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

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.

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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.

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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.

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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.”

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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.

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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

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

58-Year-Old Landlord Says Goodbye to Tenants

Meet Frank and Linda, (not their real names). Frank and Linda have been married for 30 years and had begun having conversations around making plans for Frank to leave Corporate America before Frank turned 60. Linda would wind up her teaching career around the same time Frank would retire, and for the first time in their lives they realized that they would soon have the time they always wanted together.

Frank wanted to spend a month in Europe like he had always talked about, and Linda just wanted to go to the beach; sleep late, read books, boil shrimp and enjoy the different wines from her wine club recommendations. “Let’s do Europe in the spring when the weather is cooler,” Frank suggested, “and then we can do the entire summer at the beach when we’re ready for our warm, sunny, lazy days on the beach.” Frank’s idea sounded perfect to both.

And then it hit them: They’re not going anywhere.

Instantly Frank and Linda re-centered around the reality of their real estate portfolio. During their careers, Frank and Linda has acquired three rental homes — a storage facility, a four-plex apartment and two vacant lots in the subdivision where they lived. Frank had watched his father speculate and gamble in the stock market and lose big more than once. Frank was currently helping his dad with medical costs and carried a bit of resentment for his dad’s fast-and-loose ways with money when his dad was younger. At 25, Frank had decided he would build his own personal wealth in real estate, something he reasoned would always be there for him; and it had. Frank and Linda’s real estate portfolio, excluding their primary residence, was now valued at over $2.6 million and represented the lion’s share of the wealth they would rely on for their retirement income to supplement Frank’s Social Security and Linda’s pension as a teacher.

“How about we just sell it all,” Linda suggested, “After all, the market is so good right now.” This seemed like possibly a good idea to Frank. “Then we will have the time and the money to do what we want,” Linda reasoned. Frank said that sounded good but wanted to make sure he knew what the taxes would be, because he knew there could be a fair amount to pay were they to sell.

CPA Delivers Good News and Really Bad News

Frank and Linda had a long-standing relationship with a local CPA who had helped with all the accounting, bookkeeping and filings their real estate holdings had required. Frank offered to reach out to the CPA the next morning and run some numbers on what the tax bill might look like were they to sell all their investment real estate holdings.

Two weeks later Frank went to see his longtime CPA and friend, Lanny. Lanny pulled up Frank and Linda’s tax return from the previous year and started running calculations on all the real estate that the couple have been depreciating. After what seemed a solid half hour of the CPA banging on his keyboard, he looked up, squinted and leaned across his desk. “Well, I have good news, and I have not-so-good news. The good news is, you and Linda have made a lot of money on this real estate. The bad news is you’re going to get killed on capital gains taxes and depreciation recapture.”

Lanny went on to explain that since the total gains were large sums, those gains would be taxed at the current 20% capital gains rate, plus the 3.8% Net Investment Income Tax. He went on to say that depreciation recapture was taxed even higher, at 25%.

“So how bad is it?” Frank asked.

“Just over $500K,” Lanny murmured.

“You mean that Linda and I have to write a check to the IRS for more than $500K if we sell our real estate?” Frank was almost shaking.

In his head he was thinking the number might be closer to $200K, which he thought he might be able to tolerate. The very idea of writing a check to the IRS for more than half a million dollars left Frank angry, astonished and perplexed all at the same time.

How about a 1031 Exchange?

“There’s always a 1031 Exchange,” Lanny offered as what seemed to Frank a flimsy condolence. Frank knew of the 1031 Exchange, but that would just mean selling his real estate and buying other real estate that he and Linda would have to keep up with. Sure, they could sidestep $500K of tax, but he and Linda would have all the same headaches of property ownership, just with different addresses. Tenants are tenants, Frank said to himself, and all that goes with them. No, a 1031 Exchange was not going to solve their problem. Selling and buying again might look good on a spreadsheet, but it was not going to give him and Linda the freedom they wanted.

Several weeks went by for Frank and Linda without mention of their real estate assets. Then, one evening after dinner, Frank and Linda were sitting in their living room where Frank was watching baseball and Linda had her laptop out looking at travel blogs she followed online. Frank’s team was losing badly enough where he was considering turning it off. At that precise moment Linda said, “Frank, what’s a DST?”

 “I don’t know, some kind of pesticide,” Frank quipped.

 “Frank, it says here in this article that I’m reading that a DST is a passive form of real estate ownership that qualifies for a 1031 Exchange. The article says that many people today are opting to sell their real estate using a 1031 Exchange to move their equity into Class A apartment buildings, self-storage portfolios, medical buildings, industrial warehouses and even things like Amazon distribution centers, Walmart stores and Walgreens buildings. Apparently, these investments offer solid monthly income to investors and attractive opportunities for long-term growth,” Linda continued. “Frank, this could be it. This could be what we are looking for.”

Frank and Linda’s dilemma is not uncommon. Perhaps it was an aging population that was considered when in 2002 the state of Delaware passed the Delaware Statutory Trust Act. Revenue Ruling 2004-86 soon followed and allowed for DSTs to qualify as “Replacement Property” for the tried-and-true 1031 Exchange (part of our tax code since the 1920s). Many DSTs offered to real estate investors are capitalized with $100 million or more, and smaller investors can now access these offerings in smaller fractionalized amounts as low as $100,000. Properties include medical buildings, Class A multi-family apartment buildings, hotels, senior living, student housing, storage portfolios and industrial warehouse buildings. Nationally known tenants are typically companies like Walgreens, Hilton and Amazon, among others. Often, investors might feel better with a large and stable company like Amazon guaranteeing their monthly income, rather than the tenants who last skipped out on rent, leaving them high and dry.

