life lessons

Avoid These 5 Mistakes When Retiring Abroad

Nick Wharton — Wed, 20 Dec 2017 09:30:10 +0000

Everyone’s read horror stories about retirees who finally take the plunge to realize their long-held dreams of relocating abroad, only for it all to quickly turn sour. Fantasies of tropical paradises, year-round sunshine, and exotic culture soon fade when they figure out they’ve made various errors in the process. Finances disappear, properties never materialize, and credit scores are shredded, leaving them in a far worse position than before their misinformed adventure began.

You don’t have to follow in their footsteps. Many of the small hiccups that come with moving abroad are unavoidable, but with proper planning, you can prevent any large mishaps that may derail your dream. Here are five of the biggest overseas retirement mistakes people make, and how to avoid them.

1. Buying property without due diligence

Buying property in the U.S. is often a long and complicated process, but purchasing abroad is a totally different ballgame. Each country has its own individual property laws that tend to have some idiosyncrasies that can trip you up if you’re not aware of them. This can become extra complicated if you're unable to speak the language, and some unscrupulous agents and developers sometimes take advantage of this naiveté.

There are a few golden rules you should follow when buying property overseas.

Never buy without seeing the property. This is still surprisingly common among people buying overseas, but contains all kinds of pitfalls, including the risk that the property may not even exist.
Always get anything you’ve agreed upon with the vendor in writing; otherwise, you make it extremely easy for them to deny it altogether.
Check the reputation of the company you’re buying through. This is best done both online and, if possible, by talking to people who have previously bought through them.

2. Not having an exit plan

Some people see it as defeatist to have an exit plan when retiring overseas, but in fact, it’s one of the most sensible things you can do. There are circumstances that could make you want or need to move back to the U.S. — many of them completely outside of your control. Political instability, currency fluctuations, health issues, and family situations at home are all potential causes.

The most important thing is that your plan allows you to get out of any crisis that may arise with minimal or no need for financial assistance. That means you should have funds set aside and dedicated solely to getting you back home safely, covering at the very minimum the cost of flights. You should also figure out how to get in touch with the closest U.S. consulate or embassy in an emergency. (See also: 5 Details You Shouldn't Neglect When Retiring Overseas)

3. Failing to file U.S. tax returns

Some people adopt an “out of sight, out of mind” approach when it comes to taxes after they leave the U.S., but be aware this is absolutely not the attitude of the IRS. Unless you have renounced your U.S. citizenship, you’re still required to file your annual income tax returns. Failure to do this can lead to you incurring interest due on any amount you owe, plus penalties. Note that even if you don’t owe anything, the IRS requires you to file a return.

You’ll probably also be required to submit a Report of Foreign Bank and Financial Accounts, otherwise known as an FBAR. Current FBAR regulations state that anyone whose foreign financial accounts go over $10,000 at any time during the year will need to file one. (See also: 13 Financial Steps to Take Before Retiring Abroad)

4. Closing down U.S. bank accounts

A common financial mistake of overseas retirees is to close down all of their bank accounts in the U.S. once they move to their new country. While you’re going to need to open up a bank account in your new home for various reasons, it’s a bad idea to sever all your financial ties with the U.S. Keeping your bank accounts and credit cards open in the U.S. will help to protect your credit score. This would likely be quickly obliterated if you closed down all of your accounts overnight.

In nearly all cases, you’ll be able to use the internet or phone to easily manage any financial affairs you still have in the U.S., such as payments and transfers, without the hassle and time involved in going through foreign banks. Most importantly, you should probably maintain the larger part of your retirement wealth in the U.S. IRAs and 401(k)s aren’t easily transferred to foreign banks.

Though you may not continue to have an address in the U.S., you can switch your account so it’s registered to one belonging to a relative or close friend. Then you can simply manage all of your business online.

5. Not having an open mind

Retirement often precedes a huge period of change in a person’s life. For some people, it can mean figuring out who they are without work, and what they are going to spend their newfound free time doing. This can become heightened stress when you throw moving abroad into the mix.

Things that you enjoyed pre-retirement in the U.S. can suddenly seem trivial and unimportant in your new surroundings. But it’s possible that you won’t change one bit, and rather than exploring a host of new activities, you might simply want to do the same things you've always done, just in your new home country. So it’s important to head abroad with an open mind and allow yourself time to settle down and find a routine filled with things you love. (See also: 4 Moves That Guarantee a Great Retirement)

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

8 Everyday Problems You Don't Need Money to Solve

Mikey Rox — Mon, 18 Dec 2017 10:00:06 +0000

Money doesn't grow on trees. You've heard that from your parents time and again. It's their way of helping you understand the value of a dollar and encouraging financial savviness. As we get older and earn our own money, however, we sometimes push aside this nugget of truth and start doing silly things with our money — namely, throwing it at our problems to make them go away.

The idea of using money to solve a problem isn't new. But considering that money is hard to come by, this approach can negatively impact your bottom line. Instead of trying to fix these everyday problems with your wallet, we have some other creative (and free) solutions.

1. Clothing stains

It doesn't matter how careful you are, stains happen. Ink from a ballpoint pen can mysteriously appear on your favorite pants, and somehow that drop of spaghetti sauce always lands on your crisp white shirt. Or, if you live in my house, you constantly leave your lip balm in your pocket on laundry day and the oil spot-saturates only the clothes you've recently purchased. God, give me strength.

Some people make a mad dash to the nearest dry cleaners to remedy stubborn clothing stains, but there are plenty of items lying around the house capable of lifting these stains.

For a ballpoint pen stain, dab a small amount of rubbing alcohol onto the stain. Allow the alcohol to soak into the fabric for about 10 minutes, and then blot the stain with a damp cloth. Repeat the process as needed until the stain is gone. If you have oil or grease stains on your clothes, apply a small amount of dish soap directly to the stain. Let it sit for about 30 minutes and then rinse. Works like a charm. Repeat steps as necessary.

2. Boredom

Who hasn't been guilty of trying to cure boredom with money? Pulling out your wallet can open the door to a variety of entertainment and recreational options. But if you get into the habit of relying on money whenever you're unoccupied, you run the risk of ending up broke and perhaps in debt.

You don't have to sit home and stare at the walls, of course. Rather, get creative and think of ways to occupy your time for free. Invite a few friends over and pull out the board games. Or research local events and find free museums, concerts, or outdoor festivals. There's an abundance of no-cost activities available if you look for them. (See also: 50 Fun, Free Ways to Have a Great Time With Friends)

3. Your morning pick-me-up

If you're addicted to barista-made venti lattes, your bank account is probably suffering.

While there's nothing wrong with the occasional coffee run, this habit can add up to nearly $100 a month if you're buying pricey joe. You don't have to give up your favorite morning beverage though. Purchase a package of your favorite grounds and brew your own coffee at home. You'll save money and time.

If you're side-eyeing this tactic right now, take your cue from Shark Tank's Mr. Wonderful, Kevin O'Leary, who recently divulged that he never buys java on the go. Instead, he helps himself in his own kitchen for about 18 cents a cup and invests the rest of the money he would have spent on coffee elsewhere. It's one little way this rich guy stays rich. (See also: Here's How Rich You'd Be if You Stopped Drinking Expensive Coffee)

4. Hunger

Eating out is a convenience that's often easier than cooking, but staying in and preparing your own meals can result in serious savings, especially when you consider that the average household spends about $3,000 a year dining out. That's a lot of chicken fingers and fries, you guys.

Rather than hit the drive-thru on the way home or order delivery whenever hunger strikes, keep easy-to-prepare meals stocked in your refrigerator. And if you think you don't have enough food in the kitchen to prepare a meal, use a recipe search engine and search recipes based on the ingredients you already have. This will also help with letting expensive groceries go to waste because you're not using them before they go bad. (See also: How to Stop the Takeout Meal Cycle and Save)

5. Being out of shape

Some gyms offer a wide selection of workout equipment, swimming pools, and fitness classes, and these amenities are understandably appealing. But you don't need to sign a contract and spend money every month to lose weight or get into shape. You can walk, jog, bike, or play in the backyard with your kids for free. Squeeze in a few minutes of activity by turning on some music and dancing around the house, or browse the selection of free workout videos on YouTube.

