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الأربعاء، 19 أبريل 2017

To Tip, Or Not to Tip? NYC Could Force Uber to Include a Tipping Function

Uber rides are usually a little awkward.

I mean, you climb into a total stranger’s car and make small talk for a few minutes before being blanketed in an uncomfortable silence that’s only broken when your driver decides to crank some “sweet” tunes.

But that level of awkward? That ain’t nothin’.

The really uncomfortable part comes at the end of the ride when you thank the driver, step out of the car and are forced to do the to-tip-or-not-to-tip dance as you sheepishly check your cashless wallet, knowing full well you aren’t carrying any.

That dance may soon be a thing of the past.

On Monday, New York City’s Taxi and Limousine Commission announced a proposal to require car services to allow passengers to tip drivers using credit cards after Uber drivers in the city petitioned officials asking them to change the rule.

The petition, which collected over 11,000 signatures, claimed drivers in New York City were losing thousands of dollars in the absence of a convenient tipping option.

However, while the lack of tipping option allows riders to avoid kowtowing to what many view as an outdated social expectation, the real issue seems to be rooted a little deeper.

During a recent hearing on the matter, more than 80 drivers in New York City showed up to share stories of economic hardship and issues with a lack of transparency in pay.

But what’s less transparent than never knowing if you’ll walk away with enough money to pay your bills because you’re relying on tips?

The Issue With Tipping and Uber

For years, Uber has stood by its decision not to build a tipping option into the app’s interface, saying that it would be “better for riders and drivers to know for sure what they would pay or earn on each trip  —  without the uncertainty of tipping.”

The company also notes many people tip because it’s expected, even if the service is bad, and that tipping creates bias — particularly within the driver/rider review function on the app.

They went on to explain that tipping could give drivers incentive to spend more time in parts of town where tips are likely to be higher, narrowing the company’s reach.

Still, Uber acknowledges that some riders want to tip their drivers, and says drivers are free to accept them whenever they’re offered.

Either way, it sounds like the rulemaking initiation will move forward.

“This rule proposal will be an important first step to improve earning potential in the For-Hire Vehicle industry,” stated Taxi and Limousine Commissioner Meera Joshi, “but it is just one piece of a more comprehensive effort to improve the economic well-being of drivers.”

What that “comprehensive effort” entails remains to be seen.

Your Turn: What do you think about Uber’s tipping policy?

Disclosure: This post includes affiliate links. Adding these links helps us keep the lights on in The Penny Hoarder HQ, which makes it a lot easier to play shuffleboard after a long day of deal-seeking!

Grace Schweizer is a junior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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7 Smart Ways to Invest $1,000

You'd like to learn how to invest $1,000.

7 Is this possible?

After all, don't many financial advisers have investing minimums?

What if you're new to investing? Where do you start and what are the best short term investments or long term?

Yes, there are places you can invest $1,000. And, some of them are pretty nifty, as well.

But, it's not enough to know some places to invest – you should learn some best investing practices.

I'll teach you those along the way, too.

So grab your stash of cash, and let's look at some of the best ways to invest 1000 dollars!

1. Peer to Peer Lending

Easy to use services like Lending Club have allowed the peer to peer lending to become a major player in the personal loans market place.

You may be familiar with crowdfunding, where people ask others to help them cover the costs of a specific expense or offer a gift in exchange for paying to get a business idea off the ground. Peer to peer lending works in a similar fashion, but the crowdfunding goes toward funding a loan. Each person who contributes to the loan gets paid back with interest.

Basically, you get to participate in a loan relationship as the bank, along with a bunch of other people, and take advantage of earning the interest.

There are several P2P networks that can provide very good returns. The reason I recommend Lending Club is because I have used it the most extensively and have had great success over the year. I go into full details about how it works and my returns in my Comprehensive Lending Club review.

As an investor with Lending Club, you can invest automatically using investment criteria. Alternatively, you can manually invest by browsing available loans and picking the ones you like. Lending Club gives you a credit assessment of each person looking to borrow. People with lower credit ratings will pay you higher interest on the loan, but you have a higher risk of them defaulting.

One of the best features of Lending Club is that you can make investments as small as $25. This means you can diversify greatly between different risk levels in your lending. Even though I have several thousand dollars invested in the platform now, I rarely invest more than $100 in a single loan.

The ability to diversify into so many loans makes Lending Club a very appealing place to invest your money. I have seen several people take a piece of their IRA and diversify into P2P lending by investing as much as $100k.

Tip: Like any investment, make sure you choose notes that reflect your tolerance for risk. Some notes are riskier to invest in than others, and thankfully, you can see this information at Lending Club's website.

2. Let Robots Handle Your Investments

If you're not very skilled at investing on your own and you're hesitant to loan money out to particular people online, you might consider hiring a robo-advisor.

Robo-advisors are investment companies who create automated software designed to manage portfolios based on certain criteria. For example, when signing up for such a service, you might take a questionnaire to determine your risk tolerance level or investment goals.

Robo-advisors make investment management available to the masses, since they typically have very low (or nonexistent) account minimums.

Additionally, many robo-advisors have slick user interfaces to help you get relevant information about your investment performance, holdings, and more in a snap. Currently there are two big players in the Robo-Advisor competition.

Wealthfront

Wealthfront is taking the person to person financial planner out of financial planning. Their Path platform gives you a comprehensive view of all your investments and helps you make the best investment decision for your goals.

On top of providing great advice and adjusting your investments for you, Wealthfront also offers no fees on the first $10,000 you invest with them. This means your $1,000 investment can grow with no fees and you get top notch advice.

Betterment

I really like Betterment and the interface is very slick and easy to use, but they have one big drawback the prevents me from mentioning them first and that is fees. Betterment charges a 0.25% fee for all accounts no matter the minimum balance. Since Wealthfront is free up to $10,000 and, in my opinion, the investing differences are minimal, I have to say Wealthfront is the better deal.

If you were going to be investing more money, like a $500,000 investment, then I would probably lean toward Betterment because I have more experience with them, but either is going to do a very good job for your longer term investing.

I interviewed Jon Stein, CEO of Betterment, a popular robo-advisor which grew from nothing to a $500-million-dollar investment company in just under four years. Jon believes the markets represent the success of the global economy. Overall, he expects they will improve over an extended period of time. This view is reflected in Betterment's software. It's set-it-and-almost-forget-it investing!

Tip: If you're ready to get a comprehensive, in-depth financial plan in place, you'd probably do better to sit down with a financial planner. If you have your strategy largely in place, try out a robo-advisor. It's worth a look!

3. Pick Your Own Stocks with an Online Discount Brokerage

If you're the do-it-yourself type, and you have some investing knowhow, you might want to consider picking investments yourself using an online trading platform such as Trade King.

In my Trade King review, I found the brokerage to be both user-friendly and to have exceptional tools for portfolio growth. There are also other great options out there you should look into such as Motif Investing and Scottrade before making your final decision.

