When your budget is tight and you really need a little more wiggle room, cutting expenses is certainly one way to do that. Learning to be frugal with your meal planning and looking for ways to save money on your monthly expenses and insurance can go a long way to freeing up some room in your budget for more important things.

Take a good hard look at your budget? Do you actually need every line item, or are there some things that you can easily cut back on? For instance, do you need every single movie and sports channel your cable company offers? If you only watch a few channels, you may be able to make a significant cut to your budget by cancelling your cable service and signing up for a streaming service instead.

Do you need to be making a car payment or could you trade your car in for an older, used car that you can pay for in cash? Doing so would probably cut your car insurance as well.

It’s a good idea to give your budget a good review every six months or so and be sure that you still need everything you’ve included. Go through each line item to see where you can make some shifts. Cutting $20 from your cell phone or cable bill is $20 you can put towards savings. Reducing your grocery expenses by meal planning can give you even more money for your growing savings account.

But what if all your cut backs and frugal living aren’t quite enough to get you to where you want to be financially? You’ve cut everything you can, you’re no longer splurging on anything unnecessary, and you still don’t have enough to put aside in savings or investing.

It may be time to look at raising your income. There are a few options for increasing your income that you should consider.

For starters, are you overdue for a promotion and/or raise at work? What if you agreed to take on additional responsibilities; could you make more money?

Maybe your boss is telling you that you need to continue your education or get a certification to make more money. If so, talk to your employer about their willingness to contribute to those costs. Many employers see the benefit of having you continue your education because it often means you can bring more money into the company. Therefore, they’re usually willing to help out with the costs. Look at the continuing education benefits your company offers.

If you’ve determined that you can’t make any more money at your current job and/or you’re not able to find a better paying position, it’s time to look at other ways to increase your income like taking on a part-time job or starting your own part-time business.

If you decide to look for a part-time job, find one that you’ll enjoy being at because you’ll be spending a lot of your formerly free time there. You may also want to look at part-time home-based jobs like working a customer service call center or offering transcription services. There are a variety of companies looking to hire freelancers part-time and many pay very well.

Lastly, consider going out on your own with something you love. Get paid for your photography talents, write how-to books and self-publish on Amazon, start a blog and build your following so you can monetize it, work with a home-based party company to sell products through home parties, schedule social media posts for companies. There are so many options, you just need to find the right one for you.

When you need more money, you need to look at both sides of the equation, saving money and making money, in order to achieve the most success.

It used to be that when you wanted to learn something you had a to take a class on it or buy a book on it (or check out of your library), which made the barrier to knowledge high. With the rise of the internet, though, the access to information is plentiful. In fact, Google and other search engines allow you to ask the internet basically any question you’d like and you will almost always get an answer for it. The information is free and you can get it. You know the only problem with that? How do you know that the information is credible?




At the end of the day, it’s not enough to read one article and consider yourself an expert. We must constantly be learning and working to understand more. This is one of my favorite reasons to follow blogs. For subscribing- via email, an RSS feed reader, or or your method of choice- you get provided with information on a weekly basis (or more often?) that can help you continuously learn and grow.

Because I want to make it easy for you to do that too, here are a list of some of the best financial planning blogs.

1. USAA Financial Advice Blog. USAA is a financial services company that offers banking, investment planning, and insurance for military members, past and present, and their families. While much of their blog is geared toward military families, there are still many articles that are applicable to civilian families as well.
2. Dave Ramsey’s Blog. Dave Ramsey is a popular financial author and speaker who is famous for his “Debt Free Screams” on his radio show. A large portion of his blog is dedicated towards articles about getting out of debts and families who have done just that, but it also includes other posts like budgeting and saving money while shopping.
3. Oblivious Investor. Colorado CPA Mike Piper writes this blog about how to be a successful investor without overwhelming yourself with complicated knowledge.
4. VTX Capital. Instead of spending thousands of dollars on expensive brokerage fees, VTX Capital offers simple investing and financial coaching for beginners. If you’re not ready to invest in VTX Capital’s services (no pun intended), their blog has some great free advice.
5. The Reformed Broker. Unlike many financial planning blogs, Joshua M. Brown doesn’t give you financial advice or tell you what to invest in; instead, he offers his thoughts on market-related issues. Josh is an on-air contributor to CNBC’s Halftime Report, so his thoughts on the financial world are legitimate insights instead of just your crazy uncle’s rants (or is that just mine?)
6. Retirement Researcher. Retirement professor Wade D. Pfau, Ph.D., is an active researcher in retirement strategies, and his blog provides retirement information to both financial planners and do-it-yourselfers.
7. Nerd’s Eye View by Michael Kitces. Kitces offers thoroughly researched information on his blog that financial advisors and consumers alike can trust. His website offers Certified Fincial Planner Continuing Education credits for site members who read the articles published on Wednesdays.
8. DealBreaker. DealBreaker updates you on the latest market news, while also throwing in a dash of pop culture. One article I read referenced Leonardo DiCaprio!
9. CNA Finance. This website offers the latest news on the financial market, specifically information on stocks, written so that the everyday investor can understand the stock market.
10. Daily Worth. This blog offers money, career, business, and life advice geared specifically towards women.

