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الاثنين، 21 ديسمبر 2015

5 Ways to Improve Your Facebook Page’s Organic Reach

I know you’ve noticed it…

Over time, your Facebook page’s reach has continuously gone down.

It’s not just in your head.

In just a few years, the organic reach of Facebook pages has plummeted:

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And the stock price of Facebook just continues to go up.

Is it a conspiracy?

Decrease the organic reach in order to force businesses to pay for exposure?

Maybe a little bit, but there’s more to it than you might first think.

And while it’s obviously a bad thing to lose some of the reach, it’s not as bad as the numbers might make you think.

The current situation: Right now, the average page has an organic reach of about 6%.

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The key word there is average.

Some pages get much more, some get much less.

Obviously, you want to reach as many of your fans as possible, so you want your page to be on the upper end.

And I can show you how to do that.

There are five main ways that you can improve your Facebook page’s reach.

I’m going to simplify them and walk you through the ways you can implement them to drive more traffic to your website and sales through Facebook.

What is your Facebook page’s reach based on?

Before you can attempt to increase your page’s reach, you need to understand what your organic reach is based on.

First, why do you think Facebook limits the organic reach of pages? Why not allow all users who have liked a page to see every single post?

There are two main reasons why Facebook limits organic reach.

The first we already looked at: it can help Facebook make more money because businesses with poor page reach will spend more on promoting posts through Facebook ads.

The second one is much more interesting to you and me.

Facebook wants to create a good user experience for everyone using the network.

What this means is every user needs just the right amount of new content in their feeds— not too much and not too little.

Too much, and they’ll miss important things. Too little, and they have less of a reason to return to Facebook.

As more and more brands hopped on Facebook, feeds started to get crowded.

By reducing the reach of pages, Facebook made sure feeds stayed within an optimal range.

This is going to be important throughout this article, so keep it in mind.

How reach is determined: Back in 2010, Facebook revealed the primary components of “Edgerank.

  1. Affinity Score
  2. Edge Weight
  3. Time Decay

At the time, Facebook used these three factors to determine whether a post should be shown to a user or not.

The higher the score, the more likely it was to be shown.

Say, 100 posts competed to be shown to a user who just loaded their news feed.

The posts with the highest scores would be displayed first. This means that if your page’s post isn’t in the top 20% or so, it’s unlikely to be seen.

Since then, the algorithm has grown to be much more complicated. It includes hundreds of factors now.

However, those main parts of the algorithm remain the same, with a few tweaks and additions.

All in all, the organic reach of one of your posts (calculated on a post-by-post basis) is determined by five main factors.

Factor #1 – A user’s previous interactions with page: If a user likes, comments, or clicks on every link each time you post on your page, it’s safe to say that this user loves seeing your content.

Therefore, Facebook needs to consider how a user has interacted with your posts in the past.

If they haven’t interacted with them often, your posts’ scores will suffer.

This isn’t perfect, but Facebook considers it a good indication of content worth.

Factor #2 – A user’s previous interactions with post type: In addition to preferring content from certain pages, users might also prefer certain types of posts.

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If someone prefers videos, based on their past behavior on Facebook, videos that you post will get a higher score.

Factor #3 – The interactions from other users who saw the post: When you post something new on your page, Facebook shows it to a small group of people (maybe 25-100).

Then, if those users like the post (overall), it will give your post a higher score and show it to more of your audience.

Many businesses complain about having a poor reach while posting boring things. So even though they reach a small initial following, it never goes any farther because of this factor.

This feature can actually be really good for you.

If you see that certain types of posts or topics get a wide reach, you can post more of them.

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Factor #4 – Any complaints or negative feedback: This ties into factor #3. When Facebook shows a user a post, the user always has the option to report the post (for inappropriate content) or say that they don’t want to see it.

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For that particular user, Facebook will remember that in the future. They likely won’t see much more from your page.

In addition, if a new post gets a significant amount of overall negative feedback, its score is going to be lowered, and its reach will be low.

Factor #5 – When it was posted: Finally, this simple factor comes from the “time decay” component of the algorithm.

When a post is brand new, it’s likely going to be the most interesting that it’s ever going to be. Over time, the score of a post goes down as it gets older.

There’s no way to manipulate this factor; just be aware of it.

1. The best time to post probably isn’t what you thought…

Picking the right time to post on your page isn’t going to take your reach from low to high, but it can boost your reach by a few percent in some cases.

On most social networks, it makes sense to post when most of your followers are active on the site.

For Facebook, this is often not the case. Posting at peak times usually results in a lower organic reach.

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Why does this happen?

During peak times, the largest number of your followers are likely online (it differs for some pages).

All the other pages that those followers “like” are also posting around that time, meaning that there is a lot of competition for news feed real estate.

If your content is consistently amazing and you’re beating all your competitors, this isn’t an issue. But that’s extremely rare and not even always possible depending on what niche you’re in.

So, when should you post? The first thing I recommend is checking your page’s analytics to see when your fans are online:

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Facebook is nice enough to provide this data for all page owners.

Unfortunately, there’s no way to pinpoint which time will be the best without experimenting.

So for now, note down a few times:

  • the peak time(s)
  • the valley time (lowest point)
  • the time in-between the valley and peak

This will leave you with 4 to 5 different times.

For the 40 to 50 posts you make (a few weeks to a month), post at different times (randomly) until you have at least 10 for each of these time periods.

At the end, average the reach you get from each time, and then post at the best time on a regular basis.

You can also continue to test times around your winning time to see if there’s an even better option (but the difference will usually be small).

Why non-peak times are usually the best: If you really want to save time on testing, it’s pretty safe to skip the peak times.

There are two main factors for this.

First is the competition. Fewer pages post during off-peak times, so you have fewer posts to compete against.

I’d rather reach a large portion of a small audience than a small portion of a large audience.

Secondly, just because you’re not posting during the peak time doesn’t mean your post won’t be visible at that time.

In fact, it can do better.

Posting before the peak time gives your initial small audience the chance to interact with your post. This gives your post the chance to get a higher score in the algorithm.

With this momentum, it’s more likely that your post will have a high enough score to top news feeds of users during the peak time.

2. Followers love one type of content in particular

I’ve said it loudly before:

people love transparency.

Yes, there are a few rules to using transparency effectively, but overall, showing your audience what’s going on behind the scenes is incredibly useful.

It’s more interesting and often more educating than regular content, which is why transparency is powerful.

But how can you be transparent on Facebook to increase your organic reach?

Here’s the general plan:

  • post something personal, real, and interesting (transparent)
  • get more likes, comments, shares (engagement) than usual
  • that specific post will have a large reach
  • that score will contribute to the scores of future posts, giving future content a larger reach than normal

This is why you should be regularly sharing transparent content since it has the most reach by far.

Buffer shared a great data-driven case study on this. They shared several pictures over the course of a few weeks from a trip to South Africa:

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This is definitely transparent content. They’re sharing with their followers something personal about the people behind their business.

But it’s not even about social media—their main topic!

So, did this content have a good reach?

You bet. Buffer shared their results over that two-week period. As you can see, five of their top seven posts (in terms of reach) were about their trip (marked in orange):

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This data shows you that reach is not always just about clicks and other forms of engagement although they are big factors. The second best performing post, for example, had a fraction of the clicks of the best post.

Transparent posts tend to perform better on all those other factors that determine your post’s overall score.

Example #2 – Don’t be afraid to show your face: Your followers want to know who the people behind your brand are.

The days of hiding behind a business name are gone as information about people behind companies can be sourced from a simple Google search.

But instead of making your followers hunt you down, give them what they’re looking for. It helps to build trust and relationships.

The best marketers today know this.

They share photos and videos that feature them so that followers can really connect with them.

A great example is Marie Forleo, who often shares videos on her page:

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No surprise, these posts get hundreds of likes and shares and tons of comments.

Example #3 – Go behind the scenes at an event: Another way transparent content can be useful is if it reveals something exclusive.

Followers value unique content above all else, so when you reveal your personal processes or results of experiments, you give them something that no one can offer (because it’s specific to you).

