The Top 5 Reasons Seniors Stay Frugal in Retirement

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Countless workers scrimp and save for years with the goal of enjoying a comfortable retirement. Many of those folks do not abandon their penny-pinching ways once their golden years finally arrive.

Surprisingly, fear of running out of money is not the No. 1 factor that drives retirees to stay frugal, according to the Employee Benefit Research Institute’s (EBRI’s) Spending in Retirement Survey.

Instead, the survey — which asked 2,000 individuals ages 62 to 75 about their spending habits and their situation at and during retirement — found four more-common reasons that retirees keep their wallets shut.

The five reasons the retirees most often cited for not spending down assets are:

  1. Saving assets for an unforeseen cost later in retirement — 38%
  2. Feeling that spending down assets is unnecessary — 37%
  3. Wanting to leave as much as possible to heirs — 33%
  4. Simply feeling better when account balances remain high — 31%
  5. Fear of running out of money — 27%

Among these retirees, the average amount of current financial assets was $200,000, with a median of $75,000. More than two-thirds — 69% — said their standard of living is the same or higher than it was when they were working, and 61% believe their spending is appropriate for what they can afford.

The power of a fat nest egg should not be underestimated. Among survey respondents, 64% said saving as much as possible leaves them feeling happy and fulfilled. That finding seems to support recent research that has revealed that — contrary to common folk wisdom — having more money does indeed make people happier.

In fact, the retirees in the EBRI survey said they wish they had saved more for retirement. Just 18% said they saved more than was needed, while 46% reported saving less than they needed in retirement.

Saving for a great retirement

In life, it’s smart to learn from the wisdom of those who are in the place today that you are headed toward tomorrow. If many of today’s retirees wish they had saved more, chances are good you will feel the same way when you retire.

So, now is the time to begin building your retirement nest egg. The Money Talks News course The Only Retirement Guide You’ll Ever Need can get you off to a great start.

This 14-week boot camp offers everything you need to plan the rest of your life, know you’ll have enough money and make your retirement dreams a reality.

The course, intended for those who are 45 or older, can teach you everything from “Social Security secrets” to how to time your retirement.

For more tips on how to build and maintain a nest egg, check out “Your Top 5 Retirement Questions, Answered.”

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

Source: moneytalksnews.com

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

How to Track Your Small-Business Expenses for Tax Deductions

As a small business or startup, keeping track of your expenses is essential. Come tax time, your business-related purchases qualify as tax deductions, reducing the total amount you owe on your return — but only if you’ve kept a record of them.

Thankfully, there are a variety of expense tracking options for you to choose from, whether you’re interested in accounting software or prefer to go the manual route.

What is Small-Business Expense Tracking?

Small-business expense tracking is how you record and manage any business-related purchases you make, such as:

  • Office supplies
  • Business travel expenses
  • Marketing and advertising costs
  • Software subscriptions
  • Home office furniture
  • Tickets to professional events and conventions

During tax season, the IRS considers many of these purchases as write-offs, allowing you to deduct them from your tax return. However, for these items to qualify as tax deductions, you will need to have a record of the purchase in the form of a physical or digital receipt.

You should keep track of your business expenses if you’re a small-business owner, startup founder, freelancer, or otherwise self-employed.


Why Track Business Expenses?

Tracking your business expenses comes with many benefits, including:

1. Reducing Your Small-Business Taxes

If you work for yourself, you already know the amount you have to pay in self-employment taxes each year can be significant. If you can reduce it, even by a small amount, that equates to more money in your pocket.

Keeping records of your deductible expenses is one of the easiest and most straightforward ways to reduce your tax return. By simply hanging on to your business-related receipts, you can save yourself a lot of money.

2. Demonstrating an Accurate Profit Margin

Tracking small-business expenses also helps to give you a more accurate understanding of your business’s profit. By monitoring both incoming and outgoing cash flow, it’s easier to see how much your business is making after your costs have been deducted.

If you only monitor profit, you’ll never really know whether your business is financially viable or not.

3. Organizing Your Business Records

Keeping clean, clear, and well-organized business records is the best way to understand and track your company’s growth over a long period of time. Tracking expenses can help you to:

  • Determine where you have opportunities to reduce your small-business expenses
  • See how your costs have increased or decreased based on the market or seasonality
  • Decide when and how to scale your business
  • Negotiate or reevaluate expenses

Even freelance records are important because they separate business costs from client-related expenses that qualify for reimbursement.

Plus, if you ever encounter a legal issue related to your business, detailed records will strengthen your case and show that you run an honest and lawful company.


How to Track Small-Business Expenses

You have a variety of different options when it comes to choosing a method to track expenses, from accounting software and applications to business banking accounts and manually recording costs.

Choose the method that works best for you and your business based on your needs, budget, and preference.

1. Accounting Software and Apps

One of the easiest methods for tracking expenses is by using accounting software. Many platforms can connect with your bank account to automatically identify and record business purchases as well as allow you to upload photos of receipts or manually enter expenses.

Some of the most popular business expense tracking platforms include:

Most of these platforms offer both a desktop version and mobile app, facilitating expense tracking in the office and on the go. This is especially convenient if you’re tracking business expenses while out of town.

