food costs

7 Ways Being Single is Better for Your Bank Account

Paul Michael — Tue, 06 Feb 2018 09:30:08 +0000

Valentine's Day is once again fast approaching. People in relationships are saving up to treat their partner to something special. And for those seeking romance, it's a great opportunity to drop a few hints with a card and candy. But for the millions of people who are single, this time of year can really suck.

If you fall into the latter category, take heart. You may not be part of a couple, but your bank account will adore you. Here's why.

1. Valentine's Day is a money suck

Romance is big business in America, and retailers will do everything they can to get you opening your wallet. In 2017, USA Today found that Americans spent over $18 billion on the day for lovers.

Think about all the good that money could have done; schools, hospitals, care for sick people. Instead, it was spent on overpriced roses, chocolates, teddy bears, jewelry, fancy meals, and lingerie. This equates to the average consumer spending around $137 on February 14, although clearly some people are spending way more.

If you're single and like the idea of chocolates and flowers, wait until the day after. They'll be reduced by 50 to 75 percent (or more in some cases) for the exact same products. (See also: 14 Ways to Spend Less Money on Valentine's Day)

2. Your food budget goes a lot further

When you're shopping for two, you spend a lot more than when you're on your own. For a start, the chances of you both loving all the same foods is slim. Speaking from personal experience, I can meal prep the same food that I love for the whole week and eat it every night. It's cheap, it's balanced, and it suits me just fine. In a couple, that was a complete no-go. The same meal every night? No way. That means more ingredients, more recipes, and more money.

What's more, dining out as a single person is not as attractive a proposition as dining with a partner, so less is spent on restaurants and other eateries. And when you do eat out alone, you're spending at least half as much. Couples have a tendency to splurge on wine, desserts, and so on. When you're eating alone, you don't want to linger for as long, and that means less time to eat, drink, and spend. Those savings are delicious.

3. Weddings aren't cheap

If you're fretting about the couples around you that are planning to get married, this little statistic should ease the pain considerably: According to The Knot, the average cost of a wedding in the USA in 2016 was a staggering $35,329.

That is up $2,688 from 2015, which means you can expect that average to be even higher this year. After the cost of food and wine, renting a venue, a DJ or band, flowers, cake, invitations, photographs, and favors, the average price per guest rose to $245.

That's right, you're spending that much for each and every guest you invite. And let's not forget the cost of the wedding dress, the ring, and the expensive honeymoon after the big day. You can easily kick-start married life with over $40,000 in debt. Consider that next time you see a couple walk down the aisle.

4. You have time to focus on your career and your finances

Relationships eat up time. There's just no getting around that fact. Of course, people in happy relationships will point out that it's exactly the reason they're seeing someone; they want to spend time in the company of someone they love, and why wouldn't they? But this has to come with a sacrifice, and usually it's the career and the ability to make money that suffers.

The relationship will take a hit if one of you is working late night after night, or canceling plans at the weekend to pitch on new business. Guilt sets in, and instead of devoting time to a higher salary and new opportunities, it becomes the norm to spend free time eating out, going to movies, and taking weekend trips to the mountains or the beach. That means instead of using your free time to earn money, you're using it to spend money. (See also: 13 Ways to Make Money From Valentine's Day)

5. No more spending money on gifts

Aside from Valentine's Day, there are plenty of other dates on the calendar that make you spend money. Birthdays, anniversaries, and major holidays will hit you in the bank account throughout the year. Depending on what your partner is into, these gifts can set you back hundreds (or even thousands) of dollars. Forget the watches, clothes, gadgets, and gift cards, and instead save the money. Or, buy yourself something you've always wanted. (See also: 12 Fun Facts About Valentine's Day Spending)

6. Vacations are cheaper alone

Most couples like to do things the traditional (and expensive) way when they go on vacation. A hotel room, rental car, taxis, shows, restaurants, and bars are usually part of the mix. But when you're single, your options open up considerably, and the cost of your vacation can drop dramatically.

For a start, as a single traveler, a site like Couchsurfing can be a huge money-saver, and it's also a great way to meet other people and make new friends. You could also use Airbnb to find a bedroom in a local house that is way cheaper than a hotel room. You don't have to compromise on anything. Eat the food you want. Go where you want. Spend as little as you want. Single travelers have much more freedom, and way more options available. When you have more options, you have more opportunities to save money.

7. Two people means double the debt

The average person with credit card debt owes $5,331 on their cards, according to CreditDonkey. When you become part of a serious relationship, and get married, you combine the debts you owe. That means you are now responsible for twice what you were before.

Admittedly, you probably have two salaries (although not every couple has two incomes), but it can become daunting to look at the combined debts you have to pay off. As a single person, your debts are your own. And you can choose to live very frugally to pay off your debts, which can be a lot more difficult to do when your partner doesn't want to eat ramen and eggs four times a week.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Little Ways to Boost Your Savings Account Every Day

Tim Lemke — Thu, 01 Feb 2018 09:00:06 +0000

Saving money is not always simple or straightforward. It's easy to get discouraged when faced with a big, long-term savings goal or mountain of debt. That's why it might make sense to start small. Rather than worry about saving thousands for that down payment or paying off that massive student loan, focus on reasonable things you can do each day to give your savings account a boost.

None of these suggestions will make you rich by themselves. But collectively and over time, they can add up to a meaningful sum.

1. Drive less, or at least smarter

Every time you get in your car, you're spending money. You are spending money on gas, and your car is depreciating and getting closer to needing repairs. It may be impossible to ditch your car altogether, but there are small things you can do each day to reduce your costs.

Research shorter and faster ways of getting to your destination. Consider planning your errands so that you can get more done in one trip, and plan your route for greatest efficiency. Drive when traffic is light, so you're not wasting time and gas. Turn your air conditioner or heater off if you don't really need them, and make sure your tires are inflated properly. These are small things, but they can add up to some savings over time. (See also: Cutting Your Car Payment Is Easier Than You Think)

2. Save and deposit your change

Let's face it, we're all reckless when it comes to change. We drop it on the ground. We leave it laying around. We spend it on candy bars and gum. We put it in large jars and forget about it.

It's time to get smarter about change. Go to the bank and deposit it. Even though it may seem like a trivial amount of money, that's still money that can collect interest and add value to your savings account over time. We get hundreds of dollars in change back from purchases throughout the year. Make that money work for you and put it directly into savings. (See also: 20 Smart Ways to Spend Your Loose Change)

3. Round up credit card purchases and deposit the difference

This is just like depositing your change from cash purchases. Let's say you go to a restaurant and are charged $12.65 for a sandwich. If you pay with a credit card, consider mentally rounding that purchase up to $13 and transferring 35 cents into a special savings account. If you do this with every purchase, you'll be banking several additional dollars each week, or potentially hundreds of dollars annually. (See also: 7 Ways to Save Loads of Money Using Credit Cards)

4. Adjust your thermostat

We all want to be comfortable when at home, but making even a small tweak to the indoor temperature can add up to significant savings over time. If it's winter time, consider turning the heat down and just throwing on an extra layer instead. In the summer, open some windows and use fans for part of the day. Always set the temperature differently when you aren't at home — a programmable thermostat can be hugely helpful in this area. (See also: 34 Smart Ways to Cut Your Electric Bill)

5. Use loyalty cards

I know some people don't like to sign up for loyalty cards because they aren't keen on sharing information or being bombarded with promotions. But I say get over it. Whether it's for Dunkin' Donuts, J. Crew, or your local grocery store, these cards can give you access to discounts you may not otherwise get.

The caveat to this is that if having a loyalty card encourages you to spend money you may not have otherwise spent, don't do it. But if the card is for a store you shop at frequently anyway, sign up! (See also: 9 Store Loyalty Programs That Are Worth It)

6. Clip coupons

Searching and cutting out coupons can seem like a real pain, but it's often worth it. Start by finding circulars or online flyers for stores you shop at regularly. Look for places that will double or even triple coupons. If you use a coupon to buy an item, consider taking the amount of money saved and diverting that into a special high-interest savings account. By doing this, you're saving double anytime you get a discounted item. (See also: 9 Online Retailers Who Let You Stack Coupons)

7. Get a credit card offering cash back

There are a million credit cards out there with various rewards, but I am partial to those that offer straight cash back on purchases. That's because rather than spending the reward, you can transfer it directly into a bank account. Other credit card rewards offering shopping discounts or airline miles are nice, but they don't help you increase your savings. I use a card that offers as much as 5 percent cash back on purchases, and it has saved me a significant amount of money over the years. (See also: The Best Cash Back Credit Cards)

8. Eat in

More and more people are eating out these days, because we're all busy, and who has the time to cook? But if you are willing to spend some time in the kitchen, you will almost always save money.

It costs far less to purchase ingredients and prepare meals at home than to go out to a restaurant. This is especially true if you spend money on beverages and appetizers when eating out. If you do cook at home, add up the cost of ingredients and calculate the price of a comparable restaurant meal. Take that savings and place it in a special account. (See also: 8 Ways to Save on Dinner — No Meal Planning Required)

9. Do quick jobs

You may already be employed and don't think you have the time or energy for additional work, especially if it does not pay well. But everyone has a few spare moments where they can make some easy cash. Freelance sites like Fiverr offer access to creative jobs that can be done quickly. There are a number of apps and websites that will give you cash just for answering surveys. Services such as TaskRabbit allow you to make money by offering quick, simple services, like giving someone a ride to the doctor's office. (See also: 14 Best Side Jobs For Fast Cash)

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

13 Ways to Cut Costs on Holiday Feasts

Mikey Rox — Tue, 14 Nov 2017 09:00:09 +0000

Every time I plan a big holiday meal, I brace for the bill. Even after making these family-style feasts several times over, I'm still annoyed when I hear the total at the supermarket checkout. "How do turkey, green beans, and mashed potatoes cost that much?" I ask myself. Yet year after year, I overspend on Thanksgiving and Christmas dinners while continuing to scratch my head.

But not this year. No. This year I'm setting a reasonable budget and sticking to it (so I can have more money to buy presents!). Here's how you can do it, too.

1. Take inventory of what you already have

One of the biggest mistakes is not itemizing all the dinner ingredients at once and checking your pantry and cabinets for what you already have. I've gone to the supermarket countless times and questioned whether I have enough butter or olive oil just to return home to realize I did, in fact, have plenty — after I bought more, of course.

