Categories
Young Finances

PODCAST: Young Finances Interviews Rob Wilson on Achieving Success

I’m super excited to share with you all this interview! Rob Wilson is a financial advisor originally from Pittsburgh and has been dubbed “Hip Hop’s Financial Advisor” because he is a trusted advisor to professional athletes & entertainers. Rob believes that we can all learn from their success.
PODCAST: Interview with Rob Wilson | Young Finances
He received his bachelors degree in Industrial Engineering from the University of Pittsburgh and his Masters in Business Administration from the Tepper School of Business at Carnegie Mellon University.

I had the opportunity to sit down with Rob for a chat and discuss what success is for him. Please listen in and let me know how you view success in the comments below.

Originally posted 2014-07-28 06:00:06.

Categories
Budgeting & Saving

The Wealth Number Book Review

Time for another book review! Although I regularly read books for personal development and skill enhancement, I don’t always take the time to write a review unless a book really makes a great impression on me.

Click here to see the best investing and personal finance books for young adults.

I recently read The Wealth Number: A Financial Solution to Pursuing the Job You’d Love.

the Wealth Number book

I purchased this book on the recommendation of a friend. The book starts of with a summary of what it means to be financially free. So many people are stuck at jobs they hate and do not pursue a job they would love because they don’t have enough saved to support themselves.

In The Wealth Number, the author provides a straightforward way to increase savings to a ‘wealth number’ which equals one month of expenses saved. As you increase your wealth number, you move closer to the freedom to pursue a job you love.

This video really says it all.

I really like the book because it is an easy read that simplifies the concept of saving. I actually read it more than once; the second time I read it, I figured out a way to move my expenses to one paycheck in the month, and save the second paycheck of the month. (Then I joined the Save Half club)

There were salary examples in the book that helped me make the change. In this way, I increase my wealth number by one each month. It feels good to have the freedom to choose the perfect job because I have a high wealth number.

This book is perfect for someone that is looking for an easy way to start saving for a purpose. You may want to start a business, travel the world or take some time off to write a book or volunteer. Regardless of why you want to increase your savings, it is important to have a high wealth number so you have the freedom to pursue a life you will love.

Great read.

I was so excited about how this book changed my finances, I even posted about it on Facebook.

increase your wealth number
If you haven’t gotten the book already, don’t wait. Get it now and increase your wealth number.

 

Curious to see the one book I recommend to everyone starting out? Click here to watch.

what-book-has-helped-you-achieve-financial-success

Originally posted 2014-04-20 06:00:40.

Categories
Budgeting & Saving

My Plan to Travel the World and Save Half of my Income

I was working on recording a retirement episode of the WealthFast Podcast and stumbled across a pretty neat fact.

The more you save, the earlier you can retire.

The concept is pretty simple; you need about 25-33 times your annual spending rate to retire and if you save 20% of your income, you can replace your income in 37 years; assuming that your savings grow at 5% per year.

That means, in 37 years, you can retire and live comfortably on what you have saved. That seems like a long time to me.

The calculation involves dividing your savings rate by your spending rate.

20% divided by 80% in this case. This calculation gives you an annuity; how much you can add to your retirement fund each year.

Let’s assume that you decide to save half of your income, 50%. Your annual contribution would be 1.

Using a Present Value calculation we plug in the following variables; $0 current balance, 5% interest rate, 1 annual addition, -25 Future value. Solving for N, the number of years, gives us 16.6.

That’s 16.6 years until retirement!

It sure beats working in a cubicle for 40 years before retiring.

Can I Save if I Have Student Loan Debt?

If you’ve seen my recent video on Youtube, then you know that I have a plan to pay off 65k in student loan debt in less than three years. Part of this plan involves saving more money by cutting expenses.

Little did I know that by cutting unnecessary expenses and making more money, I would be able to save much more.

In fact, I would be able to save 50% of my income!
50 percent savings club
That means that each month I deposit an entire paycheck into what I affectionately call my Freedom Fund. Instead of a retirement goal, I have a debt pay down goal and a travel goal.

Is It Really Difficult to Save 50%?

I used to think that radical savers were crazy couponers that clipped and snipped for an extra 30 cents at the grocery store. Now I know that radical savers have made a lifestyle decision. A little over a year ago (84 weeks to be exact) I read this post over at Frugal Portland about how Kathleen planned to save half of her income.
save half income commenter

At the time, I was saving 10% of my pre-tax salary in my company sponsored 401(k) plan. I even commented on that post that I wanted to do the same but only if I could travel as well.

