Ilyce Glink, Author at Best Money Moves

Why There Isn’t Enough Money To Pay Bills and Save?

by Ilyce Glink | Aug 24, 2016 | Blog

Ever wonder why there often isn’t enough money at the end of the month to get all of your bills paid and save money?

You’re not alone. According to a new survey published this week by the Certified Financial Planner Board of Standards (CFP Board), nearly half (48 percent) of all Americans “don’t always have enough money left over to save after paying their bills.”

“Our economy has come a long way since the depths of the recession, but most Americans up and down the socioeconomic scale are still facing significant pressures in saving for today and tomorrow,” said CFP Board Consumer Advocate Eleanor Blayney, CFP®, in a press release. “An inability to start saving early, debt and stagnant incomes are just a few of the factors driving Americans’ financial anxiety.”

The survey found:

More than a third (35 percent) of Americans surveyed have seen a significant decrease in household income;
A little over a third (34 percent) say that the amount of debt they have prevents them from saving;
Only half (51 percent) save money regularly on a monthly basis;
Roughly 1-in-3 Americans (30 percent) has experienced a job change in the past three years;
About 1-in-5 (20 percent) of those polled has experienced a major medical expenditure in the past three years;
Half of Americans (51 percent) believe credit card debt is the most important debt to pay off, followed by mortgages (36 percent) and student loan debt (19 percent);
More than one-third (36 percent) of Americans anticipate working in retirement.

(While the survey found that some Americans are feeling more positive about the economy as a whole, it’s typically those with a higher net worth who have the most positive economic views. Which isn’t that surprising.)

If you look at the list, it’s clear that a third of Americans have seen a significant decrease in household income, are trying to pay down a mountain of debt, and have experienced a job change in the past three years. Debt, including medical debts or expenses, can eat a huge hold in anyone’s budget.

What can you do? At Best Money Moves, we believe in getting your debt paid down as quickly a possible, and we have tools that help you do that (without trying to trick you into buying something or reselling your information to a credit card company). But here’s the big secret: Throw as much cash as you have at your debt that carries the highest interest rate. And, keep doing that as often as possible, while always being sure to make your minimum payment.

That’s it. There’s nothing more magical about debt repayment than that. Once you pay down a debt, use all the extra cash you’re “saving” each month to pay down the next debt, and so on. What you’ll see is that paying down debts is possible and can be done fairly quickly. You just have to make the commitment to put it first in your financial life.

I will add this: Every time you pay down a debt, you’re saving the interest you would have paid. That interest equals the net interest rate you’re paying. So if your credit card has an interest rate of 15.9 percent, every dollar you prepay will effectively “earn” 15.9 percent. And these days, it’s hard to get that much of a return anywhere, let alone in a savings account.

So, get your debts paid off and start saving for your goals and dreams, whatever they may be.

Ilyce Glink is the Founder/CEO of Best Money Moves, and a nationally-syndicated, award-winning personal finance columnist, best-selling author and radio talk show host. Contact her today to get a free trial and start lowering your employees’ financial stress levels.

Employees’ Financial Stress Mounts as Millions Are Priced Out of the Housing Market

by Ilyce Glink | Aug 19, 2016 | Blog

Economists and industry experts have been trumpeting the recovery of the housing market, which is good news for anyone who already owns one.

But that recovery isn’t necessarily good news for people looking to buy a new home. In fact, it’s pushing the dream of homeownership farther out of reach for millions of Americans.

The Wall Street Journal reports that while home prices rose in 83 percent of the nation’s major real estate markets last quarter to just 2 percent below their July 2006 peak, those gains are due mostly to a lack of new supply, not an increase in buyers.

Unfortunately, there aren’t a lot of new homes being built yet and those that already exist are getting more expensive, making it more difficult for people to achieve a major part of the American Dream.

On top of that, potential buyers (including many of your employees) may still be struggling with damaged credit, huge student loans and tougher post-recession credit standards.

