Tag: financial tips

How to weather the financial rollercoaster?

Posted on by Karac Avalron

So its 2023 and the rollercoaster we have been on financially in 2022 looks like it’s not going to let up in 2023. High inflation, low job force participation, governments manipulating interest rates, high demand from consumers and then the X factors, war’s pandemics etc. This is a unique point in time for global economics, any finance professional telling you what is going to happen is honestly full of @#$%. No one really knows, things are very unpredictable and on top of all that in the U.S. 2023 will start the 2024 presidential election process in earnest which will destabilize economic outcomes more.

So how do you “weather” this and get by? To be honest there is really only 2 things you can do directly to ensure you get through this. The first is increase your income, the second is decrease your spending. Now ideally you do both at the same time but one or the other should produce the outcome of you have more disposable income. Simply put, you should have more cash to spend or save and that’s what we want. Now increasing income can be a new job, a side hustle etc. Cutting expenses? Only you know what you can cut.

Money can’t buy you happiness, but it can buy you peace of mind

The point here is you need to increase your surplus cash anyway you can and bank it. Like I have said in other finance pieces basically increasing your “rainy day” fund. You see the finance industry will throw a lot of terms at you, nuanced financial strategic plans, and language that requires a financial planner to unwind. It’s how they make money, keeping you confused and frightened. Personal finance is a lot like losing weight, there is only really one way to lose weight, you eat less calories then you burn every day.

Don’t over complicate your personal finance. Spend less then you make. It’s a simple concept that requires discipline and planning to pull off. No one is going to do this for you, you have to do it. If you do you will create excess of cash that can be used to “weather” the financial storm or better, enable you to make purchases now that you otherwise weren’t able to because you did not have the discipline to create this excess.

Personal finance is a long term play. Be consistent, have a plan, get disciplined. You can do it, and if you achieve even modest results it can be very liberating.

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3 quick ways to find more cash

Posted on by Karac Avalron

Below are 3 things you can do right now to get more money. These will not be side hustles, or huge amounts of money but they will save you money over time and thus increase your income and allow you to become more financially solvent. As a reminder any finance advice you see on this blog is my opinion only, based on my decades of experience in the finance industry. Before making any financial decision always obtain as much information as you possibly can.

  1. Consumption apps: What does this mean? Simple example the Starbucks app. If you consume coffee, food, gas and you frequent a particular place regularly you should see if that place has an app that offers discounts. So many of them do now, drug stores, grocery stores, fast food, sit down restaurants you name it. What many of them do is offer you discounts based on your purchases. If you are going anyway why not? Do not go out of your way to buy more, just keep your consumption at its normal level and take advantage of their promotions and you will over time save money.
  2. Health plan reimbursements: Many health plans have an annual reimbursement for gym memberships, and working out. If as an example you walk regularly, you can have your doctor sign a letter stating you do so and submit it to your health plan. Many health plans give a % back to you of your cost (gym membership, shoes) or have a flat reimbursement annually $100-$1000 if you prove you were exercising preventatively. This can mean basketball league, after work softball, a gym membership, a martial arts class, yoga instruction. Even several state sponsored and federally sponsored health insurance plans have this kind of reimbursement.
  3. Sell stuff you aren’t using: Old golf clubs, Clothes, kids toys, pets supplies as examples. There is an entire economy out there on EBay and craigslist (and others) of people buying and selling used items. It’s not hard to set up an eBay account and sell things, with the internet you can get a good idea of the value of items as well. It maybe that you have an old leather jacket in your closet you haven’t worn in years and don’t plan to. What if that sold for $75 on EBay?

Bonus Tip!

Look through your stuff and see if you can identify hidden gems. Have an old comic book collection? An antique watch? A vase from your great grandmother? Some of these items may be worth a lot of money. Ever see a show called the Antiques roadshow? Most of those people have no idea what they have, and who knows, maybe that random painting you have in storage is worth something….

Thank you for coming by and supporting my blog I really appreciate it. Want to see another post like this one? Click here.

Finance and Anxiety: Back to basics

Posted on by Karac Avalron

So with 2021 right around the corner it’s a great time to review some basics for finance. If you are a regular reader of my blog you know I have been a finance professional for nearly 30 years. I give finance advice on this blog from time to time specifically for people with anxiety. You should always get as much information you can before making financial decisions, hopefully this blog and post is one data point you use.

There are basics everyone has to take care of, regardless of your financial situation. This year has been tough, maybe you lost a job, maybe you are out of income, maybe you are working but living paycheck to paycheck and just need direction. Below are ALWAYS the things you do first financially.

