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Why You Need to Start Cash Flowing

Why You Need to Start Cash Flowing

There are so many terms when it comes to personal finance and so many ways of doing things out there. I mean with a simple search on the Internet you will find endless resources for personal finance and how to go about getting your finances together. The most important is absolutely getting a budget together, cutting expenses, and increasing your income, but it’s also super important to create sinking funds and cash flowing larger expenses.

What is Cash Flowing?

This is one of those terms that is thrown around the personal finance world a lot and it makes sense, it’s super important. Cash flowing is when you have a larger expense and you delay the purchase until you have enough cash saved up for the expense. This tool is used when it is something you didn’t necessarily see coming (unlike a sinking fund that is for known expenses in the future). For example, I am cash flowing a new to me car instead of financing it. Of course, I could go out right now and get a car and finance it, but that would increase my debt. Something I am not interested in doing because I want to live a life of financial independence.

How to Start Cash Flowing.

You’re obviously not going to always use cash flowing, there is a time and a place. If it is a known expense that is happening in the future, like an oil change or yearly membership fee, you should have a sinking fund for it. If it’s something that you need to purchase and have time to save, then cash flow it. I’ll use my example of a new to me car. This isn’t an emergency and I have time to save for it. So, I’m adding money each month to a car fund I created. You need to decide where your priorities are and how quickly you want to cash flow the purchase. For me, I want to have it cash flowed by October, so I am sending a lot of my extra income from side hustles to this fund each month while still sending extra to my debts. Once you have made your decision, you can tweak your budget to find the cash for your purchase. Remember, a budget is not meant to restrict you, but to allow you to make the purchases you want.

Cash flowing has been a total game changer for me and my budget. Just by delaying a purchase until you have the cash to afford it, you can avoid putting yourself into debt. As I said earlier in this post, in order to obtain financial freedom, you can’t be burdened by debt and having to pay companies for past purchases with interest. Have you ever cash flowed a purchase?

Debt

Mini Series Part 4: How to Tackle Your Student Loans

This post may contain affiliate links. Check out my Disclosure Policy for more information.

In this four part mini series you will find all the tips to tackle your student loans regardless of where you are in the process. Student loans affect almost everyone now, which is a very sad reality. From the time a person graduates high school, it’s usually an issue in their life. So, I’m starting this mini series with tips for before you go to college and ending it with tips for after you graduate and have entered repayment.

Mini Series Part 1: Before You Go to College

Mini Series Part 2: While You’re in School

Mini Series Part 3: Before You Graduate

Student Loans Part 4

You’ve crossed the stage, you’ve started in your very first job, and you live in your very first apartment. Everything is falling into place, like it is supposed to after graduation. Now you need to start getting serious about where all of this new money is going that you now have and how you’re going to go about your student loans based on the work you put in for them before you graduated.

  1. Finalize that budget that you drafted before you graduated.

Before you graduated you drafted a budget based on what you thought your income would be and your expenses. Well, now it is time to finalize it. You should know by now how much you will be making monthly, how much your expenses will be, and how much your student loan minimum will be each month. Once you know for sure where your money is going each month, then you can see where you can cut things out. For example, I realized I was spending about $250 each month on eating out when I first tracked my spending. That was a huge reality check for me. This is going to take some time and don’t think you’re going to have your budget set right away. Take the time to make it work for you and don’t rush the process.

2. Save a small emergency fund.

This needs to be a personal choice for you and what you are comfortable with having in case something comes up. I personally have about a month of expenses in a savings account I don’t touch, unless an emergency comes up that I need to use it for. An emergency would be something you can’t plan for, like your car dying. It’s not meant for regular budgeted items, like clothes or food. If you want to go shopping or eat out, put it in your budget!

3. Create a payoff plan for your student loans.

Creating a payoff plan for your student loans is super important to getting them gone ASAP. Without a plan, you won’t know what to prioritize or what you need to do. I personally use undebt.it to plan my debt payoff. It’s wonderful, and allows you to pick what strategy you want to use. It even tells you how each plan will change your debt free date. The things you will need to do this is to have your individual account details (amount, interest rate, minimum, etc.), and know how much extra you can put towards your debt realistically based on your budget.

