Tag: How to budget

Debt Sucks: Here’s How To Pay Off Thousands In Debt

August 23, 2022 / Frank Nez

Whether you’re in debt with credit cards, student loans, car notes, or house loans, we all have some form of debt.

The thought of paying off your debt might seem stressful at first but imagine what a debt free life could mean for you.

Debt keeps us from saving money, investing it, and reaching financial freedom.

So, what’s the best method to eliminate debt?

The Snowball Effect

There are a few proven methods to paying off debt. We favor the snowball effect method due to its quick momentum and effective results.

This is how it works

You start by paying down your smallest accounts first while making minimum payments on the rest of them.

The approach is to eliminate your smallest debt aggressively. Once you’ve paid off your smallest account, rollover that payment onto your next account.

By the time you’re paying off your third account, the amount equivalent to your monthly payments from the first two will have a drastic effect moving forward on your outstanding balances.

Avoid This Mistake To Stay Debt Free

Avoid Income Creep to stay debt free — Don’t spend more as you earn more

In order for the snowball effect to build momentum, you must be consistent and not divert from rolling over once your first debt has been eliminated.

Most people will fill in the space with something else once they’ve paid off their car or credit cards for example.

This spending habit pulls you back to a never-ending cycle.

Remember, once you’re debt free all that disposable income is yours to enjoy. Save it, grow it by investing, and enjoy it!

Don’t let income creep lifestyle keep you from reaching your financial goals.

This is how people making six figures a year can be in financial ruin just as much as anyone making five figures.

Read: How To Set Financial Goals: 10 Simple Steps!

Generate More Income To Tackle Debt

Everyone has very different financial situations or worlds.

Create a world where you’re earning a little bit more than what you were in order to apply this additional income towards your debt.

Check out “These Are The Best Side Hustles For Millennials in 2020” to read about the best side hustles that can earn you additional income this year to make it happen.

Continuously work towards earning more income to pay off your debt more aggressively.

The sooner you payoff one debt, the sooner you can move on to the next while eliminating accruing interest.

Create A Budget

Use a loan calculator for your student loans to understand and save better on bigger payments, as well as finding areas you can budget for, such as junk food, streaming services, and other non-essentials.

You’d be surprised at how much you can save a week by meal prepping instead of eating out daily.

Write down your expenses and see where you can cut back. This strategy will help you not only develop a winner habit but play an important role in your journey to a debt free life.

Mint is a great app that breaks down your expenses and allows you to have an overview on all your account balances.

It Takes Discipline

The fact that you’re here shows your willingness to make this incredible change in your life.

Financial freedom is an amazing experience we all deserve a chance to.

Realistically, only by taking the necessary actions to see our goals through will we truly reach a debt free life.

It’s time to live in the moment and focus on the things that truly matter to us the most.

Be consistent, stay on top of your goal, you have the power to do this.

Read: 10 Successful Ways To Save Money During A Recession

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5 Ways You Can Stretch Your Dollar for Holiday Gifts

December 5, 2021 / Frank Nez

The holiday season is here which means everyone is rushing to buy the perfect holiday gifts.

How do you stretch your dollar even during these challenging times?

Keep reading to find out.

Here are 5 ways you can make the most out of your money so you can give your loved ones that special gift they deserve.

Welcome to Franknez.com – this holiday season is all about giving. Subscribe to the blog if you want to see more content like this.

Let’s get started!

#1. Buy Bulk

HOLIDAY GIFTS BUY BULK — Holiday gift ideas

You can stretch your dollar this holiday season by buying things in bulk.

Usually when you buy bulk, the price of an item drops significantly.

Certain apparel shops allow you to buy shirts and other wearables for much lower prices in bulk.

If you can get a deal when you bundle, then it will allow you to give more product to one person or give to many people.

Online places such as Amazon and eBay sell items in bulk too.

Items range from sunglasses to headphones and earbuds, and winter apparel.

#2. Buy Wholesale

wholesale holiday gifts — Wholesale Holiday Gift Ideas

You can look for warehouses that will sell to you the type of product you’re looking for at wholesale cost.

Wholesale prices are usually slashed by half or more!

You can also buy wholesale goods online using Alibaba and other e-commerce websites.

You can get some of the nicest and usually most expensive jackets at a much more affordable cost when buying them wholesale.

