A Digital Tipping Error Gone Wrong

A Digital Tipping Error Gone Wrong

Victoria Vesovski  Wed, June 4, 2025  Moneywise

California Woman Thought She’d Left A $5 Tip Until She Saw It Was $5,000 — and was told it couldn’t be voided

Americans have long grumbled about tipping culture — but now digital checkout screens are turning that frustration into full-blown financial disasters.

Sometimes, the issue isn’t just pressure to tip — it’s how easy it is to make a costly mistake. One in five Americans say they’ve accidentally tipped more than intended on digital checkout screens, according to an exclusive Opinium poll for DailyMail.com on tipping culture.

That’s exactly what happened to Linda Mathiesen. While buying CBD pain relief gel at a store in San Bruno, California, she accidentally tipped $5,000 on a $129.28 purchase.

Mathiesen said she meant to leave a $5 tip, but the payment terminal didn’t show a decimal point, so when she entered “5000,” the system took it — literally.

At first, the clerk at San Bruno Exotic told her the charge couldn’t be reversed. Then the story shifted — he claimed the shop never received the money. But Mathiesen’s bank statement showed otherwise.

“I’m just livid because I’m like I’m not going to pay $5,000 for something I never intended to happen,” Mathiesen told ABC 7 News.

A tipping error gone wrong

For Mathiesen, a $5,000 tipping mistake wasn’t just a moment of panic — it became a financial crisis. As a special education teacher living on a fixed income, she didn’t have the cushion to absorb the hit. With no emergency savings to fall back on, the charge was devastating.

And she’s not alone. According to the U.S. News survey, 42% of Americans have no emergency savings, despite experts recommending three to six months’ worth of expenses.

Mathiesen contacted Wells Fargo within five minutes of the transaction, but says the bank has done little to help, despite its promise of “zero liability protection” for promptly reported fraud.

The bank’s website says its “built-in protection features ensure that you won't be held responsible for unauthorized transactions, as long as they're reported promptly.” Yet, a year later, Mathiesen is still fighting to get the charge reversed.

"I busted out in tears,” she told ABC 7 News. "My son is graduating college next week ... and I can't even buy anything for him because I have $5,000 outstanding ... now it's $5,500!"

It’s not as rare as you’d think

Digital checkout screens may speed things up, but one wrong tap can turn a routine purchase into a nightmare

It happened to Vera Conner, too. The Georgia woman was ordering her usual No. 4 Italian sandwich at Subway — priced at $7.54 — when she accidentally left a $7,112.98 tip.

TO READ MORE:  https://www.yahoo.com/finance/news/california-woman-thought-she-d-223000286.html

Frugal Tips to Help You Spend Less and Live Better in 2025

Frugal Tips to Help You Spend Less and Live Better in 2025

May 7, 2025 by Rudri Patel

Want to save money without giving up the things you love? It may feel overwhelming at first, but taking small micro steps will definitely help you spend less.

These practical frugal living tips help you cut expenses, reduce waste and take back control of your budget — all without feeling like you’re depriving yourself.

How To Start Living Frugally (Beginner Tips) 

If you’re just starting your journey of frugal living, where do you start? Here are a few tips for beginners:  

• Cut one bill. Try to cut out one subscription or lower the cost of one of your bills. Call your cable company, internet servicer or phone company to see if you can negotiate on the price.  

• Track every dollar. Understand where your money is going. Use a notebook or an app to track your spending. This will give you a sense of where you need to cut spending.  

• Cook more at home. Try to make meals at home to prevent spending money dining out.  

12 Frugal Living Tips to Help You Save Money 

Frugal living isn’t about depriving yourself — it’s about making intelligent choices that boost your savings without sacrificing your quality of life. These 12 frugal tips are designed to guide you through various aspects of your daily spending, showing you where you can cut costs and how to make the most of your budget.

From smart shopping strategies to efficient home management, these tips provide a roadmap to a more financially savvy and sustainable lifestyle. 

Frugal Home Habits 

Use coupons, cashback apps and loyalty programs 

Coupons can help save money, and loyalty programs can earn you discounts on various products. Cashback apps return a portion of your spending back to you.  

Plan your meals  

Meal planning is an effective way to minimize food waste and save money. By planning your meals for the week, you can buy only what you need, reducing impulse purchases and ensuring that you use up the food you buy, thus saving money on groceries. 

Embrace energy efficiency 

Investing in energy-efficient appliances and practices around your home can lead to significant savings on utility bills. Simple changes like switching to LED bulbs, using energy-efficient appliances and better insulating your home can reduce your energy consumption and save money in the long run. 

