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Cigarette smoking is a health-harming habit that many, unfortunately, find difficult to give up.
One factor that may help some kick the habit, however, is cost.
A recent study from Drexel University found that a dollar increase in the cost of cigarettes makes smokers 20% more likely to quit.
Researchers analyzed the habits of over 600 smokers from 2001 to 2012. They came from six different cities and ranged in age from 44 to 84.
“Given our findings, if an additional one dollar was added to the U.S. tobacco tax, it could amount to upwards of one million fewer smokers,” Amy Auchincloss, one of the study’s co-authors, said in an article in Drexel Now.
The study also found that heavy smokers (those who smoked more than half a pack daily) reduced the average amount of cigarettes they smoked each day by 35% with a $1 increase in price.
“Since heavy smokers smoke more cigarettes per day initially, they may feel the impact of a price increase to a greater degree and be more likely to cut back on the number of cigarettes they smoke on a daily basis,” Stephanie Mayne, another of the study’s co-authors, said in the Drexel Now article.
Even though the study focused on older smokers, Mayne said she thinks a price increase on cigarettes would have a similar or more significant effect on younger smokers.
The cost of a pack of cigarettes ranges from location to location. According to 2014 data from the Centers for Disease Control and Prevention, the lowest average cost of a pack — including taxes — was $5.06 in Missouri, and the highest was $10.56 in New York.
Of course, I probably don’t have to tell you that the true cost of smoking goes well beyond the price of a pack of cigarettes. Smoking is linked to a host of health problems — lung disease, chronic obstructive pulmonary disease (COPD), coronary heart disease, stroke and more — which only increases the cost of health care for many smokers.
In fact, the CDC reports almost $170 billion is spent each year on direct medical care for adults due to smoking.
There are even reports that claim smokers have a harder time finding work and earn less on the job than nonsmokers.
Smoking is truly an addiction, which causes many to struggle with quitting, despite the negative physical and financial impacts. For free resources, tools and tips to help you quit, visit Smokefree.gov.
Nicole Dow is a staff 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.
There’s nothing like the smell of chicken on the grill. So many choices. Add a little barbecue sauce to it? Garlic Parmesan or teriyaki?
When you want good chicken — and I mean the really good chicken — where do you go to buy it? Whole Foods Market, right?
Maybe. Maybe not.
For years we’ve heard about the the awesomeness of the chicken you can buy at Whole Foods. I mean, the store is not called “America’s Healthiest Grocery Store” for nothing. It advertises its chicken as raised with:
The company also says its chickens (as well as its other meats) must meet its “5-Step Animal Welfare” rating. That means the animals are raised with room to roam, natural grazing and no added chemicals or hormones. Happy critters, essentially.
Here’s the good news: We don’t have any reason to doubt these claims.
But that awesome chicken at Whole Foods may not be so special, according to a Bloomberg report.
As consumers trend toward healthier, more natural options, producers have caught on. That means there are more chickens being raised and sold that fit the same criteria that have made Whole Foods chicken such a popular product.
Chicken producers like Perdue are raising chickens that live up to the same standards and selling them to Whole Foods, as well as many other markets. In fact, some Whole Foods 365 Everyday Value chicken breasts are packaged at the same Perdue plant that ships chicken to several other stores.
The price. That’s about it.
Even though you can save a little money at Whole Foods by knowing when to shop, you may do better elsewhere. Whole Foods created such a demand for naturally raised, cage-free chicken that it’s become widely available at other stores.
While Whole Foods charges a premium price for its chicken, you can often find the same quality chicken at your local grocer for considerably less.
A quick look at my local Whole Foods online showed that 365 brand boneless, skinless chicken breasts were $5.49 per pound. I popped across the street to our local Publix and found Perdue brand boneless, skinless, cage-free chicken breasts with an all-vegetarian diet and no animal byproducts, hormones or steroids for $3.49 per pound.
All in all, this is a good thing. You don’t have to go to the “healthy” stores anymore to find the responsibly raised meat products you’ve come to trust. Watch your labels at your local supermarket and save big time.
Tyler Omoth is a senior writer at The Penny Hoarder who loves soaking up the sun and finding creative ways to help others. Catch him on Twitter at @Tyomoth.
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.
Wells Fargo just keeps on punching itself right in the gut.
On Aug. 4, the bank disclosed in a regulatory filing that the Consumer Financial Protection Bureau (CFPB) is looking into the possibility that Wells Fargo closed real accounts that customers needed, locking them out of their own money. Several customers have reported in complaints that they’ve experienced financial hardship as a result, Reuters reports.
What else could go wrong for this bank?
Today, the bank is facing claims that it wrongfully locked or froze accounts due to concerns about fraud — and harmed customers in the process.
One customer wrote that their late mother’s debts are delinquent and her mortgage is about to go into foreclosure because the bank’s fraud department locked her account, according to Reuters.
The news of these accounts being closed comes after a huge blow to the company’s reputation: In March, Wells Fargo agreed to pay $110 million to settle a lawsuit that accused the company of opening 2.1 million unauthorized accounts for customers.
On top of the payout, Wells Fargo was fined $185 million.
CEO John Stumpf resigned after the scandal, but new war wounds suggest his exit didn’t do much when it came to damage control.
