spending http://www.wisebread.com/taxonomy/term/247/all en-US The Financial Perks of Being in Your 20s http://www.wisebread.com/the-financial-perks-of-being-in-your-20s <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-financial-perks-of-being-in-your-20s" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young_woman_cash_840782788.jpg" alt="Woman making it rain with cash" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Being young is supposed to be awful these days. Jobs for new graduates pay a pittance, the cost of housing is high, and you are drowning in a vast ocean of student loan debt. With such daunting financial challenges on your plate, how are young people ever supposed to get ahead?</p> <p>Cheer up! Despite all the negative news, things aren't so bad for people in their 20s. You've got flexibility, perks, and time on your side. Here's why being young isn't so bad from a financial standpoint. (See also: <a href="http://www.wisebread.com/the-6-biggest-financial-decisions-in-your-20s?ref=seealso" target="_blank">The 6 Biggest Financial Decisions in Your 20s</a>)</p> <h2>Your expenses are low</h2> <p>While it's true that young people may be saddled with student loans, and the cost of housing may be high in places where they are seeking work, people in their 20s can generally afford to get by without big budgets. You are less likely to have children at this stage of your life, which means a smaller food budget and no expenses related to child care or schooling. You can be comfortable in a smaller living space, perhaps with roommates who will share the rent burden. If you need a car, you can probably get by with a subcompact with great fuel mileage and low maintenance costs.</p> <h2>Your investments have time to grow</h2> <p>When you invest for retirement, time is your greatest ally. The earlier you start, the more time your investments have to grow. If you are in your 20s, you may have as many as 40 years to contribute to a retirement plan, and you'll see the enormous power of compounding gains. There are undoubtedly people in their 40s and 50s who look back on their life and wish they had saved more money at a younger age. If you are under age 30, relish the opportunity to invest aggressively now and see a huge stockpile of cash later. (See also: <a href="http://www.wisebread.com/7-personal-finance-milestones-every-20-and-30-year-old-should-hit?ref=seealso" target="_blank">7 Personal Finance Milestones Every 20 and 30 Year Old Should Hit</a>)</p> <h2>You can stay on your parents' health insurance</h2> <p>One of the more popular provisions in the Affordable Care Act allows a person to remain on their parents' health care plan until they turn 26. This is a huge benefit to young people who may still be in school or dealing with unsteady employment at first. If you are 25 or under and on your parents' plan, you may be able to save more than $200 in monthly premiums.</p> <h2>If you pay for health insurance, it can be cheap</h2> <p>Even if you don't get insurance through your folks, you may find that insurance is relatively inexpensive for a person your age. People under 30 are generally pretty healthy and don't represent a high risk pool for insurers, so premiums are likely to be manageable at this stage of your life. According to a price index report from eHealth, a private online insurance exchange, people between ages 18 and 24 paid an average $217 in monthly premiums in 2017, and those between 25 and 34 paid $283. Premiums jumped to $361 for those aged 35&ndash;44, and $478 for those aged 45&ndash;54.</p> <p>Additionally, because young people are generally healthier, they can afford to take a calculated risk by purchasing insurance with lower premiums in exchange for a higher deductible.</p> <h2>You can mooch without guilt</h2> <p>Go ahead, sleep on your friends' sofa for a few weeks. Accept that offer for a free lunch. Tell your brother you'll pay him back later for that movie ticket. It's OK, no one will judge you too harshly.</p> <p>I'm not suggesting you have a free pass to bum off your friends and family, but we do have the tendency to give young people a break when they ask for free stuff. If you're under 30, we assume you aren't yet established in your career. We assume you may have student loans. We assume you're driving a beat-up old car. We assume you're still developing personal finance skills. Even if these things aren't true, we're lenient in dishing out small &quot;loans&quot; or offers of free food or places to stay. We tend to be far less sympathetic to people over 30.</p> <h2>Many industries prefer young people</h2> <p>It's a troubling reality that some employers prefer to hire young people, because they assume they will have skills that older people don't possess. This is especially true among startups and in the tech industry. Job site Indeed surveyed 1,011 U.S. tech workers and found that 43 percent of respondents worry about losing their jobs due to being too old. The survey also revealed that millennials make up the bulk (46 percent) of the tech workforce.</p> <p>I hesitate to characterize this as a &quot;perk&quot; for young people, but it's clear that being young can be an advantage when looking for work in certain fields.</p> <h2>You are less likely to be tied down</h2> <p>You are being recruited for your dream job at a hot startup company &mdash; but the catch is that it's 3,000 miles away in California. So? Pack up and go!</p> <p>At this stage of your life, you have very little keeping you from pursuing opportunities. You are less likely to be married with kids, less likely to own a home, and less tied to whatever community you're living in. If a great career opportunity comes along, you can feel free to take it, even if it means uprooting.</p> <h2>You can get discounts</h2> <p>We tend to think discounts are set aside for seniors or little kids, but that's not true. Businesses are happy to offer discounts to young people if it gets them in the door and turns them into repeat customers.</p> <p>Did you know that in New York City, you can get discounts to Broadway shows if you are under 30? Some travel companies offer discounts on package deals for young people. And there are plenty of discounts on everything from restaurants to movie tickets if you are still in college or graduate school. Don't be afraid to exploit your youth for discounted stuff.</p> <h2>Being poor is culturally acceptable</h2> <p>Young people can get away with almost bragging about how poor they are. They wear their &quot;I survive on Chef Boyardee&quot; stories like a badge of courage. No one looks down on them if they get by on cheap food, take on roommates, move frequently to find cheaper rent, or drive a crappy car. Young people can take that low-paying job because it will get them the experience they want. It's all part of being young and alive.</p> <p>As you get older, being broke isn't as cool. You now have a family and responsibilities and bills to pay. You need to wear nicer clothes, pay the mortgage, and shell out cash for your kids' activities. As you age, there's pressure to make money, save money, and actually act like a responsible human.</p> <h2>Some &quot;trends&quot; are just ways to save money in disguise</h2> <p>Have you ever considered that some cultural shifts often result in fewer expenses for young people? When you think about it, young people in recent years have pushed for changes that, either intentionally or unintentionally, result in cost savings.</p> <p>The whole beard trend among young men? Yeah, that's saving them hundreds of dollars in shaving costs each year. Casual dress codes? So long, expensive suits and ties. The desire to work remotely? That's reducing commuting costs. The sharing economy? Young people deciding that it's cheaper to borrow than buy.</p> <p>People in their 20s are the ones establishing and taking advantage of some of these trends. Some of it is due to lifestyle or fashion preference, but make no mistake that saving money is also a big part of it.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fthe-financial-perks-of-being-in-your-20s&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FThe%2520Financial%2520Perks%2520of%2520Being%2520in%2520Your%252020s.jpg&amp;description=The%20Financial%20Perks%20of%20Being%20in%20Your%2020s"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/The%20Financial%20Perks%20of%20Being%20in%20Your%2020s.jpg" alt="The Financial Perks of Being in Your 20s" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-frugal-living-commencement-speech-id-give-to-my-younger-self">The Frugal Living Commencement Speech I&#039;d Give to My Younger Self</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-basics-every-new-grad-should-know">The Financial Basics Every New Grad Should Know</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-lessons-on-how-to-be-a-financial-grownup-from-bobbi-rebell">6 Lessons on How to Be a Financial Grownup From Bobbi Rebell</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-personal-finance-rules-you-should-be-breaking">15 Personal Finance Rules You Should Be Breaking</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Frugal Living budgeting compound interest culture discounts investing jobs millennials perks saving money spending young people Wed, 03 Jan 2018 10:00:07 +0000 Tim Lemke 2081069 at http://www.wisebread.com First Rule of Financial Wins: Avoid Losses http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/first-rule-of-financial-wins-avoid-losses" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/business_financial_opportunity.jpg" alt="Business Financial Opportunity" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The task of accumulating wealth and ensuring long-term financial security is often discussed alongside the idea of winning. And while it's fine to think of financial planning this way, it may be just as important to simply <em>avoid losing</em>. Smart investing involves looking for gains over time, but also escaping costly losses when the market goes down. Let's take a look at some ways we can &quot;win&quot; financially simply by avoiding losses.</p> <h2>1. Avoid overpriced stocks</h2> <p>The last thing you want is to buy a stock and immediately see it take a dive. If you are a young investor with a long time horizon, you can usually get away with putting your money in the market at any time. But it is important for anyone to avoid buying stocks when they are overvalued and perhaps due for a correction.</p> <p>It's tempting to buy a stock if shares have been moving upward, because we all like to invest in companies that are doing well. At a certain point, however, share prices can be too high based on the company's earnings. It's important to learn the basics of how to tell if a stock is fairly valued.</p> <p>A price-to-earnings ratio is an important consideration in valuing a stock. A P/E ratio is the share price divided by earnings-per-share (EPS). A P/E of more than 25 is on the high side, though P/Es vary by industry. Take time to learn what typical P/E ratios are for the sector you're looking to invest in.</p> <p>Another rule of thumb to keep in mind: If a stock has been consistently setting new 52-week highs, it may be due for a pullback.</p> <p>If a company's share prices seem overvalued, it's wise to practice patience or look elsewhere for better value. This will decrease your likelihood of losing money on the investment.</p> <h2>2. Know when to cut your losses</h2> <p>One common piece of investing advice is to stay the course and avoid panicking when shares of stock fall. This is sensible, but it should be balanced with an awareness of when to cut your losses.</p> <p>There's a fine line between being patient and sticking with a dud investment for too long. It's OK to stick with an investment if the company's underlying financials are still strong, but if the company is seeing shrinking profit margins and revenues, or has completely lost its competitive advantage, it may be time to cut and run. In particular, hanging onto investments during major market downturns can result in massive losses that will take years to recover from. Some financial advisers suggest selling an investment if it drops more than 10 percent in a short amount of time. (See also: <a href="http://www.wisebread.com/10-signs-a-stock-is-about-to-tank?ref=seealso" target="_blank">10 Signs a Stock Is About to Tank</a>)</p> <h2>3. Be truly diversified</h2> <p>Most investors know to avoid investing in too much of one thing. Diversification of investments is a key way to avoid a big loss. But sometimes, it's possible to think you are diversified when you aren't. For example, you may think you are diversifying your portfolio by investing in both U.S. based and international stocks. But have you considered that many U.S. companies already have a huge presence internationally? And even if you think you are diversified with various investments and asset classes, many investments still perform similarly, meaning that you're not as diversified as you think.</p> <p>Financial advisers have varying thoughts on the ideal way to diversify. Of course, everyone's portfolio will differ depending on their age, risk tolerance, and projected retirement year. But the basic tenet applies: Don't be too invested in one area.</p> <h2>4. Watch out for investment fees</h2> <p>When you buy and sell stocks and other investments, you'll likely be stuck paying a variety of fees. There are transaction costs for every trade, and maintenance fees and other costs for mutual funds and ETFs. These are costs that are taken out of money you invest, so you not only lose money immediately, but lose out on its potential gains. This can add up to thousands of dollars in the long run.