This post was featured at Mom Is Teaching.
How can you become like Michael Jordan or James Bond in your husband's eyes? You may not have an amazing vertical leap, but you have what it takes to really 'wow' him. How can you become your husband's hero? Make smart moves with your money. Nothing will impress him more than showing him how you are using your money to make your lives easier and more rewarding. Here are three things you can do that will have your husband saying, 'You're my hero!'
Start saving regularly. It's been said that a woman can spoon more money out of the house than a man can shovel in. Basically, don't fritter away money...try to hang on to it! Women do more than 80% of the discretionary spending in the US, and thus, you have the power to save money by not spending it.
It's true that you must spend some money, but ask yourself (and answer yourself honestly) if you really need to spend all that you do. Your (honest) answer will be 'no,' and so you will be able to save at least a bit of money each month. To make it even easier to save, set up an automatic deposit into a savings account each month (just call your bank, or check online.) You won't even notice that the money is gone if you never see it.
Even if you can only save $50 a month, by this time next year that will be $600! $600 that you didn't have saved before! If you can save even more, you will be that much more delighted to report to your hubby that you have a nice chunk of money socked away. And when you tell him, he will probably look pleasantly surprised, dumbfounded, or just haul off and kiss you.
Create a retirement plan. A goal is just a wish until it's written down, and your retirement is just a dream until you have a plan. Take the time today to ponder what you want when you retire. Each time you are waiting at a stop light today, ask yourself, 'What is going to happen when I retire?' Later, write down the things that matter most to you, and what it will take to get them(example: I want to take one trip per year, so I will need $6000 set aside per year for travel.)
Next, look at the total needed for your retirement. Then decide how you will get to that total. Will you save up the entire amount? Will you save some and invest for the rest? Will you accumulate a part of it and work part time in your retirement? The options are as diverse as the retirees. Once you have your retirement plan outlined, pursue it!
Create an investment plan. This one will really blow him away. Use the money you are now regularly saving to invest as you see fit. What is more wonderful than earning money without having to actually do any work? That's right; make your money work instead!
If you don't know a thing about investing, don't be scared. You can be a great investor. You just need to learn a few things to do it. A great place to start is a website called The Motley Fool. Click on their 'Investing' tab, then 'Basics,' and start reading away! If you prefer something more hands-on, pick up the book 'Investing For Dummies' by Eric Tyson. Both of these resources will give you a great start.
Do a bit at a time, no need to be rash. Just telling your husband that you plan to begin investing will delight him, and when you have your plan in motion...well, he'll probably be kissing your feet in adoration!
If you don't have a clue where to start, but really want to be a hero to your husband (and yourself!), sign up for our system and get step-by-step guidance for your money. Just like that, you're on your way to being a real Super Woman.
Become Your Husband's Hero
Personal Finance Fun!
One of our posts has recently been featured on the Carnival of Personal Finance, which was held this week at a blog called The Digerati Life. What is a 'carnival,' you ask? Well, my friend, it's pretty great, is what it is! A carnival is like a blog magazine online. There is a subject for the carnival, and then bloggers can submit posts they have written about that subject. It is a great way to find lots of articles about a certain topic in one place. And it's fun! For this carnival, you will find a myriad of posts about personal finance to choose from, so one is certain to strike your fancy. It's also a great way to learn new things about finance, and we're always a big fan of that! Enjoy!
Retirement Savings: What If You Get Divorced?
Plans for retirement don't usually include a divorce. Thus, most couples that go through this unfortunate split often don't have a clue about what happens to the money that has been accumulated over the years. Divorce is a tragedy in any case, and can wreak havoc on a couple's finances. For this article, we'll focus mainly on what to do with what has been saved for retirement. (There are many things relating to divorce and money that should be addressed, but we'll talk about those another time.) Sometimes the retirement savings can be a substantial amount, and make a serious difference in the lives of both spouses. For this reason, it is essential to have a lawyer who is familiar with this type of law.
By law, each spouse is eligible for 50% of retirement savings, regardless of who contributed the most. These savings are considered a marital asset. Divorcing couples will need to agree on the value of the retirement assets to proceed dividing them up. A good lawyer will help with this. While the dividing of retirement assets is negotiable, women often give up all of the assets in exchange for the home. Each situation is unique, and this may not always be in the best interest of the woman. Sometimes it is more beneficial to procure part of the retirement savings rather than the whole house. Spouses should consider their immediate and long-term needs and assets, and work with their lawyer from there.
Many divorcing couples worry about paying penalty fees to the IRS for moving their retirement savings around. Luckily, there is a court order designed for this situation. A Qualified Domestic Relations Order is used to transfer money from one spouse's employee retirement account to the other spouse. It can be used to put the money into the spouse's IRA, or--for those with more immediate needs--transferred directly to the spouse to be spent as needed. The IRS 10% early withdrawal penalty does not apply, but the usual taxes still do.
Retirement savings can have a big impact on a divorce. With a good lawyer and the many policies already in place, the money can be divided in a manner that is best for everyone involved.
Today's Two Cents:
Life Insurance Made Simple? Watch This...
Ah, that most exciting and sexy subject...life insurance. Wait! Before your eyes glaze over and we lose you to other parts of the world wide web, take a moment to watch this video from The Life and Health Insurance Foundation for Education (LIFE). They are a great non-profit organization dedicated to helping us all understand our insurance needs and options better.
Life insurance is all about protecting your loved ones and your money should something terrible happen to the provider. This video is short, sweet, and a great start to learning about life insurance. Click the link to watch it!
Ways to Save Money: Beauty and Fashion
This post was featured at Diary of 1 and Save Money.
