spending http://www.wisebread.com/taxonomy/term/247/all en-US 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-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-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/11-budgeting-skills-everyone-should-master">11 Budgeting Skills Everyone Should Master</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/never-borrow-money-for-these-5-buys">Never Borrow Money for These 5 Buys</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/7-easy-ways-to-budget-for-summer-vacation">7 Easy Ways to Budget for Summer Vacation</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/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> </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-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/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/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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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-ways-meditation-can-make-you-a-money-master">6 Ways Meditation Can Make You a Money Master</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/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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/6-ways-meditation-can-make-you-a-money-master">6 Ways Meditation Can Make You a Money Master</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-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/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-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/the-5-best-pet-cameras">The 5 Best Pet Cameras</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-drones-for-beginners">The 5 Best Drones for Beginners</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/50-ways-to-save-money-on-clothing">50 Ways to Update Your Wardrobe for Cheap</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-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/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/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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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-meditation-can-make-you-a-money-master">6 Ways Meditation Can Make You a Money 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/10-reasons-to-cut-millennials-some-slack-about-their-money">10 Reasons to Cut Millennials Some Slack About Their Money</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-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/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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-you-need-to-know-the-difference-between-secured-and-unsecured-debts">Why You Need to Know the Difference Between Secured and Unsecured Debts</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/6-ways-meditation-can-make-you-a-money-master">6 Ways Meditation Can Make You a Money 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/12-money-moves-to-make-the-moment-you-decide-to-retire">12 Money Moves to Make the Moment You Decide to Retire</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/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-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/10-things-you-need-to-know-before-taking-out-a-personal-loan">10 Things You Need to Know Before Taking Out a Personal Loan</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-determine-if-your-finances-are-ready-for-a-big-purchase">How to Determine If Your Finances Are Ready for a Big Purchase</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/47-simple-ways-to-waste-money">47 Simple Ways To Waste Money</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-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/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-2 views-row-even"> <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-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-determine-if-your-finances-are-ready-for-a-big-purchase">How to Determine If Your Finances Are Ready for a Big Purchase</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-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/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/eight-natural-ways-to-make-water-more-flavorful">Eight Natural Ways to Make Water More Flavorful</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/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> <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/10-ways-to-relieve-your-money-stress">10 Ways to Relieve Your Money Stress</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-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/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/11-budgeting-skills-everyone-should-master">11 Budgeting 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/what-to-do-if-youre-retiring-with-debt">What to Do If You&#039;re Retiring With Debt</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-help-your-kid-build-their-first-budget">How to Help Your Kid Build Their First Budget</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-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/12-personal-finance-skills-everyone-should-master">12 Personal Finance Skills Everyone Should Master</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/7-frugal-living-skills-you-should-be-teaching-your-children">7 Frugal Living Skills You Should Be Teaching Your Children</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-sibling-discounts-that-can-save-you-big">6 Sibling Discounts That Can Save You Big</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/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> </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. 