Yes, I Am Cheap

Author: Tahnya Kristina

4 Ways to Make the Most of Your Retirement Savings

I think it’s safe to say we all want to retire someday, don’t we? I know I do and that means I need retirement savings. Someday around 60 years old I want to wake up without my alarm clock and spend my days drinking iced tea and doing yoga. I want to travel the world (by boat because I have a newfound fear of flying) and take afternoon naps in the warm sunshine. Ah yes retirement sounds lovely doesn’t it?

Your version of the perfect retirement life may be different, but the one thing we all have in common is that retirement takes planning and more importantly retirement savings. As a financial planner I wish I could tell you that at 65 years old you can magically quit your job and enjoy the life of a non-working citizen, but unfortunately I can’t do that. Retirement isn’t magic and if you want to stop working someday you’ll have to start saving now.

Here are four ways to make the most of your retirement savings:

Don’t look back

If you haven’t started saving for retirement yet that’s OK, but it stops today. If you want to retire someday you need a nice chunk of change and the sooner you start the more money you’ll have in retirement. This is thanks to a little thing we call compound interest.

When you invest money you earn interest on top of your previously earned interest plus your capital investment. Therefore the earlier you start contributing to your retirement savings the more money you’ll have.

Contribute regularly

Don’t count on extra money that’s left over after paying your monthly bills. If you do that you’ll never have money to save for retirement because there’s always money to be spent somewhere else. If you truly want to start building up your retirement savings then you need to contribute regularly by adding the contributions into your monthly budget and expenses.

Log into your online banking and set up automatic transfers (that you can comfortably afford) from your checking to your savings account. This ensures you’ll continue saving each and every month.

Add in lump sums

Taking your year-end bonus or tax refunding and spending it on home renovations or a nice vacation are wonderful ideas, but they don’t help grow your retirement savings. It’s a much better idea to put your windfall into your retirement account. Just remember that every dollar saved is a dollar spent towards a happier retirement.

Take advantage of your employer

Before putting your own hard earned money aside, check with your employer to see if they offer a retirement savings program. Very often employers will offer a 401(k) plan for employees where they contribute a percentage on your behalf in addition to your own personal contributions. It’s like getting free money for your retirement so if it’s available you definitely want to take advantage of it.

July 12, 2016
How to Make Money From a Side Hustle

Who loves money? I think we all do, that’s why we’re here learning how to pay off debt, live within a budget and make money from a side hustle. Starting a business is exciting, it’s also a lot of work. When you’re first starting out and working as a one-man-show it’s difficult to find a balance between serving clients, delivering work, finding the price to book the jobs and looking for new clients.

All of those things are important, but if we’re going to set priorities the number one focus should be how to make money from a side hustle. It doesn’t matter how great your customer service and work are if you don’t have clients to serve. Right?

The one thing I’ve learned from running my own business (remember I just transformed my long time freelance gig into a legit business) is that no one is ringing your doorbell with a high paying job laid out on a silver platter. That. Doesn’t. Happen. If you want to get paid then you need to work for it. If you want to make money from a side hustle then you have to…hustle.

Here are four ways to make money from a side hustle with new clients:

Put in the work on social media

Don’t get me wrong, potential clients do proactively contact me via social media or through the Well Said Content website, but it’s not a stroke of luck. They found the business through a Google search thanks to the frequent blog posts or they saw something posted on LinkedIn and clicked through to learn more about my services.

Being active online helps you rank higher in searches then those who aren’t, so if you want new clients to find you get on social media and start sharing.

Don’t be afraid to make the first move

It’s not creepy to reach out to people online…not anymore thanks to social media and websites. We’re not talking about an AOL chat room (remember those?), we’re talking about social networks where people are there to meet new people. Send requests to connect with everyone and anyone who can be a source of referrals for your business or potential clients.

You can find business anywhere

Always be on the lookout for new business because you never know where it can come from. Think back to all the people you’ve met in the last two months at the pharmacy, at a sporting event, at a networking event, in the grocery store. Absolutely anywhere.

Depending on the type of side hustle you have anyone can be a client and therefore you can make money anywhere. Keep your eyes and ears open. I have no shame looking up local financial advisors and real estate agents on LinkedIn, Instagram or Twitter, checking out their websites and reaching out to offer my services. That’s just how I do.

