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How to Dine Al Fresco Year-Round: 7 Outdoor Kitchen Design Tips for 2021

outdoor kitchenbrizmaker/Getty Images

The coronavirus pandemic has brought about a new appreciation of backyards and other outdoor spaces. With many of us spending hours and hours at home, we’re all looking for places to relax other than the living room sofa and kitchen. If you have a yard with ample space for you and your family, consider yourself blessed.

But in 2021, outdoor space owners might want to consider taking it up a notch with one of the most sought-after features: an outdoor kitchen.

“I looked at this as an investment our family would enjoy for the next 20-plus years,” says lifestyle expert Evette Rios, who recently embarked on her own outdoor kitchen project.

For people who dream of spending even more time cooking outside and enjoying their backyard, an outdoor kitchen is a must. And now’s the time to get to work to ensure your kitchen is ready when the warm, sunny days arrive.

Take a look at the tips below from experts who have successfully completed outdoor kitchen projects of their own.

1. Set a budget

Outdoor kitchens are not a cheap investment, but the price range is really broad. The cost of an outdoor kitchen ranges from $5,406 to $21,699, according to HomeAdvisor.com. Therefore, there are many ways to tailor your kitchen to your budget.

That being said, you should always prioritize durable materials in an outdoor kitchen.

“Interior furnishings afford a bit more leeway on where you splurge and save,” says HGTV star Laurie March. “But for outdoor kitchens and living spaces, performance and durability—when it comes to cabinetry and appliances—will always be worth it.”

2. Seek out American-made products

Photo by Brown Jordan Outdoor Kitchens

March says COVID-19 has caused major global supply chain interruptions, which has made acquiring building materials and appliances difficult. But sourcing for your outdoor kitchen might be easier if you opt for American-made products.

“I selected Brown Jordan Outdoor Kitchens, which are manufactured in Connecticut. It made the process so much easier,” says March.

She says it wasn’t only about convenience, but also craftsmanship, quality, and the company’s established history.

3. Order appliances early in the planning process

Appliances are what will make your outdoor kitchen shine. But you’ll want to order them sooner rather than later because some companies have long lead times or backordered items.

March advises finalizing appliance picks first and ordering as quickly as possible.

“It’s easier to store them until you’re ready to install rather than have to wait for them to arrive, which can add substantial time to your project,” she says.

4. Design with four seasons in mind

Photo by Chicago Green Design Inc.

Rios highly recommends designing your outdoor kitchen for year-round enjoyment. For example, in her outdoor kitchen, she knew she wanted durable, high-quality cabinets to keep contents dry even in rain or high humidity.

“Heating elements in different zones of the outdoor space are also crucial,” says Rios. “In the kitchen, our pizza oven helps keep us warm during food prep, and the fire pit is a cozy spot for guests to gather.”

If you have a covered outdoor space, she recommends planning and budgeting for ceiling-mounted heat lamps, or invest in one or two free-standing, mobile heating units.

5. Find the right people for the job

March says homeowners should do their homework and hire the right professionals to guide them through their vision, flag any potential pitfalls, and elevate the overall aesthetic.

“For me, bringing a landscape designer onboard brought the whole vision for our outdoor kitchen and yard together,” says March.

Rios says it’s also important to lock in a trusted contractor and installer to ensure the vision and layout for your outdoor kitchen is doable and within your budget.

6. Have fun with color

Photo by DeGoey Designs

Rios says an outdoor kitchen is the perfect space to have fun with color, whether taking cues from the surrounding landscape or going bright and bold.

“Blues and greens can so easily play off of surrounding elements outdoors. I’m over the all-white kitchen, and I think outdoor kitchens are the perfect opportunity to embrace brighter hues,” says Rios, who used a beautiful juniper-green, powder-coat finish on her outdoor kitchen cabinetry.

7. Design based on how you’ll use your space

“Asking yourself the right questions as you think through design options can provide a lot of helpful guidance,” says March. “How do you want to live outdoors? What’s not working with your current or past space, and how could it rise up to meet you a bit better?”

She says it’s also important to consider who’s going to use the outdoor kitchen space. Does it need to be wheelchair-accessible or suitable for pets and kids?

“These details will dictate so much of your design,” says March.

For her space, she envisioned how it could pivot from a space to cook to a space to entertain. The big, open shelf she installed, for example, serves as additional landing space for items she brings out from the indoor kitchen.

The post How to Dine Al Fresco Year-Round: 7 Outdoor Kitchen Design Tips for 2021 appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

How to Make Better Financial Decisions

Woman learning how to make better financial decisions

A key financial decision people struggle to make is how to allocate savings for multiple financial goals. Do you save for several goals at the same time or fund them one-by-one in a series of steps? Basically, there are two ways to approach financial goal-setting:

Concurrently: Saving for two or more financial goals at the same time.

Sequentially: Saving for one financial goal at a time in a series of steps.

Each method has its pros and cons. Here’s how to decide which method is best for you.

