Tag Archives: saving money

How to Get Out Of Debt Fast When You Don’t Have Much Money

The post How to Get Out Of Debt Fast When You Don’t Have Much Money appeared first on Penny Pinchin' Mom.

How do you get out of debt when you are broke? After all, if you had the money,  you would not be in debt in the first place.  Right?

I hear this from people, just like you.  It is often not how much money you make, but the debt payoff plan you are using that is not working.  It is possible to get out of debt with no money; you just need to learn how.

get out of debt

There are plenty of inspiring stories of people sharing how they got out of debt, despite not making much money. In fact, you may feel you relate.  But yet, you don’t think you can do it. For whatever reason, you think you can’t get out of debt as they did.  It is impossible.

Or is it?

My husband and I were living on one income when we decided it was time to get out of debt.  It took us nearly 2 1/2 years but were able to pay off more than $37,000 in debt.  There are countless other stories of our readers who have paid off similar amounts in even less time.

I am here to tell you that you CAN (and should) get out of debt – no matter how little money you may make!!

 

HOW CAN YOU GET OUT OF DEBT WITH NO MONEY?

I am going to share the steps anyone can follow to learn how to get out of debt – no matter your income level.  If you struggle to make ends meet, you already know how to make the most of a dollar, and I’ll give you additional tips so that you can pay down that debt.

I have asked this on Facebook all of the time, and some of the comments include:

“There is no way I can do this. Not with my medical bills.”

“Sure, that only works or some people – not me.”

Many of you may be thinking similar things, and I completely understand that way of thinking. I was there myself and know that it seems like an unattainable goal.  That is why you are reading this right now – to find out how to make this dream a reality.

Debt is NOT a Good Thing.

If you are in debt, it could be because of your own decisions or even those you can’t control (such as health, job loss, etc.).  No matter how it happened, you need to get rid of it. Period.

The reason you need to eliminate your debt is that it genuinely is holding you back. How can you move forward financially with this obstacle standing in your way?  If you found that you needed to buy a new car, you would find a way, correct?  For most, that would probably mean an additional monthly payment – but you would do it because you needed to.  You need to look at debt the same way:

“Getting out of debt is not a desire – it is a need.”

MY STORY

I remember in 2009 when my husband and I thought there was no way we could get ever get out from under our debt.  It was an impossible dream. At that time, I was not working at that time, and so we had one income and two young children to feed.  I initially thought that there was no way at all that we could do this.  It was just not possible.

We started by looking at our finances (oh – they were awful).  Our goal was to live a great life.  We could have kept on and kept just getting by, but that was not how we wanted to live. Just “getting by” was no longer an option.

Knowing our kids would be watching us, we knew the importance of being a good role model for them.  We wanted them to learn how to handle money by following our example.

We both agreed that not having debt was pivotal in having a positive financial future. We wanted this not only for ourselves but also for our children as well. It was also essential for our marriage.  We needed to remove anything that could potentially cause stress – money, and finances being a big one.  Our relationship was good, but we knew we could even make it better.

To begin our journey, we read Dave Ramsey’s Total Money Makeover. We followed much of his advice but figured out some things that worked for us as well. Being debt free is a fantastic feeling that no one can describe.  You have to live it.

 

THE FIRST STEP TO GET OUT OF DEBT

The very first step to getting out of debt is to decide you want to do it.  That was the change both my husband, and I made.  Once we were ready and committed to getting out of debt, we began our journey.

You might be saying that you can’t do that though.  I’m here to say that you can – when you really, truly want to make it happen.

Getting out of debt doesn’t require you to be rich. Anyone can do it.  Even if you have a low income or don’t have much money. Like I said above, knowing that you want to make the changes and pay off your debt is only one small part.  The more significant issue is how in the world you actually can do this.

 

1. Face YOUR Reality

According to CNN Money, the average American family made around $59,000 in 2017. While that is the average, it is also true that many Americans make much less than this.

With a lower income, it is even more critical that you have no debt at all. After all, you are already stretching every dollar to cover your bills. You don’t need additional payments causing more financial stress.

Unless you win the lottery, a wealthy relative leaves you a small fortune, or you find a better job, you know your income won’t change.  That is the truth. You can’t change that.

However, what you can and must do is take the steps you can to work yourself out from under the mountain of debt you may be facing. You need to first create a budget, determine how much debt you have and then the steps to pay it off, no matter how much money you make.

 

2. Fully Commit

If you are not 100% ready to make changes, then you are destined for failure. It may be blunt, but it is true. If you can’t “go all in” and fully commit to making whatever difficult changes necessary (trust me, it will be challenging), then you need to stop reading right now.

If you are ready to make this lifestyle change, then read on. You’ve already made huge strides to make changes in your life.

 

3. Create (and use) a Budget and Debt Snowball Form

Knowing where your money goes is paramount to getting out of debt, no matter how much you make. Without your budget, you can’t even consider getting out of debt.

If you have never created a budget, it can be overwhelming.  But, it will also be eye-opening.  In addition to your budget, you should create a debt snowball, start using the envelope system and take better control of your money.  By doing this, you will get a better picture of your debts and how you can tackle them.

Look at paying off debt like a football team.  Each part of your finances is involved in the game:

Home Team – This is you and your family
Visiting Team – These are your debts and expenses
Your End Zone – This is where you will be debt free
PlayBook – Budget and debt snowball forms
Football – Your money
Refs and Penalties – Unexpected instances which set you back in reaching your goals

You would never expect a team to run onto the field and play the game without having the proper plays in mind. The same is true for you;  If every one of the members of your family has a different idea as to how to get your money down the field to pay off your debts, you will never make it there.