Give yourself a goal

People get tens, maybe hundreds, of emails a day. You want to be one of those emails or LinkedIn messages. If you truly want to grow your business you need to give yourself a goal. They say that what gets measured gets done. So get it done.

I pitch to five new business prospects every week, this doesn’t include the follow ups from the week before. If you want new business you need to ask for it. Being proactive ensures you make money from a side hustle.

June 28, 2016
How I Tripled My Side Hustle Income

A 9 to 5 job is great, a lot of people are lucky to have them. However the truth is sometimes having a full time job just isn’t enough to support the lifestyle you want to live. Sometimes you need a side hustle.

I started freelancing and made $4,000 my first year which was a nice chunk of change to have. Money is addicting, that may sound shallow but it’s true. As I saw how much money was out there to be made I wanted more. In 2013 I made $11,000 and in 2014 I earned $14,000 from my side hustle. Then I decided to take my part time job to the next level and in 2015 I earned $28,000 from freelance writing and social media consulting. This year I took it one step further and created a legitimate business from my side hustle, I stopped calling myself a freelance writer and gave myself a new title…Owner of Well Said Content.

If you want to grow your side hustle into a small business here’s how to do it:

Put in the work

Everyone thinks that being self employed is glamorous, but it’s also a lot of work. The freedom to work from where ever you want takes time to get to that level, when you start out it’s late nights and in my case a lot of tears. I never say no to clients, even now, and it has made me a trusted source for well read (or should I say said – do you see what I did there) content.

I can almost bet money that if you talk to any entrepreneur (just ask Sandy @yesiamcheap) they’ll tell you that it takes months, maybe even a year before they make real money. However if you put in the work the rewards can be very

Network whenever you can

As a freelancer gaining experience is your key to a successful side hustle. The more clients you gain the bigger portfolio you can build and that gives you credibility. Word of mouth is golden in business because a referral is almost guaranteed to be a client. The downside is not a lot of existing clients (even the happy ones) think to mention your work to their friends.

Networking is such a big part of growing a business. Tell everyone what you do, share it on social media, contribute to groups on LinkedIn, put business cards on car windshields (which I’ve done and got two clients from), stand on a street corner and hand out flyers and make t-shirts or bags with your brand. Stefanie O’Connell does this and she’s known as The Broke and Beautiful Life girl everywhere she goes – well that and a millennial money expert.

Ask for the jobs

Whether it’s a full time gig or side hustle the early stages of running your own business is the career equivalent of a little puppy with big paws trying to run around. It’s a hot mess. Referrals are great, but I hate relying on anyone and I don’t think true entrepreneurs do. I’m more of a take-matters-into-my-own-hands kind of girl and I ask for jobs.

That’s right I pitch companies and small business owners to get the work. I target financial advisors, real estate agents and fin-tech companies who have websites and may be off to a good start, but aren’t consistently updating their content, don’t share often on social media and don’t have an active blog. This is my current model because it’s a lot easier to step in and be the savior as oppose to trying to convince someone that content is a necessity to grow their business.

Eventually with my own business blog, social media activity (specifically posts, sharing and targeted ads on LinkedIn) and ever-growing portfolio of clients I’m hoping that I will become the go to girl for all money related content.

I’ll keep you posted.

If this post has lit a spark in your entrepreneurial spirit come back on Tuesday June 28 for part two where we’ll talk about how to reach out to clients to offer your services and get the business.

June 14, 2016
Are Employee Benefits a Deal Breaker For Your New Job?

Starting a new job or getting a promotion is very exciting. It means you’re moving up the career ladder and hopefully getting one step closer to landing your dream job. So often people only negotiate their salary when starting a new job, but your total employee benefits package includes so much more than just money.

Employers want to retain the best talent and now with the YOLO mentality of millennials they know potential employees are looking at more than just their paycheck. Your total employee benefits package includes other monetary factors such as a 401k plan for retirement savings, health, dental and vision insurance as well as paid time off. It can also include other benefits such as a gym membership, company paid cell phone and public transit pass.

Not to brag, but I know a thing or two about starting a new job. Since the market crash in 2008 I’ve had three promotions because the need for content has taken over the internet in the financial services industry. The fact that I’m also a Certified Financial Planner gives me a leg up on other candidates – or at least I think so.

If you are looking for a new job, ask yourself what would make you choose one offer over another. Is it the workplace culture? Maybe. Is it the flexibility to work from home? That helps. Or is it the total value of your employee benefits including base salary, bonus and other perks? Yes, that’s probably it.

