Category Archives: Saving Money

5 Tips on Saving More Money with Annual Travel Insurance

Early Retirement Lifestyle, Protect Assets, Saving Money, Vacationing in Retirement,

When it comes to travel insurance, one of the most common questions is, ‘Isn’t single trip insurance cheaper than annual travel insurance? Then why would I sign up for the latter, when a single trip cover is saving me a few bucks?’ Not all of it is true, especially if you are a frequent traveler. Opting for  travel insurance entirely depends on the kind of traveler you are – a frequent traveler or an ordinary traveler.

Either way, getting  travel insurance is necessary, just to make sure you and your family are protected in case of an accident, loss of personal belongings, travel inconvenience, etc.

Annual travel insurance might come up as an expensive venture, however, for frequent travellers, it’s probably the most viable option out there.

Before delving deep into the art of saving money, let’s first see what annual travel insurance actually is.

5 Tips on Saving More Money with Annual Travel Insurance

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Annual travel insurance in a nutshell

In short, you make a one-time investment to purchase an annual travel policy instead of putting your money at work before every trip in a given year. It is a more convenient and feasible option for both business and leisure travelers.

An annual insurance policy usually offers the following:

  • Trip cancellation coverage
  • Covers medical expenses
  • Coverage for loss of luggage
  • Delay in flights and other flight related inconvenience coverage
  • Flight reroute expenses
  • Travel inconvenience coverage
  • 24-hour hotline for emergency situations

Certain insurance policy providers also offer the following:

  • Cover for aadventurous sports like bungee jumping, scuba diving, rafting, etc.
  • Identity theft cover
  • Rental-car collision cover

Apart from these, insurance providers might offer you other additional benefits, which you need to check with the service provider before signing up.

How to save money with yearly travel insurance

Did you know that you can save a lot more money with an annual trip cover? Most frequent travellers are opting for it, and it’s time you should consider it too! Here are 5 essential tips on how you can save more with a yearly insurance policy.

  1. Pay low premium: For multiple trips in a year, signing up for annual travel insurance is the best option. You will eventually end up paying substantially lower premium compared to a single trip policy!
  2. Choose your insurance plan wisely: Make sure that you are opting for the best plan. Do you want independent travel cover for each member of your family or a single plan for the adults? Individual insurance plans are generally more expensive, so choose as per your requirement.
  3. Know your travel duration: You have to pay more for longer duration stays. So, make sure you are clear about your travel plans and have all the itineraries set. Also, how many days of insurance cover do you need in a calendar year? If you have all these in place, you can save more money while purchasing the insurance.
  4. Compare deals and benefits: In Malaysia, you will find a host of travel insurance policy providers, including and not limited to, Allianz, AIG, RHB, Maybank, MSIG, etc. Compare the deals, offers, and rates offered by the insurance service providers and choose the plan that suits you best. In this way you will be able to save a few extra bucks.
  5. Geographical area: Know the areas that fall under the insurance policy. You don’t want to fall sick, meet with an accident or lose your money in a place that’s not covered under the policy, right?

A well-known insurance policy provider will always tell you the benefits of an annual travel plan before you take it up.

So, are you a frequent traveller? What kind of travel insurance plan are you exactly looking for?

 

This informative article was contributed to Leisure Freak by Syed Faraz

Syed is a Financial content analyst/adviser of bbazaar.my, an online platform that provides information and advice on personal finance and money management.

Automate Your Home To Retire Early: Does It Work?

Retire Early, Saving Money,

What if you could retire today? Imagine taking that luxury cruise with your family and beginning your golden years ahead well in time, so that you are still in the age bracket where you can remember all about it the next morning too! With smart home automation, all that is very much possible. The amount of money you save with each appliance will let you add more speedily to your 401k account.

And this way you will be able to reach your financial goals set for the retirement way sooner than you had otherwise planned. Improving your lifestyle while saving a good portion of your monthly earnings do seem too good to be true. But the following incredible facts show you exactly how to attain this too-good-to-be-true reality.

Home Automation for Early Retirement: How?!

Running a home does not come cheap. Adding each individual and their specific housing requirements along with the occasional guests, even daily home expense can run a huge tab in the case of a big family. And the families that are growing have their expenses multiply manifolds over the years.

The various ways in which home automation can control the expenditure in a way that gets us to our retirement savings goal pronto are as follows:

Drastic Insurance Rebates

The thing that insurers hate paying the most are those hefty insurance claims. So it only makes sense that they are now offering to slash the premium payment prices by almost a quarter for those with smart home automation technology in place.