There are many more discount brokers out there, so you might want to spend a little time researching them and seeing which discount broker is right for you.

Tip: If you're going to be picking investments yourself using your $1,000, you might want to pick out some exchange-traded funds (ETFs). ETFs are known for their low costs and diversification benefits.

4. Pay down your debt.

You might find this investment strategy surprising. But think about it for a moment . . .

Having debt is like the opposite of having an investment. The only difference is that holding onto debt is often more costly than investments are profitable.

For example, you might expect to achieve a 7% or 8% return in the stock market. With credit cards, you might pay in the double digits. Yikes.

That's what makes paying down debt such a great investment idea. What you're really investing into is not having to pay lots and lots of interest.

This is also why some financial gurus recommend paying down non-mortgage debt before investing for retirement. It's that important.

And, $1,000 might make a big dent in your debt. But if it doesn't wipe it out, you should truly focus on paying off your debt as soon as possible.

Tip: Organize your debts. You may choose to organize them from lowest balance to highest balance, or from highest interest rate to lowest interest rate. The former makes sense from a behavioral standpoint and will give you some quick wins while the later will save you the most money. If you still have good credit then you can take out a 0% balance transfer credit card and reduce your interest for 12-18 months while you pay it down. Feel like you dont have the extra cash to pay down your debts? Consider starting a part time job or a great side hustle such as becoming an Uber driver, which is great because you can make your own schedule and work when its convenient for you. Learn more on Uber driver requirements, and start making extra cash to get this debt off your back!

5. Invest in your kids' college education.

Every parent wants their kids to be successful in life. One path to success is college.

But, there's a problem. Can you guess what it is? College is expensive and it's getting increasingly so.

If you want your kids to go to college, and you aren't rolling in the dough right now, you should probably think about saving for their college education. I am sure that if you are facing your kids college soon you would like to be investing $10,000 right now instead of $1,000.

A 529 college savings plan is a great choice, as it has tax advantages that encourage individuals to save for college. These plans are sponsored by the states, so be sure to check out your state's 529 college savings plan and see if it makes sense for you.

$1,000 is a great start in one of these plans, and depositing the money in such a plan will help you get the technical details of the account worked out so you can continue to contribute. For example, you might be held back by the fear of the unknown. Making a decision to start saving for college today will make it much easier psychologically to invest tomorrow.

Tip: If you're going to contribute to your children's college education, it's wise to start as early as possible. The time horizon for college is usually short: a maximum of 18 years. If you're starting when your children are older, you have even less time. I can't stress enough . . . start as soon as possible. You need all the time in the markets you can get.

6. Start a Roth IRA

The Roth IRA, my friends, is one of my most favorite investment vehicles.

Why? Because the Roth IRA allows you to get a tax break on the money you withdraw from the plan during retirement instead of getting a tax break when you put the money in (that means you get some tax-free money). That's a good thing for many, many people. The other reason is you have a lot of control over your money with a Roth IRA when compared to your employer-sponsored retirement account.

Those are two great reasons to start a Roth IRA. But let's not forget the main reason you should start one: it's important to save for retirement!

You won't be getting a paycheck from your employer in retirement. No income. None. That's obvious, but let it soak in for a moment. You're going to have to rely on other income sources (like your fantastic Roth IRA) in order to survive.

Tip: Check out some of the best places to open a Roth IRA and start one today! You'll be glad you did.

7. Diversify your money

One of the worst mistakes financial advisors see is when clients don't diversify their money. Don't be like those clients. Be awesome and diversify your money.

And yes, you should diversify your $1,000. With ETFs, it doesn't cost much to diversify your money and make sure you don't ride the single-stock roller coaster.

You might be thinking, “But Jeff, it's only $1,000. Can't I buy some [insert favorite company here] shares?”

Well, you could, but you sure wouldn't be setting yourself up for making smart investment decisions in the future. Be smart with your money even if it's being smart with just a little bit of money. Practice now for the future. If you set those habits up now, when your money has grown to a 20,000 dollar investment or hopefully a one million dollar investment you will be ready to keep diversifying regularly.

Tip: As you build your portfolio over time, make sure to rebalance it as certain investments within the portfolio will rise and fall in value. Never be overweighted or underweighted in an area. Learn all you can about proper diversification and stick to those best practices.

Concluding Thoughts

Thank you for taking the time to read this article. You know what it means that you read this article? It means you care about doing the right thing with your money.

$1,000 might not be much to invest, but starting on the right foot now will lead to numerous rewards in the future.

Just imagine how that one little act of investing $1,000 will grow into years and years of interest and sound financial choices.

And, don't forget the power of compound interest. Exponential growth of money is awesome, and you should take advantage of it as soon as possible.

While there are so many ways to invest your $1,000, just make sure you do so. Do some research before you invest, but don't drive yourself crazy considering all of the options. Make a reasonable, but timely choice. The last thing you'd want to do is neglect investing at all because of information overwhelm.

Invest today for a better tomorrow.

The post 7 Smart Ways to Invest $1,000 appeared first on Good Financial Cents.



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The Kiddos Eat Free Every Night at IHOP for a Limited Time. Here’s How

Don’t feel like cooking, but you also don’t want to pay a lot for the kids to eat like birds at a restaurant?

Why not go to IHOP instead of your local diner?

The International House of Pancakes has resurrected its Kids Eat Free promotion for a limited time.

Your child can order a kids meal for free between 4 and 10 p.m. every night — so long as you purchase one adult entree per free kids meal. All you have to do is place your orders and enjoy.

Kids Eat Free at IHOP… For How Long?

Drinks aren’t included, and you can’t stack this freebie with any other deals or coupons. The offer is available for dine-in orders only.

Kids selections at IHOP include pancakes, of course. But they can also choose from macaroni and cheese, a grilled cheese sandwich or a kid-size ham-and-egg melt.

We’re not sure when this promotion will end, so if you want to save on an evening out with your little one, you’d better do it soon! (MoneyTalksNews reports that IHOP offered the special for four weeks last spring.)

Meanwhile, even if you don’t have a small fry to share this deal with, you can still join IHOP’s Pancake Revolution email club. You’ll earn a free stack of Rooty Tooty Fresh ’N Fruity pancakes when you sign up and another free stack on your birthday.

Your Turn: Will your family visit IHOP during this promotion?

Lisa Rowan is a writer and producer at The Penny Hoarder.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Go Green, Save Green: 10 Environmentally-Friendly Steps to Save Money

Growing up, I saw a lot of frugal household tricks from my family and friends.

Turn off the lights when you leave a room. Use plastic bags to line trash cans. Reuse paper grocery bags to cover textbooks. (That probably wouldn’t fly these days for iPads.) When it’s yellow, let it mellow…?

