spending http://www.wisebread.com/taxonomy/term/247/all en-US 5 Signs Your Budget Needs a Makeover (And How to Do It) http://www.wisebread.com/5-signs-your-budget-needs-a-makeover-and-how-to-do-it <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-signs-your-budget-needs-a-makeover-and-how-to-do-it" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young_asian_woman_working_at_her_desk.jpg" alt="Young Asian woman working at her desk" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You've been trying to use a budget, but it isn't going so well. Don't give up just yet: Before you throw in the towel, see if any of the following five issues (and remedies!) might pertain to your situation. If so, a budget makeover may be in the cards.</p> <h2>1. You keep busting your budget</h2> <p>The first step in creating a budget is setting targets for each spending category &mdash; how much you'll save, give, and spend on everything from groceries to gifts. If you're new to budgeting, it's pretty common to get to the end of a month only to discover how drastically different your real-world spending is from your planned spending.</p> <p>Don't despair. Either you set unrealistic targets, or there may be ways to better manage your spending. Very likely, making your budget balance will require some of both.</p> <p>What to do? Give yourself some slack. See the first few months of using a budget as a time of learning. If you're tracking your spending for the first time, this is a great opportunity to find out how much you really do typically spend in each category. Don't beat yourself up about it; learn from it.</p> <p>In some categories, such as groceries, there's a certain reality to how much it costs to feed a family your size. If you're a family of five, $400 a month for groceries probably isn't enough. In other categories, there may be opportunities to be more intentional and creative in finding ways to spend less.</p> <p>Accept the fact that it usually takes several months to figure out realistic spending targets and build new money-saving spending habits. (See also: <a href="http://www.wisebread.com/stop-using-these-5-excuses-not-to-budget?ref=seealso" target="_blank">Stop Using These 5 Excuses Not to Budget</a>)</p> <h2>2. You don't realize you're busting your budget until it's too late</h2> <p>A common budgeting mistake is only reviewing how you're doing at the end of each month. By then, it's too late for course corrections.</p> <p>An important key to successful budgeting is managing to the numbers. That requires looking at how your actual spending compares to your planned spending throughout the month. Before heading to the grocery store, it helps a lot to know how much of this month's food budget you've already spent. If it's getting tight, you can focus on buying only the essentials.</p> <p>It's the same with every category. Knowing where you are with your entertainment budget can help you make budget-appropriate plans for the weekend. Got plenty of room left? Make dinner reservations at that new restaurant you've wanted to try. Getting close to your limit? Rent a movie and stay in. (See also: <a href="http://www.wisebread.com/5-common-budget-mistakes-you-can-fix-right-now?ref=seealso" target="_blank">5 Common Budget Mistakes You Can Fix Right Now</a>)</p> <h2>3. Maintenance and repair costs are busting your budget</h2> <p>Two expenses that commonly catch people by surprise are home maintenance or repairs and car maintenance or repairs. Many people don't even have these categories in their budget.</p> <p>While expenses vary, depending on the age and condition of your home and car, some good general guidelines are to budget $75 per vehicle per month and $200 per month for your home. Some months, you'll spend far less in these categories, but some months you'll spend a lot more. Putting these amounts in your budget will help make sure you have money available when the need arises.</p> <p>In those months when you don't spend your full budgeted amounts, you could let the money build up in your checking account. Or, consider them periodic expenses, as described next. (See also: <a href="http://www.wisebread.com/where-to-find-emergency-funds-when-you-dont-have-an-emergency-fund?ref=seealso" target="_blank">Where to Find Emergency Funds When You Don't Have an Emergency Fund</a>)</p> <h2>4. Periodic expenses are busting your budget</h2> <p>Everyone has expenses &mdash; sometimes, big expenses &mdash; that don't occur every month, but do occur sometime throughout the year. Examples include an annual life insurance premium, a semiannual vehicle insurance premium, vacations, and end-of-year holiday gifts. If you haven't planned ahead, they can really mess with your budget.</p> <p>To avoid that, estimate how much you're likely to spend in each periodic expense category on an annual basis, divide by 12, and transfer the total of all such expenses into a dedicated savings account each month. That will help ensure the money is there when needed. (See also: <a href="http://www.wisebread.com/stop-making-these-7-basic-budget-mistakes?ref=seealso" target="_blank">Stop Making These 7 Basic Budget Mistakes</a>)</p> <h2>5. Your spouse is busting your budget</h2> <p>With many couples, one person is usually more interested in using a budget than the other. It's OK for that person to take the lead in designing and managing the household budget. But some budget-minded spouses take this too far and leave their spouse out of all budgetary matters completely. That's a recipe for a busted budget, and probably a lot of arguments.</p> <p>After all, how can a spouse who had no say in deciding how much to spend on groceries or clothing or anything else be expected to manage to those numbers? That's why it's important to make sure you're on the same page as your spouse. Work together to decide what financial goals to pursue and how that translates into monthly spending priorities. (See also: <a href="http://www.wisebread.com/how-to-put-your-spouse-on-a-budget-without-ruining-your-marriage?ref=seealso" target="_blank">How to Put Your Spouse on a Budget Without Ruining Your Marriage</a>)</p> <h2>Wrapping up</h2> <p>Budgeting is not a perfect science. Goals and circumstances change, so build in some flexibility and grace, and give it some time. Expecting to hit some snags along the way can help you stick with your budget long enough to get it running smoothly.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-signs-your-budget-needs-a-makeover-and-how-to-do-it&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Signs%2520Your%2520Budget%2520Needs%2520a%2520Makeover%2520%2528And%2520How%2520to%2520Do%2520It%2529.jpg&amp;description=5%20Signs%20Your%20Budget%20Needs%20a%20Makeover%20(And%20How%20to%20Do%20It)"></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%20Signs%20Your%20Budget%20Needs%20a%20Makeover%20%28And%20How%20to%20Do%20It%29.jpg" alt="5 Signs Your Budget Needs a Makeover (And How to Do It)" 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/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/5-signs-your-budget-needs-a-makeover-and-how-to-do-it">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-minute-finance-track-your-spending">5-Minute Finance: Track Your Spending</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-common-budget-mistakes-you-can-fix-right-now">5 Common Budget Mistakes You Can Fix Right Now</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/to-change-the-bulb-just-remove-the-bumper-wait-what">To change the bulb, just remove the bumper. Wait, what? - UPDATED.</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-budgeting-skills-everyone-should-master">11 Budgeting Skills Everyone Should Master</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-sites-and-apps-to-help-you-track-your-spending-and-stick-to-your-budget">10 Sites and Apps to Help You Track Your Spending and Stick to Your Budget</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting budget makeover budget mistakes expenses maintenance periodic expenses repairs spending spouse tracking Tue, 24 Apr 2018 08:30:10 +0000 Matt Bell 2130617 at http://www.wisebread.com 5-Minute Finance: Track Your Spending http://www.wisebread.com/5-minute-finance-track-your-spending <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-minute-finance-track-your-spending" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_hand_pressing_calculator_and_doing_finance.jpg" alt="Woman hand pressing calculator and doing finance" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>How often do you find yourself in the red at the end of each month, wondering where all your money went? If you're like many Americans, living paycheck to paycheck with too much debt and too little savings is your normal. But it doesn't have to be. There is a solution that can pull you out of your mindless spending habits, and it's a simple one; tracking your money.</p> <h2>What is tracking?</h2> <p>Tracking your finances is the act of writing down or digitally logging everything you spend for the month. This includes every expense, big and small, from your mortgage payment to that $2 soda you bought on a whim.</p> <p>The goal is to find out how much you are spending compared to how much income you are bringing home. If you spend more than your monthly paychecks, you are probably relying on credit cards to fill the gap, which is driving you further into debt. If you are spending exactly what you make, you are not leaving yourself enough room in your budget to build an emergency fund, save for retirement, or pay down debt.</p> <p>Think of tracking as a checkup for your finances. You need to see what your current financial state is so that you can improve it.</p> <h2>Why you should track your spending</h2> <p>If you constantly feel that you don't have enough cash each month, tracking solves the mystery of where your money is going. It'll show you the areas of your life where you are overspending or spending foolishly. Knowing where your money is going will allow you to address poor spending habits and get serious about financial goals, whether that be saving money for a down payment on a home or paying off your vehicles early.</p> <p>There is a chance that you will discover that you cannot afford your current lifestyle. If you are only spending on the essentials and still don't have enough money to cover everything, you will either need to find a job that earns more money, take on a second job, or downgrade your current lifestyle. You may have to move into a smaller home, take your children out of private school or their costly extracurricular activities, or trade in pricey vehicles for more affordable ones. This is not the enjoyable side of tracking, but ignoring the facts will not make your situation easier or better.</p> <h2>How to start tracking your spending</h2> <p>There are several ways to track your spending, either with pen and paper, with simple computer programs like Excel, or with an app designed for tracking. The best method is the one you will use diligently.</p> <h3>For paper tracking</h3> <p>Any journal or notebook will work. You can also purchase an affordable <a href="https://amzn.to/2ujiCmS" target="_blank">expense tracker</a> with designated pages that make it easier to keep track of bills and spending. Free tracking printables are available at <a href="http://www.queenoffree.net/free-printables/free-printable-budget-forms/" target="_blank">Queen of Free</a> and <a href="https://www.simplyunscripted.com/2018-budget-binder/" target="_blank">Simply Unscripted</a>.</p> <h3>For computer tracking</h3> <p>A free Excel spreadsheet template may be all you need. <a href="https://www.smartsheet.com/top-excel-budget-templates" target="_blank">Smart Sheets</a> and <a href="https://christianpf.com/10-free-household-budget-spreadsheets/" target="_blank">SeedTime</a> have free downloadable templates you can use.</p> <p>If you prefer software to help you do your tracking, <a href="https://www.youneedabudget.com/" target="_blank">You Need a Budget</a> is easy to use and allows you to input expenses manually. It does cost $83.99 a year, but you can try it free for 34 days. <a href="https://www.personalcapital.com/" target="_blank">Personal Capital</a> is a free program that connects to your financial accounts directly and shows you how much money you are spending in certain areas.</p> <h3>For mobile tracking</h3> <p><a href="https://www.mint.com/" target="_blank">Mint</a> is a popular free app that pulls info from your financial accounts automatically to make tracking easier. It also comes with a computer interface if you prefer to use it that way.</p> <p>The <a href="https://budgt.ch/" target="_blank">BUDGT</a> app is designed for those on small budgets and helps them get a better picture of their day by day spending.</p> <h2>Next steps</h2> <p>Once you know how much you are spending each month, you can find areas of your budget where you can make cuts. Cutting back on unnecessary spending will give you some breathing room to devote more money to debt, establish an emergency fund, or build a savings account.</p> <h2>Additional resources</h2> <ul> <li> <p><a href="http://www.wisebread.com/these-5-apps-will-help-you-finally-organize-your-money?ref=seealso" target="_blank">These 5 Apps Will Help You Finally Organize Your Money</a></p> </li> <li> <p><a href="http://www.wisebread.com/5-online-tools-to-manage-your-money-in-under-10-minutes-a-week?ref=seealso" target="_blank">5 Online Tools to Manage Your Money in Under 10 Minutes a Week</a></p> </li> <li> <p><a href="http://www.wisebread.com/stop-using-these-5-excuses-not-to-budget?ref=seealso" target="_blank">Stop Using These 5 Excuses Not to Budget</a></p> </li> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-minute-finance-track-your-spending&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5-Minute%2520Finance_%2520Track%2520Your%2520Spending.jpg&amp;description=5-Minute%20Finance%3A%20Track%20Your%20Spending"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> </ul> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5-Minute%20Finance_%20Track%20Your%20Spending.jpg" alt="5-Minute Finance: Track Your Spending" width="250" height="374" /></p> <p>&nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-eneriz">Ashley Eneriz</a> of <a href="http://www.wisebread.com/5-minute-finance-track-your-spending">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/11-budgeting-skills-everyone-should-master">11 Budgeting 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/this-japanese-budgeting-system-could-be-the-key-to-saving-big-bucks">This Japanese Budgeting System Could Be the Key to Saving Big Bucks</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-no-budgeting-required">How to Manage Your Money — No Budgeting Required</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-your-budget-needs-a-makeover-and-how-to-do-it">5 Signs Your Budget Needs a Makeover (And How to Do It)</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/these-5-apps-can-fix-your-finances">These 5 Apps Can Fix Your Finances</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting 5 minute finance apps expenses mint saving money spending tracking Wed, 11 Apr 2018 09:00:06 +0000 Ashley Eneriz 2127659 at http://www.wisebread.com 8 Ways to Build Your Financial Self Esteem http://www.wisebread.com/8-ways-to-build-your-financial-self-esteem <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-ways-to-build-your-financial-self-esteem" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/we_have_managed_our_budget_so_well_this_month.jpg" alt="We have managed our budget so well this month" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're struggling to make ends meet, or are crushed by debt, it's not a great feeling. It's easy to feel despondent when you can't seem to get ahead financially. But don't get discouraged! If you make the right choices, things will come together for you and your money. There are many small things you can do to make yourself feel better about your financial situation.