BudgetWise Financial Solutions

Sharing Money Wisdom With Your Children

Samirian Hill — Wed, 02 May 2012 19:00:38 +0000

You are your child’s first teacher. As a parent, you are teaching your children about money, whether intentionally or not. Many parents are not comfortable with teaching their children about money. The best method to share your money wisdom with your children is through open communication and positive role modeling. You will not get it right 100% of the time, but know that your children are watching you. You remember that show, “Kids Say the Darndest Things”? We can learn from them. Check out the video below.

Source: www.moneymanagement.com

Forbes magazine highlighted the top 10 money mistakes we pass on to our kids. The number one mistake is to “Say Nothing”. Your silence is speaking louder than you may think. Take the time to have money conversations with your children. Make them natural, fun, and conversational. Let’s educate the next generation.

Samirian Hill, The MoneyWise Teacher, is the Founder and President of BudgetWise Financial Solutions where they teach people to manage money wisely. She is a freelance writer, blogger and fiancial educator. In her spare time, she enjoys golfing, cooking, and reading.

Sharing Money Wisdom With Your Children is a post from: BudgetWise Financial Solutions

A Budget Is My Friend

Samirian Hill — Thu, 08 Mar 2012 07:04:08 +0000

As I was preparing this article on budgeting for the Women’s Money Week 2012, I thought what more can be said about this subject. Over the last year or two, it has been the most talked about subject for personal money management. I know that budgets are not sexy. I am not going to tell you how to budget or why budget. I wrote about these not too long ago.

Instead, I am going to try to paint a rosy picture. Budgeting is not straining your dollars just to pay bills or to put the handcuff on you. The process gives you the freedom to live the life you want to live. Without a plan, money tends to shift to the area of least resistance. That’s the hole in your purse. The short term immediate gratification will win every time. You will not make the hard decision. I am not going to say that the budget makes everything perfect. There is more to successful personal money management than budgeting. But, you will feel better knowing that you have a plan for your spending.

Instead of focusing on the short term discomfort starting a budget may cause, think of what you will gain. Let’s do a little exercise. What do you really want to do that is fun? If I asked you what you want to accomplish, you will probably feel obligated to give me a grown up, financially responsible answer, like get out of debt or save for retirement. These are cool, but not always fun. Life is to be lived and enjoyed, as well.

So instead, if money was not an object and you could be, do, or have whatever you want in 2013, what would it be? Get that picture in your mind. Write it down with a date when you will possess it. Begin planning and saving for it, even if it is $10. Now start moving: call and get prices or go out and touch and see it, if is a physical product. Instead of doing the obvious, like whipping out a credit card or asking someone to get it for you, think about how you will obtain it creatively.

Now when you spend money frivolously, think about that goal. By default, you are changing your behavior to think and plan ahead. You have identified a more rewarding reason in the future to curtail your spending in the present. If you really desire X, over time, that desire should override the impulsive purchases. When you buy something that you shouldn’t, an internal alarm will sound. That is your subconscious mind trying to help you. Don’t ignore it, listen to it. Before long, you will find yourself enjoying more of the things you really want to be, do or have.

This post is part of Women’s Money Week 2012. For more posts about budgeting see Budgeting Roundup.

Samirian Hill, “The MoneyWise Teacher” is founder and president of BudgetWise Financial Solutions, LLC, where they teach people to manage money wisely. She is a financial educator, contributing writer and blogger. She enjoys golfing, cooking, and reading.

A Budget Is My Friend is a post from: BudgetWise Financial Solutions

Investing Is Not Gambling

Samirian Hill — Wed, 07 Mar 2012 18:53:25 +0000

When it comes to investing, most people are intimidated, confused, or afraid. Many people think it is mysterious or just plain bad! It is not uncommon to get asked the question, “Investing is like gambling, right?” I am going to attempt to explain the difference between investing and gambling in simple terms. Let me know how I do!

WHAT IS INVESTING?

Investorwords define investing as: “The purchase of a financial product (stocks, bonds, mutual funds) or other item of value (i.e. real estate, art, a business) with an expectation of favorable future returns (profit or income). In general, investing means the use of money in the hope of making more money.”

Let’s make it plain: investing is putting your money to work. Most of us believe the only way to make money or to earn an income is by getting a job or trading hours for dollars. Investing is another way to think about making money or generating another stream of income.

