Category: Money

The past few years were record-breaking years for weather and climate-related disasters. From extreme heat, droughts, and floods to severe storms and wildfires, natural disasters were widespread.  According to Climate.gov, in the last two years, 40+ different billion-dollar disasters occurred in the U.S. alone.  Disasters… In Case of Emergency Preparation: How to Be Ready for an Emergency as published on Women Who Money The past few years were record-breaking years for weather and climate-related disasters. From extreme heat, droughts, and floods to severe storms and wildfires, natural disasters were widespread.  According to Climate.gov, in the last two years, 40+ different billion-dollar disasters occurred in the U.S. alone.  Disasters and other emergencies are not something anyone wants to experience. But no one is immune. Yet, many of us need to prepare. A recent survey indicates that over half of us don’t have basic supplies to withstand a natural disaster. That’s not to mention an emergency plan and adequate insurance. ‘In case of emergency preparation’ benefits everyone. It helps keep you and your family safe in a crisis. And it can lessen the psychological impact of a traumatic event. So, if you’re among those who feel unprepared, read on. Below are five basic steps to prepare for an emergency. They include an emergency plan, emergency kit, family meeting, insurance review, and more. In Case of Emergency Preparation How you prepare for an emergency isn’t as important as getting started. Even if you don’t get everything done right away, it’s better to be somewhat ready than not ready at all. As you prepare, consider your family’s unique circumstances and needs. For example, location, health, medical issues, age, and even finances could factor into your plan. #1 Make an emergency plan. Consider the types of emergencies most likely to occur where you live. For example, Are you in a flood-prone area? Do you live in a region that experiences earthquakes, tornadoes, or hurricanes? Do wildfires or extreme heat pose a threat? See FEMA’s National Risk Index and learn about risk factors in your area. Once you assess your risk, determine how you can lower it. For instance, can you get specific insurance or take precautions to lessen the impact? Next, decide what you would do if faced with different emergencies. How will you respond? Where will you go? How will you respond? Different emergencies call for different responses. So first, consider the most common risks you and your family face. Then create and write down a plan for those emergencies.* For example, house fires are a common risk for nearly everyone. So, your plan should include preparing for and dealing with fire. Everyone should know basic fire safety and how to use fire extinguishers in this case. And, of course, they should know how to escape a fire.  *Your family members’ ages and health needs will impact your emergency plan. And if you have pets, remember to include them. Where will you go? Whether you need to shelter in place, evacuate your home, or leave your local area, know where to go.  Where can you safely shelter at home if you must shelter in place? How will you escape your home in case of fire or flooding? What evacuation routes will you use if you have to leave home in a widespread emergency? What’s a backup route? What are the emergency procedures if you’re at work or school? How will family members connect if they cannot return home?  Where can you safely shelter if you need to leave home? If you have time to prepare for evacuation, you might take extra steps:  Shut off utilities to the home and unplug unnecessary electronics (if needed).  Grab your emergency kit (go bag) Wear and bring appropriate clothing and footwear. Let others know where you are going and your route.*  *Use Facebook and the American Red Cross Safe and Well websites to let others know you’re okay. #2 Build an emergency kit and “go bag.” Gather emergency supplies beforehand to save time and ensure you have what you need to stay safe. Below are some suggestions to get you started. Gather the basics. Everyone needs a few critical items in their emergency kit; basic survival needs like

Even if you are a natural optimist, there may be times when your financial future will seem dim to you. The cause could be as dramatic as a job loss or a medical emergency that completely upends your financial plans.  It may be the sudden… Three Tips for Staying Positive About Your Financial Future as published on Women Who Money Even if you are a natural optimist, there may be times when your financial future will seem dim to you. The cause could be as dramatic as a job loss or a medical emergency that completely upends your financial plans.  It may be the sudden realization of a long-brewing problem — a career (and salary) that has stagnated or a debt load that only grows. Or it may be a persistent, gnawing feeling that while nothing is critically “wrong” per se, nothing is quite right either.  