Some Caveats to Consider

All real estate investing, including DSTs comes with risk, and investors should do their homework, perform their own due diligence, and read the Private Placement Memorandum, (PPM) before investing any capital.  DST offerings are typically illiquid and would not be considered suitable for a large portion of someone’s wealth when liquidity is needed. Because DSTs are regulated and are “securities,” they must be purchased from a Registered Investment Adviser and/or a Broker Dealer Representative who holds a proper securities license, Series 7 or Series 65. 

Many times, we are asked who can invest in a DST. Accredited Individuals and certain entities qualify. An individual must have a net worth in excess of $1 million, excluding his or her home, OR an income over $200K per year for the last two years. If married, the combined income required is $300K. The income is required to be “reasonably expected” going forward.

For the right person in the right situation, a DST might be the perfect answer to a common dilemma faced today by many real estate investors across America.

For more information, please visit www.Providentwealthllc.com or www.Provident1031.com.

Chief Investment Strategist, Provident Wealth Advisors

Daniel Goodwin is the Chief Investment Strategist and founder of Provident Wealth Advisors, Goodwin Financial Group and Provident1031.com, a division of Provident Wealth. Daniel holds a series 65 Securities license as well as a Texas Insurance license. Daniel is an Investment Advisor Representative and a fiduciary for the firms’ clients. Daniel has served families and small-business owners in his community for over 25 years.

Source: kiplinger.com

5 Ways to Get Amazon Prime for Free

Amazon Prime member holding packages
alphaspirit.it / Shutterstock.com

Shopping on Amazon can be convenient, especially if you are still spending more time at home amid the coronavirus pandemic. You can get anything from frozen pizza to light bulbs delivered to your door at the click of a button.

An Amazon Prime membership is even more convenient. Perks include not just faster shipping but also access to free e-books, music, file storage and more, as we detail in “These Are the 9 Best Benefits of Amazon Prime.”

While the convenience is great, the cost of membership may give you pause. In 2018, the online retailer raised the price of an annual Prime membership from $99 to $119 per year. For monthly subscribers, the cost went from $10.99 to $12.99 per month.

If you want to pay less but still enjoy the convenience of Amazon Prime, there are a few ways to get a free membership.

1. Get a free trial

If you want to try Amazon Prime to see if it’s worth paying for a membership, sign up for a free 30-day trial.

This is an option for people who are new to Prime as well as people who were Prime members in the past but have not been a member in the past 12 months. Just remember to cancel the trial before the 30 days is up if you decide you don’t want to pay for a membership.

Keep in mind that you can’t use a checking account or prepaid credit card to sign up for your trial: Your Amazon account must have a credit card.

However, you can use different email addresses to get multiple free trials, at least according to a 2018 Vice report. Again, remember to cancel each trial before it ends to avoid being charged for a membership.

If you’re a college student, you can sign up for a free Prime Student trial, which lasts six months. A Prime Student membership also costs less than a regular Prime membership if you decide to continue after your trial ends — $6.49 per month.

2. Use free Amazon gift cards

If you keep your Amazon membership after the free trial ends, consider paying for it with Amazon gift cards. There are various ways to get them for free. Check out the options in “8 Ways to Get Amazon Gift Cards for Free.”

3. Use credit card rewards

If you have a cash-back credit card, you could use your accumulated cash back to pay for a Prime membership — which kind of feels like you are getting Prime for free.

If you sign up for the Amazon Prime Rewards Visa Signature card, you will earn 5% cash back on purchases at Amazon and Whole Foods Market, and 1% or 2% everywhere else. If you spend $2,400 in a year at the 5% rate, you will earn $120 cash back — enough to cover the cost of a one-year annual membership.

If you’re in the market for a new card, stop by Money Talks News’ Solutions Center and use the free credit card comparison tool.

4. Switch cellphone plans

Looking to switch cellphone carriers? Some wireless providers offer Amazon Prime as a perk for signing up for select plans.

For example, Metro by T-Mobile gives customers Amazon Prime for free with select plans.

For more help finding the right plan for you, check out Money Talks News’ free cellphone and wireless plan comparison tool.

5. Share an account using Amazon Household

If someone in your household has an Amazon Prime membership, you can ask them to share it with you via Amazon Household.

Each of you keeps your own Amazon account, but the two accounts are linked, giving you access to select Prime benefits. They include:

  • Prime Shipping
  • Prime Video
  • Prime Reading
  • Amazon Photos
  • First Reads
  • Audible Channels
  • Prime Now
  • Other discounts and exclusives

Keep in mind that using the Amazon Household feature means sharing payment methods.

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

Source: moneytalksnews.com

The 6 Best Ways to Save Money for Kids

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

Planning for Your Kids’ College Savings and Future Expenses

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

5 Ways to Save Money For Your Kids’ College Education

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

1. 529 College Savings Plans

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

Prepaid Tuition Plan

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

Education Savings Plan

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

2. Roth IRA

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

3. UGMA and UTMA Accounts

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

Uniform Gift to Minors Act (UGMA)

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

Uniform Transfers to Minors Act (UTMA)

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

4. Brokerage Account

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

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

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

Additional Ways to Save Money for College

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

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

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

Frequently Asked Questions (FAQs) 

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

When Is the Best Time to Invest Money for College?

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

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

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

How Much Money Should I Save for My Child?

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

The Best Way to Save Money for Kids

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

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IRS Is Sending More Unemployment Tax Refund Checks This Summer

If you received unemployment benefits last year and filed your 2020 tax return relatively early, you may find a check in your mailbox soon (or a deposit in your bank account). The IRS started issuing automatic tax refunds in May to Americans who filed their 2020 return and reported unemployment compensation before tax law changes were made by the American Rescue Plan. The tax agency has already sent millions of refunds, but additional tax refund checks will be sent through the summer.

The American Rescue Plan Act, which was enacted in March, exempts up to $10,200 of unemployment benefits received in 2020 ($20,400 for married couples filing jointly) from federal income tax for households reporting an adjusted gross income (AGI) less than $150,000 on their 2020 tax return. If you received more than $10,200 in unemployment compensation last year, any amount over $10,200 is still taxable.

The IRS has identified over 10 million people who filed their tax returns before the plan became law and is reviewing those returns to determine the correct amount of tax on their unemployment compensation. For those affected, this could result in a refund, a reduced tax bill, or no change at all. (You can use the IRS’s Interactive Tax Assistant tool to see if payments you received for being unemployed are taxable.)

The IRS is recalculating impacted tax returns in two phases. It started with tax returns from single taxpayers who had relatively simple returns, such as those filed by people who didn’t claim children as dependents or any refundable tax credits. Joint returns filed by married couples who are eligible for an exemption up to $20,400 and others with more complex returns were shifted to phase two.

Remember, though, that the tax exemption only applies to unemployment benefits received in 2020. So, if you receive unemployment compensation in 2021 or beyond, expect to pay federal tax on the amount you get.

Refunds for Unemployment Compensation

If you’re entitled to a refund, the IRS will directly deposit it into your bank account if you provided the necessary bank account information on your 2020 tax return. If valid bank account information is not available, the IRS will mail a paper check to your address of record. (If your account is no longer valid or is closed, the bank will return your refund to the IRS and a check will be mailed to the address the tax agency has on file for you.) The IRS says it will continue to send refunds until all identified tax returns have been reviewed and adjusted.

The IRS will send you a notice explaining any corrections. Expect the notice within 30 days of when the correction is made. Keep any notices you receive for your records, and make sure you review your return after receiving an IRS notice.

The refunds are also subject to normal offset rules. So, the amount you get could be reduced (potentially to zero) if you owe federal tax, state income tax, state unemployment compensation debt, child support, spousal support, or certain federal non-tax debt (i.e., student loans). The IRS will send a separate notice to you if your refund is offset to pay any unpaid debts.

Should I File an Amended Return?

Although the IRS says there’s no need to file an amended return, some early filers may still need to, especially if their recalculated AGI makes them eligible for additional federal credits and deductions not already included on their original tax return.

The IRS, for example, can adjust returns for those taxpayers who claimed the earned income tax credit and, because the exemption changed their income level, may now be eligible for an increase in the tax credit amount which may result in a larger refund. That said, taxpayers will need to file an amended return if they didn’t originally claim the tax credit, or other credits like the additional child tax credit, but now are eligible because the exclusion changed their income, according to the IRS. These taxpayers may want to review their state tax returns as well.

E-Filing Your 2021 Tax Return

Next year, when you try to e-file your 2021 tax return, you will have to sign and validate your electronic return by entering your prior-year AGI or your prior-year Self-Select PIN. If you use your AGI, make sure to use the AGI as originally reported on Line 11 of your 2020 Form 1040 or 1040-SR. Don’t use the corrected AGI if the IRS adjusts your 2020 return to account for the unemployment exclusion.

Withholding from Unemployment Compensation

Again, the $10,200 exemption only applies to unemployment compensation received in 2020. So, to avoid a big tax bill when you file your 2021 return next year, consider having taxes withheld from any unemployment payments you receive this year.

Contact your state unemployment office to have federal income taxes withheld from your unemployment benefits. You may be able to use Form W-4V to voluntarily have federal income taxes withheld from your payments. However, check with your state to see if it has its own form. If so, use the state form instead.

Victims of Unemployment Fraud

Whenever the government starts sending checks, criminals will try to get their hands on some of that money. That’s certainly the case with the unemployment compensation tax refunds. The good news is that you won’t be punished if a crook uses your name and personal information to steal a tax refund from Uncle Sam.

So, for example, if you received an incorrect Form 1099-G for unemployment benefits that you didn’t receive, the IRS won’t adjust your tax return to add the unemployment compensation to your taxable income. You should still report the fraud to the state workforce agency that issued the incorrect form, though.

What About State Taxes?

Just because the federal government is waiving taxes on the first $10,200 of your 2020 unemployment benefits, that doesn’t mean your state will too. To see if your state has adopted the federal exemption for 2020 state tax returns, see Taxes on Unemployment Benefits: A State-by-State Guide.

Source: kiplinger.com

5 Strategies for Paying Off Car Loan Early

Is your monthly car payment a burden to your budget? Paying off your car loan early can earn you much-needed financial freedom and save you potentially hundreds (or thousands) of dollars in would-be interest. 

You can pay off your car loan early using several effective strategies, but before you do, consider any potential penalties and effects to your credit score.

The True Cost of a Car Loan

It’s no secret that cars are our worst big-ticket investment. Unlike houses, which typically increase in value over time, and education, which theoretically opens the door to higher earning potential, cars lose their value over time. In fact, a new car depreciates in value as soon as you drive it off the lot and will lose 20% to 30% of its value in the first year.

That’s a big deal, especially given the average cost Americans are spending on new cars in 2021. According to KBB, that hard-to-swallow number is over $40,000, up more than 4% over 2020.

That means Americans are shelling out $40,000 for a car that, in a year, will be worth anywhere from $28,000 to $32,000, representing an $8,000 to $12,000 loss.

But there’s more than just the sticker price to consider. In addition to sales tax (average of 10.12% in 2020, though it varies by state), be prepared to pay interest on your car loan. Right now, the average car loan interest rate (also referred to as APR, the annual percentage rate, though there’s a difference) is over 4%.

APR includes the interest rate, in addition to other fees, like loan origination fees or mortgage insurance. You should use the APR, not the flat interest rate, when calculating what you’re paying.

Your APR will depend on the current market and your credit score. The better your credit score, the lower your APR. If you have a weak credit score and can put off buying a car, it is advisable to build up your credit score before applying for a loan.

For 2021, rates are expected to hover between 4% and 5% for 48-month (four-year) and 60-month (five-year) loans. 

Car Loan Calculator: An Example

Interest on a car loan adds up. Let’s take the $40,000 new car as an example, with a $995 dealer fee. Assume you put $2,000 down and have a tax rate of a clean 10% and an APR of 5%. You’ve agreed to pay off the loan over 60 months, or five years. (The typical car loan is anywhere from three to seven years; the shorter the loan period, the higher the monthly payment.)

In this scenario, the total cost of the vehicle after tax and dealer fees is $44,995, minus your $2,000 down payment. That leaves $42,995 to be financed. Given the 5% interest rate over 60 months, your monthly payment would be $811.37.

Over 60 months, you will end up having paid $50,682.20 (including down payment) for a car that, with taxes and dealer fees, cost just $44,995. That means, over five years, you’ve paid $5,687.20 in interest. 

And let’s just ignore the fact that, due to depreciation, that car that you’ve just paid $50,000+ on is now worth just $18,752.41 (average value of 37% of original cost after five years).

Use The Penny Hoarder’s car loan calculator to figure out how much you’ll pay with real-life numbers that match your scenario.

How Car Loan Interest Rates Work

Paying off your car loan early, if you can afford it, seems like a no-brainer then. However, before you start strategizing about how to pay off your car loan ahead of schedule, do some digging to determine what kind of car loan you have.

In an ideal world, your loan will be a simple interest loan. If you have not yet purchased your car, only consider lenders that will offer you a simple interest loan. This means the interest is calculated entirely on the principal balance of the loan.

But if your lender charges precomputed interest, that means they will calculate how much you will pay in interest over the life of the loan and include that in your total balance. That means, even if you pay off your car early, the payoff quote will include all the interest you would have paid had you kept the loan open. In this case, there are absolutely no financial savings in paying your car loan off early.

One other element of your loan to research is payoff penalties. Payoff penalties are legal in 36 states and allow lenders to charge you a penalty (usually a fixed percentage of the remaining balance) for paying off your car loan early. In this case, it may be more expensive than what you would have paid in interest over the life of the car loan.

Will Paying Off Your Car Loan Early Hurt Your Credit Score

It is not likely that paying off a car loan early will hurt your credit score, but it could be keeping you from growing your credit score. Regular, on-time payments account for roughly 35% of your FICO credit score, making it the most important factor. Making monthly payments on a car loan is a great way to show lenders you are responsible with repaying your debts.

In addition, lenders like to see a nice mix of credit (mortgage, car loan and credit cards are the big three). Keeping your car loan open also helps extend the length of your credit history. If you have no other open credit (like a credit card), keeping your car loan open may be advantageous in building up your score if you eventually intend to buy a house.

5 Strategies for Paying Off Your Car Loan Early

If you have a simple interest car loan, your credit is in good standing and your loan doesn’t have any payoff penalties, it may be wise to pay off your car loan ahead of schedule. Not only will you avoid spending heaps of money on interest, but it will also give you the financial freedom of hundreds of dollars back in your monthly budget.

The best advice for paying off a car loan early: treat it like a mortgage. If you are a homeowner, you have likely heard that making an extra (13th) payment toward your mortgage principal every year can shave years off your loan. If you pay even more toward the principal each year, you can easily get your 30-year mortgage down to 15 years—and you’ll be able to drop PMI (private mortgage insurance) costs much earlier.

Of course, home loans tend to be much bigger than vehicle loans, so the potential to save is much larger, but the logic works the same with your car loan.

These strategies for early payoff are all effective, if done right:

1. Make One Large Extra Payment Every Year

If you can count on your grandma slipping a fat check into your Christmas card every year without fail, don’t use that money to splurge on alcoholic eggnog (OK, maybe one bottle). Instead, apply it directly to your car loan as a lump sum.

If you have autopay scheduled online, you can log into your account and simply arrange to make a one-time payment. If you’re old-fashioned and pay by phone or mail, simply call your lender and let them know you’d like to make an extra, one-time payment toward the principal.

Apply this logic to any unbudgeted (aka, not-planned-for) funds, like a bonus at work or a tax refund.

2. Make a Half Payment Every Two Weeks

Talk with your lender to see if you can switch to biweekly payments, instead of monthly. If your lender allows you to pay half of your monthly loan amount every two weeks, you will wind up making 26 half payments. Divide 26 by 2, and you get 13 full months of payments, paid over 12 months. That means, by the end of the year, you will have essentially made an extra car payment.

Just check your budget first to ensure that kind of payment plan is feasible.

3. Round Up

Rounding up to the nearest $50 or even $100, if you can swing it, is a great way to add extra money every month to the principal. For example, if your monthly payment is $337, you could round up to $350 or even $400 to essentially pay an extra $13 or $63 a month. This will wind up knocking a few months off the life of your loan.

If you have autopay scheduled, log onto your loan platform and see if you can add the additional funds toward the principal each month so you don’t even have to think about it.

4. Resist the Urge to Skip a Payment

Some lenders may let you skip one or two payments a year. So kind of them, right? Wrong. They do this knowing it will extend the life of your loan, meaning they will rake in even more of your hard-earned cash in interest fees.

Unless you fall on very hard times, fight the urge to skip a payment. You will wind up paying more in the end if you do.

5. Refinance, but Exercise Caution

If you had a poor credit score when you bought your car and opted for a seven-year loan to keep payments low, it might make sense to refinance. Perhaps you’re two years into the loan, you’ve got a higher-paying job, and your credit score is in great shape. You could potentially refinance at a lower APR and build the loan out over 36 months, saving you two years and lots of money in interest.

But borrower beware: Don’t refinance to get a lower monthly payment by extending a loan, as you will end up just paying more in interest. 

When You Shouldn’t Pay Off Your Car Loan Early

As we’ve seen, it doesn’t always make sense to pay off your car loan early. But there are more reasons to hold your horses than just payoff penalties and precomputed interest.

Here are some other reasons not to pay off your car loan early:

  • Lack of emergency savings. Bankrate reported early in 2021 that most Americans could not afford a $1,000 emergency. Just 39% have enough to cover such an unexpected expense. If you are a part of that 61% without a well-padded emergency fund, prioritize adding funds to a high-yield savings account to protect yourself and your family should the unthinkable happen. And it’s not just your family’s medical emergencies; you may need to cover a deductible on your renter’s insurance in the case of a break-in, the cost of an unexpected car repair or even a terrifying trip to the vet when your dog eats something he shouldn’t.
  • Higher-interest loans. If you have a reasonable interest rate on your car loan but are drowning in credit card debt, focus on the debt that has the highest interest rate. Credit cards historically have interest rates in the high teens, so they make the most sense to pay off first. If you are free of credit card debt but have a mortgage or student loans, compare those interest rates to that of your car loan to figure out which makes the most sense to pay down with extra funds.
  • Lack of credit history. If you refuse to get a credit card and don’t yet have a house, a car loan is your best bet for building your credit score. Keeping your car loan open could positively affect your credit score.
  • Investments. For most drivers, car loan APRs are not terrible. If you have some extra funds and are thinking about paying off your low-interest car loan, consider instead investing in your retirement fund or even buying a few stocks on your own. The average stock market return is about 10%. Obviously, you could wind up losing money, but in general, if you invest and hold, over time, you should expect your money to grow.

Timothy Moore is a managing editor for WDW Magazine, and a freelance writer and editor covering topics on personal finance, travel, careers, education, pet care and automotive. He has worked in the field since 2012 with publications like The Penny Hoarder, Debt.com, Ladders, Glassdoor, Aol and The News Wheel. 

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Source: thepennyhoarder.com

3 Ways to Listen to Free Music Online – Downloads, Streaming & Radio

Back in the day, there were only two ways to listen to recorded music. You could tune your radio to a local station and hear whatever song happened to be playing, or you could go down to the record store and buy a copy of your favorite songs on a vinyl disc.

Today, that sounds quaint. According to The Guardian, digital music downloads overtook sales of physical recordings on CD or vinyl way back in 2012. More recently, even digital downloads have lost ground to music streaming services. In 2020, streaming accounted for 85% of all the music industry’s revenues, according to the Recording Industry Association of America.

All this technology has made listening to music significantly cheaper. According to a 2017 Nielsen report (via Digital Trends), the average consumer spends only $156 on music each year. Savvy consumers know there are several ways they can get most of their digital music for free — leaving more money in their budgets to enjoy a live concert or two.

How to Listen to Music for Free Online

There are three primary ways to get your favorite music for free online. Which one you choose depends on what you’re looking for.

1. Streaming Music Online

Today, streaming services are indisputably the most popular way to listen to music. With a streaming music service, you don’t own the songs you play, but on the plus side, you’re not limited to the number of tracks you can fit on your phone or MP3 player.

Streaming services can take several forms. Some are subscription services that play music selected for you, some are more like radio stations, and some simply play tunes on demand. However, many online music sources blur the boundaries between these categories.

Internet Radio

Internet radio stations work the same way as old-school radio: They select songs, and you listen to whatever pops up. But instead of being limited to the few stations in range, you can choose from a vast list of specialized stations that suit particular musical tastes. Also, if you hear a song you really can’t stand, you can just skip it — something you can’t do over the airwaves.

Some services take this personalization to its logical extreme by creating custom radio stations to suit a user’s tastes. Instead of a live DJ choosing which tune to play next, algorithms select songs for you based on which artists and music you say you like.

Advertising funds the majority of Internet radio stations. But some let you upgrade to an ad-free experience for a small monthly fee. Choosing a paid version also lets you skip songs more frequently. Most online radio stations limit users of free accounts to six skips per hour.

There are multiple internet radio stations to choose from.

Pandora

Started in 2000, Pandora is one of the top streaming sites on the Internet. Its music-picking algorithm, known as the “Music Genome Project,” analyzes the songs you like best and then presents you with other songs that share similar qualities.

According to Digital Trends, Pandora’s music collection is pretty decent, with about 40 million tracks for its on-demand service. However, the main reason to listen is its “magic algorithms,” which do a fantastic job of picking out songs to match your tastes. You can listen on a range of devices, including computers, smartphones, TVs, and car audio systems.

Pandora’s basic service is free. However, you can pay to upgrade to ad-free listening with Pandora Plus for $4.99 per month. On-demand listening via Pandora Premium costs $9.99 per month for individuals, $14.99 for families with up to six members, $4.99 for students, and $7.99 for military members.

LiveXLive

Formerly known as Slacker Radio, this service relaunched as LiveXLive in 2017. The new name reflects its focus on providing live music streams. The service earns an Editors’ Choice designation from PCMag, which praises its “curated stations” hosted by experienced and informative DJs.

Along with its extensive music collection, LiveXLive offers live news from ABC and pop culture tales called “Slacker Stories.” It also hosts videos featuring music news, interviews with artists, and even live performances. It’s easy to use on multiple platforms, with apps for Android, iOS, Amazon Fire TV, Apple TV, and Roku.

A free account comes with 128 kilobits per second audio and the ability to skip up to six songs per hour — and plenty of ads. You can remove these limitations and upgrade your speed by upgrading to Plus ($3.99 per month). Going up to Premium ($9.99 per month) gives you access to on-demand and offline listening.

Last.Fm

At Last.fm, you create a custom profile that’s continuously updated with info about what artists and genres you’re listening to. The site uses this feature, which it calls “scrobbling,” to make personalized recommendations for new music. It also has a social media component, introducing you to other music lovers who share your tastes.

A basic subscription to the site is free. An ad-free version with extra features costs just $3 per month. You can listen to Last.fm on the Web or through its desktop and mobile apps. The apps can also track what music you listen to from other streaming music services and use that information to enhance your profile.

