Category Archives: savingsarticles

Everyone been there and a lot of us are actually stile there -in Debt- the hardest part is not paying off the debt but to stay out of debt, but today we will be focused on how to be debt free in the shortest amount of time no matter how ugly your situation is. But let’s just agree on something, if you pull it together and follow the following steps consistently you will get out of debt that I can promise you.

For this example, we’ll look into our good friend Tony who works as whatever, and that whatever job pay him $3000/month after taxes, his monthly expenses are worth $2500 and big Tony is carrying a $10,000 credit card debt.

Let’s see if we can help Tony be debt naked (free) in 10-12 months’ period.

  1. Income VS expenses VS Debt

    write down your take home income, fixed expenses (rent, car, student loan, groceries, bills) and then subtract those 2 numbers. If you take Tony’s example you should do ($3000 – $2500 = $500) so after paying all his expenses, Tony would be left with $500 extra. Now write down your total credit card debt ($10,000 for Tony).

    The extra $500 wouldn’t be going all towards the credit card, you can’t pay all the extra money to the credit card and be left with nothing, if you needed something we don’t want you to use the credit card, so let’s say $200 to keep for yourself and $300 goes to pay the credit card.

  2. Get the free cash

    Cash back credit cards offers you 1%-6% cash back on your day to day expenses, gas, groceries, bills, etc. we are not going to go deep into the credit card details but let’s say Tony will be getting an average of 2% cash back on what you spend, so how much cash back would he get on his $2500 monthly expenses on an average of 2% cash back return. ($2500 * 2% = $50). So Tony will be getting an extra $50 (on average) every month that would go towards paying the credit card balance.

  3. Make extra income

    We all have that extra 2-3 hours a day that we watch the same commercials in, so why not divorce the commercials and start earning extra cash and secure at least $500 every month extra. got a car, why not drive with Uber or Lyft. Got extra room, why not rent on Airbnb or homeaway. You can do anything? and I am literally saying anything why not sell it on Fiverr ( I paid someone $5 on Fiverr before to write my wife’s name with seashells on the sand ,send me a picture and that was a birthday gift) what I am saying is there is people out there that want your whatever service, so offer it. Want something a little professional, freelance with Upwork. The beauty of it is that you can secure 2nd, 3rd, 4th income for a little bit of extra work. Let’s say Tony will Drive with Uber and sell whatever on Fiverr and pull an extra $500 a month (when you can pull a lot more than that)
    Those $500 will be going towards the credit card debt.

  4. Stop paying interest

    If you have been carrying balance on your credit card(s) you are definitely paying interest and a hack of interest to be precise, an average of 15-23% goes to the bank as of free money. Now that is a lot of money my friend and it would be a lot better for you if you can send that money towards paying off the actual debt not the interest. Now that’s when Balance transfer credit cards comes in handy, find yourself a card that offers no APR for a period of time that is enough for you to pay the balance while paying no interest. On a $10k debt you are paying an average of $150 every month on interest. By transferring the balance to a 0% APR credit card this $150 would be going toward the actual principle.

  5. Pull it together and Do it.

    “if you have $10k in credit card debt, APR 21%, pay $275/month. It will take you 59 months to pay that debt and it would cost more than $6k in interest only. Follow the 4 steps above and you will find that you will be paying an average of $1000/month towards your principle with $0 in interest and you will give that $10,000 debt a kiss goodbye in 10 months’ period.

So you:

-Have a steady income but you’re greedy and want more income

-Retired but not really living the dream
-Retired but have extra time and would like to make extra cash
-Have a Boss that is a douche and you want to take a break and do your own thing
-Got laid “off” and you need to pay your bills soon.
-Swimming in debt and you want to get out of debt yesterday.

Maybe you have a sweet full time job but you are smart enough to know nothing lasts forever and you want to secure one or two more sources of income to be prepared for bad times. Maybe you retired but realized that Social Security Benefits are a joke and you need a source of income but don’t want to work for someone or you’re retired and just tired of fishing all day and want to do something else with your free time. The more likely scenario is that your boss is a booty hole and you simply want a few months away from everything until you start looking for something better. You might be a new subscriber to FinanceRite and you are still swimming in debt and want to pay those blood sucking creditors. Or maybe you just got fired and need quick money to pay your monthly expenses.
Whatever the reason may be or situation you are in, the importance of extra income is a no brainer. Here are three different ways to generate extra money. You can pick one or if you have the time, do all three of them.