I saw an example of this recently on the Marketing Profs Facebook page. They shared several pictures of their marketing manager at a rather large event—the B2B marketing forum.

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As you can see, it got 11 likes.

And while that’s not particularly impressive, it is when you consider that the page usually gets 2-3 likes on a post.

As I mentioned earlier, improving the organic reach of individual posts on a regular basis (through transparency) can lead to long-term results. The key is being consistent with posting transparent content.

3. Use these 3 ways to encourage more interaction on your posts

Several factors that determine the reach of your posts are based on engagement.

To Facebook, if people like a post, they will interact with it in some way, whether that’s a “like,” share, or comment (or link click if an option).

It follows that if you increase the amount of engagement you get on your posts, you’ll increase your reach.

Ideally, you want to increase engagement on all posts, but even if it’s just every other post, it will still have a large overall effect on your organic reach.

There are three fairly easy ways to instantly start getting more interaction on posts.

Way #1 – Ask questions: One of the main reasons why people don’t contribute themselves, whether it’s on Facebook, your blog, or any other site, is because they don’t think their voices matter.

There’s a disconnect between what you think and what a huge portion of your fans think.

You love when you get comments and questions. It gives you a chance to interact with your followers on a more personal level and provide more value.

But the average follower thinks that you are some guru behind a business who doesn’t care about them.

Show that you care. One way to do that is to ask for their opinions.

Buffer regularly does this on their Facebook page, always generating several comments:

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According to numbers published by Buffer, questions always reach an above average portion of their audience:

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The key is to ask the right kinds of questions.

Don’t ask a general question like:

What’s the best social media tool?

It doesn’t work well because it addresses a crowd in general.

Additionally, it’s hard to answer. Who really knows what the best tool is? No one wants to look wrong on social media.

Instead, focus the question on something personal that only each user can answer. For example:

What’s your favorite social media tool?

Here, you’re asking for a personal opinion. Opinions can’t be wrong, so people are more likely to comment.

Also, you’re asking a personal question. Always include the words “you” or “your.” You want your readers to know that you care about what they think.

Bonus tip: Do this in any content even if it’s not on social media. I’ve written “you” or “your” over 100 times so far in this post.

Way #2 – Respond to comments: There’s something I often see that drives me absolutely nuts…

A business or marketer goes to all the trouble of creating good content and building a following on social media.

After a lot of consistent hard work, they start to get a comment on their posts here and there.

And then?

They don’t even bother to respond to the comment.

That commenter was probably one of your most loyal fans just trying to connect with you. By not replying, you’re basically telling them that they’re not worth your time.

They won’t be commenting again in most cases.

Not only that, but if other users see that you don’t respond to comments, why would they bother spending time and energy to leave one?

You can’t wait until you start getting several comments to start interacting.

Take any chance you get, and do your best to reply to every single comment:

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I get it, you’re busy. But so am I, and I find the time to reply to hundreds of comments a day.

They may not all be lengthy, in-depth responses, but they’re something to show that I care about those who read my content and try to contribute.

Bonus tip: Try to tag people in your comments, which will give them a notification. They will be more likely to come back and continue the conversation.

Way #3 – Fill in the _____ (blank): Don’t be afraid to get creative with your posts to encourage engagement.

Instead of just asking questions, ask people to fill in the blank, for example.

For instance, you could post:

This Christmas, I want to get _______

Holiday-themed fill-in-the-blanks posts often perform best because there are a lot of emotions associated with holidays.

4. Organic post targeting can take your engagement to a new level

I understand that it’s frustrating to see your organic reach dropping.

It’s easy to say “screw Facebook” and move on.

However, I think that’s a waste of a great opportunity, at least for now.

And while the changes may have hurt some businesses, Facebook has also released a few tools that can help you combat the negative results.

The most important of which is organic post targeting.

What organic post targeting allows you to do is choose to what part of your audience you want to show your post.

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This is incredibly useful, especially if you have a fairly large audience.

Here’s why:

When you can target a post to the most interested segment of your followers, it will naturally get a higher engagement reach. This leads to a higher overall organic reach immediately—and later, for future posts.

You target audiences when you run paid advertising because you don’t want to show offers to people who aren’t interested in them.

It’s a similar thing here.

If I’m promoting a post on the topic of social media, not everyone in my audience might care. But those who have demonstrated an interest in social media in some way (on Facebook) likely will.

The bigger your audience, the more it’s divided.

How to do it: Organic post targeting is really easy to do although it’ll take a bit of practice to figure out which targeting settings work best.

Start by going into your general page settings, and check the box to allow “targeting and privacy for posts.”

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Now, when you go to post something on your page, you’ll see a little target icon on the bottom row of icons:

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Click it, and it will let you pick from several different targeting options.

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Depending on your pick, it should bring up a pop-up where you can enter your preferences:

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Notice that as you add more targeting preferences, the “Targeted to” number changes.

Be careful not to target too obscure of an audience, or not enough people will see it. Keep your target audience as large as possible, as long as it’s composed of people you think will be highly interested in your post.

Let’s go through a few examples of targeting…

  • Example post: “7 Ways to put on makeup better”
  • Good targeting settings: Gender: Female; Age: Under 60
  • Example post: “7 Ways get more shares on Facebook”
  • Good targeting settings: Interests: Social Media Examiner, Amy Porterfield, Buffer
  • Example post: “7 Ways to get more dates”
  • Good targeting settings: Relationship status: Single

5. Go beyond basic images with these two types of highly shareable content

It’s not a secret that images and videos get the most attention on social media.

It’s important to stand out from the 20+ other things trying to get the user’s attention, and you just can’t do that with text.

But the type of image you use matters. You can’t just post a low quality picture of a lamp and get tons of shares.

There are two general types of media that work better than the rest.

Type #1 – Informational images: The problem with most social media advice is that it starts and stops with “use images.”

But news feeds are filled with images now, which makes it tougher for one to stand out.

One of the most effective ways to combat this is by posting informational images.

I’m referring to images that are more than pictures.

Here’s an example from Buffer, where the image clearly shows that the article involves social media and that it will lead to more social shares.

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Having a relevant picture goes a long way.

But compare this picture with just a single Facebook logo that you could have used in its place.

It wouldn’t be nearly as attractive as the above example because it wouldn’t communicate extra information: that the post is going to be about using multiple social media tools together.

You get that just from a quick glance at the image, no reading necessary.

Here’s another example from the nutrition niche (from our case study’s Facebook page).

This post utilized two different tactics for increasing post reach at the same time.

First, it asked a question.

But beyond that, it added extra information to the question in an attractive image:

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It shares an interesting tidbit about GMO products: they are restricted or banned in many countries but not Canada and the US—information that is highly related to the actual question.

This post received a ton of engagement and had a much larger organic reach than the average post on the page.

Type #2 – Videos usually get more shares: Those images are great, but videos can still crush them (if high quality).

The downside is that videos take longer to create in most cases and are often several times more expensive.

There are three main reasons why videos perform better than images in most cases:

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The first is that they are less common. Look at your Facebook feed. Most posts consist of images, but only a small percentage have videos.

The rarer something is, the more it stands out. That’s why you should do the opposite of the masses.

The second thing is that people are lazy. You might already know this. You pour hours into creating content, and most can’t spend the time to read it.

But videos eliminate a lot of this problem.

With videos, the viewer doesn’t need to interpret what an image is saying—the narrator does that for them. All they have to do is click “play” and listen.

Finally, videos convey complex information as quickly as possible. Even though images are usually better than text, videos beat them by a large margin.

A short tutorial would take several images and still probably leave a few steps out. A video shows absolutely everything and takes a fraction of the time.

How you should use videos: I encourage you to, at the very least, test out videos. You don’t have to share them all the time, but start working them into your regular mix.

Videos are great in many situations, but in particular these three:

  • connecting with your audience
  • doing a quick tutorial
  • educating (in niches like cooking)

There are certain posts that can help you build your relationship with your followers better than others.

Try to speak to your audience on topics that are especially important, controversial, or emotional on video:

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As I showed you earlier, Marie Forleo excels at this.