On July 28, the bank was accused of charging customers for auto collision insurance customers didn’t need — and costing customers $73 million. The bank has vowed to “make customers whole,” but information as to how has yet to be released.
Reuters points out that while Wells Fargo’s past scandals seem to stem from efforts to increase revenue, when it comes to the closed accounts, the bank claims the closings were a result of the company doing its due diligence to protect customers from fraud.
As for its most recent brouhaha, there is no information yet about the next steps the bank will take to resolve the issues with frozen and closed accounts.
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.
Last week, Target launched a line of inexpensive sensory-friendly clothing for kids.
Children with sensory-processing sensitivities often cannot wear clothing decorated with heavy embellishments and scratchy tags because of how their nervous systems interpret sensory stimulation.
The clothes in this new collection feature flat seams, flexible, one-dimensional graphics and heat-transferred labels in place of tags which all help to “minimize discomfort when in contact with the skin.” The leggings also have a more relaxed fit on the hips and a higher rise to fit over diapers, when needed, for older kids.
The new collection is an offshoot of Target’s successful children’s clothing line, Cat & Jack, which the company rolled out last year. The pieces are based around designs already featured in the Cat & Jack collection, so parents won’t have to compromise on fun, kid-friendly style. Low prices are an added bonus and should make it easier for parents and caregivers to begin adding the pieces into their child’s wardrobe.
Items in this sensory-friendly line range from $4.50 to $7 and come in toddler sizes 2T to 5T and kids’ extra-small to extra-large.
In a blog post on the company’s corporate website, Target designer Stacey Monsen and Senior Vice President of Product Design and Development Julie Guggemos explained the motivation behind the collection and the ongoing efforts to design more accommodating items for Target shoppers.
Monsen says she has trouble finding clothes that her 7-year-old daughter, who has autism. “She’s not potty-trained,” Monsen explains. “For pants or shorts, I either size way up, or buy pieces that are all function, no style.”
After realizing that she wasn’t alone in her struggle to find cute, comfortable clothes for children living with disabilities, Monsen decided to bring the need to Guggemos’ attention.
Guggemos was thrilled at the prospect of offering more inclusive pieces to customers.
“While it’s just a few pieces in the line,” Guggemos says, “for some families, they’ll make a huge difference.”
The design team worked with parents of children living with disabilities and various organizations to get a more comprehensive idea of what challenges families face when it comes to clothing. The research will be ongoing as the company works to expand the line to address a wider variety of needs.
Currently, Target offers a limited selection of pieces — a few T-shirts, some long-sleeved shirts and leggings — only available online. However, Guggemos explained that a line of adaptive clothing for children with disabilities is also on the way this fall. That collection may include features such as zip-off sleeves and pieces that open on the side or back for those lying down or sitting.
A Target spokesperson told Disability Scoop that depending on customer feedback and the performance of the sensory clothes in the Cat & Jack line, the company will consider offering adaptive and sensory-friendly clothing in adult sizes.
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.
How long will your retirement savings last? It’s not just about how much you stash away over the years or how you plan to spend it when the time comes.
It’s also about where you spend your golden years.
GOBankingRates examined just how far a $1 million retirement fund goes in all 50 states, using the average costs of groceries, housing, utilities, transportation and health care in each.
The good news: If you retire in Mississippi, Arkansas, Oklahoma, Michigan or Tennessee, your retirement money will last the longest — 25 years or more!
The bad news may not surprise you: Your retirement fund will dwindle more quickly if you settle down in Hawaii, California, Alaska, New York or Massachusetts. While your $1 million retirement savings will last more than 26 years in Mississippi, it’ll last you just under 12 years in Hawaii.
GOBankingRates tallied the average annual expenses for people age 65 and up, then multiplied that number with the cost of living index for each state, calculated by the Missouri Economic Research and Information Center, to determine annual costs by state.
GOBankingRates notes that the average American retirement age is 63 and life expectancy right now is 85, so you should plan for 22 years of fine leisurely living from your retirement savings.
If you’re just starting your retirement savings journey, you may say, “Well how am I supposed to know where I’ll want to live when I’m retired?” Beats me too, dude.
But it’s worth looking at this list to get a bird’s-eye view at how far that mysterious, magical $1 million nest egg would take you in 2017 dollars.
If you dream of retiring to Hawaii and living in retirement for more than a decade, you’ll probably want to work on saving more than $1 million for your golden years. Oh, and how golden they will be. Golden beaches. Golden sunsets. Golden margaritas.
Wait, what was I saying?
Meanwhile, if you have your heart set on, say, Arizona (it’s a dry heat!), that $1 million would last you for just over 23 years.
There are a lot of factors that’ll go into choosing the best states to retire in for you, and many people won’t have the choice to go somewhere new. But by taking a quick peek at what it costs to live in different states, you can start to think about the lifestyle you’ll want to have when you retire — and what it’ll take to get you there.
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.
With low rates on cash savings across the market, is it time to consider using an Innovative Finance Isa (IF Isa) to get a better return on your cash?
Launched in April 2016, the IF Isa gave savers a means to invest tax-free in the peer-to-peer (P2P) market for the first time.
There are now more than 50 providers offering IF Isas – including some of the better known names in the market such as Crowdstacker, LendingCrowd, Lending Works, and Zopa.
