Finance Xpress

Even in the most carefully run and financially independendent of lives, there will be some wrenching twists and turns.

Friendships and businesses will fail. You or your loved ones will get sick and some of them will die. Kids will have plenty of trouble on their long road to adulthood – if they even make it. And all around you, there will be a sea of fighting and breakups and divorces and mismatched relationships that you wish would end, for your sake or that of your best friends.

With all of this happening, it’s a wonder that we can remain happy and productive and even thrive as humans. But we can. And we do. Because sometimes life just serves up a shit salad and we don’t have a choice in the matter, but we always have a choice of how to respond to it.

So if you haven’t already heard through the rumor mill, the former Mrs. Money Mustache and I are no longer married. Although we had been drifting this way for a while, the formal change of our status is still less than a year old, so it’s still a topic that deserves some quiet respect*.

The downfalls of our own relationship are personal and not something we choose to make public, but you’ve heard it all before anyway. Sometimes people just grow apart over the decades and find that they want different things from life. And when this happens, not even the greatest advantages of a lifetime money surplus or a supportive network of great friends and family or living in a beautiful place can save you.

So that’s the bad news. The good news is that we have had about the most amicable separation that one could hope for, we all still spend plenty of time together and our son is still in the same loving environment he has always had. And I would venture to say that both of us parents are going to come out of the experience much better off than we were before.

See, even the harshest moments come with a little golden key taped secretly onto their side, which you can use to unlock personal growth and greater future happiness. But only if you choose to accept that key and put it to use.

I’m not going to sit here and pretend that there weren’t plenty of harsh moments for both of us, both before and during this experience, with plenty more still to come. Because divorce, especially with children and family and traditions involved, is really fucking hard. 

But guess what? There are a lot of things in life that are hard. Being born and going through childhood is hard. Having babies of your own is even harder. School and jobs are hard, and money is really hard for most people. Relationships and friendships and dealing with bossy or dysfunctional friends or family or parents, personal habits and addictions, and everything else. Life is full of hardships.

But throughout all of it, we always have a choice about how to deal with them.

We can choose to focus on how unfair the situation is, how we were right and we tried our best and the world still mistreated us. And we can fight back, chasing the unfair person or company or situation and get revenge. We can make sure they know exactly why they were wrong and every way in which they were flawed.

And we can collect bathtubs full of sympathetic tears from our friends. And burn years on reliving the past, with a mixture of regret and vengeful self-righteousness and self-pity.

– OR – 

We can get right back to work on positive things to rebuild our lives. Improving ourselves through better habits and health. Building new relationships and nurturing old ones, and making sure we put out only positive energy to every person in our lives, including our ex-spouse. Building everyone up and never, ever tearing anyone down. Because they already do that plenty to themselves.

Like almost everything else in life, human nature draws us to the easier but more destructive of these paths, and only self-knowledge and self-discipline can lift us out of that rut and place us onto the more productive one. And even then, our human nature will keep pulling us back and we’ll make mistakes. And then we’ll have to drag outselves back out of that rut again. And put the happy face back on, and start behaving like an adult again.

As one friend puts it, “Being a divorced coparent is like being the co-owner of a business. Except it’s the most important company in the world and having it fail is not an option. So you have to treat your business partner accordingly.”

It has been a hard year. But at the same time, I feel we have both already learned so much, that it seems almost impossible that the experience won’t help both of us live better lives in the future. We are both doing well in new relationships and supportive of the other’s success in that important aspect of moving on.

But this is usually a personal finance blog. What does my romantic life have to do with your financial life? Not too much in the specifics, but quite a bit in general, because about half of all marriages end in divorce, and I have found it can be quite a tricky minefield to navigate.

First of all, there is the effect on your child raising, which is a parent’s most important job in life. In the best scenario, the end of a marriage is just a change to your love life, and you can continue to collaborate with your former spouse in a wonderful and open way. But the more conflict you have with that ex, the harder it is to cooperate, which leads to a worse experience for everyone – especially your children.

Then there is the social shame attached to divorce in our culture. While it could be looked at as the natural and peaceful end of an arrangement that has just run its course, other people will see it as a failure or a betrayal or a sin. In fact, when rumour of our separation got out, mutiple gossipy and negative and downright distasteful discussions formed around the Internet – on Reddit, other bloggers’ websites, even right here on my own forum. People who don’t even know you, will speculate on your character and your motives. It adds pain to an already difficult situation. The only way to survive this is to ignore it and focus on your own internal compass.

And finally there is the famed financial cost of divorce. It is legendary for destroying lives and fortunes, and indeed this is sometimes accurate. This is because conflict is a form of war, and war is the most expensive things humans have ever invented. And if you hire lawyers and other specialists to fight on your behalf, you just multiply the damage and the cost and stretch out the timeline.

But fortunately, like everything else, going to war is almost always a choice.

And if you don’t choose to fight, a divorce doesn’t have to cost much at all. Two people can peacefully collect up their financial and physical belongings and go their separate ways, and the only cost is in any duplication of possessions you choose to do, to replace things you formerly shared.

So the former Mrs. MM and I (mostly under her guidance!) worked through the do-it-yourself paperwork and paid a $265 fee to the county court for the divorce. I bought the lowest-cost house in the neighborhood, just a 2.5 minute bike ride down the hill from the family house, and I’ve already fixed it up and started hosting AirBnb rentals to help make it carry its own weight. I left the Nissan Leaf behind and chose not to buy a car of my own because I already have bikes.

We share plenty of time with our son and he is doing amazingly well – because we are choosing to make this new life about growth rather than conflict.

And most notably from the perspective of early retirement and financial independence, having enough money in advance has made this part of the split much less painful. Both of us can remain retired and continue to live in mortgage-free houses with investments easily covering our living expenses, while sharing child raising expenses. Although I chose to buy a house, nobody had to comprimise on quality of life or sell the expensive family house.

Because I enjoy moderate living for its own sake, my own cost of living will go way down. And because I continue to enjoy writing and working, my income may continue to stay high through this next stage of my life. I’ll continue to use the surplus for projects and philanthropy just as before, but the point here is that one’s relationship status does not have to affect their financial status.

As a long-time reader said to me in a recent email as we discussed our shared fate, having a solid financial cushion and low expenses and lifestyle flexibility, has made the best of an otherwise difficult situation – especially in not having to disrupt the lives of our kids.

Still, having been through it, I would not recommend divorce as a decision to be taken lightly. If you’re still married and there is even a chance that you want it to last, you might consider the following steps.

How to Stay Married

Read about how to stay married – early and often. Peruse the bountiful relationship advice section at Amazon and definitely check out the 5 Love Languages book that resonates strongly with so many people.

Most of us (myself included) drift through the years, assuming we are doing a perfectly good job at being married, while unintentionally making all the same mistakes that everyone else makes.

Bad idea.

You need to proactively nurture a close, loving relationship before things get too dire, and never take it for granted. Because many bits of damage you do to a relationship are permanent. You cannot nag or criticize your partner for years and expect them to forgive you when you eventually see the light. And for those being nagged: you cannot ignore the requests of your partner for years, and expect them to forgive you for that either.

There are so many things, like being on each other’s team in times of hardship, and being genuinely excited and greeting your partner warmly at the door if they’ve been away, that fall to the side in marriages as they get stale. Every time you let this slide, you do a bit of permanent damage. The effects are cumulative like erosion, not temporary like moods or weather.

So the bad news is that there is definitely such thing as “too late.” At some point, the idea of “working on” a marriage sounds like hell because you have been waiting for so long to be able to escape it.