4. Adjust as life changes.

The most important part of a budget is to constantly adjust it as your life and priorities change. Your budget should change as your life changes. This allows you to be in control of your money versus your money being in control of you. In the beginning, it definitely feels like your money controls you because you’re probably sending a lot of money to your lenders. I know for me, most of my income went to my debt minimums when I first graduated and it was hard. But, I knew as I paid off more, the control would come back to me.

As you continue post grad, it will get easier as you get more comfortable with the process. No matter your circumstances after graduation, there are options to make things easier for you financially. There is never a one size fits all when it comes to finances and ultimately you need to make your decisions personal. With that being said, if you have any questions about getting your budget together or creating a plan to pay off debt, feel free to email me with any and all questions! How did you tackle your student loans after graduation?

Debt

Mini Series Part 1: How to Tackle Your Student Loans

In this four part mini series you will find all the tips to tackle your student loans regardless of where you are in the process. Student loans affect almost everyone now, which is a very sad reality. From the time a person graduates high school, it’s usually an issue in their life. So, I’m starting this mini series with tips for before you go to college and ending it with tips for after you graduate and have entered repayment.

Mini Series Part 2: While You’re in School

Mini Series Part 3: Before You Graduate

Mini Series Part 4: After You Graduate

Mini Series Part 1_ How to Tackle Your Student Loans
Before I went to college, I had no idea I would end up having roughly $200k in student loans 5 years and 2 degrees later. My parents always told me that I would need to take out some loans, but they were going to able to help me with school. Unfortunately, they couldn’t help me with school as much as I thought. I’m not saying I expected my degrees to be paid for by my parents, I never once expected them to give me a dime, until they told me they would. Here are a few things I wish I had known and done before I began my higher education and student loan journey.

1. Know your financial situation completely

This is the biggest one for me. I did not fully know my parents financial situation and didn’t ask for details about what it meant for them to help with school. Unfortunately, I did not get much financial aid because the FAFSA is filed based on your parents income and finances, not mine. This is why it is so important to understand how your education will be paid for. Don’t do what I did and not ask questions. Be specific with your parents about how this is getting paid for. This is a HUGE financial decision and since it’s all based on your parents finances (usually), it’s important to understand how it will be paid for.

2. Seek out advice on filling out the FAFSA

Usually your high school has someone to talk to about filling out the form, but it is best to talk to an expert on how to fill the form out. It’s a pretty straight forward form, but there’s some things they don’t need to know and other things they absolutely need to know. My best advice is to seek out an expert on what the form absolutely needs to have on it because it determines how much financial aid you are going to get. Unfortunately, my mom took responsibility for all of this for me, which at the time was wonderful for me, I didn’t need to deal with it. But once my sister and I received practically no financial aid, we talked to an expert. He quickly told us we provided a lot of unnecessary information, which made our financial situation look very different from what it actually was.

3. Choose your university wisely

If I could go back to when I was applying to colleges, and knew what I know now, I might not have picked the university I went to. It’s very hard to say that after the amazing program I went through. However, it was incredibly expensive and far from home. I could have gone to a closer university and commuted, saving me a lot of money. Of course, I went to a university that has the #1 program for teaching, so would I have landed a teaching job so quickly after graduation had I not done the program, that’s the tricky part. You will never know what will happen in the future, but my advice to you is to avoid having to go into a ton of debt, like I’m currently in.

4. Apply to every scholarship you can find

I made the mistake of not applying to a lot of scholarships because I thought I had no chance of getting it. What I have learned since then is that some scholarships aren’t given out because no one applied to them. That could have been money for my college education. I learned in grad school that you NEED to tell people your situation in order to get the help you need. In our society people don’t talk about their debt or financial situation, but that’s exactly what you need to do. Once I confided in the grad recruiter that I was drowning in debt, she called the right people and within a week I had an email saying I earned a scholarship. Of course, I had done a lot of work for my school in undergrad and my grad studies at that point, which definitely paid off.

5. Take out the maximum amount of federal loans you can before private

Federal and private loans are very different. Federal loans have some loan forgiveness programs, usually lower interest rates and offer a bunch of options for repayment. Private loans have no forgiveness options usually, limited or no payment options, and usually very high interest rates. Stick with federal loans if you can, you’ll be happy you did when repayment time comes along!

The next part of this mini series will explain some tips for when you’re in school. What are some tips you have for tackling student loans before you start school?