In some cases these lenders offer returns of around 5%, much higher than Cash Isa accounts where the highest rate at the time of writing is 2.6% if you lock-in for seven years.
But it’s not just the headline rate you need to consider before opting for an IF Isa.
If you’re used to investing in Cash Isas, there are some important differences to note with the Innovative Finance Isa.
The major difference is that with an IF Isa your capital is at risk and the value of your investment can increase or decrease, depending on how your investments perform. However, the returns on your cash tend to be much higher because of this extra risk.
This means the IF Isa is more akin to a Stocks and Shares Isa. Both are investment products and your funds are not protected by the Financial Services Compensation Scheme (FSCS). With cash savings you are protected up to £85,000 per financial institution.
Plus, it’s worth noting that today’s peer-to-peer market has yet to be fully tested during a financial crisis or a recession.
Mike Allan, director of operations at LendingCrowd, says: “Peer-to-peer investing requires a move up the risk curve away from the protection of savings accounts, which include cover from the Financial Services Compensation Scheme.
“When investors accept the additional risk of investing using peer-to-peer platforms, they may achieve a better return but this comes at a price; volatility of returns will be greater plus access to savings more limited.”
If you choose to invest, remember to always keep aside a pot of readily accessible cash for a ‘rainy day’.
Many people already invest in peer-to-peer without using the Isa wrapper, so what are the advantages of using an IF Isa?
You can invest up to £20,000 in an Innovative Finance Isa during the 2017/18 tax year, and this sum can be split between various types of Isa. For instance, you could save £10,000 in an IF Isa and £10,000 in a Cash Isa during the current tax year. You can also transfer your Isa savings from previous years into an IF Isa if you wish.
By using an IF Isa your investments and any earnings you make will not be liable for capital gains or income tax.
If you were to invest outside of the Isa wrapper, all interest earned from peer-to-peer lending is subject to capital gains and income tax, although the Personal Savings Allowance means most people won’t pay tax.
Under this scheme, lower rate taxpayers can earn £1,000 in interest before being taxed while higher rate taxpayers have a £500 annual allowance. Additional rate taxpayers receive no Personal Savings Allowance, meaning Isa investments are particularly attractive to this group.
Mr Allan adds: “Over time, the compounding effect of retaining and reinvesting the tax-free element of the return will have a positive impact on the growth of the portfolio. Investors can also transfer in Isa holdings from existing Isas and many are doing so by taking additional risk by transferring in from Cash Isas as well as reducing volatility of returns by transferring in from Stocks and Shares Isas.”
I’m a 63-year-old female and have inherited £60,000 from my aunt. I want to invest this to supplement my income in retirement. I have some income from my teachers’ pension and will receive my state pension in 2019. I am cautious about investing as I have never invested before. What do you recommend?
This is an ideal time to review your plans and pay off any debts, says Danny Cox, a chartered financial planner at Hargreaves Lansdown. “When you retire, you should have no debts and a minimum of £10,000 in cash as an emergency fund,” he says. “Cash individual savings accounts (Isas) work well here as the interest is tax-free.”
You should also consider how much pension income you will need. “Unless you decide to change your lifestyle or move abroad, your basic spending needs – such as running your home – are unlikely to change,” he adds.
If income is your main goal, you should also review any options to top up your teachers’ or state pension. “Guaranteed index-linked income is the gold standard, so if you have the option to ‘buy’ more entitlement this is worth considering,” adds Mr Cox.
Justin Modray, founder of Candid Financial Advice, says the important rule is not to invest what you can’t afford to lose. “Provided you invest sensibly, there’s a very good chance you’ll make better returns than cash over five to 10 years, but stock markets are volatile and there are no guarantees,” he warns.
Once you know how much you plan to invest, consider combining assets that behave differently from each other to smooth returns over time. “This would include various stock markets around the world, corporate bonds, commercial property and absolute return-style investments,” he says.
If you are nervous about investing a lump sum right away, consider drip-feeding it in every month and use your Isa allowance – income paid out of Isa investments is tax free.
“You can invest £20,000 within an Isa this tax year and move any money invested outside an Isa across in future tax years,” adds Mr Modray. So if you’ve put £10,000 into a Cash Isa, you can put another £10,000 into a Stocks and Shares Isa this tax year.
There is a high probability that you will still be alive in 25 years’ time and that’s a long time to invest cautiously, points out Dennis Hall, founder of Yellowtail Financial Planning.
“If income (and some capital growth) is desired over that time frame, I’d be investing in something that looked like a balanced fund with income distributions,” he says.
He suggests a mixture of global equities and global bonds – probably split 60/40 – with income distributions. “A single fund would probably suffice, with a small amount held back to meet any short-term liquidity, so £10,000 in cash and £50,000 in a balanced fund would be a simple solution,” he adds.
If you’re happy with the ups and downs of the stock market and to take a longer-term view, consider investing in an equity income fund, says Mr Cox. “It will provide a regular income, which will grow as your capital grows,” he says.
“For every £10,000 of capital you invest, you can expect an income of around £350 a year. My recommendation would be to spread your investment across a range of high-quality equity income funds – for example, CF Woodford Equity Income*, Marlborough Mid- Cap Income and JO Hambro UK Equity Income – for diversification purposes,” he adds.
