Is this Australia’s filthiest hotel?

THAT awkward moment when you realise you’re lying on filth-stained bedsheets — and it gets worse.

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‘I felt something and started to choke’

A PASSENGER who says he choked on food in the Qantas lounge and was hospitalised says people who lose their luggage are treated better than he was.

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Colonel Sanders’ zinger of a stuff up

IT’S finger licken’ bad for the takeaway giant with uproar over a new store which had been a little too graphic on what happens to your meal after you eat it.

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Sneaky trick to fool Woolies card

SHOPPERS hate the new Woolies card, but this woman has a genius trick she uses to get seven times the rewards.

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Six days to send a letter by snail mail

THANKS for nothing, Australia Post. Our national mail service is about to introduce new prices and delivery times. They’re worse than ever.

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Atlassian duo hit $8 billion jackpot

ATLASSIAN co-founders and former university classmates Mike Cannon-Brookes and Scott Farquar have been rocketed to the top of the rich list overnight.

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Atlassian duo hit $8 billion jackpot

ATLASSIAN co-founders and former university classmates Mike Cannon-Brookes and Scott Farquar have been rocketed to the top of the rich list overnight.

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The Pros and Cons of Social Investing

Social media isn't just for pet peeves anymore – new hubs make it possible to post about your stocks.

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How I Bought Christmas Presents for My Family in Under an Hour and for Less Than $50

I love the holidays. I love the jingles, the lights, the snow, the cheer.

The only thing I don’t like about it?

The money.

I truly appreciate my friends and family, and I want to get them gifts that are as amazing as they are… but I’m on a tight budget! Having just moved across the country to write for The Penny Hoarder, I can’t afford to go too crazy spending on presents this year.

So when I heard about this site called Snagshout, where you can get discounted Amazon products in exchange for unbiased reviews, I was intrigued.

I wondered if it could help me check a few gifts off my list…  without blowing my budget.

With the holidays quickly approaching — and my holiday shopping list rapidly growing — I thought I’d give it a shot.

Here’s what happened…

The Awesome Gifts I Snagged at a 56% Discount

I set a budget of $50 to buy gifts for as many people as I could. I decided to err on the side of quality rather than quantity, and in the end, I found gifts for five people on my list.

Here’s who I shopped for using Snagshout, what I bought and how much I saved:

1. Mom: 2-Pack Solar Power Outdoor Lights

My mom recently retired (lucky!) and now spends a lot of time in her garden. I thought these solar garden lights would be perfect for the new path she’s making around the house.

In return for the great discount I received on these lights, all I had to do was write an unbiased Amazon review.

Snagshout gives you two weeks to submit your review, but because you’re only allowed to order one item at a time, I wrote this item’s review as soon as I received it. That way, I could quickly order my next gift.

Amazon Price: $21.99

My Cost: $13.50

Savings: 39%

2. Dad: Luxury Peppermill

My dad is always the most difficult person to shop for. He doesn’t have stereotypical “dad hobbies” like golfing or fishing, and he’s worn the same Wrangler jeans since before I was born.

He does, however, love to eat. (Must be a family trait.) He puts pepper or hot sauce on almost everything, so I knew this chic-looking pepper grinder would make a great gift.

Because my orders were gifts that I didn’t use personally, it was tough to write comprehensive reviews — of this one especially — but I did my best to share something honest about each product. In the reviews, I noted I hadn’t opened the items, and once the holiday has passed, I’ll update my reviews with more details from my giftees.

Amazon Price: $24.99

My Cost: $9.99

Savings: 60%

3. BFF: H20 Survival Water Filter Travel Straw

One of my besties is a wildland firefighter who spends her summers in the forests of the Pacific Northwest. During fire season, I worry about her constantly. I know this survival straw won’t keep her safe, but it could help her in case of an emergency.

Despite the fact I could only order one item at a time with Snagshout, my Amazon Prime membership made the process pretty easy. I received each item two days after ordering it, making this the earliest I’ve ever done my holiday shopping!

(Don’t have Prime? Grab a free 30-day trial to make shipping with Snagshout quick and free.)

Amazon Price: $20.99

My Cost: $10

Savings: 52%

4. Roomie: Wine Decanter, Aerator and Wine Glass

My roommate’s and my favorite way to unwind is by sitting on the couch with a bottle of wine and talking about everything (OK, fine, it’s almost always about boys).

With this wine decanter, we can be super fancy while we hang out in our sweats.

By the time I snagged this deal, I was allowed to order both this item and the next one; once you’ve snagged and reviewed several items in a timely manner, Snagshout increases the number of items you can order at once.

Amazon Price: $24.99

My Cost: $9.99

Savings: 60%

5. “Lil’ Sis”: Barrel Racer Heart & Bracelet

This 8-year-old girl isn’t my real little sister — she’s someone I tutor every week. She loves horses and jewelry, so I can’t imagine a more fitting gift. I’m so excited to see her face when I give her this cute bracelet.

Snagshout only has a limited amount of each product, so I grabbed this one as soon as I saw it. With the crazy discount offered, I figured supplies would run out quickly.

Amazon Price: $19.95

My Cost: $5.95

Savings: 71%

Would I Use Snagshout Again?

Phew! Can you believe I got all those fantastic gifts for such a small amount of money?

In total, I snagged $112.91 worth of items for only $49.43 — a savings of 56%!

Because I’m lucky to have a lot of wonderful people in my life, I didn’t get through my whole list, but I did get an awesome head start.

Whether you have Prime or not, if you want to try Snagshout to buy your holiday gifts, I’d recommend starting as soon as possible.

Personally, I’d like to use Snagshout again in the future. Though it was quite a marathon to get through my holiday shopping this way, I plan to log in every few weeks over the next year and order great gifts as they pop up on the site. I’ll also check their Twitter and Facebook channels, where they announce the latest deals.

I’ll just have to be careful that I don’t get too carried away… I did, for example, just snag this foldable wine flask for $3 as a gift to myself. That’s a savings of 86%, but it was still a few bucks I didn’t really need to spend.

But what fun is holiday shopping if you can’t land a few deals for yourself?

Interested in shopping through Snagshout? Click here to learn more.

Sponsorship Disclosure: A huge thanks to Snagshout 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 How I Bought Christmas Presents for My Family in Under an Hour and for Less Than $50 appeared first on The Penny Hoarder.

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Want to Get Cheap Flights? Whatever You Do, Don’t Buy Tickets on This Day

“How can I get cheap flights?”

As a traveler and travel writer, people ask me that question all the time.

My answer? “It depends.”

Thanks to airlines’ ever-changing pricing strategies, figuring out how to get cheap flights is tough.

But new research shared by The Wall Street Journal provides some fantastic insights. One key variable? When you book your ticket.

Based on the report, the WSJ shares several smart tips for timing your ticket purchase. Since the article is behind a paywall, we’ve shared some of the most important findings below.

Keep reading to learn the exact day to book to get cheap flights…

When to Find the Cheapest Tickets

Many variables play a role in a ticket’s price, but as the WSJ reports, a few timing tricks can help you find cheaper flights.

Don’t Book on a Friday

Travel experts used to recommend buying tickets on a Tuesday, when discounted fares were released, but that’s no longer true.

Now, Sundays are the cheapest day to buy tickets, followed by Saturdays. The rest of the days are fairly similar, but Friday is a glaring exception.

“Average prices for tickets bought on Friday are 13% higher than on Sunday,” the WSJ reports.

Though it says that’s “largely a function of higher-priced business travel bookings not being made over the weekend,” the research shows leisure tickets purchased over the weekend are still cheaper.

So whatever you do, avoid buying tickets on Friday!

Buy Tickets Ahead of Time

Last-minute discounts are a thing of the past.

Here’s how far ahead the WSJ says you should book tickets for travel from North America to the following destinations:

• Domestic: 57 days
• Caribbean: 77 days
• South America: 90 days
• Middle East/Africa: 144 days
• Asia/Pacific: 160 days
• Europe: 176 days

Whether you’re planning to hit up the Caribbean for spring break or Europe for your summer vacation, you should book soon.

Stay on Top of Fares

Airlines adjust fares more frequently than ever.