Stocking up on these items unnecessarily is a massive budget suck, and you're better off taking the time to figure out what you need to buy and what you don't before hitting the store. (See also: 9 Pantry Tricks That Save You Big)

2. Map out your menu

Based on the ingredients you already have on hand, you can start planning your menu, then fill in the gaps with new items you buy. I go through my bookmarked recipes on my phone and visit my favorite food sites to choose my recipes, keeping in mind the money-plus-time investment. I don't want to spend 12 hours slaving over the stove, so I make sure that all dishes can be prepped in less than 10 minutes, not including set-it-and-forget-it cook time. Just because the recipes are efficient, however, doesn't mean they can't be delicious. Maybe they're not overly fancified, but I've come to learn that most people aren't that impressed by my cooking and presentation skills when they've been growing hungrier since the moment they walked through the door.

3. Compare prices

Just because something is on sale doesn't mean it's not cheaper elsewhere. Don't limit yourself to one supermarket. Pick up the circulars and flip through to price out what you need. Use a price comparison tool like PriceBlink or Camelizer to make sure you're getting the best price before stepping into the store. If this means you have to visit two supermarkets to save, decide if it's worth your while. Generally, if I'm saving more than $10 between stores, I'll take the detour. (See also: 31 Foolproof Ways to Lower Your Grocery Bill)

4. Check your cash-back apps before heading to the store

Hopefully you're clipping your coupons before you go to the supermarket — and being smart enough not to fall for the "buy more and save" deals because you're not really saving if you're buying more than you need — but I also want you to scroll through your cash-backs apps like Ibotta and Checkout 51 before you start shopping to see what deals are available. Many times I've gone grocery shopping and checked the app after the fact, only to realize that I could have bought a similar item at a discount. Open the app and browse what's offered so you have the items fresh in your head as you work your way through the aisles. Afterward, submit your receipt and claim your cash. (See also: The 8 Shopping Apps That'll Actually Save You Money)

5. Set your budget and stick to it

Once you've priced out all the items you need, create a shopping list and set your budget. Try not to exceed more than $10 of the total you've set, but your real goal is to come in under budget. This requires discipline, especially when factoring in impulse buys at the supermarket. To avoid this, it's best to go food shopping right after eating since you won't be hungry in the chip and cookie aisle — my biggest weakness. Another trick to maintain efficiency in the supermarket is to go on a busy day. I know, it sounds dreadful, but on those days, you're likelier to want to get in and out instead of shopping more leisurely. The less time you have in front of all that food, the better. (See also: 7 Effortless Ways to Prevent Budget-Busting Impulse Buys)

6. Opt for generic

I'm usually against buying generic (yes, I know it's the cheaper option, but I prefer name-brand food; it's a quality issue for me), but when I'm planning a big meal, I relax my anti-generic policy to shave money off the bill. Butter, for instance, doesn't have to be Land O'Lakes, and I'll settle for store-brand spices, which are already pricey. Pastas, nuts, sugar, and flour are also good options to buy generic. These substitutes make zero difference in my recipes, but you do have to be savvy about what you're swapping. Namely, not all cheese is created equal, and I would recommend sticking to what you know, lest you want an oily mess on your hands. Some corners should not be cut.

7. Load up on cheap carbs

Know how to feed a crowd and actually fill them up? Ask any working family in America and they'll tell you the secret is carbs. Serving breads, potatoes, and pastas is a great way to extend your reach in the bang-for-your-buck department, which means you can skimp a bit on already love-it-or-hate-it vegetables like Brussels sprouts, spinach, and asparagus, which all come at a premium.

8. Buy in bulk when it makes sense

Buying in bulk doesn't always save you money, especially if you don't plan to use all of whatever it is you're buying before it expires. However, if you're getting a better deal in a large quantity versus buying several smaller versions, go for it. I don't, however, suggest you buy a wholesale club membership solely for your large holiday meal. You most likely will not get back in savings the $60 you spent on the membership in that single shopping trip. If it makes sense for your family the rest of the year, consider it, but otherwise it's not a good idea. (See also: Bulk Buying Basics: What to Buy, How to Store, and Money Saving Tips)

9. Turn your holiday feast into a potluck

If you really want to slash your own out-of-pocket costs for the holiday meal you host, leave the side dishes and desserts up to your guests. You make the main course — turkey, ham, or whatever you like to serve — plus a few pre-dinner treats, but request that your guests fill in the blanks. An easy way to keep track of who's bringing what is to create a Google spreadsheet that you can share via email with all of your guests. It will save updates automatically for everyone to see. When sides and desserts are claimed, feel free to pawn off drinks and ice on whoever's left empty-handed on the list. There's nothing wrong with a party where everyone pitches in. (See also: Throw an Awesome Potluck Dinner With These 6 Easy Tricks)

10. Ask your guests about their food preferences

To avoid wasting food that people don't like or can't eat, get a sense of your guests' palates before planning your menu. If only one person likes lima beans, it's not the best side dish to serve if most of it will end up in the trash. Ask about any dietary restrictions and allergies while you're at it, too. Nobody will expect you to cater the entire meal to the vegetarian or gluten-free guest at the table, but it's appropriate to provide at least a few items that guest can and will enjoy.

11. Stretch the food dollars into leftovers

I'm not a super fan of leftovers (you're probably getting a good idea of how picky I am when it comes to food), so I do make a concerted effort to plan my quantities carefully and focus on foods that I don't mind having a second or third time. Since everyone is different, I won't tell you how to eat your leftovers if you so choose, but I will suggest that you mind the parts of the meal that usually hit the trash first, like the ham bone and turkey carcass. These are great for making soups and stocks; it's fairly easy to do with recipes you'll find online. (See also: 17 Ways to Use Thanksgiving Leftovers)

12. Bring only your budgeted cash to the supermarket

The best way to force yourself to stay on budget when shopping for your holiday meal is to leave all debit and credit cards at home and only bring the cash that you've set aside for the ingredients. This will stop impulse buys in their tracks, and you'll be forced to find the most inexpensive items and alternatives to ensure you have enough money to pay the bill. It will also help to use your calculator along the way. I saw my mom doing that on more than one trip to the supermarket when I was a kid and it stuck with me.

13. Establish a BYOB rule

I wouldn't ask my guests to bring a potluck dish plus their own booze. If you're taking on all the food, it's perfectly acceptable to ask your guests to bring what they'd like to drink and share. On the other hand, if guests are bringing dishes to complete the meal, reward them with adult beverages. Don't feel obligated to satisfy everyone's tastes though. Serve white and red wines and a light beer. If they're not happy with that selection, they can sip the soft drinks that you'll also provide until they're able to hit the neighborhood bar.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Money Lessons I Learned From Three Weeks in Europe

Holly Johnson — Wed, 23 Aug 2017 08:30:11 +0000

In early June, my husband and I took a bucket list trip to Europe with our kids. While we've visited countless countries worldwide as a couple, this was our first "big trip" with our daughters, ages six and eight. In addition to the four of us, we took a family caregiver to help with the kids and give Mom and Dad a break. Over the course of 19 days, we spent time in Germany, Italy, and Switzerland. The entire ordeal was exhausting, but it was an absolute blast!

Fortunately, we planned far enough ahead that we didn't spend too much out of pocket while we were there. By leveraging travel rewards credit cards and setting a daily spending budget, we were able to get the entire trip, which would normally cost $20,000 retail, for around $3,500. (See also: 5 Steps to Getting a Free (or Close to Free) Vacation with Credit Cards)

In addition to the virtues of planning ahead as a savings strategy, we learned numerous financial lessons during our travels. While we were aware of most of these lessons already, seeing the world through our children's eyes served as the perfect reminder of the reasons behind some of our most important financial decisions.

Here are a few lessons we relearned thanks to our trip abroad.

1. Failing to plan means planning to fail

One of the most expensive components of our trip was dining, mostly because there were five people in our group. No matter how cheaply you try to eat, feeding five people three meals a day means your food budget adds up quickly.

While we tried to minimize our food costs by eating breakfast in our condo and searching for budget options, there were times where we didn't plan ahead and paid a steep price for our lack of preparation.

One meal in particular stands out. We traveled by train to Rome in the morning and arrived in early afternoon without researching restaurants or stores in the immediate area. In a tired and hungry daze, we entered the first restaurant we walked past near Piazza Navona.

Unfortunately, we paid big time for this oversight. Not only was the food overly touristy (pictures on the menu — blech), but our lunch set us back nearly $90. If we had searched ahead of time, we would have known we could have found much cheaper (and probably tastier) options had we walked a block in the other direction. (See also: 4 Secrets to Eating Great Food for Cheap While Traveling)

2. Expensive does not equal better

That meal also served as a reminder that expensive isn't always better. We paid $90 for a lunch that was mediocre at best on that particular day, but at other times we enjoyed meals that were absolutely delicious and downright cheap.

One that comes to mind was a meal we had in nearby Florence, Italy. In order to keep our food budget under control, we started researching local restaurants once we arrived. Eventually, we stumbled upon a sandwich shop — Panini Toscani — that was uber-cheap but was also the third highest rated restaurant in Florence.

We wound up eating there twice. The food was delicious and convenient, and our total meal for five people was less than $20 both times.

3. Even budget trips can be fun

By the time we got to Switzerland (our last stop), I was pretty tired of spending money in general. So, when we had our final "free day" in the country, I spent some time looking for something fun and affordable to do. (See also: 7 Countries Where You Can Travel on $30 a Day or Less)

Eventually, I remembered a town we drove by that had the most beautiful, clear-green lake I had ever seen. After looking up the details, I found that the tiny village of Lungern had a public beach and a few waterslides with a daily admission cost of about $5.25 per adult.

This relatively cheap day was probably the most fun we had. All of us swam and rode waterslides the entire day, stopping only to have a low-cost lunch.

It just goes to show that budget travel can absolutely be fun, and that you don't have to spend a ton of money to enjoy yourself.

4. There's more than one "right way" to do things

One of the most rewarding components of travel is watching my kids react to the many ways other countries handle things differently. My kids were obsessed with euros, for example. They couldn't understand why anyone would choose to offer two euros in the form of a coin.