You’re just not feeling on track to meet your long-range goals. Whether a new-found issue or an old sore, your gaze into the crystal ball is met with fog. Let’s clear things up, shall we? Step One – Determining the Root Cause Our opening move is to answer the obvious question: “Why do you doubt your potential to achieve your financial goals?” But we need to get down to the root cause.  For example, if you have turned pessimistic because you lost your job or your business failed (and who wouldn’t be in that circumstance!), we need to understand why this happened.  Be honest with yourself and record your responses to the following questions:  Were you impacted by changes in the economy? If so, describe what changed. Did some circumstance unique to your business or industry turn south? If so, explain those situations. Were your own actions (or inaction) in any way complicit in the loss? If so, spell out what you did (or failed to do) that led to your current condition. If your financial prospects seem grim because you’re carrying what feels like an impossible debt load, let’s interrogate this further: Is this debt an artifact of a past decision or circumstance? Could this circumstance re-appear? Record what caused the situation and describe what conditions could cause a similar problem. Is the growing debt load symptomatic of an ongoing imbalance in your cash flow? Are you tracking expenses and budgeting? (Avoid these common budgeting mistakes) Have you clarified your needs vs. wants? List the circumstances that are leading to your cash flow problem. In each of the instances above, we need to understand at a granular level what problem we’re trying to solve before creating an action plan. While confronting missteps in your journey may be a painful exercise, your path forward will be much straighter with the time spent in self-reflection. Step Two – Setting Actionable Goals Staying with our examples above, let’s consider our next step: You need a goal…or rather, a few goals. It’s all about the process. If your grim outlook stems from a lost job or job stagnation, your “get out of your funk” plan is to articulate (in writing again, please!) the concrete steps that you will take next:  “I will update my resume by ____ (date).” “I will update my social media profile and make sure my online community knows I am looking for work by ____ (date).” “I will complete X number of ‘informational interviews’ to learn more about my intended dream job by ____ (date).” And so on. Reflect back to the “why” you asked and answered in Step One. Your actions need to respond to the root cause of your job loss or business failure.  Should “I will enroll in online training to increase my marketable skills.” be on your list? Maybe you should include a goal such as “I will attend an upcoming networking opportunity to grow my small business.” Key point: Note that these are all actions completely within your control.  Moving forward and taking control A crucial part of moving to a more positive mindset about your future is embracing your agency and focusing your actions on what you can control. If the problem is debt, your action plan starts here: Forgive yourself. Whatever you did or did not

Self-confidence is hard to define, yet it’s a concept we all feel and understand. Many believe it’s an essential key to success. When our confidence is high, it gives us the courage to speak up and try new things. But when it’s low? It feeds… 11 Ways to Increase Self Confidence as published on Women Who Money Self-confidence is hard to define, yet it’s a concept we all feel and understand. Many believe it’s an essential key to success. When our confidence is high, it gives us the courage to speak up and try new things. But when it’s low? It feeds our doubt and holds us back. Everyone has low self-confidence from time to time. Doubt and fear are natural human emotions, even for the most self-assured. But perpetual low self-confidence does more than keep you from pursuing your dreams, it can spill over into every aspect of your life. The great news is self-confidence is like a muscle you can exercise and strengthen! So, if a lack of confidence impacts your personal or professional life, you can take steps to improve it. Below we’ll define self-confidence and why it’s so important. Then, we’ll share 11 effective ways to develop your sense of confidence. “As soon as you trust yourself, you will know how to live.” – Johann Wolfgang von Goethe What is self-confidence? Self-confidence is trusting your ability to handle different aspects of life. That is, a positive feeling about yourself affects your actions and emotions. Self-confidence means knowing who you are, what you want, how you think, and what you believe. feeling good about who you are, even when others don’t agree, and even when you make mistakes. you understand your strengths and weaknesses and can live a full life with them. respectfully standing up for and taking care of yourself. Why develop self-confidence? Self-confidence improves your quality of life in many ways—personal, professional, and financial. And though it doesn’t make problems disappear, it does make you more resilient when faced with difficulties. A healthy self-belief helps you feel better mentally and physically.improves the quality of your relationships.creates healthier coping skills.opens you up to new ideas and experiences.enables you to take action. 