Author: Sahel Tamayo

There are some instances when it is all too easy to be worry-free when it comes to debt. More often than not, this is because individual payments are often affordable and relatively low. A lot of people never feel stressed out about their debts until things go out of control. And sometimes, when it happens, it is difficult to start paying off your debt quickly. 

Below are the ten reasons to pay off your debt to convince you to tackle your financial obligations as soon as possible. 

1. Enjoy Your Income Better 

If you have a lot of debts, the payments can easily eat up most of your income. But, if you can pay off your debt early, you can fully enjoy your income every month that you can use for other purposes, like a vacation or even a home renovation.

2. Retire Early 

When all of your debts are paid off right away, you can put the extra money you have into investments. Once your retirement accounts are enough, you can look forward to retiring at 65 years old or even earlier. 

3. Free Yourself from Risks 

Having a ton of debt can bring so much risk to your life. If you are neck-deep in debt without any emergency savings to back you up, a financial disaster can wreak serious havoc in your life. 

4. Improve Your Credit Score 

Your credit rating can take the blow of carrying lots of debts. But, if you can manage to pay off all of your debts, or at least most of it, you can expect to see an improvement in your credit score. 

5. Have Fun in Your Job 

Being in debt can have a negative impact on your career or profession, especially if it keeps you up all night and affects your productivity. But, if you are debt-free, you will feel happier and more contented with your job. 

6. No More Stress

Debts can be the biggest source of stress in your life. When you pay off your debts early, you can free yourself from these financial burdens and the stress that comes with them.

7. Boost Your Mental Health 

Aside from stress, debt can also be the main culprit behind depression. By eliminating your financial obligations, your mind will be more at peace and you won’t fall into the dangers of depression and anxiety. 

8. Promote Self-Esteem

Your self-esteem is also affected when you have a lot of debt to deal with. You can enjoy higher self-confidence when you know that no debt will bog you down.

9. Enhanced Cognitive Function 

Aside from being an emotional problem, debt can even impair your ability to reason and think. When your cognitive function is weak, it will also worsen your capacity to make financial decisions. If you have no debts to worry about, you can become a better decision-maker. 

10. Less Prone to Illnesses

Finally, another somewhat unique reason to pay off your debt fast is that it can make you less susceptible to diseases. Since stress damages, not only your mind but also your body, being debt-free can benefit your immune system so you can be free of infectious diseases. 

Pay off your debt whenever you can and enjoy these benefits soon!

At first glance, $100,000 might seem like a big amount that is impossible to achieve and save. But, the good news is that it is not. As long as you got the discipline and a smart strategy in place, learning how to save your first $100,000 can be as easy as 1-2-3. 

It All Begins with Your Mindset 

Training your mind is often the most difficult step in the process of saving your first-ever $100,000. It is important that you are one with your goals. To do this, write down all of them on sticky notes that you can put around your house. It will serve as your motivation to stick to your goals so it will hurt less if you sacrifice your favorite pastries just so you can save some money. 

Start Small

Nothing good will come out of setting large goals and making several major sacrifices in all aspects of your life. It will only lead to failure if you aren’t too careful. It takes 21 days or more to start forming a new habit. You have to be patient enough with yourself. Don’t punish yourself if you give in to the temptation of your daily cup of Iced Americano. 

It might take some time before the new habit sticks with you. Start with habits that you could change and follow for several weeks. The initial change will make you feel excited enough and serve as your motivation. After that, you can start adding more habits, such as setting spare change in a jar, bringing pack lunch to work, or buying only food on sale. 

Track Your Budget 

If you are really serious about saving $100,000, you need to deal with that much-dreaded word, none other than budget. However, it is not enough that you just create a budget. You need to keep close track of every dollar you spend down to the last penny. There are software programs that can help you with this or you can also use a spreadsheet that you update several times weekly. 

