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Apache is functioning normally

October 30, 2024 by Brett Tams

A full-time job isn’t always enough to achieve your financial goals. That’s why nearly 40% of U.S. adults have a side gig, according to a 2023 Bankrate survey. Making extra money can help you pay off debt, save to buy a house, or catch up on retirement savings.

Fortunately, there’s a wide range of side hustles and passive income streams that can help you tackle financial to-dos or even take your wealth to the next level, says financial blogger Kelan Kline. A side hustle is typically an additional job a person can take to earn extra money to supplement their primary income. On the other hand, passive income can be income that requires little or no effort to maintain.

Kline should know. When he and his wife Brittany were saddled with student loan debt, they launched The Savvy Couple—a blog focused on side hustles and money management tips—to help them earn extra income.

“It became a full-time business that allowed us to quit our 9-to-5 jobs in law enforcement and helped teach us to fast-track our financial freedom,” Kline says.

While most secondary gigs won’t turn into new careers, they can add a spark to your savings. So, what are some side hustle and passive income ideas that can help you make extra money? Read on to see which types of side hustles and passive income ideas can inspire you to accelerate your financial targets—and learn how your new income streams can work together to generate even more cash.

What is a side hustle?

A side hustle is any income-generating work outside of your primary job—anything from food delivery to selling items online. People use the extra income to improve their financial health, from building up savings to preparing for a big purchase.

What are some side hustle ideas?

“To find a side hustle, you should think about your existing skills and interests to narrow down what kind of opportunity you’re looking for,” says Randa Kriss, small business specialist at NerdWallet.

We’ve collected some side hustle ideas you can try without too much previous experience to help you make extra dough—or even find a new job:

(All earnings information courtesy of ZipRecruiter🙂

Ride-hailing or ride-sharing apps make it easier for people to get around on demand, while creating a market for drivers and their cars. For many ride-share drivers, this is their primary source of income, but it can also be a convenient side hustle option.

“Driving for a ride-sharing service is a great way to make some extra money,” Kline says. “It allows you to be your own boss and set your own hours, which can be especially beneficial for people who have a flexible schedule or want to supplement their income.”

Approximate earnings: $13 an hour

Delivery driving

Don’t want to drive strangers around? Deliver food instead. Many delivery service apps need drivers to drop off grocery hauls and restaurant takeout.

“Delivery driving is a great way to earn some extra money on the side, while also having some time to decompress,” says Jacqueline DeMarco, a freelance writer specializing in personal finance content. “Driving can be stressful, but it’s a lot less stressful without passengers in the car. You can even listen to podcasts or audiobooks to make it feel like less of a chore.”

Approximate earnings: $18 an hour

Grocery shopping

Grocery delivery services also need people who can shop for items before they’re delivered. Once you sign up and choose a nearby supermarket, customer orders will pop up on your phone. Efficient shoppers who can quickly navigate local stores are making extra money by filling up shopping carts—and you could, too.

“Enjoy the free air conditioning while you fulfill grocery orders,” DeMarco says.

You can even take care of your own grocery needs once your customer orders are fulfilled. You may be less tempted to order expensive takeout if you’re already in a supermarket.

Approximate earnings: $16 an hour

Tour guide

If you love your area and have an engaging personality, become a local tour guide.

Being a tour guide can be a great way to meet new people and show them a city or neighborhood you’re passionate about—all while making extra money. You might need to pass a test to work for certain organizations, and many tours use a pay-what-you-like model so the income can be inconsistent. But it’s a side hustle with growth potential, DeMarco says.

“You can learn the ropes working for a tour guide company or app, then eventually take that knowledge and start your own tour guide business,” she says. “That way, you don’t have to share the profits.”

Approximate earnings: $19 an hour

Virtual assistant

Virtual assistants aren’t algorithms or chatbots—they’re real people. Virtual assistants can work from almost anywhere in the world as they perform digital tasks like scheduling, fielding emails, and even managing social media for companies or individuals.

“It’s an excellent option for people who have administrative and organizational skills, as well as the ability to work independently,” Kline says.

Approximate earnings: $24 an hour

Babysitting

If you’re trustworthy, responsible, and enjoy working with kids, babysitting is a great opportunity. And once you start establishing solid relationships with parents, it can evolve into a regular gig that provides a stable income. You can list your services on online platforms catering to babysitters.

When DeMarco was a babysitter, she also worked on freelance writing assignments while the kids slept, which helped her to maximize her side income opportunities. “If you love kids, it’s a fun way to earn extra cash,” she says.

Approximate earnings: $18 an hour

“To find a side hustle, you should think about your existing skills and interests to narrow down what kind of opportunity you’re looking for.”

Randa Kriss, NerdWallet

Pet sitting

Are fur babies more your thing? Countless pet sitting opportunities exist—especially now that more people have returned to on-site work since the pandemic pet adoption boom. Multiple apps and sites allow you to list your pet sitting services. Just make sure you emphasize any experience you have as a pet sitter or a pet owner.

Approximate earnings: $16 an hour

House sitting

Many homeowners prefer to have someone stay over or regularly check in on their property (and also maybe look after their pets). House sitters not only get paid but often have full access to the home’s amenities, which might even include a pool or home theater.

