Judy Lawrence is the author of The Budget Kit (6th Ed.) And founder of MoneyTracker.com. As a money trainer, Judy’s objective is to empower people to learn their budgets and shift to “flourishing” instead of “living” She recently sat down with us to acquire some valuable advice concerning budgeting, paying (and remaining outside of) debt, and saving money instead of squandering it.
Tell us a little about your own background. Are you excited about money management and personal finance?
My passion is finding ways to avoid waste of all kinds, such as capacity. If people have not learned expertise and core money management theories to move into a mode and get stuck at the manner that was living, their potential for pleasure, empowerment, and also contribution is lost or diminished. I would like people to understand that they can learn to control their money; but first they need to know the tools and the potential are available.
Is managing money and personal financing harder today than in previous generations? Why or why not?
Yes and no.
Both generations have pitfalls and advantages. The previous generations had financially easier lives because of fewer choices continuously tempting them , less access to credit, and fewer fundamental needs (cell phones, electronic equipment, etc. didn’t exist). Plus, in some cases they were learning about home budgeting at high school (at least with my experience growing up in Wisconsin). Prior generations did not have access to the very same resources and tools of today nor did they create as much money if there was only one income earner in the family.
The generation of today definitely has more of that which: choices income, money management tools, apps, applications, and unlimited resources on currency management. Many generations have a hard time understanding why the present generation cannot survive to the income they get. Just because a lot of information exists does not mean it is being accessed by people, understanding it, or using it effectively. And there’s also continuing confusion over money, labor challenges anxiety, and the debt burden. Even with the abundance of tools and resources on every facet of finance, you can imagine how private financing are harder .
As you teach an e-course known as “Budgeting Without Tears,” would you tell us some of the biggest frustrations or challenges people have in regards to establishing a family budget?
Not making money is the stressor, especially without strong budgeting abilities to learn to manage that restricted income. Yet attempting to figure out how and where to begin with establishing a budget having a decent income–could be extremely confusing, frustrating, and overwhelming with no knowledge, theories that are understandable, and tools.
Also, there tend to be a great deal more “moving parts” and chaos within households that might make it tricky to manage financing, such as families, variable incomes, leasing properties, investments, along with active children involved in many different expensive activities. And oftentimes, there’s not enough time or energy to get together with what going on with their private and professional lives.
All this is related to the dilemma of life overload that is overall. Today’s customers are completely overloaded with choices: lifestyle, basic requirements, and the media (to mention a few). Customers wind scattered, leaving little time to deal for gaining achievement and financial assurance.
Ongoing practice will help build and enhance confidence. It will also strengthen the ability to make prudent financial decisions, manage daily financing, save money, and learn to spend money, gain research abilities that are better, and help individuals to truly own their assurance and achieve success.
Have you got some suggestions to help those that are making an effort to pay off debt, remain disciplined, and remain focused on their debt-repayment goals?
- Start by knowing your compelling “Why?” What desire will allow you to stay inspired to enter the mindset and also make the modifications to remain focused and disciplined?
- Produce a sensible deadline for paying off the debt and a successful strategy for doing this.
- Take advantage of different snowball calculators to determine how much you can pay every month and how fast you can pay off the debt.
- Create a couple of habit modifications to free up an extra $50 — $100 per month and use that money toward your own debt repayment. It’s bringing your own drinks and lunches to work. Or try reducing your online shopping to “Requires” vs “Wants.” Consider trading, bartering, instead of buying every small thing or performing rentals.
- If you’re into apps, discover an app you enjoy that will help you monitor your custom changes and how much you’re saving. This will give immediate positive feedback to you.
- Construct in little rewards for sticking with your subject and concentrate each week–a thing which is very satisfying and not necessarily expensive or impacting your food plan. Ideas comprise: “you time,” dog moment, walks, reading, watching a favorite movie, or something you wish you’re doing.
What are several signs which indicate when a person could need external help managing their personal finances?
- There appears to be more month than money by the last week of each month or a few days away from the paycheck, and it is now a monthly event.
- Your credit cards have become your backup for basic family needs like groceries and fixed monthly invoices.
- You can hardly pay the minimums on the credit cards and the accounts are going up.
- You attempt to acquire more money to pay your monthly expenditures by resorting to payday loans, stopping your 401(k) contributions, or borrowing from family and friends… or your child’s savings.
- You do not want to start out your bills anymore.
- You can’t sleep at night and get distracted at work because of the financial strain.
What advantages might a prepaid debit provide somebody who’s fighting with money management?
Part of money management is currently staying on top of invoices. It’s not necessarily an issue of not enough money, but instead streamlining the financing and attempting to have organized. For every one of your invoices using prepaid debit cards, it is possible to set up. Will you have more peace of mind, but also a credit score if those credit card invoices are paid punctually.
Also, the last thing a person needs when fighting with money management is losing per penny to penalties. Green Dot prepaid cards possess simple fees–nothing hidden–so you understand just how much to budget. Plus, having up set invoice payments on a card card will help prevent late or missed payment fees, which puts money back into your pocket.
What is the benefit of employing a prepaid debit card instead of a traditional debit card that’s linked to your bank account?
Convenience is probably the biggest advantage. You are able to use prepaid debit cards to make purchases with or without a PIN, it accepted nationwide, and you are able to monitor your spending on line 24/7.
Ultimately, give us one thing we could start doing TODAY to save money which the majority of people frequently don’t think about.
Here are three:
- Slow down. The US Department of Energy estimates that for each 5 mph you raise your speed over 60 mph, you’re paying $0.21 extra per gallon of gasoline (based on a cost of $3 per gallon). Do the math and see how much you could save!
- Consume all the groceries you purchase so you’re not left throwing away leftovers, expired containers of food, and older spoiled produce.
- Borrow(from a buddy, library, or other sources) instead of buy… you truly don’t need to possess books, CDs, DVDs, tools, etc.. Borrow as much as possible and only buy what you require.
Need to apply a little more control over your finances? Buy a Green Dot Prepaid Debit Card now! View Green Dot’s simple fees here.
This short article was written and contributed to the Green Dot site by Judy Lawrence of all MoneyTracker.com. The views and opinions expressed here are those of the writer and don’t necessarily represent the views of Green Dot Corporation. For more from Judy, visit MoneyTracker.com.
The post Judy Lawrence of MoneyTracker.com: Learning How to Control Cash and Taking Charge of Your Personal Finances appeared on Green Dot Blog.