I also recommend using the step counter on your smartphone to help you monitor your activity. Shoot for 10,000 steps a day — a fairly easy goal to attain if you're moderately active. (See also: 6 Apps That Pay You to Workout)

6. Lack of quality time with your partner

Between work, kids, and the million other things you have to do on a daily basis, sneaking in a few minutes of alone time with your significant other can be challenging. While it's tempting to hire a baby sitter if you need a night off together, chances are, you have at least one friend or relative who owes you a favor. Ask them to watch your kids for the night. As a token of your appreciation, return the favor later on (and maybe gift them a nice bottle of wine from your stash if your kids are ... on the energetic side).

7. Ants in the kitchen

These pesky intruders are masters at getting cozy in our kitchens. Even if you're a clean person, a scout or forager ant may stumble upon the tiniest crumb and call in the troops. Instead of spending money on an exterminator, use vinegar to deter ants.

When an ant finds a food source in your house, it leaves a scent trail for other ants to follow. Fortunately, a mixture of one part vinegar and one part water stops ants in their path. Vinegar disrupts their scent trail, making it nearly impossible for them to find their way to the food source. Wipe down countertops and window sills with the vinegar and water mixture, and spray the mixture along any ant trails you find in or outside your home. (See also: 8 Ways to Eliminate Ants Without an Exterminator)

8. Computer glitches

A computer can be your best friend — or your worst enemy when it isn't working properly. A computer technician can get a desktop or laptop working again, but since some technicians charge as much as $40 to diagnose a problem (not including the cost to fix an issue), learning how to solve computer glitches yourself can save money.

Before looking up a computer technician, search for troubleshooting help online. Your search results will likely produce forums with people discussing the same problem. This is an excellent place to find tips and detailed instructions for fixing many computer glitches yourself. You can potentially get your computer up and running without spending a dime.

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

How to Prepare Your Kids to Live On Their Own

Mikey Rox — Mon, 27 Nov 2017 09:00:07 +0000

Raise your hand if you have a young adult in your life who isn't ready for the "real" world.

It's incredibly common for 20-somethings (and even 30-somethings) to be a little more than clueless when it comes to living on their own. Being able to sustain your independence with both your money and lifestyle is a skill that everyone needs to learn, and every parent needs to start teaching while their kids are still young.

The good news is, this is very doable. If you're currently trying to mold impressionable youngsters into self-sufficient adults, here's how you can protect them from a very rude awakening when they go it alone.

1. Teach them basic life skills

I'm fortunate to have grown up in a family of blue-collar Americans who relied on their own wits and two bare hands to get by, and they were eager to pass their skills down to their children and grandchildren. Some of those skills took (I make a mean Bundt cake and clean the house with maid-like results), while others are still a work in progress (I call AAA when I have a flat tire; might as well get my money's worth, right?).

These basic life skills should be required teaching at home because your kids won't learn them any place else. I'm a huge advocate for integrating this sort of education into the public school curriculum — because honestly, what teenager needs to know calculus over income tax prep? — but as it stands, that responsibility falls to you. (See also: 7 Life Skills Your Kids Won't Learn in School)

As such, it's on you to school your offspring on all of life's dirty little jobs, including but not limited to:

Laundry and other household chores.
Grocery shopping, meal prep, and cooking for themselves.
Integrating coupons and discounts into their everyday purchases.
How credit and debit cards work.
How interest rates affect loans.
The difference between paying in cash versus relying on credit.
How to prepare a resume.
How to interview for a job (and not look like a slob).
How to comprehend basic contracts.
How to drive or use public transportation.
How to make and stick to a budget.

2. Manage their money for their first year of employment

Adults spend their money on frivolous things a lot of the time — so what do you expect kids to do? As soon as they get a job and start bringing home the bacon, they're rushing straight to their favorite stores for new clothes, taking their boyfriend or girlfriend out on a nice date, and loading up on drive-thru junk food.

We all did it.

You can curb that behavior by sitting your kid down and letting them know that the Bank of Mom and/or Dad will be in charge of their income for the first year of their first job. Offering them this kind of hands-on guidance and advice is a good way to teach teens how to save and spend wisely.

Open two accounts in their name — checking and savings — and put 40 percent of their paycheck into each of those accounts. Give them the leftover 20 percent to do whatever they'd like. When expenses arise for which you don't feel responsible, like if they receive a speeding ticket or want to go away for the weekend with friends, explain how the money will come from their checking account to pay for it. You may get some resistance at first, especially if they're used to you forking cash over, but they'll thank their lucky stars they know how to manage money when they strike out on their own.

3. Charge them rent to live in your home once they turn 18

Your kids are adults the day they turn 18 — a fact that your teenager has probably reminded you of a million times since they started high school — and it's high time you started treating them accordingly. If they want to be grown-ups with no rules and no curfew but still live under your roof, you have every right to ask for help with the bills.

You don't have to charge them fair market value, but a couple hundred bucks a month, or even putting them in charge of a particular bill, is reasonable. I'm also a proponent of teens paying their own cellphone bill starting at age 18. They'll certainly learn to be more responsible with their phones when repairs or replacements are coming out of their own pockets.

4. Help them establish good credit and explain the importance of it

I didn't know anything about how credit worked before I got my first credit card. Given that naiveté, I went on a shopping spree as soon as the card was in my hands, and I didn't/couldn't pay the bill until seven years later. That's what can happen when a clueless 18-year-old gets their hands on a shiny piece of plastic. And in my case, it royally screwed up my credit for a long time.

Help your kids avoid my mistake by talking to them about how credit works and the importance of being conscious about building and maintaining a good credit score. Educate them on how good credit affects major purchases like cars and houses and even renting apartments. Their livelihood depends on it — unless, of course, you want them to live with you forever. (See also: 4 Questions to Answer Before Giving Your Kid a Credit Card)

5. Provide less for them once they start driving

As your child's parent or guardian, it's your legal responsibility to provide for them until they're able to provide for themselves. But you can start to cut back on the handouts as soon as they're responsible enough to drive.

Certainly you still need to feed, clothe, and provide housing for your child, but they can start doing more for themselves, too. They can run to the store for their own hair product when they run out, open their own wallets for the video games they covet, and even make their own dentist and doctor appointments. Think of it as an education in independence with training wheels. You're still around to guide them through the processes, but they should start accepting tasks as their own.

6. Teach them time management skills

My friends make fun of me for how much I micromanage my own time. Anything I have to do goes straight into my calendar, and I keep a daily to-do list at work while creating side lists on an as-needed basis. As a result, my life runs much smoother.

Considering your kids — especially high-schoolers — have busy schedules (for which they likely rely on you to keep on track), it will eventually benefit them for you to teach good time-management skills. Teach them how to add to-dos to their smartphone calendars as soon as they receive them, set up alerts for reminders, and help them form a habit of checking their schedule on a daily basis to keep their lives running smoothly.

7. Step back when they have a problem until your help is absolutely required

A large part of maturing to adulthood is learning how to solve problems on your own, and that means you need to let your children make mistakes from time to time — even when they come to you looking for the easy way out.

"There is a tendency for parents to step in too quickly when their children face a problem," says Jim Seibold, a marriage and family therapist in Arlington, Texas. "Instead of telling them what to do and how they need to fix it, push them to think through options. Ask them what they think they should do. We can then teach by asking them to think about the consequences of their ideas. For instance: 'That sounds interesting, what do you think would happen if you tried that?'"

Just as importantly, this approach expresses confidence in your kids. It lets them know that you believe in their ability to think and consider choices, which will be helpful when it's time for them to move out of the house. That alone can be worth its weight in gold for worrisome moms and dads. (See also: 4 Parenting Mistakes to Avoid When Teaching Kids About Money)

8. Stop giving them everything they want or think they need

I wasn't deprived of anything growing up, but I wasn't handed everything I wanted, either. Around age 14, my parents encouraged me to start working part time for the money I needed to go out with my friends or buy the things that teenagers want to buy. I wasn't over the moon about it at the time, but I also didn't hate it — I made new friends, had a sense of freedom, and did what I pleased with my money. In hindsight, it helped lay the foundation of my entrepreneurial spirit, which has gotten me everywhere I've wanted to be in life thus far.

Seibold instituted a similar practice in his family, asking his kids to purchase their own electronics, cellphones, and any other luxury they wanted.

"They learned to save money they received for birthdays, Christmas, etc., so they could afford these purchases," he explains. "As parents, we still pay for a lot, but it is important for kids to understand what it means to put off immediate gratification in order to save for something they really want. It may have been 'easy' money since it was gifted, but they still had to learn to save."

