This Week In Your Wallet: Do This Today For $1,095 Next May
What’s the first item on this week’s menu of headlines? First up, we have Sarah Newcomb, behavioral economist at Morningstar (and HerMoney favorite) serving us some serious self-reflection. Her latest research shows that two simple mental factors can significantly affect people’s financial behavior and emotional well-being.
Newcomb found that the clearer someone’s picture of the future, and the further ahead they think in time, the better they manage their finances — no matter what income, age, education or gender. That goes for managing cash, credit and savings. Your friend who makes those vision boards might be onto something. And those inspirational messages in your yoga class about power coming from within might come in handy here, too. Newcomb’s research shows people who believe they create their own financial destinies have more positive feelings associated with money than those who don’t believe it. Note that this was true across all income levels, even when controlling for income, age, education and gender.
Take control of your financial future by dedicating time each week to doing the above. Imagine yourself five years from now — what you’ll be doing, where you’ll be living and what your goals will be. Maybe even make a five- and ten-year plan and make it as specific as possible. For example, instead of just aiming for “retirement,” think about the specific trips you’d like to go on, or the house you’d like to live in. And if you’re feeling financially powerless, remember you are the one in control of your money — tell yourself that every morning in the mirror if you need to (Stuart Smalley style).
No Rest For The Worriers
Not getting enough shuteye lately? You’re not alone — especially if it’s because of money worries. Right now 65 percent of Americans have the same problem, according to CreditCards.com. In fact, the percentage hasn’t been this high since the height of the recession in 2009. Today, people are tossing and turning over health care costs and insurance bills.
If that’s you, start by pursuing a method of relaxation (meditation, deep breathing, etc.) that works for you. (Remember, if you try to tackle the problem while in a state of stress, it might do more harm than good.) After you’ve taken a step back, sit down and get your stressors down on paper. For low or no cost, the nonprofit member agencies that belong to the National Foundation for Credit Counseling (NFCC) offer help with credit card debt, foreclosures, reverse mortgages, bankruptcies, budgets and student loans. Tips for saving more cash (like CNN Money’s 20 tips for saving $1,000 or more a year) can’t hurt here, either. Set a goal — or even better, an automatic transfer — to save $3 a day, every day. In a year, you’ll have $1,095 in the bank, which is a great start or boost for your emergency fund.
Babysitters Make Bank
School’s almost out for the summer, and if you or your kids have time off, babysitting is a profitable side gig to consider. Over the past six years, babysitters’ wages have increased “nearly twice as fast as the pay of the average American,” reports Money Talks News. That’s right — 2010 saw a national average babysitting rate of $11.11, which rose 26 percent to an average of $13.97 in 2016, according to an annual survey by Care.com. Americans’ average hourly wages, on the other hand, have risen by just 14 percent in the same timeframe, according to an analysis of data from the U.S. Census Bureau by the Federal Reserve Bank of St. Louis.
If you or your kid is hoping to get into the business, start by spreading the word with your friends or community members. If word of mouth isn’t cutting it, consider setting up a profile on SitterCity (free for sitters to join, and between $15 to $60 for the level of background check you choose, according to a representative) or Care.com (also free for sitters to join, and $59 for a criminal records check and $20 for a motor vehicle record check, according to a representative). You can pay extra for perks like new job alerts, higher placement in search results and the ability to message families directly. A professional-looking profile photo and proper spelling and grammar are good for demonstrating consideration and trustworthiness, too.
Have a great week,
Jean