Instead, you design smart plays and work together to get there.  You work to get your money past all of the expenses you need to dodge.  There may be setbacks, and you may have to move back before you can get forward.  However, with hard work, you will get there.  You will get onto the scoreboard – and end up claiming victory!

 

4. Find extra money

Before you jump in to try to pay off your debts, you need to have savings.  The reason is that if an emergency comes up, you need to pay for it – in cash.  You do not want to run to your credit card to cover the expense.  It is best to have at least $1,000 in the bank before you get started.

So, before you jump in to pay off those debts, you listed above, make sure you’ve got money in the bank to cover your unforeseen expenses by creating an emergency fund.

Once you have that done, then you are going to have to find a way to squeeze everything you can out of every cent.  For some, it may mean no longer dining out.  For others, it could be shutting off cable television.  Where there is a will, there will always be a way to make this happen.  You just have to do what you can!

I share this true story in our budget post, but I’m putting it here again for you!  My husband and I gave up dining out. No joke. We ate dinner out very infrequently.

While I look back and think it might have been once every couple of weeks, I asked my husband recently, and he said that we were lucky to eat out once a month! It was painful, but now that we’ve cut down out all of our debts, we have income freed up so we can have dinner out more frequently (if we so desire).

For even more inspiration and ideas, you may have to find some radical ways you can get cash to help you get out of debt.  Do whatever it takes (legally and within reason, of course), to help you get out of debt.

Read More:  60 Creative Ways to Save or Make Money

 

5. Find ways to get more money (i.e. side hustle and selling items)

To be honest, if you are struggling to make ends meet on a low income, you won’t be able to just cut enough out of your budget to pay off your debt.  Like my mom use to say – “You can’t get blood out of a turnip” – which means if it isn’t there-there is nothing you can do about it.

That is the truth, and I’m not trying to lie to you. I am realistic and know that if you are making barely enough to cover your expenses, you won’t have any extra money for your debt.  I get that.

You can’t save enough money on your budget to eliminate your debt.  Well, I guess you could, but that is going to take a very, very, VERY long time.  So, what do you do when you’ve saved all you can and still can’t pay off your debts?  Well, you just have to get creative.

For some this may mean finding items you no longer need, which you can sell to raise money.  When we did this step, we had the same issue.  We could not cut anything more from our budget.

For us, this meant selling items we no longer needed. We did a large cleanout and got rid of furniture and other things we were holding onto, just in case we needed them. By doing this, we were able to come up with several thousand dollars — 100% of which went immediately towards our debt.

If that isn’t an option, you might want to consider getting a second job or side business to bring in income to indeed help you get out of debt.  We also did this. I started my website.  Now, let me be Frank in saying that this is not a great way to make money.  Most blogs make little to nothing in the first couple of years.  I was lucky, and we did pretty well, and I was able to bring a bit more each year – all of which helped us to pay off our debts.

It may not be a blog, but perhaps babysitting, or cleaning houses, raking leaves, shoveling snow — there are all sorts of ways that you can make money.

Read More:  Unique Ways to Make Money From Home

It is not the income that is holding most people back, it is the understanding and knowing even where to start.  You might have to scale back on various spending aspects of your life, but when you get to scream from the rooftops — WE’RE DEBT FREE!!!! — it will be worth it all.  I promise you!!!

 

get out of debt

The post How to Get Out Of Debt Fast When You Don’t Have Much Money appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

How to Figure Out Your Family’s Grocery Budget (and Stick to It!)

The post How to Figure Out Your Family’s Grocery Budget (and Stick to It!) appeared first on Penny Pinchin' Mom.

One question I see time and again is “How much should I spend on groceries for my family of four ?” — or three, five, etc.

When you’re making a household budget, it’s easy to know how much you need to include for most of your living expenses, like utilities, student loans, and even fuel. But when it comes to your average grocery bill, how much should you expect?

As much as I wish there were a simple answer, a family’s grocery budget will be different for every household. There’s no right or wrong number, but finding yours is key to keeping your grocery spending in check.

Here’s a guide to help you figure out how much you should spend on food each month.

Calculator and receipt in shopping cart for grocery budget

WHY YOU NEED A GROCERY BUDGET

It may sound like it should go without saying, but you need a food budget because it will force you to think about money when you’re grocery shopping. After all, your income is a certain amount, and that means you only have a certain amount of money you can spend on food for your family.

The other reason you need a frugal food budget is to make sure you don’t spend too much money for the food your family needs (and to save money by not buying food you don’t need). You become smarter about your spending and think twice before adding impulse purchases to your shopping cart.

HOW MUCH TO BUDGET FOR FOOD

It can be tough to figure out how much you *should* budget for food vs. what you’re currently spending on your meals. There is not a right or a wrong number, but you must find the right amount so you don’t overspend.

Here are some tricks you can try to help you figure out exactly how much to spend on food per month.

Budgeting Hack 1: Use the National Average

According to the U.S. Department of Agriculture, the average household spends about 6% of its income on groceries each month. However, the study also shows that the average American also spends 5% of his or her disposable income on dining out. That makes your food budget 11% of your overall income — a significant expense!

If you want to keep things simple and use the national average to calculate your monthly grocery budget, then plan on spending 6% for groceries and an additional 5% for dining out.

Here is an example: If your take-home pay is $3,000 a month, you will budget around $180 for groceries and $150 for dining out. Of course, if $180 won’t cover your needs, then you need to commit to a more thrifty plan: Scale back on eating out and use any additional money toward your grocery needs.

Budgeting Hack 2: Use Your Actual Spending

A more realistic way to figure out how much to budget for groceries is to look at your current grocery spending. An easy way to do this is by completing a spending form.

