Pa. Senate approves higher taxes

Plan to eliminate budget deficit will depend on tax increases

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¡Yo Quiero Lyft! “Taco Mode” and a $250 New-Driver Bonus Sound Tasty

Apparently midnight taco stops aren’t irregular occurrences for ride-sharing drivers.

We can only imagine how that conversation goes (maybe because we’ve been there):

Pleaseeee, you need to take me to Taco Bell. It’s right theeerrreeee. I’m gonna cry if I don’t fall asleep next to a Crunchwrap Supreme tonight.

The deal might involve bargaining: I’ll throw you an extra $10, driver. It’s worth it. Come onnn.

Well, come 2018, riders — and probably-annoyed drivers — don’t have to deal with this anymore because Lyft just announced a new partnership with Taco Bell appropriately called “Taco Mode.”

How Does Taco Mode Work?

“Taco Mode” is an in-app feature that will allow Lyft riders to schedule a pit stop at the nearest Taco Bell. It’s only available during the most appropriate times — 9 p.m. to 2 a.m.

Riders will select “Taco Mode” before requesting the ride, then once in the car, they’ll use an iPad menu to peruse their options. Steak chapula? Yes please. (At least, that’s what Missouri’s governor would say.)

And apparently those who test out the new feature will get a free Doritos Locos Taco.

Unfortunately, “Taco Mode” won’t be released nationally until next year, according to the press release, but it’s being tested in Orange County on July 27 to 29 and August 3 to 5.

“We're combining two of our passengers' favorite activities — a night out with friends and enjoying Taco Bell — which means there is even more of the night to love,” said Melissa Waters, Lyft’s head of marketing.

So What Does “Taco Mode” Mean for Drivers?

It means drivers no longer have to deal with unscheduled pitstops. Or, if they refuse to stop, a negative rating or lower tip.

Drivers might find a few pieces of shriveled shredded lettuce between their seats, but they also aren’t forced to participate, according to Lyft’s blog. They can simply choose not to accept “Taco Mode” rides.

A Lyft  representative also told us drivers won’t get any sort of official extra compensation or bonus; however, the idea is that they’ll get paid more because they’ll be driving further.

We imagine drivers might get a free taco or two, as well.

This $250 Bonus is a Good Reason to Sign Up for Lyft 

If you’re not a Lyft driver yet but want to prepare for the “Tacolypse,” this might make you want to sign up.

Right now, when you sign up for Lyft and complete 100 rides in 30 days, you’ll bank a $250 bonus.

We thought that sounded like a of rides, too. But when you break it down, that’s only about three rides a day. If you only drive weekends? That’s about 12 rides, or six a day or night.

The beauty is you can pick and choose your hours and when you drive.

(If you’re curious about how much you can earn by taking 12 rides on the weekends, use Lyft’s pay calculator.)

In terms of that $250 bonus… that’s 78 Cheesy Gordita Crunches, which, if you eat two a day, will feed you for over a month.

Then, once the “Taco Mode” feature unfurls in your area next year, you can start stacking up even more Taco Bell.

Time to guac and roll.

*car speeds off into the sunset*

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. She thinks Taco Bell pairs well with a stomach full of beer.

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This Report Has a Lot of Good News for Job Seekers Without a College Degree

Everybody has their own definition of what makes a job “good.”

For some it’s the benefits package or commute length, but for many people it’s (understandably) all about the money.

Researchers at Georgetown Center, in collaboration with JPMorgan Chase, define “good jobs” as those with a median salary of $55,000.

Their recent survey of employment opportunities in the U.S. revealed there are more than 30 million good jobs in the nation -- and they don’t require a bachelor’s degree.

The report, “Good Jobs That Pay Without a B.A.,” shows the availability of good jobs continues to grow, but they’re shifting away from the blue-collar industry.

These days, the skilled-services industry is where to go if you’re looking for a job that pays around $55,000 and doesn’t require a degree.

Jobs in healthcare, education and leisure services specifically are on the rise.

But that doesn’t mean there aren’t any good jobs left in blue-collar industries. Workers skilled in construction and natural resources are still in high demand.

Don’t Ditch Higher Education Completely, Though

The Georgetown Center report gives non-degreed workers a chance to relax about their job prospects, but don’t ditch higher education all together.

“New good jobs are going to workers with some college education and associate’s degrees rather than workers with high school diplomas,” say researchers.

These numbers demonstrate exactly why high school shouldn’t be the last stop on your education train.

If you need some encouragement to follow through on completing a certification, apprenticeship or associate’s degree program, consider this: You’ll spend a lot less on tuition than you will for a bachelor’s degree -- and have a better shot at landing a good job when you’re done.

Lisa McGreevy is a staff writer at The Penny Hoarder. She’s always on the lookout for job tips to share with readers so look her up on Twitter (@lisah) if you’ve got something to tell her about.

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Stroudsburg kitchen-installer sentenced for tax delinquency

A Stroudsburg man was sentenced to six months imprisonment and six months home confinement for failing to pay his company’s employment taxes.Joseph Andershonis, 58, runs a company called Just Very Affordable, Inc., a business that specializes in installing commercial kitchens. He failed to pay his employment taxes from the first quarter of 2010 to the last quarter of 2012.His actions resulted in a tax loss of more than $212,000, according to the court.Andershonis [...]

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The Surprising Reasons Tax-Related Identity Theft Is Down 47% This Year

The IRS put measures in place this year to reduce tax fraud, and we just learned that they’re working. Like, really working.

When tax filing season began in January 2017, the IRS encouraged consumers to submit their taxes electronically and request their refunds via direct deposit. These actions would speed up the filing process and prevent fraudster interception.

The IRS also held the refunds for tax returns that claimed the earned income tax credit or additional child tax credit for an extra period of time before starting to distribute them mid-February. That extra time, the IRS explained, allowed processors to conduct additional checks to verify the authenticity of each return.

The agency also established a program to educate tax professionals on the latest identity theft schemes to help them protect their customers.

The work is paying off, as the IRS just announced that “individuals reporting identity theft have declined sharply compared to the same time in 2016 and 2015.” Between January and May 2017, about 107,000 taxpayers reported identity theft. During the same period in 2016, there were 204,000 reported cases of identity theft, indicating a 47% reduction.

The agency has warned that while individual identity theft relating to tax returns has declined, identity theft relating to business tax returns has increased.

Stay Vigilant, Taxpayers

Although the IRS has cracked down on fraud schemes, you can still play a big part in ensuring you’re not the next tax-related identity theft victim.

Remember to protect all documents containing your Social Security number, and use strong passwords if you file online (and everywhere else on the internet).

Don’t get lured by tax preparers who say they’ll charge you a percentage of your refund, and don’t give any tax information to a stranger who calls you. If something doesn’t feel right, it’s probably not!

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

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Chipotle Finds Out the Hard Way Why Paid Sick Days Matter for Workers

Oh no, Chipotle. Not again.

Earlier this month, Chipotle was hit with another foodborne illness outbreak. And it turns out a sole sick employee was responsible.

A norovirus contamination that affected more than 100 customers at a Sterling, Virginia, location was due to a single employee coming into work with sickness, Chipotle CEO Steve Ells said in a conference call with investors, CNBC reported Tuesday.