</p> <p>Savvy investors know how to invest well while avoiding high costs. Discount brokerages such as Fidelity and Scottrade allow you to buy and sell stocks for as little as $4.95 per trade. Mutual fund companies including Vanguard, T. Rowe Price, and others have become more cognizant of fees, and are increasingly offering funds with super-low expense ratios. (Generally speaking, it's best look for funds that charge less than 1 percent for expenses.)</p> <p>Keep your costs low when you invest, and you'll find that avoiding these &quot;losses&quot; can boost your gains.</p> <h2>5. Understand when the markets may be due for a dip</h2> <p>It's very difficult to time the stock market, and for young investors, it's a good idea to just invest as soon as you can. But it's also possible to avoid big losses by recognizing when the markets may be due for a correction. If it seems like stocks are priced too high based on their earnings, that's one bad sign. A slowdown in economic growth is another, and you should be wary of a spike in inflation and interest rates, too. It's also worth noting if companies are downgrading their earnings predictions for the upcoming quarter, as that could be a sign that business executives are pessimistic. If you recognize any or all of these signs, it may be worth waiting a while before investing too heavily.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Ffirst-rule-of-financial-wins-avoid-losses&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FFirst%2520Rule%2520of%2520Financial%2520Wins_%2520Avoid%2520Losses.jpg&amp;description=First%20Rule%20of%20Financial%20Wins%3A%20Avoid%20Losses"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/First%20Rule%20of%20Financial%20Wins_%20Avoid%20Losses.jpg" alt="First Rule of Financial Wins: Avoid Losses" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-personal-finance-rules-you-should-be-breaking">15 Personal Finance Rules You Should Be Breaking</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/73-easy-ways-to-save-money-today">73 Easy Ways to Save Money Today</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance apps budgeting cutting expenses energy efficient fees insurance investing losing saving spending stocks winning Tue, 14 Nov 2017 09:31:09 +0000 Tim Lemke 2053314 at http://www.wisebread.com 9 Family Money Matters Your Kids Don't Need to Know http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-family-money-matters-your-kids-dont-need-to-know" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/working_at_home_1.jpg" alt="Working at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you have kids, there will come a time when you want to teach them about money. Some basic personal finance lessons can go a long way toward helping your children understand things like spending, saving, and even investing.</p> <p>But there are many things about your family's finances that your children don't need to know right away, even if they are curious. Information about your family's income, debt, and spending can be confusing and even troubling to younger kids. And kids are prone to share this information when it's best to keep it private.</p> <p>Older teenagers may benefit from learning more about your financial situation as they approach an age when they will be earning money and making purchases on their own. But for younger children, especially, it may be best to keep the following financial information close to your vest. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?Ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>1. Your income</h2> <p>Your kids don't need to know how much money you make. All they need to know is that you love them and will care for them. Younger kids, in particular, have no real sense of the value of money anyway. You could tell them you earn $100 a year and they would think you are rich.</p> <p>Children also have a habit of blabbing, and you never want to find your children bragging to other kids &mdash; or even worse, their parents &mdash; about how much money you earn. Your kids will be better off learning that happiness and financial security have less to do with your income and more to do with what you do with money when you have it. This means teaching them about saving, about being charitable to others, and about being appreciative of what you have.</p> <h2>2. Which parent earns more</h2> <p>It's common for one parent to earn more than the other. This is especially true if one parent chooses to stop working or works part-time to raise a family. Children should generally be left oblivious to which spouse is higher earning because salaries don't represent a person's full contribution to the family.</p> <p>If one parent stops working, it may mean they are taking on a greater share of household responsibilities. And it's also important to note that many of our more important professions are not particularly high paying. A schoolteacher may bring in less money than their banker spouse, but is likely to work just as hard. Rather than share details with your child about which spouse earns more, simply explain to them the value of all work, and give them an appreciation of the broad, non-monetary contributions needed to keep a household going.</p> <h2>3. Your retirement balance</h2> <p>Let's say you've been saving aggressively for retirement and have several hundred thousands of dollars saved. Now, let's say you just told your daughter she can't have ice cream because it costs too much. A child, if she was aware of your retirement savings, might find this baffling. It's hard for young people to grasp that you may have a large amount in savings but are still pinching pennies.</p> <p>Your retirement savings and overall net worth is not something that should be shared too widely. A child who finds out his dad has hundreds of thousands of dollars in the bank may be motivated to brag, and that's not good. So it's best to keep information about your retirement plan to yourself.</p> <h2>4. Your debts</h2> <p>Debt can be a major source of family stress, but it's a stress that only parents should carry. Your worries about how you'll pay off that credit card bill or how you'll make those car payments are your worries, not your kids'. There may be instances when you need to be honest with your children if there is money trouble, and older children may benefit from lessons in money management, credit, and the cost of borrowing. But as long as you are able to provide and care for your kids, they are best left unaware of your financial debt burden.</p> <h2>5. The price of your home</h2> <p>The cost of your house is public information, but that doesn't mean you need to broadcast it to your kids. The only thing that kids need to know about housing is that they have a roof over their head. What you paid for your house should, to the best of your ability, be kept between the buyer, seller, and real estate agent.</p> <p>Additionally, it's best not to share too much detail about mortgage debt. If they ever get a hint that you are struggling to make mortgage payments, that will only lead to anxiety.</p> <h2>6. What you inherit</h2> <p>If a relative passes away and leaves some assets to you, the specifics of that inheritance should be kept as private as possible. This is especially true if the inheritance is quite large. If a child learns of a sizable windfall and shares that information with others, that can lead to jealous family members or friends, and could even make you a target for thieves and scammers.</p> <p>Sometimes, certain family members receive less than others, or are cut out of the will altogether. This can result in family strife that children should not be concerned about.</p> <p>For older children, it is OK to explain to them how inheritances work, as they may take comfort in believing you'll leave them something when you pass. And there will be a time when you need to tell older children about their own inheritance so they have an idea of what they may have to manage.</p> <h2>7. The cost of gifts</h2> <p>Kids have a way of believing that the most expensive item is always the best. They'll reject something if they believe you got it at a deep discount or (gasp!) second-hand. So parents may be best served by not indicating how much they spent on that video game system or that baseball bat. By hiding the cost of items you buy for your kids, they may be more inclined to evaluate the gift on its merits.</p> <h2>8. Child support payments and alimony</h2> <p>If you and your spouse have divorced, you may be on the hook for child support payments, alimony, or both. These costs are usually determined by courts and can be a major source of tension between parents. The children are best left unaware of these details and any drama or conflict surrounding them. It may be comforting to a child if they are aware that support payments are being made, but sharing specific dollar figures can be problematic.</p> <h2>9. In some cases, the cost of college</h2> <p>This is a tricky one. If your child will end up paying for their own college education, he or she will obviously need to know what they'll be on the hook for. And if you are paying for all or part of college, they will be well served to know how much of a financial commitment you are making toward their education. (It will comfort them to know you are saving as much as possible.) But this information should not come to them immediately. A child's first priority should be to stay in school and get good grades. A young high schooler does not need to be burdened with the stress of whether they need to get scholarships or whether they'll be on the hook for student loans later.</p> <p>It's also important to understand that final college costs can vary from family to family, depending on scholarships and financial aid. A wealthy family might pay the full price to send their child to an Ivy League school, while a low-income family may pay next to nothing. This family financial information is really nobody's business, so it's important to be judicious in what you share with your child.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-family-money-matters-your-kids-dont-need-to-know&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Family%2520Money%2520Matters%2520Your%2520Kids%2520Don%2527t%2520Need%2520to%2520Know.jpg&amp;description=9%20Family%20Money%20Matters%20Your%20Kids%20Don't%20Need%20to%20Know"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Family%20Money%20Matters%20Your%20Kids%20Don%27t%20Need%20to%20Know.jpg" alt="9 Family Money Matters Your Kids Don't Need to Know" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year">6 Smart Financial Gifts to Give Your Kids This Year</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult Kids</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">How to Protect Yourself Financially During a Divorce or Separation</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family alimony borrowing child support children debt divorce high earners income kids retirement spending Wed, 25 Oct 2017 08:00:07 +0000 Tim Lemke 2038887 at http://www.wisebread.com 5 Times Splurging on Experiences Is a Bad Idea http://www.wisebread.com/5-times-splurging-on-experiences-is-a-bad-idea <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-times-splurging-on-experiences-is-a-bad-idea" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_having_a_duh_moment.jpg" alt="Man having a duh moment" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're a regular reader of Wise Bread, you know that we encourage you to <a href="http://www.wisebread.com/4-reasons-you-should-splurge-on-experiences-not-things?ref=internal" target="_blank">spend your money on experiences</a> rather than material things. You will be happier if you make great memories, rather than stockpiling great electronics, clothes, shoes, watches, and jewelry. But there are two sides to every story. And sometimes, these experiences are just not worth the splurge.</p> <h2>1. Exotic destination weddings</h2> <p>We've all received those wedding invitations that, at first, seem like a dream come true. We picture ourselves tanning on a beach in Hawaii or Jamaica with a cocktail and a smile. But that's usually not the case. Destination weddings don't give you a lot of time to yourself. You are there for the bride and groom. It's their big day, they've spent a lot of money on it. You'll be expected to go to rehearsals, receptions, and other parties. You may well have to hang out with a bunch of people you don't know or even like all that much. And to top it all off, you're paying through the nose to go on this trip. It will likely cost thousands. You might make some good memories from it, but this isn't the same as a vacation on your own terms. (See also: <a href="http://www.wisebread.com/6-ways-to-resist-a-splurge?ref=seealso" target="_blank">6 Ways to Resist a Splurge</a>)</p> <h2>2. Tickets to the Super Bowl</h2> <p>Blasphemy, right?! Well, not really. When it comes down to it, a trip to the Super Bowl is a great experience if you can get it for the right price. But if you're buying the tickets through the secondary market, or even worse, getting an &quot;On Location Experience,&quot; you are going to be spending a small fortune. SeatGeek.com states that the <a href="https://seatgeek.com/events/super-bowl" target="_blank">average price of a Super Bowl 52 ticket</a> will be between $2,500 and $3,000. For those On Location Experiences, you're looking at between $6,000 to $12,000. Up to $12,000 to see a football game. Now, think about the experience you're going to have for that money. You're there, in the stadium, but most of the time you're actually watching the action on the big screen projection. You're paying an arm and a leg for food and drinks. You also had to pay to get to the Super Bowl and stay in a hotel, unless you're lucky enough to live in that city. (See also: <a href="http://www.wisebread.com/how-one-man-used-credit-card-rewards-to-go-to-the-last-11-super-bowls?ref=seealso" target="_blank">How One Man Used Credit Card Rewards to Go to the Last 11 Super Bowls</a>)</p> <p>What else could you do with that money? How about two weeks in Europe? Or Japan? Or paying down debt? Wouldn't that be a better use of your money? Forget the Super Bowl experience, and watch it on a big screen at home with your friends and family.