Are you taking advantage of all your employee benefits?

Employer matching 401k plan

You may love your job, but let’s be honest, we all want to retire someday. Maybe not today, maybe not until 30 years from now, but eventually that day will come for all of us. As a CFP I can tell you that retirement isn’t magic. It takes planning and savings. Hopefully your employer will help you do it.

Ask your employer about a retirement savings plan. Very often employers offer a matching contribution plan i.e. for every $1 you contribute your employer contributes $0.50 or even $1. These contributions are usually deducted from your paycheck before it’s deposited into your bank account and therefore you won’t miss the money.

Getting a matching contribution from your employer is free money in your pocket, you’d be crazy not to take advantage of it.

Health, dental, vision and life insurance

Life is expensive. When you add in the cost of doctor’s visits, trips to the dentist, monthly prescriptions and the cost of prescription eye glasses annual medical expenses can quickly add up. Employer sponsored health care plans can help cover some or all of these expenses.

Group insurance rates are cheaper than if you were going to buy coverage on your own from a third party, so it’s a good idea to take advantage of a health care plan if it’s offered says personal financial planning service LearnVest. Not all employers offer health insurance coverage so if you’re one of the lucky ones then your only question should be “where do I sign?”

Vacation time

Money is important, but it’s not everything. Paid time off can be more important. If an employer is not willing to negotiate the salary you want ask for the equivalent in vacation time.

Sometimes it’s worth it to take an extra week or two of vacation instead of more cash in your pocket (especially after tax). Besides there’s no point in making big bucks if you don’t have the time off to spend it.

May 24, 2016
How to Start a Side Hustle

Do you want more money in your pocket? Be honest. The answer is probably yes, because who doesn’t want to make more money. I think the better question is, are you willing to work for it? As far as I can see it there are two ways to earn more money in life: 1. ask for a raise at your day job or 2. start a side hustle.

Since the first one most likely won’t happen unless you get a promotion (no hard feelings, can you tell), I say take matters into your own hands. I’m not really a wait around and hope it happens kind of lady. I’ve had two jobs since I was 16 and now that I’m 35 my work ethic hasn’t changed, my side hustle has, but not my work. Although in full disclosure I have to tell you that I do need to nap more than I did in my teens and 20s, however I still work hard.

If you want to increase your bottom line – for whatever reason – here’s how to start a side hustle:

Do something you love

There’s no point in taking on extra work if you’re not going to like it, that just doesn’t make sense. If you’re going to start a side hustle you might as well enjoy yourself. Sandy started selling creative mugs on Amazon and if you’ve watched her webinar you know that her side hustle is pretty lucrative. That all started with an idea and flourished with passion.

Find something that will save you money

My very first side hustle was working in a lingerie store up here in Montreal, my real part time job was working in a candle store. I was a teenager and it wasn’t a skanky back room kind of store, I was 17 and had to go to work in a black suit – it was a pretty sweet deal. It’s called La Senza and now it’s actually owned by Victoria’s Secret.

Side note: Did I ever mention that I’m Canadian? And NO I don’t know Drake.

It was a great side hustle because not only did I earn extra money to help pay for things (my parents were divorcing) but I got a discount on pajamas, lounge clothes and under garments. When Victoria’s Secret took over I started getting discounts there too and at Bath & Body Works. Those are all everyday items that I could purchase at a discount – big money saver.

My Dad (who’s retired) is thinking of getting a part time job at this cable provider so he can get all of his services at a discount.

Talk about yourself…all the time

No one will know what you do or even that you exist until you tell them – so scream it from the roof tops. You may remember that I landed my very first freelance writing gig from responding to a Craigslist ad. They didn’t come looking for me, I was proactive.

Nowadays there are so many ways to get a job – full time or on the side. Social media is a great way to showcase your services and I’m not just saying that because I work as a Social Media Consultant. I know a sound engineer who joined Instagram in December and now has over 5000 followers because he started posting behind the scenes videos of his creations.

One of my friends who is a graphic designer started trolling LinkedIn for jobs and reached out to the recruiter telling them that he would do a better job at a lower price. Now his side hustle is his full time job.

The bottom line is if you want to make money you have to work for it, but if you’re doing something you love is it really work?