It’s just another recent setback for the beleaguered burrito chain, whose stock has fallen 8% since Tuesday.

So after the fallout from the E. coli outbreak two years ago and fanfare about changes to restaurant food-safety policies following the incidents, how does something like this happen?

It’s a stark example of the problems with sick leave allowance and adherence in the U.S.

Chipotle Blames Local Management for Norovirus Outbreak

Although Chipotle does have a paid sick-leave policy for employees, the Sterling store was apparently not enforcing it.

"We conducted a thorough investigation, and it revealed that our leadership there didn't strictly adhere to our company protocols," Ells said during the investor call, according to CNBC.

And the practice may have been occurring at other locations throughout the U.S.

“My boss has told me that I have no option but to come in tomorrow, and it’s been heavily implied that my job will be in jeopardy if I [sic] don't come in,” wrote Missouri-based Reddit user uglydarby in a post in the Chipotle subreddit a month ago.

The user wasn’t fired, but the absence was “frowned upon,” CNBC reports.

Chipotle spokesman Chris Arnold told CNBC that the firm has added daily wellness screenings to its restaurant protocols.

“If any employees report symptoms of illness, [they] are excused from work until they are feeling better,” Arnold said.

Why a Paid Sick-Day Policy Is Important for Workers

Sick leave is an important benefit, especially for low-wage workers, for whom a single unpaid sick day can cost an entire month of medication, vegetables or car insurance.

Despite its advantages for staff and customers, some companies are still resistant to offer it as a benefit.

In 2011, Jimmy John’s fired six workers for making a meme calling attention to the fact that the company doesn’t offer sick leave and may be putting customers at risk. The news resurfaced after a judge recently ruled the company was justified in dismissing the employees.

Jimmy John’s certainly isn’t the only firm denying these perks to employees. In fact, about 50 million U.S. workers don’t have access to paid sick days, and because of that, 1.5 million go to work sick every week, according to a 2016 New York Times article.

With nearly half of all U.S. workers lacking some form of paid sick leave, maybe it’s time to make like other industrialized nations and create a federal mandate, which the U.S. currently lacks.

And for real, Chipotle employees already have it hard enough with jokers like the guy who asked for staff to individually pack all of his ingredients. They deserve a day off — especially if they’re sick.

Alex Mahadevan is a data journalist at The Penny Hoarder.

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Now Hiring: Capital One, HSN and Others Need People to Work From Home

In the future, jobs will look a lot different than they do now.

We’ll all participate in the gig economy (side gigs on side gigs) and robots will reign supreme (sort of, not really, just kidding, don’t freak out).

But until we as a society can finally manage to quit the commute and ditch the cubicle, only a select few of us will have the (as of now) still-exclusive opportunity to work from home.

But in order to actually work from home, you first have to find a good work-from-home job -- and that’s where we come in.

Today, we’ve found four awesome work-from-home opportunities to kick-start your job hunt -- so you can achieve your dreams of wearing pajamas to the office (which in this case happens to be your couch).

Check Out These 4 Work-From-Home Jobs

Here are the awesome opportunities we’ve found for you today!

1. Seasonal Partner Services Representative at Liftopia

Liftopia is an e-commerce platform that offers discounted ski resort tickets.

The company is currently looking for seasonal partner services representatives to support its partner services team and provide account management during the upcoming ski season (September through April).

You’ll manage phone and ticket queues form Liftopia’s partners, provide ongoing data maintenance, process and update inventory, process payments and refunds, perform quality assurance checks and run reports.

You should have at least two years of prior experience in customer service, hospitality or account management and a working knowledge of the ski and travel industry.

You should also possess excellent communication skills, be compassionate and level-headed and have the know-how to troubleshoot potential problems. Bonus points if you have a bachelor’s degree and familiarity with a variety of customer service-based softwares and programs.

You must live in California, Massachusetts, New Jersey, Texas, Vermont or Washington.

Training takes place from home, and you should be available for up to two weeks during normal business hours, Monday through Friday from 9 a.m. to 6 p.m. PST.

After that, your schedule will vary based on peak season times, but you should generally be available to work Saturday - Wednesday, 6 a.m. to 3 p.m. PST, plus all winter holidays.

Pay starts at $17 per hour, and as an added bonus, you’ll receive deals on lift tickets and some sweet Liftopia swag.

Here’s how to apply for this job.

2. Customer Service Representative at HSN

HSN, the Home Shopping Network, is looking for full-time customer service representatives to work from home.

As a customer service representative at HSN, you’ll answer customer queries and solve complex issues. You should be able to listen, synthesize information and determine the best course of action independently, and you should also be able to troubleshoot and make decisions that will best serve the customers’ and company’s needs.

You should have a high school diploma or GED equivalent. Prior customer service experience is a bonus. You should also be an exceptional communicator and possess excellent computer and organizational abilities.

You must have a high-speed, wired internet connection, a telephone headset and a standard, wired telephone service with a home number.

Applicants must live in one of the following Florida counties: Pasco, Hernando, Sumter, Citrus, Polk, Hardee, Desoto, Manatee, Sarasota, Orange, Seminole, Brevard, Volusia or Osceola.

While the position is full-time, there is no information on specific schedule requirements, pay or benefits included in the job listing.

We’ve reached out to the company to find out more information, and we’ll update this post when we find out.

Here’s how to apply for this job.

3. Customer Service Representative at GC Services

GC Services is a business process outsourcing provider.

The company is looking for customer service representatives to answer and document incoming queries from clients and provide accurate and courteous customer service.

You should be punctual, be focused and able to perform well under pressure and have excellent written and verbal communication skills. You should also be able to define and solve problems independently and maintain a positive and calm demeanor even in high-stress situations.

You should have a high school diploma or GED equivalent. At least six months of prior experience in customer service is preferred.

Your home workspace should be quiet and free from distractions. There are a few technical requirements (you can learn more about them here), but you’ll need to have a landline telephone.

You must live in one of the following 25 states: Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee,  Texas, Utah, Virginia, West Virginia, Wisconsin or Wyoming.

Pay for this position is $9 per hour. We’ve reached out to the company to see what benefits a person in this role might enjoy, and we’ll update this post when we hear back.

Here’s how to apply for this job.

4. Customer Service Representative at Capital One

Capital One is currently looking to hire full-time work-from-home senior customer service representatives.

You’ll answer inbound calls, answer customer queries and concerns and help them make informed decisions regarding their credit cards and other financial tools.

You should be able to troubleshoot basic technical issues, have excellent written and verbal communication skills and be familiar with digital servicing.You should be a confident decision maker and be able to multitask in a virtual environment.

You must have a quiet home office environment and a high-speed, wired internet connection.

You’ll need a high school diploma, GED equivalent or military experience, although a bachelor’s degree is preferred. You should also have a minimum of two years’ experience in a customer service role or six months in a home office environment.

You must be located within 100 miles of the “hub site,” located in Tampa, Florida. Training takes place over seven weeks and will primarily be done from the comfort of your home, with the exception of a few trips on-site.