I also had to explain why we didn't tip as much as we normally do. Since workers in Europe are paid higher wages, you don't have to tip 15–20 percent like you do in the states.

While we could argue all day over which way is better, I told my kids there is more than one "right way" to do things sometimes. (See also: 7 Countries Where You Don't Have to Tip at Restaurants)

5. We actually need very little

While I wasn't sure we could pull it off, we made it through the entire trip with just carry-on luggage and two school-sized backpacks of stuff. It helped that one of our condos had a washing machine, but I was still amazed we enjoyed ourselves without many comforts from home.

This just goes to show that most of us don't need a lot to be happy. We need clothes, food, and shelter, but everything else is optional. We can be happy and content without having a bunch of stuff to bog us down.

6. Most people are honest, but not everyone

Most of the people we dealt with abroad were both kind and honest — except for a couple of small incidences. First, we encountered a taxi driver who tried to charge us $28 (instead of running his meter) to take us four blocks in Rome. Not only was this outrageous since we'd paid $7 for the same ride earlier that day, but it was illegal for him to do this since the city of Rome regulates official taxis.

Second, when we got home from the trip, we received a fraud alert from Chase. Apparently, someone had swiped our card information and tried to make a purchase in Peru.

This kind of stuff happens no matter where you are, so it's important to always stay vigilant. (See also: 7 Ways to Protect Yourself From Theft While Traveling)

7. Exchange rates matter

Whenever I travel abroad, I almost always struggle to keep track of the currency exchange rate and how it affects everything we buy. But, since a single U.S. dollar is currently worth just .87 euros, this is an important detail to keep in mind. If something costs 10 euros, for example, you're actually paying $11.55.

While I used a credit card with no foreign transaction fees to pay most of our expenses, I tried hard to impart this lesson on our kids. No matter where you are in the world, chances are good the money isn't worth the same as at home. And, if you don't pay attention, you could wind up spending a lot more than you think!

8. Some experiences are worth the money, even if they're expensive

While we definitely saved a bundle on this trip due to the way we leveraged credit card rewards, we still spent $3,500 of our hard-earned dollars. On top of that, I probably spent 30–50 hours planning not only our credit card rewards strategy, but our hotels, flights, and trains.

The thing is, I don't regret a single cent — or a single second. Over my lifetime, I've learned that some experiences are worth the money and the time, even if it seems like a lot.

It's hard to put a price tag on a fun family trip that exposed us to cultures in a completely different part of the world. I believe it was priceless. Some memories are worth saving up to splurge on. (See also: How to Build Your Best Travel Budget)

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Here's How You Should Budget Your Social Security Checks

Dan Rafter — Wed, 23 Aug 2017 08:30:05 +0000

The average retired worker earns a monthly Social Security check of $1,360, according to the U.S. Social Security Administration. And for most retirees, Social Security benefits are just one source of income, with many supplementing their checks with money that they've saved in 401(k) plans, IRAs, and other savings vehicles.

This doesn't mean, though, that these Social Security dollars aren't important. The administration says that Social Security benefits represent about 34 percent of the income of the elderly. That's why it's so important for retirees to create a budget for their Social Security benefits and determine the best way to spend such a significant portion of their monthly earnings. (See also: 6 Smart Ways to Boost Your Social Security Payout Before Retirement)

There's always a need for a budget

The first step in determining how to best spend Social Security benefits is to calculate your monthly income from all sources. Then, determine how much of this income comes from Social Security benefits alone. If Social Security accounts for 70 percent of your monthly income, you'll have to be especially careful how you spend it. If it accounts for just 20 percent, you'll have a bit more leeway.

Once you determine how important your benefits are to your monthly income stream, it's time to calculate how much of your Social Security check you should devote to each of your main expenses. (See also: 6 Ways You Can Cut Costs Right Before You Retire)

Housing

Ideally, you'll enter retirement without a mortgage payment. But that doesn't always happen. You might choose to rent during your retirement years. Or, maybe you'll spend your retirement years in assisted living.

Housing often remains a significant expense for retirees, with the Bureau of Labor Statistics reporting in March 2016 that seniors age 55 and older spend an average $16,219 a year on housing. Seniors from the ages of 65 to 74 spend an average $15,838.

If you receive the average Social Security check of $1,360 a month, you'll receive $16,320 a year. This means that the average amount that retirees spend on housing would consume most of your Social Security income each year.

It might make sense to devote a set percentage of every Social Security check to help cover your housing expenses. How much that percentage is will depend on how much you are spending on housing. If you live in a home with a mortgage that's been paid off, you obviously won't need to spend as much of your checks on housing as you would if you were still paying a mortgage. If housing is a significant expense, though, you might consider devoting 60 percent or more of your Social Security check to covering it. (See also: 5 Countries Where You Can Retire for $1,000 a Month)

Food

The Bureau of Labor Statistics reported that seniors from the ages of 65 to 74 spend an average $6,303 a year on food. This makes sense: You have to eat, whether you're working or not. Make sure, then, to reserve part of your Social Security check for groceries and meals out.

You do have control over this expense, of course. You can eat out less often and cook at home more, which would reduce your food expenses. But setting aside 20 percent or so of your monthly Social Security check for food should suffice.

Medical expenses

Depending on your health, medical costs could be a significant expense as you age. The numbers from the Bureau of Labor Statistics bear this out. According to the Bureau, adults from the ages of 65 to 74 spend an average $5,956 a year for medical care. The Bureau says that adults 74 and older spend an average $5,708 a year on health care. (See also: How an HSA Could Help Your Retirement)

Health expenses are one cost you have little control over. Sure, you can exercise and eat well. But you might still suffer health setbacks. It's important to reserve at least some of your Social Security check to cover these sometimes unexpected costs.

Consider saving an additional 20 percent of your Social Security benefits for medical spending.

Other costs

If you've been keeping track, those three expenses might eat up your entire Social Security check. Again, this depends on how much Social Security income you receive each month and how much you actually spend on housing, health care, and food. (See also: How Much Can You Afford to Spend in Retirement?)

If you find that these three big expenses do swallow most or all of your expenses, you'll have to dip into your retirement savings and other income vehicles to cover costs such as travel, transportation, entertainment, and any other monthly bills.

Budgeting your Social Security check highlights just how important it is to have multiple income sources at your disposal after retirement. As you can see, Social Security doesn't go that far when it comes to covering the basic living expenses of many seniors.

You do have options, of course. You can scale back your retirement plans, perhaps choosing to travel less and eat in more often. You can also take on a part-time job. That extra income could come in handy to cover the smaller, unexpected expenses that tend to come up. (See also: 9 Easy Ways Retirees Can Earn Extra Income)

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Here's What You Need to Know Before Buying a College Meal Plan

Damian Davila — Tue, 15 Aug 2017 08:30:10 +0000

Before heading off to college, you need to budget for its many expenses. On top of tuition, course materials, and room and board, many people also forget about one important line item: food! (See also: 9 College Expenses You Aren't Saving For)

The unfortunate news is you often don't have a lot of options for combating the high cost of college campus meals. But at least you can go into the situation informed, so you can make appropriate budget allowances. Here are six things every student should know about college meal plans:

1. Residential students are often required to buy one

First of all, you may think that you have the option of whether or not to buy a meal plan. Turns out that if you're a student living in university quarters, your school will likely require you to buy one. Make sure to read the fine print, because freshmen can be required to pay up for a "platinum" plan. For example, for the 2017-2018 school year, the Stevens Institute of Technology in New Jersey required its freshmen living on campus to purchase an unlimited $3,200 per semester meal plan.

Even students living in dormitories with kitchens can be required a minimum buy-in for food costs, according to The New York Times.

2. "Lighter" meal plans are often only available to upperclassmen

If you find that a top-tier meal plan is excessive and you want to downgrade, you may have to wait a few semesters (or years). It's not uncommon that lighter versions, such as a 10-meal per week plan, are only available to students with a certain number of semesters under their belts. Freshmen may be required to buy plans with 15 to 19 meals per week.

3. Rollovers may not be allowed

Some schools allow you to apply unused meals from one week to the next, and others don't. To help you make the most out of your meal plan, check the applicable rules regarding rollovers. Tight rules may make skipping meals at participating cafeterias and vendors a big financial waste. You don't want to skip a meal you've paid for, only to have to pay for off-plan food later when you're hungry.

4. Cost per "swipe" can be higher

Some college dining plans provide cards with a preloaded number of swipes that students can use at participating on-campus eateries. Sound good? Well, the problem is, that convenience comes at a cost: Cardholders often end up paying more "per swipe" than somebody paying for the same meal with cash.

If you're looking for variety, going the DIY route is more budget-friendly. Instead of swiping for overpriced coffee at the on-campus coffee shop, invest in a small coffee pot for your dorm room. By buying your own ground coffee and milk, you should be able to crank out two Americanos with milk per day for a total cost of about 60 cents. (See also: 8 Money-Saving Hacks Every College Student Should Try)

5. Meal plan expenses aren't eligible for tax credits

Many college students are eligible for two great tax credits:

Lifetime Learning Credit: This credit allows you to deduct up to 20 percent of your first $10,000 in qualified education expenses, up to $2,000 per taxpayer.
American Opportunity Credit: This credit enables you to cover up to $2,500 of undergraduate college costs.

Unlike expenses for course-related supplies or tuition, meal plan fees aren't eligible toward either one of these tax credits. Even when required as a condition for enrollment or attendance, meal plan fees aren't considered qualified education expenses. This is especially frustrating, because up to 40 percent of the American Opportunity Credit is refundable, even if you don't owe any federal taxes. (See also: Don't Skip These 8 Tax Breaks for Students)

6. Higher costs contribute to higher student loans

According to Student Loan Hero, the average 2016 graduate took home $37,172 in student loan debt, up 6 percent from 2015. With their average student loan burden going up, students have to look for ways to drive down costs. And increasingly expensive college meal plans aren't helping.

According to U.S. Department of Education data, the average college charged about $4,300 for a 19-meal per week contract for the 2015 academic year, or $7.50 per meal. In the same year, the Bureau of Labor Statistics found the average American spent just $4,000 eating at home for a 12-month period (that's just $4 a meal!). That means the average college student with a meal plan pays 87.5 percent more per meal.