The second option is to record a quick tutorial. This is great if you work in a niche that involves doing something on computers.

You can record yourself performing a task and creating a video in just a few minutes.

Finally, videos are a really effective way to teach people about complicated or boring subjects:

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Everyone hates reading long pages of text, and infographics only work for simple topics.

With videos, you eliminate both of those problems. Videos are stimulating and entertaining, plus the visual imagery eliminates the boredom of having to read long technical content.

Conclusion

Your Facebook page’s reach is one of the most important metrics on your Facebook account.

The higher it is, the more of your following you can reach with your posts. This means more traffic, engagement, and ultimately sales.

I’ve shown you five different ways to increase your organic page reach.

Test and implement as many of them as you can. If you’re feeling a bit overwhelmed, start with just one or two.

There’s one last final important lesson I need to leave you with:

Numbers are useful, but care more about the connections you make.

Having deep connections with a small audience is much more important than having a large reach with shallow connections.

So while you should track your organic reach and try to improve it, don’t obsess over it. Pay more attention to whether you get positive and thoughtful comments.

Finally, I have a question for you.

What Facebook tactics have you had the most success with when it comes to increasing your reach? I’d appreciate it if you left a comment below.



Source Quick Sprout http://ift.tt/1mwdOSC

Questions About Affordable Housing, Hidden Problems, Profitable Hobbies, and More!

What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to five word summaries. Click on the number to jump straight down to the question.
1. Finding hidden problems with investments
2. Feeling bad about financial state
3. Finding a profitable hobby
4. People assuming that I’m rich
5. Affordable housing and jobs
6. Saving Christmas leftovers
7. Gift cards for unavailable restaurants
8. Thoughts on Dollar Shave Club
9. A path to moving out
10. Using leftover ham
11. Being happy with older car
12. Best books of 2015

For me personally, the week before Christmas is the most stressful week of the year. We’re filling in the remaining gaps in our Christmas wish list (“Did we completely forget to get a gift for that person? Oh… um…. any ideas?”). We’re trying to pull off a nice holiday meal and some interesting holiday surprises besides gifts. We’re cleaning like crazy. We’re usually traveling somewhere. We’re staying up late wrapping gifts and filling out Christmas cards.

And then Friday will come. Our children will come flying into our room at about five in the morning, jazzed from the adrenaline of Christmas morning. They’ll encourage Sarah and I to get up in a half-awake stupor to open presents.

Then we’ll spend the day enjoying our gifts, planning for an event with extended family over the weekend, preparing a really cool holiday meals, and (this year) trying to roast chestnuts.

In the end, the best part of all of it is simply being with those people. Seeing Sarah with her eyes still sleepy and a cup of coffee in her hand watching the children open gifts. Seeing our daughter crash at about eight in the morning because she actually woke up from excitement at about 2:30 in the morning and so she’s wrapped up in a blanket on the couch. Seeing my oldest son trying to convince us that he needs to go outside to try out his new outdoor sporting gear (and probably succeeding this year, as Christmas is supposed to see weather in the fifties), and then convincing me to go outside and help. Seeing our youngest son trying to sneak a cookie before dinner… and then trying to sneak another cookie.

Forget the presents or the meal or anything else. Those moments, right there, are the reason that even though it is so much work and often so stressful, I still look forward to Christmas.

Q1: Finding hidden problems with investments

Where do you start in finding any problems in your investments (outrageous hidden fees, the wrong investment style for your age group, etc.)? Is there a program you can enter this information into, or is it something I need to look at and research myself?
– Larry

The first thing I would do is visit a website that contains unbiased comparison info about mutual funds and other investments. Morningstar is a great example of this type of site and is my first stop for these kinds of comparisons. Just go there and look up your investments. I tend to give a fair amount of trust to Morningstar’s star rating for investments as a quick snapshot.

Now, if you’re asking questions along the lines of whether an investment is the wrong style for your age group, I’m assuming you’re saving for retirement. That kind of question is much more personal and much more difficult to answer because it ties into your target retirement date, your risk tolerance, what you’re contributing each year, and so on. In other words, it’s really hard to just find a simple tool that will tell you whether you’re good to go.

What options do you have, then? The best option is to simply learn as much as you can about saving for retirement. I’d recommend reading a good book like The Bogleheads’ Guide to Retirement Planning in order to get a firm understanding of the ins and outs of retirement planning. It will also help you assess things like your own personal risk tolerance and the types of risks you should have at your age and so on so that you have a good grip on your own needs.

Q2: Feeling bad about financial state

Whenever I read about someone else’s success on a personal finance blog, I end up feeling like a giant failure. How can I compete? What’s the point? The advice is good I guess but I end up feeling like I can’t measure up and that my own finances are such a mess that I’ll never be in a good state like you or the other writers.
– Alex

If you’re simply using personal finance blogs as a comparison tool for your own relative success or failure, you’re doing it wrong. One of the key rules of personal finance success is stop caring about what other people think and how other people are doing. The only comparison that matters is the comparison to how you were doing a year ago. Are you in better shape than you were a year ago? If so, then you’re doing well, and the bigger the change the better.

The value of personal finance blogs isn’t in comparing your story to theirs, but in taking the advice that they have on offer and using it to improve your own successes. If you look at a frugal story and are blown away and intimidated by what those people are able to pull off, you’re wasting your time reading the site. What you should to is take a frugal story and ask what elements of that story you can apply yourself to improve your financial state.

Personal finance is personal. It’s about you. It’s not about anyone else. It’s not about comparing yourself to the Joneses. That comparison isn’t a fair one and is based on tons and tons and tons of assumptions that are mostly unrealistic. Just worry about yourself and improving your financial state year after year. The thing to take from blogs is the tips that you can use in your own life and the sense that you’re not alone in trying these things.

Q3: Finding a profitable hobby

Can you help me find a profitable hobby? I am looking for ways to make some extra income at my apartment. I am considering a second job but I need really flexible hours so I am looking for a hobby or really small business I can start that will earn some more cash.
– Danielle

If you’re just looking to directly convert your hours to money, I would look at things like Mechanical Turk, Fiverr, and eLance. Those sites give you quick tasks you can do to earn some cash in your spare time.

The problem is that such sites don’t really scale up. You’re going to earn several dollars an hour (maybe more, maybe less depending on your skills) at your complete convenience, but you’re never going to build beyond that.

The routes to building up to a better hourly rate, though, involve making almost nothing for the first few thousand hours you invest. Blogging follows that model, as does making Youtube videos, podcasting, and so on. At first, you’re not going to make much of anything at all. It’s only later on where you’re going to start making some cash.

So, you have to ask yourself if you’re content to make several dollars an hour in your spare time starting right now but never really rising above that, or whether you eventually want to make more than that per hour but make far, far less at the start. That choice is going to send you down two very different paths.

Q4: People assuming that I’m rich

How do you deal with people thinking that you’re rich when you talk about retiring early? I made the mistake of mentioning my plan to retire around age 50 when we were at Thanksgiving and since then several different family members have contacted me needing “loans” for things. I told them all that I don’t make that much money and what I do have is locked in a 401(k). Now I find out that they all think I’m being “greedy” and hiding all of my cash and someone even referred to me as Scrooge McDuck.
– Dylan

First of all, your family sounds incredibly greedy. No one that isn’t innately greedy would dream of doing the things you describe here. There’s a huge sense of entitlement for the things you’ve earned for yourself, a level that I’ve never seen in my own family and would be very disturbed to hear them engage in.

If this were my family, I’d tell them to get lost without even skipping a beat, and here’s why.

During your life and during their life, you each made choices about how to use your money. You chose to save some significant portion of yours for the future and live a less affluent life. Your family members chose to save less for the future and live a more affluent life. That’s fine – everyone can make whatever choices they want.

However, their choice to live a more affluent life does not entitle them in any way to the benefits of your choice to live a less affluent life. Just as you don’t have the right to walk into their house and take their television and their iPhones and their computers and their furniture and so on, they don’t have the right to walk into your life and start tapping your savings and investment accounts.