After training is completed, your schedule will be determined based on current company needs, however operating hours for this department run from 8 a.m. to 12 a.m. seven days a week.

No word on what this position pays, but we’ve reached out to the company to learn more about compensation and benefits.

Here’s how to apply for this job.

And if you’re looking for even more awesome work-from-home opportunities, be sure to like our Jobs page on Facebook!

Grace Schweizer is a junior writer at The Penny Hoarder.

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This Is Why the Average American Still Uses a Shocking 38 Checks a Year

In the past 10 years, I have lived in five different apartments and worked for four different companies.

Three of those apartments required me to write a check to pay rent, and my first job was the only one to pay me with a paper check. As a freelancer, I was only paid with a check three times in three years.

I know how to write a check, but I can only remember writing three checks in the past 18 months, and it has been almost seven years since I had to deposit a biweekly payroll check.

Apparently, that’s not the case for the rest of the country.

According to Bloomberg, Americans on average wrote or received 38 checks in 2015. Meanwhile, in countries like Australia and Germany, that number is nearly zero.

And up until 10 years ago, a check was still the most popular form of payment behind cash.

Seriously, Who Is Still Using Checks?

The older you are, the more likely it is that you use checks to pay for things like groceries and gas. And the likelihood only rises if you live in a more rural community, Bloomberg reports.

It might be surprising, but the unbanked -- people who don’t have bank accounts -- also contribute to America using more checks than any other developed country. That’s because unbanked people are more likely to get paid with a paper check.

Businesses round it all out, according to Bloomberg. About half of all business-to-business transactions are made with checks.

Checks Are Still Going Strong. But How Long Will That Last?

As checks started to lose popularity, debit and credit cards had their heyday. Now the new kids on the block are peer-to-peer services like Venmo and PayPal.

While only 10% of seniors and 20% of baby boomers have ever used a peer-to-peer app, that percentage jumps to 62% for millennials. And 71% of people think children under 10 will likely never need to write a check.

But that may not be true.

According to Bloomberg, while check use is still declining in America, the rate of decline has slowed in recent years, and banks still report that a huge amount of money is moved via check.

“Our customers wrote almost a billion checks last year. Checks will be around for a while,” Michelle Moore, Bank of America’s head of digital banking, told Bloomberg. “But P2P is what really is growing phenomenally year-over-year.”

Desiree Stennett (@desi_stennett) is a staff writer at The Penny Hoarder.

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Is Your Job Bad for Your Health? 10 of the Most Stressful Jobs

Driving up to a construction zone one day, I watched a worker listen to music and drink some Gatorade.

After a couple cars passed, he casually turned the sign from "Stop" to "Slow," so I could proceed. “Now there's an easy, low-stress job,” I thought.

I needed an occasional job, so I spent two hours getting certified as a flagger and went to work. This was 26 years ago.

But I didn't get the quiet, six-cars-per-hour highway I’d hoped for. I was assigned to the busiest intersection in the county, directing non-stop lines of traffic through chaotic road work.

Correction: Trying to direct traffic.

My lack of experience made it difficult, but the unexplainable (and inexcusable) lack of two-way radios made it nearly impossible.

The other flaggers were a mile away in three directions, so they couldn't tell me which car they let through last. So I never knew for sure when to let traffic flow the other way.

I spent eight hours watching near-accidents and tolerating obscenities and honking horns directed at me. That was my first loooong day as a highway flagger. It was also my last.

How Stressful is Your Job?

You can't always predict how stressful a job will be. It depends on the particular assignment, and also on your employer’s decisions (seriously, no radios?!).

But some jobs are more predictable, and we can rate them according to how stressful they are.

CareerCast uses various "stress factors" for their ratings. The site says work demands like deadlines, competitiveness and being responsible for other people's lives "can reasonably be expected to evoke stress."

If these are a big part of the job, they contribute more points to the stress score. Based on this methodology, CareerCast put together a list of the most and least stressful jobs.

The 10 Most Stressful Jobs

Here are CareerCast's 10 most stressful jobs, starting with the highest stress score, and including the median annual salary -- your reward for putting up with all that stress:

1. Enlisted Military Personnel ($27,936)
2. Firefighter ($48,030)
3. Airline Pilot ($105,720)
4. Police Officer ($61,600)
5. Event Coordinator ($47,350)
6. Newspaper Reporter ($37,820)
7. Senior Corporate Executive ($102,690)
8. Public Relations Executive ($107,320)
9. Taxi Driver ($24,300)
10. Broadcaster ($38,870)

The 10 Least Stressful Jobs

Here are CareerCast's least stressful jobs, including the median annual salary, starting with the job that got the lowest stress score:

1. Diagnostic Medical Sonographer ($64,280)
2. Compliance Officer ($66,278)
3. Hair Stylist ($23,710)
4. Audiologist ($75,222)
5. University Professor ($72,416)
6. Medical Records Technician ($37,254)
7. Jeweler ($37,060)
8. Operations research analyst ($78,630)
9. Pharmacy Technician ($30,410)
10. Medical Laboratory Technician ($61,200)

The ratings are based on reasonable assumptions, which may not be applicable in all cases.

And with so many different jobs out there (the BLS tracks more than 800 occupations), there is the question of which ones to include in the ratings.

For example, how did "event coordinator" make the most-stressful list, but not "air traffic controller"?

It seems the latter employees “coordinate events" with much more frequency, and always with potential life-and-death consequences. Now that's stressful!

And, regardless of holding the top spot as least stressful, I would find cutting people's hair very stressful, which brings us to...

What Makes a Job Stressful: Personal Factors

I was totally stressed out as a real estate agent.

I hated having any responsibility for the biggest financial decision of people's lives. But some of my fellow agents were the most relaxed people I knew.

We're all different, so it makes sense to consider your own personality when determining which jobs might be more or less stressful.

Maybe you're at ease making decisions alone, but stressed out when making decisions as part of a group. You might love working with numbers or be completely uncomfortable with them.

The physical requirements of some jobs are refreshing exercise for some and stressful for others.

When considering a job, list all the tasks and situations that are a regular part of the workday (as far as you can tell). Then consider how each will make you feel.

And before you get tempted to take a stressful job just because it pays well, consider...

The Health Effects of Job-Related Stress

"Problems at work are more strongly associated with health complaints than are any other life stressor -- more so than even financial problems or family problems," says a National Institute for Occupational Safety and Health report on stress at work.

They list these "early warning signs" of work-related stress:

• Headache
• Sleep disturbances
• Difficulty concentrating
• Short temper
• Upset stomach
• Job dissatisfaction
• Low morale

The report also says research shows stress at work may increase the risk of...

• Cardiovascular disease
• Musculoskeletal disorders
• Psychological disorders
• Workplace injuries
• Suicide
• Cancer
• Ulcers
• Impaired immune function

The NIOSH report doesn’t mention an increased risk of divorce due to work-related stress, but it seems like a reasonable assumption. We’ve previously reported on careers with the highest divorce rates, and the list includes some pretty stressful jobs.

Create Your Own Stress Ratings for Jobs

A list of stressful or less-stressful jobs is interesting, but it’s just a starting point.

When considering a job, you have to look at its working conditions, including your supervisors.