Investment platforms are also useful, points out Mr Modray. “These allow you to mix and match funds in one account, which is very convenient and usually cheaper than buying direct from fund managers,” he says.
For investors with £50,000-plus to invest, Interactive Investor’s platform (Moneywise’s parent company) is good value as it has a fl at £80 yearly platform charge, which includes two free trades per quarter. Visit Ii.co.uk and www. http://ift.tt/2v2OCvI to fi nd out more.
*CF Woodford Equity Income is a member of the Moneywise First 50 Funds for Beginners. For more income fund ideas, visit Moneywise's FIrst 50 Funds for Beginners.
Do you have a question for the Investment Doctor? email editor@moneywise.co.uk.
Like many people, I spent my college years being extremely frugal.
I did all kinds of things in college to save money. I ate absurd amounts of ramen noodles, as it was an extremely cheap form of calories. I lived in a tiny apartment with as many as seven other people to get rent well below the $100 per month line. I went to all kinds of on-campus events mostly under the lure of free food. I avidly traded textbooks in order to save cash on my own books and try to get more valuable ones for resale purposes.
Those efforts helped me to keep my student loans significantly lower and managed to help me make it through some very thin months in terms of income later in my college career. I lived on very little income and I managed to keep myself fed, keep a roof over my head, and even occasionally have a few dollars for entertainment.
When I graduated and started earning a good salary, everything changed. My spending went off like a rocket. I replaced my whole wardrobe. I bought tons of new gadgets. I moved to a different apartment. I went from commuting on a bike and occasionally on mass transit to owning a shiny new vehicle. I started lots of different collections.
This eventually led me to a very sticky financial position, and it was that very financial mess that led to the birth of this website that you read, as it started as a chronicle of my financial turnaround.
As I look back on the whole mess, though, it’s clear to me that I would have avoided many years of heartache if I would have simply maintained my frugality from college into my post-college years. That one simple move would put me in better financial shape today and saved me many years of stress and mistakes.
I believe this to be true of almost anyone who goes through a period of significant increase in their salary. It’s extremely tempting to inflate your spending along with the inflation of your salary, but in doing so, you end up with the same kinds of financial problems where it’s difficult to make ends meet. That’s why there are so many stories of people out there making $300K or $400K and struggling to make ends meet. They allowed their spending to increase as their salary increased and often made heavy long-term financial commitments along the way (such as a large mortgage).
The reality is that I live my life today much as I should have lived my life after college. My wife and I collectively spend quite a bit less than we earn. We have no debts. We put aside the rest for the future. We have things in our lives that provide contentment and happiness without spending a lot of money.
My biggest regret as an adult is that we didn’t migrate to this kind of life as quickly as possible when our incomes increased and we weren’t forced to remain frugal.
So, let’s say I had a time machine and could go back and talk to my earlier self, just on the cusp of earning a lot more money. What would I tell him?
Every single time you spend money, step back for a moment and put yourself in the mindset of where you’ll be in the future – ten or twenty or thirty years from now.
Will you care at all that you spent money on this thing? Will this purchase create any real positive contribution to your life at that point, especially as compared to not buying it or to a cheaper alternative?
Whenever you experience a temptation to spend more money on something than you would have previously spent, step back and ask yourself this question.
If you’re eating out at a place like Applebee’s instead of preparing a simple meal at home, does that purchase create a real positive contribution to your life? What if you’re going to the same takeout place every single day and dropping $10 instead of bringing your own lunch to work? How is that purchase contributing to your life in a valuable way that you’ll notice in twenty years?
If you’re thinking of buying another hobby item instead of getting more enjoyment out of what you have or borrowing that hobby item from the library or someone else, what value are you getting out of that purchase, and is that value something you’re going to relish in ten years?
This isn’t to say that you shouldn’t spend money on things that are enjoyable now, but the reality is that many things that will have a big positive impact on your life in twenty years are going to be worthwhile now, too.
Make an effort to fill your days with those things. Devote your money and time to things that will pay off in twenty years, or that you’ll reflect on as having a positive impact on your life in twenty years, and toss aside and minimize things that won’t.
This mindset, for example, pushes you to make most meals into simple and healthy fare while saving special meals for truly special events rather than making them ordinary. It pushes you to only upgrade items when they’re producing real additional value for you beyond what you already have. It pushes you to be careful about buying more hobby items rather than using what you have or borrowing items. It pushes you to try to make meaningful choices with your time.
Filter everything through this thought process. Make it a key part of your decision about how to spend your time and your money. Think through your decisions again after you make them, and think through upcoming decisions in the same way.
When you have money sitting idly around in your checking account, it can be very tempting to just spend it on something that seems enjoyable. It’s an extension of that old maxim; the devil finds work for idle hands to do. That’s idle money, and it’ll probably wind up being spent on something unimportant.
The solution to this problem is to find a purpose for every dollar that comes in, then put procedures in place to put those dollars to work as effortlessly as possible.
So, how do you find a purpose for every dollar? The key to this is making a spending plan. Sit down and make a plan for where you want all of your money to go. This is a great theoretical exercise to take on on the cusp of seeing a rapid increase in salary, as you can make decisions about a lot of income without having to deal with patterns you’ve already established and commitments you made.
