It's nice to have a little cash to wave around, especially if that wasn't always the case. Nevertheless, you really need to rein it in or you'll end up practicing lifestyle inflation. What's that? In a nutshell, it dwells on the logic that an increase in income should automatically lead to an increase in spending habits. This is a dangerous ideology that can ruin your financial health and keep you stuck in the rat race of working just to pay the bills. The thing is, it's only human nature to want to improve your social and economic standing. … [Read more...] about The Dangers of Lifestyle Inflation and How to Combat It
Personal Finance
How to Separate Your Paycheck from Your Discretionary Spending
Did you know that half of American families live paycheck to paycheck? That number may seem astounding, but considering how high costs of living are nowadays and how wages don’t seem to be catching up with those costs, maybe it’s not so surprising that so many families live paycheck to paycheck and as many as 1 in 3 Americans have less than $500 saved up to cover emergency situations. It’s never been more important to separate your paycheck from your discretionary expenses because we never know whether our health insurance premiums might go … [Read more...] about How to Separate Your Paycheck from Your Discretionary Spending
4 Ways I Would Change Dave Ramsey’s Baby Steps in 2020
The following is a guest post from Ben, publisher of the blog - Saved by the Cents. If you'd like to submit a guest post to Money Q&A, be sure to check out our guest posting guidelines. You may be reading the title and thinking that I completely disagree with Dave Ramsey’s Baby Steps to achieve financial freedom. It’s actually quite the opposite. I have a lot of respect for Dave Ramsey. I also believe that what he’s done has been quite instrumental in my life and many people I have come in contact with. If you aren’t familiar with … [Read more...] about 4 Ways I Would Change Dave Ramsey’s Baby Steps in 2020
Three Ways To Ruin Your Own Financial Recovery
Things are looking up with the economy as more economic indicators are turning positive. In the past couple of weeks, we have seen positive signs from unemployment, housing starts, consumer spending, and of course the stock market. But, how can you have a financial recovery? But, there are a few ways that you can trip yourself up and screw up your own personal financial recovery. It does not have to be that way though. You can avoid these stumbling blocks and continue your own recovery. Three Ways to Ruin Your Financial Recovery Not … [Read more...] about Three Ways To Ruin Your Own Financial Recovery
5 Simple Ways to Save Money During the COVID19 Pandemic and Beyond
The coronavirus pandemic has thrown most non-essential business operations and work schedules into disarray. Many companies have laid off their employees, and many are unsure of when they'll receive their next paycheck. Adopting new saving habits is a smart move during these uncertain times. Save money during the COVID19 is almost inevitable if you wish to get by. While your finances may seem messed up at the moment, worry not. I have come up with five ways to help you free up some cash and rack up your savings. Don't Stockpile … [Read more...] about 5 Simple Ways to Save Money During the COVID19 Pandemic and Beyond
Have an Extra $1,000 in Your Savings Account? Here Are 3 Ideas!
Did you know that you’d only earn about $8 in interest if you put $1,000 in a savings account for 10 years? The national average interest rate for savings accounts is a measly 0.08%, which is a drop in the bucket compared to the potential returns you could get if you invested that money instead of leaving it in a regular savings account. Of course, the next option – Certificate of Deposit – isn’t much better, with current rates hovering around 1-2% for 24-48 month terms ($40 in interest for a $1,000 CD at 24 months or $82 for the same … [Read more...] about Have an Extra $1,000 in Your Savings Account? Here Are 3 Ideas!