If beauty is only skin deep, why does it reach so deeply into our wallets? Although beauty products, attractive clothing, and other fashion items are necessary expenditures (goodness knows we don't want to look all the time the way we do first thing in the morning!), there are ways to save money on them. Try these suggestions and starting keeping your cash today:
Give up the salon shampoo and conditioner. These products are specifically marketed to make you think you can't have luxurious hair without them...and they are priced to match. Try some of the more inexpensive knock-offs; Suave has a great line of products modeled after salon goods called Suave Professionals. They're excellent, for a fraction of the price. If you still long for those products, compromise by changing just your shampoo to a more affordable brand. If you absolutely can't give them up, buy your salon products online for big savings. Potential savings: $15-$54 per year. - Color your own hair. If you color your hair regularly and you're serious about saving some money, this is a great way to do it. At-home hair color kits have come a long way, and they are easy to use. Better still, consider going back to your natural color and skip the coloring all together; you'll save money and time. If you absolutely can't give up getting your hair done professionally, think about switching to a more affordable salon. Potential savings: $264-$1152 per year.
- Get rid of your gym pass. Alright, time to 'fess up! You haven't used that gym pass nearly as much as you thought you would (or at all, ha!). Cancel your pass and exercise on the cheap: go running or walking outside, rent aerobics or yoga videos, or create your own workout right in your living room. If you can't cancel your pass, try selling it through craigslist.com, or perhaps to a friend who thinks they are going to use it (ha, again!). If you absolutely can't give up fitness classes or gym time, consider joining the community fitness center for a less expensive workout. Potential savings: $240-$360 per year.
- Buy one less article of clothing this month, and pass on the designer clothing. It's easy to pick up a new clothing item here and there, but the receipts will really start to add up. Each month, try buying one item less than you ususally do, and the savings will add up as well. For the fashionistas out there, skip the designer clothes completely and look for similar trends at affordable prices. If you absolutely can't give up your designer fashions, try bagborroworsteal.com for the latest fashions at a much better price. Potential savings: $120-$4800 per year.
- Give up doing your nails professionally. With a manicure needing a touch-up every 3-4 weeks, getting your nails done by a professional can be a money-consuming habit. Going au naturel will save you loads of cash. If you absolutely can't give up getting your nails done, try switching to a less expensive salon. Potential savings: $180-$595 per year.
- Use at-home sunless tanners. Like hair color kits, sunless tanning lotions have come a long way from their humble beginnings. You can get a great tan right at home, and save yourself time and money by skipping the salon. Sunless tanners are also easier on your skin in the long run. Potential savings: $240-$960 per year.
Beauty and fashion doesn't have to cost you a bundle. With a little sacrifice--or compromise--you are well on your way to saving some money, and looking good while you do it.
Today's Two Cents:
The National Retail Federation expects 2007 holiday sales to increase four percent to $474.5 billion.
What is Interest? A Story of Grasshopper and Wise Master
This post was featured at The Digerati Life.
People who understand interest earn it; they don't pay it. If you want to save more money and make more money, you've got to understand interest. Interest is what you pay to borrow money, or what is paid to you if someone borrows your money. Remember it like this: if you lend someone your money, you have an 'interest' in that money, so you charge them interest to use it.
How To Curb Impulse Buying
This post was featured at I've Paid For This Twice Already and Pajama Mommy Community.
You're cruising through the mall, picking up a few needed items, when you see a huge red 'Sale!' banner at your favorite shoe store. There, as you pass the window, are a pair of shoes that stop you in your tracks. You're not at the mall to buy shoes, and you certainly don't need that $60 hit to your wallet, but you tell yourself, 'These shoes are so cute. I have to have them!' With that, you whisk into the store and purchase the shoes. You have just gotten sucked into an impulse buy.
An impulse buy is a purchase you did not plan to make, but made anyway. Why do we impulse buy? Two words: instant gratification. Yes, we impulse buy because a part of us never made it past the age of two and we have to have it now. It is purely emotional. After you purchase on impulse, you may feel elation and giddiness, but then often feel guilt and remorse. In fact, many impulse purchases are regretted later on. That's right; you probably didn't even want the item in the first place.- Don't carry cash. If it's not in your wallet, you can't spend it
- Before you leave to go shopping, verbally tell yourself, 'I'm am not going to buy anything I don't need.' Then, respect yourself and keep your promise!
- If you find yourself about to make a purchase, put the item back, walk around for 10 minutes, and then ask yourself again if you should buy it.
- Sleep on it. Instead of making the purchase right then, go home and come back the next day, if you still want to buy it (This is also good advice when buying big ticket items, whether planned or on impulse).
- If you tend to impulse buy when you are with your friends, don't shop together! Instead, go for walks, make lunch, visit museums, etc.
'Tis the Season to Give Service and Time
At this time of year, along with the hustle and bustle of the shopping world, we are often particularly aware of the needs of others. There are campaigns for toy and food drives, the Salvation Army is ringing away on street corners, and many churches make an extra 
push for donations for those less fortunate. Now is a good time to give of very valuable gift: yourself. And it won't cost you a dime!
Give the gift of Service. Let the holiday spirit open your eyes to the many opportunities to serve those around you. Perhaps a neighbor needs assistance around the house with a project, or you just realized that the local food bank is closer to your house than you thought. Find and commit yourself to some service this season, whether a one-time event or something that lasts throughout the year to come.
Give the gift of Time. We all have the same 24 hours in a day, but how we spend it makes all the difference. Use your precious hours to bless the lives of others. Think about taking just an hour of your leisure time and devoting it to someone else(by the way, this can be spent doing something fun!). If you spend more time with your spouse and with your children, the results will amaze and bless you, as well.
The holidays certainly have a special spirit about them. Indeed, 'tis the season to give...but what will you give?
'Tis the Season to Give Forgiveness, Praise and Love
More valuable than the latest tech gadget, more important than finding the most sought-after toy are the gifts last a lifetime. This Christmas, consider shelving the materialism of the season by giving just a present or two(or maybe none at all), and instead give a gift more precious than the rest in a heartfelt letter. What, you ask, should be in this letter? Write down those things that are often the hardest to say:
Give the gift of Forgiveness. Nothing is more devastating to a relationship than withholding forgiveness, and nothing heals a relationship faster than giving it. Are you clinging to a grudge or past wrong? This Christmas, let it go and make amends...it will be one of the most valuable gifts you'll give.
Give the gift of Praise. It's easy to overlook how important this gift is. For children, this gift is essential and can change their life. This season, begin to give this gift freely and often. And if it's written down, the receiver will have something to buoy them during life's hard moments.
