Sugary, caffeinated, carbonated beverages go by many names. What you call it depends on where you live. I grew up using the word “soda” but I have friends that say “pop” and know of others who just refer to everything as “Coke”. Regardless, you know what I’m talking about. Having one by any name once in a while will probably not do much damage. But one can a day for a year will pack on an extra 15 pounds. You can see that just a little bit at a time can add up to a lot, and not in a good way, because most of us want to lose weight, not gain it. But, we’d all like to have a little extra MONEY. This is a key ingredient to reaching financial fitness. Last week we talked about an emergency fund and how critical it is to get there quickly. There are things you can do to reach that goal in a flash, and you should, but once those things are done, they are not always easily duplicated. There are little ways to decrease your spending that can really add up. Here are some questions for yo...

When my kids were young, The Lion King was big in theaters. When it was released on VHS (dating myself again), they watched it quite often. Okay, I did too; it’s my favorite Disney movie. Well, there is a song in there that is sung by the villain of the story, Scar. It’s called “Be Prepared,” and it is a warning of what will surely be scary things to come. Scar was right–disaster was just around the corner. And many of the lion pride did not see it coming. We, too, have unforeseen trials in our lives that might be lurking just ahead. While they might vary in size and type, one thing is for sure; most catastrophes affect our finances in one way or another. And while we might not know when one will hit us, it is wise to be financially prepared with an emergency fund. While it is best to have an emergency fund that will cover your living expenses for six months.   I found that starting with $1,000 is a good number, and everybody needs to start somewhere. But it is critical to lin...

I will admit, there are times when a credit card does offer some benefits (if you do not remember or understand the difference between a credit card and a debit card, revisit last week’s post).  Here is the disclaimer: credit cards are not for everybody. REMEMBER: Having a credit card for “emergencies” is a HORRIBLE idea. You don’t need your emergency to cost four times what it should have (again, check last week’s post). You need an emergency fund for emergencies. ASIDE: Anybody like to guess the subject of next week’s post? FACT: When using a debit card at a hotel, they will often freeze the cost of up to three nights charges and won’t release that money for several days, EVEN IF someone else (like your work) is paying the bill. If you live paycheck to paycheck, this might be a problem. If you carry a large balance in your checking account, this is not a big deal. FACT: Many credit card companies offer rewards. As far as I am concerned, this is the ONLY benefit to using a...

While debit cards and credit cards look almost identical, the way they work is totally different. When a debit card is used, the amount you spend comes directly out of your checking account.   A debit card works more like cash in the sense that you can only spend what you have in the account. Debit cards have a PIN, but most places CAN run it like a credit card and get your signature instead–you just have to ask. When a purchase is made with a credit card, you are borrowing the money from your bank and will have to pay a high amount of interest on that money if the money is not repaid within a certain time. A credit card also allows you to spend more than you have available, thus automatically creating a loan to your bank. These loans carry a high interest–it can cost you A LOT to borrow that money. Credit cards do not have PINs. Let’s say you use a regular credit card to  buy a new TV for $1000 . Your payment will be about $20 a month, but the INTEREST on that will ...