For more help educating yourself check out these great articles

Your Grandparents & Their Money — What You Can Learn From Them
Financial Planning Basics: The Financial Pyramid
Become a Financial Expert Step-by-Step

Are there any you think I might have missed? Be sure to let me know in the comments!

Choosing a financial advisor can be one of the biggest decisions you’ll ever make. It’s important to choose one that is a good fit for you and your financial goals. You’ll want to interview several before making a decision about who you want to work with. And one of the most important things you need to know is whether or not they are a fiduciary. Most people though, don’t know to even ask this question of advisors they are interviewing. Here’s what you need to know . . .

The word fiduciary basically means “trust”, especially in a relationship between a trustee and a beneficiary. With a financial advisor, it means they are legally and ethically obligated to act in his or her clients’ best financial interest, even if it means less or no compensation for them.

In a survey of 200 independent financial advisors regarding their fiduciary standard, there were a few surprising results.

• 80% of the advisors surveyed consider themselves to be fiduciaries. But over 80% of those considering themselves to be fiduciaries disagreed with the statement “Fiduciary oversight is applied consistently to all my clients.” The key word being “consistently”.
• And 75% of those surveyed said that acting in their client’s best interest defines them as a fiduciary.

Most advisors though agree and understand that acting in their clients’ best interests is the definition of the fiduciary standard.

The fiduciary standard was established as part of the Investment Advisors Act of 1940. Advisors can be regulated by the SEC or state security regulators, but both require them to uphold the fiduciary standard, specifying that an advisor must place their client’s best interest above their own and that investment advice is given based on accurate and complete information.

It’s important to understand that a financial advisor who is a fiduciary is different than a stockbroker. The biggest difference is that stockbrokers don’t have to be held to the same fiduciary standards and they often offer investment advice that will benefit them as well, including forms of compensation and commission. Stockbrokers can market themselves by many different titles, including financial advisor, so it’s important to ask.

A few titles to know and understand are:

Investment Advisor – they follow the Investment Advisors Act of 1940, they are required to be certified and they are regulated. They are also held to a higher standard, including fiduciary duty. They use a number of titles including Investment Manager, Wealth Manager, and Portfolio Manager.

Stockbroker – they are subjected to lower legal standards, but they are licensed and they are also regulated by the SEC and state regulators. Most call themselves Financial Advisors or Wealth Managers and they usually work for large Wall Street brokerage firms.

Dual Registration – this title can be a little confusing and misleading because many financial advisors today serve as both Investment Advisors and Stockbrokers. Most people working for large brokerage firms fall under this category and which title they decide to work under depends on how much they want to make on any given day. The biggest issue for potential clients is that dual registrants are held to the lower legal standard of the stockbroker.

To be sure your hiring someone who has your best interest in mind, check their website for their disclosure information and ask important questions like:

• “Will you be serving as my fiduciary?”
• “Are you legally obligated to protect my best interests?”
• “Will my account be an advisory account or a brokerage account?”

Doing your homework before hiring an advisor will help you to make sure that your interests are protected.

Finding a financial advisor can be difficult, especially if you haven’t worked with one before and don’t know what to ask. Even if you already have an advisor, it’s always good to check in with them and make sure you understand what kind of service they’re providing.

