Saving Archives — Beating Broke

The 15 Most Polarizing Financial Trends of the Decade

February 27, 2024 By Catherine Reed Leave a Comment

In a world where financial landscapes are ever-evolving, the last decade has seen a myriad of trends that have divided experts and the public alike. From the meteoric rise of cryptocurrencies to the resurgence of gold as a safe haven, these trends have not only shaped investment portfolios but also sparked intense debates among financial aficionados. Below, we delve into the 15 most polarizing financial trends that have defined the decade, offering insights into their origins, impacts, and the controversies they’ve stirred.

1. The Cryptocurrency Craze

Cryptocurrencies, led by Bitcoin, have arguably been the most divisive financial trend. Proponents laud their potential to democratize finance, offering a decentralized alternative to traditional banking systems. Critics, however, warn of their volatility, regulatory uncertainties, and potential for misuse. The debate reached a fever pitch when Bitcoin’s value skyrocketed, making millionaires overnight and leaving skeptics questioning the sustainability of such digital assets.

2. The Rise of Neobanks

Digital-only banks, or neobanks, have disrupted traditional banking by offering user-friendly, technology-driven services. While many appreciate the convenience and innovation they bring, others question their security and long-term viability. The lack of physical branches and the reliance on digital interfaces have not sat well with everyone, leading to a polarized reception among consumers.

3. Sustainable Investing

Sustainable, responsible, and impact investing (SRI) has gained traction, driven by a growing awareness of environmental, social, and governance (ESG) issues. While many investors are eager to align their portfolios with their values, critics argue that the focus on ESG criteria may compromise returns, sparking a debate on the balance between ethics and profitability in investment strategies.

4. The Return of Gold

In times of uncertainty, investors traditionally turn to gold, and the last decade was no exception. The resurgence of gold as a safe haven asset has been met with mixed reactions. Some view it as a wise defensive move, while others see it as an outdated investment, especially in the digital age.

5. Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms have revolutionized the way individuals borrow and lend money, bypassing traditional financial institutions. Advocates praise the accessibility and competitive rates it offers, but the lack of regulation and higher risk of default have raised significant concerns.

6. The Gig Economy and Financial Security

The rise of the gig economy has transformed traditional employment models, offering flexibility and autonomy. However, this trend has sparked a debate about financial security and the lack of benefits such as pensions, health insurance, and stable income, highlighting a divide in the workforce’s perception of financial stability.

7. The Explosion of ETFs

Exchange-traded funds (ETFs) have become increasingly popular for their low costs and simplicity. While they are hailed for making investment more accessible, there is a growing concern about market volatility and the “dumbing down” of investment strategies, with some experts warning of potential bubbles.

8. Tech Giants’ Financial Ventures

Tech companies venturing into financial services have drawn both excitement and skepticism. The prospect of innovation and enhanced consumer experiences contrasts sharply with fears over privacy, data security, and the concentration of power among a few tech behemoths.

9. The Student Loan Crisis

The burgeoning student loan debt has become a hot-button issue, with calls for reform clashing with debates over personal responsibility and the value of higher education. The financial strain on millions of Americans has led to polarized views on the role of education in society and its financial implications.

10. Negative Interest Rates

The phenomenon of negative interest rates in some economies has upended traditional financial wisdom, leading to a split in opinion. Some see it as a necessary tool to stimulate economic growth, while others view it as a dangerous experiment with potentially dire consequences.

11. The FIRE Movement

The Financial Independence, Retire Early (FIRE) movement advocates for extreme savings and investment to achieve early retirement. While it has a dedicated following, critics argue that it is unrealistic for most people and overlooks the value of career fulfillment.

12. Real Estate Crowdfunding

Crowdfunding has made real estate investment more accessible, but opinions vary widely. Enthusiasts appreciate the democratization of property investment, while detractors highlight the risks associated with a lack of liquidity and the potential for market saturation.

13. The Revival of Value Investing

In a decade dominated by high-flying tech stocks, the return to value investing has been contentious. Some investors see it as a timeless strategy for long-term success, while others argue that the digital age requires new approaches to stock valuation.

14. Big Data in Finance

The use of big data and AI in finance has been both celebrated for its potential to enhance decision-making and criticized for privacy concerns and the potential for algorithmic biases. The debate centers around the balance between technological advancement and ethical considerations.

15. The Shift Toward Cashless Societies

The move towards cashless transactions has been accelerated by technological advancements and the pandemic. While many herald this as a step towards greater efficiency and security, others worry about privacy, cybersecurity, and the exclusion of those without digital access.

