Making Americans’ Financial Lives Great Again

Making Americans’ Financial Lives Great Again

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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)

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

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

5 WAYS BEST MONEY MOVES MAKES YOU SMARTER ABOUT MONEY

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.