9. Establish good nutritional habits from the get-go

Most of us enjoy junk food every now and then (sometimes a little more often than that — guilty!), but nutrition and cooking skills all begin with you as a parent. It's your job to raise your children on healthy meals and teach them how to make smart food choices so they're eating a balanced diet. Does that mean you should never order pizza or pull into a drive-thru? No, of course not. But you should be conscious of limiting those instances to help your child establish a healthy relationship with food so they're best prepared to feed themselves responsibly (and cook instead of relying on takeout).

10. Praise your children, but don't go overboard

Encourage your children to express themselves, to try their best at whatever they attempt, and to accept failures gracefully. The truth is, somebody has to be the loser; that's just how life goes. The quicker they learn that they can't always come out on top, the easier life will be. They need both the confidence to reach for their aspirations and the grit to learn and move forward if things don't go their way.

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

8 Ways Your Customer Service Job Can Help You Win at Life

Sarah Winfrey — Mon, 10 Jul 2017 09:00:09 +0000

Maybe you'd hoped for a different job by this point in your life, but here you are, still waiting tables, and it feels like you will never move up in the world.

But here's the good news: While serving people may not be what you want to do forever, you will learn some important lessons along the way. These will not only make you a better person, but are also likely to make you more successful later in life.

1. You learn to be polite to everyone

When you're serving people, you have to be polite, even when they aren't polite to you. Customers can do and say some horrible things, but you still have to smile and do your best to get them what they want. Sure, it's frustrating at the time, but these are skills that you need to learn. There are, unfortunately, rude people in every walk and station of life, and learning how to deal with them will make you happier and less likely to lose your cool later, when it could matter more.

2. You learn to prioritize

When the restaurant rush is on and you're slammed, you have to figure out how to be as efficient as possible. Instead of running to the kitchen seven separate times, you learn to do things in batches. Instead of bringing all of the condiments individually, you learn to grab them all at once. Working in the service industry, especially during busy times, helps you decide quickly what is important, what can wait, and which tasks best go together.

No matter what you do later in life, these skills will help you do it better. They will make you a more productive employee, whether you are deciding which arguments are the most important in legal cases, or triaging injuries in an emergency room.

3. You learn which battles are worth fighting

At some point in your service industry job, people are probably going to treat you poorly. While these can be miserable experiences in the moment, they can help you learn when you need to stand up for yourself and when it's better to just smile, nod, and be on your way. This will help you to be a calmer person, and also to be more confident about when you should take a stand.

4. You learn to embrace pressure

Service industry jobs come with a lot of pressure, especially when it's busy and people are putting in complicated orders or making very specific requests. If you stay long enough, you will learn to thrive under this kind of pressure. You will become someone who is unruffled, even when things get hectic, and someone who can be relied upon even when life is challenging.

And life is challenging. So learning how to function well, how to control your stress reactions, and how to be kind and polite even when the heat is on will serve you throughout life. It will make you the kind of person who doesn't melt down simply because things got hard for a little while.

5. You learn empathy

I have found it to be universally true that everyone you meet is fighting a battle of some sort. When you work in the service industry, you will eventually learn this. That customer who reordered her food five times just found out she has a severe allergy and is terrified of eating something that will make her sick. The child who screams for the entire dinner just got out of the hospital. The harried parent is involved in a messy divorce.

As you work, you will hear people's stories and sometimes they will involve hard, awful things. Hearing these, and seeing how so much of our bad behavior comes from stress and pain, will teach you empathy. It will help you see things from a different perspective, which makes you a better person overall.

6. You learn humility

You are more than your job. But while you're at work, you still have to do that job. And service industry jobs are not about you, but about whatever product you are offering, and about the people you are offering it to. Service industry jobs teach you to step outside of yourself and be about something else for a little while.

Anyone who can step outside of themselves for a job can also do it for their spouse, their children, or for another job that means more to them. While you should never sacrifice yourself long term, being able to do it for a period of time means that you understand that it's not all about you all the time, and you can let life — even your life — be about someone or something else in certain times and under certain circumstances.

7. You learn the importance of manners

It only takes someone being rude to you once or twice for you to learn the importance of good manners. Even the difference between an order given gruffly and one with a "please" will astound you. As you take these lessons to heart, you will learn to use your own manners, no matter the circumstances. Being rude never makes things better.

8. You learn to work with people you don't like

You will be on a team throughout life. Even in your home, as you marry and maybe have children, you will be part of a team. Sometimes, you won't like the other people on your team (even when that person is your spouse!). But you will still have to work with them. A service industry job can help you learn how to do that.

There will most likely be people you don't like at work. But learning how to communicate with them, and how to break up the necessary workload with them, will help you succeed later in life, when working as a team may be even more important.

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

7 Life Skills Your Kids Won't Learn in School

Emily Guy Birken — Wed, 28 Jun 2017 08:00:11 +0000

During my freshman year of college, there was a young man in my dorm whose mother would do his laundry for him whenever she came to visit. While this beleaguered mother did not plan on being her son's part-time laundry service, she was so horrified by the state of his unwashed clothes that she felt like she had to do his laundry for him. Considering the fact that she only visited a couple of times over the course of that academic year, I can sympathize with her horror, if not her actions.

While I was a step or two above this young man in terms of laundry skills, I still made some errors that cost me on occasion — like the time I accidentally bleached holes right through a shirt, or when I shrunk wool sweaters. That's because knowing how to wash clothes is not a skill taught in school. It's one of many life skills that parents need to teach their kids to help prepare them for the adult world.

Your kids need you to teach them the following life skills so that they are not caught by surprise once they reach adulthood — and you are never stuck laundering the clothes of a capable young adult.

1. Budgeting

It can feel very difficult to teach someone else how to budget if you struggle with money yourself. But you don't have to have a black belt in budgeting to be able to teach your children. Here are some steps you can take to help them master money.

Give them an allowance

Give your kids an allowance starting around age six. When your child wants something, ask if he or she has enough money to pay for it on their own. (See also: The Easy Way to Set an Allowance That Won't Ruin Your Kid)

Let them make mistakes

Allow your young kids to make financial mistakes while the stakes are still low. For instance, if your child spends all of their money on a toy when they'll be going to the carnival later, do not give them more money to spend at the carnival. Let your child recognize that once money is spent, it's gone.

2. How to fail

Failure is an important component of success, since no one achieves their goals without experiencing setbacks. Unfortunately, schools are set up so that failure is seen as a terrible outcome, and the way that failure is talked about in our society can make kids (and adults) believe that they need to avoid failure at all costs. This leads to kids and adults who give up when they feel frustrated and are afraid to take risks.

To teach your kids how to fail, emphasize to them that there are lessons to be learned from failure. After your child experiences a setback or a failure, ask what they learned from it.

3. Etiquette

For many of us, etiquette may seem like an overemphasis on which fork to use, but teaching etiquette to kids starts with insisting on "please" and "thank you" as soon as they can get the words out, and teaching them not to interrupt as their language skills develop. From there, make sure they know the basics of good manners:

Making eye contact when talking or shaking hands with someone.
Making guests feel comfortable.
Handling introductions.
Apologizing sincerely and accepting responsibility when you are wrong.
Knowing how to politely phrase requests and respond to questions.

4. Time management

Many adults struggle with time management because they were never explicitly taught how to arrange their time and schedule. And though there is no one way to handle time management, there are some underlying principles you can teach your children to help them develop their own method of time management.

Daily routines

Routines can help kids understand when things are supposed to happen every day, which can give them the tools to create their own routines and have less unstructured time to manage.

How long an hour is

Use timers during chores and other tasks to teach this principle so your children learn how long various blocks of time are, which will make it easier for them to anticipate how long things will take.

Planning ahead

Creating a family calendar together can help your child see how planning can make events run more smoothly.

5. How to cook

When you don't have any cooking skills, then you are stuck spending more money than you need to on convenience foods and restaurant meals. Your kids need to be able to feed themselves when they are adults, which includes knowing how to buy and prepare basic meals.

Have your kids help you in the kitchen, so that they learn these skills with your support. If you don't know how to cook, learning with your child is a great way to show them how to pick up a new skill as an adult. (See also: 10 Frugal and Delicious Meals to Make With Your Kids)

6. Self-advocacy

When I taught high school English, I was always amazed by the number of parents who would call me to discuss their children's grades. While I could understand why parents were concerned, the student's grade was between the student and myself. Every time a parent tried to cut the student out of that conversation, the parent made it clear through their actions that they thought their child was not competent.

