How to Save Money Each Month While Paying Off Debt

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This article was originally published at HiCharlie.com” – Share with permission.

 

You have oodles of debt that you want gone. But you also have other important financial goals, like saving money, that need your attention. These competing priorities can make you feel like you’re trapped in a chicken or the egg conundrum. If you pay down your credit card debt, you’ll have more wiggle room in your budget and can save that extra cash. But, if you save more money, you won’t have to whip out your credit card next time an unplanned expense pops up. So do you pay off debt or save? The short answer is: porque no los dos?

Here’s your plan of attack to slay debt and pad your bank account:

Divide and Conquer

To work on both goals simultaneously, you’ll have to split your available resources between them. But, you need a clear plan to ensure that you allocate your dollars in the most effective way.

To get started, prioritize your debts and savings goals, keeping these things in mind:

  • High-interest debt will sink you. If you only make the minimum payments on your credit cards, you’ll be in the hole for years and pay potentially thousands extra in interest. Get rid of this debt first.
  • Lower interest debt isn’t as urgent. While you definitely want to pay off all of your obligations, “good” debt like student loans and your mortgage do less damage to your financial health.
  • Paying extra on installment loans doesn’t help your budget now. If you sock extra cash at your mortgage or student loans, you’ll reduce the total time you’re paying on them. But — it doesn’t change your required monthly payment amount.
  • An emergency fund will save you in a pinch. A cash reserve will keep you from going further in the hole when something breaks or you lose your job.
  • Start saving for time-sensitive goals ASAP. The holidays, your sister’s destination wedding, and your car registration renewal are all known events. Squirrel away a little bit here and there in the months leading up, and you’ll pay for them in cash with ease.
  • Don’t ignore retirement. It may seem like a million years away, but delaying saving for retirement will have long term negative effects. You’ll miss out on the compounding interest that actually works in your favor. If you can afford it, contribute at least enough to your retirement account to get your employer’s full match.

Choose the Right Mix

Once you’ve got your priorities in order, you need to divvy up your funds in a way that makes the most sense for you. For example, from your discretionary income, you could put 6% into retirement, 50% toward your credit card debt, and 44% toward your savings goals. As you pay off debt and your goals are completed or change, be sure to adjust your mix accordingly.

Remember: While there are some good guiding rules of thumb, how you manage your money is up to you. Personal finance is personal!

 

Find the Dollars

To make faster progress toward your financial goals, try freeing up more of your existing resources, increasing your cash flow, or both. Here are some steps you can take today:

  • Review your spending. Is there anything you can scale back on or nix?
  • Negotiate your bills. You may be able to get a lower rate on things like car insurance or cell phone service just by calling your provider.
  • Buy smarter. It doesn’t matter if you’re getting groceriesclothing, or shopping online, there are countless ways to get what you need and come in under budget.
  • Earn more dough. Consider picking up extra shifts at work, getting a second job, taking on freelance clients, or selling some of your unwanted stuff.

Remember: While it’s tempting, be sure to use your budget wins and side income for your debt pay off and savings goals, not for brunch and a new pair of shoes.

 

Final Thoughts

It can be overwhelming to juggle multiple, seemingly-competing financial goals. But if you proactively map out what you need your money to do, you can strike a balance that allows you to live your best life.

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Why You Need Visual Goals For Your Finances

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This article was originally published at HiCharlie.com” – Share with permission.

 

Let’s talk money goals. What are yours?

If you have a big, audacious financial goal, it can seem really overwhelming — maybe you’re wondering how you can keep yourself motivated, or how to tackle the goal in the first place.

What if there’s a fun way to do it that also gives you the opportunity to  unleash your creativity?

 

Visual Goals FTW

Yup, I’m talking about turning your goals into a visual masterpiece. Aspiring Rembrandt or not, being able to see your goals can increase your chances of achieving them.

Whatever your goal is, achieving the dang thing can see scary. I know when I had a goal to save for a down payment on a house, I had no idea how I was going to set aside tens of thousands of dollars. However, creating a visual goal serves two purposes — you see the tangible effects of your goal and break it down in a realistic way. It’s like eating an elephant: you eat it one bite at a time.

What do I mean by visual goals? Simple: you’re creating a way to track the progress of your goals alongside the overall goal. There are a myriad of examples online, like debt payoff charts you color in, or coloring pages for savings goals.

Let’s look at an example:you decide you want to set aside $10,000 to replace your roof. You can create a large poster replica of your home and draw roof shingles where each one represents $100 towards your goal. Every $100 you set aside, you get to color in one roof shingle.

Or let’s say you want to save $2,000 for your next family vacation. It can be hard to imagine with bills to pay off and everyday expenses piling up. Instead, break it down starting with a drawing of your dream spot.How about $5 or $10 dollars here and there? Soon, those $5 or $10 dollars will stack up — and you’ll get a buzz every time you color in another palm tree on the picture of an island you drew to represent your dream vacation.