Financial Trends Showcase the Complexities of Modern Finance

These polarizing financial trends highlight the dynamic nature of the financial landscape and the varying perspectives individuals hold. As we navigate through these trends, the debates they spark are a testament to the complexities of modern finance and the diverse values and priorities of those it serves.

Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

11 Painless Ways to Build a $1K Emergency Fund

January 30, 2024 By Catherine Reed Leave a Comment

In an era marked by economic fluctuations and unforeseen expenses, having an emergency fund is more crucial than ever. A $1K emergency fund can serve as a financial buffer, offering peace of mind and security in challenging times. If you want to make the process of saving as simple as possible, here are 11 painless strategies to build this essential financial cushion without drastically altering your lifestyle.

1. Automate Your Savings

One of the simplest ways to build your emergency fund is by automating your savings. Set up a direct transfer from your checking account to a savings account each payday. Even a small amount, such as $20 to $50 from every paycheck, accumulates over time. Automation makes saving effortless and ensures consistency, gradually building your fund without requiring active management.

2. Trim Non-Essential Expenses

Take a closer look at your monthly expenditures and identify non-essential items you can live without. This might include subscription services, dining out, or luxury coffee. Redirecting even a fraction of these expenses toward your emergency fund can significantly accelerate your savings without impacting your quality of life.

3. Use Cashback and Rewards

Leverage cashback apps and credit card rewards for everyday purchases. These rewards can be set aside directly into your emergency fund. It’s a way to earn money on transactions you’re already making, from groceries to gas, contributing to your fund without extra effort. Just make sure that, if you’re using a cashback credit card, that you pay off the balance monthly. Otherwise, the interest you owe can functionally erase what you get back.

4. Round-Up Savings Apps

Utilize round-up savings apps that round up your purchases to the nearest dollar automatically and stash the difference in a savings account (preferably a high-yield account). Then, if you spend $3.50 on a coffee, the app rounds it to $4, and the $0.50 difference goes into savings. It’s a painless and nearly unnoticeable way to save as you spend, and it adds up surprisingly fast.

5. Sell Unwanted Items

Most households have items that are no longer used or needed. Selling these items online or through garage sales can provide a quick cash influx to boost your emergency fund. From old electronics to clothes, converting clutter into cash is both financially and spatially liberating.

6. Take Advantage of Windfalls

Any unexpected income – such as tax refunds, bonuses, or gifts – should be considered a windfall that can bolster your emergency fund. Resist the temptation to spend this “extra” money and allocate at least a portion of it to your savings. This strategy can significantly expedite the growth of your fund without affecting your regular budget.

7. Optimize Your Grocery Shopping

Strategic grocery shopping can lead to significant savings. Use coupons, shop for sales, and buy in bulk for items you regularly use. Planning meals around what’s on sale and what you already have can reduce your grocery bill and allow you to allocate more money to your emergency fund.

8. Reduce Utility Bills

Implement energy-saving measures at home to lower your utility bills. Simple actions like turning off lights when not in use, using energy-efficient appliances, and fixing leaks can reduce monthly expenses. Redirect the savings into your emergency fund for a painless boost.

9. Eat in More Often

Cooking at home more frequently instead of dining out or ordering takeout can lead to substantial savings. Allocating the difference to your $1k emergency fund not only builds your savings. Plus, making your own meals can also lead to healthier eating habits, which is a nice bonus.

10. Reassess Your Subscriptions

Many people pay for multiple subscription services that they rarely use. By canceling or downgrading these subscriptions, you can free up a significant amount of money each month. Redirect these funds to your emergency savings to see a noticeable impact over time, and make allow you to build a $1K emergency fund without feeling the pinch.

11. Participate in Paid Surveys and Studies

Engaging in paid surveys and research studies online can be an easy way to earn extra cash in your spare time for your $1k emergency fund. While each survey may offer a modest payout, the earnings build up a little every time you take part. That gives you a way to boost your emergency fund without requiring a significant energy investment.

Start Your Emergency Fund Today!

Ultimately, building a $1K emergency fund doesn’t have to be a daunting task. While every savings effort does require some dedication, the 11 painless strategies above let you create a financial safety net that provides security and peace of mind. Start small, remain consistent, and watch your emergency fund grow, preparing you for whatever life throws your way.