Give the gift of Love. It's often the hardest thing to say to someone, but it's so vital. Humans need love, we crave and are drawn to it. Why are we often so stingy with it? Give it more to those you love by saying and showing it, and start by putting it in a letter.
'Tis the Season to Give Truly Valuable Gifts
'Tis the season to give...but 'tis also the season for rampant materialism. We are assailed on every side with commercials, radios spots, billboards, and flyers demanding that we WANT, GET, DESERVE, etc. Even friends and family constantly ask, 'What do you want for Christmas?' Naturally, this steady stream of materialism will eventually wear us down if we let it, and then invade our wallets.
The last thing we need when we are trying so hard to gain financial security and control is a yearly wallop from the holidays to set us back. This means that instead of caving to the commercial pressure to get more material things, we should look inward at the values that make life precious. This means that more stuff won't bring you happiness and peace, but will add to your financial stress. This means that even though it is better to give than to receive, even that mantra can lead to money mayhem if we go overboard trying to prove how much we care about our loved ones.
Instead, let's consider giving gifts of true and lasting value. We'll spend the next few days figuring out exactly what those gifts are, and how they can actually lead to happiness, peace, and even greater financial security. Stay tuned!
Today's Two Cents:
96% of men find financially independent women sexy.
--The Allianz Women, Money and Power Study, 2006
Top Ten Ways to Save at the Grocery Store
This post was featured at angelawd.
The grocery store bill can be one of the biggest expenses for a family. Luckily, it is also one of the easiest to shrink. Since time is money, the following is a quick and dirty guide to saving cash in the grocery aisle.
1. Don't shop while you are hungry! Even if you credit yourself for having great will power, you will inevitably buy more when you are hungry than when you are not. The most effective way to save money is to spend less of it.
2. Plan your meals and make a list. Taking a bit of time once a week to plan your meals will save a surprising amount of money on your food bill. Write down the meal, the day you plan to make it, and all the ingredients you will need to buy to make it. This saves you time, energy, and extra trips to the store. It also helps you to use food before it spoils, saving you even more money.
3. Stick to your list! So much easier said than done, and so important! Passing on impulse buys will save you a good deal, because these items tend to be convenient, and therefore more expensive. They also tend to be junk food, and avoiding them will save on your waistline, as well.
4. Use coupons effectively. Although there are dozens of coupons out there each week, using one on an item you wouldn't buy anyway simply causes you to spend more money. Instead, only use coupons for items you buy often or plan to use. If possible, maximize coupons by using them when the item is also on sale, or by purchasing as many of the product as allowed.
5. When something is on sale, buy a lot of it. Most grocery store items will go on sale in a somewhat predictable cycle. When a non-perishable or freezable food that you buy regularly gets marked down, buy enough to last you until it goes on sale again.
6. Buy in bulk...sometimes. This tip applies only to large families, or non-perishable and frozen goods. Wholesale retailers have great prices, but if the food ends up going bad before you can eat it, that's money lost.
7. Consider the price per ounce of what you buy. Many grocers list the price per ounce, pound or unit on the shelf label. It's very tiny, but very helpful for comparing prices between different brands, and even different foods.
8. Compromise on name brands. Most name brands are more expensive due to advertising and packaging, not necessarily because of quality. Try different products to see where you can make the switch and save some cash.
9. Use the preferred shopper card, when available. They are often free to sign up for, and will save you money every time you shop.
10. If possible, shop during a weekday in the morning. The store will be less crowded than at other times. Avoid Mondays and Saturdays, as these tend to be the busiest days of the week at the grocery store. When you are rushed, you are more likely to forget items you need, buy things you don't, and miss good deals.
Following even just a few of these tips will save you money. Following all of them, all of the time, will reap you great rewards: more money, time, energy, and sanity. And those are things we could all use.
Subscribe to The Simple Nickle SYSTEM!
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Simply send an email to simplenickle@gmail.com with 'subscribe' as the subject. You're done!
You will receive daily emails with simple steps toward financial security, along with helpful reminders. You can unsubscribe at any time, and your email address is never given out for any reason.
Simple Nickle 101: Financial Education Made Easy
This is the archives for all the articles posted on this site. Peruse at your leisure, and check back for helpful information on a variety of topics:
Car Buying:
Charitable Giving:
Controlling Debt:
What is APR?
Financial Identity Protection:
Home Buying:
Investing:
What is Interest? A Story of Grasshopper and Wise Master
Money Management:
5 Smart Financial Moves for Teens
Fix Your Finances in 15 Minutes a Day
Money and Emotion:
'Tis the Season to Give Forgiveness, Praise and Love
'Tis the Season to Give Service and Time
'Tis the Season to Give Truly Valuable Gifts
Paying for College:
Protecting Your Money:
Life Insurance Made Simple? Watch This...
Retirement:
Retirement Savings: What If You Get Divorced?
Saving Money:
How To Curb Impulse Buying
Top Ten Ways to Save at the Grocery Store
The Simple Nickle: Phase 6
Phase 6: Maintaining your Money
- Once a year, reassess your financial plan.
You may be saying to yourself, "I don't have a financial plan!" Ah, but you do! You have your financial goals written down, and you are learning about different ways to invest to reach those goals. Each year, we like to give our plans the once-over to see if they are still working the way we want them to, and to make any changes necessary. A good time to do this is around tax time.
1. Look over your financial goals and investments.
2. Ask, "Am I getting closer to my goals? Have I reached any? Do I need to make changes to suit my current circumstances?"
3. Adjust as necessary.
4. You're done! - Get a yearly credit report.
As you may have heard, you are entitled to a free credit report each year. This report tells you what's been happening with your credit: credit cards you have, if your payments are regular and on time, what loans you have, etc. These things determine your credit rating, or credit score, which greatly influence your financial opportunities. Thus, it is important for us to know what is being said about us in this report!
1. Get online and go to annualcreditreport.com.
2. Enter your state and select 'Request Report.'
3. Enter in your information.
4. Select a credit reporting agency, it doesn't matter which.
5. Click 'next' to be taken to their site.
6. Enter the last 4 digits of your Social Security Number.
7. At their site, select the free 'Annual Credit Report.'
8. Follow the steps to complete your order.
9. You're done!
The Simple Nickle: Phase 5
Phase 5: Investing
- Determine your financial goals.
Wow! We have really come a long way with our finances. We are going to start putting that money we have used to pay off our debts and build our emergency fund to begin investing for our future. Now the fun begins...making our money grow and work for us. In order to know how we ought to invest our money, we need to determine our financial goals. Our financial goals can be anything we dream of: paying for college, a cruise, owning our home free and clear, etc. Some goals will be short term(we hope to achieve them in less than 3 years), some medium term(3-5 years away), and some long term(more than 5 years away).
Today, take 15 minutes to think about and write down your financial goals. You can put them on paper or email them to yourself. A goal is just a wish until it's written down!
1. Grab pen and paper, or open a new email message.
2. Think about your goals for the future.
3. Write them down.
4. You're done! - Find out about a 401k.
Now don't get intimidated by that number-letter combo...a 401k is simply an employee sponsored retirement plan. Many employers offer this plan, and today we are going to find out if we are able to have one. A 401k will allow you to save money for retirement pre-tax, meaning you pay taxes on that money later(when you are retired) instead of now. This gives you more money to grow, and more money to work for you now. Many employers will also match money that you put into your 401k, up to a certain limit. We will also find out today if we get any of this 'free money.' And another perk of 401k savings: they are tax deductible, meaning the more you save now, the less taxes you have to pay now.
NOTE: If your employer does not offer a 401k, don't despair! Next, we'll talk about what to do if you can't get a 401k.
1. Contact your employer and ask for who has information about retirement plans.
2. Ask about a 401k or other retirement plan and ask if the company offers a match to your contribution.
3. Sign up, or request the forms to sign up.
4. You're done! - Determine your feelings about risk.
Investing almost always involves risk. Sometimes there is very little risk, sometimes there is a lot, depending on what you are investing in. To help you choose the best investments for you and your goals, you need to figure out how much risk you want to take on. After all, what good is investing your money if it makes you sick with worry?
1. Think about your risk tolerance. Take this quiz to help you.
2. Once you have an idea of what you can handle, read this article about the risk involved with different investments.
3. Think about what investments will be best for you.
4. You're done! - Learn to learn about investments.
Now, we've been through a lot together, and I bet you'd be surprised to realize that you're pretty financially smart now! You're in a very good place with your money thanks to your dilligence and tenacity.
Throughout this process, we have guided you to learn about different aspects of your money. Now it's time for you to take a little more liberty and strike out on your own, to learn more about how best to make your money grow! Don't worry, you'll do great! There are so many possibilities out there when it comes to investing your money that we don't want to limit you.
1. Get online and go to Yahoo! Finance at finance.yahoo.com.
2. Find the 'Investing' tab at the top, and then select 'Education' from the drop-down menu.
3. Click on 'Learn the basics of investing.'
4. Explore! Take 15 minutes to read up on anything that interests you. Enjoy!
5. You're done! - Try a practice run at this investing thing.
We've learned a little about investing, now let's try our hand at it. One of the best ways to learn is to do, and since we are beginners, it would be nice to invest without risk to see how we fare. Luckily, there is a neat program through Investopedia that let's us invest 'pretend' money in the stock markets. The stock markets are a good place to start investing small amounts of money with low, moderate, or high risk. Let's give it a try!
1. Go online to Investopedia.com and click the tab that says 'Stock Simulator.'
2. Click 'Register Free.'
3. Follow the steps to Create an Account. Select only the newsletters and free offers you want, or none at all.
4. Under 'Join Games,' select 'Investopedia Competition.' This is where you will practice your investing, and is not really a game as we might think of one.
5. Explore the site, especially the tabs 'Portfolio,' 'Trading,' and 'Help,' where you can learn all about the simulator.
6. You're done! - Buy something in your stock simulator.
Alright, let's give this stock market thing a whirl!
1. Log in to your portfolio at investopedia.com.
2. Click the 'Trading' tab.
3. Choose a company to invest in and enter the stock symbol. You can look up stock symbols at Yahoo! Finance's search box in the upper left corner.
4. Enter the rest of the information and click 'Preview Order.' Don't know what something is or means? Look around on the site for helpful information.
5. Review the order and click 'Submit Order.' You can then skip the 'why did you make this trade?' screen, if you would like.
6. You're done! - If you don't have a 401k, open an IRA or a Roth IRA.
If you don't have a 401k, there are still ways to save for retirement and get the tax perks. To figure out which type of IRA is best for you, read this article, Which IRA is Best?, or any other information you find on the subject.
1. Read this article, or other info you find.
2. Choose a place to open your IRA account. We like Scottrade online(scottrade.com), but there are many others to choose from.
3. Open the account, or request the forms to open your account.
4. You're done! - Invest money in your 401k or IRA.
Today we are going to begin funneling our extra money that is now free from paying off our debt and building our emergency fund into our investment account. It will begin to add up quickly, which will also allow it to grow quickly!
1. Log in to your account online, or call whoever is in charge of what goes into your account.
2. Specify the amount to be put in on a monthly basis, or send in a monthly deposit. The amount should be the amount you had been putting toward your emergency fund each month.
3. You're done! - Keep learning about investments.
We have now gotten our feet wet in the world of investing. It's a big, fun, interesting world! The key is to keep exploring and learning about what kinds of investments suit you and help you achieve your goals. By spending just 15 minutes each day thinking and learning about your investments, you will secure your financial future.
1. Get online and check out some financial websites. We like Yahoo! Finance, Motley Fool, Investopedia, or others you might find.
2. Set your timer for 15 minutes and read away! Use the knowledge you gain in your future financial decisions.
3. You're done!
The Simple Nickle: Phase 4
Phase 4: Insurance
- Gather all your insurance papers into one place.
Alright, this step is easy and fun...but it does require a little 'oomph!' It's that time again when we go around the house and gather up all the insurance papers we have scattered about. This includes informational books and pamphlets, statements, or anything else that could possibly tell you anything about your insurance. It only takes a few minutes!
1. Get up from the computer.
2. Check your purse, that spot on the counter or table where you mail collects(or for the semi-organized, your mail basket), the drawer where you stash your junk, the desk, the old, unorganized filing cabinet, or where ever they might be.
3. Get them all together and put them by the computer.
4. You're done! - Divide and Discover.
We are going to get a lot done today in just 15 minutes! We'll be organized, informed, and ready to tackle our insurance! Set your timer, and go!
1. DIVIDE: Divide the pile of insurance papers that are stashed right by your computer into their respective piles: life insurance, car insurance, home/renter's insurance, health insurance, etc.
2. DISCOVER: Begin reading what information you have in the life insurance pile. If you don't have life insurance, go online here and watch a short video full of useful info. After the video is over, go here, start with sections 1 and 3, and read until your 15 minutes are up. - Learn some more about life insurance.
We already starting learning about the glamorous topic of life insurance(ha!). Even though it's not super exciting, it is essential. Today we are going to continue to learn a little more about the subject until we feel ready to make some decisions. We will repeat this step each day until we are done reading the few selections below. Now don't whine. You're smart! You can do it!
1. Set your timer for 15 minutes...that's all we're going to do today!
2. Pick up reading where you left off yesterday, either from your insurance papers or online here, reading sections 1 and 3. When you finish those, go online here and read this great overview of LIFE INSURANCE BASICS. Then read about TYPES OF LIFE INSURANCE here. And last, read about BUYING AND SAVING MONEY here. Write down notes for yourself as you go along.
3. You're done! - Date and Calculate.
Now we have a much better understanding of life insurance and why we need it. Today we are going to figure out just what we need with a neat, quick and easy little online tool: a life insurance needs calculator. We are also going to set a date with our spouse to get on the same page with all this life insurance stuff.
1. CALCULATE: Get online and go to the calculator here.
2. Follow the steps to figure out your needs, and take a note of the final numbers to put with your life insurance papers.
3. DATE: Email, call or talk with your spouse and set up a 15 minute 'insurance date' for tomorrow evening at 9pm(you can make it anytime that is convenient for both of you...and remember, it will only take 15 minutes!).
4. Write a note to yourself so you don't forget.
5. You're done! - Date and Discuss.
You've set a time for your 'insurance date' where you'll meet with your spouse and talk about your life insurance needs. You're organized, so this date will only take 15 minutes! We'll even help you know what to cover. Feel free to provide candle light, romantic music, and dessert.
1. Meet with your life insurance papers and notes in hand.
2. Discuss the following:
What do we already have?
What do we need?
What changes do we want or need to make?
3. Write down what you decided to change, if you changed anything at all. Tell your spouse that tomorrow you will begin shopping around for those changes.
4. You're done! - Shop around for insurance.
Now that we know what we need, we're going to go get it! One of the great blessings of the Internet is that we can easily and quickly shop for and compare insurance options. Hooray! We like things that are quick and easy.
1. Get online.
2. Shop for life insurance by going to an insurance comparison website. We like www.accuquote.com.
3. Select 'free online quote,' 'get a quote,' or where ever on the site that you can get a life insurance quote.
4. Follow the directions to get a quote, and write down the best option on a post-it note.
5. You're done! - Buy life insurance.
Today we are going to spend our 15 minutes buying the life insurance we chose. With this step down, you can feel so much more secure about your money and your future.
1. Get online and go to the website of the company you chose to be insured with.
2. Either call a representative, or buy the insurance you want through their website.
3. You're done! - Learn about car insurance.
Today we are going to return to our pile of insurance papers and tackle car insurance. This is going to be much easier than what we've already done with our life insurance, so take a deep breath and relax! Even though it's not super exciting, it is essential. Today we are going to continue to learn a little more about the subject until we feel ready to make some decisions. We will repeat this step each day until we are done reading the few selections below. Now don't whine. You're smart! You can do it!
1. Set your timer for 15 minutes...that's all we're going to do today!
2. Begin reading the car insurance papers you already have until you understand them. For more information, go online and read here, 'What is auto insurance?' and the next part, 'What is covered by a basic auto policy?'. Then read here, 'How can I save money?' and here, 'How much auto insurance do you really need?', Write down notes for yourself as you go along.
3. You're done! - Date and Calculate.
Now we have a much better understanding of car insurance and why we need it. Today we are going to review our policy, and refer to what we read online, 'How much auto insurance do you really need?' to figure out where we stand, and if we need to make any changes. We are also going to set a date with our spouse to get on the same page with all this car insurance stuff.
1. CALCULATE: Refer to your current auto insurance papers to see what coverage you have.
2. Refer to the online article here and see if you want to make any changes. Make a note of the final numbers.
3. DATE: Email, call or talk with your spouse and set up a 15 minute 'insurance date' for tomorrow evening at 9pm(you can make it anytime that is convenient for both of you...and remember, it will only take 15 minutes!).
4. Write a note to yourself so you don't forget.
5. You're done! - Date and Discuss.
You've set a time for your 'insurance date' where you'll meet with your spouse and talk about your life insurance needs. You're organized, so this date will only take 15 minutes! We'll even help you know what to cover. Feel free to provide candle light, romantic music, and dessert.
1. Meet with your car insurance papers and notes in hand.
2. Discuss the following:
What do we already have?
What do we need?
What changes do we want or need to make?
3. Write down what you decided to change, if you changed anything at all. Tell your spouse that tomorrow you will begin shopping around for those changes.
4. You're done! - Shop around for car insurance.
Now that we know what we need, we're going to go get it! One of the great blessings of the Internet is that we can easily and quickly shop for and compare insurance options. Hooray! We like things that are quick and easy. Do just 15 minutes of shopping a day; if it takes longer than 15 minutes, just come back tomorrow. NOTE: We're not going to buy our car insurance just yet. We'll wait until we check on our home owner's/renter's insurance as well. Sometimes when you buy them from the same company, you get a discount! And we love discounts!!
1. Get online.
2. Shop for car insurance by going to at least 3 car insurance websites. Here are a few we like to choose from:
geico.com
esurance.com
amica.com
allstate.com
OR look up a company located near you and call them.
3. Select 'free online quote,' 'get a quote,' 'compare rates' or where ever on the site that you can get a car insurance quote.
4. Follow the directions to get a quote, and write down the best option on a post-it note.
5. You're done! - Learn about home owner's/renter's insurance.
Today we are going to return to our pile of insurance papers and tackle home owner's/renter's insurance. This is going to be as easy as what we've done with our car insurance, so take a deep breath and relax! Even though it's not super exciting, it is essential.
Today we are going to continue to learn a little more about the subject until we feel ready to make some decisions. We will repeat this step each day until we are done reading the few selections below. Now don't whine. You're smart! You can do it!
1. Set your timer for 15 minutes...that's all we're going to do today!
2. Begin reading the home owner's/renter's insurance papers you already have until you understand them. For more information, go online and read here, 'Top things to know' about home owner's insurance. Then, read here, 'Value your home properly,' and then here, 'Getting the proper coverage.' If you rent, read here, 'Can I get insurance if I rent my home?' Write down notes for yourself as you go along.
3. You're done! - Date and Calculate.
Now we have a much better understanding of home insurance and why we need it. Today we are going to review our policy, and refer to what we read online, 'Getting the proper coverage,' to figure out where we stand, and if we need to make any changes. We are also going to set a date with our spouse to get on the same page with all this home insurance stuff.
1. CALCULATE: Refer to your current home owner's/renter's insurance papers to see what coverage you have.
2. Refer to the online article here and see if you want to make any changes. Make a note of the final numbers.
3. DATE: Email, call or talk with your spouse and set up a 15 minute 'insurance date' for tomorrow evening at 9pm(you can make it anytime that is convenient for both of you...and remember, it will only take 15 minutes!).
4. Write a note to yourself so you don't forget.
5. You're done! - Date and Discuss.
You've set a time for your 'insurance date' where you'll meet with your spouse and talk about your home insurance needs. You're organized, so this date will only take 15 minutes! We'll even help you know what to cover. Feel free to provide candle light, romantic music, and dessert.
1. Meet with your home insurance papers and notes in hand.
2. Discuss the following:
What do we already have?
What do we need?
What changes do we want or need to make?
3. Write down what you decided to change, if you changed anything at all. Tell your spouse that tomorrow you will begin shopping around for those changes.
4. You're done! - Shop around for home insurance.
Now that we know what we need, we're going to go get it! One of the great blessings of the Internet is that we can easily and quickly shop for and compare insurance options. Hooray! We like things that are quick and easy. Do just 15 minutes of shopping a day; if it takes longer than 15 minutes, just come back tomorrow.
1. Get online.
2. Shop for home owner's/renter's insurance by going to at least 3 home owner's/renter's insurance websites. Start with the company you have chosen for your car insurance. Here are a few we like to choose from:
geico.com
esurance.com
amica.com
allstate.com
statefarm.com
OR look up a company located near you and call them.
3. Select 'free online quote,' 'get a quote,' 'home owner's insurance,' 'renter's insurance' or where ever on the site that you can get a home owner's/renter's insurance quote.
4. Follow the directions to get a quote, and write down the best option on a post-it note.
5. You're done! - Buy car insurance and home owner's/renter's insurance.
Today we are going to spend our 15 minutes buying the car insurance, and maybe also the home owner's/renter's insurance, we chose. With this step down, you can feel so much more secure about your money and your future. If you get the best rates by buying your car insurance and home owner's/renter's insurance from the same company, buy them both at the same time. If you get the best rates buying from separate companies, buy only the car insurance today, and the home owner's/renter's tomorrow.
1. Get online and go to the website of the company you chose to be insured with.
2. Either call a representative, or buy the insurance you want through their website.
3. You're done! - Buy home insurance.
Today we are going to spend our 15 minutes buying the home owner's/renter's insurance we chose, if we haven't purchased it already. With this step down, you can feel so much more secure about your money and your future.
1. Get online and go to the website of the company you chose to be insured with.
2. Either call a representative, or buy the insurance you want through their website.
3. You're done! - Work our your health insurance.
This is one subject that we don't feel like we can advise on due to the unique aspects and nuances of each person's health situation. However, that doesn't make it any less important! Health insurance is an important part of financial security. More than protecting your health, health insurance protects your money. Using the steps we have used for our other forms of insurance, take matters into your own hands and work out your health insurance. Your finances will thank you!
The Simple Nickle: Phase 3
Phase 3: Saving Money
- Set up an online savings account
We are ready to start saving ourselves some serious money: an emergency fund. You could also call this your 'freedom fund:' freedom from debt, freedom from the fear of something happening and not having the means to take care of it, freedom to start earning some money!
We are going to put our emergency fund savings into an online savings account, sometimes known as a money market. A money market is essentially an account that acts like a savings account, but pays you much more for holding your money there. Why online accounts? Because they pay a darn good interest rate: some as high as 5% per year. Let's start saving and start earning!
1. Get online.
2. Choose a company to open your online account with. We like ING Direct's Orange Savings Account and HSBC Direct's Online Savings .
For ING Direct, go to https://banking2.ingdirect.com/savings/initial.vm?type=3000. For HSBC, go to http://www.hsbcdirect.com/1/2/1/default/appinfo?code=M1200007DB.
3. Follow the directions to apply for or set up an account.
4. You're done! - Set up an automatic savings plan
Now that we have a special account for our savings that pays us, we are ready to start putting some moolah in there! We are going to make it automatic, so that we don't even notice the money going in there. Here, you have a couple of options. The first is to save the total amount you have been putting toward your debt (which is now gone, hooray!)...we'll just put that amount right into our savings since we're used to it being gone anyway. The second is to put 10% of your income in your savings. Don't be intimidated by 10%! You won't even miss it! You'll adjust your spending since it's going into your savings automatically. We suggest you save whatever amount is greater; the debt payment or the 10%. You can do it!
1. Log on to your online savings account.
2. Select 'Transfers,' 'Automatic Savings Plan,' or where ever on the site you move money into your account.
3. Follow the directions to set up automatic transfers of money from your regular checking to your online savings account. Choose to have the money transferred the day after your first payday each month.
