DJs Christmas windows ‘making kids cry’

DAVID Jones has been slammed for an annual Christmas display so dull it it’s been called a ‘tragic mistake’.

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Commonwealth Bank vows to clean up act

IT’S BEEN a scandal-plagued year for Australia’s biggest lender, but Commonwealth Bank’s chairman has vowed to salvage its reputation.

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Woolworths feeds kids for free

PARENTS can stop worrying that their children will help themselves to produce at Woolies, with the supermarket opting to give it away for free.

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The workplace where there are no bosses

CATERED lunches, indefinite leave, and setting your own pay sound like a luxury jaunt rather than a day job, but that’s the reality at this young company.

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Travel Insurance and Terrorism

Photo: Joe deSousa

Friday’s terrorist attacks in Paris were horrifying on every level. Unsurprisingly, some rattled and fearful travelers are considering canceling their trips to the City of Light, one of the world’s most popular tourist destinations. I have a trip of my own to Paris booked for March, and mixed in with my shock and horror over the attacks were two questions: Should I still go? How much would it cost to cancel?

In my own case, a combination of planning and happenstance would keep me from losing much money. My hotel reservations are fully refundable, and because my airline made a major scheduling change after I booked my flight, I’m eligible for a refund.

Unfortunately, most travelers could take a far bigger financial hit unless they have travel insurance. If you don’t have travel insurance, you’ll have to rely on the goodwill of your airline, hotel, or any other company you’ve booked with. Some airlines and hotels are offering refunds or the ability to change your reservation for free, but they certainly aren’t required to, and you’ll want to check as soon as possible.

On the other hand, if you have travel insurance, you may be able to walk away from your trip with little or no damage to your wallet. Here’s what you need to know:

Most policies cover terror attacks, but not civil unrest.

The Paris attacks are a pretty clear example of a terrorist act. But because some situations aren’t as clear cut, insurers may stipulate that the U.S. State Department name the incident in question an act of terror.

One important exclusion: Travel insurance typically won’t cover you in the case of civil unrest, which can be equally violent and terrifying. For example, recent political violence in Egypt and Thailand, two very popular tourist destinations, would not qualify as terrorism despite the bloodshed.

Your trip still needs to meet certain requirements.

Your travel insurance will specify that your trip must begin within a certain time window relative to the terror attack.

Some policies are more generous than others: You could be looking at a narrow window of about a week, or a longer one of a month. (In either case, even if I had bought travel insurance for my trip to Paris in March, my departure date would be too far in the future to make a claim based on the terrorist attacks.)

You may also need to meet geographical stipulations. For instance, your insurer may require that part of your itinerary include a destination within a certain distance of the spot where the attack occurred.

You won’t be covered for terrorism if you buy travel insurance now.

Like most kinds of insurance, travel insurance bars you from collecting benefits related to a situation you knew about before buying the policy. So while I can still buy travel insurance for my trip to Paris in March, I won’t be able to cash in using the terrorism coverage as a reason.

Still nervous? If you haven’t yet booked your trip, or did so very recently, look into travel insurance add-ons that allow you to cancel for any reason. This benefit is usually an option only on more expensive plans, and you’ll need to add it within a couple of weeks of making your first trip deposit.

And be sure to read the fine print: Your benefits may allow for only a partial refund — for instance, you may only be able to recoup just 50% or 75% of your non-refundable travel costs.

As for me, I still plan to head to Paris. Travel guru Rick Steves said it best in a recent Facebook post: “Remember: There’s an important difference between fear and risk … I believe we owe it to the victims of this act not to let the terrorist win by being terrorized. That’s exactly the response they are hoping for.”

Vive la France, and safe travels to all.

The post Travel Insurance and Terrorism appeared first on The Simple Dollar.

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Business Briefcase: Ben Franklin president, CEO gets regional honor

R. Chadwick Paul to be enshrined in Lehigh Valley Business HOF R. Chadwick Paul Jr., president and Chief Executive Officer of the Ben Franklin Technology Partners of Northeastern Pennsylvania, will be inducted into the 2015 Lehigh Valley Business Hall of Fame. He and fellow 2015 Hall of Fame honorees Mike Albarell of Albarell Electric Inc. [...]

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Australian dollar is higher

THE Australian dollar is firmly back above 71 US cents after it got a boost from some stronger US inflation figures.

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8 Tech Funds to Buy to Invest in the Future

Tech stocks can be big winners or big losers, but you can invest in the sector through ETFs.

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Macy’s Black Friday Madness: We Found Their Best Deals — Up to 88% Off!

Macy’s has always held a huge place in my heart as a holiday symbol.

From watching the Thanksgiving Day parade to exploring the city-block-sized outlet in New York City on family trips, there’s something about Macy’s that’s always just felt like Christmas — and home.

This year, that feeling is amplified by all the great deals the department store is rolling out for Black Friday.

You can get a brand-new mattress for as low as $137, or save 80% on designer clothes for the whole family.

Housewares? You’re covered — sheets, bedspreads and kitchen wares are all available at super steep discounts.

How to Save Even More at Macy’s

Sorry, Macy’s members — these deals are good enough that the store won’t let you use your Macy’s card.

But if you make your purchases with your Discover card, you could earn up to 10% cash back. Just remember to pay your card off in full to avoid spending extra in interest.

There are lots of other deals at Cashbackholic that’ll earn you up to 8% cash back, too.

If you use discounted gift cards, you’ll save a little more. They’re available in lots of different denominations on Raise, and will save you about 10% off your final purchase.

The Fine Print on Macy’s Ads

Here’s a trick for all you Penny Hoarders: Macy’s best deals favor early risers.

In fact, if you can give up the pumpkin pie and football, you might want to get started when Macy’s opens on Thanksgiving evening at 6 p.m.

The crazy-low doorbuster prices run through 1 p.m. on Friday, and can be up to 50% lower than the second sales price that’s available the rest of the weekend.

Ready to Save at Macy’s?

Check out the best Macy’s deals on our exclusive Black Friday site!

Jamie Cattanach is a junior writer at The Penny Hoarder and a native Floridian. She’s passionate about learning, literature, chocolate and finding ways to live the good life as cost-effectively as possible. You can wave hi to @jamiecattanach on Twitter.

The post Macy’s Black Friday Madness: We Found Their Best Deals — Up to 88% Off! appeared first on The Penny Hoarder.

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Debit or Credit? 6 Times NOT to Use Your Debit Card

While it might seem like using credit cards could hurt your finances because of the potential to rack up a huge amount of debt, you might be surprised that using debit cards can also be risky — but for different reasons.

The Differences Between Debit and Credit Cards

Although debit and credit cards may look the same, they’re completely different financial tools. I’m sure you’re familiar with how they work:

• A credit card allows you to make purchases using borrowed money that you have to pay back with interest over time.

• A debit card allows you to make purchases using your own money that’s linked to a bank checking or savings account.

But what you may not know is that credit and debit cards offer very different levels of legal and financial protection.

Debit cards give you fewer rights than a credit card, so it’s important to understand your potential liability.

What’s the Risk of Using a Credit Card?

First, let’s cover what happens if someone steals your credit card. Fortunately, you get some really nice protection thanks to a federal law called the Fair Credit Billing Act (FCBA).

This law is one of the reasons I prefer using credit instead of debit. The FCBA says if a thief takes your card or even just steals the card number and takes off on a shopping spree, you’re responsible for no more than $50.

It doesn’t matter if a cyber criminal hacks your credit card number online and then uses it to kick back in a five-star hotel in Maui for a week — you won’t have to pay more than $50. Plus, many credit card issuers offer fraud protection that completely eliminates your liability.

The protection gets even better if you become aware that your credit card is lost or stolen and report it before unauthorized charges are made. In that case, you’re not even responsible for $50 — you’re completely off the hook!

The FCBA protects you from unauthorized charges on revolving accounts, including credit cards, charge cards, retail store cards, gas cards and lines of credit. The law also protects you against other issues like being charged for unaccepted goods, undelivered goods or other formal disputes you make.

These are terrific protections that should make you feel confident about using a credit card in stores or online.

What’s the Risk of Using an ATM or Debit Card?

Now, let’s review what happens if someone steals your ATM or debit card. These cards are regulated by a federal law called the Electronic Fund Transfer Act.

Many people mistakenly believe that because their bank is FDIC-insured, their money is protected from theft. This is dead wrong.

The FDIC reimburses you up to a certain amount if your bank goes out of business, but not if a criminal accesses your bank accounts and steals your money.

Your liability for fraudulent charges on a debit card depends on how quickly you report it lost or stolen. Unlike with a credit card, your liability with a debit card is not capped at $50 — it’s unlimited.

Here’s How It Works

If you report a missing debit card before a thief uses it, you’re not responsible for any unauthorized transactions, just like with a credit card.

If you report your debit card as lost or stolen within two business days, you’re responsible for up to $50 only.