“A lot of my babysitting clients would ask me to house sit or pet sit when they were out of town,” DeMarco says. “The best part about side hustles like this is you only have to say yes to a job when it works for your schedule.”

Approximate earnings: $17 an hour

Studies and focus groups

Research companies always need focus group participants. Whether they meet remotely or in person, these groups may give feedback on new products or provide insights that help organizations develop new services.

“Participating in focus groups and studies can be an interesting way to make extra money,” says Kline. “It is a great option for people who have flexible schedules, as it does require some time commitment and availability.”

Approximate earnings: $27 an hour

Translation work

Are you fluent in multiple languages? If so, you can put that skill to work. Translation duties can include working with marketing copy or medical and legal documents, so additional expertise may be necessary. And certain languages may offer more opportunities—and more money—than others, so research apps and online job boards to gauge the demand for your specific language skills.

Approximate earnings: $28 an hour

Graphic design

You can start a side hustle creating logos, visual assets for social media, or custom stickers for events or companies if you have the skills—or the willingness to learn. Creating designs for a friend or family member at a discount rate and posting them to your online portfolio is one way to gain experience and attract more—and higher-paying—clients.

“Graphic design can be a great side hustle for people who have an eye for design,” Kline says. “It is also a relatively easy and low-cost way to get started.”

Approximate earnings: $27 an hour

DIY for hire

Can you install a light fixture, assemble furniture, shovel snow, or paint a room? You can get paid for those tasks by signing up as a service provider on any freelance labor marketplace or app.

Approximate earnings: Varies depending on the job

Data entry

Data entry can be repetitive work, but the advantages extend beyond the ability to do it from home. Tasks can range from transcribing audio for a documentary filmmaker to inputting a company’s financial records on a spreadsheet. And the work is easy to find, as many job sites list part-time data entry roles.

“Data entry jobs typically require minimal training and can be done on a flexible schedule,” Kline says.

Approximate earnings: $19 an hour

Tutoring

Tutoring can be a flexible side hustle, too. You can work with students remotely or in person—from elementary school kids who need help after school to high school and college students who need weekend guidance to help them cram for exams.

“Tutoring can be a great way to make some extra money if you have the knowledge and skills,” Kline says. “It is also an excellent way to give back and help others.”

Approximate earnings: $20 an hour

Background acting

The people in the background of your favorite movies and TV shows actually get paid. And you don’t need to live in Los Angeles or New York City to find those roles. Production companies and university film students often post online ads for background acting opportunities across major U.S. cities. The time commitment will likely vary, but the extra money—and on-location craft service spreads—can make it worth your time.

“You can learn more about the film industry and meet interesting people,” DeMarco says.

Approximate earnings: $27 an hour

How can a side hustle complement a passive income strategy?

While side hustles and passive income ideas can both add income to your bottom line, they aren’t the same thing. So, what is passive income?

Unlike a job or side hustle, passive income does not require much, if any, additional effort. Examples include stock dividend payments, property rental income, and book or music royalties.¹

Of course, no one will show up at your house and start handing you cash. Usually, a passive income stream will require some initial effort and an upfront cost to set up, but ideally, it requires minimal effort once the wheels are in motion. That initial effort or investment might mean that passive income streams won’t be as accessible as side hustles, at least not until a little later in life.

“Having both a side hustle and passive income can be incredibly powerful when it comes to building financial freedom,” Kline says. “For example, you could use the money from your side hustle to invest in stocks and bonds, which can generate dividend payments.” (Please consult your tax advisor with respect to information contained in this article and how it relates to you.)

Or you could use the money earned from a side hustle to eventually purchase a rental property, which can generate long-term passive income, Kline says.

“Ultimately, having both sources of income can help you achieve your financial goals faster,” he adds.

Most passive income streams could be considered a form of investment. But this includes much more than buying and selling stock in companies. Anything you purchase with the intent to make more money from could be considered an investment.

Consider these additional ideas for making extra money:

Dividend investing

“Dividend investing is a great way to earn passive income,” Kline says. “It involves purchasing stocks or bonds that pay out dividends, which could be a great source of income over time.”

You should do research or consult an investment professional to learn which companies offer the best mix of dividend payments versus risk. Most dividend-paying stocks pay out quarterly, though some may pay out more or less frequently. The amount paid will be a percentage of your holdings, likely in the low single digits.

Dividends can be a reliable source of income for retirement, and advocates of the Financial Independence, Retire Early (FIRE) strategy for early retirement often recommend investing in dividend-paying stocks.

“Having both a side hustle and passive income can be incredibly powerful when it comes to building financial freedom.”

Kelan Kline, financial blogger

Rental income

There are many different types of property you can buy in order to rent out, depending on what’s available in your area or what investments you’re willing to consider.

Consider these different types of rent-based passive income ideas:

Long-term home or apartment rental

Leasing out a home or apartment can be a reliable and significant source of passive income, but it’s also a very involved process. You’ll need to learn the rental regulations for your area and your obligations to your potential tenants. Unless you can afford to pay someone to manage the property, the upkeep may resemble a job of its own.

Short-term rentals

If you have a spare room or vacation property, you could list it on a short-term rental platform or app.

“It’s a relatively easy way to make money by renting out your unused space or investment property,” Kline says.