Our parents made us do these things to save money. Then I grew up and realized these are some of the same steps my hippie friends are taking to save the environment.

Was everyone in my little conservative hometown accidentally going green?

Apparently, yeah. Many of the steps environmentalists suggest to reduce waste and use less energy have the delightful side effect of helping us save money. Win-win!

In celebration of Earth Day, here are 10 steps you can take this month to go green, reduce your carbon footprint and save money.

1. Embrace Minimalism

Reducing your footprint is just one reason to live a minimalist lifestyle.

In addition to the environmental impact of material consumption, there’s also the psychological impact of having all that stuff to keep track of. Not to mention the cost of buying and maintaining it!

Here’s one more reason: You can earn a lot of money selling it (instead of sending it to a landfill).

Our editor, Matt Wiley, and his then-fiancee were inspired by a podcast to cut back and clear the clutter from their life. That made Wiley take a long, hard look at the massive collection of DVDs and Blu-Rays gathering dust in a cabinet.

He listed them with an app called Decluttr, which buys your old DVDs, Blu-Rays, CDs, video games and hardware like cell phones, tablets and game consoles.

Decluttr offered Wiley $55 for 86 titles he was happy to unload. The company pays for shipping and resells your items for you, so you don’t have to deal with individual buyers.

Plus, you can breathe easier with less clutter around — and get peace of mind entering a new marriage without that copy of “MacGruber” hanging around.

2. Invest in Clean Energy

Would you like to start investing… but don’t think you have enough money?

Download the investment app Stash. It lets you start investing with as little as $5. And you don’t have to be a stock market genius to figure it out.

Instead of picking and choosing what to invest in, you tell Stash what you care about. Whether it’s tech innovation or environmental issues, Stash will put your money into a portfolio that supports your causes.

3. Support Green Companies

While you’re going virtual, consider opening an online bank account.

Aspiration’s Summit checking account is totally free to use, and you’ll do all your banking online.

This account yields up to 1% interest on your balance — that’s 100 times more than typical checking accounts! Plus, it reimburses your ATM fees and lets you make automatic donations to causes you care about.

If you want to see your money grow even more, Aspiration’s Redwood Fund lets you invest in companies with sustainable and environmental practices, like battling climate change.

You can open an account with the Redwood Fund with a minimum $100. Like all of Aspiration’s services, its fee is on a pay-what’s-fair model — you choose!

4. Go Paperless

If you want to keep your brick-and-mortar bank, you could save a ton of paper waste by not getting monthly bank statements through the mail.

Do you really need that print out of every purchase?

Most banks offer a paperless billing option — but some kind of legalese requires you to opt into it. If you’re still getting stacks of paper from the bank every month, call or go online to ask about getting those statements online instead.

Thinking about opening a new account? You can do that online, too. These banks are offering bonuses for opening an account right now.

5. Ditch the Disposable Razors

Ever think about the amount of plastic you throw away from shaving? Few of us want to go back to the straight razor, but you can make a compromise.

With a paid subscription to Dollar Shave Club, you’ll get up to five new blade cartridges each month. You get a fresh blade — no sharpening required! — and throw away a fraction of the plastic.

Dollar Shave Club helps you be frugal, too. You’ll get your first month free (just pay $1 shipping). After that, your subscription is just a few bucks a month.

6. Use a Credit Card

While credit cards are criticized for their not-easy-to-recycle plastic, there are plenty of ways using one can help you go green.

Credit cards make going paperless easy. You can view and pay your bills online, so no more wasted paper in the mail.

Plus, a card typically lasts longer than paper money, so using plastic could help cut down on waste and paper consumption.

Any Penny Hoarder knows credit cards help you save a ton of green, too! With a cash-back credit card, you can get paid for every dollar you spend.

If you’re just dipping your toes in, we recommend checking out the Barclaycard CashForward™ World MasterCard®. You’ll earn 1.5% cash back, plus a $200 cash bonus for signing up.

7. Slay the Energy Vampires

One of the simplest ways to go green is to turn off the lights. Cut your energy consumption and cost by turning off your electricity-sucking appliances, computers, TVs and lights.

And beware of energy vampires — electronics and appliances that keep using power even when you’re not using them.

The U.S. Department of Energy says they can add 10% to your electrical bill!

For example, phone chargers keep sucking power even when you’re not charging, and a digital cable box can add more than $40 per year to your bill if you don’t unplug between uses.

But who wants to run around unplugging things all the time?

Instead, plug electronics into power strips that have an on/off button. That way you can easily cut the power to all the vampires by flipping a switch.

8. Install a Smart Thermostat

You can save a ton of energy and up to 10% on heating and cooling costs for your home by properly adjusting your thermostat.

Optimal summer temperatures are 85 degrees while you’re away and 78 when you’re at home. In the winter, aim for around 68 degrees when you’re home and 58 or less while you’re away or sleeping. Chilly — but frugal!

A Nest thermostat will learn your habits, so it can automatically turn itself down while you’re away and adjust to your preferred temperatures.

It costs about $290 upfront, but check with your utility provider to see if you can get a free or discounted unit.

9. Turn the Lights Off

You’ve probably noticed occupancy sensors in office buildings or other businesses.

(Maybe you’ve even been the victim of a particularly cutthroat device that kicked off the lights while you sat motionless in a public restroom stall? Oops.)

This easy-to-install device costs less than $15. It cuts your energy waste by sensing whether a room is occupied and switching the lights off when it’s not.

The Department of Energy claims an occupancy sensor can cut your wasted electricity for lighting by 30%. Once you install it, you can save energy — and money — without thinking about it!

10. Do Laundry More Efficiently

Being smart about how you wash your clothes will not only help them last longer — saving you money and saving the earth one spin cycle at a time — it’ll also reduce your energy consumption.

Here are a few simple ways to be more efficient with laundry:

  • Use cold water for everything — hot water requires a ton of energy.
  • Dry your clothes on the line, or use a fold-out drying rack if you have a small apartment.
  • Toss a clean, dry towel in with dryer loads to soak up water and require less time in the machine.
  • Hand-wash when you can. This protects your delicates, saves money on dry-cleaning and saves you from wasting water to use the washer

Your Turn: What clever tricks do you use to save money and the environment?

Disclosure: Here’s a toast to the affiliate links in this post. May we all be just a little richer today.

Credit Card Disclosure: Many of the credit card offers that appear on this site are from credit card companies from which The Penny Hoarder receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). We do not feature all available credit card offers or all credit card issuers.

Dana Sitar (@danasitar) is a senior writer at The Penny Hoarder. She’s written for Huffington Post, Entrepreneur.com, Writer’s Digest and more, attempting humor wherever it’s allowed (and sometimes where it’s not).

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Meet the Billionaire NBA Team Owner Who Wants You to See Your Taxes at Work

I remember when I got my first real job after graduating college. My new employer was paying me more than anyone had ever paid me before. But I had to move to a new city, which meant looking for a new apartment.