But the good news is that it might not be too late for you, if you do want to stay married. And the benefits begin immediately – if both people are working at it, every positive gesture from one side will be met with a positive one from the other, and they can reinforce each other into a beauiful upward spiral.

But if You’d Rather Not Stay Married

The flipside of all this is that many, many people are currently married, who should not be and don’t want to be.

You may be two perfectly great people with irreconcilable differences, or there might be one great person stuck with an abusive user or loser, or any other combination in the grand spectrum of possible humans. And it is important for these people to hear that although divorce is always difficult, sometimes it really is the best choice and there should not be shame or blame associated with this choice.

Every human needs and deserves to be accepted and loved – even the people who drive us crazy and even those who treat us poorly. They are who they are and while you can’t change them, you can’t make the world any better by spitting venom back at them. So your best strategy is to carve them out of your life, while keeping your words as kind and respectful as you possibly can.

And heed the wise words of my own relationship and coparenting counselor, who noted that the first months after any divorce are the times of greatest conflict. And then it gets easier. And easier. And mellower and friendlier. And after a few years, many former divorcees have moved on so happily that can’t even believe that they were ever angry at each other. That’s entirely possible, and it should be your goal.

So lean on friends, talk to a relationship counselor even if it is just by yourself (yes, it’s really worth it!), read books, laugh, cry, learn mindfulness and meditation, eat salads, get outside and exercise, write more new things and build new things and new businesses and new relationships, and you will come through it better than ever.

That’s what I’ll be up to in 2019.  I hope your new year is even better!

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In the Comments: I have found it so helpful over this past year to share with others and realize that I am not alone in this. Feel free to share your own experiences and hopes and fears anonymously.

My comment form allows you to use a pseudonym so you can be anonymous while you let out the truth. And read the other comments, to see what other people around you are feeling.

And for those who have been through this and gotten through the other side and found happiness, go ahead and share your message of hope.

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* A bit of social approrpriateness that seems to be lost on certain forum participants and even other bloggers, who we won’t call out here. Please don’t be like them – using the Internet to publicly gossip about strangers helps nobody.

 

 

from Mr. Money Mustache


via Finance Xpress

A new year, and a new chance to improve your financial situation. We have seven resolutions to help you achieve financial freedom in 2019.

At the end of every year and the beginning of another, we tent to reflect on our lives and look for ways we can improve upon it during the next 12 months. For many of us, January seems like a reboot–a way to look at our lives with renewed energy and focus.

We all have different lifestyles, different income levels, and various financial goals. But nearly everyone reading this article can share some common resolutions. Building financial freedom is a long process; it’s a marathon, not a sprint. So, while the concept of New Year’s resolutions can be exhilarating, understand that these resolutions must turn into habits if they’re to have any sort of lasting impact on your future.

With that said, here are seven financial New Year’s resolutions for this year.

1. Create Actionable Financial Goals

According to the University of Scranton, about 92% of people who set goals for the new year don’t actually achieve them. To further this, 40% of people who write their goals down don’t even check whether they’ve achieved them. It’s safe to say we have an issue when it comes to meeting our goals. So what can we do?

First, you need to be realistic about the goals you set. If you have $100,000 in debt and only make $30,000 a year, it’s not realistic to say you are going to pay off all of that debt in a year. It just doesn’t make sense.

Instead, I would suggest developing S.M.A.R.T. financial goals–goals that are specific, measurable, action-oriented, realistic, and time-bound.

After that, let your friends and family members know about your commitments. One study showed that we tend to achieve more when we send commitments to friends versus just writing them down.

Finally, use the power of visualization to help you meet your goals. You can create something called a prosperity picture to help you visually track and achieve your goals. There’s science behind it–it’s crazy. There’s even a full book about it–Picture Your Prosperity.

Once you’ve developed realistic goals and shared them with others, step up your game by visualizing. These actions will help you stay on track the entire year. You may even have a little fun doing it.

2. Develop a (Realistic) Budget

Along the same lines as developing realistic goals comes developing a realistic budget. Too many times we open an Excel document and type out all of our expenses, then figure out exactly how much we’re going to spend in each category.

It’s okay, we’ve all done it. The problem with these types of budgets is that they’re not budgeting at all. They’re forecasting. And the moment we blow a category out of the water by spending too much, we quit.

Then there are the categories. Oh, the categories. So many of us are perfectionists and we try to map out every possible category in which we could possibly spend money. Then sub-categories upon sub-categories. By the time you get to actually tracking expenses, you’re exhausted because you don’t know where to categorize.

Like YNAB founder Jesse Mecham says in his book, You Need a Budget, we need to keep things simple and budget only the money that we have. And when we screw up–it’s okay. We just need to roll with the punches.

So instead of crafting a giant forecast of what you may or may not spend each month for the year, create a real budget. Only budget the money you have right now. When new money comes in, assign it to a category. Keep your categories simple.

Be realistic about it, too. If you value eating fresh, organic produce, you can’t expect to skate by on $50 a week in groceries. You may need to beef up that food budget (yes, pun intended) for the month.

Also, make sure you’re including a savings category in your budget. I’ll talk about automating below, but you won’t be able to achieve any real long-term financial success without the addition of a savings plan.

3. Do a Complete Credit Review

As a consumer, you’re entitled to a free copy of your credit report, from each of the three major credit reporting agencies, every year.

So if you plan it right, you can get a free copy of your credit report from TransUnion, Equifax, and Experian over the course of the year. Space it out and get one every four months or so, that way you’ll always have a free update on your credit multiple times throughout the year.

An easier way of doing this is by using tools like Credit Karma or Credit Sesame. You can monitor your credit report for free using these tools.

The point here is to get a full run-down of what you owe and where your debt is at. You also want to check in on your credit score and see if you have any negative marks you’re unaware of on your credit report.

Once you do this and have a clear understanding of where your credit stands, you can create a plan (or a goal) around improving or maintaining your credit score.

4. Try a Spending Fast

Here’s what to do:

1. Create a list of needs. List out things you absolutely cannot live without. Think rent, clothes, food, and other necessities.
2. Double check your needs. Odds are you listed a few “needs” in step 1 that may be more like wants–or at least needs you can live without. Try to get rid of at least one of them.
3. List out any extras that you want, but aren’t needs. Consider these “bonuses.”
4. Set a goal for what you’ll do with the extra money. Will it be paying off debt? Saving for a home? Whatever it is, write it down.
5. Only spend money on things that are listed as needs. You’re entitled to one “want” per month–within reason (i.e., don’t spend $300 on a want–keep it cheap).
6. Everything else, dump toward your goal. Whether it’s savings or paying off debt–put every extra dollar you have toward that goal.

This is just an example of how you can do a spending fast. You can modify the “rules” of the game however you want, and for whatever works for you.

The point is–you cut out unnecessary spending and you make it really hard to do. You can do this for a week, a month, or a year. Try something out and see what fits.

5. Improve Your Net Worth

Many of you will receive a pay raise this year. Think very critically about how you set aside that money. If you’re fiscally irresponsible and have a tendency to spend, consider an increase in a paycheck withdrawal into a 401(k), health savings account, or IRA.

Up your retirement savings contribution

According to CNBC, the median savings for all working-age families in the U.S. is only $5,000. It’s time to start increasing your retirement contributions, as much as you might think it’s painful to do. Even if you increase your contributions by 2 or 3%, it could mean a big change.

Excluding any type of company match (since I’m assuming you’ve already contributed enough to at least get the match), a 2% increase on a $50,000 salary is an extra $1,000 per year. Over 30 years at a 6% average rate of return, that extra 2% equals about $89,000 down the road. That’s significant for just a $38 addition each bi-weekly paycheck.