While this may not provide the same degree of reliable income as a long-term lease, it’s easier to get started. Plus, utilizing black-out dates means you still get to access your space when you want, while having the opportunity to make an income from it when you don’t.

Other rental spaces

A spare parking or storage space can also be a source of passive income, and several apps and services exist for listing them. Best of all, renting out a space you never use, like a garage spot, requires little effort to earn reliable passive income.

Rent out your car

You can even list your car on some auto rental apps to earn money. If you don’t mind the additional wear and tear on your car—or the idea of other folks driving it—this could be a good way to make your car work for you. Just be sure to check with your car insurance provider to see if you need to carry additional coverage before booking your first renter.

What can you do with your additional funds?

Wondering what to do with the extra cash you earn from implementing side hustle ideas and passive income ideas is a great problem to have. But what are your options? Sometimes, you’ll want to reinvest in a side hustle (like upgrading the ties in a car you use for ride-share driving) or in a passive income strategy (such as painting the walls of your rental property).

Often, you’ll need a safe place to store your money that will still give you a generous return so that it keeps growing until you know what to do with it. Here are some low-risk options that can deliver growth on your additional cash:

Savings accounts

Savings accounts can provide a safe place to put your extra cash as long as you’re depositing your funds at an FDIC-insured institution. The interest your deposits earn can also be a source of portfolio income, which can include interest, dividends, and capital gains on investments.

CDs

Choose your term, lock in your rate, and watch your CD grow

Discover Bank, Member FDIC

A CD, or certificate of deposit, is similar to a standard savings account but with one key difference: CDs tend to have higher interest rates, which means they can also provide portfolio income. As a tradeoff, you’re expected to leave the money in the account for a specific amount of time, and there’s often a fee for early withdrawal. It helps to know how CDs work to get the most out of them.

Money market accounts

Money market accounts are similar to CDs in that they offer greater returns in exchange for restrictions. You won’t need to wait multiple years to withdraw your funds from a money market account, but there likely will be a limit on how often you can withdraw funds, and you might need to maintain a minimum required balance amount.

Retirement accounts

Certain jobs will offer retirement accounts, like 401(k) plans, as a benefit of employment. Whether you have a 401(k) plan or not, you can open up an individual retirement account, known as an IRA—either a traditional IRA or a Roth IRA. The primary difference has to do with when you pay taxes on the money in the account. For a traditional IRA, you pay taxes when you withdraw funds from the account. For a Roth IRA, you pay taxes on the money as it’s put into the account. For either, you may have to pay a fee if you withdraw your money before retirement. Always check with your plan provider for specific rules and fees related to early withdrawals.

There are even more choices to make. For example, you might consider an IRA CD in addition to an IRA Savings Account. IRA CDs function just like other CDs but are intended to build up funds for after you’ve finished working. It could be worth speaking with a retirement planning professional to establish a personal saving strategy.

How can you benefit from side hustles and passive income?

Both side hustles and passive income can add financial comfort and confidence.

Has this tour through passive income and side hustle ideas inspired you to pursue additional income streams to boost your finances? Whether you start a side business or just pick up some gigs via an app, extra income sources paired with passive income streams can be a game-changer for your financial health.

Looking to maximize your financial health? Try using a financial checklist to see how you’re tracking against your financial goals.

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.

¹ The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates. For specific advice about your unique circumstances, you may wish to consult a qualified professional, at your expense.

Discover Bank does not sell non-deposit investment products (“NDIP”) or provide recommendations regarding NDIP. NDIP are NOT FDIC insured.

Source: discover.com

Apache is functioning normally

October 30, 2024 by Brett Tams

Could logging in to your computer from a deluxe treehouse off the coast of Belize be the future of work? Maybe. For many, “freelance” means flexibility, meaningful tasks, and better work-life balance.

Who doesn’t want to create their own hours, love what they do, and work from wherever they want? Freelancing can provide all of that—but that freedom can quickly vanish if you don’t know how to manage finances as a freelancer.

“A lot of the time, you don’t know about these expenses until you are in the trenches,” says Alyssa Goulet, a freelance copywriter. “And that can wreak havoc on your financial situation.”

Some workers may choose to work in a freelance capacity hoping to increase their savings and their feelings of self-sufficiency. But for all its virtues, the cost of going freelance can carry some serious sticker shock.

Most people who freelance for the first time don’t realize that everything—from taxes to business software to retirement planning—is on them. Learning how to manage your finances as a freelancer early on will help set you up for success.

The key to budgeting as a freelancer is to plan for five expenses: taxes, business expenses such as your workspace and tools, health insurance, retirement savings, and general business costs.

1. Taxes for freelancers and the self-employed

First things first: Don’t try to be a hero. When determining how to budget and manage your taxes as a freelancer, you’ll want to consult a financial advisor or tax professional for guidance. A tax expert can help you determine what makes sense for your personal and professional situation and provide financial advice to help you build your freelance business.

For instance, just like regular employees, freelancers owe federal income taxes, as well as Social Security and Medicare taxes. When you’re employed by an organization, you and your employer each pay half of these taxes on your income, according to the IRS. But when you’re self-employed (earning more than $400 a year in net income), you’re expected to file and pay these taxes yourself, the IRS says. And if you think you’ll owe more than $1,000 in taxes for a given year, you may need to pay quarterly taxes.