It turns out that cutting back on that pricey college meal plan doesn't just help you ward off the extra pounds, but it also helps keep the student debt monster in check.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Climate Change Could Affect Your Money

Andrea Karim — Thu, 03 Aug 2017 09:00:05 +0000

As our planet steadily warms and the climate changes, one thing is for certain — it is incredibly hard to predict what the long-term future holds.

There is a ton of data that shows Earth's climate is warming, but the change is occurring so rapidly that the existing data doesn't necessarily provide scientists with a way to make 100 percent accurate predictions. Plus, we can hardly get weather predictions right for the next week, so imagine trying to make accurate predictions for decades into the future.

All of that said, there are six predictions that we can generally make regarding the future of our planet and our money.

1. Water will cost more

Water is, hands down, our most precious resource on this planet. Scientists predict that potable water may become increasingly rare in the next 50 years — at least, based on our current climate models and methods for collecting and storing water. At least half the world's population relies on groundwater for personal consumption (with urban demand expected to grow by 55 percent by 2050, according to National Geographic), and groundwater is supplied by precipitation.

Global warming is expected to increase downpours, so one might expect that our groundwater supply should be in good shape. However, that's not the case. Groundwater builds up slowly over time, through melting snowpack and steady precipitation. If climate forecast models are accurate, then it's possible that the next 100 years will see northern hemisphere snowfall amounts decline dramatically (between 10 percent and 30 percent, according to National Geographic). Increased precipitation, when it comes in the form of monsoon-like deluges that are too voluminous to be absorbed, simply causes flooding.

In addition, warmer global temperatures will contribute to problems with water quality, according to both the Union of Concerned Scientists and Physicians for Social Responsibility. Rising seawater in low-lying coastal areas can contaminate freshwater reserves. In areas of drought, on the other hand, concentrations of freshwater contaminants are expected to increase, which can lead to potential health concerns for humans.

Precipitation deluges can also cost municipalities millions if excess stormwater floods damage sewage treatment plants (as happened in Seattle in February 2017). This can lead to a costly backup — or in the case of the Seattle treatment plant, millions of gallons of raw sewage pouring into Puget Sound. All of this makes it extremely likely that the cost of potable water will get much higher in the next 50 years or so.

2. Energy will cost more

North America has enjoyed a boom in cheap oil and natural gas in recent years, thanks to fracking, a means of extracting oil and gas from rock shale using pressurized water. But as climate change causes freshwater supplies to dwindle and water costs to rise, expect to see either a falloff in fracking-related production of fossil fuels or a drop in demand.

Other means of power generation may come under threat, too. Many of the country's rivers may actually see less water flow due to shifting precipitation patterns and accelerated evaporation rates. Less water flowing in our rivers will mean less water to power hydroelectric dams. Did you know that water is used to cool coal and nuclear power plants, too? Without access to that water, power brownouts are a possibility in many areas, especially during times of peak power usage.

Fortunately, advancements in green technologies like solar and wind energy production (coupled with new efforts to manufacture batteries for home storage of electricity) promise possible relief. These technologies, along with microgrids — local energy grids that can disconnect from main power grids and run autonomously — can also help alleviate problems that arise from the aging of the already hopelessly outdated U.S. utilities infrastructure.

3. Food may cost a lot more

A warming climate is a mixed blessing when it comes to food production. Warmer weather and higher levels of carbon dioxide can mean happier crops and larger yields, but that's assuming that new diseases and pests don't also thrive on the warming conditions. Because the cost of food depends on so much more than crop yields, it's very difficult to say how food prices may rise in the future.

According to National Geographic, some crops' yields will increase, while others may see a significant drop. Among the predictions scientists are making:

Corn yield may decline by as much as 20 percent in the Midwestern United States, and 16 percent in Brazil. And if the cost of corn and other basic cereals rises along with the cost of water, the cost of meat production will also rise.
Potato farmers in northern Europe may expect an increase in production, whereas farms farther south will become increasingly drought-prone.
West and East Africa may support more industrial agriculture, but China and India are expected to experience massive losses of arable land.

As the climate continues warming, Americans may see a serious shortage of fresh fruits and vegetables, causing price hikes. California produces the vast majority of the fresh produce eaten in the United States, including citrus fruit, artichokes, broccoli, nuts, plums, and tomatoes. The state's vast farmlands are expected to suffer from more frequent droughts and heat waves as the climate continues warming.

Seafood is also likely to become rarer and pricier as rising carbon dioxide levels cause oceans to acidify and harm or kill off species like salmon.

4. Flood prone real estate may lose value

Temperamental weather is one thing, but the warming atmosphere and oceans are also giving rise to more intense and numerous hurricanes and other ocean-centered storms.

The tempests, combined with rising sea levels, are expected to devalue coastal property significantly over the next 50 to 100 years. According to the National Ocean Service, in 2010, 39 percent of the U.S. population lived in counties directly on the shoreline, with another 8 percent expected to join them by 2020. Consumers who own properties right up against the coast face not only physical dangers from rising sea levels, but also increasing costs, particularly for homeowners and flood insurance. You can expect to see premiums and deductibles rise in areas affected by climate change-related flooding.

It has taken some time for the U.S. real estate world to react to the predictions about climate change, perhaps because North America hasn't experienced as much climate change-related damage as initially predicted (or perhaps because 60 percent of Americans don't believe that climate change will affect them personally, according to research from Yale University's Program on Climate Change Communication). However, changes are taking place. New York Times data shows home sales have dropped about 7.6 percent in high-risk flood areas of Miami-Dade County, even though home sales have increased 2.6 percent nationally.

5. Homeownership will cost more

Real estate agents like to say that there are three factors to consider when buying a home: location, location, location. Well, it's more true now than ever. While homeowners previously considered issues like neighborhood safety, the quality of the local school district, or local amenities, now homebuyers will also have to factor in issues like: Will my home be swept away in a freak flood? Are forest fires becoming a possibility in this area? The answers could point to significant dangers or at the very least, higher costs.

Buying a home in an area that is negatively affected by climate change will affect more than your mortgage options and your insurance: You may also pay a fee just to live dangerously. Homes built in unincorporated fire-prone areas, for instance, may be charged an annual fee to help pay for firefighting efforts. This has already been proposed in Washington State.

6. Health care costs will continue to grow

Anyone who has been to Beijing or Bangkok knows how terrible air pollution can affect your health. From asthma to emphysema, a more polluted atmosphere (which is currently a huge contributor to our warming climate) can mean a host of new health issues.

Warmer weather, combined with higher levels of carbon dioxide, can also cause plants to vigorously produce more pollen — meaning worsening symptoms for people with allergies.

And a wetter, warmer climate encourages the spread of insects like mosquitoes, which carry deadly diseases. Speaking of insects, the bark beetle that is killing off vast swathes of forest in the Western United States and Canada is creating so much dead wood that it's contributing to larger, deadlier forest fires in the dry summer months. Those, in turn, further hurt asthmatics and people with other pulmonary issues.

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This article is from Andrea Karim of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Countries Where You Can Retire for $1,000 a Month

Nick Wharton — Tue, 11 Jul 2017 08:30:11 +0000

Most of us dream of retiring to a life of leisure, with a nest egg that will enable us to live comfortably. But according to the Government Accountability Office, up to two-thirds of workers are at risk of not maintaining the same standard of living they enjoyed pre-retirement.

Moving to a new country to live out your retirement could provide the perfect solution. Numbeo's Cost of Living Index has the U.S. listed as the 18th most expensive country to live in, meaning retirees have a huge number of cheaper countries to select from. Here are five countries where you can retire on $1,000 per month or less. (See also: 5 Countries That Welcome American Retirees)

1. Thailand

Thailand is best known for its tropical islands and exciting big cities, but it's also a destination where an increasing number of overseas retirees are settling down. It's got the magic combination of being well-developed while maintaining very low living costs.

Cost of living

Groceries are well-priced and good quality, and fresh produce is widely available. According to Numbeo, the average price of a loaf of bread is $1, a dozen eggs is $1.60, and a pound of rice costs just 50 cents. A three-course meal for two at a midrange restaurant costs $18, so you'll also be able to enjoy regular evenings out.

The transport infrastructure in Thailand is also good, with tuk tuks, taxis, and public transport providing easy ways to get around. Costs are low, with Numbeo suggesting the flag fare for an average one-way taxi ride is about $1, plus 50 cents per mile after that.

Typical fixed costs per month:
Rent for one-bed apartment in city center: $440
Utilities: $68
Internet: $20

Visa requirements

Retiring in Thailand is not so difficult either, as the country offers a one-year retirement visa for those age 50 and older, which is renewable every year in Thailand. You will have to report to the immigration department every 90 days. According to the Thai Embassy website, applicants must:

Be 50 or older.
Have no criminal record in Thailand or the country where you are applying.
Apply in your country of nationality or residence.
Not have prohibited diseases, including tuberculosis or drug addiction.
Have monthly income of 65,000 baht ($1,984 at the time of writing) per month, or a Thai bank account with a minimum deposit of 800,000 baht ($24,420 at the time of writing) in savings.

2. Bolivia

Although not the most fashionable country in South America, Bolivia is a great retirement option for outdoor lovers. From the Amazon rain forest to the Andes Mountains, there's an abundance of beautiful landscapes to explore. It's also one of the most affordable countries in South America.

Cost of living

The cheapest place to buy fresh produce is from the local markets throughout the country, but there are also many supermarkets with wider selections of international goods. As of this writing, Numbeo lists the average price of a loaf of bread as $1.10, a dozen eggs as $1.40, and a pound of rice as 50 cents. Splashing out on a three-course meal for two at a midrange restaurant will cost $16.

Transport systems in Bolivia are not the most advanced, but there are good public bus networks and inexpensive taxi services in most areas. According to Numbeo, the average cost of a one way bus fare is about 30 cents, and the starting fare for a taxi is $1.15 with $1.85 added for each mile.

Typical fixed costs per month:
Rent for one-bed apartment in city center: $274
Utilities: $46
Internet: $68

Visa requirements

To retire in Bolivia, you’ll need to first apply for a specific purpose visa (visa de objeto determinado, in Spanish) with the Bolivian consulate in your country. The specific purpose visa is a travel visa that allows you to be in Bolivia for 30 days. During these 30 days you must begin your application for residency. One of the main requirements for retirees is proof that you can support yourself financially while living in Bolivia. You’ll usually be required to submit six months’ worth of recent bank statements. You’ll also need to get a police clearance.