If you report unauthorized charges from a lost or stolen debit card within 60 days after you receive a bank statement, you’re on the hook for up to $500.

If just your debit card number is stolen while you still have the card in your possession, you have a little more protection. In that case, you’re not liable for fraudulent activity if you report it within 60 days of your statement date.

However, if it takes you more than 60 days to report fraudulent charges, you have unlimited liability. That means a thief could completely drain your bank account and get away with stealing your entire balance, plus you’ll probably have bank overdraft fees.

I use my bank’s iPhone app to check my bank accounts at least once a day. I would catch any unauthorized use immediately, report it within two business days, and only get stuck with a $50 liability.

But if you’re not in the habit of reviewing your bank accounts on a daily basis, please think twice about using a debit card. Or consider switching to a better bank that offers tools to make it easy to stay on top of your transactions.

Now, let’s talk about when you should avoid using a debit card.

6 Risky Situations When You Should Never Use a Debit Card

Now that you understand the potential risks associated with debit and credit cards, here are six risky situations when I recommend you never use a debit card:

1. Shopping Online

Whenever someone tells me that they don’t need a credit card because they simply use their debit card to shop online or make travel reservations, I cringe!

One of the most important rules for using debit cards is to never use them online. It doesn’t matter whether you’re buying shoes, getting concert tickets, paying your power bill or booking a cruise vacation.

Buying anything online using a debit card makes you vulnerable to a cyber criminal who could steal your card number and drain your bank account linked to the card — unless you watch your transactions like a hawk and would catch fraud immediately.

2. Making a Large Purchase

When you make a big purchase, like furniture, electronics or appliances, you get much less protection if you pay with a debit card instead of using a credit card.

For instance, let’s say your furniture is delivered and you find damage that occurred during shipment.

If the furniture company won’t reimburse you or exchange the merchandise, you can dispute the charge with your credit card company. The card company will reverse your payment to the merchant and inform them that they’ve opened a dispute on your behalf.

But if you paid with a debit card, the money is taken from your account right away. The only way to settle a dispute might be to begin an expensive lawsuit.

Additionally, many credit cards also offer extended warranties. So, if your new television has a 60-day warranty, but the display goes bad after 90 days, your credit card might protect you.

Of course, you should only use a credit card if you can pay off the balance in full or if you’re intentional about financing a planned purchase using a low-rate credit card, so you pay no interest or as little as possible.

3.  Dining Out

Using a debit card in a restaurant is especially dangerous because they’re one of the few places where the card leaves your sight. The server takes it away to process and you have no idea what could have happened.

Of course, someone could also steal your credit card number. But as I mentioned, since your potential liability is so much less with a credit card, paying with cash or a credit card is a smarter way to handle a restaurant bill.

4. Buying Gas

When you swipe a debit or credit card at the pump, some gas stations place an immediate hold on your account to make sure you don’t buy more gas than you can afford.

The hold amount varies by station, but could be $100 or more, even if you only plan to buy $10 worth of gas. While this practice is almost unnoticeable on a credit card, it can be a real problem with a debit card.

Some banks may process a debit transaction at the pump for the exact amount within seconds and clear the hold immediately.

But others may keep the hold for days, freezing a certain amount of money, which could cause you to bounce other payments or have new charges denied until the hold expires.

5. Making an Upfront Deposit

When you need to pay an upfront deposit for goods or services, never use a debit card. Some examples include booking travel reservations, making a deposit to order cabinets or flooring, securing freelance services or renting equipment.

As I previously mentioned, once a debit card charge is processed and money is withdrawn from your account, it’s gone.

On the other hand, putting a deposit on a credit card gives you the ability to dispute the charge and get your money back if something goes wrong.

6. Setting Up Automatic Bill Payments

While I love the idea of setting up recurring payments to make sure expenses like loan payments, gym memberships and utilities never fall through the cracks, it can become a bookkeeping nightmare if you don’t keep a cash cushion in your account.

To protect yourself from bank overdraft fees, consider setting up automatic payments on a credit card instead.

Should You Use a Debit or Credit Card?

Because dealing with fraudulent charges on a credit card is easier and less costly than with a debit card, be cautious about the six situations that I covered — or paying with debit at any establishment that seems questionable.

If you have enough discipline to pay off credit card balances in full each month, they should be your primary payment method.

Not only do they give you more security and purchase protections, but they also help you build credit, give you a precise record of your expenses and allow you to earn rewards.

All of these benefits are free, as long as you pay your credit card bill in full every month. The trick to using a credit card successfully is to pretend that it’s a debit card, so you never charge more than you can pay off right away.

But if you’re not ready to use a credit card for all your purchases, simply being informed about their pros and cons compared to debit cards will help you make smarter financial decisions.

Your Turn: Do you use both a credit and debit card? Have you ever encountered problems using your debit card in these situations?

This post originally appeared at Quick and Dirty Tips, a network of podcasts and digital content offering short, actionable advice from friendly and informed authorities. Laura Adams, host of the free Money Girl podcast, is a personal finance expert and award-winning author.

The post Debit or Credit? 6 Times NOT to Use Your Debit Card appeared first on The Penny Hoarder.

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10 Ways Millennials Are Able to Save Money

If you can’t afford to save for retirement, you can’t afford an Uber — take the bus or subway. Photo: Matt Biddulph

As a ‘millennial,’ I constantly find myself on the receiving end of financial advice that’s either way over my head (tax-loss harvesting?) or seemingly impossible (how can I save half of my income when half my income is rent?). Many personal finance articles don’t exactly take into account the unique position my generation is currently in. Allow me to paint a picture for you:

• More millennials have gone to college than prior generations: Almost a quarter of 18- to 34-year-olds hold a bachelor’s degree or higher — but this education has come at a price. A whopping 71% of bachelor’s degree recipients took out student loans, the median debt hovering near $27,000. And we’re feeling the burn of those loans, too: A recent survey by MyBankTracker found that 30% of recent graduates would consider selling a body part if it meant getting rid of their student debt.
• We’re living in cities: Millennials currently reside in urban areas at a rate higher than any other generation. With this shift comes a higher cost of living and, as a result, less disposable income.
• We’re making less money than in previous decades. Despite high education levels, 18- to 34-year-olds are making approximately $4,000 less annually than the same age group did in 2000. Combine that with debt and a high cost of living and you’ll find that the average millennial has a net worth of negative $3,472.
• We’re delaying home and car ownership, as well as marriage and childbirth. According to a study by Goldman Sachs, 60% of 18- to 35-year-olds are renting, and 26% are still living with their parents due to rising housing costs. More young people are postponing marriage and kids, too, often because they want to dig out of debt or live on their own first.

Given these factors, it’s no surprise millennials are having a hard time following traditional financial advice. After paying for rent, utilities, transportation, food, and the occasional night out, many aren’t left with much breathing room in their bank accounts to put money aside for retirement or to build up an emergency fund.

But what exactly can 20-somethings do to start saving more — or at all? I spoke with several 18- to 26-year-olds living in different cities across the country for tips on how they manage to make it work.

1. Get a roommate or move back home

“Find roommates,” says Margeaux (23, Philadelphia). “Don’t get a luxury apartment to yourself, even if they are really nice.”

Splitting rent and utilities is one of the biggest ways to save as a young person living in a city. A study by SmartAsset found that in high-rent cities like San Francisco, New York, and Boston, having a roommate saves you $700 or more every month.

Of course, living with roommates is a personal decision that may or may not be right for you for a variety of reasons. But at the end of the day, the financial benefit is undeniable.

Another avenue to consider in the first few years of working and saving is to move back home. Sure, it’s not the most glamorous option and isn’t available to everyone, but living with Mom and Dad temporarily can help ease the adjustment of making it on your own.

Liz (23, New York) describes living with her parents as allowing her a “buffer” to spend the money she earns more freely. This added level of comfort, however, can be dangerous. Staying in the nest longer can make learning to fly more difficult — “it definitely has not helped me become smarter financially,” remarks Liz.

If you live with your folks, consider paying something in rent or a portion of the utilities, or decide on a number with your parents and put that amount into a savings account every month. Not only will this help you get used to putting rent money aside consistently, but you’ll pile up some savings to help jumpstart your eventual move away from home.

2. Opt for a low-interest credit card

When used correctly, credit cards are valuable tools that can help you build credit and practice useful money management skills. Many rewards credit cards offer perks like points redeemable for travel or cash back, but making these cards work for you takes diligence and planning (not to mention, many of the better cards come with an annual fee).

For your first credit card, consider opting for “something that’s not going to rack up lots of interest,” says Sean (25, Seattle). “The perks aren’t worth it if you’re only using your credit card in case of emergencies.”

Find a low-interest credit card to meet your financial needs — look for factors like a 0% APR period, no annual fee, and free credit score services.

Already carrying a high balance on an existing credit card? Look into a balance transfer card that can help you start saving on the credit card debt you already have, and use the 0% APR introductory period to make faster progress on a debt repayment plan.

Don’t forget, simply calling your credit card company and asking for a rate reduction can lower your interest rate. It’s worth a shot: The worst-case scenario is that they say no, and the best-case scenario can save you a lot in interest charges over time.

3. Skip the Starbucks

I get it, there’s just something about that white and green Starbucks cup… and that something is just an excellent marketing team. In truth, spending $4 or $5 a day on a latte is running you upwards of two grand a year.

Instead, “Invest in a decent coffee pot and make your own coffee at home,” says Colby (24, Austin). “Don’t waste your money on overpriced things you can make yourself.”

If cutting out money-draining habits is too hard, start out small and opt for a cheaper option. For example, ordering an iced Americano and adding milk is half the price of an iced latte, and tastes nearly identical. That’s a saving of $1,000 a year without making any big sacrifices!

4. Let the little things add up

“I’m a big believer in small savings adding up,” says Nick (25, Washington, D.C.). “Basic cable instead of the premium channels, turning off every light before I leave for work, not letting the water run if it doesn’t need to be used, showering at the gym instead of home, filling up my car when I’m in a cheaper area for gas, not getting guac’ on my Chipotle order… it all adds up.”

It might not always feel like you’re making leaps of progress financially, but remember that consistency is key. Small savings every day grow over time, and even more so if you’re putting the money you save in a high-yield savings account and letting the interest compound on itself.

You don’t have to drastically change your life: Listen to your dad and put on a sweater in the winter time instead of turning on your heat and racking up bigger energy bills, opt for generic brands whenever available (it really is the same thing), and don’t fear leftovers.

You don’t have to drastically change your life; just skip the guac’ and keep at it.

5. Automate!

If you’re not creating breathing room in your budget on your own, try taking the 21st-century route and find an app that can do it for you. Here are a few to consider:

Digit

Digit monitors your spending habits and, when it determines you can safely afford it, transfers a small amount of money (typically between $5-$50 every few days) from your linked checking account to a special Digit savings account.

Worried about overdrafts? Don’t be. The company is so confident you won’t miss the money they transfer that they have a no-overdraft guarantee. Plus, the app is free and FDIC-insured, so it won’t hurt to try it out.

• Related: How My Cheese Addiction Taught Me to Automate My Savings

Acorns

On every purchase you make with a linked checking account, Acorns rounds up to the nearest dollar and automatically invests the change into a diversified portfolio for you. You can customize your risk tolerance and adapt your investments based on personal preferences.

Acorns does charge a monthly fee of $1 for accounts under $5,000 and 0.25% for those exceeding $5,000. The app doesn’t charge you to make withdrawals or deposits, however, and never charges fees on accounts with a $0 balance. Acorns is also free for students if you sign up using your .edu email, so be sure to take advantage of that if you’re still in school! Check out our full review of the app.

Mint

Available both online and as an app, Mint helps you keep track of all your finances and create tailor-made budgets based on your income and spending habits.

Though this app won’t exactly save money for you, it can absolutely help you see where you money is going — an important first step toward saving. Mint also provides you with a free credit score as well as tips for improving your credit, a valuable resource for those just getting started.

• Related: Battle of the Budgeting Software: Three Alternatives to Mint.com

6. Take public transportation

While taking an Uber around is certainly a more attractive option than the city bus, ask yourself if paying the premium for convenience is really worth it. Deborah (24, New York) says that as far as savings are concerned, “taking the subway is huge — at some point I was taking cabs everywhere and it was the biggest drain on my bank account.”

Sure, your commute may be longer (or shorter, depending on traffic), but if you can wake up earlier, you can save an average of $1,000 a month or more in a big city like New York or San Francisco simply by opting for public transit. Moreover, you can reap the added benefit of not having to search and pay for parking, spend money on gas, or risk getting a ticket.

Better yet, if you live in a relatively flat city, consider investing in a bicycle. You can usually find a reliable commuter bike on Craigslist or a solid new one at Wal-Mart or Target for under $200 — and it will pay for itself after a couple months of car-free living.

7. Brownbag Your Lunches

A Bloomberg study found that for the first time ever, young people are spending more on dining out than on groceries. Not only is eating away from home considered a social event, but time and convenience play a key role as well.

“After a long day at work, I’d rather not go grocery shopping and prepare lunch for the next day, so I eat out at a restaurant for lunch,” says Max (23, Vancouver), “I know it’s more expensive to eat out, but it’s my way of treating myself during the work day.”

So what can young people strapped for time do to save money on food?

Make it special. Rather than spending money out every day on a meal you can probably make yourself, designate a treat-yo’self day so you don’t burn out.

Instead of five days of $10 lunches (that, let’s face it, are getting old), take yourself out on Friday for $15 or $20 — you still save $30 for the week and enjoy your restaurant experience far more than if it was habitual.

I started doing this and surprised myself when after a few weeks, I stopped wanting to eat out on Fridays. The more I was getting used to cooking for myself and making meals I was excited about, the less appealing it seemed to drop $20 on that meal. Who knows, you may even surprise yourself with your creative culinary abilities!

Make the most out of it. When you do decide to eat out, make sure you’re getting the most for your dollar.

Skip getting drinks and stick to water. If you’re still a student (or still have your student ID), check for places that give student discounts on your meal. Check sites like Groupon and LivingSocial for dining deals in your area.

If you can’t give up going out cold-turkey, take small steps to be smarter about what you spend when you do.

8. Live life for yourself, not for your Instragram

“When I first moved to New York, I was a nervous wreck,” says Meredith (24, New York). “I kept comparing myself to other recent grads from my college, and would get stressed out. ‘This person’s been published already!’ or ‘So-and-so has an apartment in Williamsburg (that their parents pay for!)’ or ‘This person’s already halfway done with their master’s degree in ___.’ I did what everyone told me to do, and it made me miserable.”

The heavy use of social media among young people makes it nearly impossible to avoid comparing yourself to others in your social sphere (or A-list celebrities and models for that matter). But Facebook profiles and Instragram accounts are curated to highlight the glamorous, and studies show that dwelling on friends’ vacation photos and check-ins makes us feel worse.

Weighing your self-worth against others based on the limited information you have access to can be enough to send you on a destructive thought pattern — ‘How can this person afford to take a trip to Thailand? Am I not living my life to fullest? I should quit my job and travel, and figure out money when I get there.’

Instead of modeling your goals after someone else, decide what it is that you want, and set reasonable expectations for how to meet those goals.

If you’re looking to travel, for example, take time out, create a budget, plan a trip within your limits, and start saving for it. It might not happen this month, or this year, but creating and meeting goals will make you feel much better than staring at your phone and resenting others.

9. Know what you owe and budget for it

Creating an extreme bare-bones budget could mean going from 0 to 100… and burning out before you make any real progress. Instead, start out by being mindful of your spending habits and debts.

“Even if you have to go into debt, be aware of how much you owe, how much you’re making, how much you’re spending,” says Jordan (24, Los Angeles). “It can be a scary thing to look at, but it’s better to know exactly what you’re dealing with than to let it grow into a massive monster both in your head and in reality.”

Ian (23, Seattle), shares how he calculates his monthly budget on his current salary:

“I figure out exactly what my actual monthly income was, subtract my rent plus utilities, credit card payments, $60 a week for groceries, and about 20% for savings. Then I divide by both 4 and 31 to get a daily and weekly allotment,” he says. “I try to consistently stay under my daily allotment during the week, so that I can spend more on weekends. If I find myself running low or going over, or am saving for something in particular (like a PlayStation 4, currently) I will try to take on extra shifts to raise the necessary funds.”

To create a basic budget, write down all your recurring monthly expenses along with all your projected expenses. For example, I create my grocery budget by figuring out how much I spent last month and seeing if I can reduce it by $10 or so dollars. Consistently doing so trims the excess fat off my spending and gradually gets me saving more — without having to go cold turkey and cutting out the things I enjoy.

• Related: The Secret to Successful Budgeting 

10. Get a side gig

Trying to live a life and save money on an entry-level salary is no easy task. If you can’t find breathing room in your budget, consider taking on a side job. You can find a seasonal part-time job for the holidays to offset what you spend on presents, or try out one of these avenues depending on your availability and interests:

• Care.com: If you enjoy working with children, create a profile and start babysitting for extra cash flow. You don’t have to commit to anything consistent, just set your availability and see what’s out there! Sacrificing one weekend out of the month can earn you a hundred dollars or more.
• Rover.com: Much like Care.com, you have the freedom to set your own hours and choose how much you’d like to get paid… plus the added benefit of hanging out with dogs! If you’re great with animals and can find time in your week and room in your house to dog-sit, definitely consider giving Rover a try.
• Craigslist: Though you should exercise caution before agreeing to do a job for anyone, Craiglist can be a great option for part-time or even just one-time odd jobs. Just remember to never share personal information online.
• Poached.com: Have evenings and weekends off? Consider taking a part-time service job. Poached is an awesome resource for young people living in big cities with variable levels of experience. Upload a resume and you’ll have access to hundreds of openings in your area.

