend your money than blowing it on a  new tv or handbag. Before you even receive your refund, you should already have an idea of what you may be getting back. Take this time to divide your money, so when you actually received it, you will be less likely to blow it recklessly because you have already decided where it is going. For some, this will take some serious financial discipline, but in the end, it’s worth it! I plan to make my money work for me by using these four categories below to get me started.

        • Fund your funds. If you don’t have an emergency fund of at least $1000, now is the time to start paying yourself.  You should think of this fund like those Chinese finger traps that kids used to pay with- it’s easy to put stuff in and difficult to take things out!  If you already have at least a $1000 Emergency fund, then you should take a percentage of your refund and put aside for your savings account.

        • Pay Down Debt.  This is the time to give your “snowball” effect an extra boost. Putting a portion of your refund toward your debt with the lowest APR (annual percentage rate) or lowest balance will help you pay get out of debt faster and feel good about your accomplishments.  Remember, you don’t have to have thousands of dollars all at once to start getting out of debt. Every payment above the minimum helps you get closer to your goal.

        • Take Care of Things You Have Been Putting Off.  If you have been meaning to call the plumber over to fix that leak you can’t find (raises hands) or get the brakes on your car checked out (raises hands) or even get the shoes with that weird heel repaired (raises hands) then take this time and money to do it.  These are things that people put off because they don’t have the money or time.  You now have the money, so make the time.

        • Prioritize Fun.  When budgeting your money, you have to remember to prioritize for things that bring you JOY.  Set a goal and when you accomplish it, tap into this category and unleash your fun fund.  This could mean buying those shoes you have had your eye on, a spa day, or planning that impromptu weekend with your loved one(s), girlfriends, or even by yourself!  It doesn’t have to be big, but it does help if it is something that brings happiness and drives you to work toward your goal. 

How Do You Divide Your Refund?

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{Smart Money} Is Education a DEBT Sentence?

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Education

There is a quote that states, “If you think education is expensive, try ignorance”. Unfortunately, this quote is true on SO MANY levels. While many people associate the word ignorant with being dumb or stupid, it’s simply the condition of being uneducated, uniformed, or unaware. After graduating from Spelman College, I made both smart and dumb decisions regarding my student loan debt. I was told by my aunt that paying your student loans is a great way to establish credit. I put in an extra effort in paying Sallie Mae, so much that I had it paid more than year in advance. This was smart, ignorant, and sometimes dumb at the same time. It’s smart because I really never had to worry about forgetting to pay the bill. I felt extremely proud of myself for not being another “irresponsible” 20 something. It also revealed my ignorance because I should have been using that extra payment every month to pay down the balance NOT pay it in advance. I ended up paying interest when I could have been slaying the balance, which ultimately shortens the life of the loan. However, it wasn’t until I was in between jobs and not paying on the loan at all because the next due date was a year from then that I started digging a hole that I am still trying to get out of four years later. For one, my interest was accruing at about $8 a day, so a lot of the money I thought I was saving was now been tacked back on to the overall balance. It got worse when after the year was up, I still wasn’t working and I accepted an offer to postpone my payments for a year. That was back in 2011 and after yesterday’s phone call to Sallie Mae, my decision to postpone is still hurting my finances.
I pay about $200 a month for my student loans and recently got a series of letters saying that if I qualify I should sign up for automatic billing, which would let Sallie Mae automatically deduct money directly from a specified account every billing cycle. The incentive you ask? A .25% reduction in my student loan interest…equaling about $50 a month and $600 per year. I called Sallie Mae on yesterday, only to find out that I did NOT qualify. Apparently, if you post pone your loan at ANYTIME over the life of the loan, you lose eligibility for any interest rate reduction. Had I known this I would have been the never postponed my loan, but this secret penalty was never in any of the documents I agreed to.  Looking back I would have rather roughed it out. So I guess the quote rings true. My education was expensive but my then financial ignorance could cost me more in the end.

We would LOVE to hear your thoughts?

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Fashion Cents} Brand Loyalty or Brand Validation?