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/7-nice-ways-to-tell-your-spendy-friends-youre-staying-on-budget">7 Nice Ways to Tell Your Spendy Friends You&#039;re Staying on 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/47-simple-ways-to-waste-money">47 Simple Ways To Waste 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/10-ways-to-save-money-when-you-are-unemployed">10 Ways to Save Money When You Are Unemployed</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/build-a-better-budget-in-5-minutes-flat">Build a Better Budget in 5 Minutes Flat</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Budgeting baby steps cash back change jar emergency fund extra money pennies reduce spending saving small steps spending Mon, 17 Oct 2016 10:30:10 +0000 Tim Lemke 1813254 at http://www.wisebread.com Are You Spending Too Much on Halloween This Year? http://www.wisebread.com/are-you-spending-too-much-on-halloween-this-year <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-you-spending-too-much-on-halloween-this-year" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/dog_halloween_costume_96975833.jpg" alt="Wondering if you&#039;re spending too much on Halloween this year" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>According to the National Retail Federation (NRF), more than 171 million Americans will celebrate Halloween this year at a <a href="https://nrf.com/media/press-releases/halloween-spending-reach-84-billion-highest-survey-history">total cost of about $8.4 billion</a> &mdash; an all-time high.</p> <p>Broken down, the price tag for each person is estimated to be an average of $82.93, up from last year's $74.34. But we all know that number goes right out the window if you're a fright-night fanatic. At least mine does &mdash; on candy and costume and festivities alone. Tack on decorations, greeting cards, and pet costumes to the list (the latter of which has become BIG business to the tune of $350 million a year), and you can easily spend $100 to $200 on Halloween &mdash; a hefty price tag for what's generally considered to be a &quot;kid&quot; holiday.</p> <p>Ward off such wickedness this October 31 by checking your receipts for hidden spending gremlins.</p> <h2>1. Decorations</h2> <p>The National Retail Federation found that 70% of Halloween shoppers plan to purchase decorations, spending $2.4 billion, while 49% &mdash; likely many of the same respondents &mdash; say they'll decorate their homes or yards. This certainly can become problematic if you're buying new, full-price decorations to add to your collection every year, but there are ways to lessen the cost.</p> <p>My method, for instance, is to buy new items postseason. I never purchase any holiday decorations, Halloween or otherwise, while the season is in full swing. Even if discounts are available (Target reels you in with discounts throughout the season on its Cartwheel app, for example), you'll pay a fraction of even those discounted prices if you wait until November 1 or a couple days after to snag what's left of the haul. Granted, you may not find high-end items like yard inflatables or animatronic monsters, but I'm usually able to add a few smaller decorations to my overall Halloween aesthetic. Outdoor holiday lights and party supplies also are in abundance on clearance the day after.</p> <h2>2. Greeting Cards</h2> <p>A whopping $390 million is spent on Halloween greeting cards every year, purchased by 35.4% of Halloween shoppers. This might not makes sense to some of you, but anybody who has children in their lives &mdash; specifically nieces, nephews, and grandchildren &mdash; will recognize how Hallmark and American Greetings continue to make a killing (mostly because of the guilt we feel for not actually being present to celebrate with them), especially when you consider that the average cost of greeting cards hovers around $5. In fact, I've known people who have spent upward of $18 on a single fancy greeting card; they've been drinking too much witches' brew, for sure.</p> <p>I cut costs on greeting cards for my own nephews by either buying them a year in advance like I do decorations &mdash; and I've walked away with cards at a whopping 90% off the day after Halloween &mdash; or forgoing the card altogether. Because based on my own personal experience, I can absolutely confirm that children don't care about the card whatsoever when there's also candy in the package. Skip it and it'll never be missed.</p> <h2>3. Candy</h2> <p>Okay, now we're getting into serious Halloween territory. Candy &mdash; the crux of the entire bloody celebration &mdash; rakes in an incredible $2.5 billion in September and October alone, with 94.3% of consumers surveyed by the NRF breaking out their wallets for the sugary-sweet treats.</p> <p>And it's not cheap. The average person will spend $24.43 on candy this year, which represents a big chunk of the total Halloween spend average of $82.93. It's easy to see how it gets there though. Premium chocolate brands, like Hershey's, Mars, M &amp; M's, and Reese's, are priced between $10 and $12 per large bag featuring kids/snack size servings. I've seen the per-pound cost of some of these bags between $5 and $7, which is rather expensive for run-of-the-mill chocolate.