Saving

Christmas on a Shoestring Budget

Christmas on a Budget

The holidays are quickly upon us, and many people feel the emotional and financial strain on their wallets. The wish lists get longer every year, your extended family is growing, and perhaps your coworkers have also added you to their gift exchange. Before you know it, you find yourself reaching your budgetary limits and spending more money than you can really afford. So how can you plan an amazing Christmas on a shoestring budget?

Here are three gift giving ideas I’ve developed during those times when I needed to tighten my belt to make ends meet during the holidays. Each one still shows your loved ones exactly how much they mean to you without breaking the bank. And here’s the best part; they are all absolutely free.

Gift Ideas for Christmas on a Budget

#3 Upcycling

You may cringe at the thought of re-gifting or passing off used things as Christmas gifts. So let me introduce the concept of upcycling which takes one person’s trash and transforms it into someone else’s treasure. Upcycling adds value or improves upon the original product, making it more personal and unique.

You are literally only limited by your own creativity. Think of refurbishing old furniture, repurposing old toys, dismantling old jewelry and turning everyday objects into art. If you are the crafty type, this idea will allow you to showcase your skills and create something truly beautiful that someone else will cherish.

#2 Giving your Time

My mother instilled in me the importance of giving your time to help others. The holidays are the perfect opportunity to step outside of your busy life and spend time with family and friends. As a child, I would make coupon books to do chores or small tasks for others. As an adult, the gifts have changed but the idea is still at the heart of why we celebrate the season.

Our family traditions always include copious amounts of mouthwatering dishes and other favorite treats. Spend time making holiday-themed goodies or a special meal together, and make plenty to share. If the kitchen is not your area of expertise, you can also share your skills or teach someone. This could include musical talents, sharing a special story, assisting with projects around the house, or helping  technologically impaired relatives with computer issues. Think of what it is that you do best, and help those around you who can benefit from what only you can give.

#1 Create a Christmas Experience

The most intimate memories are when we can share an experience with the ones we love. This is a lot easier when cash is no issue, but there are thousands of other ways to share an experience that won’t cost you a dime.

My best memories include decorating the Christmas tree, watching holiday movies, and playing games together. There are also other options outside your own home. Many museums, parks, and theaters also offer free admission to concerts and other events. Spend some time researching free attractions and events in your own city, and offer your friends or family an experience they will never forget.

The Reason for the Season

As we get older, the holidays can cause more anxiety than cheer. Don’t forget the real reason to celebrate is to spend time with the ones we love. While we all enjoy receiving nice gifts, remember there are other ways to show your appreciation that won’t cost a small fortune. Step outside the box, and get creative this season to show just how much you care.

 

Read More

What is the Average Net Worth of Retirees?

Average Net Worth of Retirees

Many people dream of the day when they will longer  be part of the daily grind. If age were the only requirement, I think it is safe to say most of us would retire as soon as possible.  But how much money should you have saved for retirement before you hang up your work boots? This answer will differ from person to person. The first step is making an honest assessment of your financial situation versus the average net worth of retirees. An easy way to achieve this is by figuring out your net worth and comparing with others in the same age group here. These figures can provide a clearer picture to help you plan for your future.

What is Net Worth?

If you feel you are ready to join the ranks of retirees, you should have a keen sense of your net worth. It is one of the strongest indicators of your financial status and an important tool to help you reach your retirement goals. You can calculate your personal net worth with some basic math. First, you need to add up the total value of all your assets and your liabilities. Then, subtract your liabilities from your assets to determine your personal net worth.

You should consider all assets, including bank accounts, stocks, bonds, mutual funds, real estate holdings, retirement savings, and partnerships in your tallies. All your debts, loans, and mortgages would fall on the other side of the ledger. This number will either be positive or negative, depending on the amount of debt you have accrued.

The Average American’s Net Worth at Retirement

The three major contributing factors to your net worth are home equity, retirement accounts, and cash savings. According to the most recent figures compiled by the U.S. Census Bureau in 2015, the national median for homeowners over the age of 65 was $201,500. Bear in mind that this figure is limited to households and may not take into account for the homeless or other members of the household who would not qualify as retirees.

Data collected from the Survey of Consumer Finances indicates that the total value of retirees’ assets has nearly doubled in the last 20 years and accounts for a large portion of a retiree’s net worth. However, it also means that they carry more debt due to mortgages. The median net worth of retirees when home equity is excluded drops to $59,780. The majority of the remaining funds are tied to retirement accounts while cash savings only account for a small fraction of a person’s overall net worth.

How Much Should I be Saving?

Most financial planners agree that a good rule of thumb for retirement is to save at least ten times your annual income. This figure may vary based on your lifestyle and spending habits, so it’s wise to sit down with a professional to discuss your options and decide what is best for your circumstances.

For those who are struggling to make ends meet, pay off student loans, and refinance home mortgages, contributing to your retirement funds may seem like a low priority. However, in a society where the future of social security is uncertain and employers offer less comprehensive pension plans, one thing is perfectly clear; it’s never too soon to begin thinking about retirement.

Read More

8 Things to Do Today Save Money This Summer

Save Money This Summer

If you want to save money this summer then you should start planning ahead. If you aren’t prepared in advance then summer can be an expensive season. People frequently travel in summer, which is a big expense. When you have children, they often attend summer camps and other costly activities. If you aren’t careful, finances easily just slip away. However, there are things that you can start doing right now to prevent that.

1. Review Your Regular Expenses

It’s time to take a look at your money. If you don’t know what you’re working with then you can’t make smart financial choices. Review all of you ongoing expenses, looking for ways to cut back. Even small changes can make a big difference in the summer. For example, how many different streaming television services do you have? Can you cut it down to one or even none for a few months to save money this summer?

2. Set a Budget and Make a Plan

Once you have cut your regular expenses as much as possible, it’s time to make a plan. Look at the money that you have. Update your budget. Don’t forget to include all of the unusual expenses that summer brings. Some expenses to consider:

  • Babysitters, daycares, or day camps for kids who aren’t in school in the summer
  • Special events including those for Father’s Day, Fourth of July, and summer weddings
  • Summer clothes if you or the kids’ need a wardrobe update
  • Travel plans and their associated costs including pet care while you’re away
  • Water activities including pool memberships or day trips to the water park

3. Change Vacation to Save Money This Summer

If it doesn’t look like you’re going to have enough money in your budget to cover your vacation, then it’s not too late to reconsider. Think about why you’re traveling. Is it to see relatives? Is it because you want your kids to experience something new? Or is it just because it’s something you’ve always done? You can reduce the cost of travel by:

  • Changing your destination so it’s cheaper
  • Using a more affordable mode of transportation
  • Camping instead of staying in hotels
  • Taking a shorter vacation than originally planned
  • Having a staycation instead

4. Brainstorm a List of Free Activities

Find ways to save money this summer by brainstorming a list of free activities now. Then fill your calendar with those. Look for free classes, events, workshops, and camps for your entire family. Check out what your city offers in terms of free days at museums, galleries, and other spaces. Visit parks, beaches, and hiking trails in your area. Make a list of things that you can do at home for free. Whenever you hear the dreaded, “I’m bored” this summer, you’ll have a list of options to point to.

5. Prep Your Home Now for Summer

If you run the air conditioner in your home all summer long then your bills will be much higher than they need to be. If you haven’t properly cleaned out air filters or looked for drafts then the price will be even higher. Update your home energy system now in order to save money this summer.

  • Install a smart home system so that you don’t cool the house while you’re not in it.
  • Get used to keeping the home a tad warmer than last year to save big costs.
  • Sign up for a tool like OhmConnect that gives you money back for saving energy.
  • Purchase some portable fans to avoid using the air conditioner so much.
  • Update your curtains or blinds to keep the sunlight out during the hottest part of the day.

6. Start Planning Summer Meals

One smart way to save money this summer is to look at what you’ll be eating. There are so many great ways to cut costs on food in the summer. Switch the whole family away from other drinks and just to water. It’s better to stay hydrated during those hot months and it doesn’t cost much. Find a good local source for fresh fruit, especially water-dense fruit like cucumber and watermelon. Keep meals simple. Use the stove as little as possible so you don’t add heat to the house. If you plan out your meals now then summer cooking should be easy and affordable.

7. Declutter and Sell Things

Take advantage of the downtime in summer to get your house in order – literally. go room by room decluttering everything that you don’t need. Sell what you can. The activity can keep your whole family busy without spending a dime. You might even make a little cash.

8. Earn a Summer Income

One of the best ways to offset the costs of summer is to earn extra income. You have plenty of daylight hours to pick up some extra work. Start looking now to see what option are available to you for a summer side job. Housesitting, ride share driving, caring for other people’s children, and lawn service are just a few of the options to consider.

Read More: