To budget in an expensive city, accept that rent may take a bigger share of your pay than the usual rules suggest, then make up for it on transport, food and fixed costs. In a worked example, rent of 1,500 on take-home of 3,200 still leaves room to save 250.
· 3 min read
Personal cash flow is the money that comes in each month minus the money that goes out. If it's positive, you're building savings, and if it's negative, you're drawing on savings or borrowing to cover the gap.
· 3 min read
A recession-proof budget is one that could survive a drop in income: a larger emergency fund, lower fixed costs, less high-interest debt and a known bare minimum. The best time to build it is while things are still steady.
· 3 min read
Should you pay off your mortgage early? It saves interest and gets you debt-free sooner: On a 200,000 mortgage at four percent over 25 years, an extra 200 a month saves about 31,000 in interest and six years, in a worked example.
· 3 min read
Here's how to save money on flights: be flexible on dates and airports, compare the total price including bags and seats, and book when fares are reasonable instead of waiting for a perfect deal. Fees can turn a cheap fare into an expensive one.
· 3 min read
A debt consolidation loan is worth it when its total cost, fees included, is lower than paying your cards down at the same monthly amount. At the Fed's latest average rates, 6,000 costs about 1,072 on a two-year loan with a 300 fee, against about 1,577 on cards.
· 3 min read
Lifestyle creep is when your spending rises to match your income, so a pay rise leaves you no better off. In a worked example, a 400 raise disappears into rent, a car payment and takeaways within a few months.
· 3 min read
Whether to lease or buy a car comes down to how long you'll keep it. In a worked example, leasing costs 14,600 over three years against 13,500 for buying, and over six years buying wins by 7,200.
· 3 min read
Whether to rent or buy a house depends on comparing rent with the costs of owning that you never get back: interest, taxes, maintenance, insurance and what your deposit could have earned. In a worked example, those come to about 1,783 a month against rent of 1,500.
· 3 min read
Here's how to negotiate bills: get a competing quote, call before the contract ends and ask for the best price for an existing customer. In a worked example, that saves 35 a month across phone, internet and insurance.
· 3 min read
Here's how to negotiate a pay rise: gather evidence of what you've delivered and what the role pays elsewhere, ask for a specific number at the right time, and decide in advance where the extra money will go.
· 3 min read
Converting a freelance rate to salary terms means adding what an employer pays for besides wages, then dividing by the hours you can bill. A 45,000 salary works out at about 23 an hour, but matching it as a freelancer takes about 50.
· 3 min read
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