Monthly Archives: January 2020
9 ways to make your budget actually work
You need a budget. No, really—you need a budget. Even if you just won the lottery and are now trying to decide which castle in Europe you should buy, you need a budget! So how do you begin? Read on for some ideas on ways you can make your dollars count, whether you have a million or only a few.
1. Make a budget
Yes, we already said this. But it bears repeating, because too many people feel that they can maintain a budget in their head. Unless you have a perfect memory, this is not a viable option. Create a written, planned budget that you can adjust as your life circumstances change.
2. Detail your spending
Creating a budget is not the time to skimp on the small details. The more you plan and track your spending, the better your money skills will be. This means you need to plan for different categories of your life, like utilities, the mortgage payment, your taco needs (definitely don’t skip this one), your grocery spending, after-school activities, clothes for growing children, and everything in between.
3. Update your budget
This is another area that may seem obvious, but budgets work by first planning your spending, and then tracking your spending. It is unlikely that you will spend the exact amount for every item down to the penny, but that doesn’t mean you shouldn’t record your spending. Knowing exactly what you needed for each category every month will help you plan for the future.
4. Share with others
This is not a suggestion to post your budget on Facebook. Don’t be that person. But this is a suggestion to share your budget with the people it affects. Your spouse, for instance, needs to be part of your initial budget creation. Making a money plan won’t help if you are the only one with the information.
5. Regularly review your spending
Now comes the hard part—regularly reviewing your budget. Why is this so important? Well, budgets and bikes have one thing in common: you have to practice to be good at them. (They also both start with the letter “B.”) This means that you need to create a regular habit of looking at your budget, seeing where it works and where it needs improvement, and making those adjustments accordingly.
6. Respect your budget
Spoiler alert: Your budget is only effective if you adhere to it. Sure, emergencies happen. But blowing your clothing budget for an adorable pair of heels is not an actual emergency. Stick to your budget as closely as possible in all categories to maximize the efficiency of your hard work.
7. Look for adjustments
Do you still feel your budget could use some improvements, even after you have stuck it for months? Look for areas where you regularly overspend or underspend, and see if adjustments could be made. You may find that your budget needs some reworking to account for changes in your life.
8. Account for emergencies
We already talked about what constitutes a true emergency. Unfortunately, there may come a time where you have unplanned medical bills or need to fly out to visit a sick relative. You can’t predict these things, but you can definitely prepare for them. If you don’t use your emergency funds, great! More birthday presents for everyone. But it’s always better to be ready.
9. Simplify your budget
There are dozens of options for creating and tracking your spending. Our vote is for something useful and easy to operate, like the You Need A Budget app for your phone or tablet. The app focuses on spending only what you have available to you, and nothing more. You can even set budgeting goals for the app to track your progress. Having your budget at your fingertips will go a long way in tracking your spending, and preventing those impulse purchases.
We’ll say it again: you need a budget. Whether you decide to track your finances on paper or make use of an app, it all starts with making a plan. Do it, stick to it, and watch as you become a financial force to be reckoned with.
6 tips for stronger savings
If you’re wondering when you need to start saving money for the future, that time is now. Whether you’re saving for a trip, a house, a car, retirement, or something else, setting aside money now for future benefit is an action that has to be repeated until it becomes a habit. Here are several helpful suggestions—perhaps you’re already doing some of them. The more steps you take, the faster your savings will grow!
Tip 1: Avoid instant gratification
Some call it the 30-day rule. Before you make a significant purchase, wait a month. More often than not, your urge to buy the item has waned or passed completely. Now, you’re enjoying the effects of your patience instead of suffering from buyer’s remorse. A short wait can save you a lot of money.
Tip 2: Set up an emergency fund
One of the fastest ways to get in debt is to be financially unprepared for an emergency. This can include everything from a medical emergency or sudden job loss to unexpected car repairs. As a rule of thumb, you should have at least 3–9 months’ worth of living expenses saved up for these situations.
Tip 3: Record your expenses
When you document your purchases, you avoid the familiar “where did all my money go” scenario. This includes even small purchases, such as that fancy cup of coffee. If you want, you can cross-reference your list with your bank statements to ensure accuracy. Now that you’ve collected your data, break it out into categories (gas, groceries, rent, etc.). Where can you trim? Are you going out to eat too much? Maybe it’d be better to brew that java at home.
Tip 4: Automate your savings
Virtually all banks and credit unions offer automated transfers between your checking and savings accounts. Determine an amount that can be automatically transferred and saved without straining your budget. You’ll be surprised how fast your savings account grows. Just set it up and forget it.