TYPES OF FINANCIAL INVESTMENTS

For simplicity of explanation, all references to investing are referring to stocks. Please note that there other types of investments, including bonds and mutual funds (a collections or portfolio of stocks and bonds owned by a group of investors and managed by a professional investment company.)

WHAT IS A STOCK: A type of financial investment that signifies ownership in a corporation. As a shareholder, you participate in the company’s performance, positively or negatively.

WHAT INVESTING IS NOT

Investing in stocks is not gambling. Because of the risk associated with investing in stocks, many people confuse it with gambling. Gambling is a game of chance. It is “spending” dollars with the HOPE of WINNING money. There is no exchange of a product of value. The only value of exchange is the emotional thrill of winning or the emotional despair of losing.

When investing in stocks, you are purchasing a financial security (shares of a company); usually proceeded by research and expert guidance, if needed. Money is exchanged for something of value that can be sold for money later, hopefully at a profit. While there is risk that the value of the stocks may decline, you still own them and have choices.

An example for today is real estate. Let’s say, you are a real estate investor and purchased property in 2006, with the intent to sell it later for a profit. The purchase of the property is an investment. In 2012, the value of the property is less than what you paid for it. You still own the property and have options. You can decide to sell it at a loss and recoup some of your initial investment (money) or you can hold on to it and wait for the value of the property to go up (appreciate) and recoup all of your money. Even yet, you can wait even longer and the price of the property may go up higher than what you paid for it (the initial purchase amount) and you earn a profit (also called capital gain).

Investing in stocks works the same way. The fact that stocks can potentially lose value is why so many people equate investing in stocks as “playing the stock market” or gambling. It is also why many people, especially women fear investing. The lost in value looks like lost money. It is, but only on paper. Although the stock market goes up and down, the loss in value is not realized unless the stock shares are sold, just like with the real estate example above. You still own the shares of stock, the price is just down. You haven’t lost any real money. If you think the investment is still good and hold on to it, the price of the stocks may go back up and then you will recover the initial amount and in some cases, earn a profit. (Note: please obtain professional opinion to aid you with your decisions).

This potential loss of money in investing in stocks is the risk associated with investing. Risk is not bad, just misunderstood. Investing takes patience and perseverance. It is not a get rich quick option. While there is risk associated with investing and no guarantees, investing is better than hoping in Lady Luck.

Make sense? Leave me a comment below and let me know how I did.

This post is part of Women’s Money Week 2012. For more posts about savings and investing see Saving and Investing Roundup

DISCLAIMER: This article is intended for educational persons only. Any investments mentioned are not endorsements or recommendation. Please consult a financial advisor or professional to discuss the best option for your personal situation.

Samirian Hill, The MoneyWise Teacher, is the President and Founder of BudgetWise Financial Solutions, where they teach people to manage money wisely. She is a financial educator, contributing writer, and blogger. She enjoyes golfing, reading, and cooking.

Investing Is Not Gambling is a post from: BudgetWise Financial Solutions

Women and Money Part 2

Samirian Hill — Mon, 05 Mar 2012 23:43:43 +0000

Why Women’s Money Week? Because it is time for women to take control of their finances and reshape their future. According to the 10th anniversary edition of Prudential’s Financial Experience & Behavior Among Women study, we are more involved than ever in their households investment and financial decisions. Great, but still….below are 12 reasons why it is important for women to become more engaged, educated, and empowered around money:

80-90% of women will be solely responsible for their finances at some point in their lives- mainly due to divorce and the fact that on average women outlive men by seven years
(National Center for Women and retirement research).
Nearly two-thirds of U.S. women ages 40 to 79 have already dealt with a major financial “life crisis,” such as job loss, divorce, the death of a spouse, or serious illness.
(AARP, “Understanding Women’s Financial Needs and Behavior,” 2007 survey.)