You chose different paths in life, and that’s fine. However, that doesn’t give anyone the right to jump in and demand the benefits of another path without having chosen the drawbacks for themselves. To do so is purely greedy and self-centered and isn’t even worth dignifying.

Q5: Affordable housing and jobs

Just read this GREAT article about how every place where there is decent jobs there is no decent housing nearby so you either have to have a very long commute or pay really high prices for housing.

http://ift.tt/1OcWVZp

Thoughts?
– Ellen

You’re absolutely right – that article spells out the difficulty in finding a really good paying job. If you do get such a job, the cost of living near that job is usually astronomical because the landlords know that people will be able to pay that high cost. Your other option, then, is to live far away and then watch a healthy chunk of that money get absorbed into the expense of commuting and the time invested, too.

My honest response to all of this is that you should try as hard as you can to find a good job in a lower cost of living area, even if it means a lower salary. Being able to live close to where you work makes a huge quality of life difference as you’re not spending untold hours commuting back and forth.

That’s basically what I did after college. I got a job in a college town and then chose to live in a small town relatively nearby, giving me a fifteen minute commute and really cheap rent. It ended up being pretty much the perfect solution for me and I think it would work well for many people.

Q6: Saving Christmas leftovers

Does it make sense to save leftover items at Christmas? Like the boxes that items come in and, if you’re careful, the wrapping paper on big boxes so you can reuse it next year? I have been doing this for years but my husband thinks it is silly and isn’t worth the effort.
– Lana

I think that it does save a little bit of money and it is certainly environmentally responsible, but I’m not entirely sure it saves enough money to make it worth the time involved.

To reuse the wrapping paper, for instance, you’d have to unwrap it really carefully, remove the tape from the paper, and then store the paper in a way that preserves it and so that you’ll remember it. Even then, the whole piece probably isn’t reusable. You’ll have to wrap something smaller in it.

For us, wrapped boxes that would be big enough to make it sensible to save the paper are usually wrapped in other means – usually a large plastic trash bag with a bow on it. That way, the trash bag can be reused for the other holiday scraps.

As for your strategy, I don’t think there’s anything wrong with doing it. I don’t think it’s a huge money saver but it certainly does save some money and it does create another use for wrapping paper.

Q7: Gift cards for unavailable restaurants

At our holiday get together last weekend I wound up receiving a gift card for Ruth’s Chris Steak House. I wouldn’t ordinarily mind that gift at all, but we live in North Dakota and the nearest Ruth’s Chris Steak House is in Minneapolis which is like five and a half hours away. I can’t imagine when I would ever use this gift card.

So what do I do with it? I thought about regifting it, but the only people that might receive it are people who also live in North Dakota and wouldn’t have much use for it.
– Charlie

This is one of the problems with gift cards like this. It’s a nice idea if someone happens to live near the particular business, but if they don’t, it’s truly a wasted gift.

Your best bet would be to sell it at a site like Cardpool. You’ll likely only get a sizable percentage of the face value of the card, but that’s better than getting nothing at all and seeing it go to waste.

Another option isn’t to directly regift it, but keep it in your wallet in a prominent place where you won’t forget about it and then pay attention to the people in your life. If someone you know or care about is going to Minneapolis or another city with a Ruth’s Chris, just hand them the card and tell them to enjoy a great meal.

Q8: Thoughts on Dollar Shave Club

Do you have any experience with Dollar Shave Club? Do you think it is a good deal or is it just another ripoff?
– Marcus

It depends entirely on what you’re comparing it to. If you’re comparing it to a cartridge razor from Gilette or another mass-marketed razor, it’s a pretty good deal. The blades and the razor are very comparable to a Mach 3 (a little cheaper as far as I can tell), for example, and the price is better and it just shows up at your door.

If you want something that’s comparable to a Mach 3 but higher in quality and shipped to you every month, you’d probably want to try something like Harry’s Shave Club. Their stuff is of higher quality, but the price is a little above what you’ll find on Mach 3 products in stores.

My recommended solution is to get a Merkur long handled safety razor and then order a box of double edged razor blades each month. If you shave daily and only use a blade once, a box will last for 200 days for $12. No “shave club” or cartridge razor can even come close.

Q9: A path to moving out

I am currently 25 years old and single. I have a degree in aerospace engineering from a decent school but have been unable to find work mostly because I didn’t make good industry connections when I was in school As a result I have been living with my parents and working a full time and a part time job ever since graduating, keeping my student loans paid up and saving a little for the future.

I have been looking at moving to several different cities where I could have a good chance of finding an aerospace engineering job, but that means that I need to be in a financial state to be able to move out. I am looking for some guidance there. How do I judge whether I am financially able to do that? What do I need to do to get there?
– Vincent

The first thing I’d do is identify which city you’re specifically going to move to. Maybe you’re considering Wichita, for example. Whatever that city is, start researching it in detail. What does it cost to live there? What kinds of entry-level jobs are available, both in your field and otherwise? What can you do to get your foot in the door with aerospace, mechanical, and systems engineering firms in that area?

Once you know what it will actually cost to live there, start looking at your current financial state. Could you make it there for, say, one year with a service job given your current state of affairs? If no, keep saving for now.

Remember, your goal isn’t to live there permanently while working in the service industry. Your goal is to find a permanent position in your field within a reasonable timeframe or else move to somewhere else that’s more financially sound.

If you find you’re ready to give it a shot, start planning for a move and apply for some entry level and service jobs there. Take whatever you can get, especially if the hours make it possible to get involved in career-related networking events. Maybe you can work a morning shift so that you can go to networking events in the evening, or maybe you can work nights and weekends so you can do an internship during the day.

The goal is to do everything you can to land the kind of job you want within that year timeframe, so don’t spend your evenings playing League of Legends. Spend as much time as you possibly can doing something that will help lead you into the career you want.

Q10: Using leftover ham

Every Christmas, we end up preparing a giant ham for our holiday meal. Every Christmas, we end up with a bunch of leftover ham.

I am always hesitant to do the obvious thing and cook a smaller ham because our numbers vary so widely. We have had as few as six at our Christmas dinner and as many as 30+ and we often don’t know the number until very close to the meal, sometimes the same day. We invite a lot of people and get a big mix of “yes” and “no” responses.

So most years we have a lot of leftover ham. What do we do with it besides fill up freezer bags with it?
– Jenna

In the past, we have saved leftover ham in the freezer, but we’ve first chopped it into tiny cubes and saved it in containers that contain eight ounces of ham apiece. We then would use those containers throughout the year for any recipe calling for ham.

For example, if we were making a recipe that called for a pound of cubed ham, we could just pull out two containers from the freezer and suddenly we have that ham on hand for the recipe.

The idea is really straightforward. We’re just making the ham as useful as possible throughout the year by making it as prepared as we can. That way, recipes later in the winter or the spring become really easy to pull off.

Q11: Being happy with older car

I know the financial advice on cars is to buy a late model used car and drive it until it’s not reliable, but I am having a hard time doing that. As soon as a car get around the 100,000 mile mark I start getting worried that the car is going to fail any minute. I’ll take it to mechanics whenever I hear any sort of noise (and most of the time it’s road harmonics) and I end up stressing and spending so much money on it that I just can’t see how it saves money for me.

I have a 2011 Honda that’s at 103,000 miles and I’m basically scared to drive it three hours for the holidays. I am going to have to trade it soon.

Other than the obvious “get over it,” how do you suggest saving money if I’m trading in my car at the 100,000 mile mark every few years?
– Kelly

As someone who is currently driving a Honda Pilot with about 160,000 miles on it and recently drove it from Iowa to Texas and back, I’m clearly of a different mindset when it comes to cars. To me, the time to replace a car is when it’s about to fail (based on the words of a trusted mechanic) or actually does start failing, to the point where repairs will exceed the value of the vehicle. I keep up with my maintenance schedule and ask a mechanic to look at the car regularly and keep me abreast of anything that may need attention. Because I have that word, I don’t really worry about it. A car has to show me it’s about to fail before I actually replace it.

