Making Cents Sense

Alright, penny-pinchers and spendthrifts alike, it’s time to get excited about saving money! The Financial Post ( https://financialpost.com/personal-finance/budget-trends-save-you-money ) has dropped some hot tips on the latest budget trends that’ll help you keep more of that hard-earned cash in your wallet. Let’s dive into these trends with all the enthusiasm of a kid in a candy store – but on a budget, of course. Trend 1: The Envelope System – Old School Cool First up, we’ve got the envelope system. Yes, it’s as simple as it sounds. You take actual, physical envelopes, label them with different spending categories, and fill them with cash. When the envelope’s empty, you’re done spending. It’s like the ancient art of budgeting brought to you by your grandma. And guess what? It works! Plus, it’s kind of fun to see how long you can stretch that last $5 in your “eating out” envelope. Trend 2: Subscription Overhaul – The Great Cull Next on the list is the subscription overhaul. Remember ...

Alright folks, gather ‘round because here’s a tale that’ll make your jaw drop! Picture this: I’m raking in a cool $100K a year as a freelance writer and editor , and my husband’s pulling in $87K from his full-time gig. On paper, we look like a financial powerhouse. But guess what? The dream of buying a single-family home has slipped through our fingers like sand at the beach. Let’s rewind a bit. Back in 2020, we bought a cozy condo thinking we’d upgrade to a house in a few years. Fast forward to today, and we’re stuck in the condo, thanks to sky-high home prices, soaring interest rates, and a market drier than a desert. We’re in Massachusetts, just outside of Boston, where you practically need to win the lottery to afford a decent home. How much do you need to earn to buy a home? Turns out, a six-figure salary isn’t the golden ticket it used to be. According to Bankrate, you need at least $110,871 per year to afford a median-priced home in the U.S., which sits around $402,343. But here...

As younger generations, including Gen Z and Millennials, start thinking about their financial futures, understanding the best ways to save for retirement is crucial. A recent article by Fortune highlights the growing interest among these age groups in Roth IRAs and 401(k)s as key components of their retirement planning strategies. Here’s what you need to know about these two popular retirement accounts and how they can help secure your financial future. Understanding Roth IRA and 401(k) Accounts Roth IRA : Tax Benefits : Contributions to a Roth IRA are made with after-tax dollars, which means withdrawals in retirement are tax-free, provided certain conditions are met. This can be beneficial if you expect to be in a higher tax bracket when you retire. Contribution Limits : For 2024, the contribution limit for a Roth IRA is $6,000 per year (or $7,000 if you’re age 50 or older). Eligibility : There are income limits for contributing to a Roth IRA. For single filers in 2024, the income li...

Financial guru Dave Ramsey has long been an advocate for living debt-free and making wise financial decisions. In a recent article, Ramsey explains how car payments can significantly impact your retirement savings and overall financial health. Here’s a detailed look at his insights and advice on avoiding the pitfalls of car payments to secure a better financial future. The True Cost of Car Payments Many people consider car payments a normal part of life, but Ramsey highlights the hidden costs and long-term financial consequences: Depreciation : Cars are depreciating assets, meaning they lose value over time. The moment you drive a new car off the lot, it begins to lose value. By making monthly payments on a depreciating asset, you’re essentially losing money every month. Interest Payments : Financing a car often means paying interest on the loan. Over time, the interest payments can add up to a significant amount, increasing the overall cost of the vehicle far beyond its sticker price...