</p> <p>Try a few of these ways to give your financial self esteem a boost. Positive things will snowball from there.</p> <h2>1. Pay off one credit card</h2> <p>You may be battling a giant monster of debt from credit cards, student loans, auto loans, and more. And you probably feel pretty cruddy about it all. But you can give yourself a little psychological boost by targeting <em>one </em>credit card and working to get that balance down to zero.</p> <p>Even if you pay off a credit card with a relatively low balance, it will make that debt pile seem a little less overwhelming. From a money-saving standpoint, it makes more sense to pay off the credit cards with the highest interest rates first. But those cards may have higher balances and take longer to pay down. Prioritizing paying off small-balance cards in full, otherwise known as the snowball method, gives you valuable momentum that encourages you to keep chipping away at other debts.</p> <p>Once you pay off that first credit card, stick it in a drawer and say, &quot;I'm done with you!&quot; You'll feel great and will be eager to tackle the next one. (See also: <a href="http://www.wisebread.com/6-secrets-to-mastering-the-debt-snowball?ref=seealso" target="_blank">6 Secrets to Mastering the Debt Snowball</a>)</p> <h2>2. Buy some shares of stock and wait a few months</h2> <p>This one won't give you an immediate self esteem boost, but it will make you feel awesome if you are patient. Select a popular stock or common index fund and buy a few shares. The size of the investment does not matter here. A few hundred dollars invested will suffice. Leave the investments alone for about three months and check the price. In most cases, you will find that the investments have risen in value since you bought them. Congratulations! You just made money as an investor and you hardly had to do anything.</p> <p>Of course, this strategy can backfire if the market takes a dive, but if that happens, just hang in there and wait a few more months. You will be rewarded for your patience and will feel a lot better about your finances. And who knows? You may fall in love with investing and start on the path to making a ton of money in the markets. (See also: <a href="http://www.wisebread.com/9-ways-to-tell-if-a-stock-is-worth-buying?ref=seealso" target="_blank">9 Ways to Tell If a Stock is Worth Buying</a>)</p> <h2>3. Recognize that everyone has money troubles</h2> <p>I am not a big fan of schadenfreude &mdash; that is, the act of getting joy from the suffering of others &mdash; but you can feel a little bit better about your own financial problems when you realize that few people are free of money stress. Household debt is practically ubiquitous. Student loan debt is common. And no one feels like they have enough saved for retirement.</p> <p>I'm not suggesting you should feel comfortable with your bad finances, but there's no reason to beat yourself up too hard. If you have a plan to reduce debt, build your credit score, and boost your net worth over time, keep plugging away. You'll get there, and are probably doing better than you think. (See also: <a href="http://www.wisebread.com/4-money-lessons-you-can-learn-from-the-joneses?ref=seealso" target="_blank">4 Money Lessons You Can Learn From the Joneses</a>)</p> <h2>4. Score some extra income</h2> <p>You may be stuck in a job that doesn't pay great and you feel like you are struggling to make ends meet. You've cut expenses, but things still don't add up. This is where you need to find creative ways to make extra money.</p> <p>There are a variety of ways to make a few extra bucks on the side that can help add to your bottom line while also potentially opening up new opportunities. It may be a freelance writing project, some homemade jewelry to sell on Etsy, or even just an occasional pet sitting gig. Even a small extra paycheck &mdash; especially if it's from work you enjoy doing &mdash; can lift your spirits and make you feel a little more in control of your financial situation. (See also: <a href="http://www.wisebread.com/14-best-side-jobs-for-fast-cash?ref=seealso" target="_blank">14 Best Side Jobs For Fast Cash</a>)</p> <h2>5. Walk right past your temptations</h2> <p>When I used to work in the city, I would pass a coffee shop on the way to my office. And I would frequently stop in for an overpriced Americano. I knew it was a waste of money &mdash; we had free coffee at my office! &mdash; but it was a habit. One day, I decided to challenge myself to keep on walking. I looked straight into the window of the coffee shop, but did not go in. I missed the caffeine pick-me-up, but also knew that I just saved myself $3.50. Over time, that $3.50 a day turned into hundreds of dollars saved. And I got an ego boost from staring temptation in the face and walking on.</p> <p>Successfully resisting temptation is hard, but it can feel so good over time, especially when you know you're giving yourself a financial boost. (See also: <a href="http://www.wisebread.com/7-effortless-ways-to-prevent-budget-busting-impulse-buys?ref=seealso" target="_blank">7 Effortless Ways to Prevent Budget-Busting Impulse Buys</a>)</p> <h2>6. Give some money away</h2> <p>This may seem counterintuitive. How can you give away money if you are struggling financially yourself? But donating money to a cause will make you feel better about yourself in general. It's also likely that the amount you give will make a big difference to the recipient and won't ultimately impact your own finances too much in the long run.</p> <p>This is not to say you should give away money carelessly, or constantly bail out friends or relatives. You still need to take care of you. But an occasional small donation can be great for the world and give you a little charge of self esteem. (See also: <a href="http://www.wisebread.com/5-ways-giving-to-charity-is-good-for-you?ref=seealso" target="_blank">5 Ways Giving to Charity Is Good for You</a>)</p> <h2>7. Get a better deal</h2> <p>Searching for bargains can be exhausting, but it can feel rewarding when you score a big one. It's a nice feeling to get $200 knocked off the price of a new refrigerator. You feel awesome when you find a gallon of milk for $1.19. And buy one, get two free on boxes of cereal? Score!</p> <p>If you can find a way to make searching for sales fun, you'll feel great when you succeed, and will feel even better knowing that your finances benefit as a result. There is one word of caution though, which is to remember that you're not really saving money if you're spending it on items you wouldn't otherwise be buying. So focus your bargain hunting on things you need. (See also: <a href="http://www.wisebread.com/these-apps-and-extensions-find-online-deals-for-you-automatically?ref=seealso" target="_blank">These Apps and Extensions Find Online Deals for You &mdash; Automatically</a>)</p> <h2>8. Improve your credit score, even a little</h2> <p>Your credit score has an enormous impact on your finances, as it dictates how much you can borrow and at what interest rate. If you have a bad credit rating, you may feel like you're in a terrible spiral. Your credit rating is bad because of your finances, but you're having trouble improving your finances because of your credit rating.</p> <p>If you can stay focused on improving that credit rating, it will pay off. Focus hard on paying bills on time, every time. Reduce your overall debt load and don't use too much of your available credit. It will take time, but eventually you will see your credit rating creep up. Start by celebrating a 10-point increase. Throw a party when you get up above 600, and again when you're at 700. Every increase in credit rating should lift your spirits and motivate you to keep going. (See also: <a href="http://www.wisebread.com/7-ways-to-increase-your-credit-score-quickly?ref=seealso" target="_blank">7 Ways to Increase Your Credit Score Quickly</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F8-ways-to-build-your-financial-self-esteem&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F8%2520Ways%2520to%2520Build%2520Your%2520Financial%2520Self%2520Esteem.jpg&amp;description=8%20Ways%20to%20Build%20Your%20Financial%20Self%20Esteem"></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%20Ways%20to%20Build%20Your%20Financial%20Self%20Esteem.jpg" alt="8 Ways to Build Your Financial Self Esteem" 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/8-ways-to-build-your-financial-self-esteem">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-liabilities-that-will-ruin-your-net-worth">7 Liabilities That Will Ruin Your Net Worth</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/9-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</a></span> </div> </li> <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-signs-youre-making-all-the-right-money-moves">6 Signs You&#039;re Making All the Right 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/are-your-emotions-costing-you-money-take-this-quiz">Are Your Emotions Costing You Money? Take This Quiz</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance confidence credit score debt financial literacy investing saving money self esteem spending Mon, 09 Apr 2018 08:00:07 +0000 Tim Lemke 2124240 at http://www.wisebread.com 8 Ways Retirees Can Spring Clean Their Finances http://www.wisebread.com/8-ways-retirees-can-spring-clean-their-finances <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-ways-retirees-can-spring-clean-their-finances" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/senior_couple_paying_bills_online_at_home.jpg" alt="Senior couple paying bills online at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>So you've finally made the jump out of the working world and into blissful retirement. Congratulations! If you've been careful in your financial planning, you should have plenty of money to sustain yourself for a long time and have a happy post-work life. But even the most well-off retirees could benefit from re-examining their financial situation.</p> <p>Here are a few ways retirees can get their finances spic and span this spring.</p> <h2>1. Check your spending</h2> <p>After you've spent a large portion of your life amassing a large retirement fund, you may feel like your days of watching every dollar are over. But it's still important to make sure your expenses aren't higher than what your savings can afford. Now that you are home instead of heading to the office every day, you may be spending more on utilities. You may have unreimbursed expenses relating to caring for your grandchildren. That African safari trip may have cost you more than expected.</p> <p>If you have an annuity or are making regular withdrawals in retirement, it's important to avoid spending more than those payments. Otherwise, you may find yourself lacking in funds down the road. You may be fortunate to live for many more years, but you don't want to go broke along the way. (See also: <a href="http://www.wisebread.com/6-ways-you-can-cut-costs-right-before-you-retire-0?ref=seealso" target="_blank">6 Ways You Can Cut Costs Right Before You Retire</a>)</p> <h2>2. Meet with a financial adviser</h2> <p>Even retirees who have plenty of money and a good financial plan can benefit from a checkup with an adviser. A good financial planner can help you assess whether your retirement savings are still on track to last and if there are any necessary tweaks. An adviser can also help walk you through any changes to tax laws and explain any changes to the investment landscape. Once you retire, don't just put your head in the sand and assume your money will last as long as you do. A periodic financial check-in with an expert can be hugely valuable to anyone seeking the best retirement possible. (See also: <a href="http://www.wisebread.com/3-reasons-to-be-picky-when-hiring-a-financial-planner?ref=seealso" target="_blank">3 Reasons to Be Picky When Hiring a Financial Planner</a>)</p> <h2>3. Assess your withdrawals</h2> <p>Once you reach age 70 &frac12;, you may be required to make minimum withdrawals from your retirement accounts. The ultimate size of these withdrawals &mdash; and whether you decide to start withdrawing sooner &mdash; will determine how much you have to live on, and how much you'll have left in your accounts. If you are taking withdrawals already, take some time to determine whether the amount taken out each month is sufficient or too much. (See also: <a href="http://www.wisebread.com/3-financial-penalties-every-retiree-should-avoid?ref=seealso" target="_blank">3 Financial Penalties Every Retiree Should Avoid</a>)</p> <h2>4. Re-examine your will</h2> <p>You remember filling out a will many years ago, but do you remember what it says? Do you still agree with the directives regarding who gets your assets when you pass? These aren't pleasant things to think about, but your family will appreciate it if your wishes are made clear. It may even make sense to discuss this with your children and other family members so there are no surprises or acrimony later. (See also: <a href="http://www.wisebread.com/6-times-you-need-to-update-your-will?ref=seealso" target="_blank">6 Times You Need to Update Your Will</a>)</p> <h2>5. Rebalance your portfolio</h2> <p>If you are retired, your investment portfolio should be geared more toward preserving income than growing it. It's OK to own some stocks, but it makes sense to also mix in some bonds, cash, and other more conservative investments. You may think your portfolio is optimized for retirement, but there's a chance it may have gotten out of balance. This is especially true over the last few years when stocks have performed very well.