Preparing for a Debt-Free Summer

Summer is a season of sunshine, adventure, and well-earned relaxation. But for many, it can also bring financial strain—vacations, social events, and increased spending can quickly add up, leading to unexpected debt. The good news? With a little planning and intentional financial stewardship, you can enjoy a fun-filled summer without breaking the bank.

1. Set a Summer Budget

Before summer kicks into high gear, take time to create a budget that accounts for seasonal expenses. Include categories such as travel, dining out, entertainment, and kids’ activities. By setting spending limits in advance, you’ll be more mindful of where your money is going and avoid unnecessary debt.

2. Start a Summer Savings Fund

A little preparation now can go a long way in keeping you financially stress-free later. If you haven’t already, start setting aside money for summer expenses. Even small, consistent contributions to a dedicated “summer fund” can help cover costs without relying on credit cards.

3. Plan Cost-Effective Fun

Who says summer fun has to be expensive? Explore free or low-cost activities such as hiking, beach days, community events, and backyard barbecues. Many cities offer free concerts, outdoor movie nights, and festivals—take advantage of these opportunities to create memories without spending a fortune.

4. Travel Smart

If summer travel is on your agenda, look for ways to cut costs. Book flights and accommodations early, use rewards points, and consider alternative lodging options like vacation rentals or home exchanges. Road trips can also be a budget-friendly alternative if planned wisely.

5. Reduce Unnecessary Expenses

Take a close look at your current spending habits and identify areas where you can cut back. Can you reduce dining out and cook more meals at home? Are there subscription services you no longer use? Trimming excess expenses will free up extra funds for summer fun.

6. Avoid the Buy-Now, Pay-Later Trap

Tempted by buy-now, pay-later offers? While these options may seem convenient, they can lead to hidden debt accumulation. Stick to purchases you can afford upfront and avoid financing summer splurges that could haunt you later.

Final Thoughts

A debt-free summer is possible with the right planning and financial discipline. By budgeting ahead, cutting unnecessary costs, and embracing affordable fun, you’ll set yourself up for a season of enjoyment and financial peace of mind.

Start preparing today, and let this summer be one of financial freedom and joyful experiences!

Spring Cleaning Your Finances: A Fresh Start for Your Money

As the flowers bloom and the days get longer, spring is the perfect time for a fresh start—not just for your home, but for your finances, too! Just like you declutter your closets and deep-clean your living spaces, your financial life can benefit from a seasonal reset. Here are four key ways to "spring clean" your finances and set yourself up for success in the months ahead.

1. Declutter Your Budget

Over time, spending habits shift, and small expenses can creep in without you even noticing. Now is the time to go through your budget and trim the unnecessary. Ask yourself:

• Are there any subscriptions or memberships you no longer use?

• Have your grocery or dining-out habits changed?

• Can you negotiate a lower rate on insurance or utilities?

Review your spending from the last few months and identify areas where you can cut back or reallocate funds toward your financial goals.

2. Organize Your Debt Payoff Strategy

If you have debt, take this opportunity to revisit your payoff plan. Consider:

• Paying off the smallest balance first (Debt Snowball method) for quick wins

• Tackling the highest interest rate first (Debt Avalanche method) to save more in the long run

• Consolidating or refinancing debt to secure better terms

Making adjustments to your strategy now can help you stay motivated and accelerate your progress toward financial freedom.

3. Refresh Your Savings Goals

Life changes, and so do your financial priorities. Take time to reassess your savings goals:

• Is your emergency fund where it needs to be?

• Do you have upcoming expenses (vacations, home repairs, back-to-school costs) that need funding?

• Are you consistently investing for the future?

Set up automatic transfers to ensure you're consistently saving, and consider opening a high-yield savings account to maximize your returns.

4. Dust Off Your Financial Records

Just like you clear out old paperwork at home, take time to organize your financial records:

• Shred outdated documents you no longer need

• Digitize important files for easy access

• Ensure your will, insurance policies, and beneficiary designations are up to date

This is also a great time to review your tax situation and make any necessary adjustments to withholdings or estimated payments to avoid surprises next year.

Start Fresh This Spring

Spring cleaning your finances might not be as satisfying as organizing your pantry, but the benefits last much longer! By decluttering your budget, organizing your debt, refreshing your savings, and tidying up your financial records, you’ll set yourself up for a strong and stress-free financial future.

Need help making a plan? I Was Broke. Now I’m Not has the tools and resources to help you take control of your money and live with financial confidence. Let’s make this season the start of something great!

Is Your Spending Out of Control? Here’s How to Budget and Save Smarter

Have you ever looked at your bank account and wondered, “Where did all my money go?” If your spending feels out of control, you’re not alone. Many people struggle to strike a balance between enjoying life and staying on top of their finances. The good news? You can regain control with practical steps to budget and save smarter.

Step 1: Identify Where Your Money is Going

Before you can fix your spending, you need to understand it. Spend some time reviewing your bank and credit card statements from the past three months. Categorize your expenses into needs (housing, utilities, groceries) and wants (eating out, entertainment, subscriptions). Seeing the numbers in black and white can be an eye-opener.