Then you have to take those personal factors into account.

Finally, you have to consider how much stress you'll tolerate for how much pay.

I get stressed just thinking about the whole process, so I think I'll stay home and continue to avoid jobs.

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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11 Ways to Get Free Books, Movies and More from Amazon

Every time a box from Amazon shows up on the front porch, I get excited.

For many people, especially those of us who live in rural communities, Amazon offers an easy way to get what we need, from clothing to electronics to groceries.

And no matter where you live, it’s pretty cool to be able to simply order what you need and have it arrive on your doorstep a few days later.

But no matter how awesome it is to save money shopping on Amazon, getting stuff for free is even better.

How to Get Free Stuff From Amazon

Who doesn’t love free stuff? Here are 11 freebies you can get from the online retailer.

1. Free Albums

If you love music, check out the free album listings on Amazon. Simply sort the list by price, making sure to select the “low to high” ranking feature, and you’ll see all the free options first.

You’ll see music from all genres, so you can find something to enjoy no matter your taste, from Christmas collections to metal albums.

2. Free MP3 Singles

Enjoy a huge library of free, downloadable MP3 singles. When we checked, there was everything from Blondie to She & Him to the Tbilisi Symphony Orchestra.

If you subscribe to Amazon Prime, you'll find even more songs you can download for free!

3. Free or Low-Cost Music From New Artists

If you're at the cutting edge of the music scene (or want to be), check out the deals offered under “Artists to Watch.”

Amazon editors select a number of albums they think are likely to be big this year. Current selections include Royal Blood, ODESZA, The 1975, KONGOS and more.

If you’re an Amazon Prime member (or enjoying a 30-day free trial), you can score these albums for free. Otherwise, you can get them at a special discount from their regular price.

4. Free Movies and TV Shows

Once you pay for your Amazon Prime membership (or snag a 30-day free trial), you can watch more than 40,000 free movies and TV shows via Amazon Instant Video.

5. Free Kindle Ebooks

Grab something new to read or take a chance on a new author.

Every day, new freebies pop up in the listings. Some are permanently free ebooks, which the author offers in hopes that you’ll buy the next book in the series, while others are limited-time deals.

Check out the top 100 free ebooks or sort ebooks in any category from “low” to “high” prices to see what's available. You’ll see tons of options, from books of vegetarian slow cooker recipes to romance novels to career planning books to mysteries.

6. Free Kindle Lending Library

Another perk of Amazon Prime membership (or again, the free trial) is that you can borrow one new book each month out of the 800,000 in the Kindle Owners’ Lending Library.

And it's not just a collection of unpopular books that don't sell. The library includes more than 100 bestsellers; for example, it has the full collection of Harry Potter books.

7. Borrow a Book from a Friend

Just as you can borrow or lend a paperback book to a friend, you can also lend an ebook.

This little-known service allows you to share a Kindle ebook purchased from Amazon with a friend for 14 days. The borrower doesn't even need to have a Kindle; they just need to download a free Kindle reading app.

To loan your book, go to the product page from your Amazon purchase and select the “loan” option. Once it's loaned to a friend, just like a regular book, you'll be unable to read it until it’s returned. You can only loan each book once, so think about who you’d most like to share it with!

8. Free Shipping

When you order physical products, you generally want to receive them cheaply and quickly as possible.

If you're an Amazon Prime member, you’ll get free two-day shipping on every order. Even if you’re not a Prime member, just bundle your orders so they add up to more than $35, and Amazon will give you free regular shipping.

9. Free Stuff With Points

You can redeem credit card points from a number of different cards (including Amazon.com Rewards Visa Card, Citi ThankYou Rewards, American Express Membership Rewards, Cashback Bonus from Discover and Chase Ultimate Rewards) right on Amazon.

Simply select “points” as a payment method when you check out. You don't need enough points to pay for your full order; if you only want to use points to cover a portion, you can specify that option.

Keep in mind that points cannot be used for all products on Amazon. Kindle downloads, AmazonFresh, Subscribe and Save and pre-orders are all exempt. But if you do a lot of shopping on Amazon, you might prefer to earn credit card rewards you can redeem there!

10. Amazon Student Benefits

In college? Sign up for Amazon Student to enjoy great benefits only available to students. You can try the program for six months for free, and then it becomes a half-price Amazon Prime membership.

You’ll get free two-day shipping, photo storage, streaming TV, movies, music, and other benefits (though not all benefits apply during the six-month trial period -- music, movie and TV benefits are excluded).

Another cool benefit? You’ll get $10 for every other student who signs up using your link!

11. Free Photo Storage

Enjoy a three-month free trial of Amazon Cloud Drive's unlimited storage plans for your photos, videos and files. You can also share photos a number of different ways, including Facebook, email and other options.

If you’re a Prime member, you’ll get unlimited free photo storage as well as 5GB of storage for videos and other files.

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!

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

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Americans Are Freaking Out About Retirement, but it Doesn’t Have to Be Scary

Americans aren’t just worried about when they’ll be able to retire. They’re nervous about if they’ll ever be able to retire.

That’s the grim story, according to a new survey from GoBankingRates that asked 2,500 adults about their biggest money fear. Twenty-two percent of those surveyed said “never being able to retire” was what they feared most of the financial options listed.

When GoBankingRates asked the same question in 2015, the biggest fear reported was living paycheck to paycheck. Fear of not being able to retire was in third place.

In the new survey. more men than women said their greatest fear was not being able to retire, while more women than men chose “always living paycheck to paycheck.”

Millennials ages 25 to 34 and adults ages 45 to 64 were mostly concerned about whether they could retire. The oldest group surveyed, those 65 and up, said their biggest fear by far was “losing all of my money in the stock market.”

Another interesting distinction in the GoBankingRates survey is its breakdown of results by region. In the western U.S., never being able to retire was the biggest concern. In the Midwest and South, respondents’ top fear was tied between retirement and living paycheck to paycheck. But in the Northeast, living in debt forever was the top fear.

Retirement Is Scary Now, So You Better Get Ready

You can wish for the days of jobs that came with pensions, but Americans should probably spend that time getting real about what it’s going to take to prepare for retirement.

While Social Security isn’t going anywhere in our lifetime, the benefit you receive depends on what you put into it over the years. Otherwise, it’s up to you to sock away the recommended six times your salary by the time you’re 50.

What can you do to calm the heck down and get ready for retirement?

Get to know your workplace’s 401(k), especially if your employer matches a portion of your investment. If you can’t get a 401(k) at work or you’re self-employed, set up an IRA and automate your contributions so saving becomes a habit. If you’re a freelancer or business owner, definitely start saving. Today.

If you’ve taken care of the basics of saving for retirement, a robo-adviser like Blooom can help you keep an eye on your investments. If you want to be conservative with your retirement accounts but still want to try your hand at investing, a tool like Stash or Acorns can help you get started with just a few bucks at a time.

Don’t wait to start preparing for retirement. It may seem far off now, but it’s better to worry about it now than later in life, right?

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

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Should it Be Easier to Sue Your Credit Card Company? The House Just Said No

Congress has taken the first step to block the Consumer Financial Protection Bureau’s new rule that would give consumers the right to sue their banks or credit card companies and prevent them from getting trapped in complex arbitration with their banks.

