Debt & Frugality

As Didi says in the novel (Findependence Day), “There’s no point climbing the Tower of Wealth when you’re still mired in the basement of debt.” If you owe credit-card debt still charging an usurous 20% per annum, forget about building wealth: focus on eliminating that debt. And once done, focus on paying off your mortgage. As Theo says in the novel, “The foundation of financial independence is a paid-for house.”

How realistic is it to live only on cash?

Posted By Financial Independence Hub | May 26, 2016

Steve Repak

By Steve Repak, CFP

Special to the Financial Independence Hub

If you are in debt, you have probably heard over and over again that you should quit using credit cards and stick to using cash exclusively for purchases (aka “cash-only” purchases.)

In a previous article I explained that for some people it actually hurts to break a large bill like a $20, so only using cash may help you get your spending under control. I wanted to share some of the risks and benefits of a cash-only lifestyle and also show that you can still get out of debt if you want to use credit cards.

If getting out of debt is your goal, there are three things you must do in order to succeed regardless of whether you use cash or credit:

Spend less money than you take home each week
Build an emergency savings
Develop and follow a get-out-of-debt plan

Cons of using cash

Four secrets for overcoming Student Debt

Posted By Financial Independence Hub | May 18, 2016

By Barney Whistance

Special to the Financial Independence Hub

According to the Federal Reserve Bank of New York, 43 Million Americans have student loan debt. Recent graduates have the highest amount piled up, roughly $35,000 each, which means that monthly payment installments are around $350 – money that could be put to better use elsewhere. Here are the best ways to get rid of student debt, without even having to pay it.

1.) Be helpful. Volunteer opportunities are a great way to positively affect your larger community, while also helping pay down your debts. Volunteering also creates lots of tangible and intangible benefits. Find opportunities that will waive off your student loans, while you’re serving the community.

Some of the organizations where serving will help you waive your student loans are AmeriCorps and Peace Corps. They not only help you get your student debt waived, but they also pay you a modest living stipend and health benefits as well. If you are willing to join AmeriCorps or Peace Corps only to get your student loan waived off, make sure you qualify for their specific types of student loan waivers.

Other options include ZeroBound and SponsorChange: both programs that connect donors with recent graduates to help pay down their loans while volunteering. Taking advantage of the Military Loan Forgiveness Program, part of the Public Service Loan Forgiveness program can also pay off debt while providing excellent long-term career opportunities.

2.) Work it out. Certain professionals qualify for a 100 per cent loan waiver through the Federal Perkins Loans Program. Continue Reading…

Millennial Wrap: Budgeting while living abroad

Posted By Financial Independence Hub | May 14, 2016

13234516_10205458294371242_2008560958_o — The Hub’s Millennial blogger teaching ESL in Hong Kong

By Helen Chevreau

Hub Staff

As a millennial living abroad, I am constantly discovering new challenges that I’m supposed to overcome with a smile and a positive attitude. Creating and keeping to a budget while I’m on the other side of the world, it turns out, is one of those challenges.

I suppose this is really a challenge that every recent graduate is facing — whether at home or away. When the learning curve is so steep in every other aspect of life, though, it can often be a bit more difficult to feel financially stable while abroad.

How to budget in expensive Hong Kong

After teaching english at a learning centre for a year, I’ve now begun volunteering for a grade 2 class at an international school here in Hong Kong, where the kids are learning about how to use similes in poetry. As I was sitting in class listening to the children share their similes, I found myself envisioning a poetic simile of my own.

3 ways to pay off High-interest Credit-card Debt

Posted By Financial Independence Hub | May 10, 2016

By Alyssa Furtado, RateHub.ca

Special to the Financial Independence Hub

Credit-card debt can be debilitating.

Because of high interest rates, once you find yourself in the hole, it seems almost impossible to pay down your debt. Not only will this debt put a damper on any future plans of saving for a home or even a vacation, it also negatively impacts your credit score, which will make the idea of owning a home even more difficult to imagine.

If you eventually want to own a home or go on a vacation that doesn’t add to your debt, employ one of the strategies below to start your journey on becoming debt-free.

Consolidate your debt

If you have debt on multiple credit cards, you should consolidate it into one place. You can either consolidate everything onto a balance transfer credit card or apply for a personal loan/line of credit with either the bank or a peer-to-peer lending company, like Grow.

Millennial Blog Wrap: Savings tips & bargains for broke millennials

Posted By Financial Independence Hub | April 30, 2016

Hub Staff

If you’re a millennial who has been having some trouble in the savings department, this new post from Broke Millennial might be worth the read. In it, our heroine talks about a simple way for young people to actively save their money: by putting it into multiple accounts with fun nick-names (although, admittedly, her names are pretty run-of-the-mill).

It’s a fun idea though: it’s simple, people can personalize their account names, and it would be a helpful way for us millennials to visualize exactly what we have stored for each aspect of our lives.

Downsize and travel

A guest post on Making Sense of Cents about downsizing and living a traveling life describes a small family’s life-changing 15-month long travel experience. After they returned to the United States, they decided to take action to make their dream life a reality. It sounds like they’ve still got a lot to do to achieve their dreams, but they’re making passive income by renting out their large bungalow, and are downsizing by selling one item of value per week online. As a seasoned traveller (who is currently living in a space smaller than my parents’ closet at home), I wholeheartedly support this family’s dream of living minimally and experiencing as much of the world as they can. This post reminds us that if you have the desire to change your life and live more frugally, it can be done!

Millennial call to action

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