Step 2: Create a Realistic Budget

Budgeting doesn’t mean depriving yourself; it’s about allocating your resources wisely. Follow the 50/30/20 rule as a starting point:

• 50% for needs

• 30% for wants

• 20% for savings and debt repayment

Use a budgeting app or a simple spreadsheet to track your progress. Adjust the percentages as needed to fit your unique situation.

Step 3: Set Financial Goals

What are you saving for? Whether it’s a dream vacation, paying off debt, or building an emergency fund, having clear goals makes it easier to stick to your budget. Write down your goals and assign a timeline to each one. For example, “Save $1,000 for an emergency fund within three months.”

Step 4: Automate Your Savings

Out of sight, out of mind. Automating your savings ensures you’re consistently putting money toward your goals. Set up automatic transfers to a separate savings account each payday. Start small if needed—even $20 per paycheck adds up over time.

Step 5: Cut Back Without Feeling Deprived

Look for ways to reduce spending on wants without sacrificing happiness. For instance:

• Cook at home: Swap one restaurant meal per week for a homemade dinner.

• Share subscriptions: Split streaming services with family or friends.

• Shop smarter: Use coupons, cashback apps, or shop during sales.

Step 6: Plan for Fun

Budgeting doesn’t have to mean giving up fun. Include a “fun fund” in your budget for guilt-free spending. Knowing you have money set aside for enjoyment can prevent impulse purchases and overspending.

Final Thoughts

Taking control of your spending doesn’t happen overnight, but with intentional steps, you can turn things around. Remember: Every small step you take today brings you closer to the financial freedom you deserve.

If you’re ready to dive deeper into budgeting and saving strategies, check out our resources and tools at I Was Broke. Now I’m Not. Let’s get started on your journey to smarter spending and saving!

Wants vs. Needs: How to Balance Spending and Saving Without Feeling Deprived

Balancing spending and saving can feel like walking a tightrope. Too much focus on saving, and you might feel like you’re missing out on life. Too much spending, and your financial goals may slip further and further away. The key to harmony lies in understanding the difference between wants and needs and crafting a strategy that allows for both. Let’s explore how to strike this balance without feeling deprived.

Defining Wants vs. Needs

At its core, a “need” is something essential for survival and basic well-being. These include housing, food, transportation, utilities, and medical care. “Wants,” on the other hand, are non-essential items or experiences that enhance enjoyment or convenience—think dining out, vacations, entertainment, and that latest gadget.

While this distinction seems straightforward, the lines often blur. For example, while food is a need, ordering takeout or dining at a fancy restaurant falls under a want. Recognizing these nuances is the first step to creating a balanced financial plan.

1. Audit Your Spending

Start by tracking your expenses for a month. Categorize each expense as a want or a need. Be honest with yourself! This exercise helps you see where your money is going and identify areas where you may be overspending on wants.

2. Prioritize Your Needs

Once you’ve identified your needs, ensure they’re adequately covered in your budget. This means setting aside money for rent, utilities, groceries, and other essentials before allocating funds elsewhere. Use tools like the 50/30/20 rule, which suggests:

• 50% of your income for needs

• 30% for wants

• 20% for savings and debt repayment

3. Budget for Guilt-Free Spending

Deprivation leads to burnout. To avoid this, create a budget that includes room for discretionary spending. Knowing you have money set aside for fun allows you to enjoy your wants without guilt or derailing your savings goals.

4. Automate Savings

Set up automatic transfers to your savings or investment accounts. Treat your savings as a non-negotiable “need” to ensure you’re consistently working toward your financial goals. Automating this process removes the temptation to spend money earmarked for savings.

5. Celebrate Small Wins

Acknowledging progress is crucial for staying motivated. Celebrate milestones like paying off debt, reaching a savings goal, or sticking to your budget for a month. Rewarding yourself (within reason) reinforces positive habits and makes the journey more enjoyable.

Conclusion

Balancing wants and needs is not about strict denial or indulgent spending; it’s about creating a plan that honors your goals and values. By auditing your expenses, prioritizing needs, budgeting for wants, and automating savings, you can enjoy a fulfilling life today while securing your financial future. Remember, it’s not about perfection but progress—so give yourself grace as you navigate this journey toward financial well-being.

Are You Spending Wisely? 7 Tips to Make Every Dollar Count

Do you ever feel like your money disappears faster than you can earn it? You're not alone. With the rising cost of living and endless temptations to spend, managing finances can feel overwhelming. The good news is that wise spending isn’t about earning more—it’s about using what you have more effectively. Here are seven actionable tips to help you make every dollar count.

1. Track Your Spending

You can’t manage what you don’t measure. Start by documenting every dollar you spend for at least a month. Use a budgeting app, a spreadsheet, or even a notebook. Once you know where your money goes, you’ll see areas where you can cut back or redirect funds to more meaningful expenses.

Pro Tip: Categorize your expenses into needs, wants, and savings to identify potential problem areas.

2. Create a Budget That Aligns With Your Goals

A budget isn’t about restriction; it’s about intention. When you create a budget, you’re giving your money a purpose. Align your spending with your short-term and long-term goals—whether that’s saving for a house, paying off debt, or enjoying a guilt-free vacation.

Action Step: Use the 50/30/20 rule: allocate 50% of your income to needs, 30% to wants, and 20% to savings or debt repayment.