According to the CB Insights database, the insurers know quite well that home with smart automation systems are less likely to run into the trouble. The nature of this calamity can be theft, fire damage, flooding issues and various other relevant scenarios. This means that in the long run there will be less claim filings due to these various unfortunate events which will help them save a ton.

This is one good reason to install those futuristic home automation systems in our homes right away. And if we already have them installed at our place like any other sane person then we need to inform our home insurance agency at the earliest to get the available rebate.

Save Electricity, Save Money

High energy bills are the fourth biggest cause of heart attack in case of an average human nowadays. Now, this might not be totally true. But, you can’t say that those towering energy bills don’t make you consider fleeing the country at first.

With the AC, lights and other energy-heavy appliances running round the clock, sometimes by mistake, it is hard to catch a break on them. And that is why it makes all the more sense to get those energy efficient smart home systems that slash our bill prices by at least 50%.

They are an essential upgrade and investment that is not a luxury anymore. If we want to keep up with the changing pace of time and save a good deal on our energy bills then smart home automation is the ultimate answer.

Save Both Money and Water

There is no life without water. Not just the sustenance but even the normal pace of life requires a continuous water supply. By wasting it, we are making survival difficult for our future generations and also doing more damage to our already terrifying water bill margin.

home automation

Photo by zhang kaiyv on Unsplash

In the kitchen, bath and outdoors; everyday we require a lot of water to perform the daily functions up to our satisfaction. According to a recent study done by the EPA, one-third of our total water consumption is outdoors. And out of that almost half of everyday intake gets wasted.

This is a huge number considering how it adds up to form that steep figure at the end of the month. Smart sprinkler system, touchless faucets and the smart shower heads are there to help us conserve water without demanding for any huge sacrifices when it comes to our normal lifestyle.

Smart Thermostats for Better Returns

The closest that humans have ever come to God in terms of their dexterity is with the smart programmable thermostats. They are perfect beyond the scope of human comprehension! And can be used to regulate the temperature of the entire home to make it just right.

The smart thermostats save energy and hence a lot of our hard earned money in the process too. Also, they offer the facility of being controlled from anywhere, anytime. And best of all, they sense our requirements by studying our usage pattern over time.

According to ‘A Secure Life’, 39% of the total energy consumption within a home goes directly towards the heating and cooling processes. The smart thermostats can bring down the heating cost by 12% and the cooling cost by a total of 15% of the original value. A total of 23% of the total energy can be saved annually on the heating and cooling functions combined with the help of smart thermostats.

Smart Haiku Fans

AC might be what we need when it is scorching hot outside. But they alone are not enough to have that breezy atmosphere within our living rooms. For that, we need to get a fan too that is able to keep the air ventilation within our rooms just right.

Haiku fans are the smart luxury fans that work perfectly on their own and even better with the smart thermostats. They can improve the efficiency of the HVAC system of our homes tremendously. You can also use them to maintain a steady well-ventilated state within your rooms.

Another great thing about these fans is that they can sense the temperature of the room and work smartly to bring it up to the preset desired levels. The Haiku fans help in mixing the air at different temperatures present within the room and bring the temperature at each point within that place to the same optimum level.

Conclusion

The smart home technology can help us cut back on our cost of living while upgrading it at the same time. This will help us in reaching our financial goals of the week, day, months and even years in a swifter manner. The retirement in our golden years can shift up a few decades and we can finally start living it up like we always dreamed we would in our golden years!

Savings and smart home technology go hand in hand. Do you live in a smart home? If yes, then when are you going for that retirement world tour? Tell us all about it in the comment section below.

Also, if you know a friend who is obsessed about retiring early and saving pennies, do let them know about this article. They would really appreciate you for doing so!

 

This attention grabbing and thought-provoking article was contributed to Leisure Freak by Pallavi Pandey
Author Bio

A part time contributor at http://bestsmarthometrends.com/, Pallavi Pandey has been making dull topics a page-turner since 2012. She has written extensively about finance, technology, and software in her freelance writing career until now.

Her Bachelor’s Degree in Computer Science helps her in comprehending the most complex of topics quite easily. Her core expertise lies in creating engrossing content that puts across the point in the desired format without boring you to death!

Hotel Hacks: How to Get the Best Room without Paying Top Dollar

Budgeting, Early Retirement Lifestyle, Saving Money, Vacationing in Retirement, ,

Doing your research really does pay off, but if you are still unable to find a great hotel then you may have to resort to alternative measures. After all, it is more than possible for you to find a great hotel without paying the high price, and these travel hotel hacks will help you to do that.

