Tag: money saving blog for women

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

Published on by Danielle YB Vason2 Comments

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?

Published on by Danielle YB Vason8 Comments

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?

Published on by Femi HillLeave a comment

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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