Speaking of matching, you should be taking full advantage of your employer’s retirement matching, if they have one. If your employer will match up to a certain percentage of your earnings contributed to your retirement account, make sure you contribute that amount. To do otherwise is basically to short-change yourself out of free money that will be a huge benefit during retirement.

Fully fund your IRA

This one is a bigger deal than many folks think. This year, the maximum contribution for those under age 50 is $5,500. Those 50 and over are able to contribute up to $6,500 per year.

Younger readers take note: the dollars you invest today can multiply into thousands thanks to the power of compounded earnings. Experts agree that waiting to start saving for retirement means saving much more in later years to make up for opportunities lost when you were young, so open an IRA account and start saving today.

Increase other assets and cash flow

Consider other avenues to increase your net worth as well. This might be a time when you need to be proactive about things like a career change, a move to an area with a better cost of living, or looking into side projects that can earn you money.

A lifestyle change might even be in order. Maybe you trade in your luxury car for a cheaper, more reliable vehicle. Perhaps you consider eating out less, or any of the other popular (and sometimes cliché) resolutions. Again, be consistent and deliberate with how you go about this.

These two resolutions can combine into one simple one: increase your net worth this year. The combination of debt and cash flow make up your net worth. While it’s possible to both reduce debt and increase cash flow, if it makes things easier for you, just pick one and focus on that.

If you change nothing with your income but cut your grocery and restaurant bill in half each month, you’ll still be increasing your net worth. And once you feel consistent and in control of that one resolution, you can add more, understanding that you have the willpower and capability to check them off.

6. Build a Plan to Pay Off Debt

This may seem common-sense, but it really is number one: work on reducing or eliminating your debts.

Debt comes in many forms, be that student loans, credit card balances, car payments, or a home mortgage. Conventional wisdom would dictate you focus your efforts on the most damaging debts, like high-interest credit card balances or private student loans. It’s important to understand the massive psychological impacts of carrying debt and the corresponding benefits of reducing it.

Maybe you have a small bill that you’re paying off monthly. It’s not a particularly high-interest rate, and it’s not a large balance, but it annoys you. The satisfaction of having that struck from your balance sheet can have a significant impact on developing healthy financial habits.

No matter how you do it, be consistent about paying down debt. Set up automatic transfers from a checking account, or schedule payments as soon as income hits your wallet. Making one-off payments here and there can be mentally draining and easy to forget or ignore. A consistent cadence, however, can bring peace of mind and a sense of organization and purpose.

7. Research Major Expenses, Then Automate as Much as Possible

David Bach, the author of The Automatic Millionaire, has a simple philosophy for getting rich. Automate.

His basic advice is to automate your savings and live off of everything else. His book supports this philosophy with stories and data, too. He’s the one who originally talked about the “Latte Factor”–meaning a latte every day will add up to a huge amount over time.

But it goes beyond this. You should be researching major expenses first. Some of these big expenses can be automatic already–and you need to break that habit first.

Everyone thinks of savings as little things we need to go without. “Skip the latte,” conventional wisdom says. If you’re spending $5 every day on a mocha skim frappe, then you might be sabotaging your financial goals.

But, you may be sending more dollars out needlessly each month on larger expenses. This year, make it a point to review what you’re spending on phone, the internet, car insurance, life insurance, and other big-ticket items. If you’ve thought about refinancing for a lower interest rate on your home, make this the year you research refinancing to see if it can save you money.

Once you’ve done this, it’s time to automate.

I’m with David Bach in saying you should automate any and everywhere possible. Automate your savings before your bank account even sees it. Set up a direct deposit to a savings account so it’s taken out of your paycheck before it hits your checking.

You should also automate all of your bills. If you’re still paying bills manually online or (I can’t even believe I’m going to say this) still using checks–stop. Automate, automate, automate.

You’ll save time, money, and headaches. And you’ll get rich much quicker.

Bonus: Tools to Help You Track Your New Year’s Goals

Now that you’ve started to think about your financial resolutions for the new year, it’s time to accelerate the process by using some tools to help you along the way. Here are our favorites:

1. Personal Capital

Personal Capital is by far, our favorite money management tool. It’s free and gives you the ability to track and monitor an important number we mentioned above–your net worth. You can easily sync your accounts to Personal Capital, track your money and get an accurate read on your net worth. Being able to physically see that number will help inspire you to pay down your debt, save more and actually want to grow your net worth.

One way to increase your net worth is by investing. When you upgrade to Personal Capital’s Wealth Management service, you’ll also be able to easily manage your investment accounts, your bank accounts, retirement accounts and your budget with one easy-to-use dashboard. Personal Capital’s Wealth Management team can manage all aspects of your investments. But even if you’re not ready to jump into investing just yet, it’s worth your time to get started with the free version.

2. Mint

Mint is another free online money management tool that brings together all your financial accounts in one place. With Mint, you can monitor multiple accounts like checking, savings, investments, retirement, and credit cards. You can set up a budget, elect to receive bill reminders, make goals, and receive free savings advice.

While you can monitor your investments on Mint, you won’t be able to actively manage your investment accounts. So if you choose to use Mint for their budgeting features, you may also want to automate your investing with a tool like Betterment. Ideal for those wanting to invest money each month, Betterment gives you access to an array of ETFs that instantly diversifies your portfolio. Betterment is extremely easy to use (I have an account), and you can track your Betterment investments from Mint.

3. Joe’s Goals

Joe’s Goals is an online goal tracker that helps users develop good habits. This is a simple tool to use and is designed like a calendar. You just set up your goals and then track them on a daily basis. A daily score is automatically calculated for you so you know how you are doing.

With this tool you don’t just track the positive, you also track the negatives that are keeping you from accomplishing your goals. The negative goals are things you want to get rid of or habits you want to break. For example, if you have a goal of eating out less, but you give in and you eat out, you track this with a negative mark. Your negative marks are visible along with your positive marks and are calculated into your daily score giving you an overall picture of how you did on any given day.

4. Coach.me

Coach.me has two features that will help you develop new habits and keep your goals. The first is their app. It’s pretty straightforward in that you create a habit or a goal and track it every day (or whatever frequency you choose). Each time you meet your milestones, you can get “high fives” from friends, family, or the broader Coach.me community. One user said the following about the app:

“Coach.me helps me change my life, step by step. Every release gets me more excited about how good it is at providing accountability, community and motivation for my goals. It helps me to consciously learn and grow every single day.”

You can also get habit coaching for as little as $15 per week. According to their website, “over 700 coaches are ready to help,” and you can “message your coach through our app or arrange a phone consultation.”

5. Strides

Earlier, I mentioned the benefit of using S.M.A.R.T. goals for your financial resolutions. Strides is an app that uses that methodology and lets you track goals as well as habits you want to form. One of the things I love is the ability to break your goals down into smaller pieces. Sometimes our goals (i.e., paying off $100,000 in debt) are a little lofty–so it’s nice to break it up into smaller chunks.

Conclusion – Now What?

Financial planning isn’t particularly difficult on a personal level. A budget can be drawn up with little effort, and you can gather a snapshot of your financial state reasonably quickly. Taking a look at credit card statements, paycheck stubs, and receipts can help you understand the money you’re bringing in and where it’s going. At its most basic level, a financial plan can merely be a budget, so long as you stick to it.

So, if you don’t have a budget, start there. Define as many categories as you feel necessary to portray where you spend your money accurately. Then, understand how much money you pocket each month, and where that money ends up going. Finally, establish your spending limits in each of those categories, so that the amount of income you earn each month is less than what you spend.

Now comes the hard part: sticking to those numbers over the next week, month, year, and decade. Inevitably, the hope is that your budget evolves, enabling you to direct your income to other areas. Your plan will regularly need refining. The worst thing you can do is to make lifestyle changes that increase frivolous spending.

