Women’s Personal Finance Wednesdays – Week 22
1. The Risk of Doing Nothing Smile and Conquer
When Sarah talks about “doing nothing,” she doesn’t mean nothing, nothing. Once you’re looking to start saving your income after paying off debt, it is so important to understand that saving is not the same thing as investing. Like Sarah, I’m a personal finance blogger who actually doesn’t like talking or thinking much about my investment strategy. I do it, and I keep it pretty simple, but I’m not one to dive deep into that area of finances.
I’d rather take a hard look at where my expenses land and making sure I have to right accounts set up (hello high interest savings account and Vanguard investment accounts), but beyond that I’m content to let it ride.
For someone who is new to the investing world and finds it overwhelming, this post does a great job of laying it out in simple terms, and especially focusing on why you need to do it. Compounding is your friend, and you need to get your money working for you instead of leaving it on the sidelines.
2. Why I Needed A Break Up Fund Refine My Money
I wrote a bit about the importance of having at least semi separate finances even in a marriage in the guest post I wrote for Get Rich Slowly, but the need to have fully separate funds is something that’s been a theoretical discussion for me rather than something I’ve actually faced personally (though I’ve experienced it second hand through friends in the past).
What I’ve never considered fully though is the concept of a break up fund separate from an emergency fund. While she hoped to never be in a situation to leave a relationship you expected to last forever, having solid footing financially made an unpleasant situation a little bit easier. Emergency funds are for things like needing to replace your furnace or a temporary job loss; a break up fund is for a complete life change.
She says it so well here: “I realized that my Excel formulas won’t account for some massive life change unless I tell it to.” Even those of us who are well prepared and look closely at our finances on a regular basis may be less prepared for a significant life change than we realize. And it doesn’t even have to be a breakup.
3. DIY Wands Inspired By Harry Potter Minivan Adventures
So, perhaps this isn’t “personal finance” exactly, but it’s definitely frugality which is what makes the financial stuff work for most of us. And if you have a couple chopsticks laying around without matches, this could be a reuse project as well.
While we will likely be holding off on this craft project for a few more years as four year olds are perhaps not the best candidates for running around with pointy sticks, I’ll be keeping this in mind for the future because these are just so awesome. And if my friends and I ever get around to a Harry Potter themed event, then we may end up making these for our adult selves regardless.