Tag: Automation

 

How to Budget on an Irregular Income

Understanding exactly how to budget can be difficult, even for someone with a consistent income. But, think about how complicated budgeting would be if you had an irregular income.

This is what millions of Americans deal with all the time.

Freelancers, small business owners, and salespeople all have incomes that can change from month to month. Sometimes the fluctuation can be drastic, and it can make it hard to save money.

If you find yourself in this situation, how can you develop a budget when you don’t know what your income is? Keep reading as we walk you through five steps to budget on an irregular income.

1. Calculate your bare-bones budget

The very first thing you need to do is calculate your bare-bones budget. These are the essential expenses that you need to cover each month. Make sure to include categories like housing (rent or mortgage), utilities, groceries, insurance, transportation (car payments, public transportation), and other essential costs.

Housing, insurance and car payments can be easy to factor in as the monthly amounts stay about the same. However, your utilities and groceries can fluctuate. To get an accurate figure, calculate how much you’ve spent, on average, for each category during the past 12 months.

While these are the critical expenses you need to cover each month, you should also include retirement, savings and debt payments. While these are not required, they are still important.

2. Add in your discretionary expenses

Now that you’ve calculated the bare minimum you need to get by, it’s time to calculate your discretionary expenses. These are things that you spend money on but can live without.

These expenses include going out to dinner, a date night at the movies, the cost of your daughter’s dance class, etc. Figure out how much you spend on these expenses, on average, each month.

Looking back through bank or credit card statements is a great way to locate these expenses.  Budgeting apps link Mint also do a good job of breaking down your expenses into categories.

3. Build up an emergency fund

Many of you have probably heard of an emergency fund. Its sole purpose is to cover an unexpected expense. If your income is always changing, an emergency fund is a must. The last thing you need is to have an emergency pop up during a lower income month and not have anything saved.

Simon Moore, a contributor to Forbes, recommends three to six months worth of expenses in an emergency fund. David Bach, a personal finance expert, takes it a step further and recommends that you save one year’s worth of expenses.

To get started, consider opening a Chime bank account. Chime’s Automatic Savings program is a great way to build your emergency fund. Here’s how it works: Each time you use your Chime Visa® debit card, Chime will round up your purchase to the nearest dollar and transfer the difference to your savings account. Plus, Chime makes it simple to save each time you get paid. As a Chime member, you can automatically deposit 10% of your paycheck into your savings account.

4. Pay yourself a reasonable salary

Having an irregular income can be stressful. This is why a budget is so important. It helps you forecast your monthly expenses. It also gives you the ability to see how much you have in your bank account so that you can perhaps pay yourself a salary.

To start, try paying yourself based on your budget the previous month. You can do this by combining the totals from your bare-bones budget and discretionary expenses and depositing that in your checking account on the first of the month. This will cover the entire month worth of expenses. Everything else you might have made will be put toward either short- or long-term savings.

By doing this, you are never spending more money than you actually have. Instead, your income is based on the past.

5. Pay your bills using a zero-sum budget

If you’ve never heard of a zero-sum budget it’s a fairly simple budgeting method where every dollar has a purpose.

At the end of every month, your income minus your expenses should leave you with zero in your checking account. For example, if you have $200 left in your account at the end of the month, your job isn’t done. That $200 needs to be allocated to something. For example, perhaps it will go toward debt payments, retirement or short-term savings.

So, to pay your bills using a zero-sum budget, you need to start with your list of bare-bones budget items and discretionary expenses. Go down the list and pay each item, starting with the most important. Once all those are taken care of, see how much money is left over. Remember what we talked about – every dollar has a purpose. Look for a place to allocate the extra cash.

One important thing to note with a zero-sum budget is that you need to pay attention to your variable expenses throughout the month. Make sure you’re staying below the amount you budgeted for items like groceries, clothes and anything else that fluctuates.

Irregular income doesn’t need to complicate the budget

You can still budget – even with a fluctuating income.

As long as you stick to your budget and live on the income you generated from the previous month, you should begin to see your financial situation improving. Are you ready to give it a try?

 

Stop These Six Bad Money Habits and Save More Money

It’s hard to resist meeting up with friends after work for drinks, or buying that new pair of shoes right after you get paid.

But, if you want to save more money, you may have to do something to curb your spending habits. For example, do you buy a sandwich five days a week at the local bodega next to your office? Do you grab a latte every day on your way to work? Indeed, these purchases add up – fast.

Here are six habits you can easily change in order to save more money.

1. Buying coffee every day

Did you know that buying coffee Monday through Friday – especially cappuccinos and other fancy coffee drinks – can run you $25 a week or more? That’s more than $100 a month and $1,300 a year!

Instead, try brewing coffee at home and taking it with you to work. If you don’t have a coffee maker at home, purchase one on sale. Heck, you can even splurge on a fancy Nespresso machine. I bought one on sale for $199 last Christmas and absolutely love it. Yes, it was expensive. But, I now make my own lattes at home every day instead of spending five dollars a day for these drinks (yes, that’s $35 a week!)

Think of it this way: Less than six weeks of coffee runs paid for that fancy machine, which included a starter pack of 24 coffee pods. Each pod now costs around 90 cents. This leaves $4.10 a day on the table – or almost $1,500 a year to put into a bank account.

2. Purchasing lunch at work

Buying lunch every day while you’re at work will run you a pretty penny. According to CNBC, if you eat lunch out, you’ll spend an average of $10 per lunch, or about $2,500 a year.

Yet, if you make your own lunch, you’ll spend only about five to six dollars per lunch, leaving you with an extra $20-$25 a week or $1,000-$1,300 that could go into your savings account.

3. Paying full price

We get it: Not everyone likes to shop for deals or make use of those reams of CVS coupons like I do. But, you don’t have to be an expert coupon clipper to make a few small money-saving moves.

