Finance Xpress

In August of 2011, I found out about blogging and decided to learn how to create a blog of my own, so I created Making Sense of Cents. I didn’t know a thing about blogging and I never planned to make a penny from it.

But after learning how to create a blog, my life completely changed. I never realized it back then, but I’m so glad that I gave blogging a chance. Figuring out how to start a blog has definitely treated me right! Due to that, today I am going to talk about how blogging changed my life as well as the many reasons for why you may want to learn how to create a blog.

After all, blogging has been one of the best things ever for me.

Blogging changed my life and it allows me to earn thousands of dollars a month, all by doing something that I love. As you can tell from my business income reports, I now earn over $100,000 a month from my blogging-related services.

I definitely never thought that I would leave my day job as a financial analyst to become a full-time blogger either.

I found out about blogging one day when I was reading a magazine that featured a personal finance website in one of their articles. That website was super interesting as I knew that I didn’t want money to rule over my life anymore – I wanted to be in control of my financial situation and pay off my student loans.

This is interesting and hilarious because before that summer, I had no idea what blogs were, that they could even make money, or anything along those lines.

I did not create my blog with the intention of making money, rather I wanted to have a “journal” so that I could go back and track everything that I’ve done – I thought this would be a great way to stay motivated about my finances because I would be tracking them very closely.

It was all just a hobby and an outlet, but I soon realized how much I loved blogging and realized that it was for me!

In October of 2013, after a couple of years of blogging, I left my day job and became a full-time blogger, and I haven’t looked back once. Learning how to create a blog has completely changed my life for the better, and it’s something that I recommend everyone try if they are thinking about it.

Blogging changed my life in ways such as:

• I now love what I do and look forward to working each day.
• I am able to help others improve their financial situation.
• It will allow us to retire early.
• Both me and my husband were able to leave our day jobs.
• It paid off my student loans.
• We now travel full-time.
• I have a flexible schedule.
• I’m my own boss.
• Blogging gives me freedom.

There are many reasons to start a blog, and I have found it to be well worth it.

Here are 11 reasons to learn how to create a blog.

 

Blogging is a lot of fun.

Before I started blogging, I never gave it a single thought. Like I said, I didn’t even know that they existed, let alone that it would be fun work.

Now that I’ve been blogging for over 5 years, I can’t imagine not blogging.

I enjoy helping others improve their financial situation, reading blog posts from others, finding new people to talk to, working on my blog, and writing especially.

I love waking up each morning to work, and I no longer dread work like I did when I had my day job. Blogging is both challenging and rewarding, as there is always something new to learn and you can reach many people through your blog.

 

You can help others if you learn how to create a blog.

Even though I didn’t realize it would happen when I first started my blog, as it has grown over the years I have helped many people – including myself!

Your blog can definitely help others that you probably would have never reached without it. You may help them by showing them a new idea, help them improve their finances, create recipes, manage their life better, and more.

For example: My blog posts help and motivate others to improve their financial situation as well as their lives overall.

I have received many emails over the years from readers who I have helped, and it makes it all worthwhile. Helping readers is the best!

 

It’s affordable to create your own blog.

Blogging is a very affordable hobby, side hustle, or business to start.

If you are interested in taking the steps to learn how to create a blog, I have a tutorial that will help you create a blog of your own for cheap, starting at only $2.95 per month for blog hosting (this low price is only through my link). In addition to the low pricing, you will receive a free website domain (a $15 value) through my Bluehost link if you purchase at least 12 months of blog hosting.

This means that you may be able to start your blog for less than $50 a year. I started my blog for super cheap – cheap blog hosting, I designed my blog myself (even though I had no experience ever doing something like that), and more. I did pretty much everything myself so that I could save money, while it was a learning experience, it was well worth it.

 

The blogging community is amazing.

I’ve made a lot of good friends through my blog – both other bloggers and readers. These have grown into great friendships that I probably would have never made otherwise.

Being able to connect and learn from others is a big positive of blogging.

 

You can be your own boss.

With blogging, you can be your own boss, and that’s a huge positive of blogging. You can decide what type of business you’ll run, your schedule, your goals, and more.

 

Blogging can help you grow.

Blogging has helped me grow over the years.

I’ve learned to master my financial situation, my love for writing has grown (back in highschool, I never thought that I would be writing for a living!), I’ve met many different people over the years, and more.

 

You don’t need previous experience to be successful.

In order to become a blogger and create your own blog, you really don’t need any previous experience.

I’m proof of that because I didn’t even know that blogs existed when I started Making Sense of Cents, and I definitely didn’t know that bloggers could make money. I learned how to create a blog from the bottom up and have worked my way to where I am today. It’s not always easy, but it’s been rewarding!

With blogging, you’ll have a lot to learn, but that doesn’t mean it’s impossible. It’s challenging, but in a good way!

 

Blogging can allow you to travel and/or work from home.

Another great benefit of creating a blog is that you can work from wherever you want.

Because of blogging, I was able to sell my house in 2015 and have been traveling full-time ever since. It’s great knowing that I can work wherever I want.

Plus, having no commute is really amazing!

 

You can make a living blogging.

If all of the positive above aren’t great enough, you can actually earn a living by blogging.

No, not every single person will become a successful blogger (it’s NOT a get rich quick scheme), but I know many successful bloggers who started in a similar way as I did – blogging as a hobby and it just grew from there.

I earn around $100,000 a month through my blog, and there is still plenty of room for new bloggers to make money.

 

You can earn money while you sleep.

One of the things that I love about blogging is that the things you do now can help you to earn somewhat passive income, such as through affiliate marketing.

With affiliate marketing, I can promote products that I already use and love, while earning a living from it even when sleeping.

I recommend checking out my online course for bloggers, Making Sense of Affiliate Marketing. I earn around $50,000 a month through affiliate marketing, and I share my exact strategy and tips in this very informative online course. If you’re a blogger, then you NEED this course.

 

Blogging is a great platform for freelancers.

Not everyone wants to create a blog to become a full-time blogger.

Blogging can also help you land freelance gigs, such as speaking, virtual assisting, staff writing positions, book deals, and more.

By having a blog, people can find you easily, they can see a sample of your work, learn about you, and more. Without a blog, people may never find out about the services you offer.

 

How To Create A Blog FREE Course

If you’ve been wanting to learn how to create a blog, I have created an email course for those who are interested, but haven’t made the leap yet.

Best of all, this course is free!

With this free email course, I will show you exactly how to create a blog, from the technical side (it’s easy – trust me!) all the way to earning your first income and attracting followers. Each day for seven days, you will receive an email in your inbox that will help you from the beginning as you create a successful and profitable blog.

Here’s a quick outline of what you will learn in this free 7-day email course:

• Day 1: Reasons to start a blog.
• Day 2: How to determine what to blog about.
• Day 3: How to create your own blog. This lesson focuses on creating a blog with WordPress. My tutorial makes it very easy to start your blog.
• Day 4: How to make money blogging.
• Day 5: My tips for making passive income from blogging.
• Day 6: How to grow your traffic and followers.
• Day 7: Miscellaneous blogging tips that will help you reach success.

Please sign up for my How To Start a Blog Free Course by clicking here or signing up below.

Are you interested in learning how to create a blog? What other reasons to create a blog can you think of?

The post Blogging Changed My Life – Could It Change Yours? appeared first on Making Sense Of Cents.

from Making Sense Of Cents


via Finance Xpress

One of the biggest conundrums today is trying to understand why the mass media and housing activists keep droning on about how expensive U.S. property prices are, when in reality, U.S. property prices are amongst the CHEAPEST in the developed world.

Anybody who has actually spent time house hunting in Hong Kong, Singapore, Tokyo, Mumbai, Paris, London, Zurich, Stockholm, Sydney etc. realize how cheap the U.S. is. Do you think I’m just going to London to eat strawberries and cream at Wimbledon? Of course not! As a personal finance blogger who writes from first-hand experience, I’m diligently pounding the pavement to research the truth to share with all of you.

If you don’t believe how cheap US property prices are, have a look at this chart by the OECD (The Organization for Economic Development And Co-operation).

The United States is at the bottom and New Zealand is at the top based on this OECD property price index. They don’t even highlight Hong Kong where the average flat price equals 19X the median income. 19X vs. 5-6X in the US. That spread is outrageous.

What makes New Zealand property 2X more expensive than United States property? The obvious answers are the country’s natural beauty, Lord Of The Rings, more fluffy sheep than fluffy people, incredible rugby, foreign buyers, a stock exchange with a total market capitalization of roughly $100 billion (1/6th the size of Apple), and the 69th largest economy in the world by GDP.

Wait a minute. Why does the 69th largest economy in the world have the most unaffordable real estate in the world? This makes no sense unless there’s a tremendous amount of policy mismanagement in the form of building restrictions, loose foreign investment regulations, and corrupt government officials who love receiving money under the table.

I’m not saying that all this shady stuff is happening in New Zealand. I’m saying that something artificial is happening to cause such a pricing disconnect. Why else is there traffic around a toll road?

When prices are out of whack, a tremendous amount of social inequality occurs. When there’s enough social inequality, a revolution isn’t far behind (see Brexit, Trump, etc).

Mass Media Manipulation

Take a look at this SF-based Wired magazine tweet. You don’t have to read the article because it is the same populist verbiage about how it’s becoming increasingly difficult for the middle class to afford homes now.

The magazine even goes so far as to write, “A family that makes $100,000 can’t afford to buy a house in most U.S. cities.”

Are you kidding me? The median home price in America is roughly $240,000. Let’s say you put down a typical 20%. Your $192,000 mortgage at 4% is $917 a month. Let’s add another $200 for property taxes and maintenance for good measure.

Is Wired saying that a household who makes $100,000 gross, or $80,000 after taxes, can’t afford $1,117 a month? $80,000 net a year equals $6,667 a month before any 401k contributions. Spending only 17% of your net income to housing is affordable. Even if this household only put down 10%, a $216,000 mortgage at 4% still only costs $1,234 a month.

Now you know why there’s such distrust in the mass media. Either the writer at Wired magazine is incompetent or the writer has an agenda or both. One of the best media strategies is to tap into populist angst to make life better for themselves. The more enraged the population, the more views the article will get.

The great irony is that those people who can afford to go into the dying journalism industry probably don’t come from poor families. If you were poor, you’d study an in-demand major like engineering or computer science so you could land a well-paying job out of college and help support your parents who sacrificed so much for you! Only the rich can afford to study a soft major and willingly enter a struggling industry. Everything is rational.

Besides having a populist agenda, Wired magazine is also DISRESPECTING all of you who don’t live in San Francisco, New York, Seattle, Miami, Boston, Denver, Los Angeles, San Diego, and Washington D.C. That’s right. If you guys don’t live in one of the 10 most expensive cities in America, those of you who live in the other ~20,000 cities in America don’t count according to the phrase, “A family that makes $100,000 can’t afford to buy a house in most U.S. cities.” Note there are roughly 35,000 cities and towns in America, and ~4,000 cities with over 10,000 people.

What Wired and other media organizations writing about unaffordable housing are really trying to say is:

“Families making $100,000 a year have a difficult time affording a home in the top 0.01% most expensive cities in America.”

or

“Because I can’t afford to buy a home where I work and live, most people can’t either.”

Talk about being myopic. It’s no surprise the largest media organizations in America who like to complain on and on about high real estate prices are mostly based in New York City, Los Angeles, Boston and San Francisco. Their writing clearly ignores the 50% of you who do not live where they live.

Being biased is unavoidable. It’s why organizations are so homogenous in their demographic makeup. To consistently ignore the heartland of America is INSULTING. The brazen disregard for half of America is exactly why Hillary lost.