3. Distinguish Between Needs and Wants

Impulse purchases often stem from confusing needs with wants. Before buying something, ask yourself: “Do I really need this, or do I just want it?” Waiting 24 hours before making a purchase can help you avoid buyer’s remorse.

Mindset Shift: Needs sustain your life; wants enhance it. Spend accordingly.

4. Plan Your Meals

Dining out or ordering takeout frequently can eat into your budget faster than you realize. By planning your meals and preparing them at home, you’ll save money and likely make healthier choices.

Pro Tip: Batch cook meals for the week to save time and reduce the temptation to order out.

5. Shop Smart

Be a savvy shopper by comparing prices, using coupons, and waiting for sales. Avoid shopping when you’re emotional or rushed, as this can lead to unnecessary purchases.

Action Step: Make a shopping list and stick to it. This ensures you only buy what you need.

6. Cut Subscriptions You Don’t Use

Subscription services can quietly drain your budget. Take a close look at your monthly subscriptions—streaming platforms, gym memberships, or apps—and cancel the ones you rarely use.

Quick Win: Use an app that tracks subscriptions to identify and manage recurring charges.

7. Automate Your Savings

One of the best ways to make your dollars work harder is to save consistently. Automating your savings ensures you’re setting money aside before you have the chance to spend it.

Action Step: Set up an automatic transfer from your checking account to your savings account every payday, even if it’s just $20.

Final Thoughts

Spending wisely doesn’t mean depriving yourself of the things you love. Instead, it’s about being intentional and prioritizing what truly matters. By implementing these seven tips, you’ll not only stretch your dollars further but also gain greater control and peace of mind over your finances.

Start small. Pick one or two tips to focus on this week, and watch how quickly your financial confidence grows.

5 Ways to Reset Your Finances After the Holidays

The holidays often bring joy and connection, but they can also leave us with financial stress. Now that the celebrations are over, it’s time to take control of your finances and start fresh. These five steps will help you reset your finances and set yourself up for success in the year ahead.

1. Review Your Holiday Spending Habits

Let’s get real—where did your money go during the holidays? Sit down and go through your transactions. Break them into categories like gifts, entertainment, travel, and all those extra Starbucks runs (it’s okay, we’ve all been there). Figuring out where you overspent can help you spot patterns and make smarter choices next year. 

Tip: Pick one thing to tweak for next year, like swapping a full-blown gift exchange for a Secret Santa or hosting a potluck instead of footing the whole holiday meal bill yourself.

2. Reevaluate Your Budget for the New Year

New year, new budget! Take a look at your current financial situation. Do you have holiday bills to tackle? Maybe some income or expense changes? Adjust your budget accordingly to reflect where you’re at now.  Starting the year with a fresh, realistic plan gives you a solid foundation for tackling those money goals. 

Tip: Add a “holiday recovery” line to your budget to keep tabs on paying off any lingering holiday debt. It’s like a progress bar for your wallet!

3. Prioritize High-Impact Financial Goals

Trying to do everything at once can feel overwhelming. Instead, pick one or two financial goals to prioritize this year. Maybe it’s building up your emergency fund, paying down credit card debt, or finally saving for that dream vacation.  Zeroing in on a couple of goals helps you stay focused and actually make progress. 

Tip: Keep your goals visible! Use a savings tracker, a countdown, or even sticky notes on your fridge to remind yourself why you’re doing this.

4. Declutter and Sell Unused Items

Ready to feel productive and bring in a little extra dough? Declutter your home and sell those items you never use. That barely-worn sweater? Those gadgets collecting dust? They could be someone else’s treasure—and your financial boost.  You’ll clear out your space and earn some quick cash to put toward debt or savings.

Tip: Promise yourself you’ll only use the money for your financial goals, not on impulse buys (no matter how tempting that coffee run seems).

5. Automate Good Financial Habits

Want to make this whole money thing less stressful? Automate it! Set up automatic transfers to savings accounts, schedule bill payments, and if possible, set recurring payments to chip away at debt.  Automation means you’re taking action without even thinking about it. Plus, it helps you avoid those pesky late fees!

Tip: Start a holiday savings account now and set up small, automatic monthly contributions. You’ll be amazed at how prepared you’ll feel when December rolls around again.

Wrapping It All Up

Getting back on track financially doesn’t have to be complicated. Review your holiday spending, refresh your budget, focus on a couple of big goals, declutter for extra cash, and automate the good habits. These steps are simple, effective, and totally doable—because you’ve got this!

Here’s to a fresh financial start this year! 🎉

Budgeting Hacks to Help You Take Control of Your Money in 2025

If you’re looking to start 2025 on the right financial foot, you’re not alone. Setting up a solid budget can help reduce stress, reach financial goals, and make room for some of the fun things in life. Here’s a guide to practical budgeting tips that will help you maximize your income, cut unnecessary expenses, and save for future goals.

1. Cancel Memberships and Subscriptions You Don’t Use

Do you really use all those streaming services, magazines, or gym memberships? It’s easy for subscriptions to add up, especially if you forget to cancel free trials or automatically renew services you no longer need. Go through your recent bank statements and check for recurring charges. If you find any memberships or subscriptions you’re not actively using, cancel them right away. This simple step could save you hundreds over the course of the year!