That can feel like a heavy hit when you’re not used to planning for these costs. “If you’ve been on a salary, you don’t think about taxes really,” says Susan Lee, CFP^®, a tax preparer and founder of a website that provides tax information for freelancers. “You think about the take-home pay. With freelance, everything is take-home pay.”

Estimating what you’ll owe

Once you determine how often you’ll need to file taxes, Lee recommends doing a “dummy return,” which is an estimation of your annual self-employment income and expenses. You can come up with this number by looking at past assignments, industry standards, and future projections for your work—which Goulet also finds valuable.

Then, use that number to refine your estimate. “I determine the tax bracket I’m most likely to fall into by taking my projected monthly income and multiplying it by 12,” Goulet says. “If I experience a big income jump because of a new contract, I redo that calculation.”

Budgeting for what you’ll owe

After you estimate your income, you can determine how much money to set aside for your tax payments. Lee recommends saving around 25% of your income to pay your income tax and a self-employment tax (which funds your Medicare and Social Security). Once you subtract your business expenses from your freelance income, however, you may not need to pay that entire amount, according to Lee.

Adjust your estimates often—and always round up. “Let’s say, in one month, a freelancer determines she would owe $1,400 in tax. I’d put away $1,500,” Goulet says.

2. Business expenses for freelancers: Get a handle on two big deductions

For freelancers, tax deductions can yield big savings—if you know where to look for them. From the mileage you log between appointments to supplies for your home office to fees for coworking spaces, many freelance business expenses may be deductible, according to Lee.

The costs of freelancing vary from person to person. Some freelancers are happy to work from their kitchen tables, while others require a sophisticated (read: expensive) setup. Your freelance expenses will also change as you add new tools to your business arsenal.

Here are two budget categories you’ll need to account for as a freelancer:

Renting or furnishing your workspace

Joining a coworking space can help you establish the camaraderie you might miss when working at home alone. Yet these workspaces may charge membership dues, ranging from $20 for a day pass to hundreds of dollars per month for a dedicated desk or private office—something to consider when you’re calculating the cost of freelancing.

Coworking spaces may be all the rage, but you can still rent a traditional office space for several hundred dollars a month or more. However, this fee usually doesn’t include networking events or other membership perks like food and drink.

If you want to avoid office rent or dues but don’t want the kitchen table to pull double duty as your workspace, you might convert another room in your home into an office. When planning a home office on a budget, all it takes is a little creativity and know-how to create a functional, productive workspace.

Amy Hardison, a freelance copywriter and content strategist, retrofitted part of her house into a simple office. “I got a standing desk, a keyboard, one of those adjustable stands for my computer, and a squishy mat to stand on so my feet don’t hurt,” Hardison says.

Start with the absolute necessities. When Hardison launched her freelance career, she purchased a laptop for $299 and worked out of a coworking space—using its office supplies before creating her own workspace at home.

Going digital: freelancing business tools

There are a range of digital tools, including business and accounting software, that can assist with the majority of your business functions. These digital tools for freelancers can save you valuable time, which you can then invest back into growing and marketing your business.

The right business software can also help you avoid financial lapses as you grapple with how to manage finances as a freelancer. Hardison’s freelance business had ramped up to a point where a manual process was costing her money, so using invoicing software became a no-brainer.

“I was sending people attached document invoices for a while and keeping track of them in a spreadsheet,” Hardison says. “And then I lost a few of them, and I just thought, ‘Oh, my God, I can’t be losing things. This is my income!’”

You might use digital business and software tools to help manage scheduling, web hosting, accounting, audio/video conferences, and other business operations. When you’re determining how to budget as a freelancer, remember that the costs for these services depend largely on your needs.

For instance, several invoicing platforms offer options for as low as $9 per month, though the cost increases the more clients you add to your account. Accounting services also scale up based on the features you want and how many clients you’re tracking, though you can find reputable platforms that cost as little as $5 per month.

If you sign up for a business or accounting software platform, start with the “freemium” version, where the first tier of service is always free, Hardison says. Once you have enough clients to warrant the expense, upgrade to the paid level with the lowest cost. Gradually adding services will keep your expenses proportionate to your income.

3. Health insurance for freelancers: Harness an inevitable cost

Saving for healthcare costs can be one of the biggest hurdles to self-employment and successfully learning how to manage finances as a freelancer. In 2024, the average monthly premium under the Affordable Care Act (ACA)—for those who do not receive discounts due to qualifying income—was $469 for a 40-year-old individual and $1,491 for families of four, according to Forbes.

“Buying insurance is really protecting against that catastrophic event that is not likely to happen. But if it does, it could throw everything else in your plan into a complete tailspin,” says Stephen Gunter, CFP^®, a financial advisor at a wealth management firm.

Speak with an insurance advisor who can help you determine which plans are best for your health needs—and your budget. An advisor may be willing to offer a free consultation so you can gather important information before making a financial commitment.

4. Retirement savings for the self-employed: Learn to “set it and forget it”

Part of learning how to budget as a freelancer is thinking long-term, which includes estimating retirement expenses. That may seem daunting when you’re navigating new business expenses, but saving for retirement is a big part of budgeting when you’re self-employed, Gunter says.