The average life expectancy for women is 81 years, compared to 73 years for men. (The Social Security Administration)
The average age of widowhood is 55 years old. (US Census Bureau)
Women are more likely than men to be single parents. (U.S. Census Bureau, “American Community Survey, 2008,” Tables B11001, B11002, B11005, and B11013)
The median earnings for all women are $638 a week, compared to $798 for men–approximately 80 percent of what men earn on average (The Bureau of Labor Statistics)
The average woman spends 15% of her working years outside of the workforce caring for children and elderly parents compared to the average man’s 1.6%. (Women’s Institute for a Secure Retirement and National Center for Women’s Retirement Research)
Social Security provides over half of women’s income over the age of 65, 67% to be exact. (Social Security: Especially Vital to Women- IWPR analysis of the 2010 Current
Population Survey Annual Social and Economic Supplement)
Fewer than 2 in 10 women feel “very prepared” to make wise financial decisions. Half indicate that they “need some help,” and one-third feels that they “need a lot of help.”
(Financial Experience &Behaviors Among Women 2010/2011 Prudential Research Study)
Nearly half of women (44 percent) expect to retire at age 70 or older – including 19 percent of those who “do not plan to retire.” (Transamerica Center for Retirement Studies)
Social Security provides over half of women’s income over the age of 65, 67% to be exact. (Social Security: Especially Vital to Women- IWPR analysis of the 2010 Current Population Survey Annual Social and Economic Supplement)
The number of middle and upper income women struggling with debt has risen faster than the number of lower income women struggling with debt. (Women, Debt and Recession, CareOne Debt Relief Services)

Source: www.smartmoneychick.com

The theme for Women History’s Month 2012 is Education and Empowerment. We have made strides in education and some degree of empowerment in many fields. Our next frontier is to breakthrough to financial empowerment. Our future depends on it.

As you educate a woman, you educate the family. If you educate the girls, you educate the future.” ~ Queen Rania

Women’s Money Week is over 100 Women Financial Bloggers sharing articles on different topics during March 5th – 11th, to empower women to take action and take control.

Samirian Hill, The MoneyWise Teacher, is founder and president of BudgetWise Financial Solutions, LLC, where they teach people to manage money wisely. She is a financial educator, contributing writer, and blogger. She enjoys golfing, cooking, and reading. To learn more go to www.budgetwisefinancial.com

Women and Money Part 2 is a post from: BudgetWise Financial Solutions

Women and Money Part 1

Samirian Hill — Mon, 05 Mar 2012 09:17:40 +0000

As far back as I can remember I knew I would be working with numbers. The natural progression for me went something like this: working extra math problems at home just for fun (loved math); playing cards for money with my parents (sharpened my analytical and money handling skills); counting money (loved counting my winnings); cashiering (1st non-summer job - cashier at Burger King); accounting (favorite subject in high school, but found it potentially boring as a career); banking (worked at a bank through college); finances (liked it); investments (loved it! major for Bachelor); economics (considered double Master in econ, settled with MBA). CFP (Certified Financial Planner) is on the horizon one day. So it is safe to say, that I was not intimidated by math nor money.

Even with my extensive background in math and money, I am not a robot. I am human; I am a woman. I have lived long enough to know that life is not a straight line up, but the line does go down and it loops, too! I am not exempted from challenges nor mistakes. No one is. That’s life. So, managing money wisely is more than just having knowledge. Sometimes we can know what to do, but still do something else. Why do we self sabatoge? There are a lot of issues around money. Other factors, like behavorial, relational, emotional, cultural, psychological, and sociological, affect how we handle our finances. I have a bit of understanding into these areas, as well.

So where am I going with this? In my professional experience, I observed that women were the least comfortable with dealing with money. Shocking? They are not necessarily the least knowledgeable, however, but the “other factors” are more prevalent among women (men may disguise them better). The top three factors are: socialization (beliefs around money), behavioral (money patterns shaped by past and present events), and emotional (feelings around money). Men experience these same factors, but women gets the label for being poor money managers or not being smart about money.

I believe that knowledge accounts for a small percentage on how women manage their finances. Men and women fulfill their ”assumed” roles when approaching money. Men are supposed to the smartest, so he gets to act that part. On the other side, women were not traditionally expected to be financially savvy, so she fulfills her role as well. Even today in 2012, I’ll have a young twenty something bride tell me, that her husband handles all of the financial decisions or she will gushes, “Oh, I just don’t understand this stuff”. Many women have had male figures, like fathers or uncles, making financial decisions for them at a young age, so they never developed the skill or desire. It is not uncommon for women to have never seen a woman in the household involved in the household finances. I see it often where a widow is lost because the husband “always handled those things”.

