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الأربعاء، 11 أكتوبر 2017

The Lonely, Unusual Way This Guy Paid Off $25K in Student Loans in 9 Months

Robert Langellier just needed to pay off his student loans.

It was May 2014, and armed with a journalism degree from the University of Missouri, he drew up a plan.

For the next year he’d forget his aspirations to be a literary journalist.

Instead, he’d tuck himself away in his parents’ Springfield, Illinois, home and piece together an income with part-time odd jobs. He figured within a year he could pay off the nearly $25,000 he collectively owed to the government and his parents.

One of his first stabs at employment was as a waiter at a shiny new restaurant in town. On Langellier’s second day, he battled the (insert expletive here) point-of-sale machine.

Within an hour of his second shift, an owner pulled him aside and fired him. That was that.

Finding the Right Gig

Langellier went back to square one: Craigslist.

He’d been using the online classified site to look for odd jobs. In the midst of the freelance writing gigs and a glut of restaurant positions, he noticed an abundance of long-haul truck driver jobs.

The more he thought about it, the more attractive hitting the road sounded.

Always up for an adventure, Langellier decided to take out one last $3,500 loan to pay for trucking school.

The Perks of Being a Truck Driver

Long-haul trucking is appealing on many levels when you break down the statistics (from the U.S. Department of Labor) and the logistics:

  • Average median pay in 2016 was nearly $21 an hour, $41,000 per year.
  • No experience is necessary, but a high school diploma is recommended and a commercial driver’s license (CDL) is required.
  • Job training is short term.
  • No rent, in some cases
  • No car insurance or car payments, if you’re on the road full time

It’s also a free way to travel.

Langellier stopped in Denver; Kansas City, Missouri; Minneapolis; Oklahoma City; Memphis, Tennessee; St. Louis; and Wichita, Kansas to see old friends. He even stopped by his home in Springfield.

Once every three weeks, Langellier was allowed a few days off. He used it to hike Yellowstone National Park, soak in New Mexico springs, explore New York City and work on an organic farm in Wisconsin.

Saving Money While Working as a Truck Driver

Langellier hit the road in October 2014.

Though pay calculations are complicated, Langellier basically earned 28 to 45 cents per mile. He drove an average of 8.5 hours a day — about 500 miles — and made a minimum of about $4,000 a month.

By April 2015, he’d paid off his last federal loan. By mid-July, he’d paid his parents back. But he continued to drive with the intention of stockpiling funds.

On his one-year trucking anniversary, he decided he’d had enough and turned in his keys with about $18,000 in the bank.
Next, he capitalized on his adventure by writing about it for Esquire and gaining a freelance gig.

The Pitfalls of Trucking

Before jumping into the driver’s seat, Langellier’s biggest piece of advice is to consider the downfalls of trucking.

Most notably, Langellier got pulled into these weird, inwardly reflective journeys — alone.

He spent most of his time trying not to run over cars, dodging debris in the road, talking to himself, counting the money he was making — and money he was still owed — and getting sidetracked with thoughts about the number of subways in the nation.

Although Langellier often opted to drive during the day, he was initially paired with a training partner who enjoyed nighttime drives. That’s when Langellier drifted off into a post-sleep, incoherent world — and into a field on the side of the road.

Not only was it mentally taxing, but he physically perched in a seat all day as he maneuvered a truck-full of anything from cat litter for PetSmart to mattresses for IKEA.

Langellier was young and more immune to these hardships, but, as he wrote, truck drivers are known to have high obesity rates and have at least one chronic health risk, such as smoking or hypertension.

This could partly be due to the food available on the road. Piecing together meals at gas stations — think Zebra Cakes, Cheetos, hot dogs — wasn’t ideal.

Injuries aren’t uncommon either. Langellier remembers the time a 1,000-pound pallet of toilet paper fell on him.

Considering these factors, the 87% industry turnover rate he mentioned makes sense.

Want to Become a Truck Driver?

The gig certainly takes the right personality, Langellier says.

If the job sounds appealing, he suggests simply Googling “trucking school,” plus the city you live in. Schools typically work to place you with a company upon graduation (or, of course, you can just hit up Craigslist).

And if you like the idea of driving to pay off your student loans but aren’t too sure about all of those 18 wheels, consider these other driving jobs.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder.

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



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7 Ways This Freelancer Makes $40/Hour From Her Home in Costa Rica

Before I started working online, I thought the only freelance services business owners were willing to pay for were writing, web development and graphic design. Everyone I knew who was working from home and earning a good, solid income seemed to fit into one of those three areas of specialization.

I didn’t have any of those skills.

When my husband and I decided to move to Costa Rica in 2011, my plan was to earn just enough to cover our living expenses by providing freelance administrative services.

In other words, I’d become a virtual assistant.

Along the way, I discovered a middle ground between highly specialized copywriting, coding and design work; and low-rate administrative services virtual assistants typically provide, like data entry, scheduling and inbox management.

The middle ground focuses on important services that businesses need, but that aren’t so specialized I’d need to go back to college or spend a ton of time studying.

Taking advantage of this middle ground helped me increase my freelance rate from $20 to $40 per hour, while getting more client requests for ongoing work.

Here are seven virtual assistant services you can offer as a freelancer, along with an idea of potential rates for each one.

1. Proofread Blog Posts

Business owners know they need to attract visitors to their websites. One great way to do this is through blogging. Running a blog generally means working with a lot of content.

Draft blog posts will be come in from all angles: paid writers, the business owner, guest contributors, company staff, interns and even customers. Someone needs to carefully proofread and edit each post before it’s published. Why not you?

Estimated hourly rate: $15 to $25

2. Format Posts in WordPress

Once a blog post is polished and error-free, the next step is to publish it using the business’s content management system. This is usually the ever popular WordPress. Great news: WordPress is easy to learn.

If you’re new to freelancing and starting, like I did, with no coding skills, you’ll be just fine.

You don’t need to know how to code to format and optimize blog posts. You can master the process in one week or less using resources available on Udemy or WordPress 101.

Estimated hourly rate: $20 to $40

3. Manage a Blog Editorial Calendar and Brainstorm Headlines

An editorial calendar is simply a plan and schedule of all the upcoming blog posts the site will publish.

Brainstorm topic ideas and headlines that will appeal to the business’ target audience and help boost the site’s search engine rankings. Space the topics out in a logical way on an online calendar or spreadsheet.

Estimated hourly rate: $30 to $50

4. Curate Content for Social Media

Anyone can research interesting article links, images and quote graphics, but not everyone demonstrates the care or attention to detail needed to provide value to a business’s audience.

Do you think you could manage it? Could you put yourself in the shoes of someone who frequents your client’s blog and figure out what kinds of headlines and images they’d find most helpful, entertaining or inspiring? If you can, you could get paid for the skill.