Why Some Americans Don’t Understand How Good They’ve Got It

1) They believe the mass media. If you live in one of the most expensive cities in America and only earn $48,000 a year as a journalist, then of course you’re going to write about how unaffordable housing is, and extrapolate your situation with your company’s platform. If you start believing everything you read in the news, then of course you’re going to take on their biases. Instead, it’s up to all of us to read with a more critical eye.

2) They haven’t traveled around the world. Once they get outside the country, they’ll realize how truly awesome America is. Everything from real estate, to cars, to gasoline, is so much cheaper here in the States. Do you really want to pay $70,000 for a Toyota Corolla in Singapore? Do you really want to pay $1,500,000 for a 500 sqft studio in Knightsbridge, London? If you don’t have money to travel to London or Singapore to see how truly outrageous prices are, just surf the web and see for yourself.

3) They’re too lazy to do any research. Even surfing the web for comparison property prices in Stockholm takes moving your fingers about 50 times. Instead, it’s much easier to just trust a headline. We expect everything to come to us in America. As a result, we fail at speaking a second language fluently while many of our friends in Europe can often speak three languages quite well. Just look at 18X major champion Roger Federer. He’s a professional tennis player, not a professional linguist, and he speaks three languages fluently (German, French, and English).

4) They want to believe what they want to believe. Have you ever believed in something so hard, only to later realize it wasn’t? Have you ever been so adamant in your belief that you disregarded reality? Like seeing the light after breaking up with your crazy girlfriend or boyfriend. What were you thinking? Obviously, you weren’t when you thought you were in love. Once we believe something to be true, it’s really hard to change our minds.

5) They’re frustrated at their own situation. Just because they can’t afford to buy a $1.1M median home in San Francisco or New York City on a $100,000 salary doesn’t mean you can’t buy an awesome middle class home for $300,000 wherever you live.

Long And Strong U.S. Property

The reason so many foreigners are rushing to buy U.S. property is not only because they realize how comparatively cheap U.S. property prices are, they also believe America offers one of the world’s best lifestyles with the most upside opportunity.

Therefore, if foreigners realize the U.S. value proposition, it’s a good idea for Americans to realize our own country’s amazing value proposition by owning a piece of America too. To do so, we need to gain some perspective and inhale some toxic air in Beijing for a month or hopelessly try to find a well-paying job in Milan. Only then will we truly appreciate our good fortune.

The reason U.S. property prices are so cheap is because we have a large land mass, a stable government, a world currency, a deep bond market, strong IP protection, incredible productivity, a strong work ethic, property rights, human rights, a desire for equality, clean air, drinkable tap water, a deep education system, and innovative technology. Not owning at least a primary residence in such a great country when foreigners are beating down our doors to buy is foolish long term. We’re going to hear the same complaints from the same people 10 years from now.

Foreigners see U.S. coastal city property like U.S. coastal city inhabitants see middle America property: great overall value. But before the tidal wave of new foreign money comes crashing down on the heartland on top of fluid coastal city money looking for new opportunities, I want as much exposure to the heartland as prudently possible. Sooner or later the money is going to start pouring in. Before it really does, I’m happy to earn a healthy yield while I wait.

Readers, why do you think American real estate is so cheap? Why do you think Americans don’t realize how good we’ve got it? With the USD appreciating to a 13-year high, isn’t it obvious there’s tremendous demand for U.S. assets? Why are we letting overseas buyers purchase our properties before we ourselves buy them?

from Financial Samurai


via Finance Xpress

If you’re thinking about leaving your current job, you have many things to consider. Is it the right move for your family? Will you be gaining or losing benefits? It also raises one very important question—should I roll over my 401k to an IRA.

I’ve been faced with the same decision three times. The first was when I left my law firm. I had two retirement accounts (one as an employee and one as a partner) with Fidelity. I left both accounts with Fidelity because I liked the investing options. The second time was when I left an in-house job at an IT consulting firm. The investment options there were not so good, so I rolled over the 401k into an IRA with Vanguard.

I did a lot of research when faced with the decision for a third time, after quitting my job. From the beginning, I was certain that I would roll over my 401k to my Vanguard IRA, mainly because of the lousy investment options in the 401k. As I had spent some serious time researching the issue, I thought I’d share what I found along the way.

Investing Options

Investment options within your 401k plan are the first and most important consideration. Many employer-sponsored plans have limited investment options. Other employers stuff their plan full of alternatives, most of which are bad choices. That was the problem with my last employer. While there were literally hundreds of mutual funds to choose from, all but one or two were just awful.

A related but equally important consideration is cost. It’s not enough that a 401k offer sound investment opportunities, they have to offer them at a reasonable cost. My rule of thumb is to keep the weighted average cost of all mutual funds and ETFs to 50 basis points or less. As I rolled over my 401k and rebalanced my investments, my goal was to try to get the total cost to under 20 basis points. There was no way I could reduce the costs to this level unless I rolled over my 401k.

Taxes

There are some tax implications to consider, particularly if you are toying with the idea of a withdrawal before age 59 ½. As this article from Oblivious Investor explains, you may be able to make withdrawals at age 55 from a 401k without the 10% penalty. As always, consult your tax advisor before making any decisions.

Resource: 5 Ways Retirees Can Avoid Early Withdrawal Penalties

Simplicity

It’s much easier to manage fewer investment accounts. Change jobs a few times and throw in an IRA for good measure, and you’ll find yourself managing more retirement accounts than you can handle. Rebalancing your investments across multiple accounts is a real chore, too, as I quickly learned firsthand.

Between retirement and non-retirement accounts, and my accounts at Lending Club and Betterment, I felt like the guy trying to keep a dozen plates spinning on top of wooden rods at the circus. Rolling 401k accounts into a single IRA reduces the number of spinning plates you have to keep from breaking.

Roll Over Options

There are two primary options—mutual fund companies and online brokers. Both are good choices. The best choice for each individual often depends on what investment choices they plan to make. If you plan to buy all Vanguard funds, for example, opening an IRA account with Vanguard will be the most cost efficient option.

