How to Improve the Profitability of Your Small Business Mobile App

If you have been following the latest marketing developments, you know everything is trending in a mobile direction.

Consumers are seemingly glued to their phones and tablets. In fact, 77% of adults in the United States own a smartphone. That number is up from 35% in 2011.

That’s why it’s so important for you to optimize your web design for mobile users. While this is a necessary approach, it’s not enough if you really want to enhance your mobile marketing strategy.

The way people use their phones has changed. People don’t consume information the way they did five or ten years ago.

With the rise in smartphone usage, it makes sense that there is also a growing popularity in mobile app usage.

In fact, 90% of mobile usage time is spent on applications.

If you are one of the small business owners who recognized this trend and built a mobile app, congratulations.

Developing an app is no easy task, and it’s definitely not the least expensive investment you’ll make in your lifetime. But now that your app has launched, you might be having some concerns about your return on investment.

You expected to see massive profits right off the bat, and that’s not always the case.

Some of you may have had your small business mobile app out for a while now. At first, it was performing well, but over time sales have become stagnant or even declined.

Even if your mobile app is successful, there is always room for improvement. That’s the inspiration for this guide.

I’ll explain everything you need to know about optimizing your small business mobile app to maximize sales and increase profitability. Here’s what you need to know.

Don’t charge users to download your app

I know what you’re thinking. How can you make money with a free mobile app?

Charging an upfront fee for downloads may seem like an appealing way to get some fast cash. It could be the way you forecasted getting your initial investment back. But I advise against this strategy.

As a small business owner, you know how important it is to prioritize customer service. You also know how cost-sensitive your customers are.

The investment to download your app will turn people away. Even if you’re only charging a few bucks, it’s just not worth it to people.

Why?

Well, for starters, your customers are not used to paying for their apps. Research shows the vast majority of mobile app downloads are free.

Is your app really that much more valuable to the user than all the other free apps on their device? I doubt it.

Removing the cost to download an app will ultimately result in more downloads. Now people won’t have a reason to hesitate when installing your app on their devices.

The more people download your mobile app to their smartphones and tablets, the greater the chances of them spending money.

Here’s another way to think of it. If you’re using this app as a platform to sell your products, what’s the cheapest item offered on your app?

Now, compare that to the cost you were considering charging for a one-time download. It’s just not worth it to collect an insignificant fee when you can cover these user acquisition costs with actual purchases instead.

Focus on app store optimization (ASO)

Since you’ve already developed a mobile app for your business, I’ll assume you’re somewhat tech-savvy.

Even if you didn’t build it yourself, you at least have your finger on the pulse when it comes to the latest technology. You probably have a website and understand the basic principles of search engine optimization (SEO).

Well, app store optimization is basically the same concept. But it’s in reference to the app store as opposed to an Internet search engine.

There are certain elements based on how you set your app up that will affect your ranking in the app store.

However, there’s a catch. These algorithms and factors will differ depending on where your app is available. The two biggest app stores are the Google Play Store for Android devices and the Apple App Store for iOS devices.

Those of you who have your app available on both platforms, which I definitely recommend, need to understand how these elements affect your ranking.

Here is a look at some of the main differences between these two app stores:

As you can see, there are definitely some similarities between the two stores that have implications for your ASO strategy. The app title in both the Apple App Store and Google Play Store has the most significant impact on your search rankings.

The way user reviews and ratings impact your search ranking is also similar on both platforms.

However, some of the key differences here include:

• description
• keywords field
• app listing links

You’ll need to make changes to your listing in each store so that it’s appropriately optimized for ASO.

If you have your app available only in one store, you’re missing out on a huge opportunity here. Alienating a large percentage of your customers is costing you money.

Once you have your app offered in both app stores and prioritize your ASO, you will see more downloads.

As I have previously stated, increased downloads will improve profitability.

Personalize the user experience

What happens when someone downloads your app?

Think about what everyone sees on your homepage and interface. Is it the same?

If the answer to that question is yes, you’re making a mistake. You should encourage app users to create a customer profile when they launch your app.

Often, people are turned off and discouraged by the time-consuming and tedious process of creating a profile. You can make it easier for your customers by integrating your app with their Facebook profile or Google accounts. This simplifies the login process.

Here’s an example from the Quora app that illustrates exatly what I’m referring to.

This is much easier for your users than having to type in all of their information to set up a profile.

But now that they have an account with your app, every action they make can be tracked to enhance their personalized experience.

Based on things such as their search history and previous transactions, you’ll be able to recommend appropriate products and services to each customer.

You can also recommend items based on age, location, gender, etc. Tracking previous purchases makes it easy for customers to complete repeat orders.

All of these factors will help you drive sales and boost profits through your app.

Personalized offers encourage customers to spend more money. In fact, 39% of customers are willing to spend more after receiving personalized mobile promotions.

Use your app to enhance the in-store experience

I know that some small businesses operate exclusively online. So this tactic may not apply to you at the moment.

But I still encourage you to review this section in case you expand your company to physical locations in the future.

But if you have brick and mortar retail locations, your app can help complement the in-store buying process for your customers. How well have you been tracking your customers’ shopping habits?

If you watch them closely, you may have realized they are already using their smartphones while they are shopping in your store.

You might as well integrate your mobile app with your physical store to make shopping even easier for your customers. These are the top ways that customers use their phones while shopping in stores:

Your app should be able to do all the things on this list.

Make it easy for customers to scan a barcode of an item in your store directly from your mobile app platform. Now they’ll have access to a detailed product description and be able to read user reviews.

Give them an option to save items in a list of their favorites so they can buy it later, even if they don’t want to buy it right now.

This will make it easier and more appealing for them to complete the transaction.

On the flip side, they can browse for an item on your app and save it in their favorites list before they get to your store. When they arrive, your app can tell them exactly where the product is located in the store.

Now they can check it out in person to make sure it’s exactly what they had expected before buying it. This really enhances the customer experience.

As we previously discussed, you want to personalize the customer experience.

Your mobile app can also act as a customer identification card for each user. This will be linked to their account and loyalty rewards program. We’ll discuss this concept in greater detail shortly.

Send push notifications

Your mobile website is a great asset to your small business. But one thing it can’t do is contact your customers at will.

Since you have a mobile app, you need to use push notifications to your advantage and reach out to your customers.

You just need to be cautious when it comes to the type of message you’re sending with each push notification.

We know that 48% of app users want to receive push notifications about special offers based on their preferences. This relates back to one of my earlier points about personalization.

Just don’t send push notifications too frequently. That’s because 52% of users believe that push notifications are an annoying distraction. You don’t want your company to be perceived as annoying. Sending too many notifications can cause damage beyond your brand’s tarnished reputation.