2. Pack Lunches and Skip the Takeout

Packing your lunch might sound like a small change, but it can have a big impact. Spending $10-15 each workday on takeout can add up quickly—around $200-300 a month! By planning and packing your lunches, you can eat healthier, save money, and even reduce food waste. Try meal-prepping on Sundays to make it even easier to grab a lunch during the week. This small habit could save you a couple of thousand dollars over the year, which can be redirected toward other goals.

3. Check Your Insurance Rates

One often-overlooked tip is to review your insurance policies annually. Insurance companies frequently update their rates, and if you haven’t checked yours in a while, you may be missing out on savings. Compare rates for car, home, and health insurance to make sure you’re getting the best deal. You can use online comparison tools or work with an insurance agent who can find you lower rates. This small step could reduce your monthly bills without compromising coverage.

4. Make a Monthly Budget & Track EVERY Expense

Budgeting can feel overwhelming, but it’s easier when you break it down monthly and track every expense. Create a monthly budget that includes all your fixed and variable expenses and set realistic limits for each category. Use an app or even a simple spreadsheet can help you track your spending. Make a habit of checking your budget weekly to see if you’re staying on track. Once you know exactly where your money goes, it’s easier to identify and cut unnecessary expenses.

5. Set Up Direct Deposits for Savings Goals

Saving up for big expenses—like a vacation, car repairs, or holiday gifts—is easier when you set aside money gradually. A great way to do this is to set up direct deposits into separate savings accounts designated for each goal. Many banks now offer the option to create sub-accounts, which you can name for each goal. By automatically depositing a small amount with each paycheck, you’ll build up funds over time without even noticing it. This "out of sight, out of mind" approach makes saving easy and keeps your goals on track.

Wrapping Up

Incorporating these five budgeting hacks into your financial routine can make a huge difference in reaching your goals for 2025. By cutting unnecessary expenses, finding cost-effective alternatives, and planning ahead, you’re setting yourself up for a more financially stable year. Start with one or two of these tips, and you’ll be well on your way to building healthy financial habits that last!

How To Navigate Family Finances During The Holidays: Money Conversations Made Easy

The holiday season is a time of joy, celebration, and, often, financial stress. Navigating conversations about money with family can be challenging, but with the right approach, you can make these discussions easier and more productive. Here’s how to handle money conversations with your family during the holidays with ease.

Approach Conversations with Empathy and Understanding

When discussing finances during the holidays, it’s crucial to approach the conversation with empathy. Start by creating a supportive environment where everyone feels heard and respected. Share your financial concerns and limitations in a way that is considerate of others' perspectives. For instance, instead of saying, "I can't afford this," try, "I’m trying to stick to a budget this year and need to be mindful of my spending." Practice active listening to understand each family member’s financial situation and expectations.

Set Boundaries and Manage Expectations

Setting clear financial boundaries helps prevent misunderstandings and unrealistic expectations. Clearly communicate your spending limits for gifts, travel, or holiday events. For example, if you’re planning a family gift exchange but have a set budget, explain it in a way that emphasizes your desire to keep the holiday enjoyable without financial strain. Use phrases like, "I’d love to participate, but I need to stay within a certain budget," and be open to negotiating and compromising to find a solution that works for everyone.

Focus on Shared Goals and Values

Aligning financial conversations with shared family goals and values can shift the focus from money to what truly matters. Discuss the traditions and experiences that everyone values most and find ways to incorporate them into your holiday plans without overspending. Consider creating new, cost-effective traditions that highlight togetherness and joy. For example, instead of expensive gifts, you could plan a family game night or a potluck dinner, which can be just as meaningful and enjoyable.

Navigating family finances during the holidays doesn’t have to be a source of stress. There are ways you can manage holiday finances more effectively and enjoy a more meaningful holiday season. We encourage you to engage in open and honest discussions to ensure a joyful and financially stress-free holiday. Remember, effective communication not only helps manage money but also strengthens family bonds and enhances the holiday experience.

Fall Financial Cleaning: Steps to Organize Your Finances Before Year-End

As autumn settles in and you start thinking about tidying up your home, it’s also a great time to give your finances a thorough cleaning. Just like fall cleaning helps you prepare for the new season, organizing your finances before the year ends can set you up for a successful financial future. Here’s how to do a fall financial cleaning in just three simple steps: 

Review and Adjust Your Budget

Take a close look at your current budget and compare it with your actual spending over the past year. Have you overspent in some areas or saved more than expected in others? Use this review to adjust your budget for the final months of the year. Make room for any upcoming expenses and ensure your spending aligns with your financial goals.

Organize Financial Documents

Gather all your important financial documents, including bank statements, receipts, and tax-related paperwork. Organize these documents so you’re ready for tax season and any other financial planning needs. Consider digitizing documents for easier access and to reduce physical clutter. An organized financial record will make managing your finances much smoother.

Review Financial Goals and Progress

Reflect on the financial goals you set at the beginning of the year. How close are you to achieving them? Based on your current financial situation, adjust your goals if necessary and set new targets for the upcoming year. Review your savings and investment plans to ensure they are still on track and make any needed adjustments.

By reviewing your budget, organizing your financial documents, and assessing your financial goals, you can finish the year on a strong note and start the new year with clarity and confidence. This fall, take the time to clean up your finances and prepare for a successful financial future.