Let’s say you get a job making twice as much as you make now. Great, huh? Before you jump in and start to see all of that money flowing in, sit down and make a monthly spending plan for yourself. How are you going to spend this income? Rent? Transportation? Utilities? Emergency fund? Saving for retirement? Rapid debt repayment? Food? Hobbies? Where is all of this money going to go?
Then, when you’ve figured out where that money is going, set up automatic payment of many of these things as soon as the extra money starts coming in. Set up an automatic transfer into your retirement accounts. Set up automatic bill payment. Set up an automatic transfer to build up an emergency fund. This way, every single dollar you have is marching off to its intended purpose on its own, without you having to even think about it.
This leaves you with a smaller pool of money for more flexible spending – things like food and entertainment and hobbies – that you can spend as you see fit.
When I was in college, I used to spend long hours going on walks. I’d walk all over town and discover new things each and every time. I’d wander down by the river. I’d wander into a new neighborhood. I discovered this wonderful quiet area on the trails in this large city park that I frequently went to. I’d often take a book from the library back there and read it for hours.
When I started earning more income, I decided I didn’t really have time for that in my life. I started going to a gym instead for exercise replacement. I started buying books. I started going out all the time with my professional peers and spending lots of money.
That seemed like the right thing to do at the time, but the truth of the matter is that all of that was completely forgettable. I have far more memories of – and have received far more long term value from – those afternoons spent wandering around trails, reading books on a tree somewhere, and just exploring – than I ever did from the things I spent far more money on.
So, what do I do when I have a spare afternoon now? I go on a hike. I often have a book from the library in my backpack. And if I have a spare hour or two along that hike, I’ll find a nice spot on a fallen log and read that book.
Here’s the thing: just because your income goes up doesn’t mean you have to change the things that actually bring you joy in life. Keep enjoying the things you were enjoying on a low budget. If you have a hobby you enjoy, keep enjoying it in the same way you always have.
Speaking of hobbies, it can be really attempting to start acquiring lots of hobby things that you couldn’t afford to acquire. You enjoy reading and finally you have enough money to buy a pile of books! You enjoy board gaming and you finally have money to buy an armload or three of board games! You enjoy home brewing and you finally have money to buy a propane burner and a mash tun!
While it’s okay to splurge a little bit at first to buy things that you’ve long planned, don’t let it become a regular thing. Instead, set a hobby budget for yourself – one a little higher than what you may have spent before but not astronomical – and stick to it. Allow yourself to only spend so much per month on your hobbies, and if you have a big purchase in mind, “save” for it by coming in under budget for several months until you have enough to acquire it.
The same thing is true for almost every type of spending out there. While you might be in the market for better replacements and upgrades than before, you shouldn’t upgrade things for the sake of upgrading. Stick to core principles of frugal replacements: make sure that your replacement has a clear purpose that you’re going to use that isn’t met by what you already have, and when you do replace, choose items that are going to be reliable and last for a long time. When you’re buying major items, focus on “bang for the buck” options – for example, Honda and Toyota are great car “bang for the buck” manufacturers.
Your number one enemy is a desire to acquire. Keep it in check through budgeting and through consistently asking yourself if this purchase is really something that’s adding long term value to your life or if it’s just fulfilling a short term desire. If it’s just a short term desire, skip it or go for a lower-priced version of that item.
One tendency that people often find in themselves as their income grows is the desire to be a “superhero.” They want to be the person that covers the tab for everyone. They want to be the person that leaves a big tip. They want to be the person that has the jaw-dropping dinner party.
The truth? The people you’re buying for really don’t care. They really don’t. Such purchases are almost entirely for you. They’re done to make you feel big inside. Others might thank you, but it’s not going to have any sort of lasting impact or impression on them, particularly not in the way you might desire.
Don’t be a “superhero.” Take care of yourself and your own obligations and let others deal with their own. Save your generosity for moments when someone genuinely needs help, and in those situations, it’s often the gift of time that truly matters.
Don’t give of yourself to those who don’t need your help just to feel big, and especially don’t do it because you happen to feel flush with money at the moment. Use that money to put yourself in a good position, and instead plan to offer needed help when things are genuinely problematic for your friends and family.
One thing I couldn’t help but notice during the transition from low-income college student to much-higher-income professional is that I effortlessly migrated from buying store brands and value brands at the store to buying name brands and premium brands. I stopped putting the store brand hand soap in the cart and instead bought “high quality” brands with unusual aromas. I stopped buying store brand milk and started buying much more expensive milk from a “premium” dairy. It goes on and on and on like this.
Here’s the thing: if a product is meeting your needs, there’s literally no reason whatsoever to upgrade to the “premium” version. It doesn’t offer you anything if your needs are being met.
In the same vein, if a product isn’t meeting your needs, that won’t necessarily be solved by a “premium” version, either. That’s actually a time to look at comparative reviews like those posted by Consumer Reports. Which is the best paper towel for the buck? Move to that one rather than to the most expensive premium version if you’re unhappy with your paper towel.
Many people see a “store brand” label and, if they have enough room on their credit card, simply turn up their nose at it. The reality is that most store brands meet the needs of most customers quite well. Store brand hand soap cleans your hands quite well – soap is not a complicated product. Store brand cereal is often identical to name brand cereal.
Don’t reject “store brands” just because they’re store brands. Don’t switch to a more expensive product without a need to do so, and check “bang for the buck” options first.
