31 People Share The Best Money Advice They've Ever Gotten

31 People Share The Best Money Advice They've Ever Gotten

Simple ways to save and smart ways to spend.

by Sally Tamarkinn   BuzzFeed News Reporter

Everyone needs money, but everyone has different strategies for saving it and spending it.  So we asked members of the BuzzFeed Community to share with us the best advice about money they'd ever gotten.

Here's what they shared:

1. Keep your three biggest expenses as low as you can.

"Your three biggest expenses are (usually in this order): housing, transport, and food. Keep those as low as you happily can, and that will make the most significant difference to your spending. I do this by sharing housing, cooking at home, and not having a car. You can lower other expenses and that definitely helps, too (i.e. get store brand, a cheaper mobile phone contract, clothes, etc.) but housing, transport, and food are where lowering costs will make the biggest difference."   —maxw46042041e

2. If you want to pay off multiple debts fast, try the Snowball method.

"Basically, you commit to paying an extra amount ($100 in this example) every month until all your debt is paid off. Also, once an account is closed, you add that minimum payment to the power payment.

You start by making a power payment (to the principle only) to the account with lowest balance debt, each month, until it's paid off. Once it is, you take the $100 and the monthly payment for the balance that's now closed and apply that to the next lowest balance debt until it's paid off. Rinse and repeat.

Eventually your power payments are huge and those larger balance debts don't seem so scary. It also doesn't impact your monthly budget too much. I paid off all my debt (student loans, credit cards, and car loans) by the time I was 28 using this method. I heard about it when I was 25."  —ja14torres

3. Round up on each bill and pay that amount.

"My dad always told me to round up your bills and pay a little extra, as it makes your next month's bill lower, leaves a good impression, and you won't miss the extra $5-$10."—elyse1509

4. Figure out what your monthly bills are going to be and then put that amount in savings throughout the month.

"I calculate what my bills are going to be for the month (car payment, rent, utility bills) then put half of that from each paycheck (I get paid bi-weekly) into savings so I know how much extra I have to work with. I also usually try to round up my bills and then I won't touch that extra money I put into my savings. For example, if my rent is $375 a month, I'll take out $200 a paycheck and keep the extra $25 I didn't use on rent as extra savings."

—elyse1509

5. Use direct deposit to put money directly into an account that's just for bills.

"Where I work you can have your paycheck split into however many different bank accounts and however you'd like. So you can have a bank account solely for bills that never change, like house or car payments. If you automatically have your bill money put into one account then you know that whatever is deposited into your other account is 'leftover' money."  —ashlyns4aa602521

6. Every time you make a dollar, save a dime.

To continue reading, please go to the original article here:

https://www.buzzfeed.com/sallytamarkin/ways-to-stress-less-about-money

11 Awkward (But Important) Conversations About Money Every Couple Should Have

11 Awkward (But Important) Conversations About Money Every Couple Should Have

From splitting the bill for dinner to splitting the bill for life.

by Megan Liscomb   Personal Finance Editor

Talking about money can sometimes feel a little uncomfortable. And figuring out how to have a money conversation with someone that you ~like-like~ can take it to a new level of "I have no idea what I'm doing."

But even though it might feel awkward, talking about money is super important in a relationship. The way you and your partner handle finances (both separately and together) can have a huge impact on things that you might want to do together someday, like owning a home or starting a family.

So to get some guidance, I talked to Shelly Ann Eweka, Director of Financial Planning Strategy at the insurance company TIAA, and Tori Dunlap, a millennial money expert and Coupons.com spokesperson, to get some insights into conversations you should have about money in different stages of a relationship.

Remember, every relationship is different. Some of these things might come up on their own or at an earlier or later time than recommended here. So instead of a checklist, think of this as a general guide to help make your relationship even stronger by getting aligned on your financial goals.

And if you're thinking about having a money talk with your S.O., set yourself up for success by approaching them in a mellow moment when there aren't distractions around and you'll have time to talk.

Here are 11 money conversations you should have with your partner:

WHEN YOU’RE DATING

1. The "Splitting the Bill" Talk

One way to pick up on a person's ~money vibe~ early on is by talking about who pays before you go on a date. Tori Dunlap says that something as simple as offering to split a dinner bill can give you a feel for your date's attitudes about money. "It can be a really great way to figure out, 'Are we financially compatible? Is this a good potential relationship where we have these smart financial habits together?'"