Once you've turned in your residency application and have completed all the requirements for residency, you can remain in Bolivia until the government either accepts or rejects your application. During this time you will get a document that shows your residency application is "en trámite" (being processed).

The application process for residency in Bolivia is not complicated, but requires a fair amount of running around to different institutions. Still, the cost of living is so low here that it’s worth the effort to apply.

3. Nicaragua

Central America's largest country has become a popular destination for retirees in recent years. The scenery is dramatic and lush, with numerous volcanoes peppering the countryside, verdant rain forest covering large portions, and coastal areas lined with white sand beaches.

Cost of living

Between the markets and the major supermarkets, one of which is owned by Walmart, it's possible to get virtually everything you're used to in the U.S. The average price, according to Numbeo, for a loaf of bread is about $1.50, a dozen eggs run about $1.75, and a pound of rice 54 cents. A three-course meal for two at a midrange restaurant will run you $23.

Buses, taxis, and mototaxis are the most popular and inexpensive forms of transportation, with many of the buses being the familiar old yellow school buses imported from the U.S. Numbeo lists the average fare as just 50 cents, while the starting tariff for taxis is 67 cents. Each mile after that costs $1.38.

Typical fixed costs per month:
Rent for one-bed apartment in city center: $318
Utilities: $72
Internet: $67

Visa requirements

Nicaragua’s Law of Resident Pensioners and Retirees gives tax incentives to encourage foreign retirees to move to the country, and makes it relatively easy to obtain a residency.

To qualify, you’ll need to be at least 45 (or married to someone who is 45 or older). You’ll also need to prove you’re healthy (both mentally and physically), you have a clean criminal record and that you earn at least $600 a month from Social Security or another income source.

4. Malaysia

Year-round warm temperatures, stunning beaches, and diverse, bustling cities make Malaysia a great choice for people on the lookout for top spots to retire. Thanks to English being spoken by virtually everyone, it's an easy place to get by without learning a new language.

Cost of living

Though it's easy to get your hands on international branded goods, local produce is far cheaper and of good quality. The average price for a loaf of bread is 70 cents, a dozen eggs will cost you about $1.25, and a pound of rice is available for 45 cents, according to Numbeo. Eating out is a particular pleasure is Malaysia, thanks to the unique fusion of cuisines found here. It's also cheap at just $12 for a three-course meal for two at a midrange restaurant.

Kuala Lumpur, the capital, is well connected by trains and buses, while the rest of the country is serviced by good bus networks. The average price of a one way train fare is 60 cents, and taxis are also a price-effective option, with starting tariffs of 72 cents and a per-mile cost of just 78 cents.

Typical fixed costs per month:
Rent for one-bed apartment in city center: $348
Utilities: $45
Internet: $39

Visa requirements

Retiring in this modern Asian country is surprisingly easy with its MM2H or Malaysia My Second Home program, a 10-year renewable visa. When applying, you must show that you have a regular monthly income of 10,000 Malaysian ringgit ($2,420 as of this writing) and liquid assets of at least RM350,000 ($84,700 as of this writing). You’ll also need to get a medical exam in Malaysia, and show proof that you have medical insurance and no criminal record.

Once approved, you’ll need to either keep a fixed deposit of RM150,000 ($36,300 as of this writing) or prove that you receive Social Security payments of RM10,000 a month ($2,420 as of this writing). After a year, if you have a fixed deposit, you can withdraw RM50,000 ($12,100 as of this writing) from it for approved expenses related to buying a home or car, paying medical bills, or covering your children’s education in Malaysia.

5. Georgia

No, we're not talking about the state tucked down in the southeast U.S., but a tiny nation that lies on the edges of both Europe and Asia. Though it's little known, Georgia is growing in popularity, especially among retirees, thanks to its beautiful countryside and extremely low living costs.

The city of Tbilisi is, in my opinion, one of the more charming cities in Europe and makes for the ideal place to live. Beautiful cobblestoned streets maze their way through ancient churches and old stone buildings, all spilling down the hillside toward the lovely Kura River. Historic pubs place tables on the streets, the wine is fantastic, and both ancient and modern life and architecture are brought together in the city.

Cost of living

Georgia is known for its abundance of fresh produce, as well as reputedly being the birthplace of wine. Both are extremely cheap in this country, as are most groceries. A loaf of bread is about 30 cents, a dozen eggs come in at about $1.40, and a pound of rice at 40 cents. Eating out is also reasonable at $20 for a three-course meal for two at a midrange restaurant.

Transport in the capital Tbilisi is excellent, with a metro system as well as good bus links and cost-effective taxis. Elsewhere in the country, buses and trains are easy to use. The average fare is just 20 cents, and taxis start at around $1.20, with it costing 35 cents per mile after that.

Typical fixed costs per month:
Rent for one-bed apartment city center: $303
Utilities: $50
Internet: $12.74

Visa requirements

Georgia grants visitors incentives to invest and retire in the country. Citizens of the US and 49 other countries can enter Georgia and stay visa-free for one year. This is a good way that would-be retirees to sample the country before committing to full retirement.

If you do decide to retire in Georgia, you may want to opt for an investment visa. You’ll have to invest 300,000 GEL (around $117,000 at the time of writing) in order to apply for the visa, but once you have it you can remain in Georgia full time and enjoy the lower tax benefits of this relatively free economy. (See also: Retire for Half the Cost in These 5 Countries)

This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways You Can Cut Costs Right Before You Retire

Dan Rafter — Tue, 04 Jul 2017 08:00:10 +0000

Worried about covering your daily living expenses in retirement? You're far from alone. A study released late last year by the Transamerica Center for Retirement Studies found that only a small percentage of U.S. workers are "very confident" about being able to fully retire with a comfortable lifestyle.

If you have some doubts about how you're going to fund your retirement years, there are some steps you can take now, in the years leading up to your retirement, to prepare yourself financially for the day in which you leave the workforce. By reducing these expenses before you retire, you'll give yourself the chance to boost your retirement savings in the last few years before you leave the working world.

You'll also take an important first step toward setting up a post-retirement lifestyle that might, depending upon how much you've saved, require you to cut back on many of the expenses you take for granted today.

1. Housing

The cost of housing, of course, is the biggest financial burden that most people face. Bringing a mortgage with you into retirement can cause plenty of financial stress each month. But even if you are no longer paying off a mortgage, the cost of maintaining a large single-family home can be high.

If you still have a mortgage, it might make sense to pay it off before you leave the working world. If you can't afford to do that, you might consider selling your home. If you have enough equity in your residence, you might be able to use the profits to buy a downsized residence — maybe a condo unit — in cash.

If you've already paid off your mortgage, you'll have more flexibility. If your home requires too much maintenance, or if your property taxes and homeowners insurance are too high, you can sell and move into a smaller residence that requires less maintenance or a condo building that comes with far lower property taxes.

You'll no longer need to worry about living in a higher-taxed area with better public schools, so finding a residence with lower annual property taxes shouldn't be too much of a struggle. And if you purchase a smaller home or condo, your annual homeowners insurance bill won't be as high.

2. Insurance

Now might be a good time to review how much you are spending each year on your insurance.

First, if you no longer have any dependents who'd need financial help after you die, you can drop any life insurance coverage you might still have. That can immediately save you a significant sum of money each year.

You'll no longer need disability insurance, either, after you leave the workforce. Don't drop disability before you retire, but do figure that the cost of this insurance will disappear once you stop working.

You might also look at the deductibles you've set up for your auto and homeowners insurance policies. It makes sense to set your deductibles low when you are working. If you have a deductible of $250 for your auto insurance policy, for instance, you'll have to pay for the first $250 in costs after an accident while your auto insurer will cover anything after that.

But lower deductibles increase the amount you pay in insurance premiums. When you raise your deductibles, you'll pay less for your auto and homeowners' insurance policies. By the time you reach your retirement age, you might have enough saved to cover these higher deductibles, and moving to lower payments for your insurance policies might help you cover your daily living expenses.

3. Credit card debt

One of the biggest burdens on your retirement could be credit card debt. This debt comes with high interest rates — as high as 20 percent or more in some cases — and can grow quickly. If you carry a balance on your cards from month to month, you'll be stuck paying that minimum required monthly payment every time your credit card bills come due.

If you have a lot of credit card debt, it's important to pay off as much as possible as you approach retirement. You can do this using one of three tested approaches: the debt snowball, debt avalanche, or debt snowflake method.

In the snowball method, you list your credit card debts from smallest to largest. You then take any extra money you have and focus on paying off the smallest bill first. Once you've paid off that bill, you'll move on to your next smallest credit card bill and pay that one off.

In the avalanche method, you organize your credit card bills by interest rate, from high to low. You then use any extra money to pay off the card with the highest interest rate as quickly as possible. Once you pay off that card, you then move to the card with the next highest rate.

If if you find yourself struggling to come up with large debt payments, the snowflake method may work well for you. In this strategy, you'll look for ways to shave dollars off of everyday expenses, such as groceries or gas. You'll then use those savings to make small but frequent payments on your credit card debt. Every little bit helps.

4. Your cars

Cars are expensive. Not only do you have to pay for their upkeep and gas, but you also need to insure them. Going from two cars to one or downgrading to a less expensive car can help you dramatically reduce your daily living expenses.

If you can swing it, going from two cars to one will reduce the amount you pay each year in auto insurance. But maybe you can't do this while you are still working. If not, you can still downgrade from a more expensive car to one with lower monthly payments and lower insurance costs.

Consider this carefully, though. If you've paid off your car, it probably makes more sense to live with it for as long as you can. That way, you won't have to worry about monthly car payments. If you are still making payments on it, though, downgrading to a nice but less costly vehicle might be a good way to reduce your daily living expenses even while you're still working.

5. Dining out

The Bureau of Labor Statistics reported that in 2015, the average U.S. household spent $3,008 on restaurant meals and take-out food. This should inspire you to look at how much money you spend each month on eating out.

It's not that you should never eat out. But if you are worried about covering your daily living expenses once you retire, reducing the number of times you dine out at a restaurant is one monthly expense that you can easily control.