For example, 32% of app users will stop using an app altogether if they get too many notifications.

You should also consider the word count of your push notifications.

If you have too many words, they may not fit on the screen. This will obviously have a negative impact on your open rates.

That’s why push notifications with ten or fewer words have the highest click rates.

When it comes to your push notification strategy, your best bet is to only send messages that add value to the recipient. I’d recommend discounts or promotions to get started.

Timely notifications are helpful as well. If your company is delivering something to the customer, such as food, a notification “your food has arrived” would definitely be appropriate.

Just don’t go overboard with these, or users can turn off notifications. If that happens, it won’t help you generate more profits.

Set up a loyalty program

You don’t always need to turn to new downloads and user acquisition to make more money. Instead, look at your most loyal customers as a way to increase profits.

As I mentioned earlier, your mobile app can act as a digital customer loyalty rewards card. We’ve all seen these before. Your small business may even have one of these systems already in place.

I’m talking about things such as a simple punch card. For example, if you have a sandwich shop, you may offer a free sandwich on the customer’s 10th visit.

The problem with this system is that cards get misplaced, and it’s not easy to track the purchases. But a mobile customer loyalty program is much more effective.

You can set it up based on the number of visits, but I’d recommend taking your strategy to the next level. If two customers each make ten purchases, does that mean they are equal?

Not if one spends $100 total and the other spends $1,000 total. Setting up your rewards program based on a spending threshold system rewards your top customers.

Here’s a look at how Sephora implemented this strategy based on a customer’s annual spending:

Adding this feature to your mobile app will help increase the buying frequency and average purchase order for each user.

That’s because customers are encouraged to spend more money so that they can reach the next level. Once they get to a new threshold, their benefits will increase.

As a result, you’ll see higher profits and improve your customer retention strategy at the same time.

Encourage user referrals

As I just finished saying, you don’t always need new customers to improve your profits. That said, it certainly helps.

A great way to get new downloads is by leveraging your relationships with your current customers. Encourage them to refer their friends and family to your app.

However, this is easier said than done. Simply asking your existing users to refer others probably won’t be enough to get the job done.

Sure, your app may be great, but it’s not enough for someone to help you just out of the kindness of their heart. They’ll be expecting something in return.

Reward customers for their referrals. Give them an incentive, such as a discount off their next purchase.

You can reward the referred user as well. It may seem as if you’re giving away too much, but it’s worth it in the long run since you’ll be getting new customers.

Here’s a look at how this feature looks on the Airbnb app:

Research shows that this referral tactic helped boost their app download rates by 300%.

It’s safe to say it’s a winning strategy. It can also create an exponential download effect.

That’s because each time a new user downloads the app, they’ll also be encouraged to invite their friends to join.

This is one of my favorite ways to get your customers to recommend your brand to others.

Optimize the checkout process

Let’s continue our discussion of customer profiles. You want to take full advantage of this feature.

Once the customer makes an initial purchase through the app, you can save all of their information to their account.

Now you have their shipping address and billing information. Unlike on a desktop or mobile site, they don’t have to enter this information each time they want to buy something.

All they have to do is click on what they want and finalize the transaction. The entire checkout process can be completed in a couple of clicks.

That’s why mobile apps have higher conversion rates than mobile websites:

Do everything possible to make your app’s checkout as smooth as possible.

Fewer steps and less friction to complete a purchase will help drive sales. Plus, your app makes it easy to accept alternative payment options, such as Apple Pay.

Constantly monitor the performance

Nobody’s app is perfect.

Sure, you spent the time to make sure it was good enough before you released it, but there is always room for improvement.

Prioritize speed. Avoid glitches. Fix crashes and errors as soon as possible. It will help improve the user experience.

Research found 48% of app users are less likely to use an app if they have a poor experience. And 31% of people say they are less likely to buy something from a company based on a poor app experience. You can’t afford to overlook that.

Read through your user reviews to see the feedback and what needs to be changed.

Use beta testers to help you get valuable insights before releasing new versions and updates.

Conclusion

If your small business has a mobile app, you are already on the right path to success. But if your app isn’t generating high profits, it can feel as if there is a hole burning in your pocket.

One of the best ways to improve your app’s profitability is by finding ways to get more downloads. Ultimately, downloads will translate to dollars.

Make sure you offer your app as a free download. Focus on app store optimization to improve your search rankings in both stores. Encourage users to invite their friends through a referral program.

Personalize the user experience. Use your app to improve the way they shop in your physical stores. Set up a mobile loyalty program, and send promotions through push notifications.

Simplify your checkout process so it’s easy for app users to make a purchase.

If you follow these tips, your small business mobile app will turn into a money-making machine.

How are you using your small business mobile app to drive sales and increase profits?

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Meeting an Old Friend: Strategies for Low Cost Meetups

Yesterday, an old friend of mine, one that I’ve known for more than twenty years and talk to online regularly but rarely get to see face to face, came through my area in the midst of a long road trip with his family. We were both excited that our paths were going to cross and we made plans to meet up.

Ordinarily, one might expect that we’d just identify a restaurant somewhere and meet for lunch there. It’d be convenient, right? Well, after some back and forth, we came up with a different plan.

First of all, we decided to meet at a park instead of a restaurant. There were several reasons for this. One, it settled the issue of figuring out a restaurant that everyone would like and that would meet all dietary requirements. Two, it put us in a position where we’d arrive with food already in hand so that we wouldn’t waste our window of time together ordering food and reading menus.

For me, however, the biggest advantage here was that I could just bring a meal made at home. I assembled a sack lunch meal in the morning with stuff I already had on hand and just took that with me. I just made a simple sandwich, took some sliced vegetables and fruit out of the fridge, and grabbed a full water bottle. It was simple, tasty, and incredibly cheap.

That’s really the other advantage of not eating at a restaurant: by not choosing a restaurant, it allowed everyone to choose how expensive they wanted lunch to be beyond the mere choice of what kind of food to eat. I wanted a cheap lunch. Another friend in the area who joined us brought a rather expensive takeout meal, one that probably cost ten times what my lunch did. Our mutual friends had a meal that was likely somewhere in the middle.

It also allowed individual people to consider their own dietary needs and food allergy concerns. This can sometimes be an issue if someone’s on a particular diet and can only eat certain foods or only eat at certain places. This wasn’t a real issue yesterday, but it certainly has been in the past.

Second, it provided a setting to move around. After eating, we went on a short walk together while their child played on the playground. Since they were in the midst of a road trip, it gave everyone in their family a chance to stretch their legs and move around, which felt good.