Here’s how it works. Review all your purchases over several pay periods. You should include food spending, fuel, dining out, entertainment — everything. Having all the numbers in front of you will help you calculate the average of how much you’re spending on groceries (and all your other budget categories!) every week.

If you think your expenses for food add up to too much money, you can try to reduce your spending. Just keep in mind that your family will have to adjust the way you eat.

Budgeting Hack 3: Use a Grocery Calculator

Sometimes, you want to get specific help when figuring out how much to budget for food. There is a simple to use, online grocery budget calculator; you can use it for free.

Fill out the information for all of your family members, then hit calculate. It will return an average you should plan on budgeting for your family.

I ran this report for my family, and the result said we should plan on $219.35 for an average grocery budget for our family of five. That is more than we spend. On average, I spend $125 – $150 per week on everything our family needs.

While using a budget calculator can be helpful, it might end up doing the same thing for you: Suggest an amount that is higher than what you know you spend — or is higher than what you can afford. Use this calculator as a guide, but not the only factor when determining your budget.

Budgeting Hack 4: Look at the U.S. Average

Another way to reach a grocery budget amount is to look at the plans created by the USDA. The most recent plans are on their website. They provide the weekly cost for a thrifty, low-cost, moderate-cost and liberal plan on a weekly and monthly basis. The amounts are broken down by gender and age. You will need to total the numbers listed for the people in your family.

For example, the average grocery budget for a family of four is about $871, per this report. The amounts will be lower, of course for a family of three or higher if you need to budget for a family of five.

Once again, these numbers should be a guide. Once you start grocery shopping for your family, you may find that you spend much less – or even more – than what the average family spends on groceries.

Don’t Forget Special Dietary Needs

If you have a family member who cannot eat gluten or who has other dietary restrictions, these can affect your budget. Make sure you keep these foods in mind when developing your budget as they can cost much more than average foods or require trips to a specialty grocery store.

TRICKS TO MAKING A MONTHLY FOOD BUDGET

There is no magic formula or grocery budget app that will pull the numbers together for you. The key is to make sure that you put forth the effort in the right manner to make it work for you. Keep the following in mind when figuring your monthly food budget:

1. Consider Your Current Spending

Before you can make any changes, you have to know where you are starting. That way, you can see what you currently spend on your groceries so you can start cutting back.

Need help figuring our your average grocery bill?

You can use the Spending Worksheet and go back to find your spending on food over the past 8 weeks. Look at every transaction in your bank statement and total it. Then, divide that amount by two. You know have an average your family spends on food every month.

The next step is going to be finding a way to not only spend that amount going forward but try to find ways to spend even less if you can.

2. Put It in Writing

The next things you need to when creating your budget for food is to put it in writing. Once written down, you are more willing to commit to the process. Make sure your spouse or partner is also on board so you can work together to ensure you don’t overspend.

3. Start Using Cash

If you really want to stick to a tight budget, you need to use cash. Each payday, get cash from your bank for the amount you’ll need at the grocery store. That is all you have to spend until the next payday. No cheating! That means you can’t whip out your debit card if you run out of money.

You’ll quickly learn better ways to be smart and strategic when figuring your budget and sticking to it. (Read more about how to start using a cash envelope budget ).

4. Commit to Using Your Budget

You can have the greatest intent to use a budget, but if you aren’t ready to do so, it will never work. It is just like dieting. You may know you want to shed pounds, but if you are not willing to put in the effort, the weight will never come off.

Once you know the amount you have to spend at the grocery store, you need to stick to it (this is another reason to use cash). You have to make the conscious decision that you want to budget and then do all you can to make it work.

Your spouse or partner needs to be on board, too. It will never work if one of you is committed to making your grocery budget work and the other is not. Have a long heart to heart talk and make sure you are on the same page.

Read more: How to talk to your spouse about money

GROCERY SHOPPING ON A BUDGET

If you’ve tried all these ideas and still need to save money on groceries, here are some simple tricks you can try.

Reduce Your Dining Out Budget

Stop eating as many restaurant meals. That’s an easy way to find money to add to your grocery shopping budget, especially if this means you’re cutting back on alcohol spending at restaurants.

Use Coupons

While they are not for everyone, coupons are the simplest way to save money on the items you need. Even if coupons aren’t available for the grocery items you need, you can find them for household products you use, like toilet paper and laundry detergent, thereby reducing your spending and increasing the money you can spend on the foods you want.

Stick to Your List

Never shop without a list and only purchase the items on your list. Put in writing or use a grocery list app and don’t be tempted to add extra items to the cart.

Make a Meal Plan

Create a meal plan before you grocery shop. That way, you have a plan for the week not only to know what you will eat but also to make sure the ingredients will be on hand when it’s time for meal prep (reducing those frequent drive-thru meals). Meal planning saves you time, money, and the stress of figuring out “Mom, what’s for dinner?” without resorting to frozen pizza.

Keep a Price Book

Start watching the sales cycles at your grocery store and you’ll learn when it is time to stock up on your pantry staples, so you always pay the lowest price. Keep track of the prices in a price book for every item your family needs. (Bonus: When you get good at identifying your store’s food cost cycles, you can plan a meal or two around the fresh foods on sale in any given week.)

Add a Meatless Meal

One item that can quickly increase your grocery bill is meat. Try having a meal without meat every week (like Meatless Mondays), and you’ll find that you spend less.

Vegetables are cheaper than meat and can be just as filling. Having vegetables for your main course at dinner is not only healthy but can also help with saving money. Try loaded sweet potatoes, pasta with veggie sauce, or cheese and vegetable pizza for a delicious meal.

If veggies are a hard sell for your family, try fruit salads or breakfast for dinner — pancakes and French toast are cheap and fast!

