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“Money isn't important, but you have to have enough, so you don't have to think about it. Thinking about money is a drag.”

—

Jarvis Cocker

Well said, Jarvis.

Maybe You Don’t Really Need More Money

becomingminimalist.com

Even though our basic needs have been met, our desire for money persists. Far too often, this desire begins to take root as a need inside of us. Before we know it, we forget that we were talking about a want and begin confusing it with a need. But what we need and what we want are rarely the same.

We don’t really need more money. Instead…

Again, we don’t really need more money. Maybe what we really need is far more difficult to discover… but also, far more valuable.

“I'd like to live as a poor man with lots of money.”

—Pablo Picasso

66 Websites That Will Save You Money

Blogs

Budgeting and Personal Finance Tools

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I'm going to be an adult for a moment and talk to you guys about An Important Thing

Namely, your finances.

OH GOD SO BORING I KNOW I’M SORRY.

But the thing is, I’m like, old. I’m 37.  And I made a lot of mistakes when I was younger and I really wish someone had explained some stuff to me back then so maybe I can write a thing and help some of you guys out.

Okay so hopefully you know about stuff like having a job, getting money for said job, and you have at least a checking account.  If you don’t know about these things you can ask questions.  Seriously.  I am not like an all knowing person but I have probably done some things you may have questions about and I can relay what I know.

Anyway, what I wanted to recommend are are two really important things I’ve found that are EASY and HUGE HELPS.

1) Please buy and read this book. UGHGH BOOKS AND IT MIGHT BE BORING I know.  Really.  But someone recommended this book to me a few months ago and I bought and read it and it was so extremely helpful.  It was written for EVERYDAY PEOPLE of low (like, even down to minimum wage) to middle income ranges so quite likely, it is relevant to you.

For me, there were 3 parts to that book.  Some of it didn’t apply to me right now but might in the future.  Some parts were REALLY RELEVANT TO ME RIGHT NOW and basically revolutionized how I’m taking care of my money.  And some of it was “Ugh I learned THAT the hard way and I realllllly wish I would have read this book 15 years ago” (long before it existed.) But if you’re like, 0 - 20 years younger than me there’s a lot of really good stuff in there that could really save you a lot of pains in the future.

Note that that link isn’t an affiliate link or anything.  I just am recommending it because I think it’s extremely good and helpful and sincerely think a lot of people should read it.

It’s going to teach you how to divide your income to help you spend the rights amount of money on the things you need, the things you want, and how to save money, as long as you’re actually getting income.  Even if your credit is terrible and you’re already in a heap of trouble financially it’ll help you get out of those problems and even talks about how to deal with creditors and the best ways to deal with your debt.  If you’re barely scraping by, it’ll help you get on your feet and get some money put away.  Or if you’re just starting out, it’ll help you stay out of trouble.  Or if you’re like me and doing pretty well but don’t feel like you have a really solid plan and need to know WTF to do now that you’re stable and want to make sure you’re going in the right direction, it helped.  The point is, seriously you guys, spend $10.20 on that book and it could really help with your financial future.

And life is really so much better when you have a plan.  Even if you’re not where you want to be, even if you’re deep in trouble, having a plan to get out of trouble and/or to get where you want to be feels 100% better than ignoring it and hoping you win the lottery or it’ll all work out on its own eventually (you won’t and it won’t.)

2) Mint.com.  Mint is a free site that basically organizes your financial life for you. You let it look at your accounts and you can very easily see how you’re doing financially with it.  (It’s read-only, you can’t move money around with it, they use 128-bit encryption etc.  It’s about as secure as it can be.  If you’re worried about security, read here.) You can do budgeting, you can set goals for yourself, you can get alerts when you have major transactions happen or you get low on money in an account, all sorts of stuff.  It’s kind of hard to explain everything Mint does, but it has a good explanation page here.  Personally I have 5 accounts at 2 different banks for various savings and checking accounts, I always know where all my money is, and I can always easily tell what I’m spending too much money on with it. 

If you don’t use Mint, then find another way to keep track of what you spend and how much you spend on it.  Figure out what you spend way too much money on and how you can start getting yourself to save some. I can’t really tell you how to do this because I’ve been using Mint for many years and it works very well for me.

I could talk for a long time about all the dumb mistakes I made when I was younger.  How I ruined my credit, how I paid over $4000 for a $1700 bedroom suite (and by “suite” I mean a bed frame, headboard and a dresser), how I ran up credit cards, how my parents had to bail me out, how my mom had to co-sign when I bought my house, and a lot of other really, incredibly stupid things I did.  But I won’t, unless you really want me to. Don’t be dumb like I was.  I know thinking about your finances is some how both boring AND scary but taking even just a few hours out learn, put some serious thought into stuff and start doing SMART things now can save you a world of hurt in the future.

Becoming an adult is really scary, and if you guys have questions or want advice about being an adult stuff, you can ask me.  If this is at all helpful to you, and you want me to make more posts like this, mash like or something to let me know.