Look at, and really evaluate, the resolutions above: to reduce your debt and increase your assets. Are you debt-free? Are you maxing out a 401(k)? How about an IRA, or maybe an HSA if you’ve got one? If you have kids, are you contributing to a college savings plan, or are you otherwise setting aside money for their future?

No, this year might not be the year that you reach the summit, achieving “financial freedom.” But, building wealth takes time, patience, and effort. It starts with laying the proper foundation, taking those first steps, and then following through.

At face value, these resolutions seem simple… perhaps even too easy. However, the most straightforward resolutions can often be the most difficult to achieve. Start here, building the basic habits that will follow you throughout the years. You’ll be glad you did.

I hope you’ll join me and many others who are looking to lead a fulfilling life, financially and personally. Here’s to health, wealth, and happiness in the new year!

Topics: debt • financial planning • Money and Life • Money Management • Personal Finance

The post 7 Resolutions to Help You Achieve Financial Freedom in the New Year appeared first on The Dough Roller.

via Finance Xpress

Do you feel like your life isn’t going the way you want? And, do you want to start to live life to the fullest?

If you want to make a change for the better in the new year, one that will help you live life to the fullest, today is the day to start living the life you want.

2019 is the year for you to change your life for the better.

No matter how life is going for you, I believe that we are all in charge of our life. And, even when bad things happen, we get to decide how we handle those setbacks. Because of that, I believe that everyone can live life to the fullest like they want to.

If you feel that things are not going the way you want them to go, then change it! You can improve your life and how you perceive it by changing your actions and reactions.

For that reason, I’ve packed this post with my best and most actionable tips for 2019 so that you can learn how to live life to the fullest in the new year. I know that you can make this new year your best ever. Enjoy, and I hope this year is a great one for everyone.

Related reads:

• 12 Work From Home Jobs That Can Earn You $1,000+ Each Month
• Are You Making Your Life Difficult? 18 Ideas To Simplify Your Life in 2018
• The $20 Savings Challenge
• 8 Things To Sell To Make Money

How to live life to the fullest in 2019!

 

1. Set 2019 goals and reach them.

To make 2019 a great year, you'll want to set goals so that you can live life to the fullest and reach your dreams. Those who set goals are much more likely to be successful than those who do not.

To reach your goals in 2019, you'll want to:

• Review the goals you set for the previous year and think about how you achieved them or why you weren’t able to.
• Make sure your goal is SMART.
• Write down your goals and objectives for 2019.
• Create a plan to reach your life goals.
• Break your goal apart into smaller goals.
• Keep track of your goal setting progress and make changes (if needed).
• Find small ways to stick to your goal.
• Find ways to motivate yourself when setting goals.
• Make reaching your goal a friendly competition.

Read further at The Best Way To Set Goals And Reach Success.

 

2. Be thankful for what you have.

The next time something negative is bringing you down, I suggest you try to remember all of the good things that you already have in your life. You already live a great life, and to live life to the fullest, you just need to remember that.

This is the power of positive thinking at its best.

You can be thankful for your family, friends, your job, a past experience, opportunities, and more.

Thinking about everything you are thankful for can make something negative seem very trivial. You may even laugh at yourself for being so negative!

 

3. Smile more.

Smiling is contagious and is very important if you want to live life to the fullest in 2019!

Studies have even proven that smiling can improve your mood, even if it's a fake smile.

Smile at the next person you pass, smile when you’re talking on the phone, smile when your loved one comes home, smile in an interview, and more.

 

4. Don’t be afraid of what other people think.

If you want to live life to the fullest and on your own terms, then stop caring what other people think of you and your life.

I used to really care about what other people thought of me, but I’ve been able to let go of that and now I couldn’t be happier. This has really helped me learn how to live a great life.

You shouldn’t let the opinions of others affect you, drag you down, control you, and so on. Like I always say, “Who cares what others think!?”

The only person who should get to tell you what kind of life to live is you.

 

5. Create a budget in 2019.

I have heard many people say that budgets are for boring people, but budgets can help you take control of your finances. That can help you reduce stress, allow you to reach your dreams, and start to live life to the fullest.

However, not many people have a budget. Actually, only around 68% of households in the U.S. do not prepare a budget.

This is sad because the average family carries a lot of financial stress. Most people have student loans, credit card debt, a mortgage, car loans, and possibly other forms of debt.

Having a budget is crucial if you want to live a great life.

Read more at The Complete Budgeting Guide: How To Create A Budget That Works.

 

6. Spend less time watching TV.

I talk about cutting back on TV a lot on Making Sense of Cents because the average person spends too much time watching televisions, 35 hours in fact!

35 HOURS! Can you imagine what you could do with even half of those hours every week!?

TV can be a big time waster and can be detrimental if you want to live life to the fullest.

We currently only have a digital antenna for TV, and we haven’t watched any TV since this past summer. We’ve been more productive, have spent more time exploring, and more!

Instead of turning on the TV the next time you are bored or looking for something to do, you may want to do something more worthwhile, such as working out, spending time with friends and family, reading a book, and so on.

 

7. Be more confident.

Learning to be confident can be hard, but it just starts with reminding yourself about the things you are good at, the people who care about you, and how meaningful you are.

Unfortunately, a lack of confidence may:

• Prevent you from believing in yourself.
• Lead to being too shy to do what you want or need.
• Force you to do things you hate.
• Cause you to ruin a meeting, a job possibility, and so on.
• Lead to unhappiness.

On the flip side, confidence can open many doors for you, and it is one of the best ways to live life to the fullest.

It can lead to getting the job you want, making more money, reaching your dreams, meeting new people, networking, traveling the world, and more.

Read more at Be More Confident And Get What You Want In Life.

 

8. Start investing.

In 2019, I want you to start investing if you haven't done so yet. It’s one of the best ways to improve your life for the future, and you can even start investing with little money.

You should start investing so that you can:

• Retire one day.
• Prepare for unexpected events in the future.
• Allow your money to grow over time.

Read more at The 6 Steps To Take To Invest Your First Dollar – Yes, It’s Really This Easy!

 

9. Be kind to others.

Being kind to others is something you should always be doing, and it will help more than just you live a great life. Being kind can open your mind to new people and experiences, it can help you stop dwelling on negative things in life, brighten someone’s day, and more.

You can be kind to others by doing things such as:

• Say hello to every person you walk by today.
• Open doors for others.
• Smile at strangers.
• Help someone with their groceries.
• Volunteer somewhere.

Related post: 50+ Random Acts of Kindness.

 

10. Look for new ways to save more money.

Looking for ways to save more money may allow you to pay off your debt faster, improve your financial habits, help you reach your dream sooner, and more. And, all of those things will help you live life to the fullest because you won’t be stressed out by your finances.

Plus, there are many, many different ways to save money. You don't need to sacrifice your favorite things or live an unhappy life in order to save money.

It's all about being realistic and finding a good balance between saving and spending.

Read more at 30+ Ways To Save Money Each Month.

 

11. Take a risk.

This is something that I am trying to get much better at because I realize that fear might be holding me back from being able to live life to the fullest.

2019 is the year to get over our fears and take more risks!

Doing something risky every so often can get your heart beating and your adrenaline rushing. This can really make you feel alive and feel like you are in charge of your life.

 

12. Realize that it's okay to fail.

If you're taking risks or trying new things, there is a chance that you may fail.

The thing about failing is that it’s completely okay!

Plus, you often learn even more about yourself when you fail than when you succeed. That’s because to overcome your failures, you’ll have to assess where you went wrong and how you can make it better.

You won't know if something will work or not unless you try it, and sometimes failure is just a part of the learning process.