  1. Buy food: If you don’t eat and drink water, you die. Food is number 1. This doesn’t mean $50 dinners, it means you get paid, you go get huge bags of rice cheap, but you get food first.
  2. Pay Rent: You need shelter, even if it’s a rat hole its better than being out in the elements or sleeping in your car.
  3. Utilities: You need heat, you need electric, you need water. All of these things cost money and they should be top priorities for you.
  4. Clothing: You need clothes. Now you don’t need designer clothes but you need basics to be warm, basics to be presentable so you can obtain a job (if you don’t have one).
  5. Transportation: You have to have a means to get around. It can be public transportation BTW (yes this costs money too) and it can be a cheap vehicle but you have to be able to get to and from work.
The Sun will come out again.

The five things above are basics, I know they seem obvious but when you are on the ropes financially it’s hard to put things in order mentally. Maybe you are out of work and or out in the cold. What do you do first? Follow this list, even if you only get to say item 3, you are fed, you have 4 walls, you have heat.

Again this is very basic info but these are the things you take care of first every month when you are in financial straits. If you have money left over after these 5 items? Start banking it to build up an emergency fund. Many people who have anxiety and mental health issues find themselves in serious financial distress especially on or around the holidays.

Take a deep breath and get back to basics. If you have these 5 things covered you are okay, and you will make it. Take it one month at a time, and as time goes on the 5 basics above happen and you can start to build a vibrant financial future.

Thank you for coming by and supporting my blog I really appreciate it. Want to see another post like this one? Click here.

Finance and Anxiety: Back to basics

Posted on by Karac Avalron

So with 2021 right around the corner it’s a great time to review some basics for finance. If you are a regular reader of my blog you know I have been a finance professional for nearly 30 years. I give finance advice on this blog from time to time specifically for people with anxiety. You should always get as much information you can before making financial decisions, hopefully this blog and post is one data point you use.

There are basics everyone has to take care of, regardless of your financial situation. This year has been tough, maybe you lost a job, maybe you are out of income, maybe you are working but living paycheck to paycheck and just need direction. Below are ALWAYS the things you do first financially.

  1. Buy food: If you don’t eat and drink water, you die. Food is number 1. This doesn’t mean $50 dinners, it means you get paid, you go get huge bags of rice cheap, but you get food first.
  2. Pay Rent: You need shelter, even if it’s a rat hole its better than being out in the elements or sleeping in your car.
  3. Utilities: You need heat, you need electric, you need water. All of these things cost money and they should be top priorities for you.
  4. Clothing: You need clothes. Now you don’t need designer clothes but you need basics to be warm, basics to be presentable so you can obtain a job (if you don’t have one).
  5. Transportation: You have to have a means to get around. It can be public transportation BTW (yes this costs money too) and it can be a cheap vehicle but you have to be able to get to and from work.
The Sun will come out again.

The five things above are basics, I know they seem obvious but when you are on the ropes financially it’s hard to put things in order mentally. Maybe you are out of work and or out in the cold. What do you do first? Follow this list, even if you only get to say item 3, you are fed, you have 4 walls, you have heat.

Again this is very basic info but these are the things you take care of first every month when you are in financial straits. If you have money left over after these 5 items? Start banking it to build up an emergency fund. Many people who have anxiety and mental health issues find themselves in serious financial distress especially on or around the holidays.

Take a deep breath and get back to basics. If you have these 5 things covered you are okay, and you will make it. Take it one month at a time, and as time goes on the 5 basics above happen and you can start to build a vibrant financial future.

Thank you for coming by and supporting my blog I really appreciate it. Want to see another post like this one? Click here.

How to navigate the finance industry

Posted on by Karac Avalron

First a disclaimer: I have been a finance professional in many different roles for nearly 30 years. The advice I give on this blog should not be taken as fact but rather an educated opinion. When making financial decisions you should always do your own research and not trust singular voices a world away.

Now that out of the way let me tell you how to navigate the finance industry. The finance industry is the multi-billion dollar apparatus that uses fear to get you to give them money. I know it sounds sinister, because it is IMHO. “You need a million dollars to retire!!!!!!!!!” the shouts go up nearly daily. Really? Because I know many people who didn’t have a million dollars and had a good retirement.

Sure if you want to travel all over the world first class, yep you are going to need MILLIONS. If you intend on staying in the home you have purchased and been in for years, and live a normal life (dinner a few times a month a nice vacation once a year, a long weekend away twice a year as an example) then you need income to support this. Is this what you are doing now? Do you have millions in the bank?

The finance industry uses fear to get the outcome they want. They want you to give them money, so for a fee, they can invest it in products they created and give you money back in the future. Oh by the way there is no guarantee you will get MORE back, or even the same amount you put in initially. “As you age medical expenses go through the roof you need MORE INSURANCE”

Am I contagious?
OMG what is this guy talking about?

Another cry goes out. Perhaps you will, perhaps you won’t. The important thing here is to step back and observe what is happening. You are being sold, and then they are upselling you. I know you are amazed to read that the nice men and women SHOUTING you need to save millions might be selling you products to make THEM money but hear me out.