If you have a car then you can probably be a driver with Uber/Lyft. What I love about Uber/Lyft is that you pick your own work hours. You can take advantage of the high demand on the weekend and work 3-5 hours a day on those days. Or maybe you have a 9-5 job but your husband/wife won’t miss you much if you drive with Uber for couple hours after work and make it home right at bed time (we don’t judge lol). We all have those 2-4 hours a day that we spend watching commercials on TV, so why not make extra cash instead.


If you have an extra space at home but you don’t want the drama of a roommate or maybe you want to rent it so when your in-laws are in town you can be like “sorry guys the guest room is rented” then listing this space on both Airbnb and Homeaway is the way to go. Airbnb and Homeaway are both great services for people who want to take advantage of the extra space in their home or apartment without the risk of renting it to creeps who like to take your underwear as a souvenir when you are out of the house. You can see reviews about the renters before accepting them. All you need to do is set up an account; take a couple of pictures of the room, not of yourself! (I’ve seen that before). You also need to take a few minutes to write the description of the amenities and rules of the space and boom you are done and officially a landlord.


If you can do anything, you can probably make money out of it on Fiverr. No joke I have seen some weird services being offered and the good news is that they sell really well because they are usually listed for $5. Maybe you are good at writing, drawing, marketing, technology or fitness. Whatever you are good at you can sell it for $5 and up. For example, you are good at marketing so you came up with steps for new small business owners to follow to market their business. This could be a document you set up once and simply email it every time someone orders.

Another service that is geared more towards freelancing is Upwork. Trust me, many people want your service and are willing to pay for a couple hours of your help in your area of expertise. You simply create a profile, a description of what you can offer and your hourly rate, and boom suck-a-laca you can now work as a freelancer.

Bottom line
The bottom line is that another source of income is important for many reasons. Secure a second, third or fourth source of income to simply earn extra cash, or just be ready for when things at your job go south.

Poor, Rich and Wealthy are three common words that even your 5 years old knows the definition to. A child could probably tell you those words mean someone with less to no money vs someone with a lot of money vs someone who got Sh*t load of money like Walter White in Breaking bad. But when I think of those words I usually define them in a different way. I think of them in a way that helps me be financially healthy and of course try to make me more money. Let’s dive into the definitions of each word.


Poor is when you reach out in your pocket to pay someone else especially for something that you don’t need.


Rich is when you decide not to spend the money on something you don’t need.


Wealthy is when your money is working for you. Simply put your money is out there to make you more money.


Our boy Joe is about to pull the trigger on that new TV, cable, internet, wireless, phone and security bundle because the sales person talked him into it and convinced him that it’s an investment, savings, etc..

Our boy Joe actually doesn’t need any of that because he only uses his wireless and internet services and it cost him $100/month. The new bundle will cost around $250/month, so there goes $150/month that Joe needs to decide whether he should commit to or not.

Let’s see Joe’s options

Joe would make himself $150 poorer each month if he decided to get the extra services that he really doesn’t need.

Joe would make himself richer by not giving that extra money to his service provider because he will be putting an extra $150 in his pocket every month instead of spending it on things he doesn’t need.

Joe would be a wealthy man if he takes the $150 that he was going to spend on something he doesn’t need and make that money work for him and earn him extra cash by simply investing an extra $150 every month.

You can’t expect for your financial life to keep going straight up all the time. What I mean is that there will come a time when it will go south. It’s not a question of whether or not it will happen, it’s a question of when. The real question is how bad will it affect your financial health and how prepared are you going to be? That’s when emergency funds come to the rescue. Most people know how important an emergency fund is but sadly those same people don’t have it or if they do have some money but aside, it’s usually not a true emergency fund.

What is an Emergency fund?