It was my first time living alone and looking for a place that wasn’t cheap student housing, and I made one huge mistake: I calculated how much rent I could afford based on how much I made before taxes.

When my first paycheck arrived hundreds of dollars short of what I calculated, I realized my error. I had paid taxes before, of course. But in my new job, I had nearly tripled my income from the fast-food gig I’d held through most of college. For 23-year-old me, this was a whole new ballgame.

I wanted to know where my tax money was going.

General information was available, but finding specific answers to that question was hard back then. But now, USAFacts.org, a project headed up by Los Angeles Clippers owner Steve Ballmer, makes it easier to know exactly what our tax dollars are doing.

Where Do My Taxes Go? What the Database Can Tell You

Ballmer is the former CEO of Microsoft and, well, rich AF to put it bluntly.

According to Forbes, he is worth $30.2 billion. I’m going to go out on a limb and guess he pays more annual taxes than I did at my first job after college.

So when his wife wanted him to get involved in one of her philanthropic projects, he argued that by paying taxes, he had already done enough. To prove it, he went on a mission to find out where his millions in tax dollars had gone and who he had helped.

What he found was that his millions in taxes — like my thousands — were hard to track. So he decided to gather a nonpartisan group of economists, writers and researchers to create a tax database with human impact at the forefront.

What Can This New Database Tell You?

Tracking every dollar of the more than $5 trillion that flows through government coffers each year is no small task.

Ballmer and his team needed a way to organize that information so we would all be able to use it, even if we don’t have a degree in economics and had never read a government budget proposal.

The database provides you information about how much of your taxes go toward broad categories like military, policing, social issues.

While Ballmer does not criticize or praise how government spending impacts issues, the database pairs dollars spent with outcomes so we can all come to those conclusions on our own.

In 2014, for example, the federal, state and local governments spent nearly $800 billion on education.

At the same time, the most recent numbers available showed that the average public school teacher made about $56,000, the high school dropout rate was about 7%, and the average reading score on the SAT was 496.

Using the information and data about past spending and results, you decide whether the government is properly managing our tax dollars. The best part is that you can see this kind of comprehensive analysis for just about any issue.

Ballmer and his team rolled out the project Tuesday, and they are still adding some features. So go play with it, and see how your tax dollars are helping your fellow humans. This can help you determine if you think our government is spending wisely or not.

Your Turn: What is the most important issue to you? Is government spending helping?

Desiree Stennett (@desi_stennett) is a staff writer at The Penny Hoarder. The page on USAFacts.org she is most fascinated by so far is the measure of how we’re doing on accomplishing The American Dream.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Don’t Let Tax Season Catch You by Surprise: Tips for the Self-Employed

You love the idea of working for yourself… until tax season comes around.

Yeah. That pile of W-9s and receipts is a disaster.

When you work for yourself, you file taxes as an independent contractor — a self-employed taxpayer.

Don’t know if you’re “self-employed”? It means you control when, where, for how long and for how much you work. Think: everything from writing blog posts to driving with Uber.

If you found yourself scrambling the last few months to pull together receipts and record income, we’ve got some tips to get everything in order for next year.

Professional Tax Preparers Are Your Friends

Step 1? Talk to a professional. If you can afford the fee (or find a volunteer), working with an accountant will make your life much easier.

That’s not just for tax season. Talk to a pro year-round to stay on track with quarterly taxes and deductible expenses.

If you think your taxes are too simple to justify the fee, just make sure you’re keeping good records. Keep your receipts, invoices and tax forms all in one place — preferably scanned and stored in a virtual folder on your computer, where the dog can’t eat them before next April.

Tax-Deductible Self-Employment Expenses

Which receipts do you need to keep?

Make sure you know what you can deduct from your tax bill. It’s probably more than you think, especially if you work from home full time. You can deduct a portion of costs of these items and more:

  • Your home office — by the square foot
  • Furniture, rugs and the “Hang in there, baby” poster in your home office
  • Your laptop, smart phone and software
  • Your internet bill
  • Business-related travel, conferences and meals

Can’t remember what a tax deduction is? We’ve got you covered.

Don’t Forget to Pay Your Share

Unfortunately — and counter to popular belief — self-employment isn’t one big tax-deduction party.

You have to pay your share first.

And don’t forget about the self-employment tax. You should pay an estimated tax to the IRS quarterly — including Social Security, Medicare and a self-employment tax — so you don’t have to foot the entire bill in April.

Just make sure you increase those payments if your income increases, so you don’t wind up with a nasty surprise.

When you’re ready to file next year, one of these eight free tax-filing sites may come in handy.

Your Turn: Do you file taxes as an independent contractor?

Dana Sitar (@danasitar) is a senior writer at The Penny Hoarder. She’s written for Huffington Post, Entrepreneur.com, Writer’s Digest and more, attempting humor wherever it’s allowed (and sometimes where it’s not).

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Why You’re Probably Gonna Order More Big Macs When McDonald’s Releases App

You’ve mastered the art of drive-thru ordering. You’ve figured out the touch screens at the register. But are you ready for mobile ordering at McDonald’s?

The future is now! (Almost.)

America’s largest burger chain will roll out mobile ordering and payment in all its U.S. stores by the end of the year — that’s more than 14,000 locations where you can avoid human contact as much as possible.

“Customers will be able to place orders directly on the mobile app for pickup or have a kiosk recognize their app profile, which holds customized favorites and preferred payment methods,” the company said in a March 2017 statement. “The result is a more stress-free, personalized experience, enhanced by technology and world-class hospitality that puts customers in control.”

Convenience of McDonald’s App Might Crush Your Budget

McDonald’s isn’t the first fast-food joint to roll out mobile ordering. Taco Bell and Chick-fil-A already offer it, and Wendy’s seems ready to roll out its own system to half its stores this year, according to CNBC. At some Starbucks locations, mobile orders make up more than 20% of total sales.

But there’s a sneaky piece to this mobile ordering puzzle, and it’s how much you spend — surprise, surprise. A 2016 Deloitte survey found that people who place mobile fast-food orders visit 6% more frequently and spend 20% more per visit.

“Visits tend to increase because technology makes it easier to repeat an order automatically, while repeat orders of custom or upgraded drinks lead to increased sales,” the Chicago Tribune explained.

Still, the app could improve the ordering process for customers. McDonald’s has increased its efforts to improve order accuracy over the past few years by confirming drive-thru orders several times before the customer drives away with their nuggets. The latest mobile ordering push further increases the odds of accuracy by cutting out any verbal confusion during the ordering process.

Your Turn: Are you excited for McDonald’s mobile ordering? Do you use this feature at any other fast-food chains?

Lisa Rowan is a writer and producer at The Penny Hoarder.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Your Cat Misses You, So Apply for These 5 Work-From-Home Jobs Now

By now, you know that we here at The Penny Hoarder love a good work-from-home job.