</p> <h2>3. Extremely high-priced restaurants</h2> <p>There are some restaurant experiences that balance good food with a reasonable check at the end of the meal. And there are others that just blow the budget completely out of the water. You may be thinking that once, just once, you want to spend a whole lot of money on an amazing meal &hellip; just to experience it. Well, honestly, you will not be getting your money's worth. For example, <a href="http://www.wisebread.com/10-of-the-worlds-most-expensive-restaurants" target="_blank">Sublimotion in Spain</a> charges over $2,000 per person for a series of 15-20 small courses. It gets exceptional reviews of course, but $2,000 for a meal is just an absurd waste of your cash, and you will find stunning food in your area for way, way less money. (See also: <a href="http://www.wisebread.com/the-worlds-most-affordable-michelin-starred-restaurants?ref=seealso" target="_blank">The World's Most Affordable Michelin-Starred Restaurants</a>)</p> <h2>4. A trip on the Orient Express</h2> <p>I mean, it's a train. It may be the most famous train the world, but is it worth the cost to ride? If you were to book a <a href="https://www.luxury-trains.co.uk/orient-express/venice-simplon-orient-express-train-fares.htm" target="_blank">cabin suite from Paris to Istanbul</a>, the cost is almost $16,000! If you instead opt for a double or single room, it's still up there at around $8,000! And what do you get for that? Honestly, not all that much. Some nice food, some fancy service, and nice views.</p> <p>However, if you purchase a First Class InterRail ticket for the same journey, with the same views, you will only be out of pocket around $400 per person. Don't bother with the Orient Express. It's overpriced and underwhelming, and includes a lot of wood paneling and polished brass.</p> <h2>5. The big fight</h2> <p>Despite the phenomenal rise in popularity of UFC, world-class boxing matches still command massive audiences. And it seems massively inflated ticket prices, too. In 2015, Forbes reported that the Floyd Mayweather Jr. versus Manny Pacquiao fight had ticket prices so incredible they broke records. As hard as it is to believe, some tickets went on sale for upward of $350,000! That's right, over a quarter of a million dollars, for a fight that many thought did not come close to living up to the title of &quot;Fight of the Century.&quot; If you're thinking, <em>Well, yeah, but most tickets didn't cost anywhere near that price,</em> then you're right. The worst seats in the house were being sold for over $3,500 per ticket. And that would have gotten you on the upper level with a view that left a lot to be desired. People were spending upward of $150 to attend the weigh-in for that fight! And these fights will continue to garner a lot of attention, and ask for grossly-inflated sums of money. Watch it on Pay-Per-View if you really want to see it, and split the cost with your friends.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-times-splurging-on-experiences-is-a-bad-idea&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Times%2520Splurging%2520on%2520Experiences%2520Is%2520a%2520Bad%2520Idea.jpg&amp;description=5%20Times%20Splurging%20on%20Experiences%20Is%20a%20Bad%20Idea"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Times%20Splurging%20on%20Experiences%20Is%20a%20Bad%20Idea.jpg" alt="5 Times Splurging on Experiences Is a Bad Idea" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/5-times-splurging-on-experiences-is-a-bad-idea">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-frugal-fall-getaways-you-can-start-packing-for-now">10 Frugal Fall Getaways You Can Start Packing For Now</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-budget-friendly-beach-destinations">6 Budget-Friendly Beach Destinations</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-budgeting-skills-everyone-should-master">11 Budgeting Skills Everyone Should Master</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-get-out-of-social-obligations-that-break-your-budget">How to Get Out of Social Obligations That Break Your Budget</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Entertainment expensive things experiences material things saving money spending splurges travel vacation weddings Thu, 27 Jul 2017 09:00:04 +0000 Paul Michael 1990724 at http://www.wisebread.com 7 Financial Differences Between Millennials and the Next Generation http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-financial-differences-between-millennials-and-the-next-generation" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/group_of_friends_having_fun.jpg" alt="Group of friends having fun" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>We hear a lot about millennials and their money, but what about the generation behind them? Members of Generation Z are now approaching adulthood, and have their own unique characteristics. They may also have their own unique attitudes toward money. How do millennials and Generation Z differ? The answer to those questions could have fascinating implications for our economy.</p> <h2>1. Generation Z may be more frugal</h2> <p>Members of Generation Z may only now be entering adulthood, but there are indications that they are more conservative with their money than previous generations. Perhaps it's because this generation has grown up at a time of unrest, from the attacks of September 11, 2001 and the aftermath, to the near collapse of the financial sector at the end of the last decade.</p> <p>The 2016 Annual State of Credit published by Experian noted that Generation Z has an average of 1.29 credit cards, compared to 2.02 for millennials. They also have about half as much debt overall, though it's worth noting that many are entering college age, when debt levels can soar.</p> <h2>2. Generation Z is totally cool with technology</h2> <p>Millennials are pretty tech-savvy, but Generation Z is the first generation that's never known a time without the internet. This means they should be entirely accepting of online banking and investing, using mobile payment apps, and similar innovations &mdash; though they will be cautious, due to their awareness of high-profile data breaches. Generation Z will also have no recollection of the tech bubble burst of the late 1990s, so they'll be perfectly comfortable investing in tech stocks.</p> <h2>3. Generation Z wants career stability</h2> <p>There is some evidence that members of Generation Z prefer to go after careers that are solid and pragmatic. The consulting firm Altitude reported that this generation may be less entrepreneurial and more focused on stability and earning enough money to avoid financial struggles.</p> <p>Another report from Bainbridge Consulting found that more than half Generation Z-ers feel like they need to get work experience as soon as possible in order to succeed. The broader economic implications of this risk aversion will be worth watching in the coming years.</p> <h2>4. Millennials may be less focused on retirement</h2> <p>Even though millennials are the older generation, it's Generation Z that may already be focused on retirement savings. One study from the Center for Generational Kinetics found that about 12 percent of Gen Z-ers already have some retirement savings. Another 35 percent said they expect to begin saving once they hit their 20s. Some of this may be influenced by parents who urged them to save; more than one out of every five people in Generation Z reported having savings accounts by age 10.</p> <h2>5. Millennials are more loyal to brands</h2> <p>Good luck trying to get a millennial to switch from an Apple to an Android phone, or vice versa. But those from Generation Z don't have the same kind of steadfast allegiance to products. A study by IBM said two-thirds of this young generation prefer high-quality products that last, and will do their homework to find the best value, regardless of brand.</p> <h2>6. Generation Z shops smarter</h2> <p>Because of their internet savvy, members of Generation Z know how to comparison shop and get information about products online. Research from MarketingProfs showed that more than half of people in Generation Z use YouTube and other social media sites to research products before they buy.</p> <h2>7. Generation Z is wary of student debt</h2> <p>About two-thirds of millennials say they have more than $10,000 in student loan debt. This reality has led Generation Z to be more thoughtful when examining the value of higher education. One survey by Adecco reported that 21 percent of Generation Z students said they were concerned about the price of tuition, compared to 13 percent for millennials. There are also indications that Generation Z is less inclined to go after a costly advanced degree.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-financial-differences-between-millennials-and-the-next-generation&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Financial%2520Differences%2520Between%2520Millennials%2520and%2520the%2520Next%2520Generation.jpg&amp;description=7%20Financial%20Differences%20Between%20Millennials%20and%20the%20Next%20Generation"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Financial%20Differences%20Between%20Millennials%20and%20the%20Next%20Generation.jpg" alt="7 Financial Differences Between Millennials and the Next Generation" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money">10 Reasons to Cut Millennials Some Slack About Their Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-moves-to-make-the-moment-you-get-a-promotion">8 Money Moves to Make the Moment You Get a Promotion</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance career goals generation z investing millennials retirement saving spending technology youth Mon, 17 Jul 2017 08:00:12 +0000 Tim Lemke 1982851 at http://www.wisebread.com 10 Reasons to Cut Millennials Some Slack About Their Money http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-reasons-to-cut-millennials-some-slack-about-their-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/bad_news_headlines.jpg" alt="Bad news headlines" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Millennials are getting beat up these days for their money habits. According to observers, people between the ages of 18 and 34 are financially irresponsible &mdash; one CEO even suggested they are spending too much money on <a href="http://time.com/money/4778942/avocados-millennials-home-buying/" target="_blank">pricey avocados</a> when they should be saving for a home.</p> <p>But these reports are unfair. There's a lot of evidence to suggest that from a financial standpoint, millennials may be facing unique challenges that older generations simply didn't deal with. (See also: <a href="http://www.wisebread.com/7-ways-millennials-are-better-with-money-than-you-are?ref=seealso" target="_blank">7 Ways Millennials Are Better With Money Than You Are</a>)</p> <p>Should we take it easy on millennials when it comes to their money habits? Perhaps, and here's why.</p> <h2>1. College is really expensive</h2> <p>We encourage young people to attend college, but according to Student Loan Hero, the average member of the class of 2016 graduated with more than $37,000 in student loan debt. Borrowers between the age of 20 and 30 spend an average of more than $350 a month to pay off these loans.</p> <p>This student debt is largely the result of rising college costs: Public school costs have risen 9 percent over the last four years, and private universities have risen 13 percent. A student attending a four-year private school now pays an average of $45,000 each year. While it's true that young adults should be aware of the cost of college when deciding if and where to attend, it's also clear that many are now handcuffed by their student loan burdens. (See also: <a href="http://www.wisebread.com/7-unique-ways-millennials-are-dealing-with-student-loan-debt?ref=seealso" target="_blank">7 Unique Ways Millennials Are Dealing With Student Loan Debt</a>)</p> <h2>2. Wages haven't gone up</h2> <p>One of the biggest problems with the current economy is that it's been a long time since wages have gone up in real terms. In fact, there's evidence that wage growth has basically been stagnant since the 1970s, and any wage growth at all has been concentrated to the top earners.</p> <p>Anyone without a college degree has seen their wages decline, on average, in the last decade. It's easy to accuse millennials of making bad financial choices, but there's very little evidence they are rolling in the dough to begin with.