Kids need to learn how to be their own advocates so they can handle conflicts with authority figures in adulthood. To teach your children this important skill, allow them to speak for themselves as early as possible. Start by letting them order their own meal at a restaurant.

When your child does need to talk to a teacher, practice with them beforehand and don't succumb to the temptation to do it on their behalf.

7. Cleaning the house

The best way to teach your kids how to clean and maintain a home is to have them help you as you complete household chores.

When your kids are very little, they want to help you, and you should let them, even though you could get it done more quickly by yourself. Explain what you are doing and why, so that your kids have a baseline understanding of how everything works within your home.

As they grow, have them take over chores around the house — including doing their own laundry. Ahem.

Achieving adulthood, one skill at a time

Preparing your child for adulthood is no easy feat. But recognizing which skills your child will need can help you figure out the best way to introduce those skills. Not only will teaching your child these skills help her to feel confident, capable, and ready to take on the world, but it will also keep you from having to do their laundry in adulthood.

That's a big win-win.

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

6 Lessons on How to Be a Financial Grownup From Bobbi Rebell

Chrissa Hardy — Thu, 08 Jun 2017 08:30:18 +0000

Thanks to Toys 'R Us and its catchiest ad ever, I spent several years never wanting to grow up. Being a kid was easy, and being a grownup always seemed terrifying. It meant being financially responsible for everything and struggling to make ends meet while pursuing my goals.

Luckily, every single person on this planet can relate to that fear, and they are all trying to make it on their own, as well. So when I read the new book by Bobbi Rebell, award-winning TV anchor and former personal finance columnist at Reuters, entitled How to Be a Financial Grownup, I was immediately put at ease.

Rebell's book is a compelling collection of stories from successful entrepreneurs and famous faces, detailing the moments they became financial grownups, and the wisdom they picked up along the way. Rebell brilliantly interweaves these powerful stories with her own expertise, and provides actionable steps to make your financial goals a reality. Here are the lessons on how to be a financial grownup that stuck with me the most.

1. Don't compare your path to others

The third chapter of How to Be a Financial Grownup, titled "Careers Are for Making Money" is my absolute favorite section of the book. Fashion designer Cynthia Rowley, Betterment CEO Jon Stein, Macy’s Chairman and CEO Terry J. Lundgren, and others share their stories of how they made it big. All have extremely different paths to success, and some had significant bumps along the way. But you have your own unique background, which shapes your own unique goals. Follow them, and embrace the fact that you are putting yourself out there as someone new, hungry, and different from the rest.

2. Accept that failure is a given

You're going to fail. You're going to struggle. You're going to get burned. It's inevitable. And failure can come in many different forms, but none should deter you from chasing your goals. An extreme example of struggle is when Jim Cramer, host of Mad Money, shared his story with Rebell of being the target of multiple robberies while living in Los Angeles, and upon returning from a journalism assignment in San Diego, learned he was evicted from his L.A. apartment. Cramer was homeless, and his financial grownup moment came when he realized he never wanted to be that poor again. He switched from a career in journalism to finance.

The good thing about human beings is our incredible ability to adapt to our surroundings. So when you're facing an epic financial or professional failure, you'll still be able to get some clarity, pick yourself up, and try again the next day.

3. Allow yourself to splurge on those lattes, sometimes

Rebell fully acknowledges that gourmet, pricey lattes should not be an everyday occurrence. We've heard a million times before that expensive coffee is the reason we're all broke, why we can't buy houses, etc. Luckily, Rebell finds a healthy balance between overspending on and abstaining from your morning beverage of choice. Her two exceptions to the "never buy lattes" rule are as follows:

"Buy coffee at a coffee shop if you're going there for social reasons. Meeting friends at a coffee shop is going to be a lot cheaper than going out for a meal."
"If you're using the coffee shop as an ad hoc office, by all means buy some coffee. Sitting at a coffee shop for a few hours to get some work done, or having a meeting, is a lot less expensive than paying rent on an office."

See? It's all about balance and moderation. Being a financial grownup shouldn't mean setting restrictive limits on things you enjoy, so long as you don't overdo it.

4. Push bad debt out of your way

According to Rebell, bad debt — most commonly credit card debt and student loan debt — is what's standing in your way of becoming a financial grownup. You don't need all of your bad debt to be paid off to before you become a financial grownup, though. The first step to reaching financial maturity is acknowledging the obstacles in front of you. Then you come up with a strategy to defeat them, including reasonable goals that you can meet on a flexible timeline. This process will never be as simple as, "Day 1: Add up bad debt, Day 2: Pay it all off," unless you stumble upon a pile of cash. But coming up with a realistic plan that works will be immensely rewarding.

5. Nurture your relationship with credit

The thing about credit is that it's not all bad. We all want to be careful about the way we spend money and manage bad debt, but credit is something to be built, embraced, and closely monitored. You need it, even if you'd rather avoid it altogether.

This is something millennials should work on. NerdWallet found that about a third of people ages 18 to 34 have never applied for a credit card. While it's wise to have a healthy fear of how irresponsible spending with credit cards can ruin your life, you still need to build credit in order to eventually buy a car or house, and to do all the other things financial grownups do. Rebell suggests using only a small portion of the credit you have available, "ideally about 10 percent, and really try to use no more than 30 percent."

6. Stop asking the wrong questions

When Rebell asked Kevin O'Leary, successful entrepreneur and star of Shark Tank, to share his financial grownup moment, he recalled a powerful conversation with his stepfather. O'Leary was in high school when his stepfather, George, asked him what he wanted to do with his life. O'Leary wanted to skip college and become a photographer. George told him that "'to be or not to be' isn't the question. The question is: What are you willing to do in order to be what you want to be?"

That shift in mindset helped O'Leary realize he wasn't willing to make the sacrifices involved in becoming a photographer. He wanted to make money, and in his business ventures he has made lots of it. That financial freedom has, in turn, allowed him to take up photography in his free time.

So when you think about each goal you set for yourself, you shouldn't be asking what you want, but rather, how you're going to get it, and strategize from there.

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

13 Things I Learned From Renting Out My Home on Airbnb

Carrie Kirby — Thu, 09 Mar 2017 11:00:10 +0000

It's a leap of faith to open up your primary home to paying guests. When I listed my family home on Airbnb while we were traveling, I had to accept the idea of strangers sleeping in our beds, snooping through drawers and closets, and perusing the shows on our DVR. I also had to accept the risk that something might be stolen or damaged. But most nerve-wracking for me was submitting my home to judgment. After each stay, guests are expected to rate my home on a scale of one to five, not just overall, but on cleanliness as well. Having your home and your hospitality critiqued on the Internet can be tough.

The upside, of course, is the money. During one long trip, we earned enough on Airbnb to cover our own vacation lodging. Another trip paid for a new master bedroom set. The unexpected upside has been lessons — good and bad — that I've learned from the experience.

1. It Can Be Profitable if You Live in the Right Area

I've been pleasantly surprised to learn that because we live in the popular San Francisco Bay area, we are able to charge up to $200 a night for a home that would have otherwise been sitting empty. And I was amazed to read that another Bay Area Airbnb'er is close to paying the entire mortgage of a house in the mountains by renting it out, and that fellow Wise Bread writer Mikey Rox bought a second home on his Airbnb profits. My husband and I are now contemplating adding a bathroom to the lower level of our house, with the goal of renting out that area as a studio, even when we are home. We hope the rents will help pay for the project.

2. It's a Lot of Work to Prepare a Lived-In Home for Rental

Before hosting guests who are staying a week or more, I like to provide an empty drawer and some closet space in each bedroom, and generally declutter the house so that the guests can use every surface without being encumbered by all the junk my family usually has around. I knock off to-do list items such as getting a leaky faucet or a sticky door lock fixed, and scrutinize my house for fixable flaws such as scuff marks on walls or grubby shower grout. Then of course, I need to remove and lock up personal documents and valuables. All this takes forever.

Prepping my four-bedroom home for rental typically takes me about 40 hours, meaning that the rental wouldn't even be a very good hourly rate, except for the fact that we enjoy returning to a decluttered home after our trips. On the downside, we sometimes can't find things that I've boxed up and stored away while we were gone.