In conclusion, I am not opposed to men taking the lead on financial matters. I do suggest that women get engaged as well. All financial decisions will affect her, one way or another, in the present or in the future. In Women and Money Part 2, I will share some statistic that shows why women need to get involved.

What’s your money story? I invite you take a deeper look.

This week is Women’s Money Week. Over 100+ women financial bloggers are sharing stories to inspire, encourage and empower women to take control of their finances and to reshape their financial future.

Samirian Hill, The MoneyWise Teacher, is founder and president of BudgetWise Financial Solutions, LLC, where they teach people to manage money wisely. She is a financial educator, contributing writer, financial blogger, and soon to be author. In her spare times, she enjoys golfing, reading, and cooking. To learn more go to www.budgetwisefinancial.com

Women and Money Part 1 is a post from: BudgetWise Financial Solutions

Are You on Track for Your Financial Goals?

Samirian Hill — Thu, 09 Feb 2012 03:14:02 +0000

Is this the year that you will finally get your finances in order? Getting out of debt, saving more money, or some other type of financial goals continuously appear as one of the top three goals each year. We are ready in the second month of 2012. Statistics tells us that 97% of people abandon their New Year resolutions by the end of January and 1/3 by the first week. Are you still on track for your goals this year? Are you still in the race? In case you have thown in the towel, check out this video:

Don’t give up now! Just because you may have fallen down, get back up and start running again! DETERMINATION, PERSISTANCE, AND ENDURANCE wins the race. As the old saying goes, “The race does not belong to the swift, but to the one who endures to the end.” This is your race. This is your year, but you have to press!

Samirian Hill, A.K.A. The MoneyWise Teacher, is the Founder and President of Budgetwise Financial Solutions, LLC, where they teach people to manage money wisely. She is a financial educator, blogger and contributing writer. In her spare time, she enjoys golfing, reading and cooking.

Watch Christian Videos and Read the Online Bible at GodVine.com

Are You on Track for Your Financial Goals? is a post from: BudgetWise Financial Solutions

After Christmas Sales – Spend Wisely

Samirian Hill — Wed, 28 Dec 2011 02:31:00 +0000

If you really want to save some real cash, shopping after Christmas is probably one of the best money management strategies for budget wise spending. After Christmas sales offers the best bargains, hands down. Black Friday sales are teasers; a few good deals to get you into the store. The sales after Christmas are real bargains because retailers now have to move the unsold merchandise to prepare for the spring season or upcoming model changes. While most of the mall traffic this week are either returning unwanted Christmas gifts or redeeming gift cards; the serious bargain hunters are loading up on goodies for next year. Here is a breakdown of some of spending strategies to employ:

Next year’s gifts. We all know that after Christmas is the best time to snag next year’s Christmas decorations. How about picking up a few gifts as well? Think beyond Christmas. Do you have a wedding to attend next spring? How about birthday gifts for next year? This is a good time to save 50% or more on items that you will have to buy next year close to full price.

Deals, Deals and more Deals! Retails stores mark down inventory agressively. Macy’s has new markdowns for the entire family. Don’t have the coupon? Thanks to technology, department stores are eager to assist you in getting the coupons via text. Text 62297 (MACYS) and type in the code CPN, you’ll have a coupon in seconds. January is the best time to purchase coats.

Think outside of the box. During the holiday season you can find savings on virtually everything. Do you have a vacation planned for next year? Check out the airfare deals now.

Sorting it out. Finally, there are always websites to help you gain an advantage. Check out www.retailmenot.comor www.dealio.comfor more information on the best bargain by stores and online promo codes. Dealio.com lets you find deals based on categories.

If you get in the habit of saving a portion of your holiday budget until after Christmas, you’ll benefit financially all year long. This spending strategy will help your budget in the long run.

For more holiday cost cutting tips that you can implement in 2012, check out Susan Tompor, Financial Columnist, article in The Detroit Free Press: Quirky Ways to Cut Holiday Costs. Shameless plug: I have a small mention in the article.