Part of learning to live life to the fullest is failing every now and then. Accept that fate now and you'll be better prepared when it happens.

 

13. Exercise more in 2019.

Exercising is great and it can improve your life because it can make you healthier all around, both your body and your mind. You will feel more confident, your mind will be clearer, you will be able to better cope with stress, and more.

Whenever I’m feeling a little stressed out, tired, or even grumpy, I try to fit in a workout. I know that even a small workout is better than none, and it usually makes me feel so much better!

 

14. Say yes.

If you have gotten stuck in your comfort zone or are avoiding new things and people, then you may want to try saying yes a little more often.

Saying yes can open you up to more situations, help you grow as a person, and help you live life to the fullest.

 

15. Say no.

Sometimes saying yes to everything can make you feel like you are being walked on or spread to thin, and neither one of those feelings are good.

If saying yes to everything is making you want out pull your hair out, then try saying no every once in a while.

Saying no may allow you to have more time to focus on you and what you truly want from life.

 

16. Don’t let life pass you by.

Sometimes we have to force ourselves to slow down and appreciate what’s happening around us so that we don’t let our life pass us by.

Focus on living in the right now rather than thinking things like, “Oh, in 10 years life will be so much better because of such and such.” You’ll end up just letting your life go by without ever thinking about the present.

Don’t wait 5, 10, or 20 years to start living your life, do it now! And, that doesn’t mean you have to spend all of your money doing so either.

You can live life to the fullest by simply being present and focusing on the amazing things that are happening right now.

 

17. Cherish moments with loved ones.

You should never take a moment for granted with those you love. Take time to see your family and friends, talk to them on the phone, tell you love them, and let them know that you are there for them.

Your loved ones offer you some of the most amazing moments we have, and you just never know what may happen to you or them.

This will help you live life to the fullest and will help your loved ones do the same.

 

18. Pay off debt.

Paying off your debt can lessen your stress levels, allow you to put more money towards something else (such as retirement), stop paying interest fees, and more.

Debt might be the thing that has been holding you back from being able to live life to the fullest, so let’s make 2019 the year that you finally start eliminating your debt!

Read more at How To Eliminate Your Debt.

 

19. Increase your credit score.

If your credit score isn’t that great, then it’s important that you start trying to increase it. Your credit score is important because it can affect your interest rate, your ability to get some jobs, whether or not you are approved for a loan, and more.

Fortunately, there are easy things you can do to increase your credit score. You should watch your utilization rate on your credit cards, pay your bills on time, watch the amount of hard inquiries on your credit report, and so on.

Just a few percentage points can mean the difference of hundreds of dollars each month.

That means you can wind up saving THOUSANDS each year just by increasing your credit score. You can check your credit score for free with Credit Sesame.

 

20. Don’t keep up with the Joneses.

Everyone has experienced the feeling of wanting to keep up with others, whether you are five years old and want that new toy everyone is playing with, or if you are 50 years old and are feeling the need to upgrade your house, car, etc.

The problem with this is that keeping up with the Joneses can actually make you broke and prevent you from being able to live life to the fullest.

When trying to keep up with others, you might spend money you do not have. You might put expenses on credit cards to (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.

This can lead to an excessive amount of debt and potentially set you back years with your financial goals, if not decades.

 

21. Stop letting money control you.

If you want to gain control of your life and make 2019 the year you learn to live life to the fullest, then you need to gain control of your money.

This means you need to stop worrying about all of the things that are holding you back, many of which are included in this blog post.

 

22. Do what YOU want to do.

What makes you happy, excited, joyful, and motivated? That’s what you should be doing with your life (as long as it’s legal)!

Go for that job you’ve always wanted, finally start a family, and make a plan to take that adventure you’ve been dreaming of. Whatever it is, just go for it!

Stop thinking about what other people want you to do and start listening to your heart. Who cares about what others think? If you spend all your time thinking about others, you will just be wasting a ton of time!

Now, I will tell you that to really live life to the fullest, it’s best if you do what you want to do on a budget!

 

23. Read as much as you can.

Books are one of the best ways to learn more and explore the world around you. Spending just a little time everyday with a book is great for many reasons, such as:

• Providing knowledge.
• Improving your memory.
• Opening your mind.
• Bringing out your creative side.
• It is affordable entertainment.

And more!

 

24. Think positively.

Being positive is one of the best ways to live life to the fullest because it can change your outlook on everything.

Being positive can help motivate you, it can help you waste less time on regret, and more.

Related article: Why I Believe Being Positive Can Change Your Financial Situation And Your Life.

 

25. Don’t waste time on being negative.

You are wasting your time when you are being negative.

Instead of wasting your energy on things like dwelling on regret and/or gossiping, you can be more productive by using this time for things that actually matter.

By being more positive, you will be able to simplify and live life to the fullest.

 

26. Find free forms of entertainment.

If you find that you are spending hundreds of dollars a month on entertainment, you should know that there are many ways to have fun for cheap.

There is no reason to go into debt or add more debt to have fun. There are parks to explore, friends to visit, and more!

There are many ways to have fun for cheap. Check out How To Have Frugal Fun for some of my ideas.

 

27. Get enough sleep each night.

According to the National Sleep Foundation, the average person needs around 7.5 hours of sleep in order to “function at their best.” However, the average person actually only sleeps around 6.5 hours.

Lack of sleep, according to HealthLine, can lead to issues such as:

• Impaired brain activity
• Memory problems
• Moodiness
• Depression
• Cold and Flu
• Type 2 Diabetes
• Weight gain
• High blood pressure
• Heart disease

Due to this, you should aim for 7-8 hours of sleep every night. It will help you be more productive, become healthier, and live life to the fullest.

 

28. Find something good in a negative situation.

Even when something bad happens, there may still be some good in those times. Even though it can be hard to think about the positive when you are experiencing something negative, finding a small amount of positivity will help you live life to the fullest.

Through the power of positive thinking, you can use a bad experience to learn something new about yourself, to realize you made a mistake, to come up with a new plan you never thought of before, and more.

Taking the negative and turning it into a learning experience can help prevent a negative situation from happening again. Or, maybe next time you’ll be more prepared!

 

29. Travel to a random place.

There are many wonderful places in the world, and I wish I had the chance to explore them all. Traveling to a random place can help improve your confidence, open you up to new experiences, and may even make you a little uncomfortable, which is okay!

Plus, doing something random will take you out of your comfort zone so you can live life to the fullest.

 

30. Create a bucket list.

If you don’t have a bucket list, I recommend creating one in 2019!

A bucket list is where you list all of the major goals you want to meet, places you want to visit, and things you want to do in your life.

Creating a bucket list can give you the motivation you need to work harder towards your dreams, it can give you a sense of direction, and a great feeling of fulfillment as you cross things off of your list.

 

31. Welcome the unknown.

Some people never get out of their comfort zone and explore the unknown because they are afraid of it. However, you’ll never know what your future holds unless you try new things and welcome different experiences.

When looking forward, you should make a realistic plan for what may happen once you start taking steps to reach your goal. This may make the whole thing much more relaxing and less stressful because you will be more prepared for the unknown.

For example, if you want to leave your job for something else but are afraid of what may happen, one thing you might want to do is to make sure you have a well-funded emergency fund. This way, if it takes you a little longer to find your dream job or dream life, your emergency fund will be there to help ease some of the stress.

 

32. Be open to new things and tackle your fears.

When was the last time you did something new? It’s too easy to get complacent when you actually need to branch out every now and then.

Yes, stepping outside of your box can be tough, but what if it completely opened your eyes and changed your whole outlook on life? Wouldn’t that be amazing?