Buying fresh fruit and vegetables that are in-season can help you save even more on your monthly grocery bill. And frozen vegetables and fruit are often cheaper (and tastier) than “fresh” produce that’s not in-season.

  • Pro tip: When you’re buying meat, remember that cuts like chicken thighs are often significantly cheaper than chicken breasts, and they have more flavor. Get more tips on saving money on meat, produce, and dairy products.

There’s an App for That

There are many grocery savings apps that can help you keep tabs on food prices and create a smarter shopping list. What is great about an app is that you always have it with you on your phone, so no worry that you left a coupon at home or in your car.

Steer Clear of Mistakes at the Grocery Store

When you grocery shop, there are temptations around every corner (and I don’t just mean the ice cream and chocolate chip cookies). There are sales on the end caps, fancy signs and different tricks stores use to make you spend more money. Learn about the ways grocery stores get you to spend more money so you can avoid them.

Avoid Haste and Waste

One of the biggest ways people waste money when it comes to food is through waste. People often buy food that goes bad before they get around to eating it.

You might also waste money buying convenience foods. (That frozen meal might seem like a deal when you’re running low on time, but you’ll save more if you prepare big batches of homemade, healthy food and freeze some leftover portions for later.)

These are two ways you are killing your grocery budget. Study your habits and find ways to make changes so you aren’t wasting money on food.

  • Pro tip: One convenience food I occasionally give into is a rotisserie chicken. It’s ready to eat when I get home from the store, and you can use it in a few other meals during the week.

NOW GO SAVE MONEY ON YOUR GROCERIES!

Take the time to create a grocery budget that is both frugal and feasible for your family. Don’t try to make the dollar amount so low that it is unrealistic, or it will fail month after month. But if you pay attention while you’re shopping and keep an eye on how long the food lasts your family, you’ll soon discover that having a realistic grocery budget is the tastiest way to save money!

The post How to Figure Out Your Family’s Grocery Budget (and Stick to It!) appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

The Best Bill Negotiation Services: Bill Shark Vs BillCutterz Vs Truebill Vs BillFixers Vs Trim Vs Bill Advisor

Looking to lower your monthly costs? These bill negotiation services can help you to save hundreds of dollars on your recurring monthly bills.

The post The Best Bill Negotiation Services: Bill Shark Vs BillCutterz Vs Truebill Vs BillFixers Vs Trim Vs Bill Advisor appeared first on Bible Money Matters and was written by Peter Anderson. Copyright © Bible Money Matters – please visit biblemoneymatters.com for more great content.

Source: biblemoneymatters.com

Best Tips for Shopping at the Grocery Store on a Budget

It’s no secret that you can be healthy on a budget, but the real secret lies in how you can stay healthy and on budget.  Just like adapting to a new diet, staying on budget is all about behavior change.  In my previous article, I shared tips on eating healthy on a budget, and this time around, I’m digging a little deeper into how to stay on budget on a shopping trip.  Since I get groceries at least once per week, both for work projects and for my personal family shopping, I consider myself an expert in saving money at the grocery store.  Here are my top 10 tips for shopping at the grocery store on a budget, and don’t be surprised- some of these tips start even BEFORE you hit the store!

1. Check mail for coupons and ads

Cutting coupons may seem like a blast from the past, but if cutting out little pieces of paper can save $5 for my future, then I’ll be clipping away!  Each week, your mail includes ads from local grocery stores and coupons from major brands, so tossing that mail out is like throwing away money. Instead, look through that mail to find deals on your frequently used items, and anything special coming up.  Shopping ads especially help me to plan food for holidays, like for this budget-friendly spread for Fourth of July.

2. Make a grocery list.

I suggest planning out weekly meals and making a grocery list for it. This not only saves a lot of money, but will also save time in the grocery store and help reduce food waste (which is basically wasted money).  Going into the store with a list makes me feel more prepared and in control of what I spend. It’s pretty easy to say no to those extra treats in the cart if they’re not on my list.

3. Shop where you bag your own groceries.

If you have a grocery store in town where you bag your own groceries, chances are that store has the best prices since the savings on staff can be reflected on your receipt.  Plus, I like to bag my own groceries, as it gives me a final run-through of my purchase to make sure I didn’t forget anything, and I get to bag them exactly how I want.

4. Eat before to avoid impulse and unhealthy buys.

The biggest mistake in overspending at the grocery store is going shopping when your stomach’s growling.  That extra bag of chips gets half-way eaten before check-out at the register, and guess what?!?! It wasn’t on your grocery list, in your budget, OR on your meal plan.  Prevent that mistake by eating before a trip to the grocery store and it will be easier to stick to your plan.

5. Buy seasonal fruit and vegetables.

There are so many reasons why eating seasonally is better- less impact on the environment, more nutrients, and better taste- but buying produce in season is actually a great way to save money and eat healthy.  You don’t have to spend extra on foods that are imported from different regions when it’s growing in season in your area.  When produce is in season, it’s in abundance so farmers are able to give a better deal.

6. Buy frozen veggies.

While I stress that fresh is best, there are some times when it just makes sense to buy frozen veggies.  One reason would be because of cost. If there is a good sale on organic frozen peas, I’ll go ahead and purchase some ahead of time since I can store it in my freezer.  Another reason to buy frozen is because of seasonality. There is plenty of fresh and juicy corn available in the summer, but when it comes to winter months, I like to pull corn straight from my freezer.

7. Buy deli meat and cheese at the deli.

There is so much emphasis on how pre-packaged foods are more convenient, but these foods are not convenient on my wallet or my diet. When you buy foods that are already packaged, you’re paying for that extra packaging and all the costs that go along with that (from advertising, to transportation, to even stocking it on the shelves).  On top of that, buying food already packaged up can mean you end up wasting some of that food if you don’t use it.