On the other hand, if you plan to invest in a variety of funds, ETFs, stocks and/or bonds, a discount broker is a better choice. That’s what I did with my SEP IRA, which I have with Scottrade. You can check out our list of the best brokers for IRA retirement accounts.

In the end, I believe that for most people most of the time, a rollover IRA is the best choice. But as with anything this important, weight the factors carefully and seek the help of a tax or investment advisor if necessary.

If you’re looking at what exactly you need to do for your own rollover, check out our easy 5 step guide. And if you have any other questions or tips for other readers, please let them in the comments below!

Here are some additional resources I found helpful:

• Emily Brandon of U.S. News published an informative article discussing IRA and 401k accounts worth reading. One interesting fact is that the vast majority of money in IRA accounts today came from 401k rollovers, not direct investments.
• Kathryn A. Walson at Kiplinger offers a helpful discussion of whether you should roll over a 401k. One factor she mentions is that with an IRA, you can withdrawal you money anytime you want, albiet with a possible 10% penalty. With a 401k, withdrawal options vary from one employer plan to another, and if you do take out money, you may be forced to take it all out.
• Pinyo over at Moolanomy gives you the nuts and bolts of rolling over a 401(k) to an IRA.

Topics: Investing • Personal Finance • Retirement Planning

The post Should You Roll Over a 401(k) to an IRA? appeared first on The Dough Roller.

via Finance Xpress

Today, I have a post from my friend Stefanie O’Connell. This is a great read that will show you how to live your dream life but also stay within a realistic budget. Enjoy!

Confession. I have no desire to live an uber-frugal life.

Bulk freezer meals and DIY projects play no part in my desired future.

I don’t care if that means I can’t retire by age 40, I’d much rather work the rest of my life doing what I do now than resign myself to ramen noodles and staycations for the next 50 years.

You see, I live in New York City. And I absolutely love it. From overpriced cocktails to obscenely expensive apartments, living the big city lifestyle has always been a priority. 

Don’t get me wrong, I don’t think a love of anything is a good enough excuse to live beyond your means. I may want to live like Carrie Bradshaw, but there’s no way I’m going to let myself go broke doing it. I am a personal finance writer after all.

That said, my end game isn’t to spend as little money as possible. It’s to afford a lifestyle I love – even if that means a little extra indulgence.

Whether your idea of indulgence is living in New York City, enjoying artisanal cocktails, or something else entirely, don’t let the DIYers, the early retirement crowd or anyone else shame you out of it. Because true frugality isn’t about living as cheaply as possible, it’s about maximizing value, and the only way to do that is build a lifestyle around your priorities – not someone else’s.

If your priorities look more like Carrie Bradshaw’s than George Costanza’s, no judgment.

Mine do too.

The good news is there’s a way to enjoy the finer things and be mindful of your financial future. Here’s how.

 

What Do You Want?

It seems like the most obvious question, but when I ask people what they want their life to look like 5 years from now, they struggle to answer.

It’s relatively easy to set goals for the next week, month or year, but when it comes to longer timelines, think 5 years plus, goal setting becomes more challenging. Probably because we’re rarely, if ever, asked to consider our longer-term goals. When we do, it forces us to think about the bigger picture, our values and priorities, as opposed to practical improvements upon our current circumstances.

If my ideal 5 years from now is living in Brownstone in SoHo while jet setting around the world every other month to work and vacation, I’m going to need to set very different goals in the next 12 months than if my objective were to buy a house in the suburbs and have two children.

The value of thinking about what you want longer term can help you define your priorities and use them as a compass when setting goals in the present.

It can also help you define the trade offs that will help you afford your ideal. In the case of my downtown Brownstone dream, not having to consider the formidable expenses of owning a car or having children frees up ample resources, namely time, money and energy, to afford the Carrie Bradshaw lifestyle I dream about.

Related read: 30 Incredibly Easy Ways To Be Happier, Wealthier, and More Successful

 

What Can You Afford?

As much as forgoing car ownership, a wedding and even children might save me, I’ll admit, there’s still a major gap between my means and the costs of my dream lifestyle.

Just how much of a gap? Well, that requires getting down and dirty with the numbers. If you’re serious about making your dream life a reality, you too need to get real about the numbers that will make it happen.

How?

Start with that 5 year vision of what you want. Now put a price tag on it. How much does every aspect of that dream cost? For example, the rent on the brownstone, the weekly Sunday brunches, the daily happy hour, the walk-in closet wardrobe.

It can be daunting to put numbers on your dream life, if only for the sheer overwhelm of the totals, but it’s the best thing you can do to bring yourself one step closer to living that ideal.

Once you’ve got some price tags on your dream, divide it by 5 or however many years you want to give yourself to achieve it. Now divide by 12. That’ll give you a tangible metric for how much you need monthly to afford that lifestyle.

With that number in mind, take a look at your monthly income today. I’m guessing it’s not quite in alignment with the cost of the dream life you just calculated. No worries, you have 5 years to figure it out.

For starters, you can look for ways to boost your earning potential. Whether it’s asking for a raise, cultivating additional income streams or a combination of both, getting aggressive with your income is one of the best ways to afford your dream lifestyle.

You can also take a look at your current spending. If there are any big ticket purchases in your dream life, like a house or a trip around the world, you’re probably going to need to start saving for those things NOW. Where can you make trade offs in your current spending to start saving for those big picture ideals?

Finally, you’ll probably have to prioritize. I know no one likes to cut back, but if you’re going to live your dream life without going broke, you’re going to have to be honest about the reality of your means. So take the elements of that dream life and their associated costs and rank them in order of importance to you.

That’s not to say you’ll have to kiss your secondary priorities goodbye, it just means identifying which elements of your dream life are most important and saving up for those things first, before moving onto the those that are lower down your list of priorities.

Related reads:

• 30+ Ways To Save Thousands Each Month
• 75+ Ways To Make Extra Money

 

What Do You Need?