11 Approaches to Developing More Confidence Self-confidence isn’t just positive thinking, nor is it a fixed matter. The good news is you can work to improve it! Even if you start with only one or two methods below, you’ll begin feeling a difference as you shed negative thinking and beliefs. “You wouldn’t worry so much about what others think of you if you realized how seldom they do.” – Eleanor Roosevelt #1 Don’t compare yourself to others. Here’s a concept that’s easier said than done! Making social comparisons is a common, ordinary, human thing everyone does from time to time. Sometimes, comparisons aren’t all bad – like when you measure yourself against others in an area you want to improve. It can motivate you and, if you’re successful, give you a boost of confidence. For example, the positive results of a friend paying off a loan might inspire you to pay off your debt faster. But generally, comparing yourself to others does more harm than good. It can lead to feelings of envy, hostility, poor self-esteem, and inferiority (and even superiority). Also, comparisons are often biased; it’s easy to take a snapshot of someone’s life and fill in speculative details. For example, let’s say you see a friend’s job promotion on social media. You might feel bad that you haven’t had a raise in a long time. There’s likely a twinge of envy and a tendency to assume reasons they’ve received a promotion (and you haven’t). Ways to limit social comparisons: Recognize triggers. Notice when people or activities trigger harmful comparisons. Accept them as normal but unhelpful, and avoid them when you can. Focus on your own life (and values). Everyone does life differently; let go of the “shoulds” and remember life’s not a contest. You’ll be more satisfied living your values than someone else’s. Practice gratitude. Commit to a regular gratitude practice, like a gratitude journal, to focus on the good things in your life. Conquer imposter syndrome. Honor your hard work, resiliency, and

People often turn to loved ones in times of financial hardship. They might ask for a loan, financial advice, or help with budgeting or finding a job. But I have a relative that recently asked for a different type of financial help. Their financial circumstances… What I Learned Helping a Relative with Financial Decisions as published on Women Who Money People often turn to loved ones in times of financial hardship. They might ask for a loan, financial advice, or help with budgeting or finding a job. But I have a relative that recently asked for a different type of financial help. Their financial circumstances suddenly changed, and they were utterly overwhelmed with indecision. So, they asked me to help them through some critical financial decisions. My story: Helping a loved one with financial decisions My loved one and I have openly discussed financial topics over the years. And our money talks revealed our mutual appreciation for frugality. Yet our discussions also uncovered very different approaches to saving and investing. My relative had a much more conservative approach to money than I do. On investing, they focused on scarcity and fear of loss. And as a result, they limited their exposure to the stock market. So, when I shared that my husband and I take a (very) different approach by investing a large percentage of our savings in the stock market, debates ensued. We both held strong opinions and often tried to convince the other of the error in their thinking. But neither of us got anywhere; we agreed to disagree. And it just so happened that the support my loved one asked for was about investing decisions. They understood I was no expert but knew I had experience with my own investments. Plus, they trusted me to help them make the best decisions for them. Yet, given our different views, I knew I must set aside personal opinions if I was to be of any help. To support my loved one in making the best decisions for them, I would need to listen carefully. And I must help them dial in on their goals.  The process took weeks of research, sharing resources, and regular conversations. Next, we consulted with a couple of financial advisors. Lastly, we laid out all available options.  