If you want to learn how to live life to the fullest, this is something you need to do every now and then. You could even give yourself a goal to try something new each day, each week, or each month.

 

33. Become more organized in 2019.

Being unorganized can waste a significant amount of your time and will prevent you from being able to live life to the fullest. It also leads to late fees, stress, lost items, and more.

Here are some surprising statistics I found from Simply Orderly about being unorganized:

• The average person spends 12 days per year looking for things they can’t find.
• Every day, the average office worker spends 1.5 hours looking for things.
• In a recent survey, 55% of consumers stated that they would save anywhere from 16 to 60 minutes a day if they were organized.
• 23% of people pay bills late and have to pay late fees because they are unable to find their bills.

 

34. Be open minded to live life to the fullest.

Being open minded is a great quality. There are billions of people in this world and everyone is different, so instead of judging others and expecting things to go one way, we should be more open minded.

And, everyone can stand to be a little more open minded.

Being open minded can help you accept changes, love others, be optimistic, learn from others, and most of all, it’s relaxing. Instead of worrying about what everyone else is doing, you can relax, have less stress, and just accept those around you.

 

35. Finally get rid of cable.

The average monthly cable bill is over $100. By next year, the average cable bill is expected to be around $200 a month.

You can read more about cutting cable here and how to save money by doing this. I recommend getting a digital antenna so that you can receive local channels for free!

We don’t pay for any form of TV (not even Netflix!), and we LOVE it.

 

36. Drink more water to live a healthier life.

According to Lifehacker, the average person should drink around 9 to 13 cups of water per day. This is just a baseline, though, as if you exercise or are in hot weather, then you should consume more.

However, not many people get anywhere near this amount of water.

Drinking water can help you lose weight, perform better, be happier, prevent headaches, help your skin, and is a must for your body to survive.

To drink more water, you can start by carrying around a water bottle, and you will be surprised by how great drinking water will make you feel.

 

37. Make more money.

Here on Making Sense of Cents, I spend a lot of time discussing extra income, side hustles, side income, and how to make money online. I believe that earning extra income can completely change your life in a positive way. You can stop living paycheck to paycheck, start to pay off your debt, live life to the fullest, and more, all by earning extra money.

In fact, because of earning extra income from my blog, I was able to pay off $38,000 in student loans within 7 months, I was able to leave my day job in order to pursue my passion, travel full-time, and more!

Related blog posts:

• 75+ Ways To Make Extra Money
• 100+ Extra Income Ideas
• 8 Things To Sell To Make Money
• How To Start a Money-Making Blog Free Course

 

38. Keep a journal.

While I don’t have a journal, I do have this blog, which acts as a journal in a way. Keeping a journal can help you reflect on your past, and it also allows you to see the progress you are making towards your goals and dreams.

Plus, spilling your heart out every so often is great for your mind and soul.

Related tip: If you're looking for a life planner, I highly recommend checking out Erin Condren to see their selection of great life and monthly planners. This can be a great way to stay motivated so that you can reach your dream life!

 

39. Spend less time on social media.

The average person spends many, many hours on social media each week, and it can prevent you from being able to live life to the fullest.

Between Pinterest, Facebook, Twitter, Instagram, Snapchat, and many others, it can be quite easy to waste your entire day.

If you find that you are spending too much time on social media, you may want to shut down the social media accounts that you are spending too much time on. You can even create a time block so you can’t access your accounts during certain periods of the day, and so on.

 

40. Downsize your home.

Downsizing your home may sound hard, but it can help you:

• Save money. In some cases, a bigger home can cost more due to higher utility bills, more clutter being bought, higher insurance, more maintenance and repairs needed, higher purchasing price, etc.
• Have less clutter. The bigger your home, the more likely you’ll have empty rooms that you feel the need to put stuff in. Now that we live on a sailboat, we are much more mindful of what we buy. We think about every purchase in terms of weight, size, where we can store it, and more.
• Spend less time on maintenance and repairs. If all other factors between two homes are the same (age, location, etc.), a bigger home is more likely to take up more of your time and money due to more things breaking.
• Spend less time cleaning. A larger home is going to take a lot more time to clean than a smaller one.

 

41. Have regular family money meetings.

Talking about money and conducting regular budget meetings is an important task for every family and serious relationship to take part in. A family who has regular money talks and budget meetings is more likely to be financially successful and happier than a family who doesn’t.

Regular money meetings can lead to better communication between family members, a more unified financial goal, family members being more involved and motivated, and more.

Read more at Family Budget Meetings – Yes, You Need To Have Them.

 

42. Don’t be afraid of success.

When some people become successful and reach their goals, they may sometimes start to feel guilty.

Yes, I know, this might seem weird. However, I understand this.

I sometimes really dislike telling my friends and family how great life is and how much I love my business. I often feel guilty because I see how stressed out others are with their jobs, their debt, and more. But, I just need to remember that a mixture of luck and hard work led me to where I am. Everyone has their down points, and I had them as well.

Instead of being ashamed, you should be proud of your accomplishments and success.

 

43. Have an emergency fund.

An emergency fund is something that I believe everyone should have. However, according to a report by Bankrate.com, 26% of Americans have no emergency fund whatsoever.

This same report stated that only 40% of families have enough in savings to cover three months of expenses, with an even lower percentage having the recommended six months worth of savings.

This is frightening to me, as having an emergency fund can really help you get through tough parts of your life.

An emergency fund can help you if you lose your job, if your hours are cut back, if you have an unexpected expense, and so on.

Read more at Everything You Need To Know About Emergency Funds.

 

44. Stay motivated to save money.

Even though I love saving money, I sometimes just want to spend money on any and everything.

I’m sure I’m not alone either.

While the frugal life can be great, it’s not always easy. Some have large amounts of debt to pay off, others find it hard to stick to a budget, and more.

Finding financial motivators will help you continue to work hard towards your goal, even when it seems impossible. Without motivation, you might give up on a financial goal quite easily. This is why it’s so important to learn how to stay motivated to save money so that you can live life to the fullest.

Read more at Paying Off Debt And Budgeting: Tricks For Staying Motivated.

 

45. Stop being afraid of your past.

Just because you may have failed at something in the past, this should not prevent you from aiming for your goals. I know people who have completely given up with reaching for hard goals because they weren’t successful in the past. However, that can rob you of the opportunity to live life to the fullest.

If you have failed in the past, then you should use those mistakes as learning tools for the future.

How will you live life to the fullest in 2019? What tips on how to live a great life do you have to share with us?

The post 45 Ways To Live Life To The Fullest in 2019 appeared first on Making Sense Of Cents.

from Making Sense Of Cents


via Finance Xpress

Millennials are making their mark by doing things differently. But while their intentions may be good, the millennial way may not always be the best way. So why are millennials using prepaid credit cards over traditional credit cards? And is this a wise choice?

Headlines about millennials “killing” various products and industries are so common these days that there are entire Twitter threads devoted to poking fun at them. We millennials (yes, I am one of them) have somehow managed to kill everything from fashion to the 9-to-5 workday to bar soap. And now we have a new murder to add to our rap sheet: credit cards.

A recent report from the Philadelphia Fed shows millennials ditching credit cards en masse in favor of prepaid cards. Prepaid cards, which used to mainly be used by low-income and unbanked people, are a darling of budget-conscious millennials. The report showed that even millennials with household incomes of $100,000+ reported using prepaid cards in huge percentages.

So why are we using these cards–which come with some serious disadvantages? And if you’re a millennial who uses prepaid cards, what might you try instead? Let’s dig into the data.