“It’s kind of the miracle of compound interest,” Gunter says. “The sooner we can get it invested, the sooner we can get it saving.”

His freelance money management tip? Set aside whatever you would have contributed to an employer’s 401(k) plan and put it on autopilot. One way to do this might be to set up an automatic transfer from your primary checking account to your savings or retirement account.

“So, if you would have put in 3% [of your income] each month, commit to saving that 3% on your own,” Gunter says. The Discover® IRA Certificate of Deposit (IRA CD) could be a good fit for helping you enjoy guaranteed returns in retirement by contributing after-tax (Roth IRA CD) or pre-tax (Traditional IRA CD) dollars from your income now.

Prioritize retirement savings every month, not just when you feel flush. “Saying, ‘I’ll save whatever is left over’ isn’t a savings plan because whatever is left over at the end of the month is usually zero,” Gunter says.

5. General business expenses: Update your rates to cover them

With time, you’ll likely find that one of the best financial tips for freelancers is to build your costs into what you charge. “As I’ve discovered more business expenses, I definitely take those into account as I’m determining what my rates are,” Goulet says.

She notes that freelancers sometimes feel guilty for building business costs into their rates, especially when they’re worried about the fees they charge to begin with. But working these costs into your rates is essential to sustainable money management—and building a thriving freelance career.

Your expenses will change over time, so reevaluate the rates you charge annually. It’s also wise to do quarterly and yearly check-ins to assess your income and costs and see if there are any processes you can automate to save time and money.

Knowing how to manage finances as a freelancer is the key to a successful career

When you understand how to manage finances as a freelancer—effectively accounting for the costs of being self-employed—you can build the foundation of a long (and, with luck, lucrative) freelance career. From planning for taxes to saving for retirement, smart money management can provide you with much-needed financial stability and peace of mind if and when you decide to strike out on your own.

“There are many hats you have to wear and expenses you have to take on,” Goulet says. “But for that, you’re gaining a lot of opportunity and flexibility in your life.”

Working as a freelancer has its benefits, but it also means your pay can fluctuate from month to month. If you want to be even more prepared for freelance money management, then find out how to make a budget when you have an irregular income.

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.

The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. Please consult your tax advisor with respect to information contained in this article and how it relates to you.

Source: discover.com

Apache is functioning normally

September 22, 2024 by Brett Tams

Whether you’re a dedicated DIYer or prefer to lean on professional guidance, the truth is clear: smart financial planning can save you a lot of money over time.

Below, I’ll share some recent examples of tactical planning moves I participated in, including how much money was saved.

COVID Panic

In March 2020, you could be forgiven for thinking: “the world is ending, and I want to sell everything.”

But with proper perspective and an investment policy statement – both hallmarks of sound financial planning – many investors stayed the course.

They rode the stock market down more than 30% from peak to trough. Ouch. Nevertheless, they rebalanced along the way, selling stable assets (like bonds and money market) to buy stocks. This is not natural behavior – in fact, it’s the opposite of natural (“run from the threat” not “run toward the threat”). It’s learned behavior through experience and education.

In the end, while others made portfolio mistakes that cost them 10%, 20%, or more – permanent impairment of capital that can never be recovered – the intelligent investor has a better portfolio than if the COVID crash hadn’t occurred.

What’s the value of a 10% mistake on $1M?

Bring Me a Higher Yield

A friend-of-the-blog recently sold his successful small business for ~$10M or so. Not your everyday event, to be certain. But it’s more common than I realized.

We sat down to spitball some ideas, and my honest advice to him was:

Put together a financial plan, which details future planned inflows and outflows of money. This would include some well-deserved near-term spending!
Pick an asset allocation that corresponds with that plan.
Then, dollar cost averages the money into that asset allocation (e.g. 4 large tranches of investment over 12 months, or something similar)

The problem: the idea of investing millions into the stock market concerned him. I believe good investing education can help this problem, but that education doesn’t occur overnight.

As we discussed next steps, I asked him, “Where is the money right now?”

The answer? In a large US bank savings account, earning 0.05% interest per year. That’s $5000 in annual interest on a $10M deposit.

So while we continued are long-term conversation about investing in the stock market, I gave him some vital near-term advice: seek out a higher yield via a brokerage money market fund.

In the ~18 months since I gave him that advice, his average yield has been ~4.5 – 5.0%. That’s ~$475,000 in interest on a $10M deposit.

Yes – a simple tip to be sure. But sometimes financial planning is all about identifying the simple fixed in your financial ecosystem that will provide $475,000 per year instead of $5,000.

He bought my coffee that day. Don’t tell Suze Orman.

The Car Loan

One of my clients bought a new car a few months ago and came to me with a simple question:

“Should I take advantage of the 0% financing they’re offering me?”

$40,000 cash out of pocket, or a $40,000 loan with zero interest?

The math is simple:

If she takes the loan, she can keep her $40,000 in a high-yield account (such as our previously mentioned money market account) and earn ~$1500 – $2000 per year in interest. There’s no downside. There’s no loan interest accruing against her.

$2000 a year isn’t life-changing money. But it’s easy money. Small, easy percentage points can move the needle over long periods of time.