This was particularly useful for their young child. He seemed to truly enjoy being able to run around in the fresh air for a while and he took full advantage of the playground. (He even convinced the adults to join him on the playground for a while.)

This was the exact reason that we would often stop at parks when our children were younger. It gave them a chance to run around and burn off excess energy from being in the car. They’d run to the playground and wear themselves out with vigorous play while Sarah and I would usually clean up lunch and then take a walk around the park. It gave all of us an excuse to stretch out our bodies after a long car ride and get ready for another leg of the trip.

Third, we could linger for as long as we wanted. At a restaurant, you’re often nudged out the door after a certain length of time, especially if the restaurant is busy at all. At the park, we were free to stay all day if we wished. My sole restriction was needing to get home before my children got off the bus; their restriction was to get back on the road so they could make it to their destination by dark. We were free to hang out on our terms and free to depart on our terms.

We ended up talking for far longer than I expected; I figured they’d want to get on the road quickly, but instead they lingered for quite a while, enjoying the conversation and the nice weather. That probably wouldn’t have happened at a restaurant.

Another big advantage of being in a park is that we could spread out as much as we liked. With a restaurant, you might have a large group jammed into a small booth together or at a small table. At a park, there was no such issue. We spread out a giant blanket near a tree and spread out, with everyone having plenty of elbow room and space.

Finally, stopping at a park gives one an opportunity to enjoy local flavor and roadside curiosities. While this particular meeting didn’t really allow for such events, I have often stopped at great points of interest on road trips, often meeting friends at such places. It can be a great way to add to someone’s road trip while also giving them the freedom to get out and exercise.

Consider what free points of interest are in your area that out-of-towners who are just driving through might enjoy seeing, then plan to meet friends who are stopping by at those places. They get the joy of seeing you and visiting for a while and also enjoying a low cost meal along with the added attraction of seeing something interesting on their trip for free.

In the past, I’ve done this with things like the world’s largest twine ball in Arthur, MN and the statue of Superman in Metropolis, IL. Both of those involved stops in the middle of road trips that added something special to the trip. In both cases, I enjoyed a picnic lunch there, along with time with friends and loved ones. It really added to the trip.

Unfortunately, there aren’t many such places of interest near me, but there are certainly some parks and stops that are more interesting than others. Taking the time to identify a few can be worthwhile for people passing near you, and researching areas where you might stop to visit friends might give you a very interesting place to stop for such a meetup.

So, what can you take out of all of this?

If you’re on a road trip and thinking of stopping for a break at meal time, consider stopping at a park rather than a restaurant. It gives you the opportunity to get some fresh air and go for a walk as well, and if you have children, they can burn off some of that pent-up energy on the playground. You’ll also be far less restricted on the time for the stop – if you want to make it quick, you can just eat and run rather than having to wait for your food and for the waitstaff, but if you want to linger, you can linger for as long as you want to.

If you have friends stopping by as they go through town, consider suggesting a meetup at a park rather than at a restaurant. Again, this eliminates the need to negotiate what restaurant to choose and saves everyone involved money if they so choose. If people prefer food from a restaurant, they can get takeout from any number of fast food and fast casual restaurants. If people prefer food from home, they can bring food from home. You can even bring food for your friends if you so wish.

Look for interesting parks or free roadside attractions as part of the meetup plans. When considering where to meet, consider things in your area that might be interesting for the out-of-towner to see as part of a quick stop and meet there. If you’re going to meet someone as part of a road trip (or just need a place to stop for lunch), research a good stopping point and look for things of interest in that area. Sites like Roadside America and Atlas Obscura are great tools for this type of planning.

If parks are your game plan, come prepared with food in a cooler. Prepare some meals and beverages the night before your departure and stock up your cooler before you leave. Yes, you can always stop at a fast casual restaurant for takeout or a fast food restaurant or even call for something to be delivered, but that adds a lot of expense to the stop. Instead, aim to include the elements of an inexpensive meal or two in your packing and fill up a cooler with cold items just before you leave.

Together, these strategies will save you some money on your road trip while also giving you ample opportunity to stretch your legs and refresh yourself after part of a day of driving (and potentially get ready for another partial day of driving).

The post Meeting an Old Friend: Strategies for Low Cost Meetups appeared first on The Simple Dollar.

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To Bee or Not to Bee: Here’s How This Kid Earns $100/Hr as a Spelling Coach

'I'm worried about my credit score after my bank's missed payments'

Moneywise helps a reader tackle a payment error

I have had a Tesco credit card for more than a year. I have a direct debit set up to pay the amount owed in full every month. In February, the payment wasn’t taken. I rang Tesco and it said the payment date had been changed and advised me not to worry and that it would be taken out in March as usual. The adviser said it was all sorted, there would be no late fee and it wouldn’t affect my credit rating.

Then the payment was not taken in March. I rang again and was reassured by the adviser that it would be taken in April. I was told not to worry as there would be no late payment fee and no effect on my credit score.

But then it wasn’t taken in April either. I rang up in tears. Again, the adviser told me it would be sorted, which I didn’t believe. So I decided to transfer the money and pay off the balance myself. I’m really worried that this has affected my credit score. What can I do?

NJ/Anglesey, Wales

• Left in the lurch after BSM driving lessons

I contacted Tesco Bank on your behalf to seek some reassurance that things will be put right and your credit score won’t be hit.

The bank responded promptly and positively. It said: “We apologise that NJ’s direct debit payment was stopped in error, which resulted in the payments between February and April not being collected. We have confirmed that no fees have been applied as a result, and that the customer’s credit file will not be affected. We apologise for any inconvenience this may have caused.”

“My payment wasn’t taken. I rang up in tears”

I pointed out that you suffered some distress because of the situation and asked if it could give you a gesture of goodwill by way of apology. Tesco Bank told me it has offered you £250 as compensation.

I asked you if you were happy with the outcome. You told me: “I’ve asked Tesco Bank to close my credit card account as I no longer want anything to do with the company.”

• Hermes won’t pay up over lost TV

I don’t blame you. Despite calling every month, the error wasn’t dealt with, leaving you concerned about your finances. But I’m confident that your credit score won’t have been hit and hope that the compensation goes some way to easing your anger.

OUTCOME: Reader gets £250 compensation for payment error

 

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Water bills: don’t splash the cash

If you pay for your water supply, then you may want to consider having a meter installed. It could boost your household finances

Water bills are on the up, following increases at the start of April which saw the average water and sewerage bill rise by £9 to £405.

In England and Wales, where a household’s water supplier depends on where you live, the average increase for this tax year was 2%. However, some customers – such as those of United Utilities – faced a bigger increase of 4%.