Any job that provides you with the flexibility to cut the commute, work from the comfort of your living room and enjoy more time at home with your family (or your pets!) is a good job in our book.

5 Work-From-Home Jobs That Are Open Now

And if you’re looking for a job that does just that, check out these five work-from-home customer service jobs that are open right now!

1. CMS Solutions: Client Support Representative

CMS Solutions is a talent-acquisition company based in Fayetteville, North Carolina. As a client support representative, you’ll communicate with customers via phone or live chat to help them resolve their questions and problems.

Client support representatives earn between $9 and $15 per hour, with performance incentives. No word yet on benefits, but we’ve reached out to the company and will update this post when we find out.

You should have at least a high school diploma, a minimum of six months of experience in a customer service position, strong written and verbal communication skills and a cheerful, helpful demeanor. Technical troubleshooting skills are a plus.

You must be available to work at least 15 hours per week, but you can select your own flexible work hours.

For a brief training period, you must be available during the mornings or evenings for four hours each day to participate in a virtual training program. Your training period will be determined by which clients you work with.  

There are some basic technical requirements for this position, but you’ll definitely need a wired internet connection and a landline phone with a headset.

Unfortunately, if you live in California, Connecticut, Maryland, Massachusetts, New York, Oregon or Wisconsin, CMS Solutions is unable to consider you for this position.

If you’re interested in becoming a client support representative, go here to apply.

2. HotelTonight: Customer Service Phone Agent

HotelTonight helps customers find and book last minute hotel deals. As a customer service phone agent, you’ll be the first point of contact for customers and partners, answering general questions and assisting with app usage issues.

You should have at least one year of customer service under your belt, be smartphone and internet savvy and have the ability to calmly assist customers in a natural, unscripted way.

Although this is a work-from-home position, you must live in Oregon to apply. You must be available to work 40 hours per week, but evening and weekend work may be required.

No word yet on what this position pays, but the benefits are pretty sweet: no-cost health, dental and vision insurance plans, a 401(k) plan, 10 paid vacation days and six paid sick days, a $50 a month stipend to offset technology costs, and to top it all off, $500 per quarter in credits to use on the app (that means free hotel stays, y’all).

If you’re interested in applying for this job, check out the original listing here.

3. Bill.com: Customer Support Representative

Bill.com is an online business bill payments solution. The company is hiring customer support representatives for the Bill.com platform.

You should have customer service experience including chat, email or phone support, basic computer knowledge including MS Office, and the ability to type over 50 words per minute. Bonus points if you have a background in banking or accounting.

You should have a quiet work area and high speed internet, and be able to be on standby between 5 a.m. and 6 p.m. PST on weekdays.

No word yet on benefits or pay for this position, but we’ll update the post when we find out more information.

Right now, Bill.com is only considering applicants from California, Colorado, Georgia, Illinois, Oklahoma and Virginia.

If you’re interested in applying for this position, go here.

4. Brittain Resorts and Hotels: Virtual Reservations Agent

Brittain Resorts and Hotels provides resort and hotel accommodations in cities across the southern United States. They’re currently looking to expand their workforce by hiring virtual customer service and reservations agents.

You should have the ability to work independently, solve problems efficiently, have a strong technical aptitude and a friendly, helpful attitude.

They don’t list exact pay or benefits, but they do tout generous bonus plans and the ability to self-schedule your own flexible shifts. We’ll update this post when we find out more.

While the position is fully remote, the company is currently only hiring in Florida, Georgia, North Carolina, South Carolina, Texas and Virginia.

If you’re interested in applying for a job as a virtual reservations agent, go here.

5. Granada: Customer Service Advisor

Granada offers customer service experiences tailored to a company’s needs. The company is currently hiring customer service advisors.

You’ll need a clean and quiet home office environment and an unflaggingly positive outlook. You’ll also need a wired, high speed internet connection. You can see more of the technical requirements in the original job posting.

Pay is $10 an hour throughout the training process but jumps to $10.50 an hour (with bonus opportunities!) once training is completed. The company offers employer-paid medical benefits after 60 days with the company, along with paid vacation time after one year.

Interested in becoming a customer service advisor with Granada? Click here to apply.

If you’re interested in other work-from-home jobs, make sure to like The Penny Hoarder Jobs on Facebook.

Your Turn: Are you going to apply for any of these awesome work-from-home jobs? Let us know!

Grace Schweizer is a junior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Starbucks’ New Drink Has Us Doubting the Mythical Qualities of the Unicorn

If you buy one of these, we can’t be friends.

Look, I love Starbucks. I’m our in-house Starbucks extraordinaire. In case you don’t believe me, I’ve written about it here, here and here.

Except for when it comes to this. This is too much.

The new Unicorn Frappuccino from Starbucks is one froufrou trend I just can’t get behind.

Available from April 19-23, the Unicorn Frappuccino is a a blended drink consisting of pink powder, mango syrup and a sour-blue drizzle that’s topped with whipped cream and rainbow sprinkles.

And with it costing more than $5 a pop, you definitely shouldn’t blow your money on this thing.

The Unicorn Frappuccino From Starbucks Looks Like Unicorn Vomit

I wanted to be a good journalist and go try it for the sake of this article, but I couldn’t bring myself to spend $5.30 on a grande cup of unicorn vomit. I’m sorry.

People are freaking out on social media. It’s awakened an entire subculture of mystical humans I never knew existed:

Look at them in all their glory.

But seriously, we need to have a chat about this “unicorn” food trend.

After a quick search of #unicornfood on Instagram, my mouth immediately began to hurt. Search results consisted of pastel-colored food that looked straight out of Willy Wonka’s Chocolate Factory. (If you’ve seen the original film, you can agree that’s not a good thing.)

No food is safe, either. There’s unicorn toast, unicorn fudge, unicorn lattes and unicorn DEVILED EGGS.

Stop. Please.

Does the nation of unicorns know about this? I’m sure unicorns are kicking themselves right now for not trademarking their crap (literally, click the link — it’s rainbow meringue called “unicorn poop”).

I see a lawsuit coming.

Not only is it extremely unfair for us to rip off unicorns everywhere, I’d like to take a moment to state that unicorn-izing every food item has to be seriously unhealthy.

I’m all for rainbow sprinkles… but on toast? I’m gagging. I also feel my arteries tightening.

Might I Suggest Other Things You Can Do With $5

It just doesn’t look remotely delicious. It looks gross.

But let’s say it is delicious. Maybe it is. But should you spend five bucks and some change on this thing?

I’m not telling you how to spend your money, but I’m telling you there are so many better other things you could do with $5.