</p> <p>Everyone, not just retirees, is encouraged to rebalance their portfolios every year. If you haven't taken a hard look at your investments in a while, take the time to see if some smart buying and selling will get you back on the right track. (See also: <a href="http://www.wisebread.com/7-reasons-to-invest-in-stocks-past-age-50?ref=seealso" target="_blank">7 Reasons to Invest in Stocks Past Age 50</a>)</p> <h2>6. Do a deep dive into your charitable giving</h2> <p>You may finally be in a position to be generous with your money. But are you being smart and strategic about how you are giving to charity?</p> <p>Charitable donations are not only a wonderful thing to do, they can help you financially by saving you on taxes. If you itemize tax deductions, charitable donations can reduce your tax bill. Donating shares of stock to a charity can help you avoid capital gains taxes. If you are considering donating to charity, come up with a smart plan to support the causes you love as part of a broader tax savings strategy. (See also: <a href="http://www.wisebread.com/5-ways-giving-to-charity-is-good-for-you?ref=seealso" target="_blank">5 Ways Giving to Charity Is Good for You</a>)</p> <h2>7. Assess your health insurance situation</h2> <p>Older Americans can benefit from Medicare, but you may not be eligible if you retire early. And even if you do get Medicare, that doesn't cover every medical expense. Most retirees find that they need to purchase a Medicare supplement plan, as well as additional insurance for eyeglasses, hearing aids, dental work, and other health needs. You'll also need to consider whether long-term care insurance is right for you. Don't assume you are properly insured just because you are eligible for Medicare. (See also: <a href="http://www.wisebread.com/how-to-make-sense-of-the-different-parts-of-medicare?ref=seealso" target="_blank">How to Make Sense of the Different Parts of Medicare</a>)</p> <h2>8. Hit the gym and eat better</h2> <p>Exercising may not seem like a financial decision, but in many ways it is. Getting and staying healthy will not only help you enjoy retirement more, but it could help reduce medical bills that may not be covered by insurance. Work to lose weight, lower your blood pressure, and make better lifestyle choices. You may find yourself not only healthier, but wealthier too. (See also: <a href="http://www.wisebread.com/7-smart-ways-to-invest-in-your-health?ref=seealso" target="_blank">7 Smart Ways to Invest in Your Health</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F8-ways-retirees-can-spring-clean-their-finances&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F8%2520Ways%2520Retirees%2520Can%2520Spring%2520Clean%2520Their%2520Finances.jpg&amp;description=8%20Ways%20Retirees%20Can%20Spring%20Clean%20Their%20Finances"></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%20Ways%20Retirees%20Can%20Spring%20Clean%20Their%20Finances.jpg" alt="8 Ways Retirees Can Spring Clean Their Finances" 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/8-ways-retirees-can-spring-clean-their-finances">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/8-questions-financial-advisers-hear-most-often">8 Questions Financial Advisers Hear Most Often</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/9-costly-mistakes-diy-investors-make">9 Costly Mistakes DIY Investors Make</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/5-myths-about-money-in-retirement">5 Myths About Money in Retirement</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-retirement-struggles-nobody-talks-about-and-how-to-beat-them">5 Retirement Struggles Nobody Talks About — And How to Beat Them</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/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do">If You&#039;re Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement charity financial advisers financial planning health care money moves rebalancing spending spring cleaning taxes Wed, 28 Mar 2018 09:00:07 +0000 Tim Lemke 2119356 at http://www.wisebread.com 9 Ways to Reverse Lifestyle Creep http://www.wisebread.com/9-ways-to-reverse-lifestyle-creep <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-ways-to-reverse-lifestyle-creep" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/paying_online_with_credit_card.jpg" alt="Paying online with credit card" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>As time goes on, you may find that you are earning more money than you were previously. Congratulations! That's a good thing. Unfortunately, new income often means new spending. You use higher paychecks to boost your standard of living with a bigger house, pricier cars, more costly meals, and luxury items. This is called lifestyle creep.</p> <p>The problem with lifestyle creep is that things can crash down on you if your income drops. And it's not particularly easy to dial back your cost of living quickly.</p> <p>If you find that you are spending more than you have in the past, it may be time to evaluate whether you are the victim of lifestyle creep. Here are some tips on getting that &quot;creep&quot; headed in the other direction. (See also: <a href="http://www.wisebread.com/9-signs-youre-suffering-from-lifestyle-inflation?ref=seealso" target="_blank">9 Signs You're Suffering From Lifestyle Inflation</a>)</p> <h2>1. Track your spending</h2> <p>Sometimes we just don't realize how much we are spending. We spend unconsciously, assuming that we're not doing anything different from what we've done in the past. We pay our credit card bills without reviewing them, barely glancing at the record of what we purchased in the previous month. This lack of attention can gradually lead to lifestyle creep.</p> <p>If you begin a practice of tracking every dollar and reviewing that record on a regular basis, you'll recognize where you're making careless spending choices, and you can do something about it.</p> <p>Reviewing credit card bills and bank statements is a good way to start. There are also online tools such as Mint.com and Personal Capital that allow you to aggregate accounts and see all your income and spending in one view.</p> <h2>2. Practice mindful spending</h2> <p>This goes hand-in-hand with tracking your spending. It's important to be aware of <em>how</em> you are spending your money. Try to get in the habit of making purchases deliberately rather than impulsively. When you intend to buy an item, ask yourself questions like, &quot;Do I really need this?&quot; and, &quot;Can I get this for a better price?&quot; Do extensive research before buying any large items. In this day and age, there's plenty of information available online about any product.</p> <p>Mindful spending may even involve switching from credit cards to cash, so that when you buy something, you actually feel money going out of your hands. That sting alone can make you less likely to spend. (See also: <a href="http://www.wisebread.com/how-one-nice-thing-can-ruin-your-whole-budget?ref=seealso" target="_blank">How One Nice Thing Can Ruin Your Whole Budget</a>)</p> <h2>3. Identify wants and needs</h2> <p>Lifestyle creep happens when you start spending money on things you want rather than things you truly can't live without. You need food and shelter. You need school books for the kids. You don't need cable television, designer clothes, or vacations in Bali. You don't need Netflix, no matter how much you've convinced yourself that you do.</p> <p>If you focus on spending money on things you need and ridding yourself of things you don't, you'll find your lifestyle creeping back down. (See also: <a href="http://www.wisebread.com/how-to-resist-lifestyle-creep-and-still-have-everything-you-want?ref=seealso" target="_blank">How to Resist Lifestyle Creep and Still Have Everything You Want</a>)</p> <h2>4. Seek value over luxury</h2> <p>Reducing lifestyle creep is not about bringing spending down to zero, or even purchasing the cheapest version of any item you buy. It's about spending money in the most efficient way possible. When you seek to make purchases that are a good &quot;value,&quot; it means you are trying to find the perfect balance between quality and price.</p> <p>Let's say you need a new refrigerator. You found one at the store with the lowest price, but the reviews suggest it has poor reliability and uses too much energy. Meanwhile, you may have found a fridge that's highly-rated in terms of quality, but its price is three times higher and has features and components you don't need. The best value fridge for you is somewhere in the middle.</p> <p>Finding value can come into play with any purchase, from homes, to cars, and even college educations.</p> <h2>5. Focus on maxing out retirement contributions</h2> <p>If you have a 401(k) plan, you are allowed to contribute up to $18,500 each year to help you save for retirement. If you have an IRA, you can contribute up to $5,500 annually. In both cases, you can contribute even more if you are over 50. It should be your goal to hit these maximum contributions.</p> <p>It's hard to hit these limits when you are young and perhaps not making a lot of money. But as you earn more, it becomes possible. If you set a goal of maxing out these contributions, you are more likely to put any new money you get into retirement accounts than spend it.</p> <p>Bottom line: Don't expand your lifestyle until you've put as much into retirement accounts as you can. If you are not maximizing the potential of your retirement accounts, you should not be upgrading your car, buying a bigger house, or doing other things that make your life more expensive. (See also: <a href="http://www.wisebread.com/6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future?ref=seealso" target="_blank">6 Ways Meeting the 2018 401(k) Contribution Limits Will Brighten Your Future</a>)</p> <h2>6. Don't go after more credit than you need</h2> <p>One of the ironic things about being financially responsible is that companies will make it easier for you to spend more. Credit card companies will keep your interest rate low, thus making it easier for you to borrow. They will raise your credit limits so you can more easily buy big-ticket items. If this happens, you must avoid the temptation to spend more just because you can.</p> <p>It's also just as important to avoid any special efforts to expand your purchasing power, unless you have a dire need to do so. If you have a couple of credit cards with reasonable credit limits, be content with what you have. If you have a $5,000 credit limit on one card, there's no need to request a $10,000 limit just because you can. That extra $5,000 will simply serve as a temptation to spend money on items you don't need.</p> <h2>7. Ignore everyone else</h2> <p>You've heard the term <em>keeping up with the Joneses</em>. You may have a neighbor or friend who always seems to be getting the newest thing: a new house, a new car, expensive camps, and top-of-the-line sporting equipment for the kids. It is common for people to expand their lifestyle to keep up with friends and neighbors, and they may not even realize they are doing it.</p> <p>Never forget that your money is yours alone. You must make financial decisions that make sense for you and your family. Paying attention to the spending habits of others accomplishes very little. Keep in mind, too, that while other people may appear to be living the high life, they may actually be deeply in debt with no focus on saving for retirement or other goals. (See also: <a href="http://www.wisebread.com/4-money-lessons-you-can-learn-from-the-joneses?ref=seealso" target="_blank">4 Money Lessons You Can Learn From the Joneses</a>)</p> <h2>8. Become more aware of marketing</h2> <p>Whether we realize it or not, there are billions of dollars being spent every day in an effort to get you to part with your money. Commercials on television and radio, ads on the internet, and even social media posts are all working to get us to buy products and services. Granted, this is part of how capitalism and free markets work. But we don't need to fall victim to it.</p> <p>It's possible to avoid making unneeded purchases simply by become more cognizant of when companies are advertising. Your buying decisions should be based on your needs, and timed according to when you are most comfortable. It's important to be stoic, even cynical, in the face of marketing efforts.</p> <h2>9. Change your thinking when it comes to trade-offs</h2> <p>As our life circumstances change, we are often forced to accept trade-offs. But we often make the wrong trade-off from a financial standpoint. We purchase a larger, more expensive house and are willing to forgo retirement savings to make it work. We accept high monthly payments and credit card debt as a trade-off for driving two brand-new cars.</p> <p>Life is about trade-offs, but financial freedom is about making trade-offs that benefit your wallet rather than your ego. You desire to maximize your retirement accounts, so you are willing to avoid the $5 daily coffees to help make it happen. You don't want your children saddled with student loans, so you're happy driving the Honda Civic with 200,000 miles on it. You don't want to increase your mortgage payment, so you invest in bunk beds instead of a new house when your second kid is born. These kinds of trade-offs prevent lifestyle inflation from creeping in and taking control.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-ways-to-reverse-lifestyle-creep&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Ways%2520to%2520Reverse%2520Lifestyle%2520Creep.jpg&amp;description=9%20Ways%20to%20Reverse%20Lifestyle%20Creep"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Ways%20to%20Reverse%20Lifestyle%20Creep.jpg" alt="9 Ways to Reverse Lifestyle Creep" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-ways-to-reverse-lifestyle-creep">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-types-of-friends-who-are-costing-you-money">10 Types of Friends Who Are Costing You 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/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-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-your-boomer-parents-could-afford-that-you-cant">8 Things Your Boomer Parents Could Afford That You Can&#039;t</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-reasons-youre-still-struggling-to-pay-bills">6 Reasons You&#039;re Still Struggling to Pay Bills</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/25-money-saving-strategies-that-are-actually-hurting-you">25 Money-Saving Strategies That Are Actually Hurting You</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle cutting costs diderot effect expenses inflation keeping up with the joneses lifestyle creep saving spending Wed, 07 Mar 2018 10:01:05 +0000 Tim Lemke 2112924 at http://www.wisebread.com 4 Money Fights Married Couples Have (And How to Avoid Them) http://www.wisebread.com/4-money-fights-married-couples-have-and-how-to-avoid-them <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-money-fights-married-couples-have-and-how-to-avoid-them" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/could_this_be_the_final_straw_for_our_relationship.jpg" alt="Could this be the final straw for our relationship?" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When a couple first gets married, while the newlywed glow is still bright enough for strangers to see, it can seem as if nothing can ever get in the way of true love.</p> <p>But if you fast forward a few years, many couples will find that money has a seriously unpleasant effect on that love. Whether you are shouting at each other over a credit card bill, or living in chilly silence because of one spouse's financial decision, you may wonder why your love for each other is not enough to smooth over the jagged edges of your money disagreements. (See also: <a href="http://www.wisebread.com/8-steps-to-a-blissful-matri-money?ref=seealso" target="_blank">8 Steps to a Blissful Matri-Money</a>)</p> <p>According to a 2014 poll by Money Magazine, money is the most common reason married couples fight, ahead of household chores, togetherness, sex, snoring, and what's for dinner. These financial fights often seem to follow similar patterns, no matter who the spouses are, how much they make, or where they live.</p> <p>That means it's possible for married couples to anticipate common money fights, and avoid them altogether. Here's what you need to know about four of the most frequent money arguments, and how you and your sweetheart can avoid them.</p> <h2>1. Disagreements over spending</h2> <p>It's a tale as old as time. One of you is a spender, and the other one is a natural born saver. When the spender comes home with brand-new gadgets and gizmos galore, the saver is likely to blow a gasket. What ensues is an argument about who is a buzzkill and who is irresponsible.</p> <h3>How to avoid this argument</h3> <p>Many individuals make the mistake of avoiding this argument by simply not telling their spouses about their spending. Money Magazine's poll found that a full 22 percent of spouses have spent money that their partner doesn't know about. But while keeping your spending secret might keep the peace for the moment, such secrecy causes much bigger problems down the road.</p> <p>Instead, couples should commit to having separate fun money funds. This is a great way for each of you to make purchases the other might see as unnecessary, without it becoming an issue.</p> <p>As long as you and your partner can agree on a budget amount for important-to-me purchases, this strategy will allow you to buy stuff that matters to you without having to fight about it with your spouse. (See also: <a href="http://www.wisebread.com/5-money-conversations-every-couple-should-have?ref=seealso" target="_blank">5 Money Conversations Every Couple Should Have</a>)</p> <h2>2. Power struggles over money</h2> <p>In many relationships, one partner will believe he or she has the last say on financial decisions. Often, this comes about because of who is the higher earner, although these types of power struggles can also be rooted in beliefs about who is better with money &mdash; either because of gender stereotypes or the couple's specific relationship history.</p> <p>Unfortunately, these sorts of power struggles can really undermine the love between a married couple. When one partner wants to be the ultimate financial authority in the relationship, his or her actions can negate the equality between spouses, which can foster resentment and anger.</p> <h3>How to avoid this argument</h3> <p>It's important for spouses to recognize they are both on the same team when it comes to their money. To do that, they need to start viewing all income as &quot;our money&quot; and all decisions as &quot;our decisions.&quot;</p> <p>If the power struggle stems from the fact that one spouse brings in more money, one way to view things more equally is to sit down together and make a list of what you each do for the overall health of the relationship.</p> <p>This is a peacekeeping tactic that many marriage counselors advise for dealing with housework squabbles, but it works just as well for dealing with money imbalances. Once the higher-earner sees that the other partner does all the grocery shopping or laundry or airport drop-offs, it can help to put the high income in perspective. The high-earner would be keeping less of their income if each of those nonfinancial contributions by the low-earner had to be contracted out.</p> <p>If power struggles are rooted in a belief that one person is better with money, consider what would happen if either one of you died. If only one spouse takes care of the marital coffers, the other one will be vulnerable in the event of widowhood. Thinking through these kinds of worst-case scenarios can help spouses recognize the importance of each partner having financial responsibility and buy-in on financial decisions. (See also: <a href="http://www.wisebread.com/the-7-worst-money-mistakes-married-people-make?ref=seealso" target="_blank">The 7 Worst Money Mistakes Married People Make</a>)</p> <h2>3. Reactions to risk</h2> <p>Opposites often attract, particularly when it comes to risk tolerance. Often, the risk-averse, better-safe-than-sorry type and the risk-loving adrenaline junkie fall for each other, because Mr. Safety grounds Ms. Risky while she helps him expand his horizons. Unfortunately, these love matches can cause friction when it comes to financial decisions.</p> <p>For instance, one spouse may want to invest their savings into the business she is trying to get off the ground, while her husband would prefer to keep that money safe in the bank in case the business fails to launch. Such a couple might find themselves arguing over whether or not he believes in her, and whether or not she cares about his financial anxiety.</p> <p>Even couples who are both on the same page when it comes to the relative importance of a steady paycheck can strongly disagree about how much risk they are willing to accept in their investments. If he wants to chase returns with every no-fail promise of a tin mine in Bolivia, while she is happier to leave it all in CDs, savings accounts, and maybe a bond or two, there will be some serious fights about the future of their money.</p> <h3>How to avoid this argument</h3> <p>The best way to calm the fears of a risk-averse spouse is to make sure there is an upper limit to the amount of money that will be &quot;risked.&quot; For instance, an entrepreneurial spouse might promise to invest no more than 20 to 25 percent of their savings into the new business, which will give some room for growth while also providing the cushion that the other spouse needs to keep from breathing into a paper bag.</p> <p>Similarly, having a plan of action for investments can help a couple navigate their differing risk tolerances. Such a plan could design asset allocation that will mitigate risk and encourage growth &mdash; and potentially leave a small percentage available for the more speculative investments that will please the risk-taker in the couple. (See also: <a href="http://www.wisebread.com/5-painless-ways-to-manage-money-with-your-partner?ref=seealso" target="_blank">5 Painless Ways to Manage Money With Your Partner</a>)</p> <h2>4. Disagreements over helping family</h2> <p>One of the toughest arguments between couples happens when a family member asks for money. Whether it's a one-time request because of a truly difficult situation, or it's a family member who regularly wants to borrow money from you, this can cause major stress for a couple.</p> <p>Often, these types of fights go further than just disagreements about the money &mdash; they can become arguments about each other's families and each spouse's expectations of dealing with them. Many a spouse has spent a few nights on the couch because of a loan to a family member.</p> <h3>How to avoid this argument</h3> <p>The best way to avoid this kind of disagreement is to talk about it ahead of time. After you have been asked for money or have already given money to a family member is a bad time to hash out how you each feel about family loans. In particular, the issues you need to agree on are these:</p> <ul> <li> <p>Can you consider any money you give to family in need as a gift rather than a loan?</p> </li> <li> <p>If it has to be a loan, can you agree to have a legal loan document written up to make sure you are reimbursed?</p> </li> <li> <p>What is the maximum amount of money you are willing to give or loan to family in an emergency?</p> </li> <li> <p>Is there a maximum number of times you are willing to help the same family member?</p> </li> <li> <p>Are there nonfinancial ways you can offer to help if giving or loaning money is not in the cards?</p> </li> </ul> <p>Getting on the same page on these issues before a relative asks for money can help ensure that your bond with your spouse stays strong, no matter how often your shiftless cousin Lenny asks for a couple hundred dollars. (See also: <a href="http://www.wisebread.com/the-16-cardinal-rules-of-loaning-money-to-friends-and-family?ref=seealso" target="_blank">The 16 Cardinal Rules of Loaning Money to Friends and Family</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-money-fights-married-couples-have-and-how-to-avoid-them&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Money%2520Fights%2520Married%2520Couples%2520Have%2520%2528And%2520How%2520to%2520Avoid%2520Them%2529.jpg&amp;description=4%20Money%20Fights%20Married%20Couples%20Have%20(And%20How%20to%20Avoid%20Them)"></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/u5180/4%20Money%20Fights%20Married%20Couples%20Have%20%28And%20How%20to%20Avoid%20Them%29.jpg" alt="4 Money Fights Married Couples Have (And How to Avoid Them)" 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/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/4-money-fights-married-couples-have-and-how-to-avoid-them">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-6"> <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/8-things-i-learned-about-money-after-getting-married">8 Things I Learned About Money After Getting Married</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/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</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-reasons-average-people-should-consider-a-prenup">6 Reasons Average People Should Consider a Prenup</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/3-simple-ways-to-split-bills-with-your-spouse">3 Simple Ways to Split Bills With Your Spouse</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family couples fights income disparity loaning money marriage money management power struggles spending spouses Tue, 13 Feb 2018 09:30:08 +0000 Emily Guy Birken 2103142 at http://www.wisebread.com 9 Little Ways to Boost Your Savings Account Every Day http://www.wisebread.com/9-little-ways-to-boost-your-savings-account-every-day <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-little-ways-to-boost-your-savings-account-every-day" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/father_and_daughter.jpg" alt="Father and daughter" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Saving money is not always simple or straightforward. It's easy to get discouraged when faced with a big, long-term savings goal or mountain of debt. That's why it might make sense to start small. Rather than worry about saving thousands for that down payment or paying off that massive student loan, focus on reasonable things you can do each day to give your savings account a boost.</p> <p>None of these suggestions will make you rich by themselves. But collectively and over time, they can add up to a meaningful sum.</p> <h2>1. Drive less, or at least smarter</h2> <p>Every time you get in your car, you're spending money. You are spending money on gas, and your car is depreciating and getting closer to needing repairs. It may be impossible to ditch your car altogether, but there are small things you can do each day to reduce your costs.</p> <p>Research shorter and faster ways of getting to your destination. Consider planning your errands so that you can get more done in one trip, and plan your route for greatest efficiency. Drive when traffic is light, so you're not wasting time and gas. Turn your air conditioner or heater off if you don't really need them, and make sure your tires are inflated properly. These are small things, but they can add up to some savings over time. (See also: <a href="http://www.wisebread.com/cutting-your-car-payment-is-easier-than-you-think?ref=seealso" target="_blank">Cutting Your Car Payment Is Easier Than You Think</a>)</p> <h2>2. Save and deposit your change</h2> <p>Let's face it, we're all reckless when it comes to change. We drop it on the ground. We leave it laying around. We spend it on candy bars and gum. We put it in large jars and forget about it.</p> <p>It's time to get smarter about change. Go to the bank and deposit it. Even though it may seem like a trivial amount of money, that's still money that can collect interest and add value to your savings account over time. We get hundreds of dollars in change back from purchases throughout the year. Make that money work for you and put it directly into savings. (See also: <a href="http://www.wisebread.com/20-smart-ways-to-spend-your-loose-change?ref=seealso" target="_blank">20 Smart Ways to Spend Your Loose Change</a>)</p> <h2>3. Round up credit card purchases and deposit the difference</h2> <p>This is just like depositing your change from cash purchases. Let's say you go to a restaurant and are charged $12.65 for a sandwich. If you pay with a credit card, consider mentally rounding that purchase up to $13 and transferring 35 cents into a special savings account. If you do this with every purchase, you'll be banking several additional dollars each week, or potentially hundreds of dollars annually. (See also: <a href="http://www.wisebread.com/7-ways-to-save-loads-of-money-using-credit-cards?ref=seealso" target="_blank">7 Ways to Save Loads of Money Using Credit Cards</a>)</p> <h2>4. Adjust your thermostat</h2> <p>We all want to be comfortable when at home, but making even a small tweak to the indoor temperature can add up to significant savings over time. If it's winter time, consider turning the heat down and just throwing on an extra layer instead. In the summer, open some windows and use fans for part of the day. Always set the temperature differently when you aren't at home &mdash; a programmable thermostat can be hugely helpful in this area. (See also: <a href="http://www.wisebread.com/34-smart-ways-to-cut-your-electric-bill?ref=seealso" target="_blank">34 Smart Ways to Cut Your Electric Bill</a>)</p> <h2>5. Use loyalty cards</h2> <p>I know some people don't like to sign up for loyalty cards because they aren't keen on sharing information or being bombarded with promotions. But I say get over it. Whether it's for Dunkin' Donuts, J. Crew, or your local grocery store, these cards can give you access to discounts you may not otherwise get.