That being said, I am all for soliciting the various departments of the grocery store and getting exactly how much I need, which means I pay for only that.  I get my sandwich meat and cheese from the deli and what I love is that I can tell them how much to slice, how many slices, and even how thick to make my slices.  Gone are the days of moldy cheese because I ran out of bread- now I know to shop for exactly what I need.

8. Buy bread and baked goods in the bakery. 

Speaking of bread, I also buy baked goods at the bakery.  Not only are these items usually made fresh in stores, they also skip all the fancy packaging and trickle all those savings to you.  If you’re seriously on a budget, some bakeries even sell day-old goods for a fraction of the cost.

9. Buy meat in bulk, cut and freeze.

While you’re visiting the different departments of the grocery store, don’t forget to make a stop to the butcher.  I like to buy meat in bulk and cut it to freeze for later. It’s so much cheaper to buy meat like this, and I love the convenience of having options to use in my freezer.  My biggest tip is if you’re going to make chicken, get the whole chicken because that’s considerably cheaper than one that’s cut. Aside from using just the meat, you can also make a delicious chicken broth with the carcass, which is a great way to use the whole animal and also save money even more!

10. Buy Bulk Bin items.

You know those bulk bins at the grocery store?  That section is like gold to me since every time I visit it, I’m saving money!  Since I’m usually developing recipes, it’s just easier to purchase the exact quantity of something, that way I know exactly how much something costs.  What’s even better is that I only have the amount needed for the recipe, and that leaves me with less food to waste each month. I absolutely dread throwing away food, because it’s like throwing away money, so by buying some ingredients in bulk, I know I’m using up what I need.

Using ingredients from bulk bins, I’m going to make aebleskiver, or Danish Pancakes.  Ever since I got a special pan, I’ve been obsessed with making these fun-size pancakes.  I usually don’t purchase separate pans for specialty foods, but I really got my money’s worth for this pan since I use it a few times each month.  Yes, I could buy these ingredients packaged up ahead of time, but it’s happened where I think I have enough flour for a recipe (usually after I already mixed up the other ingredients), but I don’t have enough so I have to waste my time with an emergency trip to the store.  But ever since I started using bulk bins, I know I have enough for my recipes every time, and when it comes to eating healthy on a budget, everything adds up!

 

The post Best Tips for Shopping at the Grocery Store on a Budget appeared first on MintLife Blog.

Source: mint.intuit.com

How to Prepare for the End of Your Unemployment Benefits

Before the coronavirus reached the U.S., unemployment was low and few could have anticipated a global pandemic. However, as the pandemic and ensuing recession took hold, a record-breaking number of people filed for unemployment benefits to stay financially afloat.

“COVID-19 led to an incredible number of American workers being without work,” says Julia Simon-Mishel, an unemployment compensation attorney. “And it’s caused a huge need for individuals to file for unemployment insurance.”

Unemployment insurance, or unemployment benefits, can offer an essential lifeline. But if you’ve never accessed these benefits before, you may have questions about how they work. You might also be asking: What do I do when my unemployment benefits run out and I’m still unemployed?

This article1 offers tips about what you need to know about filing an unemployment claim. It also addresses the following questions:

  • How do you prepare for the end of unemployment benefits?
  • Can your unemployment benefits be extended?
  • What can you do when unemployment runs out?
  • Can you refile for unemployment after it runs out?

A record number of people have filed for unemployment, and many are wondering what to do when unemployment runs out.

If you’re just getting ready to file or need a refresher on the basics of unemployment benefits, read on to have your questions answered.

If you’re already collecting benefits and want to know what happens once you reach the end of the benefit period, skip ahead to “Steps to take before your unemployment benefits run out.”

Common questions about unemployment benefits

Experiencing a job loss is challenging no matter what. Keep in mind that you’re not alone, and remember that unemployment benefits were created to help you.

As you consider how to prepare for the end of unemployment benefits, remember that you're not alone.

While they’re designed to provide financial relief, unemployment benefits are not always easy to navigate. Here’s what you need to know to understand how unemployment benefits work:

What are unemployment benefits?

Unemployment insurance provides people who have lost their job with temporary income while they search for and land another job. The amount provided and time period the benefits last may vary by state. Generally, most states offer up to half of a person’s previous wages in unemployment benefits for 26 weeks or until you land another full-time job, whichever comes first. Requirements and eligibility may vary, so be sure to check your state’s unemployment agency for guidance.

How do you apply for unemployment benefits?

Depending on where you live, claims may be filed in person, by phone or online. Check your state government’s website for details.

Who can file an unemployment claim?

This also may vary from state to state, but eligibility typically requires that you lost your job or were furloughed through no fault of your own, in addition to meeting work and wage requirements. During the coronavirus pandemic, the government loosened restrictions, extending unemployment benefits to gig workers and the self-employed.

When should you apply for unemployment benefits?

Short answer: As soon as possible after you lose your job. “If you are someone who has had steady W2 work, it’s important that you file for unemployment the moment you lose work,” Simon-Mishel says. The longer you wait to file, the longer you’re likely to wait to get paid.

When do you receive unemployment benefits?

Generally, if you are eligible, you can expect to receive your first benefit check two to three weeks after you file your claim. Of course, this may differ based on your state or if there’s a surge of people filing claims.

Can unemployment benefits be extended? Check your state’s unemployment insurance program page for updates.

2020 enhancements to unemployment benefits for freelance and contract workers

In early 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. In addition to other benefits, the CARES Act created a new program called Pandemic Unemployment Assistance. This program provides unemployment benefits to independent contractors and other workers who were typically ineligible. That means that if you don’t have steady W2 income—for instance, freelance and contract workers, those who file 1099s, farmers and the self-employed—you still may qualify for unemployment benefits.