Estimated hourly rate: $15 to $40

5. Create Landing Pages

To build an audience and sell products or services, business owners have an ongoing need for special action-focused web pages called “landing pages.”

A landing page might encourage people to subscribe to an email list, register for a webinar, buy a product or get excited about an upcoming launch.

If you can create great landing pages, you can pull in a great freelance income. The impact of this service on your client’s business growth is immediate and obvious.

Rest assured, you still don’t have to learn any code. Using WordPress page templates or user-friendly software tools like Leadpages and Unbounce, you can lay out your client’s marketing message perfectly.

Estimated hourly rate: $40 to $60

6. Format Email Newsletters

Take that same copy you’ve been using for social media updates or in blog posts, and this time load it into a newsletter using email marketing software such as MailChimp, Infusionsoft or GetResponse.

You can use the software to work from an existing template or create a new layout, put the right fonts in the right places, arrange the images where they look best and double-check all the hyperlinks.

Schedule the newsletter, and you’ve just performed one of the most in-demand freelance services in the online business world.

Imagine how your weekly income could start to build if you were supporting just five businesses with their email marketing for one hour’s pay each, every week.

Estimated hourly rate: $25 to $40

7. Provide Customer Support

Businesses often receive a ton of audience feedback, questions and inquiries. To respond to all this incoming correspondence, owners need help from detail-oriented freelancers.

In fact, my first online job involved responding to customer support emails and formatting (not writing) blog posts for approximately 20 billable hours each week. It was a great way to get my foot in the door — and I’ve built my business from there.

Estimated hourly rate: $15 to $30

How to Find Freelance Work in Virtual Assistant Services

Now that you know what you can do to help business owners, the next step is to find clients. To do this, you can try either the reactive or proactive approach.

Find Virtual Assistant Jobs Reactively

The first option is to respond to job posts on freelancer platforms like Upwork and Elance.

Search in the categories related to marketing, sales and administration, and focus on keyword phrases like “blog management,” “social media” and “email marketing.” For gigs focused on online marketing, set up a profile on CloudPeeps and review job listings.

When I started working online, I found four of my first five clients through Elance with rates between $17 and $25 per hour. One of those jobs expanded into full-time work in online marketing support after a couple of months.

To weed out the bad from the good opportunities, I read each new job posting in a given category once per day, narrowing them down to a shortlist of saved jobs.

I consider how the tasks are described, what kind of tone the business owner uses and how I could make a personal connection in my pitch.

I know it’s a numbers game — even if only one out of 50 opportunities is relevant for my experience and pays a reasonable rate, consistently checking those new listings means I’ll find it.

Find Virtual Assistant Jobs Proactively

The second option is to reach out to business owners via email and social media, introduce yourself and ask if they need support in a specific area of their business.

Be clear, be confident and be brief. You’ll be surprised by the number of times you hear “please tell me more.” LinkedIn is the perfect place to get started with this type of proactive networking.

In addition, get yourself a new email address and sign up for newsletters from the businesses you’d love to work with someday.

By taking time to scan those newsletters each week, even just their subject lines, you’ll start to get familiar with their voices, strategies and plans. This knowledge puts you in the perfect position to know when the business might be expanding or changing, so you can jump in with a timely offer.

(Don’t want another email address? You can create a filter in Gmail so these messages skip your inbox and go straight to a folder called “newsletters,” where they’ll be out of your way until you want to review them.)

Create Your Own Job-Search Strategy

Don’t be afraid to use a mix of both approaches.

In my experience, the reactive approach usually helps you get work more quickly, while the proactive approach helps you earn a higher rate. Once you try a bit of both, decide which one or what combination works best for you.

Start with one of the services on the list, decide on the resource you’ll use to learn it. Find your first paying client and your virtual assistant business is underway!

Start by offering virtual assistant services as a side hustle for extra cash, or commit to rounding out your knowledge in each of the skills to make it a full-time income you can take with you anywhere in the world.

Danielle Greason, founder of Greason Media, quit her job and moved to Costa Rica with her family to start a new freedom lifestyle working online. Through her blog at VA Lifestyle Design, she helps aspiring freelancers to get the skills they need to earn money anywhere in the world there’s a WiFi connection.

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



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7 Creative Freelance Gigs You’ve Never Thought of Before

When you hear the term “freelance,” which careers come to mind? Chances are they’re something like writer, editor, journalist, web designer or social media manager.

If you’re not interested in content marketing, can you still start a business as a freelancer?

Definitely.

If you’re dead set on living the freelance lifestyle but aren’t quite sure what kind of services you’ll offer, consider these unusual freelance careers. One of them might just be the opportunity you’re looking for.

1. Calligrapher

Maybe you don’t want to be a content writer, but if you have excellent handwriting skills and a set of calligraphy tools, you can address envelopes. You could make $2 to $5 a pop just for being a talented calligraphy writer!

It doesn’t sound like a lot, but book a wedding with 100 guests, and you could rake in $200 or more for handwritten invites.

Launch your own website to sell your services, or offer calligraphy through Etsy. For example, Margo Dittmer gets creative with her calligraphy services and sells custom wedding certificates for $175 each on Etsy.

2. Date Concierge

If you’ve thought about being a freelance event planner but don’t want to plan big events like weddings, get your foot in the door with couples who haven’t thought of marriage yet.

As a date concierge, you plan the dates couples don’t have time to plan themselves. You’ll do everything from developing the date idea to booking the restaurant reservations and car rental.

Freelance date concierge Brenndon Knox charged one couple $12.50 per hour for his services in 2012. Depending on your clientele, you could easily charge more today.

Who knows? Your clients may hear wedding bells thanks to you, and if you’re into it, they might ask you to plan their wedding, too!

3. Fabric Reseller

Maybe you’ve toyed with the idea of starting your own clothing alteration business, but it doesn’t seem quite right? Consider becoming a fabric reseller.

You’ll have to visit fabric sales or buy wholesale fabrics and assemble small quantities into appropriate packages. There’s a decent demand for this type of fabric bundle in the quilting, scrapbooking and craft markets. Check out some of these packages on Etsy for inspiration.

4. Virtual Recruiter

Do you have the skills and connections to find the right employees or freelancers for jobs? Try working as a virtual recruiter.

As a freelance recruiter, you could offer services like:

  • Posting jobs
  • Screening resumes
  • Handling preliminary interviews
  • Negotiating salaries

If you wanted to expand, you could work the other way around and consult with job seekers to find their perfect career opportunities.

Dorothy Rawlinson works in this industry and says most virtual recruiters are paid on commission.

5. PowerPoint Presentation Designer

If you have a knack for designing awesome PowerPoint presentations, turn your talent into a money-maker.

Graphic designer Magda Maslowska designs custom presentations and infographics for businesses and keynote speakers who don’t have the time or skills to do it themselves. If you have an eye for great presentations, consider launching a business of your own.