On Tuesday, the House of Representatives voted 231-190 to repeal the rule via the Congressional Review Act, according to The Hill. The Congressional Review Act allows lawmakers a final say on new federal regulations. If Congress doesn’t like a new rule from a federal agency when it gets published in the Federal Register, members have 60 legislative days (days when Congress is actually in session) to roll it back by a majority vote.

The vote to repeal came just six days after the CFPB rule was published in the Federal Register.

What’s the Arbitration Rule?

The new CFPB rule wouldn’t prohibit arbitration clauses by banks, so long as those clauses still allowed customers to join class-action lawsuits.

The CFPB has emphasized that arbitration can be prohibitively expensive for customers who have been wronged, while the small-claims process can be too cumbersome to be worth the pursuit.

Allowing consumers to join class-action lawsuits gives them the ability to seek compensation when their accounts have been mishandled.

The Congressional Review Act was established in 1996, but until 2017 had only been successfully used one time. The repeal vote now goes to the Senate.

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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Is an Annuity the Worst Investment a Young Person Can Make?

One of the best things that my mom ever did for me as a young adult was start an investment strategy for me.

She wanted to get me started with investing so she set up some investment account with her financial advisor for my benefit.

At the time, I was young, clueless and completely indifferent.

But when I began my career as a financial advisor I finally became very interested in what investments I had. So I did some inquiring.

Turns out, my mom's financial advisor was purely an insurance agent and the “investment” I had was a fixed annuity paying 4.5%.

I remember thinking to myself, “Why does a 24 year-old need a fixed annuity?”

Turns out it was a very legitimate question.

What is an Annuity?

Annuities are another form of retirement savings, just like IRAs, 401(k)s, stocks, bonds, mutual funds and savings accounts. They're tax deferred, and come in a variety of types, with fixed, variable and equity indexed being the most common.

• Fixed Annuities act like a savings account. There is a certain amount deposited in the account, and that money earns interest. The interest is added to the value of the account and helps the account grow over time
• Variable Annuities act more like a mutual fund. The annuity holder selects the accounts they want to fund the annuity and puts a certain amount of money into each of those accounts. They make money based on how well those funds do.
• Equity Indexed Annuities act like a hybrid of fixed annuities and variable annuities. They offer downside protection by protecting your principal, but also limit your upside gains.

Annuities are thought of as being best for people who have large amounts of money, and who can afford to diversify their retirement portfolio. Typically, this describes older individuals that have accumulated some nice savings. But is that the only demographic that can benefit from an annuity?

Young People and Annuities

Whether a young person should purchase an annuity or not really depends on their financial situation and long-term goals.

For young people who have short term financial goals and not a lot of liquid assets, an annuity doesn't make any sense at all. Because of the penalties described below, a young person would be better off with a regular savings account for short term investing.

However, if a young person is financially stable and looking to have a diversify their retirement accounts, the equity index annuity or variable annuity could be a viable option. Notice I say “could be”, not “most definitely”. A fixed annuity, on the other hand, doesn't make sense at all.

Note: I would never choose an annuity over a Roth IRA or a 401k. The tax-free benefit of the Roth and the pre-tax benefit and convenience of the 401k make both of these first-stops. But if you already have these well-funded, an annuity can be a great place to stash more away for retirement.

Annuity Penalties – Read the Fine Print!

There are some penalties involved for using funds from an annuity, either for early withdrawal or withdrawal before age 59 ½.

Most annuities have a surrender period, ranging anywhere from 5 to 10 years. The penalty for withdrawing before the surrender period has passed varies with each annuity, so make sure you understand the surrender charges that are written into your contract.

The federal government also charges a 10% penalty if you withdraw any of the returns/profits of your annuity before the age of 59 ½.

If you plan to leave your money in the annuity until retirement age, then these penalties are not an issue. But still, it's something to be aware of: annuities aren't as flexible as other forms of retirement, that may let you borrow or withdraw for emergencies or in other special cases.

Why I Cashed Out My Annuity

The thought of only making 4.5% on my money was all I needed to cash out my annuity. I was too young and there was too much time on my side to be capped at such a low rate. (Ironically, many investors drool over making 4.5% nowadays).

When I called the insurance company to inform them of my decision, they warned me about the penalties that I would have to pay and how I may not ever get such a high rate.

It didn't matter. The decision was made.

I was taking the money and opening a Roth IRA.

Should You Buy An Annuity?

If you're young and don't mind some fluctuation in your investments, it's hard for me to make the case that an annuity makes sense. Especially now, since interest ratess are so much lower.

Now, if you absolutely hate the market and you love everything about the word “guaranteed”, then annuities might be right up your alley and we can help you obtain quotes for different annuity plans to best meet your needs. Just remember that annuities are a long-term investment, so educate yourself before investing in one.

The post Is an Annuity the Worst Investment a Young Person Can Make? appeared first on Good Financial Cents.

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When You Should Buy an Annuity: 5 Real Life Scenarios

Many advisors think they're doing their clients big favors by telling them that they'll never put them in an annuity. And with all the negative press that annuities get, it's not too surprising.

However, I think annuities are fantastic – in the right situation.

There are at least 15 reasons why some people shouldn’t buy an annuity. If you’ve done much research on the subject, you’re probably already aware of a few of them.

But you also need to know that annuities serve very specific purposes, and if you happen to fall into one of these scenarios, then an annuity can be a game-changer:

1. The stock market freaks you out

Typically when a financial advisor offers you a guarantee, you have to tread carefully. But if just watching CNBC elevates your blood pressure too much, then an annuity is the answer.

Equity-based investments tend to fluctuate in value, which is to say that they can go down as well as up. But annuities can protect your principal value, ensuring that your investment remains fully intact to earn income in the future.

This can be especially important if you are very close to or already retired. Annuities can provide an immediate income and eliminate the worry of making up potential losses.

Does this describe you? If you think you might benefit from an annuity, then I strongly recommend you work with a reputable agent to find the right terms for your unique situation. Fill out this simple quote form and we'll put you in touch with someone you can trust.

2. You want to know to the penny how much interest you're going to make

Annuities – mostly fixed annuities – offer guaranteed returns. Once again, if a steady income is your primary motivation for making the investment, annuities can provide just that.

Some annuities will provide you with a variable return, allowing you to participate in higher risk/higher yielding options, but will also assign a guaranteed minimum return. This might be just what you're looking for.

Fixed annuity rates usually pay more than bank CDs, although you'll have to lock up your money for 3-5 years to get it. Last year I had a client that wanted absolutely nothing to do with the market and wanted a guaranteed return. CDs were paying nothing and the best rate I could find him was a 5 year fixed annuity paying 3%.

I even tried to talk him out of buying it but that was the only thing that would make him and his wife feel safe (he had a bad experience with a previous advisor). If a guaranteed is what you're after, an annuity might make the most sense.

Does this describe you? If you think you might benefit from an annuity, then I strongly recommend you work with a reputable agent to find the right terms for your unique situation. Fill out this simple quote form and we'll put you in touch with someone you can trust.