As you’re spending time dreaming about your future self and all the indulgence you’re planning to afford, it’s also critical to make sure you’re considering your needs today.

And I don’t just mean needs in terms of food and housing basics. I mean needs in terms of your financial outlook – paying down debts, building up savings and prioritizing investment contributions.

Affording a lifestyle you love doesn’t happen by pushing your financial needs to the backburner, it happens by putting them at the top of your priority list. Making them as non-negotiable as your rent or insurance premiums.

Just as you put a price tag on all the elements of your dream life and broke it down into a digestible monthly cost, do the same for your financial life. If you have any debts, calculate what you can contribute in addition to your minimum monthly payment to get that balance down to zero. If you’re building savings, how much do you need to contribute monthly to fully fund 6 months worth of living expenses in emergency savings? If you’re investing, how much would you need to contribute each month to max our your 401k and/or ROTH IRA contributions by the end of the year? 

I know it’s not as sexy as dreaming about your dream home or future vacation plans, but it’s the foundation upon which you build to afford those more exciting things without putting your future self at financial risk.

After all, who wants to take a fabulous trip around the world only to come back thousands of dollars in debt and stressed out for the next 5-10 years. That’s a trade off I’m certainly not willing to make.

 

Hacking the Rest

Between your current costs, your financial needs and your someday goals, there’s A LOT to squeeze into your financial plan. Making more helps, as does prioritizing your list of dream items and costs, but what about the rest?

Should your kiss your dreams of weekly mani/pedi pampering goodbye?

You could, or you could figure out how to hack the costs. Just because something is considered a luxury, doesn’t mean it can’t be done affordably.

From scoring high end fashions for half the price at local thrift stores, to getting haircuts and color for free as a hair model at local training salons, there’s almost always an alternative for scoring your lifestyle luxuries on the cheap.

So take a look at all those elements of your dream life again and research three to five ways to hack the costs of each. You’d be surprised what a simple google search will reveal. You may even find savings strategies that let you start incorporating those luxuries into your lifestyle today.

Here are just a few of my strategies for big living on a small budget to help kickstart your brainstorm:

Hit the farmer’s market in the last hour of the day when farmers are more likely to discount their remaining supply of high quality, local produce.

Opt for lunch instead of dinner when scheduling your meal splurges to cash in on midday discounts. Oh, and don’t forget happy hour!

Barter for high-end fitness classes by offering to help with pre-class set up, post-class cleanup or front desk sign in.

Plan your world travels around people you know so you have a free place to crash when you arrive (and an insider’s guide to the destination you’re visiting). If you’re feeling a little adventurous, you could always try couchsurfing.

Check Groupon and other local deal sites for steep discounts on all kinds of indulgences from sunset sails to massage treatments.

Are the ideas flowing yet?

The more creative you get in your approaches, the more of your lifestyle luxury you’ll find you can afford.

 

The Bottom Line

Ultimately, financial planning isn’t about sacrificing everything today for the sake of tomorrow (as it so often seems). It’s also not about running up a massive credit card bill for a pair of Louboutin’s at the expense of your future either. It’s about making financial decisions with equal consideration for both.

So set aside the time to sit down and define what your priorities are today and tomorrow. If they include a few total unnecessary, Carrie Bradshaw-like indulgences no shame, as long as you learn to afford them!

Bio: Stefanie O’Connell is a millennial money expert, author and creator of the free Cash Confidence Challenge, helping women take ownership of their finances to afford a lifestyle they love!

What is your dream life? What are you doing so that you can live your dream life and not go broke? 

The post How to Live Like Carrie Bradshaw Without Going Broke appeared first on Making Sense Of Cents.

from Making Sense Of Cents


via Finance Xpress

There’s a saying that goes something like this: To feel rich, take whatever you earn and triple it. Once you get there, triple it again, and again, and again. In other words, due to hedonic adaptation, it’s impossible to ever feel rich!

But I’ve noticed on my path to financial freedom that there were several times when I felt incredibly rich. The Dow reaching 20,000 wasn’t one of them by the way. Perhaps you can share when you finally felt rich as well.

When I Finally Felt Rich

1) When I went back to Malaysia. I used to live in Malaysia from 5th grade to 8th grade in the early 1990s. At the time, the exchange rate was ~2.3 Ringgit to 1 USD. When I finally paid a visit more than 20 years later, the Ringgit had depreciated to 3.7:1. One Ringgit bought the equivalent of $1 worth of stuff. Therefore, I suddenly had almost 4X the amount of purchasing power during my week-long stay. So perhaps making 3X more doesn’t really make you feel rich, but making 4X more does!

In addition to the increased purchasing power aspect, it felt particularly moving to visit my old house and to realize I didn’t fall through the cracks. I was an undisciplined kid who got into way too much trouble. If I was my own father, I’d have considered sending myself to military school.

2) When I finally hit my passive income target. It took 17 years to achieve my passive income target, but when I finally got there, I felt rich because there was no more fear of running out of money. Growing up in developing countries and experiencing many boom bust cycles working in finance always keeps me a little paranoid about losing everything.

Passive income feels like free money because you’re not doing much to earn it. You almost feel guilty collecting a rent check or dividend payment, which is why I have no problems paying a management fee or going to a rental property to fix a problem.

The amount of passive income generated is less important than whether or not it can cover all of your living expenses plus a nice cushion.

Related: A Long Road Home: Passive Income Update 2017

3) When a new income stream comes out of nowhere. I firmly believe none of us are maximizing our income potential. I’m going to guess that if we could make a maximum of $100 a month, most of us are really making only between $10 – $30. It’s kind of like how none of us utilize more than 20% of our brains. If we did, cancer would no longer exist.

During one business offsite in 2Q2016, my team worked on how we could optimize our existing platform. We discovered that roughly 30% of our posts had zero advertising partnerships. They were just making money through these generic click and banner ads that don’t pay much. As a result, we decided to reach out to a couple new companies we liked to see if we could strike a deal. We did, and a new revenue stream was created from existing inventory.