Instead of eating out whenever you'd like, try budgeting each month for a certain number of restaurant meals. Then don't break that budget. Doing this before you retire will help build your discipline for the days in which you are no longer working.

6. Entertainment

Going to the movies instead of streaming one at home. Taking several vacations a year. The most expensive cable subscription with the most channels. All that entertainment adds up. You can significantly reduce your expenses before retirement by spending less on entertaining yourself.

You might think you're depriving yourself, but streaming a movie can be just as much fun as going to the theater, and it can save you plenty of dollars. You can even rent movies for free from your local library or through the online rental services that many public libraries now feature. Why not take a break from that big expensive trip for the next few years and take smaller weekend jaunts instead? You can then save the money you would have spent so that you have more to spend in your retirement years.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Smart Money Challenges You Can Totally Do

Paul Michael — Mon, 03 Jul 2017 08:00:08 +0000

Are you up for a money challenge? How about several?

Make no mistake, some of the savings challenges below are tough. Some may even drive you a little bonkers. But they are all achievable if you put your mind to it, and can leave you with more money for your financial goals — in some cases, considerably more. They may even leave you healthier and happier.

So, if you think you have what it takes, here are seven money challenges. Which ones will you take on?

1. Use thrift stores whenever possible

Of course, there are necessities you can't get at a thrift store, like groceries. But for clothing, household items, electronics, and a whole host of other products, thrift stores are a gold mine.

Thrift store clothing is usually in excellent condition, and sold for a fraction of the price you'd pay at a retail store. Simply pop the garment in the wash when you get home, or get it dry cleaned, and you're good to go. Thrift stores also have special offer days — Goodwill runs 99-cent tag days every week. You can actually pick up a winter coat, a great watch, or a coffee maker for less than a buck. Do this challenge for one year, and see how much you save.

2. Do the 52-week savings plan

Often known as the "52-week money challenge" or "a dollar extra every week," the plan eases you into saving a substantial sum of money over the course of one year. It's simple enough, and very easy to stick to, at least at first.

In January, at the end of week one, you'll put $1 into your savings account (or jar). At the end of week two, you pop in $2. Week three, $3. And so on for the whole year. By the time you reach the end of December, you'll have saved almost $1,400.

The only drawback to this plan is that the amounts get larger and larger as the year goes on, and they're the most expensive during the December holidays. But stick with it, and you'll have a nice chunk of money to celebrate with. Even if you bail at the end of November, you'll have collected over $1,100. That could pay for a lot of those gifts and special events.

3. Cancel Amazon Prime

Look, we all know how good Amazon Prime is: free two-day shipping, a massive library of free movies and TV shows, and some great prices on thousands of items. But, and this is a big but, for some people it can become addictive. Having instant (or almost instant) gratification is incredibly satisfying. Admit it, how many times have you casually hit the "Buy now with 1-Click" button when you saw something you liked?

The website and app are designed to make impulse buying easier. One woman recently documented how she spent over $41,000 on Amazon Prime from 2008 to 2016. In 2015, she bought 427 items — more than there are days in a year. And not only did she find it very easy to do, she was at a loss as to what most of these items were.

So if you feel like you are too often tempted by Amazon Prime, then try giving it a miss for a while. See how much you save. You may find it is a temptation that sucks money away from you.

4. Stop eating out, and no more fast food

According to the Bureau of Labor Statistics, in 2015, the average American family spent over $3,000 on takeout and dining out. That's $250 every month!

That same year, the average family spent just $4,015 on groceries. And the gap between those figures continues to narrow. As a nation, we're addicted to quick and easy meals and it's really hurting our wallets.

So, make a pledge right now to give it up for a month or two. No more restaurants. No more quick stops at the drive-thru. For at least two months, give up the notion of getting food from anywhere but your own home. Bring lunches to work. Pack lunches for the kids. Plan meals for every night of the week, and get creative with leftovers. You will miss the quick fix and the ease of eating out, but you will save hundreds of dollars. Furthermore, you will not be eating all those preservatives, fats, and chemicals that come with fast food. You'll be healthier and richer.

5. Do your shopping on just one day of the week

When I was growing up, Friday was grocery shopping day. My parents would take us all to the local supermarket with a list of things to buy, and that's what we bought. That would have to last us for the week, and there were no exceptions. If we ran out of fruit or cereal, we'd find substitutions. If we wanted candy or soda, and we ate what we had by Tuesday, then we had to wait to get more.

This taught my sister and I that we had to ration what we had, and that we could not simply rely on an endless supply of whatever we wanted. Plus, every time you pop into a grocery store, even if it's just for bread or milk, you inevitably get caught up in special offers and eye-catching deals, and come back with more than you need. So, set a day of the week to shop, even if it's done via a home delivery service, and stick with it. What's more, this challenge makes it much easier to budget for the month.

6. Spend one month haggling over as much as you can

This one is tough for people who don't like confrontations or talking to customer service. However, if you persevere, you will come out of it saving a whole lot of money.

Spend the first week haggling with every service provider you have. Your cable, internet, and phone providers have something called a customer retention department. Their role is simply to keep you as a customer, and they have some significant discounts to offer just to keep you on board. All you have to do is call and say you want to cancel, and you will be offered rebates and lower rates almost immediately.

Next, hit up your credit card and banking providers. Can they lower your interest rates?

After that, start haggling in stores. If you go grocery shopping in the evening, you will be able to make the manager some offers on food that is about to expire. Sometimes, perfectly good food destined for the garbage can be acquired for pennies on the dollar.

Be brave. Aim high, and if you get nothing, guess what? You've lost nothing. But chances are, you'll come out on top most of the time.

7. Clear out the pantry and fridge once a month

Take a look in your fridge, freezer, and pantry when you finish reading this article. You will probably be amazed at what you find in there. For a start, many of the items at the back of the pantry and fridge will be expired. That is cash in the trash. You will also find things you completely forgot you bought, and perhaps a few items that should never have been in there in the first place.

Sort through everything and then stick to using up everything in the pantry and fridge for one week. Don't go to the store. Don't eat out. Get creative! You will come up with all sorts of weird food concoctions, but that's half the fun. You can also search recipe sites, input what ingredients you have available, and receive recipe suggestions that use those ingredients. Some people do this religiously, and it leaves them with a well-organized kitchen and very little food waste each month.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 College Expenses You Aren't Saving For

Mikey Rox — Tue, 11 Apr 2017 08:00:16 +0000

Worried that tuition and room and board will bleed you dry when your kid goes off to college? Pfft. Wait till you get a load of all the expenses you didn't account for! You'll want to sit down for this.

1. College prep items

You'll want to send your kid off to college well prepared — with things. Things like study and work supplies, dorm room necessities, snack foods, toiletries, a new computer, maybe a new phone. It's amazing how easily items pile up when you're shopping for college.

2. Traveling home and back

No loving parent can go too long without seeing their kid — especially their freshman year in college. So, you'll need to account for travel costs to get your child back and forth to your home if they attend a school that requires more than a few hours' travel.

"Create a travel budget by researching typical costs for airfare, train, or bus, whichever mode of transportation is available to you, and estimate the number of times your child will head home throughout the year," suggests money-saving expert Andrea Woroch. "If they have a car and are driving [a long] distance away from home, propose that they carpool to save on gas and tolls if applicable."

They can also use a site like Zimride, which will connect them with other college students looking to share a ride.

3. Local transportation costs

If your child has a car on campus, you're looking at the cost of a parking pass plus insurance and gas. If they don't have a car, you'll need to consider a new bike and investigate the cost of public transportation passes. These costs can add up, as well. College students don't tend to be holed up in their tiny dorm rooms while not in class.

4. Food outside the meal plan

College meal plans are expensive enough by themselves, but don't count on those being your child's only source of food. Many campus dining halls close earlier than you probably think, and late night study sessions require energy. Plan on having to send them some extra dollars for groceries, snacks, and late-night diner runs.

5. Greek life

I was interested in joining a fraternity when I went to college. It signified the quintessential coming-of-age experience to me, and I liked the idea of having "brothers," as I wasn't close with my own growing up.

Nice sentiment, but it got expensive real quick.

My dues were about $400 per semester, I wanted to buy new clothes every time we had a formal or theme party, and if something went wrong in the house — like the one time a drunk alumni brother smashed up our soda machine — we had to collectively cover the cost. By the end of four years, I had spent thousands of dollars to be part of this exclusive club — which, in hindsight, was worth every penny considering the memories I made. So, I guess what I'm saying here is … grab your checkbook.

6. Sports and extracurriculars

If you're the parent of a child whose athletic skills have earned them a college scholarship, congrats; consider yourself lucky. On the other hand, if your child is perfectly average but still wants to play sports or join extracurriculars, you'll need to cough up the cash.

"Sometimes participating in extracurricular activities on campus can cost extra money," says Johan Zhang, co-founder of CollegeVine. "Whether it's paying for club dues, schoolwide participation fees, or even apparel, at many colleges there exists a hidden cost to joining and being an active member in extracurricular activities.."

Be sure to consider this and save up in advance.

7. Your trips to see your child

Bringing your kid home is going to cost you, and so is traveling to visit your child. You may also want to attend things like orientation weekend, parents' weekend, and other events hosted by the college. You'll need to factor in transportation, lodging, and food, so budget wisely.

8. Off-campus living

Eventually your kid will outgrow the dorm and want to live off-campus. This usually happens around junior year, but sometimes you can hold it off until senior year. With that comes the expense of monthly rent, renter's insurance, furniture, utility bills, and a security deposit that you're never going to see again. Make amends with that right now; it's already spent.

9. The extended plan

Listen, I'm rooting for you to get your kid in and out of college in four years, but, well... the odds aren't in your favor.

"At most public universities, over 80 percent of students will take more than four years to graduate due to overcrowded or unavailable classes," say Adrian Ridner, CEO and co-founder of Study.com. "That means if you are planning on four years of college expenses, you could be under budgeting by 25 percent to 50 percent. Taking low cost college courses online can be a great way to stay on track and graduate on time. Another factor that can extend your child's time in school is lack of college readiness. This may mean completing remedial courses that do not count toward graduation."

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Almost Anyone Can Afford to Retire in Mexico

Amanda Gokee — Fri, 10 Feb 2017 10:30:38 +0000

If you're thinking about retirement, you're not alone. However, out of 100 Americans who start working at age 25, only 4% are expected to have saved enough for retirement at age 65.