Tip 5: Renegotiate your terms
Whether it’s your cell phone or cable bill, the closer you are to the end of your contract, the more leverage you have to get a better deal. Call and ask to speak to the retention department. Let them know that you are considering a new provider and see what they offer to keep you as a customer. You’ll be surprised at how much you can save. Also, keep an eye on aggressive offers from its competitors. It may be time for a switch. The same goes for your home and auto insurance. Get a quote to make sure you’re getting the best price.
Tip 6: Install a programmable thermostat
Why pay to keep your house or apartment comfortable while you’re away? Programmable thermostats can be set to reduce your heat or air conditioning use during certain times to boost energy savings. According to Energy Star, you can save approximately $180 a year with a programmable thermostat. Now that’s a
good investment.
This is just a small sample of what you can do to maximize your budget and savings. The important thing is to get started!
A force of good: Q&A with Dansby Swanson
Born in Kennesaw, Georgia, Dansby Swanson is one of the few MLB players who get to play for their hometown team. Some might say that the talented shortstop is living the dream, but making that dream a reality took a lot of hard work and determination. Dansby was initially drafted by Arizona, selected first overall in the 2015 MLB Draft, but was traded to Atlanta later that year. It was destiny, and Dansby is making the most of his opportunities, on and off the field. Learn more about our local superstar below.
What’s your favorite thing about playing baseball?
I’ve been really involved in sports ever since I was a little kid, especially baseball and basketball. I’d honestly say I loved basketball more. It’s just how I operate. When I need peace of mind, I use basketball to find it. But I’ve also always loved baseball and what it teaches. Not everyone gets the opportunity to learn the ins and outs of what we do in the game. I just think it’s fascinating.
How old were you when you first began playing, and when did you fall in love with the game?
I started playing baseball as a kid, though I didn’t really focus on it until I got to college—that’s when it clicked. I started to get better and better and better. I’d always been undersized, and as I began to develop as a player, my confidence started going through the roof, and I knew that was what I was called to do. So that’s what shifted everything—I always put my head down and worked. It’s been a blessing that I’ve been able to keep that mindset going forward.
Who has influenced you most in your career?
I’d say my dad is the one person I’ve always leaned on, who’s taught me everything that I know. Between him and my college coach, Coach Corbin, and my high school baseball coach, James Beaver, those are my biggest influences.
What lessons have you learned on and off the field that you would like to share with others?
Nothing replaces hard work. People want to find the easier ways to do things, but that never works. You’ve always got to work at your craft. You’ve always got to dedicate time. Also, being blessed with a good family, people who push you and help you grow, that’s support you need during times that are harder. The uncomfortable moments are when you’re going to grow the most. Being able to rely on the people around me during those moments helped me develop both as a player and as a person.
What are your favorite things to do in Atlanta?
Whenever we get time off, I’m a big fan of downtime. I like to relax, hang around with good people, with my dog and my best friends. When I’m off, I also spend a good amount of time in Nashville with my friends. We do a lot of training, and we work a lot, which is really rewarding and valuable. Also, I just love being at home. I’ve never been the kind of person who goes out a lot—I enjoy my downtime. Whether with my girlfriend or my friends, as long as they’re good people and they make me better, I love just being around them, watching football on Sunday and just enjoying the relaxing aspects of life. Most professional athletes don’t get much downtime, as we’re always pulled in a bunch of different directions, so when I have time off, I just like to relax for
the most part.
I also love doing stuff around the community. I like to shine my light on the important people around me, whether it’s people I know or people in the community who deserve a spotlight or some help. That’s part of why I started All Things Loyal.
Other than Atlanta, what’s your favorite city?
Nashville, without a doubt. That’s where I went to school and it’s my home away from home. It’s a good way to get out of Atlanta and all the stuff that goes on around Atlanta for me during the year. Being in Nashville gives me a vacation without having to go on vacation, and I can
focus on my training.
How do you reward yourself after a big win?
I don’t. Winning is what I’ve always expected. Whenever we win, that’s our job. There’s nothing to celebrate other than trying to be better the next day.
Your girlfriend, Mallory Pugh, is also a professional athlete. Who is more competitive, you or Mallory?
I would say we’re pretty equal. We compete in almost everything we do, and it’s fun. We’re competitive people, and we like the same sorts of things. My family is competitive, as is hers, and we just have a great time. The one thing she can beat me in is long distance running and everything related to soccer. Otherwise, I totally win…when we first started dating, she thought she could beat me in ping pong, and that went south really quick! Though, there’s this card game she’s really good at and she beat me a couple of times…I guess we’re both super competitive.