4. You're done! - Save 3-6 months of your expenses or income to complete your emergency fund
Today is a simple step: figure out how much you need to sock away into your online savings account to complete your emergency fund. Experts suggest saving 3-6 months of your living expenses as a cushion against hard times. If you know your monthly expenses, go for it! If you don't know your monthly expenses, and don't want to take the time to figure them out, you can take the easy route and just save 3-6 months of your monthly income.
A great way to build your emergency fund fast is by depositing any extra chunks of money you are blessed with into your fund instead of spending it. The next time you get a bonus, your tax return, or something similar, just put it right into your online savings account.The more you save each month into your emergency fund account, the sooner you'll have that fund ready, and the sooner you can start having some fun with your extra money!
1. Figure out your monthly living expenses by perusing your checking account, credit cardaccounts, etc. Don't forget the annual expenses like car insurance and taxes.
2. Multiply this number by 3-6 and write it on a post-it note and stick it near your computer, OR skip Step 1 altogether and multiply your monthly income by 3-6. Write this number on a post-it note near your computer.
3. You're done!
The Simple Nickle: Phase 1
Phase 1: Set up online banking
- Set up online banking through the bank you already use
So you have a bank or credit union where you keep your money. Now we want to take advantage of one of the greatest benefits of the Internet: online banking! With online banking, we can securely monitor our money with ease and less mistakes (hello? balancing checkbooks? what a pain!:) This is the best way to keep track of your money.
1. Get on the Internet (see how easy this is?).
2. Find your bank's homepage, either by typing in the name of the bank in the address field, or searching on Google or another search engine.
3. Find the spot on the site where you create a new online account. This is usually called 'online banking,' 'new user,' or something similar.
4. Follow the steps on the website, such as entering your name, personal info, and account info.
5. You're done! - Make checking your account a habit
How can you control your money if you don't know where it's going or where it's been? We check our accounts three days a week, or more often if you prefer, to know what we're spending, where we're spending it, and what payments are still out there. This also lets us catch money mistakes before they turn ugly!
1. Get on the Internet and check your account. Look to be sure there's enough money to cover checks you've written, that there aren't any mysterious transactions, that all recent checks have cleared, and the overall picture of where your money is off to.
2. Repeat #1 three days a week, for 2-3 weeks until it's a habit. Stick a post-it note on your computer screen to remind you, or write it on the calendar.
3. You're done! - Set up direct deposit for your income
Direct deposit simply means that your paycheck is automatically deposited in your account electronically. Perhaps you have direct deposit in place already(hooray!), or maybe it was offered to you but you didn't want to take the time to set it up. Scratch that idea! Direct deposit will save you time, hassle, and potential worry over misplaced paychecks.
1. Call your employer (or your spouse's employer) and ask for whoever sets up direct deposit of paychecks, or take some time to set it up while you are at work.
2. Request a direct deposit form (or if possible, fill it out online.)
3. When you get the form, fill it out, attach a voided check, and send it back.
4. You're done! - Figure out your monthly income
It's amazing how many people don't really know how much money they make in a month, but still spend with reckless abandon! Well, we are not these people! We know what we make and where it comes from. This helps us to know where it can go.
1. Go to your account online, or if your account is too new and doesn't have a month's worth of transactions, do it the old fashioned way by collecting a month's worth of paycheck stubs(luckily, you have online banking now and you won't have to do that again!).
2. Add up all regular income from paychecks, plus any other steady income for the past month.
3. You're done! - Gather all your bills and statements into one place
Alright, this step is easy and fun...but it does require a little 'oomph!' We are going to go around the house and gather up all the bills and statements scattered about. This way, we know what we need to pay and when, and nothing will sneak up on us. It takes just a few minutes!
1. Get up from the computer.
2. Check your purse, that spot on the counter or table where you mail collects(or for the semi-organized, your mail basket), your car...where ever they may be hiding!
3. Get them all together and put them by the computer.
4. You're done! - Count up and email us the number of bills you have to pay
Okay! Todays step can be hard, but you can do it. We are going to count the number of bills we have to pay so that we can begin to make them easier to pay with tomorrow's step...get excited!
1. Find the pile of bills and statements you gathered yesterday. They are right by your computer...how handy!
2. Count them.
3. Be sure to count any credit card, utility, phone, or other bills you weren't able to find, but still pay.
4. Hit "Reply" to this email, put the total number of bills you pay in the Subject line, and hit "Send."
5. You're done! - Set up automatic bill pay
Another perk of online banking: they'll pay your bills for you! Well, they pay for them with your money, but isn't that nice of them to offer to save you so much time and hassle(as well as money on checks and stamps!), and prevent you from forgetting to pay those pesky bills altogether? We think so! Today you are going to set up JUST ONE bill to be automatically paid online. You'll never have to wonder if or when it's due again...you'll just check online and see that it's already been done! We'll set up one bill each day until all your bills are being paid online.
1. Choose one bill from the pile of bills you have stashed right by your computer.
2. Read the statement, looking for an option to pay online, by automatic deposit, or something similar. If nothing jumps out at you, try looking on the company's website or calling their customer service to ask.
3. Follow the directions to set up auto bill pay with the company.
4. You're done!
FOR COMPANIES THAT DON'T OFFER ONLINE PAYMENTS, DO THIS INSTEAD:
1. Choose the bill from the pile of bills you have stashed right by your computer.
2. Log into your online bank account.
3. Select 'Bill Pay,' 'Pay Bills,' 'Auto Bill Pay' or where ever on the site you can set up automatic bill payment.
4. Follow online instructions, including choosing account to draw from, company to pay, when, etc. NOTE: Depending on your bank, you may have to pay this bill online by hand each month. If this is the case, note on your calendar each month when to pay it...do it for the whole year right now so you don't forget!
5. You're done! - Optional Step: Set up online only statements
Many of the companys that bill you will offer to decrease your mail load by putting your bills online or emailing them to you. Today's step is optional because we know that many of you like to have the hard copy of your bills for record keeping...no problem! However, if you choose to get your statements online only, you will save yourself clutter around the house, time spent filing, and-of course-trees!
