Personal Finance

Streaming Services You Should Cut Out Now

March 18, 2020 By Trey LaRocca Leave a Comment

When it comes time to reign in your spending, the little things are almost as important as the big ones. While streaming services are nice to have, a lot of the time we end up paying for ones we barely use. Not only that, but a few of them even share common content that is available on other platforms. All of these are things to take into consideration when cutting some out to save money. To help make the decision a little easier, here are the streaming services you should cut out now.

The One You Forgot You Had

We have all done it. Maybe it started as a free trial, or just the one you snagged to binge on particular show, but they both ended the same way. You were checking your bank account, and you were hit with the “oh yeah” moment. Oftentimes this comes after months of paying for it without knowing it. Now, what some will do is say “well I paid for the month, might as well keep it and see what’s on.” Don’t be that person. If you forgot about it once, you’ll do so again. Cancel your subscription and enjoy the time you have left with it.

The One You Only Watch One Show On

Sort of ties into the top one, but this is for those who intentionally keep those subscriptions running. If you only watch one or two shows on the streaming service, there is no reason to keep it running year-round. If the premier of a season really sneaks up on you, it doesn’t take more than 5 minutes to start your plan back up and watch to your heart’s content. Don’t waste $200 on something that should only need to cost $15-30.

The One With A Bunch of Projects “In the Works”

The name of the game for most streaming services is original content. The quality and quantity of exclusives is what really sets each one apart from the others. If you end up paying for one that is slow to put out new stuff, you can always cancel and start back up when they have actually finished a few things up. None of the big services really have a problem getting content out, but when it comes down to the wire, count out the original series that you actually must see as they come out on each service. Whichever has the lowest number can go for now, and you can catch their “in the works” projects as they come up.

At the end of the day, this decision will be different for everyone. For this reason, I have refrained from naming any specific services. I personally only subscribe to two streaming services, because I only watch a few shows. I understand that others have a lot of different things they like to see, though, so my recommendations won’t exactly help much. Just keep these factors into account, and make sure you aren’t just buying up every service until you end up essentially paying a premium cable bill.

What To Do If Your Spouse Dies Without A Will

March 18, 2020 By Tamila McDonald Leave a Comment

Whenever someone dies, someone else inherits the deceased’s property in nearly all cases. Exactly who gets what is clarified if the person had a will. That document lets them make their wishes known. It also ensures their requests are legal and uncontested. As well as outlines what will happen with their property. But not everyone has a will. By not having a will, the spouse left behind is dealt a situation more complex. If you are wondering what you should do if your spouse dies without a will. Here’s what you need to know.

A Look at Non-Probate Assets

First and foremost, it’s important to understand that not all property is inherited based on a will. If an asset is jointly-held. Or has a listed beneficiary. Or is in a trust, inheritances aren’t will-dependent. For example, a bank, retirement, or investment account that is in both spouses’ names automatically becomes the property of the surviving spouse. The same would be true for life insurance policies or trusts that list the surviving spouse as the beneficiary.

Individually-owned bank and investment accounts can also have beneficiaries. Usually, a “pay on death” or “transfer on death” arrangement has to be in place. This names the surviving spouse for this to come into play.

With non-probate assets, the lack of a will is irrelevant. However, the inheritance is dictated by who is chosen as a beneficiary or the fact that it was jointly owned. No additional paperwork is required.

Intestacy Laws for Inheritance Decisions

If a person dies without a will. Intestacy laws go into effect. Aside from the non-probate assets above, all other property gets caught by this legal safety net.

Intestate succession laws outline a hierarchy regarding who typically has rights to various assets. Usually, the closer a person’s relationship to the deceased, the stronger their assumed claim.

It’s important to note that intestacy laws vary by state. However, in most cases, surviving spouses have access to at least a portion of the estate, if not all of it. If the deceased had descendants, such as children, the spouse might have to split the estate with them. However, if there are no descendants. A spouse usually inherits everything, even if there are other relatives.

Estate Management When Spouse Dies Without a Will

When a will is present, the person who created it (the testator) typically identifies an individual as an executor of the estate. That person then handles various legal aspects of adhering to the deceased’s wishes.

With intestate succession, no one has been named by the deceased. In many cases, a probate court will select a person to serve as the estate administrator. Typically, this is a surviving spouse whenever one is available.

Precisely how all of the events will unfold depends on state law. However, every state has processes for intestate succession. They include rules that dictate court involvement and other formal procedures for the divvying of the deceased’s assets.