Sneak Through the Backdoor

Another client of mine came to me as follows:

Early 30’s couple
High earners (total income ~$350,000 per year)
Using 401(k) accounts wisely, putting lots of extra money into a Joint Taxable brokerage account

I asked them if they’d looked into saving money in an IRA…

“Yep, we looked into it, but we earn too much money.”

They were partially correct. They do earn too much for “normal” IRA contributions, but they’re the perfect candidates for backdoor Roth IRA contributions.

I think we can conservatively calculate that backdoor Roth contributions will earn this couple an extra $100,000+ over the next 30 years.

Which House?

Another client lives in the greater Washington D.C. area and, with her growing family, faces an interesting question?

Where should we buy our forever home?

Their three options – Washington D.C. itself, Maryland, or Virginia – each come with their own financial pros and cons. We helped her weigh the following:

The cost of the homes themselves (e.g. how far a dollar goes)
The long-term cost of property and school taxes
The state tax benefits of home ownership
The impact of state income taxes on their earnings over the coming decades
The impact of state capital gains taxes on their long-term investing

Of course, this family must pick a home that’s right for their lifestyle. Finances come second.

But the maximum vs. minimum we calculated puts their range of possible at a net present value over $500,000. In other words, “House A” in the most expensive locality would cost them $500,000 more than that same house in the least costly locality, as measured in today’s dollars, over the next 30 years.

Then, as always, we should ask how our lifestyle and life plan might change with an extra $500,000?

The Value of a Basis Point

Portfolio reviews are vital.

If an expert looks at your investments and says, “You can accomplish the same asset allocation as you already are but could save 20, 30, or 50 basis points if you do it this way.” …what’s the value of that recommendation?

FYI: A basis point equals 0.01%. So, 50 basis points equals 0.50%

Smart, simple investing strategies don’t need to be overly expensive. While professional financial planners do need to charge for their time and expertise, they can and should also save their clients money by keeping investing costs low.

What’s a basis point worth?

Imagine a simple scenario. An average investor might invest for 35 years, socking away $10,000 per year and achieving a long-term average return of 8.00% per year. This investor’s final portfolio would be worth $1.86M. And in this case, each extra basis point of expenses along the way decreases the final portfolio value by $4500.

11 basis points adds up to $50,000.

The lesson is simple: keep fees low where you can, and make sure you’re getting value above and beyond the basis points you are paying.

What’s a “Cash Balance Plan?”

Finanical planning is a deep subject area, with many nooks and crannies I haven’t even heard of yet. One such example occurred this year, when my colleagues recommended a “cash balance plan” to one of my clients.

He’s a successful solopreneur who last year grossed about $700,000 in income. A lot of those dollars were taxed at the highest possible levels. His effective tax rate was north of 40%.

A cash balance plan is a defined benefit retirement account (whereas a 401(k) is a defined contribution account). In other words, it is like a self-funded pension.

Cash balance plans are especially beneficial when all of the following are true:

Solo business owners, or with a very small staff.
Business owners with high incomes who would benefit from putting away more tax-deferred dollars.
Business owners who are higher in age (as you’ll see below, the annual contribution limits are very high for older business owners).

This client can contribute about $200,000 into his cash balance plan this year, saving ~$80,000 on his 2024 tax bill. Those savings are likely to increase every year between now and his retirement.

Of course, he will eventually have to pay taxes on those dollars when he withdraws them in retirement. But in the meantime, he benefits from tax-free growth and, more importantly, from the flexible and planned nature of retirement withdrawals; we will help him plan those withdrawals at a much lower than ~40% tax rate.

Ugly Annuities

I dove deeply on annuities in episode 86 of The Best Interest podcast.

In short, the vast majority of annuities are:

Vastly over-costed.
Disappointing in terms of return on investment.

For that reason, 99% of us are best off never touching annuities in the first place. But what if you’ve already bought an annuity – what should you do then? As always, an essential part of financial planning is to “let the numbers be your guide.”

Annuities typically have “surrender fees,” which charge the owner an extra fee to exit the contract. These fees range up to 10% of the total annuity amount (e.g. $100,000 on a $1M annuity), and typically decay in size as the annuity matures. It’s common to see, for example, an 8% surrender charge in Year 1 of the annuity decay to zero surrender charge after Year 10.

Again, I have a client example. I’m working with an gentlemen who owned multiple annuities at various maturity level. We analyzed each one and showed him the potential upsides and downsides of dissolving those annuities, paying surrender fees, and then investing the proceeds into a moderate investment portfolio.

Together, we created a multi-year schedule to flip his portfolio to the light side of the force.

In the long run – say, over the next 20 years – I can confidently say he’ll save 1.5% per year on fees. And I can conservatively predict his new allocation will outperform the annuities by 3% per year (up to 5-6% per year if I’m being less conservative).

On his $750,000 portfolio over those 20 years, my conservative assumptions above lead to an extra $1.3M in compounding in his pocket.

The Power of Financial Planning

Smart financial planning is not about outperforming the stock market. Instead, it’s about identifying places in your personal financial ecosystem where you can and should be saving money, pay less taxes, earning better returns, reallocating assets, pay fewer fees, taking advantage of special accounts, etc. etc.