Accounting software platforms and apps work best for businesses that want to use them to manage multiple aspects of their business, such as invoicing, facilitating payments, time tracking, and payroll.

Most accounting platforms also come with a monthly or annual fee, which typically qualifies as a tax deduction.

2. Business Banking Accounts

Keeping track of your business expenses is a breeze if you only make purchases using a company credit card or debit card. This way, all your purchases are in a separate bank account, making your expense reports easy to compile, review, and organize.

If you choose to open a business bank account through an online bank like Lili, make sure to keep it separate from your personal finances. Only use your business credit card or debit card to make business purchases. Otherwise, it defeats the purpose of having different accounts.

If you decide to go this route to manage your business finances, it’s recommended you open:

  • A business credit card
  • A business checking account
  • A business savings account

This way, you can deposit payments from clients and customers into your checking account and use it to pay for purchases made on your company credit card. Leftover business income can go into your savings account. This setup keeps your business finances completed separate from your personal assets.

3. Manually

If you only have a handful of clients or your expenses are relatively few and far between, keeping things simple may be the best option. Tracking expenses manually is as simple as creating a spreadsheet in Microsoft Excel and inputting expense details as you make purchases.

You can make your spreadsheet as detailed or as simple as you’d like. For example, you can include item descriptions, dates, and amounts as well as a total before and after taxes. Or, you can simply list items and their costs.

You can also use free spreadsheet software like Google Sheets if you don’t have a Microsoft 365 subscription.


Keeping Digital Receipts

Digital receipts are easier to track than their paper counterparts, but if you use multiple email addresses, bank accounts, or payment methods, keeping your expense records organized can be challenging. Three popular options include:

1. Expense Tracking Software

Most expense tracker apps and platforms help you to store digital receipts by either automatically recording them through your bank statements or letting you upload them yourself.

Many apps also allow you to categorize your business purchases, making them easier to input and record when preparing your income tax return.

Although apps and software are generally more expensive compared to other methods, they handle a lot of the administrative work for you. So, if you’re looking for a hands-off approach to keeping your digital expense records organized and well-managed, an app is probably your best bet.

2. Company Expense Email

An effective method is to use a single email address — preferably one associated with your business — to make all of your business-related online purchases. All the digital receipts associated with your company will be directed to your business email inbox.

To record paper receipts as well, take a picture of them or scan them and forward the image to your email address.

You can make this inbox accessible to your bookkeeper or accountant directly or forward your receipts to them as you make purchases. Even if you do your own bookkeeping, having your tax-deductible expense records in one place (and organized by date) will make your life easier.

Additionally, you won’t have to pay any additional costs outside of what you already pay to host your email account.

3. Cloud Storage

Your third option is to scan or take pictures of receipts and upload the images to the cloud storage of your choice, such as:

For digital receipts, you can take a screenshot, save it as an image, and upload it manually. Although not the most convenient option, cloud storage is typically free, which makes it an ideal choice for the budget-conscious.


Keeping Paper Receipts

Paper receipts are harder to manage than digital versions, but almost every small-business owner will have at least a few of them. Paper receipts usually come from:

  • Restaurants
  • Gas stations
  • In-store purchases
  • Cash purchases

And, unfortunately, identifying the debit in your bank account isn’t enough of a record to ensure that your purchase qualifies for a small-business tax deduction. You’ll need a copy of your actual receipt to document the amount, date, and item details of the expense.

Unfortunately, paper receipts are easy to lose and damage, so you need to store them carefully. Keep track of physical copies of purchase records by:

1. Scanning Receipts

Scanning or taking pictures of receipts is the safest way to keep a record of them. It’s much harder to lose or spill coffee on a digital record of a purchase than a physical one. This way, if you misplace a receipt or accidentally put it through the washer, you have a backup.

Scan or take a picture of a receipt as soon as you receive it to reduce the chances of it being lost or damaged.

You don’t even need a paid app to scan receipts, because there are a variety of options for both Apple and Android devices that allow you to scan and save documents for free.

2. Using an Envelope or Folder

Another option is to store receipts in a designated envelope or file folder in your office or filing cabinet. It’s best to store receipts by tax year so you know which ones will apply to your current return.

The hardest part of using this method is that you’ll need to make a habit of taking paper receipts from your pocket, wallet, or purse and putting them in the proper place. If you lose them, you won’t be able to claim them as write-offs.


4 Tips for Small-Business Expense Tracking

Regardless of how you track your small-business expenses, there are ways you can optimize the process to make it simpler and more straightforward.

1. Keep Business and Personal Purchases Separate

Even if you don’t have a business bank account, you can still keep business and personal expenses separate.

For example, let’s say you go to Costco and purchase groceries for your family and office supplies for your business at the same time. Instead of making one large purchase, separate your items into two transactions — one for your household items and another for your business purchases.

This makes it much easier to calculate the total amount of your write-off, including taxes, fees, or discounts, instead of having to try to extract the information from a larger bill.

2. Ask for Receipts

When tracking expenses for business purposes, you need to make a habit of asking for (and keeping) receipts. This goes for any retailer that doesn’t provide digital receipts, like gas stations and restaurants.