Additionally, the statutes determine precisely who inherits what. Typically, they are aligned with how the average person would choose to divide their estate. Even if it isn’t likely that the deceased would want that split. That’s irrelevant without a will. Exceptions to the norms aren’t made in nearly all cases. And need or special circumstances aren’t considered. Essentially, the law determines how the estate is managed. There is no consideration of any outside opinions, thoughts, or influences, even points levied by family members.

How to Avoid Intestacy

If you and your spouse want to keep control of the estate, having a legal will or formal inheritance plan is a must. It ensures that the person’s wishes for their assets are known. Without legal documentation, intestacy laws can apply.

Do you have any tips that can help someone if their spouse dies without a will? Can you share an approach for discussing this sensitive subject with a partner before the worst happens? Share your thoughts in the comments below.

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.

St. Patrick’s Day Deals and Freebies

March 10, 2020 By Trey LaRocca Leave a Comment

March has come, and St. Patrick’s day is fast approaching. As with any holiday, we will be seeing a number of specials coming into next week. While you won’t have time to grab them all, below is a list of some deals and freebies to choose from come Tuesday of next week!

Postmates is tag-teaming with Jamba juice and giving a free Amazing Greens smoothie when you make a $15 purchase on the app between 3/16 and 3/22.

Doordash will have a similar partnership with McDonald’s, taking $5 off of a $15 minimum purchase from 3/17 – 3/23. All you need is to use the code LUCKY.

Dunkin’ is bringing back their Irish Creme for a limited time as they do every year. Alongside this, they will be serving the Lucky Shamrock donuts as well within the same time frame.

McDonald’s has brought back the iconic Shamrock Shake, as well as adding an Oreo Shamrock McFlurry to the menu for extra minty goodness. If you order either of these with a McDonald’s app mobile order and use mobile pay, you’ll be entered to win an $100,000 18-karat gold cup adorned with actual diamonds and emeralds!

Michael’s will be offering 50% off all St. Patty’s Day items.

Forever 21 will have specials on all St. Patrick’s Day t-shirts, and you’ll get a holiday 15% discount on orders over $100 until April Fool’s Day.

Chili’s will be having a $5 special on their Lucky Jameson Margarita featuring the iconic Irish whiskey.

Spencer’s will be offering buy one get one 50% off on St. Patrick’s Day products.

Dairy Queen has their Mint Shake available, as well as a Mint Blizzard Treat, a lineup pretty similar to McDonald’s– the choice is yours.

Mrs. Field’s has plenty of St. Patty’s Day treats, and if you use the code LUCKY you can land 17% off between 3/16 and 3/19.

Are You an Independent Contractor or Employee?

March 6, 2020 By Tamila McDonald Leave a Comment

Many professionals are surprised to find out that their “worker status” actually matters. If you work for a company as an independent contractor but thought you were being treated as an employee. You could end up with a shockingly large tax bill at the end of the year. The reason is that independent contractors are responsible for their own taxes. This is something that an employer withholds for and covers part of for actual employees. As a result, it’s critical to figure out if you are an employee or an independent contractor and whether your classification is appropriate for your situation. If you want to learn more about how to determine your status. Here are some points to examine.

Who Controls Your Behavior

How much of your work situation is controlled by the company? How much is in your hands plays a role in whether the Internal Revenue Service (IRS) views you as an employee. Usually, if the business can exert a substantial amount of control. This could include things such as dictating when and where you work, which tools you are allowed to use, and where you can buy services or supplies. You are more likely to be considered an employee.

Additionally, if the company gives you highly detailed instructions about how you can complete tasks. Or if they evaluate you based on more than just the results of your efforts, or provides you with a significant amount of training (especially if it’s ongoing). It’s more likely that you’re an employee.

Independent contractors aren’t subject to as many restrictions. They can make choices about when and where they work. As well as the tools they use and the products or services they acquire. Usually, the most rigid request from the company will be a due date for deliverables.

Financial Factors

Certain financial situations don’t usually arise for employees. For example, they aren’t expected to pay for their own work equipment, like computers. Instead, the company supplies them. Otherwise, if a worker does have to make an investment. It is typically temporary. Employees can usually get their business-related expenses reimbursed.

Employees also don’t have to deal with profit or loss in most cases. Instead, they are commonly guaranteed a specific wage. For instance, an hourly pay rate, a salary, or a specific commission arrangement.

Independent contractors usually have many financial factors to contend with. These include investing in their own equipment and dealing with profit and loss. It is also more common that they will complete projects for a flat-fee instead of another pay arrangement.