It’s about knowing all the rules of the game, and then playing it effectively. This article showed you just a few examples, including:

Avoiding 6- or 7-figure mistakes when the stock market panics
Earning simple higher yields on large sums of money. 3% on a million bucks is $30,000 per year!
Backdoor Roth contributions to earn someone an extra $100,000+ over 30 years
Optimizing a home purchase to the tune of $500,000 over 30 years
Keep investing fees low, or saving $4500 for every 0.01%
Utilizing complex tools, like a cash balance plan, to save 6- or 7-figures in lifetime taxes
Detangling ugly annuities, resulting in an extra $1M+ over 20 years

These are just a few of many examples, and none of them involved picking the winning stocks.

The real value of financial planning lies elsewhere.

Thank you for reading! If you enjoyed this article, join 8500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week. You can read past newsletters before signing up.

-Jesse

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Source: bestinterest.blog

Apache is functioning normally

June 12, 2024 by Brett Tams

I’m now 30 months into my new career, and I’m loving every single day.

As a lifelong learner, I find the nuanced topics of financial planning and investment management to be a limitless sandbox, or perhaps more like an underground cave system. Where’s the bottom?! Nobody knows!

Despite that complexity, my colleagues and I help clients with many common issues that are not the strict domain of experts. These are topics you don’t need CFPs, CPAs, or attorneys to help you with. And that fact – that even experts focus on getting the basics correct – is an important lesson.

Let’s dive into some examples.

Cash Flow Management

Cash flow management is the single biggest financial fundamental that most people overlook. I see examples of this daily, both good and bad.

I’ve seen people earning $600,000 and spending $625,000 yearly. They’re drowning (though usually unaware of it).

I’ve seen people earn $300,000 and spend $200,000, or earn $120,000 and spend $80,000. They are thriving. If you’re saving 20%+, you’re killing it. Great work.

Yes, it is so simple: Spend less than you earn and, ideally, measure it. Despite its simplicity, this idea is the foundation upon which the rest of our finances are built. Cash flow management is a vital part of every financial planning conversation.

Portfolio Complexity

Prospective clients or new clients typically prioritize portfolio reconstruction. I get to see the peculiar, the zany, the intriguing…somebody call P.T. Barnum!

The most common theme, though, is that many outside portfolios have come to me far more complex than they needed to be.

The most frequent complexity is to see 4 or 8 or 15 mutual funds in a single portfolio that are performing the same exact role. Who needs 15 mutual funds that are all 60% stocks, 40% bonds, and actively managed? The answer, of course, is nobody. But why, then? Why do investors get in this situation in the first place?

The reason is what I call “flavor of the month.”

With about 97% accuracy, I can tell these portfolios were built by a financial advisor who was financially incentivized to buy specific funds for their clients. The “mothership” will tell such advisors, “Our NBNHX mutual fund is undercapitalized. If you put your clients in NBNHX this quarter, we’ll double your commission on it.”

That’s a flavor of the month. Not for the client, mind you. But for the advisor. It’s a conflict of interest, for sure, but not all advisors are required to act as fiduciaries. We call on Uncle Charlie to remind us, “Show me the incentives, I’ll show you the outcomes.” Next thing you know, NBBHX has entered the portfolio.

The portfolio fills up with these various flavors of the month until – voila! – you have a Baskin Robbins. But despite the “flavors” having different ticker symbols, they all taste the same. Imagine if Baskin Robbins sold 31 flavors of vanilla! That’s what these portfolios look like. “Could I get a scoop of vanilla, a scoop of French Vanilla, and one of Vanilla Bean? Sprinkles? Never…”

Instead, we should make specific investment choices to answer specific portfolio problems—in layman’s terms, put the “right tools for the jobs” into your portfolio.

Each “job” might require its own specialty “tool.” We each have many tools in our garages and toolboxes. There’s nothing wrong with having multiple funds in a portfolio. But you don’t want or need redundant assets, just like a homeowner doesn’t need nine shovels.

You should be able to point to each fund or asset in your portfolio and describe the unique reason it’s there or the specific portfolio problem the asset is solving.

It’s hard to find a picture that combines “ice cream” and “tools,” so I asked A.I. to help me out. I’ve seen plenty of weird A.I. images at this point, but it’s still disorienting to see such real-looking objects (that ice cream isn’t real?!) juxtaposed with a computer’s misguided interpretations (what kind of dental torture device is that in the lower right? and why do the screwdrivers all have wooden popsicle sticks?).

Too Much Cash

Nobody should complain about 5% risk-free rates. However, cash is not a long-term investing strategy. Risk-free rates cannot, and should not, outperform inflation over the long run. You need to take some risk.

While cash is an important buffer to ensure short-term liquidity and an emergency fund safety net, your long-term assets should be in a risk-bearing, higher-growth asset class.

Stocks and bonds are wonderful.

Further reading: How Much Time Does It Take for Stocks to Outperform Bonds?

Goal Setting

Whether you realize it or not, your financial plan has specific branches and pitstops and end-points. My financial plan does too. But mine are much different than yours.

The reason is because each of those branches and pitstops and end-points are related to specific goals. My goals for my plan, your goals for your plan.

