Personal Finance News

Thirty four percent of American adults have zero savings. Surprising? Actually it is not considering that half of American families have no savings for retirement at all. Americans continue to rely on debt in their everyday lives. The result is that majority of them go through their lives being unable to repay that debt; with 73 percent of Americans dying with an average debt of $61,554. The year started off with the total credit card debt hitting $1.02 trillion and credit strategists have called for Americans to focus on reducing their credit card debt.

With APR rates at an average 19 percent, savings have taken a hit. If you are one of the many Americans looking to increase your savings, there are many small adjustments you can easily incorporate into your everyday habits. Here are three simple ways to bulk up your savings.

Embrace Homemade

The DIY trend continues to gain popularity amongst consumers and it certainly has its reasons. Adopting a homemade attitude to several parts of your daily lives can save you small amounts in each category. It may seem minimal in isolation but at the end of the month, you can surprised at the total shaved off.

Batch cooking and meal prep is often a popular choice for Americans looking to live a health conscious lifestyle. However another effect of embracing home cooked meals: it can save upto $2,000 a year. Those small daily purchases add up to a sizeable amount. So while that $1.50 daily cup of coffee weekdays may not seem a lot; over the course of a week you are looking at a savings of $7.50.

Homemade meals do not have to be boring or bland either. With many online resources such as recipes, you can easily make delicious healthy lunches and sweet tooth treats.

DIY does not apply to just your meals but can also extend to other areas including homemade gifts and getting crafty with your home and car repairs yourself. Basic maintenance tasks such as oil changing and testing of your tyre pressures can easily be done yourself, saving you a pretty penny annually. By learning the basics of car maintenance, you not only save money but you are also better prepared in event of a breakdown.

Consider The Cash Envelope System

If you are struggling to get out of debt, one of the first things to do is look at your spending and where your money is going. The cash envelope system can help you get your finances in shape and allows you to achieve those savings goals while actually seeing how your cash is spent daily or weekly.

Every month, money is allocated into your various envelopes such as mortgage and groceries. The principle behind it is that you stick to using your allocated cash and when it has finished, you would have to wait until the next replenishment date. The envelope system is a great addition after creating a budget and allows you to identify how to best spend your money. Bonus point; your access to credit cards are limited which avoids your debt increasing further.

Think About It

Fifty four percent of Americans spend over $100 on impulse buys. Afterwards, 52 percent of women and 46 percent of men regretted their purchases. Instant gratification is a common mistake amongst shoppers especially those with credit cards in hand. By taking a few days (up to 30 days) to mull over the purchase, you can find often that you will change your mind about wanting the item. The end result is money saved on another impulse buy.

So get started on increasing your retirement savings and knocking down those credit card debts. With these three simple tricks, it is easier than ever.

With cryptocurrencies still in the news, tumbling 10 percent to 20 percent in recent days thanks in part to a change in calculating how the coins are valued, the debate rages on as to whether bitcoin, ethereum, ripple, bitcoin cash and litecoin are, in fact, money.

The Oracle of Omaha, Warren Buffett, said on CNBC that the speculation in bitcoin, and other cryptocurrencies, “will have a bad ending.”

CNBC senior analyst Ron Insana writes:

I am predisposed to view them as just speculative tokens in a cryptocurrency bubble that has inflated more quickly than any other in financial market history. Admittedly I’m green with envy for failing to foresee the explosive rally in the price of bitcoin when it was first brought to my attention several years ago. Having said that, there are many things I find quite ironic about how bitcoin and other “cryptos” are described. First, they are largely denominated, or discussed, in U.S. dollar terms.

If the dollar is archaic, as the crypto-enthusiasts believe, why not speak only in crypto-terms…? Because the dollar remains the reserve currency of the globe. Its usage remains widespread, accounts for roughly 65 percent of all global economic transactions.

It’s much easier to buy and sell dollars, stocks or commodities than it is to trade bitcoin and its brethren. The conversion of one crypto to another is relatively easy on these embryonic exchanges. But getting your digital wealth converted into cold hard cash is more problematic… And while the growth has been impressive, it remains very difficult to walk into any establishment and exchange a digital token for goods or services.