For more supplementary income ideas, check out this list of side businesses you can start on your own, or our post on dozens of other ways to make money.

Final Thoughts

It might feel like the deck is stacked against you when you’re working a lot, making a little, and still trying to piece together some semblance of a social life.

To get yourself on the right track toward financial success, start small, be consistent — and remain realistic. Challenge yourself with a budget, but don’t set yourself up for failure. And acknowledge what living within your means really looks like: If you can’t afford to live in a major city just yet, consider moving to an area that’s friendlier to your wallet (or better yet, move to a place that pays you to be there).

Here are some more resources to help get yourself on firm financial footing:

• How to Save Money: 100 Great Tips to Get You Started
• 10 Money Mistakes Most 20-Somethings Make
• Struggling With Student Loans? How to Lower Your Payments
• How and Why to Use a Zero-Sum Budget
• Build an Emergency Fund

The post 10 Ways Millennials Are Able to Save Money appeared first on The Simple Dollar.

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Joseph Farda, honeymoon-era pioneer, dies at 90

Joseph Farda, Pocono Mountains resort legend and the last of the original honeymoon-era hotel owners, died Monday at the age of 90.Farda, who immigrated from Italy with little in his pockets, worked to become more than a successful businessman. His love for his community helped fund medical, social service and other endeavors.He was a typical, all-American story, according to his friend of 40 years, former Pocono Mountains Visitors Bureau president and CEO Bob Uguccioni. [...]

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4 Facts Investors Should Know About Bonds

As the Fed considers interest rates, bonds will draw more attention. Here's what you need to know.

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Should You Use a Third Party to Negotiate Your Cable Bill?

Companies like BillCutterz and BillFixers offer to negotiate lower monthly bills for you. Here's a look at the pros and cons. 

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The Ultimate Guide to Working as a Professional Santa Claus

Do you love Christmas? Are you full of cheer? Can you grow a belly, and more importantly, a beard?

If so, then you might have what it takes to work as a professional Santa Claus.

If you’ve thought about pursuing this unusual seasonal job, but didn’t know where to start, keep reading for advice from professional Santas in three different states; they share the inside scoop on working as Santa this Christmas.

Santa Claus Job Requirements

Yes, there are a few important requirements if you want to work as a professional Santa Claus.

First, you need to look the part. It’s best if you’re over the age of 50, have a belly and can grow an impressive beard. (But it doesn’t have to be white; some Santas actually bleach their beards!)

Jim Beck, who worked as a professional Santa in Denver for eight years (but is taking this season off), says he got into the business because people kept telling him he looked like Santa — even without the beard. So after he became disabled and could no longer work in construction, he decided to give it a shot.

Michigan Santa Claus was also a natural: “Mrs. Claus always says: ‘My Santa has a real beard and natural cookie zone.’ I’ve actually had my beard for nearly 45 years!”

More importantly, you have to want to be Santa Claus. You should have a genuine love of Christmas and children.

Santa Tim is enjoying his fifth season as a professional Santa in Lenexa, Kansas. He started working as a Santa to “enjoy the whole Christmas spirit and give back a little bit — to share hope and joy and love.” (If that’s not a Santa answer, I don’t know what is!)

Where Can You Work as a Santa?

Professional Santa Clauses have lots of work options, including shopping malls, corporate and community events and private home parties.

The Santas we interviewed mostly did private home visits, with some corporate events mixed in. None of them worked as mall Santas — though some Santas do prefer these gigs because they’re long-term positions with steady hours.

When asked why he didn’t work at the mall, Santa Tim explained: “First of all, I want to be independent; secondly, you can only spend around 30 seconds with a child while at the mall. When I do a home visit or corporate event, I get a lot more time with each child.”

Santa Jim Beck has worked at the mall in the past, but now sticks with mostly private parties because he “enjoys the smaller venues.”

How to Start Working as a Santa

Ready to find work as a professional Santa Claus? Here are the techniques our Santas suggested:

1. Go to Santa School

You probably didn’t know it, but Santa schools are a big business.

One of the most comprehensive is the Professional Santa Claus School in Denver, which is held over Labor Day weekend each year. The cost of this four-day school starts at $850 and includes food, 11 months of pre-and post-conference training and consultations, publicity pictures, makeup kits, 72 hours of classroom training — and even live reindeer!

Santa Tim graduated from this school and found it a “very worthwhile investment” because there are “certain amounts of psychology that go into speaking to children.”

He learned a lot about that there, including how to react when a child says they want an iPad or tells you about abuse. Mostly, he enjoyed the school because it set “such a high standard; you’re not just Uncle Joe from next door anymore.”

2. Network With Other Santas

That being said, you don’t have to go to Santa school to find success as a Santa.

Santa Jim Beck got started by working for an established Santa who “subbed out other Santas.” Though he had to pay the lead Santa a cut of his earnings, it led to gigs of his own.

If you’re just starting out, this is a smart move. Find a local Santa who has more work than he can handle, then offer to take on any gigs he can’t or doesn’t want to do. If you offer him a percentage of your earnings, what Santa is going to say no?

3. Buy a Suit … and Start Working

That’s how Michigan Santa Claus did it.

His first Santa suit was made by a friend who is a professional sewer. He wore it while helping to sell Christmas trees at the Home Depot where his son worked. He wanted to “see what the response would be and if I liked it.”

Clearly, the response was “awesome!” — because he is now in his thirteenth season.

4. Build a Website

For all of the Santas we interviewed — just like the party princess we spoke with last year — web inquiries are how they get the majority of their business. Creating a website is an essential step in starting your business.

Michigan Santa Claus recommends R & R Web Design, whom he hired to create his snazzy-looking site.

But if you don’t have the money for that right away, don’t fret: Santa Jim Beck’s site was designed by a friend and is very basic. Despite its simplicity, it is still how he gets almost all of his customers.

5. Create a Profile on Gig Salad

When looking to hire a professional Santa, most people’s first stop will be an Internet search. And Gig Salad, a site for booking live entertainment, might be one of the first things that pops up.

For that reason, Santa Tim says creating a Gig Salad profile was the “most effective” thing he did. Membership ranges from free to $39.99 per month.

6. Return Visits

The first year of being a Santa is definitely the hardest. However, once you’ve visited some families, Santa Jim Beck says, “They’re generally going to want you back next year.”

People want continuity for their kids, which means guaranteed repeat business each year — in addition to any new clients you drum up.

Santa Tim says this works for corporate events, too — as does word of mouth: “One HR lady will ask another one: ‘What Santa did you hire?’ and that will get you some more gigs.”

How Much Money Can You Make Working as a Santa?

The pay range for professional Santas varies widely, depending on how much you work and how much effort you put into marketing yourself. The majority of Santas only work during November and December, though some keep the holiday spirit going all year long.

Santa Jim Beck recently raised his rates from $150 to $200 an hour, though he says he is “not gung-ho like a lot of guys are.”

Santa Tim estimates you can earn “$3,000 to $7,000 in a season” working part-time on some weekday evenings and during both the morning and evening on the weekends.

How Much Does It Cost to Start Working as a Santa?

Besides for growing out your beard, there are some start-up costs involved in working as a Santa.

If you choose to attend Santa school, that will be one of your biggest expenses.

Santa Tim says the rest depends on your “level of professionalism,” adding: “If I’m going to represent Santa for children, I want to be as professional and realistic as I can be. Children are looking at everything about you: your eyes, your cuffs, your boots, your belt. I put $200-$300 into bleaching my hair and beard; I have two suits that each cost over $1,000, a $300 belt and $300 boots.”

Michigan Santa agrees, saying it’s “very important” to “not ‘skimp’ on the suit.” His is “lined wool with real sheepskin white fur trim.”

In addition to the suit and the website, he also says, “It’s very important to set up as a business account and register the name of the business with the state establishing LLC … [And] we’ve never had an issue but we do carry Entertainment Liability Insurance.”

What Do Aspiring Santas Need to Know?

So you still want to work as a Santa? We asked our professionals for the one piece of advice they’d give to aspiring Santas, and here’s what they said:

“Grow a beard and learn how to laugh!” — Santa Jim Beck

“Before you become a Santa, you really need to understand what it’s going to do to your life … You are going to have to be Santa Claus. I have a different standard every day; it’s a high level of responsibility. It’s everywhere you go: If you’re driving your car, and you have road rage — people are going to say: ‘Oh, Santa’s having road rage.’ You have to really govern yourself … Even in street clothes, some kids will come up and grab your legs and tell you what they want — so you’ve got to spend a few minutes with them.” — Santa Tim

“Always stay in character when you have your Santa suit on. Work on that ‘HO HO HO;’ it must come from deep within the belly! When [Mrs. Claus and I] have an event, we take the children into our arms and on our laps and in our hearts, as our own. Yes, we do receive payment — but you’ve got to love children and their families too!” — Michigan Santa Claus

Your Turn: Who do you know that looks like Santa? Send them this article and see whether they’re keen to make some extra cash this holiday season!

