The Best Way to Teach your Kids about Finance

Learning how to deal with our finances isn’t something that happens overnight. We definitely need to make some mistakes to understand what we should do with our money. The problem is when we make those mistakes in our adulthood, and let’s be honest, we all have been there. So, the only way we can prevent this from happening to our kids is by helping them to make financial mistakes while they’re young. The mistakes we want them to make are: having wrong priorities when it comes to buy things and not budget their money properly. How can it happen?

First- Earning the Money

1.Monthly Amount

Giving them a certain amount every month will mimic our salary.

2.Paid Chores

Give them chores that they don’t normally do and pay them for it, this will be similar to our extra hours at work.

Second- Their Goals

1.Goals

Help them write down all the things they want to buy, whether that’s toys, clothes, etc. Try to include something that would be in their “needs” category, if they were an adult.

2.Priorities

Have them write down the priorities of what they should get first.  

3.Budget

Ask them if they think they should have a budget or not. If they think they do, help them make it but stick to what they think it’s correct.

Third- The Mistakes

1.Mistakes

They will understand that their priorities were wrong (because they’ll most likely choose something that they want instead of what they need to be on top of the list). They will also understand that they need a “Plan of Action” aka a budget to get what they need.

2.Help them

Acknowledge their mistakes will help so much in their future. They’re going to need you to explain how things should be done, and don’t forget to show them that the mistakes they made were good and that they should be proud of themselves for being able to recognise and overcome them.

3.Encourage

Now that they’ve done all this, encourage them to not give up and give them a present or something they’d love to have. Dealing with finances will become a positive thing for them!

Thank you for reading it, and I’ll see you in my next post.

Cash Envelope System- The Benefits

I’ve written a post about the cash envelope system before, it explained how this system works. I’ve used this System for a while now, so I decided to make a post about the benefits of it.

I’ll leave the link of that post here, in case you’re interested.

1.Organisation 

In order to fill in the envelopes, I needed to get my budget right. So, I started to be more meticulous with it, and it made me a lot more organised with my finances.

2. Saved More Money

This was the only method that actually made me save a good chunk of money! For me, it’s the one that makes me be more accurate with my budget, and since I always pay things with cash, I started to realise the actual amount of money I was spending. It’s funny because when you pay things with your card, everything seems less expensive (at least for me haha). I was able to increase my percentage of savings due to this.

3. Under Budget

At the begging of the month, when I’d fill up the envelopes, I’d always hope to find some leftovers. So, I began to challenge myself to try to stay under budget. Obviously, I wasn’t able to achieve it every time, but whenever I did, I felt really accomplished.

Since I love this system, I decided to make downloadable envelopes that have the same theme as the Money Planner that I use.
There are different categories written on the envelopes, and the last envelope has no category in case you want to add a different one. The existing categories are Groceries, Rent, Household, Bills, Phone, Health, Clothing, Bank, Car, Personal, School, Kids, Pets, Travel, Savings, Restaurants, Entertainment, and Fun.
Every single envelope has a Budget Chart.

So, if you’re interested in them, I’ll leave the link here.

Envelopes

Thank you so much for reading it, and I’ll see you in my next post.

Beauty and Self-care on a Budget

Disclaimer: The content of this post isn’t sponsored. I’m just sharing with you a tip that will benefit you and help you save a bit of money. 

Taking care of our bodies and appearance is so important because it makes our self-esteem increase and confident people are happy people.

Today I want to share with you an online store that I’ve been a customer of for years now. This store makes taking care of yourself a bit less expensive.

www.maquibeauty.com is actually a Spanish website that only ships to the UK, Germany, France, Italy, Spain, and Portugal.

They always have sales going on. They sell makeup products, hair products, etc. The brands go from drug-store/cheaper to high-end.

They’re all original products but less expensive. If you love makeup as I do, then you’ll feel like you are a kid in a candy shop. There are several men products as well!

Like I said previously, I’ve been a customer for years and I’ve never had a problem with them.

This post was a bit different than what I normally post, but I thought it would be nice to share some tips like this. So, I decided to start a new category on my blog called Hacks, and I hope they’ll be as useful to you as they are for me.

I’ll see you in my next post.

Bad money habits you need to break

A while ago, I started making a lot of changes to improve my finances. I realized I wasn’t saving the amount of money I desired and after breaking some bad habits, my savings account increased.. a lot! So, today I’m sharing with you 4 bad habits you need to break and achieve financial freedom.

1.Living above your means

Many of us do this without even realizing. For example, I used to dine out every weekend and I clearly couldn’t afford that lifestyle at the time. Some people pay extremely high rents for what I can afford, etc. Figure out what kind of lifestyle you can afford and make the most out of it.

2. Not saving for an emergency fund

Emergency funds are crucial for us to overcome a crisis. Hopefully, we’ll never go through them, but having that money on the side can make a huge difference. This must be a priority.

3. Not having a budget

I know a lot of people don’t like making budgets, but this is key to be able to live comfortably. There are different techniques that will adapt to your life. Here are a few examples: “How to budget your income”, “The ultimate beginners guide to the 50/30/20 system” and “the ultimate beginners guide to the cash envelope method”.

