Have you heard about financial independence? Probably. It’s a buzzword right now.
It’s not always to nail down exactly what it means, though. Financial independence means different things to different people.
In this episode, we talk about what it means to break your chains and get on the path toward money freedom — whatever that looks like to you.
Concepts
What does financial independence mean, really?
Can creating a situation where you enjoy life without too much worry be the same thing, even if you still work?
Do you need to be totally debt-free to be financially independent?
Why is financial independence so appealing?
Reasons money freedom matters so much.
A realistic look at what it takes to actually reach financial independence.
The need for planning when you want money freedom.
Tips for saving up for the future.
Financial realities and the hard work necessary.
This week’s “do nows” are all about figuring out what you want your money to do for you. Instead of viewing money as the end result, it’s about changing things around to use money as a tool to help you get what you want from life.
On top of that, it includes an exercise in self-reflection. Be brutally honest about what’s holding you back from financial independence.
Our listener question is all about the worth we assign people based on their net worth. You don’t need a big pile of money to feel good about your life and your finances. Here’s how to stop treating money like a competition and feel secure in your own choices.
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It would be nice if you could have an easy solution to student loans. You will have to work your ass off to get on top of the situation. Make it happen. Read More...
The first thing to do is get control of your current living expenses. The only way to make sure your debt doesn’t grow any faster is to immediately stop acquiring debt.
Then, calculate your total monthly living expenses, including minimum student loan payments, car expenses, entertainment, rent, and every other monthly expense you have.
If your monthly living expenses exceed your take-home pay, you must cut your monthly living expenses, increase your monthly income (more below) or a combination of the two.
It may feel like a cold reality, but you’ll do yourself no favors by overspending what you bring home from month-to-month.
If this means you must continue living at home or find more roommates to lower your rent, then do so. If you must switch from a premium phone company to a discount service company, such as Republic Wireless or Cricket Wireless, do it sooner rather than later.
Look for as many ways as possible to lower your living expenses. Just as every little calorie counts, so does every little cent as you work to get your student loans under control.
Pro tip: Apps such as Mint and Personal Capital can help you manage your budget all from your phone that’s now on a discount service plan.
Increase your income.
This is a two-part step.
First, increase your W-2 income. W-2 income is the income you earn from working for someone else and not contract employment. Because you currently have a low paying job, it’s in your best interest to increase this income.
Tell your current boss that you need to increase your income. Work with your boss to come up with mutually agreed-upon performance expectations to increase your pay in a specified period of time. This time is commonly relegated to your annual performance review, but some companies have more flexibility.
Then, work your butt off to exceed your agreed-upon expectations. Document every success. Save every email with even an ounce of praise. When you have your next performance review, sell yourself so hard it’s impossible for your boss to not give you a raise.
In the meantime, look for other, higher-paying jobs both within your current company and outside if only to improve your interview skills. If you find a higher paying job, use your improved performance and skills to sell yourself for a higher income.
Pro Tip: You can respectfully decline to answer questions about your current pay, but to decline to answer questions successfully you must do so impressively.
Something like, “Thank you for that question, however, I’m going to decline to answer that. I’m focused on the value that I can provide you going forward with my current skills and knowledge. This is different from what I was capable of when I was hired for my last job.”
The second part to increase your income is to make money outside of your primary job. Yes, this means getting a second or even a third job. While that’s painful, it’s not unheard of. Many people have several jobs until they get on their feet. I had multiple jobs at once, myself.
Pro Tip: You don’t have to increase your income with more W-2 jobs. You, too, can become your own boss.
Bloggers and YouTube stars you’ve never heard of are making millions of dollars a year. Peripheral workers, such as social media experts and virtual assistance, are springing up to help those bloggers and YouTube stars — and are making sustainable incomes of their own.
Could you be the next million-dollar internet guru or billion-dollar app creator?
Possible, but not probable.
What is possible is that you could create a nice income for yourself to supplement the income from your W-2 and better tackle your student loans. It’s even possible that you could create enough income from being your own boss that you don’t need a W-2.
Pro Tip: This strategy is playing the long game. An overnight success actually takes years to accomplish. While there are lots of winners in the gig economy, most of them won because they persisted.
Avoid more debt.
Not unlike controlling your living expenses, avoid adding more debt to your portfolio of debt.
Avoid taking on a mortgage, a car loan, if possible, more student loans, loans for a cell phone or furniture, payday loans, or any other opportunity to finance an improved lifestyle. Debt is debt.
The less you take on until your student loan balance is paid off, the better.
Pro Tip: The possibility of increasing your income by earning another undergraduate or graduate degree is enticing. Many employers will pay for some or all an employee’s additional education. Before going back to school, see if your employer will help pay your way. If not, consider bouncing to another employer who will.
Refinance your student loans.
Under certain conditions, you can refinance both federal and private student loans and there are several banks and other businesses to help you.
If approved, you could lower your interest rate, lower your monthly payments, or lower both your interest rate and monthly payments.
Each year, you can apply for an income-based repayment plan. There’s no fee to apply and if you qualify for one of four different kinds of repayment plans, it may help you meet month-to-month expenses until the following year.
Understand the fine print of your income-based repayment plan. For example, if you’re married, you may have to file taxes separately from your spouse. There’s also the possibility that your remaining balance will be forgiven in 20 to 25 years.
This hasn’t happened for anyone yet and there’s the possibility that you’ll receive a tax bill for any amount forgiven, which could be expensive. (Public Service Loan Forgiveness happens sooner, and doesn’t come with a tax bill.)
Pro Tip: Simply lowering your monthly payment will likely mean that you’ll pay more money over the life of your loan. Put as much money that you free up from lowering your monthly payment towards your highest interest debt to pay your debt off more quickly.
Bottom line.
The best way to improve a bad situation is to have an improvement plan.
This five-point plan should get you headed in the right direction. As you proceed, tweak as necessary to continue heading in the direction of paying your student loans off and increasing your income fast.
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Sweet tooth out of control? It’s time to show your teeth who’s boss. Try these tips for getting over your sugar cravings. Read More...
Research shows eating too much sugar leads to heart disease, diabetes, and other diseases.
Sugar has overtaken fat and carbs as the ingredient to avoid in food. Most of us know drinking a Diet Coke and eating a box of Chips Ahoy isn’t good for us, but we still do it.
Why?
Because sugar is addicting. Some scientists say it works like cocaine and other drugs, targeting the dopamine-releasing centers in your brain. Sugar makes you feel good in the moment and bad in the long-term.
What can you do if you’re trying to improve your health and cut back on that sweet stuff? Read below for our best tips on battling your sweet tooth:
Wait 15 minutes.
When that craving hits your brain, suddenly all you can think about is feeding your addiction. It can be an all-consuming feeling, but the key to breaking out of your addiction is to avoid giving in.
Tell yourself that you’ll have to wait at least 15 minutes before you satisfy your sweet tooth. During that break, your brain will have time to think about how you promised to get better and how crappy you’d feel if you relented. Many people find that after 15 minutes have passed, they don’t even remember the intense craving they had.
Keep a food journal.
When you feel like heading to the snack machine or your closest convenience store, take a second and stop.
Instead of giving in to your urges, keep a notebook with you to write down how you feel when those cravings arrive. Remind yourself why you decided to cut back on sugar and what your goals are.
When we have a craving, we’re determined to fulfill a short-term need. It’s like scratching a mosquito bite. It feels better in the moment, but afterward you just want to keep scratching.
A food journal can help you remember why you’re saying no to your sweet tooth and keep your long-term goal in mind.
Avoid buying it.
Creating a new habit requires a lot of willpower that’s often in short supply. Instead of counting on yourself to always make the right decision, you have to start making it easier for yourself. Case in point: avoid buying sugary items.
If you buy a packet of Oreos, then every time you want to have some, you’ll be forcing your brain to make a difficult decision. A box of Oreos represents at least a few times you’ll have to decide between breaking your diet and staying on track.
The best way to avoid that scenario? Don’t buy the Oreos in the first place. Not buying the Oreos in the first place helps you avoid being forced to make a decision about them later.
Reach for fruit.
Research says that there’s little difference between the sugar found in fruit and junk food. However, fruit usually contains essential fiber that will slow down how fast your body processes the sugar.
Instead of eating a Little Debbie snack, grab some fresh strawberries or cut up a banana. It’s a lot harder to binge on fruit than it is on Hostess snacks. Satisfy your sweet tooth with something healthier.
Combine it with protein.
You don’t have to give up sugar entirely to stay within your diet. But one way to decrease the effect more sugar can have is to pair a sweet treat with protein. If you want a piece of chocolate, have some almonds or walnuts with it. Pair a cookie with a glass of whole milk, which has more protein and Vitamin D than skim or 2%.
Protein will fill you up more and prevent you from eating five brownie bites. Peanut butter and almond butter are also good additions to some chocolate chips or ice cream.Your sweet tooth gets a little love, but isn’t taking over.
Avoid peer pressure.
The people around you will likely notice if you’re trying to change your eating. Some might criticize you and say things like, “One cookie isn’t going to kill you.”
It’s easy to give into peer pressure, especially if you feel uncomfortable or are in a workplace setting. But those people aren’t looking out for your best interests; they’re just trying to feel better about their own choices. When they see someone who’s making better decisions, they get insecure and want to tear that person down.
Instead, find someone you know who has a similar goal. You can help each other stay on track and vent when your cubicle neighbor is harassing you about eating their homemade brownies.
Eat mindfully.
When we eat something we crave, we likely hoover it down. Instead, try eating as slowly as possible and concentrating on what you’re ingesting. Eating mindfully has been shown to reduce overeating because it helps you appreciate the food you have.
This piece of advice might seem a little “woo woo,” but it can help you realize you only need one candy bar, not five.
Plus, the slower you eat, the more time your stomach has to truly signal that you are getting full.
In the end, we really are what we eat. So try not to eat so much crap.
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Getting out of the paycheck-to-paycheck mode is about more than just spending less. Erin Lowry from Broke Millennial explains how to stop scraping by. Read More...
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Show Notes
Are you tired of scraping by, living paycheck to paycheck? Erin Lowry from Broker Millennial joins us to share strategies on how you can get out of your financial rut.
Erin Lowry is a millennial personal finance expert and the founder of BrokeMillennial.com. She’s also the author of the forthcoming book BROKE MILLENNIAL: How to Stop Scraping by and Get Your Financial Life Together. Lowry has contributed to Forbes, Business Insider, New York Magazine’s The Cut and U.S. News & World Report. Some of her insights have been featured by outlets including: CBSSunday Morning, USA Today, Wall Street Journal, Newsweek and Marketplace Money. Lowry lives in New York City with her spunky rescue dog Mosby.
Watch the live video above or listen to just the podcast audio by using the player below.
Hosted byMiranda Marquit Produced byadulting.tv Edited and mixed bySteven Flato Music bybensound.com
Join other #adults who receive free weekly updates.
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One of the most important relationships in your life is the one you have with money. Make sure you build a lasting connection to your finances. Read More...
One of my biggest fears is that apps will get in the way of my relationship to my money.
While apps like Mint make it easy to see where your money is going and get a handle on your finances, these apps aren’t everything.
In fact, they can get in the way of your relationship to your money. And that’s a problem. If you want to have the best results with your finances, you need to feel connected to your money.
Personal finance is hands-on.
One of the biggest problems I have with apps is the fact that you don’t really have to think about what you’re doing with your money.
Just sync up your account and check every now and again to see if you have the money available to make a purchase.
This approach doesn’t encourage you to think about what you’re spending your money on — or why you’re spending it. One of the biggest mistakes I made with money was spending without know my priorities.
When you’re connected to your money, you pay attention to the reasons behind your spending. If you step away from the app and track your spending manually, you develop a more intimate relationship with your finances.
And you know exactly what’s going on.
Even though I use personal finance software (Moneydance), I refuse to sync up it up with my accounts. Instead, I update everything manually. I go in there, receipts in hand, and log every purchase.
This forces me to confront the reality that sometimes the things I spend on don’t match my priorities or help me reach my goals. I spot problems faster — and can work to solve problems faster as a result.
Money is a tool.
Being connected to your money allows you to see it as a tool, rather than an end itself.
How many times have you lamented your lack of cash? I’ve been there. I know what it’s like to think that money is going to solve your problems.
The fact of the matter is that more money won’t change your habits. If you’re just looking at your app in despair, you’re not going to really get in there and tackle the underlying problems.
Look at money as a tool. It can help you do what you want.
With money, you can save for that vacation, plan for a truly golden retirement, and even provide for the security of your family.
Building that connection takes more than just looking at the cool graphs some app provides you. Instead, it’s about planning. You need to check in with your finances. Is your money plan working? Is it helping you reach your lifestyle goals?
Being connected to your money is about knowing what you have coming in, and being aware of how you direct those resources so that you are building something of value in your life.
What about automation?
Even though I’m not a fan of using apps to sync up my bank accounts, I am a fan of automated finances.
Rather than write check after check, I like setting my accounts up for automatic payments. My insurance, internet, and other bills are automatically taken care of. Hell, I even donate to charity using my credit card to make automatic payments.
When I first started automating everything, I wanted to make sure I didn’t end up becoming disconnected from my money. So I make it a point to manually enter purchases into my personal finance software. I also reconcile my accounts every month.
Many people think that they don’t need to reconcile their accounts each month. After all, thanks to online banking, it’s possible to look at all of your account each day if you want. You can look at what’s cleared and catch fraudulent charges quickly.
However, I like reconciling my accounts. It forces me to review all of my spending again and look at patterns. When I reconcile an account, it means that I have to stay connected — even though I automate my finances for the most part.
You don’t have to give up your apps.
Of course, you don’t have to give up your apps to remain connected to your money.
There are plenty of ways to stay connected to your finances, no matter how you choose to manage your money. Here are some things you should do on a regular basis to ensure that you and your money maintain a strong relationship:
Review your spending regularly. Don’t just glance at a graph or get your information from an app. At least once a month really dig in there. Look at some of the individual purchases you make. Do those things match your priorities? Are you starting to drift into “wasting money” territory?
Review your investments. From your retirement account to any sort of taxable investment account, you should regularly check in with your returns. Does what you’re setting aside still make sense for your goals? Have you seen an increase in income that means you should be investing more?
Create a long-term financial plan. Put together a long-term financial plan that looks at your finances holistically. Pay attention to where you are now, and use your life map to hone in on your priorities. Create a long-term financial plan that takes into account your goals and lifestyle requirements.
Make adjustments as needed. It’s not just about making a plan and then forgetting about it. You should revisit your long-term plan at least once a year and make adjustments as needed. Life changes you. Your goals change. You need to change things up.
Remember: your money works for you. However, if you aren’t paying attention and if you aren’t connected to your money, it won’t do you any good. Pretty soon, you’ll find you’re a slave to your finances.
Some people think that we might be facing another recession — or even a depression.
Even though downcycles are a normal part of the economy, it’s hard for us to feel good about them. After all, no one likes the idea of hard financial times.
While we might not be facing a total financial collapse, the reality is that things might be getting harder for the middle class. Widening income inequality and a fraying safety net could lead to problems.
If you don’t want to be caught up in the problems, it’s a good idea to prepare your finances so you are ready for whatever comes.
Concepts
An honest look at the reality of downcycles and recessions.
Why it’s important to understand that there is no way to avoid all financial problems.
Is a complete financial collapse truly likely?
The importance of looking at your own life, and not just focusing on the wider economy.
Consequences of a shrinking safety net at the same time income inequality is growing.
The importance of cultivating income diversity as a way to proect yourself.
Potential skills that can transfer from one career to the next.
Financial moves, like paying down debt, you can make to better position yourself to avoid being a victim in a financial collapse.
The truth about stockpiling gold.
The kinds of survival skills that are actually useful during a true apocalypse situation.
Don’t forget to stick around for this week’s “do nows.” We talk about how you can create a financial priority list to protect you from problems, as well as start updating your resume and brushing up on in-demand skills.
Our listener question tackles the idea of moving abroad to escape the financial collapse you might be worried about.
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When you a that big date, you want everything to go right.
If everything goes just right, you’ll get lucky. Maybe enjoy more than dinner and drinks.
To have the kind of fun you really want to have, you must first prepare. You need everything in its place, everything looking good. And feeling good.
To get the results you want, you must plan, plan, plan.
This is the same when making a date with your money.
If you want your money date to be bigger, better, and more exciting, this six-step plan will satisfy you.
Prepare.
Sure, you could dive right into it and hope for the best. With a little pre-date prep, though, you can make your money date pleasurable and certain.
Get online access to all your accounts and account statements. Include investment and savings accounts with bank and investment firms, retirement (company sponsored retirement plans and individual retirement accounts, such as your Traditional or Roth IRA), and credit card accounts.
Don’t forget about your Health Savings Account (HSA) and Flexible Spending Account (FSA). Get access to your mortgage account and any personal and home equity lines of credit (HELOC).
Get access to any account you have anywhere. Have all this information accessible so you can peek at it as needed.
Gain an understanding of what kind of accounts you have and how they work. If you have a company-sponsored retirement plan, what kind of plan do you have and how does your employer manage it? If you have a HELOC, know your terms, such as withdrawal limit, interest rate, and payoff requirements.
Lay the groundwork for a successful date with your money so you aren’t stuck.
Get intimate.
It’s hard to get what you want when you don’t know what you want. You can’t be fulfilled if you don’t know what you crave.
To get the most from the date with your money, know your goals and dreams. If you don’t know your goals and dreams, do some self-reflection, meditate, journal, read, and talk with friends and family.
While you’re self-reflecting, figure out what scares and concerns you. If you’re afraid to lose money, for example, you want more conservative investments.
If you’re concerned by what would happen if you lose your job, you want to devise a plan to save six-months’ worth of living expenses in an emergency savings account.
Be honest about your limitations and weaknesses. If you’re prone to misuse credit cards, then all those credit card hacking articles you’ve read don’t apply.
If your dream is to be a social worker, then a top-tier college that costs six figures doesn’t make sense.
Understanding what you desire and what you can handle will take you a long way in creating a financial plan that works for you. Most people create a financial plan to simply look like they’re doing better than their neighbor.
That’s a plan for failure.
Shoot to score.
If a date with your money includes someone else, good on you. The more the merrier.
If your money date includes someone else because that someone else is included in your family plan, know all the above about them as well as you do about yourself. When you have that level of understanding, you can seek mutually happy endings.
Money is one of the top three leading causes of stress in relationships. Understanding your partner’s financial personality and having them understand your financial personality will help you both feel satisfied.
It’s important to keep in mind that you don’t need to have the exact same financial goals as your partner. You can support your partner in reaching for their individual financial goals.
Protect yourself.
Because you’re getting so intimate, it’s wise to use protection.
Get life insurance, even if you don’t have a spouse or children. Today’s life insurance isn’t our parent’s life insurance.
Policies today often allow you to leave an inheritance to heirs that include partners, children, nieces, nephews, grandchildren, or anyone unrelated to you by blood but related to you by love.
Many policies permit leaving charitable donations. You may leave a donation to one or more organizations in your name. If you choose the latter, it’s wise to assign a trustee to your estate to oversee that the donations are distributed appropriately and not a la Eva Peron.
Get life insurance as soon as possible because the earlier you do the cheaper it is.
Whether you have health insurance through an employer or through the Affordable Care Act, make sure you have enough coverage to meet your needs. Risking that you won’t get sick or hurt is taking the risk of losing your health and your wealth.
Bank or credit union savings accounts or money market accounts with no bells or whistles are ideal to use as emergency savings accounts. You don’t want this money too easily accessible, so decline debit cards and check writing.
In a real emergency, you won’t mind driving to the bank or requesting a wire for this money. If you have an urge to buy a new television, the effort it takes to access your emergency savings funds may motivate you to find the money elsewhere.
Clip, pare, prune, and trim.
Less is more. As designers, writers, and editors often say, “Edit. Edit. Edit.”
That’s often the case that our lifestyles grow proportional to our incomes. We spend all we earn – and sometimes more.
In any case, cut excess spending and waste. When you trim, your prize becomes clearer and appears bigger. You will achieve any and all financial goals sooner rather than later.
Concentrate.
If you’re reading this article, it’s likely that balancing your accounts and paying bills is low on your list of enjoyable activities.
To make this date with your money a quickie, take a deep breath, relax, and release. The more you focus on the task at hand and the goal in mind, the sooner you’ll be finished. We don’t always want dates to end quickly, but sometimes it’s all we can do.
With these steps, you can have the money date you need and achieve the money goals you want. It’s only as hard as you make it or want it to be.
Now make that date!
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Once in a while, we present Adulting.tv LIVE! Subscribe on YouTube to hear about future events, and share your questions about or suggestions for our next discussions!
Show Notes
Our regular hosts, Harlan and Miranda, are joined today by regular Adulting.tv contributor and guest co-host, Jana Lynch. Today’s guest is Clayton Daniel, author of Fund Your Ideal Lifestyle.
What is it that you really want out of life? Are you spending too much time at work? Here’s how to stop feeling like you’re wasting the best years of your life.
Happiness and fulfillment come about when you identify what you want and find ways to achieve it with the resources (time and money) that you do have.
Clayton Daniel is a personal finance expert specializing in cognitive minimalism: the belief that outsourcing the greatest stresses in life such as money to technology and automation, result in better performance across every other area of life. Visit Clayton online at Fund Your Ideal Lifestyle.
Clayton spent ten years of his corporate career in accounting and financial advice. As personal finance flourished online, Clayton identified a broadening gap between what could be offered through financial planning, and what genuinely helped people succeed in achieving what they wanted out of life.
Clayton’s professional experience is in tax accounting, and financial advice with Dixon Advisory, AMP and his own company Hillross Silverstone. He has worked with the AFA, XY Adviser and the University of NSW.
Listen to the podcast audio by using the player above.
Hosted byHarlan Landes and Miranda Marquit Produced byadulting.tv Edited and mixed bySteven Flato Music bybensound.com
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We hear horror stories about taxes, but for most people, it’s not so bad. Here’s what you need to know as a tax filing virgin. Read More...
Preparing your taxes for the first time isn’t exactly fun.
The good news, though, is that it doesn’t have be scary. We hear horror stories, but it’s not as bad as all that.
A little knowledge goes a long way. Before you get caught up in a worry spiral, here are a few things to know about preparing your taxes for the first time:
There’s plenty of free tax help available.
First of all, realize that there is plenty of free tax help available to you.
If you live in a college town, there’s a good chance that you can get help from students in the accounting program. Many business departments encourage students to prepare tax returns, and their instructors double-check their work.
Also, see if your local area has a VITA program. These sites help you prepare your taxes if you make $54,000 or less. It’s a good way to get another pair of eyes and some solid support for your tax prep needs.
You can even file your taxes for free.
If you’re doing your taxes for the first time, there’s a good chance you qualify to file for free. Assuming your household income is less than $64,000, you can take advantage of Free File.
Well-known companies like TurboTax and H&R Block participate in Free File options. Plus, depending on your state, you might even get free help filing your state taxes.
You don’t have to itemize for good tax deductions.
When you hear words like “itemize,” you probably zone out. The good news is that you probably don’t have to worry about itemizing when preparing your taxes for the first time. You won’t even miss out on some pretty sweet deductions, either.
Some of the deductions you’re most likely to take this go are on the first page of your Form 1040. These include:
Moving expenses (if you move for work)
Student loan interest
Tuition and fees
Portion of your self-employment tax (if you have a side gig)
There are other deductions you can take without itemizing, such as contributions to your Health Savings Account and to your Traditional IRA.
You can keep digital records.
It’s possible to prepare your taxes with the help of your phone. On top of that, you can keep digital records of your receipts and other records you might need. An app like Shoeboxed can help you manage everything digitally, so there’s no need to mess with paper.
Just scan everything or snap a picture and manage it digitally so you can streamline the process. It makes things easier, whether you’re filing taxes for the first time or the tenth.
File an extension if you need to.
Stressed about getting everything done by April 15?
Slow down, take a deep breath. Then file an extension. The last thing you want to do is rush through the process and make unnecessary mistakes.
While filing an extension doesn’t protect you from paying if you owe (but, really, if this is your first time with taxes, you probably don’t), but it can give you time to get your shit together.
It’s much less stressful to file an extension than try to get everything done on time if you’ve fallen behind. And you don’t even need any special reason to file for an extension.
You’ll feel better in the future if you plan ahead and manage your taxes as you go through the year, but for now, file that extension if you feel the pressure to get done on time.
Stay away from scams and refund anticipation loans.
Even seasoned tax filers sometimes make poor decisions — and that includes getting scammed.
Watch out for tax preparers that are willing to fudge the numbers a bit or claim that you are “guaranteed” something before they even know your situation.
Stick with the old standbys when you first file your taxes. Reputable and well-known tax prep software, or those retail tax prep places are usually good bets for tax filing virgins. As your situation becomes more complicated, you can start looking for more tailored advice.
The truth is that, even if you are doing your taxes for the first time, you can get your refund fast by filing electronically and choosing the direct deposit option. You don’t need an expensive loan to get your refund quickly.
Double-check everything before you send it in.
Before you send in your return, make sure that you check everything.
Even if you trust your tax preparer, look over everything. If you find a mistake after hit send, you have to file an amended return, and that is a real pain in the ass. You can only file an amended return in hardcopy.
Whether your doing taxes for the first time, or you’re an old pro, take a few minutes to review your return, and see if it makes sense. You’ll be happy you did.
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As long as you are shameless at pinching pennies and strangers don’t creep you out, you can make bank with the sharing economy. Read More...
One of the best developments for people’s money in the digital age is the ability to take advantage of the sharing economy. You can hack your way to substantial budget savings.
When I discovered that I could save money with a few simple strategies and my phone, I drank the kool-aid to begin hacking my savings, and you should too.
Are you still paying full-price?
If you’re paying full price for anything, I have to ask: how much money you’re making to leave cash on the table? The best thing about the sharing economy is that you are rewarded for talking about your favorite goods and services.
You get discounts, access to promos, and a host of other budget-saving perks. Thanks to the rise of the sharing economy, you can do more while spending less.
What is the sharing economy?
When we talk about the sharing economy let’s talk about what that actually means. It’s a system that allows citizen/consumers to share: their own skills, actual homes, cares, or affiliate links to save money or make money through collaboration.
It’s the best thing ever.
I love the sharing economy and hope you’ll embrace it like I have.
How to save money with the sharing economy.
Let’s walk through the process of saving your money the sharing economy way.
First, it pains me to ask this, but, do you have a smartphone? Not everyone is a millennial. You just may be the one random person who is a holdout or from a different generation stopping by to see what Adulting is all about.
Ok, now that we’ve established that your technology is from this century let’s ease into some of the easiest ways you can share your way to savings.
Figure out your money habits. Ask yourself (and be honest): are you a shopper, a saver, or a mix of both? Do you love to travel? Or do you stay home? By asking yourself these questions you’re better able to scout out the right apps and websites that will help you save your money.
I lean towards the spending side of things so I had to find sharing economy tools that help me manage that habit and save me money at the same time.
Download the right tools.
Now that you’ve figured out your money habits, download the Honey extension to Chrome.
I love Honey! Basically, it finds coupon codes and applies them to before you finalize your purchase. How is this a part of the sharing economy?
While Honey is a little outside of what I will talk about later but part of the sharing economy is to share information with your friends and family. Basically, one of the most important components to the sharing economy is sharing ways that people can save or make more money with cool digital tools.
You can also download other extensions and tools like Ebates and Swagbucks. These tools can help you pocket a little extra change each time you buy.
Evangelize your favorite tools.
Next, become a cheerleader for your favorite apps, products, or resources.
Companies want you to become evangelists for their products. They have created affiliate programs for their customers to share shoutouts about their favorite products and companies. The customer (you) receives either credit towards future purchases or cash. Nice.
A couple of years ago I discovered that ThredUp.com (an online consignment store) had an affiliate program and I was able to share my way to almost $2,000 in clothing credit. Yep, that was a lot of clothing and I ended up buying clothes for my friend’s kids.
If you’re curious about whether or not your favorite product or company has an affiliate program, go to your personal profile for the product or service and see if there is an affiliate link. Companies like Ibotta, Digit, Ebates, and more all provide an affiliate link to members who sign up to use their product.
Stop by the library.
The next stop in slashing your budget is checking out your local library.
Yep, it’s a little geeky, but some libraries have begun a program called “The Library of Things.” Basically, you can check out items that you would normally purchase. I am currently on the waitlist for a GoPro. Some libraries allow patrons to check out sewing machines, videos, and projectors. The list goes on.
Bartering.
There are also bartering communities and sharing systems where members pay a small fee to check out an item that they would use infrequently.
Maybe you’re about to do a small remodeling project and need a piece of equipment to work on this project. Instead of buying that equipment for a couple of hundred dollars, you could rent it for a nominal fee.
Grow your income in the sharing economy.
Are you broke and you’re a great driver and not creeped out by strangers?
Driving for Uber or Lyft may be a great way to grow your income. Likewise, you can open up your home as an Airbnb host and make money by hosting guests to your town.
There are tons of ways to make a little extra scratch with the sharing economy.
Perhaps the best thing about the sharing economy is the ease at which you can be rewarded for sharing your strengths, your time, or your home. You work hard for your money, don’t throw it away, and have fun while your discover all the ways that you can save or make money in today’s sharing economy.
You work hard for your money; don’t throw it away. Have fun while you discover all the ways that you can save or make money in today’s sharing economy.
Like what you’ve read?
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