For starters, you can use shopping apps that will give you coupons, provide you with cash back or find you the best deals. Some top apps in this category include Honey, Ebates, Ibotta, and RetailMeNot.

Looking for local restaurants, activities or even a new gym? Before plunking down full price, search for neighborhood businesses on Groupon. For example, I wanted to try barre classes but I also know that boutique barre studios are expensive. So, I purchased a 10-class pass for about $79 on Groupon (or less than eight bucks a class) to a popular barre franchise. I used those classes but also discovered that I would prefer cardio classes to barre. That was a good thing as the regular price for a 10-class pack is $230! All told, using Groupon meant I saved $151.

4. Not sticking to your budget

A budget helps you stop overspending and get ahead financially.

If you haven’t created a budget yet, now is the time to do so. And, if you have a budget and still overspend, now is the time to buckle down. Why? Because if you don’t stick to your budget, it’s difficult to reach your financial goals and save money.

For example, if your budget only allows for $100 a month of “fun money” and you spend $200, that extra money has got to come from somewhere. It may mean you’re not paying off as much of your credit card debt, or you’re not saving $100 a month. Instead, commit to staying within your budget and perhaps figuring out ways to earn a bit more money each month. For instance, you can start a side hustle like driving for Uber or Lyft, walking dogs, or even teaching Pretzel Kids yoga classes.

Pick something that you can do around your schedule with little to no start-up costs. Most importantly, remember that you’ve got to live within your means if you’re going to save money.

5. Overspending on credit cards

It’s easy to spend too much with credit cards, yet this can cause you to go into debt and lead to a never-ending cycle of racking up interest. This, in turn, makes it hard to save money as any extra money you have may be going toward paying down high credit card balances.

To avoid this, try taking a break from your credit cards. Instead, use your debit card or cash. This way you’ll be more likely to buy things you can afford. Better yet, if you’re a Chime member, you can save when you spend by using your Chime Visa Debit Card. Each time you make a purchase, Chime will round up the transaction to the nearest dollar and deposit this extra change into your Chime Savings Account.

6. Not automating

Automating is our No. 1 money-saving hack. Chime helps you do this by rounding up your debit purchases. But did you also know that you can automatically save money with every paycheck?

This hack helps you save as you won’t have to manually transfer money to your savings on your own. Better yet, you won’t blow that cash on the day you get paid on a purchase you’ll later regret. Chime members, for example, can automatically save 10% of each paycheck into their Savings Account. This way your hard-earned money hits your savings automatically. Out of sight, out of mind.

Are you ready to save more money?

Even if saving money is a struggle, there are ways you can start saving right now, simply by changing a few habits. For starters, try brewing coffee and making lunches at home, shopping for deals, and sticking to your budget. From there you can take a break from your credit cards and use your debit card or cash instead. Lastly, make savings automatic.

If you follow these six simple tips, you’ll be on your way to changing your financial habits and saving more money. Are you ready to give it a try?

 

Chime’s Automatic Savings Features

When it comes financial wellness, saving money can feel like an uphill battle.

Just like how overdoing it with carbs and sweets can sabotage your health, spending more than you can afford can be disastrous to your money.

Okay, duh. Knowing what’s good for you is one thing. Actually doing it is another. If it were easy, we’d all be rock stars with money. But changing habits and shifting mindsets can take a ton of work. The good news is that there are a few simple, no-brainer tactics to save more money. My favorite one? Automatic Savings.

Here’s why auto-saving is so awesome, and how Chime’s two features, Save When You Spend and Save When You Get Paid, can help your money situation.

Why Auto-Saving Is King

As a finance nerd who has been obsessed with money since I was young (weird but true), I’ve found that the less I have to think about managing my money, the better. Granted, I do spend more time than the average person looking at my spending plan and poking around money apps. But on the day-to-day, I don’t quibble over every purchase, or fret over whether I’m saving enough.

That’s because I’ve put as much as I can on auto-pilot. I’ve set up auto payment for most of my bills, and I auto-save for my goals. This includes tucking away funds for a trip to Vietnam, a splurge fund, and a birthday bash for my mom’s milestone birthday next year. I can enjoy guilt-free spending and feel good that my money is being squared away for things that are important to me.

If you’re concerned that auto-saving might mean a greater chance that a fishy transaction might slip past you, set up alerts. I check my main checking account every few days and get alerts for major transactions through a money-saving app.

So how can you get started auto-saving? If you’re a Chime member, here are two top ways:

Save When You Spend

How it works: Every time you pay a bill or make a purchase with your Chime Visa® Debit Card, the Save When You Spend feature automatically rounds up transactions to the nearest dollar. These round up amounts are transferred from your Spending Account into your Savings Account.

For example, if you spend $1.50 on a cup of coffee in the morning, the feature will round up your transaction to two dollars, and you’ll save 50 cents. Did you throw down $8.25 for lunch at the neighborhood sandwich shop? Save When You Spend will round it up to nine dollars, and 75 cents will go toward your Savings Account.

How to make the most of it: The more you use your Chime Visa® Debit Card, the faster you’ll build your savings. So, use it to pay for everyday purchases and bills, and watch your savings grow.

You’ll also want to determine how to best use the money in your Savings Account. It can be used for when you’re having a slow month workwise and barely scraping by. Or, you can use it to cover bills. Or, maybe you can use the funds to pay for unexpected expenses or minor emergencies.

The beauty of it is that you access funds in the account immediately. So there’s no lag time between when you need the funds and when they are available to you.

Save When You Get Paid

How it works: With Chime’s Save When You Get Paid, you can opt to automatically save 10 percent of each paycheck, with a minimum amount of $500. So, if you earn $500 one week from an employer, $50 of that will go into your savings.

If you get a steady paycheck, and your take-home amount for each paycheck is $1,500, then you’ll be stashing away $150 each pay period.


