Paige Power

  Did you know that most Americans have zero dollars set aside for an emergency? By "most," I mean 53%. Of households with incomes below $50,000.00 annually, only 26% have any emergency savings accounts. Emergency savings are a complicated matter. Here’s why-setting aside money in a traditional savings account will earn about 1% more or less in interest. That is not enough to offset the high cost of interest on any loan. Whether it’s a car loan, a student loan, or a credit card loan, I can see no value in setting aside money when it can be used to pay off loans. But this is dangerous. We can all understand that if we have an emergency and no money, we are in trouble. We’ll have to figure out how to pay whatever amount we need and most people will simply use a credit card. The fact is that it is very unlikely that you will find any investment account that will pay you what you are paying in interest to a credit card company. If you can find an investment that earns 18% ...

  I hate being taken by surprise. Because I spend a lot of time planning, I’ve found that I’m not nearly as flexible as I’d like to be when it comes to unexpected expenses. The reality is that most of us can actually plan on regular unexpected spending each month. When you are sorting out your budget you should look at each unexpected expense you’ve had each month for the past year. I bet the amount is often similar each month, if not, at least you can plan for an average even if you don’t know in advance if it going to be a flat tire, a broken window, or an irreparable stain on your favorite blouse. Having an idea of the average amount you spend each month or year on something that will happen will help you be in a better place when the inevitable happens. But what about a very large expense? Let’s say your car gets stolen and you only have liability insurance. First cancel your car insurance. Obviously you don’t want to pay for something you no longer use. The second t...

  Have you ever served on a jury? I had jury duty for the first time last week and I feel like I need a support group to dissect everything that happened. I know I normally write about frugal and intentional living but this experience was monumental and I must write about it to better understand its impact on me. Thank you for your patience while I work this out. By the way, I also recorded a podcast about my experience, and it wasn’t enough! The case involved a houseless woman who was able to buy a car after saving money by recycling cans and bottles, she was robbed at knifepoint by a person she knows and his associate. She was stabbed four times in her right arm, her left thumb tendon was severed, she was dragged by the car as the thieves were driving away, she had road rash all along her back, she hit her head and needed eight staples to patch her up and her leg was run over which caused her muscles to detach from the bone which led to massive swelling that was repaired wit...

  What resources do you have that you can employ today to overcome your debt? You have more resources than you think you do. It can be daunting to take on a new way of living, and it’s easy to get bogged down in the overwhelming aspects of change versus focusing on the resources you have to make your goals easier to achieve. Before you get frustrated with your goal, take stock of the resources you have on hand to get you started on your journey. Do you have access to the internet where you live? If you have access to the internet you have access to tons of free entertainment. Transitioning away from streaming services is a big step. You will get used to not having HBO, Disney, or Netflix really quickly. Free entertainment comes from the following resources- Libby the library app Kanopy and Hoopla library streaming app YouTube Tubi You can consolidate your errands- If you drive to work take time to run errands before, after, or during your lunch b...