3. People Are Generally Polite and Honest

Maybe we've just had good luck so far, but we have never come home to find that our home has been blatantly abused. Once I accidentally left a sheet of bank account passwords out — of all things! — and none of my accounts were breached. (Of course I changed all the passwords immediately.) We always have the house professionally cleaned before we return, but the cleaners have told us that the house is usually not terribly messy when they arrive.

4. Some People Are Complainers

A few times, we have had guests stay in our home at a discount in exchange for caring for our cats. They're pretty low-maintenance cats, and guests have enjoyed having them around. All except that one lady, who texted me daily to complain about the cats and various other problems around the house. Her constant kvetching ruined our trip.

5. You Must Be Completely Upfront About Any Potential Problems

In retrospect, I realized that although the guest mentioned above was probably just a complainer in general, one reason she was upset was that I had waited until the last minute to warn her about one potential behavior problem with the cats. She felt blindsided by that.

On the flip side, we received one booking while the central heat in our home was unexpectedly inoperative. Not only did we get in touch to warn the bookers, we invited them over, since they were local, to check out the situation and determine whether the electric space heaters we'd borrowed were adequate. We gave them the option to cancel the booking, of course, but they opted to stay (at a discount) and left us a positive review.

6. Something Always Gets Broken

Despite the fact that people seem to have treated our home pretty gently, it seems some little thing is always awry when we return. A door will have stopped closing properly or a picture has been knocked off the wall and cracked. We've come to expect it as part of the cost of doing business.

7. Something Always Gets Left Behind

Some folks have left useful things in our house — the complainer left a small space heater, even though it was summer when she was staying — and since she never replied to my email asking if she wanted it back, we've enjoyed using it over the years. Others leave things that we don't notice until weeks later and then wonder where on earth it came from.

8. A Few Items Are Usually Moved Around

Although we've never had anything stolen, it's very common to come home and immediately notice something is not in its usual place. Once I searched and searched for the dishpan I always keep in the kitchen sink, finally locating it in the backyard. Naturally, dishes that have been used and washed are often put away in the wrong places. These little things, while not harmful, can be unsettling reminders that others have been using your things while you were gone.

9. You Have to Really Spell Things Out for People

Once I went to a bit of trouble putting together a nice gift basket for guests, with a fancy chocolate and a bottle of local wine. When we returned home, it was still sitting on the counter, untouched. The only explanations for this I could think of were the guests were non-drinkers or on a diet, or they didn't realize this was for them.

Now, I always leave my guests an introductory note and specifically invite them to eat, drink, or use any of the things we've left for them. I also spell out house rules clearly, since things that might seem natural to us — like don't remove the dishpan from the kitchen — apparently aren't universally obvious.

10. People Use Airbnb for More Than Just Vacation Lodging

I've had a request to book my house for a school seminar — which I declined — and another from folks who are between moving out of their old home and moving into a new one. Since Airbnb encourages it, we typically hear from guests why they want to stay in our home, and it's kind of fun to learn that.

11. It's Hard to Get a Lived-In House "Hotel Room" Clean

Although our guests report positive experiences, we always get only four stars for cleanliness — despite the fact that we hire a professional cleaner to go over the house before they arrive, in addition to extra cleaning I do myself. This is a little embarrassing, but not that surprising when you think about it. Many rental houses are practically empty, with just a few cooking supplies in the kitchen. There's nothing in the closets or on the shelves to collect dust. Also, my home is almost 100 years old and the interiors are not up to date. Some surfaces are going to look a little dingy even when freshly scrubbed.

12. It's Hard to Find Lodging With a Lot of Beds for a Family

Most of the people who book our house are families, sometimes multiple generations traveling together. They've told us that our listing is often one of the few houses with enough beds for them available. When I see full-time rental units on Airbnb, I often wonder why more of them don't put a bunk bed or two in a room to increase the bed count.

13. Neighbors Are Probably Watching and Listening When You Rent Someone's Home

Every time we rent out our house, we ask neighbors to keep an eye on things. We never request that they spy on the guests, of course, but we tend to hear about it if the guests say anything about our house to neighbors, or if they do anything weird like put out an excessive amount of garbage on trash day.

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

7 Frugal Living Skills You Should Be Teaching Your Children

Kentin Waits — Tue, 15 Nov 2016 09:00:08 +0000

We all want to pass our frugal living skills on to our kids, but what lessons are most important? How specific should we get? How soon should we start? Don't sweat the details. Sometimes the most important frugal living skills aren't financial skills at all — they're life skills that serve us well in dozens of ways. Here are seven frugal living skills you should be teaching your children, no matter how young or old they are.

1. Patience

The ability to delay gratification is the foundation of frugality. It gives us space to mentally separate our needs from our wants, time to find the best deals, and — most importantly — a chance to let momentary impulses pass us by.

As with most lessons, patience is easier to embrace when taught early. For items your kids want, build in wait times that are dependent on their own effort (grades, chores around the house, or progress toward their own personal goals). If their wants change during that time, which is inevitable with children, complete the lesson by pointing out how the slight delay translates into dollars saved. (See also: 8 Ways Being Patient Saves You Money)

2. Self-Confidence

Here's the dirty little secret that keeps our consumer culture thriving: Advertisers and marketers hate personal confidence and they do everything in their power to knock our self-image off kilter. Every day, we face a barrage of neuroses-inspiring messages that tell us we have the wrong car, wrong clothes, dull hair, bad breath, and hopelessly yellow teeth.

Instilling a strong sense of self-confidence can help kids avoid falling victim to these messages for the rest of their lives — and sacrificing a large part of their personal wealth in the process. Seize every opportunity to reinforce the idea that your kids are fine just the way are and model that truth yourself. Then, when age-appropriate, pull back the advertising curtain. Point out how commercial messages are artfully crafted to make us all spend more than we should by making us all feel less than we are. (See also: 3 Ways Confidence Makes You Better With Money)

3. Collaboration

In our hyper-consumer culture, collaborating and sharing are revolutionary acts because they slightly erode the need for more. Why buy your own lawn mower if you can borrow one from a close neighbor? Likewise, why should your neighbor buy a snowblower if he can use yours a few times a year?

Encourage sharing at an early age by helping your kids develop strong communication skills, showing them how to make and honor agreements, and teaching them how to be good stewards of what they (and others) own.

4. Creativity

Making do with less takes creativity and ingenuity. It's how the moms and dads of yesteryear stretched meals, made new clothes from old, bartered for goods, and kept life going on what was often a shoestring budget. Foster your children's imagination with free-form toys, unstructured play, and arts and crafts — anything that gets them moving, thinking, and exploring new ideas.

5. Negotiation

Knowing how to negotiate on price, payment terms, and extras can save a person thousands of dollars over a lifetime. Teach essential negotiation skills by example; take your kids with you to flea markets, yard sales, and the used car lot — any venue where a bit of friendly haggling is expected. Show them how to use to research to their advantage, develop a rapport with sellers, and be fair but fearless in what they ask for.

6. Contentment

Much like low self-confidence, discontentment moves product. Keeping consumers in a constant state of desire is how retailers sell us more than what we need. To complicate matters, teaching children to be content is tricky business in America because we're all afraid of sapping their motivation. While encouraging kids to strive for more is important, make it less about things and money. Instead, help them focus on achieving their personal goals, expanding their experiences, appreciating the moment, and building rich friendships.

7. Individuality

In a world where consumerism and consumer debt is a way of life, choosing a different path takes a steely sense of self. Promoting a spirit of individuality in children helps them cope with — and even celebrate — being different. Point out how your family's own spending and saving habits go against the grain and don't be afraid to show the benefits (monetarily and otherwise) of your simpler, saner lifestyle. It will serve them well for the rest of their lives.

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

Flashback Friday: 45 Life Lessons You'd Give to Your Younger Self

Chrissa Hardy — Fri, 08 Jul 2016 10:00:06 +0000

If you had a time machine, what would you change about your past? (Other than investing in Apple immediately, of course.) You've spent at least a few years on this earth, and with time comes wisdom. Why not go back and crack an egg of knowledge on your younger self? They could use some serious guidance.

Here are 45 brilliant life lessons we wish we could give our younger selves.

11 Finance Tips You Wish You Could Tell Your Younger Self — Your parents told you to save money, pay off credit cards consistently, shop wisely, etc. But did you listen? No. Now that you've seen the other side of poor financial decisions, little you would definitely take your money advice.

