Keiki Edition - 2018 Aloha Friday Savings Challenge

Children learn financial behaviors from their parents. Whether you realize it or not, your kids are watching you and how you spend and save money. Set a good example for them by participating in the 2018 Aloha Friday Savings Challenge and let the kids join along with this modified version. 

It's simple, every Friday of 2018 your keiki will deposit a quarter times the corresponding day of the month. For example, on Friday, January 5, 2018 the deposit is 5 quarters or  $1.25 ($0.25 x 5) and on Friday, January 12, 2018 the deposit is 12 quarters or $3.00 ($0.25 x 12). Continue to do this through the entire year of 2018 and at the end of the year, your child will have saved $206.00. I've included a chart below to help them keep track of their savings. 

Make sure that they save their monies in a safe place and that they try their best to not dip in to the savings throughout the year. 

• Have some fun with this challenge and recycle an old bottle or box to keep their savings in. Let them decorate it, add a photo or drawing of what they want to save for for added motivation. 
• For younger children (7 years and under), use Aloha Friday savings deposits as a learning opportunity. Let them count out quarters as they deposit it in to their bank. 
• Bonus: It's a great way for infants/toddlers to develop their pincer grasp and fine motor skills. Caution: Keep an eye on them the entire time they are handling coins. All coins are choking hazards. Do not let them put the coins in or near their mouths. 
• For older children, get them involved with recycling cans and bottles to use that monies to deposit in to their Aloha Friday Savings or let them clean out the car or collect quarters they find around the house to deposit.

Happy Savings! 

2018 Aloha Friday Savings Challenge

The Christmas Holiday is now officially over and everyone is gearing up for the new year celebration. But if you're like 40% of the population, you'll be bringing Christmas in to 2018 with you in the form of Holiday debt. Most people plan on paying off the Holiday debt within the first 2-3 months of the new year, however majority end up paying throughout the year and beyond.

Don't let this be you in 2018. Join me on the 2018 Aloha Friday Savings Challenge. Similar to the 52 Week Savings Challenge, this Savings plan has a little twist on it. Here's what you do:

Every Friday put away/deposit the dollar amount that corresponds with the day of the month. For example, on Friday, January 5, 2018 you will save $5. And the following week on the 12th, you will save $12. Do this every week in 2018 and you will end up with $824 at the end of the year to help you pay for those holiday expenses and not have to carry the debt with you in to 2019.

Couple things to remember: Keep your money in safe place, which can include a separate savings account at a bank or credit union or at a trusted place in your home. Or if you are like many of my friends and colleagues, give your money to a trusted person who will keep it safe and keep you accountable to make weekly deposits and make sure you don't dip in to your savings throughout the year and keeps you on track to your end goal.

I've included a Savings Chart that you can print to keep track of your deposits.

Share this blog with your friends and family and invite them to join you on the Challenge.

Comment on this blog if you'll be joining in on the Challenge this year and subscribe to this blog by entering your email at the top right side of this page for updates and reminders for the 2018 Aloha Friday Challenge. Happy Saving!!!

Should I put my money in to...

In response to the overwhelming questions I've been asked in recent weeks in regards to the various social media "investments," I wanted to share a few things to consider before someone should decide to put their money into one of these "systems." 

I will not discuss the details about the actual "opportunities" floating around on social media and personal networks (i.e. You give a certain amount of money, with the promise to receive an amount higher than that at a later date or even the newly popular buying of cryptocurrency). I will not discuss the legitimacy or legality of these, nor will I try to convince anyone to put their money in to it or NOT put their money in to it. 

Here are 8 things to consider BEFORE you buy-in to one of these systems: 

1. Am I taking money away from being able to make on-time payments for my important living expenses such as rent/mortgage, utilities, transportation, food, etc. in order to put money in to one of these systems? 
2. Do I have an Emergency Savings Fund established for myself (and immediate family)? [$500-$1000 minimum] 
3. What is my investment risk tolerance? Am I in the financial position to be risky with my monies or should I be more conservative in the way I invest? 
4. What does my current investment portfolio or long term financial plan look like or does it even exist?
5. What kind of financial protection do I have in place for myself and those who depend on my income for survival? i.e. Life Insurance products 
6. Am I willing to risk personal relationships in the event the system does not work out in a friend or family member's favor that I introduced to system? 
7. What is my plan in the event I do increase my cash flow from the system? Will I use it for important obligations such as bills, debt or savings goals? Or do I plan on just blowing through the money since I wasn't really expecting the "windfall" in the first place? 
8. What is my plan in the event I do NOT get the monies I was promised? Will I still be able to pay my living expenses and live comfortably? 

Take from this what you will, I have experienced both success and failure with a variety of different investment opportunities, however I always made sure I was in the right financial position to make the initial investment decision in the first place. 

For more tips, advice and information about strengthening your finances, subscribe to the Money Mana'o Blog for updates or visit the blog archives for past discussion topics.