After a while, my loved one’s decision became clear as we discussed their goals and options. Then, they felt empowered to move forward. Despite our different philosophies, the process worked because of a few key factors. And it has more to do with open communication than financial viewpoints. Related Reading: Do You Need a Certified Financial Planner, CFP®? What I learned assisting someone with financial decisions So, if you’re ever asked to help someone with a significant financial decision, what I learned might be useful to you too! Don’t get me wrong – I made plenty of mistakes! Sometimes I inserted my thoughts and opinions, which was never helpful. I had to remind myself that my loved one’s decisions need to be their decisions – not what I would do in their situation. Below are the key takeaways I learned through the process. These are things that helped me help my loved one with financial decision-making. They have to want help: Respect their boundaries. In any helping situation, there must be mutual respect for boundaries. So many times, boundaries are unspoken, but unclear boundaries leave each person guessing. So it’s best to be honest and direct. It was super important for my relative to be in control. So, I offered my support and told them to talk to me anytime. But I limited specific help to what they requested. If they clearly did not want help, I respected that. But I could still offer to be there if they wanted to talk. One caveat is that sometimes loved ones need help with their finances when they don’t (or can’t) ask for it. So, sometimes families have to step in when cognitive or health difficulties make it challenging for relatives to ask for help. But my relative is healthy and capable of making and carrying out their own decisions. So, helping them was only appropriate because it was something

I couldn’t help but look. On the release of the November 2022 US inflation report, the word “inflation” yielded 845 million Google search results. After peaking at 9.1% in June 2022, inflation is still having a moment. So it’s not surprising that you may feel… Inflation Keeping You Behind Despite Earning More? What to do as published on Women Who Money I couldn’t help but look. On the release of the November 2022 US inflation report, the word “inflation” yielded 845 million Google search results. After peaking at 9.1% in June 2022, inflation is still having a moment. So it’s not surprising that you may feel hard done by. You’ve done all the right things – wrangled your debt situation under control, and started to invest consistently in your future – and your reward is a gaping hole in your monthly budget due to a broad increase in prices. Now what? Is Inflation Personal? For many of us, our overall purchasing behavior has already been affected by the current high inflation period. Data for November 2022 retail sales revealed that discretionary goods, such as clothing, electronics, and sporting goods, fell as consumers diverted more of their budget away from these spending categories to food. As a next step, understand my personal inflation rate is not your inflation. Each household’s experience of inflation is unique. When you dive deep into the Consumer Price Index (CPI) figures, it’s abundantly clear – while some prices are rising a lot, others are seeing only a modest rise or even a fall. Knowing precisely what your personal inflation triggers are will be the basis for your strategy to lessen inflation’s bite on your budget. For example, in the most recent CPI report, we saw an actual decline in the price of eggs against continued rises for cereal and baked goods. The implication is obvious: cold breakfast cereal is out, omelets are in. (Or make-ahead egg bakes!) Vegetarians won’t be happy to hear this, but carnivores will rejoice; meat prices (including fish and poultry) are waning as fruit and vegetable prices continue to charge ahead. These specific examples may seem trivial, but the general point is not: The age-old way to deal with inflation is to let go of ingrained buying habits and switch to lesser-priced alternatives. With some prices easing in late 2022, opportunities to do so exist. Over the coming months, we need to continue to overcome our feeling of general despair and actively seek out these openings, nimbly shifting our preferences to take advantage of price slides when we see them. And in fact, many of you are already doing this; the latest data from retailers show double-digit growth in the sale of private label (aka store brand) grocery items. More generally, the tried-and-true advice to pre-plan meals has never been more important than now. Your ability to actually take advantage of the relative shifts in food prices is not only dependent on being flexible in your tastes while in the grocery store. You must combine it with the willingness to plan – or even prepare – meals in advance based on what you find attractively priced that day. Do You Need to Buy Right Now? Timing may also be your friend. It’s clear (at this writing) that inflation, while still high, is easing. Supply chain disruptions, the source of so much heartache since the pandemic, are lessening. We saw this most vividly in the November decline (yes, decline!) in used car prices, which were previously driven to atmospheric levels by the shortage of new cars. At the moment, it never seems possible, but what goes up very often comes down (eventually). The cost of housing has also been a critical driver of 2022 inflation and was even the biggest CPI culprit at the end of 2022. But it is expected to ease somewhat in 2023, as higher interest rates dampen buyers’ enthusiasm. In addition, new housing stock currently under construction will reach completion, increasing supply in some markets. Your play? If you believe the trend in the sector of your particular interest is favorable, wait it out. You may be rewarded for patience if you change your spending habits and delay making