How to make the most of it:
If you are a freelancer like me and aren’t sure how much you can reasonably save each month, start by linking your direct deposit with the employer that makes up the least amount of your income.

On the flip side, if you’d like to get aggressive with your saving, set up direct deposit with your employer that makes up the lion’s share of your monthly earnings. And, like with the Save When You Spend feature, you’ll want to decide how to use your saved up cash.

If you need to pay taxes every quarter, perhaps you can use that money for this purpose. Or, maybe those funds can be set away for another reason. By saving with intention, you can make the most of that 10 percent of each paycheck.

Science to Back It Up 

You don’t have to take my word for it. There are actually studies that prove how auto-saving can make things easier. For example, The Center for Advanced Hindsight, a behavioral science lab, conducted an experiment on getting people to spend less – and budget wisely – right after they get a paycheck. The study found two major barriers to get people to spend less:

1. Cognitive load. Having to check your balance regularly to figure out if you can afford daily purchases is a royal brain drain. This led to a never-ending process of weighing different opportunity costs, and then being blindsided by changing or unexpected expenses.

2. Friction to saving. Those surveyed revealed that committing to an automated direct deposit is tough if the amount they can save changes from month to month. What’s more, there was too much friction to make manually saving small, incremental amounts worth the trouble.

With Save When You Spend, however, you’ll be spared the mental exhaustion. You won’t be quibbling about whether you can afford a given purchase. And, committing to saving a percentage of your paycheck each payday with Save When You Get Paid serves a similar function. If you’re a gig economy worker and are juggling a handful of different jobs with fluctuating income, it’s a lot easier to save a small percentage of each paycheck.

Start With the Easy Stuff

Financial wellness is a muscle, and forming the habits and behaviors so you can grow wealth is a long and hard journey. Starting with something as simple as automatic savings can give you a push in the right direction, as well as help you build momentum. Onward!

 

How to Stop Taking Money out of Your Savings

Dipping into your savings account constantly can be a sign that you’re letting FOMO control your spending habits.

We’ve all been there. One week you’re patting yourself on the back for growing your savings. And the next week you’re trying to transfer money back to your checking before you get socked with an overdraft fee.

No need to beat yourself up over the past. But, if you want to change your money habits for the better, here are some tips to grow your savings.

Have a Separate Emergency Fund

Create a separate account devoted only to real emergencies. By real emergencies, I mean paying for a new engine for your car so you can get to work.

If you don’t have an emergency fund yet, make this your main money goal and build it up to at least $1,000. The longer you go without an emergency fund, the longer you’ll keep dipping into your primary savings account to pay for these expenses. Worse yet, you can go into credit card debt.

Identify the Trigger

Why do you keep dipping into your savings? Are you overspending when it comes to eating out? Or, maybe you forgot to save up for larger expenses like your car registration.

Identify what is causing you to spend and this way you can learn how to fix it.

For flexible spending categories, it can be easier to stick to a tight number if you limit yourself to cash. For example, say you are going out to lunch and Target with a friend. If you know you may overspend, take the exact amount of cash budgeted and leave your bank card at home. You’ll think twice before ordering an extra drink or buying that cute shirt.

Out of Sight, Out of Mind

When I wanted to stop taking cash out of my savings account, I opened up a new account at a different bank and set up automatic bi-monthly deposits. Since it was not my main bank, I grew my savings account as I was less tempted to withdraw money from another bank.

Get a New Mindset

When you buy a seven dollar burrito, you don’t ask for your money back a week later because your account is a tad short. When you made that purchase, you counted that money as gone forever.

You need to adopt a similar mindset with your savings.

So, deposit money into your savings account and consider it gone forever. This means that when you are $50 short before payday, you may have to curb your spending.

Another powerful mindset tool is to give your savings account a purpose. There is no fun in saving for a vague someday. Take time to think about why you want to save money and how much money you need to save.

For example, if you want to save $20,000 for a down payment for a house, this gives you something to really save up for. Every time you deposit $200, you’ve hit one percent of your goal. You’ll be less tempted to take money away from this goal, too. Just think: transferring $50 from this savings account to your checking account means you’re slipping further away from your home ownership dream.

Set Up Rewards or Punishments

Are you motivated by the thought of getting a reward? Do you want to avoid punishment? Knowing which one of these is a greater motivator can help you break the habit of dipping into your savings.

If rewards motivate you, for example, set up two to three savings goals and rewards. For instance, if you save $4,000, perhaps your reward is to buy a new gaming system guilt-free.

If fear of punishment motivates you, recruit your friends or family members to help. What embarrassing thing will you have to do if you don’t keep your savings account balance in check? Perhaps the thought of wearing a loud, outdated suit from your dad’s closet to work will be just the thing to keep you saving faithfully.

Let Your Bank Account Do the Work for You

Use the power of automation to make saving painless. The point is: When you don’t have to think about saving money, it’s easier to save.

So, consider automatically depositing money from your paycheck into your savings account – on the day it hits your account. Chime members can opt for 10% of each paycheck to go into their savings.

Another way Chime helps streamline your savings is with the Chime Visa® debit card. Just use your debit card to spend as you usually do, and Chime will round up the transaction to the nearest dollar. The difference is then transferred to your Savings Account.

Max Out Your Transfer Allowance

The Federal Reserve Board sets a limit of six transactions per month on certain transfers and withdrawals from your savings account. The reason? To encourage you to use your savings to actually save money – and not spend it.

Some Chime members use this rule to their advantage to cut out the temptation to dip into their savings. How? They initiate six one-cent transfers at the beginning of the month from their Savings Account to their Spending Account. After the six transfers, they can only transfer money to their savings, but they cannot withdraw it.