When you go to an auto mechanic and he says “you need a new alternator coil” how do you know you actually do? You went to him for his expertise, you are TRUSTING that he is giving you the right information. He might be, or he might be upselling you something you don’t need because you are ignorant of what you really need.

I know I am rambling a bit, it’s because the finance industry annoys me. Maybe I am jaded (ya I am) or maybe I have a better way. So here it is, the pay off, the moment you have been waiting for….

KARAC HOW DO I NAVIGATE THE FINANCE INDUSTRY.

You seek out teachers, not salesman.

Here is what I mean. All of the sarcasm I spewed above may actually be true. You may need millions, I don’t know your life or the life you desire to lead. Rather than place your trust in someone selling you a product, how about you place your trust in someone who is willing to teach you about the product? Finance isn’t complicated. I know you don’t believe me, because you’ve been conditioned not to. If you make 30K annually and you live on 29K annually you have enough to live. If you wish to live a life that requires 39K annually you have to make 9K more to do it.

Find someone who will teach you about finance, about how to make money grow. About what insurance you need at what phase in your life. Find someone to teach you about investing, about how to buy a car, about how to save for college. This knowledge is out there and it’s easier to obtain then you think.

You can navigate the finance industry with one simple step, commit to not be sold, commit to learning.

Thank you for supporting my blog I really appreciate it! Want to see other posts like this? Click here.

Another financial tip for people with Anxiety

Posted on by Karac Avalron

So if you have frequented this blog you know that from time to time I give financial tips for people with Anxiety. I have been working in finance for nearly 30 years now (yes I am ancient). This is by no means a financial blog, you should take any advice you see on my blog as my opinion only.

This will be a very quick post. Why? Because many articles/posts on financial advice are very long and unnecessary. Simply put, it doesn’t take several paragraphs or a short novel to impart financial advice. We are in uncertain times, the market still marches on. The underlying economic foundations, are still pretty strong. Supply and demand is still there it has been bottle necked for months, it will come back.

That said, the financial cycle has many ups and downs. Timing is critical when investing. What about when you have anxiety? How do you navigate this atmosphere? Protests, pandemics, Presidential Elections…. What do you do?

Answer: You don’t invest.

Huh ?

*Gasp* I know crazy talk right? The finance industry will always tell you to invest, its how they make money. IF you are unsure what to do, you pile up cash in your checking and savings account. It’s better to stockpile cash then move into a risk position when you are risk adverse. Basically, if you are not comfortable investing and it is giving you anxiety, you pile up cash, and you can invest later.

Now you will not get rich this way, but you certainly will not go broke either. “Ya but those accounts get ..5% interest” yes that’s true but there is nearly no chance of you losing your money. The last thing you want to do as someone with anxiety is enter into new endeavors that increase your anxiety. Take your time, educate yourself and when you are ready you can invest.

The market will be there when you’re ready. Hang in there you are doing great.

Interested in more finance tips for people with anxiety? Check out my post here

Top 3 Financial tips for people with Anxiety during the pandemic

Posted on by Karac Avalron

So before I get going the normal disclaimer. If you follow my blog you know I have been in the finance field for nearly 30 years (yikes!). Every finance tip I post here are my opinion, and should you chose to act on these tips you are 100% responsible for the outcome. That said, common sense and simplicity is always the best way to do financial planning. Trust your gut….

  1. Don’t look at your investments: If you have them, don’t look at them right now. The last thing you want to do is react to an extraordinary circumstance. This isn’t a normal environment and these types of events happen multiple times over a life investment cycle. As an example when I was starting my investments we had the first Iraq war and it disrupted the market. Making moves now when there are wide fluctuations in the economy is a bad idea. Hang tight, let the storm pass.
  2. Work on your personal economy with this time off: It’s likely you are home like the rest of us. This is a great time to set aside 15-30 min a week to focus on your finances. Here is what I do, Saturday morning from 10-11 I work on my personal finances. Pay bills, check balances, work on my budget, review my retirement planning. ONCE A WEEK. Please don’t tell me you don’t have the time, make it, even after all this passes. If you do this, consistently, over time you will have a complete grasp on your finances, you will be organized and it’s such a relief when you get to that point.
  3. Plan your comeback: When this pandemic passes, we are all going to have to get back out there in an economy that is a shell of what it was. Politics aside, it’s hard to argue that before the pandemic hit the economy was humming long REALLY well, the number don’t lie. Millions of people have lost their job, maybe you are one of them. You have to be ready to come out of this FAST. Update your resume, identify companies you want to work, keep In touch with your professional network.

In my lifetime I have seen several events like this that have had dramatic impacts on the economy. One of my first memories as a kid was sitting in a gas line with my father. You could only buy gas on certain days of the week, unemployment was high, inflation was through the roof. The market always bounced back and the economy always seems to fix itself. You should take some of this time you have to position yourself for the rebound. Remember this will pass, and before you know it will be 2021.

Whatever you do, take your time, use commonsense and always obtain as much information as you can before making financial decisions.