May 10, 2016
How to Get Your First Client – And Keep Them Happy

Sandy and I talk a lot about being small business owners and making money on our own terms. Having your own business is great, but trust me when I say it’s not all glitz and glamour – not at the beginning anyways. It takes time to establish your reputation as the go-to-person, build trust so clients keep on coming back and it’s a lot of hard work to get your first client.

One of the most common questions aspiring small business owners ask is “How did you get started?” The answer is not always simple. Depending on what type of business you run your client acquisition strategy will be different.

I run a part time content and social media consulting service for small business owners, mostly in the personal finance niche. In the spirit of full disclosure I should also mention that in addition to my side hustle I also have a full time day job with an international insurance and investment firm.

How to get your first client

I got my first client by responding to ad on Craigslist, but that was back in 2009. Nowadays I find new clients in a variety of ways including referrals from existing clients. That’s the great thing about working in a niche – everyone talks to each other.

I also look for new clients at conferences and expo events. Attending conferences is a great way to enhance your skills and network with colleagues, but it’s also a fantastic way to discover new brands and potentially new clients. I just attended a local food and wine expo with my mom. While we were sipping and tasting I chatted with a few exhibitors about working together. When you have your own business, new clients can be anywhere.

The number one way to keep clients happy

Never say NO. I don’t care if someone gives you a three hour deadline or you have to work through all hours of the night, the second you say no to a client you stop being their number one person and that’s bad for your business.

I have done some pretty unconventional things throughout my career including driving my client’s trophy wife to New York City from Montreal, but I did it and I’ve reaped the rewards of that relationship ever since. Being your own boss isn’t always champagne and caviar, sometimes it’s sweatpants in your living room and a road trip to a foreign country, but at least it’s on your own terms. I like the feeling of working for a purpose and right now my sole purpose is to grow my business to be as big as it can be. (that’s cheesy I know)

Good communication keeps clients coming back

There is nothing worse than a surprise when it comes to daily business operations and especially when it comes to money. I still have one of my very first clients today that I had nine years ago – yes from the Craigslist ad. The scope of work has changed, but the relationship is still going strong. I truly believe this is because of my (sometimes brutal) honesty and open communication.

I wouldn’t like it if one of my vendors surprised me with a change, so I try not to do it to others. Of course prices can go up and services change, but if you give clients advance notice instead of surprise them I find they appreciate the relationship much more.

Do you have your own business?

Share with us…you may even get some new clients out of it.

April 26, 2016
Why I’m Not Mad My Investments Dropped

It’s time to get real and talk about our cash. Raise your hand if your investments dropped and you’ve lost money in your portfolio over the last few years. My hand is up, yes it happens to the best of us. It’s nothing to be ashamed of, if anything I’m proud of the way I reacted.

HELLO my name it Tahnya Kristina, I am a Certified Financial Planner and my investments dropped in value. But you know what? I’m not mad at them. I should be, but I’m not.

Yes they lost money, yes they didn’t do as I asked and yes they are changing every single day. If my investment portfolio was a man we would have broken up a long time ago. However all the rules go out the window when it comes to money and saving.

These are all the reasons why I’m not mad that my investments dropped and why I’m not selling them:

It’s only a paper loss right now

The worst thing you can do when you check your account balance online or get a paper statement in the mail is overreact and sell your investments. When you look at the value it’s only a paper loss, a numerical value on a piece of paper or computer screen.

Only when you sell those investments do you actually take the physical monetary loss. My advice is to sit tight and remember the market works in cycles. If you don’t like seeing the value of your investments go down then don’t look at them, but selling is not the answer.

I’m saving for the long term

The way to make money in the stock market is to buy low and sell high. If you sell after the market drops you are taking a loss and that’s not good. Before you decide to sell your investments ask yourself, why am I doing it? If you’re selling because the value dropped that’s the wrong answer.

My investment portfolio is for retirement and since I’m only 35 years old I don’t need the money – not anytime soon. When I see the value of my investments decline I just keep telling myself “Don’t worry it’s only temporary. Don’t worry you don’t need the money for a long time.”

Market fluctuations are normal

If you’re saving for the long term you don’t need the money right now. It’s normal for the market to fluctuate, that’s just a part of investing. Trying to buy in at the exact lowest point of the year and selling on the highest day is not a strategy that’s ever worked.