6. Children’s Book Illustrator

Love drawing or designing cute images with Adobe Illustrator? You could make money illustrating children’s books. The type of work you can do and the amount you can make varies widely.

The good news is self-publishing is on the rise. Children’s book authors will turn to freelance illustrators to help their stories come alive, so now could be a great time to offer your creative services.

7. Genealogist

Love putting together puzzling family trees? People will pay you to avoid doing it on their own.

Anthony Adolph is a professional freelance genealogist who charges between £50 and £500 per request. If you’ve been a hobby genealogist for any amount of time, you could easily charge these rates with the right knowledge base.

Get Creative to Find Freelance Jobs

As these options show, freelance careers aren’t limited to the writing or marketing industries. Branch out, consider your own interests and talents, and get creative with your offerings.

Lisa Stein owns FreelanceMom.com and is a college business professor and a mom to two growing daughters. Lisa is dedicated to playing a part in helping women and moms run businesses they love, help support themselves and their families, and create flexible lifestyles.

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



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Lowe’s Is Hiring Thousands of Workers in 3 States. Here’s How to Apply

Lowe’s is hiring thousands of workers in Florida, Georgia and South Carolina to help serve people impacted by Hurricane Irma.

Available jobs include greeter, head cashier, customer service associate and assembler, among others.

But if these jobs aren’t what you’re looking for, be sure to keep an eye on our Jobs page on Facebook. We post new opportunities there all the time.

You can apply online for any of the jobs, but if you live in Florida you can also do so in person at one of the career fairs the company is holding at these locations:

Wednesday, Oct. 11:  9 a.m. to 3 p.m.

  • Lake City:  3463 NW Bascom Norris Dr., Lake City, Florida

Thursday, Oct. 12: 3 p.m. to 7 p.m. and Friday, Oct. 13: 9 a.m. to 1 p.m.

  • Pinellas Park: 7301 Park Blvd. N, Pinellas Park, Florida
  • Tarpon Springs: 41800 U.S. Highway 19 N, Tarpon Springs, Florida
  • S. Clearwater: 2619 Gulf to Bay Blvd., Clearwater, Florida
  • Land O’ Lakes: 21500 State Road 54, Lutz, Florida
  • Brandon: 11375 Causeway Blvd, Brandon, Florida
  • Central Tampa: 6275 W Waters Ave, Tampa, Florida

Thursday, October 19, 1 p.m. to 6 p.m.

  • Bradenton: 7395 52nd Place E, Bradenton, Florida

If you attend one of the career fairs, be sure to take along your Social Security card and a government-issued photo identification, like a driver’s license or passport.

The jobs offer “competitive pay and benefits including incentives,” according to the job announcement.

Lisa McGreevy is a staff writer at The Penny Hoarder. She loves telling readers about new job opportunities so look her up on Twitter @lisah if you’ve got a tip to share.

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



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How to Maximize Rewards During Southwest Flash Sale

Southwest flyers and spontaneous travelers have a reason to celebrate — at least until Thursday. As part of a limited-time fare sale, Southwest Airlines is offering astonishingly low rates on many domestic and international flights.

Flyers can depart from over 100 cities, including locations in the U.S., the Caribbean and Mexico. All tickets are one-way, and must be booked by Oct. 12 (Thursday). Here’s a list of available flight dates (Friday and Sunday flight dates are excluded):

Domestic travel:

  • Oct. 31 – Dec. 19, 2017
  • Jan. 3 – Feb. 14, 2018

Travel to/from San Juan, Puerto Rico:

  • Oct. 31 – Dec. 7, 2017
  • Jan. 16 – March 1, 2018

International travel:

  • Oct. 31 – Dec. 13, 2017
  • Jan. 10 – March 2, 2018

The lowest prices tend to go for Southwest’s shortest domestic routes (such as Des Moines to St. Louis), but prices are down all across the board. One-way domestic flights are priced as low as $49, (or 2,330 points for Southwest Rapid Rewards members), and international flights are priced as low as $59 (2,1610 points).

Using Rapid Rewards®

New holders who have already earned and received their signup bonus points (spend $1,000 on purchases within the first three months of card ownership to earn 40,000 points) can really cash in on this deal. With fares running as low as 2,330 points, that’s enough to cover airfare to your destination and back!

If you’re still brand-new to the card and you haven’t earned your points yet, don’t worry: Southwest holds flash sales every year.

Cardholders also earn 2X points per dollar spent on Southwest® airfare and purchases made through Rapid Rewards® purchases, as well as 1X points per dollar with all other purchases. So if you’ve been planning a spontaneous vacation, Southwest’s flash sale is the perfect opportunity to earn points.

Using Chase and Discover

New holders can earn a hefty signup bonus of their own — 50,000 points after spending $4,000 on purchases within the first three months of card ownership. That’s in the addition to the 2X points per dollar earned by travelling and dining worldwide.

Southwest is a Chase Ultimate Rewards® partner, and points transfer instantly at a 1:1 rate, making it easy to use your Chase card to book low rates.

cardholders earn a solid 1.5X miles per dollar spent on all transactions. And at the end of their first year, members earn a mile-for-mile match, doubling the worth of their rewards. With incredibly low Southwest rates until Thursday, your Discover card might be able to help you fly for free.

Southwest is the biggest budget-friendly carrier in the world, and the flash sale takes their pricing even lower. For more information on the , as well as the and the card, check out our list of the best airline credit cards for 2017.

The post How to Maximize Rewards During Southwest Flash Sale appeared first on The Simple Dollar.



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How to Grow Your Email List as an Ecommerce Brand (A Beginner’s Guide)

It’s important you recognize the significance of your email marketing strategy.

It’s an essential method of communication with your ecommerce customers.

Email will probably be your most profitable channel if you nurture it right.

Don’t believe me? Activewear brand Rone is able to generate $80,000 in sales during product launch purely from its email list.

But before you can start sending out emails, you need to build your list.

Not sure where to start?

Don’t worry—I’ve got you covered.

I have a ton of experience building email lists for my companies: Crazy Egg, Kissmetrics, Hello Bar, and my blog.

While none of these businesses have an ecommerce store, you can still use many of the strategies I used in your list building.

I even have some other methods specifically designed for gaining exposure and increasing conversions on your ecommerce platform.

Here’s what you need to know before you start building lists.

Signup forms on the website

You’ve got to give your customers plenty of options to sign up for your email list.

Having a signup form on your website is a pretty standard option.

While it may not be the most effective way to build your email list, it’s a necessity and has to be somewhere on your site.

But where do you put it?

The most optimal location to place your signup form, which will show up on each page, is in the footer:

image1 7

While the number of companies using the footer form to solicit signups is slightly down in 2017 compared to 2016, the footer is still by far the most common placement for an opt-in location.

