fix it – shemakescents

{Smart Money} Is Education a DEBT Sentence?

Published on February 9, 2013April 19, 2013 by Danielle YB Vason8 Comments

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.

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

Published on January 21, 2013December 22, 2016 by Danielle YB Vason9 Comments

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, and became a major catalyst for our cultural need to document everything. But what exactly are we documenting? – The life we live or the life we want people to think we live? All too often, I see people around me going into debt trying to rock the same fashion piece that they saw on one of the Kardashians. I asked this question a few months ago and I will ask it again, whose lifestyle are you funding? They can afford it, can you?
Fashion writer, Suzy Menkes called 2009 the “end of the statement bag” in a blurb for the 2009 autumn edition of H&M Magazine. She adds, “Insane shoes that mangle your feet, laughably expensive bags that no-one can afford; who can afford such extravagances in times of [financial] crisis?” If 2009 was the end of the expensive statement bag, then this must be the year of the appearance of luxury, where people are funding a fake life with real money. The reality is, even four years after the “fall of the statement bag”, we are still in a financial crisis.
Don’t get me wrong, I love fashion and will spend money when I have it, but I refuse to waste money staging a lifestyle for the world to see. I’m am not one of those people who are offended by the finer things in life, rather I feel sorry for those who mishandle their responsibilities in hopes of material possessions. This is not just a twenty-something problem either, as I witness people of all ages spending in excess to portray the good life…and for what? Public validation? Likes from Facebook, Twitter, and most notoriously Instagram from people you don’t even know in real life? Be yourself, rock what you love, but don’t go into debt doing so. Trust me, none of the people who “liked” your photo of those oh-so-fly out of your budget shoes, will help you save for that house you have on your vision board.

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

Published on January 18, 2013January 3, 2016 by Danielle YB Vason28 Comments

Click here for the updated 2016 version!

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”.

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

Email me if you want my handy Bingo Style Sheet!

{Financial Goals} Tackle Your Credit Card Debt Today

Published on January 2, 2013January 1, 2016 by Danielle YB Vason4 Comments

Have 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 posts, 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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{Update} Confession of my New Year Resolutions

Published on April 4, 2012January 3, 2013 by Danielle YB Vason1 Comment

New Year’s Resolutions??? That’s so January… Save more money. Eat right. Exercise more. I remember having to try at my goals again after an epic fail the first time around. I think the problem with New Year’s Resolutions is that people set either too many goals or a couple of unrealistic goals. This is why after a couple of days, resolutions seem impossible. Throughout the year, I promised to share my game plan to accomplish some of my goals and resolutions for the year- so here you go!

Check out some of my favs!

Start Putting Money Away for Emergencies

January 24, 2012: Since I’m being honest, I might as well go all in. Currently, my emergency fund looks like the sad little piggy pictured above. That’s right, even She Makes Cents, has to get her own finances together sometimes. I almost depleted my fund when… an emergency came up. I am so glad that I got myself into the habit of saving for the unexpected because life would have been so much harder without one.

April 4, 2012: I have started my emergency fund again and I must say it feels good. I really hope it will be a long time before I have to tap into it since there isn’t much in there and two, no one likes emergencies.

Cook More, Eat Out Less

January 24, 2012:The Mr. and I love trying new restaurant spots; consequently, we have gotten in the habit of going to restaurants multiple times a week. Sometimes, I even eat out multiple times a day. While examining our finances, we both concluded that we can’t save if we are constantly spending on dinners out every night, plus tips for the servers, plus parking. Do you see how quickly it can add up? Not only are we spending too much, but it is counteracting to my bangin’ body goal.

April 4, 2012: Well….we still eat out, but we are now more conscious of it. Using the envelope system has really helped with this one. I set aside a certain amount of money per check for non-grocery food expenses. For example, I stopped at Smoothie King this morning for a Pineapple Surf and used my “restaurant fund” to essentially…fund it. The envelope system, regarding eating out, has also forced me to really think about my motivation. Am I really hungry? Am I going to be social? Now, I need to work on the “cook more” portion of this resolution.

Bangin’ Body 2012

January 24, 2012:I think this one is a little self-explanatory. I will just let these swimsuits be my inspiration. I say show it while you got it…so I have to get mine tight. Get it right, get it tight 2012!!!

April 4 2012: I am pleased to announce that I am actually starting to see a difference in my tummy. I started jogging, stretching, and taking the dog out for longer walks. I am also trying to eat a little better, so once swimsuit season officially begins, I hope to have accomplished my goal of losing 2 to 3 inches. As of yesterday, I’m already down an inch.

Reduce Impulse Shopping

See the World

April 4 2012: So my Dad and I are getting our passports updated this week. This is very necessary since I will be celebrating the Mr.’s 30th birthday in Germany among other places.

Overall, I’d say that I’m not too far off of my goals for 2012. While I could be doing better in some areas, I could also be doing A LOT worse. In fact, as I accomplish my goals, I will start replacing them with new goals.

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Whose Lifestyle Are You Funding? Yours or HERS?

Published on March 27, 2012April 19, 2013 by Danielle YB Vason6 Comments

Are you trying to keep up with the Joneses?
How about the Housewives on Bravo? If so, you are probably guilty of spending money on the life you thought you lived, rather than the life you are actually living. The number of adults who try to emulate and even compete with their friends, foes, and even strangers on television is appalling. As a child of the entertainment industry, my parents told me at a rather young age that the majority of things you see on television are not real. What is real, though, is the increasing amount of debt that people are incurring doing this.

I was reading an article last week by author by April Dykman of Get Rich Slowly. The premise of the article was that idea that people spend for the lifestyle they want as opposed to the lifestyle one currently has. Dykman maintains that, “If you’re paying for a life you have only sometimes, you’re stealing from your most-of-the-time life. And breaking that habit can make you a whole lot happier”. This got me thinking… am I doing this? Am I spending for the lifestyle I want versus the lifestyle I have? In being honest, I’m not entirely sure. Dykman continues, “I tend to give too much thought to what I do once in a while and not enough weight to what I do every day. For example, I wear running shoes 29 days out of 30 days a month, yet I have three pairs of black flats and only one pair of running shoes.”

Click here to read Dykman’s Save on The Things You Do Daily .

What do you think ?

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Negative Job Growth for the Millennials….

Published on March 2, 2012April 19, 2013 by Danielle YB VasonLeave a comment

I can’t say that I agree with HOW the information is presented. “The Best Generation Ever” statement is one that leaves quite a few to disagree. I always hear people talking about how this generation is so different…and they don’t mean it in a good way. While some may consider the Millenials the “Best Generation Ever” others are also quick to add that there seems to be disconnect between the work ethic of previous generations and the habits and work product of this 21st century generation. Advances in technology make almost everything easier which only fuels proponents to the idea of the new “lazy generation” point. What I did find interesting is that this study found the job growth for millennials is in the negative percentile.