Money – Page 6 – mardihumphreys.com

Red Alert

Our daughter was born seven days before my 31st birthday. While pregnant with her, my OB/GYN referred to us as a geriatric pregnancy. Has a bit of a negative connotation, don’t ya think? I prefer to think of us as trendsetters because these days plenty of women are following in our footsteps. At the time, I hoped that within twenty-five years society would evolve to the point where it’s easier for parents of minor-aged children to work full-time. The deadline to fulfill that hope is January 2022. Looks like I’m going to be disappointed.

Acknowledge

The corporate sector has done little to address this issue, and as we discussed last week, bias against working mothers hasn’t changed much in 25 years. Since the pandemic spotlighted their plight, now is an opportune time to use that momentum and advocate for permanent changes with employers for both mothers and fathers. Child care is necessary for parents to work. Work is necessary to drive economic recovery from COVID-19. More than half of the parents who took this survey anticipate that the cost of child care will increase because of the pandemic. The child care crisis is now a red alert and it affects all of us.

Communicate

If you are a parent in the workforce, the pandemic probably taught you the necessity of work-life integration, especially if your children are very young and/or school-aged. For example, the need for your physical presence when your child is an infant is not the same as when that child becomes a teenager. Even if your work responsibilities don’t change during those years, where and when you do the work can. Gone are the days of sitting in an office for eight hours waiting for work to appear. Work happens 24/7/365; so does the rest of your life. Figure out where your boundaries are, then communicate and negotiate them with your manager. When your employer knows that you’ll write the quarterly report after your daughter goes to bed in exchange for attending her soccer game that afternoon, they should respect your work-life integration. If they don’t, then you can find an employer who will. Right now there are more jobs available than people to fill them. You need to be in an employment situation where you can have transparent, on-going conversations with your manager (e.g., performance reviews) where the goal is to define both what the company currently needs from you, and what you need from the company in order to meet its needs. The result should be an arrangement benefitting both you and the company. If you and your employer are both fair and flexible, not only will you successfully integrate the responsibilities of your life, but you, your employer, and your children will benefit also.

How does your business address the needs of working parents? Please share in the comments.

Never and Always

The timing never seems right for investing in long-term financial goals. There is always an immediate expense: post-pandemic vacations, post-pandemic work clothes, post-pandemic baby supplies. It’s hard to think about the future when today’s competing priorities are so loud, but when you give money to financial instruments, properties, or shares with the expectation of making a profit, not only can you withdraw these profits if you lose your job (be aware of the penalties), you can also save faster for big expenses like a house or college. It pays to get started.

Strategize

Define your targets, timeline, and tolerance. Investing has two extremes: aggressive (high risk and high return) and conservative (stable and lower return). You don’t have to choose one or the other. You can stay in the middle and adjust your strategy as you age, change jobs, or your lifestyle evolves (e.g., you marry or have a child).
Use a fiduciary (an organization legally bound to act in your best interest). Talk to them about their strategy. For example, Do they automate investing using retirement date algorithms or do they create a portfolio according to your specific needs?
Decide. Will you actively invest: research, build your portfolio, purchase investment vehicles? If you choose this option, invest in more than one company. Spread your money over a few market sectors; diversifying reduces the risk of loss. Don’t fluctuate your investments with the rising and falling of the stock market or your emotions. Or will you passively invest: hire a wealth manager to do those things for you? If this is your choice, check their fees. Investing is a service, even for roboadvisors. Be aware of what you’re paying for. Know how your investments are taxed. Watch your statements monthly or quarterly. Ask questions about charges that don’t make sense to you.
401(k) Plan. If your employer offers one, participate; especially if they match the percentage you invest. If you don’t, you’re leaving free money on the table! Your contribution comes out of your check before you receive it, making it relatively painless to save that money for later and it has tax benefits.

Budget

Manage your money in this order:

Pay off high-interest debt, like credit cards
Save $1000 in an interest-bearing account for an emergency fund
Save another $1000 and invest it

That’s the sweet spot for beginning investors. It’s a relatively small sum to risk and $1000 is often the amount at which lower service fees and a decent return on your investment intersect. Here is an article that speaks plainly about different options for investing $1000.