</p> <h2>3. Housing is really costly</h2> <p>In many parts of the country &mdash; especially those with good job opportunities for millennials &mdash; it's nearly impossible to find an affordable house or apartment. A recent survey of 24,000 renters by ApartmentList.com found that millennials would have to wait more than a decade to save enough for a 20 percent down payment on a home in many markets. In some cities, including San Francisco and Austin, the wait is as much as 19 years.</p> <p>There are simply not enough affordable, entry-level homes available for millennials to buy, and with interest rates rising, the problem is only going to get worse.</p> <h2>4. Saving for retirement is mostly on them</h2> <p>If you're a baby boomer or even a GenXer, you might have worked for a company that offered generous pensions to its employees. For much of the 20th century, workers could find decent jobs at big companies and know they'd be getting a monthly check even after retirement.</p> <p>Nowadays, it's up to the individual to save for retirement, using a 401(k) plan (if they have access to one) or individual retirement accounts (IRAs). No doubt, you can generate a lot of wealth this way over time, but most of the savings will have to come from the worker, not the employer. And for many young people, setting money aside for retirement is an afterthought if they are also facing student loan debt and other expenses. (See also: <a href="http://www.wisebread.com/4-things-millennials-should-do-today-to-prepare-for-retirement?ref=seealso" target="_blank">4 Things Millennials Should Do Today to Prepare for Retirement</a>)</p> <h2>5. They've lived through several market crashes</h2> <p>For millennials, the stock market and economy have done quite well during their time on Earth, but there were several big events that may have left them wary about investing.</p> <p>The stock market endured three straight years of bad losses from 2000 to 2002, due to the dot com bubble bursting and the terrorist attacks of September 11. The markets tumbled dramatically again in 2008 after the financial crisis. These events may have taken place during a millennials' formative years, and the headlines may have clouded their belief in the power of investing. (See also: <a href="http://www.wisebread.com/7-reasons-millennials-should-stop-being-afraid-of-the-stock-market?ref=seealso" target="_blank">7 Reasons Millennials Should Stop Being Afraid of the Stock Market</a>)</p> <h2>6. Many don't use credit cards at all</h2> <p>We often assume that millennials have a ton of credit cards. But according to one survey, millennials have fewer cards than most Americans. BankRate.com reported last year that only one-third of people under the age of 30 have a credit card. (See also: <a href="http://www.wisebread.com/best-credit-cards-for-millennials?ref=seealso" target="_blank">Best Credit Cards for Millennials</a>)</p> <h2>7. Everybody is marketing to them</h2> <p>It's easy to say that millennials should be more frugal, but that's easier said than done when America's marketing dollars are bombarding that exact generation. Ask any advertiser what their coveted demographic is, and they'll likely tell you they deliberately target people between the ages of 18 and 34.</p> <p>On one hand, we want young people to be responsible with their money. On the other, we know that consumer spending by that same group is often a big driver of the American economy.</p> <h2>8. They are more generous than you think</h2> <p>It may be frustrating to see millennials with poor personal finance skills. But while they may not necessarily be smart with money, they are not as selfish as you might believe.</p> <p>Millennials basically invented the concept of crowdfunding, which has led to sites such as GoFundMe and others that have supported nonprofits. One survey from 2014 noted that 84 percent of millennials donated to a charity that year, and that they are more likely to give on their own accord rather than from a top-down, corporate-driven approach.</p> <h2>9. They grew up in a fairly prosperous era</h2> <p>People who grew up during the Great Depression learned the hard way about living frugally and making every penny stretch. Those who grew up during World War II remember making severe sacrifices. Even baby boomers remember the gas shortages and economic stagnancy of the 1970s.</p> <p>By contrast, millennials have grown up in a time of relative prosperity. Millennials have never been forced to learn how to save and invest as a matter of survival. Is it their fault that they grew up in relative comfort compared to older generations?</p> <h2>10. Luxury items are practically necessities</h2> <p>Older people like to accuse younger generations of spending money needlessly, but think of the expenses they have that did not exist even 20 years ago. Cellphones? Tough to get by without one these days. High-speed internet service? Yeah, that's almost as important as electricity. Millennials have considerable expenses each month that were once considered luxury items, but are now considered vital.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F10-reasons-to-cut-millennials-some-slack-about-their-money&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520Reasons%2520to%2520Cut%2520Millennials%2520Some%2520Slack%2520About%2520Their%2520Money.jpg&amp;description=10%20Reasons%20to%20Cut%20Millennials%20Some%20Slack%20About%20Their%20Money"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/10%20Reasons%20to%20Cut%20Millennials%20Some%20Slack%20About%20Their%20Money.jpg" alt="10 Reasons to Cut Millennials Some Slack About Their Money" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation">7 Financial Differences Between Millennials and the Next Generation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-moves-for-the-newly-independent">8 Money Moves for the Newly Independent</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance baby boomer future generation x generations habits investing millennials retirement saving spending young adults Fri, 30 Jun 2017 08:00:08 +0000 Tim Lemke 1970114 at http://www.wisebread.com 5 Ways Being Late on Tech Trends Saves You Money http://www.wisebread.com/5-ways-being-late-on-tech-trends-saves-you-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-ways-being-late-on-tech-trends-saves-you-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/you_have_got_to_meet_me_at_the_sale.jpg" alt="You have got to meet me at the sale!" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Late adopters are not people who hate technology, think trends are evil, and spend their time sitting in candlelit rooms grumbling about the modernization of things that used to matter. Late adopters are a segment of the consumer population who don't feel the need to jump on a new tech or trend as soon as it's available. They wait. They eye before they try. They are also often the last to try, and they save money and get more value out of what they do decide to buy. Here's how you can, too.</p> <h2>1. Skip the newest version</h2> <p>People often think of late adopters in the context of new technology. Late adopters won't be in line for the latest iPhone, or fighting crowds for the newest smart home thermostat. Their willingness to wait means they avoid the premium prices that come with getting the newest thing, now.</p> <p>For example, older versions of the iPhone typically drop in price by $100 when Apple releases the newest version. Late adopters save that $100, at a minimum. Potentially, they can save more by buying a used phone in great condition from someone who can't wait. (See also: <a href="http://www.wisebread.com/5-smart-ways-to-save-on-smartphones?ref=seealso" target="_blank">5 Smart Ways to Save on Smartphones</a>)</p> <h2>2. Save time and data</h2> <p>Late adopters save by avoiding the time and money spent on buying relatively untested tech trends, or gadgets. Tech is a competitive industry; not all that launches will last. Early adopters who sign on for the latest service or product provided by a startup get the thrill of the new. They also get the hassle of the new: keeping up with continual upgrades, dealing with bugs, and having to move (or lose) their data when a service shuts down. (See also: <a href="http://www.wisebread.com/tech-life-8-reasons-why-you-shouldn-t-be-an-early-adopter?ref=seealso" target="_blank">8 Reasons Why You Shouldn't Be an Early Adopter</a>)</p> <h2>3. Avoid premium pricing</h2> <p>The premium pricing concept translates to many industries beyond fashion. If you're set on having the newest designs, as soon as they're released, you'll pay more for it. This &quot;hunger marketing&quot; strategy creates a sense of urgency and scarcity, and many consumers buy into it. Literally.</p> <p>Late adopters avoid price markups by waiting before purchasing. That new fashion trend highlighted on the main display will be in the bargain bin in a few weeks, and the price will drop accordingly. The timeline might be a bit longer, but the same goes for new tech toys.</p> <h2>4. Wait on tech stocks</h2> <p>By waiting, you can benefit financially by avoiding trend-chasing, a common strategy in the stock market. Prices on &quot;trending&quot; stocks increase to a maximum, then fall, sometimes dramatically. If you chase those trends, purchasing as the trend is growing or peaking, you might overpay.</p> <p>Seasonal cycles and holidays in the stock market can favor late adopters, as well. Trading activity, and prices, follow predictable patterns. People who are willing to wait can buy and sell at the best time, rather than taking what they can get right away.</p> <h2>5. Evaluate your true necessities</h2> <p>Turns out, the necessities of life aren't always necessities. If you talk to the sales rep at your nearest baby goods warehouse, you'll get a long list of items that you simply must have. If you talk to a seasoned parent, you'll get a much shorter list: the essentials, and those daily-use items that save a parent's sanity more than a few times.</p> <p>Taking the late adopter approach for a new baby, or for family entertainment, or for your tween's wish list will help you filter it to a shorter, smarter list. Many things seem optimum and exciting when we first hear about them and when our friends all have them. The crystal-clear voice of experience will save you money if you give it enough time.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/annie-mueller">Annie Mueller</a> of <a href="http://www.wisebread.com/5-ways-being-late-on-tech-trends-saves-you-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-best-pet-cameras">The 5 Best Pet Cameras</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-to-avoid-buying-electronics-youll-regret">5 Ways to Avoid Buying Electronics You&#039;ll Regret</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/frugal-tip-do-not-spend-when-you-are-sad">Frugal Tip: Do Not Spend When You Are Sad</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-best-travel-cable-organizers">The 5 Best Travel Cable Organizers</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-you-shouldnt-stress-too-much-about-spending-money">Why You Shouldn&#039;t Stress Too Much About Spending Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Shopping Technology gadgets saving shopping spending tech Wed, 21 Jun 2017 08:31:12 +0000 Annie Mueller 1969595 at http://www.wisebread.com Are Your Emotions Costing You Money? Take This Quiz http://www.wisebread.com/are-your-emotions-costing-you-money-take-this-quiz <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-your-emotions-costing-you-money-take-this-quiz" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/pensive_young_woman_holding_empty_wallet_after_shopping.jpg" alt="Pensive young woman holding empty wallet after shopping" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Building a strong financial foundation for you and your family requires discipline. It requires patience. It requires a steady mindset. But even the best of us have found ourselves spending and making financial decisions based on emotions, whether that's retail therapy, or holding off on investing due to <a href="http://www.wisebread.com/how-to-get-over-these-5-scary-things-about-investing?ref=internal" target="_blank">fear of the markets</a>. We've made decisions based on joy or comfort in the short term instead of satisfaction in the long run.</p> <p>Are you letting your emotions control your finances? Answer these questions to find out.</p> <h2>Do you spend money when you feel sad, happy, or stressed?</h2> <p>You had a bad day at work, so you go on a shopping spree for new shoes. You got a promotion, so you celebrate by taking friends out to eat at a fancy restaurant. You spend money as a reaction or antidote to whatever feelings you have at a given moment, and this makes it hard to save money at a healthy rate. You don't need to treat yourself to a costly reward every time you're happy or sad. This is an easy way to fall into a dangerous emotional spending cycle. (See also: <a href="http://www.wisebread.com/the-high-cost-of-the-treat-yourself-mindset?ref=seealso" target="_blank">The High Cost of the &quot;Treat Yourself&quot; Mindset</a>)</p> <h2>Have you held off on investing because you are afraid?