By the time your customers reach the footer, they have already had a chance to browse through your site and get a feel for your brand and product.

Now, they can make a more informed decision if they want to be on your email list.

This is different from having your opt-in form in the header because your visitors may feel spammed or forced to sign up too soon.

Chances are, joining your email list is not the first thing on someone’s mind when they visit your website.

The customer has other priorities and intentions.

So ease them into it, and put your opt-in form at the bottom of your page.

Here’s an example from the Adidas store:

image9 7

If you want to sign up for their email list, you can enter your email address at the bottom of their page.

Notice that Adidas also gives you an incentive to sign up.

Get news and 15% off.

It’s a great way to get more people on board.

We’ll discuss incentives in greater detail shortly.

If you have an ecommerce store and you’re just getting your feet wet with your list building strategy, adding an opt-in option to your footer is a logical place to start.

Use standard popups and incentive-based popups

Based on the graph we looked at earlier, popup ads are the second most popular method of gathering email addresses on websites.

I think they are more effective, so I’m surprised more ecommerce sites aren’t using this strategy.

Don’t believe me?

Well, the numbers don’t lie.

Brian Dean at Backlinko added a popup to his website, which looked like this:

image2 7

The results were undeniable.

The popup had a conversion rate of 3.42%.

Before implementing the popup, Brian was getting 35 people subscribing to his newsletter each day.

After he implemented the popup strategy, this number jumped to 75 subscribers per day.

He’s not the only one who had success with popups.

According to a case study by OptiMonk, companies like BitNinja got 65% more leads and saw a 114% improvement in their subscriber rates.

This was all done with a simple popup.

Companies may be hesitant to use popups because they have a bad reputation.

The word popup can sound like spam—something intrusive and unwanted by the users.

While this may hold true for harmful, malicious, or unwanted advertisement popups, that’s not the case with our list-building strategy.

The consumer is already on your website.

Your popup isn’t opening a new window or spamming them with irrelevant content.

In fact, the information may be extremely useful for the visitors, especially if your popup adds an incentive.

image3 7

“Sign up for emails” isn’t the most effective way to build your list.

Why should the consumer provide you with their email address?

You need to give them a reason.

Look back at some of the examples we saw earlier.

  • Adidas – “Get news and 15% off.”
  • Backlinko – “Get exclusive strategies for more traffic.”

What’s your incentive?

Forever21 offers customers 10% off with this popup strategy:

image12 6

Don’t think of popups in a negative way.

You should be using this strategy to build the email list for your ecommerce website.

Just make sure you give your customers a good incentive to subscribe.

Collect email addresses from customers making a purchase

People are hesitant to give out their information.

It’s understandable.

There’s a good chance your customers have had some negative experiences with other companies after giving out their email addresses.

A few bad apples ruined it for the rest of us.

They got a hold of their customers’ email information and abused the trust.

Spam.

Sending out way too many promotions.

Your customers do not want many emails.

image10 7

It’s the biggest issue reported by consumers.

After some bad experiences, people may not be so willing to hand over their email addresses to every brand that asks for it.

You may need to get creative.

Ask for your customers’ email addresses while they are finalizing the order.

But give them a reason.

You’re not adding them to your email list just yet, but you’ll need to send them an order confirmation.

Here’s a great example from SAXX:

image7 7

The email address is required to check out.

Why?

SAXX will send you a confirmation of your order.

They also don’t force you to create an account.

Forcing the customer to make a profile in order to check out is one of the top reasons ecommerce sites experience shopping cart abandonment.

So it’s an added bonus that this checkout form specifies that.

All right, let’s get back to building your email list.

You have an excuse to send them some emails now.

Specifically, you can email your customer four times before they officially sign up for your email list or newsletter.

Here’s what you send:

  1. Order confirmation message.
  2. Email stating that the order has shipped.
  3. Confirmation when the package gets delivered.
  4. “How did we do?” follow-up message.

Each of these emails is a chance for you to get these people on to your subscriber list.

Make sure you have an option in each message that allows the customer to join.

You already have all their information, so it should be a simple process taking only one or two clicks on the part of the consumer to sign up.

But keep in mind, the majority of people don’t want to disclose personal data.

image4 7

That’s why most of the top Internet retailers are only asking for email addresses and names.

Requiring too much personal information to join a subscription list could be the reason why a customer decides not to subscribe.

If your customers are hesitant, just ask for their email addresses while they check out and finalize their purchases.

Then you can send a drip campaign with subsequent messages about the status of their orders.

This is a prime opportunity to get more subscribers.

However, if the customer still doesn’t sign up, don’t keep harassing them.

You’ll have another opportunity to send the same drip campaign when they make another purchase in the future.

Develop a segmentation strategy

Once you add someone to your email list, make sure to segment the user into a specific category.

Not every message you send will be applicable to everyone on your subscriber list.

This is why a proper email segmentation strategy is absolutely essential.

These are some of the top benefits of segmenting your email lists:

  • increased open rates
  • improved unsubscribe rates
  • higher customer retention
  • fewer spam complaints

Email segmentation will ensure your content is relevant to each subscriber.

Let’s look at an easy example.

If you have customers all over the world, sending a promotion for the 4th of July is not relevant to everyone.

Independence Day in America is only relevant to your customers in the United States.

Geographic location is an obvious way to create segments, but it’s not the only way.

image11 6

The graph above shows you some other data you can take into consideration when developing your lists.

It’s a great reference to make sure your content is relevant to all subscribers in each segment.

So before you start building your email lists, think about some general segments you’ll want to use.

Keep in mind, as you continue to add subscribers, you may slightly change or tweak your segmentation strategy.

It’s not a perfect process, and you’ll still get some customers who’ll unsubscribe or feel like they’re getting irrelevant emails.

That’s inevitable.

But the key is making sure you minimize these instances.

It’s a difficult strategy to master, but it needs to be a top priority.

image5 7

Improving segmentation and increasing subscriber engagement are the top two initiatives for email marketers.

Engagement and segmentation go hand in hand.

Proper segmentation will ultimately increase engagement.

It’s important you recognize all of this before you start building your list.

Don’t just start mass emailing everyone until you can figure out what messages are relevant to each subscriber.

Create interactivity with your email marketing campaigns

Once you have customers on your email subscriber list, you’ll want to make sure you keep them there.

Don’t give them a reason to unsubscribe.

You spent all this time and effort acquiring their email addresses, now you need to keep them engaged.

How can you accomplish this?

Follow the trends.

Use interactive emails to stay relevant.

image8 7

This is the top email marketing trend of 2017.

Here are some of the best ways you can increase interactivity in your emails:

  • use real-time marketing
  • incorporate reviews, polls, and surveys
  • run scratch card advertisements
  • add menus to the message
  • incorporate videos within the email
  • use live shopping carts
  • add GIFs

These strategies will keep your ecommerce site relevant.