Sequential goal-setting

Pros

You can focus intensely on one goal at a time and feel a sense of completion when each goal is achieved. It’s also simpler to set up and manage single-goal savings than plans for multiple goals. You only need to set up and manage one account.

Cons

Compound interest is not retroactive. If it takes up to a decade to get around to long-term savings goals (e.g., funding a retirement savings plan), that’s time that interest is not earned.

Concurrent goal-setting

Pros

Compound interest is not delayed on savings for goals that come later in life. The earlier money is set aside, the longer it can grow. Based on the Rule of 72, you can double a sum of money in nine years with an 8 percent average return. The earliest years of savings toward long-term goals are the most powerful ones.

Cons

Funding multiple financial goals is more complex than single-tasking. Income needs to be earmarked separately for each goal and often placed in different accounts. In addition, it will probably take longer to complete any one goal because savings is being placed in multiple locations.

Research findings

Working with Wise Bread to recruit respondents, I conducted a study of financial goal-setting decisions with four colleagues that was recently published in the Journal of Personal Finance. The target audience was young adults with 69 percent of the sample under age 45. Four key financial decisions were explored: financial goals, homeownership, retirement planning, and student loans.

Results indicated that many respondents were sequencing financial priorities, instead of funding them simultaneously, and delaying homeownership and retirement savings. Three-word phrases like “once I have…,", “after I [action],” and “as soon as…,” were noted frequently, indicating a hesitancy to fund certain financial goals until achieving others.

The top three financial goals reported by 1,538 respondents were saving for something, buying something, and reducing debt. About a third (32 percent) of the sample had outstanding student loan balances at the time of data collection and student loan debt had a major impact on respondents’ financial decisions. About three-quarters of the sample said loan debt affected both housing choices and retirement savings.

Actionable steps

Based on the findings from the study mentioned above, here are five ways to make better financial decisions.

1. Consider concurrent financial planning

Rethink the practice of completing financial goals one at a time. Concurrent goal-setting will maximize the awesome power of compound interest and prevent the frequently-reported survey result of having the completion date for one goal determine the start date to save for others.

2. Increase positive financial actions

Do more of anything positive that you’re already doing to better your personal finances. For example, if you’re saving 3 percent of your income in a SEP-IRA (if self-employed) or 401(k) or 403(b) employer retirement savings plan, decide to increase savings to 4 percent or 5 percent.

3. Decrease negative financial habits

Decide to stop (or at least reduce) costly actions that are counterproductive to building financial security. Everyone has their own culprits. Key criteria for consideration are potential cost savings, health impacts, and personal enjoyment.

4. Save something for retirement

Almost 40 percent of the respondents were saving nothing for retirement, which is sobering. The actions that people take (or do not take) today affect their future selves. Any savings is better than no savings and even modest amounts like $100 a month add up over time.

5. Run some financial calculations

Use an online calculator to set financial goals and make plans to achieve them. Planning increases people’s sense of control over their finances and motivation to save. Useful tools are available from FINRA and Practical Money Skills.

What’s the best way to save money for financial goals? It depends. In the end, the most important thing is that you’re taking positive action. Weigh the pros and cons of concurrent and sequential goal-setting strategies and personal preferences, and follow a regular savings strategy that works for you. Every small step matters!

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Want to know how to allocate savings for your financial goals? We’ve got the tips on how to make financial decisions so you can be confident in your personal finance! | #moneymatters #personalfinance #moneytips


Source: feeds.killeraces.com

How We Paid Off Over $45K of Debt in 11 Months

It seems pretty normal to me now but people still drop their jaws when I tell them we’ve paid over $45K on our loans in less than a year. We still have a year to go and most days I…

The post How We Paid Off Over $45K of Debt in 11 Months appeared first on Modern Frugality.

Source: modernfrugality.com

Debt Settlement vs Bankruptcy: Which is Best?

You’ve tried debt payoff strategies, balance transfers, consolidation, and even debt management; you’ve begged your creditors, liquidated your assets, and pestered your friends and families for any money they can afford, but after all of that, you still have more debt than you can handle.

Now what?

Once you reach the end of your rope, the options that remain are not as forgiving as debt management and they’ll do much more damage to your credit score than debt payoff strategies. However, if you’ve tried other forms of debt relief and nothing seems to work, all that remains is to consider debt settlement and bankruptcy.

Debt settlement is a very good way to clear your debt. It’s one of the cheapest and most complete ways to eradicate credit card debt and can help with most other forms of unsecured debt as well. Bankruptcy, on the other hand, is a last resort option for debtors who can’t meet those monthly payments and have exhausted all other possibilities.

But which option is right for you, should you be looking for a debt settlement company or a bankruptcy attorney?

Similarities Between Bankruptcy and Debt Settlement

Firstly, let’s look at the similarities between bankruptcy and debt settlement, which are actually few and far between. In fact, beyond the fact that they are both debt relief options that can clear your debt, there are very few similarities, with the main one being that they both impact your credit score quite heavily.

A bankruptcy can stay on your credit report for up to 10 years and do a lot of damage when it is applied. It may take several years before you can successfully apply for loans and high credit lines again, and it will continue to impact your score for years to come.