This helps explain why 200,000 to 300,000 fewer households are buying a new home each year than we would see under “normal” market conditions and overall homeownership has hit a 51-year low of 62.9 percent. (And, this in a time where mortgage interest rates are just about at all-time lows.) The situation forces folks to continue renting a place to live, which causes rents to rise due to this increased demand, further stretching their finances and reducing their ability to save more money for a downpayment on a home.

See how the cycle feeds itself?

While you can’t control the real estate market, you can control your finances (to some extent). That’s where Best Money Moves comes in. We help employees dial down their financial stress, strengthen their financial foundation and put their version of the American Dream – whether it’s buying that house with a white picket fence or retiring early – within reach.

We do so by helping you dial into your biggest financial stressors and providing the education, resources and personalized advice from accredited money coaches you need to help you take back control.

Sound like something your company (or its employees) could use? Email us at ilyce@bestmoneymoves.com to learn how you can get a free trial.

Making Americans’ Financial Lives Great Again

by Ilyce Glink | Jul 22, 2016 | Blog

In the wake of the Republican National Convention, it seems appropriate to lay out some steps ordinary Americans can take to make their financial lives great again – or, if yours has never been particularly strong, then at least make it better.

Stop spending. In my books on personal finance, I’ve often recommended a Go To Zero strategy for managing your money. Here’s how it works: Imagine all of your expenses on a table. Now, take your arm and wipe them all off. You’ve now got a clean slate, and you can put expenses back on the table in the order of importance: Shelter, utilities, food, transportation, etc. When you run out of cash in your budget, you simply stop spending.
Start saving. Another strategy is to stop spending well before you run out of take home pay and use that extra cash to start saving. Or, if you are carrying debt, simply use the extra cash each month to pay down your debt faster. Remember, every dollar of debt you prepay effectively earns you that interest rate. So, if you prepay $1 of debt at an interest rate of 14%, you’ve effectively earned 14% interest on that dollar.
Make paying off non-deductible debt your top priority. If you’re paying to service your debt, you’re not going to get rich. You’re not going to have a great financial life. And, you’re not going to get rid of the anxiety that comes along with having crushing debt. So, start prepaying your non-deductible debt as fast as possible. In addition to feeling more in control of your financial life, you might just notice that you’re sleeping betterl.
Practice “deferred gratification.” One thing about today’s world, everything happens instantaneously, almost miraculously. But when it comes to money, nothing good happens instantly. That why practicing deferred gratification can have such a positive effect. By simply pushing off a purchase (even one you think you must have), you’ll quickly see you can live without it. And if not, then at least you know you’re making a truly “can’t live without” purchase decision.

I’ve noticed that if I just say “no, for now” I generally don’t miss whatever it is I’ve done without. And, 9 times out of 10, I never get around to purchasing the item. Even if it’s on sale. I just figure out a workaround or do without. If you make all of your purchases thoughtfully, instead of gratuitously, that’s how you’ll make your financial life great again.

And, as Americans, living the financially great life should be an inalienable right.

Ilyce Glink is the Founder and CEO of Best Money Moves. She is also the author of 13 books on personal finance and real estate and the CEO of Think Glink Media, a digital content agency.

A Big Money Lesson For Only 60p (Less Than $1)

by Ilyce Glink | Jul 19, 2016 | Blog

More than 30 years ago, as I was packing for my junior year abroad, my mother handed me a check for around $2,500 and said, “This money has to last all year. You’d better start keeping track of what you’re spending.”

And with that, I went off to Wales to study music and literature. When I got there, I deposited the check in my local Barclay’s branch on High Street. The dollar was strong then (close to where it is now), so while my dollars went pretty far, my funds weren’t unlimited by any stretch of the imagination. I had to watch every pound or penny I spent.

For 60p, I bought a small black notebook and stuck it in my pocket. Of course, this was 1984, before the Internet, before cell phones, and certainly before Venmo, PayPal and apps that helped you “save your change.”

What I got was my first big money lesson, and all for only 60p, or less than $1.