You don’t want to send dull emails to your subscribers.

Use interactivity to retain users who signed up for your messages.

Conclusion

It’s awesome you’ve recognized the importance of building an email list for your ecommerce site.

But before you jump in, think about some of the things we discussed.

If you don’t know where to get started, add a signup form to your page.

The most common place to include this is in the footer of your website.

While it’s a necessary feature, it’s not the most effective.

You also need to add popups to your website.

Just make sure these popups give the consumer an incentive to join your email list.

If your website visitors don’t take the bait signing up through your popups or footer, it’s not over yet.

Get their email addresses when they check out.

Develop an automation strategy, like a drip campaign, to send them messages about the status of their orders.

image6 7

You’ve got several chances to add subscribers during the following emails:

  • order confirmed
  • order shipped
  • order delivered
  • order follow-up

If this strategy doesn’t work, it’s okay.

Try again the next time this customer makes a purchase.

You need to develop a segmentation strategy before you start sending out emails to your subscribers.

Not every message is relevant to every subscriber.

Segmenting your lists will help you increase opens and conversions.

It will also improve your unsubscribe rate.

Interactive emails will help prevent customers from unsubscribing.

Creating interactivity will keep the subscribers engaged.

Follow these tips before you start building an email list for your website.

What popup incentive will you offer to your site visitors to encourage them to sign up to your email list?



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50% of People Get Financial Advice From This Seriously Unreliable Source

Where do you turn when you have questions about money?

All hands point to The Penny Hoarder. Aw, thank you. But we know this relationship isn’t exclusive (and we’re cool with it).

When you’re thinking about taking out a loan, who do you talk to about your options? When you’re ready to up the ante on your retirement savings, where do you trust your money most?

The most recent release of the Federal Reserve’s Consumer Credit Report sheds some light on how most Americans find answers to these questions.

We’re a little concerned.

The study has been surveying U.S. families three times a year for decades, so it helps us see how our approach to financial advice has changed over the years, as well.

Where Do We Get Borrowing Advice?

To gather information about borrowing in 1998, the vast majority of people relied on some kind of human contact:

  • 36% were “calling around.” (For the youngest among us, that’s like an analog Google search.)
  • 44% asked friends, relatives and other people they knew. (Like Yelp, but with IRL conversations.)
  • 32% relied on bankers, brokers and other people who sell financial services.
  • 18% relied on lawyers, accountants and other financial advisers.

Just 11% relied on the internet. Even that sounds like a lot to me, considering you could probably talk to every bank in town in the time it took a computer to dial in to the internet in 1998.

In 2016, more than half — 52% — refer to the internet to inform their borrowing choices.

It’s not clear from the report, but I suspect a lot of that jump includes the accessibility of sites like Credible and Even Financial, which make comparing loan options quick and easy.

These financial sites connect you with a variety of potential loan offers for student loans, debt refinancing and mortgages. In one place, you can see how much you could borrow, your interest rate and your repayment period from each lender.

That beats picking up the phone half a dozen times to reach a representative at banks around town. Ugh, can you imagine all the busy signals?!

It seems the World Wide Web is just one tool in a growing arsenal, though. A lot of numbers were up for 2016, so it seems we’re just diversifying:

  • 50% now look to friends and family.
  • 41% rely on bankers.
  • 30% rely on financial advisers.

And, though the number’s seen a fairly steady drop over the years, 22% of people are still calling around to learn about borrowing options. You guys, what even is a phone call?

It’s no surprise the internet has eclipsed newspapers and similar information sources. The number of people consulting print media has dropped 62% since 1998.

Where Do We Get Investing Advice?

People seem less concerned with investment overall, but the resources they use to learn about it have still changed in the digital age.

We’ve apparently always trusted our friends more than bankers or financial advisers:

  • In 2016, 44% looked to family and friends, versus 39% bankers and 37% advisers.
  • In 1998, 39% relied on family and friends, versus 32% bankers and 18% advisers.

Gathering investment information from the internet has skyrocketed — from 8% in 1998 to 41% in 2016. Newspapers and other media dropped by half in that period.

Again, this is probably related in part to the rise of companies offering digital investment services — a.k.a. robo-advisers.

With apps like Betterment, Acorns, Stash and Clink, you can invest with way less than the folks in 1998 had to fork over — we’re talking as little as $1 or $5 at a time.

You can also set most of these apps to automatically withdraw the money from your bank account periodically or even toss in a few cents at a time when you make purchases with a debit or credit card. That certainly cuts down your calls to a broker!

While the internet has replaced print media as a source of investing information, I’m surprised to see many of us still rely on good old-fashioned conversation for advice, as well:

  • 13% are still calling around.
  • 44% look to family or friends.
  • 39% consult bankers.
  • 37% consult financial advisers.

Where We Get Financial Advice: the Good and the Bad

While some people might worry about our reliance on “the internet” for financial advice, I know it helps connect us to plenty of good information sources and tools.

What worries me more about this report is how many people rely on friends and family for financial information. In most cases over the years, this was the most common source.

Not sure about you, but my friends and family are not bankers, accountants or financial advisers. They’re not brokers. Most aren’t even good at math.

If you’re asking unqualified people for financial advice, they could just be passing on myths — or straight-up lying.

But I saw a couple of small wins for financial literacy in this report.

We may have become privy to the fact that bankers and other people who sell financial services don’t always have our best interest in mind, compared with certified financial advisers, who are required to. In 1998, 27% more people consulted bankers for investment advice than consulted financial advisers. Now the two are almost even: 39% bankers and 37% advisers.

While some information sources have fallen by the wayside in favor of the newer-better-faster, this report shows one positive trend: We seem to seek more information about our finances.

Regardless of what kind of technology (or lack thereof) we use to obtain it, it looks like we’ve become more interested in gathering information from several sources so we can make informed choices about money.

We’ll call that a win.

P.S. If you want to jump on the internet train yourself, we’ve got special deals for some of those robo-investing apps I mentioned:

Dana Sitar (dana@thepennyhoarder.com) is a senior writer/newsletter editor at The Penny Hoarder. Say hi and tell her a good joke on Twitter @danasitar.

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



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This is What the “Sharing Economy” Is — and How to Make Money In It

Oh, the number of times my mom recited “sharing is caring!” to my little brother and me when we were kids…

I wasn’t a particularly selfish child, but I didn’t see any reason to share my Nickelodeon Gak or Floam, especially when it was so vulnerable to picking up dirt or drying out. And especially when I’d saved money in my little kitty coin purse to purchase it.

Now, if my little brother had been willing to pay to play with it? Well, that would have been a different story.

This is, on a smaller (less serious) scale, what today’s sharing economy is. The practice has been around for thousands of years — the term itself has only recently emerged.

What is the Sharing Economy?

