Money Questions and Answers

When It Comes to Investing, Beware of “Di-Worsification”

The following is a guest post about diversification by Robert F. Roby, author of Wealth Simplified: The Secrets of Everyday People Who Retire Richer, Happier, and Earlier. If you’d like to submit a guest post to Money Q&A, be sure to check out our guest posting guidelines. A common refrain used by investors and advisors to describe diversification is “Don’t put all of your eggs in the same basket.” In its most simplistic terms, diversification means allocating your investment dollars to a variety of different assets, such as stocks, funds, bonds, and deposit products, within different sectors of the economy. Diversification typically involves investing in companies of different sizes, both large and small alike, in different industries and different sectors, … Read more

Best Way to Save for Retirement When You Are in Debt

by Hank Coleman

Getting (and staying) out of debt and saving regularly for retirement are some of the most important personal financial habits that everyone should be doing, but having a finite income with conflicting financial priorities understandably complicates matters. If you have student loans, a running balance on your credit cards, or other outstanding debts in the 4+ figures range, how should you balance your debt repayment plan (short-term goal) with your retirement savings plan (long-term goal)? What is the best way to save for retirement when you are in debt? Best Way to Save for Retirement When You Are in Debt The answer to this ultimately depends on the amount of debt and the interest rate you’re paying. Still, a generally … Read more

What Are Third Party Lease Buyouts and Are They Worth It?

by Hank Coleman

Although leasing a car is typically viewed as a not-so-financially savvy decision, there are certain situations in which leasing a car can actually be the best possible option. Whether you really like having the latest safety upgrades in your vehicle or perhaps you’re planning to move cross-country or overseas within a couple of years, leasing a car can be a good fit for your situation. And you might even be able to make a profit from it! What about thrid party auto lease buyouts? Did you know that some lease lending companies allow consumers to sell their leased vehicles to third parties? And, if demand for used cars is high – like it is in 2021 – then you could … Read more

How to Stop Impulse Spending and Conquer Impulsive Online Shopping

by Hank Coleman

Many people struggle with impulse spending at some point in – or throughout – their lives. Still, there are different factors influencing the severity of the impulsiveness and financial consequences of a dopamine-fuelled shopping spree. For instance, a 2016 study from Princeton Survey Research Associates International found that people were more likely to buy in-store than online – possibly due to the immediate gratification factor, compared to waiting for an item to arrive in the mail – and the most common impulse purchases are under $25. This may not sound like a problem, but little costs like unnecessary, impulsive purchases can really wreak havoc on your budget over time if you’re not careful. Furthermore, with millions of people stuck at … Read more

Top 4 Easy Steps to Take When Your Budget Fails and Goes Off the Rails

by Hank Coleman

Budgeting can be a challenge for many people, even if you’re good with numbers and diligent about regularly tracking your income and expenses. Sometimes, life gets in the way, and the budget goes out the window, whether it’s due to an unexpected and costly emergency or an extended period of impulsive shopping and overspending. But, what do you do when your budget fails and goes off-kilter? Steps to Take When Your Budget Fails The first step to getting back on track with your budget is by recognizing there’s a problem. Denial can be a powerful defense mechanism against confronting a problem spending habit, so there’s no point in making excuses like “I’ll spend within my means next month” or “It’s … Read more

Why Timeshares Investments Are Bad and What to Do If You Own One

by Hank Coleman

Ways to get out of bad financial decisions

Sales of timeshare vacation rentals have been consistently growing for the past 10 years, according to the American Resort Development Association (ARDA)’s State of the Vacation Timeshare Industry 2020 U.S. report. The same report also found the average weekly timeshare sold for more than $22,000, resulting in more than $10.5 billion in American consumer spending on timeshares in 2019. But how can this be? Aren’t timeshare investments known for being terrible money pits? Not necessarily. As this comparison from Consumer Reports shows, the first several years of timeshare ownership make little financial sense until you reach a point where the costs of renting similar accommodations for the same timeframe would have outweighed the costs of the initial timeshare buy-in and … Read more