Saving Money

Frugal Date Ideas

Frugal Date Ideas

As a twenty something it can be a bit challenging to be on a debt free journey because most twenty somethings aren’t doing anything like this. Most are out exploring new cities, traveling the world, and trying out the newest restaurants. And I’m not saying you shouldn’t do these things because I have totally done this by putting it into the budget or cash flowing a frugal vacation. A really tough area in the budget is finding date ideas that aren’t going to break the budget. I know I struggle with this a lot and I feel like I finally have a handle on ways to enjoy date night without completely blowing the budget.

Frugal Date Idea #1 Go For a Hike

I love being outside and I love being active. One of my favorite date ideas is going hiking because it’s free other than gas and it’s great exercise. I always pack a backpack before heading out with snacks and drinks so we aren’t tempted to buy anything.

Frugal Date Idea #2 Movie Night

It’s so much fun to go to the movies, but sooo expensive. I can’t believe how much they charge at the movies now, it’s absolutely mind blowing. But, it is fun watching the new movies. Of course, you won’t get to see movies as soon as they come out, but having a movie night at home can be super enjoyable. Make lots of popcorn, get drinks ready, and enjoy a great movie together. Even better, you can wear pajamas! 🙂

Frugal Date Idea #3 Cook Dinner Together

Of course it’s always enjoyable to go out to eat, but it can very quickly become expensive for just one meal. It’s so much cheaper to cook a meal at home and enjoy it together. This way you can control the cost based on your budget and control the ingredients. This makes it better for your budget and your health.

Frugal Date Idea #4 Go to the Beach

This can get expensive if you don’t prepare properly. But, pack a cooler full of food, snacks, and drinks and that should make it much more affordable. Also, parking can be very expensive, but if you park a little further, it’s usually cheaper and if you invite another couple to come with then you can split parking.

Frugal Date Idea #5 Work Out Together

Yes, this isn’t the most romantic date, but it is so much fun working out together. Whether it’s a run outside or lifting at the gym, it just feels good to be doing something healthy together.

Frugal Date Idea #6 Free Concerts

My town offers free concerts in the park, check out to see if yours does the same. It’s a great way to get out of the house and enjoy some music.

Frugal Date Idea #7 Go For a Picnic

Pack a picnic and head to a park you’ve both never been to. Then you can explore the area afterwards.

Frugal Date Idea #8 Play Board Games

Get a bottle of wine and your favorite board games from your childhood to play together.

It can be fun just thinking of frugal date ideas or ways to have fun without spending a ton. Surprisingly, most activities can be done for a lot less money if you just get creative with how you’re thinking about it. What are some frugal date ideas you have?

Saving Money

5 Tips to Save Money on Gas

5 Tips to Save Money on Gas

This post may contain affiliate links. Check out my Disclosure Policy for more information.

The summer months usually mean more driving because of the beautiful weather and usually some time off. Unfortunately, gas companies know this and hike their prices up so kindly. Currently, gas prices continue to climb and I’ve been finding myself going over budget basically every month because it keeps increasing. Because of this, I have been focusing more on ways to save money on gas.

1. Don’t Buy Cheap to Save Money on Gas.

I know. This sounds counter productive. But, I learned the hard way the importance of good gas. I’m all about convenience when it comes to gas. So, I always bought gas from the same two gas stations that I passed on my way to work. It was also nice that the price was low. To me, gas is gas and I had no idea that there actually is a difference in quality. My car was running terribly for the last 4 years and the dealership couldn’t figure it out, they just kept replacing the muffler, 3 times, with the issues still happening. Finally, they realized it was due to bad gas and I needed new fuel injectors. Thankfully, they replaced these for free because they had failed to diagnosis the problem for so many years. Now that I am paying more for quality gas, I am noticing that I am getting better gas mileage and I know my car will run better in general.

2. Slow Down to Save Money on Gas.

This has made my gas go so much further for me. I try to keep my speed under 70 MPH on the highway now (I do live in NJ, so this makes me a snail on the highway lol!). It has allowed me to go from averaging 22 MPG to 28 MPG, obviously this in combined with all my tips, but slowing down on the highway has helped the most!

3. Slowly Accelerate to Save Money on Gas.

Along with tip #2, this has also helped me a lot making my gas go further. Whenever I need to accelerate I always do it slowly to burn less gas. Obviously, when you are accelerating it’s going to burn more gas, but by going slowly it helps in lower the amount.