5 Questions to Ask Before Spending Money

Do you ever get caught in the cycle of  “see it, want it, and buy it?” Before you spend you don’t stop to think through your purchase. Here are five questions you can ask yourself before spending money on impulse purchases and larger purchases. 

• Do I Need This? 

• Often times its helpful to take a moment, pause, and ask yourself the simple question of ‘Do I need this?’ This question can become a gatekeeper of sorts. A way to prevent impulsive spending. With the access to shopping right at our fingertips, wait overnight before even answering the question. You’d be amazed at the clarity a good night of sleep can bring to a spending decision. 

• Will this item increase or decrease in value?

• Now, not all of our purchases can be for items that increase in value, but if all of your purchases go down in value - there is a problem. Ask yourself this question, as you consider larger purchases and potential investment purchases. Find someone you know who is prospering with their investments, and ask for their advice!

• Do I have the money to pay cash for this item?

• Is your first instinct to finance? To finance the car, the next car, the furniture, the trip, and so on… Consider asking yourself this question before purchasing. If you don’t have the cash to pay for it, don’t buy it (unless it’s a house or an asset that will increase in value.)

• Will this purchase generate income for me or take income away from me?

• What a great question to ask - and what a difference it will make in the way you think about money. Before you spend, just stop and ponder the options available to you to use those resources to generate more income for you in the future.

• Will this help me achieve my future plans, hopes, and dreams?

• Without a longer-term perspective, it becomes extremely easy to fall into the trap of living for the minute, and immediately spending every single dime we earn. This question can help you recognize that spending all your money right away can rob you of your future dreams.

So Before You Spend…

THINK!  Think about what this big purchase means.  Not just the temporary gratification, but how it will impact you in the long run.

5 Spooky Financial Mistakes to Avoid This October

October is a month filled with spooky fun, from haunted houses to ghostly costumes. But when it comes to your personal finances, there are some spooky things you should definitely avoid.

1. Ignoring Your Budget

As the holiday season approaches, it’s easy to get caught up in the excitement and let your spending spiral out of control. But ignoring your budget can lead to a ghostly apparition: overspending. Without a clear plan, expenses can creep up on you, leaving you with a chilling credit card bill or an empty bank account.

To avoid this, make sure you set a budget and stick to it. Plan for upcoming expenses, including fall festivities, and keep track of where your money is going. Remember, a budget isn’t meant to be restrictive—it’s a tool to help you stay in control of your finances.

2. Relying Too Much on Credit Cards

Credit cards can be convenient, especially when you're shopping for costumes, decorations, and treats. But relying too much on them can lead you down a trapdoor into the dark world of debt. High interest rates can quickly turn a small purchase into a large financial burden, leaving you with a trick instead of a treat.

To avoid falling into this trap, use credit cards responsibly. Only charge what you can afford to pay off in full each month, and consider using cash or a debit card for smaller purchases. If you already have credit card debt, make a plan to pay it off as quickly as possible.

3. Skipping Emergency Savings

One of the scariest financial mistakes you can make is skipping out on building an emergency fund. Life is full of unexpected surprises—car repairs, medical bills, or even job loss. Without an emergency fund, these unexpected expenses can turn into a financial nightmare.

Start by setting aside a small amount each month until you have at least three to six months' worth of expenses saved. Having this cushion will give you peace of mind and protect you from financial monsters lurking in the shadows.

4. Neglecting Retirement Contributions

It’s easy to put off retirement savings when there are more immediate financial concerns, especially with the holidays around the corner. But neglecting your retirement contributions can come back to haunt you later in life. The longer you wait to save, the more you miss out on the magic of compound interest, and the harder it becomes to catch up.

Make retirement savings a priority, even if it means making small sacrifices in the present. Contribute regularly to your retirement accounts and take advantage of any employer matching programs.

5. Failing to Plan for Taxes

Taxes might not be on your mind in October, but failing to plan for them can lead to a terrifying surprise when tax season rolls around. If you’re not withholding enough from your paycheck or overlooking potential deductions and credits, you could end up owing more than you expected.

Take the time now to review your tax situation. Adjust your withholding if necessary, and consider meeting with a tax professional to ensure you’re on the right track. Planning ahead can help you avoid the horror of a large tax bill come April.

Don’t let these spooky financial mistakes turn your October into a nightmare. By keeping an eye on your budget, using credit wisely, building an emergency fund, staying on top of retirement contributions, and planning for taxes, you can ensure that your finances stay healthy and strong.

Add title

Add heading

text

3 Budget-Busting Expenses to Watch Out For

Budgeting is essential for financial stability, but even the most meticulously planned budgets can be blindsided by unexpected or irregular expenses. Need help overcoming budget-busting expenses? You probably know the big ones—Christmas, the quarterly insurance premium, the annual property taxes—but let’s dive into why these are so challenging and how to handle them effectively.

1. Holiday Spending

The holiday season is a time of joy and giving, but it can also wreak havoc on your budget. According to a survey, the average American plans to spend nearly $1,000 on holiday gifts. Now, imagine this $1,000 hit in a single month—would it blow up your budget? ABSOLUTELY!

Solution: To smooth out this expense, consider setting up a Christmas fund. By calculating your estimated holiday spending and dividing it by 12, you can save a set amount each month. For instance, saving just $84 every month would cover a $1,000 holiday budget, leaving you stress-free when the festive season rolls around.

2. Quarterly Insurance Premiums

Insurance is a necessary expense, but quarterly premiums can be budget-busters. Let’s say your car insurance premium is $450 every three months. That’s a significant amount to pay in one go, especially if it coincides with other large expenses.

Solution: By calculating the annual cost of your premiums and dividing it by 12, you can save each month. In this case, $150 set aside monthly will ensure you’re prepared when that $450 bill arrives.

3. Annual Property Taxes

Property taxes are another heavy hitter, often due once a year. Depending on where you live, this could be a substantial amount—let’s say $1,200. A one-time payment like this can throw your budget into chaos if you’re not prepared.

Solution: Treat your property taxes like any other monthly bill by dividing the total by 12. Setting aside $100 every month will make the annual payment much more manageable.

Smoothing Out the Peaks and Valleys

To eliminate this peak-and-valley, feast-and-famine style of living, take the time to list out all of your KNOWN, UPCOMING expenses and their associated annual cost. In the examples above, the annual budget-busting expenses total up to $4,400 per year. Divide this number by 12 months, and you arrive at $367/month. If you save $367 EVERY SINGLE MONTH, you WILL be able to absorb these budget-busting expenses without the huge headaches that you may currently be experiencing!

Don’t believe me? Ask anyone with a Christmas fund or a home mortgage escrow account! These are nothing more than budget-buster smoothing tools. Mortgage companies and businesses have realized that if the costs are not smoothed out and absorbed monthly, the chances are unlikely of you having enough cash on hand when the bill arrives otherwise.

By identifying your major expenses and smoothing them out over the year, you can take control of your budget and eliminate the stress of surprise costs. Start today by listing your budget-busting expenses and setting up monthly savings goals. Your future self will thank you!

Why You Should Reset Your Financial Habits This Summer

Before the busy schedules pick back up in the fall and you’re juggling everything little thing, take a moment this summer to reset your financial habits. Find time to take a closer look at your current financial habits and make necessary adjustments.

1. Reflect and Reassess Your Financial Goals

Mid-year is a great time to assess how well you're meeting your current financial goals. Take a moment to review your progress and identify areas where you might be falling short. This reflection can provide valuable insights into what’s working and what needs to change.

Based on your evaluation, you may find that it’s time to set new financial goals. Align these goals with your values and long-term plans to stay motivated and on track. Whether it’s saving for a dream vacation, paying off debt, or investing in your future, clear and aligned goals are essential.

2. Review and Optimize Your Budget

Conduct a thorough review of your budget to see where your money has been going over the first half of the year. Identify any areas of overspending and analyze whether these expenses were necessary or if they can be reduced or eliminated.

Based on your findings, make adjustments to your budget. This might involve reallocating funds to different categories, cutting back on non-essential spending, or increasing your savings contributions. Ensuring that your budget reflects your current needs and priorities is crucial for financial stability.

3. Enhance Savings and Debt Management

Use the summer to focus on increasing your emergency fund. An emergency fund is a financial safety net that can cover unexpected expenses and prevent you from going into debt. Set up automatic transfers to your savings account to make saving easier and more consistent.

Evaluate your current debt situation and create a realistic repayment plan. Prioritize high-interest debts to reduce the overall amount of interest you’ll pay over time. A structured plan can make managing and paying off debt more manageable and less stressful.

4. Streamline Expenses and Improve Financial Literacy

Take a close look at your subscriptions and memberships. List all the services you’re subscribed to and determine which ones you actually use and which can be canceled. Eliminating unused or unnecessary services can free up significant funds in your budget.

Improving your financial literacy is one of the best investments you can make. Use the summer to read books, take courses, or get into a routine of listening to podcasts about personal finance. Being well-informed about managing money and understanding investment options can help you make better financial decisions.

Resetting your financial habits this summer can lead to better financial health and stability. Take advantage of the summer months to make these important changes and enjoy the benefits of a more secure and well-managed financial future.

5 Things You Don’t Need To Buy For School Every Year

As the back-to-school season approaches, it's easy to get caught up in the excitement of shopping for new supplies. However, not everything on your list needs to be replaced annually. Being strategic about what you buy can save you money.

Five items you can skip purchasing every year:

1. Backpacks

A durable backpack can last several years if it’s of good quality and well-maintained. Look for backpacks made with sturdy materials and reinforced stitching. Unless the old one is worn out or damaged, there's no need to buy a new one each school year. Encourage your child to take care of their backpack to extend its lifespan.

2. Lunch Boxes

Sturdy lunch boxes can also be reused year after year. Invest in a good-quality lunch box that can withstand daily use. Regular cleaning is essential to maintain hygiene, but a well-made lunch box can serve your child for multiple school years. If the exterior or interior lining is in good shape, there’s no need for a replacement.

3. Calculators

Calculators, specifically scientific ones, are often a significant investment, but they are built to last. These calculators are required for multiple years of math and science courses, so once you’ve purchased a good one, it should see your child through high school. Unless it’s lost or broken, you don’t need to buy a new calculator every year.

4. Binders and Folders

High-quality binders and folders can be reused if they’re still in good condition. Instead of replacing them each year, try reusing them. Choose binders and folders made from durable materials that can withstand the daily wear and tear of school life. 