The Why Behind Prepaid Cards

You might think that millennials are using prepaid cards because they don’t trust big banks. But, actually, we’re more likely to trust banking institutions than our parents. So why are we flocking to prepaid cards? Of course, the reasons will vary depending on the individual. But here are a few reasons for choosing prepaid cards:

A Budgeting Tool

Despite rumors to the contrary, millennials haven’t killed the budget yet. In fact, we’re pretty good budgeters. We spend our money a lot differently than previous generations because we value different things. But we do tend to plan how we spend our money. A Bank of America survey showed that 73% of millennials have a budget and stick to it most months.

One way many millennials budget is by physically (well, electronically) separating our money into budget categories. We may not opt for a Dave Ramsey-style cash budget. (Honestly, the only cash in my car or wallet at the moment is the quarter I save for the shopping cart at Aldi.) But we may separate money into different accounts–or onto different prepaid cards–for spending.

For instance, if I move my “fun money” to a prepaid card each month, it’s hard to over-spend. Once the money runs out, it’s gone. Prepaid cards can help keep me more accountable to my budget.

Related: Free PrePaid Credit Cards

Low Risk

Millennials are pretty risk-averse when it comes to our money. And we’ve seen first hand what happens when people’s spending gets out of control because of high credit limits. Boomers have more credit cards than millennials and charge a lot more on them. Often because of high student loan payments, millennials know they can’t afford to make payments on a credit card. So rather than risking running up a balance they can’t pay off, they just avoid them altogether.

Prepaid cards, by their very nature, require you to have the money up front. So they keep spending in check and give you the convenience of swiping plastic without the risk of overspending.

Unable to Get a Credit Card

Some millennials turn to prepaid cards because they actually don’t qualify for a real credit card. This may be because they don’t have much credit history, or they generally don’t borrow much. It may also be because millennials are still struggling to find stable employment, in some cases. Without a solid income to report, credit card companies are less likely to extend credit.

Why Not Prepaid Cards?

Honestly, millennial reasons for turning to prepaid cards seem strong. They want to stick to their budgets and not risk overspending. That’s a gfood thing, right?

Right. Except that prepaid cards come with issues that many may not consider when deciding to use them. So why should you consider avoiding prepaid cards, even when you think they’re a good tool? Here are the four main reasons:

They’re Expensive

Prepaid cards come with loads of fees, especially compared with credit cards or debit cards. You don’t have to pay interest, of course. But you’re paying money to access your money. For instance, you might pay a fee every time you spend something on the card. Or you might pay money whenever you load the card or get cash back off of it from an ATM. These fees may seem small, but over time, they really do add up.

They Don’t Have the Same Protections

You’ll get some basic fraud protection with a prepaid card. But you don’t get the same protections you get with a credit card or a bank account. The fraud coverage isn’t as robust, for instance. And not all prepaid cards are FDIC-insured, like your checking account should be. Consumer protection advocates are trying to get the same protections for prepaid card users that bank accounts have, but this isn’t the same case.

Their Terms Can be Confusing

This is, of course, not unique to prepaid cards. Bank accounts and credit cards can also have confusing terms. But prepaid cards are less regulated, so their terms can be even more confusing. Plus, if you’re buying a prepaid card in a store, you may not have access to all of its terms and conditions on the outside of the package. Most of the fine print lives inside the package, and you can’t see it until you’ve paid for the card.

No Rewards for Spending

Finally, prepaid cards don’t typically offer rewards for spending like credit cards do. Using credit cards wisely can be a great financial move that gives you access to a variety of rewards–travel points, cash back, and more. Plus, credit cards offer a variety of other benefits, including things like additional travel insurance and other features.

What’s the Solution?

So if you’re a millennial currently using a prepaid card or two, what should you do instead? Here are some solutions to consider:

Open a Bank Account

First, if you’re using a prepaid card because you don’t have a bank account at all, get one, and stat! Having a checking and savings account is an essential part of “growing up” financially. Plus, these accounts will be FDIC-insured. This means that if the bank behind your account tanks, you’ll still get your money back. This may not be the case if you’ve got a large balance on a prepaid card account.

Bottom line: check out our list of the best bank accounts available today, and go open one as soon as you can.

Try Multiple Free Checking Accounts

Are you using prepaid cards to segment your money for budgeting purposes? That’s not a bad strategy. Actually, it’s one that my family uses. But we do it with a few different free checking and savings accounts. Many banks will let you open multiple linked accounts. This makes it easy to move money into an account for a dedicated purpose, like vacations or everyday spending.

Just be sure you check the terms of your bank account. If you have to pay fees when you don’t carry a high balance, you could wind up paying a hefty monthly fee for multiple accounts.

Another option is to consider an account with in-account budgeting tools. With some banks, like PNC, for instance, you can segment your money within the account. That way you can get a feel for where you are with your budget without having to carry multiple cards in your wallet.

Use Credit Wisely and Well

Finally, you need to get hold of the idea that not all credit is bad credit. In fact, regularly using credit cards well can set you up for other borrowing situations, like getting a car loan or a mortgage. If these things are in your future, you should have and use at least one credit card. Even if you’re already a homeowner, using a credit card for everyday spending can get you great rewards over time.

The key is to keep track of your spending. You can use a budgeting tool–Mint or Personal Capital, for example–to track your spending on your debit and credit cards. Then be sure you pay off your credit card ahead of time every month. With this strategy, you’ll get credit card rewards and protections, stick to your budget, and build your credit score over time.

Topics: Credit • Credit Cards

The post Why are Millennials Using Prepaid Credit Cards? appeared first on The Dough Roller.

via Finance Xpress

Do you want to learn how to become a tutor? Here is how Making Sense of Cents reader Trevor Klee earned $90,000 in one year working part-time with his tutoring business! If you have a laptop, an Internet connection, and enjoy taking standardized tests, you can make 6 figures part-time. He shares his expertise on how to start a tutoring business below.

Unlike a lot of people, I graduated college with a job. Unfortunately, that job immediately fell through. So, like a lot of people, I graduated college and was pretty quickly back in my parents’ house. I very quickly got tired of my mom’s dirty looks, and started applying for new jobs.

Then I got one: a tutoring job in Singapore. The tutoring part was not so new to me: I had always been good at taking tests, and I worked part-time as a tutor in college. But the Singapore part was, admittedly, quite new. I had never been to Singapore.

But, I needed a job, and so off I went to Singapore. Singapore itself was awesome. It’s beautiful, incredibly convenient, safe, and has the best street food in the world. Seriously. I spent a couple dollars per meal, and I ate like a king. I was so happy.

My job, on the other hand, was not so great. I pretty quickly realized that this tutoring company raked in cash. They charged thousands of dollars per classes and hundreds of dollars per hour for private lessons. They paid me some small fraction of that, and kept the rest.

Now, I didn’t mind them making money, but what bothered me was that they provided nothing to me in return. I had no training, the materials were bogus, and, in the case of a customer dispute, well, I got chewed out. The only advantage they had over me was that they had customer leads. If I could get the same leads they did, I’d be set. I wouldn’t need them anymore.

So, I quit. I said goodbye to Singapore and its amazing food, packed my stuff, and headed back to the US. I decided to go to Cambridge, MA: I had spent a summer there and loved it, plus my brother was living there. It’s always good to be near family.

And it was there, on my brother’s sleeper sofa in Cambridge, that I started my tutoring business by posting an ad on Reddit. It read: “GMAT tutor offering free tutoring in exchange for testimonials” . I got some replies, and the rest was history (and a lot of hard work, experimentation, failure, long nights, etc).

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What it entails to become a tutor

I tutor on my own. That means I spend my time in a coworking space, doing side projects (like writing this!) and prep work in between sessions. People contact me from my tutoring website looking for help on an exam. These people are usually about to graduate college or already working.