• 15 ways to make your garden – and savings – grow

In Scotland, where water and sewerage prices depend on your council tax band for your home – and are covered by a ‘combined service charge’ – bills will rise by 1.7% on average. This means that those in tax band D, for example, will pay £437 a year.

In Northern Ireland, there are no domestic water charges.

Water is just one of a number of bills that have gone up in recent months for many households, piling increasing pressure on people’s finances.

Tim Robertson, chief executive of Save Water Save Money, says: “With consumers already navigating a year of consistent price increases, high inflation and low wage growth, it is well worth taking steps to mitigate the annual rise in water bills.”

Andy White, charges expert at water watchdog the Consumer Council for Water (CCW), adds: “There are lots of ways you can save money, including trialling a water meter, taking advantage of free water-saving devices, and checking to see if you’re eligible for a cut-price tariff.”

Moneywise takes a closer look.

Install a water meter

While you can’t switch water companies – as you can with gas and electricity suppliers – you may be able to save money by having a water meter fitted.

Mr White says: “For many households, this can be the most effective way to cut water bills, and you can get a meter installed free of charge.” With a meter, the size of your bill depends on your consumption rather than the rateable value of your property.

water-meter.jpg

As a rule of thumb, if your home has more bedrooms than people living in it there’s a good chance you may be able to save money. Mr White adds: “Water meters won’t benefit everyone, but some people can save more than £100 a year.”

In most cases, you’ll have up to two years to switch back to unmeasured charges if you change your mind.

That said, some water companies in the south-east of England are rolling out universal metering programmes, where customers do not have the option to switch back to unmeasured charges. Always check your options with your water company before switching.

To find out if you might be better off switching to a meter, make use of an online calculator – the Consumer Council for Water has a handy calculator (Ccwater.org.uk/watermetercalculator).

Note that in Scotland, it’s not free to have a water meter installed, so you are probably best sticking with what you have. Also, be aware that as there are no domestic water charges in Northern Ireland, there is no need for a meter.

• Water bills to rise by 2%

Get help with your water bills

In England and Wales, there are additional ways to save on your water bills – such as via social tariffs and through the WaterSure scheme.

"To find out if you’d be better off with a meter, check online"

Every water company now offers a reduced social tariff for eligible low-income customers. Some of these tariffs can slash bills by as much as 90%. You can find out if you’re likely to qualify for help, and how to apply, by using CCW’s social tariff guide. Visit Ccwater.org.uk/households/help-with-my-bills.

If you’re already a metered customer, meanwhile, but have high usage due to a medical condition or because you have a large family, and also receive income-related benefits, the WaterSure scheme could help. It limits the amount you’re charged and in most cases will be capped at the average household bill for your water company region.

In Scotland, households can find more information about the help available at the Water Industry Commission for Scotland at Watercommission.co.uk/view_HouseholdCustomers.aspx. Also visit Citizensadvice.org.uk/scotland/consumer/water/water-and-sewerage-s/paying-for-water-and-sewerage-in-scotland-s/. For example, if you are entitled to a single person’s discount on your council tax, it will also be applied automatically to the water and sewerage charges on your council tax bill.

People in Northern Ireland can find out about the help available by visiting The Consumer Council at Consumercouncil.org.uk/water/additional-help-for-energy-and-water-customers/. Help with adapted equipment like tap handles and control knobs is available to people on the Customer Care Register, such as pensioners and those with a disability or chronic medical condition.

Eddie and Jill Joesbury-Clarke.jpg

“We are making big savings now”

Eddie and Jill Joesbury-Clarke (pictured above)from Worcester in the Midlands managed to cut their water bill from £750 a year to less than £400 by switching to a water meter.

The couple, who live in a three-bedroom bungalow, opted to trial a meter with Severn Trent Water back in 2013 to see if that would reduce their costly bills.

Eddie, 84, says: “I went online and put our details into the water meter calculator on the Consumer Council for Water website. The site told me that we could potentially make a pretty substantial saving, so we were keen to give it a go.”

After moving to metered charges, the couple managed to almost halve their bill.

“We now pay less than £400 a year for our water,” says Eddie. “This has made a real difference to our household finances. My only regret is that we didn’t trial a water meter all those years ago when our children left home. But at least we are making big savings now.”

The couple say they have always been conscious of using water sparingly so as not to waste this finite resource. Eddie adds: “We take all sorts of water-saving measures, such as having a dual-flush system in the toilet, and using a water butt to collect rainwater in the garden. I have also only ever used a sponge, bucket and watering can to wash the car – never a hosepipe.”

• Are you owed a £121 refund from your energy provider?

More top tips to reduce how much you spend on water

1. Turn off the tap when you brush your teeth This could save a family of four up to £50 on annual metered water bills, according to water efficiency firm Save Water Save Money, as well as 17,520 litres of water per year.
2. Cut a minute off your shower time This could save you £30 on your energy and metered water bills per year, or £120 for a family of four, according to Save Water Save Money.
3. Install a water-saving shower head One of these could save a family of four £75 on their gas bill and about £120 on their water bill (if metered), according to the Energy Saving Trust.
4. Fix your dripping taps A dripping tap can waste around 5,300 litres of water a year, according to the Energy Saving Trust. If you’re on a water meter, this could cost you an extra £15 per year.
5. Take a five-minute shower instead of a bath A quick shower uses a lot less water than a long soak in the bath. If everyone in a four-person family took a five-minute shower in place of a bath, it could save around £15 on energy bills and around £25 on metered water and sewerage bills a year, according to the Energy Saving Trust.
6. Fit a dual-flush toilet button Around a third of the total water used in every household is through toilet flushing, so it’s worth investing in a device that lets you choose how much water you use – an average of 4-6 litres per flush instead of 13. A dual-flush button could save a four-person household 50,000 litres of water every year. That would save around £150 a year in metered sewerage water bills, according to the Energy Saving Trust.
7. Use a bowl to wash up Using a bowl to do the washing-up rather than leaving the hot tap running could save around £25 a year on a household’s energy bill and around £30 on metered water and sewerage bills, according to the Energy Saving Trust.
8. Store up your washing-up Save up your dishes and do the washing-up in one go to reduce the amount of water you use. Similarly, wait until you’ve got a full load before using your dishwasher – or, for that matter, your washing machine.
9. Use a garden water butt Collect rainwater in a water butt and then use this to fill a watering can when you need to water the garden. This is much less wasteful than a hosepipe or sprinkler, which can use up to 1,000 litres an hour. A metered household using a hosepipe for one hour a month could typically save about £35 a year, according to the Consumer Council for Water (CCW). Non-metered households won’t save.
10. Fish for freebies Most water companies offer free devices that help you reduce your usage. This might include £20 low-flow shower heads, £5 inserts to reduce the flow of water from your tap, and Save-a-Flush bags, worth £2, which go in the cistern and save about 1 litre of water each time you flush the toilet. See your water company’s website for details.
11. Soak away savings If you have a soakaway in your garden, which drains excess water into the earth, you may be able to have surface water drainage charges removed from your bills, saving over £50 a year, according to the CCW. You may also be eligible for a refund of charges you’ve paid, as soakaway discounts first came into force in 2001.
12. Make use of free online tools to analyse your water use Check out water usage tools such as the aqKWa Savings Engine (Aqkwa.co.uk). This gives you an overview of your total use, with personalised water saving advice for your location, home and lifestyle.

For more water saving tips, visit Ccwater.org.uk, Est.org.uk and Savewatersavemoney.co.uk.

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Will My 595 Credit Score Sink My Plan to Buy My College-Age Son a Boat?

Dear Penny,

I’m a divorcee who had recent health problems that kept me off work, resulting in late payments. I’m now healthy and back to work in a great job with a decent income.

My son needs a bass boat in order to compete in college. I can make the monthly payment, and I have a down payment saved, but not the required credit score to purchase a luxury item. I have a pitiful 595 credit score.

What can I do to raise my score to 650 by January 2019? Is there anything? Is it even possible?

B.

Dear B.,

You can definitely increase your score quickly. The majority of your credit score is determined by two factors that you can take simple steps to improve.

The first is payment history, the biggest factor that goes into calculating your score. Paying your bills consistently each month — even if you’re just paying the minimum — helps you build a solid track record. And because payment history is the biggest component of your score, this is where you’ll see an increase the fastest.

The second most important component is your credit utilization: how much of your available credit you’re using right now. As you pay down your balances, you’ll see your score rise. But if you have a lengthy debt payoff plan, it’s going to take longer to see the increase.

You may not get your score to 650 by January, but if you make consistent, on-time payments you’re likely to see a substantial increase. Here at The Penny Hoarder, we’ve featured people who have raised their credit score by more than 100 points in six months; meanwhile, others have spent seven years repairing their credit, working from a 480 score to 764.

Focus on prompt payments for now and build back those good habits.

Can we talk about this boat, though?

I’m not sure if helping your son buy a boat is a wise use of your recovering financial reserves.

What would he do if you were still ill and out of work? How would he pay for the boat without your help?

Talk through this situation with him and determine the true reality of the situation. I would hate for you to make progress in building your credit back up, only to damage it later if something goes wrong with a boat loan.

I understand that the past few years have been rough and you want to help your kid do well in school. But this boat is not likely to help you in your efforts to stay above water.

Lisa Rowan is a senior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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17 Memorial Day Freebies and Deals for Veterans and Active Military

This Memorial Day, you may be looking forward to a long weekend with friends or family, celebrating a high school graduation or preparing your shopping list for holiday deals.

But as a nod to the real reason for the holiday, businesses around the country are offering special freebies and deals for veterans and active military members this Memorial Day weekend.

Here are 6 places you can go for free food on Monday, May 28, with your military ID:

Memorial Day Food Deals and Freebies

1. LaMar’s Donuts

Kick off your Memorial Day with a free donut and coffee from LaMar’s Donuts, available for all active and retired military personnel with proof of service.

2. Hooters

On May 28, all current and former military personnel can enjoy a free entree from the Hooters Memorial Day menu at participating locations nationwide. Options include a Buffalo chicken salad, Buffalo chicken sandwich, Hooters burger or 10-piece traditional, smoked or boneless wings with your choice of sauce.

3. McCormick & Schmick’s

Active-duty military and National Guard, veterans and gold star parents and spouses get a free lunch or dinner entree from the Memorial Day menu on May 28.

4. Twin Peaks

Participating Twin Peaks locations will honor past and present armed forces personnel with a free select menu item on May 28.

5. Firebirds Wood Fired Grill

Bring a veteran or active-duty service member with you to eat on Monday, May 28, and the restaurant will cover their lunch or dinner. The free entree must be the same price or less than your purchase.

6. Ninety-Nine

Veterans and active-duty military will receive a free meal from the chain’s 9 Real Size Entrées for $9.99 menu with the purchase of another meal and proof of service.

But the deals don’t stop at food. After you get your fill, head to any of these 11 parks and museums who are offering free admission this Memorial Day weekend:

Memorial Day Free Tickets to Fun

1. Hawaiian Falls Water Park

Take a trip to Hawaii for some fun in the sun – the only catch is, you’ll actually be in Texas. Hawaiian Falls water parks are offering active and retired military personnel free admission from May 26-28 with proof of service.

2. Kings Island

All active and retired military personnel can make a splash for free at Kings Island in Ohio on Memorial Day weekend. Enjoy free admission May 25-28 with proof of service.

And you don’t have to go alone! You can also purchase tickets for up to six family members at $34 per person.

3. Kings Dominion

If you’d rather stay dry this Memorial Day weekend, then head over to Kings Dominion theme park. All active and retired military personnel get in for free May 26-28 with proof of service. Discount tickets will also be available for your family.

4. Cedar Point and Cedar Point Shores

The “roller coaster capital of the world,” based in Ohio, is also offering free admission to all active and retired military personnel from May 25-28. The offer is available for both parks: Cedar Point and Cedar Point Shores. Just show your proof of service at the ticketing window to receive your free admission and up to six tickets at a discounted price of $44.

5. Michigan’s Adventure

Active and retired military personnel receive free admission to the 14th annual Tribute to Armed Forces at Michigan’s Adventure on May 27-28. You can also purchase tickets for up to six family members for only $26 each.

6. Valleyfair Amusement Park

If you’re in or near Minnesota, then head over to Valleyfair for some free fun. All active and retired military personnel with proof of service can enter the park for free May 26-28.

7. Colonial Williamsburg

Take a journey to the 18th century for free with proof of service at Colonial Williamsburg living history museum in Williamsburg, Virginia. This offer is available for all active and retired military personnel and up to three dependents – in other words, your kids get in for free, too!

8. Blue Star Museums

If you have a favorite museum, you may be able to get in for free this Memorial Day weekend – and all summer long! Blue Star Museums offers free admission to active-duty military personnel and their families. Check out their map to see participating museums by state.

9. Silverwood Theme Park

All military personnel, police officers and firefighters can enjoy free admission to Silverwood theme park in Idaho during American Heroes Weekend, May 26-28. Discounted rates will also be available for family members.