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

This post originally ran in 2014, but we wanted to bring it back for any potential new Santas.

 

The post The Ultimate Guide to Working as a Professional Santa Claus appeared first on The Penny Hoarder.

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GF¢ 059: Are You Making These 7 Mistakes in Your Retirement Planning?

Mistakes.

We all make them.

We’ll continue to make them.

The key is not making the same mistakes over and over again.

Especially as it pertains to planning for your retirement.

In a recent webinar, I shared the 7 BIGGEST mistakes investors make planning for retirement. I’ll be hosting the webinar again, but also decided to record the audio of the presentation and share on the GF¢ podcast.

Here are the 7 key points:

1. Not Knowing What You Are Paying in Fees
2. Not Knowing What You Own
3. Not Saving Enough
4. Not Having Goals
5. Lack of Life Insurance Planning
6. Not Understanding Risk
7. Letting Your Emotions Decide How You Invest

P.S.

Be sure to listen to the end for a sweet offering from yours truly.  

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An Unconventional Retirement on Panama’s Pacific Coast

How one couple was able to retire sooner by moving overseas.

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4 Large-Cap Stocks That Make Great Holiday Gifts for Kids

Giving stock to a child will reinforce the importance of saving and long-term investing.

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This Woman Found a Genius Way to Make an Extra $5,000 With Her Guest Room

Do you wish you could travel abroad? Do you dream of trying fresh Japanese sushi, or hearing the lyrical Italian language at its source?

We believe everyone can travel — but we also acknowledge it’s harder for some than others. If you can’t make it happen right now, we have some good news: You don’t need to fly overseas to experience another culture.

In fact, we recently discovered an easy way to forge international friendships — a way that can actually earn you a healthy side income. (For one woman, we’re talking more than $5,000 last year!)

Meet Homestay, a site that helps you rent out your spare room to guests from all over the world.

They’ve already hit it big overseas (with 50,000 hosts in 150 countries), but don’t have a strong U.S. presence yet — which means you could potentially be one of the only hosts in your area.

If you love meeting new people and want to boost your income, keep reading.

What’s It Like to Be a Homestay Host?

Three years ago, Edna Stevens’ children grew up and moved out of her home in suburban Minneapolis. One of her friends recommended she rent out her spare rooms — and as a traveler herself, Homestay was an ideal match.

“I’ve always loved learning about different cultures,” she says. “If you can’t get to the other countries, having people in your house from those countries is awesome because you can learn right in your own home.”

Edna charges $30 a night and, though she’s only had four guests, has earned more than $1,000 during her two years on the platform. She’s used her earnings to upgrade the rooms, saying, “Not only do I get to enjoy the fact this room is remodeled, but so do my guests.”

Yvonne, who requested we didn’t use her last name, lives in New Jersey, just outside of New York City. When she was unable to work last fall, Yvonne’s landlord suggested she rent out her two extra rooms.

Though she started out using rival site Airbnb, Yvonne now receives over 90% of her bookings through Homestay. In the past year, she’s had more than 100 guests, who stay three to 16 nights and pay an average of $65 to $75 a night.

Each month, she earns between $500 and $1,500; in total, she’s earned more than $5,000 renting out her spare rooms.

How is Homestay Different Than Airbnb?  

You may be thinking: Homestay sounds great, but is it any different from Airbnb? Yes and yes. Here are four important distinctions:

1. Homestay Guests Want Cultural Immersion

This is by far the biggest differentiator between the two sites: Homestay doesn’t allow empty rentals, so their guests are specifically seeking personal interaction.

Not only does this mean you’re opening yourself up to a pool of new friends, but you may not have to worry as much about bookings from party animals or people who view your personal sanctuary as “just a place to sleep.”

Both Yvonne and Edna said they’ve had genuine and interesting guests through Homestay, many of whom they’ve stayed in touch with.

“I’ve met really sweet, awesome people from all walks of life,” says Edna. “One girl was from Bangladesh! I mean, think about it: How often do you get to have somebody from Bangladesh in your home?”

2. You Can “Meet” Your Guests Beforehand

If you’ve been tempted to try Airbnb, but have been nervous about letting strangers into your home, you might like Homestay’s video chat feature.

Whereas Airbnb only lets you contact potential guests via email or texting, Homestay’s platform allows for Skype-like video calls.

“Speaking to a person directly, it’s always nice,” says Edna. “You can feel them out before they come to your home.”

3. Homestay Isn’t Big in the U.S. Yet

You could view this as either a pro or a con. Though Homestay is well-known in the U.K., it’s just beginning its expansion into the United States.

The downside of this is — at least to begin with — you may not receive as many bookings as you would through Airbnb.

The benefit? You won’t have much competition, so now could be the perfect time to establish yourself with some great reviews.

4. You Handle the Payments

When a guest books a stay with you, Homestay charges a 15% booking fee as their commission. It’s then your responsibility to collect the remainder of the payment.

In comparison, Airbnb charges the guest a 3% commission and a 6% to 12% “guest service fee” in addition to the nightly rate. They only release the payment to you, the host, 24 hours after the guest has checked in.

Though Homestay’s method creates more work for you (Edna, for example, wishes there were a way she could accept credit cards), others enjoy the flexibility this provides.

“With Homestay, they only collect the booking fee, then it’s between me and the guest to arrange payment,” explains Yvonne. “Sometimes I may ask for 50% up front and 50% on arrival, which kind of provides more of a cash flow.”

Should You Host with Homestay?

If you’re considering hosting with Homestay, ask yourself these two questions.

Do I Have a Spare Room in My Home?

As noted above, Homestay doesn’t allow empty rentals: You can only host Homestay guests in the home you live in.

(If you don’t have a spare room, but are still eager to save money and learn about new cultures, try booking a Homestay the next time you travel.)

Do I Want to Make New Friends From All Over the World?

One thing’s certain: You should only become a Homestay host if you’re eager to meet new people and discover new cultures.

“It’s a good way to learn a little bit more about their countries and where they come from — you pick up a lot of travel tips as well,” explains Yvonne.

“You get to meet people from all over the world,” adds Edna. “Literally without getting on a plane and spending the money. … What’s the purpose of life if you have great things and then you just keep them to yourself?”

We would agree: Cultures, knowledge, conversation — they’re all better when shared.

How to Become a Homestay Host

Want in? First, create a free listing on Homestay, complete with photos and a description of you, your home and your neighborhood. Set a nightly price (keeping Homestay’s 15% commission in mind).

Once you click publish, your listing is live! Travelers will be able to see your spare room and request a booking, which you can accept or reject.

If you accept it, you’re expected to interact with your guests and provide a light breakfast each day they’re there.

“You must be living in your home during the guest’s stay, and be available to spend a little time with them, to make it a truly authentic and unique travel experience for them with a local,” states the site.

What do you think? If you’ve always dreamed of hosting people from all over the world, this could be the platform you’ve been searching for.

If you’re interested in learning more about hosting with Homestay, click here.

Sponsorship Disclosure: A huge thanks to Homestay for working with us to bring you this content. It’s rare that we have the opportunity to share something so awesome and get paid for it!

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

The post This Woman Found a Genius Way to Make an Extra $5,000 With Her Guest Room appeared first on The Penny Hoarder.

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8 Ways Pinterest Can Advance Your Career

How to 'pin' your way to a new job.

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What to Expect When You Buy a 100-Year-Old House

An old home can mean potential problems that have been festering for a century. 


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12 Frugal Shopping Tips for Thanksgiving

Preparing ahead of time and being flexible can help trim your costs. 

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The 50 Most Popular Gift Cards This Holiday Season… and How to Get Them at a Discount

I may not have a crystal ball, but I still feel pretty confident making the following prediction:

You are going to give or receive at least one gift card this holiday season.

And I want you to be prepared.

Which gift cards are the most sought after? Which are the best discounted gift cards?  

Thanks to a recent CardHub study, we’ve got answers to all your gift card questions. Keep reading for the 411.

The Most Popular Gift Cards

Shopping for a coworker or great aunt you don’t know too well?

A gift card is usually a safe bet — and if they’re like the people surveyed by CardHub, they’ll be extra stoked to receive credit at these stores…

1. Visa
2. Amazon
3. American Express
4. iTunes
5. Wal-Mart
6. Target
7. Starbucks
8. Netflix
9. eBay
10. Google Play

Gifts Cards That are Frequently Discounted

Want to save money on gift card purchases — either to give as gifts, or to use while holiday shopping?

Buy discount gift cards online: You could save 20% or more on the card’s value.

Using CardHub’s data on the average sale price of used gift cards over the past year, we determined the best bargains.

Here are our top picks, followed by their average discount:

1. H&M (26% off)
2. Fandango (20% off)
3. Dunkin Donuts (19% off)
4. Olive Garden (19% off)
5. Red Lobster (19% off)
6. Forever 21 (18% off)
7. iTunes (18% off)
8. Victoria’s Secret (16.5% off)
9. Ticketmaster (15% off)
10. Sephora (15% off)

If someone on your list loves one of those stores or restaurants, grab a discounted gift card from a site like Raise — you could save a bundle!

CardHub also shared several smart gift card tips. Here are our favorites:

Beware of Fees on General Purpose Gift Cards

Cards from Visa and American Express are popular — because they can be used for anything — but keep in mind they charge “purchase fees.”

So, you might pay $55 to buy a card worth $50 (a fee you’d avoid by buying a branded gift card).

Exchange Old Gift Cards

Have a beat-up gift card from Home Depot you’ll never use, but your cousin will love?

Ask the store to exchange the old gift card for this year’s design. Your cousin will never know the difference.

Buy Them With Rewards

Another smart way to buy gift cards — use credit card rewards.

“In many cases, you can garner more value from this type of redemption strategy than redeeming for cash,” CardHub explains.

“For example, under Citibank’s rewards program, you need 10,000 ThankYou points to get $50 in cash back, whereas you only need 5,000 points (50% fewer) for a $50 gift card.”

Whether you’re giving or receiving gift cards this holiday season, we found this info helpful — we hope you do, too!

For the full post, head over to CardHub.

Your Turn: Will you be purchasing one of these gift cards?

Disclosure: We appreciate you letting us include affiliate links in this post. It helps keep the beer fridge stocked in the Penny Hoarder break room.

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

The post The 50 Most Popular Gift Cards This Holiday Season… and How to Get Them at a Discount appeared first on The Penny Hoarder.

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Supersavers

Yestersday, I found this great article from the New York Times entitled ‘Supersavers’ Focus on the Goal. The article focuses on people like me and like many of you who are putting aside a significant part of their income for the future in order to fund big goals like early retirement.

Unlike other articles that I’ve seen on the topic of “supersaving,” however, this one does a great job of focusing on the actual strategies and tactics that people use rather than just profiling people and their outcomes and acting as if the whole thing were magical.

It’s not magic. It’s just a lot of good choices that add together.

In fact, it’s the sense of “magical thinking” that I find particularly frustrating when it comes to personal finance. Whenever people hear that someone else has a significant amount of money in the bank, the immediate assumption is that either that person has a huge income or they were somehow “lucky” or some other kind of “magic” occurred in their life.

The truth is that for many people – myself included – the money that we’ve saved has come from many years of hard work and many years of making choices that aren’t the choices other people would make. It comes from choosing again and again to plan for the future instead of throwing money away in the present. And, over time, that adds up. It adds up to financial independence and early retirement. It adds up to an amazing home for which you hold the title, not the bank.

And this article in the Times seems to get that. It doesn’t marvel at the stories; rather, it shows the many choices those people made to get where they are.

I wanted to walk through this great article with some of my own commentary, because there are a lot of good ideas in there that deserve some additional notes and a bit more fleshing out.

Early on in the article:

Mr. Reining is part of a small group of supersavers who commit to a number that they say will support their lifestyle in retirement and never stray from achieving that goal. They are the financial equivalent of people who go on a diet, lose the weight and actually keep it off.

“Very few have the discipline and fortitude to set a plan, a budget, and stick with it,” said Jason M. Katz, a managing director at UBS Wealth Management Americas. “The people who are the supersaver freaks, who actually do it, go through an exercise of mental accounting. They designate certain pools of money for certain goals.”

I often talk about dieting and exercise on The Simple Dollar as a parallel endeavor to becoming financially successful. There are a lot of parallels between the two.

For starters, both require a strong degree of internal discipline to get started. They both require a rebooting of your normal life patterns. The things you were doing were taking you down a long-term path that you didn’t like, so you have to find a new path. That means undoing a lot of natural patterns in your life while replacing them with ones that seem pretty challenging, and that’s hard.

However, in both cases, the journey becomes easier once you’ve been doing it for a while. Eating less and exercising more begins to feel natural, just as spending less and saving more does, too. You begin to feel like it’s wrong to do things that would cause you to gain weight or to waste money.

The strategy for success in both endeavors is easy. To lose weight, consume fewer calories than you burn each day, week, and month. To improve your financial state, spend less than you earn each week and month. It’s not hard. It’s just that the implementation of it – the actual act of making it happen in your life – can be really tough.

The people that succeed at either path, whether it’s losing weight or fixing their finances, tend to really stand out from the pack because anyone who has tried either knows how hard it really can be. Sometimes, people think that those who did it must have had access to some secret tricks, but it’s usually just hard work and a lot of determination.

The article jumps right into what I consider to be the key strategy (or at least part of it):

He began saving more: 10 percent at first, then increasing the amount to more than 50 percent. He made as much as he could automatic, to ensure that money from his paycheck flowed immediately from his checking account to his brokerage account and then into index funds. That eliminated the temptation to divert money to the things 30-year-olds might want to buy.

Automation! Automation! Automation! If there’s one key to making investing and saving for the future successful in your life, it’s that.

Each week, I have money automatically deducted from my checking account for all kinds of things. Some of it goes into retirement savings, but I also have separate savings for other goals like our next car replacement cycle and upcoming travel.

The advantage of setting up automatic transfers like this is that I don’t have to think about it. I don’t have to make the conscious decision to save each week – it just happens automatically. The money goes into those saving and investing accounts without me having to lift a finger.

Instead, I just worry about all of my non-saving and non-investing expenses using the pool of money that remains in my checking account. The real impact is just that I can’t spend like a madman. It forces me to have a little bit of self-control over my spending.

Without this kind of automation, it would be really easy for me to talk myself into using that money to buy things I don’t really need (and likely won’t even want in a few months) while skipping my savings for the week. I’d tell myself it will be okay and then two years later I’d have almost nothing in savings or investments.

Automation keeps me on track because it removes my ability to make bad day-to-day choices from the equation completely.

This bit about “flyover country” made me smile:

Mr. Reining, who has been dating his girlfriend for three years, has done some calculations around the cost of children that parents might find a tad low. He thinks they could raise a child from birth through high school on $85,000.

“It won’t go very far in New York or San Francisco, but if you live in flyover country like I do, $85,000 goes a long way,” he said.

I live in “flyover country.” Around here, you can buy a livable house for $50,000, a very nice house for $100,000 and buy an incredibly nice country estate with a huge house and a tract of land for just a few hundred thousand dollars.

If you live in an expensive real estate market like New York or Boston or San Francisco, those numbers probably seem unbelievable, but they’re true. They also indicate why you don’t need nearly as much money to live some version of the “American dream” in other parts of the country.

My “target number” that will pay for all of my retirement is comparable to the cost of a decent house in New York or San Francisco. That’s not a joke.

Yes, of course there are more cultural opportunities in those places, but there are plenty of interesting cultural opportunities here as well, particularly if you look around and don’t expect them to be spoon-fed to you. It becomes even easier if you live near a college town – I live fairly close to Ames, Iowa, where Iowa State University is, and there are several other universities within an hour or two of our home.

I don’t feel as though I am living any sort of culturally deprived life. In fact, I have more cultural, educational, and entertainment options than I possibly have time for in my life. There truly is an abundance of options out there.

I really liked this section on prioritizing:

For any supersaver, it all starts with prioritizing. Diets sometimes fail because they are too restrictive; these supersavers realize that all saving and no fun is not sustainable.

Mr. Reining and his girlfriend go on an overseas vacation each year, last year to England and Italy, the year before to Argentina. They are planning a safari in Tanzania in January.

“These are not inexpensive trips,” he said, though he added: “We’re not staying in $300-a-night hotels. We stay in a small, clean budget hotel and spend more time at museums or spending that money on a tour.”

I absolutely splurge sometimes. My family goes on a vacation of some kind each summer. I like going to tabletop gaming conventions. I have several hobbies that sometimes require money. I enjoy good foods and good drinks probably more often than I should.

The catch is that these things come after saving for my goals and if there isn’t enough money left over after saving, then I have to make hard choices about how to splurge.

It comes down to priorities. For me, things like early retirement are of the highest priority. The only things that rank above it are meeting the basic needs of my family – food, clothing, shelter, and so on.

I choose to make financial independence a higher priority than travel. It doesn’t completely blot out travel, but it does put some restrictions on where I can travel. I choose to make financial independence a higher priority than my hobbies. It doesn’t completely blot out my hobbies, but it does put some restrictions on my hobby spending.