84 weeks later my plan is in place.

How I Plan to Save Half My Income and Travel

I started the blog TravelTish.com to document my goal of travelling more. Because I am saving half of my income from my day job to fund my student loan debt payoff, I will fund my travels with half of my income from my side hustle.

Is it really so hard to believe that you can save 50% of your income and still do what you want to do, like travel the world, buy a house or pay for advanced education?

Apparently it is, because after Kathleen published this post on Yahoo about how she and her fiance planned to save half of their combined income, the trolls came out. Similarly an ugly comment was made on my 65k debt payoff video.

I guess it’s radical to save money and pay off debt.

Who knew?

And now the fun stuff. Kathleen and I are starting the “Save 50% Movement” for everyone who is a radical saver. You could be saving to pay down debt, saving to travel, or saving for a house. We’re here to encourage each other to save more. Even if you’re not quite ready to save 50%, join us and as you see how easily others are doing it you will be ready. (Let’s hope it doesn’t take 84 weeks.)

Are you radical? Join us.

How to Join:

  • Commit to saving half of your after-tax income. (If you can save half of your gross income, that’s awesome!)
  • Request to join our Facebook group to stay motivated and encourage others

Optional for bloggers:

  • Write a post declaring your goals and grab the button below to include in your post.
50 Percent Savings Club
<div align="center"><a href="https://www.facebook.com/groups/256492897848742/" title="Save Half Club" target="_blank"><img src="https://youngfinances.com/wp-content/uploads/2014/01/50-percent-savings-club.png" alt="50 Percent Savings Club" style="border:none;" /></a></div>

Originally posted 2014-01-22 14:40:55.

Categories
Earn Extra Income

Should I Start a Business or a Side Hustle?

Are you considering starting a business? Not sure if you should jump right in? In today’s video I answer a question from Keon about starting a business.

Start business now

I also show you the moves for starting your own side hustle.

So put on your dancing shoes.

Quiz- Start a Business or Get a Job?

Music Credits: The Hustle by Van McCoy

Did you like this video? Leave a comment, share it with a friend or tell me on Twitter! You can find me at Twitter.com/YoungFinances

Send me an email at LaTisha AT youngfinances DOT com, subject line: What I learned from your videos and tell me ONE thing you learned. I love hearing from you and I read every email.

Do you have a question you’d like to ask me for the next video? Please submit it here.
Thanks for watching and be sure to subscribe!

TRANSCRIPT

Click Here to Download the Transcript for Should I Start My Business Now? (PDF)

Originally posted 2013-12-10 06:00:28.

Categories
Budgeting & Saving

How to Budget for Apartment Expenses

Moving? You’ll need to figure out your apartment expenses. If you’re thinking about moving out and trying to figure out if you can get your own place, then it’s time to set up a budget. Your budget changes as you change and it should adjust especially when you make new decisions such as moving into an apartment.

When I decided to get my first apartment, I knew there were a couple of things that I was going to need, namely all the little things that go into an apartment, like furniture, tables and chairs. And then I also wanted plants. There are many things that you need to include in your moving out budget. Here are four steps to help you budget for an apartment, so you will be ready to move out.

Perfect! I found this just in time. Getting ready to move out and I need to know what apartment expenses I should expect. Saving this!

Set a Monthly Apartment Expenses Budget

Set the monthly total that you’d like to pay for rent. If you make $1000 a month and you think you can afford $500 a month, you might need to wait until you earn more money. Your monthly rent expense should be no more than about 23% to 25% of your take home pay. If you bring home $1000 a month, then 23% to 25% is $230 to $250. It seems like a small amount, but you probably need to get a roommate or you probably need to wait until you’re really ready to move out.

4 things you should save up for before moving out.

Include a Budget for Utilities

Include a budget of about 10% a month for utilities. Your total housing payment will total about 33% to 35% a month. That’s a good place to be when you’re thinking about renting a new place or moving out to an apartment. When I got my first job, I had a take home pay of a little over $2,200 per month and my first apartment was $680. I paid about $640 a month in rent, and then about $40 more in utilities. I was spending about $680 to live on my own, and I was able to maintain that payment without stress because I used that percentage rule.

Set a Short Term Moving Budget

Then you should budget for all of those little expenses that tend to come up while moving. Also, you need to set a budget for furniture and groceries. I was on an all cash budget because I was in the process of paying off my credit card debt. I decided to go to IKEA because it was a great place where I could get inexpensive furniture and furnish the apartment. I bought furniture a few pieces at a time. I didn’t furnish the entire apartment when I first moved in because that would have increased my monthly expenses. Instead, I set aside a little bit of money each paycheck in each month in order to furnish my apartment.

Set a Budget for Unexpected or Expected Apartment Expenses

Then finally, set aside some cash just for the little stuff, food that you’ll eat on move-in day and any other last-minute surprises. For example, I had a gas bill that I had to pay from my previous apartment. I had no idea that I would have to pay that. That was an immediate $47 that came out of pocket. I had to make sure that I had some extra cash saved up in order to take care of those expenses.

Those are my tips on budgeting for an apartment. Now that you live on your own, think of all the fun stuff you get to do. For example, you could start your own YouTube channel.

Here are all of the apartment expenses I had when I moved into my apartment.

If you didn’t know, I am, well, moving out.

I am moving my personal residence. I’ve been living at home and even though I love my family, sometimes it’s time to move on.

 

Actually, on the day that you are reading this, I’m probably in the middle of moving already. But there have been so many different expenses that have been coming up related to moving. Here is what I have so far.

7 Important Apartment Expenses When Moving

1) Security Deposit: $300 This just secures my claim on the apartment and covers any costs that may arise when I move out.
2) Renters Insurance: $279 I decided to pay this month to month instead of upfront to spread out the costs so I will be paying about 24 dollars a month.
3) Electricity: $0 This cost me nothing just to get electricity turned on, but I am not looking forward to seeing my first bill.
4) Natural Gas: $220 I paid a deposit to get my gas turned on and when my first few bills come in, they will pull from this deposit until it is gone and afterwards I will start paying month to month.
5) Internet: $100 This covers the initial 50 dollar device fee and the first month’s payment. Afterwards it will be 50 per month to keep at my blog.
6) Misc Supplies: $180 This covers the basics I will need to move in, toilet paper, towels, spices, cleaning supplies and all of the other little things that add up.
7) Movers/Moving Truck: $0 Since I don’t have that much I’ve decided to move everything with the help of a friend.

On top of all of this, I will also be spending money when I first move in to get my refrigerator stocked. I have a lot of supplies and basics from my old apartment that used to be sitting in my parent’s basement so I will save money moving that.

When you move you have to think about all of the costs before you get started. You should have at least $1000 in the bank for emergency moving expenses. I didn’t know that I would have to pay a deposit to get my gas turned on but because I was ready, it didn’t affect my normal budget. Here are some more expenses that I am considering.

Living Room

TV (I have a small one and I may get a bigger one eventually)
Cable (No cable for me, I will use free Hulu and Crackle and maybe Redbox)
Couch (I have a small couch that I need to move)
Table (I don’t have a coffee table but, hey who needs that anyway?)
Internet (Yes please!)

Kitchen

Dishes (I’m all set here)
Food (This will be at least $200 if I get everything at once)
Cleaning Supplies (I’ve been buying these when they were on sale for the past few months so I should be ok.)

Bedroom

Bed (I will be getting a bigger bed when I move)
Dresser (I need a dresser also)
Curtains (I have these as well)

I think that should be it. Is there anything I’m missing? How did you handle your apartment expenses when you moved out?

Originally posted 2016-06-21 08:00:00.

Categories
Budgeting & Saving

National Coffee Day: How Much Do YOU Pay for Coffee a Week (And How You Can Cut That Cost in Half)

In celebration of National Coffee Day, celebrated on September 29 this year, let’s talk delicious, hot (or iced!) coffee! Coffee is one of America’s favorite beverages, with it coming in only behind water as a drink of choice.  More than 75% of Americans drink some type of coffee, from lattes to cappuccinos to plain coffee.

According to the Huffington Post, the average American drinks 2.1 cups of coffee a day. We spend an average of $3.28 per drink, a number that has increased annually since 2013.

While it seems like we all celebrate national coffee day pretty regularly, it’s worth estimating how much you pay for coffee in a week. Let’s face it, unless you’re dedicated to brewing only the most basic coffee at home every day, you’re likely spending money on coffee out. That money adds up! Here’s how you can cut your coffee consumption costs in half – and still get your caffeine fix.