Just invest in a well balanced portfolio that you’re comfortable with and leave it at that. Be conscious that the higher risk you take the more the value will fluctuate, if you’re not comfortable with the ups and downs then maybe you need to invest in something that’s a little more stable.

If you need a little bit of help deciding which investments are right for you Sandy and I offer individual money coaching sessions. Sometimes getting a second opinion is the best way to decide what’s right.

April 12, 2016
How to Balance Your Life When Working at Home

If you have a side hustle or one of those cool jobs that doesn’t require you to be in the office you may have the benefit of working at home. I thankfully get to work from home with my 9 to 5 job and I also work from home after 5 pm with my side hustle – I’m a digital marketing consultant for start-ups (more about that another day).

When I tell people that I work from home their first reaction is always, “how do you do it?” I think working at home gets a bad reputation because people think it’s code for slacking off (and I used to be one of them), but that’s just not true.

I am much more productive when I work from home because I’m comfortable and in my own element as oppose to being uncomfortable in work clothes at the office. The key to being successful when working at home is to learn how to separate your work from your home. Here’s how you can do it:

Set time limits

You’re being paid the same amount of money when working from home so be sure to stop working at the cut off time and start enjoying your personal time. It’s also important to make sure you take a lunch break and get up to walk around and stretch your legs. Working at home can get really tiring really fast if you don’t set time limits to enjoy your personal life.

Remember your spouse

Sometimes my spouse works from home too and when we’re both here it’s important to remember that you aren’t alone. Our home offices are in different parts of our home so we meet in the middle a.k.a. the kitchen for lunch. It’s nice to have a little break with your sweetheart in the middle of the day – I don’t get to do that at the office.

Don’t forget why you’re there

It’s very easy to get side tracked when working at home. I always want to do laundry or clean the bathroom when I’m at home, but I always need to remember that I’m there to work. When I work from home I stick to my schedule.

My alarm goes off, I take a shower, get dressed and go to work, it just so happens that my desk is in my bedroom. My day looks the exact same if I’m in the office or at home except that I save 60 minutes commuting to and from work. That is extra time I get back in my life to spend with my spouse, go to a yoga class or take a nap – it’s usually a nap.

Drink lots of water

It’s very easy to get caught up in your work and forget to drink water, especially if you’re not meeting up with co-workers at the water cooler. I make a point to get to the fridge and continue to drink four to five glasses of water per day. Dehydration can stall creativity and cause headaches, I’m sure no one wants that.

Stay active

One of the major benefits of working at home is we can get in a workout on our lunch hour. I know a lot of men workout at lunch, but it’s not so easy for women. We have makeup to reapply and hair to get done so lunchtime workouts can go well over an hour. However when I’m at home it’s easy to get in a good workout because I put back on my yoga pants and leave my hair wet.

March 29, 2016
4 Ways for Entrepreneurs to Spend Your Tax Refund

It’s tax time people. That means all around the country people are lining up to send the nitty-gritty details of their personal and financial lives to the government in hopes of getting a tax refund. If you’re an entrepreneur tax time probably means your collecting piles and piles of papers, receipts and invoices to bring to your accountant – at least that’s how I do it.

I know I should have a better day to day bookkeeping system, but this is just my reality right now – despite being a self employed freelancer since 2009. As the IRS as my witness this year I promise to change. OK I take that back. I promise to make a solid effort to think about upgrading my accounting system.

If you’re one of the lucky Americans getting money back this year let me ask you a question, how are you going to spend your tax refund? My clients (I’m a Financial Planner) usually tell me they’re going to use it to take a vacation or start/finish renovations on their home. Some of my more disciplined clients tell me they are going to pay off debt. That’s always nice to hear.

All of those lovely ides probably change if your an entrepreneur. Budgeting on an irregular income can be tough and having a nice unexpected lump sum of cash opens a whole bunch of doors to better yourself and your business.

To all my fellow entrepreneurs out there, how are you going to spend your tax refund this year?

Invest in yourself

The average tax refund in America is between $2,100 and $2,500 according to Governing.com. Montana has the lowest average at $1822 and Nevada has the highest with the average at $2,749.

I think we can all agree that an extra 2k in our pockets is a nice chunk of change and it can be used to enhance your skills. If you’ve been meaning to learn something new, go back to school or take a course now’s the time to do it.