Investopedia defines the sharing economy as “an economic model in which individuals are able to borrow or rent assets owned by someone else.”

It says the sharing economy is especially useful when the price of “an asset” (a product or service) is high — and is perhaps not used on a daily basis.

You might also hear the terms peer-to-peer rental market or collaboration economy.

But what about the gig economy? Many times, these terms are used interchangeably. However, the focus of the gig economy is less on the borrowing and renting of assets and more on the individual — the freelancer or the independent contractor.

But there’s a lot of overlap because the freelancer or independent contractor could be sharing their services in the gig economy. Think about the freelance writer. She might find a “gig” on Craigslist, but she’s still technically sharing her ability with someone else.

Let me give you another example of the sharing economy (one a little more realistic than that ’90s throwback):

You live in a big city and utilize public transportation. This is fine — great, actually — because you don’t have car payments, insurance, all that fun stuff. However, you’re planning a day trip soon, and you can’t exactly hail a taxi to drive you three hours away… So, you need a car.

Rather than racking up crazy fees at a traditional rental dealer, you could opt for a sharing economy platform that lists local available cars. Then you can rent it.

This benefits both you and the car’s owner, because they can make a little bit of cash.

How to Make Money in the Sharing Economy

On the notion of making cash….

The sharing economy is not only helpful when you need that one random thing — a car, pressure washer, house in a faraway destination — but it’s also helpful when you need some extra money. You can just rent out your assets.

There are tons of platforms out there these days that make this process easy.

These are a few of our favorites:

1. Airbnb

Perhaps this is one of the most obvious sharing economy platforms.

Someone’s visiting your town and needs a room, so you list your extra one.

We’ve chatted with folks who have made hundreds — even thousands — of dollars a month by listing their house or extra room through Airbnb. There was even a guy who made nearly $1,400 a month with a backyard tent.

Here are a few tips to make the most money:

  • Make your space available during high-demand times in your area. Think: concerts, conventions and local sporting events.
  • Be a good host, and make sure your place is stocked with the toiletries you’d expect at a hotel — toilet paper, soap and towels.
  • Be personable. A lot of travelers turn to Airbnb for the personal touch they won’t find at commercial properties.

If you’re interested to know how much your room could be worth, check out the platform’s calculator.

(Hosting laws vary from city to city. Please understand the rules and regulations applicable to your city and listing.)

2. Lyft

Got a car? Well, someone out there needs a ride.

That’s where ride-sharing services like Lyft come into play.

You can make some solid money doing this. Take, for example, this power couple who drive for Lyft. While raising five children, the duo swaps off driving shifts. They’ve brought in as much as $1,500 a week.

You can calculate how much you could bring in each week with this calculator — then apply.

3. UberEats

Yup, even delivering food is considered a part of the sharing economy. It’s easier than ever to get in on the action — and set your own schedule.

Try signing up with UberEats. (And score — you don’t have to deal with real people in your car!)

Really, you’ll create your own hours, drive around your city, soak up the foodie fragrances and catch up on your favorite podcasts.

(And probably roll down the windows and air out your car every now and then.)

4. Fiverr

This might be a less obvious sharing economy platform.

Fiverr allows freelancers to offer their services — anything from yard work to design projects to writing. For each task completed, you get $5.

It sounds kind of low at first, but we chatted with three women who have made more than $100,000 on Fiverr, just by sharing their services.

Here’s a beginner’s guide to get started.

5. DogVacay

This is like Airbnb — but for good dogs (and cats).

The sharing economy platform helps pet owners find sitters, trainers, walkers and even overnight boarders.

The apps Wag! and Rover offer similar gigs, too.

Make Money off Almost Anything in the Sharing Economy

There are tons of other sharing platforms out there for everything from cars and parking spots to lawn tools and bicycles.

My mom, like always, was right: Sharing is caring — especially for your wallet!

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder.

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



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Some Thoughts on Raising Children to Make Good Financial Choices

When I first started The Simple Dollar, I had one child, who was a toddler at the time. Since then, we’ve had two more children, and our oldest is now a preteen.

Along the way, I’ve been very into the idea that I need to teach my children good personal finance practices. I want my children to not make the personal finance mistakes that I did along the way.

So, I started mechanically.

We’ve given our kids a very small allowance each week to figure out how to manage themselves – just a couple of dollars per kid. For a long time, we used a “jar” system to teach them the basics of budgeting, where they put some of that allowance in various jars that are intended for various purposes. Some of it is “spend whenever you want” money, while another jar is “saving for a goal” money, and another jar is “help others” money. (Specifically, we’ve used a Money Savvy Pig for this.)

We’ve given our kids a “job board” where they can do extra tasks beyond their normal expected household chores for some extra money that they can do with what they wish. These tasks are things that go beyond the day-to-day things around the house, but are simple enough that they can be handled on their own. This teaches them about the value of working for money.

We’ve also given them seed money for a few entrepreneurial projects. We have “invested” in their lemonade stands and their snow shoveling.

We’ve talked about paying bills and I’ve actually shown them the bills we get. We’ve talked about taxes. We’ve even talked about things like insurance.

The thing is, our children really do understand these things. On the surface, such topics really aren’t hard to understand – even my seven year old can explain what taxes are, why people pay them, and what insurance is. They understand how people budget and how to save money for the future. Mechanically, it’s all pretty easy. They get it.

That’s why, more and more, I’ve come to the conclusion that the most powerful personal finance lessons you can teach your child aren’t centered around the “how,” but the “why.”

Why should you save money for the future? It’s not just the practice of how to do it – you just put some of your money off to the side. The question is why do you do it, and why would you choose to do that instead of buying that fun thing that you want.

You do it because you want to have money in case something unexpected comes along. If you’ve saved up some money, then when a true opportunity comes along, you have the money you need.

You do it because if you don’t, a bad break can cause unfortunate things to happen. When we had problems with our SUV last year, I pointed out to our kids that it would be quite expensive to repair it. However, because we had put money aside just in case, it wasn’t a big problem. It wasn’t scary or anything to worry about. We can handle this, because we put money aside earlier.

It’s not about the how, it’s about the why.

My daughter really, really understands this lesson. She’s ten years old. She has more than a year’s worth of her allowance that she’s put aside, not for a specific goal, but in case of opportunities. Seriously. Not too long ago, she saw a box set of books by her favorite author (Raina Telgemeyer) on a huge discount and she was able to buy it immediately. She recognized that this was an opportunity – if she had spent her money frivolously, she wouldn’t be able to take advantage of it.

My oldest son doesn’t save quite that intensely, but he did have enough money put aside so that recently, when he broke an item, he had the money available to immediately replace it without having to beg or borrow. He was able to just take care of it. He recognized that this was a bad break, and he was prepared for it.

It’s not about the how, it’s about the why.