Every savings account has this same rule, so you can use this hack at any bank. However, it’s important for you to understand your bank’s rules to ensure you don’t get dinged with unnecessary fees if you try to make a seventh withdrawal for the month. Along these lines, Chime will never charge you fees, so you may want to consider switching to a bank that will actually help you get ahead financially.

You Can Do It

Breaking bad money habits takes time and effort.

But, as you can see, there are many ways you can develop healthy money habits to save more money. Why not start right now by setting yourself up to get paid early?

 

The State of Savings in America

During the recent government shutdown, thousands of federal workers filed for unemployment. While the 35-day shutdown wasn’t the employees’ fault, it did reveal their precarious financial situations.

“It is concerning that government workers with stable employment can’t make ends meet when their next paycheck is late,” says Pauline Paquin, owner of Frugaling.

“Being financially resilient is important because charging your card or resorting to payday loans is very expensive.”

The thing is: These public servants are the rule, rather than the exception. Only 39% of Americans could cover a $1,000 emergency with money from their savings. And, 19% would have to finance an emergency on a credit card, while 17% would have to borrow the money and 13% would have to reduce spending on other things.

Here’s more on the dire state of savings in America — and how you can fight back with better financial habits and a bank that has your back.

The United States of Spending

Wondering how the U.S. is doing when it comes to saving? The numbers should tell you everything you need to know:

“We live in a society where immediate gratification is something most of us think we deserve,” explains Paquin.

“We work hard, we should treat ourselves. But we fail to see the long term effect of having everything we want right now.”

Those long-term effects can include a minor emergency causing you to lose your car, then your job, then your apartment. Or they can include never being able to retire, and forcing your children to support you in old age.

“Americans struggle to save because we aren’t taught to think about money as a tool to reach our goals,” says certified financial educational instructor Galit Tsadik.

“We think of it as only something to satisfy our immediate needs. There is also this misguided notion that you need to have a lot of money to start saving or that you need to put big chunks away in order for it to be worth it,” says Tsadik.

Three Ways to Save More Money

The truth is: You can start saving money any time, with any amount. Although it may be difficult at first, making saving a habit will pay off in the end.

Here are three expert tips to get you on the right track.

1. Change your mindset

“Keep your internal money dialogue positive, otherwise you’ve already lost,” says Tsadik.

She suggests replacing negative money thoughts like “I can’t save because I don’t make enough” with positive ones like “I’m putting this extra $5 toward my future.”

“As with anything in life, your attitude matters,” she adds.

Paquin says gamifying money can lead to mindset shifts, too.

“I like saving challenges, such as saving 1% of your income this month, then 2%, etc. — or saving all the $5 bills you come across,” she explains. “Money can be fun when you make it work for you.”

2. Track your spending

“You can’t change what you can’t see,” money saving expert Andrea Woroch points out.

“By writing down all your purchases and expenses, or inputting them into an app, you can visualize your spending habits and start the process of changing those that keep you from saving… i.e. impulse buys at Target or excessive entertainment spending.”

To do this, she suggests using an app like Mint, which tracks your purchases and alerts you when you’re overspending in a certain category. She also recommends tracking your debt repayment goals through Debt Free.

Speaking of goals, write them down.

“This gives you a sense of purpose. It allows you to set parameters, such as how much you want to save and by when, instead of trying to save with nothing to guide you. That’s when a lot of people get lost and give up,” says Woroch.

3. Start small — and automate

For Tsadik, the financial educator, successful saving is “all about paying yourself first.” She advises setting up a small weekly transfer — maybe just $10 — from your checking account to your savings account.

Wait a few weeks to see if you feel the pain. If you don’t (which I’m betting you won’t!), increase the amount. Wait a few weeks, then rinse and repeat.

“Before you know it, you will have a nice little savings cushion. And you will have gradually trained yourself to live on less and save more without feeling like you are depriving yourself of anything,” says Tsadik.

How Chime Can Help You Save

Ready to kick your savings journey into high gear? You need a bank you can trust — a bank like Chime.

Chime saves you money by, first and foremost, charging zero fees. Given that the average American pays $329 in bank fees each year, that’s a huge perk.

Beyond that, Chime also helps you save money automatically. As a Chime customer, you’ll have two accounts: one for spending and one for saving. Every time you make a purchase with your debit card, we round up the transaction to the nearest dollar — and transfer that amount from your spending to your savings account.

You can also set up automatic savings from your direct deposits, funneling up to 10% of every paycheck into your savings account. If your biweekly paycheck is $2,000, that means you’d save $5,200 in a single year. Imagine what you could use that for: an emergency cushion, a Roth IRA, or a seed fund for a house.

As Tsadik says: “Money should never be the end goal — it is what we use to get us to our end goal. When you save, you are building a financial foundation so that you can accomplish your dreams and live the life you desire!”

 

How This Millennial Side Hustled to Millionaire Status

You can call him king of the side hustle, but he will answer to Grant.

Grant Sabatier, 34 and a self-made millionaire, attributes his five-year rise to success to side hustling. Yes, he really side-hustled his way out of $30,000 debt and racked up one million plus in savings while working a 9-to-5 job.

But Sabatier, who runs Millennial Money, wasn’t always so money savvy. Not too long ago, his life looked like that of many millennials. In 2010, he lost his office job and moved back in with his parents with only $2.26 in his bank account. During this time, he applied to more than 200 jobs with no bites – not that he wanted to return to cubicle life.

The Google Searches That Changed Everything

Sabatier turned to Google for answers. And, his search for the best money books led him to Your Money or Your Life by Vicki Robin and Joe Dominguez.

“I read the book and it completely changed my life,” he says.

“One of the co-authors, Joe Dominguez, actually retired at the age of 30, and it was so mind-blowing. I’d never heard of anything like that.”

Google also led him to the discovery of Google ads. He discovered that running Google campaigns for others was profitable. With the power of YouTube, he learned everything he could.

“The fastest path, I think, to six figures is just to get Google AdWord certified. Google offers a free certification exam, and it’s amazing. I mean, that’s how basically I made all of my money,” says Sabatier.

Not only did his new skillset earn him a digital marketing job in Chicago, but it was the foundation of his side hustle success.

The Many Side Hustles of Sabatier

Running one side hustle is a huge time commitment. Balancing 11 to 14 of them might be downright crazy, but that was Sabatier’s life at one point.

“I was working literally all the time,” he says.

He basically worked late at his digital marketing job to learn more from co-workers. He would then start his side business work after that and work as late as he could. He committed his weekends to the hustle, too.

“About three months in, I got my first side hustle gig, which was building a $500 website for a lawyer,” Sabatier says.

During this time, he started his own digital marketing agency. He also launched a second agency with two others. His businesses grew fast. Three months after his first $500 website, he sold his first $50,000 website.

“By the end of that first year, even though my full-time salary was $50,000, I’d made over $300,000.”

A Closer Look at Successful Side Hustles

You don’t need a dozen side hustles to see financial results. The majority of Sabatier’s side business income came from one area – SEO and digital marketing consulting. Here is a deeper look at his most successful gigs.

SEO and Digital Marketing

Since the beginning, Sabatier booked jobs in this niche. Yet, while his early start in the field proved lucrative, there are now scores of SEO experts for hire and competition is stiff. Does Sabatier still think this is a side hustle to pursue?

 

“Oh absolutely, I mean the Internet’s not slowing down. Certainly, areas are more

competitive than they were before, but demand just continues to grow for these skillsets.”

 

“That’s an important thing to note. Because just working to get a job is different than building a skillset that’s going to help you for the rest of your life. Having a diversity of skillsets in the digital space is setting you up for jobs that don’t even exist yet,” he says.

Domain Reselling

One of Sabatier’s favorite side hustles is buying and flipping domain names. He purchases domains from GoDaddy’s website and through auctions, and then sells them for a higher price. No website building required here.

“The simple rule of thumb is buying the highest value keyword domains,” he says.

“It’s very hard to buy a one-word domain now, but you can still buy two-word domains.”

He suggests combining two popular words and to stick with dot com names. How does he know which domains to buy? “It helps to really specialize in a niche that you know,” he says.

While Sabatier specializes in money and higher-ed domains, he is savvy when it comes domains in any industry. While watching Keeping Up with the Kardashians with his wife, for example, he noticed the way Kanye West was looking at Kim in her Miami store.

“You could just tell how smitten he was with her,” he says. “I was like, oh they’re totally going to date. So, I got on my phone and bought kimandkanye.com and kanyeandkim.com.”

While he can’t disclose how much he made on those sales, you can bet there were a few zeros attached to the price.

Other Side Hustles

You would need a book to detail all of Sabatier’s side hustle adventures. Speaking of books, Sabatier’s book Financial Freedom has a step-by-step framework to pitch, launch and grow a profitable side hustle.

 

For brevity’s sake, here is a list of some of his other hustles, besides Google campaigns, domain buying and selling, and building websites:

  • Concert and event ticket flipping
  • Dog walking
  • Launching a blog
  • Campers and moped flipping
  • Freelance white paper writing
  • Selling prospect leads to law firms

Words of Wisdom

“A side hustle’s a great thing to do if you have debt. People focus way too much on the debt that they have, and it stops them from going out and making more money,” says Sabatier.

“There’s a limit of how much you can cut back, but there’s not a limit to how much

money you can make. And so, you should spend your time trying to make more money.

The net ROI of that is going to be significantly higher than just cutting back over the long

term.”

 

On that note, go forth and side hustle.

 

How to Get Ahead If You’re Behind on Your Car Payments

Buying your first car is almost like a rite of passage. You’re officially an adult!

But then reality sets in. Having a car payment is a big responsibility and, with your other financial burdens (AKA student loans), things can get stressful  – fast. In fact, you may find that you are falling behind on your car payments.

This can be especially frightening because if you can’t make your payments, you run the risk of your car being repossessed by the lender. And, this can seriously hurt your credit.

So, what should you do if you find yourself struggling to make your car payments? We spoke to two experts who shared their tips for getting back on track financially. Read on to learn more.

What to Do If You’re Temporarily Behind on Car Payments

If you’ve recently faced tough times financially but expect to be back on your feet within a month or two, then your best bet is to negotiate with your lender. Kristy Runzer, CFP® and Founder of OnRoute Financial says it’s important to explain your situation in a clear and succinct way.

“Let them know you want to pay this loan back and that you would like to work together to find a solution. This will show lenders you’re serious and not trying to just skip out on the loan,” says Runzer.

After all, the last thing any lender wants is to spend time and resources to repossess your car. This is a lose-lose situation for both you and the lender. Runzer explains that by being proactive, you may be able to negotiate with your lender to extend your payment due date or extend the life of the loan to lower your monthly payment amount.

“Don’t be afraid to ask for what you want. The worst case scenario is that they say no to your request, but they will usually be able to offer some alternative solutions,” says Runzer.

What to Do If You Can’t Afford Your Payment for the Foreseeable Future?

If you’ve found yourself in a situation where it’s going to be tough to make your monthly payment, Bola Sokunbi, CEO and founder of Clever Girl Finance, says to consider one of these options:

  • Trade in your car for a cheaper model.

If you have too much car for your budget, you may be able to downsize for a more affordable model. However, be sure to check if the trade-in value of your car will be enough to cover the full amount of the original loan. If the value isn’t enough, you may be on the hook for extra payments on the original amount. This is why it’s so important to read the fine print and crunch the numbers before you agree to any new terms.