Hopefully, you and your date will be able to have an open and easy conversation about splitting the check, possibly opening the door for bigger conversations about money later on.

2. The "What's Important to You?" Talk

Dating is all about getting to know each other, and learning what your date loves to do can give you a peek into how they spend their money — and help you work out how financially compatible you are. For example, if your date is obsessed with fancy restaurants, they likely don't mind spending money on eating out. But if you're more into saving cash by cooking at home, you two might clash down the line when it comes to making a food budget.

Shelly Eweka says you can also learn a lot about your date's values by sharing yours. "Put out there what your dreams are and what you're trying to achieve. For example, you might be paying off student loan debt or saving to buy a house." By sharing your goals and watching how your date responds, you can learn a lot about what's important to them.

Different values aren't necessarily a deal breaker and opposites often attract, but it's a good idea to go into a potential relationship with your eyes open.

3. The "Partnership Roles" Talk

You can also learn a lot about your date's money habits by asking them how they handled finances in a past relationship. For example, if they mention that they lived with an old flame, you might ~casually~ ask some questions about how they shared responsibilities in the relationship. Finding out how they've handled this stuff in the past can give you insight into what they might want to do in the future.

To continue reading, please go to the original article here:

https://www.buzzfeed.com/meganeliscomb/money-conversations-in-a-relationship?bfsource=relatedmanual

What Is Bankruptcy, and How Does It Work?

What Is Bankruptcy, and How Does It Work?

by: Maurie Backman |  Feb. 21, 2020

Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

When you're drowning in debt with no end in sight, you may start wondering if you should file for bankruptcy. There are both benefits and drawbacks to taking this drastic step, so it's important to know what you're signing up for. Here, we'll discuss how bankruptcies work and help you decide if it's the right route for you to take.

What is bankruptcy?

Bankruptcy is a legal process that lets people or entities who can't pay their debts obtain some type of relief by having those debts either reorganized or eliminated. You can file for bankruptcy as an individual, a corporation, or a municipality.

How do bankruptcies work?

When you file for bankruptcy, your debts are either reorganized so they're easier to pay off, or wiped out so you don't need to pay some or all of them. The exact process depends on the chapter of bankruptcy you file for.

When should I declare bankruptcy?

You might consider filing for bankruptcy when your debts are such that you see no reasonable way to keep up with your payments. The purpose of bankruptcy is to give people (or companies or municipalities) a chance either to wipe out some of their financial obligations and start over with a clean slate, or to repay those obligations in a more affordable fashion.

However, to be clear, bankruptcy is not an option to consider if your debt is fairly new, or if you're going through a temporary financial crisis that's likely to improve (such as being out of a job). There are consequences associated with filing for bankruptcy, and it's most certainly not a "get out of jail free" card. So you should really consider bankruptcy only as a last resort if you've tried paying off your debts but keep digging yourself deeper into a hole.

Types of bankruptcy

Bankruptcy isn't a one-size-fits-all solution. There are different chapters of bankruptcy that apply in different circumstances. If you're filing for a personal bankruptcy, your choices are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy

Chapter 7 is a personal liquidation bankruptcy. Your non-exempt assets are sold off by a court-appointed trustee to pay your debts to the greatest extent possible, and from there, your remaining unsecured debts are eliminated. (The amount of assets you can exempt varies from state to state.) Unsecured debts are those without collateral behind them -- debts like credit card balances and medical bills.

Qualifying for Chapter 7 is harder than qualifying for Chapter 13 because you'll be subject to what's known as the means test. If your income is lower than the median income in your state for a household your size (meaning, based on the number of dependents you have), you'll pass the means test and be eligible for Chapter 7. If you don't pass the means test based on income alone, you can deduct certain expenses, such as taxes, mortgage payments, and child care, from your income to see if it comes in under the necessary threshold.

