Money Tips Network

The cluttered lives of middle-class Americans

Long-time readers are familiar with my decade-long war on Stuff. I was raised in a cluttered home. From a young age, I was a collector. (Some might even say a hoarder!) After Kris and I got married, I began to acquire adult-level quantities of Stuff. When we moved to a larger house, I found ways to acquire even more Stuff. I owned thousands of books, thousands of comic books, hundreds of compact discs, and scads of other crap.

Eventually, I’d had enough. A decade ago, I began the s-l-o-w process of de-cluttering.

While I still bring new Stuff into the house — Kim would tell you I bring too much Stuff home — I’m not nearly so acquisitive as I used to be. In fact, for the past decade I’ve purged far more than I’ve acquired. And that process continues, week by week, month by month, year by year.

The Challenge of Sentimental Items

For many of us, the largest expense we’ll ever tackle in our lives is our housing. The cost of owning a family home easily devours multiples of a person’s annual income. The median home price in America today is around $200,000, while the average American household income is somewhere around $60,000. Put those together and it’s clear how big of an impact home ownership can have on a person’s lifetime financial picture.

One of the biggest elements of that housing cost is square footage. The larger your home, the more expensive it’s going to be. Other factors like location also play a part, of course – a 2000 square foot home in rural Iowa will cost far less than a 1500 square foot home in San Francisco, for example – but when you’re comparing homes in a similar area, larger homes will cost more than smaller ones.

How To Be a Frugal Auto Enthusiast

A couple of my extended family members have a very expensive hobby. They rebuild old cars, turn them into hot rods, and show them off at car shows. They sometimes recoup their financial investment if someone likes what they’ve built, but unless someone is actually paying them for a custom hot rod, it’s never a guarantee and sometimes results in a loss – occasionally a steep loss. This doesn’t even include situations where things don’t go quite right and all of the other associated costs, like traveling to car shows, paying for entries, and so on.

Even if you’re not quite as into cars as my relatives, the appreciation of and ownership of and, if you’re into it, the improvement of nice cars can still be a really expensive hobby. What do you do if you love beautiful cars but are trying to have some degree of financial responsibility? Here are six suggestions, mostly straight from the mouths of friends and family.

9 Modern Home Improvements That Add Thousands to Your Listing

When we first moved into our home, we nicknamed it "The House of Many Louvers," as there were dated louver doors on every closet, in some of the doorways, and oddly, blocking half of the hall.

10 Most Breathtaking Day Hikes in the U.S.

The United States is home to some of the most diverse landscapes on the planet, ranging from barren deserts and vast canyons to lush forests and snow-capped mountains.

3 Unexpected Hurdles You Might Encounter When Applying for Social Security Benefits

Every month, 61 million Americans collect some sort of Social Security benefit. So the process to file for and receive benefits must run like a well-oiled machine, right?

Not necessarily.

8 Travel Warnings You Shouldn't Ignore

Whether you're traveling for a much-needed vacation, a business trip, or just want to see family and friends, you cannot presume that everything is going to go off without a hitch once you reach your destination.

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The Truly Frugal Diet

Food takes up a major part of a family’s monthly budget. Depending on the size of the family and their food choices, this can range from hundreds of dollars a month to well over a thousand dollars a month. It’s also an area of spending where frugal tactics can really cut that cost significantly.

However, there’s another aspect of food spending that’s often overlooked: Your dietary choices today can either increase or decrease your health care costs in the future. Making bad dietary choices can increase your long-term health care costs; making good dietary choices can decrease those very same costs.

This has several important implications when it comes to thinking about minimizing your costs.

First, “unhealthy” food is more expensive than you think over the long term. An unhealthy meal that adds to your long-term health care costs has an extra cost hidden inside, one that you don’t see on the initial sticker.

How to get started with real estate investing

Today’s article is from Chad Carson, who writes about real estate investing (and other money matters) at Coach Carson. I’ve always been intrigued by real estate investing but overwhelmed by how much info available. I asked Chad if he’d be willing to write an article that would help me (and other GRS readers) understand the basics of real estate investing. This is the result.

I got started in real estate investing right after college. Because a young adult can basically sleep in a car if he has to (my 1998 Toyota Camry with cloth seats was comfortable), I had little to lose by launching a business. Unfortunately, as a Biology major, I also knew very little about business or real estate. But I did know how to hustle and to learn. That helped.

Which Bills Affect Your Credit Score?

Making an effort to keep your bills paid on time is always a good idea, and for a variety of reasons. Whenever you make your payments late or become past due on a financial obligation, it can trigger some pretty unpleasant consequences. Sometimes that might include damage to your credit reports and scores, but not always.

If disaster strikes and you find yourself in a situation where you have more bills than money to pay them, you may be facing some tough choices about which financial obligations to take care of first and which ones to let slide while you try to dig yourself out of the hole. If you’re worried about the impact of a missed payment on your credit, you should know that not every account is necessarily going to have an immediate impact on your credit scores.

10 Little Things to Do Before a Job Interview That Can Make a Big Impact

You have an interview coming up. You've taken care of the big things. You have picked out your clothes, studied the company, reached out to contacts for information, and you updated your resume.

How to Make Flying With an Infant Less of a Nightmare

When Jim Wang and wife Martha flew to Taiwan with their infant six years ago, they had no idea what they were in for. Their baby wasn't even a year old and hadn't yet discovered he could walk, Wang says.

Should You Treat Your Social Security Benefits Like a Bond?

As you may know, one of your most important investment decisions has to do with asset allocation — that is, how much of your portfolio should be invested in various asset classes, such as stocks and bonds.

How to Become a Minimalist With Your Money

Minimalism is a way of living that centers on finding contentment with less. Becoming a minimalist can benefit many aspects of your life, including your finances.

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Join Our Tweetchat on Thursday 5/17, 12pm Pacific for a Chance to Win Prizes

Join our Tweetchat this Thursday at 12:00 pm Pacific for lively conversation and a chance to win one of two $10 Amazon GCs! Use #WBChat to participate.

This week's topic: Saving Money During Graduation Season!

The Modern Wealth Index

Charles Schwab has released its 2018 Modern Wealth Index, a survey of the saving and investing habits of 1000 Americans. Here’s how the company describes its methodology:

The Modern Wealth Index…is based on Schwab’s Investing Principles and composed of over 50 financial behaviors and attitudes. Each behavior or attitude is assigned a varying amount of points depending on its importance, out of a total of 100 possible points…Quotas were set so that the sample is as demographically representative as possible.

This survey divides respondents into two categories: those with a written financial plan and those without a written financial plan. About 25% of people are “Planners”; the rest are “Non-Planners”.