Research

When you do your research, try to use sites such as Trivago. All you have to do here is enter your destination into the search box. The site will then ask you to fill out your travel dates and before you know it, you could be well on your way to booking your dream hotel. You can even put down the board requests that you have as well. This is great if you have some really special requirements. The main thing that you have to remember here is that not all hotels are on sites such as this. Make sure that you compare prices on other websites too as this will show you hotels that you never even thought existed.

Before pulling the trigger, always try to find your target hotel’s direct online site and compare prices. Sometime the hotels run specials that the hotel broker-site’s don’t know about.  Ever consider an exotic vacation to Mexico? If you want to save more money while still getting a great room, why not consider the Courtyard Leon at The Poliforum? Sometimes going somewhere not as well-known can save big bucks.

Image source

Cashback

Did you know that it is more than possible for you to earn cashback on your next hotel stay? All you have to do is sign up through a cashback website. When you do this, you can then purchase something listed on their site. Every time you do this, you will get some money back. If you use sites like this for every aspect of your vacation, you’ll soon find that it isn’t hard for you to really get a good result out of your travel and it is a great way for you to take some extra holiday money with you.

Image source

Trade for a Villa on Family Holidays

When you go on a family holiday, instead of booking a hotel, consider going for a villa. You can save hundreds by doing this and this doesn’t just have to apply if you are going abroad. It is more than possible for you to stay at a B&B and it is also possible for you to rent some seriously luxurious hotels out of season. You can always haggle with them as well. In some instances you may even find that they are way nicer than the chains you have looked at. You can also try to work with the person who owns the B&B to ask them if they would be willing to give you a discount if you write a review or even if you shared their site on your blog. Publicity is always a great tool and hotels are usually very happy to take advantage of it.

Lastly, don’t forget to check sites like Airbnb and VRBO. People all over offer great homes and rooms for lower cost than many hotel chains and offer great value.

 

It’s more than possible for you to get a great hotel and at a very low price. The only thing that you really have to do is your research while also making sure that you look into all of your options. No matter where you go to stay, always check their reviews first!

Retiring With An FSA Healthcare Account? Leverage The FSA Loophole BEFORE You Retire!

Health, Saving Money, ,

If you are going to finally ditch the rat race and will be retiring with an FSA at your job, then you have some things to get right before your retirement date. Failing to do so means losing everything in your FSA account. Do it right and not only can you use up all you have contributed but even more than you have paid into it for the year.

An FSA (Flexible Spending Account) is a fairly common employment healthcare benefit that many companies offer their employees. Most people are familiar with the FSA “use it or lose it” rules that apply to your account at the end of every year. It is why some employees decide not to participate in this nifty tax-free health benefit. But if you have an FSA now and are planning to retire this year, or haven’t used an FSA but do plan on retiring after the first of next year, then you may want to keep reading. You can leverage your FSA to the fullest in the year you retire and even get more money for qualified FSA medical costs than you paid into your FSA.

Retiring With An FSA Healthcare Account? Leverage The FSA Loophole BEFORE You Retire!Image Source

Don’t Lose Money When Retiring With An FSA. Be Smart And Leverage It To The Max

How The FSA Works

You set aside money through your employer pre-tax. It’s to be used on qualified medical expenses that your health insurance doesn’t cover. Employer benefit enrollment activity usually heats up in October thru November. That is when you commit to wanting an FSA and how much money up to the federal FSA limits you want to commit to it for the next year. For 2020 that limit amount is $2750 (update–For 2023 that limit amount is $3050). The employer then takes an equal amount out of each of your paychecks throughout the year. For example, if you decided to contribute $2750 to your FSA for the year, then having a biweekly paycheck schedule means $105.76 will be deducted before taxes from each check.

You are allowed to spend FSA funds in advance of your contributed money, right up to your committed FSA contribution amount for that year. For example, if in March you incur FSA qualified medical expenses for $2000 but only have 3 months ($635) of payroll FSA contributions so far, you can still use your FSA funds to pay the full $2000.

This FSA money is normally only good to use until the end of year (small extension may apply) and any unused money reverts back to the employer. That’s the “use it or lose it” part of the FSA. However, the FSA is handcuffed to your employment. When you retire you are quitting your job and the FSA ends on your last day, not the end of the year. Any unused funds in your FSA reverts back to your employer on the day you skip out the door for the last time. So don’t do that!  Get smart and plan ahead.

Retiring With An FSA And Spending More Than You Contributed- The FSA Loophole

Retiring right means you probably have an idea of when you want to retire. This is an advantage because it gives you time to strategize your medical treatments and other FSA qualified spending before your magical date. The way the FSA loophole works in your favor is that even though you may retire before the end of year, you can spend up to your yearly committed FSA amount in advance and not have to pay back the amounts spent above what you have contributed. The earlier in the year you retire the more you can benefit. (Update 2022: In rare cases, FSA plan documents specify that any remaining contributions can be taken from your last paycheck when you leave your job. Check with your employer regarding their FSA rules)

For example, retire in June and spend up to your committed full year FSA amount before you leave. By June you have only contributed half of your yearly FSA commitment but you can spend the entire year’s amount. Meaning you just doubled your money. The rules that allow your employer to keep any unspent FSA funds every year also means your employer has to eat any departing employee’s FSA deficit when they retire.

Don’t feel bad that you are stiffing your employer. A lot of employees don’t manage their FSA funds very well and lose their remaining balance. Unused FSA funds total in the hundreds of millions of dollars each year. Your company will be using these kinds of yearly forfeited funds that they get to keep to cover your taking advantage of the FSA loophole. Believe me, no company executive will get their bonus trimmed because of this.   

Pre-retirement FSA Spending Strategy

Take advantage of the time you have before your retirement date. It is best to start this long before announcing your retirement. There are lots of ways to use your full FSA funds. Even if you are healthy and without pending health issues to take care of. Basically, all the things you might try to spend your FSA money on before the end-of-year deadline qualifies for this FSA pre-retirement strategic health spending.

  • Get up to date on your medical checkups. There are always things in wellness checkups that will cause costs that insurance doesn’t cover.
  • Get your eyes checked or at least get those new glasses and/or contact lenses you will be needing. Get as many as you think you might need.
  • Go to the dentist. We all know how much implants, crowns and bridges cost. Dental Insurance usually just takes the sting out of the bill. Non-cosmetic dental work is covered under FSA. Now would be the time to take care of all dental issues that you have put off.
  • Back problems? Fasciitis or Tendinitis? If you want to visit a Chiropractor to help heal your back, now would be the time to try it. Acupuncture is also something that may help hard to heal issues. Qualified medical issues are covered under FSA, a prescription or letter of medical necessity may be required.
  • Orthotics are a qualified medical expense. It never hurts to get another set of inserts. Think about your upcoming time on your feet doing retirement activities.
  • Replace, update, or expand your first aid kit. An adventurer level first aid kit can be expensive but worth every penny in an emergency situation. Most anything you would normally store in your medicine cabinet can be bought with your FSA funds. Stock up on bandages, a good thermometer, blood pressure monitor, heating pads, etc.  

Remember, anything that qualifies for FSA spending while an employee before the end-of-year deadline will qualify for your pre-retirement FSA spending strategy. Choose merchants that can process your FSA card. One online merchant to look at is the FSA Store.

If you are retiring with an FSA, then plan ahead and leverage it to your utmost advantage.

Don’t leave anything on the table. In fact, take it to the limit. Depending on your planned retirement date, double or triple your money. If you haven’t been using your employer’s offered FSA health benefit thus far and will be retiring after the next enrollment period, consider starting an FSA and set yourself up before you retire.

Retiring or not, always check for all qualifying FSA expenses that you may need. Utilize your FSA funds before your “use it or lose it” deadline. Whether that is end-of-year or your last and happiest day on the job.

Update 11/5/20: For those retiring and signing up for their employer Cobra insurance coverage. Your FSA may also be extended past your employment date with Cobra. Do your research to see if this will apply to you.

How Much Cash Is In Your Portfolio? Why I Increased Retirement Cash Holdings

Bucket Strategy, Funding Retirement, Investment Strategy, Protect Assets, Risk Tolerance, Saving Money,

I decided I wanted to cash in a few chips and take some of my profits off of the table. I sold off investments and increased retirement cash holdings in my portfolio. Not just a little bit either. I’m on my way to 20% of my portfolio being cash. My decision had nothing to do with in-depth analysis of the yield curve or stock price to earnings (PE) ratios. Nor inflation threats or claims a lack of available workers may drag down this country’s latest economic growth predictions. Not to mention the possible negative economical impact of trade wars. Nope, it’s simply because of the convergence of my age, life expectancy, and the numbers to cover my nut with less on the table. It’s personal.

Increased Retirement Cash Holdings

Increasing Retirement Cash Holdings – What’s the Right Portfolio Percentage?

We all know we have to accept investment risk if we want decent returns. You have to play to win. Nobody can exactly predict or time the market. Major drops happen when they happen. That means we have to stay in through thick and thin.

Investment history suggests that over the long-term the balance of risk vs returns is generally favorable to the investor. Especially when we are practicing dollar cost average investing through both good and bad markets. But that all turns more into a gamble as the investor’s age vs longevity ratio tightens and we are no longer feeding the portfolio with earned income but instead depending on the portfolio to fund our retirement lifestyle. Market recovery time becomes more critical. A 5 year recovery period is a bigger percentage of your remaining life when you’re 60 than when you’re 45.

Portfolio Rebalance and Re-Running the Numbers

When I retired at the age of 51 I kept a small amount of my net worth in cash. I have different expectations now that I will hit the age of 60 later this year and can almost see my Social Security full retirement age ahead of me. I know how fast my years in early retirement have flown by thus far and will soon no longer be considered an early retiree.

For the most part I use the 110 minus age declining equity glidepath approach to rebalancing my portfolio. Subtract your age from 110 and that is the equity portfolio percentage to consider having. Logically that leaves the rest to bonds and cash. I use 110 instead of 100 for my declining equity glidepath rebalance calculation because Social Security will eventually play a role in the non-equity side of retirement funding. The calculation doesn’t explain how much cash is appropriate in the non equity side of the portfolio. Opinions seem to always be critical of holding too much cash. As far as I am concerned, when you have experienced a good run and have enough, it’s time to set aside some of your winnings.

I settled on 4 years retirement funding in cash plus a $25K emergency fund. My retirement withdrawal strategy uses a bucket approach and the cash is in my IRA’s bucket #1 and a savings account. My portfolio allocation looks like this:

  • 18.5% Cash/Cash Investments
  • 29.5% Bonds Fixed Income
  • 48% Equities
  • 4% Alternatives

To determine how much cash I wanted I simply understood my overall goals.

  1. Not have to worry or sell equities during a rotten market.
  2. Have my portfolio last as long as I do.

Increased Retirement Cash Holdings looks good

I then ran the numbers through the retirement calculator-FireCalc. I used 35 years of funding, 45% equity investment position, social security provided estimate amount, bumped up my yearly spending amount by $10K to counter higher cash holdings with its lower returns, and let her rip. The results looked great!

Full Proof? Hardly

Cash doesn’t offer anything in earning interest today and I have no idea how hard inflation will hit. Will interest earnings climb enough to offset inflation? Who knows. I also don’t know what will happen with social security, the markets, or the price of tweets in the White House. However, I am comfortable with this level of cash holdings even going to 20%. This is a decent time to take profits and I will continue rebalancing as long as the market continues to climb. I feel that the FireCalc calculation padding I used in my income numbers and longevity (I seriously doubt I will live to 95) that my odds look really good. Aside from all the financial considerations there is also the mental benefits to my increased cash move.  

High Retirement Cash Holdings – Cowardly or Courageous?

I do have a healthy fear of another market crash and multi-year recovery. There have been enough of them in my years of investing to know there will be more. I am making some optimistic assumptions when there are plenty of unknowns going forward. But what’s new there, there’s always unknowns when it comes to investing and retirement. I do count on adjusting things as needed.

I don’t see pulling a higher amount of cash to the side as either cowardly or courageous. This is simply wanting to hedge my bets and have options. I can cease selling any assets or taking IRA withdrawals in a down market and take advantage of opportunities to buy investments when they arise.

 

As far as I can see, taking profits after a historically long running Bull Market to have higher retirement cash holdings provides both downside protection and upside opportunity. At least in my personal situation. What is the perfect percentage of cash holdings to have in one’s retirement portfolio? How much cash is in your portfolio?

Home Life Made Simple: Upgrading to a Wi-Fi Thermostat

DIY, Do It Yourself, Saving Money,

When you are thinking about retirement, you have probably considered moving to a new home in a nice beach town. Or, maybe you want to stay right where you are and finally spend the time doing renovations to truly create your dream home. With all of the new gadgets on the market today, there are countless ways to update your home and make it quite an impressive, modernized place to be.

 

 

One of the latest technologies on the market for home improvement are Wi-Fi thermostats. There is nothing worse than a temperamental HVAC system—especially during the dreary winter months. If you have ever forgotten to turn on your heat when you go away for a weekend and come home to a frigid house, you know the feeling of being frustrated with your thermostat. But here comes the good news: purchasing a Wi-Fi thermostat is sure to solve all of these issues, and you will never have to worry about extreme temperatures in the home being out of your control again.

 

A Wi-Fi thermostat will connect to your home’s wireless Internet service, allowing you to control it from your tablet, mobile phone or computer by using an app. They are quickly becoming the standard for homes, appealing to all age groups for their relative cost. Buying a Wi-Fi thermostat will come with many additional advantages for your home, including:

  • Savings – Wi-Fi thermostats are said to cost you 30% less on your energy bills per year. That’s money well saved—and spent on other, much more fun retirement activities!
  • Safety – Wi-Fi thermostats allow you to set reminders and alerts when it is time to change your filter. Plus, they can tell you when there is an internal issue of some sort going on with the system, which can help you to make quick and easy repairs before the issue gets worse.
  • Convenience – Wi-Fi thermostats can also be controlled from anywhere with a mobile device, making it convenient to control your home’s temperature when you are away so your home always stays perfectly adjusted.

 

With all of these benefits, you can understand the many advantages of Wi-Fi thermostats for the sake of creating even more at-home conveniences with the help of technology during your retirement years.

 

This is another in a line of informative articles contributed to Leisure Freak by freelance writer Jackie Edwards that illustrates how easily we can do small things to improve our lives .

Now working as a full-time freelance writer, Jackie Edwards is also a busy mum of two small children. In any free time she has (which isn’t much) she likes to volunteer and do charity work and take the family greyhound Bertie for long walks.

Common Money-Saving Beliefs That Are Slightly Off

Financial Independence, Financially Free, Saving Money,

There is a lot of advice about how to be financially responsible and improve your financial future. Much of that advice is delivered with broad strokes as absolutes. However, some money-saving beliefs overlook the fact that there are no absolutes. Missing that may end up hurting you in your savings goals and quest for financial betterment. The broad stroke money advice isn’t wrong, it’s just incomplete. It’s also easier to believe and maneuver through time-tested money rules that are black and white. The gray area money rules takes a bit more discipline. As with any gray area it takes awareness and a more strategic approach to stay on the right financial track.

 

Money-Saving Beliefs That Need Clarification

Avoid Debt At All Cost

While it is true that debt can kill financial goals it is actually a necessary evil. Responsible debt practices will help you save more money. The trick is to use debt to your advantage and never succumb to it’s easy access allure. Smart debt use is harder to explain so debt avoidance is preached and solidly part of our money-saving beliefs. Here is why smart debt is important to us.

The Importance of Having a Good Credit Score

Everyone knows having a bad credit score due to poor payment practices and having too much debt is bad news. It will cost you, but so will having no credit score. You have to borrow and establish good payment habits to create a decent credit score that will save you money. Not only for securing a lower interest rate for any needed debt but it’s important for many other things that touch our lives.

  • Insurance –  Auto insurance and property insurance companies generally offer lower rates to clients with a good credit score.
  • Rent – Having a bad or nonexistent credit score may result in having to pay a higher deposit amount or being rejected.
  • Jobs – Many employers run security checks for new and existing employees. Part of the check may include credit scores.
  • Rewards – Many credit cards now offer rewards in cash or travel points to use their credit cards. Having debt discipline can actually pay you to responsibly use a debt instrument to buy what you need to buy anyway. In the absence of any other debt, using a credit card and paying the balance off every month will help your credit score.
Debt Associated To Income Producing Assets

Debt can be used effectively to generate income. I’m not talking about borrowing a bunch of money to make risky investments like bitcoin. Think something far more traditional.

  • Rental Property – Debt leveraged by income producing rental properties is an effective money producing strategy for real estate savvy investors.
  • Business Loans – Many profitable businesses can responsibly utilize debt to grow their business.

Always Shop For The Lowest Price

Looking for deals to save money on anything we need to buy is sound advice. But it shouldn’t be the only factor used in our purchases. Quality must also be considered for our purchase.

  • Online Purchases – Everyone enjoys a good online deal. But the posted price is only one part of the equation. There may be shipping costs and even if there isn’t with the purchase there can be shipping costs on returns for a defective, non-fitting, or misrepresented products.
  • Reliability – Paying a bit more for quality saves money in the long run. Costs to repair or replace cheap priced cheaply made items can add up. Always include some product quality research before buying.

Don’t Rent, Buy A Home

It is easily the first money lesson I was taught. Renting is paying to increase someone else’s net worth so buy your own home. Home ownership has always been touted as the main path to the middle class. Although this financial advice is true, this money-saving belief is not absolute. There are situations where buying your home may not be in your financial best interest.

There are many benefits to owning your own home. Bought right, you have an appreciating asset and a hedge on inflation. Rent is always going up. However, there are many considerations that must come with this money-saving belief.