In the end, the number one thing to remember is that stuff doesn’t bring happiness. Consistent happiness is just the outgrowth of a content life, and a constant cycle of acquiring new things or throwing money at new experiences does not buy contentment. It buys short bursts of happiness that fade quickly. You’re far better off building a content life, one from which happiness consistently bubbles up naturally.
Doing things like being the “super hero” and paying the bill at dinner won’t bring lasting happiness. Buying premium items at the grocery store won’t bring lasting happiness. Buying more and more things to do when you already have things undone at home won’t bring lasting happiness.
The only route to anything like lasting happiness is through contentment with life, as it provides a fertile ground for happiness to bubble up naturally. The way to build contentment is through spending less and securing your financial future. It’s through eliminating stress, taking steps to make your body and mind feel good, and surrounding yourself with positive relationships.
You can’t go into a store and buy those things. You can only achieve them by hanging onto the things in life that work for you, even as your income goes up. You can only achieve contentment by eliminating stressors, not by throwing money at short term bursts of joy.
Remain frugal as your income grows. You’ll never regret it, as long as you do it thoughtfully.
The post Remaining Frugal as Your Income Grows appeared first on The Simple Dollar.
With growing research to support the desirability of work-life balance, many companies are coming up with innovative ways to make employees happy and still maintain productivity.
Medical insurance and flexible work hours are important, but paid time off consistently ranks high on the list of benefits employees value most.
Some businesses offer unlimited vacation time to encourage work-life balance, but that can actually lead to employees taking even less time off.
Aviation strategy firm SimpliFlying decided to address the paradox by experimenting with a mandatory time-off policy designed to financially impact employees who didn’t take the vacation time they had earned.
The company only paid people for their time off if they also turned off work email, messaging platforms and any other methods workers use to stay in touch with the office.
That may seem like a glorious perk — but is it?
Though rare, compulsory time off isn’t a completely new idea. For instance, the Federal Deposit Insurance Corp. mandates that workers in the financial industry take off two consecutive weeks of work as part of its fraud protection policy.
The biggest benefit (pardon the pun) of mandatory time off is the ability to enjoy your vacation guilt-free. After all, it’s pretty difficult to feel like you’re letting your team down when your boss mandates your absence.
SimpliFlying CEO Shashank Nigam says just 12 weeks after the vacation policy went into effect, employees were already reporting they felt happier and more productive.
Many even wrote blog posts about how they “finally found time to cross things off of their bucket lists — finally holding an art exhibition, learning a new language, or traveling somewhere they’d never been before,” says Nigam.
But there’s a downside Nigam’s experiment.
To make sure teams were never left in the lurch while people were out of the office, SimpliFlying chose vacation dates for all its workers rather than allowing them to schedule the dates they wanted.
Prescheduled paid time off might not be a big deal if you have a fondness for spontaneity and wanderlust in your heart. But if you’ve got family responsibilities or school schedules to consider, prescheduled vacation time might not be a worthwhile benefit at all.
Paid time off is a workplace trend I hope will keep growing. Dictating exactly when employees can take vacation, though? I just can’t get behind that.
What’s the point of taking time off if I can’t coordinate it with the people I want to spend it with or things I plan to do? That seems completely counterproductive to a stress-free vacation, if you ask me.
Nigam says the experiment taught him that it’s important to stagger vacation times so teams aren’t missing too many people all at once. He also decided to send people on vacation every eight weeks instead of the original seven.
SimplyFlying employees must have been OK with preselected vacation dates because Nigam appears to be including that in the new vacation policy.
Of course, using up your allotted vacation time is only one part of finding work-life balance.
You can also reduce work-related stress by regularly practicing mindfulness and remembering that if your job is really stressing you out, at least you aren’t alone.
Lisa McGreevy is a staff writer at The Penny Hoarder. She never needs to be encouraged to take vacation time but admits she still checks her work messages when she’s off.
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.
Remember when you could scroll through Facebook without seeing a news feed clogged up with ads for something you looked at online last week?
Remember when no one could pay for posts on Instagram, leaving the invisible hand to control the timeline of adorable puppy photos?
It’s like every social network out there is trying to get you to spend money — including the newest, which seems to exist for the sole purpose of putting space between you and your cash.
Amazon Spark is a mashup of Facebook, Instagram and Pinterest, inviting you to post text and images relating to products you’ve purchased from the megaretailer. You must be a Prime member to post content or comment.
It’s cute. It’s easy to use. And if you like to shop, it’s dangerous.
Amazon Spark is tucked within the features of the iOS Amazon app, where it lives exclusively for now. Choose your favorite browsable interests, then scroll to see stylized, shoppable lifestyle photos from individuals, brands and, dare I say it, influencers.
That’s right. Just as the Federal Trade Commission has started cracking down on celebs who neglect to disclose product placements on their Instagram accounts, here comes a new social channel that’s already gunked up with ads.
While select influencers have been invited to post sponsored content, Spark does not yet offer an option for regular Joes and Janes to make money sharing images of their favorite Amazon products.
Amazon does, however, plan to reward Spark “enthusiasts” (aka users) with badges, which TechCrunch notes signals a move away from calling out “Top Reviewers” on the site. But those badges are probably just for show, forever. Amazon also recently started allowing users to share their old text-based product reviews on their Spark profiles. (Amazon can’t possibly nix traditional reviews that gave us these greatest hits… can it?)