Catherine Reed

How to Combat Frugal Fatigue when Being Gazelle Intense

October 26, 2020 By MelissaB 11 Comments

My husband and I recently added up our student loan and credit card debt. Imagine our shock when we discovered we have $58,000 in debt! What was this debt comprised of? It is made up of nearly $38,000 in student loans, $6,500 on a business credit card for a business that failed and $13,500 of personal credit card debt spread over two cards (the smallest balance at $1,000). The latter debt is largely due to our current low income and some not so wise purchases. We’ve recently become gazelle intense. However, we’re being careful to combat frugal fatigue since we know we’ll need to live this lifestyle for quite some time.

What a Gazelle Intense Day Looks Like for Us

At the urging of everyone around us, we began to follow Dave Ramsey. Because we do not yet own a house but would like to in the next three to five years, we decided to become gazelle intense, as Dave Ramsey says.

What does gazelle intense look like for us? My husband works away from the house for 10 hours a day. After spending an hour with the kids when he comes home, he works on his dissertation and articles for publication for a few hours a night.

I stay home with the kids all day and blog, do virtual assistant work and freelance writing when the kids are napping and after they go to bed. On the weekend, I typically leave the house for about four hours on both Saturday and Sunday to get more freelance work done. I estimate that I am working 25 hours a week from home. My husband is putting in another 20 hours a week at home doing work that will further his career and hopefully lead to a high paying, tenure track job in a few years.

Being Gazelle Intense Works!

Our hard work is paying off. In just two weeks, we “found” an additional $701 to apply to our debt beyond our regular debt repayment schedule. We found this money several ways. First, we returned a few items we bought but hadn’t used before becoming gazelle intense. Then, we also got an unexpected check that we put toward the debt. We just paid off our first credit card with the lowest balance. Next on our plan is to pay off the credit card with $6,500 within the next four weeks.

Getting Used to a New Lifestyle Takes Time

As anyone who has become gazelle intense knows, there is a period of adjustment when you have to get used to the austere lifestyle that is required. Let’s be honest—most people who have credit card debt have at least some of it because of a lack of impulse control and planning.

Was all of our credit card debt due to that? No, we had a very low income for awhile when my husband’s graduate student teaching stipend was our only income, and we relied on credit to make ends meet. However, we also ate out more than we needed to. (Do you ever need to eat out?) Our debt likely would be lower if we practiced more self-control with ourselves and our finances. Since we weren’t stringent with ourselves then, we’re having to be now.

How to Maintain Gazelle Intensity for Months (and Years)

Gazelle intensity works with no break if you have a relatively short amount of time you must be laser focused. If you can get your debt paid off in 12 to 18 months, you shouldn’t need a break. However, if you’re looking at several years to pay down your debt, you will likely need to give yourself an occassional break to avoid frugal fatigue.

Take a Break After Each Debt

Because there is such an adjustment, to maintain your gazelle intensity and avoid frugal fatigue, consider rewarding yourself for each debt that you pay off or at a milestone you set. If you have one large debt to pay off, maybe you will reward yourself for every $5,000 you pay off.

For us, since we love to eat out and now no longer eat out at all, we have decided that we will have one meal out every time we pay off a debt. To maintain your drive, pick one thing you used to enjoy spending money on in your old, less frugal lifestyle, and commit to enjoying that activity once when you achieve your assigned goal in your debt snowball. Keep it reasonable, less than $50, so you don’t derail your snowball, but give yourself that leeway to maintain your intensity.

Gazelle Intensity Interval Training

Another option is to do gazelle intensity interval training. If you have a lot to pay off like we do, you may need a different strategy to keep up your motivation. For instance, maybe you can commit to three months of intensely working and paying down your debt. Then, you will take a break for one month. Or, maybe you decide on an amount that you’ll pay down, and then you’ll take a break. Maybe you decide to pay down $15,000 and then slow down in intensity for a bit. As you become invigorated again, set another goal that you’ll pay down before you rest.

Final Thoughts

Being gazelle intense definitely has rewards. You put yourself in a painful place for an intense while until the debt is paid off. Then, you begin to reap the rewards of all your hard work. You can live like no one else, as Dave Ramsey says.

Yet, be careful not to become so strict with yourself that you give in to frugal fatigue and derail your debt snowball. A small, planned out treat is often all it takes to keep you motivated and ultimately debt free. If you’re confronting a large amount of debt, consider instead to be gazelle intense for a few months and then take a break.

A Review of Dave Ramsey’s Revised Financial Peace University & New Speakers

How to Save More Money Every Month

How to Get Out and Stay Out of Debt

MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.