  • Consider going without a car…at least temporarily. “Take a full assessment of where you live. You may be able to get rid of your car altogether [if you are not upside down on your loan] and leverage public transportation,” says Sokunbi, also a certified financial education instructor. Other options include biking to work or carpooling with your co-workers. In fact, some companies may offer incentives for employees who walk, bike or take public transportation to work.
  • Buy a cheaper car for cash. Sokunbi says that you can “absolutely find a reliable enough vehicle for between $3,000 and $5,000 that will get you from point A to point B.”

It may take you a few months to save up to make this purchase, but then you will only have to worry about your auto insurance payment instead of a hefty car payment as well. Plus you’ll benefit from having peace of mind — and you can’t put a price-tag on that.

Genius tip: Find a side hustle to accelerate your savings goal. There are so many options out there from selling plasma to teaching English online to turning your spare bedroom into an Airbnb. Just a few hours a week could totally transform your finances within a few short months!

Improve Your Credit

Sokunbi explains that a lack of credit history is a contributing factor of high car payments for some millennials. However, by taking steps to build up your credit score, you’ll have a lot more options to choose from that will be easier on your pockets.

“With an improved credit score, you can expect to benefit from a better interest rate which will save hundreds or even thousands of dollars over the life of your car loan,” says Sokunbi.

This option worked well for me a few years ago. When I bought my first car in 2013, my car payment was $405 per month. Although I earned a relatively good salary at the time, when coupled with my student loan payment and rent, I didn’t have much of a disposable income at the end of each month. It took me about six months to build up my credit score by strategically opening a few credit cards and keeping my credit card utilization ratio below 10 percent. After that, I was able to work with my lender to reduce my payments to $300 based on my improved credit score. This, in turn, gave me much more wiggle room in my budget.

Next Steps: Steer Your Finances in the Right Direction

Once you get a handle on your car situation, then it’s time to take control over the rest of your finances. An excellent starting point is to pay yourself first. This means you pay yourself each time you get a paycheck  – even before you pay your bills. It might sound like a strange concept but it’s a huge game changer for anyone who wants to get ahead with their money. Paying yourself first helps you prioritize your financial goals so that you can get on a path to financial security!

 

How to Invest Small Amounts of Money

When you think of investing, you might think of wealthy finance types or people straight out of The Wolf of Wall Street.

But, in reality, everyone can invest for the future, and you don’t have to have a ton of money to do so. We’ve scoured the web for some great resources and found these 10 best ways to invest small amounts of money. Read on to learn more.

1. Invest with a robo-advisor: $10

If you’re not sure how to start investing, try a robo-advisor. A robo-advisor is an online investing platform that can help manage your money.

For example, you can try investing with Betterment, one of the bigger robo-advisors out there. There is a minimum deposit of $10 and the annual fee is 0.25 percent. Other fees are based on your account balance.

When you get started, Betterment will ask you what you’re investing for — such as retirement or a down payment on a house. After that, based on your goals and risk tolerance, Betterment will create a custom portfolio for you. You can get started at Betterment.com.

2. Invest your spare change: $0.01+

When you make a purchase, it can feel like your spare change isn’t that important. But we know that small amounts of money can add up fast. That’s why Chime offers a round up savings program.

Applying this same philosophy to investing, you can invest your spare change with Acorns, a micro-investing platform that takes your change and builds a portfolio for you. And, investing your spare change with Acorns will only cost you one dollar per month.

Through Acorns, you invest with exchange-traded funds and the company will build a portfolio based on your financial goals.

3. Invest in certificate of deposits (CDs): $0-1,000

One way to invest small amounts of money with not-so-much risk is through certificates of deposit (CDs). According to Investor.gov, “A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest. When you cash in or redeem your CD, you receive the money you originally invested plus any interest. Certificates of deposit are considered to be one of the safest savings options.”

You can typically get certificates of deposit from a bank or financial institution. The minimum investment may vary but could be between $0-$1,000. Though CDs are considered safer and less risky, it also means they don’t have as high returns as other investment vehicles.

4. Invest with Prosper: $25+

Online loan marketplaces bring borrowers and lenders together. One such marketplace is Prosper. Through Prosper, you can invest $25 as a minimum per loan. These personal loans are offered to creditworthy borrowers and you can earn around 5.4 percent, according to the historical average. The best part is that you can get your earnings deposited into your account each month. While this comes with a moderate level of risk, it may not be as volatile as the stock market. Get started on Prosper.com.

5. Invest in social good: $50

What if you could invest money to support causes you care about? Well, you can do this through impact investing. Impact investing, aka socially responsible investing, allows investors to support causes like green energy, clean water, gender equality and more.

Using Swell Investing, you can begin growing your money and supporting causes you love with an initial deposit of $50. There’s a 0.75 percent annual fee and there are no trading fees or expense ratios. While there is risk with any type of investing, at least this way you know your money is supporting something you care about.

6. Invest based on themes: $250

Investing can be confusing, but it becomes simpler when you focus on a specific theme that you care about. Motif Investing offers you a way to invest in specific thematic portfolios such as technology or sports. You do need a bit more money than some of the other options here, with an initial investment of $250.

Once you select a theme, Motif builds a custom thematic portfolio. Find out more information on Motif.com.

7. Invest in fractional shares: $5

Investing doesn’t have to cost a lot of money! That’s certainly true with Stockpile, where you can start investing with just five dollars. You can buy fractional shares of stocks and exchange-traded funds. There are no fees or minimums and it’s 99 cents per trade. There are also mini-lessons, so you can learn as you go instead of waiting to invest when you have everything figured out. Get started at Stockpile.com.

8. Invest in low-cost index funds: no minimum

Low-cost index funds are Warren Buffett’s secret weapon. Index funds track different securities on an index, like the S&P 500.

Index funds can have lower costs and can offer more diversification. While investing in the stock market can be risky, diversification of index funds can help manage risk. Fidelity, for example, offers the ability to invest in index funds with no minimums and no account fees.

You can get started with Fidelity or Vanguard.

9. Invest in your retirement with a IRA: no minimum

You may or may not have a 401(k) with your employer. But anyone can invest for their retirement with a Traditional IRA or Roth IRA (Individual Retirement Account).

Using a brokerage firm, you can set up a retirement account and begin investing in your retirement immediately.

As of 2019, the contribution limit for IRAs is $6,000 per year. While the main tax difference is paying taxes now (Roth) or paying later (Traditional), there are income limits with a Roth IRA. To invest the full amount in a Roth IRA, your income must be less than $122,000 for single filers.

10. Invest in a 529 College Savings Plan: $25

If you have children, you can invest in a 529 College Savings Plan to help save for their education. Using an app like U-Nest, you can open an account with just $25. U-Nest costs three dollars a month and takes five minutes to set up on your phone. You can get started at U-nest.com.

Additional resources: How to invest small amounts of money

Using these 10 ways to invest small amounts of money, you can start growing your money today. Here are some additional resources you may want to check out:

  • Fidelity:  Fidelity is a brokerage offering various investment products and education resources.
  • Vanguard: Vanguard is another brokerage offering varying products and education material.
 

How to Be Financially Productive in the Winter

If you live in many parts of the country, the winter seems to drag on. Instead of weekends at the beach or picnics in the park, you may be stuck inside, huddled in front of a fire and binging on yet another Netflix series.

But why not use these cold days to be financially productive? To help you figure out ways to improve your finances during the winter, take a look at these four tried-and-true tips.

1. Organize your taxes

Before you let out a long groan, we’re right there with you: Preparing your taxes is no fun. But, wouldn’t you rather be doing this now – when it’s dark by 6 pm and freezing outside – than in April when you could be having fun in the sun?

So, take the time now to organize your necessary tax forms, fill out a tax organizer, itemize any tax deductions, and figure out how much you can contribute to a retirement plan. If you have a salaried job and received a W-2 form, your tax prep may be pretty straightforward. But if you have a side hustle or are self-employed, your tax organization may take a bit longer. The key here is: Don’t wait until April 14 to file your taxes by the April 15 deadline. Besides, if you get ahead of the game, you can get your refund sooner.

Pro tip: Open a Chime bank account and get your tax refund via direct deposit. All you have to do is select “direct deposit” on your online tax return software and fill in your Chime Spending Account and routing number. As soon as your refund is automatically deposited into your account, you’ll receive a text alert and email from Chime. Cha-ching!

2. Audit your bank account and find ways to save

I don’t know about you, but I am much more eager to be out of the house when the weather is warm. So, what to do on a day when you just don’t feel like braving the harsh weather? Audit your bank account and see where you can save money. This way you’ll have more cash for a summer road trip, your emergency fund or your other savings goals.

Start by spending an hour on a cold winter day and looking through your monthly spending for the past three months (or elect to audit just the past month or some other time frame.) Take a close look at what you’re spending money on and where you’re spending it. Even if you think you know exactly how you spend your cash, you’ll be surprised by what you discover.

Here are a couple of examples of what I found on a recent bank account audit: My cable bill had crept up for the past three months, my spending on groceries seemed out of whack, and I still had my husband on my gym membership even though he never goes.

It was time to do something about this. So, I ended up switching from my cable provider to a fiber-optic network (long story short: we can’t cut the cable or fiber optic cord entirely because my husband won’t give up his local sports channels.) This will save us $50 a month right off the bat. Not only that but the new provider threw in a free year of Amazon Prime, Amazon Echo and two $50 Visa gift cards. Score!

As for the high grocery bills, I decided to try a meal delivery service with a discount code for $80 off the first month. I loved it so much much that I’m now paying the regular $55 a week for three meals a week. But, get this: I was spending $600 a month on groceries for my husband and I. That is now reduced to $250 a month. Add to that $220 per month for the meal service. This means our monthly grocery nut is now $470 a month, a $130 savings each month! Plus, cooking at home is now easier and more convenient, so we don’t order takeout or go out to dinner nearly as frequently. And you guessed it: This saves us even more money.

Lastly, I called my gym and removed my husband from my membership, saving me $30 a month. That’s what I call easy money in the bank.

The takeaway: You can find ways to save money on a cold winter day – simply by spending an hour auditing your bank account.

3. Budget better

Is your budget working for you? If not, don’t give up. There are lots of budgeting methods and the one you’re using now may not be a good fit for you.

What to do? Spend an afternoon researching different types of budgeting methods, including the 50/30/20 budget, the envelope method, and the zero-based budget. Figure out whether a different kind of budget would work better for your spending and savings habits. Factor in whether you need to save more money into an emergency fund or free up cash to pay down your debt. Think of this time of year as a great opportunity to dive in and make any necessary changes to your budgeting method.

4. Automate your savings

By now you’ve probably heard a thing or two about the benefits of automating. But are you taking advantage of this?

If not, sit down and implement simple financial changes that will allow you to automate your money, enabling you to save more cash without even thinking about it. For example, now may be a good time to switch to a bank that will help you level up your savings account. If you’re a Chime member, for instance, all of your purchases on your debit card can be rounded up to the nearest dollar. And this round up amount is then automatically deposited into your Savings account. On top of this, Chime will automatically deposit 10% of your paycheck into your Chime Savings account.

Chill out

We get it: Winter can be miserable. But instead of complaining about the weather, you can turn those cold, snowy days into financial opportunities. By following the four tips here, you’ll be able to get your tax refund sooner, create a budget that works, and find new ways to save money. And just think: Before you know it, you’ll be enjoying the spring with less financial stress!