4. Monitor Your MPG to Save Money on Gas.

My car has this wonderful little feature the tells me my MPG and it helps me so much. Whenever I see the number go down I know I am using more gas and maybe I need to adjust how I am driving. I’m a totally visual person, so having this constant reminder is super helpful. If your car doesn’t have this, you can calculate your own MPG when you have the chance.

5. Use a Rewards Card to Save Money on Gas.

One of the best ways I make gas more affordable is by using a rewards credit card (Find out why I use credit cards throughout my debt free journey here). Of course, the only way that this is beneficial and actually saves you money is if you pay your balance in full each month. If you have had credit card debt in the past, I definitely don’t recommend you opening an account just for rewards. It just isn’t worth it. I personally use the Chase Freedom card, which has rotating categories each quarter. The summer is 5% cash back on gas stations, which means I earn money back with each transaction.

These are the tips I have found to save me the most money on gas. I hope these tips can help you to save money on gas. What are some things you have done to save money on gas?

Saving Money

Tips to Make Your Fourth of July Cost Less

Tips to Make Your Fourth of July Cost Less

Holidays usually mean spending money, especially a summer holiday like the Fourth of July. Some people take advantage of the time off from work and head out on vacation. Some people have BBQs to celebrate the occasion. Even though money usually gets spent on holidays, it doesn’t mean a lot has to be. I’m definitely not saying staying home and binge Netflix to save money. Come on, I’m a twenty something, I definitely think you should be enjoying the fun holiday, especially since it’s the Fourth of July! Here are some tips I have for you to spend less this Fourth of July while still having fun!

1. Attend or have a BBQ.

BBQs are the best for the budget. The food you have at a BBQ is generally speaking cheap when you buy it in bulk. If you’re having the BBQ have everyone bring something potluck style, and if you’re attending, then you bring something to share. Potlucks of any kind are my fave during this journey because you get to eat lots of yummy food and socialize, but you don’t have the high cost of going out.

2. BYOB.

The fourth tends to be a holiday that include drinking, which obviously can get expensive. When I go to a BBQ I usually bring myself a couple of drinks and that’s it. Yes, I’m the girl bringing loose cans to a party, but I don’t care! I can’t drink much and this way I can stretch that 6 or 12 pack over multiple occasions.

3. Free fireworks.

With a quick google search you can find local, free fireworks in your area. Yes, setting off your own and having sparklers is a lot of fun, but it does cost money. The free fireworks are usually pretty great and much bigger than you can buy.

What are some tips you have to save money on the Fourth of July?

Saving Money

Buying in Bulk (Even Though I’m Single)

Buying in Bulk

Throughout this process I have found many ways to cut my spending, which is one of the ways to increase your wealth (or in my case, pay off my student loans). In order to make more money, you need to cut spending, increase your income, or do a combination of the two, which is what I have been doing. I’ve added many different streams of income that have allowed me to now live on my side hustle income and then put some towards my debt on top of my salary. But one of the best ways I have saved money is by buying in bulk, even though it’s just me, myself and I.

Now, this might sound crazy, but it really does save me a decent amount each month by buying the family size or bulk size. The reason this works is because the prices are almost always lower on the bulk and family size of products. To save even more money, you can buy the generic version of the bulk products. So, if you’re only buying for one, you really get a great deal from it, as long as you are smart about the items you buy in bulk.

Obviously there are certain things you just aren’t going to buy in bulk because you just can’t use them fast enough. For me, I never buy my greens in bulk, like spinach. This is because I can never use it before it goes bad. There is nothing worse than throwing out food. I feel like I’m just tossing my money in the garbage every time I have to.

There is a way to get around this and this one thing will be your best friend when buying in bulk, your freezer. I put everything in the freezer, it’s such an incredible way to stretch your grocery budget when buying in bulk. I always bulk buy things that can be put in the freezer and easily thawed. Another thing I like to do is freeze any fruits and veggies before they go bad. I find it so easy to throw some smoothie bags together of foods that are about to go bad. This way the food is saved and I can quickly make a smoothie just by dumping the bag into the blender.

Buying in bulk has allowed me to add extra savings to my grocery budget every single month. The less I spend, the more money I can put to my student loans. Every little bit counts. Do you buy in bulk? How has it helped your grocery budget?