Estimate Your Average Coffee Expenses

If you’re curious to see how much you spend on coffee regularly, USA Today has a nifty coffee calculator that tells you how much you spend monthly, annually, and over the course of 30 years on your coffee habit. For example, if you go to Starbucks for 2 cups of coffee a day, the calculator predicts you’ll spend $126 a month. That’s approximately $31 on coffee a week!

Of course, your expenses may vary widely. Not every day is national coffee day, so it’s likely some days you’ll make coffee at home or possibly skip it entirely. According to the USA Today Coffee Calculator, if you make 2 cups of coffee at home every day, you’ll spend $4.80 a month – basically a dollar a week on coffee.

Being aware of your regular coffee expenses will go a long way toward understanding where your money goes weekly. Here are additional ways to continue cutting those expenses, especially if you’re one of those people who has more than 2 cups of coffee daily!

Brew At Home

As the USA Today calculator shows us, you’re better off overall if you make coffee at home. The best part of brewing at home is you can be more creative in your coffee flavor choices. Every day can be experimental national coffee day when you have your own coffee machine!

By brewing at home, you can try different types of coffee (not just Starbucks – there are many coffee brands out there with very distinct and tasty flavors!), flavors, and sizes. The “tall” size you get at Starbucks may be more affordable, but you can brew yourself a giant cup at home for less than half the price.

Plan Ahead

One reason why many of us purchase coffee is lack of time. Have you ever been rushing out the door only to realize you desperately need coffee, so you swing by the drive thru on your way to work? You can cut down on these unplanned coffee runs by planning ahead.

There are a few easy steps to planning ahead. When you go grocery shopping, make sure you’ve stocked up on coffee grounds, or pods if you use a single-brew machine, flavored syrups, creamer, or half-and-half. By having everything on hand at home, you’ll be less likely to make an excuse of running to the coffee shop.

The morning you get up, stumble over to the coffee machine, put in your coffee of choice, and press “on” or “start”. Then get ready like you normally do while your coffee brews. You can even have everything pre-measured the night before, so it’s ready for you to just press “start”!

You Don’t Need a Fancy Machine

While it’s really handy to have a coffee machine you can set, so it automatically brews coffee for you at the time you choose, you don’t have to spend a ton of money on a fancy coffee machine. Keurigs are nice, handy, and easy to use, but they’re not your only choice.

Mr. Coffee is an excellent brand that makes coffee machines you can pre-set, ones for single-serve cups of coffee, and smaller sizes that fit easily in an apartment or in an office cubicle. If you simply can get up early enough to brew your own coffee at home, consider a smaller, affordable coffee pot you can use at work! None of those machines should cost you more than $30, and if you can’t afford one now, you can always ask a loved one to buy it for you on national coffee day!

Make Educated Coffee Choices

Even after purchasing your own home machine and brewing coffee there, sometimes you just can’t help going to Starbucks and buying a cup of coffee. It happens! However, you can save money by making the right coffee choices.

Instead of purchasing a grande latte from Starbucks, approximately $4, consider other coffee choices. Could you purchase a grande plain coffee, approximately $2.50, and add your own flavoring, creamer, etc.? If you’re willing to try different types of coffee, or bring your own creamer or syrups from home, you can save money by buying a plain coffee and adding to it.

Splurge When You Have Coupons or Freebies

Many coffee chains offer perks to regular customers. If you’re a regular Starbucks customer, for instance, you can download the Starbucks app and redeem rewards for free or half-priced coffees and meals. On days you’re offered these perks, it’s like a national coffee day celebration for you! Take advantage of these rewards by indulging in your coffee fix.

Use your rewards or discounts to purchase a large size of your favorite coffee, or to get your regular-sized coffee at half-price. This is a great chance for you to get your grande latte for $2 instead of the regular $4+.

 

By brewing at home, making educated choices, planning ahead, using the right machine, and taking advantage of freebies, you can cut your coffee expenses in half quickly. It may take some getting used to, especially if it’s a habit for you to visit the drive-thru every morning, but think of the savings. If you cut out just one Starbucks visit every day, you’ll save an estimated $766 in one year. Now that’s something to celebrate National Coffee Day over!

Originally posted 2015-09-28 10:00:59.