I had to do it all by hand. Dutifully, I recorded the beer and “still orange” (a non-alcoholic orangeade of sorts) I drank at the local pub. I’d record the pounds I spent buying bottles of full-fat milk (delivered fresh every morning to the local shop from the local farm – before any of us understood the meaning of the word “organic”) and hot butter muffins from the local bakery. At night, we’d go out after the pub closed to the local Chinese take-out and ordered a very greasy egg roll stuffed with bean sprouts, what I’d refer today as an Anthony Bourdain late-night special.

No expense was too little to escape the tracking, and my little black book soon became worn around the edges as I recorded train tickets to London and Inverness, Scotland, the cost of a boat ride across the Irish Sea, entry tickets to museums and dances, dinners out with friends, and a flight to the continent.

I managed pretty well, though when running a bit short of funds in the late spring, I took a job at a local Welsh pub pouring drinks and making fish and chips. I was paid a little and got some tips (but if I’m being honest, I’d have paid them to let me do it – that’s how much fun it was). Still, it was enough to augment my dwindling savings and allow me to plan for additional travel during the summer months, when I found myself calculating whether it would be cheaper to buy a EuroRail pass (which provided unlimited rail travel for a month) or individual tickets. After a bunch of calculations (by hand) and a lot of phone calls at the corner phone booth, individual tickets won out.

When I look back, I think that this little black book set me off on a different course in life. I learned that I could stretch even a tiny amount of money a long way (a “dime into a dollar”). I learned that I could be self-sufficient and that I was just fine with what today I’d call “deferred gratification.”

My first big money lesson. I still have that little black book somewhere. Once in awhile, I pull it out to look at where I spent my money – every penny of it – during that year abroad. It reminds me that anything is possible, if you put your mind to it.

Ilyce Glink is the Founder and CEO of Best Money Moves. She is also the author of 13 books on personal finance and real estate and the CEO of Think Glink Media, a digital content agency.

5 WAYS BEST MONEY MOVES MAKES YOU SMARTER ABOUT MONEY

by Ilyce Glink | Jul 11, 2016 | Blog

When it comes to money, it’s easy to feel like a dummy.

After all, the entire financial services industry is set up to confuse you. That way, you’ll feel relieved and, yes, even grateful to pay someone to do things that you should be able to do yourself – that is, if you had the confidence and knowledge to take those first few steps.

Best Money Moves is all about building up your confidence. And we do it in a simple way – we teach you how to manage your money step-by-step. Here are 5 ways that Best Money Moves will make you smarter about money:

We help you measure your level of financial stress. Sometimes, the problems pile on. it’s easy to feel as though you’ll never be able to pick just one to work on. By measuring your financial stress in 14 categories, we do the sifting for you. We believe that by sorting through each of our stress categories, you’ll be able to prioritize your top problem more easily – and then we can help you solve it.
We show you the shortcuts – and how to achieve the best results. Whether you’re paying down debt or trying to save for a down payment on a car, we’ll show you how to “run the numbers” with the best of them – without trying to confuse you. Want to compare paying down your debt using the “snowball” vs. “avalanche” techniques? We’ll do the math for you and show you the “big secret” so-called experts want you to pay extra for.
We use easy-to-understand language designed to empower you. We’re not trying to confuse you into a big sale. Why? Because the only sale we’re interested in is to your employer. Instead, our whole goal is to help you better understand how money works, and how you can use it to your advantage.
We’re not trying to sell you anything. Most so-called “financial wellness” programs are about selling. They’re either trying to sell you products you don’t need or get assets under management. So, they build in a thin veneer of information designed to sell more stuff. at Best Money Moves, there’s no hidden agenda. We’re not trying to sell employees anything. We’re simply trying to help you engage with your finances in a more positive way.
Tools, calculators, award-winning content, contests, money coaches and more. Managing your money doesn’t have to be excruciatingly painful or boring. It can be entertaining, engaging and, yes, even a bit fun. At Best Money Moves, we’re always looking for another way to make this more fun, so you’ll spend more time reading, thinking and doing. That’s why you get points every time you do something with Best Money Moves, whether it’s reading an article, working on your budget, or measuring your level of financial stress.

We want you to succeed. We want you to pay down your debt faster, save more money, and avoid getting ripped off. And, we’ll be there with you, every step of the way. Contact us at Best Money Moves. We can help.