After Christmas Sales – Spend Wisely is a post from: BudgetWise Financial Solutions

Budget Friendly Gift Giving Ideas

Samirian Hill — Mon, 12 Dec 2011 22:31:02 +0000

Over the years, I worked in retail as seasonal help during the Christmas season. One observation I noticed was the many frustrated shoppers. I rarely saw a cheerful shopper. Each year, Christmas gift giving season increases the anxiety level of thousands, if not millions of people. Adding to the frustration is that they have to make decisions on less and less available resources, as consumers clamp down on credit card spending.

I know society has tried to convince to spend a ton of money on gifts to show our love. I am all for nice gifts, as long as it does not hurt financially. Below are some gift-giving ideas that will not blow your budget.

Give homemade products. Bake cookies or treats. Learn a new craft, like scrapbooking and make family memorabilia products. Create a family recipe book or a special family heirloom.

Give your knowledge. Do you do something well which others wished they could do? Do people often ask you to show them how to________ (you fill in the blank)? Hold a class on how to set up an iPad or some other technical or specialized knowledge. Give an hour of your time for a consultation or service that you normally would charge a fee and your friend or family members would have to pay for otherwise.

Give your time. Have you ever seen one of those IOU books that you can cash in for special favors? Create a coupon booklet to give to friends or family members to cash in later. It could be babysitting, dog watching, or some other task that you are frequently asked to help. Offer to volunteer at your child’s school.

Give your heart. Even though we buy gifts, often times what most mature individuals want to know is that someone cares. Write a heartfelt letter to a parent or elderly relatively. Add a framed picture for an added touch. It will be cherished forever.
Give yourself. Make time for the people who matters most to you. Visit a relative you have not seen in a while. Invite a few friends over for dinner or schedule a lunch date. Give someone your undivided attention.

Give your love. Don’t worry about what you have to spend or not. Give from your heart and give the gift of love. Start a new tradition with family or friends. Enjoy one another and create new memories. Serve at a charity event or help another family in need.

If giving the right gifts this Christmas is causing you mental and financial stress, then reconsider your actions. Do not let pressure override your peace of mind and your budget. Give the gift of LOVE. It is the reason for the season and the gift that keeps on giving. You’ll feel better for it.

Watching your budget? Are you spending more or less this Christmas on gifts? Let’s chat below.

Samirian Hill, a.k.a. The MoneyWise Teacher, is a financial educator, advocate, blogger, and contributing writer. She founded BudgetWise Financial Solutions, where they teach people to manage money wisely. In her spare time, Samirian enjoys golfing, reading, and cooking.

Budget Friendly Gift Giving Ideas is a post from: BudgetWise Financial Solutions

Black Friday Apps, Deals, and Cyber Monday Steals

Samirian Hill — Tue, 22 Nov 2011 02:03:11 +0000

Whew, has Black Friday Holiday shopping gone wild, or what? The intensity of Black Friday 2011 exposure is MAD! There is a fierce competition going on right now for your hard earned cash. According to the National Retail Federation, up to 152 million people plan to shop Black Friday weekend, which is more than the 138 million who planned to do so in 2010. The race is already in full throttle, BEFORE Thanksgiving. Many deals are offered now in stores. Clothing stores are offering 40% – 50% off. Michaels have up to 50% off on Christmas items.

Getting the best deals extends way beyond the archaic process of scoring the thick newspaper on Thanksgiving Day after dinner or catching early releases of ads online a few days before. The tech savvy modern day shopper has elevated the experience to a whole new level. The must have tool is the Smartphone. With apps, websites, and Cyber Monday, you longer have to stand in long lines to get a good deal. You don’t even have to leave your couch.

Three apps that I consistently see mentioned are: RedLaser, ShopSavvy, and TheFind. These apps let you scan barcodes to see if you can find a product cheaper elsewhere, and in most cases, close by. Also you can receive coupons with these apps.

Looking for the best deals online and gearing up for Cyber Monday? Check out these five websites for promo codes and free shipping:

RetailMeNot.com
FatWallet.com
Gottadeal.com
TGIBlackFriday.com
Savings.com

Anytime you make a purchase online, make sure to check for a promo code first. I do not want to say never, but very close to never, should you ever pay for shipping online.

If you are a tech savvy shopper, you can avoid the mad rush. You may not get rock bottom basement prices, but with patience and persistence, you can stretch your money further and save your budget. As for me, since I am archaic, I’ll be waiting for the paper on Thursday to chart out my strategy by hand.

Be prepared! Download your free printable Black Friday Shopping list.