3. You want guaranteed and predictable income

As I wrote earlier, annuities are investment contracts, and one of the more important provisions you can include is guaranteed income. You can do this with immediate annuities or the income riders that fixed index annuities offer.

You can buy an annuity and have it begin paying out an income stream immediately. Some deferred annuities with income riders will increase each year until you decide to start taking an income (like how your social security benefit increases each year you don't touch it).

With annuities that offer an income stream, you'll know exactly how much you're going to get and for how long, once you decide to take it.

This is an excellent option in retirement since it operates as something very much like a standard pension. The big difference though, is that unlike a pension, if something happens to you or your spouse, the remaining funds would be passed on to your family.

Does this describe you? If you think you might benefit from an annuity, then I strongly recommend you work with a reputable agent to find the right terms for your unique situation. Fill out this simple quote form and we'll put you in touch with someone you can trust.

4. You can't get life insurance (and want to leave more to your heirs)

You can use an annuity to provide some of the same benefits as a life insurance policy. But, because an annuity is an investment contract, you don't need to qualify for it the way you do life insurance.

If you have a health-related condition that makes life insurance impossible to get or prohibitively expensive, an annuity might be a really good alternative.

Name your spouse as a beneficiary and the contract will automatically pass to him or her after your death.

Some annuities also offer death benefit riders that can pay out a bit more than others. With an annuity, you won't get as much death benefit as a life insurance policy, but you will get some.

Does this describe you? If you think you might benefit from an annuity, then I strongly recommend you work with a reputable agent to find the right terms for your unique situation. Fill out this simple quote form and we'll put you in touch with someone you can trust.

5. You want long term care protection, but don't want to pay out of pocket

With people living longer than ever, there is growing concern for long-term care. Straight long-term care insurance policies are expensive, particularly as you get older.

Most of my clients who have purchased long term care policies have done so because they had a personal experience with a loved one (usually a parent) that spent time in a nursing home. For them, purchasing the insurance was a no brainer. For others, however, learning how much a premium costs each month is enough to convince them to risk it.

But there's another solution: buy an annuity. Here are two to consider:

1. Hybrid Annuity or Insurance Products w/ LTC Benefit. There are products that offer either an insurance benefit to your heirs or a guaranteed return (albeit small) as the primary function. In the event you needed nursing home care, then policy would convert to a LTC policy paying a portion of the costs for a determined period of time. The amount and time depends on how much you pay up front and your age. Clients like this option because it's not a sunk cost of paying the LTC premiums each month and offers some flexibility of getting your money back if you need it.
2. LTC Double Benefit from Income Riders. For the annuities that offer a guaranteed income stream in the form of an income benefit, some carriers will also offer a “LTC doubler” benefit. How this works is let's say that your income benefit is determined to be $20,000 per year from the annuity, and you needed LTC care. Instead of $20,000 per year, your benefit would then double to $40,000 per year while you're in the nursing home. This benefit would last for 5 years and then revert back to the original $20,000 annual benefit lifetime income. Every carrier is different so it's important to understand all the moving parts.

Both of these options aren't meant to completely pay for 100% of your LTC costs, but it does help pay a portion of it.

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15 Reasons Not to Buy An Annuity

Hopefully I've convinced you that annuities do serve a purpose, and can be a great option for some people. But they don't get a bad rap for nothing, either. Here are 15 reasons why you might not want to explore the annuity side of things.

1. You can invest your own money

If you can and are willing to invest your money – even if only through mutual funds and exchange traded funds – you don’t need an annuity. Annuities are excellent for people who either know little about investing, or want guaranteed returns.

2. You’re conservative with spending

Some people simply don’t know how to manage money, and an annuity is a perfect way to avoid burning through all of their retirement savings. Annuities are long-term contracts, generally set up specifically to parcel out money for the rest of your life.

But if, on the other hand, you're pretty good at managing your own money, an annuity might be restrictive and unneccessary.

3. You aren't comfortable paying a lot of fees

Annuities can provide many valuable benefits, but they do come with a price. Unlike mutual funds (where you can buy the no-load and low-load funds) or certificates of deposit (where there will be no investment fees at all), annuities tend to have several fees associated with them.

Here's the kicker though: many of these fees are hidden, so that you never really know what you're paying unless you read the 157 page prospectus.

Side note: If you suffer from insomnia, I hear keeping a copy of an annuity prospectus on your nightstand is a great remedy.

You should also remember that this is a very long-term contract, and that there are surrender charges that can be as high as 20% (but usually in the 8-10% range).

All of these fees can reduce your investment and returns if you end up in an annuity that doesn't perfectly match your financial situation. Make sure you get quotes from a reputable agent, and that you understand what you're buying!

4. You want pure investment returns

Though insurance agents are fond of telling people that annuities offer guaranteed investment returns, those guarantees come at a bit of a price. These guaranteed returns can be well below what you can typically get in investment markets, but that's the same if you choose to save your money in a CD.

Additionally, these guaranteed returns can come with limited upside gain. For example, though a given market index may return 12%, the insurance company may cap your return at 9% (some are as low as 3% right now).

And who gets the extra investment return that you didn’t? The insurance company, of course. If you don’t like that kind of arrangement, you'd do best to avoid annuities entirely.

5. You want control of how your money is invested

As a rule, annuities are not investment democracies. In fact, the insurance company will invest your money in the insurance company's equivalent of mutual funds. Only they're typically not publicly traded mutual funds, of the kind you will find with your friendly, neighborhood investment broker.

The insurance company will usually choose the funds, and even the allocations, leaving you little choice as to how the money is invested.

If this seems somehow unfair, you have to remember that annuities are primarily designed for people who don’t know how or don't want to invest their money. And for that type of customer, having control over their investments is a non-concern.

6. You don’t like strings attached to your investments

Annuities are not at all like mutual funds. When you invest in mutual funds, you invest your money, the terms and fees are commonly understood, and you can generally exit at any time you like. Annuities however are contracts that come with numerous stipulations. For the most part, those stipulations are put in place to protect the insurance company.

Surrender charges are an excellent example. If you know that you will have to pay an 8% charge in order to liquidate your annuity, you’ll probably never do it – especially if you paid a similar fee when you first invested in the annuity.

Such stipulations attach strings to your investments, and remove your ability to make investment changes after the fact.

7. You have no need for additional tax-deferral

Much like IRAs and other tax-favored retirement investment vehicles, annuities provide tax deferral of your investment earnings, allowing your money to grow without being reduced by annual income taxes. One major difference however is that you will not get a tax deduction for your contribution to an annuity the way you will with conventional retirement investments.

If you are comfortable with the amount of money that you have in tax-deferred investments, you have no need to gain additional tax deferral through an annuity. And for what it’s worth, at least some of your retirement money should be held outside of tax-deferred accounts. That will give you access to at least some of your money without having to pay taxes on the withdrawal. Think of it as a form of income tax diversification for your retirement.

8. You don’t believe the one-size-fits-all hype for one minute

Another favorite pitch of insurance agents is that the annuity they are offering will solve all of your problems.

Newsflash: there is no investment product in existence that will solve ALL of your problems.