Interest

The US stock market has historically provided a 6%-7% return on investment (that’s with inflation factored in). Initially that doesn’t seem like much, but your goal is to create wealth over time. When you let investments like CDs, treasury securities, or REITS compound for years, the interest they earn snowballs. This is especially useful if you start investing when you’re young because you have longer to ride out market fluctuations. On the other hand, when choosing a loan, look for one that offers simple interest. You usually find it on loans for large amounts like car, home, or student loans. Simple interest calculates payments based on the principal instead of both the principal and interest.

What holds you back from long-term financial investments? Please share in the comments.

FOMO on Steroids

With 391 million people fully vaccinated for COVID-19 worldwide (as of May 24, 2021), the light at the end of the pandemic tunnel is no longer attached to an oncoming train. People are emerging and testing their environment as herd immunity progresses. Americans lucky enough to remain employed have collectively saved about $1.7 trillion from the beginning of the pandemic through January 2021. The savings are mostly by default because they couldn’t spend it on travel, in-restaurant dining, and concert/sports/show tickets.

You not only saved up your money, but also your desire to spend it. The flood gates on both are about to open as COVID restrictions lift. Scarcity created FOMO and with freedom returning, you’re tempted to spend those savings on extravagances. For example, a year ago you didn’t realize how badly you wanted Crisp Morning Air scented hand sanitizer until it was sold out. Now, when you’re thumbing through Instagram and up pop photos of a friend posing in the middle of Times Square, you want to fly first class to New York and stay at The Ritz-Carlton. The phenomenon of spending money with abandon in an attempt to make up for lost opportunities during the lock down has a name: Revenge Spending.

All the money you would’ve spent in 2020 and couldn’t (thanks, COVID) is now burning a hole in your pocket. All the activities you wanted to do but couldn’t (thanks, COVID) now make you feel you have a lot of catching up to do. You want to take the trips you missed, replace the sofa you inherited from your parents’ downsizing six years ago, buy new work clothes to wear back to the office because your old work clothes no longer fit (thanks, COVID). You feel like you’ve been robbed of a year’s worth of experiences and are in a frenzy to make up for lost time. If you have a job, very little debt, and a stimulus check, you’re very tempted to spend. A little splurge is understandable, but letting “treat yo self” get out of control can quickly empty your bank account.

The point of Revenge Spending is to make yourself feel better mentally and emotionally; a little retail therapy for all the isolation you had to endure last year. But if you blow all the money 2020 saved you, you defeat the purpose of Revenge Spending by mortgaging your future. Haven’t you suffered enough? To keep yourself in check:

Control the Splurge – Set a limit (maybe a stimulus check or two) and try to spend it locally. Use a local travel agent, go to local restaurants, jewelry stores, concert venues, etc.

Use Your Points – If you have a credit card that accumulates points and you’ve racked them up buying gas, groceries, and take-out during the pandemic, use them where possible to pay for upgrades. For example, fly business class instead of economy, book a 5-star hotel instead of a 3-star, fine-dining instead of casual. Using the points gives you the experience you want while making your fun fund last longer.

Tap the Brakes – It’s easy to go online and immediately start booking and buying. When you’re about to purchase something you can’t live without, bookmark the site and revisit it in 48 hours. If the feeling is still as strong and you can afford it, go for it.

Walk Away – When you see social media posts of your friends Revenge Spending, put down your device.

Keep Going – Maintain the good savings habits you were forced to adopt in 2020, like retaining an emergency fund.

Party Like It’s 2019 – What did you plan to spend your discretionary income on in 2019? If you stick to that budget, the odds you’ll keep your 2020 savings increase.

Have you done any Revenge Spending yet? What is the first thing you bought? Please share in the comments.

How You Doin’?

My dad’s birthday is this week (HBD Pop!). Both he and Mom are retired. When I think about preparing for retirement, I study how they did it. Speaking of saving money, how are your savings goals for 2021 coming? Given the state of the economy, we should revisit our money habits. You have a budget, debt payoff plan, good credit score, and savings goals, right? RIGHT?

Budget

If you don’t have a budget, create one. It’s free to manually track your money using a spreadsheet, or there are plenty of budgeting apps available. Whether simple or complex, choose a system you’ll stick with. If you don’t evaluate your budget monthly, at least glance at it once a quarter, especially while the economy is still reeling from COVID-19. Are you driving a lot less thanks to the pandemic? If so, you may be able to save 5-10% on your vehicle insurance if you’re willing to allow the insurance company to track your driving activity using telematics. Do you have a mortgage? If you can lower your rate by at least 0.5 percentage points, consider refinancing it; especially if it would eliminate mortgage insurance premiums.