One of my biggest biggest problems running a website is not caring 100% about maximum revenue generation because I already have my passive income. I’m not constantly hustling to find new business deals or writing about lucrative credit card offers. If something doesn’t interest me, I just don’t write about it no matter how much money is involved because everything already feels like gravy. The best entrepreneur or financial independence seeker is someone who has everything to prove and nothing to lose. Therefore, if you’re in the early stages of your journey, cherish your motivation!

Related: The First Million Might Be The Easiest

Common Underlying Theme To Feeling Rich

Why do some billionaires cheat and steal? If you’re worth $1.5 billion, like Galleon hedge fund manager Raj Rajaratnam was before he went to jail for insider trading, it’s illogical to risk going to jail and losing everything for a mere couple million dollars in illicit profits.

Why is it that even if you’re financially independent, it’s still so hard to resist a free lunch? It doesn’t make sense to stuff your face at the buffet line when you know overeating will cause you to die early. Further, you can easily afford the rubber chicken sandwich any time.

The common theme to feeling rich is when you feel like you’re GETTING SOMETHING FOR NOTHING. Or, that you feel like you’re winning.

In Malaysia, I was getting something for nothing due to a strong USD. All I did was fly to Kuala Lumpur to see my childhood friends. I didn’t work hard to be able to afford 4X as much as a local Malaysian. Being American made me rich by global standards.

When I achieved my passive income target after 17 years, it finally felt like I was living for free because my assets covered all my living expenses by 160%+. I don’t actively recall all the sacrifice required to amass such a financial nut. All I experience is the present. Not remembering the pain of hard work is exactly why you should work hard now.

When a new business opportunity arose in 2016 after some thinking on a floaty in the ocean, it felt amazing because I couldn’t forecast its rise. Brainstorming in Hawaii about how to optimize my existing platform and having lunch with management from a new corporate partnership for a couple hours doesn’t feel like enough sacrifice to suddenly generate an extra five figures a month. If I wrote another 200 posts, then I’d feel worthy. But I haven’t.

It’s true that if you focus on an absolute dollar amount, you’ll never truly feel rich. What’s also interesting is that even after leaving Corporate America in 2012 to experience absolute freedom, I didn’t feel rich. I felt more nervous excitement about the future than feeling like I had finally made it.

The key to constantly feeling rich is to constantly feel like you’re winning. If you can combine being content with what you already have with the occassional good deal, I dare say you’ll feel rich for the rest of your life!

Some Other Examples Of When You Might Feel Rich

* If you walked away from a car accident unscathed.

* If you find a $100 bill on the ground with nobody else in sight.

* If both of your parents live to hold their grand children.

* If you were diagnosed with a terminal disease and are still living.

* If you found the love of your life.

* If your job is something you’d happily do for free.

* If you’re making a difference in other people’s lives and also getting paid.

* If you were a C student and now live an A lifestyle.

Related:

What Income Level Is Considered Rich?

What Does Financial Independence Really Feel Like?

Readers, do you agree with my thesis that you only feel rich if you’re getting a good deal or if you’re getting something for nothing? At what moments in your life did you finally start to feel rich?

from Financial Samurai


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Posted by: John S Kiernan

The auto industry has been red-hot in recent years, with more than 51 million new vehicles sold since the start of 2014, according to data from MotorIntelligence. Yet the average vehicle on the road is still more than 11 years old, according to IHS. So it’s clear that both new and used cars have their fair share of fans out there. The question, however, is which type of automobile is the better buy.

There are many factors to consider in answering this question, with the most important being cost and safety. Used cars are obviously cheaper to purchase, but their longevity and maintenance costs can be major question marks. And there’s no telling how much you might lose as a result of not having the latest technological features, such as lane departure warnings and automatic braking. On the flip side, new cars come with some fancy bells and whistles, but they also take a hefty toll on your finances. For example, the average new-car buyer in 2016 took out a $30,022 auto loan, according to Experian, thereby incurring nearly $11,000 more debt than the average used-car buyer.

With these competing arguments in mind, WalletHub surveyed leading experts in the automotive and personal finance industries to get their take on this fundamental issue affecting most families’ everyday finances. You can find their responses and bios below. Finally, if you’d like to join in the debate, just share your thoughts in the comments section at the end of the page.

Why You Should Buy a Used Car

Highlights:

• Cars typically lose the most value during the first five years. For example, if you purchase a model year 2017 new car, it would lose the most value between 2017 and 2022. This means if you have a car loan, you could owe more money on the car than it is worth during this period (that’s why gap insurance was created—which is an additional cost to you).

  Axton E. Betz-Hamilton // Assistant Professor, Eastern Illinois University

• From a family economic perspective, used cars offer both value and flexibility that are difficult to match with new car purchases. Although we’ve either experienced ourselves or know someone who has had negative experiences buying used cars (e.g., unexpected maintenance costs, less longevity of vehicle than anticipated), the potential financial benefits of buying used outweigh those of buying new. This is especially true as you move up the price range for new cars.

  Adam R. West // Certified Family Life Educator and Assistant Professor of Family Studies at Western Kentucky University

• A car is the second largest purchase for a typical consumer, and should be considered carefully from a financial perspective, particularly with consideration of the tradeoff between unfavorable depreciation from a new vehicle (which cannot be avoided) and the risks taken by purchasing a pre-owned vehicle (which can be somewhat controlled and mitigated).