5. Water Bottles

Durable water bottles made of stainless steel or hard plastic are designed to last for many years. Regular cleaning and occasional checks for wear and tear are all that’s needed to keep them in good condition. A reusable water bottle is an eco-friendly choice that can accompany your child through multiple school years, making it unnecessary to buy a new one annually.

Back-to-school shopping doesn’t have to mean buying everything new every year. By reusing durable items you can save money. Focus on purchasing quality items that can withstand the test of time, and teach your children the value of taking care of their belongings.

Saving Tips: Back To School Clothes

It’s never too early to start saving for back-to-school expenses. Clothes can be a significant part of your spending each year, but with a little planning and strategy, you can save a substantial amount. Here are four practical tips to help you navigate back-to-school clothes shopping without breaking the bank.

1. Create a Budget and List

Before diving into the shopping frenzy, take a step back and plan. Setting a budget is crucial to avoid overspending. Here’s how you can start:

• Set a Budget: Determine how much you can afford to spend on back-to-school clothes. This budget should be realistic yet restrictive enough to encourage smart shopping choices.

• Make a List: Go through your child’s current wardrobe to see what fits, what can be reused, and what needs to be replaced. This can help you focus on essentials and avoid buying unnecessary items. A well-thought-out list will keep you on track and ensure that you purchase only what’s needed.

2. Shop Sales and Use Coupons

Timing is everything when it comes to shopping for clothes. Taking advantage of sales and using coupons can lead to significant savings:

• Look for Sales: Retailers often have end-of-summer or back-to-school sales with substantial discounts. Keep an eye on social media, websites, and local stores for these promotions.

• Use Coupons and Promo Codes: Before you hit the stores or online shops, search for coupons and promo codes. Many websites, apps, and mailers offer additional discounts. Signing up for store newsletters or loyalty programs can also provide access to exclusive deals.

3. Buy Secondhand

Why pay full price when you can get great quality for less? Consider these alternatives to traditional retail shopping:

• Thrift Stores and Consignment Shops: These stores often carry gently used, fashionable clothes at a fraction of the cost. With a little patience, you can find great deals on high-quality items.

• Garage or Mom2Mom Sales: Shop local garage sales, or look out for locally organized sales with other parents in your community. This is a simple way to get clothes for often the cheapest price from families whose kids have outgrown them. 

4. Shop Off-Season

Another effective way to save money is to shop off-season. This requires some planning but can result in big savings:

• Buy Off-Season: Retailers often discount items heavily at the end of the season to make room for new inventory. Buy winter clothes at the end of winter and summer clothes at the end of summer. Store these items for the next school year.

• Plan Ahead: Estimate your child’s growth and buy sizes accordingly. Buying a size up can ensure that the clothes will fit when the season rolls around again.

By creating a budget and list, shopping sales and using coupons, buying secondhand, and shopping off-season, you can outfit your child for each season without overspending. These strategies not only help you save money but also teach your children the value of smart shopping and financial planning. 

Inexpensive Summer Fun

Ah, summer—the season of scorching sun, endless days, and the unrelenting desire to cool off without breaking the bank. Is it possible? There’s a variety of activities that seem to continually make you swipe the card: waterparks, baseball games, amusement parks, and more. 

There are ways to stop overspending in the summer months. Use these inexpensive summer fun ideas: 

• Water Gun Battle: Cool off and have a blast with a family water gun fight. Set up obstacles, devise strategic plans, and prepare to get drenched in the name of victory.

• Visit a Pick-Your-Own Farm: Spend a day at a farm picking your own fruits or vegetables. It’s a great way to teach kids about where their food comes from, and you get to enjoy fresh produce. 

• Homemade Ice Pops: Create your own ice pops with fruit juice, yogurt, or pureed fruits. Get creative with flavors, experiment with funky molds, and be proud of your homemade delicacy! It’s a delicious way to beat the heat.

• Community Pool Day: Spend a day swimming and playing in your neighborhood or community pool. 

• Sidewalk Chalk Art Festival: Turn your driveway or a section of the sidewalk into an art gallery. You can even have family members vote on their favorite pieces. 

But what if you're still struggling to stick to a budget? In addition to these inexpensive ideas, consider using our FREE budget tools to help you stay on track. The best way to make financial progress is with a plan. Access our budget tools here. 

How To Prepare A Budget That Actually Works

There are a lot of people who struggle with budgeting. They know they should have a budget, but there never seems to be enough time, energy, or money to prepare one.

I know the feeling. However, I also know the feeling of not having control of my money and always running into financial disasters toward the middle to end of each month. It was in December of 2002 that I experienced my IHHE Moment (I Have Had Enough Moment) and resolved to figure out a way to gain full control of my money. By July of 2003, I figured out a way to make budgeting work for my family. Below are the steps I put into place. If you put them into place, I’m confident this budgeting process will work for your household too!

1. At least 3 days before the month begins, make a list of all your expected income and expenses for the upcoming month.

2. Pull up the FREE BUDGET TOOL. Enter the income and expenses into the worksheet.

3. Modify your income/expenses to ensure that the following formula is true: INCOME – OUTGO = EXACTLY ZERO

It really is that simple.