The many fans of Jill Schlesinger – her podcast “Jill on Money,” her appearances on CBS News, or her 2019 destined-for-classic-status book “The Dumb Things Smart People Do With Their Money” – will likely need little convincing that the “The Great Money Reset” deserves a… The Great Money Reset – Book Review as published on Women Who Money The many fans of Jill Schlesinger – her podcast “Jill on Money,” her appearances on CBS News, or her 2019 destined-for-classic-status book “The Dumb Things Smart People Do With Their Money” – will likely need little convincing that the “The Great Money Reset” deserves a spot on their reading list. For those unfamiliar with the Schlesinger style (New York City smart ass), her new book will be bracing and ultimately enjoyable. “The Great Money Reset” is firmly planted in the post-pandemic world. It picks up at the point where the reader has already decided to fundamentally reset their life and livelihood, either by choice or unfortunate circumstance. Whether it’s early retirement, loss of a spouse, or a new career, the change is gonna come; now the questions are, “How do I execute this change? How can my money support my decision?” A Peek Inside Although Schlesinger does not deploy the acronym FINE (Financial Independence, New Endeavors) until almost the end of the book, “FINE” could very well have been the book’s title. It’s her rebuttal to the FIRE (Financial Independence, Retire Early) movement, recognizing that not working – actual retirement – is often not the goal. If there’s one recurring theme in this book, it’s that the resetting reader needs to be able to articulate the specific text of what they want from their life, not just the headline. With that said, much of the advice proffered applies to any situation, and one could be forgiven for suspecting that a certain amount of literary padding may be at play. Clearly, Chapter 2’s (“Curb Your Consumption”) admonishment to live below your means need not have taken much more than a paragraph or two. With that said, the advice in the chapter on investing, while completely fundamental, probably can’t be repeated often enough. The book is at its strongest when it focuses on the specific money strategies to consider as you seek to operationalize your life reset. “Put Your House in Order” (Chapter 6) is essential reading and can be summed up with one particular, compelling quote: “Equity equals choice…” Her argument for why you may want to sell your home to support your reset is refreshing and perhaps contrarian. “Resetters” are also well-advised to carefully scrutinize the money tactics proposed related to taxation generally and taxation of retirement investments specifically. As tempting as it may be to gloss over the recitation of tax rates, you will come away convinced that a firm understanding of basic tax law is essential to your reset plan. (On the other hand, the extensive real estate devoted to charitable giving tax strategies seems oddly placed in a book of this theme.) Is entrepreneurship part of your plan? “The Great Money Reset” does not break any new ground here (Have plenty of financial runway. Test drive your idea before you quit your day job.). Still, Schlesinger does consider a less explored reset, when and how to chart the selling of a successful business. The uses and misuses of further education as part of your money reset are amply demonstrated by multiple examples centered on the question, “What education – how much, what type, from who – is actually required for your reset?” Her vignettes illustrate how our non-financial biases about the varying paths to higher education influence our choices. If you consider further credentialing as part of your reset, this book is necessary for this chapter alone. That is only one of many questions posed, of course. As is inevitable in any book of this nature, much of the prose employs the Socratic method. To a great extent, “The Great Money Reset” is a list (a very long list) of questions that the reader can only answer. These are the essential money-related questions you need to have answers for as you plan for how you’ll make your reset a

Many stay-at-home moms want to supplement their family’s finances with a side income.  But being a stay-at-home parent takes a lot of time. One study showed stay-at-home moms work over 90 hours a week!  In other words, stay-at-home moms struggle to find time to earn… 12 Passive Income Ideas for Stay at Home Moms as published on Women Who Money Many stay-at-home moms want to supplement their family’s finances with a side income.  But being a stay-at-home parent takes a lot of time. One study showed stay-at-home moms work over 90 hours a week!  