Is your holiday shopping style tech savvy modern or old school archaic? Let’s talk about it below.

Black Friday Apps, Deals, and Cyber Monday Steals is a post from: BudgetWise Financial Solutions

Black Friday or Black Thursday?

Samirian Hill — Tue, 15 Nov 2011 03:57:57 +0000

I read a blog post recently talking about Thanksgiving being a forgotten holiday. It made me really step back and take notice. At first, I shrugged it off and thought to myself, well Thanksgiving is really a non commercial holiday, so there is nothing for the media to focus on. It is a holiday for family, food, football, and fun traditions. Thanksgiving weekend is the busiest traveling season of the year with people trying to get to home to love ones. After observing the last couple of weeks since Halloween, I have to agree, Thanksgiving is getting the squeeze play.

The unwritten meaning of Black Friday or the Day after Thanksgiving as it was originally called, was to officially kickoff the Christmas season. Now it has become the main event, overshawdowing Thanksgiving Day. Since retailers cannot make money off of Thanksgiving Day, they have turned it into “The Day Before Black Friday” or the day that gets in the way of the biggest shopping day of the year. As early as September I saw 2011 Black Friday ads. Pre Black Friday Sales are running now. When I look online, all I see is count downs to Black Friday 2011 (disclaimer for the Amazon Ad on site) or Christmas gift items. No mention of Thanksgiving Day.

The newest ploy by retailers is to skip Thanksgiving all together and turn it into a shopping day. Stores are opening up earlier and earlier. Do you remember when early bird was 6am to 8pm? Then it went to 5am. Now most stores open at 4am. This year, Target announced a midnight opening. Wal-Mart’s had to up the ante and unveiled that they will open their doors at 10pm. At the time I am typing this, Toys-R-Us unveiled doorbusters at 9pm Thanksgiving Day opening. You see where this is heading? These earlier Black Friday store hours: (1) make employees have to cut family time short and (2) cause door buster bargain hunters to have to get their Thanksgiving dinner to go.

Maybe because of the focus on Wall Street’s greed and the Occupy Wall Street movement, this newest tactic is being met with resistance by consumers and employees. In a recent New York Times article, “Thanksgiving as a Day to Shop Meets Rejections”, one faithful Black Friday shopper said that she may have to skip their family ritual all together. She is not going to forgo quality family time and dinner to stand in line. While a Target employee, Anthony Hardwick, has launched a petition against his employer, saying that “every employee deserves to break bread with their love ones”. Many consumers are emphatic with employees, stating employee exploitation and labor violations as reasons to boycott these earlier hours.

Be a wise shopper this holiday season. Don’t feed the sharks. If it is 12am this year, next year the time will be 9pm, then 7pm, then 5pm, until finally, they will open all day Thanksgiving. If one store does it, the others have to follow in an effort to get a share of the consumer dollars. Do not stand for this ploy to get you to depart with your money. Black Friday was a part of the Christmas holiday kickoff season and a tradition for many families, not the main event itself. Retailers make the bulk of their profits during Thanksgiving weekend and it sets the stage for the entire season. I am fine with that, but let’s not allow them to turn the entire holiday season into pure consumerism and commericalism. Let’s preserve the sanity of Thanksgiving family traditions.

Are you with me? If you are interested in signing Anthony Hardwick’s petition, you can go to change.org.

UPDATE: Over 100,000 have signed the petition. Huffington Post just posted a response from Target to the petition. Here is part of the statement:

Our understanding is that this team member also works full-time for another retailer. In early November, he informed his Target managers that he was scheduled to work at his other job on Black Friday and indicated that he needed the day off from Target. We honored that request.

Target does our best to work around the schedules of all of our team members, making every effort to accommodate their requests. Target will offer holiday pay to all hourly team members who work on Thanksgiving Day.

Sounds like Target made this about Anthony Hardwick. Do they get it? Did they just make a corporate social blunder? What do you think?

Samirian Hill, a.k.a. The MoneyWise Teacher, is a financial educator, advocate, blogger and contributing writer. She founded Budgetwise Financial Solutions, where they teach people to manage money wisely. As a reformed shopper, she spends her time golfing, reading and cooking.

Black Friday or Black Thursday? is a post from: BudgetWise Financial Solutions