Here are a few things you can do with that money instead:

  1. Put it in a high-interest savings account. Sit back and watch the compound interest grow that five bucks.
  1. Put it toward your credit card debt. Americans now have more than $1 trillion dollars in credit card debt, and you want to go buy a unicorn drink? I’m trying not to judge you, but… c’mon.
  1. Go buy some frozen pizza. We found the best frozen pizzas for under $6 — and while they may not be rainbow colored, they’re pretty good. Plus, it’s pizza. Who doesn’t love pizza?

Your Turn: Have you tried the new Starbucks Unicorn Frappuccino?

Kelly Smith is a junior writer and engagement specialist at The Penny Hoarder. Catch her on Twitter at @keywordkelly.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Filling Prescriptions? You’re Probably Paying Way Too Much for Them

Like many people, to best live my life, I have to take daily prescription medications to manage chronic medical issues.

However, prescription drugs can be expensive — and the prices keep increasing. Plus, the high cost of insurance can put them out of reach for many adults.

Not long ago, I was without insurance. With a degree in social work and a background in the nonprofit arena, I wasn’t exactly rolling in cash to pay for my medication.

Looking for solutions to my dilemma, I discovered a few ways to save money on prescription drugs. Here’s how I get the medication I need, for less.

1. Check for Generic Equivalents

This one’s simple, but you’d be surprised how many people overlook it.

Ask your doctor or pharmacist if the drug you’re prescribed has a generic equivalent.

Generic medications contain the same active ingredients, and are the same strength, dose and form, as their brand-name equivalents. The only real difference is the cost.

Generally speaking, there’ll be a generic version of any medication that’s been on the market for some time. If the medication you’re being prescribed isn’t extremely new, always check for a generic equivalent.

2. Shop Around for Pharmacies

Different pharmacies sometimes charge different prices for the same medication.

Before you get your prescription filled, call or stop by a few different local pharmacies to see what they charge individuals without insurance.

Or use an app like GoodRx to quickly compare prices across pharmacies and see where your meds are cheapest.

The app also provides coupons — some could save you up to 80%! You can either print them out or just show them to the pharmacist on your phone.

For example, Penny Hoarder senior media buyer Kelsey Buxton recently needed to pick up a prescription. She was going to order it at Walgreens, but checked the GoodRx app before heading out. It told her the prescription would be cheaper at Walmart, and also provided a coupon.

“I saved $20 on a prescription just for getting it somewhere else,” Buxton says.

3. Ask About Prescription Assistance Programs

Ask the drug manufacturer to see if it offers a prescription assistance program for your medication.

Many manufacturers of prescription drugs that don’t have generic equivalents offer programs through which they sell the medication at a reduced cost — or even for free.

To see if your medication has an assistance program available, check with your doctor or pharmacist, or do an online search with your drug name.

Last year, I was able to use a prescription assistance program to help a family member who was prescribed a very expensive medication with no generic equivalent.

His insurance helped with a large portion of the cost, but he was still left to pay $589 per month out of pocket. Through the prescription assistance program, he was able to get his medication for free.

In addition, a prescription assistance program covers the full $100-per-month out-of-pocket cost for one of my medications.

4. Look for Coupons or Rebates

Before you pay full price out of pocket, search for coupons or rebates for your prescription medication.

Several websites, such as Needy Meds, will do the research for you and can help you save up to 70%.

5. Ask About Pharmacy Discount Programs

While you’re comparing prices at pharmacies, ask about possible discount programs.

Some discount programs are specific to individual pharmacies, such as the Rite Aid Rx Savings Program and Walgreens Prescription Savings Club.

Others work at almost any pharmacy. For example, Drugs.com offers a discount card with savings up to 80% off medications, and LowestMed’s discount card saves you up to 70%.

For maximum savings, ask your pharmacy if you can combine its discount program with one of the above non-pharmacy-specific discount cards.

6. Consider Shopping Online

Some companies buy prescription medications directly from the drug manufacturers and sell them to individuals — which can help you save money.  

Since the FDA doesn’t approve pharmacies, these companies are licensed by the states they’re located in.

For example, Health Warehouse is licensed to directly distribute medication to individuals in all 50 states, and it ships your prescription straight to your home.

Blink Health works a little differently; rather than sending medication to individuals, the company distributes medication to patients’ pharmacies. After you submit your prescription online, you can pick it up at one of more than 60,000 pharmacies nationwide, including major chains like Walgreens and CVS.

While neither company is accredited through the Better Business Bureau, both have 4+ stars out of five on Google Reviews, with more than 150 reviews each.

How to Save the Most Money on Medications

Often, I’ll combine these tips to get the best possible price for my prescription drugs.

For example, there’s a name brand available for one of my current medications, as well as a generic option. The name brand ranges from $158 to $240 per month, depending on the pharmacy.

If I find a coupon for the medication, it’ll lower the cost to between $87.66 and $158. I can’t spend that much on one prescription per month, especially since I have several daily medications.

If I choose the generic version of the same prescription and use one of the national discount cards, I’ll only pay $31.80 for the same one-month supply.

While I’m thrilled with the low price, it gets even better.

Through Health Warehouse, I was able to buy my one-month supply of this same medication for $16.50 — a potential savings of $223.50 each month on one prescription.   

Prescription medication is expensive, but it doesn’t have to be.

If you’re not able to make your medication more affordable with these strategies, talk to your doctor to see what other options are available.

Your Turn: How have you saved money on prescription medication?

Disclosure: Here’s a toast to the affiliate links in this post. May we all be just a little richer today.

Kelli Lynn has been living well with chronic medical issues since she was a young child. Her goal is to help others living with medical issues to do the same.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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The Simple Secret to Sustained Financial and Professional Success

Over the last several years, I’ve paid off hundreds of thousands of dollars in debt and went from the precipice of bankruptcy to a path toward financial independence. I went from a career that depressed me to a completely different career that fulfills me. I did all this while undergoing major changes and challenges in my personal life at the same time.

How?

There is a secret to it. It’s one I’ve spelled out many times on this site, but never in such simple terms.

The secret is small disciplines, sustained over a long period of time.

It’s simply making a very long-term commitment to a handful of small changes to your life and sticking to them like glue. That’s it. Nothing more, nothing less.

The core of my financial turnaround came from simply deciding to stop spending money on wasteful stuff. I kept track of my expenses, figured out how much I was spending on things like food and beverages and hobbies, and put a monthly cap on those things.

My small disciplines are to keep nonessential spending – especially food and hobby spending – within a reasonable cap each month, to review my spending each month, and to make up for shortfalls and make corrections whenever the review isn’t up to snuff. That’s really been the core of my financial turnaround. I’ve sustained it for a long period of time.

The core of my career turnaround was to simply devote significant time and energy to a project outside of my normal job, a project that I cared about. You’re reading the end result of that project.

My small discipline was to spend a couple hours each and every day writing content for The Simple Dollar, no matter how tempting it was to do something else and no matter whether it seemed like The Simple Dollar was immediately successful or not. To do that, I gave up some television watching habits and a few other time-wasting routines in my life. I’ve sustained it for a very long period of time, and I’ve actually grown that time in later years as The Simple Dollar thrived enough to become my primary employment.