“When you see a good price, grab it,” suggests the WSJ.

To help you keep track of the varying fares, I recommend following airlines and airline aggregators on social media. You can also sign up for newsletters from sites like Mighty Travels and Deals We Like.

Or, if there’s a particular route you’re planning to fly, I love using these tools:

• Airfare Watchdog: This site sends you email updates about routes, or for deals from your home airport.

• Hopper: This new smartphone app tells you whether fares on a certain route are likely to increase or decrease, and alerts you when especially good prices pop up.

So, my response to the initial question about how to find cheap flights?

I’d still say, “It depends.”

But, as a rule of thumb, the new data reported by the WSJ says to book early, not on a Friday — and use digital tools to help you get the best prices.

If you’re a paying subscriber of The Wall Street Journal and want to read the full article, click here.

Your Turn: When’s your next trip? Have you booked your flights yet?

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 Want to Get Cheap Flights? Whatever You Do, Don’t Buy Tickets on This Day appeared first on The Penny Hoarder.

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Stop Running Out of Toilet Paper. This Service Delivers AND Gives You 15% Off

Do you find yourself running out of the same things around the same time each month? Always searching for one more bar of soap or roll of toilet paper at the most inopportune time?

Well, Amazon has an answer to that dilemma — and it includes savings.

The Amazon Subscribe & Save service can help make sure you always have the basics on hand — AND help you save money.

How Subscribe & Save Works

When you sign up for Subscribe & Save, you’ll save up to 15% on your order, plus get free shipping. Just select the quantity of each item and your preferred delivery schedule.

To qualify for the discount, you have to subscribe for five or more monthly “subscription items” to be delivered on the same day. But it’s pretty easy to come up with five things you need on a monthly basis, from kitchen basics to household goods and toiletries.

And you don’t have to order things every month — you select which items you’d like to receive at which intervals, from once a month to once every six months.

If you run out early, you can also click “Need more right away” and receive an extra delivery, but you’ll want to avoid doing this — it’s technically just a regular Amazon order without the Subscribe & Save discount or free shipping.

Is Amazon Subscribe & Save Worth It?

Trent Hamm at The Simple Dollar compared Subscribe & Save prices with those at warehouse clubs and concluded that using the service did save money and time.

“Overall, I saved money, but on occasion, I would see local sales that would trump the value of the ‘schedule and save’ system,” Hamm reports.

“I would have saved money waiting for those sales. On the other hand, watching for those sales takes time, as you have to watch flyers every week to catch those sales.”

Your Turn: Have you tried Subscribe & Save? What did you think, and did it help you save money?

Disclosure: Some of the links in this post are affiliate links. We would have shared them with you anyway, but a true “penny hoarder” would be a fool not to take the company’s money.

Kristen Pope is a freelance writer and editor in Jackson Hole, Wyoming.

The post Stop Running Out of Toilet Paper. This Service Delivers AND Gives You 15% Off appeared first on The Penny Hoarder.

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5 Money-Saving Tips When Upgrading Your Phone

Smartphones aren't user-friendly when it comes to cost.


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Best Bank Stocks to Buy in 2016

An increase in interest rates could be a windfall for U.S. banking stocks.

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More Millennials Are Living at Home – and That’s Not a Bad Thing

A recent article over at Elite Daily, titled “Nearly Half of All 25-Year-Olds Are Living at Home With Their Parents,” starts like this:

Think your life is a mess because you’re 25 years old and still living at your parents’ house? Don’t worry; according to statistics, nearly half of people your age are complete messes, too.

Translation: “If you’re 25 and you live at home, your existence is deprived and pointless. You’ve probably given up on life or committed a heinous crime. Likely both.”

The rest of the article goes on to not-so-subtly shame those who live with their parents (or other older family members, but I’ll say parents from here on for simplicity’s sake).

“Harder,” “dismal,” “insane,” “not a chance in hell,” “out of reach,” “sad,” and “complete mess” are just a few of the words and phrases used to describe the plight of millennials who either never left home or were forced to move back.

The author of the piece points out that student loan debt, a lackluster job market, and expensive housing are conspiring to keep millennials at home. And while it’s true that hardships are a reason people live with their parents, they aren’t the only reason. The article does a disservice to those who live at home, or are considering it, in its failure to point out any of the benefits.

A perusal of the article will leave you thinking Elite Daily reprinted a section of Cormac McCarthy’s “The Road,” in which a father and son try to survive in a dreary, post-apocalyptic, jobless future. While living at home presents challenges, I’d argue that it’s a whole lot better then the media often make it out to be.

I lived at home every summer from 2005 to 2011, and then for a full year during 2012. Looking back, there were far more positives than negatives. Here were the main benefits, from my perspective:

Free Rent

The median price of a one-bedroom apartment in Los Angeles, my hometown, is currently $1,800 per month. Prorated for a three-month summer stay, that is $5,400 per summer. So I saved as much as $32,000 during my summer stays and $21,600 in the year I spent at home in 2012.

That’s a total of over $50,000. Those costs would be lower if I had lived with roommates or bought a studio, but the point is: I still saved thousands of dollars.

That’s “fully stock your emergency fund” kind of money. That’s “retire early if you invest properly” kind of money. That’s “rounds of drinks on you every time you go out” kind of money!

Wait, don’t do that last one unless you plan on never moving out.

But that kind of money can be instrumental in getting your career off the ground. If you’re looking to start your own business or build up an emergency fund, living at home to supercharge your savings is not pathetic, it’s smart.

No, it’s not a trendy studio downtown, but living for a stretch in your childhood bedroom can help you supercharge your savings. Photo: Connie Ma

This mentality also makes sense if you’re simply trying to save up to be able to afford your own place. Sure, San Francisco, the city Elite Daily goes to great lengths to single out as being particularly unaffordable, is expensive. But that means we should cut people even more slack if they want to live cheaply for as long as possible before signing their own lease.

Furthermore, San Francisco is just one 47-square-mile city with 837,000 people. There’s a vast country out there with a great variety of more affordable housing options. The main study cited in the article even points out that people in Alabama are able to move out faster because housing is affordable in that state.

There is currently no mandate that I’m aware of forcing millennials to live in San Francisco or New York City, even though it feels like that sometimes. If you really want to move out, it could be a good idea to start looking into lower-cost-of-living areas.

• Related: I Left the Coast for a Cheaper, Simpler Life in the Midwest – and You Can, Too

Free Motivation

There were more than a few times that living at home gave me a much-needed perspective on what it means to be a responsible, hard-working adult.

This was especially true after I finished up my professional basketball career in 2012 and moved back home to contemplate what to do next. I felt a sense of existential angst. I didn’t know what I wanted to do.

This led me to be a little lethargic. I would wake up late, scroll through some job listings, watch some TV, think about sprucing up my resume, walk the dog, watch some more TV, and before I knew it my parents would both be getting home from work.

As soon as I saw one of their cars pull into the driveway, I would hop up, quickly change to my least-smelly shirt, open my computer, and pretend to be doing something important. My parents both worked long and hard. The thought of them seeing me in my pajamas watching “The Simpsons” at 5 p.m. horrified me. They’d come in the front door and we’d have an interaction like this:

Mom: “Hey honey, what’d you do all day?”

Me: “I WALKED THE DOG SOME PEOPLE PAY FOR THAT I’M BASICALLY SAVING YOU MONEY BY BEING HERE I’M BEING PRODUCTIVE I SWEAR.”

My defensiveness wasn’t fooling anyone, but my parents never called me out on it.

They didn’t have to say anything about how I should be doing more to try to find employment. Their discipline and work ethic spoke louder than words. After a while, I started following their example and tackled my job hunt with much more professionalism.

It can be difficult to find a decent job, and I was grateful that living at home provided me with a safe place to take my time and figure things out. I took a free internship, followed by a job I was overqualified for, and then bided my time until something better popped up. Only then did I move out.

Free Change of Perspective

When I realized I was going to be living at home for a year or more, I was a little disappointed. I bought into the idea that only failures and Europeans lived at home in their mid-20s. But, after a while, I was able to shift from dwelling on my perceived inadequacy to appreciating an opportunity. I had free home cooking, constant companionship, an awesome dog, and a basketball hoop in my front yard. Life wasn’t so bad.

