FRIENDS AND FINANCES FEATURING MONEY SAVED BLOG
Welcome back to friends and finances my featured blogger series that introduces you to some amazing bloggers. The biggest reason I decided to start this new series, is because I believe in getting different perspectives on handling your finances. Secondly I believe that the bloggers featured here each week have a lot to offer the world and deserve recognition. Some of the blogs featured will be other personal finance related blogs and others will not be. The reason I chose to include some other blogs that are not related to finance is simple, we all have a financial story no matter who we are. I believe money is not the only focus we should have when traveling our road to financial freedom, and I think discovering some fun blogs that share something different can be a welcomed break from over focusing on money.
So today I welcome Tawnya and Sebastian
First, we want to give a huge THANK YOU to Andrea for featuring us on her site!We are Tawnya and Sebastian, and we started Money Saved is Money Earned to help the average individual better understand finances and save money. Tawnya is a teacher and Sebastian is a retired financial analyst, and between us we have a wealth of knowledge about financial systems and those related to finance that affect how we view and use money. We want to help our readers begin using the system rather than be used by the system. Our goal is financial education and empowerment for as many people as we can reach!
1. How long have you been blogging?
We launched the website a little over two months ago on March 7th, 2018. However, the idea took shape about two years ago. Because of our busy lives we only talked about starting a blog for a long time. We decided to get serious during December of 2017. At that time we put a plan in place and began writing articles. We prepared a surplus of content in advance so that we don’t fall behind while taking the time for networking and figuring out all the other formalities that go into blogging
.2. What has been your biggest money mistake?
Tawnya – I have been very fortunate to have a great support system from my family, as well as friends (like Sebastian) who have been able to steer me clear of financial pitfalls. As such, I’m lucky in that I haven’t had any really huge money mistakes that got me into financial trouble. However, my biggest regret, and what I now tell everyone I can, is that I didn’t start investing earlier. I have a retirement account through my job (teaching), but I waited to start a 403(b) until I had reached some goals and increased my income. BIG MISTAKE. Even if it’s just $25 a month, start investing as soon as you can. A few years makes a huge difference in terms of compound interest.
Sebastian – I always tracked my expenses with my checking account, which did not reflect my credit card expenses. By the time I receive the credit card statement, I didn’t have enough left in my checking account to pay everything. I ended up taking money from savings and my savings balance started dropping, which almost lead me to start accumulating debt
3. What is your best advice for recovering from or preventing this money mistake?
Tawnya – As I mentioned above, start investing as soon as possible in some sort of retirement account. Employers often have some options, but you can also do an IRA on your own. Time is what makes the difference with these sorts of accounts, as the interest compounds and the money grows more the longer the account is open. These accounts are also good because you cannot use them until a certain age without paying a penalty. These safeguards ensure most people will leave the money alone until they need it for retirement.
Sebastian – Quite often people track their finances mentally, and often they think they are doing ok. Nope! Just like a drop of water, very small expenses can add up to a big pool of water. Most of the time it’s all the small expenses that throw people off of their budget plan. Preparing a budget and keeping track of your expenses is a must.Another mistake I see is that people pay their bills using the money from the checking account/paycheck, and then use credit cards for other expenses, especially for unbudgeted items. The problem with this is that you’re checking account is depleted, and then you’re paying for things with money you don’t have. You don’t see the shortage of money until you receive the credit card statement at the end of the month. By then you are already in the hole. An expense is an expense and it can only be paid from your income. If you spend more than you make, no matter how you do it, you will be in debt. It is that simple.
4. Favorite quote or money advice and who was the author?
Tawnya – One of my favorites is the inspiration for our blog name. Sebastian used the phrase “money saved is money earned” all the time when lecturing me about things I needed to do to save money.
Sebastian – “More money doesn’t necessarily solve all money problems, only habits can.” I don’t remember where I heard this, but it is so true.
5. Favorite money or budgeting related book and author?
Tawnya - Honestly, I don’t think I’ve ever read a money book. I’ve just been fortunate enough to have good money education and have learned from the mistakes of those around me.
Sebastian – I am an accounting major. The textbooks I used for my accounting degree are my main source of knowledge. I do not remember any of the authors (I graduated awhile ago).
6. Favorite money-saving website?
Tawnya – Other than our own, I really like The Penny Hoarder and Women Who Money. The Penny Hoarder is a huge money blog and Women Who Money is a personal finance blog featuring women. Finance is a field traditionally dominated by men so I really like the women aspect of their site.
Sebastian – I’ve seen a lot of money-saving websites. I hardly follow them. However, some of those sites give me the affirmation that I am mostly doing the right thing.
7. Favorite money-making app or website? ( You can give more than one)
Tawnya – Sorry to be so boring, but again I don’t really have one. I’ve heard people mention survey taking as a good way to make extra income, but I haven’t found those sites to be very effective.
Sebastian – I don’t have one.
8. Do you have an emergency fund or savings account?
Tawnya – Yes! I actually just recently diversified my savings by investing a good portion of it. While safe, savings accounts don’t yield hardly anything, so I now have a chunk invested and a few months of expenses sitting in savings. I also have two retirement accounts that I contribute to, PERS and a 403(b).
Sebastian – I do have access to liquid cash for emergencies. I have a very good credit line for additional emergency funds if needed. My balance sheet is very strong on the asset side.
9. What is your most successful strategy for saving money?
Tawnya – Really, there are only two basic ways to save money: increase your income or decrease your spending. While both are effective on their own, I’ve found the most effective is a combination of both. I have worked multiple jobs since I can remember, so I always have some side income coming in. I also work really hard to decrease spending wherever I can. This strategy has allowed me to remain relatively debt free, reach my goals, and still have enough leeway to spend money where I want to.
Sebastian – I agree with Tawnya. I would add building a budget to accomplish it.
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I want to thank Tawnya and Sebastian for taking the time to be Interviewed, for sharing your insight and financial advice with all of us today, and just a little glimpse of your website. Thank you everyone who took the time to read this post, stop by their website when you have a chance and let them know Saving Joyfully sent you. See you next time for another blogger Interview, and an introduction to another great blogger.