While this number may seem surprisingly low, retiring doesn't have to be as expensive as you may think. If you can lower your monthly income requirement, you can also greatly reduce the total capital that you need to save to retire.

One easy way to do this: retire abroad. For many Americans, Mexico is a top choice. It's not only geographically close, it's also very affordable. Adventure seekers love its bustling cities full of colonial architecture and rich culture, as well as the natural beauty found along its coastlines and highlands. (See also: Retire for Half the Cost in These 5 Countries)

If you're worried you might be among the 96% of people who haven't saved enough for retirement, moving to Mexico may be an effective way to make your nest egg go further.

Cost of Living in Mexico

The cost of living is drastically lower than in the U.S. or in Canada. According to Numbeo, the cost of living in Mexico is nearly 60% lower than the United States, with rent costing 79% less.

However, keep in mind that those are costs averaged over the entire country. Expenses are higher in bigger cities such as the capital, and in places that attract a lot of foreigners, such as Playa del Carmen.

Rental Costs

Based on my experience living in Mexico City and traveling extensively through the country during 2015 and 2016, I have found rents to be far lower than the U.S. You can find a place for as low as $100 a month in off-the-beaten-track destinations, such as the small beach town of Mazunte. However, a great deal like this often means sacrificing on some of the comforts of home such as air conditioning and hot water.

On the upper end of the budget, if you're willing to spend $600–$1,000, you can rent a luxury apartment, even in the more expensive and cosmopolitan destinations.

Health Insurance Costs

Private health insurance is significantly cheaper in Mexico than in the states. It can cost you as little as 20% of what it would cost in the U.S.

Because the cost of routine visits and minor incidents is so small, you may also choose to self-insure, which means simply paying for these costs out-of-pocket as opposed to purchasing an insurance plan.

Doctor Costs

As with rental prices, the cost of going to the doctor also varies to some extent, so these numbers should only serve as a rough guideline.

From my experience, a routine teeth cleaning from a dentist costs $15–$20. A regular doctor's visit costs as little as $25 to $50, while a specialist normally costs $35–$50 and up per visit.

Food Costs: Restaurants and Grocery Shopping

Groceries in Mexico are about a third of the price of food in the U.S., depending on the season and availability. You can even sometimes find American chains like Wal-Mart, where you can buy cheap groceries.

Restaurant prices vary, too, based on type. On the lower end, you can visit food stands to get snacks, which Mexicans call antojitos for as little as 50 cents to a dollar. These include tacos, quesadillas, and burritos. Freshly pressed juice and prepared fruit is also in this price range.

One step up from the food stands are restaurants called fondas. These are small, family-owned establishments that serve two- or three-course meals, including soup or salad, a full entree, and a drink. Sometimes they also come with dessert. Expect to pay $3–$10 dollars.

A truly gourmet, upscale dining experience should set you back $10–$30.

Alcohol Costs

Alcohol in Mexico is widely available, and enjoying tequila or mezcal is a common cultural practice. There are no taboos on drinking, and alcohol is accessible at the local corner store for very affordable prices.

For a bottle of tequila or mezcal you can expect to pay $10 for a low-quality bottle and up to $40 for an artisanally produced bottle of very good quality alcohol.

A six-pack of beer starts at $4–$6. There are not as many microbrew options available as in the U.S., but some bars do offer local, small-batch beer, usually priced around $4 a bottle.

Mexico is an attractive place to retire, not only because it is an affordable option, but because of all that it has to offer, from interesting cultural experiences to the hospitable locals who often go out of their way to make you feel at home.

Transport Costs

If you're traveling by plane, prices start around $250 for round-trip tickets to or from the U.S., and $40–$100 for trips within country. Long-distance coaches are an even cheaper alternative to internal flights. An eight-hour basic bus trip costs about $25, varying a bit depending on your destination. You also have the option of paying more for a first-class bus that includes drinks, snacks, entertainment (TV and music), and seats that are designed to be comfortable to sleep in.

Local transportation options include the bus (on average 50 cents) and, in Mexico City, the Metro (25 cents).

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This article is from Amanda Gokee of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Grocery Purchases That Will Be Cheaper in 2017

Damian Davila — Tue, 10 Jan 2017 10:00:13 +0000

In case you haven't noticed, 2017 is here and bringing a whole bunch of changes.

With a new president in the White House, a second hike in interest rates by the Fed since 2006, a long list of U.S. cities with higher minimum wages, and a broad range of changes coming to the states, consumers are still trying to figure out how all of these changes are going to affect them.

Cheer up, America! It looks like 2017 may also bring you some serious savings at the grocery store. The U.S. Department of Agriculture Economic Research Service keeps track of the average prices paid by urban Americans for a series of key consumer goods and services. The latest data from the USDA's Food Price Outlook is showing that you'll save on your grocery runs throughout 2017. Let's break down the six buys that will give you the most bang for your buck this year.

1. Eggs

Continuing their downward trend in prices throughout 2016, eggs are leading the forecast savings with an estimated drop of 3% to 4% in price for 2017. This means that the sightings of a dozen of eggs going for under a buck should become more common in cities across the nation. Even when adjusted for inflation, 2017 is poised to set a record for lowest price of eggs since 2000. (See also: 6 Ways to Make Perfectly Cooked Eggs)

2. Fats and Oils

Stay with me on this one; it's not as unhealthy as it sounds. In this category, the USDA goes beyond the usual suspects, such as butter and cooking oil, and includes several familiar food items, including peanut butter and salad dressing. A drop in the prices of fats and oils has a domino effect across prices in several grocery aisles.

Back in November 2016, the USDA reported that the prices of fats and oils fell 2.9% from the previous month and were down 2.4% from the previous year. For 2017, the USDA is projecting an additional 3% to 4% drop in prices for fats and oils.

3. Beef and Veal

As forecast back in our guide to cheaper buys in 2016, prices of pork products dropped 3.25% to 4.25% throughout the year, according to USDA data. In 2017, the USDA isn't expecting pork prices to drop much, if at all. However, prices of beef and veal are poised to continue to drop an extra 1% to 2% across the nation this year.

Higher production outputs of carcasses, larger supplies of beef and veal held in cold storage, and lower prices of both feeder and fed cattle are all contributing to the lower prices of beef and veal. (See also: 25 Easy Ways to Make Cheap Cuts of Meat Taste Expensive)

4. Fresh Vegetables

With all these low prices, you may be having second thoughts about your New Year's resolution to lose weight. Fear not dear dieters, 2017 is also cutting down the prices of fresh veggies to keep you on track for success. While the previous year brought very little savings, the new one is expected to reduce the prices of fresh vegetables by 2% to 3%.

When looking for fresh produce in 2017, keep in mind that the prices of fresh fruits are on the rise. The USDA is forecasting an increase of 1% to 2% in the prices of fresh fruits for 2017. Another reason to stick with fresh veggies is that the prices of processed fruits and vegetables are expected to rise up to 1% this year.

5. Avocados

Speaking of fresh fruits, the price of an avocado is one that might be an exception to the USDA forecast for 2017. If you were paying attention at the store, you may have noticed that the prices of avocados were much higher than usual. For example, some stores in California were commanding as much as $3 per avocado. The same thing was taking place across several grocers here in Hawaii.

The culprit for these high prices was the interruption in harvesting caused by disputes between avocado growers and packers in Mexico. The disagreements resulted in a dramatic drop of exported Mexican avocados to the U.S. from a projected 40 million pounds to just 13.7 million in October 2016. Fortunately, an agreement was reached in November 2016 and Mexican harvesting of avocados is now back to normal. As more and more millions of Mexican avocados enter the market in the next couple of weeks, the prices of the green fruit are expected to drop.

Given the expected lower prices of avocado for 2017, you could start taking better advantage of all of the different uses of this nutrient-rich fruit. (See also: 6 Unexpected Uses for Avocados)

6. Whole Foods Products

Yes, there are actually buys that are cheaper at Whole Foods than most major food chains. And to continue to meet the high expectations of its shareholders, Whole Foods is rolling out two key initiatives in 2017 that will drive down the prices of many of its products.

First, Whole Foods has been offering its 365 Everyday Value brand at its regular stores for quite some time. Given that many of the products under the 365 brand are cheaper than those at major grocers, Whole Foods decided to open 365 by Whole Foods Market stores that only sell those products. Currently, there are only three 365 stores (Los Angeles, California; Lake Oswego, Oregon; and Bellevue, Washington), but there are 16 more scheduled to open in 2017 and beyond.

Second, Whole Foods has introduced a rewards program across 24 regular stores across New Jersey, Pennsylvania, and Texas. The rewards program offers a 10% discount on the first purchase and additional discounts as you continue to shop using the program. Also, all 365 by Whole Foods Market stores automatically participate in a separate rewards program that offers an instant 10% off on close to 120 items per week.

The Bottom Line: Eat at Home More Often in 2017

In 2017, it will be cheaper for you to eat in than to eat out. The USDA is expecting prices of food away from home to increase from 2% to 3%, while those of food at home to only increase from 0.5% to 1.5%. Shop smart and prep more home meals and you'll be able to pocket some extra cash this 2017.

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Stay on Budget While Eating Paleo

Philip Brewer — Mon, 31 Oct 2016 09:30:20 +0000

Let's admit this upfront: It is calorically impossible to eat paleo as cheaply as you can eat a frugal version of the standard American diet. It's a simple fact that non-paleo foods like grains, potatoes, and legumes are vastly cheaper per calorie than the meat and fresh veggies that one associates with paleo eating.

But here's the thing: Nobody living in a rich country has any trouble getting enough calories. What's in desperately short supply are things like flavor, nutrition, and variety. A paleo-style diet gives you those things, and can do so at quite a frugal price, if you're prepared to be strategic about it.

Wise Bread writer Max Wong offers a list of 20 Ways to Eat Paleo for Super Cheap, and that's an excellent place to go for some specific tips. What I want to offer is a model for thinking about how to design a diet that's nutritious, paleo, and frugal.

Why Paleo?

Let's start with why you're eating paleo, which I'm going to speculate is for health benefits. I'm guessing that because you're calling it paleo (or primal or ancestral). If you had more social, environmental, or political motivations you'd probably use other terms — whole food, slow food, locavore.

