Vicky Monroe

How To Save Money When Purchasing Summer Clothing

May 11, 2021 By Vicky Monroe Leave a Comment

Do you need to save money on summer clothing? During quarantine, two in five American adults (myself included) put on some extra pounds. On average, those of us who gained weight added 29 pounds to our figures over the course of the pandemic, which is a difference of about two dress sizes.

If you recently pulled out your summer clothes from last year and realized they don’t fit, you’re probably going to need some new summer clothes. Or maybe just want to treat yourself to a new warm-weather wardrobe after the tough year we’ve had. No matter why you need new sundresses, here are some tips to help you save money at the mall so you don’t drain your bank account.

Wait for End-of-Season Sales

End-of-season sales for spring and summer merchandise usually happen in June and July. If you can wait until then to buy your summer dresses and bathing suits, you can score some major deals on summer clothing.

Shop at Discount Stores

If you need some warm weather clothing now and can’t wait for end-of-season sales, try shopping at discount stores like Ross, Marshalls, and Nordstrom Rack.

They offer great low prices year-round, especially if you shop the clearance rack. If you get lucky, you might even find heavily discounted designer items to add a touch of luxury to your summer outfits.

Buy Discounted Gift Cards

To save even more money at discount stores, you can buy gift cards on sale from websites like Raise.com. They sell gift cards for up to 30% less than their monetary value.

Right now they’re even offering a new member special that gives you an extra 10% off your gift card. Keep in mind that they’re capping the discount at $20. However, it’s still a great deal that you should take advantage of if you need a lot of new summer clothing.

Use a Cash Back Credit Card

If you don’t want to commit to shopping at a particular store by purchasing a gift card, you can pay with a cashback credit card instead to get a similar discount. The Citi Double Cash Card, for example, gives you a total of 2% back—1% when you make your purchase and 1% when you pay it off.

By stacking your credit card rewards with sales, coupons, and promo codes, you can save a pretty penny on your new summer wardrobe.

Take Advantage of Rebate Websites

If you don’t use rebate websites, you’re leaving money on the table. Companies like Rakuten, TopCashBack, and Swagbucks will give you cashback just for buying clothes at your favorite stores.

All you have to do is shop through the rebate site’s online portal or app. Once your purchase is verified, your cashback will be deposited into your account and can usually be redeemed for gift cards or a check.

Buy Secondhand

Shopping secondhand is better for both the planet and your wallet. Thrifting prevents clothes from being tossed into a landfill and enables you to find some great pieces to spice up your outfits on the cheap.

You can look for gently used clothing in person at consignment shops and thrift stores or shop online from the comfort of your own home. Resale websites like Poshmark, Mercari, and Thredup are great places to find trendy pre-loved summer dresses and skirts to complete your warm-weather wardrobe.

Organize a Clothing Swap

Organizing a clothing swap with your friends is a great way to save money. You’ll be able to get rid of last season’s summer clothes and pick up some new outfits without spending any money. If your friends have a different fashion sense than you, a swap will also give you the opportunity to switch up your look and experiment with new styles for free.

However, clothing and shoe swaps only work if your friends are roughly the same size as you. If they aren’t, you can always do an accessory swap instead to pick up some new jewelry, scarves, handbags, and hats for the summer season.

By taking advantage of sales, using discounted gift cards, and swapping clothes with friends, you’ll be able to fill up your closet with new clothes without breaking the bank.

What are your favorite ways to save money on clothes? Let us know in the comments section below.

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The Financial Costs of Allowing Adult Children To Move Back Home

May 10, 2021 By Vicky Monroe Leave a Comment

Young adults at the beginning of their careers have been hit especially hard by the pandemic. Due to the economic effects of COVID-19, 68% of entry-level job openings were eliminated.

This left many new grads without a job or a way to support themselves. As a result, 32 million adult children have moved back into their grandparents’ or parents’ homes since April 2020.

A recent survey showed that most parents are happy to have their kids return to the nest after college. But there is a financial cost to welcoming your kids home. Before you let your kids live in their childhood bedrooms rent-free, consider whether or not you can afford it.

Can You Afford To Let Your Kids Move Back Home?

You probably think that it doesn’t cost that much money to let your adult children move in with you. After all, you have the space and wouldn’t need to move into a bigger home to accommodate them.

But according to a study by Porch, allowing just one of your kids to come back home will cost you $459 per month. Adding another person to your household increases your gas, grocery, and utility costs.

Those expenses can add up and put a big drain on your finances, especially if you would’ve invested the money instead. Putting $459 per month into your retirement account for a decade could give you an extra $79,791 in retirement if it earns an average return of 8%.

If you’re on track for retirement, you may be able to make that sacrifice. But if you’re one of the 40 million American households that doesn’t have a nest egg, you might not be able to afford to take your children in unless you charge them rent.

Charging Your Kids Rent Is a Good Financial Compromise

If you have consumer debt or an underfunded retirement account, you may not be able to afford to house your adult children rent-free. But luckily there are ways to help them out without sacrificing your own financial future.

Many parents in this situation ask their kids to help out with bills or charge them rent. Covering the utility bill or paying below-market rent will cost your kids far less than living on their own. They’ll still be able to pay off their student loans or build up savings without putting financial strain on you.

If They’re Unemployed, Ask Them To Contribute in Other Ways

But what if your child’s income source dried up due to the pandemic, leaving them without a lot of spare cash? They can still chip in by doing chores and maintenance around the house. Ask your child to mow the lawn so you can stop using a landscaping service and save money. If you order takeout because you don’t have time to cook, your child can help you out by making dinner.

Encourage them to keep applying for jobs aggressively so they can get on their feet. Even if they can only find something part-time or outside of their degree field, emphasize that it’s better to have some money coming in than none. Although you may love having your kids at home and getting to spend extra time with them, it’s important for them to understand that it’s not a permanent solution.

They still have to contribute to the household and make strides towards becoming independent adults. You won’t be around to support them forever, and you have your own financial future to worry about. So don’t be afraid to set some boundaries and give them a timeline for when you’d like them to move out.

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Retiring During a Pandemic Is Possible

May 4, 2021 By Vicky Monroe Leave a Comment

The pandemic changed many people’s plans, including retirees. About a third of people who were planning to leave the workforce decided to hold onto their jobs in light of COVID-19.

Considering that the stock market crashed as a result of the coronavirus, delaying retirement in 2020 was a smart choice. But now that the economy is reopening and the stock market is recovering, it may be safer to retire.

Now May Be a Better Time to Retire Than You Think

Although the pandemic isn’t over yet and the future still feels uncertain, things are looking up.

Vaccines are being rolled out throughout the country and COVID cases are declining rapidly in some areas. The economy also appears to be on the rebound with an unemployment rate of just 6.3%.

All things considered, now may not be the worst time to pull the trigger and leave the workforce. Here are a few more reasons why you should feel optimistic about your retirement prospects.

The Stock Market Is Rallying

The pandemic caused millions of Americans to lose their jobs. When COVID struck, the nation was entering the worst recession since 2008. However, the stock market seems to have bounced back. and plunged the economy into the worst recession since 2008. However, the stock market seems to have bounced back.

The S&P 500 grew about 16.3% in 2020. Additionally, S&P 500 companies recently posted strong first quarter earnings reports, which bodes well for the economy.

Although the stock market is still volatile, experts seem optimistic. Many are calling this turnaround the fastest bear market recovery in history and expect things to continue improving. So it may not be the worst time to start drawing down your investments.

Home Prices Are Surging

Home prices have surged during the pandemic due to low interest rates, high demand, and a lack of inventory. The median home value rose by 14.9% in the fourth quarter of 2020. CNBC estimates that the average homeowner gained a whopping $26,300 in equity last year.

This hot real estate market is good news for homeowners who are nearing retirement age. If you sell your house and downsize, you could walk away with a sizable profit. This may enable you to pad your investment accounts and grow your nest egg, putting retirement more within reach.

Americans Are Spending Less

Another factor that may make it easier to retire is that you’re probably spending less. Nearly 40% of Americans reported that their spending decreased during the pandemic. Because dining out, shopping, and travel were all restricted, many people found it easier to reign in their budgets and save more money.

If you’ve learned to live on less during quarantine, you may not need as big of a nest egg to retire. This could make it possible for you to leave the workforce sooner than you thought.

How To Know if You’re Ready To Retire

Pandemic aside, there are lots of factors you’ll need to consider before you decide to exit the workforce. Here are some questions to ask yourself to determine whether or not you’re ready to retire.

Evaluate Your Assets and Sources of Income

Retirement is only possible if you have enough assets and income to fund your desired lifestyle. So first, you’ll need to calculate your monthly cash flow and see if it will cover your bills and leave you with some cushion for unexpected expenses.

Add up all of the sources of income you’ll have in retirement, like social security, pensions, side jobs, and rental income. If you plan on waiting a few years to collect social security to increase your payout, you’ll need to make sure you have enough money saved to cover that gap in income.

You’ll also need to figure out how much money you can safely withdraw from your retirement accounts. Many retirees use the 4% rule, which means you’ll withdraw 4% of your investments in the first year of retirement and adjust that amount for inflation every year thereafter.

Decide if You Have Enough Money To Live On

Once you know how much money you’ll have coming in every month, you’ll have to decide if it’s enough to live on. Financial experts say that you’ll need about 70% to 90% of your pre-retirement income to live comfortably in your golden years.

But if you have debt or other financial obligations like adult children who depend on you, that may not be enough. You might also need a larger nest egg if you have big dreams for your retirement like traveling extensively or opening a business.

If you don’t qualify for Medicare yet, don’t forget to factor in the cost of health insurance. Marketplace plans can be expensive, so make sure you have a plan to pay for it.

Many seniors will also need to move to a nursing home at some point during their retirement. Most financial planners recommend that you purchase long-term care insurance before age 65 to help cover the cost so you don’t drain your nest egg.

But if you’ve looked into it and decided insurance isn’t right for you, make sure you have some other way to cover unforeseen medical expenses like long-term care.

Planning for retirement can be difficult even when there isn’t a global pandemic. If you’re uncertain whether or not you’re financially ready to leave your job, it’s a good idea to speak to a financial planner. They can help you navigate the extra challenges that retiring during a pandemic brings.

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Budget Burnout: How To Keep Your Goals Realistic

April 27, 2021 By Vicky Monroe Leave a Comment

If you’re struggling to stick to your budget, it might be because you’ve set unrealistic goals for yourself.

We all want to max out our retirement accounts and aggressively pay down our debt. But it’s important to create a budget that accurately reflects your financial means.

If you only make $30,000 per year, it would be prohibitively difficult to save $1,000 or more per month. Building your budget around that kind of objective would be setting yourself up for failure.

Here are some tips to help you keep budget goals realistic so you don’t burn out and give up.

5 Tips to Keep Your Budget Goals Realistic

Go Through Your Bank Statements

When you make a budget, it’s important to use numbers that are based on your current spending. Creating your budget without looking at your bank statements is a recipe for frustration. If you guess how much you spend every month, you won’t know if the savings targets you’re aiming for are realistic.

Get out your calculator and bank statements from the past few months. Add up your fixed monthly expenses like rent first—they’re the easiest to calculate because they don’t fluctuate.

Then figure out how much you spend on discretionary expenses like groceries, eating out, and travel. You can do this by adding up how much you spent on each category over the past three months. Then divide it by three to find the average.

Don’t forget to account for semi-annual expenses like car insurance and miscellaneous things that pop up, such as car repairs and maintenance. Then record all of these numbers in a spreadsheet so you can easily reference them.

Cut Your Expenses Gradually

If you haven’t crunched the numbers before and figured out how much you’re really spending, you might not like the results. There may not be much money left over at the end of the month to meet the financial goals you want to achieve, like buying a house.

Experts recommend that you save about 20% of your income every month, which is a good benchmark to keep your budget goals realistic. If you’re not hitting that number, you may want to trim your expenses so you can set some money aside instead of living paycheck to paycheck.

However, it’s important to start cutting back gradually. If you reduce your eating out budget by half, you might find it too difficult to stick to and give up.

Instead, challenge yourself to reduce your spending on restaurant meals by 10% every month until you reach your goal. That way you won’t go through lifestyle shock.

If you have multiple spending categories you need to reduce, focus on just one or two every month so you don’t get overwhelmed. And if you mess up and overspend, don’t beat yourself up. You can always borrow money from another category or save a little less, which isn’t the end of the world if it’s just for one month.

It’s going to be hard to change your lifestyle, but in the end, it will be worth it.

Include Fun Money in Your Budget

If you’re a natural saver, you may have the opposite problem—well over 20% of your income is going toward saving and investing every month. While this isn’t a bad thing, it’s important to set aside some fun money to enjoy your life and keep your budget goals realistic.

You can’t always say no to drinks with friends or pass up that new pair of shoes you have your eye on. Denying yourself everything you want and sticking to a spartan budget will eventually lead to frugal fatigue.

So make sure you account for discretionary spending. Experts say it’s ok to spend about 30% of your income on things like shoes, clothes, takeout, and subscriptions.

Revisit Your Budget Regularly

Your budget is a living, breathing document. As your income and circumstances change, it’s important to revisit your budget to make sure it’s still working for you.

I like to review my bank statements and budget spreadsheet once every three or four months. But you may need to adjust your budget more often during the first few months of following it.

It’s unlikely you’ll get your budget 100% right the first time, so take a look at it every month or so and reevaluate it. Use apps like these if needed.

App	Fees and Minimum	Best for:
Personal Capital	Free	Monitoring wealth and spending
Simplifi	Free	Personal budgeting
YNAB	$84 a year or $11.99 a month (after a 34-day free trial), free for students for 12 months.	Personal budgeting

Reward Yourself for Sticking to Your Budget Goals

Sticking to a budget isn’t easy, especially if you’re used to living paycheck to paycheck. So when you nail it, make sure you have a reward planned to celebrate your financial progress.

Your reward doesn’t have to cost a lot of money—it could be something as simple as a cup of coffee at your favorite cafe. But do something to mark this achievement. Recognizing the hard work you’ve put in is key to avoiding budget burnout.

We all want to achieve our financial goals quickly, which can make it hard to set a realistic budget. But creating an aspirational budget that doesn’t reflect your current spending is setting yourself up for failure and frustration.

So make sure you base your budget off your bank statements and cut back your expenses gradually so you don’t get burned out.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

10 Companies That Send Out Free Coupons

April 26, 2021 By Vicky Monroe Leave a Comment

Using coupons is free and can save you an average of $30 to $50 per week. That’s an extra $1,560 to $2,600 per year you can invest or put toward debt. So if you don’t currently clip coupons, you should definitely start.

The Sunday newspaper and grocery circulars are decent places to look for coupons. But you’ll usually save the most money by contacting companies that send out free coupons in the mail. Believe it or not, many big brands like Chobani and Crayola will give you a big stack of high-value coupons with long redemption windows if you ask for them.

Here are ten companies that are known to give coupons and free product vouchers to loyal customers on request.

SC Johnson

SC Johnson owns over a dozen popular brands including Glade, Ziploc, Scrubbing Bubbles, and Windex. So if you want to save on cleaning supplies and other household essentials, then fill out their contact form and request some coupons. They’re usually pretty generous—one blogger received a stack of a dozen $1 off coupons for various SC Johnson brands like Off! and Shout, plus $2 off any product from Kiwi.

Unilever

Unilever owns 400 brands including Hellman’s, Lipton, Dove, Klondike, and Ben and Jerry’s. Just like SC Johnson, they might send you a dozen $1 off coupons if you reach out and tell them how much you love their products.

Horizon Organic

Organic products are better for your family, but buying them can get expensive. Luckily Horizon Organic will send you some coupons to offset the cost of their delicious, healthy dairy products if you ask.

Hostess

If you have a sweet tooth and love Hostess desserts like Twinkies and Donettes, then you’ll be happy to know they’re one of the companies that send out free coupons in the mail. They’ve been known to give coupons and vouchers for free products to their loyal customers on request.

Hot Pockets

Sadly Hot Pockets doesn’t issue coupons very often. But they may send you some if you email them and tell them that you’re a big fan of their products.

Crayola

School supplies aren’t cheap, especially if you have multiple kids you need to shop for. Before you stock up on crayons and art supplies, ask Crayola if they’d be willing to send you some coupons.

Chobani

Chobani sells delicious coffee drinks, Greek yogurt, non-dairy creamers, and more. If you ask them for a discount, they might send you coupons or even a voucher for a free product.

Cottonelle

If you have a big family that goes through toilet paper fast, ask Cottonelle for a discount. They often send out $2 off coupons to customers on request.

King’s Hawaiian

Another one of the companies that send out free coupons is King’s Hawaiian. They usually send a couple $1 off coupons alongside a handwritten note and some helpful recipe cards.

Mrs. T’s

If you tell Mrs. T’s how much you enjoy their pierogies, they might send you a couple of coupons, a voucher for a free product, and some cute stickers.

Although it takes some work to email companies individually and ask for coupons, it might just pay off. Some companies will not only give you coupons but also vouchers for free products and company swag like stickers. So if you want to save a lot of money on your grocery bill, start emailing your favorite companies and ask them for discounts.

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Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Should You Own a Second Home in Connecticut?

April 19, 2021 By Vicky Monroe Leave a Comment

Connecticut has beaches, mountains, national forests, and lots of history, which makes it a top tourist destination. So if you’re thinking about buying a vacation home for your family, Connecticut is definitely worth considering. The state may also appeal to real estate investors because of its rapidly increasing property values. This past year alone, home prices have increased by 18% to 20%.

Whether you’re in the market for a beach house or a rental property, here’s why you should consider investing in a second home in Connecticut.

Why You Should Invest in a Second Home in Connecticut

Rapidly Increasing Property Values

The pandemic has caused many New Yorkers to flee the city for more space. Because they can work from home, they’ve been able to expand their home search to neighboring states like New Jersey and Connecticut.

This has caused property values in these areas to skyrocket. Home prices throughout Connecticut increased by 18% to 20% in 2020.

As more companies embrace remote work, this trend of city dwellers moving to the suburbs is likely to continue. So now may be a good time to invest in a second home in Connecticut to capture all of that appreciation.

Many Connecticut beach towns like New London and East Lyme have also become popular vacation spots. If you buy a home there and rent it out, you could make a tidy profit.

Interest Rates Are Low

Another reason to consider buying a second home in Connecticut is record-low interest rates. Right now the average 30-year mortgage rate is just 3.07%. If you can afford a shorter 15-year mortgage, you could get a rate as low as 2.41%.

This will substantially decrease the amount of interest you have to pay on your second home, which makes it an even better investment.

Connecticut is a Top Vacation Destination

Connecticut is a top vacation destination that draws in visitors from all over the country. The state has beautiful beaches like Hammonasset Beach Park, which attracts over one million tourists every year. The scenic park has boardwalks, hiking trails, a nature center with live turtles, and a campsite where you can stay overnight.

In the summer you can also fish on one of the state’s many lakes, tour the historic lighthouses that dot the coast, and enjoy fresh-caught fish at local restaurants.

During the fall, you’ll have a great time admiring the changing leaves and tasting local maple syrup. In the winter, you can visit one of Connecticut’s four ski resorts or participate in the wine trail that runs from January to April.

There’s always something fun to do in Connecticut year-round, which makes it a great place to purchase a vacation home and create memories with your family.

Before You Buy a Second Home in Connecticut, Make Sure You Can Afford It

Before you start your search for a second home in Connecticut, it’s important to make sure you can afford it.

If you plan to rent out the home for part or all of the year, it may be easier to pay the mortgage. But you still need to make sure you have a big enough emergency fund to cover any vacancies and home repairs.

Experts recommend budgeting about 10% of your monthly rental income for vacancies. Annual home maintenance usually costs between 1% and 4% of the property’s value, so you’ll need to keep some cash on hand to cover that too.

If you don’t plan to rent out your second home, you’ll need a high enough salary to be able to afford two mortgage payments.

Getting a Mortgage

Another thing to keep in mind is that it may be harder to get approved for a mortgage when you already own a home. Lenders may require you to have a high credit score above 700. You’ll also need a big down payment of 20% to 35% to be able to get another home loan.

Lenders look at your debt-to-income ratio as well, which is the percentage of your income that goes toward debt repayments like student loans and credit cards. If yours is over 45%, you may not be able to secure financing.

However, some lenders will allow you to use the property’s projected income to qualify for the mortgage, which could help lower your DTI.

Buying a second home in Connecticut is a big decision that you shouldn’t make lightly. Before you start putting in offers on properties, get pre-qualified for a mortgage and look at your finances to make sure you can afford another home.

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Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.