I guess my best advice for you is to find a mechanic that you really trust, start letting that mechanic handle your car maintenance, and ask that mechanic to watch for anything that might be trouble down the road. Then, just trust that mechanic. When the mechanic tells you it’s time to think about big repairs, then trade the car.

It sounds to me like you’re a person who isn’t experienced with cars but you’re relying on that inexperience to judge whether it’s time to replace it. Trust a more experienced and knowledgable judge instead.

Q12: Best books of 2015

What were your favorite books of 2015? Your lists from past years have ended up helping me find a bunch of great books at the library!
– Kevin

The book that had the biggest impact on me in 2015 is hands down Between the World and Me by Ta-Nehisi Coates. The book takes the form of a series of letters to his teenaged son. It is challenging and hard to read because it tackles racial issues in modern America in a very strong way. Some parts left me confused. Some left me bordering on angry. But all of it made me think about the world, and that’s the most powerful thing a book can ever do. A great book makes you see the world through different eyes and it makes you think about what you’ve learned from that experience, and if there’s a book in 2015 that pulls that off, it’s this one.

The book I perhaps enjoyed the most as a pure page-turner in 2015 was… well, I have to choose two of them. First, Jim Butcher’s The Aeronaut’s Windlass is an incredibly fun adventure set in a world that seems right out of a Jules Verne novel, with airships flying around in a crazy world much like Victorian England. It’s one of those books that’s just fun from beginning to end if you just let go and let yourself get sucked into the book.

The other one is Epitaph by Mary Doria Russell, who wrote perhaps the most haunting book I’ve ever read, The Sparrow,/em>, which I read almost in a trancelike state and has been in my thoughts ever since. Epitaph comes very close to matching that (it’s still in my mind after quite a while), but it’s set in a completely different world – it’s her retelling of the gunfight at the O.K. Corral. As with The Sparrow, she manages to make the whole situation incredibly, incredibly human and personal and yet so fascinating you almost can’t take your eyes off the page.

Those were the books I loved the most this year, at least of the 2015 releases I’ve read.

Got any questions? The best way to ask is to follow me on Facebook and ask questions directly there. I’ll attempt to answer them in a future mailbag (which, by way of full disclosure, may also get re-posted on other websites that pick up my blog). However, I do receive many, many questions per week, so I may not necessarily be able to answer yours.

The post Questions About Affordable Housing, Hidden Problems, Profitable Hobbies, and More! appeared first on The Simple Dollar.



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Will I be caught out by the bank deposit protection cut?

From 1 January 2016, the amount of your savings protected in the event of bank default will fall from £85,000 to £75,000.

From 1 January 2016, the amount of your savings protected in the event of bank default will fall from £85,000 to £75,000. This means that if your bank goes bust, the Financial Services Compensation Scheme (FSCS) will ensure you recoup up to £75,000 (or £150,000 for joint accounts).

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Community Repair: The Cure for Your Consumption Blues?

The other day, a piece my shower handle cracked off. It didn’t bother me. The shower handle still worked. It just looked a little funny.

My girlfriend thought it looked less “funny” and more “totally and utterly broken.” She thought we might need a new shower handle. I proclaimed that I would fix it myself. She said, “Fantastic!” But she knew I wouldn’t, so she ordered a new shower handle online. When I learned of this lack of faith, I was a little bummed. But then I thought about it a little more, and it made sense.

I suppose I do have a history of bold claims and little follow-through. I’m like the sixth-graders who run for school president and promise to lengthen recess even though they have zero power to make that happen.

I’ve offered to sew up holes in dress shirts even though I’ve never touched a needle and thread. I’ve boldly stated that I would sand an old table even though I’m not sure what sanding even does or if it applies to tabletops. (You sand it and then… paint it? Maybe?)

It goes without saying that I don’t actually do this stuff. I say I will, and I even buy books like “Home Improvement for Dummies,” but nothing ever actually gets improved. Given all that, my girlfriend wasn’t questioning my abilities. She was being a realist, and she didn’t want to live with a broken shower handle.

A few days later, the new handle arrived. I unboxed it and stared at it. Then, something changed in me. It was like I was looking at the physical manifestation of my lack of effort and determination. That 6-inch piece of plastic felt like it was mocking my ability to perform basic human functions. I felt lazy. The box might as well have come with a 64-ounce soft drink, a candy bar, and one of those hover chairs used by the futuristic blob people in the Pixar film Wall-E.

I proceeded to do something profound (by my standards). I went to the hardware store, bought some Super Glue, and put the broken shower handle back together. It was something most 3-year-olds could have done, but it felt like a big deal to me. I felt invigorated.

Turns out there has been a big missing component in my quest to live a financially responsible,  mindful, and ecologically friendly lifestyle: My inability to fix up and reuse my things. Sure, I could upgrade a computer and keep using it, but the idea of actually fixing something? Wasn’t happening. Handymen and plumbers look more like sorcerers from where I’m sitting.

A Free Solution

I’ve been actively trying to change my consumerist ways, and simple things like applying Super Glue to a broken handle are a step in the right direction. For any would-be handyman like me who just doesn’t have the time and energy to commit to fixing and refurbishing, there is an increasingly popular solution: community organized repair events.

These are free community events that are popping up all over the country where you can bring in old or broken items and get help fixing them. Rather than tossing that broken lamp, you can spruce it up and use it for years to come.

What better way to combat planned obsolescence, excessive consumerism, and the endless onslaught of disposable goods that are filling our landfills and littering our world?

This growing movement has its roots in the Netherlands, where in 2009 a local sustainability advocate named Martine Postma started the first “Repair Cafe.” Since then, the idea has exploded in popularity. There are now 850 Repair Cafes in 20 countries.

The Bolton, Mass., chapter is a particularly compelling success story. Their popular drop-in clinics have inspired other groups of Boston-area tinkerers, such as the Somerville Tool Library, to host events called “Fixer Fairs,” where people are encouraged to take in everything from broken toasters to non-functioning staplers to mini-fridges on the fritz.

A cool thing about Boston’s Fixer Fair and other Repair Cafes is the emphasis on not just fixing the items, but supplying people with knowledge as well. They hope to empower people to be more proactive in fixing things themselves. It’s hard to believe it’s all free, but that’s part of the ethos of the whole movement.

mending a blouse

Free ‘Fixer Fairs’ and drop-in repair clinics help people give new life to broken appliances or mend old clothing that might otherwise end up in a landfill. Photo: Repair Cafe

To see if there’s a Repair Cafe near you, visit their website. If you live in Boston, Chicago, Portland, or Philadelphia, congrats. You already have a bustling, free community repair scene.

If there’s nothing near you, then you’re out of luck. Might as well order in some pizza and get started on some retail therapy. See how many small items you can order that arrive in boxes so big you have to turn them diagonally just to fit them through your front door. Then you’ll feel better.

NO! Don’t do that!

If you’re inspired to build your own community of fixers, it’s entirely possible. Repair Cafe allows you to open your own chapter, and your rights as a free person allow you to do something similar if you want. There’s no reason you can’t talk with members of your community about starting something. If you’d rather do it from the comfort of your home, you can put out the word on social media.

I just listened to an episode of the excellent podcast “Reply All” that showed how powerful a simple Facebook group can be. It told the story of a 50-year-old, non-political mother who used Facebook to organize one of the biggest political protests in Guatemalan history.

Most likely, people wanting to fix old coffee makers won’t be quite that passionate, but they are surely out there. For those such as myself who are still acclimating to a new city, a fixer fair could even double as a way to meet like-minded people in your community.

If you want to get involved in some way but aren’t quite sure where to start, you might want to check out The Story of Stuff project. They are passionate about trying to change the way we think when it comes to production and consumption, so they developed a quiz to help you find your calling. It helps you figure out if you’re better suited to communicate, organize, network, or perform some other function to get your unique venture off the ground.

Final Thoughts

I recently lost a computer mouse and bought a new one. The copy on the packaging bragged about how it would last “for three years!” They were bragging about their longevity. To me, this was like being hired for a job and then your boss saying, “Enjoy it while it lasts, you’ll be fired in three years. Isn’t that great?!”

