From student loans to low-paying jobs, saving for future goals, like owning a home, can seem like a pipe dream for today’s younger generation. Financial expert and author Eric Tyson says there are powerful steps younger people can take right now to make the most of their money and save for a brighter future. He says it’s all about adopting a “savings mindset.”
According to Tyson, author of Personal Finance in Your 20s & 30s For Dummies®, a savings mindset involves getting the most from your spending while also spending less money in general. It also means living within your means, sticking to a budget and saving as much as you can. Two essential things to remember? Every little bit you save matters, and it’s never too late to start.
Here are few of Tyson’s tips and tricks for saving money that will help build your nest egg for buying a home before you know it.
Consider living with roommates or family. While you’re young and still free of dependents, take advantage of the opportunity to share a rental or live with relatives as opposed to living solo. If living with family, be sure to set expectations, raise concerns and establish costs and rental agreements up front.
Choose a low-cost rental. If you’re living beyond your means, now is the time to dial it back and find a place that fits within your budget. The less you're spending each month, the more you can save toward buying your own place.
Negotiate your rental increases. Some landlords increase their tenants' rent no matter how good the tenant and regardless of the state of the economy. If your local economy is weak and the rental market is soft or your living quarters are deteriorating, negotiate with your landlord. You have more leverage and power than you probably realize. Landlords don't want to lose good tenants who pay rent on time, and filling vacancies takes time and money. Craft a polite note or pay a personal visit to make your case.
Cut your utility bills. Even as a renter, try to keep utility costs low as landlords factor your energy consumption into future rental hike decisions. Adjust your thermostat and wear layers in the winter, and keep your place warmer during summer months. And if you pay for garbage service, recycle as much as possible.
Contribute to a retirement plan. Tucking away money in employer-based retirement plans, such as 401(k) or 403(b) accounts, or self-employed retirement plans is a great way to exclude money from your taxable income.
Use a health savings account. You can reduce your taxable income and sock away money for future healthcare expenses by taking advantage of a health savings account (HSA). HSAs can offer better tax savings versus retirement accounts because, in addition to providing upfront tax breaks on contributions and tax-free accumulation of investment earnings, you can also withdraw money from HSAs tax-free so long as the money is used for healthcare costs. No other retirement accounts offer this triple tax-free benefit.
Learn to cook. Cooking at home as opposed to eating out can save you hundreds of dollars each month, not to mention, keep you healthier as well. Be sure to cook enough so that you can brown bag your lunch with leftovers, too.
Eric Tyson, MBA, is the author of five national best-selling financial books, including Investing For Dummies, Personal Finance For Dummies and Home Buying Kit For Dummies. He has appeared on NBC's Today show, ABC, CNBC, FOX News, PBS and CNN, and has been interviewed on hundreds of radio shows and print publications. “Personal Finance in Your 20s & 30s For Dummies” ® (Wiley, 2017, ISBN: 978-1-119-43141-1, $19.99) is available at bookstores nationwide, from major online booksellers, and direct from the publisher by calling 800-225-5945.
Are Your Passwords Protecting You?
As more and more of life takes place online, we’re sharing an increasing amount of private information on the Internet... and getting a lot more comfortable about doing so. Therein lies the problem; as we become more lax, criminals become more adept at hacking information, such as credit card and bank accounts, and social security numbers.
Your first line of defense for protecting yourself on the Internet? A stalwart password. Here are some guidelines for creating and maintaining super-strong passwords.
- Never share your password with anyone. You may think it innocent enough to give your password to a close friend or family member, but once it’s out of your hands its safety is out of your control. You never know when it can accidentally land in the hands of the wrong person.
- Create complicated passwords, but one’s you can remember. Combine facts only you know, such as your childhood phone number, the name of your first crush or your confirmation name. Then take the first letter and/or digit of such facts and create a password that’s a mystery to others but one you’ll never forget.
- Use a mix of lower and upper case numbers, letters and symbols, choosing numbers and symbols that double for a letter, such as the @ sign for A, $ for S, and the number 1 for I. Mix these numbers and symbols to abbreviate a familiar phrase.
- Consider double authentication, like fingerprints or images.
- If it’s in the dictionary, don’t use it. There’s actually software that criminals can use to guess words used in dictionaries for passwords.
- Mix it up. While it’s tempting to only have to remember one password, don’t. Use different passwords for different sites—that way if one gets hacked, it won’t take down your entire online world.
Source: connectsafely.org
Don't Forget to Focus on Yourself Over the Holidays
There are so many things to love about the holiday season, but sometimes we forget that. We get caught up in coordinating events, stressing about hosting and trying to manage conflicts between family members. One thing that’s been proven to lessen this kind of stress is carving out “me time” on a regular basis. Here are a few ways you can do that:
Set your alarm
While waking up when it’s still dark and cold out is not everybody’s favourite chore, setting your alarm 30 minutes earlier can give you a chance to greet the day before the morning chaos has begun. Enjoy your coffee in peace and take this time to reflect.
Use your benefits
If you have the luxury of a workplace that provides benefits, check and see if they provide you with coverage for a certain amount of massage therapy. Since most people’s benefits expire at the end of the year, this is an ideal time for you to book a relaxing massage and have it covered.
Scrap the desk lunch
During a busy workday, it can seem like a better use of time to keep your workflow chugging along as you simultaneously scarf down a lunchtime sandwich or salad at your desk. The risk, of course, is that you end up exhausted at the end of the day. Make a pact with yourself, if only for the season, to take a full break for your lunch. Whether you use the time to go for a stroll or find a quiet nook, use the time to let your mind recharge. As a bonus, you’ll feel refreshed when it’s time to tackle your afternoon tasks.
The holidays are all about thankfulness and gratefulness, but that doesn’t mean there’s something wrong with taking some time for yourself. Your friends and family will notice the difference, and so will you.
The Kitchen is the Heart of the Home: Pasta Parmesan Soup
If there’s one thing Peggy Ferris really loves about any home, it’s the kitchen. Peggy is a firm believer that the heart of a home is the kitchen, because it’s where we make and share meals with with friends, family, and neighbors. Just go to any party, where is everyone gathered? The kitchen!