1. Choose one bill from the pile of bills you have stashed right by your computer.
2. Read the statement, looking for the option to receive your statement online or by email. If nothing jumps out at you, try looking on the company's website or calling their customer service to ask.
3. Follow the directions to receive your statements online.
4. Repeat with the rest of your bills/statements. IF THIS TAKES YOU LONGER THAN 15 MINUTES (watch that clock!), STOP AT 15 MINUTES AND FINISH UP TOMORROW! We don't believe in getting overwhelmed by our finances!
5. You're done!
The Simple Nickle: Phase 2
Phase 2: Get out of debt
- Learn your interest rates
Now we know that today's task is a scary one, but we know you can do it! Today, you are going to go through your credit card and loan statements and find out what your interest rate is on each one. This way, we can figure out which ones we are going to pay off first, and get ourselves debt-free!
1. Choose one credit card or loan statement from the pile of bills you have stashed right by your computer.
2. Read the statement, looking for the part that says "Annual Percentage Rate" or "APR." This is usually at the end of the statement, after the list of transactions.
3. Write this number down on a post-it note along with the name of the card or loan and stick it near your computer.
4. Repeat steps 1-3 with the rest of your credit card and loan statements.
5. You're done! - Set a goal to pay extra money toward your debt
Well, we did the dirty work of finding out those nasty interest rates on our debt, and now we are going to do something about it! Today, we are setting a goal of a measurable amount of money that we can put toward our debt each month. That's it...just a number. Any number you want. This money is what we are going to pay IN ADDITION to the minimum payment that we already pay. If we only pay the minimum payment each month, we will never pay down that debt!
1. Think about the money you spend(cringe, I know!). Be honest with yourself! No one can hear you think:)
2. Choose a dollar amount that you think you could come up with each month to pay towards your debt. Don't let it be too intimidating of a number, but don't be afraid to challenge yourself!
3. Write this number on a post-it note and put it near your computer.
4. You're done! - Find extra money
Think back to Step 2, and look at your post-it note to remind you how much money you have pledged to put toward your debt each month. And what better cause to pledge your hard-earned money to than getting rid of your debt and improving your life! Today we are going to do a scavenger hunt and find that money.
1. Log on to your online account.
2. Look over each of the transactions in your account...where is your money going to?
3. Identify where you can reduce your spending each month, or not spend any money at all, until you reach the amount you pledged. Find more if you can! Click here for some more ideas.
4. Write these down and the amount you save on a post-it note and put it near your computer.
5. You're done! - Automatically pay the extra money to the debt with the highest interest rate
Okay! Today we are really going to start seeing some action with our debt...mainly that it will begin shrinking! We are already paying the minimum amount each month on our loans and credit cards. By applying more than the minimum payment to our debt, we decrease the debt as well as the amount of interest being charged to us...this saves us money and makes us smile!
1. Choose the bill with the highest interest rate from the pile of bills you have stashed right by your computer.
2. Log into your online bank account.
3. Select 'Bill Pay,' 'Pay Bills,' 'Auto Bill Pay' or where ever on the site you can set up automatic bill payment.
4. Follow online instructions, including choosing account to draw from, company to pay, when, etc. Arrange to pay the extra to the bill the day after your first payday each month.
5. You're done! - Automatically pay down your debt even faster
Congratulations! Moving on to Step 5 means that you have successfully paid down a whole chunk of your debt. What an accomplishment, be proud of yourself! Today we are going to keep the momentum going and pay down the next chunk of debt even faster by snowballing. Snowballing means taking the amount you were paying toward your debt (which is now gone...hooray!) and applying it toward your next debt along with that debt's minimum payment. Your payents toward debt get bigger and bigger, like a rolling snowball. This way, your debt will begin to disappear much faster, and you are still only paying out the same amount each month. Genius!
1. Figure out the new amount of money you are going to be paying toward your debt. This is the minimum amount you were paying on your highest interest rate debt, plus the extra amount you pledged to pay each month. (For example, if you were paying a $100 minimum payment on your credit card, and pledged to pay $20 more each month, the total is $120.)
2. Choose the bill with the highest interest rate from the pile of bills you have stashed right by your computer.
2. Log into your online bank account.
3. Select 'Bill Pay,' 'Pay Bills,' 'Auto Bill Pay' or where ever on the site you can set up automatic bill payment.
4. Follow online instructions, including choosing account to draw from, company to pay, when, etc. Arrange to pay the extra to the bill the day after your first payday each month.
5. You're done!
About The Simple Nickle
Wouldn't it be nice if someone would just show you exactly what to do to get a grip on your money? Well, you've come to the right place! By following our program here at The Simple Nickle, you will begin to understand, control and even grow your money. It's as simple as checking your email!
When you subscribe, you will receive easy-to-complete steps for gaining control of your money, sent right to your inbox. When you finish one step, you'll get another...babysteps! Before you know it, you'll have your finances whipped into shape! Here is the full Simple Nickle program...but don't get overwhelmed! We'll do just a bit at a time!
The Simple Nickle has a mission: to educate, empower and get women DOING something about their finances!
90% of women said they feel somewhat or not at all financially secure, and more than half of women wish they had learned more about money and finance in school. What's wrong with this picture?! As women, we have all the tools and means we need to become financially saavy, but maybe we just need someone who can show us where to get started. At The Simple Nickle, you have a friend to show you exactly what you need to do in an easy, informative and even fun way.
The first financial advice most people give is 'keep track of every cent you spend for the next month!' Forget that! Who's got the time, or the patience? Instead, we focus on actions that help you control, understand, and save your money...the rest will follow! Our simple, daily steps help you make real progress with your finances. And the more you do and learn, the more you'll be able to do and learn.
The Simple Nickle is the brainchild of a stay-at-home mom who spent lots of time learning how to run her family finances, and realized that many of her friends didn't have a clue about their own! She noticed it was easier and more beneficial for other busy women to learn about these things from a friend with experience, rather than having to learn about it all themselves. And some people just need a kick in the pants to get going. Thus, The Simple Nickle was born.