My grandparents have a record player that was built when color TV seemed like a science-fiction fantasy, and that thing still works great. Yet you’re telling me a fist-sized piece of plastic with a scroll wheel should only last three years?

Let’s rage against the dying of the electronics. We need to harness our ingenuity and the DIY spirit of our communities to make sure we get the most out of our things. If we can step out of the consumerist cycle, we will do our part for the environment and we’ll have more time to focus on the things that truly matter.

Related Articles: 

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Savings update: where to find the best Christmas rates

Savers can earn a top 1.65 per cent before tax (1.32 per cent after tax) with the relaunch of the ICICI Bank easy-access HiSave Supersaver account.

Savers can earn a top 1.65 per cent before tax (1.32 per cent after tax) with the relaunch of the ICICI Bank easy-access HiSave Supersaver account.

The French RCI Bank pays the same rate, while Shawbrook Bank's new Easy Access 2 pays 1.45 per cent (1.16 per cent).

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3 Simple Rules for Teaching Your Kids About Money This Christmas (You’ll Love #2!)

If your kids are lucky enough to receive monetary gifts from relatives for Christmas, what do you do with them?

Do you let the kids choose how to spend the money? Or put it straight into college savings?
Well, there’s a specific way parents should handle their children’s monetary gifts, according to financial guru Suze Orman.

Her strategy is simple, but smart, so we had to share it with you…

Help Your Kids Develop Good Money Habits With This Strategy

Orman offers three rules for divvying up the holiday cash your kids receive. Of course, you can adjust percentages to your own needs, but we thought her framework was spot on.

1. Give Your Child Total Control of 50%

Orman says you should let your child choose what they want to do with half the money — no judgment or opinions allowed.

“Let your child learn through personal experience,” she says. “What they learn today will impact financial choices they make in the future.”

2. Save 40%

Though you can save for whatever you like, Orman says it’s important to have specific goals in mind — rather than just a general savings account.

“I personally think every child should be saving as much money as possible for college, even if it is 10 years away,” she says. “This is a natural way to start talking in an age appropriate way about the cost of an education.”

3. Donate 10%

Orman recommends letting your child choose a charity and donate a portion of their money to it.

“This is a fantastic opportunity to talk as a family about the importance of helping others, whether they are in our neighborhood or halfway around the globe,” she explains.

And I’d add one more rule: Your kids should send a handwritten thank you note — not a text or email — and tell the gift-giver how they plan to use the money.

My mom made me do this for every gift I received. Looking back, I’m so glad she did.

Help your kids develop good money habits this Christmas… I’m living proof they’ll thank you later!

To read Orman’s full post, click here.

Your Turn: Do you have any rules for your kids when it comes to monetary gifts?

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

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How to Start Your Own Home Jewelry Business for Less Than $20

Tell us a little bit about your direct sales company, Carin Bracelets, and how it got started. Carin bracelets was started after my husband and I lived abroad for a year and a half and were blessed enough to travel to many different countries. We were enriched by their cultures, art, and beautiful jewelry. I […]

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EE tops broadband complaints tables, again

EE is yet again the most complained about broadband provider in the UK, receiving twice as many complaints as the industry average between July and September.

EE is yet again the most complained about broadband provider in the UK, receiving twice as many complaints as the industry average between July and September. 

According to the latest figures from Ofcom, the communications regulator, EE received 45 complaints per 100,000 broadband customers - above the industry average of 22 per 100,000 customers.

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الأحد، 20 ديسمبر 2015

Sciota florist knows the power of flowers

Kate Kays got a call from a soldier stationed in the mountains of Afghanistan. His wedding anniversary was approaching and he wanted to personalize it, despite the distance.Kays has received some unusual requests in her 16 years as the owner of Miller’s Flower Shop by Kate in Sciota. But this one was truly different.The soldier asked if she would use a vase he bought on deployment. Kays agreed, and the soldier sent a Afghani-crafted, stone-carved [...]

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Have an Android Phone? This Company Will Pay You to Do Something You Already Do Every Day

How many times do you use your phone each day? 10? 15? 20?

If you’re anything like the rest of us, it’s probably much more.

As a country, we collectively check our phones more than 8 billion times each day. That’s 74 times a day for the average 18-24 year old.

Crazy, huh?

Now just imagine if you earned pennies throughout the day for using your phone — whether logging onto Facebook or checking to see if that guy or gal texted you.

It wouldn’t be a way to get rich quickly, but it would be a way to earn money with zero extra effort. And a company called Adme is making it happen.

That’s right: Your smartphone addiction can finally pay off.

Interested? Have an Android phone? Here’s how it works — plus details on a cool bonus you can get just for trying it out.

You’ll Earn Money Just for Using Your Phone

Full-time college student Heath Vasquez downloaded the Adme app a year and a half ago, and has since earned more than $60. He’s used it to buy food and household supplies.

“I like how it’s easy and doesn’t require any effort,” he says. “You just unlock your screen, and you earn money.”

Each time you wake up your phone, Adme shows you ads in a newsfeed-style platform. You can click on the ads, or simply swipe through them to get to your home screen.

Advertisers pay Adme to show you their ads, and Adme passes a portion of the revenue on to you.

Unlike other lockscreen apps, Adme is “non-incentivized,” meaning you don’t earn more money for clicking on ads.

Instead, Adme has developed an algorithm that pays you based on how much you use your phone. So if you want to click on the ad, you can — but you won’t miss out on money if it doesn’t interest you.

Stephanie Viera, a stay-at-home mom to two young boys, often clicks on the ads anyway. She uses the app to stay informed.

“I like to read the news,” she says. “I don’t always click on the news feed, but most of the time I do — and if I’m in a hurry, I’ll just swipe it across so I can do what I have to do.”

“You can [use Adme] any time,” she adds. “Simple. I really love it.”

Get Paid to Try It Out — and Refer Your Friends

Though Adme keeps the intricacies of its algorithm under wraps, it says most people earn $3 to $6 per month, and up to $8 per month if they’re heavy phone users.

Once your earnings reach $10, you can cash out via PayPal — Adme covers the fees.

Now through Jan. 15, 2016, Adme’s also running a special promotion to help you hit the $10 threshold even quicker. You’ll get $3 just for signing up for the app, plus $1 for each new user you refer.

If you have a big network or social media presence, referring your friends can help you earn much more quickly.

Take Alicia Jones, for example. She works in TV and has more than 70,000 followers on Instagram. By posting her Adme referral link to her profile, she earned more than $140 in just two months.

Of course, most of us don’t have networks anywhere near as big, but there’s still potential to quickly earn money promoting the app to family and friends.

Can You Really Earn Money Using Your Phone?

Yes.

As we discovered while using the app and talking to users, Adme is a legit way for Android owners to earn money just by using their phones.

“It really does pay,” Jones says. “It’s easy money and you don’t have to work for it. Doing what I do all day anyway: open my phone and just scroll, scroll, scroll.”

Keep in mind, though, it’s not a way to get rich quickly. You won’t earn big bucks with Adme.

But a true Penny Hoarder knows every penny helps — especially when they start turning into dollars.

“Sometimes when you need something, a little goes a long way,” Vasquez explains. “Even a penny is a lot.”

If you want to try the app, click here. Don’t forget you’ll get $3 just for signing up before Jan. 15, 2016!

Your Turn: Have you tried a lock screen app? Will you try Adme?

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

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3 Ways Amazon Prime is Helping Us Rock the Holidays — and How to Get it for FREE

The holiday season is a beautiful time of year, but some would also say it brings a lot of stress.

We at The Penny Hoarder aren’t exempt from it.

Between attending holiday parties, baking cookies and traveling over the river and through the woods, things are a bit hectic.

Add the fact this is a busy time of year for us work-wise, and it won’t be surprising if we go a little insane.

Thankfully, we have a tool that’s helping us through the holiday season with panache.

Here’s why we love Amazon Prime, and how you can get it for FREE.

How We’re Crushing the Holidays With Amazon Prime

Here are the three biggest ways Amazon Prime is saving our skin this holiday season:

1. We Stream Our Music Ad-Free

With Amazon Prime Music, we stream all our Christmas music without ads. Uninterrupted cheer. All the time.

… I think some people are probably less enthused about this than I am.

2. We Watch Free Movies When Our Boss Isn’t Looking

What’s the only thing better than watching Christmas movies? Watching Christmas movies when you’re supposed to be working!

So, when our boss isn’t looking, we use Amazon Prime Instant Video to stream feel-good movies and relax a little bit (and get paid!).

3. We Slack on Our Gifts Until the Last Minute

Because we’re busy writing about money-saving deals and tips for you, we don’t have a lot of time to shop.

Luckily, Amazon Prime comes with free two-day shipping on over a million items, so we can slack on our gifts until the last minute. (Just kidding, mom!)

Interested? Click here to get a FREE 30-day trial of Amazon Prime.

Penny Hoarder tip: Put a reminder in your calendar for 30 days from now, so you don’t accidentally get charged.

Your Turn: Do you use Amazon Prime? What’s your favorite feature?

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!

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

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Seven Things Everyone Should Know About Their Money

While watching a snippet of the Dr. Phil Show the other day, I heard a monologue that related intimately to personal finance.

“You cannot change what you do not acknowledge,” snipped Dr. Phil, who was desperately trying to counsel a broken family on coming together.

Later I learned this was one of Phil’s “life laws,” or principles he goes back to often and actually lists on his website. In case you were wondering, life law No. 1 is “You either get it or you don’t,” and No. 2 is “You create your own experience.” And “People do what works” is No. 3. I think most of us agree with those statements, right?

But No. 4 — “You cannot change what you do not acknowledge” — still caught me. When my husband and I were in debt many years ago, we were blissfully unaware of how perilous our situation really was. We had good jobs, yes, but we were spending all the money we made and always one layoff or illness away from losing it all.

Because we didn’t acknowledge the problem, we didn’t dare try to change it. Years later, it took a huge lightbulb moment for us to realize we could be doing a whole lot better. But until we had that “a-ha moment,” it was easy to skate through life without a care in the world.

Why is that?

“Get real with yourself about life and everybody in it,” writes Dr. Phil as a strategy for life law No. 4. “Be truthful about what isn’t working in your life. Stop making excuses and start making results.”

I can’t really say I’m a fan of the show, but geez, isn’t he spot on?

Whether you want to get your money straight, pay off debt, or simply reach your financial potential, it all starts with acknowledging that something isn’t quite right and, more importantly, being real about it.

Seven Things You Need to Know About Your Money

But being real isn’t about beating yourself up — at least I don’t think so. We’ve all made financial mistakes we aren’t proud of, but picking ourselves apart won’t heal them. We need to acknowledge our problems, yes, but only for the purpose of coming up with an actual solution.

That’s why it’s important to know your money inside and out — and not just the rewarding details, but your deep, dark secrets as well.

To get ahead in life — to take control — you have to get real and see things for how they really are. If you’re looking for a place to start, figure out these seven things about yourself and get real — once and for all.

No. 1: Your Net Worth

If you want a fairly clear picture of your financial health, take some time to figure out your net worth. This is normally calculated by taking your assets and subtracting your liabilities, but the process increases in complexity if you’ve got more than a few outputs and inputs.

The easiest way to figure out your net worth is to sign up for a free account with Personal Capital. Their net worth tracker will tell you exactly what you’re “worth” without asking for a dime in return.

However, you can accomplish the same thing with a pen and paper. Create a category for your assets (including your savings, retirement accounts, house, car, etc.) and another for your liabilities (debts such as your mortgage, car loan, credit card balances, or student loans), then compare the figures. Your net worth is whatever’s left after you subtract your liabilities from your assets.

While knowing your net worth may not seem like a big deal, it can be a game-changer, says J. Money of Budgets Are Sexy.

“We all like to think we know where our money is and how well we’re doing (or not), but seeing it in plain black and white tells a much more accurate picture,” he says. “The numbers never lie, and to be able to go back throughout the months and watch your progress is incredibly motivating.”

Whether you input your information in Personal Capital or calculate your net worth by adding and subtracting the figures on your own, knowing your net worth can be a powerful motivator.

“Whether you’re paying off debt or investing for the future, your net worth will reflect the moves and is one of the best ways to spend five minutes of your time each month,” says J. Money.

No. 2: Where Your Money Is Going

We’ve written about the importance of tracking your money before, and can’t underscore this lesson enough. If you don’t have any idea how much you’re spending on groceries or entertainment each month and constantly running short, you need to find out those crucial details right away. The longer you wait, the more it will cost you.

“Everyone should know where their money is going,” says TSD contributor and fee-only financial planner Matt Becker from Mom and Dad Money. “That is, how much money is coming in, how is it being spent, and how it is being saved. That information provides a baseline for where you are now and allows you to start making purposeful decisions about how you want to improve things going forward.”

In this post, we detail the step-by-step of tracking your spending, and exactly why this is so important. If you need help getting started, that’s a good place to begin.

No. 3: How Long Your Emergency Fund Could Last

Think you have enough cash in the bank to weather any financial storm? You might have plenty, or you might have a lot less than you think. Either way, it pays to know how much money you really have — and how long it might last if your family loses an income stream or someone becomes deathly ill.

“Everyone should know that their income is not guaranteed,” says financial expert Deacon Hayes from Well Kept Wallet. Many people spend money as if their income will last forever, he says, but that is seldom the case.

“As a financial coach, I have seen people lose their jobs, take a pay cut, or even one spouse decided to quit their job to stay at home with the kids,” says Deacon.

Knowing how long your emergency fund would last in unexpected circumstances or if the worst-case scenario played out is an essential part of protecting your family from the “what ifs” of life.

To find out, figure out your monthly expenses and compare them against the money you have saved in your emergency fund. If you’re having trouble figuring it out, our detailed post on How to Create a Bare-Bones Budget can help you figure out the bottom-dollar figure you need each month to get by.

pile of money on floor

How long could you live off your emergency fund? Photo: William Murphy

No. 4: Your After-Tax Income

Debt blogger Melanie Lockert from Dear Debt believes everyone should have a decent grasp on their after-tax income if they truly want to get ahead. We all know how much our salary is, right? But do most of us know exactly how much money we’re bringing home?

If you’re not using a monthly budget or tracking your spending the answer is probably “no.” And unfortunately, not knowing how much you actually take home can be a huge mistake, says Melanie.

“Many of us can think we make a lot of money, but after taxes, we’re not bringing home that much. Budgeting, saving, and investing all rely on your after-tax income and what you can contribute. If you know what you’re really making at the end of the day, you can control where your money goes and have a better understanding of what it can do for you.”

No. 5: Your Financial Goals

Money is “a tool you use to build a life you want to live, not something you use just to buy more stuff,” says Jim Wang of Wallet Hacks. “You should draw a picture of what you want your life to be in five, 10, 20 years and then use money to craft that life. All too often, we only think of the things we want to own, like cars or a particular house, rather than what we want our lives to be.”

For most people, this idea involves figuring out when you might be able to retire or reach financial independence. Like Jim says, we should all look at our money from the perspective of how it can help us get where we want to go.

Whether your goal is paying down debt once and for all, retiring early at 55, or paying off your house, it helps to write those goals down. Only then can you create a realistic plan to make all your dreams come true.

No. 6: Your Credit Score

Your credit score isn’t just a measure of your financial health; this three-digit number can be used to decide how much interest you’ll pay if you take out a loan for a home or car — and if you qualify for that loan at all.

For the most part, a good or above average credit score (720+) is enough to qualify for the best loans and rates, but anything lower might lead you to struggle to find a good deal or qualify at all.

First things first: To figure out where you are in terms of credit, you need to figure out what your credit score is. The easiest way for most people to do this is to sign up for a free Credit Karma account. By inputting your personal information, you’ll gain access to a wide range of details listed on your report — plus estimated credit scores from both TransUnion and Equifax.

If you want to dig a little deeper, you can also request a copy of your credit report from the three credit reporting agencies — Equifax, Experian, and TransUnion – once per year at AnnualCreditReport.com. This will give you a sense of your credit history and show you any delinquencies or dings to your credit, but it doesn’t provide you with an actual credit score.

Finally, some credit card issuers, such as Discover, will include your free credit score with each monthly statement as a cardholder perk.

No. 7: How Much Money You Owe

If you want to dig your way out of debt, it’s crucial that you know exactly how much money you owe. After all, you can’t really create a plan of attack unless you’re intimately acquainted with the actual balances on your loans, credit cards, and other debts.

We often focus too much on the monthly payment, but those monthly bills only tell part of the story. If you want to get out of debt, acknowledging how much debt you’re in is the first step you need to take.

To find out, break out all your monthly bills, including car payments, mortgage payments, student loans, credit card bills, and anything else you might have, and total the amounts owed.

What you find might surprise you — even scare you. But sometimes, that “shock value” is the most useful tool you have to turn your situation around.

“It’s important to know how much debt you owe, because it stands in the way of your financial freedom,” says Lance Cothern, author of Money Manifesto, who paid off $80,000 in student loan debt in three years. “Once you know how much debt you have, you can put together a real plan to start paying it down based on what makes sense for your family.”

Final Thoughts

While none of these seven details is earth-shattering on its own, as a group they represent a total picture of where you are financially — and where you’re going. That’s why it’s important to face the music – to be real. If you spend your entire life with your head in the sand, you may look back one day and wish you had done things differently.

This sad truth begs the question, “Why not get real with your finances and take actionable steps to get ahead now instead?”

Unfortunately, it isn’t always that easy. I hate to circle back to Dr. Phil, but I’m afraid I must. After reading through his life laws and thinking them through, another one caught my eye.

“Life rewards action,” writes Dr. Phil. “Make careful decisions and then pull the trigger. Learn that the world couldn’t care less about thoughts without actions.”

Once again, I am drawn in by the simplicity and truthfulness of his advice. While thoughts and actions are the first step to getting out of debt and becoming wealthy, they really do mean nothing if you never follow through.

He goes on…

“Talk is cheap. It’s what you do that determines the script of your life. Translate your insights, understandings and awareness into purposeful, meaningful, constructive actions. They are of no value until then. Measure yourself and others based on results — not intentions or words. Use any pain you have to propel you out of the situation you are in and to get you where you want to be. The same pain that burdens you now could be turned to your advantage. It may be the very motivation you need to change your life.”

Dr. Phil is right. Wishful thinking might help you sleep at night, but it won’t pay off your debts, and it won’t help you become rich.

Knowing these seven things about your money is the first step, but taking action is the only thing that can change your life for the better. You cannot change what you do not acknowledge, and you cannot get ahead if you never really know where you are.

Do you know all of these details about your finances? Why or why not? What is the most important thing you ever learned about your finances?

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Let Them Unwrap Awesome: College Students Will Love These 15 Gifts Under $25

Your college student almost definitely doesn’t want these gifts this year: A Dust Buster. Slippers. New notebooks.

I mean, I wanted all those items during my college years and was thrilled to receive them, but those gifts aren’t exactly exciting. I wasn’t much of a party animal in college, if you couldn’t guess.

Most college students love surprises. Especially useful surprises.

So don’t let them down this year. Whether it’s your little sister, a cousin or your own kids in college, get ready to rumble this gift-giving season with presents that will truly surprise them.

Here are 15 gifts your college student actually wants — and they’re all $25 or less.

1. French Press — $16.35

A caffeine habit gets expensive, doesn’t it?

Make it easier for your favorite student to get their fix without going broke: Get them a small French press they can tuck away in their dorm room.

Got a few extra bucks to spare? Get them an electric kettle to heat the water for just $13.99. Mornings just got WAY easier.

2. “Namast’ay in Bed” Pillow Case — $20

When the caffeine finally wears off, students can drift off to sleep on this pillow case encouraging major chill vibes.

Young yogis will love the joke, and everyone else will appreciate your appreciation of their napping habit.

3. Stainless Water Bottle — $17.54

More and more campuses are installing water refill stations to make it easier for students to ditch bottled water — and to reduce the number of embarrassing water-fountain refill spills.

Give a Klean Kanteen 27-ounce bottle in their favorite color to help your student stay hydrated.

4. Bedside Storage Caddy — $7.15

Ever fallen asleep studying — only to find yourself snuggled up with your laptop, notebooks and phone in the morning?

It’s not exactly a good night’s sleep.

Make it easier to tuck away essentials before bed with a caddy that helps save precious space on desks and nightstands.

5. Stitchagram Coin Purse — $25

Put a bird on it! Or their dog, or their bestie, or maybe a few selfies of you.

Upload photos from Instagram or your computer to make a photo collage for a handmade coin purse.

If your student is always stashing away quarters for laundry or trying to find their earbuds, a coin purse is the perfect size to help them get a little more organized.

6. Adult Coloring Book — $9.23

Coloring is all the rage for grown folks.

Pick up a “stress-relieving” book of patterns for your student to turn to during midterms, finals or those nights when their roommate simply refuses to turn off their annoying ringtone.

Add a dozen colored pencils for about $5 and they’ve got a super-chill activity to last the whole semester.

7. Earbuds — $5.99

I’ve been out of college way too long to admit this, but I lose my earbuds. All. The. Time.

I’m guessing the average college student could use a spare pair to keep handy, as well.

If you want to give a gift that hands-down, 100% will get used and used often, earbuds are just the ticket.

8. Netflix Gift Card — $25

Monthly subscription costs add up fast, so help your student pay for the one they just can’t live without: Netflix.

Monthly plans start at $8.99 per month, but digitally delivered gift cards via Amazon start at $25. It’ll be the gift that keeps on giving! For three months!

9. Poppin Folio — $14

Help your fave student deliver their resume or term paper in style with a sleek document folio from Poppin.

There are plenty of color options, including luxe metallics for when they want to make an entrance.

Sadly, the Lisa Frank Trapper Keeper is not making the best impression. No, not even the one with the unicorns. Put it away.

10. Toaster Grilled Cheese Bags — $9.99

Ever wanted to whip up a quick grilled cheese without dealing with dishes?

Pop it all in the toaster — just don’t forget to put that delicious sandwich in a grilled-cheese bag first. These little Teflon-coated guys help heat up a sandwich that’s crispy on the outside, gooey on the inside, and tidy. And you can reuse them!

11. To-Do List — $6.95

Sometimes the best way to get organized is with an old-fashioned paper list.

Grab this one with sections for tasks, errands and correspondence (read: emails that need to be replied to yesterday) to help a student you love stay on track.

Kick in the Passive-Aggressive Note pad if they’ve got a roommate who never restocks anything in the fridge.

12. Wireless Wipes — $8.18

College is pretty gross. You know that cell phone goes to the bathroom. Help keep it a little cleaner with Wireless Wipes in a variety of fun scents.

I like rosemary peppermint because it makes my phone smell so fresh and so clean.

13. Mini Donut Maker — $24.95

Ah, snacks. They just bring college students together.

Help make your favorite student the talk of the dorm whenever they fire up the donut maker.

And honestly, it’s always a good time for a donut.

14. Cards Against Humanity — $25

This simple card game of questions and answers livens up any gathering.

Buy your student a set for $25 so they can stop inviting Nicole to parties she doesn’t go to because she’s the only friend who has it.

Really on a budget? Download the game for free and print the cards. But by the time you buy cardstock and printer ink, you may just want to plunk down your credit card for the real thing.

15. Graze — $11.99

Back to what’s important: snacks.

Snack subscription box Graze ships tasty snacks featuring natural ingredients. Once you sign up for an account, you can send a one-time box, packed with eight snacks, to anyone you wish.

Snacks by mail? Sign me up, please.

Your Turn: What gifts will you be giving college students this year? Did we forget any good ones?

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

Lisa Rowan is a writer, editor and podcaster living in Washington, D.C. She wishes there had been an energy drink subscription box for her grad school night classes.

The post Let Them Unwrap Awesome: College Students Will Love These 15 Gifts Under $25 appeared first on The Penny Hoarder.



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