10. Worlds of Fun

This Kansas City amusement park is offering free admission to all active and retired military personnel, along with discounted tickets for family members. This offer is available on Monday, May 28.

11. Wild Adventures Theme Park

This Georgia theme park is honoring free admission for all active and retired military members from May 26-28. Discounted tickets for family and friends will also be available.

If you can’t get away this weekend, then check out these five organizations that offer military travel deals – you might just be able to plan an entire vacation for free! And be sure to check out this list of more than 100 places that offer military discounts all year long.

Bonus Memorial Day Freebie

On Saturday, May 26, participating Ace Hardware stores will be giving away one million flags, so be sure to stop by your local Ace to get yours.

Happy Memorial Day!

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

Editorial assistant Jessica Gray contributed to this post.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Make Up to $30 an Hour With Online Tutoring Jobs With Revolution Prep

If you’ve got a passion for teaching and like the idea of working from home, it might be time to ditch the commute and opt for a virtual classroom.

Online tutoring jobs are a great way for teachers to earn extra money, but these openings aren’t side gigs; they’re full-time positions.

Revolution Prep, an online company that offers private and semi-private tutoring for grades 6 through 12, is currently hiring professional online tutors.

Again, this is a full-time, work-from-home job, and applicants must be willing to commit to at least one year of employment.

Online tutors for Revolution Prep can set their own hours, but must provide at least 35 hours of availability a week, with a goal of averaging 28 hours of tutoring each week. Availability has to be set during “prime tutoring hours”: Monday through Friday, 3 p.m. to 9 p.m. PST; Saturday, 5 a.m. to 7 p.m. PST; and Sunday, 5 a.m. to 9 p.m. PST.

If you can get get down with that, the pay is $25 to $30 per hour including bonuses, and tutors are eligible for benefits such as medical, dental, vision and a 401(k).

Applicants with expertise in various subjects are welcome to apply, but Revolution Prep has a high need for tutors in chemistry, physics, biology, college-level macro/micro economics, LSAT, algebra II, trigonometry, pre-calculus, calculus AB/BC, statistics, Spanish and French.

In addition to teaching a specialized subject, all Revolution Prep tutors are required to teach SAT/ACT test preparation. If you don’t have experience with that, it’s OK — the company provides training.

If your teaching skills are equivalent to Ms. Trunchbull's or you don’t meet the requirements for this gig, don’t worry. Check out our Jobs page on Facebook — it’s full of work-from-home job opportunities.

Online Professional Tutor at Revolution Prep

Pay: $25 to $30 per hour, including bonuses

Responsibilities include:

• Providing one-on-one and small group tutoring to students in grades 6 through 12

• Creating individualized lesson plans for private tutoring sessions that incorporate Revolution Prep’s curricula

• Managing schedules and goals for multiple students at once

• Providing weekly updates to parents

• Attending weekly online professional development sessions

• Contributing to the development of new curriculum

Applicants for this position must have:

• A bachelor’s degree

• Previous teaching experience

• Experience creating lesson plans

• Ability to teach consecutive tutoring sessions during peak hours and on weekends

• High-speed internet

• A quiet, professional home office space for online sessions

• Ability to commit at least one year of full-time employment

Nice-to-haves:

• An advanced degree

• Foreign language teaching skills

Benefits include:

• Flexible time off

• Medical, dental and vision

• Disability and life insurance
• A 401(k)

Apply here for the online professional tutor job at Revolution Prep.

Kaitlyn Blount is a staff writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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How to Handle a High Stress Work Environment

One wonderful advantage of financial independence (or at least a strong financial foundation) is that you don’t have to deal with stressful or toxic work environments. You can simply start searching for a different job as soon as the environment turns negative and handle any financial bumps in the road that such a search may cause.

However, many Americans aren’t in that situation. Most Americans live paycheck to paycheck and can’t afford financial bumps, and other Americans might be in a job that pays very well compared to alternatives or offers some other particular benefit. In both of those cases, sticking with a high stress or toxic work environment might be the only option for them.

If we stick with the assumption that your job is toxic/high stress but a job change is exceedingly difficult right now, how do you handle that challenge?

For a year or so early in my professional career, I worked in a toxic environment. I was in a small group of three people working together tightly on a project and one of those three people was toxic to the point of (I believe) being intentionally so.

This coworker insisted on particular lighting for our shared office that gave everything this strange unearthly blue tint. During our weekly meetings, she would promise to deliver certain things during the coming week, then never deliver them. She would often “work” from home in the mornings (which were times that felt like a relief), but then accuse us of trying to “hack” her laptop remotely, which was her reason for why she didn’t get anything done at home. She would meet with the supervisor of the project privately and tell him that we were conspiring against her, leading him to check in on us and hear our side of the story. (There wasn’t a conspiracy against her – I barely even thought about her outside of direct interaction time. We didn’t have time for a conspiracy due to our project deadlines!)

This finally culminated with her giving a disastrous presentation during our first annual project review, which led to her immediate removal from the project. Our team of three was down to two, but it became far less stressful and actually more productive after that change.

However, getting through that time was very tough. I needed that job. It was my first real professional job after college and I needed it to be a home run. It was perfectly in line with what I studied in college and was clearly going to be a foundational step in my career path because of the skills I could build and the connections I could make.

I was lucky in that my work environment eventually improved significantly. Others aren’t so lucky.

Still, there were a number of strategies I employed that made it possible for me to make it through that period. Not all of these strategies will work for you because not all environments are the same. Instead, consider these strategies a toolbox for handling high stress and toxic work environments.

Connect Strongly with Like-Minded Colleagues

Who are the people in your workplace who have a similar perspective as yours? Who are the quiet people who just seem to want to get their job done without all of the stress and the antics? Intentionally seek those people out and build a positive relationship with them.

The key thing here is “positive.” Don’t make your relationship with them center around negative talk about the workplace. Instead, focus it on the positives of what you’re both trying to do. What are you actually getting done? What are your successes? How can you help each other? What are your common positive interests? Don’t weigh those things down with negativity and complaints about the workplace.

At the same time, try to build those types of positive relationships beyond your workplace. Seek out peers in your field and build positive relationships with them. Share knowledge. Help people. Have good positive conversations. Get involved with your online professional community and any professional groups associated with your career path. Attend conferences and conventions. This takes time – give it time.

Again, the important thing here is “positive.” Look for positive things to day and avoid negativity. Your relationships should be based on positive exchanges rather than just dumping out negative feelings.

Stay Healthy (and Channel Negative Feelings While Doing So)

The stress and toxicity of a negative work environment can feed on itself and leave you feeling miserable. You dread going into work, feel exhausted when you get home, and often find yourself slipping into a routine of bad habits. High stress jobs often correlate with lack of exercise, unhealthy eating habits, and lack of sleep.