Smarter Shopping and Spending 

Shop off-season 

Buying off-season items can save a lot of money. For example, buying winter clothes at the end of the season or getting holiday decorations after the holiday has passed can lead to significant discounts. 

TO READ MORE:  https://www.gobankingrates.com/saving-money/savings-advice/frugal-tips/

Here’s How To Cash In Your Change Jar As US Says Goodbye To Pennies

Here’s How To Cash In Your Change Jar As US Says Goodbye To Pennies

Liesel Nygard  Mon, June 2, 2025

With the Treasuring Department’s plans to stop the production of pennies, the public might be wondering what this means for their giant coin collection at home.

Payments made with cash by American consumers decreased to 16% in 2023, according to the Federal Reserve, and for the first time in history was not the most-used instrument for smaller-value payments of $25 or less.

******************************

In February, President Donald Trump announced that he had ordered his administration to cease production of the penny, which costs almost 4 cents to create, according to the U.S. Mint. Ending penny production is expected to create an immediate annual savings of $56 million in reduced material costs.

The news has caused some pushback as fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint.

Circulation pathways for coins have declined as consumer coin jars continue to grow and have expanded by as much as 15% to 20%, according to a 2023 Federal Reserve report. In fact, the median household sits on $60 to $90 in coins which is the equivalent of one to two 16-ounce cups or a medium-sized piggy bank.

This is mostly due to the lack of utility of coins as a payment option as digital payments have grown since the COVID-19 pandemic, the Federal Reserve added.

“When asked why consumers do not redeem their coins more frequently, the most common answer was that it was not worth the effort to do so,” the institution’s report reads.

Rather than collecting dust, consumers could visit a coin exchange kiosk or bank to trade those coins for cash.

“People underestimate the value of their jar by about half,” Kevin McColly, CEO of Coinstar told Delaware Online. “It’s a wonderfully pleasurable experience. People have this sensation of found money.”

TO READ MORE:  https://finance.yahoo.com/news/cash-change-jar-us-says-174124726.html

This Is A $118 Billion “Strategy” For Insanity

This Is A $118 Billion “Strategy” For Insanity

Notes From the Field By James Hickman  (Simon Black)  June 3, 2025

Last week when I wrote about America’s new stablecoin legislation (bizarrely called the “GENIUS Act”), a number of readers wrote in asking me to clarify a comment that I made about the Bitcoin company ‘Strategy’, i.e. formerly MicroStrategy.   I explained in the article that I am pro-crypto and have been since the early 2010s; for me it’s about freedom.

Many banks have proven time and time again that they simply cannot and should not be trusted with their customers’ money.

Wells Fargo is the poster child for blatant theft and deceit. And Bank of America is currently the prime example of recklessly irresponsible decision-making; that institution has managed to rack up more than $100 BILLION of unrealized losses from bad investments they made with YOUR money.

 Crypto eliminates all of this. You can store your savings (whether as a risk asset like Bitcoin, or via US dollar stablecoins) and transact without having to deal with a bank. And this is a massive benefit.

 Then there’s Strategy-- the company formerly known as MicroStrategy. By its own description, Strategy is “Bitcoin Treasury company”, which is to say that their primary business is to own Bitcoin.

 And they own lots of Bitcoin-- 580,955 to be exact, worth $61.5 billion at the current price. Yet Strategy’s enterprise value is $118+ billion, or nearly TWICE the value of its Bitcoin. And this is one of the strangest things I’ve ever seen in financial markets.

Yes, technically, Strategy also has a software business, because they barely mention it.

Just have a look at Strategy’s own Q1 update-- a NINETY-TWO-page presentation that had precisely ONE slide (#26) devoted to its software business. Literally one slide. And there wasn’t even much detail-- the slide was entitled “Software Highlights” and only showed top-level revenue.

In other words, the company’s own presentation spends about 1% of its time talking about the software business without bothering to mention whether or it it’s even profitable.

(It’s not profitable; if you read the footnotes and financial addenda, you’ll see that Strategy’s “cloud-based, AI-powered” software loses LOTS of money…)

 The other 99% of the presentation talks about Bitcoin. So, Strategy makes no bones about it-- they are a Bitcoin company. Full stop.

And if they’re not talking about Bitcoin, they’re talking about how much money they’re going to raise, to buy more Bitcoin.