And rather than feel like I was joining some exclusive club of losers, I felt strengthened by the fact that many of my peers were in the same situation. I knew I was in a transitional phase. Many people before me had been here, many after me will do the same. It’s better to accept the reality and work with it than to moan about how life is hard.

Finally, living at home also helped to solidify the idea that I didn’t need much to be happy. If I had a small room, the Internet, and food, I was set.

Summing Up

I don’t regret living at home when I was 25. It was the best thing for me to do at the time. The only real downside was that it can make dating a little tricky, but even that’s not impossible. If you own your situation and exude confidence, rather than trying to hide something, most people are completely accepting. You’ll find sane people don’t limit themselves to dating homeowners in San Francisco.

I like to imagine a future in which there is no stigma for living cheaply with family or friends while you figure out your next move. Promoting a dogma of shaming those who live at home will only make people more likely to overextend themselves while trying to live up to unrealistic expectations. This can cause serious financial consequences.

Also, the article never mentions the idea that living at home, surrounded by family, can be a fulfilling experience. Never again will you be in such constant contact with the people closest to you.

I found living at home also meant much more interactions with cousins, aunts, uncles, and close family friends. These people will be a little harder to make time for once you’re living on your own. Savoring those experiences allows you to feel how lucky and loved you truly are, no matter what sort of peer pressure you’re facing.

Twenty-somethings need to start seeing the idea of living at home as a tool, not a hindrance. And let’s please stop whining about our plight. The son in “The Road” doesn’t complain about having to live at home with his dad, and he’s being harassed day and night by murderous marauders. We could all learn from that example.

• Related: 10 Ways These Real Millennials Are Saving Money, Even in Big Cities

The post More Millennials Are Living at Home – and That’s Not a Bad Thing appeared first on The Simple Dollar.

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10 Ways to Save $600 a Year on Cable Without Giving Up Your Favorite Shows

With the average cost of cable running around $600 a year (according to this savings calculator from Slate), it’s no surprise that more and more people are making the decision to cut the cord and get their TV fixes elsewhere.

But can you really still watch all the shows you love without paying the price of a hefty cable package?

Yes, you can. Here’s how to watch TV without cable.

1. Search for Your Favorite Shows with the Yidio App

Yidio is a free app that helps “cord-cutters” search for places to watch TV and movies.

It takes a few seconds to download the free app (link to iOS download, link to Android download), and then you can use the search feature to find a provider for over 1 million TV shows and movies.

For example, if I want to watch The West Wing, Yidio tells me I can watch it on Netflix.

But, if I want to watch Modern Family, it points me to a page hidden on ABC, where I can watch all of the latest episodes for free. Pretty cool.

2. Major Network Websites

You can view videos of full episodes of many of your favorite TV shows for free on network websites.

Broadcast channels like ABC, CBS and NBC offer a wide range of on-demand episodes, as do premium channels like TLC, TBS and HGTV. Just head to your favorite network’s website to check out what’s available.

Cost: Free

3. CBS All Access

Check out more than 6,500 episodes of CBS shows with CBS All Access live-streaming. Available for your PC or mobile device, it also gives you access to live TV and special features like the Big Brother live feed.

Cost: Free one-week trial; $5.99 a month after that

4. Netflix

Commercial-free and available on a number of platforms, Netflix has one of the largest libraries of shows and movies available for live-streaming.

It releases whole seasons of shows at once, which is great for binge-watching but not so great if you want to be up-to-date on your favorite shows so you can discuss them with your friends — you’ll have to wait for the latest season to end before you’re able to watch it on Netflix.

Netflix has also been a pioneer in original content, offering its subscribers exclusive access to hit shows like Orange is the New Black and House of Cards.

Cost: $7.99 a month (or free with this nifty trick)

5. Hulu and Hulu Plus

You can watch a variety of popular shows on the free version of Hulu the day after they air, but you’ll only be able to access the five most recent episodes.

Upgrade to Hulu Plus and you’ll be able to see all episodes of a series, including past seasons of currently running shows like Modern Family as well as classic shows like The Twilight Zone. (Unfortunately, you’ll have to sit through ads whether you use the free or the paid version.)

Hulu is also trying to get into the original content game, with a limited number of exclusive series like Behind the Mask and Difficult People.

Cost: Free for Hulu; $7.99 a month for Hulu Plus

6. Sling TV

One major complaint about alternative TV services is they typically don’t offer much for sports fans. Sling TV by Dish Network is one solution, offering live access to 20 premium channels including ESPN, Adult Swim and AMC as well as add-on packages that give you additional channels based on your interests.

That said, it’s live access; there’s no option to record a show you want to watch later. Sling does offer a replay period during which you can view shows that aired within the past three days on certain channels, and certain channels allow you rewind a show you’re already watching — but ESPN is not one of those channels, so if you want to catch the big touchdown that happened while you were in the kitchen, you’ll have to hope they show a replay.

Cost: $20 a month for the basic “Best of TV” package; add-ons available from $5 a month (for Sports Extra, Kids Extra, etc.) to $15 a month (for HBO)

7. HBO Now

If you’re addicted to HBO shows like Game of Thrones and Girls, you’ll find they’re not available on other streaming services.

If you want to watch them without renting them when they come out on DVD, you’ll want to get HBO Now. It’s available for most devices — tablets, laptops, phones and desktops, but not video game consoles — and offers a month-long free trial (which means you can watch a whole ‘lotta GoT for free if you’re a binger).

Cost: Free 30-day trial; $14.99 a month after that

8. Amazon Prime Instant Video

Amazon Prime’s Instant Video feature gives you streaming access to a number of popular TV series and movies.

The list is by no means exhaustive, and you’ll find it doesn’t have the most recent seasons of currently running programs, but you do have the option to buy a season pass (which typically ranges from $10-$20) or pay per episode (around $1.99-$3.99) to view additional shows.

If you already buy a ton of stuff from Amazon and can benefit from the free two-day shipping that comes along with Amazon Prime, it’s certainly an option worth considering.

Cost: $99 a year (which breaks down to $8.25 a month)

9. HDTV Antenna

Go old-school and hook your TV up to an HDTV antenna to get basic broadcast channels with a high-quality picture. Add a TiVo or other DVR device, and you’ll be able to record shows to view them later.

Find out which channels are available in your area and the best antenna for your needs at AntennaWeb.

Cost: $15 and up

10. The Library

Go really old-school by checking out the offerings at your local public library.

I did a search of my nearby branch and was surprised to find DVDs of everything from I Love Lucy to The Brady Bunch to Malcolm in the Middle. It’s not enough to satisfy the diehard TV fanatic, but if you’re looking for a cheap way to pass a rainy day, you certainly can’t beat the price.

Your Turn: Do you use any of these TV alternatives, by themselves or in combination? What do you like (or dislike) about them?

Disclosure: We have a serious Taco Bell addiction around here. The affiliate links in this post help us order off the dollar menu. Thanks for your support!

Kelly Gurnett is a freelance blogger, writer and editor who runs the blog Cordelia Calls It Quits, where she documents her attempts to rid her life of the things that don’t matter and focus more on the things that do. Follow her on Twitter @CordeliaCallsIt.

The post 10 Ways to Save $600 a Year on Cable Without Giving Up Your Favorite Shows appeared first on The Penny Hoarder.

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Rock Your Holiday Parties: Here’s How to Rent Designer Dresses for 90% Off

December is typically filled with parties — and as a bonafide extrovert, I couldn’t be happier about it.

The only thing that comes between me and my party-happy mode? My limited wardrobe.

Since I’ve moved almost every six months for seven years, I don’t have a lot of clothes. Plus, a lot of that time was spent in the mountains, so I definitely don’t have a lot of dresses. I also don’t want to spend money on poorly made dresses I’ll only wear a few times.

It’s okay, though, because I have a secret weapon — Rent the Runway. It’s a website that lets you rent designer dresses at a fraction of their cost. (Think: a $725 dress for $40.)

Though I think membership is valuable anytime, it’s particularly great during holiday party season.

