Budget Archives - Page 3 of 11 - The Happy Homeowner

When You Assume, You Make an Ass Out of…..

Posted on February 27, 2013 by Jen

Chances are you’ve heard the adage, “When you assume, you make an “ass” out of “u” and “me.”

While this saying has many connotations, most have to do with personal interactions and communicating with other people.

But what about when it comes to our finances?

There are a myriad of reasons why you shouldn’t made assumptions when it comes to your money. There are also a lot of negative consequences that are a by-product of the following assumptions that can wreak absolute havoc on your ability to manage your finances well:

If you assume there will be a bail out for you….

There won’t be. In real life, there are no Wall Street bailouts , nor are there opportunities for the government to sweep in and wave its magic get-out-debt wand.

Sure there are exceptions to every rule and situation, but the truth of the matter is that YOU are responsible for the financial decisions you make in life, and YOU need to be the one cleaning up any messes from mistakes and mishaps. If you think that you can dig yourself into debt, stop paying your bills, disregard your retirement savings and continue along until someone comes along and fixes everything for you, you’re simply setting yourself up for disaster.

If you assume someone will rescue you….

They won’t. With the advent of shows like Mad Men gaining popularity, there have been two main reverberations felt throughout our society: First, the train of thought where the show is nothing more than the entertainment it’s designed to be and second, the train of thought that allows some to believe that the man will take care of everything when it comes to money and finances.

The problem with the latter is that it sets an expectation that women are inferior and shouldn’t be viewed as capable financial managers for their own lives. Of course if you’re married you should be communicating and making joint decisions, but you should definitely not be turning a blind eye to your family’s finances.

If you assume there will always be more time…

There won’t be. Don’t put off your retirement savings plan, don’t put off paying off your debt, and certainly don’t put off the habit of exercising sound financial management. Now is the time to take control of your financial destiny. By doing so, you’re setting yourself up for a lifetime of freedom rather than being a slave to money.

Usually I’m all about the positive message here on The Happy Homeowner, but I hope this dose of financial tough love might be the final, motivating push for you or someone you know who needs to start making changes ASAP.

What other assumptions are detrimental to your overall financial health?

Photo credit: Brett Jordan

Would You Ever NOT Pay Your Bills on Purpose?

Posted on February 25, 2013 by Jen

**Welcome FMF Readers!** Please vote for me in Game 16 of Free Money Finance’s March Madness Tournament (just leave the word “degree” in the comments, please)

I’ve been reading a lot about the looming student loan crisis lately. Apparently, Americans have more than 1 TRILLION dollars worth of outstanding student loans! Student loan debt now outranks credit card debt and auto loan debt for the average consumer and comes in second only to mortgage and rent payments.

With all of this debt and the abysmal state of our economy, it’s unfortunately not a surprise that people are beginning to default on their student loans. Worse, some people are simply deciding not to pay their student loan bills (as well as others such as credit card and personal loan payments).

Not Pay Your Bills….On Purpose?

After reading this, I began to wonder if there’s ever a time where I’d not pay my bills on purpose. Luckily, I’ve always had my head on straight when it comes to paying my bills on time. Sure, I’ve made some technical errors and scheduled payments for the wrong dates and I’ve had things get lost in the mail before, but I’ve always been able to have any late fee removed from my account(s) because I have a solid payment history.

This wouldn’t be the case had I skipped payments or missed them on purpose. After all, bad financial behavior is usually rewarded with negative consequence such as fees, credit score reductions and an inability to finance the things you want to buy at a low interest rate.

But what about if you find yourself in dire straits when it comes to your finances? What if you’ve experienced an accident or illness and have no savings or insurance? What if the reality is that you just have no money? Then what?

Not Being Able to Pay Your Bills

Most people who find themselves in this serious of a situation tend to throw in the towel and/or bury their heads in the sand. When things are so bad that you don’t know where the next dollar is coming from, it’s understandable that you’d want to deny the situation. When it comes to finances (as with most things), the problem with denial is that is just makes the situation worse!

If you truly cannot pay your bills, there are options out there. First and foremost, you have to realize that these are not good options in terms of their consequences and this is not a recipe for how to be a financial deadbeat–these are the choices you can make when in a desperate situation that can help you eventually dig yourself out of whatever mess you’re in—but only if you commit to working hard!

Realize Not All Debts are Created Equal

Do you have secured debt or unsecured debt? Perhaps both? Each of these types of debts need different approaches to dealing with them if you’re having a hard time paying your bills. Because secured debt is often tied to some type of collateral (your house, your car, etc), those are the bills you should try to pay first. For unsecured debts such as credit cards and medical payments, the lender/organization must first sue you before they can take any actions such as wage garnishment, etc. This essentially buys you more time to figure out your situation.

Again–note that this is a method to be employed during desperate situations only! When you begin to skip payments, your credit score will tank, the late fees will stack up and you’ll be facing a bigger hurdle to clear.

There is Relief

Debts such as mortgages and student loans may qualify for government assistance. If you can’t pay your bills, consider applying for a financial hardship or forbearance. While it’s not a permanent solution and you will still have to pay those loans back, the process can allow you time to get your financial house in order before the next payments are due.

Just remember that mortgage lenders can foreclose on you in as little as three months–ensure you’re doing your best to get back on track with payments ASAP!

Communication is Key

No matter what your situation, if you’re having a hard time keeping up with your bills, COMMUNICATE. Call your lenders, ask if there are any special programs, have them note on your account that your next bill will be a bit late. The more you communicate in an open, honest way, the better your chances of getting some help during this difficult time.

The Bottom Line

All of these options are temporary, short-term solutions to get yourself out of a bind–they are not part of a sound financial management plan. You can’t live and behave this way forever, so make sure you’re doing everything in your power to cut expenses, bring in more money and seek help where possible.

Would you ever not pay your bills on purpose?

Photo credit: xJason.Rogersx

Saving Money While Shopping…And a $500 Giveaway!

Posted on February 7, 2013 by Jen

As someone who has taken careful steps to change my bad financial habits of the past, I make sure to save as much money as possible when spending my hard-earned cash. As far as shopping is concerned, it’s still a bit of a sport to me; but for very different reasons…

I used to be the girl who would shop for sport in terms of making mindless purchases all in the name of having the latest gadgets or fashions. I used to shop when I was bored, with friends as a social outing, when I was stressed, etc, etc, etc.

Now, I’m the girl who makes a sport out of saving money while shopping. I still do shop, but I’m now purchasing necessities and/or items I’ve saved and budgeted for.

Ways I Save Money While Shopping:

Shop Sales & Clearance Racks

I’m not too proud to sift through clearance bins during the semi-annual sale, nor am I too concerned with labels to pass up a well-structured, no-name item that is marked down to pennies on the dollar. Where most may see trash, I’m usually able to find treasure–with a bit of creativity, I’ve been able to style some very cute, unique outfits that have cost me less than $5 for everything I’m wearing.

My biggest haul from a savings rack? Combined with some coupons as I’ll talk about below, I once purchased an entire wardrobe for $483. If I had paid original prices for everything I bought? My total would have been over $3,700!

Coupons

I love coupons, to an extent. You’ll never see me toting around a binder of neatly organized coupons through the grocery store, but you will see me using coupons in clever ways (speaking of grocery shopping, have you read my post about 19 easy changes you can make to cut your grocery bill?). For instance, I once piggy-backed expired coupons at Bed, Bath and Beyond to save an additional $17 off a $25 purchase. I still can’t figure out how that worked so well, but I’m not complaining about paying $8 for something that originally would have cost over $35 had it not been on sale as well!

To find my coupons, I usually look through the weekend circulars (when I have time; this happens maybe once every other month..haha!), read my junk mail (including emails!), and find mobile coupons to load onto my iPhone. I save all coupons I find because I’ve learned, more often than not if you’re polite in your request to a manager, they will usually honor expired coupons.

Staying Realistic

Shopping can still be a challenge for me because I can easily get caught up in the ‘buy, buy, buy’ mentality. Luckily, I’ve created some rules for myself that curb virtually all mindless spending and superfluous purchases.

First, I resolve to only buy what I need rather than what I want. To keep myself on the straight & narrow, I shop with a list and give myself a set amount of time during which I can shop. If the two hours is up, I’m headed home. This may sound extreme, but I’ve found that reducing the amount of time spent in a store is exactly what I need to do to help myself avoid impulse purchases (duh!).

Second, I remind myself of the lies we tell ourselves to rationalize spending. You’ve heard them before or perhaps have said them yourself: “I have no food”–when you’re standing in front of a packed refrigerator or “I have nothing to wear”–when you’re standing in front of your over-stuffed closet. Keeping these tendencies in mind is a great way to keep yourself focused on your goals while shopping or spending in general.

Top PF Blog

Before I get to the giveaway portion of this post, I want to take a minute to ask your help with voting for The Happy Homeowner. I’ve been nominated as one of the Top Personal Finance Blogs of 2012, and I’m thrilled! Please vote for me today–I’d be so happy if you did (just a few clicks; no entries, etc!).

$500 Giveaway

Last but not least, I’m excited to be part of another giveaway. Today’s giveaway is for a $500 PayPal cash prize! It is brought to you by Rather-Be-Shopping.com, helping consumers save money with online coupons since 2000.
a Rafflecopter giveaway
Photo credit: andrewarchy

Creative Valentine’s Day Gifts on a Budget….and a Giveaway!

Posted on February 4, 2013 by Jen

Cheap Valentines Day Gifts and Dates With Valentine’s Day just over a week away, I have some work to do in the gift-giving department. Being the budget-loving, money-saving gal I am, I will definitely be utilizing a hefty dose of creativity to ensure I don’t break the bank for my “favorite” Hallmark Holiday.

The thing is, I love giving gifts. Whether it’s for strangers during any rendition of my Operation Giving Back missions or holiday gifts for just about anyone on the list, I’m usually trying to figure out a way to stretch my gift dollars as far as possible. But I draw the line at giving something that’s completely thoughtless or bought last-minute just to buy something. More often than not, I find a way to give something meaningful that also fits in the budget.

Creative Valentine’s Day Gift Ideas that Can be Adapted to Fit Any Budget…

Edible Valentine’s Day Gifts

One of my favorite gift-giving categories is something edible. Whether it’s cooked or baked, I’ve always had a lot of fun creating something yummy for a neighbor or loved one. This year, I’ll be making homemade fortune cookies for my BF (I certainly hope he’s not reading this!!!), complete with personalized fortunes. If I have time, I’ll also make some homemade cupcakes and candy for a few of my friends and co-workers to enjoy. Check out for loads of fun, easy recipes–including the one I’ll be using for the fortune cookies!

Sentimental Valentine’s Day Gifts

Another favorite gift category of mine, no matter the occasion, is something sentimental. I won’t be divulging the details of this gift for BF just in case he’s reading this post, but I like to create gifts based on shared experiences, interests and/or dreams and goals. Some inexpensive ideas are scrapbooks, framed photos in DIYed frames and personalized magnets or other office/desk accessories. Also, never, ever underestimate the power of a hand-written card or note!

Inexpensive Valentine’s Day Date Ideas

The last category, dates, is a must-have for me because I’m all about giving the means for fun and memorable life experiences instead of material objects. After all, the memory of the experience you had while taking the photo lasts far beyond the dust accumulating on that frame. Some of my favorite, inexpensive Valentine’s Day date ideas include:

Star gazing. Depending on where you live and the weather that day, you might only need a blanket and a clear sky to create a memorable Valentine’s Day
Indoor picnics. This can also be done outdoors obviously, but if you’re like me and live somewhere that actually has winter weather in February, you can set up a cozy picnic area in your house. Combine this with your cooked or baked goodies, some bubbly and spend your V-day talking long into the wee hours of the night
Scavenger hunts. I haven’t personally done this before, but I’ve always wanted to set up a date that revolved entirely around a scavenger hunt. Seriously, how fun would that be?!

Giveaway Time–Enter to Win $100!

If you’re still shopping for Valentine’s Day gifts, don’t forget to check out coupon offers from sites such as CouponFollow.com. If you are going to buy something, you might as well try to save some money on your purchase!

Speaking of money, enter now for your chance to win $100….

a Rafflecopter giveaway

Will you be giving any Valentine’s Day gifts this year? If so, what are you planning to give and how will you save money doing so?

Photo credit: epSos.de

The Happy Homeowner

Living a Healthy, Balanced Life One Cent at a Time…

Category Archives: Budget