Sound silly? Get this: People who write down their goals are 33% more likely to achieve them. Visual goals can absolutely help you work towards them.

 

Turn It Into a Game

Setting visual goals can be fun because it gamifies the saving journey.  Make a cool poster or a chart that you keep in your where you see it everyday, you want to fill it up or have it all colored in. Every time you pass by you’ll think, “How can I color in that flower petal faster?” or, “OMG only $300 until I get to color that bike tire in!”

Even creating the visual goal tracker can be a game in and of itself. First, you’ll need to think about what you want it to look like and then find a way to break it down into parts you can color. It’ll also force to you crunch numbers to see what the final goal amount is, and what each milestone will be. (And determining reasonable benchmarks! As in, if you’re looking to pay down debt, what’s more realistic: $50 or $100 increments?)

Ultimately, you’ll start to think of money as something other than a source of worry. Come on, you’re coloring in a poster or creating a piece of art. It’s not just about being good or bad with your money, it’s about finding a fun way to track your accomplishments as you work towards your goals.

 

I’m Convinced. How Do I Create One Of These Things?

There’s no right or wrong way to create a visual goal. As long as you make it clear what your overarching goal is and breaking it down in increments, let your inner Picasso shine!

For example, Amy Jones from Map Your Progress creates posters of swirls that join together to form one large image. If you use one of these or something similar, each swirl would represent part of your savings or debt slaying goal.. Your overall goal is achieved when the whole thing is colored in.

Start by determining what your goal is — get specific in the dollar amount. Maybe you have credit card debt to pay off, or you want to set aside money for your 10th-anniversary trip. Once you determined the total amount, break it down into smaller chunks. For example, f you’re setting aside money to pay off $5,000 worth of credit card debt, divide that amount by 50, so each part of your visual goal represents $100.

Not into coloring inside the lines? Get as creative as you want.

Here are some examples to get your artistic juices flowing:

  • Build a Lego castle and as you pay down your debt, take out one block until it’s totally demolished.
  • Print some cute labels and stick them onto a bunch of jars. . As you fill them up with literal cash (or use something like buttons to represent the money), change the labels or screw on a lid to indicate that jar is filled.
  • Create a large thermometer (like the ones you see for charities when they set donation goals) and set it on an easel in your kitchen for your family to see.
  • Create a spreadsheet in your planner or bullet journal — there are TONS of templates out there.
  • Use a wall in your home and great an image using sticky notes. Take down a sticky note until it’s all gone!

You know you have the drive and the determination. Now go attack those financial goals.

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Program Update on REITs Symposium 2019

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Dear all readers, I am invited by ShareInvestor and REITAS as one of the panelists to share my view on whether REITs is still a viable investment in the coming REITs Symposium.

Please see the schedule below:

Panel Discussion #1 – REITs: Still a Viable Investment? (2:10pm to 2:40pm)

Panelists

  • Mr. Tan Tze Wooi, CEO, CapitaLand Retail China Trust
  • Mr Kenny Loh – Senior Consultant of an Independent Financial Adviser
  • Mr Chan Kum Kong – Head of Research & Product, SGX
  • Mr Jonathan Koh, Director, Research, UOBKH
  • Moderator – Nupur Joshi, CEO, REITAS

 

Panel Discussion #2 – Insights to Best Performing Singapore REITs (5:00pm to 5:30pm)
– Anthony Ang, Sasseur REIT
– Paul Chew, PhillipCapital
– David Kuo, The Motley Fool
– Calvin Neo, Nikko AM
Moderator: Dinesh, DollarsAndSense

 

I will be teaching REITs 101 in REITs Symposium, please see the following time slots on different topics:

  • REITs vs Physical Properties (10:15am -10:30am)
  • Metrics to Evaluate a REIT Part 1 – Yield (12:00pm -12:15pm)
  • Metrics to Evaluate a REIT Part 2 – Price/NAV (1:15pm -1:30pm)
  • Metrics to Evaluate a REIT Part 3 – Gearing Ratio (2:45pm -3:00pm)
  • Building a Diversified REIT Portfolio (4:00pm -4:15pm)

 

If you are the following audiences and keen to learn about REITs,  you can click the REITs Symposium here to register.

  • Real Estate or Property Investors
  • Beginners or Newbies who want to learn about investing
  • Investors who want to look for alternative ways to diversify your portfolio
  • Investors who have ZERO knowledge in REITs.
  • Fund Managers, Private Bankers, Relationship Managers, Financial Advisors, Investment Advisors, Insurance Agents, Property Agents who want to expand your investment knowledge into REITs (an alternative ways to property investing) for more holistic investment portfolio advisory to your clients.

First 30 signups via promo code (msinvesting) will be entitled to a mystery gift and it’s redeemable on ground at ShareInvestor’s booth. Click the REITs Symposium here to register.    http://www.reitsymposium.com/index.html

 

REITs Symposium Registration

 

 

See you at REITs Symposium 2019 on May 18, 2019!

Continue ReadingProgram Update on REITs Symposium 2019