It almost doesn't matter what you call it, because all these terms refer to ways of eating that solve the same problem: It's unhealthy to build your diet around eating large quantities of a small number of foods that mechanized farming and government subsidies have made super cheap.

Half the problem is that industrial agriculture tends to produce foods that are cheap, but less nutritious.

The other half is that those cheap foods are processed into ingredients for the industrial production of edible foodlike substances that are all the same. They may seem different from one another, but when you dig down, they're really all just sugar, fat, and starch from corn, soybeans, wheat, and potatoes. (Plus a little salt.)

And that sameness is the biggest problem, even bigger than the individual foods having lower quantities of important nutrients. We know from the historic and prehistoric record of agricultural people all over the world that it is possible for agricultural people to eat a healthy diet. But when agricultural people end up eating large quantities of just a few things, their skeletons show signs (such as stunted growth) of ill health. This brings us to rule one.

Rule One: Eat a Wide Variety of Nutritious Foods

Paleolithic people got variety automatically. It was a different kind of variety than modern people think of. We think of eating a wide variety of foods every day (because that's easy if you have a supermarket). Paleolithic people, on the other hand, ate a wide variety of foods every year — but many days they probably ate a whole lot of the same thing. On a day that they killed a large animal, it's likely everybody ate mostly meat. On a day that some kind of fruit was ripe, everybody ate mostly fruit. On a day that someone found a patch of tubers, I bet everybody ate a lot of tubers.

It turns out that's okay. Eat a wide variety of foods every year, and your body can handle a few days now and then when you eat a whole lot of the same thing. (It probably helps if there are also days when you can't find a lot of anything, and end up trying to fill your stomach with tiny amounts of a dozen different things scrounged up wherever you can find them.)

Nutritious foods are easy: just eat food, and not industrially produced edible foodlike substances. Yes, you can upgrade to organic (or local, or free-range, or pasture-raised), but just eating food gets you most of the way there.

Wide variety is trickier for us non-paleo people, because we do have a supermarket, so we have the option of just eating our favorite foods every day.

The rule "eat food" turns out to be a great guide to getting nutritious foods. My efforts to come up with a similar rule to guide us to getting a wide variety have not yet produced anything as simple or pithy. The best I've come up with so far is based on the fact the reason Paleolithic people got their wide variety was seasonality.

Rule Two: Respect Seasonality

Seasonality provides two great clues for anyone who wants to eat paleo on the cheap, but who is getting most food from the supermarket:

If it's always cheap regardless of season, eat it rarely.
If it's only cheap during a season, eat it in large quantities while it's cheap.

Taken together, these two rules solve most of the problems with the standard American diet. By rarely eating the stuff that's cheap all the time, you avoid the things that Paleolithic people rarely ate. By eating the good stuff in quantity when it's cheap, you get the wide variety you need without breaking your budget.

Finally, if you want to keep your overall diet under budget, we also need rule three.

Rule Three: Reject No Foods

Paleo is often described in terms of what not to eat, such as no legumes and no grains. But that's crazy. We know Paleolithic people ate both grains and legumes. (How do we know this? Because neolithic people domesticated both grains and legumes, and there's no way they'd have done that if they weren't already eating tasty peas and seeds of ancient grasses when they found them in the wild.)

Dairy is a special case. Paleo people probably never had access to milk, but lactose tolerance has evolved in humans at least twice (once in Europe and once in Africa). If you're descended from either of those populations, go ahead and consider that dairy may be a healthy food for you.

Of course, if you know that grains, or lentils, or dairy, or potatoes cause problems for you, then don't eat whatever it is. But, if you don't have specific issues with this or that particular food, go ahead and include it among the great variety of things you eat. Just don't turn foods like that into a major source of calories — or if you do, only make them a major source of calories for a few days, a few times a year.

What About Those Calories?

As I said earlier, it is calorically impossible to eat paleo as cheaply as eating a grain, potato, and legume diet. However, you didn't decide to eat a paleo diet because you thought it would be cheaper; you decided to eat it because you thought it would be healthier. If you have implicitly accepted the idea that it's going to cost more, the issue is how much more? And that brings us back to the title of this post. It's called "How to Stay on Budget While Eating Paleo," because the budget is the key.

Of course answering the question "How to eat paleo on a budget" with "Make sure the budget is big enough," is not what Wise Bread is all about, and that's why I started with rule one above. Following that rule, more than following anyone's fantasy rules about what Paleolithic people ate, is what's going to give you your best chance at good health.

Having said that, let me point you again to Max Wong's article, which is packed with ideas for getting paleo food for less. There are the obvious ways: gardening, fishing, gathering, gleaning, bartering, etc. There are the adventurous ways: eating organ meats, insects, or even roadkill. (See "snout to tail" cooking and eating.) There are the leftist ways, like joining a CSA, and the right-wing ways, like hunting your own meat. There are the simple ways, like buying more eggs, and the complicated ways, like raising chickens for your own eggs.

Even if you do all those things, it remains true that getting most of your calories from grains and legumes is going to be cheaper than any alternative. I actually have a post Healthy, Frugal Eating that walks you through creating a menu on that basis — but note that even it starts with vegetables.

If switching to paleo eating means skipping most of the grains and legumes, where do you get your calories? First, by eating even more fresh vegetables. Second by eating plenty of meat and nuts.

"But all those things are expensive!" you are no doubt saying, and yes, on a per-calorie basis, they are, and that's what your budget is for. You will get enough calories either way. How much money you're willing to spend will have a great influence on what form those calories take.

Following rule two (eat large amounts of whatever is cheap when it's in season) costs nothing and does not compromise your efforts to go paleo. You can get a bunch of cheap calories that way, and the seasonal variety comes along for free.

Once you're eating paleo, following rule three (allow limited quantities of less paleo foods) lets you upgrade the quality of your more paleo foods without seriously compromising the paleo-nature of your overall diet. A meal where you get half your protein from a legume might save enough money to upgrade the meat that provides the other half of your protein: grass-fed, pasture-raised, local, organic, or whatever upgrade means the most to you.

Paleolithic people followed rule one — eat a wide variety of nutritious foods — automatically. You're at a disadvantage — you have a supermarket — so it's less automatic for you, but you can follow rule one as well. If you do, you can eat paleo on a budget.

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This article is from Philip Brewer of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Things Americans Spend Too Much On

Mikey Rox — Wed, 26 Oct 2016 09:00:11 +0000

We're all guilty of spending too much money at some point or another. Even when we know the importance of a good budget and have a regular savings routine, we can get off track. Because Americans are big spenders in general, it should come as no surprise that we spend way too much on stuff we don't need — and, interestingly, stuff we do need.

Whether you realize it or not, here are five things you're probably spending too much on.

1. Groceries

We need food for survival, and because food is a necessity, some people never think to calculate how much they actually spend on food on a yearly basis. They don't know if they're spending too much.

There are no hard and fast rules regarding how much we should spend on food every year. But considering how a trip to the grocery store can be just as tempting as walking through a clothing store, there's a good chance that we're spending more than we need.

According to the Bureau of Labor Statistics, a family earning $69,629 in 2015 spent an average of $7,023 on food (includes food at home and away from home), which comes to about $585 a month. The cost of food periodically increases, so we can expect slight increases in our grocery bill. But there are plenty of ways to shave down this number and save.

Clipping coupons, signing up for grocery store loyalty cards, and resisting the urge to stock our carts with stuff we don't need — such as unhealthy snacks — can result in big savings. And if we limit the amount of times we dine out every month, the savings increase.

If you reduce your grocery bill by as little as $20 a week, that's a savings of $1,000 a year. Buying less also makes sense considering how "a four-person family loses about $1,500 a year on wasted food," according to the National Resources Defense Council.

2. Bottled Water

If you're looking for ways to save on groceries, you can start by cutting bottled water from your grocery list. Bottled water has become a necessity in many U.S. households, with many people preferring this over tap water for various reasons. Some people don't trust their city's water supply and others simply enjoy the taste of bottled water.

But our love affair with bottled water is costly. On average, Americans spend about $11.8 billion on bottled water every year, and the average person in American consumes 167 plastic water bottles annually. Given the average cost of $1.45 per bottle, that's $242 a year per person, which is expensive considering how we can purchase a reusable water filter for $30 or $40.

3. Coffee

If you broke the habit of buying coffee every day, you probably think you're saving money — and maybe you are. Brewing your own coffee at home is supposed to save, yet a new study found that Americans are spending more on coffee than ever before, despite drinking less due to single-serve coffee machines.

It's predicted that Americans will spend $13.6 billion on coffee in 2016, which is up from the expected $12.8 billion in 2015. This is primarily due to the fact that more Americans are drinking single-serve cups and paying a premium for this convenience. Using K-cups can cost up to five times more than using a coffee pot. Fortunately, there are ways to save like purchasing a reusable filter for Keurigs and other single-serve coffee pots, as well as skipping the grocery store and buying K-cups from discount stores or online from Amazon and eBay.

4. Housing

Once you're ready to buy a house, you'll seek a property that offers everything you're looking for and more. But getting everything you want comes at a price, and unfortunately, some people buy more house than they can afford.

A competent mortgage lender won't approve a loan for more than you can afford. But if you have excellent credit, some lenders are flexible and they'll allow you to spend a greater percentage of your gross income on housing. But just because you're approved for a particular loan amount doesn't mean you should spend your max.

Whether you're renting or buying, keeping house payments below your means creates more disposable income that can go toward saving a rainy-day fund or paying off debt. According to a 2014 report, millions of Americans spend too much of their monthly incomes on housing — more than 30% of their income. Ideally, house payments should be no more than 28% of your gross income.

5. Weddings

Weddings are a special day. If you stay together forever, this can become one of the best days of your life. But just because weddings are a memorable event doesn't mean you should wipe out your savings or go into debt.

In 2015, the average cost of a wedding increased to $32,641. Some people could argue this is a reasonable amount. But given how nearly one in two marriages in the U.S. ends in divorce, spending this type of cash is a waste of money.

Even if a marriage never crumbles, $32,000 is too much to spend on a day that's only the beginning of your journey together. Rather than begin a marriage in debt or wipe out your savings account, plan an inexpensive ceremony and put the majority of the money toward a home purchase or save it for the future.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: