12 Things to Do When You Get a Raise at Work

Getting a raise always feels great. It’s tangible proof that you’re good at what you do and your hard work has been recognized.

But what should you do with the extra income? While most of us can’t help but daydream about all the new things we plan to buy, it’s important to take a close look at your personal finances before going on a spending spree.

That way, you’ll have a clear idea of how much your pay raise actually amounts to, what your financial priorities are, and how to make smarter investments and purchases with your additional income.

How to Handle a Salary Increase

When you first get a raise, it’s tempting to make a big, celebratory purchase. But before you do, there are some steps you should take to ensure you’re making decisions that reinforce your financial stability and improve your financial future.

1. Give It Some Time

Initially, the dollar amount of your raise might sound like a significant windfall, but remember that a considerable portion will go toward taxes, health insurance, retirement, and social security, if applicable.

Before you get ahead of yourself, wait for a couple of paychecks to see how much extra take-home cash your raise amounts to on a biweekly or monthly basis. What sounds good on paper may be significantly less in your pocket after all is said and done.

You can also calculate the biweekly amount of your raise yourself, but it won’t be accurate unless you know the amounts of any relevant deductions.

Waiting it out will give you a chance to see real numbers and how much of a difference it’s actually making on each paycheck. This will allow you to determine what any extra money amounts to so that you can spend it wisely instead of overspending or accidentally increasing your monthly expenses.

2. Reassess Your Budget

Once you know how much your new salary increase will put in your bank account, use it as an opportunity to reevaluate your budget. Now’s a great time to review your expenses to determine where any adjustments can be made and how your raise can do the most good.

For example, you may want to allocate a portion of your salary increase to paying off credit card or student loan debt instead of booking an expensive vacation. Or, you may use the extra cash to bolster your rainy day fund.

It’s easy to fall victim to lifestyle creep after a pay increase by indulging in luxuries and not keeping a close eye on your spending habits. Budgeting helps to keep you in check and supports your financial goals.

Instead of increasing your spending on big-ticket upgrades to your lifestyle each time you get a raise, consider how higher bills will affect your financial health. How would buying a bigger home or a new car affect your retirement plans and how much debt you have?

Use your budget to keep an eye on your cost of living so you don’t accidentally overspend after a new raise.

3. Retool Your Retirement

Especially if you aren’t hard up for cash right now, you can use your salary increase to boost your retirement savings.

For example, you can increase the amount you put into your Roth IRA or 401k retirement accounts. Even a small monthly increase can make a significant impact over time, especially if your employer offers contribution matching.

Not only will investing more in your retirement give you long-term financial security, but it will also make sure your raise is put to good use.

4. Pay Off Debts

If you have debts, entering a new salary range is an ideal way to put more money toward paying them off. For example, you can use your pay increase to cover:

  • Credit card debt
  • Student loans
  • Car loans
  • Medical debt
  • Personal loans

The more debt you pay off, the more you save in interest charges over time, keeping a significant amount of money in your pocket. If possible, save the most by paying off debts entirely instead of just making payments.

You can even improve your credit score by paying off debts, helping your financial situation even more, especially if you plan to make any big purchases, such as a home, in the future.

5. Plan for Taxes

When you get a raise, you can expect to pay more in taxes this year than you did last year. Depending on which tax bracket you’re in, you may even find that your raise is barely noticeable if it means you no longer qualify for certain deductions or tax credits.

Understanding how your new salary will affect your taxes gives you an idea of whether you should expect a refund or a bill.

If you aren’t comfortable calculating or assessing your taxes yourself, get in touch with an accountant or financial planner. They’ll be able to give you a good idea of what to expect come tax time based on your pay increase.

If it looks like you’ll owe more money at the end of the year than you anticipated, talk to your employer about increasing your withholdings so the amount you owe is covered.

6. Increase Charitable Donations

Another way to spend your raise is to increase your donations to charities and nonprofit organizations. Not only will it spread the wealth, but charitable donations typically count as tax deductions, potentially reducing the amount you owe each year.

This is especially useful if your raise bumped you into a higher tax bracket.

You can either choose to donate a specific dollar amount or a percentage of your income, whichever works best for your budget. You can also donate items like a used car, however, you’ll need a tax receipt in order to claim it on your taxes.

7. Add to Your Emergency Fund

Your emergency or rainy day fund is meant to lend a hand when your financial situation changes or you need to make an unexpected purchase. For example, it’s helpful to have a buffer of cash set aside if you lose a job or your fridge decides to stop working.

If you don’t have any pressing purchases to make with your new raise, it’s an ideal time to fill up your emergency fund. Having funds you can rely on in the future will give you peace of mind and save you from having to panic about how to cover an expense during a stressful situation.

8. Monitor Your Spending

It’s completely acceptable to celebrate when you get a raise, but it’s important to keep your spending in check. A nice dinner or night out is one thing, but extended overspending and unaffordable purchases are another.

If you do decide to treat yourself — and you should — make sure whatever you reward yourself with is within your spending limits and that it’s a one-time occurrence. Otherwise, you’ll soon fall victim to lifestyle creep and those luxuries will become the norm.

Choose one or two ways to treat yourself and stop there. Just because you’re making more money doesn’t mean you need to spend your entire raise on frivolous items and outings.

9. Consider Inflation

If you haven’t had a raise in a while, you can safely assume that part of your salary increase will go toward covering the costs of inflation. That means that instead of adding up to extra cash in your pocket, your raise will go toward rising prices for everyday expenses like housing and groceries.

Before spending your raise, take a look at the inflation rate to see how much prices have increased since the last time you received a pay bump. This will give you a better understanding of how much added buying power your raise amounts to and what it will mean for your budget and financial planning.

10. Save for a Big Purchase

If you’re planning to make a big purchase in the near future, use your raise to help get you closer to your goal. For example, put it toward:

  • A down payment on a house
  • A wedding
  • A new vehicle
  • A dream vacation
  • Your child’s tuition
  • A home renovation

Consider whether you have any major expenses coming up before spending your raise elsewhere. Setting aside your extra cash to cover upcoming costs will allow you to reach your goals faster and help you to navigate any unexpected costs you encounter.

11. Invest in Yourself

Investing in yourself is an excellent way to use your raise. For example, you could:

You can even do something like get laser eye surgery or have an old tattoo removed. Whatever helps to improve your personal quality of life and makes your future happier and healthier.

12. Do Something Fun

At the end of the day, you earned a raise through your hard work and dedication. You deserve to acknowledge your accomplishment by treating yourself to something special. Whether it’s a new pair of shoes or a fancy dinner, make sure at least a small portion of your raise goes toward celebrating your success.

Depending on how big your raise is and what you have left after you take care of any financial priorities, you could:

  • Go on a vacation
  • Plan a spa day
  • Buy yourself something nice
  • Treat a loved one
  • Fund a hobby

Take this as an opportunity to recognize your professional achievements and reward yourself for a job well done.


Final Word

Moving up on the pay scale is always worth celebrating, whether it comes with new responsibilities or not. But before you spend all your new money, take some time to consider how to get the most out of it.

That could mean reviewing your budget, paying off debts, or saving up for a big purchase — whatever suits your financial goals and situation.

Regardless of how you choose to spend your raise, remember to set some money aside to treat yourself. After all the time and effort you put into your career, you deserve to celebrate your accomplishments.

Source: moneycrashers.com

4 Best Coupon Matchup Sites for Groceries – Our Real-World Test

Every time I read a blog about extreme couponing, I’m in awe at the author’s grocery shopping skills. By stacking (combining) coupons with sales, these super-shoppers save over 50% on every product they buy. But when I try to copy their strategies, I just can’t find that many deals — even after hours of cross-checking coupon inserts against my local supermarkets’ sale flyers.

But there are couponing sites that promise to make it easier to save money with stacking deals. Their staff members do the work of matching sales with coupons so you don’t have to. But can these sites really find the kinds of deals you can’t unearth on your own?

To find out, I did a head-to-head test to see which coupon sites could find the best savings on a basket of groceries at local supermarkets. Comparison points included features, accuracy, and ease of use to discover which coupon matchup site is the best of the bunch.

Pro Tip: Before you head to the grocery store, download the Fetch Rewards app. With Fetch Rewards, you can scan your grocery receipts and earn points you can redeem for gift cards to your favorite stores. For more information, see our Fetch Rewards review.

Best Coupon Matchup Sites Test

To be included in the test, sites had to be able to do all of the following:

  • Find Stacking Deals. Each of these sites does one particular thing: match grocery coupons with sales. There are no other sites related to couponing, including coupon-clipping services, price-comparison sites, and printable coupon sites like Coupons.com.
  • Search Multiple Stores. Coupon matchup sites are the most valuable when they can find the best deals across all the supermarkets in a given area. So sites that focus on one particular store, such as I Heart Publix, didn’t make the cut.
  • Include Stores in My Area. I wanted to be able to check out the deals I found personally, comparing them to the store flyers and, if possible, to the prices in the store itself. Since I live in the northeast, I had to rule out the popular Southern Savers, which specifically looks for deals in the southern United States.
  • Are Still in Business. Surprisingly, one of the best-known coupon matchup sites, The Grocery Game, shut down in 2016. However, posts on social media complaining about this site’s disappearance led to the discovery of a couple of other sites that do the same job.

After some fairly extensive searching, four sites met all the criteria. To conduct the test, I visited each site and searched for stacking deals on five items I regularly buy: breakfast cereal, orange juice, canned soup, my favorite conditioner, and oxygen bleach. Note that coupons for fresh foods, such as produce or eggs, are rare.

I checked each site’s deals against my piles of supermarket sale flyers and coupon inserts to ensure they were legitimate. Then I rated each site on a 5-point scale for three factors:

  • How easy it was to search
  • How accurate its deals were
  • How much savings they offered

Finally, I averaged these scores to come up with a total score. So, which coupon matchup site came out on top?

1. CouponMom.com

There’s a lot going on at CouponMom.com. This free site has an extensive database of printable coupons from various sources and multiple tools to search for stacking deals. You can look for grocery, drugstore, state-specific, store-specific, and product-specific deals.

Ease of Use

The landing page for CouponMom.com is pretty cluttered, with moving ads, pointers to specific deals, and search boxes. Amid all this chaos, it’s hard to figure out where to go first. Since I was looking for five particular products, I started with the box labeled “Search Deals,” where you can search for a product by name.

I typed in the first item on my list, cereal, and got a list of dozens of cereal deals at different stores nationwide. But when I started clicking to see details, I found that most of these were cash-back deals from Ibotta. There was no clear way to weed these out and see only deals that required nothing but the store loyalty card and a coupon.