</p> <p>The caveat to this is that if having a loyalty card encourages you to spend money you may not have otherwise spent, don't do it. But if the card is for a store you shop at frequently anyway, sign up! (See also: <a href="http://www.wisebread.com/9-store-loyalty-programs-that-are-worth-it?ref=seealso" target="_blank">9 Store Loyalty Programs That Are Worth It</a>)</p> <h2>6. Clip coupons</h2> <p>Searching and cutting out coupons can seem like a real pain, but it's often worth it. Start by finding circulars or online flyers for stores you shop at regularly. Look for places that will double or even triple coupons. If you use a coupon to buy an item, consider taking the amount of money saved and diverting that into a special high-interest savings account. By doing this, you're saving double anytime you get a discounted item. (See also: <a href="http://www.wisebread.com/9-online-retailers-who-let-you-stack-coupons?ref=seealso" target="_blank">9 Online Retailers Who Let You Stack Coupons</a>)</p> <h2>7. Get a credit card offering cash back</h2> <p>There are a million credit cards out there with various rewards, but I am partial to those that offer <a href="http://www.wisebread.com/best-credit-cards-that-offer-flat-rate-rewards-for-all-spending?ref=internal" target="_blank">straight cash back</a> on purchases. That's because rather than spending the reward, you can transfer it directly into a bank account. Other credit card rewards offering shopping discounts or airline miles are nice, but they don't help you increase your savings. I use a card that offers as much as <a href="http://www.wisebread.com/5-best-credit-cards-with-rotating-reward-categories?ref=internal" target="_blank">5 percent cash back</a> on purchases, and it has saved me a significant amount of money over the years. (See also: <a href="http://www.wisebread.com/5-best-cash-back-credit-cards?ref=seealso" target="_blank">The Best Cash Back Credit Cards</a>)</p> <h2>8. Eat in</h2> <p>More and more people are eating out these days, because we're all busy, and who has the time to cook? But if you are willing to spend some time in the kitchen, you will almost always save money.</p> <p>It costs far less to purchase ingredients and prepare meals at home than to go out to a restaurant. This is especially true if you spend money on beverages and appetizers when eating out. If you do cook at home, add up the cost of ingredients and calculate the price of a comparable restaurant meal. Take that savings and place it in a special account. (See also: <a href="http://www.wisebread.com/8-ways-to-save-on-dinner-no-meal-planning-required?ref=seealso" target="_blank">8 Ways to Save on Dinner &mdash; No Meal Planning Required</a>)</p> <h2>9. Do quick jobs</h2> <p>You may already be employed and don't think you have the time or energy for additional work, especially if it does not pay well. But everyone has a few spare moments where they can make some easy cash. Freelance sites like Fiverr offer access to creative jobs that can be done quickly. There are a number of apps and websites that will give you cash just for answering surveys. Services such as TaskRabbit allow you to make money by offering quick, simple services, like giving someone a ride to the doctor's office. (See also: <a href="http://www.wisebread.com/14-best-side-jobs-for-fast-cash?ref=seealso" target="_blank">14 Best Side Jobs For Fast Cash</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-little-ways-to-boost-your-savings-account-every-day&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Little%2520Ways%2520to%2520Boost%2520Your%2520Savings%2520Account%2520Every%2520Day.jpg&amp;description=9%20Little%20Ways%20to%20Boost%20Your%20Savings%20Account%20Every%20Day"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Little%20Ways%20to%20Boost%20Your%20Savings%20Account%20Every%20Day.jpg" alt="9 Little Ways to Boost Your Savings Account Every Day" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-little-ways-to-boost-your-savings-account-every-day">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-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-find-the-savings-strategy-that-works-for-you">How to Find the Savings Strategy That Works For You</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/you-got-a-raise-now-what">You Got a Raise! Now What?</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/money-a-mess-try-this-personal-finance-starter-kit">Money a Mess? Try This Personal Finance Starter Kit</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-sneaky-ways-you-cheat-on-your-budget">6 Sneaky Ways You Cheat on Your Budget</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance budgeting cash back coupons eating in food costs income loyalty cards saving money side gigs spare change spending Thu, 01 Feb 2018 09:00:06 +0000 Tim Lemke 2096588 at http://www.wisebread.com The Financial Perks of Being in Your 20s http://www.wisebread.com/the-financial-perks-of-being-in-your-20s <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-financial-perks-of-being-in-your-20s" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young_woman_cash_840782788.jpg" alt="Woman making it rain with cash" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Being young is supposed to be awful these days. Jobs for new graduates pay a pittance, the cost of housing is high, and you are drowning in a vast ocean of student loan debt. With such daunting financial challenges on your plate, how are young people ever supposed to get ahead?</p> <p>Cheer up! Despite all the negative news, things aren't so bad for people in their 20s. You've got flexibility, perks, and time on your side. Here's why being young isn't so bad from a financial standpoint. (See also: <a href="http://www.wisebread.com/the-6-biggest-financial-decisions-in-your-20s?ref=seealso" target="_blank">The 6 Biggest Financial Decisions in Your 20s</a>)</p> <h2>Your expenses are low</h2> <p>While it's true that young people may be saddled with student loans, and the cost of housing may be high in places where they are seeking work, people in their 20s can generally afford to get by without big budgets. You are less likely to have children at this stage of your life, which means a smaller food budget and no expenses related to child care or schooling. You can be comfortable in a smaller living space, perhaps with roommates who will share the rent burden. If you need a car, you can probably get by with a subcompact with great fuel mileage and low maintenance costs.</p> <h2>Your investments have time to grow</h2> <p>When you invest for retirement, time is your greatest ally. The earlier you start, the more time your investments have to grow. If you are in your 20s, you may have as many as 40 years to contribute to a retirement plan, and you'll see the enormous power of compounding gains. There are undoubtedly people in their 40s and 50s who look back on their life and wish they had saved more money at a younger age. If you are under age 30, relish the opportunity to invest aggressively now and see a huge stockpile of cash later. (See also: <a href="http://www.wisebread.com/7-personal-finance-milestones-every-20-and-30-year-old-should-hit?ref=seealso" target="_blank">7 Personal Finance Milestones Every 20 and 30 Year Old Should Hit</a>)</p> <h2>You can stay on your parents' health insurance</h2> <p>One of the more popular provisions in the Affordable Care Act allows a person to remain on their parents' health care plan until they turn 26. This is a huge benefit to young people who may still be in school or dealing with unsteady employment at first. If you are 25 or under and on your parents' plan, you may be able to save more than $200 in monthly premiums.</p> <h2>If you pay for health insurance, it can be cheap</h2> <p>Even if you don't get insurance through your folks, you may find that insurance is relatively inexpensive for a person your age. People under 30 are generally pretty healthy and don't represent a high risk pool for insurers, so premiums are likely to be manageable at this stage of your life. According to a price index report from eHealth, a private online insurance exchange, people between ages 18 and 24 paid an average $217 in monthly premiums in 2017, and those between 25 and 34 paid $283. Premiums jumped to $361 for those aged 35&ndash;44, and $478 for those aged 45&ndash;54.</p> <p>Additionally, because young people are generally healthier, they can afford to take a calculated risk by purchasing insurance with lower premiums in exchange for a higher deductible.</p> <h2>You can mooch without guilt</h2> <p>Go ahead, sleep on your friends' sofa for a few weeks. Accept that offer for a free lunch. Tell your brother you'll pay him back later for that movie ticket. It's OK, no one will judge you too harshly.</p> <p>I'm not suggesting you have a free pass to bum off your friends and family, but we do have the tendency to give young people a break when they ask for free stuff. If you're under 30, we assume you aren't yet established in your career. We assume you may have student loans. We assume you're driving a beat-up old car. We assume you're still developing personal finance skills. Even if these things aren't true, we're lenient in dishing out small &quot;loans&quot; or offers of free food or places to stay. We tend to be far less sympathetic to people over 30.</p> <h2>Many industries prefer young people</h2> <p>It's a troubling reality that some employers prefer to hire young people, because they assume they will have skills that older people don't possess. This is especially true among startups and in the tech industry. Job site Indeed surveyed 1,011 U.S. tech workers and found that 43 percent of respondents worry about losing their jobs due to being too old. The survey also revealed that millennials make up the bulk (46 percent) of the tech workforce.</p> <p>I hesitate to characterize this as a &quot;perk&quot; for young people, but it's clear that being young can be an advantage when looking for work in certain fields.</p> <h2>You are less likely to be tied down</h2> <p>You are being recruited for your dream job at a hot startup company &mdash; but the catch is that it's 3,000 miles away in California. So? Pack up and go!</p> <p>At this stage of your life, you have very little keeping you from pursuing opportunities. You are less likely to be married with kids, less likely to own a home, and less tied to whatever community you're living in. If a great career opportunity comes along, you can feel free to take it, even if it means uprooting.</p> <h2>You can get discounts</h2> <p>We tend to think discounts are set aside for seniors or little kids, but that's not true. Businesses are happy to offer discounts to young people if it gets them in the door and turns them into repeat customers.</p> <p>Did you know that in New York City, you can get discounts to Broadway shows if you are under 30? Some travel companies offer discounts on package deals for young people. And there are plenty of discounts on everything from restaurants to movie tickets if you are still in college or graduate school. Don't be afraid to exploit your youth for discounted stuff.</p> <h2>Being poor is culturally acceptable</h2> <p>Young people can get away with almost bragging about how poor they are. They wear their &quot;I survive on Chef Boyardee&quot; stories like a badge of courage. No one looks down on them if they get by on cheap food, take on roommates, move frequently to find cheaper rent, or drive a crappy car. Young people can take that low-paying job because it will get them the experience they want. It's all part of being young and alive.</p> <p>As you get older, being broke isn't as cool. You now have a family and responsibilities and bills to pay. You need to wear nicer clothes, pay the mortgage, and shell out cash for your kids' activities. As you age, there's pressure to make money, save money, and actually act like a responsible human.</p> <h2>Some &quot;trends&quot; are just ways to save money in disguise</h2> <p>Have you ever considered that some cultural shifts often result in fewer expenses for young people? When you think about it, young people in recent years have pushed for changes that, either intentionally or unintentionally, result in cost savings.</p> <p>The whole beard trend among young men? Yeah, that's saving them hundreds of dollars in shaving costs each year. Casual dress codes? So long, expensive suits and ties. The desire to work remotely? That's reducing commuting costs. The sharing economy? Young people deciding that it's cheaper to borrow than buy.</p> <p>People in their 20s are the ones establishing and taking advantage of some of these trends. Some of it is due to lifestyle or fashion preference, but make no mistake that saving money is also a big part of it.