“That program is a retroactive payout,” Simon-Mishel says. “If you’re just finding out about that program several months after losing your job, you should be able to file and get benefits going back to when you lost work.”

Because legislation affecting unemployment benefits continues to evolve, it’s important that you keep an eye out for any additional stimulus programs that can extend unemployment benefits. Be sure to regularly check your state’s unemployment insurance program page for updates.

“It’s really important to keep on top of all the information out there right now and be aware of what benefits are available to you.”

– Julia Simon-Mishel, unemployment compensation attorney

Steps to take before your unemployment benefits run out

In a perfect world, your job leads would become offers long before you reached the end of your unemployment benefits. But in reality, that’s not always the case.

If you’re still unemployed but haven’t yet exhausted your benefits and extensions, you may want to prepare for the end of your unemployment benefits as early as possible so you don’t become financially overwhelmed. Here are four tips to help you get through this time:

Talk to service providers

Reaching out to your utility service providers like your gas, electric or water company is one of the first steps John Schmoll, creator of personal finance blog Frugal Rules, suggests taking if you’re preparing for the end of unemployment benefits.

“A lot of times, either out of shame or just not knowing, people don’t contact service providers and let them know what their situation is,” Schmoll says. “[Contact them to] see what programs they have in place to help you reduce your spending, and basically save as much of that as possible to help stretch your budget even further.”

Save what you can

To help prepare for the end of your unemployment benefits, a few months before your benefits end, Schmoll suggests cutting back spending as much as possible, focusing only on necessities.

“If you can try and save something out of the benefits that you’re receiving while you’re receiving them—it doesn’t matter if it’s $10 or $20—that’s going to help provide some cushion,” Schmoll says. Keep those funds in a separate account if you can, so you’re not tempted to spend them. That way you’re more prepared in case of an emergency.

If you hunkered down during your period of unemployment and were able to save, try to resist the urge to splurge on things that aren’t necessary.

“There might be temptation to overspend, but curtail that and focus on true necessities,” Schmoll says. “That way when [or if] you receive an extension on your benefits, you now have that extra money saved.”

Saving money can be a good way to prepare for the end of your unemployment benefits.

Saving money can be a good way to prepare for the end of your unemployment benefits.

Seek additional financial aid

If you find that your savings and benefits aren’t covering your expenses, and you’re reaching a point where you no longer qualify for benefits, look into other new benefit programs or features designed to help during times of crisis.

For example, there are programs across the country to assist people with rent or mortgages, Simon-Mishel says. Those programs are generally designed to keep those facing financial hardship from losing their home or apartment. You may need to show that you are within the programs’ income limits to qualify, or demonstrate that your rent is more than 30 percent of your income. These programs vary widely at the state and even city level, so check your local government website to see what might be available to you.

As you prepare for the end of your unemployment benefits, explore which government benefits or government agency may be best suited for your needs.

Keep up with the news

During economic downturns, government programs and funds often change to keep up with evolving demand.

“It’s really important to keep on top of all the information out there right now and be aware of what benefits are available to you,” says Simon-Mishel. “You should closely pay attention to the social media of your state unemployment agency and local news about other extension programs that might be added and that you might be eligible for.”

Pay attention to social media and local news as you prepare for the end of your unemployment benefits.

Options for extending your unemployment benefits

If you’re currently receiving benefits, but they’ll be ending soon, you’re likely wondering what to do when your unemployment runs out and asking if your unemployment benefits can be extended. Start by confirming when you first filed your claim because that will determine your benefit end date.

If you’re wondering, “Can you refile for unemployment after it runs out?” the answer is yes, but you’ll have to wait until your current “benefit year” expires. Note that a benefit year is 12 months from when you file a claim. If you filed at the beginning of June, for example, you generally can’t file again until the beginning of the following June.

You may get 26 weeks of unemployment benefits, depending on your state’s rules at the time. Most states extended the payout period to 39 weeks in the wake of the COVID-19 crisis. Check your state’s website for the particulars on what to do when your unemployment runs out.

If your claim is still active but you’ll be in need of additional financial relief after your unemployment benefits run out, here are your options:

File for an unemployment extension

During extraordinary economic times, such as the coronavirus pandemic, the federal government may use legislation like the CARES Act to offer people more benefits for a longer period of time, helping many people concerned about whether unemployment benefits can be extended.

Can you refile for unemployment after it runs out? It can vary by state, so reach out to your unemployment office.

For example, in 2020, for most workers who exhaust, or receive all of, their unemployment benefits, a 13-week extension should automatically kick in, Simon-Mishel says. This would bring you up to 39 weeks total. However, if more than a year has passed since you originally filed and you need the extension, you will likely need to file a short application provided by the government. Details vary by state.

As you’re determining what to do when your unemployment runs out, reach out to your unemployment office. It’s important to do this before your benefits expire so you can avoid a missed payment. You can also confirm you’re eligible and that you can refile for unemployment after it runs out.

Ask about the Extended Benefits program in your state

Can unemployment benefits be extended beyond that? In periods of high unemployment, you may qualify for a second extension, depending on your state.

“After those [first] 13 weeks, many states have added a new program called Extended Benefits that can provide another 13 to 20 weeks of unemployment when a state is experiencing high unemployment,” Simon-Mishel adds. This means you may be able to receive a total of up to 59 weeks of unemployment benefits, including extensions. The total number of weeks of unemployment you may receive varies based on your state and the economic climate.

It’s hard enough keeping up with everything as you prepare for the end of unemployment benefits, so don’t worry if you don’t have your state’s benefits program memorized. Visit your state’s unemployment insurance program page to learn more about what benefits are available to you.