So instead, I went to “grocery deals by state,” selected “New Jersey,” and clicked the deal pages for specific stores in my area. I had to sign in to an account to view those, but setting one up was free and took only a few seconds.

The links for Aldi and Stop & Shop did nothing but display my local stores’ sale flyers. But the page for ShopRite was much better. It presented a list of products with columns for the sale price, how many I’d have to buy, available coupons and rebates, final price, and percentage saved.

The column showing the available manufacturer coupons used a somewhat confusing shorthand. The site provided a key for some of the abbreviations, such as “S” for SmartSource and “RP” for Red Plum, but it didn’t explain others, such as “SV.” On the plus side, CouponMom.com provided direct links to all the printable online coupons it found, which was handy.

I was then able to sort the list using a keyword box at the top. I entered each of the products from my shopping list in turn to see available deals. That part was easy, but it didn’t make up for the inconvenience of only being able to view actual deals for one store.

Ease-of-Use Score: 2 out of 5

Accuracy

When I checked the sale prices CouponMom.com listed against the store circulars, they were mostly correct. But one of the four wasn’t in the flyer. The only way to check its accuracy would be to make a trip to the store, an extra step coupon matchup sites are supposed to help you avoid.

As for the accuracy of the coupons themselves, there was only one to check. It was right in the SmartSource flyer where CouponMom.com said it would be, but getting a single coupon right isn’t much of a test. So this site loses one point on accuracy for giving me so little to work with.

Accuracy Score: 4 out of 5

Value

CouponMom.com could only find deals on one of my five test products (cereal) and only at one store. Moreover, one of the four deals it found wasn’t a stacking deal, just a sale price I could have found on my own by leafing through the store flyer. Two of the others were Ibotta deals, leaving only one that was useful.

That deal was $3.89 each for two family-size (16.9- to 19.1-ounce) boxes of Kellogg’s Special K cereal. Combined with a printable coupon for $1 off two, that yields a purchase price of $3.36. That works out to a unit price between $0.18 and $0.20 per ounce, much more than I typically pay by shopping sales and buying store brands.

To me, that doesn’t look much like extreme couponing. At best, it’s mild to moderate couponing.

Value Score: 1 out of 5

Overall Score: 2.3 out of 5


2. GrocerySmarts.com

Like CouponMom.com, GrocerySmarts.com has two primary features: printable coupons and searchable deals. For some reason, it sorts its coupons into four groups, with different brands in each group. Fortunately, the site helps by providing a list of the latest coupons from the past 10 days or so and telling you where to click to find each one.

Ease of Use

Searching for deals at GrocerySmarts.com was pretty simple. First, I clicked on the drop-down menu at the top of the page and asked to see deals in New Jersey. The site then displayed a second drop-down menu with a list of stores to choose from.

Unfortunately, this list didn’t include any of the supermarkets where I usually shop. The only stores on the list were CVS, Walgreens, and Walmart. Also, I had to view deals from each of these stores separately rather than looking at them all on one page. That cost the site 1 point on its ease-of-use rating.

On each store’s page, I used the search feature on my browser to look for the merchandise on my list. But I ran into a snag. It lists some cereals, such as Cheerios, by brand name only and doesn’t include the word “cereal.” I had to scan the whole list to ensure I was seeing all the cereal deals.

GrocerySmarts.com presents its deals for each store in one long list. There’s one column for the product, one for the sale price, one for the applicable coupon (if any), and one for the final price. Instead of showing the savings percentage, GrocerySmarts.com simply rates each deal as 3 stars, 4 stars, extreme, or free.

The list also tells you where to find the coupons you need for a given deal. If there’s a printable coupon, the site includes a link to it. It also shows which goods qualify for Ibotta deals and provides links to those.

If the coupon is in a newspaper insert, the site identifies the insert with an abbreviation similar to the ones used on CouponMom.com and the date. If there’s more than one available coupon for the same product, the site lists it multiple times.

To use the site to create a shopping list for a given store, click the Start button at the top of the page. Click to highlight the specific deals you want, then click on Shrink to hide all the lines you didn’t select. You can click the star at the top to quickly highlight all extreme and free deals. There’s also a field at the bottom to jot notes on your shopping list before printing it.

Ease-of-Use Score: 4 out of 5

Accuracy

Like CouponMom.com, GrocerySmarts.com couldn’t find deals on anything but cereal, and most of them were Ibotta rebates. The only deal that I could use was at CVS. It relied on a SmartSource coupon for $1.25 off three boxes of Life, Cap’n Crunch, or Quaker Oatmeal Squares. This coupon was correctly labeled and identified.

But the site’s description of the sale wasn’t quite accurate. It said the only brand on sale at CVS was Cap’n Crunch at $1.99 a box. But when I checked the CVS sale flyer, I found it applied to Life and Quaker Oatmeal Squares as well.

If I’d simply relied on GrocerySmarts.com for my info, I might have rejected this deal altogether since Cap’n Crunch isn’t a cereal we like.

So even though the sale price, coupon, and math were all accurate, this site loses a point for its inaccurate description. And it loses a second point for giving me so little to go on in the first place.

Accuracy Score: 3 out of 5

Value

I docked GrocerySmarts.com 3 points for value because it could only find deals on one of the five products on my list. Also, because it searches so few stores, the deals it did find weren’t at the stores where I usually shop.

The final cereal price it found was $1.57 per box for three 12.5- to 14-ounce boxes. That works out to between $0.11 and $0.13 per ounce. It’s a better price than CouponMom.com’s but no better than the usual price for the store brand. That cost the site one more point on value, resulting in a weak final score.

Value Score: 1 out of 5

Overall Score: 2.7 out of 5


3. The Krazy Coupon Lady

When you visit The Krazy Coupon Lady (KCL), you see updates on the latest hot deals at all kinds of stores. In addition to supermarkets and drugstores, this site covers department stores, restaurants, specialty stores, and even online deals at Amazon.

KCL provides lots of details about these featured deals, including photos and a couple of paragraphs of text. From the main page, you can also link to coupons and deals sorted by brand or store. Under “Couponing Resources” at the bottom, there are general guides to couponing and guides for specific stores.

Ease of Use

The primary way to search for deals on KCL is by store. You select a specific store from the main page, then click on the weekly coupon deals box (the first available box on the page under the app banner) to see a list of the latest deals from that store. You can then use your browser’s page search feature (control or command plus F) to look for individual products you want.

But weekly deals aren’t available for all stores. For instance, when I clicked on Stop & Shop, the last update was over two months old. The page for Trader Joe’s simply said, “There are currently no active deals.” (Since then, both these stores have disappeared from the site entirely.) And the page for Rite Aid showed one recent deal but no weekly list. I docked the site one point for this.

The weekly deals list includes details about each offer. It shows the sale price and provides links to printable coupons, downloadable store coupons, and Ibotta deals. A few of its deals also include manufacturer coupons from SmartSource, which are marked with the abbreviation “SS.” I couldn’t find any deals using coupons from Red Plum.

The site includes check boxes next to each listed item. You can click these boxes to add a product to your shopping list, but it’s not immediately obvious where that list is stored. I eventually found out you have to click your profile picture in the top right corner to access it.

But there’s a notification on the site saying this feature will soon be available only in the KCL app. That takes a lot of the functionality out of the website, costing it one more point.

Ease-of-Use Score: 3 out of 5

Accuracy

After checking KCL’s pages for all my local stores, I couldn’t find a single deal on any of the products on my grocery list. So to test the site’s accuracy, I simply searched for the “SS” abbreviation and checked the coupons it listed against my SmartSource insert.

Some of the coupons KCL identified were real. It correctly located manufacturer coupons for Eggland’s Best eggs in the May 2 insert and Nivea lotion in the May 16 insert. But it also cited two other coupons in the May 16 insert that I couldn’t find.

In short, KCL got only two out of four manufacturer coupons right, for an accuracy rate of just 50%. But when I checked some of its links to digital store coupons on the ShopRite site, they were all accurate. That bumped its score up from 2.5 points to 3.

Accuracy Score: 3 out of 5

Value

This one was an easy call. KCL didn’t find me a single deal I could use — not even those other sites identified. That makes it a dead loss as far as value is concerned, so it earned no points.

Value Score: 0 out of 5

Overall Score: 2 out of 5


4. Living Rich With Coupons

Like KCL, Living Rich With Coupons (LRWC) displays a long list of recent deals on its main page. It includes offers from a wide variety of stores, including supermarkets, department stores, and online retailers. There are links at the top of the page for categories including coupons, online deals, and stores.

Ease of Use

This site allows you to search for deals in several ways. If you click the Filter by State drop-down on the landing page and select the name of your state, LRWC filters its long list of deals to include only those available in your area. But this option is only available for nine states: California, Connecticut, Florida, Maryland, New Jersey, New York, Pennsylvania, Texas, and Virginia.

Alternatively, you can also click on Stores in the main navigation and select a store to see a list of that store’s weekly sale prices, including coupons you can stack with them. The site has deals for national big-box stores Target and Walmart, warehouse stores Costco and BJ’s, dollar stores, drugstores, and regional grocery chains like ShopRite and Kroger.

To find deals on a specific product, such as cereal, you can click on the site’s Grocery Price Comparison Tool and enter the product name in the search box. The site pulls up a list of all the stores that have deals on that item, and you click on the names of the stores you want to search.

LRWC then presents you with a list of all the stacking deals on that product sorted by the stores you selected. For every sale, it includes a lengthy list of all possible coupons that could stack with it. The site provides direct links to printable online coupons. For coupons inserts, it lists the flyer, the date, and the coupon’s expiration date, a handy feature most coupon sites don’t have.

But I noticed one odd quirk in LRWC’s list. It didn’t provide the actual sale prices for every store in its list. For instance, it said CVS had a BOGO (buy-one, get-one-free) deal on raisin bran, but it didn’t say what the regular price was.

Even when it did list the sale price, LRWC didn’t always crunch the numbers to tell you what the purchase price was after stacking the sale with a coupon. These problems cost the site 1 point for ease of use.

When you click an item in the Grocery Price Comparison Tool, the site adds it to your saved shopping list, shown on the right side of the screen. Clicking the print or email icon pulls the list up in a separate window. For each deal on the list, LRWC shows the store, the product, the sale price, how many you must buy to get that price, and all possible coupons to pair with the sale.

You can edit the list before printing or emailing it to yourself. You can remove items you don’t want to see, such as coupons you don’t intend to use, or change the quantity of a product you want to buy. You can also manually add goods you didn’t find deals on, with or without custom notes.

Ease-of-Use Score: 4 out of 5

Accuracy

LRWC found deals for all five of the products on my shopping list. Its best cereal deal was from Stop & Shop: Kellogg’s cereals for $1.50 per box, which could stack with any of nine different coupons.

However, there was a problem with the deal. According to the Stop & Shop sale flyer, the price was only good for three days, Friday through Sunday. By the time I ran my test, it had already expired. LRWC neglected to mention that detail, costing it one point for accuracy.

LWRC also listed sales on Kellogg’s cereal at several other stores. But for some reason, it didn’t match them with the same list of coupons it had found for Stop & Shop, even though they would clearly work. This oversight cost it one more point.

In a few cases, LWRC found deals I couldn’t verify. Some were allegedly “unadvertised” sales, so I had no way of checking them without going to the store. I didn’t add or take off points for these.

However, other deals were clearly wrong. For instance, LWRC claimed ShopRite was selling Campbell’s Slow Kettle Soups for $1.99, but that price was not in the sale flyer. That could have been the regular price, but LWRC also paired it with a digital store coupon I couldn’t find on the store site. That cost it another point.

All the other sale prices LRWC found seemed to be accurate. But while checking them, I noticed there were other deals it missed. For instance, it said I could buy Florida’s Natural orange juice for $2.99 at ShopRite, then add a coupon for $0.98 off two to bring the price down to $2.50. But it didn’t notice the same store had larger cartons of Minute Maid OJ for just $1.88.

Also, in some cases, LRWC’s math was wrong. For instance, it said a sale of $1.88 per box on Quaker cereals paired with a coupon for $1.25 off three boxes would yield a purchase price “as low as $1.55 each.” In fact, the purchase price with this coupon is $1.46 per box. I knocked off one more point for this.

As for the coupons, all the printable ones I checked seemed to work. The one coupon that came from SmartSource was also accurate. A few were from a flyer labeled only as “Save,” an abbreviation I couldn’t identify, so I don’t know whether these coupons were accurate or not.

Accuracy Score: 1 out of 5

Value

Of all the sites I tested, LRWC was the only one to find deals for all the items on my list. Unfortunately, not all the deals it found were legit, and it missed some that were.

For instance, if LRWC had paired the $1.88-per-box sale on cereal at Walgreens with the $1-off-two coupon it found at Stop & Shop, it could have given me a purchase price of $1.38 per box. Since the sale covered boxes up to 13.7 ounces, that would have come to a great price of around $0.10 per ounce. But LRWC missed that deal, so it gets no credit for it.

The prices it actually found were:

  • Cereal: $1.46 per 11.5- to 14.5-ounce box ($0.10 to $0.13 per ounce)
  • Orange Juice: $2.50 per 52-ounce carton ($0.05 per ounce); missed a better deal of $1.88 for 59 ounces ($0.03 per ounce)
  • Oxygen Bleach: $4.99 for a 48-ounce container ($0.10 per ounce)

Out of the five sites I tested, LWRC found me the best price on cereal. Its price for oxygen bleach is also pretty good. However, its OJ deal is lackluster, and it missed a better one I could have found just by checking the sale flyer.

Value Score: 3 out of 5

Overall Score: 2.7 out of 5


Final Word

Of the four sites tested, GrocerySmarts.com and Living Rich With Coupons tied for the best overall score. Both were easy to use, but GrocerySmarts.com was more accurate, while LWRC found better deals overall.

But neither of these sites was the perfect coupon-stacking resource I was hoping to find. In most cases, the stacking deals they uncovered were no better than the prices I usually get on my own without coupons.

Of course, what works for me isn’t necessarily what will work for you. If your local stores have better sales than mine or if you regularly buy more products you can find coupons for, these coupon sites could save you some significant money. Just double-check all the deals you find to make sure they’re legit.

Speaking for myself, I think I’ll stick to other methods for saving money on groceries. Between my grocery price book, store loyalty cards, and buying store brands (especially at discount stores like Aldi), I think I can find prices good enough to give the extreme couponers a run for their money.

Source: moneycrashers.com

5 Reasons You Should Not Delay Retirement

Grandfather reading to his granddaughter
LightField Studios / Shutterstock.com

Some people view retirement as something that should be delayed as long as possible. They say that, for many older workers, waiting as long as possible to collect Social Security benefits is the prudent choice.

Important as this advice is for many of us, it may not apply to you. If you are financially prepared, there are good reasons to consider retiring at the traditional age of 65, or maybe even sooner.

“Time is the most valuable asset anyone can ever have,” Mike Kern, a certified public accountant based in South Carolina, tells Money Talks News. “I would encourage anyone who has the ability and wants to retire early to do so.”

There is plenty to see, do and learn in retirement. Many retirees go on to pursue new careers or fulfill lifetime goals they didn’t have time for when they were working. Freed from the burden of a 9-to-5 job, they find that life has many new possibilities.

What follows are powerful reasons not to delay your retirement.

1. Delaying Social Security may not be right for you

Before deciding, consider your personal circumstances, advises Money Talks News founder Stacy Johnson:

“For some people it’s a great idea to take Social Security early, and for some people it’s a great idea to wait.”

You generally can start receiving Social Security as soon as age 62. Some people wait as late as age 70. If you plan to continue working until your benefits reach their maximum at age 70, delaying your claim will result in greater monthly payouts. However, if you have concerns about how long you may live or you need the money right away, filing an early claim may make the most sense.

Good to know: The system is actuarially neutral, designed to make your overall benefits work out approximately the same over the course of your retirement, no matter when you first claim them. Delaying your first claim increases your monthly retirement benefit, but it may not affect the total amount you receive over a lifetime.

2. Retirement can lower your housing costs

When you retire, you no longer need to live close to a job. Where you decide to live in retirement can affect your quality of life, due in part to the price of real estate and rental homes.

“Your house is typically the biggest expense in your budget,” says Kern. “Oftentimes, the best way to considerably decrease your costs is by downsizing or moving to a cheaper place.”

Smaller towns generally have less-expensive housing than large metropolitan areas. For example, in early February, the median home value in Boise, Idaho — a community of about 229,000 residents — was $406,579, according to Zillow.

Sound expensive? Well, compare that to San Francisco. Zillow says Frisco’s median home value in early February was $1,402,470.

3. Your good health may not last

Nobody lives forever. If you don’t get started on your post-retirement goals in a timely manner, you may never reach them.

“As grim as it sounds, if your health is on the decline, then it may make sense to take an early retirement in order to maximize the net payout of your lifetime,” says attorney Jacob Dayan, CEO of Chicago-based tax services company Community Tax.

Consider, too, that you may experience health problems as you age. If your retirement goals require being in good physical shape so that you can hike the Inca Trail in Peru or bicycle through Ireland, it makes sense to retire sooner.

4. You want to start a new career

Retiring allows you to pursue your true passions. Some retirees use their savings and pension benefits to finance the start of another career.

You can’t claim Social Security retirement benefits until age 62, but if you’ve invested in a retirement plan or qualify for a pension, you may be able to use part of those funds to launch a new career.

Dayan advises careful planning and consideration before making a change. If retiring early and starting a new career requires a substantial financial investment, consider all the risks, including tapping your retirement funds. Make sure the switch won’t put you in financial distress.

5. You can afford to do it

Money doesn’t buy happiness, but, with careful planning, an adequate retirement account may allow you to quit your job. If you no longer feel fulfilled at work and can afford it, it may be time to make the transition. A few things to consider:

  • When you’re starting out in your career, it’s easy to become obsessed with getting ahead. At some point, though, you reach your goal. You deserve a reward for your hard work.
  • If you have loved ones who need your help, and you can afford to stop working, retiring frees you to help them with their day-to-day activities.
  • Retirement offers you time to grow, cultivate new interests, pursue hobbies and spend time with loved ones. It frees you to do the things that matter most.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

Does homeowners insurance cover water damage? It Depends

This is one of the first questions homeowners ask — or should ask — when they are shopping for insurance for their home:

“Does homeowners insurance cover water damage?”

The answer they are given is “it depends,” and such is the way with understanding what homeowners insurance covers and what it does not. Read this story to learn what insurance protects in general.

You pay for homeowners insurance because you must in order to get a mortgage, and you hope you never need to use it. But a variety of ills — natural or human made — can put you in a position to make a claim of loss or damage to property. You hope the coverage you have paid for all of these years will extend to the situation you are dealing with, but you just never know.

Again, It depends.

Below, you can find what to do when you need to contact your insurance company because you have suffered property loss or your home is damaged. Then you will find out what to do when your claim is denied.

But, first, let’s look at all the ways your home can be damaged by water, and the chances that your homeowners insurance will cover your loss in that event.

Does Homeowners Insurance Cover Water Damage?

The answer to the question “does homeowners insurance cover water damage?” is multileveled, just as the water damage might be.

In general, water damage caused by accident or mechanical failure of an appliance (washing machine, dishwasher, water heater, etc.) is going to be covered by standard policies. The same is true of a toilet that suffers a sudden leak.

But, if the water damage is a result of poor maintenance, such as broken pipes, mold or rotting pipes or water lines, the claim is likely to be denied.

Coverage for water damage is separated into dwelling damage and personal property damage, What is not covered is replacement of the appliance or machinery that caused the water damage. If your dishwasher develops a sudden leak which causes damage to your home, the structural damage and personal property damage likely will be covered but the cost of replacing the dishwasher will not.

If your home suffers water damage from a backed-up sewer or drain, traditional homeowners insurance doesn’t cover such occurrences. Many companies offer water backup coverage, however.

Flood damage is rarely covered by a standard homeowners insurance policy. Flood insurance policies are available thanks to the National Flood Insurance Program (NFIP) , but it is pricey.

According to the National Flood Insurance Program, the average cost of flood insurance for 2021 is $958 annually. That comes out to about $80 a month. 

If you wonder “does homeowners insurance cover water damage?” check with your agent to determine just what is covered and what is not, and whether you need to consider extended water damage coverage due to current climate conditions or the age of your home.

Making a Claim with Insurance Company

If you have not yet been in a position to make a claim against your homeowner’s policy but know someone who has been denied and you worry about your own policy’s virtues, take time to consider your choices in company and coverage.

What follows is a simplified representation of what is involved in making a homeowners insurance claim for water damage, including the possibility of having your claim denied and what to do in that event.

Step One: Your Home or Property Suffers Water Damage

When your home suffers water damage, you need to determine the actual extent of damage, and if you can, how the damage was caused.

Then contact your insurance company to determine if the damage is covered by your policy. This response to this question is not cut and dried, but it is the starting point for recovering some of your losses.

Step Two: Take an Inventory of What Was Damaged

Take photos or video of water-damaged possessions, structure or property (actually, it would be wise to take a video of your pre-disastered home right now, so you can refer to post-disaster).

Attempt to determine the value of individual items that need to be replaced, and find receipts if you have them (which is actually easier these days since most purchases occur with some form of electronic transaction). If the damage is structural, that will create a need for damage assessment and estimates, but that will occur after the insurance company has agreed to pay up.

Step Three:  Meet with the Adjuster

The insurance company will assign you an adjuster, who will eventually come to your home and assess the damage.

Do not assume this person is out to prevent you from covering your damages, but remember that the adjuster is protecting the interests of the insurance company to prevent fraudulent claims.

The adjuster will require a list of lost or damaged items with an estimated value of those items, and will assess structural or property damage that will require estimates to determine repair costs. Putting together a list of the valuable contents of your home is another thing to do before disaster strikes.

How much homeowners insurance do you need? Our insurance checklist will guide you to make the right decision. 

Step Four: Get the Verdict

The adjuster will eventually call you with a detailed list of what the company is going to cover, the amount it will give you for your lost or damaged items, and what structural damage the company will pay to be repaired. You may or may not like the dollar figures the adjuster offers.

You may also be surprised to hear that the insurance company can deny your claim, in part or in whole. This is where the insurance company is covering its assets: it will present in written form why it is denying your coverage claim. This letter should provide a complete and specific explanation why your policy does not cover the losses you claim.

If your policy explicitly states certain items or losses are exempt from your coverage, that is the end of the conversation. However, if you believe your policy should cover the damage you suffered, speak to the agent who sold you the policy, if possible, or ask to have an in-person conversation with the adjuster to discuss the situation.

Proving that your policy should cover your losses will not be easy. However, if you have a different interpretation of the language in your policy than what the adjuster suggests, or you have notes from your original conversation with your agent at the time you bought the policy, you can go on to the next step.

What’s God Got to Do With It?

Most standard homeowners insurance policies include an Act of God provision. From an insurance standpoint, an Act of God is damage that occurs as a result of natural causes with no human component, something that could not have been prevented by proper care or maintenance.

Earthquakes or floods are often considered an Act of God. Wildfires may also be considered an Act of God if started by lightning rather than humans (campfire gone bad, tossed cigarette and more).

Homeowner’s insurance policies spell out which Acts of God are covered. For instance, floods are Acts of God, although homeowners in flood plains or near coasts or lakefronts can purchase flood insurance at an additional cost.

Often, standard homeowners insurance policies do cover damage from high winds from natural events like hurricanes and tornadoes. If this is a possible factor in your claim, determine what your policy covers before going onto the next extensive and expensive step.

The increased occurrence of wildfires in the Pacific Northwest has made fire protection a must for homeowners in that area. But different companies provide different levels of coverage and full coverage can be expensive.

How to Fight a Denied Claim

You feel your insurance company is not fulfilling its legal promise to cover the cost of water damage to your home. You have documentation of your losses, a detailed description of the event that caused your damage (malfunctioning appliances or plumbing mishap), and you are in a position where it will behoove you financially to argue your case.

Pro Tip

In most cases, there is a limited time frame in which a denied insurance claim can be appealed, and the time frame begins from the moment you are notified of the denied claim.

Your homeowner’s insurance policy includes language stating how to appeal a denied claim. Getting involved in a battle with your insurance company may seem like a lost cause, but often, insurance companies can be convinced to adjust their decision to your benefit.

You might want to consider improving your chances by consulting a property insurance claims professional. These are licensed public insurance adjusters who can assess your claim from an objective viewpoint and will negotiate with our insurance company for you. Deciding on whether to hire a professional outside adjuster will be based on the cost of his or her service versus the amount of money you hope to recover.

The last step to recover funds would be to sue your insurance carrier, which would require hiring an attorney who specializes in property insurance claims. Get references and verifiable information on previous claims regarding water damage that were settled to the homeowner’s benefit.

Here’s hoping this helps and that you never need it.

Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder.

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Source: thepennyhoarder.com

12 Ways Retirees Can Earn Passive Income

A senior black man uses a smartphone
wavebreakmedia / Shutterstock.com

These days, “retired” doesn’t always mean “not working.”

According to a study of U.S. retirees from the nonprofit Transamerica Center for Retirement Studies (TCRS), “nine percent … are currently working for pay, including five percent who are employed part-time, two percent who are employed full-time, and two percent who are self-employed.”

More than half — 56% — of those surveyed said their top reason to keep working was “wanting the income.” The good news: You might be able to make some extra dollars via passive income — money that comes in without you doing much work, or any work at all.

Passive income is often synonymous with a large upfront investment, such as buying rental properties or dividend-producing stocks. But the following passive-income strategies can bring in extra bucks without investing a bunch of money or time.

1. Rent out a room in your home

Got an empty nest? Someone may be willing to pay to roost there.

You can advertise your spare space on your own or list it on a vacation rental website such as:

Yes, it takes some work: You might have to keep the room tidy and wash a load of sheets and towels once the guests depart. But in some parts of the country, you can earn enough money in just a few days to cover a mortgage payment, as we detail in “Do This a Few Days Each Month and Watch Your Mortgage Disappear.”

If you’re the gregarious type, you can have fun talking up your town or even showing visitors around. If not, advertise it as a “Here’s your key, we won’t bother you” arrangement. Some people simply want an inexpensive place to sleep and don’t care about sitting around chatting with the host.

2. Rent out your vehicle or gear

Your spare bedroom is just one of many things you could rent to others to bring in extra money.

Use your imagination. Maybe you have a ladder, stroller, surfboard, bicycle, boat, camera equipment or a great selection of power tools.

Peer-to-peer rental sites like the following will help you find folks who occasionally need such things but don’t want to own them:

Whatever you’re renting, keep in mind that ordinary insurance might not cover the commercial use of your property. An insurance rider may cover some items, but you may need a separate policy, so consult your insurance agent.

3. Become a peer-to-peer lender

What is peer-to-peer lending? In short, P2P lending sites such as Prosper accept loan applications from borrowers. Investors like you can put some of your money toward loans to those borrowers. When loans get paid back, so do you — with interest.

Overall, P2P investments “can provide solid returns that are really hard to beat,” according to Clark.com, the website of financial guru Clark Howard.

As with any loan, however, there’s the possibility of default. You may not earn anything or may even lose money.

Sound too complicated? Maybe this simpler form of P2P is for you: Worthy sells 36-month bonds for $10 each. The money that comes in is loaned to U.S. businesses, with lenders who have purchased these bonds getting a 5% annual rate of interest on their investment.

To learn more about Worthy bonds, check out “How to Earn 80 Times More on Your Savings.”

4. Get rewards for credit card spending

If you’re going to shop with plastic, make sure you’re rewarded.

The form that the reward takes is up to you. Some people covet airline miles. Others take their rewards as cash or a credit against their monthly statement.

The number of rewards credit cards — and their pros and cons — can be a little dizzying. For an easy way to compare your options, stop by our Solutions Center and check out travel rewards cards or cash-back cards in the Money Talks News credit card search tool.

5. Use cash-back apps

An app called Ibotta lets you earn cash rebates on purchases from retailers, restaurants or movie theaters.

Or you can do your online shopping through cash-back portals like:

These websites enable you to earn cash back on purchases from thousands of online retailers. To learn more about them, check out “3 Websites That Pay You for Shopping.”

6. Sell your photos

Smartphones have made decent photography possible for just about anyone. The next time you capture a killer sunset or an adorable kid-and-dog situation, don’t keep the image to yourself. Apps like Foap — which is available for Android and Apple devices — will help you sell it.

You can do even better if you have a good digital SLR camera, a tripod and other equipment. Stock photo companies like Shutterstock and iStockphoto, which favor high-definition, high-quality images, are venues for selling photos on just about any subject you can find.

7. Write an e-book

It’s possible to bring in cash without a high-powered book contract, thanks to self-publishing platforms.

Amazon’s Kindle Direct Publishing, for example, allows you to write, upload and sell your words fairly easily. My two personal finance books are for sale on Kindle, and they provide a steady stream of passive income.

I also sell PDFs of the books through my personal website. I use a payment platform called E-junkie to handle payments and deliver the book downloads — and this brings me more money per book than Amazon does, even when I offer readers a discount.

If you’re fond of a particular fiction genre, write the kind of stuff you’d like to read. Nonfiction sells, too: cookbooks, travel guides, history, memoirs and how-tos are a few examples. Or maybe you have a specific skill to teach — job-hunting or food preservation or raising chinchillas.

Pro tip: Fiverr.com is a good marketplace through which to find freelancers to hire for help with formatting, design and cover art.

8. Create an online course

If you’ve got useful knowledge, why not monetize it? Sites like Teachable and Thinkific will help you build a course that could change someone’s life, either professionally or personally.

Note that online courses are not limited to computer-based topics. A quick search turns up classes on:

  • Cake-making
  • Watercolors
  • Digital scrapbooking
  • Drone cinematography
  • Free-diving
  • Blacksmithing
  • Yoga
  • Parenting
  • Novel writing
  • Job hunting
  • Building a pet-care business

And that’s just for starters. Like writing an e-book, creating a course will take some work. But again: Once it’s up, the work is done.

9. Join rewards programs

Rewards sites like Swagbucks reward you with points for activities such as searching the internet, watching short videos and taking surveys. You can cash in your points for gift cards or PayPal cash.

Maybe you didn’t retire to spend hours taking surveys. But if you’re going to search the internet anyway, why not use Swagbucks’ search engine and earn some points?

To learn more about Swagbucks, check out “6 Ways to Score Free Gift Cards and Cash in 1 Place.”

10. Wrap your car with advertising

Turn your vehicle into a rolling billboard with companies like Carvertise. They’ll pay you for the privilege of putting removable advertising decals for a business on your automobile.

Writer Kat Tretina describes the process at Student Loan Hero. You can expect to earn $100 to $400 a month, depending on how much and where you drive, she says. Requirements include having a good driving record and a vehicle that has its factory paint job.

Pro tip: Car-advertising scams make the rounds regularly. Tretina offers these tips to avoid being victimized:

  • Legitimate companies don’t charge an application fee, and they’ll have a customer service phone line that lets you talk with a real person.
  • The car-wrapping cost should be covered by the company.
  • Take a hard pass on any company that doesn’t ask questions about your driving record, auto insurance, driving routes and type of vehicle.

11. Create an app

Maybe yours is one of those minds that says, “There should be an easier way to do (whatever) — and I think I know what it is!” If so, creating an app could bring in extra income.

It could also bring in zero dollars. But nothing ventured, nothing gained, right?

For example, personal finance writer Jackie Beck — who cleared $147,000 of debt — used her expertise to create an app called “Pay Off Debt.”

Not a coder? App-builder services exist. The WikiHow.com article “How to Create a Mobile App” tells how to get started. It’s a time-consuming process. But that’s one of the beauties of retirement: You set your own hours.

12. Become a package ‘receiver’

OK, this idea is unproven — so far. But it’s a solution whose time has come. The boom in online shopping has been a boon for thieves who find it easy to swipe packages left outside front doors before the intended recipients get home from work.

You might be able to do your part to thwart those lowdown thieves by marketing yourself as a “professional package receiver.”

Try this: Put the word out — through friends, social media, places of worship — that you are available to accept deliveries. If a package is for someone in your neighborhood, you could watch the shipping company’s tracking info and be at the home to take the package in. Or you could specify that packages be shipped to Original Recipient, c/o Professional Package Receiver — that’s you.

Before asking a fee of, for example, $1 per package, ask the person who wants to hire you what it’s worth to them. You might be surprised by a response like, “I’ll give you $5.” Decide, too, whether you’ll be charging per package or per order, and whether you’ll set a weight limit, such as no packages over 30 pounds.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

8 Ways to Save Money on a Bathroom Remodel or Renovation

Remodeling a bathroom is one of the costliest home improvement projects. According to HomeAdvisor, the average bathroom remodel costs around $10,911 as of April 2020. A high-end remodel for a large or master bathroom could run you $25,000 or more.

But if those numbers are too much for your budget, that doesn’t mean you have to live with your dingy, dated bathroom forever. There are ways to refresh a bathroom for considerably less. According to This Old House, homeowners have redone their bathrooms for $6,000, $4,000, $2,000, and even less than $1,000.

I also know from personal experience it’s possible to renovate a bathroom on a budget. In 2011, my husband and I redid our guest bath for less than $900, including a new sink, toilet, vanity, faucets, light fixtures, floor tiles, paint, and accessories. With a bit of ingenuity and effort, other homeowners can do the same.

Ways to Save on a Bathroom Remodel

Our budget bath remodel and those featured on sites like This Old House and Apartment Therapy all have one thing in common: The homeowners looked for ways to save money anywhere they could. We didn’t necessarily use the same techniques, but we all relied on numerous money-saving strategies to get the job done for less.

The tips that helped us and other homeowners save money on our bathroom renovations fall into several major categories.

1. Plan Ahead

During any remodeling project, one of the costliest things you can do is change your plans halfway through. At best, it delays the project while you return materials and buy new ones. At worst, it requires you to pay contractors to redo work they’ve already done.

Sometimes, in-progress changes are unavoidable, such as when you cut into a wall and discover a leak. But in most cases, you can avoid them by thinking things through carefully before anyone picks up a tool. It’s much cheaper to know in advance you don’t want the toilet to be the first thing guests see when they open the door than figure it out once you’ve already installed it.

That’s why the first step in any bathroom remodel is planning. Before you buy anything or hire anyone, think about what you want from your new bathroom. What is it about the room that doesn’t work for you now, and how can you fix it? List everything you want your remodeled bath to have, and then sort that list into must-haves and nice-to-haves.

Take your time figuring out your wants and needs. If you can’t figure out the best way to accomplish all your goals, you can hire a bathroom designer for a consultation. According to Hunker, this service typically costs $200 to $400, and it can help you avoid mistakes that cost money to fix later.

In addition to thinking about the layout, spend time comparing options for visual elements like tile, plumbing fixtures, and light fixtures. That way, when you’re finally ready to get started, you know exactly where to shop to find what you want at the best price. Buying in a hurry often means paying extra or settling for something that isn’t ideal.

2. Keep the Footprint Unchanged

One of the best ways to save on a bathroom remodel is not to remodel at all. People often use the terms bathroom remodeling and bathroom renovation interchangeably, but they’re not the same thing.

A remodeling job involves making significant changes to the room’s footprint, or its size, shape, and structure. It can include making changes to any or all of these:

  • The room’s foundation
  • Walls, especially load-bearing walls
  • Plumbing lines
  • Locations of plumbing fixtures, such as the sink and toilet
  • Electrical wiring

Renovation means freshening up the bathroom’s look — tile, wall color, flooring, lighting — while leaving its basic layout unchanged.

Changing the footprint adds time and labor costs to the project. It also usually involves getting building permits, which are a significant expense. The cheapest bathroom redos are usually renovations rather than full remodels.

There are lots of ways to change the look of a bathroom without changing the footprint. You can change the fixtures, walls, flooring, lighting, and accessories without moving anything. You can even make a small bathroom feel larger by adding a lighter paint color, a clear glass shower door, or a skylight to let in more natural light.

If you absolutely have to add square footage to your bathroom or change the arrangement of fixtures, keep the changes to a minimum. That way, you limit the number of labor hours you need from expensive contractors like plumbers.

3. Do the Work Yourself

According to HomeAdvisor, roughly half the cost of bathroom remodeling is labor costs. Homeowners spend an average of $65 per hour paying contractors, including carpenters, plumbers, electricians, drywallers, and floor tilers. Thus, the more of your bathroom remodel you can DIY instead of hiring a contractor, the more you can save.

But DIY is only a money-saver if you have the necessary skills. Some jobs, like moving plumbing lines, are best left to the pros. If you try to do them yourself with no training beyond a five-minute YouTube video, you could cause a flood. The damage that does will cost a lot more than hiring a plumber in the first place.

However, most homeowners can handle at least some of the jobs in a bathroom renovation. Depending on your skill level, you could tackle jobs like:

  • Demolition (pulling out old wallboard, flooring, and cabinetry)
  • Painting
  • Tiling
  • Replacing faucets and showerheads
  • Adding accessories like towel racks
  • Installing bathroom lights
  • Installing new plumbing fixtures

Homeowners with a little DIY experience can take on more ambitious DIY projects. For instance, when we couldn’t find a stock vanity cabinet we liked, my husband built one from plywood and beadboard.

A Texas homeowner profiled by This Old House made almost all the materials for his powder room renovation. He poured his own concrete countertops, built new doors and drawer fronts for the vanity, and even welded a new frame for the mirror. Another couple in Missouri built their own cabinetry, made custom light fixtures, and enameled an old bathtub.

4. Reuse Existing Pieces

Doing the work yourself is the primary way to save on labor costs. But when it comes to materials, there are lots of different ways to save. One of the most effective is to refurbish the pieces you already have rather than buying new ones.

With a little work, you can change the look of nearly any piece in a bathroom, such as:

  • Bathtubs. One homeowner was able to salvage an old, rust-stained tub by having it cleaned professionally. You can also fix surface damage to porcelain, cast iron, and fiberglass tubs by refinishing them. A DIY tub refinishing kit costs around $80.
  • Shower Enclosures. A tiled shower enclosure can look like new if you clean both tile and grout thoroughly. The grout may also need some patching in worn areas. To give it a fresher look, you can stain white grout a darker color. If you have acrylic or fiberglass shower walls, you can patch dented or cracked spots. A repair kit costs under $20.
  • Sinks. You can dramatically change the look of a sink by replacing the faucet. If the porcelain is cracked, you can repair it with either a porcelain repair kit or a two-part surface repair epoxy. Both cost less than $15.
  • Toilets. Rather than paying $100 or more for a new toilet, give yours a new look by replacing the toilet seat and lid for $30 or less. To add a touch of elegance, opt for a wooden toilet seat or soft-close model that doesn’t slam shut.
  • Cabinetry. You can save hundreds of dollars on cabinets by painting or refinishing the pieces you already have. If the doors are too damaged, replace them while keeping the cabinet boxes. According to HomeAdvisor, that typically costs $30 to $100 per door, not counting labor.
  • Floors. Like shower enclosures, you can refurbish tile floors by cleaning them thoroughly and replacing or staining the grout. If you have wood floors, you can have them professionally refinished for $3 to $8 per square foot, according to HomeAdvisor.
  • Walls. The cheapest way to change the look of your walls is to repaint them in a different color. If you have tile walls you don’t like, you can install new wood panels or beadboard wainscotting over the tile. At around $20 per beadboard panel, that’s cheaper than tearing it out and replacing it, and it lets you switch back to tile later if you want.

5. Use Paint Creatively

Just changing the paint color in your bathroom can make a surprisingly significant difference to its overall look. But you can do a lot more with paint than just roll it over a wall. Creative homeowners have used it for:

  • Textured Effects. You can give a wall a textured look by using two different colors. Start by giving the whole wall a base coat in one color. Then use a textured tool, such as a sponge, rag, or comb, to apply the second coat. We used a sponging-off technique in our bathroom to create a look similar to stucco.
  • Faux Wallpaper. Paint can give you the look of wallpaper with less money and effort. For instance, you can make your bathroom look larger by painting it with broad, horizontal stripes. Or use a stencil to create a pattern on the wall.
  • Faux Tile. You can also use paint and stencils on a wood or concrete floor to create the look of tile for less. Just use sturdy porch paint and three coats of polyurethane to stand up to the humid environment.
  • Real Tile. According to Sherman Williams, it’s even possible to paint over real tile. Clean the bathroom wall tile thoroughly, scuff it with sandpaper, and apply a water-based acrylic primer. Top it with a durable latex or urethane paint, and you have “new” tile without the hassle and expense of replacing the old tile.
  • Refinishing Fixtures. You can use enamel paint to salvage an old bathtub or spray paint and lacquer to change the finish of a sink faucet.

6. Use Cheaper Materials

There are limits to what you can do with paint. But there are many other ways to substitute cheaper materials for pricier ones and get the look you want for less. To stretch your dollars when renovating a bathroom, splurge on just one or two high-impact items, such as countertops or a clawfoot tub, and choose cheaper alternatives for everything else.

There are cost-effective alternatives for nearly every part of a bathroom remodel.

Walls

Tile costs a lot more than paint or paneling. To keep your costs down, limit your use of tile on the walls as much as possible. Use it only in areas that get wet regularly, such as the tub or shower enclosure.

For the rest of your walls, painted drywall is the cheapest alternative. However, wood panels can create a more interesting look at a lower price than tile.

Flooring

Bathroom flooring options fall into three price ranges. The cheapest options are laminate and vinyl, which can cost $1 or less per square foot. Wood and ceramic tile are midrange alternatives, and stone tile is the priciest flooring of all.