As a small-business owner, you need to get used to asking for receipts and keeping them safe until you have a chance to scan or store them safely.

Any receipt you don’t ask for is an expense that you can’t claim when you file your taxes.

Even if you aren’t sure whether a purchase will qualify as a deductible business expense, it’s better to ask for a receipt and talk to your bookkeeper or accountant afterward rather than miss out on a potential deduction altogether.

3. Get Digital Receipts

Many retailers offer both digital and physical receipts. Whenever possible, opt for a digital receipt. They’re easier to document, track, and store than paper receipts.

Because stores send digital receipts to an email address, use a designated email address for business purchases. This will keep your personal inbox clean and your business expenses in one place.

4. Organize Your Expense Records

Keep your tax deduction records organized by year, category, and item to make filing your tax return simple and stress-free. If you keep receipts organized as you make purchases, it will be much easier to sort through and calculate them later on.

And, if you use an accountant to file your taxes, they’ll appreciate a straightforward and clean expense report to reference.


Final Word

Tax deductions are crucial for small-business owners. But you won’t qualify for write-offs if your business purchases aren’t sufficiently recorded and documented. Tracking your expenses using accounting software, business bank accounts, or manually will help you to prove purchases, stay on top of costs, and keep your records organized.

Keep copies of both paper and digital receipts to make your next tax return more affordable and easier to file.

Source: moneycrashers.com

How to Make End-of-Year Donations

Making a charitable donation at the end of the year–or any time of year–can be a win-win-win.

The organization you give your money to benefits. You get to enjoy the good feeling that comes with supporting a project or cause that you believe in. And, you may also be able to lower your tax bill.

This year, the rewards for giving may be especially sweet. Two new tax changes for 2021 can boost donors’ tax deductions for charitable giving, meaning they may be able to give more to charity at a lower net cost.

Here are some things you may want to consider when planning and making your end-of-year charitable donations.

What Qualifies as Charitable Giving?

In the eyes of the Internal Revenue Service (IRS), a charitable donation is a gift of money, property, or other asset that you give to a qualifying organization, known as a 501(c)(3). To find out if an organization you’d like to support is eligible to receive tax-deductible contributions, you can search for it on the IRS’s database .

You may want to keep in mind that money or assets given to political campaigns or political parties do not qualify as tax-deductible donations. In fact, no organization that qualifies as a 501(c)(3) can participate in political campaigns or activities.

Organizations that engage in political activities without bias, however, can still sometimes qualify. So, a group can educate about the electoral process and remain within guidelines. They just have to go about it in a nonpartisan way.

It’s also possible for the IRS to implement measures that can affect charitable donating. For example, there was a tax relief provision passed in the form of the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Under it, tax deduction limits shifted for both those individually and jointly filing. So, it’s essential to stay updated on current tax laws and provisions that may affect your charitable donations’ taxation.

Recommended: IRA Tax Deduction Rules

Can I Deduct My Year-End Charitable Donation?

In the past, charitable donations could only be deducted by tax filers who itemized their deductions. That means that rather than take the standard deduction, they chose the more complicated path of listing all of their eligible expenses.

However, the IRS has a special new provision that will allow individuals to easily deduct up to $300, and joint filers to deduct up to $600, in donations to qualifying charities in 2021, even if they don’t itemize.

This is basically an enhancement of the one-year tax break Congress put in for 2020 under the (CARES) Act that allowed a tax deduction for cash gifts to charity up to $300.

The difference is that for 2020, the deduction was limited to $300 per tax return. The new provision allows a married couple filing jointly to deduct up to $600 in cash gifts to charity for 2021.

The rules have changed for people who itemize as well. If you are itemizing on your return, the IRS has increased the limit for charitable tax deductions from 60% to 100% of your adjusted gross income (AGI). And, if you want to give more than that 100 percent threshold, the excess can be carried over into the next tax year.

Whether you’re looking to give $50 to your favorite local organization, or you’re considering a much larger charitable donation, these tax changes make it a particularly good time to do so.

Tips for Making End-of-Year Donations

To make the most of a charitable donation, here are some strategies you may want to keep in mind:

Making a Timely Donation

The deadline for charitable donations is December 31st. If you’re looking to deduct the donation in the current tax year, you will want to make sure your charity has ownership of whatever asset you are donating by the closing of business on the 31st. You may also want to make sure that your preferred payment method is accepted by the charity so it doesn’t get kicked back and cause delays.

Taking Advantage of Company Matching Programs

Your place of employment might have a matching program for charitable giving. They might, for example, match your donation amount dollar for dollar up to a certain amount. If so, it could significantly bump up the amount you could otherwise afford to give.

If you’re unsure about whether your company has a program, it can be worth reaching out to your HR department for further information.

Giving Rewards on Your Credit Card

If you are giving on a budget, you might consider donating rewards you earn on your credit cards, such as hotel points or airline miles. This can be a great way to use points or other rewards that would otherwise just expire. Many credit card companies, hotels, and airlines will make it easy to give your rewards to nonprofit organizations.