For example, I have quite a few clients right now from Harvard who are trying to ace the GRE to get into graduate school. I also have a couple clients who are in their late 20s, looking to take the GMAT to get into business school. And finally I have a client who’s in his mid 30s from Asia looking for a career change. It’s a good mix!

Once I get a message from a potential client, I put them through a tutoring sales process. This sales process isn’t super slick or anything. I start with a couple emails to get to know them and their situation. Then we have a phone call, so we can get to know each other. Lastly, we meet face to face, so we can make sure we’re on the same page about tutoring. I never wanted to become a sleazy salesman, making people pay for tutoring that wouldn’t be what they need. So my sales process is mostly just making sure we’re both going to be happy working with each other.

Anyhow, if we’re on the same page after the in-person meeting, we then start work together. Working on these exams is pretty intense, especially for people who aren’t used to that level of intellectual rigor. So, my job isn’t just to teach them the material on the exam, but also get them used to studying and working, so they don’t burn out or get lost in the material. More on that later.

I normally work with people for like 10-20 hours of in-person tutoring, which comes out to like 2-3 months. There’s a lot of temporary engagements, and it can get a little bewildering with the number of people who come in and out of my office. I rely a lot on spreadsheets that I have my students update, so that I can keep track of their progress.

Maybe a better question to ask about this hustle would be: who’d be interested in this job? Well, here’s who’d be interested:

1. Nerds. This job definitely appeals to my nerdy side. I’m spending all day every day doing algebra problems and logic puzzles.
2. People who don’t mind being alone. As an independent tutor, I spend a lot of time alone. My only real contact during the workday is with my clients. I don’t mind this for the most part, but it’d definitely be trouble for someone who did mind.
3. Self-starters. I’m my own boss, for better or for worse. If I don’t make myself do the work, the work does not get done.

 

How much it pays to learn how to become a tutor

I charge $125/hr for the easier exams (GRE and LSAT), and $160/hr for the harder exam (GMAT). Given that most people work with me for 10-20 hours, I make anywhere from $1250 to $3200 per client.

I usually work between 15-20 hours per week at this. So I make around 6 figures. In 2017, I made $90,189.

 

How others can get started with online tutoring jobs

Well, I actually made an entire website on how to start a tutoring business. The short version is this

1. Find a niche

This would preferably be a test that you’re an expert in. If you just tutor “math”, you can charge $20/hr to parents of elementary school students. If you tutor “GMAT math”, you can charge $160/hr.

2. Create an effective tutoring website

This website needs to portray you as someone that your clients can trust. Display your contact info, testimonials and reviews, scores, and affiliations prominently.

3. Develop a web presence

You need to be on Yelp and Google My Business so that people can find you. Next up? Start getting reviews on those sites.

4. Offer free tutoring for testimonials and reviews

It’s really hard to get clients without social proof. Those first few people who can offer you reviews and testimonials are golden.

 

The problems people run into as a tutor

Being a tutor is not that risky a job, obviously. There are some entrepreneurial ventures where you can get yourself into really deep water if you don’t pay attention. For instance, home contracting. If you don’t build the house correctly, it will fall down.

Tutoring, on the other hand, is not like that. Really the worst thing that can happen to you is that you end up annoying a client. There are two times when you can possibly annoy a client. The first is when you’re asking for money. The second is when you actually do the work.

People don’t like paying money. They’d much rather the money stays in their pocket rather than yours. They especially get suspicious when they feel like you’re trying to remove the money from their pocket in a sneaky or unexpected fashion.

The way I avoid disputes over money is just by being very upfront about it. I never work without being paid, and I ask for 5 or 10 hours payment in advance. This also solves the issue of no-shows. If they’ve already paid, then the no-show is just taken out of what they’ve paid.

People can also be understandably annoyed if they feel like you did a shoddy job tutoring them. As I mentioned, I charge $125-$160/hr. That’s a lot of money! People are entrusting me with their hopes and dreams (well, some of them, anyways), and I need to provide a quality service. If I don’t provide a quality service, they’ll be disappointed.

Solution to that is to get good at teaching! I’ve got some tips below that’ll help with that.

 

What I’ve learned about marketing as a tutor

When I first started my tutoring business, I had a lot of misconceptions about marketing. First of all, I thought that the biggest part of marketing was just “getting my name out there”. This caused me to waste a lot of time reaching out to (and annoying) friends and family and posting flyers.

Second of all, I thought that people were really concerned about price. I wasted way too much of my marketing efforts trying to advertise a “lower price than the competitor”.

In reality, as a tutor, you’re a skilled professional. The first, second, and third question people have about you is “Can I trust this person to get me the results I want to get?” If they don’t feel like they can trust you, it doesn’t matter what price you charge or whether or not they’ve heard of you.

So how did this change my marketing efforts?

Well, I stopped caring about any form of just “getting my name out there”. Stuff like flyers or newspaper ads means that people see your name, find out what you do, and forget it. Now I only focus on advertising that can convince people that I’m a trustworthy person, and they should contact me in order to find out how I can help them.

Included in this is that pricing takes a secondary role. People care about your pricing, of course, because if you charge a million dollars, nobody can take you up on your offering. But that’s not the most important thing most people care about. And, believe me, for the few who care primarily about your price, they are not the people you want as customers.

 

What I’ve learned about teaching as a tutor

Teaching, like driving, is something that a lot more people think they’re good at than actually are. Funnily enough, learning is the same way. For instance, a lot of people think that they’re bad at math, when they actually just never learned how to learn math.

So, as a tutor, you need to learn how to teach, and you need to learn how to learn, so you can teach others how to learn. I know that’s sounds like a riddle, but hear me out.

As a tutor, whatever you teach needs to be organized. Make sure your student knows exactly what the purpose of what they’re learning is, and why they’re learning it. The way I like to do this is by presenting students with the problem first. Then, if they attempt it and fail to do it, I show them the correct way.

When I see people teaching, the most common mistake I see people make is to operate in 2 modes: either tell the student exactly what to do, or don’t tell them anything. It’s an easy pattern to fall into, because the tutor first lectures about the problem, then just leaves the student to solve it on their own.

To be most helpful, the tutor needs to provide intermediate levels of guidance. So, perhaps you can start the problem for the student, but not finish it. Or, as the student is attempting the problem, you can ask them leading questions. This helps bridge the gap between seeing the tutor do the work, and doing it themselves.

When learning, the most common problem people have is that they don’t focus enough on things they have trouble with, and they don’t repeat themselves enough. Also, they don’t repeat themselves enough :p

In order to learn, you have to be willing to spend a lot of time struggling with concepts. Most importantly, you have to get things wrong. This is obvious, but you’d be amazed at how many people waste inordinate amounts of time studying for a test because they don’t try problems and get them wrong.

Another way that people learn inefficiently is by not going back and repeating problems. If a problem has given you trouble in the past, you need to repeat it until you understand the process. If you don’t repeat it, then that problem is just going to be a permanent hole in your knowledge.

 

Conclusion on how to become a tutor

Tutoring isn’t a business for everyone. It can be be a bit lonely, requires a high tolerance for academic work, and is, in the end, a business, with all the responsibilities a business entails. A tutor needs to market themselves, get payment from customers, and provide the customer with what they want, just like any other business.

But, for those who are up to it, being an independent tutor can be a great lifestyle and great source of income. I know I’ve enjoyed it, and I’m very happy that I took the leap from my brother’s couch those years ago.

Author Bio: Trevor Klee is a GMAT, GRE, and LSAT tutor in Boston. He blogs about the business of tutoring at JustAddTutor.com.

Are you interested in learning how to become a tutor and finding online tutoring jobs?

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