More and more and more, my financial (and life) lessons for them are bridging more into the philosophical realm. I almost always lead with the “why” of doing things rather than the “how” – often, unless it’s a particularly tricky thing, the “how” is just a simple part on the end.

We talk about the “why.”

We talk about why you should do a good job when someone wants your help. When they do an exceptional job at a task at home, they’re recognized for it and sometimes even receive a special reward, but they don’t get that for ordinary performance. This translates into behavior outside the home – they are learning that if they put in the effort to do a good job at anything, it is rewarded. The real trick? They’re starting to recognize that the reward comes in forms that you don’t always see – quiet respect from others, trust from others, a better community to be a part of. We talk about those things – when they do a great job or a good deed, the reward is always there, but they don’t always see it.

Similarly, a poorly performed task or a misdeed always has a cost, but you often don’t see it, either – a loss of respect in the eyes of others, a loss of trust, a worse community to be a part of.

We talk about why it makes sense to put in extra effort when things are going smoothly, because you will be incredibly glad to have that extra gas in the tank when things aren’t going smoothly. Put aside money in an emergency fund. If possible, put aside some of your work output for a moment when you need a break. Build up goodwill with your coworkers, so they will help you when needed. Be generous with your time and energy when you can, and many of those people will be generous with you when you need it.

We talk about why a person should keep their bills paid. It’s not enough merely to know that you owe money by a certain date and how to pay it, but why. What happens if you don’t pay those bills? Again, it comes down to trust, and trust is often expressed in our society through a credit report – it’s a way to verify trust, like asking a mutual acquaintance if someone is okay.

Why. Why. Why.

Every time I make a financial choice these days, I think about it in terms of why. Why am I doing this? If I can’t come up with a sensible reason that I could explain to my children as a good principle for life, why, then, am I doing it?

Thus, if I keep repeating that simple question in response to all of my choices, my own choices gradually become better. They start to be even more consistently in line with my core principles and values, and my children see it when I act consistently with the values and principles that I share with them.

Why. Why. Why. It keeps coming back to why.

In the end, here’s my recommendation for teaching personal finance lessons to your kids. Start with the how – things like how you spend money, how you save it, and so on. The actual mechanics of doing those things are an important basic life skill.

The thing is, those life skills are pretty simple. The question really is how do you make those life skills stick? How do you help a child transition from knowing how a credit card works to understanding why one should use it sensibly and not frivolously?

It’s because you start talking about the why.

Why is debt a poor idea? Why do people go into debt sometimes regardless of that? Why is it worth the extra effort to do something well? Why is it worth the time to build strong relationships with people? Why is it worthwhile to keep your bills paid?

As your child grows older, the value of personal finance lessons doesn’t come from the “how” – that’s usually easy. It comes from the “why.” You can only really teach the “why” through thoughtful conversation over time and, perhaps more importantly, through your own actions that are in line with the conclusions you come to in your conversations about “why.”

It’s about the key principles, and when your children understand those principles, when they understand “why” you do things, when they see you live by those principles, the “how” becomes very minor and secondary.

Talk to your children about the “whys” of money. More importantly, live by those things yourself. They’ll watch. They’ll learn. It’ll bubble up in more ways than you’ll ever directly see.

Good luck.

The post Some Thoughts on Raising Children to Make Good Financial Choices appeared first on The Simple Dollar.



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This Study Says These are the Top 5 Best and Worst States at Saving Money

How have your savings been looking lately?

Sometimes, looking at the state of, well, your state, is a good way to hold a mirror up to your own finances.

WalletHub recently ranked the most and least financially savvy states for 2017. (Spoiler: Massachusetts took an overall gold.) The study took a deep dive into how states ranked, based on debt, spending, financial literacy, credit and saving.

That last one is what we’re focusing on today — saving.

Which States Rank Highest (and Lowest) in Saving Money?

Nope, looking at your state’s ranking isn’t a direct indicator of how you’re doing. But, c’mon and break out that state pride. (Whoo, Sunshine State, am I right?)

In the saving category, WalletHub ranked states based on factors including annual consumer-savings-account average, the number of adults with emergency funds, college savings accounts set up for their kids and/or budgets. It also looked at the number of “unbanked households,” meaning those with zero bank accounts. Each category held the same weight.

OK, so these were the top five states, in terms of saving:

  1. New Hampshire
  1. California
  1. New York
  1. Colorado
  1. New Jersey

These were the lowest-ranking states, in terms of saving:

  1. Oklahoma
  1. New Mexico
  1. West Virginia
  1. Louisiana
  1. Mississippi

If you live in one of these states — or feel like you’re the oddball in your perfect-scoring state — don’t worry. We’ve got one easy tip to help.

How to Start Saving Money — One Penny at a Time

A big part of saving money is actually stashing some away — especially for that emergency fund. But we understand that’s easier said than done, especially when you’re living paycheck to paycheck.

One of the easiest ways to get over that initial hump is to set up an automated savings account, one that’ll automatically pull money into it — without you even batting an eye.

You don’t need to feel like you have to deposit a large chunk of change each week or month. Even the smallest amount will do just fine.

Automating your savings is easier than you think. Chances are, your bank allows you to schedule payments out. But if you’re feeling a little lost, look into getting started with these tools.

1. Open an Aspiration Summit Checking Account

Many of us here at The Penny Hoarder HQ have some money stashed away in Aspiration’s Summit Checking Account.

Why? Well, it’s different from most regular checking accounts in that it earns you up to 1% interest. (Context: That’s 100 times more than my other checking account, which earned me zero.)

Plus, you can automate it.

For example, senior writer Dana Sitar has wired her account up so that a portion of her paycheck gets funneled into it. She never sees it, which makes missing that money a little less painful — and mindless.

2. Use a Set-It-and-Forget-It Investing App

You’re thinking: Investing isn’t the same as saving. Nope, but investing can be a good way to grow your money over a longer period of time.

And it’s easier to tuck that money away with micro-investing apps like Acorns and Stash, which let you do it automatically.

With Acorns, you can set the app to simply round up your debit- or credit-card purchases to the nearest dollar. The pocket change is then squirreled away into your Acorns account. If you have a balance less than $5,000, you’ll pay a $1 monthly fee, plus 0.5% of your balance.

With Stash, you can set an automatic deposit weekly or monthly — or however often you want. You can start with just $5. Plus you get a $5 bonus when you sign up. The monthly fee for accounts less than $5,000 is $1. (Your first month is free, though.)

Moral of the story? Saving is only as difficult as you make it, so automate it. And, yes, you need to get some state pride. C’mon, folks.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. She loves easy investing options almost as much as she loves Florida.

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



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Looking for a New Car? Here Are the Top 5 Cheapest Cars to Insure

Separating Needs, Wants, and What You Really Want

While a bad economy or an especially low-paying job can make saving money infinitely harder, the formula for saving has always been the same. To save money, you need to spend less than you earn.