Here’s what you need to know…

Why Rent the Runway is My Secret Weapon for Holiday Dresses

On Rent the Runway (RTR), you can rent thousands of dresses from more than 350 designers.

Here are four reasons it’s become my go-to for all my formalwear needs:

You Can Quickly Filter Results

RTR’s powerful search function allows you to only search dresses you can afford. I usually set the max price to $40 (for a four-day rental) and still get plenty of results.

You can further filter your results with 11 different categories, including formality, occasion, length, body type, etc.

This is perfect for people like me who hate both shopping and making decisions. You can refine your selection down to only a limited number of dresses.

The Reviews are Super Helpful

You can sort reviews and photos by body size, so you can see the dresses on people who actually look like you — not some 5-foot-10-inch, 100-pound model.

And just in case you get your size wrong, RTR sends you a free backup size with each order.

Shipping and Insurance are Easy

Renting a dress costs $9.95 for shipping both ways, plus $5 for insurance for stains and tears.

Or, if you’re a PRO member like me, which costs $29.95 per year, your shipping and insurance are always free. With PRO membership, you also get a $50 rental credit during your birthday month.

It Offers a “Love Your Look Promise”

In my two years using the site, I’ve experienced nothing but amazing customer service. RTR reps quickly respond eager to help; if you don’t like your dress, for example, they send you another style at no extra cost.

Though renting a dress for $40 may sound expensive when compared to buying a $20 dress off the sale rack, keep in mind: These are designer dresses.

Most of the dresses I’ve rented are worth $300 to $600 or more — and fit beautifully. To me, it’s absolutely been worth it.

Want to learn more? Click here and use code FIRSTRTR20P to get 20% off your first order!

Your Turn: Have you ever used Rent the Runway?

Disclosure: Some of the links in this post are affiliate links. We would have shared them with you anyway, but a true “penny hoarder” would be a fool not to take the company’s money.

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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Should You Save or Splurge That Bonus Check?

It's the time of year when bonus checks are landing in mailboxes. Here's what to do with your windfall. 

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39 Brilliant Ways to Earn More Points and Cash Back From Your Rewards Credit Cards

Two months after I got my Citi ThankYou Premier card, I used the points to pay for two plane tickets to Colorado and a car rental. I earned about 5,000 points from purchases, but most of the $675 reward was from the 50,000-point sign-up bonus.

The catch: You have to spend $3,000 within three months to get the bonus. That can be difficult, even if you use the card every day.

Plus, what if you also have other cards you want to use?

For example, you might want to keep using your Discover Card for the 5% cash-back bonus categories. You don’t want to pass up the 5% cash back you get at office supply stores with your Chase Ink Cash card, either.

Plus, you might only have a few weeks left to hit the sign-up bonus spending requirement for another card — I had three with deadlines.

How do you get all those points and cash back, and still meet your spending requirements for sign-up bonuses?

These 39 strategies to get more points and cash back include everything from using a credit cards to pay rent and income taxes to creating points with “manufactured spending.”

1. Use the Right Card

The simplest way to earn points and cash back is using credit cards to pay for everything.

But be sure to use the right card for each purchase to maximize what you earn.

For example, if you have an American Express Blue Cash Everyday® Card (I just got mine), you get 3% cash back in supermarkets. If another card pays double or triple points at gas stations, fill your tank with it.

Label your cards with stickers to keep track of what to use where.

2. Choose the Right Redemption Option

Many cards offer more value for your points if you redeem them in certain ways.

For example, I just redeemed $208 cash back on my SunTrust Visa account. I redeemed the points for checking account credit at the same bank and got an extra 10% — or $20.80.

Many travel cards offer discounts for travel expenses if you use your points to book through their program.

When I redeemed 55,000 Citibank ThankYou points for flights and a car rental, I got 1.25 cents per point instead of the 1 cent I would have received redeeming them for gift cards or other rewards. That’s an extra $137.50!

3. Transfer Unused Points

Transfer unused points into other accounts or programs and turn them into rewards.

I have about 54,000 Marriott Rewards points, mostly from a credit card sign-up offer. I’ve been having a hard time spending them on free hotel nights. But Marriott’s RewardsPlus program lets me convert them into United MileagePlus miles, redeemable toward flights.

You can often combine points if you have several cards from the same issuer. If you only have a few thousand ThankYou points on each of your Citibank cards, transfer them to one card. It could get you the minimum needed to earn a gift card or other reward.

4. Complain

If you have a problem with a rewards program or the rewards — say something.

On one of our free Hyatt nights in Miami (paid for with credit card points), we found something disgusting near the hot tub.

We mentioned it during checkout, the hotel desk clerk apologized and added 6,000 points to our account.

It might not always work, but it’s worth a try.

5. Use Your Amex Offers

Login to your American Express account and look over the “Amex Offers” at the bottom of the page. These rewards are for certain purchases, in addition to the points you regularly earn.

Just click “Add to Card” to use an offer. A recent offer gave me a $15 statement credit for spending more than $15 on Amazon.com.

You can sometimes double up on offers, if you have more than one American Express card, although each card may also have unique offers.

For example, I used each of my three Amex cards to spend $10 on a Home Depot gift card, and got $10 cash back for each one. Net profit: $30.

6. Use a Credit Card to Pay Utility Bills

You can pay most utility bills with a credit card, though sometimes there’s a “convenience fee.”

But if the extra fee for charging your cable bill works out to 3%, it would still make sense to use a Chase Ink Cash card, which pays 5% cash back on Internet and cable service charges.

It also makes sense to pay the fee if you need to spend more on a card to earn a sign-up bonus. Why worry about a $5 fee if the charge completes your spending requirement to earn a $200 bonus?

If there’s no extra charge, always pay with a rewards credit card to get points or cash back.

7. Pay Ahead on Your Bills

If you’re facing a spending requirement deadline, try paying ahead on your bills to put more charges on the card now.

I’ve done this with my water bill several times — fortunately there’s no convenience fee in my city!

8. Buy Discounted Gift Cards to Pay for Regular Expenses

Buy discounted gift cards online to quickly rack up credit card points. The gift cards are either unused or have partial remaining balances. This strategy saves you money and helps you earn credit card points.

A 20% discount is common for Applebee’s gift cards, so a $40 gift card might cost about $32. Buy the digital version and print it out if you’re headed there for dinner. You’ll save $8 and earn credit card points or cash back.

Buy more gift cards for places you’re sure to shop.

I recently bought $200 worth of Walmart gift cards for $193 (Walmart cards have one of the lowest discounts). The charge helped me meet a spending requirement for a bonus that will cover two Southwest Airlines tickets.

Using $200 in Walmart cards will be easy — that’s a couple of weeks’ worth of groceries or part of my holiday shopping.

Check sites like Raise, Gift Card Granny or Cardpool to find discounted gift cards.

9. Buy Gift Cards on Sale Locally

Gift cards sometimes go on sale in local stores, another opportunity to save money and earn credit card rewards.

Our local Dollar General recently had several gift cards on sale for 15% off. I bought $20 gift cards for Domino’s, Olive Garden and Subway — all of which we frequent. I saved $9 total and got 2% cash back.

10. Buy Gift Cards to Earn 5% or 10% Cash Back

Suppose your card’s 5% cash-back categories are “office supplies” and “home improvement,” but you want cash back on gas.

Just find a Home Depot or Staples store that sells gift cards for gas stations — most do.

I recently bought $300 in Shell gift cards at a Home Depot to earn 5% back — and the cash back is doubled the first year on my Discover card, making it 10% total.

11. Make Your Mortgage Payment

Make mortgage payments with your credit card through ChargeSmart and other services. Fees vary, but always are displayed before you complete the transaction.

Decide for yourself if it makes sense to pay the fee to earn points or meet spending requirements.

12. Make Your Car Payments

ChargeSmart also allows you to make car payments with a credit card. To reduce the fee, make a partial payment using the card and pay the rest by check.

13. Buy a Car Using a Credit Card

Last year, my wife and I bought a used car with a credit card. We had the money in the bank, but the dealer didn’t charge anything extra to put the car on my Hyatt card — so why not?

I got enough points in one purchase for a free night at a Hyatt hotel and paid the full balance as soon as I got the credit card statement.