</h2> <p>Fear is one of the most powerful emotions we have, and many people have never gotten started with retirement planning and investing because they are intimidated. They may find the whole process of investing to be overwhelming, or they may have a fear of asking a dumb question. Additionally, they may fear that their investments will lose money. In reality, it's best to channel fear into investing more, because not having enough money saved for retirement is a truly scary thought. (See also: <a href="http://www.wisebread.com/3-steps-to-getting-started-in-the-stock-market-with-index-funds?ref=seealso" target="_blank">3 Steps to Getting Started in the Stock Market With Index Funds</a>)</p> <h2>Have you sold investments when you realized they lost value?</h2> <p>We've probably all found ourselves frustrated with certain investments that have tanked, and sold them at a loss. Of course, then we've kicked ourselves when we've seen those same investments rebound in short order. It's not a good practice to be emotional when investing; the most successful investors practice discipline, patience, and steadfastness over the course of many years.</p> <h2>Have you ever bought something out of jealousy?</h2> <p>One of your closest friends just bought a big house in a nice neighborhood. Another just bought a fancy car. It can seem like other people are making out better than you, but this is no excuse to spend irresponsibly. Keeping up with the joneses is a path to financial hardship if you spend simply because you feel left out or jealous.</p> <h2>Do you get excited about getting a tax return?</h2> <p>It's an often ignored fact that if you are getting a tax refund, you've been lending money to the government interest-free all year. Remember: This was your money that you should have had all along. And yet, most people get a rush of excitement from getting a tax return. What's worse, people often treat their tax return like an unexpected windfall, and spend it frivolously. The sound, unemotional approach to taxes is to adjust your withholding so that you don't get a return at all. In fact, even owing a small amount to the IRS is OK as long as you don't pay a penalty. (See also: <a href="http://www.wisebread.com/10-smart-ways-im-spending-my-tax-refund?ref=seealso" target="_blank">10 Smart Ways I'm Spending My Tax Refund</a>)</p> <h2>Have you ever sought a refund anticipation loan or payday loan?</h2> <p>The same psychology that governs the love of tax returns also applies to those who seek money before it's due to them. If you are seeking cash early, you may end up paying exorbitant fees or interest rates. A typical payday loan might have an annual interest rate of 400 percent, according to the Consumer Financial Protection Bureau. (See also: <a href="http://www.wisebread.com/six-horrible-financial-products-you-should-avoid?ref=seealso" target="_blank">Six Horrible Financial Products You Should Avoid</a>)</p> <h2>Are you a habitual gambler?</h2> <p>Let's face it: Gambling can be exciting. It's a rush when you place a bet on some ponies and see your horse cross the finish line first. It's a thrill to see your ball land on your number. But gambling is ultimately an emotion-driven experience, and the excitement of winning can be addicting. Betting on a few hands of blackjack or the occasional football game won't kill you, but it's important to not let your emotions guide your betting habits. There's a long list of fine people who have ruined their financial lives through gambling.</p> <h2>Do you give a lot of money to children and other family members?</h2> <p>There's nothing wrong with being generous to those people who you care about most. But it's important to not let people take advantage of that generosity. Often, the decision to support a family member or friend is done not out of basic selflessness, but a feeling of obligation or guilt. It's important to not let your feeling of obligation to others outweigh your obligation to yourself.</p> <h2>Have you lost a job due to your temper?</h2> <p>Jobs can be frustrating. But if you've ever flown off the handle at work, you may be threatening your income and job security. While it's true that hiring managers look for workers with specific skill sets, they also want to make sure employees are able to get along with their colleagues. Workers who don't interact well with their peers, or respond poorly to criticism, often don't last long.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/are-your-emotions-costing-you-money-take-this-quiz">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-biggest-lies-we-tell-ourselves-about-money">The 10 Biggest Lies We Tell Ourselves About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/73-easy-ways-to-save-money-today">73 Easy Ways to Save Money Today</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-personal-finance-letter-id-write-to-my-younger-self">The Personal Finance Letter I&#039;d Write to My Younger Self</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-personal-finance-rules-you-should-be-breaking">15 Personal Finance Rules You Should Be Breaking</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-biggest-ways-procrastination-hurts-your-finances">7 Biggest Ways Procrastination Hurts Your Finances</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance debt emotional spending fear of markets gambling giving money impulse shopping indulging investing overspending saving spending Wed, 21 Jun 2017 08:00:16 +0000 Tim Lemke 1966173 at http://www.wisebread.com 6 Money Moves to Make If Your Net Worth Is Negative http://www.wisebread.com/6-money-moves-to-make-if-your-net-worth-is-negative <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-money-moves-to-make-if-your-net-worth-is-negative" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-546177782.jpg" alt="Woman making money moves when her net worth is negative" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>One of the most illustrative financial figures to know is your total net worth. This is the value of all of your cash and assets, minus your debts. For many people, that figure is below zero.</p> <p>Building a high net worth should be the ultimate goal of anyone seeking financial freedom. If your net worth is less than zero, consider making these moves ASAP. (See also: <a href="http://www.wisebread.com/10-ways-to-increase-your-net-worth-this-year?ref=seealso" target="_blank">10 Ways to Increase Your Net Worth This Year</a>)</p> <h2>1. Reduce your spending</h2> <p>One of the most direct ways to end up with a negative net worth is to spend more than you earn. Cutting unnecessary expenditures is the first step in having a net positive income each month. This can mean some tough choices, like eliminating cable, eating out, and your annual vacation. It may also require more extreme measures, like getting by without a car.</p> <p>You can help yourself by tracking your spending meticulously in a budget so you know where money is going each month. Even if you think you are already living frugally, there's a chance you can find savings just by taking a closer look.</p> <h2>2. Pay off your high-interest debt</h2> <p>If your net worth is negative, it may be partially due to <a href="http://www.wisebread.com/5-ways-to-pay-off-high-interest-credit-card-debt?ref=internal" target="_blank">high interest credit card debt</a> and other loans. Interest can quickly pile up and eventually overwhelm your earnings, putting you in negative net worth territory. Tackling debt starting with the highest interest rate first is called the avalanche method, and this can save you a lot of money on interest payments in the long run. Sometimes, even paying off just one credit card can make a huge difference in your financial situation. (See also: <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=seealso" target="_blank">The Fastest Way to Pay Off $10,000 in Credit Card Debt</a>)</p> <h2>3. Bring in more income</h2> <p>If you're crumbling under a mountain of debt and you don't have enough income to pay off the debt, you must find a way to bring in more money. Start by searching for higher paying jobs or <a href="http://www.wisebread.com/5-times-you-should-demand-a-raise?ref=internal" target="_blank">asking for a raise</a> from your current employer. Consider starting a side hustle, small business, or taking an additional part-time job. It may also be worth exploring income-producing investments, such as dividend stocks or peer-to-peer lending. If you have a maniacal focus on earning more money, you will help yourself move from negative to positive in the net worth department.</p> <h2>4. Invest</h2> <p>Arguably the most important way to build net worth is through investing. If you are able to put even a small amount of your earnings into stocks or index funds that grow, you'll give your financial picture a boost over time. Obviously, investing in the stock market carries risks. But U.S. stocks have consistently risen in value over time, with long-term growth eventually surpassing losses during market crashes. The more you can invest, the better off you'll be, especially if you stay in the market for many years. You won't get rich overnight, but your overall net worth will eventually rise.</p> <h2>5. Set a financial goal</h2> <p>If you had enough money, what would you ultimately want to do with it? Would you want to buy a home? Start a family? Build a hefty retirement account? To increase your net worth, it helps to have a goal to motivate you to save. Ideally, your financial goal should be geared toward building a high net worth, not a one-time purchase like a car. Whether it's a down payment for a home, a comfortable retirement, or saving for college, your dreams can help keep you accountable.</p> <h2>6. Refinance your mortgage</h2> <p>Homeownership can be a great way to build net worth, but it can also be a drain on your finances if you have the wrong kind of mortgage. If your loan term is very long, or if you have a high-interest or interest-only loan, you may not be paying much toward the principal of the loan (or building any equity) for a while. And that could be a serious problem if you're having trouble making payments.</p> <p>If you find yourself in this situation, you may want to consider refinancing to a shorter term or lower interest rate. There's no sin in borrowing to buy a home, but ideally, homeowners should seek a fixed-rate mortgage with a relatively short loan term: 30 years is standard, but a 15-year mortgage offers you the ability to build equity &mdash; and thus your net worth &mdash; at a faster pace. Just be sure you can comfortably make the monthly payments.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-money-moves-to-make-if-your-net-worth-is-negative&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Money%2520Moves%2520to%2520Make%2520If%2520Your%2520Net%2520Worth%2520Is%2520Negative.jpg&amp;description=6%20Money%20Moves%20to%20Make%20If%20Your%20Net%20Worth%20Is%20Negative"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Money%20Moves%20to%20Make%20If%20Your%20Net%20Worth%20Is%20Negative.jpg" alt="6 Money Moves to Make If Your Net Worth Is Negative" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/6-money-moves-to-make-if-your-net-worth-is-negative">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses">First Rule of Financial Wins: Avoid Losses</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-inspiring-people-who-each-paid-off-over-100000-in-debt">5 Inspiring People Who Each Paid Off Over $100,000 in Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-personal-finance-rules-you-should-be-breaking">15 Personal Finance Rules You Should Be Breaking</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-champion-of-savings-over-spending">A champion of savings over spending</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Debt Management assets goals investing mortgages net worth refinancing saving spending stocks Wed, 10 May 2017 08:00:08 +0000 Tim Lemke 1941242 at http://www.wisebread.com 4 Questions to Ask Before Getting a Credit Increase http://www.wisebread.com/4-questions-to-ask-before-getting-a-credit-increase <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-questions-to-ask-before-getting-a-credit-increase" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-503776840.jpg" alt="Woman asking questions before getting a credit line increase" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>Feeling penned in by the low credit limits on your credit card? You might be able to boost your credit limit to a higher amount. Often, all it takes is a single call to your card provider. The bigger question, though, is whether you're financially prepared for a higher limit.</p> <p>Your credit card providers will always set a credit limit on your cards, the maximum amount you can borrow. If you have a short credit history or a low FICO credit score, your credit limits might be low ones, sometimes under $1,000. If you have a long credit history and high scores, your limit might be $10,000, $20,000, or more.</p> <p>How do know if you're ready for the financial responsibility of a higher credit limit? Here are some questions to ask yourself.</p> <h2>Do You Pay Your Credit Card Bill Late?</h2> <p>Do you pay your credit card bills by their due dates every single month? Or have you missed payments in the past? If it's the latter, you might want to hold off on requesting a higher credit limit.</p> <p>Paying your credit cards 30 days or more late will cause your FICO score to drop by 100 points or more. Your credit card provider will also charge you a penalty, and your card's interest rate might soar. If you have a higher credit limit and a high balance, an interest rate spike could cost you quite a bit in extra interest payments.</p> <p>Having a history of late payments will also give your credit card provider pause; the financial institution might not want to boost your limit if you don't always pay your bill on time.