All of the success I’ve had in those areas of life have come from sticking to some simple rules like that, ones that are a bit more difficult than the path of least resistance but not disruptive or impossible, and simply hanging with those new rules for a long time.

As I’ve grown older, I’ve seen this phenomenon prove to be true in every area of my life. My marriage feels incredibly strong, but that’s because I have a small discipline of really devoting quality time to my wife each day, listening to her and helping her and showing her love through action. I feel like I’m successful so far as a parent because I do the same thing with my children – quality time for them each day, blocked off just for them. I’ve seen it in my physical health and my mental health and my personal development and my social life.

Simple, small disciplines, repeated over and over and over and over, with great consistency. That’s the magic.

Why doesn’t everybody do this, then? There are a few reasons that pop out immediately.

First, you typically don’t see a lot of immediate success. I didn’t see any real notable success from The Simple Dollar for many months, and nothing astounding for years. Sarah and I dated for more than six years before marrying. It took years to pay off all of our debts. The successes I’ve had didn’t come quickly.

Even more than that, it often felt like I wasn’t seeing much success at all in the early stages of those changes and new habits.

So, why did I stick with it if I wasn’t seeing success? I knew that I would eventually get to where I wanted to be if I stuck with those little disciplines. My trajectory was true, even if I hadn’t reached my destination yet.

Second, people don’t like to change or to give up little pleasures. Most of the time, when you make a change to your life to bring about some form of long-term improvement, that means that you’re giving up something in the short term to obtain it. It might be a bit of free time. It might be a bit of spending. It might be a hobby. It might be a favorite food or a beverage.

Whatever it is, there can be some negative feelings about that change. Even if you’re giving it up for something that will improve your life far more, people often still feel negatively about such changes.

Imagine, for example, that you’ve started counting calories. You have a family pizza night each Friday and typically eat three slices, but now you can usually only eat two slices and sometimes only one slice to hit your calorie target for the day. While you’re on the right path of making small sacrifices for a greater good, sacrificing that “family movie night” pizza treat can still feel pretty negative.

People don’t like to do that, and when it’s combined with a sense that the little changes really aren’t producing any sort of significant positive transformation in a reasonable amount of time, it can result in some serious negativity toward sustained change.

Third, most people try to follow the path of least resistance each day. Most people eventually fall into a routine that enables them to get the things done that they need to get done each day with a minimal amount of fuss. Almost always, small disciplines get in the way of that routine. It’s like putting some sand in the grease of life – even though the changes are tiny, you really notice them and not in a good way.

Small disciplines virtually always stand in direct opposition to the path of least resistance. They make what can seem like a challenging and very full day even more challenging and full.

Those three drawbacks consistently result in the failure of most people to find the sustained successes in life that they want. I’ve really only found a few things that overcome those challenges.

One simple tactic is to make reflecting on your day and on your long-term goals an every single day kind of thing. Put aside some time – on your commute or during your shower or whatever – to think about the things you’re trying to succeed at and the little daily steps you’re taking to get there.

“I want to be financially independent. What do I need to do today to move closer to that?”

“I want to take this big career step. What do I need to do today to move closer to that step?”

It’s also useful to reflect on the past day and the steps you took. Did you do things that will move you closer to your financial or professional goal (or any other goal you might have)? Did you do things that will move you away from that goal? Why did you do those things? What might you do better going forward?

Make that type of reflection into a constant daily habit. Keep your big goals in mind and constantly relate them to what you’re doing right now.

Another tactic I value highly is to focus on things that are entirely under your control. Getting the big promotion at work is, at least in part, outside of your control. You don’t make that hiring decision – someone else does. So, when you set something like that as your goal, you set yourself up for a significant chance of failure regardless of your efforts. That’s a mistake.

A much better approach is to set goals based on your own efforts and choices such that the natural results of those efforts will bring you toward the overall destination you seek. Using that career example again, if you spend every day at work doing things to maximize your career, you’re going to increase your odds of getting that promotion, but even if you don’t get that promotion, your door is open to a lot of great possibilities. However, those possibilities are merely a natural outcome of your actual goal, which is to put in daily effort to improve your career standing. Your goal is to make that daily effort; the career opportunities are just the natural result of those efforts.

Another worthwhile tool is to judge your success by your efforts, not by the results. Many people judge their relative failure or success by whether or not they see immediate results from their efforts. You will raise your net worth if you spend less than you earn every month, but you won’t radically transform things in a season. You will lose weight if you eat more calories than you burn each day, but you won’t radically transform your body in ten weeks.

Your success is actually judged much more by your ability to consistently complete the small disciplines you set for yourself. If those small disciplines are well thought out, intended to push you toward your bigger goals, and are mostly focused on your own personal choices and effort, you’re going to have results.

A final suggestion – review your goals and tactics regularly (but not constantly). Sometimes, you may end up choosing a small discipline that is producing results but not the results you’re hoping for. For instance, you might be producing extremely well in some respects at work, but the things you’re producing are actually just locking you into your current job. Ask yourself constantly whether the results you’re producing from your little disciplines are really bringing you to the big goals you’re seeking. If you find that they’re not doing anything at all, then consider changing those small disciplines.

You shouldn’t do this kind of reflection every day or every week or even every month, but perhaps once a quarter or twice a year. Succeeding at small disciplines will push you in new directions in life, but you need to give it enough time for those directions to become clear, and then you can step back and assess whether those are the directions you want.

In the end, almost all success in finances and in careers is produced by sustained small disciplines. It just takes time and patience and reflection to really see the results you want.

Good luck!

Related Articles:

The post The Simple Secret to Sustained Financial and Professional Success appeared first on The Simple Dollar.



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You Can Use 404s to Boost Your SEO. Here’s How.

The dreaded 404 error page.

We’ve all encountered it at some point.

And in my opinion, there’s no bigger buzzkill than getting hit with a 404 error when browsing a site.

You’re right in the middle of exploring interesting content, and all of a sudden, you’re thrown a curveball.

If you’re not sure what a 404 page is, let’s look at a formal definition.

According to Google,

A 404 page is what a user sees when they try to reach a non-existent page on your site (because they’ve clicked on a broken link, the page has been deleted or they’ve mistyped a URL).

Here’s what an ugly, generic 404 looks like:

image13

Not too flattering, huh?

But you can pretty them up, like I did on Quick Sprout:

image09

You’ve seen 404s. You’ve cursed 404s. And your site might even have 404s.

The problem with 404s

What’s the big deal with 404s?

Are they really that bad?

First off, let me make something clear.

Every site will get some 404s, and it’s okay! 404s happen when people—your potential site visitors— type in the wrong URL.

