Category Archives: Financial

How to Get Out of Debt

Debt: It’s something a lot of households in America have but few like to admit or talk about. But that doesn’t make it go away. Here are some useful tips to get out of debt.

debt-01

First, try to pay more than the minimum monthly amount required on each bill, credit card, or other commitment. Paying only the minimum will result in you spending exorbitant amounts in interest.

Second, concentrate initially on paying the debt that carries the highest interest. Albert Einstein famously said,

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

Here’s why you want to pay off the highest interest rate first. Every balance that you are charged interest on doubles every so often and your creditor knows this. It’s a little thing called the Rule of 72. Divide 72 by your interest rate and that’s how long it takes for your balance to double. So if you have a credit card with a 29% rate and one with a 14% interest rate, you want to pay off the one that doubles in about 2 years (72 divided by 29) before you worry too much about the one that doubles in 5 years (72 divided by 14).

Third, curb your spending habits. This is especially important but often the hardest thing to do. Check back next week for useful tips on how to manage this last but very important part of getting and staying out of debt.

Teen Money Guide – 2

SIFMA infographic

The infographic above applies to the US and I found it in a program I’ve used previously. You see, I happen to teach a class that focuses on Financial Literacy (at least the way I teach it) yet unfortunately this is slated to be the last year it’s offered in its current incarnation.

So where do parents, teens and teachers who want to try to cram valuable instruction into an already crammed curriculum go to get the basic education in handling money that’s missing from most school districts?

One source is H&R Block. Their Dollars and Sense program has valuable resources for all three groups to guide teen acquisition of money management skills.

Local banks and universities are another great source for providing your teen with a financial education due to the obvious absence in many public schools.

What resources are you using to teach your teen about money and contribute to their lifelong financial wellness?

How to Divorce Your Job and Keep the House – 4

Here it is after our summer hiatus, the much delayed follow-up post in the Divorce Your Job series on sharing what you know. Yes, it’s later in the day than it should be but it’s still on schedule since it’s Friday.

 Cats celebrating Friday

While you can pretty much find any and everything on the internet nowadays sometimes people just need or want that face-to-face or one-on-one interaction to answer any specific questions they have. Thus a money-making opportunity for you arises.

Think about the things you know how to do well. Don’t exclude anything no matter how insignificant you may think it is. Great at making a spreadsheet or formatting a document file? Know the ins and outs of organizing a closet? Or maybe you’re Mr. Fix-it when it comes to an assortment of household repairs? Then consider teaching or tutoring someone in your specific skills.

There are a variety of sites out there that do everything from connecting you with potential clients to helping you create an online instructional program. Here are just a few:

Thumbtack
You’ll notice our Thumbtack widget in the left sidebar. We use this site for the tutoring side of ECV but you can also use it if you perform different services like photography and event entertainment. You set up your profile and the site funnels clients in your area to you. To respond to  a potential client, you have to buy quotes for a nominal fee. Still it’s a good way to expand your client base in your quest towards divorcing your day job.

Udemy and Skillshare
These sites are like online academies that you can apply to be an instructor and create your own course. While Udemy says that it’s free to create your course, Skillshare mentions that the cost to create your online course can vary based on the tools you use. If anyone has used either of these, please tell what you thought of them.

Also if you know of any other sites that we should know about, please mention them in the comments.