</p> <h2>Do You Carry a Balance on Your Card?</h2> <p>The smart way to use a credit card is to pay off your balance in full each month. This way, you <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score?ref=internal" target="_blank">boost your credit score</a> by making on-time payments, and you won't get hit by the high interest that is often attached to credit card debt.</p> <p>But what if you never pay your balance off in full? What if you roll your credit card debt over from month to month, watching it grow each 30 days as you do so?</p> <p>If that describes you, don't worry about increasing your credit limit. Instead, focus on <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=internal" target="_blank">paying off your credit card debt</a> in full. It's easy to let this debt get out of control because it tends to grow so quickly. You don't want to waste your money paying off interest each month.</p> <p>If you think you need a higher credit limit to manage your bills, the better thing to do is to stop and assess your situation. A higher credit limit might save you for a few months, but you'll end up even worse off due to the high interest debt that you're accruing while your financial situation continues to spiral out of control. Make the tough cuts in your spending and <a href="http://www.wisebread.com/5-day-debt-reduction-plan-pay-it-off?ref=internal" target="_blank">create your debt payment plan</a>.</p> <h2>Have You Maxed Out the Limits on Your Cards?</h2> <p>You never want to hit the maximum credit limit on your credit cards. If you've already done this on other credit cards, it's a sign that you need to get your spending under control, even if your credit card limits are relatively low ones.</p> <p>Asking for more credit is not the right solution to <a href="http://www.wisebread.com/oops-i-maxed-out-my-credit-cards-now-what?ref=internal" target="_blank">maxing out your credit cards</a>. The better move is to stop charging and start paying down those balances. Don't even think about asking for more credit until you pay off your credit card debt in full.</p> <p>If instead you find you're bumping into your maximum even though you're able to pay it off each month (for example, you're trying to put your regular expenses on your card that you've been paying with cash or debit but there isn't enough credit available), that would be a good case for you to make in asking for a higher limit.</p> <h2>Do You Miss Other Bill Payments?</h2> <p>Are you constantly struggling to pay your auto, mortgage, or student loans on time? If so, you might consider higher credit limits to be a solution. After all, if you can charge more purchases each month, you might free up more cash to put toward those other bills.</p> <p>This, though, is flawed thinking. If you're struggling to pay your monthly bills, you either don't make enough money, or you're spending too much. The better solution is to <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=internal" target="_blank">draft a realistic household budget</a> showing how much money you're spending each month and how much you're earning. Armed with these numbers, you can then change your spending habits, make the move to a more affordable house or apartment, or search for a side job to bring in more income. (See also: <a href="http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job?ref=seealso" target="_blank">15 Ways to Make Money Outside Your Day Job</a>)</p> <p>Simply asking for more wiggle room on your credit cards is not addressing your money struggles. That's trying to avoid them.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-questions-to-ask-before-getting-a-credit-increase">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-actions-to-take-when-youre-denied-a-credit-limit-increase">9 Actions to Take When You&#039;re Denied a Credit Limit Increase</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-put-your-spouse-on-a-budget-without-ruining-your-marriage">How to Put Your Spouse on a Budget Without Ruining Your Marriage</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-the-age-of-your-credit-history-matters">Why the Age of Your Credit History Matters</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-good-credit-is-better-than-a-boyfriend">6 Ways Good Credit Is Better Than a Boyfriend</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/73-easy-ways-to-save-money-today">73 Easy Ways to Save Money Today</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance carrying a balance credit limits credit score debts increase on time payments paying bills spending Wed, 15 Mar 2017 10:00:11 +0000 Dan Rafter 1908842 at http://www.wisebread.com Avoid These 6 Mistakes Newbies Make With Their First Credit Cards http://www.wisebread.com/avoid-these-6-mistakes-newbies-make-with-their-first-credit-cards <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/avoid-these-6-mistakes-newbies-make-with-their-first-credit-cards" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-611298896.jpg" alt="Woman making mistakes with her first credit cards" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Getting your first credit card is a financial milestone. Your credit card can become an essential tool that builds your credit and helps you manage your money. But too many credit card rookies have gotten in trouble with debt and fees, while others simply miss out on important benefits. (See also: <a href="http://www.wisebread.com/what-you-need-to-know-before-getting-your-first-credit-card-0?ref=seealso" target="_blank">What You Need to Know Before Getting Your First Credit Card</a>)</p> <p>If you are about to apply for your first credit card, or are already using it, be careful not to make these six common mistakes.</p> <h2>1. Failing to Read the &quot;Fine Print&quot;<strong> </strong></h2> <p>Getting a credit card is an important financial decision, and you need to read the details before choosing one. Thankfully, the most important terms and conditions of credit cards aren't even written in fine print anymore. By law, credit card offers must show all of the interest rates and fees in a standard format and in large print, in what's called the <a href="http://www.wisebread.com/decipher-credit-card-offers-with-the-schumer-box?ref=internal" target="_blank">Schumer Box</a>. And while you don't need to hire a lawyer to go over every single sentence, you should understand the interest rates being charged and all of the fees you could incur.</p> <h2>2. Applying for the First Offer Without Comparing Interest Rates<strong> </strong></h2> <p>When you are <a href="http://www.wisebread.com/10-questions-to-ask-before-accepting-a-credit-card-offer?ref=internal" target="_blank">considering a credit card offer</a>, you should take a close look at the standard APR (annual percentage rate) for purchases, and compare it to competing cards. Interest rates vary widely from card to card. If your account ever carries a balance (as more than 40% of all credit card accounts do), it's important to have the lowest possible interest rate. (See also: <a href="http://www.wisebread.com/the-best-low-interest-rate-credit-cards?ref=seealso" target="_blank">Best Low Interest Credit Cards</a>)</p> <h2>3. Signing Up for a Premium Rewards Card<strong> </strong></h2> <p>Just as you wouldn't want a novice driver to have an expensive luxury car, it's not a good idea for a first-time credit card user to have a <a href="http://www.wisebread.com/the-5-best-premium-credit-cards?ref=internal" target="_blank">premium rewards card</a> with a large annual fee. As a newbie user, you are unlikely to use all the benefits that account for the annual fee. It's better to look for a basic card that will let you build credit with <a href="http://www.wisebread.com/the-5-best-credit-cards-with-no-annual-fees?ref=internal" target="_blank">no annual fee</a>. (See also: <a href="http://www.wisebread.com/the-5-best-credit-cards-for-college-students" target="_blank">Best Credit Cards for Students</a>)</p> <h2>4. Missing Payments<strong> </strong></h2> <p>The primary way that credit cards differ from debit and <a href="http://www.wisebread.com/5-best-prepaid-debit-cards?ref=internal" target="_blank">prepaid cards</a> is that you have to make a payment every month. If you fail to make at least the minimum payment on time, every month, then you will usually be faced with a much higher <a href="http://www.wisebread.com/everything-you-didn-t-understand-about-credit-card-interest-grace-periods-and-penalty-aprs?ref=internal" target="_blank">penalty interest rate</a>, along with late fees. And when you repeatedly pay late, your <a href="http://www.wisebread.com/how-late-payments-affect-your-credit?ref=internal" target="_blank">credit will suffer severely</a>.</p> <p>On the other hand, you can quickly build excellent credit with a steady record of on-time payments. To make it easier to remember, sign up for email, phone, or text reminders of your due date. For even more assurance that you'll pay on time, sign up for auto-payments that clear your balance every month. Just be sure to look at your statements to make sure there are no fraudulent charges.</p> <h2>5. Making Just the Minimum Payment<strong> </strong></h2> <p>It can be tempting to pay just a little each month, but it will cost you dearly over time. The best way to use a credit card is to avoid interest charges by paying each month's statement balance in full and on time. But if you absolutely can't do that, then you should try to pay as much as possible, as early as possible. Most credit cards charge interest based on your average daily balance, so the sooner you can make a payment, and the more you can pay, the better. If you feel like you need a nudge to stay out of debt, you may consider a <a href="http://www.wisebread.com/no-limit-no-interest-whats-the-deal-with-charge-cards?ref=internal" target="_blank">charge card</a>, which has to be settled at the end of every month.</p> <h2>6. Missing Out on Benefits<strong> </strong></h2> <p>Besides being a convenient way to pay, most <a href="http://www.wisebread.com/4-surprising-reasons-to-always-use-your-credit-card?ref=internal" target="_blank">credit cards come with a lot of perks</a>, just for having the account. For example, you can receive <a href="http://www.wisebread.com/what-does-car-rental-insurance-really-cover-on-your-credit-card?ref=internal" target="_blank">free rental car insurance</a> with most credit cards, but only when you use your card to pay for the rental and decline the optional coverage that the rental company offers. Other perks featured with many credit cards include <a href="http://www.wisebread.com/how-free-extended-warranties-work-on-credit-cards?ref=internal" target="_blank">extended warranty coverage</a>, price protection, and purchase protection against theft and accidental damage. (See also: <a href="http://www.wisebread.com/10-awesome-credit-card-perks-you-didnt-know-about?ref=seealso" target="_blank">Awesome Credit Card Perks You Didn't Know About</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!&nbsp;</h2> <p>&nbsp;</p> <p style="text-align: center;"><a href="//www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Favoid-these-6-mistakes-newbies-make-with-their-first-credit-cards&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FAvoid%20These%206%20Mistakes%20Newbies%20Make%20With%20Their%20First%20Credit%20Cards.jpg&amp;description=Avoid%20These%206%20Mistakes%20Newbies%20Make%20With%20Their%20First%20Credit%20Cards" data-pin-do="buttonPin" data-pin-config="above" data-pin-color="red" data-pin-height="28"><img src="//assets.pinterest.com/images/pidgets/pinit_fg_en_rect_red_28.png" alt="" /></a> </p> <!-- Please call pinit.js only once per page --><!-- Please call pinit.js only once per page --><script type="text/javascript" async defer src="//assets.pinterest.com/js/pinit.js"></script></p> <p style="text-align: center;">&nbsp;<img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Avoid%20These%206%20Mistakes%20Newbies%20Make%20With%20Their%20First%20Credit%20Cards.jpg" alt="Avoid These 6 Mistakes Newbies Make With Their First Credit Cards" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/jason-steele">Jason Steele</a> of <a href="http://www.wisebread.com/avoid-these-6-mistakes-newbies-make-with-their-first-credit-cards">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-happens-when-your-credit-card-debt-is-charged-off">What Happens When Your Credit Card Debt Is Charged Off?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-easy-first-steps-to-paying-off-debt">7 Easy First Steps to Paying Off Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-get-all-of-the-benefits-of-your-credit-cards-and-none-of-the-costs">How to Get All of the Benefits of Your Credit Cards — and None of the Costs</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/stop-making-these-5-costly-credit-card-mistakes">Stop Making These 5 Costly Credit Card Mistakes</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-rebuild-your-credit-in-8-simple-steps">How to Rebuild Your Credit in 8 Simple Steps</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards budgeting charge cards credit mistakes credit score late payments minimum payments rewards cards spending Mon, 20 Feb 2017 10:30:32 +0000 Jason Steele 1892847 at http://www.wisebread.com 5 Ways to Prevent the Winter Blues from Busting Your Budget http://www.wisebread.com/5-ways-to-prevent-the-winter-blues-from-busting-your-budget <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-ways-to-prevent-the-winter-blues-from-busting-your-budget" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_sad_window_507633424.jpg" alt="Woman keeping SAD from destroying her budget" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Do you start feeling a bit funky once the cold weather hits? For some, seasonal change can trigger depression called seasonal affective disorder, or SAD. With SAD, your symptoms start in the fall and can continue throughout the winter months. You might feel more tired or moody than usual. You may gain weight, oversleep, or have a heavy feeling in your arms and legs.