Frugal

How Much Retirement Income Will You Need to Replace Your Current Income

March 3, 2020 By Trey LaRocca Leave a Comment

One of the biggest challenges of being in retirement is the income. Many Americans rely on social security, and this end up not being enough. Even if it is enough to live, it tends not to be enough to be as comfortable as you were pre-retirement. It takes a lot of preparation to set up a truly cushy situation after you stop working, but we at Saving Advice are here to help. Not enough people worry about their income post-employment, they just care about the savings. Savings are great, but these tips on growing your retirement income will help you figure out the magic question: how much will you need?

Retirement Savings

Saving is one of the focal points for retirement planning. The amount you save, as well as what you do with it, will have a huge effect on your quality of life as a retiree. One of the best ways to plan this value out is to use the “interest-as-income” model. This method relies on only interest for income, and it avoids touching any of your savings. The calculation is easy: Take seven percent (the average yield of a solid index fund) of your savings, and that is your retirement income. So, if you make $70k at work, you’ll need $1 million in retirement savings to replace that with you interest. this allows you to pull out any excess interest the moment it hits, and never have less than that million in your savings. We use indexes because they are pretty reliable. The S&P Index, for example, takes the 500 best performing stocks and indexes them to help track growth.

What if I Don’t Have Enough?

No need to fear! There are many different ways to make up for a gap in income. Say you can only make $40k a year with your retirement and social security accounted for. There are to routes to take here:

Downsize: The first, and less attractive, option is to downsize your life. Move into a smaller place, get a car with no payment, etc. These are things that matter a lot less when you are retired, and you can find a ton of room in the budget. The average new car payment in America is $550 (used being $393); You can save thousands by foregoing the fancy car. You can also cut costs by eating out less, spending more date nights in the house, etc.
Side Hustle: There are many fun skills and hobbies you have probably mastered over the years. don’t be afraid to use the things you enjoy to make a little money. Do you know how to knit or woodwork? Sell some little trade goods on a site like Etsy. Do you enjoy keeping a tidy home? Work as a cleaner on the weekends for $25/hr. All of these can keep you from getting another full-time gig, and make up for lost cash along the way!

In Summary

Retirement takes a ton of planning, and retirement income isn’t easy to come by. Make sure you start prepping early, and go hard as long as you can in order to set yourself up for the best life possible. Invest wisely, hustle a little on the side, and live frugally when you can to make sure that you can truly stop working when you are done.

Here’s How to Save Money Using Postal Services

February 27, 2020 By Trey LaRocca Leave a Comment

Despite the rise of the internet over the past few decades, snail mail is still extremely important. Everybody loves the feeling of a hand-written letter or card, and sending gifts yourself allows you to pack them your way. Personal touch is more unique and special than ever, and postal services play a vital role. The issue, though, is mailing things can get expensive, especially in bulk. While we want you to be as frugal as possible, it isn’t worth it to give up the things that make life special. So, here are some great tips on how to save money using postal services.

Weigh it at Home

When sending gifts, don’t wait until you’re at the post office to weigh your package. This only limits your options, and can often pressure you into a more expensive choice. Weigh everything at home, and then look at what your options are online before going to ship it out. As is the case with most things in life, preparation and planning can save you a lot of trouble.

Use Private Services

USPS is a reliable option. Like most government entities, though, it isn’t always the most efficient. When it comes to heavier items, or valuables that need insurance, UPS and FedEx can be much better options. This plays into the previous note that planning is key, and you can save a lot by making sure you are headed the right direction when driving to mail your package.

Save Boxes

In an age where we get everything on amazon, boxes are not hard to come by. The issue is, most people just tear the boxes apart when opening, and toss them out after they have made them useless. Instead, carefully open your packages and break down the boxes in a manner that allow you to use them later. Store them away wherever you can (flat boxes don’t take up much space) to use them later on. Now, when Christmas comes around you have plenty of blank, sturdy boxes in which to ship your gifts!

Forever Stamps

For those of you who fancy cards and letters, stamp buying can be a pain. This is made even worse when you realize those stamps you bought in bulk have gone up in price, so you have to double up to reach the value you need. Forever stamps fix this issue, costing no more than regular stamps and having a value that never expires. This will reduce waste, and ensure that buying in bulk is as rewarding as possible.

Flat Rate Shipping

One of the best ways to avoid surprises at the post office is to use flat rate shipping. Knowing what you’re going to pay can absolutely save you money, and if it fits in the packaging, it qualifies. 1-3 days is the typical speed of flat rate, and this can reduce stress during holiday seasons when you want to make sure that gifts are under the tree by Christmas. Weight limits are generous, shipping is incredibly fast, and the value in this option is amazing.

3 Top Thrift Tips For Mardi Gras 2020

February 18, 2020 By Trey LaRocca Leave a Comment

Mardi Gras is legendary in the United States. Few other events are so famous throughout the country. Not only that, but pretty much no other party in the US reaches the heights of this New Orleans tradition. Obviously, attending the biggest bash in the entire country usually comes with a hefty price tag. Travel, lodging, food, and fun will all add up to cost you both arms and both legs if you aren’t careful. Just like any other vacation, there are ways to maximize fun, and minimize financial burden. At such an overwhelming, city-wide festival, it’s easy to get carried away. Don’t fall for the trap; here are the top 3 thrift tips for Mardi Gras to keep your wallet safe!

Lodging

Location, location, location. The French Quarter is death (financially) and you should avoid it. If you can, try to stay in a suburb just outside New Orleans. Prices surge around Mardi Gras, and this effect is magnified the closer you are to the actual festival. With that said, the type of hotel you go to also matters. As usual, Airbnb and Homeaway are terrific tools to avoid crazy hotel rates. You can also look toward smaller hotels/motels or even hostels if you can swing it, as the large chains around the French Quarter are inordinately expensive. If you must stay within city limits, as I said before, get lodging outside of the FQ during Mardi Gras.

Food

New Orleans has some of the greatest food in the world. I will never tell you to go to Mardi Gras and now blow a little cash on some amazing food. Although, a lot of the inflated food costs comes from being stuck in a massive parade area and having to buy food from overpriced stands with so-so options. When you are heading out to the heart of the French Quarter for the shoulder-to-shoulder crowds and events, bring snacks in a backpack. Bring a whole lunch if you can, and save the splurge money for the must-try food joints later on in the evening. Another way to save money is akin to the lodging strategy; look outside the heart of Mardi Gras. Check out the less trafficked neighborhoods and towns nearby, and you’ll find hidden gems that won’t break the bank. Amazing food doesn’t end at New Orleans city limits, so don’t be afraid to branch out while you’re in Louisiana.

Sightseeing

One of the best vacation tips I have ever gotten is that tours are overrated. While they can be an easy way to see the hot tourist locations all in a row, they are also pretty expensive. Tours can easily ring in at around $100-200, and they don’t typically give you all the time you’d want at each location. Instead, consider doing some research yourself and finding a few places you really want to spend time in. The Lower Ninth Ward can be traveled by cab, and there you can see the tragic outcome of Hurricane Katrina. The best way to explore the French Quarter is just to walk around and take it all in yourself. Find what you’re interested in seeing, and get there on your own. This will make sure you get as much time as you want at your desired locations, and you get to save all that tour cash.

The 4-Figure Car Purchase: Why You Shouldn’t Spend $10k+

February 7, 2020 By Trey LaRocca Leave a Comment

Car buying is a deeply emotional process. While most people think of it as a logical financial decision, feelings play a larger role than anything else. Constant thought of what others will think, how the car will look on Instagram– how “nice” it is; all of this can cloud your judgement. The fact is, while the “student debt crisis” takes over headline after headline, there is more outstanding car debt than student debt in the US. To the tune of $1.2 trillion, bad car buying decisions plague this country in a massive way. This needs to end, and so I am writing this so you have something to link your friends when they give your used wheels the side-eye. Without further adieu, here are the reasons the 4-figure car purchase is the way to go.

The “New Car Tax”

Everybody knows this one, and yet, we fall into the same old trap. The moment a new car is driven off of the lot, the value plummets. Is this due to mileage? No. New cars on dealer lots can rack up hundreds of miles due to test drives, and the value doesn’t change. Simply, the idea of a “new car” has value in our society. So you are, quite literally, paying for nothing. This causes people to buy from unreliable brands like Nissan and Kia in order to get a “new car” for a low price. I don’t have to tell you not to do this, because you probably can’t for less than $10k anyway!

Affordable Luxury

Just because a car is older and cheaper, doesn’t mean they can’t be pretty. $9999 is an amazing car budget. For example, the main picture on this article is a 1990’s Lincoln Town Car, which goes for $1000-3000 on the used market with decent mileage. Only a couple thousand for an amazing suspension, beautiful classic looks, and astoundingly comfy seats. On the higher end, E90 BMW 3 series are available easily for less than $10000. A wonderful combination of sport, luxury, and sex appeal. If you think cheap has to mean low-quality, you haven’t been looking.

Cost of Repair

This one’s easy. Older cars tend to have cheaper parts and better aftermarkets. This means whether you do the work yourself, or let the dealer take care of it, your repair bills are going down. There are a few exceptions to this rule, but it remains a general rule nonetheless.

Reliability

They just don’t make ’em like they used to. An early 2000’s Lexus LS400 was a luxury showstopper that could run forever. Costing about $2000-3000 for a decent example now, these absolute zombies could run for 300-400 thousand miles. No new car is expected to reach numbers like this, even from the same historic Toyota brand. Older cars were, in general, made to last much longer than the newer ones. Not only that, but there is better information out to inform your purchasing decisions. Odds are if you are buying a car for under $10k, your local mechanic has had enough time to get to know the reputation of most options pretty well. You’ll be paying much less to get much more out of your purchase.

3 Cheap Hobbies That Can Also Bring in Cash

January 28, 2020 By Trey LaRocca Leave a Comment

When it comes to the monthly budget, wiggle room is hard to come by for most people. Whenever a new expense comes up, we are always looking for what we have to go without to compensate. Well, what if you didn’t have to sacrifice anything to have an extra date night? What if that new yoga membership didn’t mean you have to give up post-work drinks on Friday? All this is possible, and you may be able to pull it off with your own cheap hobbies! To show you how this is possible, here are some cheap hobbies that can make you money.

Driving Around

DO you have a comfortable car, and enjoy cruising around your area? Uber and Lyft have become mainstays for side-hustlers. Sign up for an account, grab some snacks and drinks for the back seat, and earn that extra dough! Be careful about this one, and make sure you have the right vehicle. Certain higher-end vehicles depreciate heavily with mileage, and the loss you’ll take on that can compound with premium gas expenses to rapidly make this one not worth it. Older reliable cars that just barely make the year/make/model requirements for the apps are the best option. these have already depreciated, and are probably cheaper to fix. Bonus points if you have a hybrid!

Cooking

Got some skill in the kitchen, and need some extra fun-money? Not only can being a good cook save you cash on eating out, it can also be monetized by selling the food you make! You can sell homemade snacks to coworkers, cater for parties, or even work on the side as a private cook. There are options here for all skill levels, as dealing some easy pastries at work doesn’t take too much expertise and will make you an office favorite. The more you can make, the more money you can bring in, and this one is very easy to work around your own schedule.

Tutoring

Do you have a degree in a high-demand field, and love to teach? Tutors can make great money on the side using online sites like Varsity Tutors or even Craigslist. You can also become a part-time staffed tutor at local educational institutions for a more reliable workload. Usually a degree is required, which elevates the pay past your usual side hustle. Tutoring holds an extra special spot on this list, as you are earning money by helping educate your community. Not only are you providing better for yourself or your family, you’re also giving back to those around you. It doesn’t get much better than that!

3 Cheap Weekend Getaway Tips

January 23, 2020 By Trey LaRocca 1 Comment

It’s the first month of the year, and it is time to plan out those vacation days. The problem is, one relaxing week-long trip with family or friends can eat up all of your allotted time. The good news is, you won’t have to give up the Big One in order to get more breaks throughout the year. Oftentimes, the best (and cheapest) way to go is a nice weekend escape somewhere local. Now, we don’t want to spend a fortune on a trip a couple hours away. In order to maximize your time off this year, here are some great tips on your cheap weekend getaway!

Room Rentals (Avoid Hotels!)

Hotels are great on those big trips. when you’re blowing your vacation budget, you don’t want to be in somebody else’s house with somebody else’s rules. For a few days, though, room rentals can be the perfect way to maximize value. Websites like Airbnb and Homeaway are great tools to find a place to stay anywhere you want to go. Pick a weekend outside of major tourism periods, and you can get a perfectly comfortable spot for $50-100 per night.

The More the Merrier

Nothing is better than a weekend out on the town with a bunch of your closest friends. Getting more people to come along doesn’t just maximize fun, it also lowers the financial burden on each of you. Getting group rides and group rentals for lodging makes it super cheap to get lost for a couple of days. Not only does it make the big costs go down, but it also opens up more free entertainment opportunities like group games at the rental house. when even staying in can feel like a party, the urge to empty your wallet out at the bar just disappears. Odds are you aren’t the only one feeling limited by your PTO allowance, and pitching a cheap weekend of fun to your coworkers shouldn’t be too hard.

Go Someplace Quiet

If your goal is for a more intimate escape with just you and your partner, quiet is the way to go. Not only are cozy little mountain/beach towns the ultimate romantic excursion, they are also filled with free things to do. It usually doesn’t cost much, if anything, to go hiking on a beautiful windy alpine trail. Not one for exercise? Laying on the beach is totally free, and grocery store picnic food is dirt cheap. Going to places that aren’t known for restaurants, theaters, or other expensive attractions makes it much less necessary to break the bank. Plus, sometimes the best way to unwind from your typical workload is to just sit back and relax, enjoying some fresh air and gorgeous views. A quiet weekend getaway is a cheap weekend getaway!