Obviously, this task becomes a lot easier when you earn more than average – or if you live in a low-cost area. If you have a six-figure income and live in Arkansas, for example, you should absolutely be socking some money away. On the flip side, someone living on the same salary in an expensive city like New York City, Boston, or San Francisco might not have much if anything left over after covering basic expenses like housing, food, and childcare.

But, no matter your income or where you live, you have to find a way to spend less than you earn if you hope to save money to retire, have some fun, and avoid debt. You can get a side hustle or a part-time job if you want, but if you don’t spend less than you bring home, you’re always going to struggle.

That’s why it’s important to determine the difference between your “wants” and “needs” — and to understand why that differentiation matters. Without a grasp on why these terms matter, it’s significantly harder to get on the right side of your financial ledger.

Wants vs. Needs

What is a “want?” And what is a “need?” While everyone’s wants and needs can vary, there’s a big difference between these two terms when it comes to how you spend your money.

Generally speaking, a “need” is something you absolutely cannot live without. You need a roof over your head, for example. You need food and health insurance and transportation to get to work.

You need electricity in your house, you need food to eat, and you need a telephone. In this day and age, you probably even need internet access for your job or so your kids can do homework.

A “want,” on the other hand, is something you’d like, but could probably live without if push comes to shove. You want to go out to dinner tonight so you don’t have to cook. You want a shiny new iPhone X, even if your existing phone works just fine.

You want concert tickets and an annual beach vacation, but you wouldn’t die if you couldn’t have these things.

A want is something you very well may be able to afford, but don’t actually need to get by.

When Needs Are Actually Wants

But, what happens when something you consider a need is actually a want? This happens all the time, and it really throws people off. Worse, it tricks people into justifying purchases they wouldn’t make it they really thought it through.

For example, you need to eat, it’s true. But, do you need to dine out at your favorite pub tonight? If you have food to eat at home, the answer is no. But if you’re in the mood to justify the purchase, you could tell yourself you need to eat and do it anyway.

You also need a cellphone because it’s 2017 and hardly anyone has just a landline anymore. But, you don’t need to upgrade to the new $1,000 iPhone, and you may not even need a smartphone. Heck, you may not even need a data plan — but since you know you need a phone, you can convince yourself you need the best possible phone with the priciest talk, data, and text package money can buy.

New cars are another area where it’s easy to confuse what you want with what you need. You may need a car to get to work. You probably don’t need a brand-new car financed for 72 months with a $500 monthly payment. But, since you know you need to get to work, you can talk yourself into buying what you want on the premise that your shiny new ride is a need.

Well, guess what. It’s not.

In all these instances, you absolutely need the item in question — food, phone, transportation — but you’re choosing to spend more than you have to. In these cases, it’s important to be honest with yourself about what you need, what you want, and the difference between the two.

Three Steps to Help You Separate Wants From Needs

There’s nothing wrong with spending money on wants. I would even argue that paying for wants is an important part of life. If life were only about working and paying bills, then it wouldn’t be much fun.

The problem arises when people conflate their wants with their needs to the point where their spending stands in the way of their financial goals. When we spend money on wants without determining if they’re really a priority, we often shortchange ourselves in the areas of our lives that really matter – things like saving money for college, emergencies, retirement savings, and vacations.

If you’re struggling to separate wants from needs, here are three steps to help.

Step 1: Decide which wants truly add value to your life.

If you’re spending more than you should and having trouble separating wants from needs, it’s smart to take a step back and look at what you’re actually buying. Do your wants add real value to your life, or are they made out of convenience? Are you making discretionary purchases because they’re important to you, or simply out of habit?

While spending on wants is an important part of life, some wants are more important to us than others – and if you stop to examine your spending, you may find that many of the splurges you’re making aren’t really worth it. By deciding which wants add real value to your life, you can determine which ones to keep and which wants you can live without.

Step 2: Trade away some of your wants for a better deal.

Depending on the “want” in question, you may be able to come up with an alternative action that lets you save your money instead. This is a good strategy to try when you’re spending on something out of habit or out of convenience.

For example:

  • If you dine out a few times per week more out of convenience than pleasure, you may find you can cut your spending and still eat conveniently with some simple planning. If you can get in the habit of meal planning or using your crock pot to make easy dinners a few nights per week, for example, you may be able to avoid hasty, unfulfilling dinners out and pocket that money instead.
  • If you have an expensive cable package out of habit but never watch all the channels, you may be able to choose a cheaper package and save money without really noticing. Heck, you may even be able to cancel your cable subscription together.
  • If you’re signed up for multiple subscriptions for magazines or any of those subscription boxes like FabFitFun but you rarely have time to enjoy what you receive, you might be able to cancel without any real impact to your happiness or fulfillment.

It’s important to have wants in your life, but you should only splurge when you’re truly benefiting. If a want isn’t really making you happy, you’ll get more out of your hard-earned dollars once you cut the fat and reallocate those dollars to make them count.

Step 3: Figure out how to afford what you really want.

Let’s say you have a handful of wants that are really important to you. You love having a new car because you drive an hour to work each way, or you’re a huge tech geek who can’t wait to get your hands on every new phone or game console that comes out. Maybe you’re a foodie who loves dining out so much you’re willing to sacrifice elsewhere to be able to try all your favorite restaurants.

Working those wants into your budget is obviously important, but you need to make sure you can afford it. If you’re not saving money already – or if you’re spending all you earn and going into debt – then you probably need to analyze your spending in its entirety to find other places to cut.

The best way to determine whether you can afford everything you want – in addition to everything you need, of course – is to use a monthly budget and track your spending. While tracking your purchases can prevent you from spending more than you want, a monthly budget can help you prioritize your monthly obligations and your wants without sacrificing your savings goals.

My favorite type of budget is the zero-sum budget because all it takes is a pen and paper to get started. Zero-sum budgeting also makes prioritizing easy since it forces you to “spend” all your money on paper and “give each dollar a job.”

In addition, zero-sum budgeting forces you to pay your savings and investments as if they were regular bills, then learn to live off the rest. In that sense, it may force you to reevaluate your wants and needs since you’ll have less discretionary money over all.

The Bottom Line

If you’re struggling with money and can’t earn more of it right now, your best step is maximizing the money you have. Very often, the best way to do this is to take a close look at your monthly spending to see how much you’re splurging. From there, you can decide if those “wants” are truly worth it, or if you’d be better off taking a different approach.

At the end of the day, the best way to make sure you can afford what you want is to think ahead, be intentional with your spending, and most importantly, be honest with yourself. We all want things in life, but those who get the most of what they want are the ones who plan.

Holly Johnson is an award-winning personal finance writer and the author of Zero Down Your Debt. Johnson shares her obsession with frugality, budgeting, and travel at ClubThrifty.com.

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