</p> <p>Though doctors don't know<em> exactly </em>what causes SAD, it might have something to do with a decrease in sunlight. Less sun can affect anything from your circadian rhythm to your serotonin and melatonin levels. The result? You don't feel yourself. And you may not maintain your usual habits in other areas of your life, like spending.</p> <p>Here's how to keep SAD from sabotaging your budget this winter &mdash; as well as some things you can do to help yourself get out of a funk on the cheap. (See also: <a href="http://www.wisebread.com/13-creative-ways-to-avoid-spending-money?ref=seealso">13 Creative Ways to Stop Spending Money</a>)</p> <h2>1. Unlink Payment Methods</h2> <p>While you might not randomly head out to the store at midnight, online shops are always open. You may have even linked your credit cards or PayPal account to your favorite store. Consider unlinking your payment methods so you'll need to pause for a moment before pushing the buy button. In the time it takes you to find your wallet, you may have second thoughts about your purchase.</p> <h2>2. Practice Self-Care</h2> <p>Instead of rushing to retail therapy to soothe yourself, consider spending time versus money. Practice self-care by doing things to ease your sadness. Take a warm bath, go for a walk, or visit YouTube to find a new yoga video. If you're having trouble thinking of what might make you feel better, try drafting up a list you can consult when you're feeling low. (See also: <a href="http://www.wisebread.com/7-online-workout-videos-for-free-or-cheap?ref=seealso">7 Online Workout Stations for Free or Cheap</a>)</p> <h2>3. Enjoy Free Stuff</h2> <p>You may also want to make a list of all the free and fun things going on in your area. Being around people is important for people who have SAD, and it can help boost your mood. Check local calendars for events that look interesting to you. Instead of buying new books or music, check them out from your library.</p> <p>And when you want to spend, try consulting with the <a href="http://www.wisebread.com/never-miss-free-ice-cream-again-complete-calendar-of-annual-free-stuff-days">Calendar of Annual Free Stuff</a> before heading out. There are many events throughout the year where you can score free food and more, allowing you to indulge without the financial guilt.</p> <h2>4. Cook Ahead</h2> <p>If you find you're spending tons of money on takeout or restaurant meals, plan ahead. You can make meals without much effort by using a Crock-Pot. Here are <a href="http://www.wisebread.com/25-great-cheap-and-easy-crock-pot-recipes">25 easy recipes</a> to get you started. And if you're really stuck on what you should consume, here's a <a href="http://www.wisebread.com/what-to-eat-every-day-a-month-of-frugal-meals">frugal meal plan</a> for every single day this month. Eating a healthy diet may even help with your SAD symptoms. (See also: <a href="http://www.wisebread.com/how-to-eat-well-on-just-20-a-week-with-meal-plans?ref=seealso">How to Eat on $20 a Week (With Meal Plans)</a>)</p> <h2>5. Reach Out</h2> <p>In the study on sadness and shopping, the researchers did discover an important link. The people who were sad were also more self-focused, which ultimately led to more spending. Thinking of others may help break the cycle. Instead of driving yourself to the mall when you're feeling down, you might call a friend to chat or meet up.</p> <h2>Easy Ways to Combat SAD</h2> <p>There are some things you can do at home to help ease your SAD symptoms. Of course, if you have concerns about your mood or health, it's always a good idea to make an appointment with your primary care physician.</p> <h3>Open Your Curtains</h3> <p>No, really. Do anything and everything you can to get more sunlight into your life. This may mean that you'll want to contact a landscaper to trim branches or bushes that are blocking light from getting into your home. Consider moving furniture, like your desk or reading chair, next to windows in your home or office.</p> <h3>Venture Outdoors</h3> <p>The weather may be frightful, but a quick walk around the block might make your day a bit more delightful. Getting in as much sun as possible can help lift your spirits. You'll be able to catch some rays even on cloudy days. Try to get outside within two hours of waking for the best results.</p> <h3>Exercise Daily</h3> <p>Moving your body is good no matter what, but for people with SAD, it's particularly important. Working out relieves stress and anxiety. These things can exacerbate SAD symptoms. Bonus points if you can exercise in the sunlight while getting in some fresh air.</p> <h3>Spend Money</h3> <p>On the right stuff, that is. There are a few products that can help with SAD. Look into buying a portable <a href="http://amzn.to/2hNmrtb">light box</a> that is made to emulate the sun. A light box works by stimulating all your eye's photoreceptors. Some people even choose to take certain supplements to ease their symptoms, including St. John's wort, SAMe, melatonin, and omega-3 fatty acids. Always consult with your doctor before starting any supplements.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-marcin">Ashley Marcin</a> of <a href="http://www.wisebread.com/5-ways-to-prevent-the-winter-blues-from-busting-your-budget">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-to-keep-anxiety-from-ruining-your-budget">5 Ways to Keep Anxiety From Ruining Your Budget</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/frugal-tip-do-not-spend-when-you-are-sad">Frugal Tip: Do Not Spend When You Are Sad</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-only-6-rules-of-frugal-living-you-need-to-know">The Only 6 Rules of Frugal Living You Need to Know</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-reasons-you-cant-focus-and-how-to-fix-it-now">12 Reasons You Can&#039;t Focus — And How to Fix It Now</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Health and Beauty Cooking depression free stuff mental illness retail therapy SAD seasonal affective disorder self care spending Thu, 05 Jan 2017 10:00:09 +0000 Ashley Marcin 1865738 at http://www.wisebread.com These 5 Expenses Will Probably Cost You a Lot Less in Retirement http://www.wisebread.com/these-5-expenses-will-probably-cost-you-a-lot-less-in-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/these-5-expenses-will-probably-cost-you-a-lot-less-in-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_bike_dog_492263352.jpg" alt="Woman finding things that cost a lot less in retirement" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>There are a lot of scary headlines out there about how poorly prepared people are for retirement. And it's hard to deny the research: Many people simply are not saving enough.</p> <p>One silver lining in the retirement funding equation, though, is that you'll probably spend less in your later years. Let's take a look at some of the most common costs that decline after exiting the workforce, along with some that may go up. (See also: <a href="http://www.wisebread.com/7-retirement-planning-steps-late-starters-must-make?ref=seealso">7 Retirement Planning Steps Late Starters Must Make</a>)</p> <h2>1. Housing Costs</h2> <p>Ideally, you'll retire your mortgage by the time <em>you</em> retire. Of course, you'll still be on the hook for property taxes and insurance, but entering retirement mortgage-free is one of the best ways to reduce the cost of living in your later years.</p> <p>You may also decide to downsize, which could cut the cost of home maintenance, repairs, and insurance, too.</p> <h2>2. Work Costs</h2> <p>If you're no longer working, you no longer have to worry about the cost of commuting, work-related clothing, or all those restaurant lunches. Plus, you'll no longer have to contribute to Social Security or Medicare as you probably had been doing via withholdings from your paycheck.</p> <h2>3. Car Costs</h2> <p>If you've been a two-car household during your career, it's possible that you could make it just fine as a one-car household in retirement, which would reduce the cost of vehicle maintenance, repairs, insurance, and gasoline. (See also: <a href="http://www.wisebread.com/you-cant-make-it-as-a-one-car-family-now-what?ref=seealso">You Can't Make It as a One-Car Family: Now What?</a>)</p> <h2>4. Saving &quot;Costs&quot;</h2> <p>It's hard to call adding money to a 401K or IRA a cost, but the reality is that once you're done working you'll probably stop contributing to your retirement accounts and start withdrawing from them.</p> <p>By the same token, if you had been stocking a 529-plan account or two with college money for your kids, hopefully they'll be done with school by the time you retire, so those &quot;costs&quot; should disappear as well.</p> <h2>5. Kid Costs</h2> <p>Speaking of kids, even though people are marrying and starting families later in life, by retirement, the kids should be on their own. Just think of all the money you've been spending on their clothing, food, activities, medical care, insurance, and more.</p> <h2>Caution: Your Retirement Spending May Change</h2> <p>While many costs may come down when you leave the workforce, keep in mind that retirement is not a homogeneous season of life. You'll probably be healthiest and most active when you're newly retired. That means some of your costs could actually go <em>up</em> right after retirement. You may spend more on travel and recreation, for example.</p> <p>Then, as you age, you'll probably become less mobile, which means eventually you'll spend less on recreational activities than before you retired.</p> <h2>The Big Unknown</h2> <p>The largest question mark looming on the retirement horizon is health care. Your monthly insurance premiums may decline once you go on Medicare. However, what about your potential need for nursing home care?</p> <p>While that's not the happiest topic to think about, it's far better to deal with it now than when you actually may <em>need </em>the care. To manage that risk, you may want to look into the cost of long-term care insurance. And keep in mind, your choice is not just between paying the high cost of as much coverage as possible or none at all. You could opt for a more affordable policy that would help with <em>some </em>of the costs, while leaving you responsible for some, as well.</p> <h2>The Bottom Line</h2> <p>The very real possibility that your living expenses will be less in retirement than they are now is not an excuse to shortchange your retirement accounts. The best approach is to run some numbers, creating pre- and post-retirement budgets based on your unique circumstances and retirement goals.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/these-5-expenses-will-probably-cost-you-a-lot-less-in-retirement">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-14"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-you-can-cut-costs-right-before-you-retire-0">6 Ways You Can Cut Costs Right Before You Retire</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-signs-its-time-to-retire">8 Signs It&#039;s Time to Retire</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-questions-couples-must-ask-before-retirement">5 Questions Couples Must Ask Before Retirement</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-red-flags-that-your-retirement-plan-may-be-off-track">4 Red Flags That Your Retirement Plan May Be Off Track</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement Cars expenses family housing costs kids saving money spending the future vehicles working Wed, 14 Dec 2016 11:00:08 +0000 Matt Bell 1852822 at http://www.wisebread.com 8 Frugal Living Skills I Wish My Parents Would Have Taught Me http://www.wisebread.com/8-frugal-living-skills-i-wish-my-parents-would-have-taught-me <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-frugal-living-skills-i-wish-my-parents-would-have-taught-me" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/kid_holding_money-486555012.jpg" alt="Kid learning frugal living skills parents didn&#039;t teach her" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>We had it great when we were kids. Zero responsibility, zero bills, zero debt &mdash; and then we grew up. Our parents tried to teach us everything they knew, but nobody's perfect, and some things we had to learn the hard way. Like how credit cards will ruin your financial life for years if you start whipping them out at 18 years old like you actually have money to pay the bill. My mistake! Take a look at these other frugal living skills I wish my parents had taught me and see if you can relate.</p> <h2>1. How to Live the &quot;Vacation&quot; Life</h2> <p>I know what this sounds like, but it's not what you think. Living the vacation life isn't about lying around on the beach every day (at least not in this sense), but rather living like you're on vacation by getting by with only the essentials.</p> <p>Rebecca Gitana, author of the minimalist blog Lifestyle Remix, explains.