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fthe-financial-perks-of-being-in-your-20s&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FThe%2520Financial%2520Perks%2520of%2520Being%2520in%2520Your%252020s.jpg&amp;description=The%20Financial%20Perks%20of%20Being%20in%20Your%2020s"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/The%20Financial%20Perks%20of%20Being%20in%20Your%2020s.jpg" alt="The Financial Perks of Being in Your 20s" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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-reasons-you-really-need-to-pay-yourself-first-seriously">7 Reasons You Really Need to Pay Yourself First (Seriously)</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/12-personal-finance-skills-everyone-should-master">12 Personal Finance 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/8-things-millennials-can-do-right-now-for-an-early-retirement">8 Things Millennials Can Do Right Now for an Early Retirement</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/8-ways-to-build-your-financial-self-esteem">8 Ways to Build Your Financial Self Esteem</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/first-rule-of-financial-wins-avoid-losses">First Rule of Financial Wins: Avoid Losses</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Frugal Living budgeting compound interest culture discounts investing jobs millennials perks saving money spending young people Wed, 03 Jan 2018 10:00:07 +0000 Tim Lemke 2081069 at http://www.wisebread.com First Rule of Financial Wins: Avoid Losses http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/first-rule-of-financial-wins-avoid-losses" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/business_financial_opportunity.jpg" alt="Business Financial Opportunity" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The task of accumulating wealth and ensuring long-term financial security is often discussed alongside the idea of winning. And while it's fine to think of financial planning this way, it may be just as important to simply <em>avoid losing</em>. Smart investing involves looking for gains over time, but also escaping costly losses when the market goes down. Let's take a look at some ways we can &quot;win&quot; financially simply by avoiding losses.</p> <h2>1. Avoid overpriced stocks</h2> <p>The last thing you want is to buy a stock and immediately see it take a dive. If you are a young investor with a long time horizon, you can usually get away with putting your money in the market at any time. But it is important for anyone to avoid buying stocks when they are overvalued and perhaps due for a correction.</p> <p>It's tempting to buy a stock if shares have been moving upward, because we all like to invest in companies that are doing well. At a certain point, however, share prices can be too high based on the company's earnings. It's important to learn the basics of how to tell if a stock is fairly valued.</p> <p>A price-to-earnings ratio is an important consideration in valuing a stock. A P/E ratio is the share price divided by earnings-per-share (EPS). A P/E of more than 25 is on the high side, though P/Es vary by industry. Take time to learn what typical P/E ratios are for the sector you're looking to invest in.</p> <p>Another rule of thumb to keep in mind: If a stock has been consistently setting new 52-week highs, it may be due for a pullback.</p> <p>If a company's share prices seem overvalued, it's wise to practice patience or look elsewhere for better value. This will decrease your likelihood of losing money on the investment.</p> <h2>2. Know when to cut your losses</h2> <p>One common piece of investing advice is to stay the course and avoid panicking when shares of stock fall. This is sensible, but it should be balanced with an awareness of when to cut your losses.</p> <p>There's a fine line between being patient and sticking with a dud investment for too long. It's OK to stick with an investment if the company's underlying financials are still strong, but if the company is seeing shrinking profit margins and revenues, or has completely lost its competitive advantage, it may be time to cut and run. In particular, hanging onto investments during major market downturns can result in massive losses that will take years to recover from. Some financial advisers suggest selling an investment if it drops more than 10 percent in a short amount of time. (See also: <a href="http://www.wisebread.com/10-signs-a-stock-is-about-to-tank?ref=seealso" target="_blank">10 Signs a Stock Is About to Tank</a>)</p> <h2>3. Be truly diversified</h2> <p>Most investors know to avoid investing in too much of one thing. Diversification of investments is a key way to avoid a big loss. But sometimes, it's possible to think you are diversified when you aren't. For example, you may think you are diversifying your portfolio by investing in both U.S. based and international stocks. But have you considered that many U.S. companies already have a huge presence internationally? And even if you think you are diversified with various investments and asset classes, many investments still perform similarly, meaning that you're not as diversified as you think.</p> <p>Financial advisers have varying thoughts on the ideal way to diversify. Of course, everyone's portfolio will differ depending on their age, risk tolerance, and projected retirement year. But the basic tenet applies: Don't be too invested in one area.</p> <h2>4. Watch out for investment fees</h2> <p>When you buy and sell stocks and other investments, you'll likely be stuck paying a variety of fees. There are transaction costs for every trade, and maintenance fees and other costs for mutual funds and ETFs. These are costs that are taken out of money you invest, so you not only lose money immediately, but lose out on its potential gains. This can add up to thousands of dollars in the long run.</p> <p>Savvy investors know how to invest well while avoiding high costs. Discount brokerages such as Fidelity and Scottrade allow you to buy and sell stocks for as little as $4.95 per trade. Mutual fund companies including Vanguard, T. Rowe Price, and others have become more cognizant of fees, and are increasingly offering funds with super-low expense ratios. (Generally speaking, it's best look for funds that charge less than 1 percent for expenses.)</p> <p>Keep your costs low when you invest, and you'll find that avoiding these &quot;losses&quot; can boost your gains.</p> <h2>5. Understand when the markets may be due for a dip</h2> <p>It's very difficult to time the stock market, and for young investors, it's a good idea to just invest as soon as you can. But it's also possible to avoid big losses by recognizing when the markets may be due for a correction. If it seems like stocks are priced too high based on their earnings, that's one bad sign. A slowdown in economic growth is another, and you should be wary of a spike in inflation and interest rates, too. It's also worth noting if companies are downgrading their earnings predictions for the upcoming quarter, as that could be a sign that business executives are pessimistic. If you recognize any or all of these signs, it may be worth waiting a while before investing too heavily.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Ffirst-rule-of-financial-wins-avoid-losses&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FFirst%2520Rule%2520of%2520Financial%2520Wins_%2520Avoid%2520Losses.jpg&amp;description=First%20Rule%20of%20Financial%20Wins%3A%20Avoid%20Losses"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/First%20Rule%20of%20Financial%20Wins_%20Avoid%20Losses.jpg" alt="First Rule of Financial Wins: Avoid Losses" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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/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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/73-easy-ways-to-save-money-today">73 Easy Ways to Save Money Today</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance apps budgeting cutting expenses energy efficient fees insurance investing losing saving spending stocks winning Tue, 14 Nov 2017 09:31:09 +0000 Tim Lemke 2053314 at http://www.wisebread.com 9 Family Money Matters Your Kids Don't Need to Know http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-family-money-matters-your-kids-dont-need-to-know" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/working_at_home_1.jpg" alt="Working at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you have kids, there will come a time when you want to teach them about money. Some basic personal finance lessons can go a long way toward helping your children understand things like spending, saving, and even investing.</p> <p>But there are many things about your family's finances that your children don't need to know right away, even if they are curious. Information about your family's income, debt, and spending can be confusing and even troubling to younger kids. And kids are prone to share this information when it's best to keep it private.</p> <p>Older teenagers may benefit from learning more about your financial situation as they approach an age when they will be earning money and making purchases on their own. But for younger children, especially, it may be best to keep the following financial information close to your vest. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?Ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>1. Your income</h2> <p>Your kids don't need to know how much money you make. All they need to know is that you love them and will care for them. Younger kids, in particular, have no real sense of the value of money anyway. You could tell them you earn $100 a year and they would think you are rich.</p> <p>Children also have a habit of blabbing, and you never want to find your children bragging to other kids &mdash; or even worse, their parents &mdash; about how much money you earn. Your kids will be better off learning that happiness and financial security have less to do with your income and more to do with what you do with money when you have it. This means teaching them about saving, about being charitable to others, and about being appreciative of what you have.</p> <h2>2. Which parent earns more</h2> <p>It's common for one parent to earn more than the other. This is especially true if one parent chooses to stop working or works part-time to raise a family. Children should generally be left oblivious to which spouse is higher earning because salaries don't represent a person's full contribution to the family.</p> <p>If one parent stops working, it may mean they are taking on a greater share of household responsibilities. And it's also important to note that many of our more important professions are not particularly high paying. A schoolteacher may bring in less money than their banker spouse, but is likely to work just as hard. Rather than share details with your child about which spouse earns more, simply explain to them the value of all work, and give them an appreciation of the broad, non-monetary contributions needed to keep a household going.</p> <h2>3. Your retirement balance</h2> <p>Let's say you've been saving aggressively for retirement and have several hundred thousands of dollars saved. Now, let's say you just told your daughter she can't have ice cream because it costs too much. A child, if she was aware of your retirement savings, might find this baffling. It's hard for young people to grasp that you may have a large amount in savings but are still pinching pennies.</p> <p>Your retirement savings and overall net worth is not something that should be shared too widely. A child who finds out his dad has hundreds of thousands of dollars in the bank may be motivated to brag, and that's not good. So it's best to keep information about your retirement plan to yourself.</p> <h2>4. Your debts</h2> <p>Debt can be a major source of family stress, but it's a stress that only parents should carry. Your worries about how you'll pay off that credit card bill or how you'll make those car payments are your worries, not your kids'. There may be instances when you need to be honest with your children if there is money trouble, and older children may benefit from lessons in money management, credit, and the cost of borrowing. But as long as you are able to provide and care for your kids, they are best left unaware of your financial debt burden.</p> <h2>5. The price of your home</h2> <p>The cost of your house is public information, but that doesn't mean you need to broadcast it to your kids. The only thing that kids need to know about housing is that they have a roof over their head. What you paid for your house should, to the best of your ability, be kept between the buyer, seller, and real estate agent.</p> <p>Additionally, it's best not to share too much detail about mortgage debt. If they ever get a hint that you are struggling to make mortgage payments, that will only lead to anxiety.</p> <h2>6. What you inherit</h2> <p>If a relative passes away and leaves some assets to you, the specifics of that inheritance should be kept as private as possible. This is especially true if the inheritance is quite large. If a child learns of a sizable windfall and shares that information with others, that can lead to jealous family members or friends, and could even make you a target for thieves and scammers.</p> <p>Sometimes, certain family members receive less than others, or are cut out of the will altogether. This can result in family strife that children should not be concerned about.</p> <p>For older children, it is OK to explain to them how inheritances work, as they may take comfort in believing you'll leave them something when you pass. And there will be a time when you need to tell older children about their own inheritance so they have an idea of what they may have to manage.</p> <h2>7. The cost of gifts</h2> <p>Kids have a way of believing that the most expensive item is always the best. They'll reject something if they believe you got it at a deep discount or (gasp!) second-hand. So parents may be best served by not indicating how much they spent on that video game system or that baseball bat. By hiding the cost of items you buy for your kids, they may be more inclined to evaluate the gift on its merits.</p> <h2>8. Child support payments and alimony</h2> <p>If you and your spouse have divorced, you may be on the hook for child support payments, alimony, or both. These costs are usually determined by courts and can be a major source of tension between parents. The children are best left unaware of these details and any drama or conflict surrounding them. It may be comforting to a child if they are aware that support payments are being made, but sharing specific dollar figures can be problematic.</p> <h2>9. In some cases, the cost of college</h2> <p>This is a tricky one. If your child will end up paying for their own college education, he or she will obviously need to know what they'll be on the hook for. And if you are paying for all or part of college, they will be well served to know how much of a financial commitment you are making toward their education. (It will comfort them to know you are saving as much as possible.) But this information should not come to them immediately. A child's first priority should be to stay in school and get good grades. A young high schooler does not need to be burdened with the stress of whether they need to get scholarships or whether they'll be on the hook for student loans later.</p> <p>It's also important to understand that final college costs can vary from family to family, depending on scholarships and financial aid. A wealthy family might pay the full price to send their child to an Ivy League school, while a low-income family may pay next to nothing. This family financial information is really nobody's business, so it's important to be judicious in what you share with your child.