  Laine Mears // SmartState Professor of Automotive Engineering, Clemson University - International Center for Automotive Research

< >

• James D. Halderman Author and Former Professor of Automotive Technology
• Axton E. Betz-Hamilton Assistant Professor of Consumer Studies at Eastern Illinois University
• Adam R. West Certified Family Life Educator and Assistant Professor of Family Studies at Western Kentucky University

James D. Halderman Author and Former Professor of Automotive Technology Did you know that everyone drives a used vehicle? As soon as a new vehicle is driven out of the dealership, it is used and its value drops. Used vehicles including cars, trucks and SUVs are less expensive to purchase and if three years old, can often be purchased for half of what it cost when new. For example, David is a company service representative and travels a lot (about 40,000-50,000 miles a year). He does not want to purchase a new vehicle because it would soon be out of warranty and in his opinion, a waste of money. However, he was not comfortable trying to find a good used car because he does not know what to look for when inspecting a used vehicle. After checking with several automotive-knowledgeable people, he decided that the best plan of action was to purchase a used vehicle that was returned after three-year lease and was “certified” by the dealer and the factory. Being a certified used car, it had to meet stringent requirements and be free from any mechanical, body or interior faults and be accident free (have a clean “Car Fax”). He was very pleased with this decision and happy knowing that he has a reliable vehicle that looks almost new and still met his budget. Things to consider when thinking whether or not to purchase a used vehicle include:

• A used vehicle often is sold as a certified used vehicle, especially those returned after a lease and offered with a warranty that is often longer than the original factory warranty.

• Many high cost options are included at a fraction of their original cost and often at no additional cost at all. Therefore, if a potential vehicle buyer wants some or many of the high cost options such as heated and cooled seats, navigation or radar cruise, backup camera, then purchasing a used vehicle is a wise decision.

• The selection is almost as good as and often better than purchasing a new vehicle. While this does not seem right, Automotive News stated that 95% of new vehicle purchases are made from the selection on the dealer’s lot. While purchasing used does not allow the buyer to select the exact vehicles and color wanted, often the selection is very good.

Most people cannot tell what year a vehicle is, so if it is clean and well maintained, no one will know that it was purchased used. For those of us that like to keep as much of our hard-earned money as possible, purchasing a used vehicle is truly the wise choice. Axton E. Betz-Hamilton Assistant Professor of Consumer Studies at Eastern Illinois University While there are many positives associated with purchasing a new car, such as a warranty, a major downfall is cost. New cars typically cost over $20,000 and start to lose value as soon as you drive it off of the dealership lot. Cars typically lose the most value during the first five years. For example, if you purchase a model year 2017 new car, it would lose the most value between 2017 and 2022. This means if you have a car loan, you could owe more money on the car than it is worth during this period (that’s why gap insurance was created—which is an additional cost to you). To avoid the substantial loss in value of a car during those first five years, it is advisable to purchase a used car that is at least five years old. When shopping for a used car, be sure to research reliability ratings online and research the value of used makes and models you are interested via Kelly Blue Book. Kelly Blue Book provides the option of comparing values of used cars for sale at dealerships versus those for sale by private owners, so you can be aware of what is considered to be a “fair” price before you begin the negotiation process with a seller. Before purchasing a specific used car, take the time to open the hood and check the oil, transmission fluid, and brake fluid. Check hoses for cracks. Also, run a CarFax report to see if the specific vehicle you are interested in has been involved in any accidents or has had flood damage. Taking the time to do these tasks will help you make a fully informed purchase decision. Finally, used cars typically cost less to insure than new ones. With some extra time, effort, and some basic car maintenance knowledge, you can save yourself a lot of money by purchasing a used car. Adam R. West Certified Family Life Educator and Assistant Professor of Family Studies at Western Kentucky University The discussion about whether to buy new or used vehicles is often a divisive one. Some base their arguments on personal experiences (e.g., growing up in a household that always bought new cars) and others cite stereotypical evidence (e.g., used cars are others’ cast off problems). From a financial point of view, I side with the argument that used cars are a better buy than new cars. From a family economic perspective, used cars offer both value and flexibility that are difficult to match with new car purchases. Although we’ve either experienced ourselves or know someone who has had negative experiences buying used cars (e.g., unexpected maintenance costs, less longevity of vehicle than anticipated), the potential financial benefits of buying used outweigh those of buying new. This is especially true as you move up the price range for new cars. Value New vehicles have an initial depreciation value of approximately 20%, as they immediately move from being classified as “new” to “used” the very minute that you are handed the keys. Couple that with a roughly 5 to 10% increase in sale price over the dealer invoice, and consumers end up paying quite a bit more than the initial car value. New cars typically require little maintenance in their first few years, and with the increases in technology and reliability, newer used cars (e.g., within the last decade) still offer some of the same minimal maintenance benefits of brand new cars. The savings realized from purchasing a used car versus a new car allows families flexibility with their future budgets and spending plans. Flexibility Because used vehicles are less expensive than their new counterparts, the decision to purchase a used vehicle allows more wiggle room in the family budget. With lower monthly car payments, more money is available for other family needs within the budget. Likewise, although depreciation is not uniform across manufacturer, makes, or models of cars, some vehicles hold their resale value longer than others of the same model year and odometer reading. The higher possible resale value gives families options as they decide whether to trade-in, sell, or keep their vehicles. And regardless of the overall economic conditions, families fare better when they have realistic financial choices and options. Either way, the decision to buy a car, new or used, must be consistent with and fit within a family’s needs, goals, and most importantly, budget. Why You Should Buy a New Car

None of the experts we reached out to believe that buying a new car is definitely the way to go. Maybe you can make a case in the comments section.

Why It Depends on the Situation

Highlights:

• Individuals differentiate on new and used vehicle purchases largely because of depreciation and maintenance. Depreciation is the single largest expense of new vehicle ownership and the hidden loss in a car’s value may not be recognized until the individual is ready to trade-in. Maintenance on used vehicles require time and money. Unlike depreciation, repairs and maintenance are costs that must be addressed as they arise. Both costs will affect your personal budget.

  Wayne R. Hamric // Administrator, Office of Motor Vehicles, Arkansas Department of Finance & Administration

• Rational consumers will see that the implicit value in buying new, which includes a car warranty and newer technology features, tilts against pre-owned vehicles. As the cost of the used car trends towards 50% of the new, the used car becomes more desirable as first year depreciation fears on the new car will overshadow the gratification of having the latest, greatest ride.