If you crave the look of stone, it’s often possible to get it with a cheaper ceramic. One inexpensive bathroom remodel covered by This Old House includes slate-look ceramic tiles that cost only $85 for the whole room.

Tub and Shower Enclosures

If you can’t refurbish your existing shower walls, the cheapest way to replace them is with large panels of fiberglass or acrylic. These cost as little as $100 each and are quick to install.

However, if you prefer the look of a tiled wall, go for porcelain or ceramic tile rather than pricier glass or stone. You can also save time and money by choosing larger tiles. These require less grouting, so you save on labor costs.

If you’ve fallen in love with a fancy designer tile, search for a cheaper look-alike. Alternatively, use the fancy tile as an accent, filling in most of the wall with a more affordable tile. Not only will you save money, but the expensive tile will stand out more.

As for the front of the tub or shower enclosure, a shower curtain is cheaper than a glass door and easier to install. It’s also easy to clean — just take it down and toss it in the washer. And you can easily swap it out any time you want to change the look of the bathroom.

Tub and Shower Hardware

If you need to replace your bath or shower handles, spout, and showerhead, it’s probably cheapest to buy them as a set. These sets, called trim kits, can cost as little as $100 to $200 each.

However, if the handles are still in good shape, it could be cheaper to keep them and replace the showerhead only. A good showerhead contributes a lot more to a satisfying shower than nice-looking handles. Many top-rated showerheads cost less than $50.

Countertops

A stone countertop for your vanity is cheaper than stone counters for your kitchen since it’s a lot smaller. But other options are much less expensive.

According to HGTV, the most affordable countertop choices are laminate and ceramic or glass tiles. Engineered stone and solid-surface countertops cost more, but they’re still cheaper than granite or marble.

If you really love the look of stone, there are several ways to get it for less:

  • Use Tiles. Tile your countertop using marble floor tiles instead of a slab. The DIY’ing Missouri couple used this method, paying just $9 per square foot for their marble tiles. With white grout, the joins are hardly visible.
  • Use Remnants. Ask local suppliers if they have any stone left over from a bigger job. These remnants are often cheaper than a whole slab, and you don’t need much to make a vanity top. If you’re using a contractor, you can ask them about remnants as well.
  • Try Prefab. If your vanity is a standard size and shape, you can save money by choosing a prefabricated slab. It’s cheaper than having a piece cut to size. But it limits your options for color and edge details.
  • Choose a More Affordable Grade. Natural stone slabs come in different grades. A slab with more imperfections costs less, and if the flaws are in the center — where the hole for the sink will go — they won’t even show.
  • Keep the Edges Simple. Stone and prefabricated countertop materials are cheapest with a plain beveled or bull-nose edge. You can save by choosing these edge finishes over a fancy ogee or waterfall edge.

Cabinetry

The cheapest type of storage for the bathroom is open shelving. You can create wall-mounted shelves with nothing but a plank of wood and some wall brackets. These can go on any empty wall, including behind the toilet, to use all the space in the room.

If you want to keep your bath supplies behind closed doors, stock cabinets are cheaper than custom cabinetry. You can also compromise between the two by choosing semi-custom, ready-to-assemble cabinets. This product lets you configure size and features to fit your space. But the more options you add, the more it costs.

As for cabinet materials, laminate or thermofoil cabinets are cheap and easy to clean. However, they can warp over time, so they may not save you money in the long run. You can save on wood cabinets by choosing pine, maple, oak, or alder over pricier mahogany, cherry, or walnut. If you prefer darker wood, you can buy cheaper pieces and stain them.

The style of the cabinets also matters. You save the most by choosing flat doors rather than doors with raised panels and drawers rather than pullout cabinets. Shop around to find brands of both cabinets and hardware that give you the look you want at the lowest price.

One inexpensive and trendy option for a vanity cabinet is to repurpose an old dresser. You can find dressers through secondhand sources like garage sales and Craigslist for much less than you’d pay for a store-bought vanity cabinet.

Toilets

Considering they all do the same job, there’s a surprising range in the price of toilets. As a rule, round toilets are cheaper than those with an elongated bowl, and two-piece toilets cost less than one-piece ones. Two-piece toilets take up more room and are a little harder to install, but they’re easier and cheaper to repair if they break.

One type of toilet to avoid is a wall-hung model with the tank recessed into the wall. This design saves space, but it’s harder to install and repair, costing you money.

It’s also worth considering water-saving toilets. These don’t cost significantly more upfront, and they save you money on your water bill over their lifetime.

7. Shop Secondhand

Another way to save on materials for your bathroom renovation is to buy them secondhand. The Missouri couple who created a luxury master bathroom on a $6,000 budget got nearly everything used, including a salvaged clawfoot tub, discarded cabinet doors from a kitchen and bath showroom, a scavenged marble scrap for a countertop, and a yard sale mirror.

Shopping secondhand isn’t as easy as going into a store and putting things in a cart. It pays to start early to ensure you have plenty of time to find what you want. While you’re still in the planning phase of your remodel, start checking secondhand sites for items that match your wish list.

Places to find secondhand materials include

  • Reuse Centers. If you have a reuse center in your area, you can find everything you need for your bathroom remodeling project there, from tile to light fixtures. When we redid our bathroom, we hit the Habitat for Humanity ReStore and found Italian ceramic tile for under $3 per square foot and a cultured marble sink and vanity top for $30.
  • eBay. You can find nearly anything on eBay, including bath supplies. The Texas homeowner who redid a powder room for $705 bought a sink, faucet, and light fixtures from online auctions for $390 total. Just remember to factor in shipping costs when buying online, especially since bath items can be heavy.
  • Craigslist. Check the for-sale section of your local Craigslist site for bath bargains. A quick search of the listings on my local group turned up plumbing fixtures, countertops, cabinetry, light fixtures, and even a ventilation fan.
  • Nextdoor. Nextdoor is a social media group designed to help neighbors connect. Members can buy and sell unwanted goods through the Finds section. Listings for bath pieces aren’t that common, but it’s worth a look.
  • Freecycle. Through the Freecycle Network, members give away unwanted items to people in their area at no cost. Check your local group for free stuff you could use as part of your bathroom remodel.
  • Flea Markets. Check out flea markets for antique pieces for your bath remodel, such as a clawfoot tub or an old-fashioned light fixture. Just don’t buy anything you can’t haul home since there’s no delivery service.
  • Antique Stores. Antique stores are another excellent source of vintage furniture and materials. But they’re likely to charge higher prices than other resellers.
  • Yard Sales. Shopping at garage sales is a hit-or-miss proposition. You can’t always find what you want, but when you do, the prices are terrific. The Missouri couple with the $6,000 master bath renovation made several affordable finds at yard sales, including a $35 etched glass mirror and a marble slab for just $1.
  • Your Own Home. Don’t hesitate to reuse materials left over from other projects in your bathroom renovation. Several homeowners profiled by This Old House reused leftover materials, including paint and beadboard.

8. Look for Bargains

If you can’t get all the materials for your bathroom secondhand, you can save by finding them on sale. For instance, one couple from New York found a cast-iron bathtub on sale for $350. Most new cast-iron tubs cost $1,000 or more.

The holiday season is an excellent time to find remodeling materials on sale. According to CabinetNow, the best seasonal sales on cabinetry occur on Black Friday and in the weeks before Christmas.

However, shopping sales isn’t the only way to find deals on new materials. One of the best ways to find bargains is to shop around. Comparison-shopping websites and tools can help you find the best prices when shopping online. Other money-saving browser extensions can help you find coupon codes to cut costs still more.

Also, don’t overlook discount sites like Overstock.com. This site offers everything you need for a bathroom renovation, from tubs to tile, at prices well below retail.

If you find reasonable prices for several products in one store, but its prices on other things you need are higher, find out if the store offers a price-match guarantee. If it does, you could get the best prices on everything you need at once without having to visit multiple stores.

Finally, if you buy a lot of materials from one place, ask about volume discounts. Home centers like Home Depot offer discounts on bulk sales. It’s primarily for professional contractors, but it can’t hurt to ask.


Final Word

A bathroom remodel doesn’t have to cost a small fortune. There’s no doubt that some upgrades, like a fully tiled walk-in shower or expanding the square footage of your master bath, can run into the tens of thousands of dollars. But with good planning and a little creativity, you can make your bathroom into a luxurious retreat on a much smaller budget.

Moreover, updating or adding a bathroom to your home is a home improvement project that adds value. According to the 2021 Cost vs. Value Report from industry publication Remodeling magazine, homeowners who remodel their bathrooms recover an average of 55% to 60% of the money when selling the home. And if you can manage to add the same resale value on a smaller budget, you can boost that percentage even more.

Do you have other rooms to redo? Check out our articles on budget kitchen remodels and basement remodels.

Source: moneycrashers.com

The 6 Best Ways to Save Money for Kids

If you think higher education is in your child’s future, consider a 529 college savings plan.
Ready to stop worrying about money?
If you plan on covering some, but not all college expenses, you can tweak this formula to suit your situation. For instance, Fidelity recommends targeting a savings goal of ,000 multiplied by your kid’s current age if you plan on covering 50% of college costs and assume your child will attend a four-year public school. The financial institution provides a couple of examples of parents covering different percentages of fees and what that would look like at different ages of their children.
First, assess your total financial picture. Take inventory of your outstanding debt, and create a budget if you haven’t already.
If you want to save money, there are many ways you can go about it. Whether you’re thinking ahead to your child’s college education or just want to set aside a little something for when your child reaches a certain age, you have more than a few options to reach your savings goals.
(Have you picked your jaw up off the floor yet? Good. Keep reading.)
As with all investments, there are fees and risks associated with 529 plans.
There are also plenty of child-friendly bank accounts you can choose from to encourage your children to start saving early and often. A savings account is a good start.

Planning for Your Kids’ College Savings and Future Expenses

Source: thepennyhoarder.com
Now on to the good news: You have many options to start saving for your child’s future today, no matter your budget.
Again, that’s just the estimated cost. And there are grants and college scholarships available to help families chip away at the fees.
With this plan, a saver opens an investment account for the beneficiary’s qualified college education expenses, including room and board. This money can be applied toward universities (and some outside the U.S.), and withdrawals can also be used to pay up to K at elementary and high schools.

5 Ways to Save Money For Your Kids’ College Education

What’s the best type of savings account for a child? We’re glad you asked!