Don’t let that happen. Make a conscious effort to maintain healthy habits in your life. Eat well – I trust the simple mantra of “eat food, not too much, mostly plants” as general guidance, meaning trying to eat things with a tiny ingredient list, not eating until you’re stuffed and eating only when you’re actually hungry, and eating mostly plant-based items. Get exercise of some kind regularly (I’ll come back to that). Perhaps most importantly, get a healthy amount of sleep – aim for eight hours a night and try to create nights of sleep where you rise naturally instead of at the behest of an alarm clock.

A key point about exercise: it can be a great channel for negative feelings. Over and over again in my life, I’ve found that vigorous exercise just channels away a lot of negative feelings that I have. “Vigorous exercise” means different things for different people – I’d say just find something you reasonably enjoy doing and do it at a pace so that you’re somewhat out of breath for a while. I do this while running/jogging/walking (I just seek a pace where I’m panting but it’s not getting considerably worse or better and stick with that pace) and with taekwondo practice. It’s quite impressive how such exercise melts away stressful negative feelings.

In addition, let me recommend two other practices that have helped me handle stress over the years: meditation and journaling. Meditation basically boils down to spending some time turning off the constant monologue in your head. I do it by sitting calmly in a chair or on the floor for fifteen minutes (you may want to start with a shorter time) and simply focusing on my breathing, in and out, and bringing my mind back to focus on the breathing whenever it wanders. It really calms he mind in the short term and actually helps me focus better over the long term. For journaling, I tend to do a daily “brain dump” where I just write out whatever’s on my mind for a few pages, which is the most stress reducing part of the practice.

Document Everything

Documentation is a good practice for any work environment, but a particularly good practice in a high-stress and potentially toxic environment. Document. Everything.

The best way to do this is to keep a work diary where, each day, you document the tasks you worked on and how you moved forward on them along with any significant interactions with others, particularly ones that were stressful. Write it all down and keep it in a place where you have access to it and it can’t be deleted or removed by IT professionals at work.

This document serves two purposes. First, it clearly outlines your positive efforts at work in rather intense detail. It’s pretty hard to argue against a lengthy work diary that correctly outlines your efforts over a long period of time. Second, it provides documentation of potentially negative relationships that dip into extreme toxicity and damage your career.

It’s well worth your time to spend a few minutes a few times a day documenting what you’re working on and what some of the potentially troublesome interactions that you had were like. Being able to refer to specific actions and specific dates in detail at a later time may end up saving your career.

Avoid Office Gossip and Negative Talk

Negative workplaces tend to have a very active gossip mill, where negative stories are shared about others behind their backs. Gossip is poison to a workplace because it eventually creates an environment where lots of people don’t trust each other, and a lack of trust makes it very hard to get work done in any sort of collaborative way (or to even enjoy a day at work at all).

Just avoid it. If you hear office gossip, assume it’s false. More importantly, don’t say anything or add anything to it. Never offer anything on your own and if you’re asked about it, just shrug it off and say something noncommittal like, “I’ve never noticed that.”

If you find that some people regularly gossip, tone down your water cooler relationship with those people and find others to hang out with. Intentionally seek relationships in the office with people who don’t gossip and who almost entirely speak positively of others.

Do not let your reputation get tainted by being a gossip, even if it feels good. Don’t find yourself in a position to ever have to defend negative words you spread behind a person’s back. Don’t ever open yourself up to the criticism of “Well, you deserved the gossip about you because you were doing it to him/her!”

What about criticism in meetings where it’s warranted or requested? If that’s the situation, then some criticism is fine. You should never criticize anyone in a way that isn’t directly to their face and you shouldn’t say anything in a setting beyond one-on-one conversation that you would want anyone to say about you behind your back, ever. If you absolutely must criticize, focus on the problem as specifically as possible and, if you can, make sure to mention positives along with the criticisms.

Pick Your Battles Wisely, But Stand Up for Yourself When Needed

There are going to be times where you are going to have to fight for yourself in a negative workplace. You are going to have to stand up for yourself against unfair criticism and poor treatment. If you allow yourself to merely accept it, it will never get better and it will likely get worse.

My advice is to pick your battles wisely. Decide which issues are important and which issues are not, and decide clearly where the line in the sand is. If something crosses that line, fight that battle; if it doesn’t, just recognize it as something that isn’t genuinely important and roll with it.

Simply figuring out where your line in the sand is can be vital. For me, I decided that the big “line in the sand” for me was criticism of the code I was writing, which I knew was good code. For my various faults as an employee and person, the big thing I was confident about was the computer code I produced – it was well documented and formatted with good error handling and variable names and clear data structures, pretty much everything you would want. I would stand up and defend my code, but other things would wash over me. (I had other “lines in the sand,” but this was a clear one.)

When you choose to stand up for yourself, be firm and don’t back down. Make sure you know what you’re talking about and stick to your guns. At the same time, don’t get angry; if the other person gets angry, just listen to their anger but don’t respond with anger. Simply stick to your guns. It is hard to do this sometimes, I know, but if you give in to what someone else demands when it’s wrong and crosses your “line in the sand,” the results are not going to be positive for anyone involved. This is very hard, but it must be done.

Start Building Your Long Term Escape Plan and Give Yourself Light at the End of the Tunnel

One aspect of highly stressful and toxic work environments that compounds the negative feeling is the sense that there is no way out of this mess, that you’re stuck here in this swamp, that there is no light at the end of the tunnel. You should never, ever put yourself in a situation, good or bad, that doesn’t have light at the end of the tunnel.

If you feel like this, then you should start trying to build that light. Build a long term escape plan, starting today, and put as much effort as you can into making it work.

The first part, of course, is building a firm financial foundation so that you can afford to make a switch. This means doing everything you can to spend less than you earn, and that means cutting back on as many expenses as you can and putting that money aside. You should build yourself a small emergency fund (just money in a savings account for emergencies that you refill when it’s depleted – aim for $1,000 for starters, but more is always good especially when facing a big life change in the future) and then start paying off debts so your monthly bills are as low as possible.

The other part of this is planning for the next step in your career. Do you want to stay on the same path but just in a different position? Start really working on sharpening your resume and building professional relationships (especially beyond your workplace) and doing things at work (and beyond) that will look great on your resume, like big projects or educational endeavors. If you want a career change, focus strongly on the financial planning needed to make that happen and prepare yourself for that leap. Where do you want to be in two years? Start making that happen now.

Look on the Bright Side

A final strategy, one that’s always worked well for me, is to look on the bright side of things. There are always a lot of good things going on in your life, even if there’s stress and negativity on your plate, too. Reminding yourself often of the good things can really help with the stress and toxicity.

I keep a gratitude journal where, each morning, I note five things that I’m really grateful for in my life. Those are always universally good things. I try to stick with details – rather than saying I’m grateful for my kids, I look for something about them that I’m grateful for, like my daughter’s kindness or my son’s creativity or my other son’s burgeoning leadership. I try to avoid repeating them too often.

Over time, those gratitudes really build up. I can look through a few months of gratitudes and I can’t help but realize how great my life really is, even when parts of it are hard. That buildup seeps into my everyday thinking, too. I feel good about my life, even when some elements are challenging, and I attribute that to a constant focus on gratitude.

Final Thoughts

A high stress work environment is something that is incredibly damaging to one’s well being, both physically and mentally. It’s an environment that people should normally avoid, but many people find themselves “stuck” in such situations.

Still, there are many tools on the table that can help with such situations, from better practices for handling stress to finding ways to improve your workplace, from ensuring that you’re doing all you can to protect yourself from the chaos to building a better path to the future.

Take advantage of these tools. Build a better future for yourself. It’s all up to you.

Good luck!

The post How to Handle a High Stress Work Environment appeared first on The Simple Dollar.

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How This Jetsetting Mom Paid off $17.5K in Debt in 16 Months

Five Reasons You Shouldn’t ‘Sell in May and Go Away’

You may have heard the popular idiom that when it comes to your investments, you should “sell in May and go away.”

It’s unclear exactly where this comes from. Investopedia suggests that it may originate with an old English tradition in which aristocrats and other businessmen left London to vacation for the summer — which, if true, would be a hilarious basis upon which modern investors are making decisions. Others suggest that it simply reflects the fact that professional traders have historically taken time off in the summer, leading to lower trading volumes and lower returns.

But is there any truth to it? Are investment returns worse during the summer? With Memorial Day weekend approaching and the month of May almost over, should you be selling out of your investments right now?

The answer is a definite no, at least if your only reason for selling is because of this idiom. Here are five reasons why.

1. Past Results Are Mixed

Truthfully, there is some data supporting the idea that investment returns are worse during the summer months.

Adam D. Van Wie, CFP®, fee-only financial planner and COO of Van Wie Financial points to data from Bespoke Investment Group showing that the S&P 500 provided a median return of just 2.8% from May through September over the past 28 years, compared with 10.97% during the other months. Additionally, Dan Gallinger from The Motley Fool points out that two of the three worst performing months over the last 90 years have been in May and September, while three of the four best performing months occurred in December, January, and April.

But that data is hardly conclusive. As Van Wie points out, even the data from Bespoke shows a positive median return during the summer, and it also says those returns were positive 64% of the time. Selling in May would have largely led you to miss out on growth.

And recent years in particular have generally provided good returns during the summer months. Using Morningstar to analyze Vanguard’s Total US Stock Market Index Fund (VTSAX), we see positive returns from May 1 through October 31 for five of the past six years, and annualized returns during that period of 15.8% in 2014, 18.6% in 2017, and 25.2% in 2013.

“This was an old adage or trend and it does not necessarily exist anymore,” says Sahil Vakil, CFP®, president at MYRA Wealth. “Astute investors have exploited inefficiencies in the marketplace, and reduced the predictability of low volume and decreasing stock prices.”

The bottom line is that the data does not consistently support the idea that summer returns are lower than normal, especially recently, and it definitely doesn’t support the idea that your investments are likely to lose money in the summer.

2. Past Patterns Do Not Predict Future Performance

According to Colin Overweg, CFP®, founder of Advize Wealth Management, the vast amount of stock market data makes it easy to find historical patterns that don’t hold any bearing on the future.

“The guru, chartist, or technician believes in these theories because he or she believes that history repeats itself,” Overweg says. “But there are an infinite number of patterns that one can find looking at historical data and therefore diminish any chance of using them to profit on. There is no theory that has been used to consistently out-perform the market.”

In other words, even if you were able to find a consistent pattern of under-performance during past summer months, there’s no reason to expect that that pattern would persist going forward or that you would be able to profit off it. It’s just as likely to be completely random.

3. The Real Danger of Market Timing

When the subject of market timing comes up, it’s often talked about in the context of avoiding negative returns. The “sell in May and go away” idiom is a good example of just that.

But there’s another, perhaps bigger, danger that market timing introduces, and that’s the fact that a large percentage of the stock market’s long-term return comes from just a few good days, and that being out of the market on those days could really hurt you.

“Missing just the 25 best single days from 1990 to 2017 would cut your S&P 500 annualized compound returns in half, from 9.81% to 4.53%,” says Dejan Ilijevski, president of Sabela Capital Markets. “Disciplined investors tend to perform much better than those who try to beat and time the markets.”

Negative returns are certainly harmful, but missing out on good returns is often even worse. And given that the stock market goes up more often than it goes down, being out of the market for a few months introduces a lot of risk.

4. Costs and Complexity

Even without the data showing that it’s not likely to work, the logistics of managing a “sell in May and go away” strategy would be tough to pull off.

First, selling your stocks each May would subject you to capital gains taxes every single year, in addition to any trading costs involved with both selling out of your stocks and subsequently buying back in. Given that cost is the single best predictor of future returns, and that lower costs are better, this would present a significant hurdle towards reaching your investment goals.

Second, dealing with both the sale and re-purchase of your stock investments each year introduces a lot of complexity and room for error, and puts more work on your plate than is really needed.

“Keep all things money related simple,” says Kalyn Hochstrat, a fee-only financial planner rooted in Idaho. “There is no need to reinvent the wheel or add unnecessary complications because someone, somewhere says it’s a good idea.”

5. Know the Difference Between Entertainment and Advice

Ilijevski cautions that there’s a big difference between snazzy idioms and actual investment advice.

“Catchy headlines are meant to attract viewership and readership, but the financial news media in general has nothing to do with investors’ best interest,” says Ilijevski.

A good investment plan focuses on setting meaningful goals, saving enough money, contributing to the right accounts, using evidence-based investment strategies, and sticking with your plan through the ups and downs.

Theories like “sell in May and go away” might sound good, and you may even be able to cherry-pick some data to make them look good. But they never take your personal goals into account and they should never be confused with actual investment advice.

They’re for entertainment purposes only, and your future is too important to think of them otherwise.

Matt Becker, CFP® is a fee-only financial planner and the founder of Mom and Dad Money, where he helps new parents take control of their money so they can take care of their families.

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