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love-chanel1

Danielle and I have discussed how the psychological obsession with expensive products and luxury labels can lead to financial trouble. While setting up shop for the most relaxed SMC meeting ever, we discussed our favorite brands. Danielle likes O.P.I. nail polish and has a shoe game that would blow you away. I, however, have recently recovered from a serious infatuation with True Religion brand jeans and the both of these are pricey for the types of products they are. Sometimes within one’s own living circumstances, it makes no sense to step out of one’s’ budget for the sake of feeling validated by a brand. So why do so many people do it? Which has more value, brand loyalty or brand validation?

Let’s begin the conversation by defining these terms. Brand Loyalty is your devotion to a particular brand because of its proven usefulness. This is a tried and true product or brand that has won you, the customer, over for its merit or quality. (THINK: I’m loyal to Charmin tissue because of its thickness.) Brand validation, as its name suggests, is when a product’s mere reputation trumps the importance of its merit; thus fueling one’s desire for the label more so than the product. Yep, we let a brand validate us without proving itself worthy of its cost.

Brand names and their reputations are impossible to evade. Because of this, it is almost too easy to get lost in a particular brand so much so, that we allow it to eat out our pockets. The place where both brand obsession and financial logic intersect is where I am in my journey to financial freedom….SMC too, since she has repeatedly admitted that Chanel makes her feel pretty. In no way am I discouraging splurging for yourself or investing in expensive products that will hold you down in the long run. I, for one, own expensive jeans that have lasted years. When operating on a budget, though, it is imperative to think critically about the items you choose to spend your money on, and why. Are you loyal to your brands because they actually fulfill their purpose, or are your brands validating you while nipping away at your money? Granted, there is no cookie cutter way to address the issue of our obsessions with luxury brands. However, acknowledgment of this issue is a surefire way to begin searching for smarter ways to shop for the things you love…while staying within a budget, of course:)

Have you ever allowed a brand names to validate your purchase?  

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{Broke is the New Black} Are You Paying for the Fake Life with Real Money?

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061311_2121_SplurgevsSa1.jpg

Welcome to the Good Life! Over the past few years, social media has become a game changer. Its created jobs that did not exist even ten years ago, helped people connect who may not have had access to each other, … Continue reading →

{Money Challenge Remix} How to Save $1300+ On Any Budget

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Okay, so we are just 3 weeks in and I started falling behind for my 52 week money challenge. I decided at the start of week one to try this challenge in reverse. That means I will be saving more money at the beginning of the year and less the closer we get to the holiday season. In my mind, this worked well. In reality, it could work well. So far, though, my results haven’t been all that great and the fact that the fiscal cliff has chopped a chuck out of my check, hasn’t helped. I thought to myself…”Danielle, how can you find a way to honor the challenge in a way that will not hurt you financially?”  Then I came up with the idea to create a “bingo” style format.  At the end of the year, I would still end up with the same amount of $1378 and if I am having a tough financial week, I can pick a lower amount to save.  I crossed off 52 on week one, and I will cross of 5 and 4 to represent weeks two and three.  I decided to share this to maybe motivate someone who may have been thinking about “giving up”.

52 Week Money Challenge from She Makes Cents

{What’s Your Preference} Numerical Order, Reverse, or Bingo Style?

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{Women, Money, & Cosmo} The Debt Crisis No One Is Talking About

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My favorite professor and teacher of all things “deep”, Dr. Michelle S. Hite, once told me that when you are fully engaged in research, you will start to see inspiration everywhere. I was researching women and business, but more specifically the salaries gaps of women in business, when I found inspiration in an old “habit”. My name is Danielle and I am an admitted magazine junkie and Sunday evening… Cosmo was my latest hit. While reading the February LOVE issue, I came across a very informative article from Rachel White entitled The Debt Crisis No One Is Talking About! In it, White discusses the vicious financial cycle of women, higher education, and student loan debt. You see, it is easy to say that women have more debt. That’s a statement I hear all the time from men and women. It’s a blanketed generalization because the mind tends to lead one to the stereotype of women and financial incompetence not the FACT that more women now have more financial responsibilities. For example, women now outnumber men in college, which means women are more likely to start their careers in debt. In her article, White used a real life example of a woman by the name of Brenda Errichiello, who “found herself with a $947 monthly [student loan] bill and only a $27,000 annual salary”. In all, Errichiello ;graduated with a fabulous 3.9 GPA and $92,000 in debt. OMG, I thought to myself while reading this because Rachel White could have very well been telling my own story. I, like Errichiello, graduated with honors from Spelman College and thousands of dollars in debt before I even earned my first adult check.