The money I’m saving for the future comes first. I save enough so that my life isn’t miserable, but it is at least a little challenging. In order to spend money on enjoyable things, I simply have to budget and be careful with the money that’s left. If I don’t do that, then I will end up either back in debt or tapping some of that retirement savings, and neither one of those options fills me with any kind of joy.

This section about the importance of finding friends on the same financial page as you also hit home:

Mr. Stammers said that often, people who find friends with similar investment goals did better. They are like supersaver clusters, where peer pressure works the same way it does with people who overextend themselves to match what their neighbors have.

Most of my social circle has a similar perspective on personal finances that I have. We’re all in our thirties. All of us have our student loans completely paid off. All of us own our own homes and have paid off our mortgages in full. None of us have any debts of any kind.

While we’re not all saving for retirement, we are all saving for bigger goals in life. I have one friend who is buying up farmland and leasing it to farmers, which is an interesting angle. Another couple that we know are visiting their “bucket list” of places around the world.

Sarah and I just want to walk away from our jobs in our forties and while our children start to establish their foothold in the adult world, we’re camping in Acadia and Denali and I’m writing a novel and we’re both working for charities and building permaculture in our back yard.

The point is that I have a circle of friends who all have long term goals for their money that they save for by sacrificing some of their minor short term pleasures. We don’t go out together and drop $300 at a restaurant. Instead, we have potlucks and play board games. When I hang out with the guys, we don’t go drop $200 at a golf course on a round, a box of balls, and some time at the clubhouse. We usually sit around a big table at someone’s house and play a game of some kind. We don’t go on expensive trips together; instead, we camp at state parks in Iowa.

Our conversations about money are pretty rare, but when they do come up, they’re often about money-saving tactics. We’ll share really good coupons with each other, for example, or tell each other about some major deal that one of us has found that the other person might find particularly useful. We don’t sit around and talk about specific investments very often, if at all, but it’s understood that all of us are investing in our various ways.

The point is that I do a lot of fun things with my friends and with my broader social circle. They aren’t necessarily expensive things. At the same time, most of my social circle is making a lot of smart financial choices about their lives, so that encourages me to continue to make smart financial choices.

Another interesting part touches on how bad money experiences can help:

David Houston, her brother and adviser, who works at Northwestern Mutual, said his clients who had become supersavers had a trait in common: They were coachable.

“What you find is, someone who has had a bad experience or seen someone have bad experiences is much more coachable, because they don’t want to fall into that ditch,” Mr. Houston said. “Then you take someone for whom life has been easy — they get out of college and they don’t get on a track.”

This is a fairly broad generalization, but it makes the point that having a plan and listening to someone knowledgeable may keep you from fooling yourself.

This sounds an awful lot like me. Sarah and I went through a very painful financial period in the mid-2000s, and it was that rough patch, in fact, that led to the birth of The Simple Dollar.

I believe that part of what led to our financial turnaround was that I was truly afraid of going back there. I didn’t – and still do not – want to be in a situation that’s anything at all like that, ever again. There’s a fear element there.

One interesting part of this section is Houston’s reference to being “coachable.” I never participated in personal finance coaching per se, but I did check out a ton of books from the library and read a ton of websites about personal finance and I absorbed that material like a sponge. I think that part of my openness to such ideas was due to my understanding of how bad things could actually get.

In a way, I was “coached” by personal finance books and websites. They provided me the material and ideas I needed to make things happen, but they didn’t provide the motivation. I provided that myself, and it was borne out of a fear of ever returning to the tenuous financial state I found myself in early in 2006.

This bit at the end about being a “supersaver” while balancing social relationships also hit home:

For Mr. Reining, the hardest part is not maintaining day to day the financial diet he has put himself on. His solutions to that are “just automation” and “pretending like you don’t have that money anymore.” Then there’s the part about turning down friends.

“Sometimes people ask us to go out for the night, and you have to say no,” he said. “Sometimes you have to suggest doing something else other than going out to a fancy restaurant and spending a few hundred dollars. You have to be cognizant of that alignment of your spending with your values.”

One thing this whole financial journey has taught me is that you have some friends that like the experiences that you shared more than they actually like you, and you have other friends that value you more than the experiences you share.

When you start suggesting more frugal things to do, that first group melts away pretty quickly. It really can hurt. I know that it hurt for me when it happened, as I had golfing buddies and other friends that basically vanished out of my life at that point.

The thing is, that second group will stick around, and you might just find that you have more in common with them than you thought you did. I had a group of about three friends that were friends with me when I spent money like water and remained friends with me when I turned that ship around. Those people are actually pretty frugal in their own right – they just didn’t judge me when I did expensive things and went along with it when I suggested expensive stuff to do. They’re also very happy to do things like going to (and hosting) a potluck dinner party and a game night. They don’t require that we go out to a club or a restaurant and blow hundreds of dollars to have fun.

The New York Times is spot on with this article. Being a “supersaver” is all about having big goals, building a plan for achieving those goals, automating that plan, and then enjoying life with the remaining money. Yes, that probably means you won’t have a luxury car, but it also means you’ll have a lot less stress in your life and you’ll have a strong sense of moving toward goals in your life, goals that will enable you to take on challenges and enjoy things that might have otherwise seemed impossible.

Sure, it might not be the easiest path in the world, but nothing worth doing is ever easy.

Good luck, you supersavers out there (and those who want to become one).

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The Ultimate Guide to Buying a Stunning Engagement Ring (Without Going Broke)

First comes love, then comes marriage … Well, almost. In between those two things comes a pretty big purchase: the ring.

Though it pales in comparison to finding “The One,” finding the right engagement ring is no simple task. Knowing how to buy an engagement ring is a science in itself.

From stones to settings, it can quickly get complicated, overwhelming — and expensive. Worst of all, it’s easy to get duped if you don’t know what you’re doing.  

To help you tackle this pre-proposal pursuit, we’ve created a comprehensive guide with everything you need to know before buying an engagement ring.

Note: For simplicity’s sake, we’ve used a man proposing to a woman model — but please know The Penny Hoarder welcomes all love and ring-buying (or abstaining) practices!

5 Need-to-Know Engagement Ring Shopping Tips

Need the basics? Are you sitting in your car outside the jewelry store right now?

If you’re in a rush, just read this section and take a screenshot of the cheat sheet that follows. (But we recommend taking your time.)

1. The “Two Months’ Salary” Guideline is a Myth

You’re supposed to spend two months’ salary on an engagement ring, right?

The “rule” is actually the result of a wildly successful diamond industry advertising campaign. (So are diamond engagement rings in general … but that’s another story.)

Before you’re swayed by all the shiny stuff in the jewelry store (and smooth-talking salespeople), set a firm budget.

It shouldn’t be hard to figure out: Look at the amount of money you’ve saved, and don’t go over it.

Borrowing money to purchase an engagement ring isn’t smart. We’d recommend using a credit card to purchase it (so you can earn rewards!), but only spend as much money as you saved. Then pay the full balance when you get the bill.

Remember: You’re going to be together for a lifetime (ideally). You can always upgrade her ring later — or if buying from a local jeweler, trade it in for a bigger stone.

2. It Could Take Six Weeks to Get Your Ring

Think you’re just going to walk into a store, grab the perfect ring and walk out?

Think again, Rico Suave. Depending on the style, setting and level of customization, rings can take from two to six weeks (or more) to be ready to put on her finger.

Make sure you factor that in when you plan your proposal, so you don’t find yourself on one knee with a plastic placeholder in your pocket when you’d rather give her the real deal.

3. Buying Your Stone Online Could Save Money

Want to save money? Don’t buy a ready-to-wear ring. Loose diamonds are a far better value than those already sitting pretty in a setting — and buying them online could save you loads.

“A ring with a 0.7-carat diamond that cost $4,895 from online jewelry retailer Blue Nile might sell for 20 to 25% more at an average brick and mortar retailer,” the New York Times reports.

However, there’s something to be said for seeing the diamond yourself.

Raju Khiatani owns Barclays Jewelers in Miami, Florida and is a 40-year veteran of the diamond business. He says dealers sell lower-quality diamonds to online jewelers because they know customers will be buying them without seeing the stones. Traditional jewelers handpick each diamond they sell.

“If you look at the certificate … it won’t tell you if the stone looks a little hazy, or is not as bright,” he explains.

Khiatani also notes buying a diamond offline isn’t always more expensive, because you could stumble upon a technically inferior diamond that is stunning in person.

“Sometimes you could buy a lower color diamond that would look as nice as a [better] color because of the way it was cut and sparkled,” Khiatani explains. “You could save maybe a few thousand dollars, a few hundred dollars, depending on what size it was.”

4. Some Women Don’t Want Expensive Diamond Rings

Before dropping a bunch of money on an expensive diamond ring, ask yourself if it’s what your future fiancée really wants.

Some women have family heirlooms they’d rather wear — others prefer specific gemstones. Some think the entire diamond industry is absurd, and would prefer a romantic vacation or down payment on a house instead of a pricey ring.