If you weren’t playing baseball, what would you be doing?
Honestly, I have no idea. It’s not like I’ve never thought about anything else outside of baseball, but I’m just so wrapped up in it. It’s what I love, and I don’t settle for anything less than that. Ever since I was about five, I wanted to play major league baseball.
Tell us about your organization, All Things Loyal. What’s it all about, and what motivated you to start it?
I wanted to create the same sense of loyalty and love for the city that shaped me into who I am. I thought it was a good opportunity to highlight all these different aspects of Atlanta that are specific to Atlanta, and it’s great to showcase that pride. We’re from the South, and we’re big on being humble and putting our heads down, but I wanted to say it’s okay to be proud of where we come from and continue developing a strong community together.
I thought t-shirts with unique designs were the best way to highlight Atlanta and the things that helped shape me. I thought it would help show people who I really am. I felt at times that people didn’t know who I really was, what I valued, what’s close and dear to my heart. There were places I wanted to be able to give back to the community, but in a unique way where I was able to share with people who I really am and what I value.
It’s been really meaningful to highlight places like The Varsity. My grandfather and I would go to The Varsity a lot and spend time there together. Music has always been really important to me, too, and while people assume I must be a Southern kid who just loves country music, that really couldn’t be further from the truth. I’ve listened to rap music since I was about eight—that’s why we featured Outkast in our first design. They were my intro to Atlanta as a city. Now, growing up, it’s so cool seeing how important they were to the community and to the city, kind of putting America on notice that Atlanta was a place to be. “Elevators” is an Outkast song that I’ve always loved.
One of the other aspects we want to highlight is the personality of the city. Striving to get better, the importance of being a good person, teaching kids that the coolest thing you can do is to be kind and loving to other people, and to build community through doing and saying the right things.
I’m a big believer in helping kids and the next generation. People weren’t always blessed with the same guidance and love I was given through my family. So, being able to do that for others is important—we have to break the cycle. For example, going to Green Acres Elementary with Georgia’s Own, seeing the kids and talking to them, even doing something small like bringing them pizza, I hope they were happy and it made their day brighter, and that it’s something they can take forward.
Just for fun—what’s something many people might not know about you?
I have a lot of shoes. I’m a big Jordan person—I probably have over 70 pairs. I have a closet set up around my shoes—my clothes just fit in where they can. In the off-season, I probably cook dinner five out of seven nights, as I enjoy trying to make different things while still eating healthy. There’s some peace of mind with that. Another weird thing along that line, people are shocked that I don’t have someone who comes and cleans my house. I do all of that, and I really enjoy it. It’s a peaceful thing to see a task and accomplish it.
The sounds of Atlanta
Atlanta has quickly become the hub for all things entertainment. From music festivals like One Music Fest to movies and TV shows from the newly erected Tyler Perry Studios, the reach of Georgia-centric entertainment is felt not only stateside, but around the world. This especially rings true when it comes to music. Not only is Atlanta home to some of the best and brightest musical talent, but it also opens its arms to equally bright and shining talent from other cities across the map. Let’s take a look at who’s big and who’s ne[x]t in music.
Who’s big…
21 Savage
Top Hits:
- “Ric Flair Drip” w/ Offset and Metro Boomin–334 million views
- “Bank Account”–285 million views
- “No Heart” w/ Metro Boomin–221 million views
One of the biggest names in rap music today, 21 Savage—born Shéyaa Bin Abraham-Joseph in London, England—has called Georgia his home since the tender age of 7, though his maturing process in DeKalb County was any and everything but. Fast forward and 21 Savage has made a name for himself in multiple avenues. He’s used his past experiences to pen gripping tales, which have catapulted his music to the heights of success: his debut album Issa Album peaked at No. 2 on the Billboard charts, and his sophomore effort I Am > I Was earned the coveted No. 1 spot.
In addition, 21 Savage leveraged the success of his first hit single from Issa Album, entitled “Bank Account,” and launched his Bank Account Campaign. The Bank Account Campaign provides resources to teach financial literacy to students across the country. The influential artist has been quoted by Billboard.com, saying that he “…knew almost nothing about bank accounts” while growing up. He followed up with, “As I have gotten smarter about financial management, I realize how empowering it is to control your money rather than be controlled by it,” and, “I want to help kids with a background similar to mine get smart about their money.”