 Strategy’s current plan calls for a whopping $42 billion in new capital-- a number they seem to have landed on not through hardcore financial analysis, but as a joke related to Hitchhiker’s Guide to the Galaxy in which ‘42’ is the answer to the ultimate question of life.

 Half of this $42 billion will be raised by indebting the company more, and the other half by diluting existing shareholders.

*************************************

 Management’s ultimate goal is to increase the average number of ‘Bitcoin per share’ that the company holds. That’s not unreasonable. But for this to happen, there are a number of things that have to go right-- from cybersecurity to crypto markets-- nearly all of which are beyond their control.

 They don’t seem to have given these risks much thought. They assume, for example, that the Bitcoin price will appreciate by 30% per year.

And there are a number of very attractive charts, several of which demonstrate how high Strategy’s stock price will go in various scenarios. They show graphs with lines that start from the bottom left and soar to the top right, and there seems to be no credible way in which investors could lose money.

 Then they polish it all off with made-up metrics like “Bitcoin Yield”, “Bitcoin Multiple”, “BTC $ Income”, and my personal favorite, “Bitcoin Torque”.

 Strategy ends up disclosing six full pages of definitions just to explain what the hell they mean with these new terms.

 For example, they humbly admit that “BTC $ Income is not equivalent to ‘income’ in the traditional financial context.” In other words, it’s not income. But they’re calling it income anyway.

 Honestly it reminds me of Adam Neumann making up his own financial metrics when he infamously published WeWork’s “Community Adjusted Earnings” several years ago.

 Strategy concludes its Q1 update by asking shareholders to spread the word and “educate their peers” about Bitcoin and MicroStrategy securities, i.e. help us keep this bubble going by finding more people to overpay for our assets.

And that’s exactly what it is; again, based on its stock price, Strategy is worth $118+ billion. Yet its BTC holding are worth $61.5 billion. So, anyone who buys Strategy stock solely for the Bitcoin exposure is overpaying by 2x.

 Buying Strategy stock is the equivalent of paying $210,000 for Bitcoin today. And if you are willing to pay $210,000 for Bitcoin today, please contact me right away and I will gladly sell you some of mine.

 Strategy doesn’t hide from this insanity. In fact, they’re leaning into it. They even track this on their website under the metric “mNAV”, i.e. the multiple by which investors overpay for the company’s Bitcoin.

 Their presentation actually tries to rationalize this phenomenon; they claim the 2x mNAV is justified because of their stock’s volatility (which attracts traders) or that their “brand recognition and scale drive superior investor interest.”

 Some of their financial models even assume that this mNAV will INCREASE to 3x!

 Maybe so. But the bottom line is that there’s most likely a lot more upside to own Bitcoin directly. And the hard truth is that if you can’t figure out how to own Bitcoin directly, you probably shouldn’t bother buying Bitcoin to begin with… let alone paying twice the price for it.

To your freedom,  James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/this-is-a-118-billion-strategy-for-insanity-152900/?inf_contact_key=d0a274af81cebec34b5ad7c006c991b8c61f0136bd9e1f6d9cd3b34032effcc5

Bizarrely, The “GENIUS Act” Might Actually Be Pretty Genius…

Bizarrely, The “GENIUS Act” Might Actually Be Pretty Genius…

Notes From the Field By James Hickman (Simon Black)  May 30, 2025

Peter Schiff isn’t just my partner at Schiff Sovereign-- we’ve been close friends for many years. And we generally see eye-to-eye on most things going on in the world.

 But one area where we disagree is crypto. Not to put words in his mouth, but Peter is pretty vocal in his criticism of Bitcoin; he says it’s “useless” and a “total scam” and predicts it will go to zero.

 I disagree. There are a number of important use cases for crypto-- whether as a speculative asset for capital gain, a store of value, a digital currency for online transactions, a private means to hold wealth, a way to disconnect from the banking system, etc.

 This isn’t a “scam”. Rather, it’s useful, functional technology… which is why I recommended it to my audience as far back as March 2013.

 Obviously crypto has deep flaws and areas to improve. And just like in any frontier boom, plenty of thieves and lunatics have emerged. But to judge crypto based on the misdeeds of Sam Bankman-Fried is like condemning the stock market because of Bernie Madoff.

 All that said, there are still plenty of things that I’m skeptical about.

 For example, I think there’s a bizarre disconnect between Bitcoin’s market cap and its actual value; I recognize that Bitcoin is the original cryptocurrency, and there’s some ‘brand value’ associated with that.

