Beating Broke

Personal Finance from the Broke Perspective

8 Ways to Save For an Engagement Ring Without Going Broke

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When you’re ready to ask the big question, the thing that can be a little daunting is figuring out how to afford a ring. Living the broke life means you probably don’t want to get a high interest loan, or add more debt to your credit card, so what can you do instead? You can save. If you haven’t started saving yet, now is a good time to start. Because if you want her to say, “I do”, you’ll probably want to put a ring on it.

Set a Budget

Start with a reasonable (for you) budget in mind. If you’re slinging burgers and hustling Uber rides for money, it’s likely that a $10,000 ring isn’t right for you. While old-school experts say you should plan to spend 2-3 months salary on a diamond, new research shows that’s not the case anymore.

The truth is, you decide on a budget that works for you. Pick a number, and plan to stick to it. It can be easy to get carried away later on, but if you know how much you have to spend, it becomes easier to stick with the budget.

Split it Up Over Several Months

If you’re thinking about marriage but not ready to ask just yet, it’s a great time to start setting aside money each month. Once you’ve figured out how much you want to spend on a diamond ring, you can figure out how much you need to have on hand. Let’s say you want to spend $2400, you would need to set aside $200/month to have enough money for it in a year.

Be a Cheap Date

Setting financial goals, means you might need to make some sacrifices. If you aren’t already frugal in some areas of your life, it’s probably time to start so you can get that ring. There are plenty of ways to go out with your loved one without spending a fortune every time. Go out to eat less each month. Rent movies instead of seeing them at the theater. Don’t splurge on expensive trips.

Find Affordable Rings

The truth is you don’t need a ring with a diamond the size of the crown jewels to pop the question. Princess cut engagement rings are one of the most affordable cuts and one jeweler, Diamond Nexus, has several sparkly options for under $1000. If you got frugal enough, you could save for one of these beauties in just a few months.

Automate

It’s hard to spend your money if you can’t see it in your bank account. Automate your saving using the tools your bank offers or even using an app. Forbes mentions in this article that one of the best ways to save money is through automation. Some people even use apps that round up their savings. It’s a great way to set aside your “spare change” from purchases you already make.

Check Your Entertainment Budget

If you’re paying for 7 streaming services plus cable, internet, and 14 other subscription services, maybe it’s time to say goodbye to some of these or try to do more free and outdoor activities. Once you fill your time with sunshine, maybe you can say, “see you later.” Some people save as much as $300/month by cutting subscription services or getting smaller cable and internet packages.

Change Your Insurance Company

Insurance costs a lot of money over time. There is insurance for your home, your car, your health, and even your death. One way to cut costs to save up for that engagement ring is to switch insurance companies. While you may not be able to choose your health insurance, you can save big when you switch your car, home, and life insurance. Some people are overpaying on these important items by thousands of dollars a year.

It’s easy to save up for your engagement when you put your mind to it. The best thing about saving up and paying cash for a diamond ring is the peace of mind you gain by not having to worry about paying for it later. You can get down on that knee and ask for her hand in marriage without the dark cloud of debt. And with these good savings practices put in place, you’ll set the stage for a healthy financial future in your marriage.

5 Ways to Borrow Money Without Hurting Your Long Term Finances

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Not every household has the ability to dip into an emergency savings account when finances are tight. When you need extra cash for some type of emergency, you may have to evaluate your alternatives carefully. Of course, you don’t want to cause your long-term finances any problem when you need to borrow money. When you’re looking for ways to borrow money that won’t hurt you years from now, check out these five tips.

  1. Borrow from a trusted family member

If you have a family member or even a close friend that is in a better financial position than you, it won’t hurt to ask them to borrow some cash when you’re in a bind. Just remember to get everything down on paper to avoid confusion later. Put together a repayment plan that you both agree upon. In most cases, loved ones won’t charge you interest on a personal loan, so you won’t need to worry about it messing with your finances later on.

  1. Borrow from short-term lenders

Short-term lenders are an excellent source for borrowing in a pinch. Consider using same day loans to pay the bills without getting deeper into debt. Most will not check your credit score, and if they do, a bad one won’t necessarily hurt your chances of getting a loan. Only take out the smallest amount you can get by on even if you happen to qualify for more. You don’t want to let repeated loans force you into an unwanted cycle of debt.