14. Charge Your Rent Payment

You can pay rent with a credit card through several companies — RentShare even lets you split a payment between roommates. If a landlord doesn’t want to sign up for direct deposits from these services, they’ll send a check.

A typical fee is almost 3% of the payment, but it makes sense if you need to meet a large spending requirement for a credit card bonus.

Suppose you need to charge another $700 in the next week to earn a $200 sign-up bonus, and you owe $800 for rent. Charge the rent payment for a fee of $22 (2.75%) and get $8 cash back (1%) — $14 is your net cost to meet that requirement and get a $200 bonus.

15. Pay Your Income Taxes

The IRS actually has a list of approved payment processors to pay income taxes with a credit card.

The cheapest ones charge 1.87% of the amount, so you might even make a little extra if you have a 2% cash-back card. It’s another good way to meet large spending requirements to earn credit card sign-up bonuses.

16. Pay Your Property Taxes

Official Payments lets you pay property taxes using a credit card, but it doesn’t work everywhere.

Fees vary, but there’s a calculator that allows you to check availability and cost in advance. Some localities have their own credit card payment processing service, possibly with a lower fee. For example, here in Sarasota County, Florida, the fee is 2.45%.

17. Pay Insurance Bills

Homeowner’s insurance and auto insurance typically cost hundreds of dollars. Paying them with your credit cards is a great way to pile up points or meet spending requirements.

18. Pay Other Bills

Pay any and all bills with a rewards-earning credit card if you can, unless you’re charged extra fees.

It may be smart to pay a small fee if the charge helps you complete a minimum spending requirement for a sign-up bonus.

19. Send Money Internationally

Several services let you send money to friends or family overseas with your credit card.

Xoom, which is owned by PayPal, lets you send $600 to Mexico for a $15.99 fee — or 2.7%. That’s probably more than the value of any points or cash back you’ll earn, but it’s another way to meet sign-up bonus spending requirements.

20. Charge Your College Tuition

Some payment processors let you pay tuition using a credit card. Plastiq charges a 2.5% fee for the service, and promises to cover any late fees if they don’t get it done on time.

21. Pay Student Loans Using a Credit Card

Some lenders allow student loan payments by credit card — for a fee.

It may be worth paying the fee to meet a spending requirement, but only if you normally pay the card off in full when the statement arrives to avoid interest. Credit card interest rates are typically higher than student loan rates.

22. Pay Child Support

Many states accept child support payments through services like GovPayNet. You’ll have to pay a fee, and “child support” probably won’t show up as a category on any of your 5% cash-back bonus cards, so this may not be the best way to get cash back. However, it could help you meet a spending requirement.

23. Make Church Offerings by Credit Card

Many churches accept credit card offerings.

Swiping your card in the pew is one option, and some churches let you set up online credit card tithing.

24. Charge for Charity

Most nonprofit organizations accept credit card donations. You’ll earn points or cash back, but remember the charity pays a processing fee. It will keep less of your money than if you donated by check or cash.

25. Buy Debit Gift Cards for Everyday Use

I shop at Aldi, where they don’t accept credit cards. They do accept debit cards — so I use a credit card to buy debit gift cards, which I then use at Aldi.

Worth it? Do the math.

I buy Visa gift cards at Staples using one of two cards that give me 5% cash back at office supply stores. The fee for a $200 card is $6.95 and I get $10.35 cash back on the total of $206.95.

A $3.40 profit isn’t much, but I don’t like to carry much cash (the only other way to pay at Aldi).

Then there is this related strategy…

26. Take Advantage of Debit Gift Card Promotions

Both OfficeMax and Staples regularly run sales on debit gift cards.

Recent promotions I’ve taken advantage of included $15 off $300 in Visa Debit cards at OfficeMax, and a $20 gift card for buying two $200 MasterCard debit cards at Staples. I made $26.79 after fees using a $5 cash back card at Staples.

Some reports say Citibank cards sometimes treat debit card purchases as cash advances. Avoid using these cards for this strategy, since you might have to pay additional fees.

27. Buy PayPal Reload Cards

You can often buy PayPal My Cash cards with a credit card (it’s up to the vendor).

I’ve bought them this way several times at CVS. The fee is $3.95, and you can load them with up to $500, which you then add to your online PayPal account.

Even a 1% cash-back card puts you ahead when you buy a $500 reload. But the real value is you have an easy way to meet spending requirements for sign-up bonuses.

Warning: There is a limit of $4,000 per month, and there are reports that PayPal may suspend or close your account if you do this too often.

28. Stock Up on Non-Perishables

Need those credit card points soon to get a free flight? Or maybe grocery stores are about to be rotated off the quarterly 5% cash-back bonus categories.

Buy non-perishable goods to get charges onto that card right now. Canned food is good for years, and paper goods last even longer, so buy these items on sale now to get your points and cash back.

But be sure you haven’t already passed the maximum qualifying amount. For example, Discover only pays 5% back on up to $1,500 in bonus category purchases per quarter.

29. Buy Amazon Gift Cards

If you do a lot of Amazon shopping and need to pile up some credit card points fast or meet a spending requirement, buy Amazon gift cards.

There are no fees, they never expire and shipping is free even if you get the physical cards.

30. Add a User to Your Card

If your spouse is still pulling out cash to pay for purchases, add him or her as a user on your credit card.

One of the best reasons to use a credit card instead of cash is the rewards you get. When you double your spending, you double your points or cash back!

31. Pay for Collective Meals

The next time you’re dining with friends and splitting up the check, collect everyone’s cash and charge the full bill to your best credit card.

(That’s the one that pays at least 2% back at restaurants.)

32. Shop With Friends Who Use Cash

If you have a friend who shops with cash, pay with your credit card and have them give you the cash.

Explain the advantages of the purchase protection that comes with the card (if you have that). Plus, you get the points or cash back.

33. Make a Microloan

Zero to Travel’s Jason Moore suggests making loans on Kiva to help people in other parts of the world — and earn credit card points and sign-up bonuses.

Of course, defaults can happen, so don’t loan what you can’t afford to lose.

34. Fund New Bank Accounts Using a Credit Card

I made more than $1,000 in bank account sign-up bonuses this year, and sometimes funded the new accounts with a credit card.

In other words, I earned points and cash back just for putting money in the bank. Doctor Of Credit has a list of banks where you can try this strategy for yourself.

35. Use Point Promotions

Credit card companies sometimes offer extra point promotions.

My Frontier Airlines MasterCard just offered me 1,000 points to sign up for two recurring bill payments. I’ll probably put my water and cable bills on the card to earn the bonus, and I’ll still get the regular point-per-dollar for the charges.

36. Try Manufactured Spending

If you love to beat credit card companies at their own game — and collect some nice rewards along the way — try manufactured spending.

It’s a tricky game: Use credit cards to buy cash equivalents you can “liquidate” (turn back into cash).

While you can’t load Bluebird and similar accounts directly with your credit card, you can use debit gift cards, then transfer the money back to your checking account.

Buy those debit gift cards with credit cards that offer rewards worth more than the costs you’ll incur.

37. Get a Discover Card

Discover will double all of your cash-back rewards after your first year as a cardholder, which puts it in a class of its own.

It’ll even double the rewards from the 5% categories, so you can get a total of 10% back on those purchases.

38. Get a Sign-Up Bonus

Signing up for a new card is the quickest way to get credit card rewards. I made over $2,000 in sign-up bonuses this year.

Consider this: To earn $500 on a 1% cash-back card, you would have to spend $50,000.

But if you spend just $4,000 on a newly approved Chase Sapphire Preferred® Card, you get a sign-up bonus of 50,000 points plus at least 4,000 points for the purchases.

That 54,000 points is enough to cover $670 in travel expenses.

39. Use Credit Cards for Everything Else

Buying a 69-cent soda at the gas station? Charge it to your rewards card!

Then again, what other kind would you have? Even if you don’t want to pay an annual fee, you can still get a great cash-rewards card, like the Barclaycard CashForward World Mastercard, which helps you earn 1.5% on all purchases.

Unless you have trouble handling credit (some people do), why not get in the habit of paying with a credit card and earning points or cash rewards on everything?

Your Turn: How do you get credit card points and cash back?

Disclosure: We have a serious Taco Bell addiction around here. The affiliate links in this post help us order off the dollar menu. Thanks for your support!

Steve Gillman is the author of “101 Weird Ways to Make Money” and creator of EveryWayToMakeMoney.com. He’s been a repo-man, walking stick carver, search engine evaluator, house flipper, tram driver, process server, mock juror and roulette croupier, but of more than 100 ways he has made money, writing is his favorite (so far).

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The Best Affordable SUVs

SUVs have gotten incredibly popular over the past two decades, and that trend looks set to continue — especially as gas prices have fallen in the past two years. Just about every major car brand on the market has come out with an SUV, and their large cargo areas, third-row seating options in many models, and overall roomier interiors have made them favorites of many American commuters and families.

Of course, because SUVs are large, they usually come with a high price. However, there are many ways to be smart about your SUV purchase and choose a great car that will serve you well for many years. Below we’ve included nine highly rated, safe, and affordable SUVs categorized by size: compact, midsize, and large. Later, we’ll look at tips to save money on any car or SUV purchase.

Affordable Compact SUVs

Compact SUVs are just like they sound: bigger than a sedan but smaller than some of the larger SUVs on the market. Compact SUVs can run anywhere from $17,000 new to around $80,000 for the most expensive Porsche compact SUV; we’ll focus on compact SUVs that are under $25,000 new. These SUVs range from 2015-16 cars, have great ratings and, of course, if you want to get a better deal on the price, purchase a compact SUV that is one to two years old for a big savings.

2016 Hyundai Tucson

• Cost: $22,700
• MPG: 23 city/31 highway

The 2016 Hyundai Tucson received an 8.7 overall rating by U.S. News and World Report, and an even more impressive perfect safety rating of 10. Last year’s model also ranked highest overall among small SUVs in J.D. Powers 2015 Initial Quality Study.

The base model is very affordable for the category, and comes equipped with a lot of standard features. However, what I like about this car is that, depending on your budget, you can opt for even more luxurious upgrades that aren’t too outrageous. The most decked-out version of this car is $31,300 for all-wheel drive, heated back seats, and a few other upgrades.

2015 GMC Terrain

• Cost: $24,070
• MPG: 22 city/32 highway

The GMC Terrain has more cargo room than the Hyundai Tucson, but it’s still a compact SUV. I really like the boxy, square design of this car. It looks far more luxurious than its $24,070 price tag. U.S. News gives it an overall ranking of 8.5 and a safety ranking of 9.4.

2015 Honda CRV

• Cost: $23,445
• MPG: 27 city/34 highway

Rounding out our favorite affordable compact SUVs is the Honda CRV. I drove a 1995 Honda CRV when I lived abroad, and it was a great little car. The CRV’s design has of course changed multiple times since then, and now it has a sleeker, curvier look, with admirable gas mileage for a non-hybrid SUV to boot.

U.S. News named the 2015 CRV the ‘Best Compact SUV for the Money,’ and its overall ranking of 8.5 and a safety ranking of 9.3 make it a great bet for individuals and families alike.

Affordable Midsize SUVs

I drive a midsize SUV. It’s a very high-mileage Volvo XC90 that’s only worth about $5,000. It’s a great car, but because it’s so expensive brand new, it’s not included on this list. What we have included are midsize SUVs that you can buy new (or preferably one to two years old) for under $30,000. With so many midsize SUVs clocking in at $50,000 and above, these options are great for a family who wants a bit more room when they drive without paying a huge sticker price.

2015 Nissan Murano

• Cost: $29,560
• MPG: 21 city/28 highway

Nissan bills its Murano as “the most social car” they’ve ever designed. It has some great technology built into the car, a wonderful sound system, and an overall beautiful, spacious design. Nissan’s vehicles are known for their affordable longevity, and its popular midsize crossover SUV strikes a nice balance between roomy and sporty. U.S. News gives it an overall rating of 8.7 and a safety rating of 9.3.

2016 Kia Sorento

• Cost: $24,900
• MPG: 21 city/29 highway

Kia has always been known as an affordable car brand, but they’ve really stepped up their game in terms of design since being acquired by Hyundai several years ago. The 2016 Kia Sorento is absolutely beautiful, and with a safety rating of 9.7 and an overall rating of 8.5 it’s a serious contender against some of the more luxurious brands in this category — at a price that’s hard to beat.

2015 Toyota Highlander

• Cost: $29,765
• MPG: 20 city/25 highway

While the Toyota Highlander is classified as a midsize SUV by U.S. News, it actually has room for eight passengers. So you can use the cargo space for your groceries or gear, or you can pile in more people in for a fun adventure.

The Highlander gets an 8.6 rating and a 9.0 safety rating from U.S. News, and even with the spacious interior and great features, it still comes in at under $30,000 for the base model.

Affordable Large SUVS

This last category includes large SUVs that are under $40,000. While this is certainly a lot of money to pay for a car, the most expensive luxury SUV can cost as much as $200,000 for a Range Rover, for example, or over $100,000 for a Mercedes Benz SUV or a Land Rover. Since those types of vehicles are out of range for most of us, it’s helpful to know there are large, roomier vehicles available for those with more modest budgets.

2015 Buick Enclave

• Cost: $39,050
• MPG: 17 city/24 highway

Buick has really transformed their brand over the past few years, and it shows. They’ve been trying hard to shed their reputation as “the car that old people drive,” and they don’t have to worry — because their 2015 Buick Enclave is a gorgeous luxury SUV for under $40,000, with a high safety rating of 9.7 and overall rating of 8.4.

I especially like the fact that the second row has captain’s chairs. This will be a strong contender for my next vehicle once my 225,000-mile Volvo decides to die once and for all.

2015 Dodge Durango

• Cost: $30,495
• MPG: 18 city/25 highway

The 2015 Dodge Durango is definitely a large vehicle — great if you have a bunch of kids or a lot of work equipment or outdoor gear to lug around. U.S. News gives it an overall rating of 8.3 and a safety rating of 8.8 — not as high as the other vehicles on this list. However, it has more technology options than some other comparable vehicles, so it’s definitely worth a look and a test drive depending on what your priorities are when it comes to an SUV.

2016 Chevy Traverse

• Cost: $31,205
• MPG: 17 city/24 highway

U.S. News calls the Chevrolet Traverse a large SUV, while Chevy itself classifies it as a midsize SUV — so it definitely straddles the two categories. Suffice to say, it’s very roomy, high quality, and has a large cargo area. It also has a high safety rating of 9.4, making it great for families with young kids and babies (along with all their accompanying gear). U.S. News gives it an overall rating of 8.3.

Tips for Purchasing an Affordable SUV

No matter which SUV or crossover vehicle you buy, there are some tried-and-true ways to get an even better price on the model of your choice.

Pay in cash. I have to put this tip first because it’s by far the easiest way to get a better deal on a car. Cash is king and the best form of negotiation. Many people believe paying cash for a car is unreachable for them, but by saving just a few hundred more dollars a month or making some extra money on the side, you’ll be well on your way to saving up enough to pay for a car completely up front.

Get several loan offers. If you absolutely can’t pay cash for a car, then the next best thing is to get several quotes for a loan. Before you go to a dealership, contact your local bank or do a search online where you can compare different financing offers. That way, when you go to a car dealership, you have some negotiating power.

• Related: Best Car Loans for 2016

Focus on more than the monthly payment. People put way too much focus on their monthly payments, and this plays into the car dealer’s hand: They’ll try to fixate you on a lower monthly payment when in reality they’re charging you more for the vehicle, spread out over a longer loan period. Plus, this doesn’t take into account the possibility of going underwater on your car. If you stretch out your loan to six or seven years, you can easily owe more on your car than it’s actually worth, which can leave you in the lurch after an accident.

The best ways to lower your monthly payment without paying more in the long run are to make a larger down payment, get the lowest possible interest rate, and negotiate a lower price.

Buy used. Purchasing a used car that is only a couple of years old is one of the best ways to get more car for your money. Vehicles lose up to 20% or more of their value in the first year — buying a late-model used car means you dodge that depreciation hit and pay for the car itself, not the new-car smell.

Take your time. If you know you’ll be in the market for an SUV, it’s important to take your time. The worst time to shop for a car is when you need one ASAP — you’re in a more vulnerable negotiating position. It’s far better to research options and prices in your area, test drive a few models, and then purchase the car when you have enough money saved and are confident in your decision.

Skip the extended warranty. Car dealerships make a boatload of money on warranties. You don’t need to purchase the extended warranty. It would be cheaper to put away a small amount of money each month earmarked for car issues and fund it yourself.

Walk away if it doesn’t feel right. You may do all of the steps above and think you’re ready to buy a car, but go to buy it and sense that something just doesn’t feel right. Whether it’s a pushy salesman or you don’t absolutely love the car when you test drive it, it’s important to listen to those gut instincts. There are tons and tons of SUVs to choose from, so don’t rush the process!

Final Words

Overall, when it comes to buying an SUV, it’s important to do your homework and not to rush the decision. As stated above, paying cash and buying a used car are the easiest ways to get a great deal on an SUV and ensure it’s affordable for your family.

However, you can also research the best times to get a great deal on an SUV — typically at the end of each month or at the end of the year when dealers are trying to clear out last year’s models.

Research what a fair price is ahead of time on automotive sites such as Edmonds and Kelly’s Blue Book, and go into the dealership armed with those numbers and lots of knowledge. While you’re at it, research the fair trade-in value or resale value of your current car if you plan to put it toward the purchase.

Overall, with enough planning and thought, you should be well on your way to buying an affordable SUV whether you get a compact SUV for storing gear on a road trip or a large, luxury vehicle for your growing family.

The post The Best Affordable SUVs appeared first on The Simple Dollar.

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25 Ways to Improve Your Finances in 2016

Get on a great financial track with these tweaks to your money habits.

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Taking the First Steps Toward Saving for Retirement

It’s a pretty familiar story. A person doesn’t pay any attention to retirement savings at the start of their career, deciding usually on the spur of the moment that it’s not really something they need to do right now. Usually, it’s not even thought about as something they should do “someday” as it isn’t even considered that deeply. It’s just something that people think of as irrelevant in that moment.

Eventually, though, little things keep popping up in their life that directs their attention toward retirement savings. Maybe they’ll hear about their parents or the parents of a good friend struggling in retirement. Maybe they’ll keep reading news stories about retirement. Maybe they’ll see a Social Security benefits statement in the mail.

And, eventually, those little things add up to enough weight to flip that switch. They’ll start thinking about retirement on their own. They’ll maybe do a Google search or two and get all kinds of crazy answers.

And they’ll start to worry.

If that sounds anything like you, then you’re the exact person I’m talking to here. You’ve finally come to the realization that you might have to save for retirement and it’s frankly a bit overwhelming and scary and perhaps feels a bit unrealistic.

Let’s dig in to the most common questions people tend to have at this point, questions that many other readers have brought up over the years when at this very crossroads.

Why Do I Have to Save When My Parents Did Not?

Part of the reason that many people choose not to save for retirement is that it’s simply not something their parents had to do. Many children of baby boomers and even some children of older Generation Xers were lucky enough to have parents that had pensions given to them by their employer.

A pension is a really wonderful thing. It’s an additional benefit given by employers to their employees that guarantees them some income for life after they retire, usually based on years of service to the company.

Take my father, for instance. He worked for the same company for around thirty five years, even through some tough years in the 1980s where layoffs were frequent. His reward for that loyalty was a pension that supplements his Social Security in the form of a check that arrives every month from his old employer.

On the other hand, very few employers today offer those benefits, especially to people my age. Some government agencies offer such pensions, but aside from that, they’re awfully rare.

That’s why many people in their thirties and forties and fifties today have parents that didn’t have to save for retirement, but that same benefit doesn’t apply to them.

Why Save When Social Security Exists?

Isn’t Social Security designed to ensure that people are going to be okay in retirement? It’s a nice theory, but it doesn’t reflect reality for two big reasons.

Reason #1 – Social Security Benefits Alone Will Likely Not Support the Kind of Retirement You Want

The reason that many people’s parents have been able to have stable retirements isn’t because of Social Security. It’s because of a healthy pension (or other financial choices they’ve made). Social Security benefits alone simply aren’t enough for people to have the kind of retirement they envision.

Take a look at this Social Security calculator. Let’s say you make $40,000 a year at your peak and retire at age 65. Your benefits are going to only be $1,129 a month. That adds up to about $13,400 a year. Ouch.

Even if you hang on to age 70, your Social Security benefit is only going to be $1,658 a month which doesn’t quite add up to $20,000 a year. Again, ouch.

If you live a very careful existence, those benefits (with cost of living increases) will be able to allow you to survive and keep food on the table, but there won’t be much breathing room at all and the cost of health care will be crushing. It just doesn’t add up for most people and the lives they want to live.

Reason #2 – Social Security Will Have to Change in the Future

The long term math for Social Security is on shaky ground. Exactly how shaky depends on which reports you read, but most of them tend to agree that the whole system is going to run into some difficulty in the future, as there will be fewer people putting money in and more people taking money out.

What will that mean for you? It’s really hard to tell because it depends entirely on which way the wind is blowing when the system begins to run into trouble in a decade or two. They may increase the costs for people paying in. They may also cut benefits. It’s impossible to say for sure.

Regardless of what happens, depending on Social Security as an absolute guarantee is likely a mistake. You should make plans that allow you to survive even without Social Security.

Should I Retire At All?

This is a question that many people eventually start asking themselves.

Some people come to the conclusion that they’re simply going to keep working at their current job until they are unable to do so, foregoing any sort of “retirement golden years.” This is essentially what my mother-in-law and father-in-law are doing, as they are traveling extensively during their fifties and sixties and using their time off from work to the fullest.

Other people plan on using their retirement for another career, one that will theoretically earn at least some money to supplement their Social Security.

Even if those things describe you, having at least some money socked away for those later years will be beneficial. There’s no guarantee that you’ll have your current job then or that it will be stable when you’re in your sixties or seventies, and your employment options and income options may be limited. Retirement savings can make the difference here, even if it’s not enough to fully support your lifestyle.

What Are My Options for Saving for Retirement?

One of the big challenges for people when it comes to saving for retirement is that there are a lot of options out there. I’m going to list six common options below, ones that I often see and hear people using, but they are just six among a nearly infinite number of plans.

Option #1 – A Savings Account

I consider the option of putting money into your savings account to be the “default” option. It works to an extent in that it will keep your retirement savings very safe and at least earn a little bit of a return, but it has some really big drawbacks.

First of all, you don’t get a very good return on your money in a savings account. Savings accounts rarely pay out more than 1% these days, and those that do usually have big restrictions on them. Compare that to the 7% annual rate of return that you can get in other investments. Over time, that ends up being a very, very large difference.

Second, there isn’t any tax benefit here. Let’s say you have $100,000 in a savings account that earns 1% interest. Over the course of a year, that savings account will earn $1,000 in interest, but at the end of the year, you’re going to have to pay taxes on that interest. That might be a pretty painful thing, as you might end up paying as much as 39% of the interest away in taxes. With better retirement planning, you wouldn’t have to pay any of the gains in taxes.

The one big advantage of a savings account is that it is insured by the FDIC against the failure of your bank. You’re not going to lose that money. Still, you can get a very similar insurance against business failure in other investment options.

A savings account is better than nothing at all, of course, but it is far from your best option.

Option #2 – An Investment Advisor

The next option that many people consider is just going to an investment advisor. They’ll look up the number of their local Edward Jones office and stop in, explaining their situation to the advisor there and letting that person make the choices.

Any investment advisor worth his or her salt will likely set you up with an IRA of some kind, likely a Roth IRA. However, that’s something you can actually do for yourself without paying an investment advisor to be a middle man. (I’ll describe that more below.)

Not only that, some financial advisors (especially ones that operate on commission) have strong financial interest to guide you into certain investments, ones that might not be best for you but earn a lot of money for the investment advisor. Those investments generally aren’t bad (at least if you’re with a reputable advisor), but there are usually very similar investments out there that offer better returns.