For anyone considering what to do when unemployment runs out, it's important to take things one day at a time.

Beyond unemployment benefits

While life and your finances may seem rocky now, know that you’re not alone. Remember that there are resources available to help support you, and try to take things one day at a time, Schmoll says.

“Realize that at some point your current situation will improve.”

If you find that your benefits aren’t covering all of your expenses, now may be the time to dip into your cash reserve. Explore these tips to determine when it’s time to use your emergency fund.

1 This article is not legal advice and should not be construed as such. Eligibility for unemployment benefits may be impacted by variations in state programs, changes in programs, and your circumstances. If you have questions, you should consider consulting with your legal counsel, at your expense, or seek free assistance from your local legal aid organization.

Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

The post How to Prepare for the End of Your Unemployment Benefits appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

Accredited Asset Management Specialist (AAMS)

What is the AAMS certification?New financial advisors need something to help them stand out. Consequently, the AAMS does just that. Designed for newcomers to the financial advice business, the AAMS trains advisors to identify investment opportunities as well as help clients with other financial goals. It also gives more experienced advisors a fast and simple way to learn more about asset management and improve their credentials. Here’s how it works.

AAMS Defined

An Accredited Asset Management Specialist (AAMS) can advise clients on college savings, taxes, and retirement savings. The course and tests for this certification are designed to ensure advisors can assist clients with their complete financial needs. It emphasizes evaluating the client’s assets and making appropriate recommendations.

The AAMS certification is granted by the College for Financial Planning, a unit of the Kaplan Company. The college oversees a large number of financial certification programs, including the Certified Financial Planner designation, one of the most valued certifications in the field.

AAMS Certification Requirements

What is the AAMS certification?

To receive an AAMS, students first have to complete a 10-module education program provided by the College for Financial Planning. Then they have to pass an examination. Finally, they must agree to abide by a code of ethics and promise to continue their education.

The courses are online and can be delivered in self-study or instructor-led formats. Courses are open-enrollment, therefore students can begin at any time without waiting for the next session.  The 10 modules cover the following material:

1.:The Asset Management Process

2. Risk, Return & Investment Performance

3. Asset Allocation & Selection

4. Investment Strategies

5. Taxation of Investments

6. Investing for Retirement

7. Deferred Compensation and Other Benefit Plans

8. Insurance Products for Investment Clients

9. Estate Planning for Investment Clients

10. Fiduciary, Ethical, and Regulatory Issues for Advisors

The College of Financial Planning provides everything necessary to study for and complete the modules and take the test. Students have access to the study materials and tests through an online portal.

Streaming video lectures, audio files, and interactive quizzes also can be found through the college’s site. Meanwhile, students can access live classes online and contact professors with questions and issues.

The AAMS Test

To get the AAMS certification, students have to pass just one test. However, they have to make their first attempt at the test within six months of enrollment and pass it within a year.

The fee for the first attempt at taking the test is included in the course tuition. There are no prerequisites for signing up to take the AAMS course.

Time and Money Requirement

Tuition for the AAMS courses is $1,300. This includes the fee for the first attempt at passing the certification exam. It also includes all needed course materials. Each additional attempt costs $100.

Students employed with certain financial services firms may be able to get tuition discounts. The college may also provide scholarships.

The College for Financial Planning recommends students plan to spend 80 hours to 100 hours on the course. Since the course is self-study, this amount of time is flexible.

To maintain AAMS certification students have to commit to completing 16 continuing education credits every two years. Also, continuing education has to cover one or more of the topics covered in the AAMS coursework.

AAMS certificate holders also have to agree to follow a professional standard of conduct. As a result, they have to maintain integrity, objectivity, competency, confidentiality and professionalism in providing financial services.

AAMS Certificate Holder Jobs

AAMS certificates are generally earned by entry-level workers in the financial advice business. Consequently, AAMS holders are typically trainees. In some cases, they may provide support services to more experienced and highly credentialed advisors.

The AAMS designation does not confer any special powers or privileges. Instead, it’s an optional credential that students may obtain to advance their careers and enhance their knowledge of financial advice.

Comparable Certifications

What is the AAMS certification?

In addition to the AAMS, the College for Financial Planning offers an Accredited Wealth Manager Advisor (AWMA) certificate. This is a somewhat more advanced designation. As a result, it requires a course equivalent to three graduate level college credits and requires 90 hours to 135 hours to complete.

Chartered Mutual Fund Counselor (CMFC) is sponsored by the Investment Company Institute along with the College of Financial Planning. It is similar to the AAMS certificate except it focuses on mutual fund assets.

Accredited Financial Counselor (AFC) is a general personal finance advice certificate from the Association for Financial Counseling and Planning Education. First, it requires 1,000 hours of financial counseling experience. Secondly, it demands three letters of reference. Finally, applicants must both complete coursework and pass an exam.

Bottom Line

The AAMS designation is usually for newly minted financial advisors, but even experienced pros can use it to bulk up their credentials. The courses and tests associated with the AAMS teach advisors how to evaluate assets and make recommendations.

While this certification doesn’t give an advisor any real powers, it’s a sign that they can identify investment opportunities specific to their clients. Above all else, it can be a great relief to a client who has a child going to college or a retirement house on their wish list. As a result of obtaining an AAMS, and advisor can point them toward the right investments for their goals.

Investing Tips

  • If you’re looking to identify investment opportunities, consider using an AAMS as your advisor. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • An AAMS can help you with college savings, taxes, and retirement savings if you know what your goals are. However, if you are unsure how much you want to invest, what your risk tolerance is, or how inflation and capital gains tax will affect your investment, SmartAsset’s investing guide can help you take the first steps.