Ads or not, Amazon Spark is like candy for the aspirational shopper trying to get just the right look for their closet, home or social life.
And by housing the network — along with its “smiles” and comments — within the Amazon app, the company is keeping you where it wants you: looking at its products all the time.
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.
Routine maintenance is one of the most expensive aspects of owning a car. Most of a vehicle’s parts will eventually wear out, but that doesn’t mean you have to take your car to a mechanic for every little thing. For instance, if your wipers are leaving streaks on your windshield, it’s easier than you think to replace them yourself and pocket the extra cash.
First, you need to recognize the signs that your wipers are in need of replacement. Windshield wipers should be replaced every six to 12 months, according to AutoBlog. You can find specific maintenance recommendations for your car in your owner’s manual.
However, if your wipers are leaving streaks or patches on your windshield or scraping across the glass rather than gliding, you may need to replace them sooner. Any time you notice your wipers performing at a sub-par level, it’s a good idea to inspect them for warning signs.
Drivers who live in harsh climates, such as those that are very hot and dry or those with extreme cold and ice, will likely need to replace their wipers more frequently. Hot climates can cause your wipers to crack, and salt and grit from winter roads can wear them out quickly.
To find out what kind of windshield wipers fit your car, check your owner’s manual.
If you can’t find the answer in there — or you’re just feeling particularly lazy — ask an associate in an auto parts shop if they can help you find the right ones. Usually, they’ll ask for the make, model and year of your car, so have that information handy.
While there are several different price ranges for windshield wipers, you’ll want to splurge on this purchase. Wiper blades range in price from $10 each for the Valeo 600 Series to $27.99 for the Rain X Quantum, but you can generally get a quality blade for around $20 each.
Since you’re saving a chunk of change by doing the maintenance yourself, it’s important to upgrade your windshield wipers’ quality. The cheap ones don’t last very long, so you’ll lose money in the long run by having to replace them more often.
Before you begin the switch, protect your windshield. Grab a blanket or a towel and place it between your windshield wipers and the surface of your windshield. The last thing you want to do is accidentally drop the wipers onto the windshield, potentially damaging or cracking the glass and creating even more maintenance problems.
Once your windshield is protected, lift up the arm of the first windshield wiper you’d like to replace.
This video has step-by-step instructions to help you remove your windshield wiper.
While all windshield wipers are different and may require a varied process, most will have a small button or latch to release them. Once you’ve pressed the button, slide the windshield wiper off the hook and lift it off to remove. Now, toss it! You don’t need it anymore.
The next step is attaching the new windshield wiper. Slide the new windshield wiper onto the arm and snap it into place. Close the hook to secure it, and gently lay the arm back down. Repeat the process on the second windshield wiper.
Depending on the brand you’ve purchased, this process will be a bit different. Refer to the instructions accompanying your new windshield wipers for specific guidance.
Once you’re finished, remove the blanket from your windshield and test out the new wipers either in the rain or in the path of a sprinkler. If neither option is available, ask a friend or family member to spray your car with a hose while you test out your wipers. If they are installed correctly, they will glide smoothly over the glass. They shouldn’t wiggle around in the arm or leave streaks on your windshield.
Doing your own basic car maintenance can be a great way to save your pennies. You won’t just save money on the labor — you’ll also save money on the parts, since many dealerships will charge you an additional profit for them. But be sure you know what you’re doing before you tackle the task — if you don’t, you may end up spending more money to clean up the mess.
Meg Thomson is a content editor at The News Wheel, a digital automotive magazine covering the latest car news, reviews and how-tos.
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.
Sure, I acknowledge this may seem like a pretty silly question. After all, why in the world would you send your 18-year-old off to school with the massive buying power associated with a credit card? I mean, certainly it’s better for them to not learn how to use plastic properly and, instead, carry around a bunch of cash or a prepaid debit card that charges fees so they can use their own money. (Is this where I insert a #sarcasm hashtag?)
Many parents like the idea of their college student having access to a credit card for necessities or in case an emergency arises. Others would like to help their children build strong credit, and wisely see credit cards as a tool that may help accomplish that goal. Here are some of the hurdles you’ll encounter in your search for the right credit card for your college student.
Unfortunately, just because you decide that you do indeed want to help your child get a credit card account, that doesn’t mean doing so will be an easy process. In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure Act (aka the CARD Act). Provisions imposed under this statute led to a number of changes within the world of credit card lending, especially with regard to young people.
Because of the CARD Act, many people under the age of 21 are unable to open a credit card account. The law says card issuers may not open a new account for consumers under the age of 21 unless they have a job or a co-signer. Many college kids have neither.
So unless your college student has a job, you will most likely have to choose between two options if you want to send your kid back to school with a credit card. Option No. 1 involves co-signing. Option No. 2 involves adding your child to your existing credit card account as an authorized user.
Although co-signing for your child’s credit card account is an option the law and many credit card issuers may allow, that does not necessarily mean doing so is in your best interest.
Co-signing for your child’s credit card is extremely risky, because that new account will not only show up on your child’s credit reports, it will almost certainly show up on your credit reports as well. You may not want that, because the decision to co-sign for someone else’s credit card account can harm your credit scores.