What is Errichello to do?

You might be surprised by the answer. She had actually considered going back to school with the hope that more education means a better paying job, job security, and a bump up the corporate ladder. This is something I very well considered myself, getting back on the law school grind, but I had to remind myself that money doesn’t equal love and that hard work doesn’t always pay off in the currency of one’s choosing. Is this the epitome of spend more make more? This, SMC readers is that start of the Debt Crisis no one is talking about.

Things to Consider!

Women come out of the gate making less than our male counterparts for the same positions (18% less according to the article), are less likely to ask for raises at review time, have more student loans, and generally take maternity leave to start a family. How are we going to catch up? Why isn’t anyone talking about debt? According to White, it affects out relationships or lack thereof, career choices, and forces drastic decisions that hurt us even more in the end and if you follow SMC, you have read of other real life examples that support White’s point.

Do You Consider This A “Debt Crisis”?

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{52 Week Money Challenge} The Easiest Way to Save $1,000+

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Click here for update and a “remix” to this MONEY CHALLENGE!

Today I was introduced to the 52 Week Money Challenge by a fellow blogger, DLWinfrey from Pretty Girls Rock Dresses (PGRDresses). The challenge is to make a weekly deposit that reflects the number of weeks of the year. For example on week one you deposit $1.00 and on week 27 you deposit $27.00 and so on. It sort of reminds me of when I was little and my big brother would give me money that corresponded with my age ($5.00 for my fifth birthday and $10 for my tenth birthday). This is week one of 2013, so if you are interested, you better put your dollar to the side. I plan on using the money saved throughout the year for holiday purchases and paying down credit card debt. Just think, by this time next year, I could have saved $1,378 just by participating in this challenge. While I don’t know who came up with this challenge, I do thank them. It’s easy, it’s fun, and it won’t break the back.

52 Week Money Challenge

What Will You Do With Your Savings?

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{Financial Goals} Tackle Your Credit Card Debt Today

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Slow-and-steady-moneyHave you ever heard the phrase, “a goal without a plan is just a wish”? Well I’m starting to think that is true. Like many of you, I always have financial goals… some I have shared on this blog and others I have not. As we start this brand new year, I have to ask myself, were my goals of last year actual goals or just wishes for the future? I started reflecting on this the other day while looking at older posts about financial goals. Sure, I can list some of my goals but without a plan, how can I help you as readers follow my financial journey? Isn’t that the point of all of this? I also started wondering how much is too much to share? The answers to these questions will unfold throughout 2013, but for today, getting a plan together is the priority.

The Problem: In my pre-She Makes Cents life, I worked every month and in a short amount of time, I paid off my credit card. Then the bottom fell out and I was using my credit card to simply…live (very honest moment). Long story short, my balance of about $5300 (rounding up) is nowhere near, where it should be. Why, you may ask? Because I was caught up. I started swiping to get the “cash back” deals that I told myself I would pay it off at the end of the month and didn’t. I wasn’t using my envelopes as I should have and I might not have fully realized the my new financial situation.

The Solution: In reading some of my older post, I remembered a period where I locked my credit card up in a safe deposit box.  Initially, I just wanted to see how long I could go without credit card spending.   I wasn’t swiping, I wasn’t living beyond my means, and the balance was slowly decreasing over time. I am a very goal oriented person, so I know adding the component of an end goal date, one of the tips featured in the post How to Make and Achieve Your Goals, will help.  Thinking back, why did I ever take the card back out?