If you are being given that kind of sales pitch, run away as fast as possible.

9. You’re only being offered one product from one company

Investing your money is something like buying a new car. You’ll want to look at a lot of different makes and models before settling on your ultimate choice. And naturally, you’ll do the same thing if you’re looking to invest in stocks or mutual funds.

If you’re working with an insurance agent, and you are being offered only a single annuity product from one company, it’s likely that agent has only one product to sell – the one he's offering. Chances are that product will not work for you, and you need to move on.

10. You came in to buy life insurance but you’re being sold an annuity

There’s usually one major reason why an insurance agent will attempt to sell you an annuity when you are looking for a life insurance policy: The agent will get a far bigger commission on the annuity than he will on a life insurance policy. For most people, even if you bought a 5 million dollar life insurance policy, the agent would make more on an annuity.

That may be really good for the agent, but it’s really bad for you.

11. You’re not entirely sure of the terms of the annuity

There isn’t just one type of annuity, there are many. Each of those annuities comes with a battery of its own provisions and stipulations. Make no mistake about it, annuities can be extremely complicated.

If you have any doubts at all about the annuity you are being offered, or certain provisions within the annuity that are not adequately explained, you need to walk away. Rest assured that if you are uncomfortable with one provision, there are probably others that simply have not caught your attention.

Anytime you invest money anywhere, you need to be absolutely sure of what it is you’re getting into, what specific benefits you will receive, and what risks you are taking on in exchange for those benefits.

12. You’re not concerned about outliving your money

One of the biggest reasons for anyone to buy an annuity is to avoid outliving their money. You purchase an annuity, and you begin receiving income payments as of the certain date. Those income payments can go on for the rest of your life, which means you will never run out of money.

But if you have enough money in savings and investments that the prospect of outliving your money is no better than remote, then an annuity is not for you.

13. You don’t want an investment that will lock you in

Typically, most people will invest their money in a given investment vehicle for a few years, and then move on to something else. This is not how annuities work. Not only are annuities contracts, but they generally will lock you in for the rest of your life.

Should you change your mind after five or 10 years, the only way to get out of the annuity will be to pay a stiff surrender charge. The charge may be high enough to make it impossible for you to profitably shift into a different investment vehicle.

14. The insurance agent is pushing too hard

Regrettably, for some life insurance agents the sale of life insurance is just a loss leader. The real money is in selling annuities. The sale of a life insurance policy could get the agents a few hundred dollars – the sale of an annuity could get him a few thousand dollars.

If you sense that the agent is pushing you to hard toward an annuity, there’s an excellent chance that he is doing that more for his own reasons than for your benefit.

Never allow anyone to push you into any type of investment. If you sense that the agent is trying too hard to get you to purchase an annuity, this should set off alarm bells in your mind, letting you know that it’s time to make an exit.

15. Your gut is telling you that this isn’t the right investment for you

If after considering an annuity, and all of its various provisions, you’re still feeling some doubt inside, you need to walk away. Sometimes the reason that you have a bad feeling about something isn’t so much about a disturbing provision or two, but rather about the complexity of the whole deal.

If you feel the entire annuity contract is simply too complicated when taken as a whole, that’s sufficient justification to avoid entering into it. With any type of investment you get involved with, it’s important to be able to sleep peacefully at night.

Moral of the Story:

Most people shouldn't buy an annuity. But there are certain people in certain circumstances for whom an annuity would be a great choice. If you have questions about annuities, whether they would work for you, or need an annuity quote, just ask.

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How to Assess Your Financial State Without Frustration or Jealousy

My family has had the wonderful opportunity to visit a lot of remote relatives and friends over the past month or so. We’ve visited their homes, stayed in guest bedrooms, camped in yards, taken meals in their kitchens, and had wonderful conversations that lasted well into the night.

Whenever you visit the home of a friend or loved one, it’s hard not to compare that home to your own on some level. Perhaps the home you’re visiting is bigger, or maybe it’s smaller. Perhaps you like the layout of the visited home, or perhaps you vastly prefer your own home’s layout. No matter what you conclude, though, the truth is that you’re comparing a big aspect of your own financial state to theirs.

We fell into this trap ourselves. We stayed at the home of one of my cousins who has a very large portion of her net worth tied up in her home. She lives in a beautiful large home in the outer Chicago suburbs, one that dwarfs our own home. It was easy to compare this house to our own and feel somewhat inadequate and, perhaps in some ways, a bit jealous. Just a few days later, we visited someone who lived in a small old house that was substantially smaller than our own, giving us the opposite feeling.

In reality, both comparisons were really worthless. Neither one really said very much at all about our true financial health. Seeing that someone else had a larger home with more expensive furnishings didn’t make us financial failures, and seeing that someone else had a smaller home with less expensive furnishings didn’t make us financial successes.

The same thing is true when it comes to cars. I’m still driving a SUV that I bought off of Craigslist almost eight years ago. I’ve kept good care of it, but there are a few little problems cropping up – it needs some shock work done on it, there’s a little patch of rust near the gas port, and the passenger headlight cover needs replaced. It’s definitely an older car at this point.

When I pull up next to someone else’s rusty car, that doesn’t make me a financial success. When I pull up next to a brand new model, that doesn’t make me a financial failure.

Why? The truth is that the financial state of others has almost nothing to do with your own personal financial state. What others do with their money really doesn’t matter at all in regard to whether you’re prepared for emergencies in your life, whether you’re prepared for unexpected unemployment, whether you can provide for your needs and some of your wants, and whether you’re getting ready for retirement.

All of those things are on you. They have nothing to do with what some other person is doing with their money.

Let’s step back for a second and look at that person you know with the fabulous house. Perhaps you look at that house and wish that it was your own house, or you feel guilty because you don’t have that kind of success.

For one, do you have any idea as to what kind of debt load that person is carrying? How big are that person’s monthly mortgage payments? How big is their tax bill? How are they able to afford that and make ends meet?

Perhaps they have a great job. Well, what did they sacrifice to get that job? How many years did they spend in training and education for that job? How much of their life did they spend studying and preparing and networking to have that great job?

Maybe their parents helped pay for it. What kind of family dynamic is that like?

The thing is, no matter what you see on the surface, the underlying realities of the lives of other people are left unseen. You don’t see the struggle to keep the bills paid. You don’t see the career stress. You don’t see the family dynamics. You don’t see the hard choices. You just see the house.

Because that story and that set of hard choices is bound to be substantially different than your own, it’s almost impossible to realistically compare your own situation and your own choices to it. You can’t really judge your own life by the gorgeous house that your cousin has. It doesn’t make any sense. Their entire life follows a different course than your own.

You might be jealous of some aspects of someone else’s life, but it has nothing to do with your financial health whatsoever. Comparing your financial state to someone else’s simply has too many life variables for it to be meaningful in any way. They have invested their life’s energy in far different ways than you have. They have had different opportunities than you. They’ve also had different setbacks than you. They have different interests and different responsibilities than you. A straight comparison means little.

Instead, the best place to make a financial comparison is to your own past. There is no one on earth that is closer to your investment of life energy, opportunities, setbacks, skills, interests, and responsibilities than your past self. Your past self is the best point of comparison you have.