Debt

Debt-to-income ratio is one of the things lenders look at when you apply for credit or a loan. Here’s a worksheet you can use to figure yours out. If it’s too high, don’t borrow any more money right now, revise your budget, and consider consolidating multiple debts. After calculating how much debt you have, prioritize what to pay off first. Do you have more credit card debt than you’re comfortable with? The average interest rate on a new credit card is 17.87%. If you make minimum monthly payments, you could spend years just paying off the interest. Do you have multiple credit cards? Consider paying off the one with the highest interest rate first. Or, you could pay off the one with the lowest outstanding balance first, then add the amount you used to pay that lender to the monthly payment of the credit card with the higher interest rate.

Credit

If you didn’t check your credit report at the end of 2020, do it now and make sure it’s accurate. Most lenders use the FICO (Fair Isaac Corporation) credit score, which is based on your payment history on loans and credit cards, total debt and amounts owed, length of credit history, new credit accounts, and credit mix. Three companies publish credit reports: Experian, Equifax, and TransUnion. Experian offers a free tool called Boost. It recognizes timely payments to utilities providers and streaming services (e.g. Netflix) to increase your credit score.

Savings

Saving money is not supposed to be painful, it’s supposed to make you feel accomplished and free. Consider paying yourself first every month by direct depositing a percentage of your paycheck to a designated savings account. Budget spending around your savings instead of spending all your money every month and then putting what’s left into savings. You can also schedule automatic recurring transfers into your savings account so you can painlessly build your emergency fund. If you didn’t think an emergency fund was important pre-pandemic, I hope COVID-19 has changed your mind. Does your employer have a matching retirement plan? Are you contributing as much as they are in order to receive the most benefit? Best practice is saving 12-15% (including employer match) of your paycheck for retirement.

How are your 2021 financial goals coming along? Please share in the comments.

Nest Eggs

When her grandchildren were little, my mother-in-law hosted annual Easter egg hunts. She loved hiding candy-filled eggs in her yard for them to find. There was one egg bigger than all the others that she filled with cash instead of candy. She called it the money egg. Every child wanted to find it, break it open, wave the cash around, and speculate on how they would spend it. If they’d saved the money in those eggs instead, how much would they have now? You can help your children, grandchildren, godchildren, nieces, nephews, or any youngsters you love, begin good money saving habits this Easter.

Littles

In addition to candy, put a wallet in their Easter basket. A child as young as kindergarten can be taught it’s a safe place to keep the contents of their money egg. This gift implies valuables (money, gift cards, library card, driver’s license, etc.) should be kept organized, somewhere they can find it, and safe. A wallet is something they can keep in their room and periodically check to see how full it is. When a significant amount is accumulated, it’s time to open a bank account.
We’re still in our bubbles for a little while, so, if you’re buying for children who are at least five years old, how about a new board game? Monopoly has several junior versions that help teach concepts like buying, selling, and paying rent. The dollar designations are smaller than the adult game and the properties you can buy (e.g., an arcade) are more age appropriate.
You can use Easter baskets for some not so obvious financial lessons like delayed gratification. For example, if your little ones want to eat their Easter candy before breakfast, offer them a choice. They can either have one little solid chocolate egg before breakfast or half of the big bunny after breakfast. In other words, would they rather have a little now or wait for a bigger reward? When they are older and want to spend their work bonus on the latest iPhone now instead of putting it in their 401(k), this lesson should come in handy.

Bigs

If you’re giving an Easter present to a juvenile with a job, whether formal (e.g. bagger at a grocery) or informal (e.g., mowing lawns), how about opening a Roth IRA for them? There are several companies that don’t charge for opening an account. Which is not the same as no minimum investment, btw, so read brokerages’ terms and conditions before choosing one. If the child is a minor, the account will have to have an adult custodian. If that won’t be you, check with the receiver’s parent first. This gift plants a few seeds for learning about investing. As they get older and the money grows, they can evaluate available saving options for a long-term goal. It also accustoms them to habits like contributing to their future employers’ 401(k) plans. The earnings from a Roth IRA can be used to pay for higher education (at an eligible institution) without penalty for early withdrawal. Every little bit a young person is willing to save now will pay off big time when they graduate high school.

While these probably won’t replace chocolate bunnies, Reese’s eggs, or jelly beans, finding some money-wise goodies in their Easter baskets communicates that you care about their happiness beyond today.

Were money eggs included in Easter egg hunts when you were little? Did you save or spend them? Please share your story in the comments.

Let the Sun Shine

Daylight Savings Time is upon us and I am not a fan. The pessimist in me thinks, “What’s one more hour of lost sleep after all the hours I’ve lost thanks to COVID-19?” The optimist in me thinks, “Yay! Spring!” Since we can’t control time, let’s concentrate on saving something we can control: money. Our financial goals fluctuate with the seasons of our lives, but we sleep better if saving is always one of them. Here are three rules of thumb that give me financial peace of mind: live within your means, fund your future, and be generous.

Live Within Your Means

I’ll state the obvious. Make more money than you spend. Having said that, there are some maybe not-so-obvious ways to save more of your means. Do you use a cell phone? Internet? Cable TV? Satellite TV? Can you live without one of these? If not, are you getting the best plan for your budget? You can check and adjust accordingly. Finding a cheaper plan doesn’t necessarily mean you have to switch providers. You can contact your current one and ask them to match their competitor’s rates. Do you use a travel rewards credit card? If earning points for travel no longer fits your lifestyle, switch to a card that does. For example, while you may not be traveling as much right now, you’re still buying gas and groceries. Switch to a credit card with cash back rewards for those purchases.

Fund Your Future

If you’re getting a tax refund of more than $2000 (the average refund for 2019 was $2535), consider filling out a new W-4 with your employer to have less tax deducted. Some tax payers I know purposely overpay income tax so they’ll receive large refunds. They use the money to pay for big ticket items, and that is a choice. Another choice is a short-term savings strategy for big ticket items. For example, direct depositing that extra amount into a high-yield savings account instead of overpaying income taxes. A tax refund check seems like free money. It’s actually money you give the government every month, it uses for a year (interest free, btw), then finally allows you to have what’s left. If that money stays in your paycheck, you have the option to invest it in your employer’s 401(k) plan, or your personal IRA, or another long-term savings option. This both removes the temptation to spend the money, and invests it for your future.

Be Generous

You feel good when you help others. Think about how good Ebeneezer Scrooge felt when he was generous with his money. But you don’t have to give money to be generous. For example, when your grocery has non-perishable items on sale and you have coupons, buy the limit, keep a couple for yourself and donate the rest to a local food pantry. Do you have clothes you haven’t worn for two years? (Not wearing them in 2020 doesn’t count.) Bag them up and donate them to your local thrift store. When you don’t have a lot of money, you still have something to give; even if it’s just giving a smile to a stranger; with our eyes, because, you know, mask. Our abundance isn’t always measured in money.

What do you do to maintain financial peace of mind? Please share in the comments.

Spread the Love

Sure, Valentine’s Day is a Hallmark holiday, and you can choose to spend it drinking your favorite adult beverage and watching The Notebook. AGAIN. But, consider using the occasion to spread love outside of your circle. We’re programmed to give back to our communities around the holiday season, but people are in need all year round (especially 11 months into the pandemic). We can still spoil those closest to us, but what can we do to spread some love to the rest of the world?

Friends

If you’re purchasing a gift online, consider using Amazon Smile. They donate 0.5% of eligible sales to the charitable organization you choose without adding that charge to your bill. Does your town have locally owned small businesses like: a coffee roaster, chocolatier, florist, locally-themed speciality gift shop, bakery, and/or book store? You can fill gift baskets with goodies purchased from some of these shops and drop them off on your friends’ porches. If you’re pressed for time, you could send them valentine cards with gift cards from locally owned restaurants enclosed, or memberships to a local art museum, science museum, zoo, or historical park. If you have the option to do this online and save a tree in the process, bonus love!

Neighbors

Since giving your time is still complicated right now due to COVID-19 restrictions, it’s difficult to spread the love in your own hometown by serving meals to guests at a homeless shelter, helping students with homework at a public library, or playing checkers with residents at a nursing home. Instead, you can give money to a local charity that feeds people, one that provides online homework help, or one that cares for senior adults. You could order a few dozen donuts from a local donut shop and use a food delivery service to take them to your local fire station. You could donate money to a local natural disaster relief fund. You don’t have to spend money to give back. You can smile and say thank you to the mail carrier, the driver who delivers your food order, the grocery employee who puts your pick up order in your trunk, the barista who hands you your latte at the drive-thru. Unless your mask is transparent, they won’t see your mouth smile, but they will see it in your eyes.

Strangers

Remember exchanging valentines in elementary school? You brought in tiny cards, candy, pencils, etc. to give everyone in your class. Kids in the hospital can’t exchange valentines. Check with your local Children’s Hospital. Candy, pencils, and trinkets are probably prohibited, but would they accept unopened boxes of Valentine’s Day exchange cards? They may have volunteers willing to observe COVID-19 protocol and distribute them. Looking for other ways to give to strangers? Send a care package to a military service member. Donate blood. Register to become an organ donor. Drop off unopened bags of pet food at your local animal shelter. Create a fundraiser on Facebook.

How do you plan to be generous this Valentine’s Day? Please share in the comments.

Keep Your Eye on the Money

We’re celebrating our daughter’s 24th birthday. The occasion makes me ponder both her life’s journey so far and how adulting is going. Things sure have changed since I got my first significant job, and it made me wonder: You have your first full-time job and regular paychecks are rolling in. What’s the best use of that money?

Budget

Pick a plan and stick to it. Pay attention to money both coming in and going out. Make more than you spend and plan your savings. Most banks allow you to have multiple accounts and your employer likely can direct deposit your paycheck into these accounts for you. In addition to your debit account, set up an account as an emergency fund. Unexpected expenses like job loss can bankrupt you if you live paycheck to paycheck. Setting aside three to six months worth of living expenses is a good rule of thumb. Also, direct a percentage of your income into a long-term savings account for future big-ticket expenditures (e.g., car, house, MBA). Revisit your budget at least once a year. Are you saving enough for emergencies, a long vacation, professional development? Remember to set a little money aside to reward yourself for reaching your savings goals.

Loans

Do you have student loans? Typically, you have six months after graduating from college before you’re required to start payments, but interest accumulates during that grace period. Starting repayment right away saves six months worth of interest charges. Are the loans federal or private? For federal, can you consolidate them? For private, can you refinance them at a lower interest rate?

Credit

Build your credit history by paying your bills on time and don’t miss or skip monthly payments. Try not to carry a balance on your credit cards, but if you do, pay more than the minimum listed on the statement. Set up alerts for your bank to notify you if weird amounts (e.g., less than a dollar) are charged to your account, or if the charge originates far from your location (btw, alert your bank when you travel more than 200 miles from home). Check your credit score annually.

Insurance

You’re young and healthy, but what if your body gets busted up in a car accident? Here are some things to think about.

Retirement

Yes. It’s a long way off, but if you begin saving now, you don’t have to put aside very much and it has years to grow. Take advantage of your company’s 401(k) plan especially if they offer matching contributions (e.g., if you invest 3% of your annual salary in the company’s 401(k), they contribute another 3% to your account). Also, open an IRA. If you can arrange direct deposits for these measures, you won’t even miss the money you’re saving.

Give

Whether you support your local PBS station with a financial contribution, donate your gently used clothes to Goodwill, or volunteer your time at the Humane Society, set aside time or money (or both) to give back to your community. You now have the power and responsibility to make a difference. When you help others, you get more than you give.

How did you adjust to the money you made from your first full-time job? Please share in the comments section.

It’s Complicated

B2B holiday gift giving was tricky without the constraints of COVID-19. Now, it’s practically a minefield. Does your company have the budget to give corporate gifts nine months into a pandemic? If teams are mostly working from home, will your gift end up at an empty office? Will your clients accept a gift when they can’t possibly know how many unaware-coronavirus-carriers have touched it? When choosing gifts for clients this year, here are five things to consider.

Surprise And Please

Don’t buy people stuff they don’t want just to buy them something.They’re your clients, part of your job is finding out what they like. What have they joked about in meetings? What does their website say about them? Has your sales staff left clues in your CRM? What is on their LinkedIn profiles interests lists? Strive to give gifts that both surprise and please. For example, you could send a gift-wrapped case of quality toilet paper. They won’t be expecting it (surprise) and it gives you the opportunity to make them laugh (please). Hopefully 2020 will be the only holiday season where toilet paper is considered a gift.

Set Reasonable Expectations

Even if your business is growing during COVID-19, it’s counterproductive to flaunt that happy circumstance with an expensive corporate gift. If you give your clients an over-the-top gift this year, what will they expect next year? You are not trying to buy their loyalty. An extravagant gift leaves the impression you’re blissfully ignorant of the current economic climate. The easiest thing for you to do is to give all your clients the same gifts, but they don’t all pay you the same amount, right? (Helpful hint: if they paid you $1000 this year, a $90 gift is appropriate.) Your goal is twofold. One: demonstrate appreciation. Two: emphasize your relationships with these clients are important to you. The same goes for not spending enough money on client gifts. A coffee mug with your logo on it may daily remind them of you, but not in a good way. This is the year to scrutinize your list and decide which clients will receive a gift and which clients will receive a season’s greetings thank-you note.

Think Small

We’re all in this pandemic together. Buying gifts from local small businesses is a win-win-win. You acknowledge the importance of small businesses to the community in which you and your clients work. You remind your clients what a great community you both live and work in. You and your clients help sustain another business in your community. Most retail small businesses offer gift cards, home-town themed gifts, and some even offer contactless delivery.

Donate To Their Favorite Charity

Give in accordance with both your company’s and your clients’ company values. Your clients are people. They will remember who supported the community during these hard times. This gesture declares you appreciate the relationship your businesses have so much that you want to support the charitable organizations they care about; especially during the pandemic.

Wait For It

Your clients may be receiving lots of holiday gifts right now and yours could get lost in the pile. Think about waiting until January and giving a New Year’s present. This would set you apart, and, thanks to the pandemic, you have a great angle: “Good Riddance 2020!” or “Wishing You a New Year of Both Hope and Growth!”

What is your company gifting your clients this holiday season? Please share your ideas in the comments.

Thank You, Future Self

As the global pandemic drags on and reshapes our economy, I’ve learned a few things. Spending our money on local small businesses is more important than ever, I can make really good coffee at home, and I should not look at my 401 (k) statement right now. What are some things you can do to financially sustain yourself through this seemingly endless crisis?

Reduce, Reuse, Recycle

Reduce – It may be difficult to increase your income right now, but you can find ways to save it. You aren’t driving your vehicle as much as you did pre-COVID-19, so you’re saving money on gas, oil changes, and wear and tear. Working (or not) from home eliminates the need for walking around money (e.g., money spent on coffee shops, lunches out, parking fees, etc.). You’re saving money simply by not being able to spend it. This should have added up fairly significantly eight months into the stay-at-home order. Move that money to your long-term savings account where it will earn interest.

Reuse – Stay away from online shopping. Yes, those yoga pants you found on Amazon are cute, but don’t you already have three pair of cute yoga pants? Cancel automatic renewals. Don’t you have enough goodies from Watch Gang, Trendy Butler, or BREO BOX to last a while?

Recycle – Compare your monthly expenses from February to October. Note any savings and why they happened. Can you sustain any of the circumstances that caused those savings once the world opens up more? For example, you saved money by working from home. Is it possible to make remote work more permanent? You’ve probably already thought about it, so take the next step and make a list of what it would require. Then, you’ll be ready with a plan to present to your manager when the time is right.

Let’s Make a Deal

Credit card companies make money selling debt and counting on you to pay it back with interest. If you have run up over $5000 in charges, (especially if you’ve lost your job) call your lender. Ask them to suspend payments for two months and to permanently lower your interest rate. Do not take them up on their offer to sell you more debt. With so many borrowers unable to repay due to COVID-19, credit card companies are in a bind and willing to work with you now more than ever. Take this opportunity to renegotiate the terms of your credit agreement. A new arrangement will protect your credit score.

You Can’t Touch This

Your assets are low right now, so don’t sell them. If you have a 401(k) and/or an IRA and get scared easily, don’t look at your account statements. If you get another stimulus check, consider putting it in your IRA if you can currently live without it. The people who managed to save money back in the recession of 2008 are still hitting their long-term savings targets. You have more financial support from the government than during the last recession. It’s not a lot, but it’s useful.

It feels like the pandemic will last forever, but nothing does, so resist the urge to live for today and think of your future self and what that person will need: food, clothing, and shelter. Even if you move just $25 a week to your long-term savings account, after one year, that’s $1300 your future self can live on.

How are you resisting the urge to panic over your budget? Please share in the comments section.