 But as the oldest cryptocurrency, it’s also the most technologically obsolete… therefore it should not be the most valuable; no other sector places the highest value on the most obsolete technology. Only crypto. And that’s a bit odd.

 There are plenty of other oddities; for example, it’s strange that the company Strategy (formerly Microstrategy) has an enterprise value of $112 billion, even though its only asset is $61 billion worth of Bitcoin.

 In other words, the company is worth nearly twice as much as the Bitcoin that it owns; this is bizarre and doesn’t make any sense.

I’m also extremely skeptical of the US government’s involvement in crypto; the pre-election promises of starting a Sovereign Wealth Fund to own Bitcoin struck me as completely ludicrous.

 I mean… think about it: one of the things that would drive up the price of Bitcoin is excessive government spending. So rather than cut spending, the government wants to own an asset that will benefit from their own financial irresponsibility. It’s back asswards in my humble opinion.

Naturally I was also skeptical when I heard about the GENIUS Act (Senate bill 394) to regulate crypto.

 Then I read the legislation. And I concluded that the GENIUS Act might actually be pretty genius.

GENIUS stands for “Guiding and Establishing National Innovation for US Stablecoins”. Something tells me ChatGPT came up with that.

 And the basic idea is for state and federal regulators to authorize “Permitted Stablecoin Issuers” who could… well, do just that-- issue stablecoins.

 States can issue their own licenses and permits to stablecoin businesses. But once a particular coin passes a $10 billion market cap, it must be regulated by the Feds.

 Here’s the smart part: in the definition of stablecoins, they include anything that owns short-term Treasury bills. So, through this legislation, they are creating an entirely new class of investors who would purchase US government debt.

 This is pretty important, because the Treasury Department is in sore need of new lenders.

 Foreign investors are fleeing the Treasury market; after decades of being considered the world’s “risk-free asset”, foreign governments and central banks are aggressively reducing their dollar holdings.

This is THE primary reason why the gold price has come so high: foreign governments and central banks have been cashing in their Treasury bonds, then trading that US dollar cash for gold.

Given that the “One, Big, Beautiful Bill” calls for another $2 trillion deficit this fiscal year, Treasury is going to need all the lenders it can get.

 Remember that stablecoins (especially under this legislation) are basically just money market funds in disguise; they pool capital and buy government bonds.

 So, this GENIUS Act is essentially a way of tapping crypto wealth and diverting that capital into Treasury securities.

 It’s a clever idea. But frankly it would be a lot better if the government simply cut spending rather than come up with innovative ways to finance the deficit.

 To your freedom,   James Hickman    Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/bizarrely-the-genius-act-might-actually-be-pretty-genius-152877/?inf_contact_key=621bb5036b24c6f1832a991bdeae679376f2a36d5c9f30736335e3c4f3607839

'Rich Dad Poor Dad' Author Warns 'The Biggest Crash In History Is Coming'

'Rich Dad Poor Dad' Author Warns 'The Biggest Crash In History Is Coming'

Anand Sinha   Mon, June 2, 2025   TheStreet

Robert Kiyosaki, the author of the bestselling book "Rich Dad Poor Dad," has issued another stern warning about the market.

The personal finance writer recently took to X to voice his persistent concern about "the biggest crash in history" that he says is coming as predicted in his book, "Rich Dad’s Prophecy" (2013).

When the stock, bond, and real estate markets crash this summer, millions of people, "especially my generation of boomers," will be wiped out, he warned.

Robert Kiyosaki 

@theRealKiyosaki

Do not say I didn’t warn anyone. As predicted in my book Rich Dad’s Prophecy (2013) the biggest crash in history is coming. I am afraid that crash time is now and through this summer. Unfortunately, millions, especially my generation of boomers will be wiped out when the stock and bond markets crash. The good news is millions who are proactive may become extremely rich… and as you know….I want you to be one of those who become very rich.  To read more: LINK

However, Kiyosaki seemed to offer a way out to "proactive" individuals who can not only survive this crash but may even become "extremely rich."

Billions of traders will shift to gold and Bitcoin — the "digital gold," as Bitcoin proponents like to call it, Kiyosaki predicted. He placed his biggest bet on silver, though:

As per Kraken, Bitcoin was quoted at $104,446.51 at press time, 6.7% lower than its May 22 record high of $111,970.17. Gold was trading at $3,372.30 per oz. at press time, 4% lower than its Apr. 22 record high of $3,500.

Meanwhile, silver was exchanging hands at $34.58 at press time, 30% lower than its record high of $49.95 per oz. that it reached way back in January 1980.