If you work in an industry that allows you to have access to multiple vendors, take advantage of these deals for this year’s holiday gifts.

#3. Use Online Coupons

If you’re buying holiday gifts online this year, you can use internet explorer’s coupon extension.

This coupon extension browses for codes online to provide you with the best price for what you’re ordering online.

The extension should be a standard popup if you already have the internet browser.

Not only will it navigate through a variety of codes, but it will even provide you with a direct link to a competitor if they have better prices.

This tool is super effective because it scans for the lowest prices while you do your online shopping.

#4. Use Unused Gift Cards

Make the most out of your unused gift cards for this year’s holiday gifts.

You can use the gift cards you have sitting inside that drawer to stretch your dollar by discounting your purchases.

I personally wouldn’t re-gift a gift card but would rather use one for a gift.

This strategy comes in handy if you don’t use every gift card you’re gifted.

Using these during checkout is a great way to reduce your expenses.

Or you may even include one in a basket.

#5. DIY Gifts

These types of gifts are so much fun to give because they’re cost efficient and usually very creative.

DIY gifts can be gift baskets, bundles of convenience products (lotions, sprays, hand sanitizers, etc.), and candy creations.

You can always include a mini holiday card that you can buy in bulk for each DIY project.

They can be personalized depending on whom you’re giving them out to and are great for just about anyone on your list.

Gifting this year doesn’t have to be expensive, but it sure can be special.

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Read: Buy these stocks for your kids this holiday season

How To Create an Emergency Fund and Why It’s Important

June 15, 2021 / Frank Nez

Creating an emergency fund isn’t difficult so learning how to start shouldn’t be either. Here are 4 amazing strategies and tips to building your nest egg for a rainy day.

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

When an emergency occurs, you’ll be ready

We can’t predict the future, but we can sure prepare ourselves for it when a rainy day disrupts our parade. Having an emergency fund allows us to have a peace of mind and also creates financial confidence. As Grant Cardone says, assume control of all situations; so prepare now so you’ll be ready later.

#1. Create an Emergency Fund Goal

When you don’t know where to begin, start by creating an emergency fund goal first. Everyone’s goal will vary due to income and the amount of debt carried. A good minimum would be $1,000 – $2,000. An ideal and longer term amount would be $10,000+.

Did you know that more than 50% of Americans can’t afford an emergency bill of $500? There is something seriously wrong with this.

DO NOT be part of this statistic, create your emergency fund goal right now. Literally right now. Just set it, and work towards manifesting it. YOU CAN DO IT.

Before you begin to build your hefty nest, make sure you’re debt free first. Contributions will be so much easier this way. If you’re not debt free, set the goal for your small emergency fund and work on eliminating debt before you start paying yourself first.

#2. Pay Yourself First

When payday comes, be sure to pay yourself first (SAVE). We often tend to splurge and sometimes put away what’s left. You know exactly what I’m talking about.

Paying yourself first is the complete opposite; spend after you’ve put money away towards savings. Check your calendar and see what must go towards your expenses. Deduct it from your earnings and focus on saving the portion that will help you reach your goal.

Find which week works best for you out of the month to save. Once your expenses have been taken care of, pay yourself first, and enjoy what’s left. If most of your income covers your expenses be sure to check out my post on the 7 easy ways millennials can start earning more money to see how you can earn extra income.

Now that you have your target, you understand how much you must put into savings every month to meet your emergency fund goal. Do what you have to do in order to make this happen.

Here are some quick ways you can earn extra cash:

Recycle
Deliver food
Offer ridesharing services
Teach online with Fiverr

Make sure any additional cash is directed towards your money goals.

#3. Don’t Let Your Savings Collect Dust

This is where you take the first steps towards allowing your money to work for you. Put it in a high interest savings account.

Keep about a quarter of your savings in your personal savings account as liquid asset (money you can take out immediately). The more you put into your high interest savings account, the quicker you will reach your emergency fund goal through the amazing work of compound interest.

Here are some banks that pay you interest:

What about the stock market?

Invest in the stock market if a). you have no debt and b). you’ve built your hefty emergency fund worth 3-6 months of living expense.

Read: How To Invest in The Stock Market (Step by Step)

#4. Be Consistent

In other words, discipline yourself to save for your emergency fund.