It’s a separate cash account that will help with your monthly fixed expenses for 6 months in case things at your job go downhill. In other words, when someone from HR comes out of nowhere in the morning and hands you a box to pack your things…you know the rest.

Why have Emergency funds?

– Help you keep up with your monthly expenses
– Keep you from using credit cards to avoid being in debt while unemployed
– Gives you peace of mind that no matter what happens tomorrow you and your loved ones will be in good shape

When to use and NOT use the Emergency funds?

You can access the Emergency funds only and only in case you get fired.

You can NOT use the Emergency Funds for car maintenance, medical bills, etc. you should have separate accounts for those types of things.

How much to keep in the emergency fund?

As we said before this fund is for the fixed monthly expenses such as rent, car payments, electricity, groceries, student loans, etc… It’s not for cable subscription, dinning out, condoms or other fun things.

So sit down with a pen and paper and write down your monthly expenses that are very important to you and then make sure to fund your account with 6 to 9 months’ worth of the amount you came up with. For example if your fixed monthly expenses are $2000 then your emergency fund should have an average of $12K-$18K

Where to keep the cash?

I really don’t care where you keep the cash as long as it’s in a separate account from your regular savings and checking account. It could be in a separate bank account, stuff it in you pillow, in the pantry, it doesn’t really matter as long as it’s far away from you but close enough that you can still easily get your hands on it when you need it.

A hidden spot where I keep my emergency fund is in “Money Market Funds”. It’s a very low risk investment product that gives an annual 1-2% return just to keep up with inflation but yet I can access the cash at any time.

If you are reading this article you probably have at least one car and you know that there is no way to avoid getting gas unless you have an electric car. Gas for car owners is a major part of their monthly expenses just like groceries and rent, so why not save as much as you can on every single gallon of gas for as long as you can.

Ok let’s break it down.

Cash Back rewards from Bank of America

The best Cash back Credit Card that offers you 3% back on gas with no annual fees is without question the Cash Back rewards card from Bank of America

So let’s see how much can you save with this bad boy.

Let’s compare two common examples: Our buddy Joe when he was single with one car and then after he got married to Melissa who has her own car.

For the sake of this experiment we will assume that Single Joe spends $100/month ($1200/year) on gas while Joe and Melissa together spend $175/month )$2100/Year on gas).

Let’s see how much you they can save every year using the Bank of America credit card with 3% cash back.

Single Joe Joe & Melissa
3% of $1200 = $36/ Year 3% of $2100 = $63/ Year
Plenti rewards Card

Plenti is a free to use rewards card that offers points on every dollar you spend with their partners and those points transfer into $$ later on. For every 100 points you get a dollar. So how would this help us save even more dollars on gas? Plenti has partnered with Exxon Mobil so technically for every gallon you get at Exxon, you get a point into your Plenti account and every 100 points is worth 1 dollar.

Let’s break it down and see how much Single and Married Joe would save every year.

Single Joe spends an average of $1200 every year on gas. If we assume the Price/Gallon is $1.71 (average price right now) then Joe gets an average of 700 Gallons per year from Exxon Mobil, which would earn him 700 points, which translate into $7/ year in savings.

Married Joe (Joe & Melissa) spend an average of $2100 every year on gas. Assuming the Price/Gallon is $1.71 then Joe & Melissa would get an average of 1235 gallons/Year from Exxon Mobil, which would earn them 1235 points which would translate to an average of $12/year in savings.

Using Bank of America & Plenti together

If you like free money, you would definitely want to use Bank of America and Plenti together every time you get gas.

Let’s see how much extra savings single Joe would get every year from simply using both cards.

Also let’s put it side by side with what Joe and Melissa would get every year.

Single Joe Joe & Melissa

Bank of America — 3% of $1200 = $36/ Year

Plenti — 700 points = $7

Total Savings/Year ===== $43/Year

Bank of America — 3% of $2100 = $63/ Year

Plenti — 1235 points = $12

Total Savings/Year ===== $75

If you do the math which we will not worry about here, you will find out that using those two cards will help you simply save an average of 3.5% on every single Gallon of gas you ever get.