Debt settlement is not quite as destructive, but it can reduce your credit score in a similar way and last for up to 7 years. Accounts do not disappear in the same way as when you pay them in full, so future creditors will know that the accounts were settled for less than the balance and this may scare them away.

In both cases, you could lose a couple hundred points off your credit score, but it all depends on how high your score is to begin with, as well as how many accounts you have on your credit report and how extensive the settlement/bankruptcy process is.

Differences Between Bankruptcy and Debt Settlement

The main two types of bankruptcy are Chapter 7 and Chapter 13. The former liquidates assets and uses the funds generated from this liquidation to pay creditors. The latter creates a repayment plan with a goal of repaying all debts within a fixed period of time using an installment plan that suits the filer.

Debt settlement, on the other hand, is more of a personal process, the goal of which is to offer a reduced settlement sum to creditors and debt collectors, clearing the debts with a lump sum payment that is significantly less than the balance.

Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

When people think of bankruptcy, it’s often a Chapter 7 that they have in mind. With a Chapter 7 bankruptcy, all non-exempt assets will be sold, and the money then used to pay lenders. There are filing costs and it’s advised that you hire a bankruptcy attorney to ensure the process runs smoothly.

Chapter 7 bankruptcy is quick and complete, typically finishing in 6 months and clearing most unsecured debts in this time. There is no repayment plan to follow and no lawsuits or wage garnishment to worry about.

Chapter 13, on the other hand, focuses on a repayment plan that typically spans up to 5 years. The debts are not wiped clear but are instead restructured in a way that the debtor can handle. This method of bankruptcy is typically more expensive, but only worthwhile for debtors who can afford to repay their debts.

Filing for bankruptcy is not easy and there is no guarantee you will be successful. There are strict bankruptcy laws to follow and the bankruptcy court must determine that you have exhausted all other options and have no choice but to file.

Bankruptcy will require you to see a credit counselor, which helps to ensure that you don’t make the same mistakes in the future. This can feel like a pointless and demeaning requirement, as many debtors understand the rights and wrongs and got into a mess because of uncontrollable circumstances and not reckless spending, but sessions are short, cheap, and shouldn’t cause much stress.

How Debt Settlement Works

The goal of debt settlement is to get creditors to agree to a settlement offer. This can be performed by the debtor directly, but it’s often done with help from a debt settlement company.

The debt specialist may request that you stop making payments on your debts every month. This has two big benefits:

1. More Money

You will have more money in your account every month, which means you’ll have more funds to go towards debt settlement offers. 

The idea of making large lump sum payments can seem alien to someone who has a lot of debt. After all, if you’re struggling to make $400 debt payments every month on over $20,000 worth of debt, how can you ever hope to get the $5,000 to $15,000 you need to clear those debts in full?

But if you stop making all payments and instead move that money to a secured account, you’ll have $4,800 extra at the end of the year, which should be enough to start making those offers and getting those debts cleared.

2. Creditor Panic

Another aspect of the debt settlement process that confuses debtors is the idea that creditors would be willing to accept reduced offers. If you have a debt worth $20,000 and are paying large amounts of interest every month, why would they accept a lump sum and potentially take a loss overall?

The truth is, if you keep making monthly payments, creditors will be reluctant to accept a settled debt offer. But as soon as you start missing those payments, the risk increases, and the creditor faces the very real possibility that they will need to sell that debt to a collection agency. If you have a debt of $20,000, it may be sold for as little as $20 to $200, so if you come in with an offer of $10,000 before it reaches that point, they’ll snap your hand off!

Types of Debt

A debt settlement program works best when dealing with credit card debt, but it can also help to clear loan debt, medical bills, and more. Providing it’s not government debt or secured debt, it will work. 

With government debt, you need specific tax relief services, and, in most cases, there is no way to avoid it. With secured debt, the lender will simply take your asset as soon as you default.

Debt settlement companies may place some demanding restrictions on you, and in the short term, this will increase your total debt and worsen your financial situation. In addition to requesting that you stop making monthly payments, they may ask that you place yourself on a budget, stop spending money on luxuries, stop acquiring new debt, and start putting every penny you have towards the settlement.

It can have a negative impact on your life, but the end goal is usually worth it, as you’ll be debt-free within 5 years.

Pros and Cons of Debt Settlement and Bankruptcy

Neither of these processes are free or easy. With bankruptcy, you may pay up to $2,000 for Chapter 7 and $4,000 for Chapter 13 (including filing fees and legal fees) while debt settlement is charged as a fixed percentage of the debt or the money saved. 

As mentioned already, both methods can also damage your credit score. But ultimately, they will clear your debts and the responsibilities that go with them. If you’ve been losing sleep because of your debt, this can feel like a godsend—a massive weight lifted off your shoulders.

It’s also worth noting that scams exist for both options, so whether you’re filing bankruptcy or choosing a debt settlement plan, make sure you’re dealing with a reputable company/lawyer and are not being asked to pay unreasonable upfront fees. Reputable debt settlement companies will provide you with a free consultation in the first instance, and you can use the NACBA directory to find a suitable lawyer.

Bankruptcy and Debt Settlement: The End Goal

For all the ways that these two options differ, there is one important similarity: They give you a chance to make a fresh start. You can never underestimate the benefits of this, even if it comes with a reduced credit score and a derogatory mark that will remain on your credit report for years to come.

If you’re heavily in debt, it can feel like your money isn’t your own, your life isn’t secure, and your future is not certain. With bankruptcy and debt settlement, your credit score and finances may suffer temporarily, but it gives you a chance to wipe the slate clean and start again.

What’s more, this process may take several years to complete and in the case of bankruptcy, it comes with credit counseling. Once you make it through all of this, you’ll be more knowledgeable about debt, you’ll have a better grip on your finances, and your impulse control. 

And even if you don’t, you’ll be forced to adopt a little restraint after the process ends as your credit score will be too low for you to apply for new personal loans and high limit cards.

Other Options for Last Ditch Debt Relief

Many debtors preparing for debt settlement or bankruptcy may actually have more options than they think. For instance, bankruptcy is often seen as a get-out-of-jail-free card, an easy escape that you can use to your advantage whenever you have debts you don’t want to pay.

But that’s simply not the case and unless you have tried all other options and can prove that none of them have worked, your case may be thrown out. If that happens, you’ll waste money on legal and filing fees and will be sent back to the drawing board.

So, regardless of the amount of debt you have, make sure you’ve looked into the following debt relief options before you focus on debt settlement or bankruptcy. 

Debt Consolidation

A debt consolidation loan is provided by a specialized lender. They pay off all your existing debts and give you a single large loan in return, one that has a lower interest rate and a lower monthly payment. 

Your debt-to-income ratio will improve, and you’ll have more money in your pocket at the end of the month. However, in exchange, you’ll be given a much longer-term, which means you’ll pay more interest over the life of the loan.

A Debt Management Plan

Debt management combines counseling services with debt consolidation. A debt management plan requires you to continue making your monthly payment, only this will go to the debt management company and not directly to the creditors. They will then distribute the money to your creditors.

You’ll be given a monthly payment that you can manage, along with the budgeting advice you need to keep meeting those payments. In exchange, however, you’ll be asked to close all but one credit card (which can hurt your credit score) and if you miss a payment then your creditors may back out of the agreement.

Balance Transfer Card

If all your debts are tied into credit cards, you can use a balance transfer credit card to make everything more manageable. With a balance transfer credit card, you move one or more debts onto a new card, one that offers a 0% APR for a fixed period. 

The idea is that you continue making your monthly payment, only because there is no interest, all the money goes towards the principal.

Home Equity Loans

If you have built substantial equity in your home then you can look into home equity loans and lines of credit. These are secured loans, which means there is a risk of repossession if you fail to keep up your payments, but for this, you’ll get a greatly reduced interest rate and a sum large enough to clear your debts.

Bottom Line: The Best Option

Debt settlement and bankruptcy are both considered to be last resort debt-relief options, but they couldn’t be more different from one another. Generally speaking, we would always recommend debt settlement first, especially if you have a lot of money tied up in credit card debt.

If not, and you can’t bear the idea of spending several months ignoring your creditors, missing payments, and accumulating late fees, it might be time to consider bankruptcy. In any case, make sure you exhaust all other possibilities first.

Debt Settlement vs Bankruptcy: Which is Best? is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

The Ultimate Guide to Using a Cash Budget

The post The Ultimate Guide to Using a Cash Budget appeared first on Penny Pinchin' Mom.

There are many types of budgets you can try.  A quick Google search will show you lots of options – including the cash envelope budget.  If you say it will not work for you, it means you did not try doing it the right way.

cash envelope budget system

Whether you are getting out of debt or not, you can probably use some help in making sure you control your spending. Contrary to what many people say, the best way to do this is to use cash.  If you are trying to get out of debt, this is the next step you need to follow!  The cash envelope system is an important step to your debt paydown plan.

Ask many financial experts such as Dave Ramsey or Clark Howard and they will agree that using cash is an important factor in controlling your spending. And it is not a system only for people trying to get out of debt, but everyone as it really makes you think more about your spending.

If you are just learning about budgeting, you will want to check out our page — How to Budget. There, you will learn everything you want to know about budgets and budgeting.

 

HOW TO USE THE CASH BUDGET

WHY A CASH ENVELOPE SYSTEM?

Cash is King!!  I say this all of the time because I genuinely believe this.  When I bring up using cash, the first rebuttal I get is “If I have cash, I spend it far too easily.”  Sorry, I don’t buy it.  The main reason that people fail on a cash budget is a lack of tracking what they spend and assigning it a task.

[clickToTweet tweet=”The truth is that when you use cash, you spend more wisely. ” quote=”The truth is that when you use cash, you spend more wisely. “]

When you have only $200 for groceries, and you also know that it must last for two weeks.  It forces you to think twice before you buy that extra item.  A cash budget never lets you overspend because once the money is gone – it’s gone.