It is this price dynamic of silver that Kiyosaki said he was going to exploit. Gold and Bitcoin are also on his cards.

The bestselling author asked his X followers:

What are you going to do tomorrow….grow richer or grow poorer? Please choose to get richer.

TO READ MORE:  https://www.yahoo.com/finance/news/rich-dad-poor-dad-author-223000952.html

Finally Hit It Rich? Here are the Top 5 Reasons To Never Share That With Anyone

Finally Hit It Rich? Here are the Top 5 Reasons To Never Share That With Anyone (even your closest friends)

Vishesh Raisinghani   Mon, June 2, 2025  Moneywise

If you’ve managed to accumulate some wealth, showing it off can often be tempting. After all, what’s the point of success if you can’t indulge in it?

However, a growing cohort of ultra-wealthy Americans are trying to conceal their wealth rather than flaunt it openly. Here are five reasons why stealth wealth or quiet luxury lifestyles are gaining traction and why you should consider concealing the true extent of your fortune.

Privacy and security

Being publicly wealthy could make you a prime target for thieves, fraudsters and criminal gangs. According to Silicone Valley Bank’s coverage of a study by Experian and the Department of Justice, identity theft is 43% more prevalent among the affluent.

Organized criminal gangs have targeted celebrities like Kim Kardashian and Paris Hilton, while high-profile athletes in major leagues such as the NFL and NBA are at risk of targeted home invasions, according to an the FBI report obtained by ABC News.

Business Insider even reported that Warren Buffett evaded a kidnapping in the 1980s.

With this in mind, downplaying your fortune could be the best way to safeguard your privacy and protect your family.

Broken relationships

Money has an undeniable impact on your personal relationships, especially if your loved ones are not on the same page as you when it comes to finances.

While it’s not a good idea to hide your financial standing from a legal spouse, new friendships and certain family members may be another story. Roughly 57% of Americans admit to feeling envious of someone else’s financial situation, according to a 2023 finance survey.

Put simply, hiding your income and wealth could be a great way to sustain your relationships.

Avoid lifestyle creep

One of the pitfalls of flaunting your wealth is that it’s difficult to stop. Once you’ve bought a fancy house or luxury vehicle, downgrading could be embarrassing which puts pressure on you to sustain that lifestyle.

TO READ MORE:  https://www.yahoo.com/finance/news/finally-hit-rich-top-5-120700558.html

6 Money Lessons From Rachel Cruze That People Hate the Most

6 Money Lessons From Rachel Cruze That People Hate the Most

Nicole Spector  Mon, June 2, 2025   GOBankingRates

“The truth hurts!” is the kind of puerile retort we’re used to hearing in elementary school scrimmages and on trashy daytime talk shows. Yet, sometimes, this is a pretty spot-on sentiment. Scientific research has found that hearing the truth really can be hurtful. But it’s also usually necessary for growth. And this applies to our financial lives as much as, if not more than, anything else.

In her more than 15 years of working in the personal finance space, Rachel Cruze has found that there are some money truths, or lessons, that especially rub people the wrong way. Here are the six things that Cruze teaches about money that folks hate to hear about the most.

Don’t Buy a New Car Until You’re a Millionaire

No financial expert wants you to go out and buy a new car if you can’t afford it, but Cruze runs extra conservative here. She disapproves of anybody buying a new car if they have a net worth under $1 million. Many people don’t like her take, but it’s worth hearing out. New cars depreciate rapidly the instant you drive them off the lot. And they just keep plummeting in value over time.

“If you have the margin to be able to take that financial hit and it’s not a big deal in your world overall, then that’s OK to do,” Cruze said.

Eliminate Credit Cards From Your Life

We all know that credit cards can hurt us if we’re not careful, but we may not recognize just how careful we need to be. And we may not realize that credit card companies are constantly coming up with ways to seduce us into spending more. Think travel points and cash-back rewards.

Cruze advises people to stay away from credit cards entirely — advice people tend to find is unrealistic or overly aggressive. But honestly, most people aren’t paying off their credit cards every month, even though they know they should be. Additionally, a no-credit-card life is a pretty peaceful one.

“When you choose a life without debt, not only mathematically are you not sending your income to banks instead of keeping your income and investing it for yourself, there’s also an emotional aspect:When you have autonomy over your money completely … there is a level of peace that comes with that,” Cruze said.