Recommended: Credit Card Rewards 101: Getting the Most Out of Your Credit Card

Donating Assets from your Brokerage Account

If you’re looking to lower your capital gains tax, you may want to consider donating assets from your brokerage account to a nonprofit. This may take some time and planning, but the benefits of donating an over-allocated position that’s outperforming can be worth it.

You may be able to receive tax advantages and rebalance your portfolio, while also helping an organization increase its assets.

Setting up a Recurring Donation

You can get a headstart on next year by creating a recurring contribution now. Many organizations allow you to donate monthly through their websites using a credit card, so you might be able to earn rewards at the same time. By establishing your donation plans now, you won’t have to even think about end-of-the-year giving next year.

Keeping Good Records

If you want to deduct your donation on your taxes, you’ll want to make sure you have the right receipts to back up the transaction.

For cash donations under $250, you’ll either need a bank record (like a canceled check or bank statement) or a written acknowledgment from the charity which includes the date and amount of your contribution.

For cash donations over $250, a bank record isn’t insufficient. Instead, you’ll need something in writing from the charity which includes the date and amount of your donation.

Noncash donations from $250 to $500 in value require a receipt that includes the charity’s name, address, date, donation location and description of items donated. If the noncash donation exceeds $500 in value, you’ll also need a record of how and when the items were acquired and their adjusted basis.

If the donation exceeds $5,000 in value, you’ll need to get a written appraisal from a qualified appraiser.

Speaking with a Professional

An accountant can help answer any questions you may have about how the new tax laws will impact your tax contribution, as well as help you make the most strategic and efficient charitable donation.

The Takeaway

Giving can be a good idea for a number of reasons, especially in 2021. In addition to helping a nonprofit organization meet its operating costs for the year, you can feel good about what you are doing with your money, and you may also benefit from special tax deductions.

Giving can also help you get the new year started on the right foot. If you’re looking for other ways to get your financial life in order (now, or any time of year), you may also want to consider signing up for SoFi Money®.

SoFi Money is a cash management account that allows you to earn competitive interest, spend, and save all in one place. And, since you won’t pay any account fees or other monthly fees, you can focus on putting your money towards more important things.

Start saving for the things in life that matter to you with SoFi Money.

Photo credit: iStock/ThitareeSarmkasat


SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC .
Neither SoFi nor its affiliates is a bank. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

7 Money Lies We Tell Ourselves

Do you think you’re telling yourself the truth about money? We may think we know the facts about our finances. But our beliefs can often overshadow the facts.

Our wishes, hopes and fears can tip the scales away from the truth. This makes it easier for us to believe what we want to about money — and it can happen without us even realizing it.

The “money lies” we tell ourselves can change the way we think and act when it comes to finances. And since most of us rarely talk about money with our friends and family, the money lies we tell ourselves stick around. That can lock us into destructive beliefs and reinforce poor financial habits.

But no matter what money lies we tell ourselves, it’s never too late to set the record straight. Let’s look at some of the most common money lies we all buy into at some point — and the truth behind them.

1 of 8

1. I’ll be happier when I have $_____.

Bundles of money stick out of a bucket.Bundles of money stick out of a bucket.

“With $___ in the bank (whatever amount you think is ideal), many of my problems would go away, and I’d be happier.”

Does this sound familiar?

Goals and target numbers for earnings, savings and budgets are great. But if you make the mistake of thinking some magic number will flip a happiness switch for you, think again.

When we tell ourselves this money lie, we put too much emotion into a single number. And we may be setting ourselves up for disappointment — both if we never get $__, and if we do get $__ and realize it doesn’t make us as happy as we thought it should.

The good news? Studies show that making progress toward our goals can be incredibly satisfying, regardless of whether we hit the target.

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2. I deserve it, regardless of whether I can afford it.

A woman holds many shopping bags and looks miffed.A woman holds many shopping bags and looks miffed.

“I work hard, and I don’t treat myself often.”

“I could kick the bucket tomorrow (YOLO).”

“I’m getting a great deal!”

These are just some of the rationalizations we use to convince ourselves that it’s OK to buy something.

Whatever legs this money lie stands on, it’s usually used to soothe the sting of expensive purchases — those that aren’t really essential — and perhaps items we know, deep down, we don’t really need.

3 of 8

3. I have strong financial willpower.

A woman chooses between an apple and a huge hamburger.A woman chooses between an apple and a huge hamburger.

When faced with temptation, most of us lie to ourselves that we’re great at resisting it. But, when was the last time you chose not to buy something you really wanted? When was the last time you made an impulse buy?

The average American spends at least a couple of hundred dollars a month on impulse purchases.

And we’re more likely to buy on impulse and spend more when we’re stressed. That’s probably why impulse spending shot up about 18% in 2020.

Plus, those of us who are shopping with credit cards are probably spending more on the regular basis than we realize. The average credit card shopper spends about 10% more with their cards than they would with cash. And that’s not even counting the cost of interest if the balance isn’t paid in full.

4 of 8

4. I’ll save more later.

A piggy bank with a sad face lies on its side.A piggy bank with a sad face lies on its side.

Most folks focus on buying what we need and want now, and we tell ourselves we’ll start saving for the future later. If we save anything at all, it’s likely to be whatever we have left over. In fact, fewer than 1 in 6 of us are saving more than 15% of our income, and 1 in 5 aren’t saving any money.

No matter the reason, when we tell ourselves this money lie and put off saving, we’re prioritizing the present over the future.

That can catch up with us on a “rainy day” or whenever we do start thinking seriously about retiring. By that time, there can be a lot of heavy lifting to play “catch up” with our savings — or it may even be too late.

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5. I have plenty of time to plan for my financial future (& I don’t need to think about it yet).

A drawing of a clock in the sand of a beach is washed away by waves.A drawing of a clock in the sand of a beach is washed away by waves.

The future can seem really far away when we’re looking 10, 20 or even more years out. When we feel like we have a lot of room between now and then, it’s easy to make excuses to not plan or save for it.

This money lie is an excuse for procrastination. It’s the rationale we use when we have a hard time managing our negative feelings or uncertainties about our financial futures. And it makes us turn a blind eye to the years of interest that we lose out on when we don’t plan.

Benjamin Franklin may have spoken best about the truth behind this money lie when he wisely said, “by failing to prepare, you are preparing to fail.”

6 of 8

6. There is good and bad debt.

A piggy bank with slips of IOUs sticking out.A piggy bank with slips of IOUs sticking out.

We tend to assign moral value to debt, thinking of mortgages and student loans as “good” debt, and considering credit card debt as “bad.”

This money lie gets us to think the wrong way about debt. All debt comes with some cost, and it’s critical to understand how every loan affects our current and future selves.

Instead of focusing on whether debt is “good” or “bad,” concentrate on the total cost of the interest over time (it’s often higher than you think) and on deciding whether the loan is really helping you achieve your goals.

About half of us seem to already be on track with that thinking, saying that we expect to be out of debt within one to five years.

7 of 8

7. Wanting more is bad.

Ladders lead up into the clouds.Ladders lead up into the clouds.

While I think we can all agree that obsessive greed is wrong, it’s not a bad thing to want more for you and your loved ones.

When we tell ourselves we shouldn’t want more than we have, we agree to settle for less. And we may be tricking ourselves into thinking it’s OK that we’re not doing something (or enough) to improve our financial situation.

This money lie holds us back and can make it hard to improve our financial behaviors.

When we frame wanting more as a positive motivator, it can be easier to take the chances or do the work needed to get to that next financial level we may want.

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How to Stop Losing Out to Costly Money Lies

Hands holding one-hundred dollar billsHands holding one-hundred dollar bills

How many of these money lies sound like something you’ve told yourself?

At some point, I think we’ve all tricked ourselves with at least one of them. Maybe we were rationalizing a decision, or we were trying to make ourselves feel better about what we wanted to do with our money. And we probably didn’t make the best financial choices as a result.

Here’s the truth: Honesty goes a long way with finances.

What we tell ourselves and what we believe about money influences our financial behaviors. If we’re not telling ourselves the truth, our money lies won’t just drain our wallets. They can affect our financial awareness and inflate our confidence. And they get in the way of maintaining or growing wealth.

When we recognize the money lies that we believe, we can reset our thinking, change our mindset and start taking action. And that sets us up to make better choices and make more progress toward our big financial goals.

P.S.: Sign up for my emails to continue the conversation. My subscribers get my best insights! Just email me at ian.maxwell@revirescowealth.com, and put SUBSCRIBE in the subject field.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
Investment advisory services offered through Virtue Capital Management, LLC (VCM), a registered investment advisor. VCM and Reviresco Wealth Advisory are independent of each other. For a complete description of investment risks, fees and services, review the Virtue Capital Management firm brochure (ADV Part 2A) which is available from Reviresco Wealth Advisory or by contacting Virtue Capital Management.

Founder & CEO, Reviresco Wealth Advisory

Ian Maxwell is an independent fee-based fiduciary financial adviser and founder and CEO of Reviresco Wealth Advisory. He is passionate about improving quality of life for clients and developing innovative solutions that help people reconsider how to best achieve their financial goals. Maxwell is a graduate of Williams College, a former Officer in the USMC and holds his Series 6, Series 63, Series 65, and CA Life Insurance licenses.Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Reviresco Wealth Advisory and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Source: kiplinger.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

10 Ways to Save Money on School Uniforms for Kids

According to the National Center for Education Statistics, 1 in 5 public schools required students to wear uniforms as of the 2017-18 school year. These can be anything from identical outfits marked with the school’s name or logo to a basic color scheme, such as plain white shirts and tan pants.

According to 2011 research from the University of Nevada, Reno College of Education, a school uniform policy can have many benefits for students. It can make it easier to get ready for school, boost self-esteem, reduce bullying, and improve classroom discipline. But it has one big downside for parents: the cost. According to CostHelper, a school wardrobe of four or five uniforms can cost anywhere from $100 to $2,000.

One reason uniforms often cost more than regular clothes is that parents have less choice about where to buy them. If you can only get your kids’ school wardrobes from the official school store, you must pay whatever that store charges. However, you can get around this problem with the right shopping strategies. The first tip to try: shopping secondhand.

Ways to Save With Secondhand School Uniforms

Clothes are one thing it nearly always pays to buy secondhand if you can. With school uniforms, that’s doubly true.