  1. Take out an advance from your place of employment

If you have been with your employer for enough time, they may just allow you to take out an advance on your paycheck if you need money fast. If the amount you need is larger than your next paycheck, ask about setting up some type of repayment plan until you can pay off the whole amount. This won’t hurt you in the long run, and your company will likely not charge you any type of interest on your loan.

  1. Look for peer-to-peer lending groups

While this type of option could be a little more difficult to find, there are peer-to-peer lending groups online that allow you to borrow small amounts of money from others who are willing to lend it to you. Check local social media platforms, especially Facebook, to find groups with trusted members that will help you out with smaller loans. Borrowing from a peer-to-peer group today, you won’t mess up your finances in the long run.

  1. Take out a cash advance from your credit card

If you have a credit card, you should be able to take out a small cash advance to get you through your situation. Look for cards with lower APR rates if you go this route. The faster you can pay it back, the better it will be for your bottom line years from now.

For the sake of your finances, it’s crucial only to borrow what you need no matter how you choose to get a loan. Even if you can borrow a larger amount of money from a lender, resist the temptation. This way, you’ll be able to repay the loan quickly without damaging your future financial situation.

Understanding AMC: Practical Solutions To Help You Get Ready for Investing

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If the madness with Gamestop and AMC stocks has you interested in investing your money in the stock market, you’re not alone. But the movement Redditors were able to garner isn’t the status quo for the average investor, so it’s not something you’ll find on a regular basis.

However, just because you missed the AMC movement doesn’t mean you shouldn’t dabble in the stock market. It just means you’ll have to grow your earnings over a more extended period. But before you decide to grow your money by investing, you should first understand what happened with the AMC Entertainment stock.

What Happened With AMC?

A large number of investors bet that the AMC stock would decrease in value, but a group of day traders collaborated to buy large amounts of the stock, which caused the price to increase. If the day traders didn’t sell the stock and bring down the price, the investors who bet the AMC stock price would decrease were going to lose large amounts of money on the deal.

The day traders who shorted their shares, or bet on a decrease, then had to buy their shares back at some point. And because the stock price was high, it forced them to pay a premium on the stock, which was good news for the other investors but bad news for them. Hedge funds lost a lot of money when it happened.

How It Changes Investing

Although large investors frequently manipulate the market in this way, keeping smaller investor gains to a minimum, this move by the day traders may have leveled the playing field to an extent. If everyone can coordinate, choose a target, and manipulate the market, significant leaps in stock values can occur at any time. The impact on the stock market’s future is unknown because these particular moves by this level of investors aren’t a usual occurrence.

For now, since the little guy can make big impacts in the stock market, it might be time to dip your toe in the pool to see what you can do. But before you can invest your money, you have to find the extra cash to grow.

Get Your Finances Ready to Jump In

With the coronavirus still bearing down on the United States and unemployment at all-time highs, finding extra money in your budget to invest in the stock market might seem impossible. And while it’s true that increasing your income at this point might be a challenge, you can at least go through your expenses to see if you can reduce or eliminate some of them to free up cash.

If you hold credit card debt, that’s the perfect place to start cutting, and you can do so by using debt consolidation. The right financial agency can look at your eligible debt and roll those balances into a single loan with one monthly payment. Having only one bill instead of many for your debts can give you the flexibility to use the extra money for investing.

Take Out A Loan

The stock market is constantly changing. One minute a stock is worth pennies and the next its value increases exponentially. If there’s an investment you can’t afford to pass up on, you could use bad credit loans to get started. These are short-term loans for borrowers with poor credit histories. You can receive a deposit of up to $2,000 to invest in stocks. Just ensure that you borrow responsibly and repay the loan in a timely fashion to avoid financial consequences down the road.

Beware of the Risks

Once you decide to invest in stocks, keep in mind that doing so doesn’t come without risk. It’s essential to do your research before jumping into a stock, and if you don’t know what you’re doing, you should seek out a professional. The last thing you want to do is lose the money you invest, so a financial advisor can help you diversify your portfolio and tailor your choices to your goals.

Grow Your Holdings

Taking the free cash in your budget and putting it to work in the stock market is exciting, but don’t get caught up in the AMC hype because that’s not always going to happen. Instead, invest in companies you believe in, take advice from the pros, and minimize your risk as much as possible when you are starting out. That way, you can have fun and grow without adding unnecessary risk to your bottom line.