The Plan: If you are in a similar situation, this is how I plan on making this wish into a goal and a goal into a “been there done that”. While I would like to have this paid off in a year, I know I may need cushion. My end goal date for credit card payoff is August of 2014. That means, with my interest rate, I will need to be making a payment of $294.36 per month to be credit card free by next August (check out the credit card payoff calculator at the bottom of my sidebar to figure out yours).  Instead of paying the minimum, which is NEVER a good look, I will pay the fixed rate listed above or more.  Also, whenever there are cash back deals through my bank, I will use the “rewards” to pay down my credit card. In my research, I have heard the advice to pick up the phone and call your credit card company for a reduced interest rate but depending the company, they may label you as a “high risk” customer and close your account, so do your research first. 

How Are Your Eliminating Your Credit Card Debt?

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{To Buy or To Wait} Is it Time to Upgrade My Phone?

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pink gloves

This is a battle on many levels. Droid vs. Droid. Need vs. Is it Really a Need?. Buy vs. Wait. Gloves are up, the bell has sounded, round one has begun! Before I jump in the ring gloves up, let me tell you how I got to myself into internal battle of buy vs. wait. Last night I was unloading the car at my parents’ house how when I realized the front pocket of my CNN hoodie was wet…that’s right, the same front pocket that held my beloved G2 phone. I checked the phone, which wasn’t that wet since I had a protective case, wiped it dry, and settled in at my parents house for a visit. It wasn’t until I looked at my phone 30 mins later that I realized, I had water damage. I immediately opened the only package of rice I could find (black beans and rice), poured it into a ziplock bag, and put my phone in the bag. Sidenote: rice really is a lifesaver and I will forever keep a bag of plain white rice in my pantry for emergencies. I should have left it there, but listening to the advice of others, I decided to try to blow dry the phone…BAD IDEA. My beloved G2 went lights outL. I buried the G2 back in rice…added a box of Caribbean rice for more absorption and a better scent and went to bed. At the point, there was nothing I could do. This morning when I went to check on the phone it appeared to be dead until a few hours ago when it cut back on. I talked to my carrier who told me it could be good to go or it could unexpectedly die again. I have no room for the unexpected when my phone does triple duty as the cell, the home, and the office. What is SHE going to do?

Droid vs. Droid

galaxy-s3[1]

Technically, I qualify for an upgrade that will force me to change my plan and have to pay $149 for the phone. Actually, $149 is a great deal I found online because the phone retails at $599 and it is in the store for $300+. However, the great deal is through midnight and I hate rushing into financial decisions…especially when my credit card balance has been going in the wrong direction since the holiday season began. While I love my phone, it does has some issues that were prevalent before the infamous water bottle spill…like being able to maintain a call without the phone restarting itself. So droid vs. droid. The allure of the new and shiny Samsung Galaxy III appears to be calling my name. It does everything my phone does, but more.

Pros

Cons
G2
I like it. The phone had issues before the water damage
No additional cost. There are still visible signs of water damage
I know how to use it. My current plan could change (this could be good or bad).
I just ordered 2 cute phone cases that I got for a really good deal on Amazon.com I will eventually want/have to upgrade the phone and it was discontinued last year
Samsung III
It is AWESOME! I will have to pay for the phone.
I can use it as an hot spot for internet of other devices My current plan could change (this could be good or bad).
It doesn’t seem difficult to learn since it is a droid too I feel rushed to make a decision before the sale ends at midnight

Need vs. Is It Really A Need

This is a big girl battle. As college student, the need/need? conundrum was something I didn’t consider because I didn’t have a mortgage and credit card debt back then. Is this really a need or a high priority want? My dad seems to believe this is a want that will be a need in the future. If water had never spilled on the phone, would I even be entertaining the thought of a new device? Truthfully, no. Does it make a difference now? Possibly, I mean I am taking time out to write a post about it, so it is something that has my wheels turning. But what about the other things on my high priority want list? I have been looking to upgrade my computer for the SMC office which in comparison to the oh so awesome Samsung III trumps the phone.

Buy vs. Wait

Normally people email me questions, but this time I am coming to you. You have my thoughts, you have the pros and cons, what would you do?

Love to hear your thoughts!

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