Here are some of the home ownership money-saving pitfalls to be aware of:
  • Buying More Home Than You Really Need – Just because the mortgage company says you can afford it doesn’t mean it will be smart debt use. A larger home can be sold later to downsize but while you live in it you pay higher utilities, higher property taxes, and have a lot more to maintain.
  • Overlooking Mandatory Additional Costs – It’s easy to do a rent vs buy cost analysis on a property based on sales price and your likely loan interest rate. However, don’t forget to also include any HOA fees. These can be already high and/or climb even higher over time. In some extreme cases they may surpass your mortgage payment amount. Aside from HOA fees also consider insurance costs. With all the wildfires, storm damage from wind or hail, and flooding of late, insurance rates may be very high depending on where you buy your home. These are things often missed in rent vs buy calculations.
  • Maintenance – Every property will require maintenance and needs to be budgeted for. If you have to hire most or all of that maintenance out then that is another high cost that must be considered.
  • Mobility/Staying Put – In normal real estate markets, people who don’t stay in one place  for at least 5 years may at best end up breaking-even when it comes time to move. Real estate sales cost and a less than stellar real estate appreciating market can cost you much. If your relocation is job related and your home doesn’t sell quickly you can be left making payments on an unused and empty home. Real estate doesn’t always go up. There will be cycles as with any investment. Reasons for depressed real estate gains is not only tied to economic trends but also location specific dynamics.
Should The Money-Saving Belief  Be Considered a Yes, Maybe, or No?

These are just a few common money-saving beliefs that are slightly off if they are not fully clarified. Any broad stroke advice is a starting point. It is the money rule that easily gets our attention. Then as with anything, we need to slow down and look at all the variables. We have to research the money-saving advice and then wisely use it. A lot of money-saving beliefs are more a “maybe” than an “always” situation.

How To Save For Retirement

Investment Strategy, Retire Early, Saving Money,

You should always be planning for your retirement. You need to make sure that you have enough money to live on in the years of your life when you cannot work. This might seem like a long way away, but the sooner you put a plan in place and start to work towards having money for retirement, then the easier it will be. Here is a quick guide on how to save for retirement.

How To Save For Retirement

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3 Basic Moves To Save For Retirement

Property

If you can outright own your house or home, then you will have a much easier retirement life. This is because once you have paid off the mortgage, you won’t have that large monthly outgoing to worry about. Instead, you will own the house and be able to live in it into your twilight years. This also means that if you need to move to somewhere smaller, you could sell the house and make a large amount of money from doing so. This money will help you live in your retirement years, and even if you spend some of it on another house, you should still have a large amount left over.

Aside from your home, if you can, you should consider investing in other properties. You can either flip them or rent them out for a monthly income. Renting is a popular choice as it will mean that you have a steady cash flow coming into your bank account long after you have stopped working. With that rental income you can live a more enjoyable retirement life. If you don’t have any property investments, then you should consider making some.

Pension Fund (aka Retirement Account)

This is the most basic way that you can save your retirement. Your pension fund, usually 401K and/or IRA, is yours alone, and the amount that you put in within their limitations it is entirely down to you. This means that it is great for retirement planning after a divorce. How you want any left behind pension funds handled when your retirement comes to its official end is up to you too. Remarried couples where children are involved can include within their retirement planning their specific estate distribution desires.

Your pension fund can take a flat rate or percentage of your earnings each year and gradually grow through your life. Not just grow with investment gains and interest earned, but also grow because of higher pension fund contribution amounts as your salary increases over time. The larger the percentage of your earnings you pay in each month, the more you will have access to when you retire. This means that if you can, you should try to live on a little less each month so that you can save more. This can be as little as a few percent extra of your yearly income each year, but it can make a massive difference when you retire.

Regular Savings

There are a number of other savings accounts and ways to save money that are available to you and if you treat one of those as your retirement account, then the more that you put in the better. You should be aware that interest rates change all the time and try to switch your account to a different provider for the best deals when possible. However, even if you don’t do that, you should try to save as much as possible and make the most of your yearly interest. Time and compounding interest are your best friends when it comes to saving for retirement.

How Planning Ahead Can Save You Money

Saving Money, Vacationing in Retirement,

Birthdays, nights out, and vacations can be expensive, and threaten your budget. If you would like to maintain your financial health, and get more value for your money, it is a good idea to plan ahead and secure the best prices and discounts available in the market. Below you will read some of the tips on how to make your money go further; whether you are planning a vacation, a romantic dinner, a day out with the kids, or if you’re my age, spoiling the grand-kids.

Use Discount Code Sites

Planning Ahead Can Save You Money

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You could shop around to get a discount on your flights, cruises, restaurant bookings, or even hotels if you start your search early. There are several last-minute travel sites and voucher code pages on the internet that offer great savings for customers. You don’t have to sign up for each of them, as you might be overwhelmed by the number of promotional emails you receive. Instead, you could simply search for your destination or restaurant on the site.

Book Your Transportation Early

You can save a lot of money on travel and transportation if you book your flights, taxis, or train tickets early. Check out https://www.rydely.com/ for travel voucher and discount codes. You can even get a family travel card or book your parking in advance to save money. If you already know the dates of your travel or night out, you can put everything in place on time, instead of making last-minute reservations.

Take Advantage of Young Person’s or Senior Discounts

You are likely to find young people’s, family, and senior discounts offered by restaurants, bars, and event organizers. You can cut the cost of your travel by making sure that you don’t pay more than you have to. Choose the right package and type of ticket, and check out the different offers. Some restaurants have happy hours for seniors or couples a few days a week, and this will help you save money.

Don’t Buy What You Don’t Need

 

Sometimes, you will be offered services you don’t need. If you are traveling by air, companies might add insurance to your booking that you already have through another company. Before you book cheap flights online, make sure you need the guarantees and services that are added to your account, or you will end up paying more than necessary. Getting a meal on board can be expensive, and if you have a meal before and after the flight or pack snacks, you can save hundreds of dollars per family.

Eliminate Credit Card Fees

Whenever you book a table online or order your tickets for events, look out for credit card  charges. While it is a good idea to make a vacation booking using your credit card, as it is easier to claim money back, you don’t want to pay extra for this convenience. Check out the terms and conditions before you complete your booking.

 

Whenever you are planning a night out or a vacation with your family, you should compare prices and get all the information to avoid paying more than you have to.

Cruising Doesn’t Mean Your Wallet has to Take a Bruising: Getting the Most from Cruise Line Deals

Saving Money, Vacationing in Retirement, ,

Going on a cruise tends to appear rather frequently on lists of things that pensioners want to try out in their retirement. But many think that heading out to sea is out of their means and thus throw their ambitions to the wind. This doesn’t have to be the case! There are plenty of ways that you can land yourself on the deck of a liner with a limited budget. You just have to be a little savvy with your spending and look out for the best opportunity to book your trip. Here are a few tips and tricks that can ensure you get to experience the cruise of a lifetime.

Getting the Most from Cruise Line Deals

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Seize Opportunities

Luxury cruises may find that they have a couple of places available at short notice. Perhaps some passengers have canceled their booking without much notice, or one room is left over after a particularly large group booking has taken up the rest of the liner. In situations like these, liners may offer discount deals due to the inconveniences that late notice entails. You should seize these opportunities. If the cruise is all-inclusive, you are likely to be well catered for and will simply have to pack a few personal belongings, your sun cream, and your passport. Check out the website Vacations To Go for great deals. They allow you to signup to receive email notifications of the latest deals found.

If you don’t have the cash at hand to book last-minute, you can always take out a personal loan and pay the amount back to a lender in smaller, more affordable installments. This means that you can take advantage of the reduced price of the trip, which may no longer be available by the time you have saved the amount for yourself. The last minute trip savings may far offset any loan interest you will pay on the loan. UK readers should check out GoBear comparison and those in the US check Bankrate for the best offer available to you.

Getting the Most from Cruise Line Deals EZ

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Travel With a Companion

Cabins with two beds tend to be more affordable than cabins with one, individual bed, as you can split the overall price between you and another person. So find a travel companion(UK) or check out Friendly Planet and head away together. You could also share travel down to the liner itself and back (whether you share the drive or you decide to take a taxi and split the fare). This will make the trip cheaper and also more pleasurable, as you will have company throughout. Just remember to choose someone who you will feel comfortable inhabiting a relatively small space with for an extended period of time.

Haggle

Believe it or not, you can still often get away with haggling when it comes to engaging with estate agents and cruise liner companies. If you have seen a similar cruise offered by an alternative brand for a cheaper price, chances are that others will match the price in order to win your being their customer. So, take a look at all of the options available to you. Choose your preferred cruise liner and see if you can knock the price down a little. It’s always worth a try!

These are just a few ways to cut the overall costs of heading away for a break on a cruise liner. Try them out and you could save yourself a few bucks that can be put away for a rainy day down the line.