Since young children grow so fast, their outgrown uniforms can still have lots of life left in them. Naturally, these previously worn uniforms don’t look brand-new, but neither do most school clothes after a few weeks of wear. Secondhand school uniforms cost much less than new ones, and in some cases, they’re free.

1. Try Uniform Swaps

If you have two children attending the same school, the younger kid can wear the older one’s hand-me-downs. But if you have only one child or your kids go to different schools, you can end up with clothes in good condition and no one to hand them down to.

A uniform swap is a way to expand your hand-me-down family. By pooling resources with other parents, you can pass on your child’s outgrown uniforms to younger students at your school and receive uniforms from older students in turn.

Some schools hold official uniform exchanges. For example, at St. Catharine School in Ohio, you can trade in gently used school uniforms for larger sizes or pick up other people’s trade-ins at significantly reduced prices. Other schools, like St. Stephen’s Academy in Oregon, give parents points for their trade-ins, which they can use for purchases or donate.

If your child’s school doesn’t have an official uniform exchange, hold a clothing swap party of your own. Invite other parents over, lay out all your outgrown uniform items, and see who can use them.

If you don’t have the space to meet and exchange clothes in person, start a social media group where parents can post photos and descriptions of their kids’ outgrown clothes. When you find someone who has the size your child needs or needs the size you have to give, you can contact each other to arrange a pickup.

2. Shop at Thrift Stores

If you live in or near a large city with a large student population, there’s a good chance you can find outgrown school uniforms at local thrift stores. Check the stores closest to your child’s school to maximize your chances of finding them.

Even in smaller cities and towns, thrift stores are an excellent place to look for basic pieces that are often part of a school uniform. Dress shirts, solid-color polo shirts, and chino pants are likely to show up on their racks. You can’t count on finding the pieces you need in your child’s size, but if you do, they’ll be significantly cheaper than new clothes.

To find thrift stores in your area, do an Internet search on “thrift stores” or “thrift shops” with your town’s name or zip code. Also, check the websites of the largest store chains — such as Goodwill, Salvation Army, and Value Village — to find their nearest locations.

3. Find Sellers Online

If you can’t find suitable secondhand clothes for your child’s uniform at local stores, try looking online. Start consulting your local Craigslist and Facebook Marketplace groups in early July, and look for new listings every other day or so. That gives you roughly two months to find all the pieces you need to build a complete school wardrobe for your child. Just be sure to contact sellers quickly when you find something you need so someone doesn’t beat you to it.

Another reliable source for secondhand uniforms online is eBay. You can create saved searches for each specific garment your child needs, such as “navy shorts size 8,” and receive daily emails of all new listings for your saved search. You can pick up pieces one at a time or — if you’re lucky — find a lot of uniform clothing all in the same size.


Ways to Save on New School Uniforms

The biggest downside of secondhand shopping is that you can’t be sure of finding what you need. If the start of the school year is approaching and you still don’t have a complete school wardrobe for your child, don’t panic. There are ways to buy new uniform-appropriate clothes and still keep costs down.

4. Buy the Minimum

For starters, don’t buy more of any component than you really need. Your child may need a clean shirt for school every day, but kids can usually get away with wearing the same skirt, pants, or sweater several days in a row. Jackets and ties can go even longer between cleanings.

How many pieces your child needs depends on how often you intend to do laundry. Mothers discussing their kids’ school wardrobes on Mumsnet generally say they include:

  • Five to 10 shirts
  • Two to five sweaters
  • Two to five skirts or pairs of pants or shorts

On top of that, you can add one or two school blazers and one or two dresses or jumpers if your uniform includes these pieces. And your child also needs at least one pair of school shoes and enough socks and underwear to last the week.

If you shop smart, you can put together this minimalist kids’ wardrobe for less than the $240 average parents reported spending on back-to-school clothes in a 2019 National Retail Federation survey. CostHelper says it’s possible to find pants and skirts for as little as $5 each, tops for as little as $3, and shoes starting at $15. That’s less than $100 for the whole wardrobe.

5. Visit Cheaper Stores

If your school’s uniform consists of basics like solid-color tops and pants, there’s no need to buy them at the official school store. Many major retail chains sell uniform-appropriate clothes for kids at quite reasonable prices. In fact, several retailers offer lines of kids’ clothes designed explicitly for this purpose, such as:

6. Shop Online

If stores in your area don’t carry the school uniform pieces you need at prices you like, try shopping online. Some online retailers specialize in school uniforms, and others have sections devoted to them. Good places to shop online include:

  • Amazon. The e-tail giant has an entire section called The School Uniform Shop. It provides links to uniform-appropriate garments from many popular brands, including Nautica, Izod, and Dockers. Alternatively, you can search for “school uniforms” to find apparel for girls and boys. Check out these Amazon savings tips for more ways to save.
  • French Toast. Online retailer French Toast deals in school uniforms for all ages, which you can search by school or gender. The site also offers two- and three-packs of identical shirts or pants for a discounted price per piece.
  • Lands’ End. The school uniform shop at Lands’ End offers sturdy clothing in all sizes, from toddler to adult. Clothes are covered by the brand’s unconditional lifetime guarantee. There’s even a selection of adaptive garments for kids with disabilities. This apparel combines easy-to-use magnetic closures with decorative buttons for a uniform look.
  • Lee Uniforms. For teens and young adults, the Lee Uniforms store on Amazon offers school- and work-friendly pieces. The selection is limited, but the prices are excellent.
  • SchoolUniforms.com. As its name implies, SchoolUniforms.com specializes in uniform basics, from blazers to plaid pleated skirts. Garments come in a range of sizes to fit children ages 3 and up, including plus sizes.

When shopping for uniforms online, you can save still more by using a mobile coupon app like Rakuten or Ibotta. If you prefer to shop from a computer, install a money-saving browser extension like Capital One Shopping to help you find great prices and available coupon codes.

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

7. Wait for Sales

If your school has an official uniform store, call that store and see when it plans to offer discounts or promotions. In many cases, uniforms go on sale in October, after most parents have already bought their kids’ clothes for the year. You can save money on school uniforms by buying just enough pieces to get through September and waiting until October to stock up.

If the school uniform is a generic outfit available from many stores, keep an eye out for sales at all the stores in your area. Consider signing up for emails from your favorite local stores to let you know when uniform clothing goes on sale. Sometimes, these emails also provide coupons, which can boost your savings still more.

Timing your purchases can help at department stores too. Clothes often go on sale at the end of the season — for example, summer clothes in September or winter coats in March. If you plan ahead, you can save by buying school uniforms for next year during these end-of-season sales.

If you’re unsure when and where school uniforms are most likely to go on sale in your area, create a Google Alert for the term “school uniform sale” with your location or zip code. Whenever a new sale pops up, you’ll receive an email about it. You can also use the term “school uniform clearance” to learn about end-of-season clearance sales.

8. Check Out Clearance

Even when a department store isn’t having a sale, there’s usually a clearance rack you can check for marked-down clothing. Since school uniforms tend to be plain clothes without a lot of eye appeal, there are often at least a few pieces that don’t sell and end up on the clearance rack.

For example, the frugal-living bloggers at Life Your Way and Joyfully Thriving both report finding uniform pieces for less than $5 on the clearance racks at stores like Gap and Macy’s.

9. Buy Bigger Sizes

If your child is still growing, there’s a good chance the uniforms you buy now won’t fit by the end of the year. However, you can make them last as long as possible by sizing up.

Choosing clothes with an extra inch to spare in the legs and sleeves gives your kid room to grow into them. Some uniform pants and skirts come with adjustable waistbands, so they’ll accommodate your child’s growth in width as well as height.

And if you find a great price on a particular piece your child needs, you can buy next year’s sizes now. Assuming they plan to attend the same school for the foreseeable future, you know they’ll need the same uniform next year, so buying multiple sizes at once lets you get them all at the best possible price.

10. Buy to Last

If your child has stopped growing but still has a few more years of school to go, you can save money by choosing quality clothing that will last. These well-made pieces may cost more upfront than cheaper brands, but they pay off in the long run. A $50 blazer that wears out after one year costs $50 per year, but a $100 blazer that lasts for four years costs only $25 per year.

For example, clothes from Lands’ End come with a lifetime guarantee. If they don’t last your child until graduation (or they outgrow them), you can return them for a full refund. Clothing from Dickies, available at Walmart, is also guaranteed for its “expected life,” though they don’t define the term. Clothes from Target’s Cat & Jack line come with a one-year guarantee.

Another way to make school uniforms last as long as possible is to choose the darkest colors allowed. On light-colored clothes, minor spots or stains show up more vividly, making them unfit for school wear. Darker-colored clothing, such as maroon, navy, or forest green, hides these minor flaws.


Final Word

Saving on school uniforms doesn’t end when you’ve made your purchases for the year. If your kid’s uniforms become unwearable due to rips, stains, or lost buttons, you’ll have to replace them in a hurry — possibly at full price. To avoid this problem, handle school uniforms with care to make them last as long as possible.

Always follow the washing instructions and line dry or dry flat when possible to avoid wear and tear from the dryer. Treat stains promptly, repair rips, and replace buttons.

If your sewing skills are up to it, you can even get another year or two of life out of garments by letting down the cuffs or adjusting the waistband to fit your child’s larger size. Following all these steps reduces waste, so you can also pat yourself on the back for being green.

One final tip: Label all your kids’ school clothing with their names. When all the students in a school wear the same outfit, it’s easy for them to grab someone else’s sweater or jacket by mistake. Sewing in a name tag or writing on the care tag with a permanent marker increases the chances misplaced clothes will find their way home again.

Source: moneycrashers.com

How to Have a Baby Shower on a Budget

It’s an honor to be asked to throw a friend or family member a baby shower. But along with that honor, often comes a hefty price tag. Between the food, flowers, decor, and favors, the cost of these soirees can add up quickly.

Fortunately, you don’t need to spend a fortune to throw a fun and memorable celebration for soon-to-be parents and their loved ones. From scoring a cheap (or free) venue to DIYing the centerpieces, there are a number of ways to cut baby shower costs without looking like you cut any corners.