4. Impulse buying

This was a big problem for me. Whenever I’d get into a store, I’d always leave with bags. It really adds up at the end of the month, so always think twice before buying and make sure it’s something you truly need. You can always add a category to your budget and, that way you’ll get to have fun but it won’t have a bad impact at the end of the month.

I hope this was useful and thank you for reading it. I’ll see you in my next post.

How to save money on groceries

On this post, I’ll be sharing with you 4 precious tips on how to save money on your groceries. There’s also a weekly meal planner available for you to download.

1.Plan your meals

Planning your meals will help you decrease the habit of buying unnecessary products. You’ll go to the shops knowing exactly what you need for your meals. I like to plan my meals weekly, so I made a printable to make your life easier! You can click here to download it.

2. Buy in bolk and freeze

This is a great way to save money because you won’t be going to the shops frequently to buy fruit and veggies, that way, you won’t be tempted to buy things you actually don’t need. Also, this really good to make smoothies and soup!

3. Make a budget

This is crucial. Knowing exactly how much you can spend on groceries will help you save so much money.

Tip: always try to stay under budget, you’ll get to use that money to buy other things or to add to your savings.

4. Avoid waste

Figure out the exact portions for you and your family. This way, you’ll avoid wasting food and end up saving a lot of money.

I also have a post on How to make a shopping list. It’s not only for groceries, but it will help you save some money as well.

I hope this post was helpful and, I’ll see you in my next post.

How to manage your time when you work at home

This post will help you manage your time, in order to be more productive and succeed at your job. There’s also a printable that you can download that will help you schedule your day.

Here are the steps to budget your time and still be productive.

1.Set Goals

Write down all of your goals for the day. Be realistic, don’t add too many things that you’ll know you won’t be able to achieve. That will only make you feel stressed and frustrated.

2. Budget your time

Out of the 24 hours of the day, take off the time you spend sleeping (8 to 9 hours) and budget the rest, in order to maximize your available time. You are left with 15-16 hours, set morning and an afternoon schedules.

I made a printable to help you design your perfect schedule for the day, click here to get it.

3. Set times

For each goal that you wrote down to accomplish during the day, add a maximum time to finish it.

4. Improvements?

Figure out what do you need to improve, what changes do you might need to make to be more productive.

Let me know if this helped you improve your time management. Thank you for reading it and, I’ll see you in my next post.

Self-care Investments that will make you save money in the long-term

Self-care should be seen as a necessity. It really is a need, it does well to our body and mind.

On this post, I’m going to focus on the physical self-care and in the future, I’ll make a post about self-care investments for our mental health.

These are things I realized I was spending a lot of money on and to be quite honest with you, I’m not willing to give up on my self-care habits because they do make me feel more confident and more happy with myself. Instead, I decided to make a few changes in order to save money in the long-term.

1.Nail Kit

I absolutely love having my nails done, but I realized I was spending 120 dollars every month on them… that’s 1,440 dollars at the end of a year! So, I decided to buy a nail kit and start getting them done myself. The whole kit (with the UV light and all of those products) was 200$. I’ll be honest, it took me a few tries and a lot of Youtube videos to get them perfect, but it’s definitely worth it!

2. At home hair treatment

My hair is super wavy and, personally, I think I look better with straight hair. So, twice a year I used to permanently straighten my hair at a salon. It is an expensive treatment so I thought I should try an “at home straightening treatment”.

The cons are:

-It’s a two people job. I definitely couldn’t do it by myself, fortunately, my mum was able to help me with it;

-It doesn’t last as long as the professional one does;

-The application is a bit messy.

The pros are:

-It feels like the chemicals are less strong (there are a few in the market that are natural and don’t have chemicals but I’ve never tried them so I don’t know if they actually work.)

-They aren’t expensive;

-You can do them at the comfort of your own home;

-My mum and I definitely had a fun time whilst doing it.

Overall, it is a good investment, it makes you save money and that is always a plus.

3. At home Gym

This is one of my favourites. I really dislike going to the gym, I’m never 100% comfortable but, at the same time, I love working out. Also, my gym membership was quite expensive.

I know I’m not the only one feeling this way about the gym, so I started to follow some Youtube workout videos. Then I bought weights and I will buy more equipment. I already had a threat-mile at home, so that helped me a lot. I definitely recommend this tip.

4. Permanent hair removal

This was definitely something I had been thinking about getting for a while. I decided to invest in an IPL device. There are several prince ranges out there which is a really good thing, I don’t remember the exact price of mine, but I know it wasn’t more than 200 dollars. This really works, it takes a lot of treatments to make the hairs completely disappear but it so worth it. Unfortunately, the biggest con about this device is that it doesn’t work on every skin colour or hair colour, you’ll have to do a little research to figure out if it’s something you’ll want to get.

5. Teeth whitening Kit

I’ve always been a bit sceptical about these, I always thought that only the whitening treatments at the dentist would work, until I tried them myself. I got mine at a pharmacy, so it was a little expensive but definitely less than going to the dentist doing the procedure. I recommend trying but just make sure to do a little research before you buy one, be sure that what you’re getting isn’t extremely aggressive to your teeth.