</p> <p>But therein lies your savings tip: Before I purchase any bag of candy, I compare the number of pieces in the bag/how much the bag weighs with the price-per-pound designation listed on the price tag on the store shelf. Most of them have these. While larger bags may seem like the best value, often the smaller bags are more economical, comparatively.</p> <p>Let's not forget, either, that you're paying for packaging and holiday marketing when you buy holiday food/candy &mdash; the brands factor in the cost of unsold post-holiday items into the cost of the bag you're buying &mdash; which means that you'll save even more if you purchase the everyday bags in the regular candy aisle opposed to those in the seasonal food section. Of course, you can reduce the price even further with app savings and coupons.</p> <h2>4. Human Costumes</h2> <p>Outside of candy, the other major Halloween expense is costumes, which takes up the biggest portion of the holiday-spending pie at $3.1 billion.</p> <p>When it comes to costumes, we're already fairly savvy: 35% of costume shoppers search for the perfect outfit online, where you can find great costumes at reasonable or even discounted prices, while 29% shop in store, likely at pop-up shops like <a href="http://www.spirithalloween.com/">Spirit Halloween Superstores</a>. (I receive discounts galore at Halloween by being on their email list.)</p> <p>What's even more heartening from a savings standpoint is that many of us rely on social media (34%), friend and family (19%), pop culture (16%), and print media (14%) for costume ideas, the pieces for which we look for in our own closets or thrift stores.</p> <p>Again, I've saved a bundle picking up full costumes, odds and ends, and accessories after the holiday; Spirit goes out of business for the year, end of day November 1, but you can snag tons of great stuff that day. I keep all those items in a box to piece meal a costume together the next year.</p> <p>Another smart idea is to swap costumes and accessories among friends. Somebody in your circle may have just what you're looking for &mdash; Facebook is an excellent way to find out &mdash; so you don't have to shell out for one-use-only items.</p> <h2>5. Pet Costumes</h2> <p>We love our pets. So much so that 20 million of us are willing to fork over a combined $350 million to dress up our furbabies as waggy-tailed ghouls and goblins.</p> <p>I admit that I've dressed up my own dog for a celebration at the dog park or for a neighborhood parade, but I'll let you in on a little secret: He doesn't like it one bit. And it stands to reason that yours probably doesn't either. Which is why I don't do it anymore.</p> <p>Even a discounted costume is a waste, in my opinion, because if the dog doesn't destroy it trying to get it off, it'll get filthy when your pet rolls around in the dirt and other dogs' poop in hopes of sending you a message to stop humiliating it in public. Thus, if you're looking to shave real money off your Halloween expenditures this year, cut out the pet costume altogether (or reuse the filthy one). No sleep will be lost, least of all by your slobbery companion.</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/are-you-spending-too-much-on-halloween-this-year">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/the-big-list-of-money-saving-coupon-codes-for-halloween-2016">The Big List of Money-Saving Coupon Codes for Halloween 2016</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-ways-to-make-money-on-halloween">15 Ways to Make Money on Halloween</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/flashback-friday-85-best-ways-to-save-on-halloween-this-year">Flashback Friday: 85 Best Ways to Save on Halloween This Year</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/3-smart-ways-to-save-on-fathers-day">3 Smart Ways to Save on Father&#039;s Day</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-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Entertainment Shopping budgeting candy costumes decorations Halloween Holidays pets saving money spending Mon, 17 Oct 2016 10:00:09 +0000 Mikey Rox 1813149 at http://www.wisebread.com Rich People Spend $350K+ to Park Their Cars — Here's How We'd Spend it Instead http://www.wisebread.com/rich-people-spend-350k-to-park-their-cars-heres-how-wed-spend-it-instead <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/rich-people-spend-350k-to-park-their-cars-heres-how-wed-spend-it-instead" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/fancy_sports_car_91447401.jpg" alt="Spend $350K on this instead of parking fancy cars" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I came across a news report recently about the construction of a <a href="http://money.cnn.com/2016/09/14/luxury/autohouse-car-condo-miami/index.html">luxury condominium for cars</a>. It will allow people with fancy cars to park their vehicles in a secure environment, at the reasonable cost of just $350,000.</p> <p>Yes, $350,000 for a place to park.</p> <p>Suffice it to say, we can think of smarter things to do with $350,000. If you are lucky enough to have this kind of cash available to you, consider these alternative and sensible ways to spend your money.</p> <h2>1. Bolster That Emergency Fund</h2> <p>Before you shell out thousands of dollars for that custom-made personal watercraft, ask yourself if you'd have enough cash left to pay for a major medical bill if you got hurt. Or a hot water heater if it leaked all over your basement. Ask yourself how long you could get by if you lost your job. It's bad to blow money on unnecessary things. It's even worse to blow that money when you have nothing saved for a rainy day. Make sure you have <em>at least</em> three months of living expenses in liquid savings before you make any crazy purchases.