Photo credit: ©iStock.com/SARINYAPINNGAM, ©iStock.com/fizkes, ©iStock.com/Suwanmanee99

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Source: smartasset.com

Watch Your Wallet: 7 Hidden Costs of Self-Isolating at Home During Coronavirus

Coronavirus Is Costing You Cash at Home: 7 Hidden Expenses of Self-IsolatingYuttachai Saechan/Getty Images; realtor.com

Those who are fortunate enough to still be collecting a paycheck while quarantined or sheltering in place might expect to build up some serious savings. While you work from home, you’re avoiding your usual commuting expenses, and you’re probably saving money by not going to bars, restaurants, and movies, or skipping that vacation to Fiji.

But as spending decreases in some areas during self-isolation, it can creep up in others. To brace yourself and your budget, keep an eye on these expenses while you’re self-isolating at home.

1. Utilities

If you’ve gone from office life to Zoom life, you’re spending more time at home than usual, which could ramp up your household expenses.

“Your utility spending might be considerably higher if you’re spending more time at home cooking, charging devices, using lights and appliances,” says Ted Rossman, industry analyst at CreditCards.com.

To keep your utility bills down, turn off lights when you leave the room, open windows during the day to let in cool air, unplug devices that you’re not using, and consider turning down your water heater by a few degrees.

2. Groceries

Grocery delivery

m-gucci/Getty Images

Even if you’re not hoarding (and you shouldn’t be), you might find yourself spending more on groceries while you shelter in place.

For some people, an uptick in grocery spending will be offset by the money saved from not dining at restaurants. But if your local store is picked over—or if you pay fees for grocery delivery—you could spend more on groceries than usual.

“I’ve been to a local grocery store, and the only thing that was available was organic, so I couldn’t buy the generic. I actually had to spend more money,” says Steve Repak, author of the “6 Week Money Challenge for Your Personal Finances.”

If your grocery spending feels out of hand, be flexible and creative with your menu. Cook the food you already have at home before you head back to the store. Sites such as Eater have compiled resources for home cooks, including Pantry Cooking 101 and How to Stock a Pantry.

If you’re using a delivery service, place infrequent, larger orders instead of several small orders. Or consider curbside service; many stores are allowing free pickups where they bring your groceries right to your car, so you can save on delivery fees and tips.

3. Meal delivery and takeout

You may not be able to enjoy a nice meal at a restaurant, but you can order takeout and delivery—and those indulgences can add up quickly. After all, it’s not just the meal you’re paying for.

“There’s probably still a service fee, and on top of that you have to leave a gratuity,” Repak says. (It’s also a good idea to generously tip the workers who are delivering your food in these times.)

If you’re on a budget, reserve takeout and delivery for special occasions or those days when you just can’t muster the motivation to cook.

4. Alcohol and other sources of comfort

Curl up with a good bottle…

Moyo Studio/Getty Images

If you find yourself decompressing with a glass or two (or three) of wine every night, your drinking habit could do a number on your budget. And you wouldn’t be alone—alcohol consumption has shot up nationwide, and in states where recreational marijuana is legal, dispensaries are reporting booming business.

“Social isolation is really strongly linked to physical and mental health problems, and the way we cope with a lot of them is by drinking more,” Repak says. “People are going to smoke more and drink more … and we need to find other healthier coping mechanisms to offset that additional spending.”

You may not want to totally forfeit your evening glass of pinot, but you can make your supply last longer by sipping a mug of (far more affordable) chamomile tea on occasion, or opting for a calming yoga video or breathing exercise.

__________

Watch: Our Chief Economist’s View on the Pandemic, Mortgage Rates, and What’s Ahead

__________

5. Subscriptions

You’ve rewatched all your favorite shows on Netflix and Hulu—so, now’s the time to add a Disney+ subscription, right?

Not so fast, Repak says.

“Save a little bit of money by just picking one of the streaming services,” he suggests, or at least don’t pile on new subscriptions to the ones you already have.

To free up your budget, take inventory of your other monthly subscriptions, services, and other recurring expenses, and see if there’s anything that can be eliminated.

“Ten dollars a month may not sound like a lot, but if you have five of those, that’s $600 annually,” Rossman adds.

6. Online shopping

Online shopping knows no quarantine

Poike/Getty Images

If you turn to retail therapy to soothe your soul, your budget could take a hit. True, many retailers are offering deep discounts in order to move merchandise, but even discount purchases add up.

“Impulse buying is a potential trap,” Rossman says. “Some people fall victim to it more than others.”

Instead of clicking “add to cart” as a coping mechanism, Repak suggests cleaning out your closet instead.

“This is a great time that we can offset our budget by decluttering our house or apartment,” he says.

Use sites like Poshmark to sell your clothes, or Mercari for your household items. Many donation centers such as Goodwill are still accepting donations, too—just call ahead to make sure your local store or donation drop-off location will take your items.

7. New hobbies you’re trying in quarantine

Our spending habits are highly personal, and you might find yourself throwing money at a new habit or hobby to fight cabin fever.

“It’s a worthwhile exercise to track your spending, especially now that so much is different,” Rossman says. “Look through your credit card and bank statements from the past month. Do you see anything surprising? Are there areas where you spent extra but didn’t feel it was worth it? These could be good ways to cut back.”

And remember: Even if quarantine has eliminated some of your old day-to-day expenses, it’s easy to overestimate how much you’re saving.

“Most people don’t have a great handle on their budget and spending habits anyway, and so much has changed of late,” Rossman says. “It’s easy to overlook things.”

The post Watch Your Wallet: 7 Hidden Costs of Self-Isolating at Home During Coronavirus appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com