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-family-money-matters-your-kids-dont-need-to-know&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Family%2520Money%2520Matters%2520Your%2520Kids%2520Don%2527t%2520Need%2520to%2520Know.jpg&amp;description=9%20Family%20Money%20Matters%20Your%20Kids%20Don't%20Need%20to%20Know"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Family%20Money%20Matters%20Your%20Kids%20Don%27t%20Need%20to%20Know.jpg" alt="9 Family Money Matters Your Kids Don't Need to Know" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</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-money-moves-every-single-parent-should-make">5 Money Moves Every Single Parent Should Make</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/4-myths-about-divorce-and-money-debunked">4 Myths About Divorce and Money, Debunked</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-reasons-average-people-should-consider-a-prenup">6 Reasons Average People Should Consider a Prenup</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family alimony borrowing child support children debt divorce high earners income kids retirement spending Wed, 25 Oct 2017 08:00:07 +0000 Tim Lemke 2038887 at http://www.wisebread.com 5 Times Splurging on Experiences Is a Bad Idea http://www.wisebread.com/5-times-splurging-on-experiences-is-a-bad-idea <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-times-splurging-on-experiences-is-a-bad-idea" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_having_a_duh_moment.jpg" alt="Man having a duh moment" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're a regular reader of Wise Bread, you know that we encourage you to <a href="http://www.wisebread.com/4-reasons-you-should-splurge-on-experiences-not-things?ref=internal" target="_blank">spend your money on experiences</a> rather than material things. You will be happier if you make great memories, rather than stockpiling great electronics, clothes, shoes, watches, and jewelry. But there are two sides to every story. And sometimes, these experiences are just not worth the splurge.</p> <h2>1. Exotic destination weddings</h2> <p>We've all received those wedding invitations that, at first, seem like a dream come true. We picture ourselves tanning on a beach in Hawaii or Jamaica with a cocktail and a smile. But that's usually not the case. Destination weddings don't give you a lot of time to yourself. You are there for the bride and groom. It's their big day, they've spent a lot of money on it. You'll be expected to go to rehearsals, receptions, and other parties. You may well have to hang out with a bunch of people you don't know or even like all that much. And to top it all off, you're paying through the nose to go on this trip. It will likely cost thousands. You might make some good memories from it, but this isn't the same as a vacation on your own terms. (See also: <a href="http://www.wisebread.com/6-ways-to-resist-a-splurge?ref=seealso" target="_blank">6 Ways to Resist a Splurge</a>)</p> <h2>2. Tickets to the Super Bowl</h2> <p>Blasphemy, right?! Well, not really. When it comes down to it, a trip to the Super Bowl is a great experience if you can get it for the right price. But if you're buying the tickets through the secondary market, or even worse, getting an &quot;On Location Experience,&quot; you are going to be spending a small fortune. SeatGeek.com states that the <a href="https://seatgeek.com/events/super-bowl" target="_blank">average price of a Super Bowl 52 ticket</a> will be between $2,500 and $3,000. For those On Location Experiences, you're looking at between $6,000 to $12,000. Up to $12,000 to see a football game. Now, think about the experience you're going to have for that money. You're there, in the stadium, but most of the time you're actually watching the action on the big screen projection. You're paying an arm and a leg for food and drinks. You also had to pay to get to the Super Bowl and stay in a hotel, unless you're lucky enough to live in that city. (See also: <a href="http://www.wisebread.com/how-one-man-used-credit-card-rewards-to-go-to-the-last-11-super-bowls?ref=seealso" target="_blank">How One Man Used Credit Card Rewards to Go to the Last 11 Super Bowls</a>)</p> <p>What else could you do with that money? How about two weeks in Europe? Or Japan? Or paying down debt? Wouldn't that be a better use of your money? Forget the Super Bowl experience, and watch it on a big screen at home with your friends and family.</p> <h2>3. Extremely high-priced restaurants</h2> <p>There are some restaurant experiences that balance good food with a reasonable check at the end of the meal. And there are others that just blow the budget completely out of the water. You may be thinking that once, just once, you want to spend a whole lot of money on an amazing meal &hellip; just to experience it. Well, honestly, you will not be getting your money's worth. For example, <a href="http://www.wisebread.com/10-of-the-worlds-most-expensive-restaurants" target="_blank">Sublimotion in Spain</a> charges over $2,000 per person for a series of 15-20 small courses. It gets exceptional reviews of course, but $2,000 for a meal is just an absurd waste of your cash, and you will find stunning food in your area for way, way less money. (See also: <a href="http://www.wisebread.com/the-worlds-most-affordable-michelin-starred-restaurants?ref=seealso" target="_blank">The World's Most Affordable Michelin-Starred Restaurants</a>)</p> <h2>4. A trip on the Orient Express</h2> <p>I mean, it's a train. It may be the most famous train the world, but is it worth the cost to ride? If you were to book a <a href="https://www.luxury-trains.co.uk/orient-express/venice-simplon-orient-express-train-fares.htm" target="_blank">cabin suite from Paris to Istanbul</a>, the cost is almost $16,000! If you instead opt for a double or single room, it's still up there at around $8,000! And what do you get for that? Honestly, not all that much. Some nice food, some fancy service, and nice views.</p> <p>However, if you purchase a First Class InterRail ticket for the same journey, with the same views, you will only be out of pocket around $400 per person. Don't bother with the Orient Express. It's overpriced and underwhelming, and includes a lot of wood paneling and polished brass.</p> <h2>5. The big fight</h2> <p>Despite the phenomenal rise in popularity of UFC, world-class boxing matches still command massive audiences. And it seems massively inflated ticket prices, too. In 2015, Forbes reported that the Floyd Mayweather Jr. versus Manny Pacquiao fight had ticket prices so incredible they broke records. As hard as it is to believe, some tickets went on sale for upward of $350,000! That's right, over a quarter of a million dollars, for a fight that many thought did not come close to living up to the title of &quot;Fight of the Century.&quot; If you're thinking, <em>Well, yeah, but most tickets didn't cost anywhere near that price,</em> then you're right. The worst seats in the house were being sold for over $3,500 per ticket. And that would have gotten you on the upper level with a view that left a lot to be desired. People were spending upward of $150 to attend the weigh-in for that fight! And these fights will continue to garner a lot of attention, and ask for grossly-inflated sums of money. Watch it on Pay-Per-View if you really want to see it, and split the cost with your friends.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-times-splurging-on-experiences-is-a-bad-idea&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Times%2520Splurging%2520on%2520Experiences%2520Is%2520a%2520Bad%2520Idea.jpg&amp;description=5%20Times%20Splurging%20on%20Experiences%20Is%20a%20Bad%20Idea"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Times%20Splurging%20on%20Experiences%20Is%20a%20Bad%20Idea.jpg" alt="5 Times Splurging on Experiences Is a Bad Idea" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/5-times-splurging-on-experiences-is-a-bad-idea">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-12"> <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/24-ways-to-have-a-blast-this-weekend-while-spending-0">24 Ways to Have a Blast This Weekend While Spending $0</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/should-you-go-on-vacation-while-youre-in-debt">Should You Go on Vacation While You&#039;re in 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-get-out-of-social-obligations-that-break-your-budget">How to Get Out of Social Obligations That Break Your Budget</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Entertainment expensive things experiences material things saving money spending splurges travel vacation weddings Thu, 27 Jul 2017 09:00:04 +0000 Paul Michael 1990724 at http://www.wisebread.com 7 Financial Differences Between Millennials and the Next Generation http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-financial-differences-between-millennials-and-the-next-generation" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/group_of_friends_having_fun.jpg" alt="Group of friends having fun" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>We hear a lot about millennials and their money, but what about the generation behind them? Members of Generation Z are now approaching adulthood, and have their own unique characteristics. They may also have their own unique attitudes toward money. How do millennials and Generation Z differ? The answer to those questions could have fascinating implications for our economy.</p> <h2>1. Generation Z may be more frugal</h2> <p>Members of Generation Z may only now be entering adulthood, but there are indications that they are more conservative with their money than previous generations. Perhaps it's because this generation has grown up at a time of unrest, from the attacks of September 11, 2001 and the aftermath, to the near collapse of the financial sector at the end of the last decade.</p> <p>The 2016 Annual State of Credit published by Experian noted that Generation Z has an average of 1.29 credit cards, compared to 2.02 for millennials. They also have about half as much debt overall, though it's worth noting that many are entering college age, when debt levels can soar.</p> <h2>2. Generation Z is totally cool with technology</h2> <p>Millennials are pretty tech-savvy, but Generation Z is the first generation that's never known a time without the internet. This means they should be entirely accepting of online banking and investing, using mobile payment apps, and similar innovations &mdash; though they will be cautious, due to their awareness of high-profile data breaches. Generation Z will also have no recollection of the tech bubble burst of the late 1990s, so they'll be perfectly comfortable investing in tech stocks.</p> <h2>3. Generation Z wants career stability</h2> <p>There is some evidence that members of Generation Z prefer to go after careers that are solid and pragmatic. The consulting firm Altitude reported that this generation may be less entrepreneurial and more focused on stability and earning enough money to avoid financial struggles.</p> <p>Another report from Bainbridge Consulting found that more than half Generation Z-ers feel like they need to get work experience as soon as possible in order to succeed. The broader economic implications of this risk aversion will be worth watching in the coming years.</p> <h2>4. Millennials may be less focused on retirement</h2> <p>Even though millennials are the older generation, it's Generation Z that may already be focused on retirement savings. One study from the Center for Generational Kinetics found that about 12 percent of Gen Z-ers already have some retirement savings. Another 35 percent said they expect to begin saving once they hit their 20s. Some of this may be influenced by parents who urged them to save; more than one out of every five people in Generation Z reported having savings accounts by age 10.</p> <h2>5. Millennials are more loyal to brands</h2> <p>Good luck trying to get a millennial to switch from an Apple to an Android phone, or vice versa. But those from Generation Z don't have the same kind of steadfast allegiance to products. A study by IBM said two-thirds of this young generation prefer high-quality products that last, and will do their homework to find the best value, regardless of brand.</p> <h2>6. Generation Z shops smarter</h2> <p>Because of their internet savvy, members of Generation Z know how to comparison shop and get information about products online. Research from MarketingProfs showed that more than half of people in Generation Z use YouTube and other social media sites to research products before they buy.</p> <h2>7. Generation Z is wary of student debt</h2> <p>About two-thirds of millennials say they have more than $10,000 in student loan debt. This reality has led Generation Z to be more thoughtful when examining the value of higher education. One survey by Adecco reported that 21 percent of Generation Z students said they were concerned about the price of tuition, compared to 13 percent for millennials. There are also indications that Generation Z is less inclined to go after a costly advanced degree.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-financial-differences-between-millennials-and-the-next-generation&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Financial%2520Differences%2520Between%2520Millennials%2520and%2520the%2520Next%2520Generation.jpg&amp;description=7%20Financial%20Differences%20Between%20Millennials%20and%20the%20Next%20Generation"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Financial%20Differences%20Between%20Millennials%20and%20the%20Next%20Generation.jpg" alt="7 Financial Differences Between Millennials and the Next Generation" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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-reasons-to-cut-millennials-some-slack-about-their-money">10 Reasons to Cut Millennials Some Slack About Their Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-moves-to-make-the-moment-you-get-a-promotion">8 Money Moves to Make the Moment You Get a Promotion</a></span> </div> </li> <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/first-rule-of-financial-wins-avoid-losses">First Rule of Financial Wins: Avoid Losses</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance career goals generation z investing millennials retirement saving spending technology youth Mon, 17 Jul 2017 08:00:12 +0000 Tim Lemke 1982851 at http://www.wisebread.com 10 Reasons to Cut Millennials Some Slack About Their Money http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-reasons-to-cut-millennials-some-slack-about-their-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/bad_news_headlines.jpg" alt="Bad news headlines" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Millennials are getting beat up these days for their money habits. According to observers, people between the ages of 18 and 34 are financially irresponsible &mdash; one CEO even suggested they are spending too much money on <a href="http://time.com/money/4778942/avocados-millennials-home-buying/" target="_blank">pricey avocados</a> when they should be saving for a home.