If you’re not sure what she really wants, you could propose with an inexpensive costume jewelry ring and let her pick one out. (One of my friends got proposed to with a Ring Pop, which I thought was really cute!)

5. Proceed With Caution

There’s no nice way to say it: The diamond industry is notoriously shady.

To help navigate the murky waters, our absolute best advice is to find a jeweler you trust. Avoid big-name chain jewelers. Instead, ask friends for recommendations or look up a local jeweler with excellent Yelp reviews.

“A lot of these chain stores, they advertise a one carat diamond for say, $2,900,” Khiatani says. “It probably looks like a 0.85 or 0.90 [carat]. It’s not cut as well, but because the customer is not aware of that, and is just looking at the total weight, they think they’re getting a good deal.”

He suggests looking for “a jeweler in your hometown, who has been there for a while, who has a reputation, who would be happy to take back whatever they sell you — because they know what they’re selling you is good stuff.”

If you can’t find a good local option, try a well-respected online retailer like Blue Nile.

Cheat Sheet: How to Buy a Good Engagement Ring

DIAMOND SHAPE

Round: They offer the most sparkle and are by far the most popular. When in doubt, go round.

Princess: The second most popular cut — sparkly and modern at a lower price than round.

Marquise, pear and oval: These can create the illusion of slimmer fingers — and more carats.

Cushion, emerald, asscher and radiant: If she has vintage or romantic tastes and wants to stand out in a crowd of rounds.

CHOOSING A DIAMOND: THE 4Cs

In order of importance, here’s what you should consider when buying a diamond:

Cut: Get the best cut you can afford — stick to Ideal (preferable) or Very Good.

Clarity: SI1 or SI2 are the best value.

Color: Choose G, H, or I (with G being the best).

Carat: To save a bundle, “buy shy”: Choose a diamond just under one carat (0.9, for example).  

RING STYLE & SETTING

Think about her taste and style. Is it funky, romantic, modern, classic? Does she wear jewelry that is gold in color, or silver? Is she more comfortable at a luxury hotel, or a tent?

These questions can help you figure out the style, setting and metal of her ideal ring.

RING SIZE

Most women are between size 5 and 7, with 6 being the average. If you have no clue what size she is, get a 7 and purchase a ring guard to go with it (a plastic tube that makes the ring smaller). You can always get it resized later.

If you have the time (and energy) to research and plan your ring purchase, here are seven steps for picking out the perfect engagement ring.

1. Start Sleuthin’

Before you even drive to the store, don your detective cap. The right woman may say “yes” to whatever is in the box, you want your ring to show you really know what she likes.

If you haven’t talked about a ring, here are a few ways to figure out what she might like:

Listen for Hints

If your girlfriend wants you to propose, she’s probably going to drop hints her dream ring.

Next time one of her friends gets engaged, listen to what she says about the ring. Beautiful? Too big? Too plain? Just vintage enough?

Ask Her Friends and Family

Her inner circle probably knows what kind of ring she wants. Get her sister or best friend in on it; they’re almost certain to share good advice — and if you’re lucky, photos.

Consider Conflict-Free

Does your girlfriend care about social issues? She may want a conflict-free (read: non-blood) diamond.

If that’s the case, look for an antique ring, use a family heirloom, shop at an ethical vendor like Brilliant Earth or purchase a Canadian diamond from a website like Blue Nile.

At least make sure your diamond has been vetted by the Kimberley Process; it’s not perfect, but better than nothing.

2. Figure Out Her Size

When secretly buying an engagement ring, this is the trickiest part.

Her friends and family may know her size. But if they don’t (or you don’t want to ask), you’re not totally out of luck. You can print out a ring-sizing guide and compare one of her rings to it — just keep in mind her fingers may be different sizes.

“The average ring size in the US is 6 (based on the ‘average’ US female being 5’4″ tall and weighing 140 lbs.),” according to the Gemological Institute of America (GIA) guidelines.

“If she’s more slender, or fine boned, her ring size is probably in the 4 1/2 to 5 1/2 range. If she is heavier, larger boned or taller, her ring size is probably in the 6 1/2 to 7 1/2 range.”

When in doubt, choose a size 7 and buy a ring guard in case it’s too big. She’ll be able to wear the ring for all the “Yay! We’re engaged!” photos, and you can get it resized later. Some jewelers — Blue Nile included — resize for free.

3. Choose a Shape

A diamond’s shape is one of the most important aesthetics of your ring.

Round is most popular because it catches the most light — it’s the sparkliest.

Princess is second most popular. It offers much of the shininess of round — in a more modern style. Another bonus? It’s cheaper.  

Marquise, oval and pear are long and slender, which can have a slimming effect on fingers. Because almost the entirety of these stones appear in the setting, they can also appear larger.

Other less-common shapes include cushion, emerald, asscher, radiant and heart-shaped. These are great options if your fiancée has romantic or vintage tastes, or dreams of a unique ring none of her friends are wearing.

4. Learn Your 4 Cs

If you haven’t figured it out yet, finding the right diamond is the most important piece of the engagement ring puzzle.

You need to know your 4 Cs: cut, color, clarity and carat.

These metrics are used to rate every diamond. Not only will they give you an idea of a stone’s quality — they’ll also help you estimate the cost.

“The cut of your diamond typically has the biggest impact on its price — about 25% to 50%. Carat weight will influence about 10% to 20% and color and clarity each make up the last 10% to 15% of the price,” Forbes reports.

(If you really want inside info, order Rapaport Magazine — it lists the market value for different diamonds.)

Make sure the diamond you buy is officially rated by the GIA — not the jeweler. Your stone should also come with a certificate detailing its C scores.

Here’s what else you need to know about the 4 Cs:

Cut

Cut describes the diamond’s proportions and symmetry. It’s the most important factor to consider. “It affects the sparkle of the stone,” Khiatani explains.  

Don’t skimp here. Go for the best cut your budget allows: Very Good, or if possible, Ideal.

Color

Diamonds are rated on a scale from D (colorless) to Z (yellow). The less color, the more expensive the diamond.

If you want a stunning diamond that won’t blow your budget, we recommend ratings G, H or I.

Clarity

Clarity refers to the stone’s number of imperfections, called “inclusions.”

Stick to diamonds rated SI1 or SI2. These may have small inclusions, but not visible to the naked eye.

Carat

The C you’ve probably heard most about actually is the least important. Carat refers to the weight of your diamond: 142 carats per ounce.

If choosing between quality and quantity, go with the former. Buy a small sparkly diamond, not a big dull one.

We also recommend “buying shy.” Purchase a diamond that’s just under the carat you’d like.

If you want a one-carat diamond, get one that’s 0.95 — it’ll look nearly identical and could save you as much as 30%.

The 4 Cs are great guidelines for diamond shopping, but don’t let them trump what you think of a stone.

“It’s like looking at girls,” Khiatani explains. “To me, she might look beautiful; to somebody else, they don’t like what she looks like. I find some diamonds of lower quality — in terms of what the certificate says — and the diamond just sparkles.”

5. Pick a Setting She’ll Love

The diamond may be the most important part of an engagement ring, but you should also take time to ensure the style is up her alley. This is where the sleuthing comes in handy — hopefully you have some idea what she likes.

Settings include solitaire, sidestone, three-stone and pave (where the main stone is surrounded by tiny diamonds). Bezel and halo settings push the diamond up, which make it look bigger. If you need more guidance, Brilliant Earth has an excellent guide.

Choose a metal, too. The most common colors are yellow, white and rose gold and platinum. If she normally wears silver-colored jewelry, she’d probably prefer a white gold or platinum ring. The former is cheaper, but the latter’s more durable.

Totally stumped? Turn to the experts. Snap a few sneaky pics of her jewelry collection and show your jeweler. If you don’t know what her collection says about her tastes, they might.

Or, propose with just a diamond and let your future fiancée choose the setting. We recommend putting it in a basic setting (don’t just hand her a box with a rock) so she has something to flaunt for Facebook once she’s said yes.  

6. Purchase Insurance

You’ve spent all this time reading about an expensive ring — the last thing you probably want to think about is losing it.

It’s always a possibility, so be sure to purchase ring insurance. Most people can get coverage as an add-on (or “rider”) on their homeowners or renters insurance.

“The yearly cost to insure your ring is $1 to $2 for every $100 that it would cost to replace,” The Knot reports. So if you buy a $3,000 ring, insurance will cost between $30 and $60 per year.

“A good policy will cover every potential ring-threatening situation, from theft and damage to accidentally dropping it in the garbage disposal.”

The most important thing is to read the fine print, The Knot says.

7. Propose

Alright, you’re ready! Now all you have to do is… plan a proposal. And a wedding.

No big deal.

Good luck!

Your Turn: Have you purchased an engagement ring? Any tips to share?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

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