Put it into your business

Maybe you can spend your tax refund on improving your business – such as investing in a new accounting system (cough, cough taking my own advice). I’m a huge fan of the ABC TV Show Shark Tank, if we’re Twitter friends you already know this. When Mark Cuban fights for a company he always tells the entrepreneur that he will take over the website and enhance it on the back end to help increase traffic and drive sales.

I don’t even know what that means, but I would like to learn – or at least hire someone to do it for me. I don’t think $2k can buy the services of Mark Cuban, but improvements of any kind can never hurt.

Expand your service offering

If you want to expand your business you can also use the money to start a new product line or enhance your service offering as well as buy online ads to promote your services. Not too long ago my girl Sandy (yes Sandy of Yes I am Cheap) took a little cash and turned into a booming $25,000 Amazon business. You can learn all about how she did it right here. Just look to the left and click the image. Right there —>>>

Save it for a rainy day

When it comes to being self employed you just never know what the world is going to throw at you. Having a security blanket in the form of easy accessible cash (in a high interest savings account) is a good idea. Cash savings can also be used to make tax payments if you get audited and end up owing money to the IRS or in case you owe next year.

March 17, 2016
First Impressions Are Dangerous: Compare Car Insurance Wisely

As costs continue to rise and inflation affects the global economy, even the necessities are costing people a lot of money. This includes car insurance. The good news is that as a consumer, you have the right and the ability to shop around to compare car insurance quotes. But take heed, just because you might be saving some cash, doesn’t mean you’re getting a policy that will protect you after an accident.

Insurance Forms May Be Different

Not all insurance policies are created equal. Every policy is written on a basic, personalized auto insurance form serving as a legal document. And while many of the basic forms could be similar, if not even the same generic form, it’s extremely important to remember that some companies write their own forms or use specific jargon to differentiate between coverage types.

At the end of the day, an insurance form is nothing more than a contract, so when you’re comparing contracts between two different insurance agencies, be sure that the two are actually comparable.

Size of the Company and Long Term Feasibility

An insurance company with a nationally known brand isn’t paying money for television ad after television ad without some financial weight to them. If a company has money to spend on advertising, then it probably means they have the financial strength to retain a number of clients and continue to stay in business for years to come.

Do you really want to have an insurance contract with an organization that’s financially unstable? Can you trust a potential claim payment for medical bills over a several year period from a company that can’t even stay above water? Understanding your insurance company is important because you want to know that it’s financially responsible and conducts good business.

Claims Handling and Payment

Claims and claims handling is the only reason that insurance is even an industry. People generally hope they won’t have to file a claim, but it happens. Claims are made every day; you just might not notice it because you don’t work in the insurance industry.

Every time there’s an accident, fire, visit to the doctor or a broken wind shield, someone is submitting an insurance claim. And, if the entire field is based upon the adjustment and the servicing of claims, you need to be sure that you can trust your company to be there for you when you need them.

Will you have a claims adjuster that will communicate with you on exactly what will happen after the claim has been filed, or will they ignore your phone calls? Will your adjuster approve all the costs of fixing your vehicle, or will they try to nickel and dime you out of the standard repairs? If you’re paying monthly insurance premiums, doesn’t it make sense that your insurance agency would make your claims experience fast and easy?

Direct or Agent Related

Finally, you want to have a good understanding of the working relationship between you and your insurance agent. If your insurance is written through an agent, are they able to present you with multiple quotes or discounts, and will they help you through the annual renewal process?

Or, will your agent want to renew your insurance with increased rates in the hopes of collecting a bigger commission check? Do you need the extra help of an agent, or can you go directly through the market with sites like CoverHound to compare car insurance packages?

Just understand the basic makeup of a given organization can be huge. While you think you are getting the same exact car insurance quote by switching from one insurance provider to another, you could actually be gaining (or giving up) a significant amount of coverage for a small change in price.

Sometimes it makes sense to pay a few dollars more for service, and sometimes you don’t need to have all of the bells and whistles. All that really matters, is that you understand what you are (and are not) getting when it comes to your car insurance quote.

March 10, 2016
Tips on How to Downsize Your Home

Do you want to downsize your home? You may be at the point in life when you want to move to a more intimate space, but the question is how to do it. The more space you have to fill; the more items you’ll have packed into your home. If you have children, their belongings can take up a lot of space too. Downsizing is more than moving to a smaller home, it also includes controlling the amount of “stuff” inside your home.