</p> <p>But these reports are unfair. There's a lot of evidence to suggest that from a financial standpoint, millennials may be facing unique challenges that older generations simply didn't deal with. (See also: <a href="http://www.wisebread.com/7-ways-millennials-are-better-with-money-than-you-are?ref=seealso" target="_blank">7 Ways Millennials Are Better With Money Than You Are</a>)</p> <p>Should we take it easy on millennials when it comes to their money habits? Perhaps, and here's why.</p> <h2>1. College is really expensive</h2> <p>We encourage young people to attend college, but according to Student Loan Hero, the average member of the class of 2016 graduated with more than $37,000 in student loan debt. Borrowers between the age of 20 and 30 spend an average of more than $350 a month to pay off these loans.</p> <p>This student debt is largely the result of rising college costs: Public school costs have risen 9 percent over the last four years, and private universities have risen 13 percent. A student attending a four-year private school now pays an average of $45,000 each year. While it's true that young adults should be aware of the cost of college when deciding if and where to attend, it's also clear that many are now handcuffed by their student loan burdens. (See also: <a href="http://www.wisebread.com/7-unique-ways-millennials-are-dealing-with-student-loan-debt?ref=seealso" target="_blank">7 Unique Ways Millennials Are Dealing With Student Loan Debt</a>)</p> <h2>2. Wages haven't gone up</h2> <p>One of the biggest problems with the current economy is that it's been a long time since wages have gone up in real terms. In fact, there's evidence that wage growth has basically been stagnant since the 1970s, and any wage growth at all has been concentrated to the top earners.</p> <p>Anyone without a college degree has seen their wages decline, on average, in the last decade. It's easy to accuse millennials of making bad financial choices, but there's very little evidence they are rolling in the dough to begin with.</p> <h2>3. Housing is really costly</h2> <p>In many parts of the country &mdash; especially those with good job opportunities for millennials &mdash; it's nearly impossible to find an affordable house or apartment. A recent survey of 24,000 renters by ApartmentList.com found that millennials would have to wait more than a decade to save enough for a 20 percent down payment on a home in many markets. In some cities, including San Francisco and Austin, the wait is as much as 19 years.</p> <p>There are simply not enough affordable, entry-level homes available for millennials to buy, and with interest rates rising, the problem is only going to get worse.</p> <h2>4. Saving for retirement is mostly on them</h2> <p>If you're a baby boomer or even a GenXer, you might have worked for a company that offered generous pensions to its employees. For much of the 20th century, workers could find decent jobs at big companies and know they'd be getting a monthly check even after retirement.</p> <p>Nowadays, it's up to the individual to save for retirement, using a 401(k) plan (if they have access to one) or individual retirement accounts (IRAs). No doubt, you can generate a lot of wealth this way over time, but most of the savings will have to come from the worker, not the employer. And for many young people, setting money aside for retirement is an afterthought if they are also facing student loan debt and other expenses. (See also: <a href="http://www.wisebread.com/4-things-millennials-should-do-today-to-prepare-for-retirement?ref=seealso" target="_blank">4 Things Millennials Should Do Today to Prepare for Retirement</a>)</p> <h2>5. They've lived through several market crashes</h2> <p>For millennials, the stock market and economy have done quite well during their time on Earth, but there were several big events that may have left them wary about investing.</p> <p>The stock market endured three straight years of bad losses from 2000 to 2002, due to the dot com bubble bursting and the terrorist attacks of September 11. The markets tumbled dramatically again in 2008 after the financial crisis. These events may have taken place during a millennials' formative years, and the headlines may have clouded their belief in the power of investing. (See also: <a href="http://www.wisebread.com/7-reasons-millennials-should-stop-being-afraid-of-the-stock-market?ref=seealso" target="_blank">7 Reasons Millennials Should Stop Being Afraid of the Stock Market</a>)</p> <h2>6. Many don't use credit cards at all</h2> <p>We often assume that millennials have a ton of credit cards. But according to one survey, millennials have fewer cards than most Americans. BankRate.com reported last year that only one-third of people under the age of 30 have a credit card. (See also: <a href="http://www.wisebread.com/best-credit-cards-for-millennials?ref=seealso" target="_blank">Best Credit Cards for Millennials</a>)</p> <h2>7. Everybody is marketing to them</h2> <p>It's easy to say that millennials should be more frugal, but that's easier said than done when America's marketing dollars are bombarding that exact generation. Ask any advertiser what their coveted demographic is, and they'll likely tell you they deliberately target people between the ages of 18 and 34.</p> <p>On one hand, we want young people to be responsible with their money. On the other, we know that consumer spending by that same group is often a big driver of the American economy.</p> <h2>8. They are more generous than you think</h2> <p>It may be frustrating to see millennials with poor personal finance skills. But while they may not necessarily be smart with money, they are not as selfish as you might believe.</p> <p>Millennials basically invented the concept of crowdfunding, which has led to sites such as GoFundMe and others that have supported nonprofits. One survey from 2014 noted that 84 percent of millennials donated to a charity that year, and that they are more likely to give on their own accord rather than from a top-down, corporate-driven approach.</p> <h2>9. They grew up in a fairly prosperous era</h2> <p>People who grew up during the Great Depression learned the hard way about living frugally and making every penny stretch. Those who grew up during World War II remember making severe sacrifices. Even baby boomers remember the gas shortages and economic stagnancy of the 1970s.</p> <p>By contrast, millennials have grown up in a time of relative prosperity. Millennials have never been forced to learn how to save and invest as a matter of survival. Is it their fault that they grew up in relative comfort compared to older generations?</p> <h2>10. Luxury items are practically necessities</h2> <p>Older people like to accuse younger generations of spending money needlessly, but think of the expenses they have that did not exist even 20 years ago. Cellphones? Tough to get by without one these days. High-speed internet service? Yeah, that's almost as important as electricity. Millennials have considerable expenses each month that were once considered luxury items, but are now considered vital.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F10-reasons-to-cut-millennials-some-slack-about-their-money&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520Reasons%2520to%2520Cut%2520Millennials%2520Some%2520Slack%2520About%2520Their%2520Money.jpg&amp;description=10%20Reasons%20to%20Cut%20Millennials%20Some%20Slack%20About%20Their%20Money"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/10%20Reasons%20to%20Cut%20Millennials%20Some%20Slack%20About%20Their%20Money.jpg" alt="10 Reasons to Cut Millennials Some Slack About Their Money" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation">7 Financial Differences Between Millennials and the Next Generation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-moves-for-the-newly-independent">8 Money Moves for the Newly Independent</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-perks-of-being-in-your-20s">The Financial Perks of Being in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-moves-to-make-the-moment-you-get-a-promotion">8 Money Moves to Make the Moment You Get a Promotion</a></span> </div> </li> <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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance baby boomer future generation x generations habits investing millennials retirement saving spending young adults Fri, 30 Jun 2017 08:00:08 +0000 Tim Lemke 1970114 at http://www.wisebread.com 5 Ways Being Late on Tech Trends Saves You Money http://www.wisebread.com/5-ways-being-late-on-tech-trends-saves-you-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-ways-being-late-on-tech-trends-saves-you-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/you_have_got_to_meet_me_at_the_sale.jpg" alt="You have got to meet me at the sale!" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Late adopters are not people who hate technology, think trends are evil, and spend their time sitting in candlelit rooms grumbling about the modernization of things that used to matter. Late adopters are a segment of the consumer population who don't feel the need to jump on a new tech or trend as soon as it's available. They wait. They eye before they try. They are also often the last to try, and they save money and get more value out of what they do decide to buy. Here's how you can, too.</p> <h2>1. Skip the newest version</h2> <p>People often think of late adopters in the context of new technology. Late adopters won't be in line for the latest iPhone, or fighting crowds for the newest smart home thermostat. Their willingness to wait means they avoid the premium prices that come with getting the newest thing, now.</p> <p>For example, older versions of the iPhone typically drop in price by $100 when Apple releases the newest version. Late adopters save that $100, at a minimum. Potentially, they can save more by buying a used phone in great condition from someone who can't wait. (See also: <a href="http://www.wisebread.com/5-smart-ways-to-save-on-smartphones?ref=seealso" target="_blank">5 Smart Ways to Save on Smartphones</a>)</p> <h2>2. Save time and data</h2> <p>Late adopters save by avoiding the time and money spent on buying relatively untested tech trends, or gadgets. Tech is a competitive industry; not all that launches will last. Early adopters who sign on for the latest service or product provided by a startup get the thrill of the new. They also get the hassle of the new: keeping up with continual upgrades, dealing with bugs, and having to move (or lose) their data when a service shuts down. (See also: <a href="http://www.wisebread.com/tech-life-8-reasons-why-you-shouldn-t-be-an-early-adopter?ref=seealso" target="_blank">8 Reasons Why You Shouldn't Be an Early Adopter</a>)</p> <h2>3. Avoid premium pricing</h2> <p>The premium pricing concept translates to many industries beyond fashion. If you're set on having the newest designs, as soon as they're released, you'll pay more for it. This &quot;hunger marketing&quot; strategy creates a sense of urgency and scarcity, and many consumers buy into it. Literally.</p> <p>Late adopters avoid price markups by waiting before purchasing. That new fashion trend highlighted on the main display will be in the bargain bin in a few weeks, and the price will drop accordingly. The timeline might be a bit longer, but the same goes for new tech toys.</p> <h2>4. Wait on tech stocks</h2> <p>By waiting, you can benefit financially by avoiding trend-chasing, a common strategy in the stock market. Prices on &quot;trending&quot; stocks increase to a maximum, then fall, sometimes dramatically. If you chase those trends, purchasing as the trend is growing or peaking, you might overpay.</p> <p>Seasonal cycles and holidays in the stock market can favor late adopters, as well. Trading activity, and prices, follow predictable patterns. People who are willing to wait can buy and sell at the best time, rather than taking what they can get right away.</p> <h2>5. Evaluate your true necessities</h2> <p>Turns out, the necessities of life aren't always necessities. If you talk to the sales rep at your nearest baby goods warehouse, you'll get a long list of items that you simply must have. If you talk to a seasoned parent, you'll get a much shorter list: the essentials, and those daily-use items that save a parent's sanity more than a few times.</p> <p>Taking the late adopter approach for a new baby, or for family entertainment, or for your tween's wish list will help you filter it to a shorter, smarter list. Many things seem optimum and exciting when we first hear about them and when our friends all have them. The crystal-clear voice of experience will save you money if you give it enough time.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/annie-mueller">Annie Mueller</a> of <a href="http://www.wisebread.com/5-ways-being-late-on-tech-trends-saves-you-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/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/the-5-best-pet-cameras">The 5 Best Pet Cameras</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/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-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-best-smart-alarm-clocks">The 5 Best Smart Alarm Clocks</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/the-5-best-usb-powered-fans">The 5 Best USB-Powered Fans</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-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/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/7-biggest-ways-procrastination-hurts-your-finances">7 Biggest Ways Procrastination Hurts Your Finances</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/73-easy-ways-to-save-money-today">73 Easy Ways to Save Money Today</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-to-build-your-financial-self-esteem">8 Ways to Build Your Financial Self Esteem</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-types-of-friends-who-are-costing-you-money">10 Types of Friends Who Are Costing You 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