First, if your child makes late payments or defaults on the account, then your personal credit could take a severe beating. Even if your child is responsible with his or her credit card payments, the account could still have a negative impact on your credit scores in other ways, especially if an outstanding balance gets too close to the credit limit. As such, the authorized user option may be a better idea for everyone.
A less risky method of supplying your child with a credit card is the authorized user option. When you add your child as an authorized user to an existing credit card account, you can generally help him or her to establish credit without putting your own credit health in danger. Plus, if your child begins to charge more than they should in a given month, you always have the option to cut them off. An authorized user has spending permissions, but none of the liability for payment.
Keep in mind, you should probably only add your child to a credit card account with perfect payment history and preferably a low or zero balance. Otherwise, you could be hurting your child’s credit instead of helping it.
Additionally, you will be liable for any charges your child makes on the account, so discussing spending limits ahead of time is a wise idea.
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John Ulzheimer is an expert on credit reporting, credit scoring, and identity theft. He has written four books on the topic and has been interviewed and quoted thousands of times over the past 10 years. With time spent at Equifax and FICO, Ulzheimer is the only credit expert who actually comes from the credit industry. He has been an expert witness in over 230 credit related lawsuits and has been qualified to testify in both federal and state courts on the topic of consumer credit.
The post Should You Send Your Kid to College With a Credit Card? appeared first on The Simple Dollar.
No matter how great your holiday, it will end on a sour note if your flight home is delayed for hours.
But if you’ve taken out travel insurance, at least you’ll know that you can claim compensation for the disruption the delay caused.
Or will you? One Moneywise reader who endured a delay of 20 hours while trying to get home from a holiday earlier this year, was let down by his insurer and airline.
AP of London told me: “My girlfriend and I attended a wedding in Punta Cana in the Dominican Republic. On the return flight, we were delayed by over 20 hours as the pilot had phoned in sick.
“As flight operator Thomas Cook did not have any more pilots, we were moved to a hotel for an overnight stay prior to departure the following afternoon. We were not offered alternative flights.”
What a pain. But AP had spent cash on the Gold Select Travel Insurance Policy, sold by Coverwise and underwritten by Axa Insurance. The policy is not the best travel insurance offered through Coverwise –that’s its Platinum package – but it’s better than the firm’s Standard, Bronze and Silver packages. In other words, it should be pretty good.
That’s what AP thought when he made a claim for travel delay. So he was surprised when Axa rejected his claim. “How can a flight be delayed by over 20 hours and the travel insurer not provide a delay payout?” he asked.
Axa was very helpful with providing an answer. “It appears the delay you experienced falls outside of the policy terms and conditions,” it told AP.
Axa continued: “You can only claim for flight delay as a result of strike or industrial action or adverse weather conditions or mechanical breakdown or a technical fault occurring in the public transport on which you are booked to travel.”
In other words, the travel cover AP had sensibly splashed out on was useless when it came to travel delays.
I’ve had a close look at the terms and conditions in Axa’s 54-page policy document, which has a staggering 26,633 words. That’s almost the same length as Ernest Hemingway’s The Old Man and the Sea and is only 3,000 words short of George Orwell’s Animal Farm. The former tells the tale of predatory sharks while the latter reports on powerful pigs, which is no reflection on Axa or Thomas Cook.
The normal advice with any kind of insurance is to read the small print. But a company expecting customers to read all that small print is off their rocker. I certainly wouldn’t and AP didn’t. In fact, AP contends that the policy wording is unclear, and I agree. The wording seems to suggest that the exclusions only apply to cancellation, but Axa dismissed this, saying that they applied to flight delay too.
I appealed to Axa’s sense of fair play, but it refused to payout anything to AP and also rejected my request to alter the policy terms and conditions to make them fairer for travellers.
An Axa spokesperson told me: “Travel insurance offers a great deal of protection for a very low premium and, like all insurance products, there are exclusions. There is simply no way to cover everything and keep insurance affordable.
“Axa’s stance on this matter is in line with industry standards because, if delays are caused by the illness of flight crew, the traveller should approach the airline for compensation.”
Having spoken to other insurers, it seems they have similar exclusions. In short, they rely on airlines to offer compensation for flight delay.
There is compensation available for flight delay under EU law. However, it is not payable in the case of an “extraordinary circumstance”.
Extraordinary circumstances include war or civil unrest, security issues, natural disasters, weather conditions, air traffic control restrictions, strikes by airport staff, a medical emergency on board, and some crew issues.
Thomas Cook refused AP’s claim on the ground of “medical emergency”.
He rejects this. “My argument is that this was not a medical emergency. It was a staffing issue. The new pilot for the returning flight even stated that the pilot phoned in sick due to a food-related illness over two hours before departure.”
He has decided to fight on for compensation. He has complained to Coverwise about the wording in its policy document and he’s taking his case against Thomas Cook to the airline’s dispute resolution body.
“Staff not showing for work is the airline’s issue, so I believe under EU rules we are entitled to ¤600 each,” AP says. I reckon he’s got a strong case.
If you have similar difficulties with delays and cancellations, you can find out what to do in our feature Let down by an airline? Don't take flight, fight back against delays and cancellations or visit the Civil Aviation authority’s website, Caa.co.uk.