I hope these tips were useful and let me know which ones you’d like to try or already have tried.

Thank you for reading it, and I’ll see you in my next post.

Different types of savings everyone should have!

In all of my budgeting posts, I mention frequently the importance of turning a big portion of your income into savings. This is a habit we should all have because if we hustle and plan ahead when we are young, our future will be more peacefully and we will be able to enjoy every moment with the people we love.

If you’d like to learn how to budget your income then you should read the posts I’ve written about it: How to budget your income, Beginners guide to the “Cash Envelope” system and the Beginners Guide to the “50/30/20” method.

These are the types of savings we should all have.

1.Emergency Fund

This an extremely important saving you should have. It will help you “survive” in a crisis. If, for some reason, you are left without a job or can’t work because of an illness or you might need to assist a family member, then having this money will make things less stressful.

It should be 6 months to a year worth of bills and debt payments, as well as groceries and other needs.

2. Investment

Having money on the side for future investments that will make you more money, is actually a really good strategy for the future. For example, it could be money to invest in a property so you can rent it and make it a source of passive income. It should be something to start thinking once all of the more urgent savings accounts are more secure.

3. Long-term Savings

This type of savings is meant for something that you know you are going to want or need in the next 10 years. It could be, for example, a house, certain debts covered, university funds for your children, etc.

4. Short-term Savings

If you’re planning, in the next 5 years, upgrading to a new or bigger car/house or for example you want to renovate your space, or even a holiday this is exactly the type of savings account you’ll need.

5. Retirement

This is probably the most important one because we know this is inevitable, we are going to retire someday and we’ll need a fund to live off. Since it’s something more down the road it means we have more time to save but it also means that we have an opportunity to save more and make our retirement less stressing and more enjoyable.

So these are the several account savings we should have. I know not everyone has an income that can cover all of this, but what I want to transmit to you is that even a small amount of money towards them, will have a really positive impact on your future.

Check 5 simple ways to make extra money if you’d like to have a few ideas to earn extra money.

Thank you for reading it and I’ll see you in my next post.

Beginners Guide to the “50/30/20” System

There are several budgeting techniques and it makes the process of choosing which one works best for us a bit overwhelming. So, my goal is to explain the several existing methods, in order to make your decision slightly easier.

I also have a Beginners guide to the “cash envelope” system, if you want to learn a bit more about it.

The 50/30/20 categories

50%- corresponds to every need you have throughout the month. These needs might be rent/mortgage, utilities, groceries, car payments, etc.

30%- corresponds to your wants. For example clothes, memberships, subscriptions, dining out, etc.

20%- corresponds to your savings.

How to budget according to this system?

1.Figure out the exact amount you can work with

I always start with this step in all my budgeting posts but trust me, this is crucial in for you to succeed at it. You need to know the amount that is left after deducting your taxes, social security, etc.

2.Calculate the amount for each category 

Income (step1) * 0,5= Needs

Income (step1) * 0,3= Wants

Income (step1) * 0,2= Savings

These will be the exact amounts you’ll be able to spend on each category.

Tip: try to stay under budget in the needs and wants categories, that way, you will be able to add more to your savings. Enabling you to create future investments, savings account, an emergency fund or even pay off any debt quicker.

Feel free to adjust the percentages if you think that will benefit you. Overall, it’s a really good method to start a budgeting journey and increase your savings.

Thank you for reading it, and I’ll see you in my next post.

Beginners Guide to the “Cash Envelope” System

The “cash envelope” method is a great way to save money, to pay off debt and even to build your retirement account. It’s actually an easy way of achieving some of your goals, you get to save for that dream holiday, for the house of your dreams, for the huge wedding you’ve always dreamt of or even to plan the move for the country you’ve always wanted to live in.

So, here’s how this method works:

1.Figure out what you can work with.

Start with your tax and expenses free income. Know exactly the amount you’ll be able to take out of your bank to use it on the envelopes. Keep in mind, some things are paid with your debit card, just make sure to incorporate them on your budget.

If you need help making your budget, you can read this post that I wrote on How to budget your income.

2. The categories

This step may be different from mine. I’ll give a few examples with my categories, but you should adjust them to your life. Mine are: Groceries, needs, knowledge investment and fun money.

3. Choose the envelopes

Try to get envelopes with different colours, this will help you memorize which envelopes correspond to which categories and also because they’re cuter! I use paper envelopes but there are other envelope systems, for example, the Dave Ramsey’s.

4. Fill your envelopes

Now that you know your budget and you have the categories on your envelopes, you can start filling them with the specific amount that you designated for each.

Don’t forget to leave the money meant for the things you’ll pay with the debit card in the bank.

5. What’s next?

Well, now you go shopping and only spend what’s in the envelopes. Some people like to just have their envelops when they’re going shopping. To be quite honest, it’s something that bothers me, so when I go shopping I take the amount from the specific category and put it in my purse.

6. At the end of the month

Whatever is left on the envelopes and on my bank account that I didn’t use that month, I put it into savings. That was key to sky-rocket my savings account.

I really hope you try this method. Thank you for reading it. I will see you in my next post.