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How to Save On Some of Life’s Most Expensive Items

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The best things in life may be unnecessarily expensive for a lot of avoidable reasons. You may not be considering the local cost of living expenses. Or you may not have a budget. Or you may be more susceptible to paying for brand names than you may want to admit. Here is how to save more money on life’s most expensive items.

Life’s Most Expensive Items

The hard truth is that we make life’s most expensive items expensive in the first place.

A House

One of life’s most expensive items is the home.

Everyone wants to own, but most don’t appreciate the expense of owning one until they sign a mortgage agreement.

The typical cost of a new home in the United States is $374,000 right now. Since states have been loosening their Covid-19 mandates, the real estate market has really been taking off. The price of a new home was well over $400,000 not long before the pandemic started.

Still, buying a new home is one of life’s most expensive items. After all, most people must take out a loan in the form of a mortgage to buy their first home. And even after that, you have to spend 15 to 30 years, or more, paying off that mortgage.

So, how can you save money on a home, one of life’s most expensive items?

Live in a Low Standard of Living Area

You can start by living in an area with a low cost of living standard. If you live in a large metropolitan city area, like New York City or California, the average price of a home could range anywhere between $500,000 to $1 million.

If you don’t mind living in a medium-sized or small city in Texas, Georgia, Florida, Missouri, Indiana, or Ohio for example, then you can live in a comparatively nice home for $200,000.

Here is a list of what a $200,000 house in every state has in amenities.

If you are into DIY work and have carpentry and electrician skills at least, you could buy a cheaper fixer-upper and upgrade it.

Calculate how much square footage you need to live in to be comfortable. Unless you plan on expanding your family, it will be cheaper to live in a smaller home.

You should keep track of your repair and maintenance bills and home insurance premiums closely. Then you can cut out what you don’t need on your coverage and save more on your insurance.

And have your home professionally inspected from top to bottom once a year. It’s the small problems that we don’t see, or ignore, that later on become the most expensive problems to fix.

A Dog

I’m not trying to be insensitive by insinuating that a dog or any large pet is an item. My point is that unless you get one from a non-puppy mill shelter, you will pay hundreds or thousands of dollars to buy a purebred dog.

And since a dog is a living creature, you will pay a lot of money to take care of it over its lifetime.

You could end up spending $93,500 over the lifetime of your pet, an average of 15 years, taking care of it. And if you own a specialty purebred dog, that cost could skyrocket to almost $150,000.

So, one of life’s most expensive items is dog ownership.

But there are a few ways that you can mitigate costs.

Don’t feed your dog human food. A dog eating pizza looks cute, but a dog can become obese, hypertensive, and develop other health problems from eating human food. So that means more expensive veterinarian bills for you.

The typical veterinarian bill is $700 to $1,500 annually – and that cost includes the need for prescribed meds.

Make sure you feed your dog dry dog food on a schedule every day. You can add water or a little wet dog food to it to make it seem pleasing to your pet. Dry dog food is cheaper than other alternatives. It’s high in protein, low in fat, and healthy for your dog. And if you keep it properly stored, it will keep for a long time.

Invest and obedience training and play with your pet to save your furniture and interiors. Restless, ignored animals stuck in cramped interiors will chew on food, furniture, or begin hiding items.

Generics

Life’s most expensive items can sometimes be arbitrarily and subconsciously decided on by us.

It is usually our own mistaken assumptions equating cost with equality that transforms everyday items into life’s most expensive items.

When we pay for the most popular consumer goods, we are usually paying for the brand name.

The old “Pepsi Taste Test Challenge” of the 1980s proved that. And it wasn’t just about Pepsi or Coca Cola either. Barring specialty flavor sodas, all sodas basically feature the same ingredients, and most taste the same.

And the only way to get people to realize it in the 1980s, and save a little money, was to blindfold them and watch their astonishment when they couldn’t differentiate different brands by taste.

Get into the habit of buying generic consumer products of any kind whenever possible. And I am not just referring to soda either.

If you buy generic grocery items only then you could save $1,000 or more annually.

You could save $1,200 or more annually by buying generic prescription drugs whenever possible. (Americans can save $10 billion collectively annually if everyone bought generic prescriptions.)

Can you guess the average cost for headphones? It’s $40.

One of the most popular headphone brands is Beats By Dre. The entry-level models cost $100, but you could $300 or more for some models. Are you buying $300 headphones for the craftmanship or the fact the brand is named after one of the world’s greatest rap producers?

The point is that if you want to save more money in life, buy generic whenever possible.

Apps for Saving

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Digit30-day free trial period. $5 per monthSetting aside automatically
Acorns$1 per monthSpare change investing.
Qapital$3 membershipLetting you set rules to automate savings.

Watch Your Finances to Save on Life’s Most Expensive Items

At the end of the day, you may be subconsciously paying more money for items in a world where everything is already expensive.

Develop a budget. Differentiate between need and want when you are buying things. Sit down and consider every cost you may have to take on when making large expenses.

You are probably making affordable items life’s most expensive items without realizing it.

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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.

 

 

How to Retire Well in Vermont

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How to Retire Well in Vermont

After the Von Trapps fled their Austrian home, the family that inspired The Sound of Music decided to settle and ultimately retire in Stowe, Vermont. While Georg, Maria, and their melodic progeny were fleeing Nazi persecution, most retirees these days arriving in the state under less dramatic circumstances. Here’s how to retire well in Vermont:

How to Retire Well in Vermont

Like any state, retiring in Vermont comes with its joys and pains. The cost of living in Vermont tends to run higher than many other states, with the top ten cities averaging about 20 percent above the national average for life’s basics.

Vermont might not be the place for prosperous golden-agers looking for a land of low tax rates. The Green Mountain state charges between 3.35 percent to 8.75 percent for income tax – especially impactful for those with higher retirement incomes.

Before passing over this major producer of maple syrup, you’ll want to know this state’s tax system is sympathetic to low to middle-income Americans. With a more modest income factored in, Vermont comes in under the national average.

However, most types of retirement income are taxed, which starts adding up when you factor in other kinds of tax. For example, the average combined state and local sales tax is 6.22. While Vermont’s revenue collecting schemes might give you sticker shock, the sales tax does come in below the national average.

Retire Using These Apps

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Ellevest$1-$9 per month
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Personal CapitalFreePlanning retirement

Where to Retire Well in Vermont

Vermont is all about New England charm and rolling, verdant hills. The state attracts hardy souls who enjoy nature-oriented endeavors, small businesses, and scenic, little towns, like these four options:

Brattleboro

It’s a picture-perfect town with an appreciation for the aesthetic. Recognized in John Villani’s famous book The 100 Best Art Towns in America, it’s a popular place for the silver fox set to retire and partake of all the culture this place has to offer. Over 11,000 people call this place home, and the median income is $241,760. According to Salary.com, the cost of living sits 17 percent above the national average. It’s not the most affordable, but if you wanted a second career opening your gallery, this is the place for you. Likely, you won’t be alone either. Over 20 percent of the town’s population is 65 years and over.

Rutland

It’s another stately small town complete with quaint covered bridges and white church steeples. Over 15,000 people call Rutland home, and those enjoying their golden years can choose from the area’s two ski resorts, multiple golf courses, and 4,000 acres of national forest. The median home price is $137,900, and the cost of living is 9.9 percent higher than the national average. Over 21 percent of the population are seniors, so retirees will find a lively, like-minded community of individuals to spend time within the town.

Montpelier

As the capital of Vermont, this little gem nestles in the north-central area of the Green Mountain State. Like many other centers, classic architecture and an abundance of wilderness-related activities are hallmarks of this city. The population hovers around 7,300, with more than 20 percent being or retirement age. The median home price is 250,200, and the cost of living is 21 percent higher than the national average.

Read More:

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Photo by Vladimir Soares on Unsplash

How to Retire Well in Texas

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How to Retire Well in Texas

If you’re wondering how to retire well in Texas, you are not alone. Over 500,000 people migrate to the Lone Star State every year, and a good number of those are aspiring retirees. Everything is bigger and better in Texas, except the cost of living, and seniors are taking notice.

How to Retire Well in Texas with the Cost of Living

It’s a land of friendly gun-carry laws, great barbeque food, and fierce state pride. For the fledgling Texan resident, it’s essential to know how far your fixed-income dollar will stretch. A cost-of-living index is a tool used to determine how much money is required to pay for basic needs, such as housing, food, and healthcare. The national average is set at 100, so numbers under this are considered more affordable while numbers above, more expensive.