To continue reading, please go to the original article here:

https://www.fool.com/the-ascent/bankruptcies/

11 Great Documentaries That Might Change The Way You Think About Money

11 Great Documentaries That Might Change The Way You Think About Money

BuzzFeed Tue, August 3, 2021

1. The Most Important Class You Never Had

What it's about: This 35-minute film follows eight personal finance educators around the country as they talk with high school students about important financial concepts. Plus the students and teachers also share personal stories about their relationships with money that are honestly super relatable. If you've ever wished you learned more about money when you were in school, this film is a great place to start.

Where you can watch it: YouTube Next Gen Personal Finance / Via youtube.com

2. Money Explained

What it's about: This limited documentary series by Vox explores five financial topics: get rich quick schemes, credit cards, student loans, gambling, and retirement. And it covers a lot of ground quickly, with super digestible 22-minute episodes. Plus it features narration from celebs like Tiffany Haddish and Jane Lynch. TBH my only critique is that I wish there were more episodes! Where you can watch it: Netflix

3. Thinking Money: The Psychology Behind Our Best and Worst Financial Decisions

What it's about: This PBS documentary is all about how our emotions and beliefs impact the decisions we make with our money. This field of study is called behavioral economics, and I think it's absolutely fascinating. The more I learn about how my brain works and how I make decisions, the better I've been able to steer towards positive choices and get past some of my money anxieties — and this doc is a great intro to all of that. Where you can watch it: PBS

4. The Minimalists: Less Is Now

What it's about: This documentary looks at how we can be happier with less stuff, and it really makes you think about how (and why) you're spending your money. While adopting this minimalist lifestyle definitely requires a certain level of wealth, the message I took from the film is to be more mindful about what I buy and ask myself, "Is this something that's meaningful to me?" before I spend. If you're looking for some inspiration to help you cut down on impulse spending, this documentary is worth your time.

Where you can watch it: Netflix

5. Dirty Money

What it's about: This series is all about corporate corruption and greed, so if you're anything like me you'll have to pause frequently for rage-breaks. But with that said, the episode about a shady payday lender in the first season should be mandatory viewing. It shows the devastating effect that these high-interest loans can have on regular people and looks at who's profiting. It's hard to watch, but so important.

To continue reading, please go to the original article here:

https://www.yahoo.com/lifestyle/11-documentaries-actually-learning-money-034609123.html

$1M Is No Longer the Standard Nest Egg

$1M Is No Longer the Standard Nest Egg – Here’s How Much Most Americans Think You Actually Need To Retire

Gabrielle Olya  Wed, August 4, 2021

A common financial rule of thumb is that you should have $1 million saved for retirement, but this piece of advice may now be outdated — you may actually need roughly double that. At least, that’s what most 401(k) plan participants believe. A recent survey conducted by Schwab Retirement Plan Services found that on average, 2021 plan participants think they need to save $1.9 million for retirement. But how accurate is this number?

$1.9 Million Is a Good Estimate for How Much You Will Need in Retirement

Nathan Voris, director of business strategy at Schwab Workplace Financial Services, thinks that the survey participants have a pretty accurate idea of how much they will need in retirement.

“I think for a survey like this, that’s a pretty good number,” he said. “That’s a ballpark range for a wide range of folks. Obviously, retirement is not one-size-fits-all, but that’s sort of the middle of the range for a lot of people.”

As Voris notes, there are numerous factors that will affect how much someone will actually need in retirement, so some may need more and others may need less.

“There’s so much written about that, but I boil it down into just a couple of things. One is, when do you want to retire?,” Voris said. “If you’re going to retire at 50, you need to plan for 45 years of living expenses. If it’s 67, you need to plan for 30 years. That has a huge factor in what your plan should be.”

 “One of the other levers is, what lifestyle are you going to have in retirement?” he continued. “Where are you going to live? Are you going to live in California or Wyoming? Think about the state tax perspective. Are you going to have an active lifestyle? Or are you living close to grandkids where you’re going to be pretty local? There’s a lot of factors in what level of lifestyle you want to live in retirement.”

Finally, how much you need to have saved for retirement will depend on your other sources of income in retirement. This includes Social Security, pensions, assets and inheritance.

“Those kinds of things can be a factor in what the retirement future looks like,” Voris said.