Create a budget with these simple steps

Financial advisors will be the first to tell you: if you want to buy a house, get out of debt, save for retirement, or achieve any other financial goal, you have to make a budget.

There are many online tools to help you with budgeting, including mobile apps. But you don’t have to have access to technology to create one. All you need is a pencil and some paper. These tips will help you get started.

Track Your Spending

For your budget to be effective, it´s important to know exactly where you’re spending your money each month.

  • Write down all fixed monthly expenses or use your favorite online tools or mobile apps to track where the money goes.
  • Make sure to include your cash expenses since they can easily go unreported, especially if you’re using computer software.
  • Add seasonal or annual expenses such as car registration, tax preparation fees, vacations, or expenses related to the holiday season.

Track at least two months to get a sense of your average of expenses and avoid high or low months.

Track Your Income

The second part is identifying your monthly income. It is important to be accurate since you will be making financial decisions based on what you make. To make an accurate assessment:

  • Write down all net income from each job or income source for one month. This may include regular salary, temporary jobs, unemployment compensation, and public assistance. If the amount varies, average it out to the last 12 months.
  • Include income that occurs less frequently like annual bonuses, dividends and interests, tax refunds, etc.
Make a Budget

Once you’ve identified your expenses and income, it’s time to make a budget. Consumer.gov has lots of information on creating a budget, but you can also follow these quick tips:

  • Create a document with two columns: one with your monthly income and another with your monthly expenses. FDIC.gov has an example of a budget worksheet (at the end of the page).
  • In the expenses section, separate them by fixed and flexible. That way you can prioritize your monthly expenditures.
  • If monthly expenses exceed income, then you have to look for ways to reduce expenses or make more money. It’s usually more feasible to reduce flexible expenses such as mobile phones bills, water and electricity.
Stay Flexible but Focused

It is ideal to have a monthly budget where income is greater than expenses, and where the budget includes a monthly savings amount. This can help you balance your family budget. Because things can change month to month, experts recommend that you remain as flexible as possible and adjust when needed.

Play

“Frugality isn’t about cutting your spending on everything. That approach wouldn't last two days. Frugality, quite simply, is about choosing the things you love enough to spend extravagantly on—and then cutting costs mercilessly on the things you don't love.”

—Ramit Sethi

How to Choose a Credit Counseling Agency

It’s easy to get into debt. It’s much harder to get out of it.

Fortunately, there are credit counseling agencies that can help you get your finances in order. They can help you figure out a budget and stick to it while managing your debt and avoiding future financial pitfalls.

However, not all credit counseling agencies are the same. Some offer free or low-cost services while others charge high fees or might not be trustworthy. The following tips will help you choose the right credit counseling agency.

Look for Agencies with a Good Reputation

Most reputable credit counseling agencies are nonprofits that offer free or low-cost services. However, the fact that an agency is a nonprofit does not guarantee that it is affordable or that it has a good reputation. Here are some tips for selecting a credit agency you can trust:

  • Ask family members and friends if they can recommend an agency. It’s best to pick one that has been around for several years and has a well-established reputation.
  • Use credit agencies or credit counseling services referred by credit unions, banks, universities or military bases.
  • Choose a credit agency that’s been approved by the Federal Government.

You can also check out state and local consumer agencies to find out if a credit agency has complaints.

Compare Services and Costs

Once you have a list of agencies you can trust, the next step is to take a closer look at the services and costs they offer so that you can choose the one that best serves your needs. Be careful with credit agencies that charge high fees for services that you can get for free somewhere else.

Some of the most common services offered by credit agencies include:

  • Professional, person-to-person assistance with managing your money and debt.
  • Help putting together a family budget and sticking to it.
  • Free workshops and educational material.
Ask Lots of Questions

Before finally choosing a credit agency, it’s worth writing down a list of questions you might have so that you can avoid surprises such as hidden fees or limited services. Here are some questions to help you pick the right credit agency.

  • Are there different fees for different services? Some agencies might charge for initial consultations or a monthly fee. Be careful with agencies that pay their employees more depending on the services you sign up for.
  • Will you be signing a contract before getting counseling? If so, be sure to read the contract before signing it.
  • Does the agency have the right certifications to provide credit counseling? It’s best to use agencies that have been certified by independent organizations.
  • What is the privacy policy of the agency? It’s important that your personal and financial information is protected.

“Make a will. Pay off your credit cards. Get term life insurance if you have a family to support. Fund your 401(k) to the maximum. Fund your IRA to the maximum. Buy a house if you want to live in a house and you can afford it. Put six months’ expenses in a money market fund. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.”

—

Everything you need to know about money by Scott Adams, the creator of Dilbert.

87 words of pure and simple gyaan. Too often we complicate how we go about securing our futures. Too often we neglect them because we think its too complicated 

This is as simple as it gets,

Many people who follow me on Tumblr are in their teens or 20s and this piece of advice is for them in particular. I didn’t start saving and building a portfolio until I was 30. Don’t make the same mistakes as me.

“How you spend your money is how you vote on what exists in the world.”

—Vicki Robin
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