The average cost of groceries is 89.9 for the state, although there is some variation between cities. As far as transportation goes, most people will need a car. Gas is more affordable than other states, but insurance is 27 percent higher than the national average. Housing is fairly reasonable at an 85.9, average although large urban centers like Dallas and Austin are becoming quite expensive compared to the rest of the state.

Let’s talk taxes. It can make or break a retirement budget, so finding the right home for your second chapter is critical. Texas doesn’t have state income tax which makes for a lower cost of living than other states. On the other hand, Texas levies a 6.25 percent tax on most goods and services, which will cost retirees over time. Depending on the area, property taxes can be pricey, impacting a senior’s monthly budget.

How to Retire Well in Texas & Where

Ever wanted to live in the “Helium Capital of the World”? If so, you’re in the right place. Located in the Texas Panhandle, the city of Amarillo contains an estimated 90 percent of the earth’s recoverable helium reserves. However, if floaty birthday balloons aren’t your thing, here are a few other options.

The city of Fredericksburg is a boon to history-lovers and is full of museums, landmarks, and buildings from a bygone era. It’s a tourist destination, so those who love the finer things will have restaurants, attractions, and shopping to enjoy. With 29 percent of the town’s 11,496 population being senior citizens, it has a thriving community for the contemplative retirement planner to consider. The cost of living is 5 percent less than the national average.

McAllen might be another consideration if you want to live in a larger center. It’s one of the most affordable cities in Texas and is located close to the Mexican border. Retirees make up roughly 13 percent of McAllen’s 143,268 people, and the cost of living is a staggering 24 percent below the national average. Year-round warm weather and excellent amenities make this city a good option for a more budget-conscious senior.

Home to the Alamo, San Antonio is rich in history and tradition. It’s a large urban center with a 1.5 million population and 12 percent of those running north of 65. The cost of living sits 14 percent under the country-wide cost of living. It also offers easy access to healthcare for those who require more consistent medical attention.

Retire Using These Apps

AppFess and minimum:Best for:
Digit30-day free trial period. $5 per monthSetting aside automatically
Acorns$1 per monthSpare change investing.
Qapital$3 membershipLetting you set rules to automate savings.

Read More:

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How to Retire Well In Tennessee

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how to retire well in Tennessee

If you’re a golden-ager and the siren song of Graceland calls your name, you might want to know how to retire well in Tennessee. The state might be home to Elvis, but you’ll still need to do your research before deciding if you’ll become a resident retiree. There are many considerations, but here are a few suggestions to help make your decision easier.

How to Retire Well in Tennessee with the Cost of Living

According to the US Census Bureau, Tennessee’s senior citizen population (65 years and over) sits at 16.6 percent. Mild winters mean the silver fox set can enjoy the mountains, lakes, and rivers year-round, while big-city attractions and amenities offer a complementary experience. Cities like Chattanooga, Franklin, and Nashville rank high for their good-sized senior communities, lower cost of living, and fixed-income friendly tax rates.

By the numbers, Tennessee has the sixth-lowest cost-of-living in the United States. The average rent on a 2-bedroom apartment is $854, with the usual upticks in larger urban centers. Other costs like utility bills and healthcare come in close to the national average. If you’re looking for another financial silver lining, the state has no personal income tax, pension tax, or property taxes. However, there is a sales tax of 4 percent on food and food ingredients and 7 percent on all other tangible property. The good news is that prescription medication is tax-free.

How to Retire Well in Tennessee & Where

The median income for the Volunteer State sits at $53,320 (per capita $29,859). Depending on where one plans to retire, this figure may move up or down. If a retiree is working with a more modest nest egg, they may enjoy a smaller center like Pigeon Forge. With a per capita income of $20,478, this town is a preferred retirement destination for seniors who want a comparable monthly amount. And they would not be alone; over 20 percent of Pigeon’s 6,000 population are retired individuals.

Another Shangri La for the Elder Set might be the City of Crossville. It abounds with golf courses, a thriving retirement community, and a reasonable per capita income of $22,592. Seniors who need to stretch a dollar might appreciate that they don’t have to compete with six-figure salaries when buying the basics. Over 11,000 live here.

For those who like a more urban center, Knoxville might be the place for them. Over 187,000 live in this city, and 13 percent of them are senior citizens. With the Tennessee River running through it, there are endless opportunities for waterfront dining and recreational options that would be hard to find elsewhere. The per capita income is $26,430, which is marginally higher than some communities, but the city’s charms might be hard to ignore.

Retire Using These Apps

AppFees and MinimumBest for:
Betterment0.25% per year
no account minimum
Saving for retirement
Ellevest$1-$9 per month
no account minimum
Retirement especially for women
Personal CapitalFreePlanning retirement

Conclusion

If you’re hoping to follow the sun south but still want four seasons, Tennessee has lots to recommend it on the financial front. The low cost of living, affordable tax rates, and access to high-quality healthcare make this state a strong contender on anyone’s retirement wish list.

Read More

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What Life After Unemployment Should Look Like

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Life of Unemployment

If you’ve lost your job in the last 15 months, you’re not alone. The Center on Budget and Policy Priorities estimates, “some 29.7 million people in May [2021], including 7.0 million children, lived in a family where at least one adult did not have paid work in the last week because of unemployment or the pandemic.” Furthermore, they state the current unemployment rate is at nearly 6%, but before the pandemic, in February 2020, it was only 3.5%. While the United States has recovered jobs, we have not recovered enough of them. If you’re unemployed, here’s what the life of unemployment should look like to help you survive.

How to Manage Your Money After Unemployment Runs Out

The first step to take after your unemployment runs out is to determine what other aid is available.

Secure Other Governmental Assistance Available

Thanks to the pandemic, more safety nets are in place for the unemployed. Unlike more peaceful times in the United States’ history, now when your unemployment ends, there may be other options available thanks to numerous stimulus bills passed during the pandemic.

Pandemic Emergency Unemployment Compensation

A few weeks before your unemployment runs out, check with your local unemployment agency. You should be eligible for Pandemic Emergency Unemployment Compensation (PEUC). The agency should tell you about this benefit automatically, but if they don’t, make sure you ask so you can apply.

Extended Benefits

After traditional unemployment and PEUC run out, you may then be eligible for Extended Benefits (EB). This unemployment is triggered automatically when a state reaches a predetermined number of unemployed people in the state. So, whether or not your state offers this depends on how many people are unemployed in your state.

Pandemic Unemployment Assistance

Finally, after you’ve exhausted all of the options given above, you may qualify for Pandemic Unemployment Assistance (PUA).

Take Steps to Preserve Your Finances

While you’re on unemployment, before your benefits run out, make sure to put yourself in a better financial position. When your unemployment benefits do run out, you want to be in the most secure financial position.

Slash Household Expenses

If you haven’t already done so, slash your household expenses. Eliminate every expense that isn’t a necessity. Yes, doing without small pleasures in life is difficult, but by doing so now, you will be in a better financial position when you are employed again. Eliminate cable, your gym membership, any extracurriculars for the kids, expensive foods you may buy at the grocery store, etc.

Contact Your Creditors

Contact all of your creditors. During the pandemic, many mortgage lenders are working with the unemployed. Contact your credit card companies and car loan providers. Luckily, student loan payments are currently paused, but if they begin again, as they’re scheduled to do in September 2021, put yours on deferment so you won’t be responsible for payments until you’re hopefully employed again.

Get Private Assistance

Life of Unemployment
Photo by Joel Muniz on Unsplash

In addition, utilize any private assistance available. Go to the food bank to get your food. See if your local church can offer any assistance. Tap into private sources so you can make any money you do have last as long as possible.

How to Find or Create a Job

Two things tend to happen when you’re unemployed for a long time. First, you feel desperate and apply to any job opening you find, whether or not it is a good fit for you. Second, you may feel so depressed that you find applying for jobs difficult to do, so you avoid it.

Instead, take a different approach.

Only Apply for Jobs that Match Your Qualifications

When searching for a job, only apply for those jobs that match your qualifications. This makes your job search more productive and actually increases your chances of finding a job.

Talk to Family and Friends

While you may feel embarrassed or ashamed that you’re unemployed and try to keep it a secret, take a different approach. Let everyone in your life know that you’re unemployed and searching for a job. You never know who knows someone who may have a job to offer you.

Other Ways to Increase Your Chances of Employment

Also, take these other steps to help increase your chances of employment.

Be Flexible

While you may want to continue living in your current town, if you want to be employed sooner rather than later, be flexible. You might need to move across the country for a new job. If you’re willing to do that, you might be employed sooner. Likewise, you should be flexible with your salary requirements. When the pandemic is over, there will be time to find a job in your desired location at the salary you would like.

Create Your Own Gig

Depending on your skills, you may be able to create your own job. If you have experience with bookkeeping, you may be able to begin doing that privately from home. If you have experience writing, you could become a freelance writer. Another option is to become a tutor in areas that you excel in such as mathematics.

Revamp Your Resume

Have a few friends in the same field as you look over your resume. Is there any way you should change it to make it stronger and more appealing?

Practice Interviewing

Likewise, meet with a mentor or professional friend and practice interviewing. Not only does this make you more comfortable when you have an interview, but your mentor can also give you honest feedback about your interviewing style. In addition, he can give you suggestions for improving how you present at an interview.

Go Back to School

Sometimes going back to school is an option. You can gain additional skills for your career or change career fields completely. However, generally use this option as a last resort because school takes a significant amount of time and money to complete.

Final Thoughts

Being unemployed can be scary and stressful. However, know that you’re not alone. Millions of Americans are currently in the same situation. The life of unemployment should look like this to give yourself the best chance of landing on your feet and reentering the workforce sooner rather than later.

Read More

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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.

What is the Minimum Wage in Minnesota?

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minimum wage in MinnesotaThe minimum wage in Minnesota increased this January 2021, and there are plans for that trend to continue. The North Star State is also doing a few things differently with its hourly remuneration, including considerations for business size, regional area, worker’s age, and experience. It’s a midwestern minimum wage trendsetter with flexible legislation that benefits both business and worker.

US-Turkey Capital Sets Multiple Minimum Wages

According to the Minnesota Turkey Growers Association, the state is first-rate in thanksgiving bird production. It turns out that there are more turkeys raised in a year than there are people in California. While that title is hard to top, minimum wage legislators made their mark with a unique approach that attempted to balance employer and employee interests.

For a business classified as a small employer, the minimum wage currently sits at $8.21 an hour. To fit this category, an enterprise must have annual gross revenue of $500,000 or less. Any employer bigger than that must pay a minimum wage of $10.08. The Department of Labor and Industry estimates that it will affect an estimated 206,000 jobs – or 8.5 percent of total employment.

Minneapolis and St. Paul Strike Out on their Own

Two of Minnesota’s most populous cities have chosen to make their own minimum wage rules. In 2017, Minneapolis’s city council voted to increase the minimum wage every year until it reaches $15/hr in 2022. Like its state counterpart, the city also has a separate rate for small businesses with less than 100 workers. In this case, employers can expect incremental increases until reaching the mandated $14.50 an hour by 2024. Future upticks will be indexed to inflation.

Minneapolis’ minimum wage decision proved to be a controversial one. The city follows a handful of other U.S. cities, such as Seattle and San Francisco, who also raised their minimum wages. Not surprisingly, Minneapolis-based manufacturing supplies company Graco Ltd. took issue with its local government pushing the boundaries of its authority. The business launched a suit to prevent the pay hike but lost that battle when Minnesota Supreme Court unanimously voted to uphold the minimum wage law in 2020.

St. Paul has a different set of rules but is similar in spirit to the state’s capital. The city takes it further by breaking employers into three categories — micro-business, small business, or a large business. Despite the difference, all roads still lead to a minimum wage standard of $15.

Minnesota Minimum Wage for Youth, Trainees, and Tipped Employees

Like many other states, Minnesota has a different hourly wage for youth under 18 years of age — this is $8.21 an hour. Additionally, there is a 90-day training wage for employees under 20 years old that sits at $8.21 an hour. These are also set to increase in step with the standard minimum wage as long as economic conditions remain favorable. As far as tipped employees go, Minnesota breaks from other states and doesn’t allow employers to pay a lower wage to those who receive gratuities. A worker must receive minimum pay along with whatever tips they might earn.

Read More:

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Photo by Kate Townsend on Unsplash