Why $1 Million Is No Longer Enough

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/1m-no-longer-standard-nest-150025075.html

Essential Money Tips for Surviving the ‘Pandemic Spiral’

Essential Money Tips for Surviving the ‘Pandemic Spiral’

By Gabrielle Olya February 18, 2021

Take a deep breath before you spend more.

In a story for The Atlantic, writer Ed Yong put forth the idea that, thanks to the coronavirus, America is stuck in a "pandemic spiral" that's destroying, among many things, their budgets.

"Many Americans trusted intuition to help guide them through this disaster," he wrote. "They grabbed onto whatever solution was most prominent in the moment, and bounced from one (often false) hope to the next. (...) The country is now trapped in an intuition nightmare. (...) Americans are walled in by their own unhelpful instincts, which lead them round and round in self-destructive circles."

While trusting your instincts can be productive, it can also sometimes be disastrous -- leading to financial ruin if you're "going with your gut" with every money decision amid the pandemic. Here are a few money tips that may go against your gut reaction, but that can save you from ending up broke by the end of the coronavirus pandemic.

Prioritize Emergency Savings

Yong said it's easy to fall into a "normality trap" when dealing with a crisis, as people want to return to "normal" ASAP rather than facing the uncertain world we are now in. Put into financial terms, you may be maintaining your normal spending behaviors if you're not one of the millions of Americans who have lost their jobs due to COVID-19. But just because you haven't lost your job doesn't mean that you won't, as the economy is still rocky for many sectors. Given this uncertainty, it's important to prioritize your emergency savings.

“As the COVID-19 pandemic makes clear, financial stressors can strike with minimal warning,” said Greg Klingler, CFP, ChFEBC, director of wealth management for the Government Employees’ Benefit Association. “An emergency fund is a crucial part of your budget, and you may need to contribute a bit less to your savings (retirement or debt payments) and/or wants (entertainment, clothes, etc.) to establish and fund it. All Americans should maintain three to six months of expenses in liquid cash.”

Cut Costs Where You Can

 In order to save more, you will likely have to spend less. If you're saving money by not commuting, not traveling and going out to eat less, save that money rather than blowing it on online shopping or panic buying.

Put Your Savings Into a High-Yield Savings Account

With the economy in its current state, you may be wondering if your money is still safe in a bank. Do not panic -- the Federal Deposit Insurance Corporation covers up to $250,000 in each bank account, which means that even if your bank fails, your money is fully protected by the U.S. government.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/financial-planning/essential-money-tips-surviving-pandemic-spiral/

12 COVID-Proof Money Tips From Financial Planners

12 COVID-Proof Money Tips From Financial Planners

By Jaime Catmull February 22, 2021

Make sure your finances can withstand the pandemic.

The coronavirus pandemic has changed nearly every aspect of our financial lives. Many of us have lost jobs or work hours, seen our investments swing from highs to lows and changed the way we spend money, with many of our usual expenses (commuting, vacations, etc.) now off the table. With so much uncertainty still looming about how the pandemic will affect the economy going forward, it's important to make smart financial moves that can weather whatever is to come.

While some golden rules of money management still stand, other advice has changed due to all the uncertainty we've been facing in recent months. I spoke to financial planners to find out what tips they've been giving their clients to ride out the current crisis and be prepared for whatever the future may hold. Keep reading to check out this advice for yourself.

Focus On What You Can Control

"You can’t predict or control how the pandemic will impact the market," said Carrie Schwab-Pomerantz, CFP, board chair and president of the Charles Schwab Foundation. "But you can control how you manage your investments, your savings rate, having a financial plan and how you react to events."

Create a Budget To Maximize Your Resources

Creating and sticking to a budget is one financial tip that always applies; however, you may need to revisit yours to account for any changes in your lifestyle due to the pandemic.

"If you can, rethink your needs and wants, reprioritize your expenses and plan better for the future," Schwab-Pomerantz said. "Put what you don't spend on 'extras' toward the future — whether that's your emergency fund, retirement or education."

Keep Your Expenses Low

"Managing expenses during this time is very important," said Robert Conzo, CFP, CEO and managing director of The Wealth Alliance. "Job stability is a very big issue and can dramatically affect people’s lives. Living within one's means is always a good practice -- now is no exception and could potentially allow a family to reduce the negative impact of a job change."

Discover: Are You Spending More Than the Average American on 25 Everyday Items?

Build an Emergency Fund

"We don't know how things are going to unfold or how long all of this will last," said Justin Pritchard, CFP at Approach Financial. "It's smart to have a little extra cash on hand for these times."

With so much volatility in the job market and the stock market, it's important to be financially prepared for whatever crisis you may face.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/financial-planning/covid-proof-money-tips-financial-planners/?utm_campaign=1119358&utm_source=yahoo.com&utm_content=6&utm_medium=rss

Will There Be a Fourth Stimulus Check?

Will There Be a Fourth Stimulus Check?

How Much Will It Be? All Your Questions Answered

Checks from the third stimulus are being distributed now. The program has proven to be really popular with the public. Nevertheless, the third stimulus is probably the last one.

Still, if you want to know more about a fourth stimulus check, we have some answers.

Q: Will there be a fourth stimulus?

A: The fourth stimulus will be in the form of President Joe Biden’s American Jobs Plan, an infrastructure plan. The initial bill includes funding for different projects all over the country, which will create work and benefit local communities. It also includes some worker protection language. The final bill may be very different.

Q: Does the new stimulus include a check?

A: No.

Q: Why won’t there be a fourth stimulus check?

A: In large part, because the economic damage from the pandemic is easing. People are getting vaccinated and offices are reopening.

Save for Your Future

Q: What about this $3,600 per child? Isn’t that a stimulus check?

A: Sort of. The $3,600 is an expansion of the Child Tax Credit for children age 5 and under. For children ages 6 to 17, the amount will be $3,000 per child. This is instead of the $2,000-per-child tax credit for 2020.

The stimulus bill increased the amount of the credit, and it changed the distribution from a credit taken at tax time to periodic checks. The IRS is still working out the details, but the current thought is that families would receive a payment of $250 to $300 per month per child, depending on the children’s ages.

Find: Could You Start Getting Monthly Stimulus Payments? Elizabeth Warren and More Prominent Dems Push Biden to Offer Regular Relief

Find: This Loophole Is Allowing Debt Collectors to Take Your Stimulus Check

To continue reading, please go to the original article here:

https://www.gobankingrates.com/taxes/tax-laws/will-there-be-a-fourth-stimulus-check-how-much-will-it-be-all-your-questions-answered/

Here’s How To Win A Real Estate Bidding War

Here’s How To Win A Real Estate Bidding War

Swapna Venugopal Ramaswamy, USA TODAY  Thu, July 29, 2021

‘I don’t care that I’m overpaying’: Houses are selling over asking price. Mystoura "Misty" Afolabi, a real estate agent in the Los Angeles area, was working with a young family for more than a year, trying to find them a home. But every time they saw a house they liked, they were outbid. Then in March, the couple decided to bid on a house even before they had a chance to see it.

The two-bedroom, two-bath property was listed at $585,000, well below market value – a tactic increasingly used to trigger bidding wars in a super-competitive, pandemic housing market.  The couple offered $620,000, or $35,000 above asking. Their offer was rejected.  “We couldn’t believe it,” says Afolabi, an agent for Redfin.

However, the homeowners, who had received 32 other offers, reached out to the five prospective buyers with the highest bids, including Afolabi’s clients, and asked them to come up with their best offer.

Having made the shortlist, the young couple, who have three kids, decided to see the house. “We met with the seller’s families, and both families got along really well,” says Afolabi. “They loved the house even more.”

The couple sent in their next offer at $650,000 with reduced time frames on inspection, appraisal, and loans. They increased their down payment to 50% from the standard 10% to 20%. They also wrote a letter to the sellers highlighting the specific things they had loved about the house. In the end, the couple beat out the competition, some of whom were investors and developers offering all cash.

Nearly three-quarters (74%) of offers written by Redfin agents in April faced bidding wars, according to the real estate brokerage. On average, every home sold in March had nearly five offers on it, according to the National Association of Realtors.

The housing market continued to break records in April, as home prices rose 21% year-over-year and the median home-sale price soared to $348,500, according to a report by Redfin.