One Room at a Time

Start the downsizing process by working through one room at a time. The most cluttered space should be tackled first. Each room following that should become easier. Items that are broken, non-working or stained should automatically enter the no pile. In each room you will create small piles by category. Go through each pile and definitively decide either yes or no for the items. Do not create a maybe pile as that leaves room for indecision.

Examine Collections

Look over what collections you have. Look for broken items, chipped pieces or items that no longer work. If the collection has lost value, consider donating it or passing it on to a friend or family member. Collections that are intact, but no longer of importance can be sold. Collections that are not actively enjoyed just take up needed space. It likely means that you have lost interest and have moved onto another theme.

Consider a Sale

Once you have finished going through each room of the home, look at the no piles, decide what still has value. Those items can be placed together to hold a yard sale. When your finances are not where you would like them to be, the sale can help generate income to assist with a move to a smaller home or for a renovation project inside your existing home.

Move to a Smaller Home

As the children reach adulthood, you may realize that the space you once required is no longer needed. A smaller home is much easier to manage. Create a budget for the new home along with a must haves list to ensure that you find the right home. To make the transition a little easier consider getting

Downsizing your home to a small space may be a town house.

movers quotes. These services often pack the trucks and help unload at the new location. This takes a lot of stress off of the move itself and allows you time to work on getting utilities and services setup for the new location.

Decide what is Absolutely Necessary

Once you have found your new, smaller home, consider what items are absolutely necessary. Think about measuring the size of your existing furniture and compare it to the space available in your new, smaller home. Some pieces may need to be sold in order to purchase items that better fit the space of the new home. It also helps to take some time to decide what you absolutely will use, what is really needed and exactly what there is room for.

Closing Thoughts

Downsizing can be stressful. Collecting things over a period of years often leads to finding forgotten items. Determination to live in a smaller space with fewer belongings helps the process go a bit smoother. Smart storage and organization will help the new, smaller home feel spacious.

March 3, 2016
Are people who say they’re debt free lying?

I think the answer is yes. We may not all have a ton of credit card debt – which you may remember I did – but in some form or another we all have debt, don’t we? It seems like everywhere we turn someone is preaching about living debt free and every time I hear it I can’t help but wonder if they honestly and truly don’t have any debt.

As a financial planner every single day I see people who have a lot of debt, some more than they can afford, and I can’t help but ask myself why? I guess I know why because not too long ago I was sitting in a bankruptcy office weighing my options for $50k of debt.

At that time my one and only goal in life was to become debt free and I would have done anything – short of robbing a bank – to get there. I didn’t really care about having debt I just didn’t want to have something hanging over my head and I didn’t like giving my paycheck to someone else. It was honestly a control thing.

Now that I survived my debt I can tell you that I no longer have debt, but I’m not debt free. Just think about that for a minute and now let me ask you a question, are you really debt free?

If you said yes I think you’re lying.

We all have debt, yes you do too

Debt isn’t a bad thing. In fact having money on loan to you a.k.a. being indebted to someone helps build your credit score as long as you make payments on time and don’t let balances linger too long. If you have a mortgage you’re in debt. If you have a car loan or lease then you’re in debt too.

I think it’s O.K. to be in debt for a reason such as buying a home or paying for an education. I don’t think it’s O.K. to get into debt for non tangible or materialistic reasons such as taking a vacation or buying a new wardrobe.

Why living debt free is a myth

There are very few people in the world who truly live debt free, meaning they pay for everything with cash. Think about your purchases last week, did you pay for something with your credit card. Anything at all from your morning Starbucks to your weekly groceries. Did you swipe your card to earn travel rewards or cash back? I bet the answer is yes.

Using credit cards to accumulate perks is a great reason to be in debt, even if it’s only temporary and you intend to pay off your balance in full at the end of every month; for at small amount of time you are in debt. That’s why being debt free is a total myth.

Why you shouldn’t be ashamed

Don’t hate on your debt. I didn’t – and I don’t. Having a credit card and using it wisely makes me feel like the financial-powers-at-be have given me a second chance to turn my life around. Mind you, my habits have significantly changed over the years, but I still use credit cards and I still (sometimes) carry a balance. The key to success is not to let balances stay longer than three months. That’s a reasonable amount of time to pay off affordable debt – but only if you spend within a limit.

So let me ask you again, do you have debt?

February 24, 2016