 

CASH ENVELOPE CATEGORIES

Getting started using the envelope system for budgeting is pretty simple.  To begin, look at your budget.  The following are cash envelope categories you should consider using:

  • Groceries
  • Clothing
  • Dining Out
  • Hair Cuts/ Beauty
  • Doctor Visits
  • Random Spending (which is your spend as you want – only if you can afford it)
  • Medicine
  • Doctor/Dentist Visits

You will notice that I didn’t include gasoline on my list.  The reason I didn’t is that most people won’t overspend at the pump.  Most of us just fill up our tanks and go about our merry way.  You also don’t drive around and burn fuel or decide to fuel up because your neighbor did.  It is on your budget but is not one you where you will overspend. Not only that, it is usually much more convenient to pay at the pump.

 

PRINTABLE DIY CASH ENVELOPE TEMPLATE

When it comes to using the cash envelope system, you can purchase one such as that sold by Dave Ramsey or you can just use the envelopes in your desk drawer.  I’ve even got a cash envelope template you can use as well (purchase HERE for $2.99).

 

HOW MUCH CASH DO I NEED?

Once you have your categories, you have to determine how much cash you need for each group.  You will figure the amount based on your pay period.

For example, if payday is every two weeks, take the total monthly grocery budgeted amount and divide it by 2.  You will then know how much money you will need for each of the two pay periods for that month.  It is important you have a budget that works (including using budget printables as needed).

Next, review, each category you will use cash for and figure up the amount you will need.  Once you have done that, you will also want to figure out how many of each denomination of bill you will need.  List the total amount, by denomination, on a piece of paper.  Take that, along with a check from your account for the amount, to the bank.  You will make a withdrawal and then split up the cash into each envelope.

 

HOW TO USE THE DAVE RAMSEY ENVELOPE SYSTEM

Sometimes, it is easier to understand something if you can see it in action.  Follow this simple cash budget example to see how it works.

 

START WITH YOUR REGULAR BUDGET

Let’s say you bring home $2,500 per month. You have completed your written budget and have items such as your mortgage, utilities, food, dining out, debts and other expenses.  Most of your expenses are paid with a check or electronic transfer. Those are not the categories to consider for your cash budget.  Instead, look at those items that you don’t pay for all at once, but rather over time.

These are the items that will work best if you use cash.  In this case, you will include groceries, clothing, random spending, doctor visits and dining out.  (We don’t include fuel because there is never a chance you will overspend on fuel).

In this example, we will only use cash for these items:

MONTHLY BUDGET

Groceries – $500
Clothing – $100
Random Spending – $80
Doctor – $50
Dining Out – $100

DETERMINE HOW MUCH CASH YOU NEED PER PAYCHECK

As you can see, the budget above is based on your monthly income.  Since you are paid every two weeks, that means your take-home pay is $1,250 twice a month.  You only need enough money to cover half of each of these categories.  Your spending for each will look like this for each pay period:

MONTHLY BUDGET DIVIDED FOR BI-WEEKLY PAY

Groceries – $250
Clothing – $50
Random Spending – $40
Doctor – $25
Dining Out – $50
Total cash needed:  $415 per pay period

Now that you see what you have budgeted to spend on each category each pay period, you need to determine how many bills of each denomination you will need to get from the bank.

 

KNOWING HOW MUCH CASH YOU NEED FOR A CASH SYSTEM

Using the same cash budget example above, here is how you will do that:

Groceries – $250 —- 3 $50 bills, 5 $20 bills
Clothing – $50 — 2 $20 bills, 1 $10 bill
Random spending – $40 —- 2 $20 bills
Doctor – $25 —- 1 $20 bill, 1 $5 bill
Dining Out – $50 —- 2 $20 bills, 1 $10 bill

You need to get this cash from the bank.  You can’t use the ATM as it will spit out only $20s and $10s and will not give you the correct number of bills.  Make a note to hand to the teller that shows how to break down the cash:

3 $50 bills
12 $20 bills
2 $10 bills
1 $5 bill

Write a check for $415, payable to “CASH” and take it, along with your slip of paper to your bank.  The teller will cash the check and give you the bills you need.

 

FILL YOUR CASH ENVELOPES

When you get home with your cash, it is time to add it to each envelope.  Find the one for each category listed above.  Pull the cash from the bank envelope and split it into each envelope, per the list above.  Add the amount of the deposit to the front of the envelope, adding to any amounts that may be left from the prior pay period.

 

USING THE CASH ENVELOPE SYSTEM

Once you have your cash and your envelopes, it is time to put them to work.  The only – and I mean only – way that this will work is if you track every. Single. Transaction.  I am not joking.  Doing this can help you stay on track, and you also have to account for everything you spend.

For example, shop as usual at the grocery store.  If your total is $20.17, you will pay with the cash from your groceries envelope.  Place any cash you get back into the envelope and then deduct your purchase from the balance.  So, if you had $100 and spent $20.17, the new total cash you have left will be $79.83.

The printable cash envelope template above includes lines on the envelope, so you have a place to track your balance.  If you use your own, add it to the outside or keep a slip of paper inside.

Make sure you track every purchase. You can always see how much money you have left and where it was spent.  It helps you monitor your spending at a glance.  Once the cash is gone  – you are done spending money.

USING THE VIRTUAL CASH ENVELOPE SYSTEM

I also get that sometimes, cash is just something you can’t do. You need (or just really prefer) using your debit or credit card instead. Is there a way you can apply this method when you spend using plastic?

Of course!

Rather than get paper money to put into your envelopes, you can use either a virtual envelope or paper tracking to monitor your spending.

Virtual envelope systems, such as ProActive, help you monitor and control your spending but allow you the convenience of using your credit or debit card.  Rather than paying with cash, you swipe but know how much you have left to spend on each category in your budget.

If you would rather opt for something that is free, you can print out cashless envelopes instead.  They work in the same fashion as cash envelopes.  You still write down the amount you have to spend on each form and as you shop, you keep track.  When you are out of “money” according to your envelope tally, you are done shopping.

You can read even more and get started with different ways to use the envelope method even if you don’t use cash.

 

HOW TO USE A CASH METHOD WHEN SHOPPING ONLINE

So, what if you don’t shop in the store, but rather, make purchases online, how would that work with a cash budget?  Can you even do that?  Yes, you can.  You just have to handle it a little differently.

The first option is to leave some of the money you normally get in cash, in your account.  For example, if you spend $100 every paycheck through online purchases, get $100 less in cash.  You can still account for it by using cashless envelopes instead.  That way, you still monitor your spending and don’t blow your budget.

The other option is to still get all of the cash you normally need.  Then, if you buy something online, head to the bank and re-deposit that back into your account.  You still get the full benefit of using cash and seeing the money come out of your envelopes.

You still can use cash when you shop online, you just have to make some adjustments.

 

WHY THE CASH ENVELOPE SYSTEM WORKS

The reason why the cash envelope system works is pretty simple.  Accountability.

When you have to make yourself accountable for your spending, you are taking control.  It also will help you spend less.  If you only have $100 to spend on dining out over the next two weeks, you think twice about ordering take out three days in a row. When the money is gone – you are done spending!!!

It isn’t entirely about cash.  It is learning self-control.  That is the one thing everyone will gain in going through this process.  It enforces this way of thinking.  You will quickly learn to love using cash, and you will feel more in control of your finances.

Cash also has more emotion attached to it. You don’t think about the consequences of a purchase when you swipe a card.  However, handing over that cold, hard cash sometimes hurts.  You do think about each purchase a bit more.

We’ve been doing this for so long that I don’t know how to shop without my envelopes!   It is routine, and it helps us always know, in a matter of minutes, how much money we have available for the things we need.

The post The Ultimate Guide to Using a Cash Budget appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

Watch Your Wallet: 7 Hidden Costs of Self-Isolating at Home During Coronavirus

Coronavirus Is Costing You Cash at Home: 7 Hidden Expenses of Self-IsolatingYuttachai Saechan/Getty Images; realtor.com

Those who are fortunate enough to still be collecting a paycheck while quarantined or sheltering in place might expect to build up some serious savings. While you work from home, you’re avoiding your usual commuting expenses, and you’re probably saving money by not going to bars, restaurants, and movies, or skipping that vacation to Fiji.

But as spending decreases in some areas during self-isolation, it can creep up in others. To brace yourself and your budget, keep an eye on these expenses while you’re self-isolating at home.

1. Utilities

If you’ve gone from office life to Zoom life, you’re spending more time at home than usual, which could ramp up your household expenses.

“Your utility spending might be considerably higher if you’re spending more time at home cooking, charging devices, using lights and appliances,” says Ted Rossman, industry analyst at CreditCards.com.

To keep your utility bills down, turn off lights when you leave the room, open windows during the day to let in cool air, unplug devices that you’re not using, and consider turning down your water heater by a few degrees.

2. Groceries

Grocery delivery

m-gucci/Getty Images

Even if you’re not hoarding (and you shouldn’t be), you might find yourself spending more on groceries while you shelter in place.

For some people, an uptick in grocery spending will be offset by the money saved from not dining at restaurants. But if your local store is picked over—or if you pay fees for grocery delivery—you could spend more on groceries than usual.

“I’ve been to a local grocery store, and the only thing that was available was organic, so I couldn’t buy the generic. I actually had to spend more money,” says Steve Repak, author of the “6 Week Money Challenge for Your Personal Finances.”

If your grocery spending feels out of hand, be flexible and creative with your menu. Cook the food you already have at home before you head back to the store. Sites such as Eater have compiled resources for home cooks, including Pantry Cooking 101 and How to Stock a Pantry.

If you’re using a delivery service, place infrequent, larger orders instead of several small orders. Or consider curbside service; many stores are allowing free pickups where they bring your groceries right to your car, so you can save on delivery fees and tips.

3. Meal delivery and takeout

You may not be able to enjoy a nice meal at a restaurant, but you can order takeout and delivery—and those indulgences can add up quickly. After all, it’s not just the meal you’re paying for.

“There’s probably still a service fee, and on top of that you have to leave a gratuity,” Repak says. (It’s also a good idea to generously tip the workers who are delivering your food in these times.)

If you’re on a budget, reserve takeout and delivery for special occasions or those days when you just can’t muster the motivation to cook.

4. Alcohol and other sources of comfort

Curl up with a good bottle…

Moyo Studio/Getty Images

If you find yourself decompressing with a glass or two (or three) of wine every night, your drinking habit could do a number on your budget. And you wouldn’t be alone—alcohol consumption has shot up nationwide, and in states where recreational marijuana is legal, dispensaries are reporting booming business.

“Social isolation is really strongly linked to physical and mental health problems, and the way we cope with a lot of them is by drinking more,” Repak says. “People are going to smoke more and drink more … and we need to find other healthier coping mechanisms to offset that additional spending.”

You may not want to totally forfeit your evening glass of pinot, but you can make your supply last longer by sipping a mug of (far more affordable) chamomile tea on occasion, or opting for a calming yoga video or breathing exercise.

__________

Watch: Our Chief Economist’s View on the Pandemic, Mortgage Rates, and What’s Ahead

__________

5. Subscriptions

You’ve rewatched all your favorite shows on Netflix and Hulu—so, now’s the time to add a Disney+ subscription, right?

Not so fast, Repak says.

“Save a little bit of money by just picking one of the streaming services,” he suggests, or at least don’t pile on new subscriptions to the ones you already have.

To free up your budget, take inventory of your other monthly subscriptions, services, and other recurring expenses, and see if there’s anything that can be eliminated.

“Ten dollars a month may not sound like a lot, but if you have five of those, that’s $600 annually,” Rossman adds.

6. Online shopping

Online shopping knows no quarantine

Poike/Getty Images

If you turn to retail therapy to soothe your soul, your budget could take a hit. True, many retailers are offering deep discounts in order to move merchandise, but even discount purchases add up.

“Impulse buying is a potential trap,” Rossman says. “Some people fall victim to it more than others.”

Instead of clicking “add to cart” as a coping mechanism, Repak suggests cleaning out your closet instead.

“This is a great time that we can offset our budget by decluttering our house or apartment,” he says.

Use sites like Poshmark to sell your clothes, or Mercari for your household items. Many donation centers such as Goodwill are still accepting donations, too—just call ahead to make sure your local store or donation drop-off location will take your items.

7. New hobbies you’re trying in quarantine

Our spending habits are highly personal, and you might find yourself throwing money at a new habit or hobby to fight cabin fever.

“It’s a worthwhile exercise to track your spending, especially now that so much is different,” Rossman says. “Look through your credit card and bank statements from the past month. Do you see anything surprising? Are there areas where you spent extra but didn’t feel it was worth it? These could be good ways to cut back.”

And remember: Even if quarantine has eliminated some of your old day-to-day expenses, it’s easy to overestimate how much you’re saving.

“Most people don’t have a great handle on their budget and spending habits anyway, and so much has changed of late,” Rossman says. “It’s easy to overlook things.”

The post Watch Your Wallet: 7 Hidden Costs of Self-Isolating at Home During Coronavirus appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

A Guide To Everything You Need To Know About Home Ownership Costs [Free Download]

Along with the excitement of purchasing a new home, comes the additional costs that you will be expected to pay as a homeowner. Apart from covering the mortgage of your home, you’ll have additional expenses – such as home insurance – that you will be expected to cover. If you’re looking to budget for a home purchase, it’s important that you consider these costs as they can add up to thousands of dollars each year.

To help you make educated decisions when budgeting, we’ve compiled a list of the major home ownership costs in one free, downloadable guide. Get the Home Ownership Costs to Consider guide here.

Home Insurance

Home insurance policies help protect against serious damage and destruction, like fires, leaks, floods, or break-ins. It also protects a homeowner from personal liability. Some banks may offer home insurance products, although you can typically purchase a home insurance policy through a home insurance agent or broker. 

Tip: You may get better rates if you use a broker or agent. It’s also important to keep in mind that policies typically renew on an annual basis.

Condo Fees

The cost of maintenance fees should be taken into account when you’re buying a condo. This recurring cost is in addition to your mortgage and impacts how much home you can afford. 

Your mandatory monthly fee will vary by your building and square footage. It typically covers:

  • Utilities (such as water and garbage collection)
  • Building insurance
  • Maintenance of common areas (such as the gym, pool, front desk, hallways, landscaping)
  • Building reserve fund (covers emergencies and long-term maintenance projects such as a new roof or elevators repairs)

What Are Status Certificates?

If you’re looking to purchase a condo, you’ll want to look into obtaining a status certificate so that you have as much information about the building and your unit as possible before buying. A status certificate provides valuable information about the condo corporation and its financial

situation. It includes details on the budget, legal issues, the reserve fund, maintenance fees, and any fee increases expected in the future. 

Tip: You’ll want to carefully review your status certificate with your lawyer before making a purchase.

Property Tax

Property taxes are paid annually by homeowners to their municipality. These taxes are ongoing and are separate from your mortgage. Your annual property tax can often be paid in installments.

Tip: It’s important to remember that this cost is not due at closing, but is a recurring cost.

How Are Property Taxes Calculated?

Your property tax rate will vary depending on the value of your property as assessed by your provincial assessment authority. This is then multiplied by a rate that falls between 0.5% to 2.5%.

How Do You Pay Property Taxes?

You can pay your property taxes either through your mortgage provider or directly to your municipality. 

Your Utility Bills

When you purchase a home, you’ll have to set up or transfer your utility bills to your new home. If you live in a condo, these costs may be included in your monthly maintenance fee. Your utility bill will include:

  • Hydro (electricity)
  • Heat
  • Water and Garbage
  • Internet, Phone, Cable

For the full details on the home buyer’s journey including examples, advice, pictures and sample calculations, download a copy of our free Home Ownership Costs to Consider Guide here.

The post A Guide To Everything You Need To Know About Home Ownership Costs [Free Download] appeared first on Zoocasa Blog.

Source: zoocasa.com

5 Neglected Expenses That Can Ruin Your Vacation Budget

Vacation Budget

5 Neglected Expenses That Can Ruin Your Vacation Budget

With the weather warming up, summer vacation isn’t too far away. If you haven’t already, it’s time to start a vacation budget and account for everything you’ll be paying for that week.

After all, you don’t want to have to cut your relaxation time short because you forgot that you actually have to pay for gas.

But there are other financial surprises too, ones that perhaps you don’t think very much about when sitting down to create your budget. Here are a few that maybe you have not taken into account just yet, but absolutely need to.

Let Mint.com help you create the perfect vacation budget. Click here to get started!

Parking

Despite free public parking not being a popular idea among money-hungry companies for a while now, a lot of us still forget that we have to pay for the damn thing. This may be a few bucks or a few dozen bucks, but either way you can’t forget it when budgeting for your vacation.

Do the research to find out the charges for each place you’re staying or going to. Going to see a ball game? How much does the park charge to park? Going to take the train into the city? How much do they charge and, if need be, how much does valet parking cost?

Add those up, and you might be surprised how much not actively driving your car can run you.

Wi-Fi

These days, Wi-Fi is just about everywhere, and just about everydiv uses it. While the airport Wi-Fi might be free, the hotel you stay in might want a few bucks extra for use of their signal. This is especially true in nice, upscale hotels, where Wi-Fi access could run you $10-$20 a day.

So either annoy your family by checking into some rinky-dink motel, where Wi-Fi is free but everything is roach-ridden and moth-eaten, or factor in the money necessary for Junior to use his iPad on the coziest bed he’s ever slept on.

The Food Bill

Even though it’s part of our daily lives, many people don’t think about food when punching out their budget. And if they do, they vastly underestimate how much stomach fuel actually costs.

This goes for vacations as well. You should find out what restaurants in the area typically charge, so you don’t get blindsided by the high cost of steak. If you’ve rented out a house with a kitchen and fridge, take some time to deduce how much you and your family spend on food at home.

Then, take that total and add a bit more to the food budget. It’s vacation time, after all, and for many, relaxing and unwinding means more burgers and s’mores than during a regular workweek.

Checked Bag Fees

If there’s one thing all travelers can agree is pure evil, airlines charging people to check in their bags has be it. Some airlines, such as Southwest, will let customers get away with some checked bags for free, but expect to fork over $25 or more for each additional one.

Checked bag fees need to be part of your budget every time, because it’s never, ever going away. Airlines make too much money off of it to abandon it simply because we don’t like it.

Either pack minimally, ensuring that you can get away with nothing but carry-ons and maybe one or two checked bags, or put a couple hundred bucks aside in the budget for the over packers in your family.

Vacation Budget Plan

Spontaneous Activities

There was an episode of Full House where Danny Tanner attempted to script the family’s Hawaiian vacation to the letter — every activity planned ahead of time, strict time limits on said activities, and naturally every penny accounted for.

This almost never happens. Vacations aren’t nearly that organized, and you will have some unpredictable moments, not to mention costs that you didn’t see coming. Maybe your children see an ad for horse riding trails and immediately start begging you to let them ride the horsies.

Sadly, horsies aren’t cheap, but this is a vacation, so why not let them indulge?

The trick is to not indulge too much. Don’t do everything that sounds fun, because the inevitable overdraft charges on your bank account won’t be very fun. Leave enough room in your budget for unplanned, spontaneous activities, and stick to that window as closely as you can.

This way, you and your family will have a great, fun vacation, and you won’t still be paying for it months and months later.

Mint.com can help create a complete vacation budget just for you and your family. Click here to sign up and start!

The post 5 Neglected Expenses That Can Ruin Your Vacation Budget appeared first on MintLife Blog.

Source: mint.intuit.com