Here’s why.

Comparing your current financial state to that of your past usually indicates some form of positive progress. For most people, their financial state is slowly heading in a positive direction once they are finished with schooling. It might not be a rocket ship, but it usually takes the form of steady progress with some hiccups.

Since there’s nothing hidden, you can clearly see the impact of your own good financial moves; it’s hard to see that when you’re comparing yourself to others. All you really have when you compare your financial state to that of your friends are the visible signifiers of wealth. Your car. Your house. Your clothing. Your gadgets. None of those things represent the health of your bank account or the balance of your retirement fund, which are true signifiers of financial health. Remember, a person can have a giant house and still have a negative net worth if they’re up to their eyeballs in mortgage and student loan debt, while a person driving a beater and living in a tiny apartment can be a millionaire.

It’s hard to be jealous of yourself. Many of the negative feelings we feel when we compare ourselves to others simply disappear when we focus on self-comparison. It’s hard to feel jealous of ourselves. We might feel frustrated, but that frustration comes only from a sense of knowing that we can make better choices for ourselves. We can’t feel frustrated about the special advantages that the other person has when that other person is us.

The frustrations you may feel when examining yourself are ones that you can resolve through action. Any time that you do any type of self-evaluation, you’re likely to run into some frustration. You’re not performing as well as you’d like. You don’t have the results you want. That’s okay. The reality is that such frustrations are far easier to manage if you’re comparing to your past self than to others because the one big variable there is your behavior. You can choose to make different choices and you will see different results, because you’re comparing yourself to a version of you that perhaps didn’t make the best choices. In the end, nothing stands in your way but your own choices.

So, the key question here is this: how does a person use themselves as a basis for determining their own financial health?

It’s actually pretty simple. Just go back to the central tenet of personal finance: spend less than you earn. If you are consistently doing that, you are headed in a healthy financial direction, and you can make sure you’re doing that by comparing your current financial state to your past financial state.

How do you make that comparison? There are a number of ways to do it.

Compare your overall debts. Simply add up your debts that you owe right now, then pull out some older statements (say, from six months ago or a year ago) and add up that total, then compare the two. Have you spent the last six months or a year making positive progress on your debts?

Quite often, what you’ll find here is that your large debts, like student loans or a mortgage or a car loan, have seen a drop in balance, while smaller and more flexible debts, like credit card debt, may have gone up and down. Over the course of a longer period of time, though, most people see a gradual decline in their debt load with an occasional big spike when they make a major purchase.

Your goal, if you want to improve your financial health, is to make that steady decline go even faster by focusing on debt repayment, or to make those spikes smaller by saving in advance for upcoming big expenses (like saving up for a car or for a house down payment).

Compare your account balances. In a similar fashion, simply add up the balances of your current savings, checking, investment, and retirement accounts, then go find your older balances and do the same. You can also add in the value of your major assets, like your home and your car. Have you spent the last six months accumulating wealth in a noteworthy fashion?

Again, what most people will find when they do this is that their accounts are slowly rising over time, though their frequently used accounts (their checking account, for example) fluctuates a great deal. This indicates positive progress over time, but is it enough?

Your goal, if you’re seeking to improve your financial health, should be to find ways to increase your contributions to your accounts. Bolster your savings with some extra cash for your emergency fund. Sock away a higher percentage of your income into retirement savings. Those types of moves will see your account balances increase at a faster and faster rate.

Compare your net worth. Of course, you can combine the first two numbers here together to get a picture of your net worth. Simple take the value of all of your accounts and assets and subtract from that the total of your debts. That’s your net worth – how much you’d be left with if you sold everything.

Again, a financially healthy person should see a slow and steady rise in their net worth. Debt reduction can push it forward, as can further contributions to your accounts. Additional efforts in either area will see your net worth begin to accelerate in a positive direction.

Compare your monthly cash flow. A fourth strategy is to look at your monthly cash flow. How much money do you bring in each month? How much money goes “out” each month – meaning how much money is spent? You keep the money, in effect, when you put it into savings or retirement or some other investment meant to return money. Everything else just goes away.

How is this useful? If you have a positive cash flow, then you can actually withstand a reduction in income pretty easily. If you have an enormous positive cash flow, you’ll likely be able to easily handle a sudden career change or other major lifestyle change without skipping a beat. Without much monthly cash flow, you’re walking a tightrope where lifestyle and career shocks can send lots of things tumbling.

Obviously, the better your monthly cash flow, the better off you’re going to be. You can drastically improve that cash flow by paying off debts, cutting back on spending, and contributing more to retirement on a regular basis. Over time, you want your cash flow to be more and more positive.

Compare your total monthly income. Another thing to consider is your total monthly income, which is basically all of the wages, interest, dividends, royalty checks, and other earnings you bring in during a given month. This can be useful if you’re focused on building your career, building a business, or building lots of income streams for you and your family.

Just go through your various accounts and take note of the deposited money in each one. How much pay did you bring in? How much interest? How much in dividends? How much in monthly ad payouts for your website? How much in royalties for your books? How much in Patreon support? Don’t worry about the increase in the value of your assets – if you have 20 shares in a mutual fund and they go up $2 a share, don’t count that $40. Focus instead on income generated by your work or by your previous investments of money, time, and energy.

This is a valuable thing to track when you’re trying to really push your career or get a side business going. It can show you the reality of your progress.

Which number should I use? It really depends on your personal life goals. If you just want an overall assessment of financial health, use your net worth. If you’re focused on accumulating savings for retirement or for other goals, focus on your account balances. If you’re wanting to eliminate your debts, focus on your debt balances. If you’re worried about day-to-day financial stability and planning for major life changes in the near future, track your cash flow. If you’re focused on your career and business growth, keep an eye on your monthly income. Not everyone has the same goals, so not everyone should use the same numbers for tracking.

If you’re unsure what to track, a person’s net worth is a really good single number to track. It’s just the sum of all of your assets minus all of your debts. That number alone is a pretty good indicator of financial health, and when that number grows, you know you’re making financial progress no matter which way you choose to track it. However, there is some “noise” in that number, so if you’re really focused on one area, using a number targeting that area makes far more sense.

The best way to get started is to start recording those numbers right now. You might not necessarily be able to access the older numbers needed to make these calculations today, and that’s okay. What you can do is write down the numbers you want to focus on now and then compare back to them in a few months.

Since you’re just writing down balances, I suggest using a tool like Google Docs or Google Sheets to record those numbers. Simply write down the date and the number that you’re keeping track of. In a few months, do it again, and then compare that fresh number with the older ones. Are you making progress? What can you do to accelerate that progress?

This is how you can fairly assess your financial state. You’re slicing through all of the unfair elements that come with comparing your financial state with other people. You don’t have to account for differences in life history, differences in luck, or anything else. Your comparison point is now you. You can’t be jealous or frustrated with yourself in any destructive way. Instead, you can channel any negative feelings you might have directly into personal change, which is the true key to financial success.

Good luck on your financial journey going forward! May it involve far less stress, frustration, and jealousy than before!

The post How to Assess Your Financial State Without Frustration or Jealousy appeared first on The Simple Dollar.

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