Combine Checking Accounts With Your Spouse

TO READ MORE:  https://finance.yahoo.com/news/6-money-lessons-rachel-cruze-180035778.html

Benefits of a Cash Budget – Part 2

Benefits of a Cash Budget – Part 2

Written by Sam - 

In part 2, I explain how budgeting will help save you time in the budgeting process.

How Cash Will Cut Your Budgeting Time By 80%

Think for a second about entering transactions into financial software like Quicken or YNAB. What are most of the transactions? By far the majority of the transactions come from categories like groceries, household, or entertainment. They are purchases at the grocery store, or walmart, or the corner convenience store.

What if you took those transactions away. For most people, there are only a handful or two of transactions left that occur every month. You might have utilities, a cell phone bill, a few gas transactions, but that’s about it.

Most of Your Transactions Come From Just a Few Categories

This is a classic 80/20 example. 80% of your transactions come from 20% of your budget categories. In fact, I would guess that for many people it’s more of a 90/10 rule. 90% of their transactions come from 10% of the categories. If you’ve used financial software in the past, go check this out and see if it holds true. In fact, leave a comment and let me know if it’s true. I know for us it IS true.

Now I want you to think about the time you spend budgeting every month and what that time is spent on. If you’re like us it’s spent on entering and/or categorizing transactions from the previous month. It’s spent tracking down transaction #x and finding out what it was for. Either you don’t remember or your spouse spent it and he/she doesn’t remember. You spend time tracking down missing receipts. It’s all a big mess.

Well all of that craziness doesn’t have to be. In fact, I’m going to give you permission to stop entering every transaction. How can I do that? Well let me ask this: why do you need to enter all those transactions? Do you really want to know how much you spend on milk every month? Do you ever really care to know on an itemized basis what individual items you purchased in your grocery category?

I don’t think that’s the case. If you think about it, all you really care about is spending the amount you want to spend in any given category. Well I’ve just shown that you can accomplish this goal by using cash. You don’t accomplish this goal by tracking every little thing, if fact, doing so is a lag measure and won’t have any impact on how much you spend next month. You’ll just go through the same process taking a lot of time and experiencing the same or similar results.

One Entry To Rule Them All

So am I saying that we don’t enter in our grocery transactions? That’s exactly what I’m saying. We have one entry in YNAB that is a cash withdraw for our grocery category. We don’t keep receipts, we don’t enter individual transactions. And do you know what? We have achieved our goal of staying within our budget more frequently and consistently than we ever did tracking everything.

To be more specific, we have one cash withdraw, or sometimes two over the course of the month that cover a number of cash categories. At the end of the month, we may have as little as 10 total transactions in our register for the month and most of these are for automated transactions that are easy to identify, categorize and reconcile. It has literally changed our budgeting lives.

My cousin is a great example of how using cash can decrease your time spent budgeting. She pulls out cash for all of her non-automated expenses. She doesn’t even split the money into categories. She has such a good sense of how much money they need in the month for the various categories that she can consistently stay within budget even without categories.

At the end of the month, she has roughly 10 total transactions (if I’m remembering correctly) to deal with in reconciling her budget. Talk about quick and easy. Now I wouldn’t recommend lumping all your cash together at first, but as you get a better intuitive grasp on your spending over time, you can easily start combining your cash categories like she does.

The Myth of Tracking Everything

TO READ MORE: http://www.gettingfinancesdone.com/

Benefits of a Cash Budget – Part 1

Benefits of a Cash Budget – Part 1  

Written by Sam

In this article series of articles, I have recorded somewhat of a manifesto for using cash in your budget.

That’s right, I’m talking about using cash in your budget. Using cash in your budget is a tough topic. People shy away from it and toss it aside as being too much of a hassle. I want to challenge you to put those beliefs aside for a moment and let me make a case for using cash.

The fact is, I know how you feel. Using cash in our budget was one of the things I fought against most. We started using cash as part of Financial Peace University. It was one of those concepts I was ready to ignore and tried to convince my wife that we shouldn’t use cash. But she wanted to give it a shot and since I’d agreed to follow the program, I reluctantly went along.

I’m glad I did.

It quickly became clear how powerful using cash in your budget is. I was quickly converted and became a big advocate for using cash. In fact, I now consider it a requisite for having an effective budget. REALLY! I don’t know a single family who considers themselves successful at budgeting that doesn’t use cash.

On the flip side, I know plenty of people who struggle with their budget or struggle staying within their spending limits and are always trying to figure out why. Yet, they resist using cash. They just won’t give it a try. Or they give it a half-hearted try and quickly give up.

How We Saved $6,000 In One Year By Using Cash

So what was the result of using cash for me and Emily? Not only did we stay within our budget consistently for the first time in our marriage, but we actually spent $6,000 less the year we started using cash with no perceived decrease in lifestyle. It was mind boggling that we saved so much.

We saved an average of about $500 a month. We spent less on groceries, ate out much less, and no longer made impulse credit card purchases to the tune of hundreds of dollars a month. But I never would have thought those seemingly little things would make such a big difference in our savings.

The Advantages Of Using Cash

There are several advantages of using cash in your budget, but there are mainly two that I want to emphasize.

First, using cash makes it easy to control your spending and to keep within your budget.

Second, using cash will cut as much as 80% of the time spent reconciling your budgeting at the end of the month. While I’ve already showed you how to speed up your budgeting process, using cash is the thing that will have the greatest single impact in decreasing your budgeting time. My wife and I spend 30-60 minutes a month budgeting. THAT’S IT!

In this article I’ll be addressing the first advantage of using cash.

Before I jump in let me point out that I’m not saying you need to use cash for your WHOLE budget. In fact, there are some cases in which using cash doesn’t make sense. You’ll mainly want to use cash in those categories in which you tend to overspend. This may only be 2 or 3 categories.

Controlling Spending With Cash

The Power of Instant Feedback

Cash is the perfect instant feedback mechanism. It easy to keep from overspending because when the cash is gone, you know you’re done spending. It’s really as simple as that.

Alternative Ways to Track Your Spending

When using credit cards you are totally disconnected with how much you’ve spend and how much is left to spend. Some people try to track their spending by writing everything down in a notebook, but in my own personal experience and hearing experiences of others it’s very difficult to be consistent with a system like that. Inevitably you stop keeping track.

TO READ MORE: http://www.gettingfinancesdone.com/

11 Guidelines For Using Cash In Your Budget

11 Guidelines For Using Cash In Your Budget

Written by Sam

Here’s how to tell in which categories you should use cash.

1. You Don’t Have To Use Cash For Everything

To reap the benefits of using cash in your budget, you don’t have to go exclusively to cash. Some may choose to go exclusive, but it’s not necessary. Instead, identify which categories will be most effective for using cash using the tips below.  You should use cash for categories where either you tend to overspend or where there are a lot of transactions in a month.

Groceries are a main perpetrator of both those criteria which is why I absolutely recommend funding that category with cash. Other problem categories are ones relating to household spending (light bulbs, cleaning products, etc), eating out, personal, and entertainment.

There are actually some categories where it is easier to NOT use cash. Specifically I’ll mention gas for your car. At first Emily and I used cash for gas but found it to be significantly more inconvenient, especially during the winter.

After looking at our gas spending we realized that we don’t tend to overspend on gas. Our gas budget went up and down depending on the price of gas, but we weren’t more likely to drive less by using cash. I still had to commute to and from work no matter what and we don’t take a lot of trips.

Gas purchases also weren’t hard to track in our financial software. We knew that if the transaction was at Texaco it was gas so it didn’t add any confusion at the end of the month. In the end we decided that it wasn’t worth it to use cash and now use a debit card.

Some categories are on the edge and could go either way. For example, haircuts is a category that I think should not be cash, but Emily likes it in cash. From my perspective it’s not hard to track haircut transactions. A transaction at SportsClips is self-evident. There aren’t a lot of haircut transactions. At most I will get one and Emilyi will get one. I’m also not likely to overspend and get haircuts more often if I’m not using cash. For me, this category doesn’t need to be in cash.

For Emily that’s not the case. She is more likely to get a haircut or styling if there’s money available for it. She also will let money accumulate from month to month and then get her hair colored with the extra money. She likes having the money in cash because as it accumulates it gives her permission to do something extra without guilt. Therefore, Emily prefers to have this category in cash.

 In the end we do our haircut money in cash, but we could just as easily split the category into “his” and “hers” and do one in cash and the other not.

2. You Have To Commit For Cash To Work

When starting to use cash for chosen categories, you have to be willing to totally commit. If you have some transactions in cash and some on credit/debit card at the end of the month, you’re going to run into the same headaches you’ve always had. This means that ideally both spouses are on board. If your spouse resists, see if he or she is willing to give it a try for just a month.