When looking for a good advisor, it’s first important to make sure you know what you’re expectations are. Do you want someone to handle all of your investments, prepare your financial documents like wills, trusts, and even do your taxes, or do you just want someone to give you some advice and suggestions? Maybe your expectations are somewhere in between. Before you can hire the right person for your needs, you have to know what those needs are.

Now that you’ve done that, it’s time to start interviewing a few advisors and find someone who you feel that you can trust to handle your financial needs. Here are a few questions to ask potential advisors to make sure you’re getting the information you need.

What’s your background?

Look for a Certified Financial Planner (CFP), not brokers or insurance agents. You want to make sure the person you hire has the right qualifications to do the job.

How much experience do you have?

Are you looking for someone young who knows all the new information available and can handle your finances for years to come, or do you want someone older who has seen difficult economic situations and has the experience to navigate their way through them?

Do you accept fiduciary responsibility?

This may sound like a complicated legal term, but the bottom line is that it means they are making decisions based on what’s best for you not based on any bonuses or advantages they may receive. They should be willing to accept this responsibility through a written statement that they sign for you.

What services do you provide?

You’ll want to make sure you’re hiring someone who provides all the services you’re looking for. Do they offer retirement and estate planning? Insurance? Can they manage your investment accounts? Do they offer advice on planning that you can use to manage your own funds? Make sure you know what you’re hiring them to do.

How do you charge?

This is something you’ll definitely want to have a clear understanding of. Do they charge a fee for each individual service? Or do they charge a percentage of the funds they are investing? You may need to do some calculations on your own to determine which is better for you.

Do you offer different investments based on your clients risk factors?

You’ll need to have an understanding of your risk tolerance. For instance, if you’re young and won’t be retiring for more than 20 years, you may have a higher risk tolerance for your funds. If you’re older and close to retirement, you may not want to take as many risks with your finances. Different investments come with different risk tolerances so you’ll want to make sure you hire someone who can work with yours.

What kind of investments and planning do you recommend?

Different advisors will have different answers to this question. Make sure you work with someone whose answer matches your needs. Someone who recommends a variety is probably your best option. Look for things like real estate investments, bonds, index funds, and money markets. Someone who thinks about short-term investing as well as long-term investing is looking at the big picture of your financial future.

Lastly, get recommendations from friends and family of people they trust to work with and make sure whoever you hire is reviewing and evaluating your needs on a yearly basis as your financial situation will change over time.

Buying a new home is always an exciting time.  It’s a place to enjoy time with friends and family, a place where you’ll spend some quiet downtime, and maybe even a place where you’ll raise your kids.  But if you’re not careful, you can unexpectedly find yourself being “house poor”.  The term “house poor” refers to the many hidden costs associated with home ownership that many people don’t think about before purchasing.  Especially if this is your first time; you may not even be aware of these costs.  While your dream house may seem affordable, beware of unexpected expenses.

?

According to Zillow:

• The average home owner spends over $9,000 a year on maintenance expenses and other unplanned expenses
• Home owners insurance, property taxes, and utilities can average about $6,000 a year
• If you want to hire someone to help maintain your yard, clean carpets, or pressure wash your house, you can expect to pay about $3,000 a year for these services

If you haven’t added these items to your budget, you could find yourself in some financial trouble.  They account for as much as an extra $1500 a month to your budget!  That’s a lot of extra money.  And we haven’t even talked about furnishing your new home.  Those costs need to be added in as well.

But, don’t get stressed out just yet.  There are several things you can do to avoid finding yourself in house-related debt. When planning for a home purchase, keep these tips in mind:

Calculate all the costs.

Do your research to avoid becoming “house poor”.

There are several costs of homeownership that most people don’t consider. Be different!  Do your research and know the full picture.  While the mortgage payment may be well within your budget, you may be suddenly surprised at all the other expenses involved.

Research these extra expenses before signing a contract.

• If your new home uses propane for heat or cooking, this is an added utility bill that you may not have accounted for. Depending on the size of your home, propane usage for heat can average $2000 – $3000 per year.
• Not all homes have this service, but check to be sure.
• The average water bill varies depending on the number of people showering and how often you do laundry or run the dishwasher.  But expect to pay anywhere from $80 – $200 every quarter.
• The larger your home and the more things you keep plugged in and turned on during the day, the higher you can expect your bill to be.  Keep in mind that it will most likely be higher in the summer and winter if you run the air conditioning and heat.
• Depending on where you live, this may be rolled in to your county taxes but be sure to check.
• Property taxes. The cost of property taxes can vary depending on the area you live in. Most counties provide online tax records so do your research for the home you’re considering.
• Homeowners insurance. Your mortgage company will most likely require this, but it can be rolled into your mortgage payment. Keep in mind though; this will increase your monthly payment.
• Maintenance and repairs. Always have an emergency fund for anything unexpected.
• Home Warranty. This will help to cover any major repairs, but there is usually a service fee for each visit on top of the annual fee, which can run anywhere from $500-$1500 a year.
• Home owners association. If your community has a homeowner’s association, you’ll receive a quarterly bill for neighborhood upkeep.

Most prospective home owners can expect to be approved for a mortgage of around 30% to 35% of their salary before taxes.  But there are many other fees to consider.  Usually, your realtor or the sellers realtor can provide the average cost of these expenses for the home you’re considering so be sure to ask.

This is a guest post from Pauline of InvestmentZen.com

For as much you may think in the grand scheme of things, your little daily habits won’t make or break your retirement and savings plan, they might. Let’s have a look at how much bad habits can cost you over the long term.

You smoke (drink, eat too much junk food,…)

We all have a soft spot for something we like to indulge in once in a while. But if the habit is too frequent, it can cost a lost of money.

• At $6 a pack, smoking 10 cigarettes a day will cost you $1,095 a year.
• A $8 burger meal every week day instead of brown bagging leftovers costs $1,920 a year.
• $20 worth of drinks every Friday and Saturday cost $2,080 per year.

If you quit smoking, bring lunch to work and have one $5 drink on Friday and Saturday, you can save $4,575 per year!

You carry a balance on your credit card

Paying 18% interest on a $1,000 balance is costing you $180 per year. Oh, that’s “only” $15 per month? Yes, that is one meal you don’t get to share with your friends, or two months of Netflix, just because you are paying in arrears for stuff you have long used or eaten.

If you carry a balance, get a 0% balance transfer card, and what you used to pay in interest can be used to crush your balance instead.

You are lazy

Laziness can cost you a lot of money, because you overpay for convenience. Instead of staying on top of your bills, you forget to cancel that gym membership month after month. And the storage unit is full of things you will never use, but you keep paying for it. You rarely watch TV yet you have a $39.99 cable subscription.

You never challenge your utility bills once the new customer incentive is over. You may be paying hundreds of dollars more every year for the same service, because you didn’t call your provider to ask for a discount.

You get take out every night because you don’t want to cook at home. These habits are easier than you think to get rid of. Start by one little thing. Call the bank to stop the gym payments. Empty the storage unit. Tackling one thing at a time will help you gain momentum and save you a lot of money.

You don’t have a retirement account

Investing for your retirement is something you should start as soon as you enter the workforce. Yes, that sounds crazy, but it is much easier to plan for retirement over 40 years than over 15. Not having a retirement account means your cash is probably earning you nothing on a 1% savings account, instead of being invested in the markets. Opening a brokerage account is much easier than you think, and if you have a company match on your contributions, you should get started right now and stop passing out on the free money!!

Start by funding your 401k and Roth IRA, then if you have any more money, you can invest through a regular account.

You don’t plan ahead

YOLO and being in the moment is a ton of fun, but it makes me want to bang my head against the wall when I see my friends going on the same holiday I am, but it cost them twice as much. Why? They failed to plan ahead. I book my flights and accommodation months in advance to get the best deals when I go somewhere. If I go hiking, I carry snacks and water so I don’t have to pay extra for the convenience of a vending machine. When I pass by a cheap gas station, I fill my tank, so I don’t have to drive 10 miles when the empty tank warning lights up. I buy discounted winter clothes in the spring for the following winter.

Planning properly includes saving for big expenses (Christmas, car repairs,…) in advance so you don’t have to charge your card. Doing regular maintenance on your water heater, AC units, car and other appliances so they don’t break down. It includes having proper insurance so a health emergency doesn’t bankrupt your family.

Not planning means you’ll have to pay a lot more for the same products and services. All that money spent for nothing is money you don’t get to save for the future, and money you need to earn by sitting longer at your desk. How about forming better habits instead?