The Relationship with the Company

The IRS may also examine your relationship with a business to determine if you’re an employee or not. Factors like having a written contract that says you are an employee. Also, having access to benefits usually given to employees (like retirement plans, medical coverage, or paid leave) make it more likely that you’re an employee. Additionally, whether it’s thought that the arrangement will last indefinitely. Instead of just for a project, or if your service is one of the company’s key or core business activities. These arrangements could lead the IRS to decide that you’re an employee.

However, some of these factors are a bit ambiguous. For example, even having a contract that labels you as an employee isn’t enough to achieve that classification alone. You may still be an independent contractor. But the IRS does take each piece into consideration and tries to decide based on what the full scenario looks like.

What to Do If You’ve Been Misclassified

If a company is treating you like an independent contractor. However, you believe that you’re an employee. There are steps you can take. For example, you could file Form SS-8 with the IRS. The form lets the agency know you’d like your situation formally reviewed.

Along the way, you may have to supply the IRS with additional information. It will also reach out to the company that you worked with. To include requesting details from them as well.

It can take a minimum of six months to get a decision back. If your case is complex. It’s best to assume that it will take longer than that.

Once a decision is levied. You and the company will receive a letter outlining the determination. You can request the IRS to reconsider, providing additional information you may feel is pertinent, if you think they are incorrect. But, if you agree, that’s the end of the classification process. At that point, you’ll know what kind of taxes you owe and where the company’s responsibilities lie, and can take additional action as appropriate.

Have you ever been misclassified as an independent contractor when you should have been an employee? Would you rather be an employee or an independent contractor? Share your thoughts in the comments below.

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.

$100k Salary and Broke: 7 Steps to Change Your Financial Picture

March 4, 2020 By Trey LaRocca Leave a Comment

So, you’ve got your first big job (with a big paycheck), yet you still find yourself having no money after expenses? You’d be surprised how many people find themselves in your situation. As people make more money, their spending tends to ramp at a similar pace. The best way to mitigate this (other than maximizing you income) is to track and trim your spending. To help you do this, here is a quick 7-step roadmap on how change your financial picture:

Step 1: Price Out the Big Stuff

The first step to cutting spending is to figure out what is eating up most of the budget. These are expenses like rent/mortgage, car payment, big bills, etc. Anything that totals over $100 is written down under this category. When I say written down, I mean break out a pen and paper and write them all down– big! Calculate how much these things cost and put the price next to the corresponding expense. Try to put them in descending order based on price to keep it organized.

Step 2: Check for Rats

The big stuff is easy, but the little things add up. Just like rodents, small splurges on eating out and hitting the vending machine at work can infest your expenses. Set some traps, and write down all expenses under $100 in this category. Leave one or two lines empty in between to keep these separated from the big guys.

Step 3: Total it Up

This one is fairly simple. Simply add up all of your spending for a month and total it up. Compare this with your actual income, and evaluate how much you are left with. Disappointing, right? That’s what we are going to fix.

Step 4: Qualify

Now, next to each expense on both lists, put a star down next to each thing you absolutely need. Most of these will be on the big-ticket list, like rent and bills, but things like haircuts and filling up the gas tank count too. Anything you couldn’t (or shouldn’t) reasonably go without gets a star. Note: This can include date nights if you have a significant other, but keep it to once every couple weeks if you can. Things that don’t get a star are Netflix subscriptions, fast food stops, or random gifts to yourself. These are nice-to-haves, not need-to-haves.

Step 5: Total it Up Part 2

Total up your need to haves, then subtract it from your total expenses. Wallow in shame for a moment, then shake it off– we have work to do.

Step 6: Set a Goal

Now that you have calculated the amount of “extra” spending you do, you can figure out how much needs to change. Set an initial goal of a 20% decrease in this final number. After you’ve done that successfully, crank it up to 35%. After that one, 50%. You see where this is going. Do I expect you to get it to 0%? No, and neither should you. When you make six figures, your job probably ain’t the easiest gig in town. You deserve to let loose every once in a while. This is just meant to help you prioritize the ways you want to spend, and shed light on the little snack demons that are plaguing your income.

Step 7: Count Your Stars

Still not seeing enough of a difference in your leftover income? This probably means that your “needs” either aren’t all necessary, or (more likely) they are overpriced. Paying $700/month on a fancy car that is rapidly losing value? Get out while you can. Buy used and save that “new car” premium. Decided that every “date night” has to include Ruth Chris and a hotel stay? Relax a little, you’re trying too hard. Nice things are nice, but being broke isn’t. Enjoy your money, but practice restraint so you don’t have to stress every month when the bills come around.

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.