For example, if I type in “businessinsider.com” in my browser and continue typing gibberish, I’ll get a 404.

image00

It’s not Business Insider’s fault I got a 404. It’s my fault.

You’ll never be able to eliminate 404s completely.

But there are some 404s that are within your control and which you do need to pay attention to.

Here’s why.

If a user encounters a web server issue such as a 404 page, they’re highly likely to hit the back button and return to the search engine.

When your visitors do this en mass, it creates a phenomenon called “pogo sticking,” which looks like this:

image01

This is a problem because it tells Google that your content isn’t adding value for a particular keyword query.

If this happens enough, you’re likely to see a drop in rankings.

Not cool.

The inevitability of 404s

As I mentioned above, 404s are going to happen. It’s not if but when your visitors will encounter them.

Many 404s won’t be your fault. But some will be your fault, and it’s hard to control them. Even if you’re an amazing SEO or webmaster, some will slip through the cracks.

And the bigger your site is, the more 404s you’ll have.

One of the leading causes of 404s is broken links.

Websites change. Links point nowhere. And 404s happen.

In fact, some huge websites can acquire up to 10 new broken links every day.

Just look at the number of broken links found on some of the world’s top websites:

image06

If it happens to behemoths like Cisco and Apple, you can bet it’s going to happen to you.

And as I mentioned earlier, broken links are just one reason behind 404s. Other times, it’s simply due to a visitor mistyping a URL.

The bottom line is that 404s are inevitable, and you need an effective way to deal with them.

What’s the solution?

It’s actually pretty simple.

You need to create a customized, branded 404 page.

Here’s a good a example of one from MailChimp:

image11

Here’s another from Hootsuite:

image12

Think about it.

Would you rather get hit with an ugly, generic 404 or one that’s well-designed and cleverly branded?

I’d bet most people would opt for the latter.

But that’s just part of it.

Although these 404 pages are cute, they won’t do anything for your SEO.

Use 404s for good

What you want to do is not only stop 404s from hurting your SEO but use them to boost your SEO.

But doesn’t that seem a little counterintuitive? How in the world can 404s be beneficial to SEO?

Here’s what you do.

Create a custom 404 page with a branded design, like the ones from MailChimp and Hootsuite, and add several internal links to it.

I like to shoot for anywhere between 25 to 50 links.

Bam!

Instead of leaving your site in a hurry, visitors will be encouraged to check out more content and keep browsing.

Assuming the links you provide lead to engaging, helpful content, many visitors will stick around for awhile and work themselves deeper into your sales funnel.

In terms of SEO value, this reduces any pogo sticking from taking place and supplies your site with more SEO juice. Rather than 404s being a detriment to your SEO, they actually become an asset.

You’re basically turning a negative into a positive—pretty sweet.

And there are several other benefits as well:

  • You’re far less likely to annoy your visitors
  • It can increase your brand equity
  • You can increase the average amount of time spent on your site
  • You can reduce your bounce rate
  • Visitors are more likely to check out additional content
  • In the long run, this should have a positive impact on conversions and sales

In many ways, a customized 404 page with internal links is like an SEO magic bullet.

It can do much good without much effort on your part.

Specific strategies and examples

Now that we’ve established that adding internal links is the technique you want to implement, let’s get into the specifics of it.

One way to implement this strategy is to link to some of your most popular posts as well as your homepage.

Even Google suggests doing this:

image05

I recommend looking over your analytics to see which posts received the most engagement (clicks, shares, comments, and so on).

Then include these on your 404 page.

Doing so can increase the number of pages on your site that get indexed, boosting your SEO.

And it totally works.

In fact, I used this very strategy a few years back when I was working with TechCrunch.

Within 30 days, I was able to boost their search traffic considerably (9% to be exact).

Add a search bar

This is an incredibly simple feature, but it’s one that can have a tremendous impact.

According to Econsultancy,

…conversion rates through site search can be up to 50% higher than the average. Visitors converted at 4.63% versus the websites’ average of 2.77%, which is 1.8 times more effective. Consequently, visitors using search contributed 13.8% of the revenues.

In other words, “People who use search are more likely to purchase.”

Try to put yourself in a visitor’s shoes for a second.

They arrive on your site and are looking for information on a particular topic or product.

They stumble upon a roadblock with an unanticipated 404 page.

Rather than leaving annoyed, they can simply look up whatever interests them in the search box.

Voila! They instantly find other valuable content to quench their thirst.

Twitter pulls this off well on its 404 page:

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So does GitHub:

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Add links to products

Let’s say you run an e-commerce store.

One way you can improve the customer shopping experience is to link to other areas of your website.

More specifically, you can create links based around different product categories.

Here’s a really good example from ModCloth, a women’s fashion store:

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Not only does this improve SEO and keep visitors happy, it facilitates a smoother shopping experience and should improve conversions as well.

Talk about turning lemons into lemonade!

Include a link to your sitemap

I’m sure you’re at least somewhat familiar with sitemaps and how they affect SEO.

If you’re not, here’s a screenshot of some of the key benefits of SEO according to OnCrawl:

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Why not include a link to your sitemap?

That’s what Starbucks did:

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And its 404 page turned out looking great.

Here’s one last little tip

Be sure to explain what went wrong.

I’ve found this helps reduce user frustration.

I know I feel some sort of relief when I simply know what’s going on.

This 404 page from X-Cart does a great job of this:

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Notice there’s no crazy jargon.

In plain English, it explains some of the possible reasons for the 404 error you’ve encountered on their site.

How to create a customized 404 page

Now that we’ve established just how beneficial a personalized 404 page can be for SEO, this brings us to one important question.

How the heck do you create one?

As you well know, I’m a huge fan of WordPress.

It truly is a godsend for anyone who wants to create a beautiful, professional looking website but doesn’t know much about coding.

I suggest using the 404page plugin for WordPress.

It’s a one-stop-shop for creating a basic 404 page.

You can customize it and include whatever information you’d like to share with visitors who encounter your 404.

The best part is you don’t need to have any programming skills to use it.

However, if you want your 404 page to be super specialized and brand-centric, you may want to shell out the cash to hire a professional developer.

If you’ve got the budget and want it to look uber-professional, this is usually the best route to take.

You can find skilled developers through sites such as Guru and Upwork.

Many are more affordable than you might think.

Conclusion

The way I look at it, 404s are an unpleasnt yet unavoidable part of running a website.

Of course, you can use tools like the Online Broken Link Checker, but you’ll still have issues at some point.

And even if you somehow manage to catch all the broken links, visitors will still mistype URLs.

The best way to handle 404s is to customize them and incorporate relevant internal links.

A customized 404 page will not only protect your SEO from harm but also improve it.

Not to mention that it makes for a much more satisfying user experience.

To learn more about the broad spectrum of 404 pages, check out this post I wrote on NeilPatel.com.

Are you persuaded to keep exploring a site if it has a helpful 404 page?



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