So why would you talk to an investment advisor, then? Often, financial decisions can seem really scary and people get a sense that if they make a mis-step, they’ll end up costing themselves far more than what they would have to pay a financial advisor for. It’s comparable to having someone who knows nothing about plumbing being handed a pipe wrench and told to install some pipes. Even though the task really isn’t that hard, the perception of difficulty and the visions of the disasters that could occur is often enough to call in an expert.

Personally, I think that there’s more benefit in figuring out enough of what’s going on to just manage retirement savings yourself. It’s really not that complicated. Once you learn about some of the details of retirement savings, the decisions really aren’t that complicated.

Option #3 – Investing on My Own in Taxable Funds

Some people will simply open up a brokerage account and start putting money in there regularly.

A brokerage account is simply an account that you have with a house (like, say, Fidelity or Ameritrade) that will help you with the nuts and bolts of doing things like buying stocks and bonds. You deposit money into that account and then you’re able to use that money to do things like buy stocks and bonds and, later, to sell them to hopefully earn a profit. If you want to buy a share of stock, for example, the brokerage helps you to find someone that is selling that share and makes the trade for you. They usually charge a fee of some kind for that service.

Investments like these open the door to much higher returns than a savings account, of course. For example, the stock market tends to return an average of 7% per year over the long haul (that percentage is higher or a bit lower depending on how you count).

There are a few problems, though. One is that there are brokerage fees to deal with, which can chip into your returns. This has less of an impact on people who simply buy investments in big chunks every once in a while and sit on them, which is a very sound strategy, but if you buy frequently and sell a lot, it’s going to really hurt.

Another problem is the taxes, as discussed above with savings accounts – every dollar you make has tax consequences and it can get pretty challenging and confusing if you buy and sell a lot. If you’re saving for retirement, you should take advantage of some tax benefits that are available for people in your boat, and I’ll discuss those below.

Yet another problem is that there’s no guidance. A typical brokerage account is akin to being thrown into the deep end of the swimming pool with no life preserver. If you don’t know how to swim in there, you’re going to thrash around and make mistakes. There are a lot of investment options available – many good, some pretty poor. Most brokerage accounts do very little to help you figure out what you should be investing in. They leave that up to you to figure out and it’s easy to pick something that’s a decent investment, but maybe not the best choice for you and your situation.

Option #4 – Buying Real Estate

One of my relatives used this as his retirement plan. All through his life, he slowly bought up properties in his area and eventually retired, living off of Social Security and the rent he was charging on those properties.

He paid for the houses he purchased with cash, but many people go down this route by taking out mortgages for the properties and earning the money back through rent which goes to pay for the mortgages.

This has a couple of nice benefits. For one, you’ll be earning a return on your property without selling it provided you’re charging rent to someone using that property. For another, you’re likely to be holding onto that property at least until retirement where the taxes on that sale will have a much less painful impact (because your tax rate will be lower when you retire because your overall income is lower).

Again, one drawback of this plan is that there are no tax benefits for this plan, but compared to the other plans you really don’t need one nearly as much. It’s unlikely that you will sell the houses until you reach retirement age anyway, if ever.

Another drawback is, well, you have to manage the property yourself. That means that you’ll either be devoting some of your free time to maintaining the property (and paying for any maintenance) or paying someone to do it for you.

There are also some real expenses and risks. You’ll be paying insurance and property taxes on top of any mortgage interest, which can really devour your gains, especially if you don’t have someone renting the property.

This can work, but it works best when you can afford to take on some risk and things aren’t going to fall apart for a while if you don’t have a renter.

Option #5 – A 401(k)/403(b)/TSP Through My Workplace

Here, we get to some really good retirement options. This group of options focus on plans offered by your workplace – usually a 401(k), 403(b), or TSP, but there are other flavors. They all work roughly the same way, though.

With an account like this, you sign up through your workplace and agree to have a percentage of money taken out of your paycheck. Most of the time, that money is taken out before taxes, which means that your paycheck won’t go down as much right now but you’ll have to pay taxes on that money in retirement. Sometimes, particularly when you have a “Roth” offering, the money is taken out after taxes, which means you won’t pay any taxes on that money in retirement but that money comes straight out of your take-home pay.

This is really convenient because you just don’t have to worry about actually saving. Your employer handles the mechanism for you – once you’re signed up, there’s nothing you need to do any more.

Another benefit is that some employers offer matching funds on your contributions. I’ll make this very clear: if your employer offers matching money in your 401(k) or 403(b) or TSP, this is the best way to save for retirement. There’s nothing else that will compare to it because it’s basically fistfuls of free money in your retirement savings. Free money isn’t something that happens in life very often, so you need to grab this. Contribute at least enough to get every single drop of matching funds, period.

It’s also usually pretty easy to choose investments within this account. That’s because many such accounts usually just offer a handful of options to choose from – target retirement accounts (which are usually a really good option) and maybe a few others.

What’s the drawback? The investment options in such an account are often good but not great. They tend to not be terrible, but they are usually chosen to make some money for the company that runs the 401(k).

In general, this is far and away the best option for retirement savings as long as there is any employer matching available. If your employer offers matching, your first step is easy – go sign up for the retirement plan at work and gobble up every single drop of matching money that you can get. If they match up to 6%, contribute 6%. If they match up to 10%, contribute 10%.

Option #6 – A Roth IRA (or Traditional IRA)

But what if your employer doesn’t offer a plan, or what if they don’t offer any matching within that plan? In that case, an IRA is probably your best choice.

An IRA is kind of like an employer-sponsored plan as described above except that no employer is involved. Instead, you have to sign up with a company that offers IRAs (there are many – I personally use Vanguard) and open that account yourself. That’s a big step for some people, but it’s not actually all that tough. To get money in there, you usually have to sign up to have money taken out of your checking account and deposited into that account, which will all be set up during the account sign-up process. Then, in the future, money will be automatically moved from your checking account to the IRA on a regular basis.

There are two different kinds of IRAs. Roth IRAs are the best option for most people as they’re available for everyone making under six figures a year (and even some people a little over that, too). In a Roth IRA, you contribute money straight from your checking account, but once the money is in there, you basically never have to pay taxes on it again. You can take the money you contributed out whenever you want without paying taxes and if you wait until age 59 1/2, you can take out any money you earned in that account out without paying any taxes on it. It’s income without taxes! (The other kind of IRA is a “traditional” IRA, which is an option for people with higher incomes.)

The biggest drawback of IRAs is that there are a lot of options. Unlike a 401(k), you have to choose an investment house first (as I said earlier, I use Vanguard) and then, once you’re signed up, you usually have a ton of investment options. The easiest route for most people is to just use a target retirement fund that matches the year you hope to retire.

I Am Scared to Sign Up! What If I Make a Mistake?

The one thing that holds people back from signing up for a retirement account is the fear of making a mistake that’s going to end up costing them more in the future. Part of that fear comes from an investment industry that wants people to hire financial advisors for everything, so they try to make investing seem intimidating and scary. It’s not.

Here’s the truth: 99% of the success and failure of saving for retirement comes from how much you choose to save, not the exact place you choose to put it. That’s especially true right at the start, as you don’t have much in there to really be affected by stocks or real estate going up and down in value. You can always move things around later on. The best ticket to retirement savings success isn’t choosing the right investment or the right brokerage. It’s choosing to save as much as you possibly can.

My very simple recipe for retirement savings success is as follows. First, find out if your employer has a retirement plan available for you and, if they do, whether it offers matching on your contributions. If it does, sign up for that plan. Choose the Roth option if it is available to you as that tends to be better for taxes for those who are eligible for it. If your employer doesn’t have a matching plan, sign up for an IRA – again, preferably a Roth IRA if you’re eligible for it – at a investment house. I use Vanguard but, honestly, none of the major ones are really bad – they just tend to vary in the amount of fees and hand-holding they provide. Fidelity is definitely a good option, too. When signing up, contribute as much as you reasonably can to that account, and choose a target retirement fund that’s close to your retirement year as your investment. Then, let it sit. Every once in a while, consider contributing more than you already are if you can do so.

You pretty much can’t go wrong with that plan. If you follow it, you’re going to be on the right path with retirement savings without making any big mistakes.

Good luck!

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