The report also found that 48% of homes sold for more than their list price, with the average home selling for 1.4% more than the asking price.

To continue reading, please go to the original article here:

https://money.yahoo.com/don-t-care-m-overpaying-150730911.html

More Stimulus Money May Be Coming Your Way

More Stimulus Money May Be Coming Your Way – Here’s What To Do With It

Early tax filers may get a treat this year. If you’ve filed your taxes for 2020, you could be getting one of the “bonus checks” or “plus-up payments” the IRS distributed in the past two weeks, according to MoneyWise.

You may also be due to receive your third economic impact payment this week, as the IRS has been sending payments through the month of April, according to an IRS.gov press release. The press release states that a seventh batch of nearly 2 million Economic Impact Payments from the American Rescue Plan began processing April 23, with an official payment date of April 28. Some people may have seen the money in their account, marked as pending, prior to April 28.

The IRS says these funds total $4.3 billion across nearly 2 million payments.

Some people, however, who already received their third check could be receiving a “plus-up” payment if their economic situation changed between 2019 and 2020. If their 2020 tax return shows a new child or dependent or if your income dropped, you could be getting more money.

This is especially true if you didn’t qualify for the full $1,400 in the third round based on 2019 returns, but you do based on your 2020 filings, or if you got married in 2020 and filed a joint return, with adjusted gross income under $150,000 combined.

If you hadn’t been required to file taxes in previous years but did in 2020, you may also have more money coming, the IRS says.

While you may be tempted to book a trip for this summer as lockdown measures are lifted worldwide, don’t rush to spend those funds without taking a close look at your financial situation first. It’s okay to treat yourself, but there may be better ways to spend that money.

Pay Down High Interest Credit Card Debt

Don’t just toss money at your highest interest credit card, though. Instead, if your credit is good, apply for a credit card with an introductory APR of 0%. Consolidate as much of your debt as you can, and then begin paying down what’s left.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/economy/more-stimulus-money-what-to-do-with-it/?utm_campaign=1119358&utm_source=yahoo.com&utm_content=11&utm_medium=rss

People Who Are Good With Money Avoid These Missteps

People Who Are Good With Money Avoid These Missteps

By Jake Schroeder

While there are hundreds of potential mistakes people might make with money, there are some financial moves that can really set you back. Between bad habits and wishful thinking, poor financial choices can happen all the time.  This round-up can serve as your guide for what not to do when it comes to personal finance. From not saving for retirement to living beyond your means, here are some things that people who are financially stable don’t do.

Lose Track of Money

Money isn’t infinite. That’s why it’s important to keep track of where you’re spending it. If you don’t know where your money is going, it’s easier to waste it. Let’s say you’re paying for subscription services you don’t use. Before long, you’ve spent $1,000 on music streaming, and you had no idea. That $1,000 you didn’t use could’ve paid down a credit card.

Keep track of your spending, expenses, debts and investments. This doesn’t have to consume a lot of your time, but keeping track will ensure you’re going in with your eyes wide open. You should know where your money is and where it’s going.

Buy Houses They Can’t Afford

Being house poor isn’t a good look. This term refers to someone who uses most of their income on a housing payment. If you pay more for a house than you can actually afford, you’re putting yourself at risk financially.

Buying a house that you can’t really afford means you’re holding a lot of debt and making larger mortgage payments. The money you’re earning is all going to your mortgage instead of a savings account or a retirement fund. People who are good with their money understand that it’s better to stay within your means when it comes to housing.

Overspend on Credit Cards

Overspending on credit cards is one of the biggest financial mistakes someone can make. If you have too high of a credit card balance, you may be heading down a slippery slope. If you can’t make your payments, then you’ll also be subject to expensive late fees and interest charges.

Financially savvy people understand the importance of keeping their credit card debt low. You’ll save a ton of money on interest, and you won’t need to pay extra fees or late charges. The lower your credit card debt is, the higher your credit score will be, too.

Invest Money They Can’t Lose

To continue reading, please go to the original article here:

https://www.smarter.com/so-smart/avoid-money-missteps?utm_content=params%3Aad%3DsemA%26ag%3Dfw10%26an%3Dpub%26o%3D1471878%26qo%3DserpIndex&utm_source=ad-lite