Record everything, whether you pay with cash or a credit card. Check every category after 3 months. Pay extra attention to categories with overspending and think of a way to change it. Once again, start with small changes. Think of the reasons why you overspend in a certain category and make some small changes to enjoy big results. 

Learn to Say No When Shopping 

Being a careful shopper is one of the easiest ways to save your first $100,000. In this modern world filled with instant gratification, everyone is guilty of buying unnecessary stuff. Before getting that must-have little black dress or getting that latest gadget, step back first and sleep on it if possible. If you wake up the next morning and you still feel that you need that item, go ahead and buy it. But, there is a big chance that you will have a change of heart or even completely forget about it. 

Saving $100,000 is not impossible or hard at all. It may take dedication and patience but one thing is for sure – it is very much possible. 

 

It is no longer easy to find a job these days. In fact, it is already hard enough to look for a job in the first place. So, the moment you actually land a job, specifically something that lets you use your abilities, skills, and your passion, you cling to it as much as you can. 

How can you keep your job, then? Here are five ways to never lose your job and ensure that you stick to it for as long as possible. 

1. Support the Goals of the Company 

Start by taking the time to get to learn about the objectives and goals of the company you belong to and how your job aligns with these goals.

For example, if you are part of an agency with a goal of growing its revenue by up to 20%, you need to understand whether the accounts you are working on are stability accounts or growth accounts. If you are working on growth accounts, try to watch for good opportunities that will help deepen the relationships. 

On the other hand, if you are working on stability accounts, you have to make sure that the account stays in good condition and remains profitable at the same time. Once it is time for you to review your performance, you will be able to present your progress in such a way that will show that you are actually thinking of the bigger picture. 

2. Be Passionate in What You Do 

This one is very important. Make sure that you have a genuine passion for the things that you do. You will be on your way to failure if you only look at it as just a job and nothing. You have to realize that even if your position is small, you still play an important role in the company’s success. People who are passionate about doing even the most mundane of tasks tend to be happier and last much longer in their jobs compared to those who simply go with the flow. 

3. Don’t Stop Learning

Work on your professional development and always stay on top of your field or industry. Companies usually invest in different resources and programs with the aim of improving the knowledge and skills of their workers. Make the most out of these offered programs. In case your company doesn’t provide such options, you should take the initiative of pushing your education forward. Attend networking events, have one-on-one discussions with your superior and read industry publications to brush up on your knowledge. 

4. Be Bold and Have Your Own Opinion 

Companies prefer people who have their own points of view. It doesn’t matter if yours is right or wrong because what is important is that you actually got a say on something. 

5. Learn When to Say No

Finally, never hesitate to push back on some projects. Many professionals are too eager to help the best that they can only to get things out of control. Understand your current bandwidth and priorities. If you were asked to do something but you know you cannot finish it, don’t be afraid to say no. However, make sure you do it respectfully and provide alternative solutions. When you do so, you will earn the respect of your boss and colleagues. 

Saving money is everyone’s goal or at least making more money. After all, who wouldn’t want to have some spare cash, right?  

If you wish to finally fulfill your dream of having more savings, $500 is a decent enough amount that can serve as your starting point. 

Take a look at the following five quick ways to save $500:

1. Double Check and Save on Credit Card Fees

If it is impossible for you to make monthly payments on your credit card, you can call and request for lower APR rate. While it might seem a bit awkward, this is something worth doing if you want to save some money. Credit card debts are a serious burden for most people and are also among the worst types of debts due to the excessively high-interest rate. With a temporary 0% APR or lower interest rate, you will not just save money but also pay off your debt faster. 

2. Consume What You Have in Your Pantry

No matter how much you love eating out, one of the best and easiest ways to save $500 is to eat most of the items available in your pantry to reduce your expenses. Cutting down on your trips to the grocery can help you save more money. Instead, try to use those staples that are already available in your kitchen. Buying more than what you need is going to lead to more expenses. The added advantage to this is that you can also reduce your food waste in the process, making it a true win-win situation. 