However, before you dive into preparing your best budget ever, I urge you to consider a few tips I’ve learned along the way:

1. Prepare the budget BEFORE the month begins (before you get paid and start spending money). It is very difficult to prepare an effective plan in the midst of already spending it!

2. Be realistic. I found that my previous attempts to budget failed because I was lying to myself and not being realistic.

3. Put some fun in the plan. It really is okay to spend some money on FUN – as long as you aren’t mortgaging future plans, hopes, and dreams in the process.

4. Use cash envelopes or a pre-paid gift card for categories where you have a tendency to overspend. This has worked wonders for my budget! The categories I use cash envelopes for are groceries, restaurants, clothing, spending money, and entertainment.

5. Recognize that you will forget some expenses – especially in your first few budgets! I’ve seen many people address this by putting a “I forgot!” line item in their budget to cover these forgotten expenses.

Now go put that budget together, and start winning like never before!

Are You Teaching Your Kids About Budgeting?

Are you teaching your kids about budgeting? 

Money is a foreign concept to most children until they are about 4 or 5 years old. It is at around this age they become aware that money has the ability to purchase things. However, most of their financial knowledge is focused on spending because that is what they SEE happening with money.

• Mom gives money to the grocery store clerk and carries groceries out of the store.

• Dad swipes his credit card at the gas pump, and it allows him to put gasoline in the vehicle.

• Grandma gives money to her beautiful grandchildren (your children, of course) and you take the child down the toy aisle to buy something with it.

Since “spending” is what we see happening with money from our earliest days, it is what most children grow up knowing about money. For them, money equals spending.

The important financial principles of giving, saving, investing, and budgeting are not learned. Consequently, grown children leave the house knowing only that money equals spending. This is a recipe for financial disaster!

Here’s a simple thing you can do immediately to change that for your children (grandchildren):

Ask the child to prepare a budget for any money they receive – BEFORE they are allowed to spend any of it.

For example, when my wife and I started teaching our daughter about budgeting, we would give her birthday money. She and I count the money so we know exactly how much she has received, and then I confiscate it. Upon receipt of a well-planned budget, I release the money to her for use. Later on, I do a “check in” to ensure the money has been used according to the plan.

One time my daughter was planning the use of $20. Her first budget had $2 for giving, and $18 for spending. I rejected it because there was no saving or investing. Her revised plan showed $2 for giving, $0.25 for saving, and $17.75 for spending. She gave the budget to me with a smile – knowing there was little chance of it being accepted.

I rejected it.

Her third try included giving, saving, investing, and spending. I released the funds to her.

Here are the reasons I love this process:

1. Teachable Moments This process creates space for “teachable moments” about money. It forces a conversation about the importance of giving, saving, and investing. It allows us to talk about the “spender” mentality that we both share.

2. Learned At Home Before my daughter enters the real world, she is receiving real financial knowledge that will set her apart. She knows what a mutual fund is and how it operates.

3. The Pain of Wasting $20 is Less Than The Pain of Wasting $20,000 I want her to recognize the pain of poor financial decisions NOW when she is making $20 decisions so she doesn’t have to learn the lesson with a $20,000 purchase later.

4. My daughter actually enjoys the process It has helped her save a substantial amount of money toward her first car. She has financial margin. She knows her parents care about her.

I have my daughter use our FREE BUDGETING TOOLS.

My book, What Everyone Should Know About Money BEFORE They Enter The Real World, is a perfect resource for helping your child start out life with the financial tools and principles essential to life.

4 Ways To Make Sure Grad Season Doesn’t Break The Bank

Graduation season is right around the corner, and while it's a time for celebration and excitement, it can also be a major financial strain. From graduation parties to gifts and everything in between, the costs can quickly add up. But it is possible to ensure that grad season doesn't break the bank, with these tips: 

1. Create a Plan:

The first step to ensuring a budget-friendly graduation season is to create a plan – specifically, a budget. Sit down and closely examine your finances, identifying how much you can realistically afford to spend on graduation-related expenses. Consider all aspects of graduation season, whether your child is graduating or several young people you know are graduating. By establishing a budget upfront, you'll have a defined plan and can avoid overspending on unnecessary items.

2. Identify Biggest Costs:

Within your budget, take time to identify the largest costs associated with graduation season. List them out. Whether it's hosting a graduation party, purchasing gifts for friends and family, or covering the costs of graduation attire and accessories, pinpointing the most significant expenses will help you prioritize your spending and allocate your budget accordingly. 

3. Identify Unexpected Expenses:

After you outline the largest costs, take time to factor unexpected expenses into your budget.  From last-minute party decorations to unforeseen travel expenses, having a buffer in your budget for these unexpected costs will help prevent any financial surprises from derailing your plans or leading towards debt! 

4. Get Creative:

If your family is hosting a graduation party this year, get creative! Consider DIY-ing elements of the celebration where you can. Whether it's catering in the entree and making the sides yourself or creating homemade decorations and party favors, there are plenty of ways to throw a memorable and budget-friendly graduation party. If this is your second time hosting a grad party, consider reusing decorations from previous years! Get your friends and family involved, tap into your creative side, and watch the savings add up!

As graduation season approaches, it's important to create a plan, identify the largest costs, anticipate unexpected expenses, and get creative with your celebrations. It is possible to enjoy a memorable and meaningful graduation season without sacrificing your financial stability!