  Kirtlund (Kirt) Frye // Director, Greater Cleveland Automobile Dealers' Association

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• Laine Mears SmartState Professor of Automotive Engineering in the International Center for Automotive Research at Clemson University
• Kirtlund (Kirt) Frye Director of the Greater Cleveland Automobile Dealers' Association
• Wayne R. Hamric Administrator of the Office of Motor Vehicles at Arkansas Department of Finance & Administration

Laine Mears SmartState Professor of Automotive Engineering in the International Center for Automotive Research at Clemson University Used Car Purchase as a Viable Alternative to New: Financial Aspects to Consider A car is the second largest purchase for a typical consumer, and should be considered carefully from a financial perspective, particularly with consideration of the tradeoff between unfavorable depreciation from a new vehicle (which cannot be avoided) and the risks taken by purchasing a pre-owned vehicle (which can be somewhat controlled and mitigated). Consider the following points around purchasing a used vehicle: Benefits

• Someone else absorbs the high depreciation at the start of life.

• Any transient issues, recalls and bulletins have a high probability of having been addressed.

• Any systemic observations on the vehicle model (e.g., performance and safety ratings, design issues) are apparent and documented to help with your buying decision.

Considerations

• Older cars do not incorporate all of the latest technologies, such as compatibility with handheld embedded devices (e.g., not able to take advantage of the latest iPhone features) or emerging features (e.g., adaptive cruise control and lane departure warning).

• Used cars are available for a reason; sometimes that reason is an underlying issue affecting reliability.

• You have only the selection of what is available; not all options or features that you desire may be included, or you may need to wait for an extended time to get what you want.

• Used cars can be near or past the end of the manufacturer’s warranty period; any new issues that arise could be completely your financial responsibility.

A robust financial strategy is to therefore consider a Certified Pre-Owned (CPO) vehicle from a dealership. These cars are typically 3-year lease returns that are refurbished and checked by the dealer, and sometimes come with major updates and replacement parts at no additional cost (all recalls must be complete before the sale is permitted). Also, the full vehicle maintenance record is typically available so you have specific information to support your decision. However, most importantly, such vehicles come warranted for an additional period (sometimes for a longer period than the original factory warranty!), and for some manufacturers programs such as prepaid maintenance or tire/wheel protection can be added at the time of purchase. These cars (and these programs) come at a marginally higher cost than buying from a private owner, but the security more than makes up for the reduction in risk (though there is still a degree of inherent uncertainty in the reliability). This approach provides a path for one to own a more luxurious (or lower-price) vehicle than could be purchased new, with the security of covered protection for an extended period. Kirtlund (Kirt) Frye Director of the Greater Cleveland Automobile Dealers' Association There are two important factors to consider when choosing whether to buy a new or used car. The first is how much the manufacturers are willing to incentivize consumers to buy new over used. Without getting into the debate of new lease vs. purchase vs. paying cash, the general rule of thumb is that consumers will trend towards new when the average value of a comparable four-year-old model with less than 60,000 miles is 60% or more of the cost of the new car. Rational consumers will see that the implicit value in buying new, which includes a car warranty and newer technology features, tilts against pre-owned vehicles. As the cost of the used car trends towards 50% of the new, the used car becomes more desirable as first year depreciation fears on the new car will overshadow the gratification of having the latest, greatest ride. The second factor is determining where the used car is relative to the new car in terms of the manufacturer’s model upgrade cycles. A new vehicle that is still in the same upgrade cycle as the same-model used car will tend to be less desirable than its used counterpart, as the basic look and technology probably has forced the manufacturer to heavily discount the new models. This in turn pushes down the value/market value of the pre-owned version, leaving the used car more desirable especially with the advent of certification programs and available long-term "wrap warranties." Wayne R. Hamric Administrator of the Office of Motor Vehicles at Arkansas Department of Finance & Administration Individuals differentiate on new and used vehicle purchases largely because of depreciation and maintenance. Depreciation is the single largest expense of new vehicle ownership and the hidden loss in a car’s value may not be recognized until the individual is ready to trade-in. Maintenance on used vehicles requires time and money. Unlike depreciation, repairs and maintenance are costs that must be addressed as they arise. Both costs will affect your personal budget. It’s my observation that cars have never been more dependable than they are today. It’s not uncommon for cars to be driven 100,000 miles before needing major repairs. All vehicles require maintenance such as oil changes, tire rotation, and brake replacements. Therefore, if you are on a tight budget, buying a used car may get you the most vehicle for the money and the advantage of the used-car price may also allow you to step up to a nicer model. Although used vehicles typically don’t carry the same warranties as new ones, the original factory warranty is often transferable to a second owner. Purchasing a used vehicle may also translate into lower insurance premiums and personal property taxes. For some people, buying used may not be an option, it may simply be all they can afford, but there are some exceptions.

• Do you have a down payment or a Trade-In with Equity?

• Should you, rather than someone else, take the New-Car Depreciation hit?

• Can you afford to maintain and repair a used vehicle?

• How do you feel about lengthy financial obligations?

Once you have determined that it is time to replace your current vehicle, the next question to ask yourself is: whether to buy new or used. Individuals have different means and length of ownership based on a variety of incomes, needs and lifestyles. Individuals should examine their financial requirements when considering replacing a new or used vehicle. There are many new and used car dealers that have dependable vehicles to meet your needs either way.

Image: OlegErin/iStock.

from Wallet HubWallet Hub


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The Ink Business PreferredSM Credit Card from Chase is a small business card with a generous rewards program that rewards spending in certain common business categories, including travel, communications, digital advertising, and shipping. Though its $95 annual fee isn’t waived during the first year, it has a juicy sign-up bonus offer that’s worth up to $1,000 upon at…

Chase Ink Business Preferred℠ Credit Card Review – Sign-up Bonus: 80k Points is a post from the Money Crashers personal finance blog.

from Money Crashers


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