1. 529 College Savings Plans

How much money you “should” save depends on a few factors. For one, there are a lot of variables to consider: How much will a university degree cost in X number of years? How long do you think your child will go to school for? (Two years, four years or more years for advanced degrees.) What amount can you afford to regularly sock away for expenses?
These plans are sponsored by state governments as well, but there are fewer residency requirements. Investments in mutual funds and ETFs are not guaranteed by the federal government, but some bank products are protected.
A Roth IRA is an individual retirement account. You fund it with money you’ve already paid taxes on. So, when the time comes (typically at age 59 ½), you can withdraw your Roth IRA contributions and earnings tax free. However, you can withdraw this money earlier, penalty-free, to pay for higher education costs for your child.

Prepaid Tuition Plan

A 529 plan, or qualified tuition plan, is a tax-advantaged investment account. This means the money grows tax free and you can also take it out tax free. Each state (plus the District of Columbia) offers at least one plan. You can view minimum and maximum contribution limits and other considerations by state here.
With this plan, a saver or account holder can purchase units or credits at a participating university and lock in current prices for future tuition costs for the beneficiary. Typically, this money can’t be used for elementary and high school costs, nor be put toward room and board at college.

Education Savings Plan

While interest rates are low and whatever interest you earn is taxed as income, an FDIC-insured bank savings account is a tried and true (and safe) place to store money — whether yours or your kid’s.
With a Roth IRA, they’ll get tax-free money when they retire. They can also use these funds to help pay for their own qualified college expenses. While your child will have to pay taxes on the earnings, they won’t face an early withdrawal penalty.
You generally have more flexibility with brokerage accounts: You can choose from a variety of investments and make withdrawals at any time. Note: If your child does plan on going to college, the value of this account will be included in financial aid calculations.
There are other online calculators that can help you determine what you should save, depending on what your child’s future education plans might entail (like grad school). Again, a financial advisor or certified financial planner (CFP) can help you plan for college costs in way that accommodates your needs.

2. Roth IRA

Anyone can use a 529 college savings plan (no annual income restrictions!) and you can change the 529 beneficiary to another family member without incurring a tax penalty.
Here are three questions we see pop up time and again when it comes to investing in your child’s future. Oh. And this figure doesn’t even factor into university costs.
Of course, you can invest your money in a few different ways — some combination of a 529 plan; Roth IRA; or, UGMA, UTMA, brokerage or savings accounts — so you have options.

3. UGMA and UTMA Accounts

Sticking with college, here are additional ways to save that you and your child can work toward. Whether you’re a new parent or a year out from sending your kid off to college, consider these opportunities to save money.

Uniform Gift to Minors Act (UGMA)

A brokerage account allows you to invest money in stocks, bonds and mutual funds. Once you deposit your money, you can work with a financial advisor or robo-advisor, or both, to invest and grow your money.

Uniform Transfers to Minors Act (UTMA)

File this under “Things You Already Know” — kids are expensive. What you might not know is the best ways to save money for kids, and we’ve got your back on that.
This account establishes a way for someone under 18 years old to own securities without requiring a trustee or prepared trust documents.

4. Brokerage Account

Here are several ways you can invest and save money for your children, whether you want to open a college savings plan or start a rainy-day fund.
A parent or guardian will need to serve as the custodian, since minors generally can’t open brokerage accounts. Children need to have an earned income (part-time jobs, like babysitting, count) to contribute to it. Like adults up to and under age 50, they can only contribute up to K to the Roth IRA annually. Once the child turns 18 or 21 years old (depending on the state in which they live), control of the account must be transferred to them.
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5. Savings Account

College is an investment, and it can be a pricey one. By saving early (and with the magic of compound interest on your side), you can earn a bigger return on your money down the line.
And, mom and dad, when the time comes, make sure you fill out the Free Application for Student Aid (FAFSA).
There are two types of 529 plans: prepaid tuition plans and education savings plans.
Consider meeting with a financial expert to help you craft a plan that’s best for you.
The cost of raising a child from birth through age 18 is roughly 3,610, according to the United States Department of Agriculture (USDA). To break that down further, that’s around K per year, per kid.

graduation cap filled with money on sidewalk
Aileen Perilla/The Penny Hoarder

Additional Ways to Save Money for College

Save early and save regularly, and you’ll be off to a good start.Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.

  • Ask for gifts toward their education expenses. If friends and family would like to give a gift to your child, ask them to consider putting any money toward their college fund. You can do this for any birthday or holiday, though the earlier you start investing in their education, the better. (Bonus: Your 1 year old doesn’t have the capacity to ask for the latest toy and won’t object to this gift.)
  • Encourage your kid to work and save. Once your child is of legal working age, they can get a job and start saving money for their school expenses. Even saving a small amount per paycheck can help them make a dent in later costs; you might also consider “matching” their savings to incentivize them (for example, give them $1 for every $20 they put away for college).
  • Look to companies and professional organizations. Your workplace may offer opportunities to children of employees looking to earn money for college. Some large companies, like UPS, offer such scholarships. Review your company handbook or ask your HR department about any available opportunities. Professional organizations, like the Rotary Club, are also known to offer scholarships and grants for continuing education. If you belong to any organizations or other clubs, look out for these benefits.
  • Apply for scholarships and grants. Additionally, encourage your high school student to look for scholarships and grants to help mitigate their college costs. Universities typically offer money for students who fit certain criteria — such as transfer students or people in certain majors — and meet other requirements. There are all sorts of weird scholarships, contests and even apps that can help them earn money for school, too. Just make sure they weigh the pros and cons of any entry fees and stay on top of contest deadlines.

If we use the earlier figures from CollegeCalc that forecast what a four-year education will cost in 2039 (5,167.67 / 4 = ,792 a year), it’s recommended you put 1 a month into a college savings plan. This calculation assumes an after-tax return of 7%, an annual tuition increase of 7% and four years of school.

Frequently Asked Questions (FAQs) 

It’s great if you’re able and want to contribute to your children’s future expenses and education fund — student loan debt has surpassed a whopping .7 trillion in the U.S. — but you need to be smart about it. If you put yourself in a precarious financial situation, it can be more difficult for you to course-correct later.

When Is the Best Time to Invest Money for College?

With that said, don’t let getting started “later” deter you from saving at all. It’s kind of like the Chinese proverb, “The best time to plant a tree was 20 years ago. The second best time is now.” You want to save what you can as early and regularly as possible. But if life circumstances prevented you from doing so before, right now is the next best time to start saving.
On average, tuition and fees ran ,411 at private colleges and ,171 for in-state residents at public colleges for the 2020-2021 school year. The estimated cost of a four-year degree, 18 years out?

What’s the Best Way to Invest Money for a Child?

Most prepaid tuition plans have residency requirements for the saver and/or beneficiary, and are sponsored by the state government (and not guaranteed by the federal government). However, not all state governments guarantee the money paid into them, so it is possible to lose money. Additionally, your mileage may vary with this plan if the beneficiary doesn’t attend a participating college, resulting in a smaller return on investment.
First things first: If you have nothing saved for retirement, focus on your own needs before you start saving for someone else. You’re on a more fixed timeline. Plus, you can’t borrow for retirement savings like your child can for their education.
5,167.67.

How Much Money Should I Save for My Child?

Looking for more options that aren’t exclusive to education? You can invest in a taxable brokerage account.
The good thing about putting away money for your children is that there is no one “right” way to do it. You can open a 529 plan for your child early on or later as they get closer to college aid. Or, you can fund a brokerage account so you’re not held to stricter rules about how the money’s spent.
If you want to invest in your kid’s future without choosing an account that’s for education expenses only, look into a Uniform Gift to Minors Act or UTMA Uniform Transfers to Minors Act.
Don’t forget the old standby: a traditional savings account.

The Best Way to Save Money for Kids

This account is similar to a UGMA. However, minors can also own property such as real estate and fine art.
A custodian will also need to be set up for this type of account. Parents can set up a custodial account and then make withdrawals to cover child-related expenses. Once the child is of legal age, the assets are transferred to their name. Since the funds for both UGMA and UTMA accounts are in the child’s name, they cannot be transferred to another beneficiary. <!–

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Stock Market Today: Stocks Buck Surprise Jump in Jobless Claims

The major stock indexes improved for a third consecutive session, logging mild (but pleasantly surprising) gains Thursday in the face of a disappointing jump in weekly unemployment filings.

The Labor Department reported that first-time claims for jobless benefits jumped to 419,000 for the week ended July 17 – an increase of 51,000 filings and far more than economists’ forecast for 350,000.

However, Anu Gaggar, senior global investment analyst for Commonwealth Financial Network, says the news isn’t as bad as the headline figure suggests.

“We need to filter the noise in the data points and not lose sight of the big picture, which is that the trend line continues to head lower,” she says. “There has been some distortion in data and in consensus expectations around automakers’ annual retooling shutdowns that will work its way through the system in the upcoming weeks.”

Although investors initially reacted with early selling, stocks gradually recovered over the course of the day. The Nasdaq Composite (+0.4% to 14,684), S&P 500 (+0.2% to 4,367) and Dow (up marginally to 34,823) all logged modest gains, helped by the likes of mega-caps Apple (AAPL, +1.0%) and Microsoft (MSFT, +1.7%).

The industrial average also benefited from a boost in shares of chemical giant Dow Inc. (DOW, +1.3%), which reported Street-beating earnings and sales.

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Small caps weren’t so fortunate. The Russell 2000, which had outperformed the major indexes the past two sessions, dropped 1.6% to 2,199.

Other action in the stock market today:

  • Amid the onslaught of earnings reports hitting the Street, Netgear (NTGR) was a notable loser in the wake of its results, sinking 9.5%. In its second quarter, the computer networking company generated adjusted earnings of 66 cents per share, well below what analysts were expecting. Revenue of $308.8 million also fell short of the consensus estimate. In addition, NTGR lowered its current-quarter revenue and operating margin forecasts.
  • On the flipside, foam clog maker Crocs (CROX) surged 10.0% in the wake of its second-quarter earnings results. CROX reported better-than-expected adjusted earnings of $2.23 per share on record revenue of $640.8 million. The company also raised its full-year revenue guidance, now expecting annual sales growth of 60% to 65%.
  • U.S. crude oil futures rose for a third straight day, climbing 2.3% to settle at $71.91 per barrel.
  • Gold futures edged up 0.1% to $1,805.40 an ounce.
  • The CBOE Volatility Index (VIX) dipped slid 1.2% to 17.69.
  • Bitcoin rallied for a second straight day, improving 2.2% to $32,394.24. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
stock chart for 072221stock chart for 072221

It Will Pay to Be Picky

Although Thursday’s disappointing unemployment claims are by no means a reason to panic, they do add to the argument that stocks might be rallying on increasingly wobbly ground.