Jango

One of the newest players in the Internet radio field is Jango. Like Pandora, this service creates custom radio stations based on your musical tastes. You select your favorite artists, and Jango plays music from those artists and similar ones. You can fine-tune the playlist by rating songs you especially like or never want to hear again.

Jango also has hundreds of ready-made stations. Some are based on different genres, such as country, classical, or hip-hop. Others focus on more specific themes, such as today’s top 100 hits or Christmas songs.

You can listen to Jango over the Web or via an app for Android or iOS (iPhone, iPad, and iPod Touch). The service is 100% free and supported by ads. However, if you link Jango to your Facebook account, you will hear only one commercial per day. The mobile apps sometimes offer ad-free listening as well.

Subscription Services

A subscription streaming music service is like a library filled with songs users can check out but not keep permanently. Most subscription services make money by charging a fixed monthly rate in exchange for unlimited listening. But many also offer free accounts funded by advertising.

Amazon Music

There are two ways to listen to Amazon Music. If you have an Amazon Prime subscription, it comes with access to a limited catalog of 2 million songs. This basic, ad-supported service has thousands of stations and playlists, and you can listen offline with unlimited skips. You can also use Alexa, Amazon’s smart assistant, to control playback and discover new music.

If you want more music, you can upgrade to Amazon Music Unlimited. It gives you ad-free, on-demand access to 75 million songs in HD. Over 7 million songs are available in Ultra HD, and the service also includes access to exclusive Ultra HD remastered albums. Amazon Music Unlimited also gives you access to other audio, such as podcasts.

Your first 30 days of Amazon Music Online are free. After that, it costs $9.99 per month for Prime nonmembers or $7.99 per month if you have a Prime subscription.

Spotify

Named the best all-around music streaming service by Digital Trends, Spotify is by far the most popular on-demand streaming service in the world today. There are several ways to use it:

  • Discover new music through the site’s curated playlists.
  • Create playlists from Spotify’s collection of more than 50 million tracks.
  • Browse playlists created by others, including friends, performers, and celebrities.

All music on Spotify is free, but upgrading to a Spotify Premium subscription for $9.99 per month gives you several extra perks. You get better audio quality, ad-free playback, and the ability to save songs for offline listening. You can also play songs on demand in the mobile app, a feature that’s unavailable with a free subscription.

You can listen to Spotify over the Web or via its iOS and Android apps. It also runs on certain gaming consoles, smart speakers, and car audio systems.

YouTube Music

The free version of YouTube Music is like a cross between a radio station and an on-demand streaming service. It invites you to name some of your favorite artists and uses that information to recommend albums, curated playlists, and custom playlists for you.

But unlike most online radio stations, YouTube Music lets you move around these lists at will, skipping forward or backward. Ads are relatively infrequent, according to Gizmodo, and it’s possible to skip some of them. You can also search for specific artists, albums, and tracks by name, save your favorites to your library, and create playlists.

YouTube Music also has some extra features most music services don’t provide. For instance, you can switch back and forth between audio tracks and music videos with the tap of a button. The service can also search for a song based on its lyrics.

All this is available free over the Web and on Android and iOS. However, upgrading to YouTube Music Premium for $9.99 per month lets you listen ad-free and stream in the background while your device is off. If you subscribe to YouTube Premium for streaming video, you get access to YouTube Music Premium for free.

Deezer

Though it’s not as well known as other streaming services, Deezer is surprisingly full-featured. This service provides a blend of on-demand streaming, live radio, podcasts, videos, and exclusive content — all for free.

On the Web or your desktop, Deezer recommends playlists for you based on your favorite artists and genres. You can also search a library of 73 million for specific tracks to create your own playlists. Deezer also provides synchronized song lyrics. However, the free service is available only on desktops, mobile devices, and a few home devices. It also limits skips.

If you upgrade to Deezer Premium ($9.99 per month) or Deezer Family ($14.99 per month), you get ad-free streaming, an offline mode, and unlimited skips. You can also connect on up to three devices at once, including smart speakers, smart TVs, wearable devices, game consoles, and car audio systems. You can try Deezer Premium free for 90 days.

Free Trials

Some streaming music services don’t have free ad-sponsored versions, but they do offer free trials. These give you a chance to test the service and decide whether it’s worth coughing up the cash for a monthly subscription.

Apple Music

With a library of over 75 million songs, Apple Music is the ideal streaming service for anyone who relies on Apple devices. It’s the only service you can control with the Apple Watch or voice commands to Siri, Apple’s smart assistant. Windows users can also use Apple Music via iTunes on their computers, but it doesn’t work as smoothly, according to Digital Trends.

Apple Music allows you to store up to 100,000 songs in your personal streaming library. If you’re an iTunes user, you can find many of your songs already available in the streaming library when you first sign up. The service also includes Apple Music 1, a 24-hour radio service curated by noted DJs and musicians.

The free trial period is 90 days. But according to Insider, you can double this to six months by signing up through an account with Best Buy. After the trial, choose from three service tiers: student at $4.99 per month, individual at $9.99 per month, and family at $14.99 per month.

Tidal

Both PCMag and Digital Trends agree that Tidal, a streaming service owned by top rap artist Jay-Z, has top-notch audio quality. It also offers exclusive content for hardcore music fans, such as timed releases from top artists like Beyoncé, live streams, concerts, and backstage footage. It even provides early access to certain concert and sports tickets.

Tidal offers a library of over 70 million songs and 250,000 music videos. However, as Digital Trends notes, it’s not easy to discover new music, and the interface can be buggy. Also, Tidal doesn’t provide lyrics, unlike many other services. You can listen on computers, mobile devices, smart TVs and streaming devices, smart speakers, and car audio systems.

The free trial period lasts 30 days. After that, Tidal Premium is $9.99 per month for individuals and $14.99 per month for families. Tidal HiFi, with lossless-quality sound, is $19.99 per month for individuals and $29.99 per month for families. But there are discounted subscriptions available for students, military members, and first responders.

SoundCloud Go

This service is the streaming counterpart to SoundCloud’s music download service. Digital Trends calls SoundCloud Go the best way to discover new indie music thanks to its vast library of 120 million user-created tracks. Its higher-tier SoundCloud Go+ adds another 30 million tracks from major labels and ad-free listening.

The service has nearly 200 million active users each month, and tons of lesser-known artists upload their newest songs regularly. However, unlike many other services, it doesn’t use algorithms to help you find music, so it can take some work to search through all the content to find your new favorites.

The free trial period is seven days for SoundCloud Go and 30 days for SoundCloud Go+. If you like it, you can pay $4.99 per month for SoundCloud Go or $9.99 per month for SoundCloud Go+.

Free Streaming on Demand

Some sites don’t require a subscription to stream music — you just go to the site, pick a track, and listen. For instance, on YouTube, you can type in the name of just about any song and find a video version of it.

The artists or their labels post some of these. But some are amateur videos created by fans, and some have just the music accompanied by a blank screen or lyrics. For example, a search for the popular song “All About That Bass” by Meghan Trainor turned up Trainor’s official video, a live performance of a jazz cover version, and numerous fan-created videos and parodies.

YouTube is an excellent place to find that obscure song you heard years ago, even if you’re unsure of the title or the artist. Just type in the most memorable line from the song, and let YouTube’s search engine do its thing. Using this method, I tracked down two old novelty songs: “Put the Lime in the Coconut” by Harry Nilsson and “Right Said Fred” by Bernard Cribbins.


2. Free Music Downloads

In the age of the Internet, it’s very easy to download music illegally. However, if you prefer to stay on the right side of the law — and support your favorite artists and the music labels that support them — you need to dig a little deeper to find free music downloads that are also legal.

Amazon

In addition to its streaming service, Amazon has a massive catalog of digital music for download, including more than 5,000 free songs. Many of these are obscure tracks by relatively unknown artists. But there are also a few gems by better-known performers, such as the rock band Foo Fighters and the folk artist Carole King.

Finding free tracks on Amazon is a bit tricky since the site keeps trying to redirect you to Amazon Music. Your best bet is to search the Internet for “find free music downloads on Amazon” and follow the first non-sponsored link you find.

SoundCloud

The primary SoundCloud service is sort of like YouTube for recording artists. Any user can upload music to the site, making it available for other users to download or stream.

Not all the music on SoundCloud is free, but you can find free tracks by both major and lesser-known artists. You can search the site for specific artists or genres or just browse the selections of trending music. SoundCloud’s services are also available through mobile apps for iOS and Android.

SoundClick

Much like SoundCloud, SoundClick provides a place for independent artists to make their music available directly to listeners. Founded in 1997, this site now offers millions of tracks spanning a variety of genres. You can find hip-hop, electronic, rock, alternative, acoustic, country, jazz, and even classical.

You can stream unlimited tracks via SoundClick or download them in both MP3 and lossless format. As a subscriber, you get your own profile page and custom playlists. You can follow your favorite artists, connect with other users, and support artists through tips.

Free Music Archive

Created by independent freeform radio station WFMU in New Jersey and now owned by the Dutch music collective Tribe of Noise, the Free Music Archive is a collection of free legal music tracks submitted by users and partner curators. All music on the site appears under Creative Commons licenses, which let artists make their work available for various uses without surrendering their rights.

Digital Trends calls the archive “a veritable treasure trove of free content” you can search by title, artist, genre, and length. The site also hosts a wealth of podcasts and some live radio performances from big-name artists.

Jamendo

Another site that distributes free music under Creative Commons licenses is Jamendo. Around 40,000 artists from more than 150 countries have contributed more than 500,000 tracks, available for streaming or download, to the site.

According to Digital Trends, this site offers a streamlined user interface that makes it easy to browse and find new musicians. Even though most artists featured here aren’t well known, it’s easy to find the most popular tracks based on their user ratings, so you don’t have to sift through countless songs to find the good stuff.

If you need music for commercial purposes — for instance, in a video you want to distribute for profit — Jamendo offers a licensing service. For a monthly fee of $49, you get an unlimited number of tracks for commercial online use.

NoiseTrade

NoiseTrade is a project of the award-winning lifestyle magazine Paste. The “trade” in the name means artists give you their music on the site in exchange for your email address and postal code. It’s a win-win for users, who get free tracks or entire albums, and for artists, who get to build their fan bases.

Digital Trends describes this site’s interface as simple and clean. You can easily search tracks, browse recommendations, promote your favorite artists via social media, and send them tips with a credit card.

ReverbNation

Many well-known artists, including Imagine Dragons and Alabama Shakes, built their fan bases from scratch by sharing their music on ReverbNation. The site hosts over 3.5 million artists representing a mix of genres, like rock, R&B, indie, hip-hop, country, and folk. Its Discover feature can help you find up-and-coming artists in genres that interest you.

DatPiff

Hip-hop artists have long used mixtapes to spread their work. In that tradition, DatPiff offers access to a variety of new free music from both new rappers and mainstream artists like Drake and Future. According to Digital Trends, it’s the leading place to download new tapes, view release schedules, and listen to compilations created by fans.

Audiomack

A newer, up-and-coming player in the mixtape realm is Audiomack. It focuses on hip-hop, rap, and trap music from both newcomers and established artists like Kodak Black. Some artists on this site allow only online streaming of their songs, but there are still plenty of downloadable tracks.

CCTrax

Another genre-specific site is CCTrax. Although it hosts tunes from various genres, it has an unparalleled collection of electronic music, including dub, techno, house, downtempo, and ambient. Many of the singles and albums are licensed by Creative Commons and free for use in other works.

Musopen

Classical music lovers can find lots of free recordings, sheet music, and even textbooks at Musopen. Most classical music pieces are in the public domain, so it’s perfectly legal to distribute them for free. The site has a vast library of royalty-free recordings you can search by composer, performer, form, instrument, or period.

Live Music Archive

For live concert recordings, Live Music Archive is the place to go. The site is a collaboration between the Internet Archive, a nonprofit repository of digital media, and Etree.org, a community for sharing concert tapes. Recordings date back to 1959 and span a wide variety of genres, including rock, reggae, and jazz — and over 15,000 Grateful Dead shows.

According to Digital Trends, this site can be tricky to navigate. There’s no search function, but you can filter results by artist, title, or date. When you find what you want, you can stream it or download it in MP3 or FLAC (free lossless audio codec) form.


3. Broadcast Radio

Even in the brave new world of digital media, there’s still room for the old-fashioned kind. In fact, according to a 2019 Nielsen report, more Americans tune in each week to old-school radio — over the airwaves — than any other platform, including TV and all Internet-connected devices.

Far from killing off broadcast radio, the Internet has revitalized it. A couple of decades ago, you could only listen to your favorite radio station when you were in range of its antenna tower, which made it hard for smaller stations with less power to compete. Today, as long as you have an Internet connection, you can listen to any radio station that has a livestream.

For example, if I want to listen to my local NPR station, WNYC, I can just type “WNYC.org” into my web browser and click the Listen Live button. It’s a lot easier than fiddling with the radio knobs to hit the right frequency and allows you to listen to local radio, even when you’re traveling.

TuneIn

The Internet can help you discover new radio stations as well. At TuneIn, you can find and listen to Web streams from 100,000 radio stations around the world. Sports, news, podcasts, and talk radio are also available.

You can listen to any station on TuneIn with a free subscription. But your stream will include all the ads played on the radio station. With a premium subscription, which costs either $9.99 per month or $99.99 per year, you can listen to many stations ad-free and reduce the number of ads on others.

In addition to its website, TuneIn is available to download as an app for iOS or Android devices. You can also listen via car audio systems, smart speakers, game systems, smart TVs, streaming devices, and wearables.

iHeartRadio

Another site devoted to traditional radio is iHeartRadio. You don’t need a subscription to tune into radio stations or search for one by location. The site also gives you access to podcasts and playlists based on genres, decades, or moods.

With a free subscription to the site, you can build Pandora-style custom stations based on specific songs or artists you like. You also gain full access to IHeartRadio’s podcast collection as well as a custom library in which you can save your favorite stations, music, and podcasts.

For $4.99 per month, you can upgrade to a Plus subscription. It allows you to skip as many songs as you like, play songs and albums on demand, and save and replay songs you hear on the radio. With an All-Access subscription ($9.99 per month), you can also create unlimited playlists and download songs for offline listening.


Final Word

Despite all the Internet has to offer, digital music may never entirely take the place of physical recordings. There are even signs the old-fashioned record store is making a comeback. According to the Recording Industry Association of America, more than 40% of all profits for sales of physical recordings in 2018 came from vinyl LPs and EPs.

The world of modern music isn’t so much about digital versus analog, recorded music versus streaming, or custom radio versus curated stations. Rather, it’s all about choice. Music lovers today have more options than ever for listening to music exactly the way they want. And thanks to the Internet, they also have plenty of options for how much they spend on it.

Source: moneycrashers.com

[Update] Bank of America Unlimited Cash Rewards Card Review – 1.5% (2.62%) Cashback, $200 Signup Bonus, No Annual Fee

(Update 7/20/21: There’s also a Student card version of this card. All the rest of the details are the same, including signup bonus, just maybe they’ll approve students easier. Could be a nice first card.)

Bank of America has launched a new Unlimited Cash Rewards consumer card which has no annual fee and earns an unlimited 1.5% cashback on all purchases. Preferred Rewards Platinum Honors members will earn 2.62% on all purchases.

Bank of America Unlimited Cash Rewards signup link | Student Version | Secured Card Version| Press Release

Signup Bonus

  • Get $200 signup bonus after you spend $1,000 within 90 days.

Card Details

  • No annual fee
  • 3% foreign transaction fee
  • Card earns 1.5% cash back on all purchases with no limit. Preferred Rewards Platinum Honors members will earn 2.62% on all purchases. Rewards do not expire.
  • Cash rewards can be redeemed as a statement credit to your credit or a deposit to your Bank of America checking, savings, or Merrill investing account.
  • Low Introductory APR Offer of 0% APR for your first 15 billing cycles for purchases, and for any balance transfers made within 60 days of opening your account. After that, a Variable APR that’s currently 13.99% to 23.99% will apply. 3% fee (min $10) applies to balance transfers.

Our Verdict

This card is similar to the old Travel Rewards card, just as cashback instead of points. This is a terrific new card since it removes the annoyance of having to redeem the rewards against travel purchases and creates a straight 2.62% cashback card with no annual fee.

A lot of people carry the Premium Rewards card, with its $95 annual fee, specifically to avoid the annoyance of having to redeem against travel. There are other advantages of the Premium Rewards, including $100 airline incidental credit, 2x (3.5x) on travel & dining purchases, and no foreign transaction fee. But if you don’t care for those benefits you can simply get the Unlimited Cash Rewards and then you won’t need the Premium Rewards card anymore.

Hopefully they’ll allow product changes from the Travel Rewards and the Premium Rewards cards to the new Unlimited Cash Rewards card. You won’t get a signup bonus when product changing, but some will prefer that to opening a new account.

Some people were targeted with a $200 bonus for product changing into this Unlimited Cash Rewards card. 

There’s also a Student version of the Unlimited Cash Rewards card with all of the same details as the regular card, just maybe a bit easier for students to get approved when using that Student link. There’s also a Secured version of this card which is mostly the same, but does not have the $200 signup bonus. The bank plans to launch a similar 1.5%/2.62% Business Unlimited Cash Rewards in October.

Source: doctorofcredit.com