TO READ MORE: http://www.gettingfinancesdone.com/

5 Basic Money Skills Many Americans Don’t Know

5 Basic Money Skills Many Americans Don’t Know

Ashley Donohoe  Thu, May 29, 2025   GOBankingRates

A Pew Research study found that 46% of Americans didn’t have at least a fair amount of knowledge of personal finances. Unfortunately, lacking financial literacy can put you at risk of taking on too much debt, not having enough for retirement and being unable to cover expenses.

In a YouTube video, money expert George Kamel reacted to this study’s findings and gave straightforward advice on handling five essential money tasks that many American adults struggle with. Learn how to boost your skills in these popular weak areas.

Checking Credit Reports

The Pew study noted that 25% of Americans didn’t feel very or extremely confident about getting their credit reports. While lenders and others may pull these reports to make important decisions based on your creditworthiness, you should also check them at least annually to spot errors or account issues and see where you stand with your debt.

Getting your credit report is easy, and you can do it weekly for free. While you could go directly to each credit bureau’s website, Kamel encouraged using AnnualCreditReport.com to get them all more conveniently. You’ll just need to provide some information to verify your identity. If you see any errors, contact your creditors and consider disputing them with the credit bureaus.

Budgeting

An estimated 41% of Pew study respondents weren’t very or extremely confident with budgeting. Not knowing where your money is going every month puts you at risk of overspending and not leaving some cash for your goals.

Kamel explained how to make a simple budget, starting with writing down your total monthly income and all expected monthly expenses (including giving and saving). You’ll then calculate what’s left of your income after those expenses, which Kamel said should be $0 based on his preferred zero-based budgeting method. But the same doesn’t apply to your bank account balance.

“It’s wise to keep a buffer of at least $100 bucks or more in your checking account,” Kamel said. Once you’ve got your budget, start tracking expenses to make sure you’re sticking to your plan.

Paying Off Debt

A report from the Federal Reserve Bank of New York mentioned that U.S. households owed a total of $18.2 trillion in debt. Especially for the 43% of Americans lacking confidence in paying down debt, the monthly payments, interest and lost opportunities to invest make it hard to get ahead.

TO READ MORE:  https://www.yahoo.com/finance/news/george-kamel-lower-monthly-bills-160124044.html

5 Money Mistakes Even Financially Savvy People Make

5 Money Mistakes Even Financially Savvy People Make

Cindy Lamothe  GOBankingRates

No matter how great you are at managing your finances, no one is immune to making the occasional money mistake — and some of these can be dire.

“It’s important to recognize that some seemingly minor errors can have significant long-term effects,” said Michael Ashley, finance expert and founder of Richiest.

While everyone has financial blind spots, the good news is you can learn about them before they cause you problems. Here are some of the top money mistakes even the most financially savvy folks make.

Earning passive income doesn't need to be difficult. You can start this week.

Neglecting to Regularly Review and Adjust Financial Plans

One common mistake, according to Ashley, is neglecting to review and adjust your financial plans regularly. “Many people assume that once they’ve set up a budget or investment plan, they don’t need to revisit it.”

However, changes in income, expenses or life circumstances can render old plans obsolete, potentially leading to missed opportunities or financial shortfalls.

Underestimating Small, Recurring Expenses

Another frequent issue is underestimating the impact of small, recurring expenses.

While a small subscription service or daily coffee might not seem like a big deal, Ashley said these expenses can add up over time and erode savings if not monitored carefully. “This can be particularly damaging in the long run, as the cumulative effect of these small expenditures can be substantial.”

Failing To Diversify Investments

According to experts, some people also make the mistake of relying too heavily on a single investment or income source.

“Diversification is a fundamental principle of financial management, and failing to spread out investments or income streams can leave you vulnerable to market fluctuations or job loss,” said Ashley.

He explained this lack of diversification can result in significant financial risk and instability.

“Truth is, thinking that you are good with money is one of the easiest ways to let your guard down and put yourself in a situation where you steadily miss out on financial advancement opportunities,” said Mafe Aclado, finance expert and general manager at Coupon Snake.

In her experience, one of the most common money mistakes people make — even when they are generally good with money — is failing to diversify their investments. Particularly frugal people, for example, have some good habits, like avoiding impulse spending, but they also avoid all but the most familiar and safe investments.

She said these people lay all their financial eggs in one basket. “And what makes this a huge money mistake is by concentrating all their investment[s], they run a huge risk of loss if the investment performs badly.”

Forgetting To Maintain an Emergency Fund

Moreover, even those who are generally good with money might overlook the importance of maintaining an emergency fund.

TO READ MORE: https://www.yahoo.com/finance/news/5-money-mistakes-even-financially-160055894.html