</p> <h2>2. Pay Off High-Interest Debt</h2> <p>If you have money, there's no real excuse for carrying high-interest debt, such as that from credit cards. Interest from debt can erode your net worth, so pay off as much as you can. Focus on paying down the debts with the highest interest rates and go from there.</p> <h2>3. Contribute Maximum Toward Retirement</h2> <p>If you have a high income, there's no reason to hold back on putting as much into your retirement funds as possible. Those with 401K accounts can contribute up to $18,000 per year, and anyone with earned income can contribute $5,500 annually into an individual retirement account. Both of these accounts allow you to invest and see your money grow in a tax advantaged way. Focus on investments that mirror the overall performance of the stock market, and you'll see your money grow without much stress. Maxing out retirement funds may very well be the least frivolous thing to do with your money.</p> <h2>4. Invest Even More</h2> <p>Okay, so you've maxed out the amount you can place in retirement accounts. That doesn't mean you can't continue to invest! If you have the funds, consider buying stocks, mutual funds, and exchange-traded funds in a traditional brokerage account. You will have to pay taxes on any gains, but if you're investing for the long haul, you'll still come out well ahead in most cases.</p> <h2>5. Go to College</h2> <p>The best kind of investment is an investment in yourself. If you have enough money to pay for college, go for it! A typical person with a bachelor's degree <a href="https://trends.collegeboard.org/education-pays/figures-tables/lifetime-earnings-education-level">earns 66% more</a> over the course of their lifetime than someone who does not got to college, according to the College Board. And the earnings get even higher for those with advanced degrees. If you've already been to college, consider opening a college savings account for your children or another relative who's college-bound. Most states offer 529 plans that allow you to invest money without paying tax on the gains, provided that the money is later used for education expenses.</p> <h2>6. Buy a Home (Or a Second One)</h2> <p>If you're sitting on a sizable sum of money, it might make sense to put some toward a down payment on a house or other piece of real estate. It's better than renting, because you're building equity and may be able to even sell the real estate later at a profit. If you already own a home, consider buying a second and renting it out. This way, you not only get the benefits of real estate ownership, but an additional income stream as well. This sure beats cars or other material items that don't accrue in value.</p> <h2>7. Do Some Home Maintenance and Upgrades</h2> <p>Maybe it's time for a new roof, or your furnace has been on the fritz. Maybe you've always wanted to turn the basement into a nice family room. If you invest a little money into your home, you can stave off expensive repairs later, and any upgrades you make could increase your home value.</p> <h2>8. Give Some Away</h2> <p>$350,000 is a fair chunk of change, so why not give some away to a cause that you support? Remember that all charitable donations are tax deductible, so there's a financial benefit to giving away cash rather than spending it on something silly.</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/rich-people-spend-350k-to-park-their-cars-heres-how-wed-spend-it-instead">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/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</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-ways-to-increase-your-net-worth-this-year">10 Ways to Increase Your Net Worth This Year</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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/dont-let-outdated-money-advice-endanger-your-money">Don&#039;t Let Outdated Money Advice Endanger Your 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/10-reasons-to-cut-millennials-some-slack-about-their-money">10 Reasons to Cut Millennials Some Slack About Their Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Budgeting 401k charity debt emergency funds investing IRA luxury money retirement spending Thu, 13 Oct 2016 09:30:20 +0000 Tim Lemke 1811799 at http://www.wisebread.com 9 Smart Money Moves to Make Before the Holiday Season Begins http://www.wisebread.com/9-smart-money-moves-to-make-before-the-holiday-season-begins <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-smart-money-moves-to-make-before-the-holiday-season-begins" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/couple_christmas_shopping_51383450.jpg" alt="Couple making money moves before the holiday season" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Fall is in full swing, and before you know it you'll be battling the throngs during holiday shopping season.</p> <p>It may be make or break for many retailers, but it can also be challenging for consumers if they don't do a little bit of planning. Making just a handful of minor financial and lifestyle moves before Christmas and other winter holidays hit can save you money and aggravation later.</p> <p>Here are nine tips for getting yourself straightened out before the holiday rush.</p> <h2>1. Push Money Into a Savings Account</h2> <p>If you want to avoid racking up more credit card debt, it will help to have some cash set aside to pay for holiday gifts. Consider using an online savings account and making an automatic transfer from your usual checking account each month until the end of November. Even $100 a month saved between now and Thanksgiving will give you $200 (plus a little bit of interest) to spend.</p> <h2>2. Check the Sales Now</h2> <p>We all know about Black Friday sales, but the reality is that stores place deep discounts on items throughout the year. There's no guarantee that a particular product will be at its cheapest on the day after Thanksgiving or any other day leading up to Christmas. Remember that many stores will roll out Veterans Day and Columbus Day sales, and you may find great deals on clothing at the end of summer when stores are looking to unload inventory and bring in fall and winter items.</p> <h2>3. Pay Off Your Credit Cards</h2> <p>Holiday shopping can be a debt creator. The National Foundation for Credit Counseling reported last year that there is a 25% spike in the number of people seeking help with credit card bills in January and February. If you are already paying the minimums on cards or have high debt, the addition of holiday shopping bills can be crippling.</p> <p>High debt can leave you at risk of maxing out credit limits. At the very least, your <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?ref=internal">ratio of debt to available credit</a> could rise, thus hurting your credit score. Pay down your current debts now, so that any new debt won't be adding to an existing problem.</p> <h2>4. Find Stores With Layaway</h2> <p>For people who want to avoid credit card debt, layaway can be a great option for holiday shopping. With layaway, you can put an item aside at the store and receive it only when it is totally paid for. Many stores offer layaway months before the holidays, so you can select items now and have them paid off in time. Walmart this year began offering layaway on September 2. Kmart has eight-week and 12-week layaway plans now, and Toys R Us has 90-day layaway contracts. One caveat: Some stores do charge fees for layaway services, so be sure to read the fine print before signing up.</p> <h2>5. Track Down Any Money Owed to You</h2> <p>Have you been diligent about seeking reimbursement for work-related expenses? Have you received all money you've earned from freelance work? Now is the time to assess what outstanding cash is due to you. If money is tight, this could help you afford the gifts you want this holiday season.</p> <h2>6. Max Out Your Retirement Accounts</h2> <p>If you have access to retirement accounts, try to put as much money in them now as you can. You can contribute as much as $18,000 annually into a 401K plan and $5,500 into an IRA. The closer you get to these limits, the better off you'll be in retirement. You have until Tax Day next year to max out these accounts, but it may be best to contribute generously now before holiday expenses hit.</p> <h2>7. Make Sure Your W-4 Is Up to Date</h2> <p>If you work for a company, you probably filled out a W-4 form when you were hired. This form tells the IRS how much in taxes to withhold from your paycheck. But it often needs to be updated, particularly when you have gotten married, added a child to the family, or had a significant change in household income. Now is the time to check your W-4 to see that you aren't paying too much or too little in taxes.</p> <h2>8. Do Some Tax Loss Harvesting</h2> <p>If you sold shares of stock at any point during the year, you may be on the hook for capital gains taxes. But you may be able to avoid a tax bill by selling other shares of stock at a loss. In essence, the loss may outweigh the gains. There's nothing wrong with taking the proceeds from a sale and investing right back into the market, as long as you're not investing in the exact same securities. It might make sense to do some tax loss harvesting now, before the holiday rush hits and you forget.</p> <h2>9. Get Your Cars in for Servicing</h2> <p>Wait, what do your cars have to do with the holiday season? Well, car repairs are often a big source of unexpected expenses. And the last thing you want is hundreds or even thousands of dollars in bills right when you're doing the holiday shopping. Get your car in now, and you'll avoid a hefty expense later. Moreover, you'll be less likely to have the car breakdown in unpleasant, winter weather.</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-smart-money-moves-to-make-before-the-holiday-season-begins">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/10-ways-to-tidy-up-your-finances-before-the-holidays">10 Ways to Tidy Up Your Finances Before the Holidays</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-big-list-of-money-saving-coupon-codes-for-halloween-2016">The Big List of Money-Saving Coupon Codes for Halloween 2016</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/heres-how-to-monetize-your-unwanted-gifts">How to Get Rid of Your Unwanted Gifts and Make Money Too</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-smart-reasons-to-last-minute-holiday-shop">9 Smart Reasons to Last-Minute Holiday Shop</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/flashback-friday-160-gift-ideas-for-everyone-you-know">Flashback Friday: 160 Gift Ideas for Everyone You Know</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Shopping Christmas debt Holidays layaway retirement contributions sales saving spending taxes Mon, 03 Oct 2016 09:00:05 +0000 Tim Lemke 1803457 at http://www.wisebread.com