Also, feel free to comment. Please be respectful in your comments as this is meant to be a safe space for people to share experiences and questions about their path to financial prosperity. 

Lastly, share this blog to your family and friends who might benefit from the information provided. 

Spring Clean Your Finances

Itʻs the first day of Spring, so naturally everyone starts to think about Spring Cleaning. This year try these tips to Spring Clean your home and your finances.

1. The Little Things Add Up
While Spring Cleaning your home and/or car grab an empty jar or cup and collect the coins you find. Use this money to pay off a portion of any debt you have remaining or put it towards savings. Even if itʻs only $20 or less that you find while cleaning, thatʻs $20 less that will be accruing interest and adding to your debt.

2. Garage Sale
As you are cleaning you may find items that you donʻt need anymore, but that you could make a few bucks off of at a garage sale or by selling the items online. Again, designate the money you earn towards debt or savings.

3. Make Use of What You Already Have
Take an afternoon to clean out and look through your refrigerator, freezer, and pantry. See how you can get creative with what you already have to plan meals for the next 5-7 days. If you can manage to not have to buy anything at the grocery store for a week, use the money that you normally would have spent and put that towards debt or savings. Make this a regular practice (every 3-4 months or so) and you may be surprised at how much you can save in the process.

4. Clear Out The Mail Clutter
If you still receive paper mail, consider enrolling in e-bills and autopay. This will reduce the amount of mail you have coming to your home and is also eco-friendly. Going online also helps to organize your bills and having autopay helps you to not miss a payment and have to pay late fees or other penalties.

5. Organize Your Debt and Spending Online
I have used both Mint and LearnVest apps and online websites to keep my finances organized. Both of these programs link directly to your online accounts and keeps up to date records. Itʻs nice to see all the information in one place. The apps will also tell you how much total debt and total investments you have too. Itʻs a great reminder on how much progress you have made and how much progress you still have yet to achieve. These apps are FREE, however they will try and sell you credit watch services and credit cards/loans to help you consolidate. DONʻT fall for any of it! As it may seem they are looking out for you and trying to help you out, they are in the business to make money and will try to sell you products and services to do so.

6. Complete Your Monthly Budget 
Start working on next monthʻs budget. If you havenʻt already done so, start working out your monthly written budget for April. Be sure to take in to consideration any parties, special occasions or vacations you may have planned. Itʻs better to stay ahead of the game, instead of acting surprised about an expense you should have known was coming up.

Pick one or two of these tips to commit to in the next week. Share what you are doing with a friend and ask them to join you. Having an accountability partner to share successes and struggles with helps you stick to your goals.

Time to Evaluate your Savings and Spending

Typically, by now most people have either given up or revised their New Years Resolutions. Now that 2 months of 2014 is in the books. Itʻs a good time to evaluate how you are doing with your financial goals. Take this quick assessment to see how you are doing so far in regards to saving and spending:

1. Savings

A. How much have you saved so far this year? 

     Are you participating in the 52 Weeks Savings Challenge? Do you have a portion of you paycheck automatically deposited into a savings account? Do you put your extra change in a piggy bank or jar at the end of the day? No matter what you are doing to save money, keep up with it! Even if you only save $1.00 a day, youʻll have $365 more at the end of the year. 

B. Have you had to dip into your savings this year? What was it for? 

     Did a situation occur that made you have to use some of the money you saved? Was it that one pair of shoes that you had to have? Was it an emergency that came up and you didnʻt have enough in your checkings account to cover it? If it was an emergency, consider funding or using your Emergency Fund for these types of situations. 

C. Is your current saving plans working for you? Should you decrease your plan? Are you able to increase your savings? 

     Is the amount of money you are currently putting away for savings putting a strain on paying your bills? Consider, decreasing the amount. Although you should save or as they say "pay yourself first" you want to make sure you donʻt fall behind on your bills or have any late payments. If you end up with extra money at the end of the month and all your bills/expenses are paid in full, consider increasing your savings amount.

2. Spending

A. How many times have you overspent in the past 2 months? 

     Have you over-drafted at all this year? Was it an oversight on your part? Did you know that you were going to have to have an overdraft? To prevent overdrafts, create a budget and stick to it. Also, manage your bank accounts regularly. 

B. Have you tried an envelope system to control your spending? 

      An envelope system helps you to stay on budget. You put cash for your different spending categories. Once you have spent all the cash in the envelope, that is all you have to spend, until you refill your envelopes (weekly, bi-weekly or monthly). 

C. How many large purchases have you made so far this year? 

     How many purchases have you made over $500.00? Were they necessary purchases? Did you budget them in to your finances? Large purchases are inevitable, so make sure you have a plan to save for or work those purchases into your budget. 

If you could use improvement in any or all of these areas, choose 1 area to focus on during the month of March. Use these guidelines at the end of each month to help you make strides toward financial success.

Gift Giving Without Busting Your Budget

Reader Request:

How do you manage money and still honor family friendship obligations from parties to reciprocating gifts?

 

I've been asked this several times, so I figure I take a little time to share what I do along with some tips that might work for your family and financial situation.

1. Immediate Family Birthdays and Special Occasions

When I sit down to do my monthly budget and spending plan I make sure to look at who's birthdays, anniversaries, graduations, etc. will be occurring that particular month and be sure to work it in to my budget.

2. Invitations in Advance

If you are given invitations to parties in advance, meaning at least the month prior, again work it in to your monthly budget and spending plan. Even if you are not 100% you will be attending, work it in to your budget. If you end up not going, you now have extra money to put towards debt or have a little fun with.

3. Last minute invites

This seems to happen a lot to me, and I am a planner so this doesn't go over well with me. Nevertheless, if we receive a last minute invite we use our weekly spending allowance to purchase a last minute gift or if all else fails and I have something available I re-gift (See #6).

4. Set a spending limit

If you are on a tight budget, set a specific spending limit for gift giving. For children's gifts my spending limit ranges from $5-$15. For adult/family gifts my spending limit ranges from $10-$20. This may seem kind of frugal to some, however I try to put some personal thoughts into gifts (that's what counts anyways right?).

5. Make a list of Go-To Gifts

This is especially helpful for those last minute invites. Make a list of gifts that you can give just about anyone. For example, board games or books are an easy go-to gift for kids, especially if you don't know what new character or toy they are in to or what size clothes they wear. For adults, a bottle of wine or a small gift basket with goodies is always easy to pick up and who doesn't like a nice drink or snacks.

Super Saver Tip: If you see these items on sale and you have the extra money to purchase them, stock up, that way if you get a last minute invite you don't have to make a special trip to the store, which saves you even more time and money!

6. Re-Gifting is Ok

I am totally ok with re-gifting items that were given to me that are still new or that I bought extra of and have no personal use for anymore. Just be sure not to re-gift the same gift back to who you originally received the gift from. Or to someone who was there when you received it.

7. Handmade or Pinterest Inspired

Again, it's the thought that counts. Pinterest has a huge amount of DIY and handmade gift ideas that can be done inexpensively or even with items that you have around the house. If you have kids, get them involved in the gift making, who can get disappointed with a gift that has the special touch of a keiki. If you are good at baking their favorite treat, make them a batch. Not only are you not showing up empty handed to the party, but you are showing them that you took the time to make something you know they will enjoy.

The main things to remember when gifting on a budget are:

-Do not overspend to try and impress the recipient

-Plan ahead if at all possible

-Budget, Budget, Budget! Stick to your budget! No exceptions!

5 Wise (and responsible) Ways to Spend Your Tax Refund

Many of you have probably already filed or are getting ready to file your taxes. And majority of you are anticipating a tax refund. If you owe taxes, be sure to read my previous post: Ways to Prepare If You Own Income Taxes

For those of you who are expecting a tax refund, have you started thinking about what you are going to do with that money? Some of you have seen this Meme (or one similar) going around on social media.

As funny it is, it's even more funny because it's absolutely true. If you haven't noticed it's around tax return time that you see lots of ads for sales on TVs or you see an abundance of ads for those Rent-to-own stores. You might also see an increase in Used Vehicles posted on Craigslist or parked on the side of the road. I'm sure Jewelry stores also love this time of year, because they get an increase in orders for Hawaiian Jewelry. Although, it is nice to enjoy money and get things that you want. You must first make sure that all of your financial obligations are met and that you are in a financial state to spend money on things that aren't necessarily a necessity or things that won't bring you closer to a state of financial peace or success.

Whether your tax return is large or small, you should carefully consider how you will spend your tax return. Here are some responsible and wise ways to make use of your tax return:

1. Starter Emergency Fund 

If you haven't done so already, establish a starter Emergency Fund. This amount ranges between $500-$1000 depending on your income level and martial status.

2. Pay Off Debt Smallest to largest balance

Regardless of the interest rate for your outstanding debts, pay off the smallest balance you have. This will do 2 things immediately, (1) give you a sense of accomplishment, small wins help to provide the motivation needed to keep attacking your debt and (2) reduce the amount of debt accounts you have, which will help to better your credit score.

3. Put Money Aside for Annual Expenses

Many times we are so focused on our monthly bills that the annual expenses sometimes creep up on us even though we know that they should be coming. For example, car registration, insurance premiums, gym memberships, etc. This includes any big vehicle services that you might anticipate this year, for example if you know that you will need new tires this year, put aside what you think it will cost you, that way when you do need new tires it's not a Financial Emergency, as well as a Car Emergency.

4. Invest in Life Insurance

Use your taxes to pay for a life insurance policy. Invest in the financial security of those you love.

5. Start a Savings/Investment Account for your children

If you've been meaning to start a savings account for your children, use the money from your tax return and get them started. Depending on how much money you have to save/invest you might want to consider opening an UTMA or 529 Plan.

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