Who’s ne[x]t…
Guapdad 4000
Top Hits:
- “Flossin”–2 million views
- “Gucci Pajamas” ft. Chance the Rapper and Charlie Wilson–1.3 million views
- “Scammin”–529,000 views
When Akeem Hayes landed on the music scene in December of 2017 under the stage name Guapdad 4000 with his introductory mixtape, Scamboy Color, some people, including myself, thought, “Who?!” But the talented young artist from Oakland, CA was not only able to stand out thanks to his unique name—he also managed to turn the casual listener into a fan with his equally unique and authentic sound.
With a penchant for designer labels (just look at his current album Dior Deposits with titles “Gucci Pajamas” and “Prada Process”), the rapper and sometimes crooner has the talent and charm to marry throwback R&B with present-day hip-hop. His new single “Gucci Pajamas” features both soul singer Charlie Wilson (“There Goes My Baby,” “Charlie, Last Name Wilson”) and everyone’s hip-hop favorite: Chance the Rapper (“Cocoa Butter Kisses,” “No Problems”). When asked on Revolt.tv to comment on his sound, Guapdad 4000 said, “I’m a bit more eclectic. My music ranges from however melodic I want it to be. The good thing about my sound is that I’m constant.”
On the horizon…
That Girl Lay Lay
Top Hits:
- “Mama”–16 million views
- “Supersize XL”–14 million views
- “Go Lay Lay Go”–6.1 million views
After getting her start by rapping age-appropriate freestyles like her viral hit “Taste,” 12-year-old Alaya High, aka That Girl Lay Lay, has impressed most by becoming the little girl from Houston with the BIG—some might even say “Texas-sized”—YouTube numbers. That Girl Lay Lay is the youngest female rapper ever signed to a major label, and when asked about her freestyling capabilities during her television debut on Ellen, she responded, “I’m still practicing, getting better at it. You just do what you do…”
How to stop anxiety from ruling your finances
Financial decisions are rarely easy, whether it’s buying your first car or home or deciding whether to refinance student loans.
The anxiety can be heightened for millennials who witnessed economic turmoil during the Great Recession as they weigh milestone financial choices as adults.
“Many [millennials] grew up and saw their parents lose a house or have to delay retirement,” says Brad Klontz, a financial psychologist and associate professor at Creighton University. “Of course, they are going to be anxious.”
In fact, a survey this year by insurance company Northwestern Mutual found that this generation not only has a stronger inclination to make financial plans compared with older generations, but also has a higher level of anxiety about whether they are following the right strategy.
The survey found that 66% of millennials (those born from 1981 to 1996) said they were “highly disciplined” or “disciplined” financial planners, compared with 60% of Generation X (born 1965-1980) and 52% of baby boomers (born 1946-1964).
At the same time, 70% of millennials said their financial planning needs improvement. That’s compared with 68% of Gen Xers and 52% of baby boomers.
There are ways to reduce the stress of financial decisions. Start by identifying your attitude toward money. Then, take action in a way that’s tailored for you and turn to others who’ve been there.
Know your attitude toward money
Most of us grow up with a specific approach toward money, often learned from our parents, imbibed from those around us, or informed by our own experiences.
Being aware of your relationship with money can help you avoid pitfalls like worrying too much. Klontz, the author of several books on finances and psychology, says he’s found four common approaches to money: worship, avoidance, vigilance, and status.
For example, those who are vigilant about money always worry about having enough and experience trouble making spending decisions. On the other hand, avoiders don’t look at bills or statements until they absolutely have to, Klontz says.
Another source of insight about your financial mindset is Gretchen Rubin’s book “The Four Tendencies,” which explores what drives people’s decisions. She categorizes people as obligers, questioners, rebels, and upholders.
“Your ‘tendency’ shapes your perspective on the world and influences what kinds of [financial] strategies will work for you,” Rubin says. For example, a “questioner” likes doing their own research and will only seek outside counsel they trust, Rubin says.
Take actions tailored to you
Once you’ve identified your attitude toward money, use that knowledge to ease the anxiety of financial decisions.
Make a to-do list
a financial to-do list, says Eric Tyson, author of “Personal Finance for Dummies” and a former financial advisor. You could calculate how much money you earn and spend every month or add tasks like saving money for a goal or getting your credit in shape for a loan.
“Prioritize it, get some early victories,” he says. “Don’t beat yourself up thinking you’ve got to do it quickly.”
Stay accountable
If you’re an “obliger” and want to save up for a goal, use accountability to get started and stay motivated, Rubin says. That may be in the form of friends, a financial advisor or thinking about what you want in the future, she says.
Visualize the end goal
If you are a “rebel” who doesn’t like being told what to do and wants to pay off debt, think of the freedom you’ll have when you’re debt-free. Set up automatic payments so you don’t have to think about them, Rubin says. The automatic payments option is effective for anyone, she notes.
Turn to others for guidance
Tyson says the biggest mistake he’s seen people make is that they don’t get advice—or rely on one source—before making a financial decision.
“If your Uncle Joe seems financially savvy, you can run your thinking by him, but you should be selective about taking one person’s advice as gospel,” Tyson says.
If you want an expert’s perspective, turn to a fiduciary fee-only financial advisor. Advisors who are paid by fees only, not commissions, have fewer conflicts of interest; those who follow the fiduciary standard put clients’ interests ahead of their own. Or you can set up a free consultation with a nonprofit credit counselor.
This article was written by NerdWallet and was originally published by The Associated Press.
Amrita Jayakumar is a writer at NerdWallet. Email: [email protected]. Twitter: @ajbombay.
Don’t shop this way in 2020
Overspending can be a serious downer for your budget.
Kind of like that person in the movie theater who kicks the back of your seat: It’s annoying, distracting and ruins your experience.
But that doesn’t mean you should stop spending entirely, just like you don’t have to stop going to the movies altogether. You just need to pick your purchases (and maybe your seats) more carefully.
Now that 2020 is upon us, here are some things you can kick out of your budget and some other changes to consider.
Easy purchases with one-click shopping
Cashless shopping is convenient, but it can be a budget-buster. This year, make it more difficult to spend money online. This could help cut out some of your impulse purchases.
“It is so easy to buy on Amazon,” says Jane Boyd Thomas, professor of marketing at Winthrop University. “You know, one-click shopping. But you can put in your own safeguards to keep you from doing that.”
For example, don’t save your credit card in your online retail accounts. And think twice before using mobile payment methods like Apple Pay. If you have to pick up your physical credit card or part with tangible cash, you might pause and reflect on whether you really want to spend your money on that item.
Excess groceries
Next up: frivolous foods. If you’ve been guilty of throwing away groceries that have gone bad, you’re probably not shopping as efficiently as you could.
“Try eating your way through some of your food,” says Natasha Knox, a member of the Financial Therapy Association’s board of directors and founder of Pax Planning.
“If you are throwing stuff out regularly, you are overshopping on groceries. One hundred percent.”
How can you fix it? Make a grocery list before you shop. Plan out your meals for the week ahead of time. Pick products with long shelf lives.
And be realistic, Knox says. If you’re probably never going to whip up that gourmet meal you saw a chef make on TV, don’t buy the ingredients for it — only for them to be thrown out. You can find plenty of recipes online that require minimal effort and experience.
Premier products
Some handbags are more expensive than others. Some paper towel brands are pricier than others. In just about any store or department you browse, you’ll find options for products of varying prices.
Knox recommends figuring out which high-quality products you really love. Then, be willing to compromise on the rest.
“Everything can’t be as important as every other thing,” Knox says. “So some things have to give.”
Adjust your perspective
This category isn’t a bill to cut from your budget. Rather, it’s a mindset you should remove from your spending habits.
“Stop thinking of yourself as a consumer,” says Tim Howes, professor in the College of Business at Johnson & Wales University’s Rhode Island campus. “Stop thinking of yourself as a shopper. You’re an individual.”
According to Howes, that means focusing less on things to buy and more on nonmonetary aspects of your life, like how you spend your time and the relationships you build.
“It’s really being intentional about every dollar you spend,” he says. “Does this add value to my life or not? When you start to figure out that what matters is relationships, more than material things … you start to change your mindset about what matters.”
It’s easier if you change your perspective, Howes says. Instead of thinking of skipping that trip to Starbucks as a sacrifice, focus on how you’re actually saving time and money.
Get started
However you lighten your load in 2020, consider now a good time to reassess your budget.
“Maybe for some people expenses over the holiday season were particularly high,” says Deeksha Gupta, assistant professor of finance at Carnegie Mellon University’s Tepper School of Business. “Your bank account could be lower than usual, causing you to take pause and evaluate your budget.”
If you don’t know where to start, Thomas recommends writing down all of your spending for at least one month. This exercise can help shed light on where you’re spending — or overspending.
“It’s very painful and very tedious, but it’s very eye-opening.”
This article was written by NerdWallet and was originally published by The Associated Press.
Courtney Jespersen is a writer at NerdWallet. Email: [email protected]. Twitter: @CourtneyNerd.