“There are over 9.2 million job openings, the highest on record by a long shot, yet many are hesitant to get back in the labor force,” says Cliff Hodge, chief investment officer for Cornerstone Wealth. “One data point isn’t a trend, and a one-off can probably be chalked up to delta variant concerns. If jobs data doesn’t inflect soon, the markets and the Fed will be put on notice.”

If data undermining the case for continued economic recovery keeps stacking up, investors might want to be a touch more discerning about their stock picks than they would be during a true go-go period for markets.

Folks focused on generating income should prioritize companies with the financial mettle to easily pay (and generously raise) their dividends.

And as for those who prefer growth, don’t stick your neck out too far. These 11 growth-at-a-reasonable-price (GARP) stocks provide both attractive growth prospects and reasonable risk profiles that will cushion any downside in a broader market selloff.

Another potential source of protection and upside potential are these 11 “safe” stocks – a collection of equities highlighted by investment research firm Value Line for both their fundamental strength and their bright forward-looking prospects. Read on as we run down this group of stable stocks expected to deliver sizable gains over the next year-plus.

Source: kiplinger.com

Where to Find Cheap or Free Tutoring for Your Kids

Whether your kid is struggling to read or to understand advanced calculus, some additional one-on-one instruction can make a world of difference. That’s why parents hire tutors — to boost their kids’ academic progress beyond the constraints of the school day.

But finding the funds to pay a tutor can be tough for a family on a budget. Costs vary, but it’s not unheard of to spend between $40 and $80 … per hour. And if your child is really struggling, chances are you’re going to need way more than one hour.

Here are some alternative ways to get educational assistance, even free tutoring, without breaking the bank.

6 Low-Cost or Free Tutoring Options

1. Get Extra Help With an Online Tutor

Online tutors don’t need a brick-and-mortar building, and they eliminate the need for anyone to commute. Everything is accessible with the click of a mouse. Your screen is your virtual whiteboard.

Some free or low-cost online tutoring websites include:

  • Khan Academy — a nonprofit organization that provides a wide range of free lessons to students all over the world.
  • Learn to Be — a Los Angeles-based nonprofit organization that provides free one-on-one tutoring to K-12 students in underserved communities.
  • Chegg Study — a 24/7 tutoring service for high school and college students where you pay $14.95 a month for expert homework help from a variety of subjects including math, science, engineering and business.
  • Free Tutoring Center — a student-run service that provides free one-on-one tutoring to elementary and middle schoolers from economically disadvantaged backgrounds.
  • UPchieve — a free online tutoring app where volunteer tutors provide academic help in various math and science subjects. This service also offers free college counseling.
  • Varsity Tutors — an education platform that offers free large group classes and free learning tools for self-study. For more individualized help, Varsity Tutors charges for one-on-one tutoring and small group classes.
  • Outschool — an online learning platform that has a variety of classes for kids ages 3 to 18. Filter your class search by price to find offerings for $9 or less.

2. Browse Your Library’s Offerings

If you’re only using your library card to check out books, you’re likely missing out on all the neat opportunities your library has to offer. Some tutoring companies like Tutor.com and Brainfuse partner directly with public libraries to provide free online tutoring to students.

Ask your librarian about what your local branch offers. Outside of partnering with an online service, your library might host free or low-cost test prep or homework help. Your librarian might also know of students or teachers who offer affordable tutoring. At the very least, you can get pointed in the direction of helpful reference books and research materials related to your child’s topic of study.

3. Go Back to School

Sometimes the best place to get help is directly from your child’s teacher. He or she already knows your child’s unique challenges and learning style and is invested in seeing your kid improve.

Schedule a parent/teacher meeting to ask about opportunities for extra instruction. The teacher may be free to help your child during a study hall period, and you can bypass paying for a Saturday afternoon tutoring session.

Also, ask if there’s a peer tutoring program at school where older students or students excelling in a particular subject volunteer to aid those who need extra help.

Consider that the help may come from outside your kid’s individual school. National Honor Society members at the local high school might have an outreach program that would benefit your struggling middle schooler. Community colleges sometimes have academic resources available for high school students at low or no cost.

4. Be Selective About After-School Programs

Until kids are old enough to go home to an empty house, working parents often turn to after-school programs and extracurriculars. While karate practice and dance lessons sound fun, your kid won’t be working on math equations or language arts.

You can save money by choosing an after-school program that includes tutoring services. The Boys and Girls Club and the YMCA are two national youth nonprofits that often provide help with homework or studying for tests.

5. Call on Your Community for One-on-One Tutoring

Don’t underestimate the power of your social circle. Your friends or coworkers may know of organizations in your city that provide free or low-cost tutoring.

Ask the parents of your kids’ friends for recommendations on affordable tutors. An older sibling of your child’s best friend might be a math whiz. You may be able to barter with a classmate’s mom, exchanging tutoring sessions for free babysitting.

6. Give Into Screen Time on YouTube

Now this last one isn’t quite tutoring in the traditional sense, but you can turn to YouTube for almost anything these days — including K-12 subject matter. In most cases, you’ll be able to access instructional videos at no cost.

Has physics or chemistry got your kid down? Check out these YouTube science channels. This list of YouTube history channels may help students master the details of major world events.

The video-sharing platform just might get your kids to see their worst subject in a new light and find learning — dare I say it? — fun.

Nicole Dow is a senior writer at The Penny Hoarder.

Source: thepennyhoarder.com

People Say to Give Up These 4 Things and Retire Early — They’re Wrong

If you’re not already rich, the race to early retirement can feel like it’s marred by sacrifice. Give up this, give up that — like the only way to retire before 65 is if you suffer now.

Sure, you want to be able to enjoy early retirement, and that means having enough money saved to do so. But you also want to live your life now in a way that brings you joy.

A study from annuity.com found that people would be willing to sacrifice several of life’s greatest conveniences to be able to achieve FIRE (financial independence, retire early):

The study shows that 20% of people would forgo having children, 27% would live without a pet and 28% would give up dining out just to have their retirement party a decade or two earlier. Some people would even move into a tiny home or sell their car!

But we know there are better ways. You don’t have to give up the things you love just to retire when you’d like to. Here are a few things people suggest giving up to accelerate their retirement timeline — and why we think you shouldn’t.

1. What They Say: ‘Give Up Your Vehicle’

Between car payments, insurance and repairs, having a car can be a big expense. And people eyeing early retirement do tend toward a minimalist lifestyle, so getting rid of your vehicle can be a tempting expense to cut.

But unless you live in a city that’s bikeable or has great public transportation, you’re going to need your own way to get from point A to point B. So instead of selling or letting your lease run out, here are a few tips to cut your car expenses down:

  • Buy a used car. Even though the average interest rate to finance a used car is higher than a new car or leasing one, financially you can save thousands of dollars over the course of a few years.
  • Cut your car insurance costs. By checking quotes every six months, you can save an average of $489 a year on your insurance payments. A website called Insure.com makes it super easy to compare car insurance prices. All you have to do is enter your ZIP code and your age, and it’ll show you your options.

2. What They Say: ‘Give Up Online Shopping’

Online shopping can be an account drainer — it’s so easy to put things into your cart, click a few buttons and wait for your package to arrive a few days later. And if your aim is to save a lot of money over the next decade or two, online shopping can be a major roadblock.

But here’s the thing — you can still shop online. You just need to be smart about it: Never overpay, and get cash rewards.

That’s exactly what this free service does for you.

Just add it to your browser for free*, and before you check out, it’ll check other websites, including Walmart, eBay and others to see if your item is available for cheaper. Plus, you can get coupon codes, set up price-drop alerts and even see the item’s price history.

Let’s say you’re shopping for a new TV, and you assume you’ve found the best price. Here’s when you’ll get a pop-up letting you know if that exact TV is available elsewhere for cheaper. If there are any available coupon codes, they’ll also automatically be applied to your order.

In the last year, this has saved people $160 million.

You can get started in just a few clicks to see if you’re overpaying online.

3. What They Say: ‘Give Up Dining Out’

While the world was in quarantine, we learned to be more self-reliant in the kitchen, and many of us saw a significant drop in our dining-out expenditures (take-out, maybe not so much). So it’s understandable that 28% of people say they’d give it up entirely to reach their early retirement goals.

But for the other 72% who love going to restaurants and ordering delivery, financial independence isn’t off the table. There are just some strategic moves to make so you can keep supporting your favorite local spots and give your family a break from all the dishes.

First, look for discounts: You can find them on Groupon or with a AAA discount. You can even buy discounted gift cards on websites like Restaurant.com. If you have kids, check out restaurants that let them eat free on certain days of the week.

Next, make sure you’re getting cash back every time you go out to eat (or swipe your debit card in general).

If you’re not using Aspiration’s debit card, you’re missing out on extra cash. And who doesn’t want extra cash right now?

Yep. A debit card called Aspiration gives you up to a 5% back every time you swipe.

Need to buy groceries? Extra cash.

Need to fill up the tank? Bam. Even more extra cash.

You were going to buy these things anyway — why not get this extra money in the process?

Enter your email address here, and link your bank account to see how much extra cash you can get with your free Aspiration account. And don’t worry. Your money is FDIC insured and under a military-grade encryption. That’s nerd talk for “this is totally safe.”

4. What They Say: ‘Give Up More Living Space’

The tiny home — or small space — lifestyle has become increasingly popular among the retire-early crowd. It’s cheaper to own, likely includes no mortgage and is less expensive to upkeep, as well.

In fact, 17% of people surveyed said they would live in a space smaller than 700 square feet, if it meant they could retire early. For a single person that may be fine, but for couples or families — it might just not be enough.

Instead, you could keep the space you love and find ways to save money and make money with it:

Stop overpaying $690 on homeowners insurance

Luckily, an insurance company called Policygenius makes it easy to find out how much you’re overpaying. It finds you cheaper policies and special discounts in minutes.

In fact, it saves users an average of $690 a year — or $57.50 a month. It’ll even help you break up with your old insurance company. (You’re allowed to cancel your policy at any time, and your company should issue you a refund.)

And just because you’re saving money doesn’t mean you’re skimping on coverage. Policygenius will make sure you have what you need.

Just answer a few questions about your home to see how much money you’re wasting.

Make up to $300 a month from your empty garage

Extra rooms in your house don’t need to be left empty. You can rent out unused storage space — your shed, or your garage — to your neighbors who need it. A website and app called Neighbor can help you earn up to $300 a month, on your terms. Use this calculator to see how much your available storage space is worth.

Kari Faber is a staff writer at The Penny Hoarder.

*Capital One Shopping compensates us when you get the extension using the links provided.

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Source: thepennyhoarder.com