The Frugal Living Commencement Speech I'd Give to My Younger Self — Remember how exciting graduation was? You had your whole life ahead of you. Now your school days are loonnnggg behind you, and what do you have to show for that time? If nothing else, experience. Share all of it with your naive new-grad self.

7 Career Tips You Wish You Could Give Your Younger Self — When you first started on your career path, you were so wide-eyed and innocent. But in the professional world, office politics are everywhere, and things can get tricky. Here are all the things you wish you knew way back when.

11 Investing Tips You Wish You Could Tell Your Younger Self — Investing might seem like an overwhelming concept for those who are still learning the basics of money management, but it's something we all should've been doing the moment we got our own bank accounts, like these 11 investing moves.

10 Credit Card Truths You Wish You Could Tell Your Younger Self — Ah, credit cards. We need them to help build credit, but they can be tricky little buggers, can't they? Once you have your own, and can spend money without having to pay it back right away, debt can quickly pile up. Here's how you would've done it differently, if you could go back in time.

Advice to Your Younger Self: What Would You Say? — Our writing team got to share the advice they'd give to their younger selves, and it was all kinds of brilliant and fascinating!

What other important lessons would you give your younger self? Share with us!

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

8 Career Mistakes New Grads Make

Kentin Waits — Wed, 22 Jun 2016 09:00:04 +0000

After four long years of studying hard, budgeting every thin dime, and learning the finer points of a ramen-based cuisine, you've finally graduated. As you toss that mortar board in the air and begin the job hunt, be mindful of common pitfalls that can get your career off to a bad start. Here are eight career mistakes new grads make.

1. Keeping Social Media Accounts Public

It's called social media for a reason. No matter how run-of-the-mill our Facebook or Twitter posts may be, we always run the risk of offending someone for something. Assume every potential employer will attempt to review your online presence early in the hiring process. If you can't break your social media habit completely, set your status to "private" across all networks and control the conversation.

2. Not Having a Plan

Without a plan, your career can take on a life of its own — and not in a good way. Think of your career as an extension of your education and design a plan for short-term and long-term success. Where do you want to be in three years? What about in 10? What are your income and lifestyle goals? What will it take to reach them? Shape every job search around specific incremental moves that will help make your plan a reality and avoid taking any job "just because."

3. Not Dressing the Part

In today's hyper-casual culture, most young people have never learned how to dress for business success. Invest in an interview wardrobe that reflects the sort of professional you want to become. Choose versatile pieces that are understated, classically styled, and fit flawlessly. Oh, and two more things: Rediscover the lost art of ironing and remember that club wear is not formal wear. (See also: Build a Work Wardrobe for Any Job on a Budget)

4. Submitting Standardized Resumes and Cover Letters

Hiring managers are impressed by applicants who do their research. Avoid the "click-apply-submit" job search method by taking a few minutes to learn about each company you're interested in and each role you're applying for. Then, customize your resume and cover letter to address the employer's specific needs.

5. Jumping on the First Job Offer

Getting your first job offer after college is exciting and flattering, but don't let that cloud your judgment. Before you accept that job, know why. How does it fit with your career plan? Is it something you'll excel at and enjoy? Is there an obvious path for advancement? Does it pay enough to cover your expenses?

6. Buying a New Car

It happens so often it's almost cliché: A new graduate receives her first real paycheck, gets a little cash drunk after four lean years of college, and rewards herself with a brand-new car. This isn't just a financial mistake; it's a career mistake, too. That new car you'll be paying off for the next five years depreciated 25% the minute you drove it off the lot. And now you can't risk even a temporary hiccup in income and wouldn't dare settle for a more fulfilling job that pays less.

A better option is to stay lean and nimble the first few years in your career by avoiding all forms of consumer debt. Remember, you're not sure where your professional life will take you — be ready to seize new opportunities. (See also: 3 Reasons Why You Should Never Buy a New Car)

7. Gunning for a Promotion

First jobs are exciting and some newly-minted employees can get overeager to prove themselves. But trying to move up the corporate ladder too early can alienate coworkers and suggest to management that you're dissatisfied. Pace yourself by fully investing in your current role, building a strong network with colleagues, and waiting for the right opportunity to come along.

8. Freaking Out and Going Back to School

Overwhelmed by responsibility and underwhelmed by the glacial pace of career advancement, many new graduates respond by going back to school to pursue an advanced degree. A few years later, they've amassed more debt, lost valuable career-building time, and still have no clear plan for success. Be strategic. If you're unhappy with your work life, explore ways to shift careers without further schooling. And if you decide to return to college, make sure it's a proactive and not a reactive decision.

What advice would you give new grads? Share with us!

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

Here's What I Learned About Money After Using Acorns

Chrissa Hardy — Thu, 14 Apr 2016 09:30:19 +0000

I have a rich history of being broke. I've always struggled with managing my money properly, and being able to resist the urge to buy things I don't need, rather than saving for my future. The problem with the future is that it's the future. It's off in the distance, a haze that I can't even see. There's no immediate reward in investing or saving. When faced with a new book, a flowy frock, or a delicious meal, the peace of mind that comes with planning for the future has always seemed like the boring, undesirable option. Until now.

Now, I'm actually an adult. I've got big plans that go beyond what I'll be doing this coming Saturday night, and they involve retiring comfortably with lots of cash in the bank and lots of grandkids running around my yard. And what caused this shift in mindset was not only age, but also, Acorns.

How It Works

Acorns is a service that takes your electronic spare change, and invests it into a diversified portfolio. A team of experts, including mathematicians, financial experts, and top investors work behind the scenes to make sure your chump change grows into a brilliant little nest egg. You connect your bank account to your Acorns account, and the "spare change" from each transaction in that bank account gets automatically transferred into your Acorns account.

So, for example, with the bank I use, I have a checking account with a debit card, a savings account, and a credit card. Acorns sees the transactions of all these accounts, and rounds up the total of each purchase to the next dollar. If I buy something on Amazon and spend $19.60 — whether I use my debit card or credit card to pay — Acorns will round that transaction up to $20.00, and invest the remaining $.40. Once the round ups reach $5.00, the funds will be automatically deducted from my checking account, and Acorns will invest it.

The investments are spread over large company stocks, small company stocks, emerging market stocks, real estate, corporate bonds, and government bonds. Based on your investing goal and general time frame, you can change your investing style from conservative to aggressive whenever you want.

It's easy, convenient, and it really teaches you a lot about money — especially if you're prone to recklessly spending all your dough. Here's what I learned about money after using Acorns for just three months. (See also: 5 MicroSaving Tools to Help You Start Saving Now)

Investing Doesn't Need to Be Complicated

I've had a few investment accounts through previous employers, and it always seemed like such a complex and intimidating process to make the right investment decisions. It was like learning a new language, and I can't even remember most of the French I learned in high school, so I felt utterly left out.

But Acorns breaks it down and lets you see any changes to your investments in real time. You can also make changes to your portfolio at any time, depending on your goals. It could not be a more painless process.

Patience Is Money

They say, "Time is money" but I'd argue that patience, specifically, is way more valuable. Because you can't get anywhere in saving money or investing money without patience. Safeguarding your financial future takes a long time, and you need to be in it for the long haul, if you're going to do it right. Luckily, by using Acorns, and playing with their projection tools, that hazy future is a whole lot clearer.

Saving Is Surprisingly Thrilling

Getting any joy out of spending money used to mean purchasing a tangible thing that I could look at, wear, or play with like a shiny new toy. But Acorns has flipped that habit on its head, by giving me a substantial peek into just how cozy I can be if I save regularly and invest wisely. Being smart is way more fun than being spendy.

Since I started using acorns three months ago, I've invested about $300, between round ups, weekly automatic transfers, and occasionally sending over an extra $20 when I'm feeling particularly money-motivated. My total gain is $4.48. It doesn't seem like much, right? But that money was working hard for me over the course of 90 days. And if I hadn't used Acorns, I probably wouldn't have saved that much, and I definitely would not have made any extra. I'm proud of that baby gain, and I'm excited to see where I'll be in six months. (See also: The 5 Millennial Money Apps Everyone Should Use)

The More You Earn, the More You Learn

With Acorns, once you start seeing your account grow, you feel a sense of accomplishment that often leads to a hunger for more knowledge. You don't want to worry about losing it all, or your "luck" wearing out. So you want to know more, to become more informed, so you can maybe take what you've learned from Acorns and find other ways to invest in your future.

Your Money Should Never Get a Day Off

You work hard. And your money should always be working hard, too. Acorns makes monitoring your investments so easy that you can check in on everything while on a tropical vacation, sipping blended cocktails in the sun, while your moola is still on the 9-5 grind.

An Automated Life Is a Happy Life

The best part of Acorns, by far, is the automation. You link your bank account to Acorns to get it set up, and then you can also set up recurring deposits, track upcoming round-ups, and make checking on your investments as quick and easy as checking your Twitter notifications. This is now a quick part of your daily routine that leads to zero headaches, and only profitable progress in the right direction. Does it really get any better than that?

Have you tried Acorns? Has it worked for you? Share with us in the comments!

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

Best Money Tips: Life Lessons From the Very Wealthy

Amy Lu — Fri, 11 Mar 2016 10:30:38 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found helpful articles on life lessons from the very wealthy, the ultimate guide to better posture, and the best places to sell your crafts.

5 Things Yoga Can Teach You About Money

Sarah Winfrey — Tue, 19 Jan 2016 10:00:02 +0000

Whether or not yoga is your thing, you're probably familiar with it. The practice of yoga has become popular enough that most people know how yoga is done and how to do the basic poses.

What you may not know is that you can learn a lot about life in general while holding a pose like downward dog or happy baby. When you practice, you study not only the yogic postures, but also things like balance, flexibility, and mindfulness. And you can apply all of these concepts outside of the studio, too.

Here's how I've come to apply things I've learned from yoga to my personal financial life. I hope these ideas help you think about your money a little differently, maybe with a little more Zen! (See also: 4 Zen Concepts That'll Improve Your Finances)

1. Balance Is Central

My favorite yoga teacher will tell us to center ourselves not just over the left foot, but over the toes, or the heel. Slowly, I've come to realize that how I balance myself changes the posture subtly, often bringing in more of a stretch or making it more challenging.

Just as how you balance is key in the yoga studio, it's helpful when you're thinking about money, too. Most of us want more money, but what if we were to focus somewhere else? For instance, is there enough to pay the bills? Are we spending more thoughtfully than we did last year? And what would making more money actually add to our lives?

These questions, and more, can help us think in a more balanced way about our money. This, in turn, will free us to change spending or saving habits that might be harming us.

2. Proper Preparation Is Key

A good yoga teacher will prepare you for what is coming, both in the current class and in the future. There's a reason that harder poses often come near the end of a yoga class — it's because you wouldn't be ready for them before that. You have to open your hips, your hamstrings, your shoulders, and whatever else is needed for that final, challenging pose of the flow. If you don't prepare, you'll hurt yourself and hamper your ability to progress in the long term.

Money works the same way. What are your long-term financial goals? And your short-term goals? These aren't just going to happen. They require planning and preparation ahead of time. Just like in yoga, you need to do specific things now so you can reach your goals later. Want to travel around the world? Start saving. Need a specific kind of of mortgage, come spring? Look at starting the application now. Proper planning will help ensure your long-term financial health, just like a proper flow will help ensure that you stay healthy enough to continue practicing yoga.

3. Flexibility Is Crucial

Most people who practice regularly see an increase in their flexibility. And people like me — who just thought they weren't flexible at all — begin to see how this rise in flexibility influences their entire lives.

Similarly, the more flexible you can be with your money, the better prepared you'll be financially. Financial flexibility has to do with your ability to change how you spend based on your current circumstances. If you empty your emergency fund because your car breaks down, can you flex for a few months until the fund is replenished? And if you realize you need more than you'd anticipated for a down payment, can you find the funds and flex on a few things until you've made up the difference?

Financial flexibility pertains to small things, like how much coffee you buy and how often you dine out. But it also pertains to bigger things, like when you decide to buy a house, how you structure your investments, and more. Just as flexibility and strength are tied in yoga, they often come together financially, too. And you want your money to be as strong as it can be.

4. Self-Care Is Always Worth It

People start yoga for all different sorts of reasons, but they often continue because of self-care. Doing yoga feels good. It makes your body feel better, even alleviating long-term aches and pains. And it's often meditative, offering quiet and space that most of us don't have in our daily lives. So, in learning yoga, we often stumble onto self-care, too.

Learning self-care through yoga often helps people take better care of themselves financially. This can mean spending money on things — even little things — that make you feel good. A sweet smelling candle, a good book, or a cup of coffee can all be acts of self-care. It can also mean using more discretion about how you spend your money, so that you aren't always worrying about debt, overdraft fees, and how to pay the bills. Once people get started on a path to self-care, it often spills into their entire lives.

5. Mindfulness Will Help You Reach Your Goals

Mindfulness means staying aware in the present, and is often stressed in the yoga studio. Living in the now, paying attention to how your body is moving, what you need to do, and how to stay in a pose, can all help you learn to remain present — even when so many things pressure you to think about them, instead.

More than anything else, mindfulness is a path to self-mastery. It teaches us to choose where we focus, rather than letting the mind run willy nilly wherever it wants. And when we learn to focus in yoga, we learn a skill that can help us financially, too.

Being mindful — and therefore a master of ourselves — can help us stick to a budget. It can help us save up for something we really want. It can help us get through a frugal season without taking on debt. And it can even help us buy Christmas presents, because it will help us focus on the recipient and what they want, rather on everything we might like to buy for them. In the end, being mindful will help us save more, invest better, and be happier with what we have.

When we are open, willing learners, yoga can improve not only our physical health, but our financial health as well.

How does your yoga practice tie to your financial life? What yoga lesson can you start applying to your personal finances today?

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

11 Great Life Hacks Your Grandparents Forgot to Share With You

Paul Michael — Thu, 10 Dec 2015 22:22:32 +0000

Times may change, but people will always find ingenious ways to solve life's little problems. These days we call them "life hacks," but your grandparents probably called them something else; perhaps "grandma's secrets." But whatever they were called, some of them are just as awesome today as they were all those years ago. Here are 11 of the best.

1. Make Cheap Coffee Taste Gourmet With Salt

Coffee is a multi-billion dollar business, and you can really spend some serious money on expensive brands. But, you don't have to. Buy the cheap, pre-ground, store-brand coffee. Then, stir a pinch of salt into the coffee grounds in the filter basket, and brew as normal. There is science at work here. The salt reduces bitterness, fooling the brain into believing the coffee is smoother and creamier than it actually is. This also cuts down on the need to rely on creamers and sugar. Try it. You will be surprised.

2. Water Your Plants With Yarn

Do a search for "automatic plant watering system" and you'll see lots of expensive new products, such as the very popular self-watering probes. However, this clever new idea isn't new at all. The basic system has been around for many decades, and works on the same "capillary action" principle — which is the ability of a liquid to move through a narrow space without gravity. Simply place a bucket of water at a level above the plants you want to water, and then drape strands of yarn from the bucket to the soil in the plant pot. Your plants will get an adequate supply of water while you are away, without over watering. Or you can simply set this system up if you're not interested in watering your plants everyday by hand.

3. Keep Eggs Fresh for up to Six Months

This is another life hack that came from necessity over a century ago. What do you do to preserve the many eggs your hens are laying for the coming months, especially without refrigeration? Well, if you have a cooler (one of those cheap Styrofoam coolers will do), a big bag of rock salt, and some grease (shortening works well), you can store hundreds of eggs for up to six months. Simply put a layer of rock salt on the bottom of the container, then coat the eggs in grease and bury them. Continue layering like this until your container is full, and keep it in a cold, dry place like a basement or cellar. Then, remove eggs when you need them, wash off the grease, and enjoy. The older the eggs get, the less versatile they are. But, they're still edible.

4. Cool a Wine Bottle Without Ice

You're having a big party, or you just want a nice chilled glass of wine with dinner, but… you're out of ice, and it will take ages to cool it in the freezer or fridge. Well there is a solution, from the days when automatic ice makers were not readily available. Wrap your wine bottle in a tea towel, place it in a bucket or container in the sink, and then let the water from the cold faucet run over it for about 10 minutes. Then you should have a cold bottle of wine, ready to serve.

5. Relieve Earache With Olive Oil

Some of you may actually remember this from your childhood. I remember it well. If I had an earache as a child, my grandma would put a few drops of warm olive oil inside my ear, then put a cotton ball in there to stop it oozing out. The oil serves as a lubricant, and it also has properties that help fight infection. It won't cure it, but if you have nothing else at hand, it's a good way to provide some comfort.