</p> <p>&quot;When we travel, we only pack the things we love,&quot; she says. &quot;The result is the feeling of lightness and endless possibility. Take that same concept into how you 'pack your home' &mdash; only keeping things suitable for your next great adventure.&quot;</p> <p>While I'm fairly good at purging my belongings when I no longer have use for them, I do still retain some of my hoarding roots (especially when it comes to clothing), a trait likely inherited from my parents who really enjoy their &quot;stuff.&quot; It's a habit that can be broken, however, if you can see the value all around &mdash; literally and figuratively.</p> <h2>2. It's Okay to Buy Generic</h2> <p>We never, ever bought anything generic in my house growing up, and I shop similarly today. I justify my brand-name-only purchases with the philosophy that these brands are popular and famous because their products are superior. In some cases that's true, but not always. Which is why I use my judgment when deciding what to buy generic and what to splurge on. I buy store-brand pantry staples, for instance, like flour, sugar, and spices, as well as meat and other proteins. As much as I can, I try to use coupons on brand names to hopefully bring the cost down to where the generic brand would be. Makes me feel better, at least.</p> <h2>3. Why Multi-Purpose Purchases Are Important</h2> <p>We had plenty of space in my home growing up, with an attic and a basement, so there wasn't a real need for furniture and other items that pulled double duty. I had to learn how to make the most of very small amounts of space when I moved out on my own, especially when I moved to New York City. After living in urban areas for nearly a decade, I've conditioned myself to shop for those two- or three-pronged products, like pullout sofas, storage benches, and appliances that can perform several functions.</p> <h2>4. There's No Shame in Using Coupons</h2> <p>Until very recently, my parents didn't use coupons when shopping for groceries, and I tried to get away with coupon-free shopping when I first struck out on my own. Admittedly, I didn't get very far. Like my parents, lots of folks don't use coupons for many reasons &mdash; they don't feel like hunting them down and clipping them, for instance, or they think that somehow using them makes you look like a cheapskate. Nonsense. Take it from me &mdash; the coupon king &mdash; that saving your hard-earned money on necessities like food so you have enough to pay for necessities like shelter and heat isn't being a cheapskate; it's being smart. So to hell with what other people think about how you spend your money.</p> <h2>5. How to Determine What You Need Versus What You Want</h2> <p>Yes, I'm a personal finance expert, but I'm also an avid consumer and major supporter of capitalism, which means that I can sometimes succumb to impulse buys because I think I have to have something. But when I started spending my own money on all the things I thought I'd just die without (that my parents previously bought for me), I had to step back and re-evaluate the situation. As such, I've gotten pretty good over the past 17 years that I've been financially independent, like choosing gas for my vehicle over a new pair of Nikes.</p> <h2>6. To Proceed With Extreme Caution With Credit Cards</h2> <p>Like many families, mine didn't talk about finances. My parents went to work, made the money, and we magically had everything we needed. I honestly have no idea how many credit cards they had, how much debt they were in, if they had any money in their savings accounts &mdash; so on and so forth. And I'm probably correct in assuming that you grew up similarly. Which is in part why as I became an adult, I had no idea how to manage my own money &mdash; especially when it came to credit cards. Long story short, I maxed mine out within six months of receiving them, and it took me <em>yeeeeears </em>to pay them off. Now I use credit the proper way &mdash; as an extension of the money I already have, not a put-it-off-until-you-have-it loan from the Money Gods. (See also: <a href="http://www.wisebread.com/12-habits-of-highly-responsible-credit-card-users?ref=seealso">5 Habits of Responsible Credit Card Users</a>)</p> <h2>7. How Vocational Skills Will Save You a Ton of Money</h2> <p>In all fairness, my dad tried to teach me how to fix various issues on my car as a teenager, but I just wasn't interested. As a result, now I have to pay the friendly mechanics at my neighborhood auto shop more often than I'd like. But it's not just auto skills I wish I had learned. I could've benefitted from a wealth of vocational skills, from home improvement projects to yard maintenance to electronics repair, that would have saved me a ton of money thus far and perhaps made me some if I were enterprising enough to monetize my skills.</p> <h2>8. How to Comparison Shop</h2> <p>I'll give my parents a break on this one, because when I was a kid, it wasn't an easy task to comparison shop. In fact, I think we've all learned how to do this together over the past decade or so since the Internet has made it easier. Either way, I'm a pro at it now. My new goal is to teach myself how to do it more efficiently instead of spending hours investigating the best price. How about you?</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F8-frugal-living-skills-i-wish-my-parents-would-have-taught-me&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F8%2520Frugal%2520Living%2520Skills%2520I%2520Wish%2520My%2520Parents%2520Would%2520Have%2520Taught%2520Me.jpg&amp;description=8%20Frugal%20Living%20Skills%20I%20Wish%20My%20Parents%20Would%20Have%20Taught%20Me"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/8%20Frugal%20Living%20Skills%20I%20Wish%20My%20Parents%20Would%20Have%20Taught%20Me.jpg" alt="8 Frugal Living Skills I Wish My Parents Would Have Taught Me" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/8-frugal-living-skills-i-wish-my-parents-would-have-taught-me">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-frugal-living-truths-every-stay-at-home-parent-should-know">5 Frugal Living Truths Every Stay-at-Home-Parent Should Know</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-your-kids-contribute-to-family-money-goals">Should Your Kids Contribute to Family Money Goals?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-personal-finance-skills-everyone-should-master">12 Personal Finance Skills Everyone Should Master</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-use-google-alerts-to-save-money">6 Ways to Use Google Alerts to Save Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-sibling-discounts-that-can-save-you-big">6 Sibling Discounts That Can Save You Big</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Family advice coupons financial literacy independence kids money lessons parents saving money shopping skills spending Fri, 09 Dec 2016 11:30:08 +0000 Mikey Rox 1849986 at http://www.wisebread.com Change Jars and 8 Other Clever Ways to Build an Emergency Fund http://www.wisebread.com/change-jars-and-8-other-clever-ways-to-build-an-emergency-fund <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/change-jars-and-8-other-clever-ways-to-build-an-emergency-fund" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_change_jar_73155135.jpg" alt="Woman finding clever ways to build an emergency fund" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Saving money is not easy. For many Americans, there's not much cash leftover once the bills get paid each month. Building up an emergency fund and saving for retirement is a struggle, but it's not impossible. Sometimes, it just starts with a small step.</p> <p>For example, one way to begin building an emergency fund is to place any coins you accrue into a transparent change jar. Once it's full, deposit it all into the bank. You'll find that you may have more than $100 &mdash; just from your pocket change!</p> <p>There are many other small ways to get started saving, even if it's just a few dollars at a time.</p> <p>Consider taking these small steps to building positive financial habits, and you'll start to see your bank account grow.</p> <h2>1. Track Your Spending &mdash; Every Single Penny</h2> <p>If you are having trouble saving money, you will need to take the first step of figuring out where your money is going. Develop a system to record every purchase. An online service such as Mint can help you track spending and even categorize purchases so you know exactly what you're spending money on. By doing this, you'll be able to find where you can cut costs. Information is power. (See also:<a href="http://www.wisebread.com/start-saving-more-with-this-one-simple-tool?ref=seealso"> Start Saving More With This One, Simple Tool</a>)</p> <h2>2. Reduce Your Spending on a New Category Each Month</h2> <p>Once you've figure out where your money is going, it's time to decide what you can cut. If you've categorized your spending, pick one category and vow to reduce spending from one month to the next. For example, tackle your restaurant spending in January. In February, look for ways to reduce your cellphone bill. In March, cancel your cable television. By year's end, you'll have slashed spending on 12 things, and will be well on your way to saving money.</p> <h2>3. Put Away Any Extra Money You Receive</h2> <p>Did you get a bonus or raise from your company? Don't spend it, but put it in the bank instead. If your expenses are the same, then any new money you get should go directly into savings. This also goes for any prize winnings, unexpected refunds or rebates, or cash found in the pocket of that jacket you haven't worn since last winter. This may be only a few bucks here and there, but it adds up and gets you in the habit of not spending every new dollar you get.</p> <h2>4. Track When You Don't Spend</h2> <p>You might pass five coffee shops every time you walk to work. You stare at candybars and magazines at every supermarket aisle. You're bombarded with targeted Facebook ads and circulars in the mail. It's almost impossible to avoid parting with your money. But what if you made a note of every time you passed by that coffee shop without stopping in for a $4 latté? What if you gave yourself points for every time your willpower won? Eventually, resisting the urge to spend might be an easy habit.</p> <h2>5. Open an Online Savings Account and Set Up Automatic Transfers</h2> <p>You can't spend money if you never have it in your hand to begin with. If you set up an automatic transfer of cash into an online savings account &mdash; preferably one not tied to your ATM card &mdash; you'll be setting aside money before it ends up in your wallet. Start with a modest amount, maybe $25 a month, then see if you can gradually increase that. Before you know it, you'll have a nice sum of money that can serve as your emergency fund.</p> <h2>6. Open Your 401K and Hit the Company Match</h2> <p>If your company offers a retirement plan, there's no good excuse not to take part. Money you contribute is deducted from your taxable income, and it's usually taken directly from your paycheck, so there's no easy way to spend it on silly stuff. Most companies offer to match contributions up to a certain percent. Do your best to contribute up to the match, if possible, and increase your contributions by a percent each year.</p> <h2>7. Pack Your Lunch</h2> <p>This is a tough one for a lot of people. After all, who wants to eat a lame homemade sandwich when they can go out to that new gourmet burrito place with their colleagues? But it's time to get over your fear of the &quot;sad lunch&quot; and recognize that it's a big money saver. Any back-of-the-envelope calculation will reveal that packed lunches can save you hundreds or even thousands of dollars a year. If you're struggling to figure out where you can save money, this is a great place to start.</p> <h2>8. Tweak the Thermostat</h2> <p>We all like to keep our house at the perfect temperature, but we can all get use to things being a degree or two warmer in the summer or slightly cooler in winter. If you're setting the thermostat to 70 in summer, try bumping it up to 72. When it's chilly outside, keep things at 68 or even cooler. And don't forget about tweaking it further when you are not home. The U.S. Department of Energy says you can save as much as <a href="http://energy.gov/energysaver/thermostats">10% on your energy bills</a> just by adjusting the thermostat by seven to 10 degrees for eight hours each day.</p> <h2>9. Use a Credit Card With Cash Back</h2> <p>It's best to use credit cards sparingly when you're looking to save. But if you do use credit cards, making sure you get something in return. Do some research to find the cards with the best rewards. Some offer straight <a href="http://www.wisebread.com/5-best-cash-back-credit-cards?ref=internal">cash back on every purchase</a>. Others offer <a href="http://www.wisebread.com/5-best-credit-cards-that-transfer-points-to-airline-miles?ref=internal">points at airlines</a> or specific retailers. Find the one that best suits you, and watch that money accrue. Even if you get a mere 1% cash back on purchases, that could add up to hundreds of dollars annually. (See also: <a href="http://www.wisebread.com/cash-back-vs-travel-rewards-pick-the-right-credit-card-for-you?ref=internal">Cash Back vs Travel Rewards: Pick the Right Credit Card for You</a>)</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/change-jars-and-8-other-clever-ways-to-build-an-emergency-fund">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. 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