Due to a move towards sustainable energy solutions, 2016 saw American spending on energy bills reach a record low. Despite this, energy costs are still a cause for concern for many cash-strapped Americans. If you are still reliant on coal and gas, you could not only be damaging the environment, but your personal finances also. Regardless of which energy source you use, here’s how you can be more efficient and reduce your monthly outgoings.

Automation

You probably already know that you shouldn’t leave lights on when you’re not using them. The problem is, when you’re not using them is exactly the time when you’re not there to check if you’ve left them on. Over the course of the year, forgetfulness can have significant costs.

Overcome this by installing motion sensor lighting. This can be done relatively cheaply and should pay for itself over time. The lights will always be there when you need them, but will switch off the second you leave the room, meaning you get maximum efficiency out of your lighting.

Utilize Nature

This can be a big task and relies on your house being built in the right way. However, there are also small steps you can take. If possible, install large windows and remove objects outside which may be blocking the sunlight.

Air conditioning can contribute to over 50% of your electric bill. When it is too hot, see if opening a window is enough to keep you cool. The same goes with heating. Consider using a log fire instead of electric heating.

Unplug

An item which is plugged in and on standby is using energy, while providing no benefit to you. The vast majority of your electronics do not need to be plugged in all the time. A healthy energy efficient home will only keep the essentials plugged in, while removing everything else.

The one exception is the refrigerator. This will usually be kept running, but should be kept at 39-41 degrees Fahrenheit for optimal efficiency. If you are going on vacation, make sure to unplug the fridge completely.

Switch Energy Supplier

If you have cut out all unnecessary usage of energy and still feel your bill is too high, then you can always switch provider. Search online to see if there are better deals available.

If you are already with the cheapest company, then maybe your energy source is the problem. Consider whether it is possible to switch to renewable sources. The United States government will allow you to deduct 30% of solar panel installation costs from your federal taxes, meaning it is more affordable than you think. Many consumers still believe solar isn’t competitive, but it has dropped in price by 99% since the 1970s and is on its way to become the world’s cheapest energy source.

Reducing your energy bills could be one of the best ways to get your finances in order. With payments made every month, even small savings can make a big difference over time. Embrace automated lights, use nature to your advantage, unplug electronics and don’t be afraid to switch to a new provider or energy source if a cheaper option is available.

Do you daydream about traveling to exotic places? Do your dreams come crashing down when you think about your current financial situation? We don’t think that a lack of funds should ever stand between you and travel. After all, trips to foreign lands are often the most rewarding experiences in life. To help you get on board with these experiences, we’ve put together a few simple steps for financing your travels.

Create a Budget

The costs of traveling may seem so astronomical that you haven’t even taken the time to look at the actual prices. The first step to figuring out how much your trip will cost is to break it down into its component parts and see how much airfare, accommodations, car rental/public transportation, food, activities, and more will cost you. There are several sites, such as Kayak, that will give you good estimates of how much you can expect to spend.

Set Money Aside in a Sinking Fund

Once you have a good idea of how much your trip will cost, you can start setting money aside for travel by placing it in a sinking fund. This is a savings account in which you squirrel away a specific amount of money from each paycheck to help pay for your upcoming trip. You should avoid touching this money. At first, it may be hard to set aside part of your income in this way, but it gets easier with time. Frequent travelers often have a permanent sinking fund.

Sign Up for Travel Credit Cards

Travel credit cards are a must for frugal traveling. When you sign up for a quality travel card, you instantly get a huge bonus of several miles. For instance, with the Alaska Airlines card, you get 25,000 miles. This is almost enough to get a free flight. When you are choosing cards, be sure to look for these sign-up bonuses as well as category spending bonuses and low spending minimums. Also, watch out for the annual fees, which are usually unavoidable with these cards.

Cut Costs

There are several ways you can cut costs in your daily living, so you can contribute more to your sinking fund. This includes getting rid of cable, going with a more affordable phone, or selling your car. You can also reduce your travel expenses by taking advantage of the sharing economy.

When you consistently follow the above steps, you will have no problem visiting places throughout the world.