Posts Tagged ‘personal finance coach’

Budgeting get a 30% raise

January 17th, 2011
Various Federal Reserve Notes, c.1995. Only th...
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When I started using a budget I thought it was going to be a huge sacrifice.

Turns out it was like getting a 30% raise.  I have heard the same thing over and over again from my personal finance clients too.

I decided to look at why this is true.  What I found is that when we spend unconsciously we spend a lot of money and have no idea where it went.

When we have a written budget we are spending consciously and not wasting money on unconscious spending.

Thus it feels like getting a huge raise.

It’s been reported that that nearly 98% of companies surveyed in a recent compensation survey said they plan to give raises in 2011.

That’s the good news.  The bad news is that the average raise will amount to about $38 per paycheck if you make $50,000 per year.

The choice is yours; a 2.8% raise or a 30% raise.

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Personal Finance Advice: get off the credit card treadmill

January 17th, 2011
Johnson T7000 Treadmill @ TaiSPO 2006.
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The last thing that someone who is struggling financially needs is more debt.

And yet credit card offers to subprime borrowers are back. SmartMoney.com reports that credit card offers to borrowers with less than perfect credit are up 300% since June 2010.

These credit card offers carry an average interest rate of 20% and an average annual fee of $39.  You can stop credit card offers by following the advice of the FTC.

As a personal finance coach my advice is to get off the credit card treadmill.  Start using a debit card and cash.

There is nothing you can’t do with a debt card that you can do with a credit card…except get into debt.

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