Tips for Throwing a Great Baby Shower on a Budget

These inexpensive baby shower ideas can help you throw a memorable celebration for a mom-to-be and help her become better financially prepared for a baby.

Coming up with a Baby Shower Budget

Before you begin the planning process, it can help to determine the total you can spend on the event and then create a budget. You may also want to find out if family members from either side are willing to chip in financially or by offering to help make something for the party. When setting up your baby shower budget, you’ll likely want to include: the venue, invitations, decorations, food and drinks, entertainment and/or games, prizes and party favors.

Finding a Free (or Low-Cost) Venue

A baby shower doesn’t have to be at a fancy restaurant, hotel, or banquet hall to be festive. It could take place at your, or someone else’s, home. If you’re hosting a baby shower in warm weather. You might consider having it outdoors, such as in your backyard. You could even host a more casual shower with an outdoor barbeque or even a poolside party.

Other low-cost locales options include: a nearby park, the clubhouse of your (or someone else’s) apartment complex, or the meeting room at someone’s place of business.

Limiting the Baby Shower Guest List

Generally, the more people you invite to the shower, the more money you will spend. To keep costs in check, you may want to consider limiting the invite list to the parent-to-be’s closest family and friends. A smaller group not only cuts down on costs, but can also help to create a more intimate gathering that allows the guest of honor to spend time with each guest. It can be a good idea, however, to run the invite list by the expectant mom to be sure that you don’t exclude any important people.

Going Digital With Invitations

You can save money on baby shower invitations by using a digital service, such as Evite, MyPunchbowl, or Paperless Post. These sites and apps typically allow you to choose from a range of free baby shower invitation templates or, for a small fee, upgrade to a more elaborate design. These sites also make it easy to keep track of responses. And, guests will likely appreciate the ability to RSVP with the click of a button. You may, however, want to send paper invites to older guests, particularly if they don’t use an email address often.

Ditching the Caterer

Feeding guests typically takes up the biggest portion of a baby shower budget. One way to help keep the cost of food down is to forgo the caterer and head to your local warehouse club (like Costco or Sam’s Club). You’ll likely be able to create a delicious spread of appetizers, finger foods, and desserts for a lot less than ordering trays from a catering company or restaurant.

Timing it Right

You can also cut down on food costs by not holding the shower right at lunch or dinner time. That way, guests won’t arrive expecting a full meal, and you’ll be able to serve a lighter menu that includes simple appetizers and snacks. A late-morning party can be particularly wallet-friendly–you might simply offer coffee, juice, fruit, and pastries. Or, you might opt for an afternoon tea and serve sweets and finger sandwiches.

Keeping the Cake Simple

A gourmet bakery cake can look beautiful, but it could easily bust your budget. According to CostHelper , an average bakery cake runs around $3 to $4 a slice. To cut costs without sacrificing on taste, you might consider ordering a cake at your local grocery store’s bakery or the bakery at a wholesale club, then having it personalized (which the store will often do free of charge).

DIYing Centerpieces

Fresh flowers look lovely, but they can get expensive if you order arrangements from a professional florist. Instead, you may want to head to your local farmers market, grocery store, or warehouse club to find flowers at reasonable prices that fit your color scheme, then make your own centerpieces. A simple way to get great results is to use flowers in the same color family (like shades of pink or all white). You can pick up vases at the dollar store, or go with Mason jars, which look trendy and can be used for other purposes after the shower is over.

Printing Decor and Games for Free

Instead of racking up a big bill at the party store, you may want to comb the web for free baby shower printables. You can likely find food signs, games (like baby shower bingo), decorations, and favor tags that you can simply print right from your computer.

Making Edible Favors

Sweets can make great baby shower favors, and you can easily bake them yourself without spending a lot. You may also find that there is a family member who would be delighted to take on this task. Edible favors can be as simple as iced sugar cookies (in your color scheme) or as elaborate as cake pops that look like baby rattles.

Considering a Virtual Baby Shower

If the guest of honor’s family and friends are spread out all over the country, having a virtual baby shower is one way to include everyone that’s important, and also keep costs down. You can set a celebratory mood by choosing a Zoom background that fits the theme of your shower, and also include a link so guests can download the background as well. Friends and family can watch the mom-to-be open gifts that were sent to her ahead of time. You can also organize games throughout the virtual baby shower and create a digital guest book that attendees can sign and share their words of wisdom for the expecting parents.

The Takeaway

You can plan a memorable baby shower even on a limited budget. And, spending less doesn’t mean the event will be any less special.

Some easy ways to trim the cost of having a baby shower include: hosting the shower in your home or backyard, heading to your local warehouse club (for food, flowers, and even the cake), using free printables for decor and games, and giving homemade sweets as favors.

You can also make a baby shower more affordable by setting a budget and saving up enough money to cover it in advance (so you don’t end up relying on credit cards).

Looking for a good place to build your party fund? A SoFi Money® cash management account can be a good option. With SoFi Money’s “vaults” feature, you can separate your savings from your spending while earning competitive interest on all of your money. You can even set up separate vaults for separate savings goals.

Start saving for your next milestone celebration with SoFi Money.

Photo credit: iStock/vejaa


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Source: sofi.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