In other words, stay-at-home moms struggle to find time to earn money. So, the less hands-on a side income is, the better. That’s why many stay-at-home moms who want or need to make extra money love the concept of passive income. So, if you’re looking for passive income ideas, read on to explore the possibilities! What’s passive income? Before we get into passive income ideas, we must define passive income—and make a disclaimer. Passive income means you earn money even when you’re not spending time at work. So, you’re not continually trading your time for money. On the other hand, active income means trading your time for money. In exchange for spending time at a job, you receive a paycheck. So, if you stop working, you don’t get paid. The passive income ideas in this article don’t require you to be at work to earn money. But here’s the disclaimer – when it comes to making money, there’s nothing truly passive out there. Any way you earn an income is likely to take at least some time and effort. Most passive income ideas need upfront work and ongoing investment of time. But that doesn’t mean it’s not worth pursuing! With most passive income ideas, you’re your own boss. And you can make money even when you’re sleeping, spending time with your kids, or on vacation. It means you’re only sometimes trading your time for money. Plus, it offers flexibility, which is great for stay-at-home parents. With that in mind, read on for some great passive income ideas for busy stay-at-home moms. Related: Active vs. Passive vs. Portfolio Income, the differences Passive income ideas for stay-at-home moms Invest your money Investing in the stock market is the most passive of all income-generating ideas. And if you’re patient and consistent about investing long-term, you can build future wealth. And despite what many people think, you’re not required to be an expert to start investing. Plus, it’s possible to get started with a small amount of money.  Yet, like other passive income ideas, investing comes with risk–and it’s a long-term strategy. If you’re risk-averse or have short-term financial goals, you might explore options besides stocks. Consider high-interest savings accounts, certificates of deposits, and treasury, municipal, and Worthy Bonds.  Related reading:  Make Your Money Work Hard, So You Don’t Have ToHow to Begin Investing in Stocks [Stocks 101]What Do I Need to Know About Buying Bonds? Create and sell printables Making and selling printables online at an Etsy shop is an excellent way to earn extra money. Some sellers have even been able to turn it into a full-time income. You don’t have to have design skills to start making printables, start-up costs are low, and you can do it on your own time. And once you create and list the printables, there’s little hands-on time.   If you want to know where to begin, check out our friends Julie and Cody’s E-Printables Course! It’ll save you time and help you earn money more quickly. Sell stock images (licenses) If you have a knack for great photography, consider selling your photos. Selling photos under a royalty-free license is a relatively passive way to make money.  It takes time to build a portfolio that makes money. But each photo gets used repeatedly, so it’s little ongoing work once you list your images. Plus, stock photo agencies handle the sales for you (though they make a commission). If you choose to sell images, use well-known sites like Alamy, Shutterstock, and iStock. Sell your digital art online Digital art is more popular and accessible than ever. So, if you’re a photographer, graphic designer, or

If there is one thing that personal finance gurus all seem to agree on, it is this: You should have a Roth IRA account. Alongside budgeting and having an emergency cash reserve, it has assumed its place as bread-and-butter advice. And why shouldn’t it?  What… Everyone says I need a Roth IRA. Do I really? as published on Women Who Money If there is one thing that personal finance gurus all seem to agree on, it is this: You should have a Roth IRA account. Alongside budgeting and having an emergency cash reserve, it has assumed its place as bread-and-butter advice. And why shouldn’t it?  What could be more attractive than being able to salt away thousands of dollars each year, have that money grow over decades free of tax, and then withdraw both what you contributed and what you earned in dividends with no tax liability at all? What could possibly be more delicious? But, of course, one size never truly fits all. The near-universal recommendation to open a Roth IRA account ASAP is no exception to that rule. First things first… Do you have a cash reserve? According to a 2021 survey, 25% of American households reported having no emergency savings at all.  As much as you may want to jump straight to investing, which I freely admit is far sexier than a savings account, a Roth IRA (or any investment account) is not the place for your emergency fund.  