3. Prorate Your Utilities

When you notice that your heating or electric bill tends to increase and decrease during specific months, you might want to prorate your utilities. This can work really well if your heating or AC unit is running for half of the year. By prorating your service, it will be easier for you to predict your utility bill every month with no need for you to wait around just to see how much it will be every single month. 

4. Make Adjustments in Your Phone Plan 

Smartphones can be very tricky. These devices can get really expensive and before you know it, this expense is already eating into your budget. And since your phone is a necessity, you cannot just simply ditch it. What you can do instead is to adjust your phone plan. Ensure that you get the best deal and choose only the plan based on your needs. Downgrade your plan to the lower tier to get rid of those add-ons that you don’t need in the first place. Doing this can easily let you save several dollars a month. 

5. Sell Something 

Rounding up the list of five quick ways to save $500 is to bring a little more money by selling something. Check your closets to see if you got some stuff that you can sell online or through a garage sale. For all you know, that old dress you have been clinging on to for so long might easily give you a few dollars that you can put into your savings. 

Everyone makes mistakes, especially when it comes to borrowing money. Maybe you borrowed more than what you need or you failed to estimate the financial consequences of your debt. 

Whatever it is, mistakes are quite common. However, it is doesn’t that you can continue doing the same mistakes over and over again, though.

Below are the top five big mistakes people make when borrowing money together with some helpful advice on how you can avoid them to save not just money and time and make well-informed financial decisions. 

1. Borrowing More Than the Amount You Need 

The last thing that you can do is to ensure that you don’t borrow an amount that is more than what you really need in the first place. You should try to borrow only when you need it the most or when the loan can give you more value in the long run. If not, your repayments are just going to get bigger.

Aside from that, applying for smaller loans can also increase your chances of having your application approved. It simply doesn’t make sense to deal with uncalled for or unnecessary stress in your life so make sure you don’t borrow more than what you need.

2. Considering the Borrowed Amount as Free Money and Letting Your Emotions Take Control

Once the approval process is finished, there are people who get too emotional and others might think of it as if they won the lottery. However, the stark reality is that there is no such thing as free money. You need to pay this back to your lender as soon as you can. Make sure that you check if you are comfortable enough in paying the amount before you decide to borrow. 

3. Forgetting about the Research Part 

Some people just want things to be done as fast as possible that they often forget to spend time researching what they are getting themselves into. Just as how you visit several shops first before you decide to buy something in the hopes of finding a better deal, make sure you also shop around for loans before you apply for one. The more places you look into, the higher the chances for you to get a better deal. Take advantage of the internet. If possible you can also go visit your local banks to know more about their offers. 

4. Not Maintaining a Good Credit Score

Try to improve your credit rating before you decide to borrow money. When you have a healthy credit score, it will be easier for you to avail of loans both in the present and the future. And even after you borrow, see to it that you pay time and regularly to boost your overall credit score. 

5. Not Paying Attention to Additional Payments

People in general usually neglect the additional fees they need to pay for the money they borrowed. It is a must that you carefully go through the documents and negotiate whenever possible. It is also important to ask questions before you sign on the dotted line. Inform your lenders about your thoughts and worries. Being honest can help you score the best deal. 

Never rush into getting your hands on some cash. Take it slowly, create a plan, and stay away from these mistakes. 

The COVID-19 pandemic has rendered millions of people jobless. Although unemployment benefits are there to help combat its effects, most of the time, these are not enough to replace a regular paycheck. 

This is one of the reasons why in late March, an economic stimulus package was introduced. It has several provisions and among this is the one-time payment of $1,200 for all eligible Americans with income under a particular threshold. 

The COVID-19 stimulus checks have started to land in mailboxes and bank accounts. If you are also getting one, chances are you are wondering how you should spend this money. Always remember that the government issued these checks to help families meet their basic living essentials. 