Saving money might seem like a sacrifice at first but by being consistent you’re now creating a great habit and financially stable life. Your future self will thank you.

Remember the importance of having an emergency fund. The benefits of being prepared include:

Having money in case of car issues
To cover emergency hospital bills
Security in case of a layoff
Financial peace for your family

The best way to carry out your mission on building your emergency fund is to put money away every month no matter how good or bad it was.

Develop this winner habit and you’ll be meeting your goals in no time.

Keep yourself motivated

If you find yourself losing motivation remember why you started in the first place. Nothing good ever comes easy.

Look for motivational and inspirational accounts on Twitter or Instagram. I personally post motivational content from time to time on IG.

Don’t stop at nothing.

Here are some life changing accommodations to help you save money

Save Money And Change Your Life — These Tips Require Discipline & Action | Start Saving For Your Future Today

1 – Don’t get into further debt. Wait on that awesome new car model that just came out. Perhaps work in your field a little longer before furthering your education. Remember, the more debt you have the harder it is to save.

2 – Start a side hustle. Use that additional income to add to your emergency fund and reach your target quicker. Don’t stop increasing your income.

3 – Live below your mean. This strategy will allow you to build your net worth so that you don’t live paycheck to paycheck.

Let me know in the comments below

Have you reached your emergency fund goal?

The readers would love to hear from you. Share your thoughts below.

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Millennials & Financial Education | Invest in Your Future!

June 15, 2021 / Frank Nez

Millennials and financial education - Invest in your future - franknez.com

Financial education or financial literacy, is the education and understanding of multiple financial areas and topics related to managing personal finances, money, and investments.

So why are millennials so quick to avoid the topic of financial education, and why is it essential we empower ourselves with this knowledge no one is teaching us today?

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

The Discipline of Saving Money

Why save now when you can save later! I’ll do it when I make more money. Let me take care of Christmas first. The list goes on when it comes to reasons as to why we cannot save money.

The discipline of saving money at an early age in life will become the most rewarding thing you can give yourself in a time much different from where you are today. So why is it so difficult to save money? I mean we’re able to purchase the latest gadgets, splurge on streaming services, and constantly eat out after all.

Financial literacy teaches us that money is nothing more but a mere tool that opens possibilities and allows us to walk through life without the financial stress most of us can’t seem to stay clear of. I grew restless of living paycheck to paycheck. It was annoying, tiring, and overall an unnecessary stress that needed to be eliminated in order for me to focus on the things that truly mattered the most.

All it took was a shift in mindset and educating myself financially. And of course, the discipline to save money.

We tend to give the dollar a little too much value; we keep it close. One thing we must learn to do is to let go of the money, but not in the manner of spending it. It must be pooled into an account where you will consistently be depositing in order to ensure you begin building a safety net.

This will be useful in case of a sudden emergency (which will occur at some point), a shift in job/career, or for a large purchase such as property.

Investing Is Easier Than You Think

Investing - financial freedom — Learn the power of compound interest

A simple way to invest your hard earned money is by allowing your earnings to start working for you. Investing does not necessarily mean you have to invest in the stock market or real estate. One of the most simple ways to start your very first investment is by opening a high yielding savings account or money market account.

If you have a savings account it’s very likely your current bank is paying you 0.01% in interest a year. That’s a penny a year! They’re already investing your money so why not move your earnings to a high yielding savings account.

These bank accounts can pay up to 2.05% in interest per year. The amazing thing about these accounts is that the longer you continue to save, the more compound interest starts to reward you.

Compound interest is when interest is earned on the initial deposit, every deposit made, and on top of the interest already earned! Guys, I don’t think I’m the only one that wishes they’d known this sooner.

Rates will fluctuate from time to time but it beats leaving your money sitting in an account only to collect dust.

Read: Earn passive income with these 5 guaranteed strategies

The Path to Financial Freedom

Now that you’re consistently saving money, budgeting, and have made your very first investment, you’ve taken the initial steps towards reaching financial freedom.

Financial freedom requires self discipline, and a true desire for a financial stress-free life. By financially educating ourselves, we are able to navigate through our lives with one less thing to worry about so we can pursue and focus on the things we most value.

Take control of your life, teach this to everyone you want to see win, lets secure an amazing future, and be known as a financially educated generation.

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Tag: How to budget

Debt Sucks: Here’s How To Pay Off Thousands In Debt