Firstly, there is usually a steep penalty (10%) for withdrawing earnings from a Roth IRA before you are 59 ½ years old. (For more details, see this page on the IRS website: Topic No. 557 Additional Tax on Early Distributions From Traditional and Roth IRAs.) But more broadly, the whole point of investing (instead of saving) is to assume risk to earn a higher return. In the long run, this can work out just fine. In the short run, however, losses will inevitably occur. You do not want to be in a position of having to sell shares in your account, locking in losses, just to pay for a new set of tires. Do you have access to a 401(k)? If you have crossed building a cash reserve off your to-do list, and are ready to invest for the long term, next consider your workplace retirement plan if you have one. Particularly whether you’re contributing up to the maximum allowable annual limit ($22,500 in 2023 and an additional $7,500 for those aged 50 or older). There is truly only one killer app for retirement saving, and that is the paycheck deduction.  It is the fundamental difference between saving for retirement through your workplace plan (your 401(k), 403(b), or similar) and using an IRA. The paycheck deduction is superior because you never experience, even momentarily, having the money available to spend. Instead, you internalize the deduction in your thinking (and budgeting), just as you do taxes withheld. Better still, some companies allow you to set up an automatic annual increase in the amount of your paycheck that’s invested, gently nudging your savings rate up over time. Even putting in place an automatic transfer from your checking account to an IRA is the second-best option. It’s simply too easy to turn it off when things feel “pinchy.” You will almost surely find multiple reasons to not increase your contribution regularly as other priorities crowd in.  Diverting a portion of your overall retirement investing to a vehicle outside of your workplace account could, if you are not diligent, result in a lower level of savings. And don’t forget, the contribution limit for a Roth IRA is far lower than that of a 401(k). In 2023, the maximum annual contribution is $6,500, or $7,500, if you are at least 50 years old. Should you have a Roth IRA plus a 401(k)? With all that said, reasons do exist that may lead you to choose a Roth IRA even if you are not fully utilizing your 401(k), contributing to the maximum annual limit. (Of course, you should always contribute at least what is necessary for an employer match if offered.) 1. Tax diversification.  In the olden days, workplace retirement plans came in only one

In early 2018, I left my corporate career in human resources to go on what I then called a sabbatical. Five years later, I’m a freelance writer, business coach, and writing mentor. The in-between is a journey I reflect on often, and I’m grateful to… A Freelance Writer Reflects on Five Years In as published on Women Who Money In early 2018, I left my corporate career in human resources to go on what I then called a sabbatical. Five years later, I’m a freelance writer, business coach, and writing mentor. The in-between is a journey I reflect on often, and I’m grateful to have the opportunity to share it with you. Why I Started Freelancing I started freelancing accidentally. During my sabbatical, I launched a blog that partially focused on personal finance. I made connections within the niche via social media and, after a while, wrote a guest post for a prominent website in the space.  When I got paid for my work, a lightbulb went off. If I could earn $50 writing, I could earn $500, $5,000, and more. So I immediately started looking for platforms I could contribute to regularly. My first steady client was Women Who Money! As a few dollars turned to thousands, I realized I had met the goal of my sabbatical: finding a location and schedule-independent way to earn a living. That way, I could fully show up for myself and those I loved. I could work around my life rather than live around my work. Want to know more about my backstory? Check out this Women’s Money Talk article. Benefits of Freelancing During the last half-decade, I’ve enjoyed many benefits from freelancing — some expected, some a surprise. Of course, I’ve loved:  Creating my own schedule, entirely in charge of where and when I work. Being able to scale my freelance business up or down based on the ebb and flow of my life. Choosing which clients to work with and which assignments to accept. But I’ve also deeply appreciated: Forging relationships with other freelancers and entrepreneurs (they are your friends, not competition!) Gaining confidence when it comes to asking for money. Getting pushed out of my comfort zone (time and again!). Being able to fully step away from my business for more than three months when my dad passed away in 2019. I knew from the get-go that freelancing would provide the freedom and flexibility I wanted. But I didn’t realize how much that would matter until my father got sick. Then, I got to put everything else in the world on hold to focus on him, my family, and my mental health after his death. Freelancing gave me the precious gift of time. I also couldn’t predict how much growth I would experience as a small business owner. I’ve met more people and gained more knowledge in the last five years than in the 30+ years before! Related: Should I Quit My Job to Freelance? [The Pros & Cons] Challenges of Freelancing Naturally, my journey hasn’t been all chai lattes and impromptu naps. Despite mostly enjoying the ride, I’ve also dealt with my fair share of