If you didn’t lose your source of income and you are still lucky enough to have a job, you have plenty of choices on what you can do with this money. On the other hand, your choices might be limited if your income was cut or you were laid off. 

Make sure you consider your family’s needs and financial situation when planning how to spend this money.

But if you need some ideas, here are the top 5 things to do with your stimulus check:

1. Meet the Basic Needs of Your Family 

You can use the check as a supplement for your reduced income. As there is no way to tell how long the pandemic and its harsh effects will last, you can try stretching the money out for 3 to 6 months. This might not be that much but it could make things a bit more endurable. 

2. Set It Aside for Your Savings 

If there is no need for any income supplementation, you can add it to your emergency fund. Continue building your savings because life can be so uncertain, after all. 

3. Pay Down Your Debts

After your basic needs are met and you have put some money into your savings, it is now time to deal with your debt. Pay off your credit card if you can and reduce the balance of your credit limit to 30% or lower. If you got existing loans, determine if you could pay some extra toward the principal. The amount doesn’t matter because any amount helps. 

4. Start Investing in Yourself 

Try to learn new skills, take online courses to improve your marketability and help you land a better job position, or start your own side hustle. Find something that will enrich and add value to your life. 

5. Invest in Your Financial Future

Some online platforms let you start your investments with a very minimal amount. Take this as a chance to test the waters and learn the market. These platforms are perfect for budding investors and could also help you increase your comfort level and build your confidence. These small steps to investment are the steps you can take to secure your financial future. 

Use this list of the top 5 things to do with your stimulus check as your guide to ensure that the money won’t go to waste. 

 

The pandemic means that times have become stressful not only because it is a health-based emergency as it is a financial-based emergency as well. Knowing how a pandemic can affect your money will make it easier for you to plan in advance so you can make it through the tough times. 

As the coronavirus affects the way consumers invest, spend, and save their money, especially amidst unemployment, there are several things you can do to ensure that your personal finances won’t suffer negatively. 

Refinance Your Student Loans 

People who are still bogged down by their student loan debts can think about refinancing these into loans that have the lowest interest rates. In turn, this will decrease your payments every month to a more budget-friendly level. Interest rates are now kept at record lows to help people pay down most if not all of their debts.

People with credit scores that rose recently must make the most out of refinancing because lenders check the credit history of a consumer when considering the interest rate they will offer. 

Pay Down Your Existing Debts 

If you have extra money, now is the time for you to pay more than your minimum payment every month so you can save money on fees and interest for personal loans and credit cards. Making smaller payments means that interest is going to continue accumulating over longer periods of time and this will cost you more money down the road. 

People with good credit might want to apply for a personal loan or credit card with introductory offers with lower interest rates to lower your monthly payment amounts. 

More traction can be enjoyed if you will move your balances to lower lines of credit or interest rate loans or negotiate much lower interest on your accounts. 

Always pay the least amount on loans that have the lowest interest rates and make the highest payments possible on those accounts that have the highest balances. 

Doing this is the shortest and fastest way to pay down your existing debt. Consumers who want to see steady and constant progress can opt to adopt this strategy of paying the smallest balances off first. Although this one might take a bit longer to get rid of your debt, it can be one of the best ways of keeping yourself psychologically motivated to follow through with your plan. 

Build Up Your Savings 

This current pandemic has become an unfortunate reminder for every one of the importance of having emergency savings in place aside from long term investments for your retirement. A good step to save money easily every month is to take advantage of automatic payroll deductions that could be transferred to your savings account. 

To take advantage of your emergency savings, it means you need to look for higher-yielding accounts such as certificates of deposit. 

It is important that you save a minimum of 6 months of expenses. However, you have to consider increasing this amount to 9 months to 12 months since it might take longer to obtain employment during a recession. 

Your goal should be to save 15% of your income if you hope to retire comfortably. 

More than knowing how a pandemic can affect your money can take on money forms, it is important that you do everything in your power to keep it as safe as possible.