 

How Chime Offers No Hidden Fee Checking Accounts

You’ve probably heard the adage Nothing in Life is Free. Well, we’re here to debunk this. Did you know that you can get a free Chime checking account with no hidden fees?

Chime is a mobile-only bank account that helps you save money automatically and manage your finances from anywhere. Now one of the fastest growing bank accounts in the U.S., Chime offers members a Spending Account, an optional Savings Account, and a Chime Visa® Debit Card. Rated the “Best Free Checking Account of 2018” by NerdWallet, Chime is on a mission to eliminate bank fees while empowering you to take control of your finances and save money.

Those pesky fees add up – fast. Did you know that the average U.S. household pays over $329 in bank fees annually, and that most Americans haven’t switched to a checking account with no fees? Pretty remarkable, right? If you’re ready to make the switch and kiss those fees goodbye forever, take a look at 5 reasons why Chime offers a no fee checking account, and how you can benefit.

1. Chime is committed to helping you get ahead financially

When you have to pay monthly fees just for having a checking account, this doesn’t help you pocket your hard-earned cash. Instead, banks profit off of you and Chime would rather profit with you. So, instead of charging you fees – like most traditional banks – Chime has turned the banking industry on its head. It makes no money off your no fee Spending Account, allowing you to keep all of your cash. How does Chime make money? Good question. Here’s the answer: Every time you use your debit card, Chime earns a small amount from Visa (paid by the merchant.)

2. Chime offers an awesome banking alternative to big banks

Did you know that the five largest banks in the U.S made more than $34 billion in overdraft fees alone in 2017? Chime, along with other challenger banks, want to change this with no fee checking accounts and debit cards that empower you to save money. Yet, regardless of where you bank, here’s a tip from Chime: Be sure to learn about any fees you may have to pay, including overdraft fees, savings account fees, account maintenance fees, foreign transaction fees, and more. And if you want a bank that will never rely on unfair bank fees for profit, Chime is here for you.

3. Chime offers a Spending Account that suits your lifestyle

With a Chime no fee checking account, you can do all of your banking right from the modern and intuitive mobile app. This includes depositing checks on the go, paying friends, transferring funds, paying bills and even mailing checks. Here’s how these main features work:

  • Mobile Check Deposit

To deposit a check, all you need to do is snap a quick photo with Chime’s mobile banking app, and then sit back and watch your account balance grow. No need to fill out a deposit slip, go to a brick-and-mortar bank or ATM, wait in a bank teller line, and write out a paper check and put it in the mail. You can deposit checks from anywhere in the world. Easy peasy.

  • Pay Friends

With a Chime Spending Account, you can send money instantly to friends and family, even to those that aren’t yet Chime members! Using the Pay Friends feature, you can divide up rent payments or split the bill when out to dinner with friends. And, you’ll never pay fees.

  • Automatic Savings

Now that you love your Spending Account, it’s time to automatically grow your savings with the Save When I Get Paid or Save When I Spend features. Automatically save 10% of your paycheck into your Chime Saving Account with Save When I Get Paid. You can also automatically round-up your purchases and save the different into your Savings Account with Save When I Spend.

  • Pay Bills Electronically

Using Chime’s bill pay feature, you can pay your bills, track your expenses, and keep tabs on your balance from the mobile app on any device. You can even leave your wallet at home when you go shopping as Chime supports mobile payment apps like Apple Pay, Google Pay, and Samsung Pay.

  • Mail a Check

We know mailing checks is old school. But, sometimes you gotta do it and Chime makes this task simple. It even puts the check in the mail for you. That’s right. If you have to mail a check, you can do this through the mobile app. All you have to do is let Chime know who to send a check to and for how much. Chime will then make sure your check gets to where it needs to be. Now this is what we call the best kind of virtual personal assistant.

4. Chime offers easy access to your money

While Chime is a mobile-only bank with no brick-and-mortar locations, this doesn’t mean you’re limited when it comes to ATMs. In fact, just the opposite is true. You can use your debit card to withdraw money from your no fee checking account at over 38,000 fee-free ATMs. In addition, you can use 30,000 plus cash-back locations.

Chime is part of the MoneyPass® and Visa Plus Alliance ATM networks, with locations throughout the United States. You can use the mobile app to find an in-network free ATM and then use your debit card to withdraw cash without fees. Now that’s convenience to the max.

5. Chime helps you save automatically

Now that we’ve explained Chime’s mission to help you save money with no fee bank accounts, it’s time to break down some of the key ways in which you can keep more of your money, while boosting your savings. And, remember, these money-saving features from Chime cost you nothing in fees and will help you save money without even thinking about it. Take a look:

  • Save When I Spend

    With Chime, you can save money every time you make a purchase or pay a bill with your Chime debit card. The Save When I Spend feature automatically rounds up your transactions to the nearest dollar and transfers the round-up from your Spending Account into your Savings Account.

  •  Save When I Get Paid

     This automatic savings feature allows you to save money with every paycheck. This way you can reach your financial goals faster. If you’re a Chime member, you can automatically transfer 10% of every paycheck directly into your Savings Account.

  • Get paid up to two days early with early direct deposit 

    Getting your paycheck early means you’ll have two more days to do more with your money. When you open a no fee checking account with Chime, you can set up direct deposit two ways: you can request an email with a pre-filled direct deposit form that you can give to your employer, or set it up yourself using the Account and Routing numbers listed in your Chime app. No waiting for your money while it sits in some mysterious electronic limbo, and no more worrying about lost paper checks. You’ll get your cash two days before most other traditional banks make the funds available to you. The waiting game is over!

Are you ready to open a no fee checking account?

If you’re currently paying bank fees, this means you are paying your bank for the right to hold onto your money. Ridiculous, right?

Yet, you have a choice. You can switch to a no fee bank account. Signing up for a Chime account takes less than two minutes and there is no minimum balance required to open a no fee checking account. What are you waiting for?

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