challenges. There have been obvious issues, such as: Not having employer-sponsored benefits (namely health insurance and a retirement savings plan match) Not getting paid when I don’t work Having to navigate paying my self employment taxes (I recommend getting an accountant as soon as you start making real money.) Having to always hustle for new and better clients Budgeting with variable income (the feast or famine phenomenon is real!) But I’ve also experienced some unanticipated hiccups, like: Losing multiple clients in a short period Having potential clients express interest in working together and then ghosting me  Dealing with projects that didn’t play out as advertised Chasing payments for completed work (I thought I would need a lawyer to collect several thousand dollars from a client. Fortunately, it didn’t come to that.) My biggest takeaways from these challenges are continuously fostering connections in your network and getting all gig details ironed out in advance and documented in writing. That way, you can call upon your circle when you run into tough times, and there’s never

Venmo is a payment app that makes sending and receiving money easy. And with over 80 million users and two million merchants, it’s super convenient too.  But, like all payment apps, Venmo has its downfalls. For example, there are fees for some transactions, and it… Do You Venmo? An easy way to send and receive money as published on Women Who Money Venmo is a payment app that makes sending and receiving money easy. And with over 80 million users and two million merchants, it’s super convenient too.  But, like all payment apps, Venmo has its downfalls. For example, there are fees for some transactions, and it can be difficult to cancel payments. And like other payment apps, users need to be aware of scams. Is Venmo right for you? With so many payment apps available, it’s tough to know what’s best.  In this article, we’ll look at what Venmo is, how it works, its fees, and more – so you can decide if it’s a good fit for you.  A Venmo Review Venmo is a peer-to-peer mobile payment app designed to send and receive money from family, friends, and authorized merchants. It’s a convenient way to split bills with friends or send money to family. As long as a person is a Venmo user, you can pay or request money from them. Plus, you can use it to buy items from approved retailers. Once your Venmo account is set up, you can make payments from your bank account, debit card, or credit card. And you can transfer the money you receive directly to your bank account. The good news is Venmo doesn’t charge recurring monthly or annual fees. But some transactions have costs, like credit card payments and instant bank transfers. The social component of Venmo sets it apart. Like social media platforms, users can add friends. And for each transaction, you can like, comment, and message each other. Payments can also appear on a public feed, though this feature is optional in privacy settings. How does Venmo work? Venmo is a mobile-only app that works on Android and iOS smartphones. Once you download the app, it’s easy to set up and user-friendly. To get started with Venmo, download the app and set up your account. Then, link Venmo to your checking account, debit card, or credit card. Once you’ve completed this step, you can immediately send or receive money. Using Venmo to send and receive money Sending and receiving money on the Venmo app is intuitive. Use the Pay/Request button at the bottom of the home page of the Venmo app. Next, search for or enter the other party’s email, Venmo username, or phone number – or scan their Venmo QR code. Finally, add the dollar amount and complete the payment or request. You can use your Venmo account balance, bank account, or credit card to send money. But if you pay with a credit card, there’s a fee. When you receive money, you can keep it in your Venmo balance or transfer it to your linked checking account. Regular transfers are free and usually take one to three days. But instant transfers carry a fee. It’s also important to understand your credit card company may treat these types of payments as cash advances. Venmo fees Opening a Venmo account is free, and there are no recurring fees. Many types of transactions are free as well. For example, making payments with your Venmo balance, debit card, or bank account is free. And there are no fees for transferring money from Venmo to your bank if you choose a standard bank transfer (1-3 days).  Yet, some transactions carry fees: Credit card fees. When you pay with a credit card, there is a 3% fee. Instant Transfer fees. If you instantly transfer your Venmo balance to your bank account, there is a 1.75% fee (minimum $0.25, maximum $25). (Venmo also charges approved merchants a 1.9% fee + $0.10 for each transaction.) Other Venmo features The app’s primary functions are sending and receiving money and paying approved merchants.  But other lesser-known and used features include: Direct deposits into your Venmo accountCash-a-check depositsBuying or selling cryptocurrency (you can’t use crypto to make purchases)