6. Slice Bread With a Hot Knife

You know, bread didn't always come pre-sliced. We often take it for granted, but your grandparents will tell you tales of whole loaves, and the difficulty involved in making sandwiches. That's where this tip comes from. If you have to cut a whole loaf into slices, take your serrated knife and submerge it into boiling water. Dry it off with a tea towel, and start to cut. The hot knife will make it much easier to cut thin slices from your loaf.

7. Use a Cold Onion on a Mosquito Bite

So, obviously it's important to have an onion in the refrigerator for this tip. Some people already do this, but if you don't, and it's mosquito season, leave one in there. If you get bitten (which I did constantly this summer) take out the onion and cut a slice. Apply it to the bite, and it will draw out the mosquito's saliva (which is what causes the itch). Plus, the cold temperature of the onion slice is also soothing.

8. Remove a Splinter With a Piece of Bacon

If you have a stubborn splinter that just will not come out, don't dig at it with a pin or needle. Instead, use a trick that many grandmas, including my own, used back in the day. Before you go to bed, put a small piece of bacon fat over the splinter, and then cover with a band-aid. In the morning, the splinter will have risen to the top of your skin and can easily be removed. In some instances, it will actually transfer into the bacon fat, which can be easily discarded.

9. Bring Cut Flowers Back to Life With Boiling Water

You want to make that bouquet of flowers last as long as possible, but eventually, they will start to wilt and die. However, a tip from your grandparents can extend the life of those flowers for several extra days. When they start to wilt, boil some water in a saucepan. Let it cool for a few minutes, and while it's cooling, cut a 45-degree angle in the stems of the flowers, and also make a slit up through the center of each stem. Then, dip the ends of the stems in the hot water for about 30 seconds, before placing them back in a vase of room temperature water. Within a few hours, your flowers will be revived.

10. A Lemon Can Remove Salt Stains From Shoes

When winter comes around, your leather boots and shoes will get those dreaded salt stains. I have a pair right now that look ready for the scrap heap, but I'm going to use the old lemon trick. Cut a fresh lemon in half, and apply it to the stained areas. You may need to press down and hold it for several seconds. Rinse with a damp cloth, and repeat a few times. The salt stains should be gone. Now, you can apply polish as usual, and your shoes or boots will be ready for another outing.

11. Remove Ink Stains With Milk

There are many products on the market that are designed to remove ink stains, including Stain Devils. However, your grandparents did not have access to those products, but they still found a way; a cheaper way. All you need to do is soak the stained article of clothing in a bowl of milk, preferably overnight. If it's a really stubborn ink stain, adding a little vinegar to the milk bath will help. In the morning, the stain will be gone.

Did your grandparents teach you any other brilliant life hacks? Let us know in the comments!

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

11 Finance Tips You Wish You Could Tell Your Younger Self

Mikey Rox — Tue, 08 Dec 2015 18:00:02 +0000

If you could impart some of your current financial wisdom on your younger self, what would you say? Take more risks? Concentrate more on saving? Choose a less expensive education? All of us would do something differently. Perhaps one of these tips would have paved an easier financial path from then to now.

1. Start Contributing to Your 401K as Soon as You Can

When you landed your first job straight out of college, the last thing on your mind was retirement. But even a couple years' delay can defer your retirement to later than expected, or force you to tighten the purse strings mid-career to make up the difference. You're not alone. According to new research from Fidelity Investments in collaboration with the Stanford Center for Longevity, 36% of retirees wished they had saved more during their working years, and 33% wished they had started saving earlier — a statistic that isn't exactly comforting in hindsight.

To make the most of your 401K right now, max out your employer-match contribution — don't let that free cash go to waste — and negotiate to be vested sooner and/or receive a higher match opposed to $1K to $2k more annually. This is a strategy that will pay off more in the long run.

2. Never Say "I'll Pay Myself Back Later" Because You Won't

There are times when we're younger that we need to dip into our personal savings or 401K (which should always be a last resort) for emergencies or something recreational (like a bad-idea road trip with your buddies to Fort Lauderdale — not that I'm speaking from personal experience, of course). We convince ourselves that we'll pay ourselves back for the deduction so that we feel less guilty about it, but nine times out of 10, that never happens. That was then. Hopefully you've put those costly impulse decisions behind you — like you have the cargo shorts and keg stands.

3. Credit Cards Aren't Free Money

This tip is very personal to me because I was targeted by credit card companies as soon as I turned 18, and I fell right into their trap. I took whatever they were willing to throw at me — because, hahaha, I was going to beat the system! — but the joke was on me. I maxed out those cards in less than two months, and because I was a student without a job, I was unable to pay the bills. I missed payments for years until the debt was in such dire straits that I was offered payoff deals. The debt, and the indelible mark it left on my credit score, followed me for years, making it difficult to buy a car, purchase a home, or even build my savings. In this case, I'd tell my younger self to run for the hills — and keep your nose out of the J.Crew catalog.

4. You Don't Need to Impress Your Friends

As soon as you get that first high-paying job, you want to do two things — buy shiny stuff and take your friends out for dinner and drinks. Why? Because you made it, and now it's time to show it off! But guess what? Your friends don't give a lick. These are the people who enjoyed your company when you were poor; there's no need to impress them now. And if that's not the case, they're not really your friends. Instead, save your money and pretentiousness for more important things.

5. Pay Your Bills First, Yourself Second, and Everything Else After That

Cash your check and divide it into three parts every time you get paid. The largest part should pay all your bills for the month — I mean everything. Second, pay yourself. Funnel money into savings and set aside cash for budget items like groceries, gas, and rent. Lastly, if you have any left over, you can use a little for the extra things you'd like to do, like eat out, see a movie, or other non-essentials. It's not the most exciting way to live, but it is the smartest.

6. If You Don't Have the Cash for it, You Can't Afford It

This sort of goes hand-in-hand with steering clear of credit cards if at all possible. And it's as simple as the strategy suggests. If you can't pay for whatever it is you want in cash, you don't need it. Obviously that exempts major life purchases — a new car, home, etc. — but it applies to almost everything else, including fancy flat-screen TVs, expensive makeup, the hottest sneakers, or whatever your vice is that you can totally live without.

7. Stop Eating and Drinking Yourself Poor

Fifty-cent wing nights and dollar shots will not get your bills paid, but they will get you fat and house poor. Print out that motivational speech and keep it in your wallet, young buck. In general, eat healthier — and at home more often. Your 30-year-old body (and bank account) will thank you.

8. Carefully Consider the Debt-to-Income Ratio of Student Loans

Personally I don't regret my costly private college education, despite that I still have eight more years of loan to pay off. Still, I do have plenty of friends who wish they had chosen a less expensive school. Thus, carefully consider how much college will cost, the debt you'll rack up as a result, and the income earning potential of a career in your chosen field. If there's an imbalance between those variables that you don't think you can live with, choosing a cheaper school may be the right move for you.

9. Master the Money-Saving Art of Negotiation

If you can buy it, chances are you can negotiate the price down. From clearance clothing and your first new car to insurance premiums and bank fees (yep, you can even negotiate those, too), you can save a bundle if you learn how to drive a hard bargain.

10. Invest in Real Estate as Soon as You Can

If you search hard enough, you can find anything on the Internet. But I don't believe that, and my younger self didn't either — which is why I bought property as soon as I could. I'm not alone in this thinking either. Many of my friends who bought early stand by their decisions, even though it set them back financially at first. That sacrifice by way of real estate investment has paid off over the years, because instead of paying someone else a fee to live under a roof, we've paid ourselves in the form of equity that we can now use to continue to purchase real estate as a means of earning passive income. This is probably one of the most lucrative tips on this list, and one everybody should research more in depth.

11. If You Want to Be Reckless, Now's the Time to Do It

While you should have been smarter with your money when you were younger, all is not lost. Truth is, it's better to be a dummy about your finances in your 20s when you don't have much to lose than to make stupid money moves in your 30s and 40s when mismanagement can be costly. So save, spend smartly, but also have some fun — you may not have the financial freedom later in life, especially if you want nice things.

Now it's your turn. What financial tips would you tell your younger self? I'd love to hear some of the things you would change about your money management skills from 10 years ago to today.

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