Budget Blog

Before we dive in, it’s important to note that these debt payoff methods only work if you have extra money each month to pay towards debt. It also only works if you have more than one type of debt to pay off. If you have only one type of debt, your extra monthly payment would go to your one account. And if you don’t have money left over each month, you would just pay your monthly minimums.

Why pay extra towards debt each month? It’s simple – you pay less in interest and get out of debt faster.

Below we will compare the debt avalanche vs debt snowball method and give you ideas to help you decide which one is best for you.

[Read more…] about Debt Snowball vs Debt Avalanche: Which Should You Choose?

Defining the difference between needs vs. wants is an essential step when you are building a budget. And while this is usually a straightforward determination, there can be nuance between the two depending on your situation.

On top of that, wants and needs together make up the total costs within your budget, and are where you need to focus if you are looking to save more money.

Below we’ll dive into the difference between needs and wants, how they fit into your budget, and how to save money in both areas.

[Read more…] about Needs vs Wants: Building a Budget for Both

Buy now pay later apps like Klarna, Afterpay, and Affirm might seem like great products for consumers and businesses alike, but they come with a catch.

For consumers, these apps can help you pay for big-ticket items like a new mattress or television by breaking down the purchase into smaller, more manageable payments. However, these apps also come with potential late fees, high-interest rates, and subtle nudges to make you spend more than you can afford.

For merchants, these apps can increase customer conversion and bring you new business. Though they also come with fees that, on average, can be higher than typical credit card processing fees.

Below we’ll walk through in more detail how these buy now pay later apps work, as well as the full list of pros and cons.

[Read more…] about Buy Now Pay Later Apps: What’s the Catch?

One of the best ways to improve your personal finances is to increase your income. Today we’ll be reviewing the three types of income, including examples of what they are and their pros and cons:

1. Earned Income
2. Capital Gains Income
3. Passive Income

Your income can be diversified, just like an investment portfolio.

The more income sources you have, the less impacted you will be if one of those income streams dries up. Similar to how when one part of your investment portfolio is struggling, other assets can pick up the slack.

Increasing your income is also a great way to improve your budget. Unlike cutting expenses, increasing your income has no limit. In theory, you can keep growing it and growing it with no end.

With that, let’s dive further into the three main types of income, starting with the most popular type of income – earned income.

[Read more…] about What Are The Three Types of Income?