You don’t need a professional’s intervention to ask yourself, “What are our financial goals? What do we want life to look like, and by when, and how much might that particular life cost us?”

Consolidation

A common financial stress I hear rhymes with, “We have money all over the place. Too many accounts, too many statements, we need help!”

There’s not always a financial impact from consolidation (though sometimes it will save you annual or monthly account charges). But a significant mental burden lifts when you go from 24 disparate accounts down to 5.

Scary Stuff

People out there have scary stuff in their financial lives. The more stones I overturn, the more interesting scenarios I find. Some examples include:

Keeping large amounts of credit card debt to “improve our credit scores.” Credit scores don’t work that way.
Saving large sums ($25,000+ per year) while carrying huge credit card debt ($50,000+). Bad priorities. No investment is going to outperform paying down a 25% debt.
Tapping into a 401(k) prematurely (though quite intentionally) without awareness of the extremely stiff penalty. There’s a 10% early withdrawal penalty plus your marginal Federal tax rate (22% to 37% for most of you) plus your marginal state tax rate (6-8% here in NY). For hire earners, it sums to north of 50%. That $50,000 withdrawal? You keep $24,000 of it. The rest goes to the IRS.
Unrealistic spending plans. Both irrationally optimistic and irrationally pessimistic. Two families each want to spend $100,000 a year throughout their retirement. The first family has a $500,000 nest egg, which works out to a 20% withdrawal rate. The 4% rule is squealing. The second family has $15 million, or a 0.67% withdrawal rate. They are crippled with anxiety over running out of money. Neither family is living in reality.
No communication. Family finances are a deeply personal topic. There are many ways to skin the cat. But there aren’t infinite ways to skin a cat. Some methods are plain stupid. It shouldn’t take a meeting with a CFP for one spouse to tell the other spouse they still have $120,000 of student loans. Communication, communication, communication.

Ok, you spelunkers. It’s fun to dive deep into the financial planning cave, where the Social Security salamanders and the Roth conversion crayfish lurk. But the professionals care deeply about the “surface-level” stuff too, and it’s perhaps more important to get those simple ideas right.

Thank you for reading! If you enjoyed this article, join 8000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.

-Jesse

Want to learn more about The Best Interest’s back story? Read here.

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Source: bestinterest.blog

Apache is functioning normally

December 8, 2023 by Brett Tams

As many college students will attest, regularly buying food on campus is not only expensive, but often unhealthy. Buying your lunch for 10 dollars a day at the fast food restaurants, pizza joints, and coffee shops on campus can really add up, and most have limited healthy menu options. Taking the time to plan out your lunches and pack healthy meals for college students can make a huge difference in your energy levels throughout the day. Best of all, there are easy meals for college students that you can whip up on a budget.

The following meal plan shows how to eat on a college budget and offers healthy lunch recipes and easy meals for college students. The guide features tips from Jacqueline de Grave, a former student and college athlete who is passionate about cooking and eating well on a budget, and it’s also been reviewed by Kathryn Alp, a registered dietitian.

Monday

Rice and Beans

How to eat on a college budget starts with this quick and easy meal that you can make in a big batch a night or two in advance. It’s just what you’re looking for on a busy week with back-to-back tests and papers. Choose brown rice to hike up your fiber intake and add all sorts of veggies like corn, avocado, tomatoes and peppers for even more nutrition and flavor. Black beans and kidney beans work well, but you can also try other varieties like navy, white or chickpeas. Bean dishes can be perfect healthy meals for college students—and they can be done on a college budget.

Tuesday

Super Salad

It’s time to revamp your tired bowl of greens by topping it with tasty sources of protein and fiber. In addition to your favorite fruits or vegetables, try adding chickpeas, chicken breast, canned tuna or a sliced hard-boiled egg to keep you full throughout the day as you go from class to class. Hemp hearts are another great source of protein that are delicious sprinkled on top of salads. You may even be able to throw one of these together at your cafeteria’s salad bars when you’re on the hunt for easy meals for college students.

One of de Grave’s creations is a super simple orzo pasta salad with ground turkey, veggies, and feta cheese.

“Salads don’t have to be boring,” de Grave says. “I love to have fun mixing up ingredients that vary from pasta salads, chickpea or bean salads, to chicken salad sandwiches or chicken salad on a bed of greens. As long as you are willing to get creative with your ingredients, salads can take on many shapes and flavors and be perfect for light snacks or heartier meals that are easy to carry around.”

Wednesday

Pita Pockets

Sounds like the perfect budget meal to accompany a marathon study session, right? You can also put it on your list of healthy meals for college students. Variations include marinated tofu for vegetarians or sliced chicken breast or pork chop for meat eaters. Stuff the pita with bean sprouts, cucumbers, tomatoes, onions, avocado, and Greek yogurt and voila: You’ve got a quick, easy lunch that’s cheaper and healthier than an sandwich or burger at any campus fast food joint. Go ahead and get creative with your fillings.

“I sometimes replace the pita with romaine lettuce,” de Grave says. “Topping it with veggies, chicken, ground turkey, or chicken and homemade dressings is a super simple way to throw together a quick and affordable meal.”

Thursday

Egg Salad and Tuna Sandwich

How to eat on a college budget? Look no further than this mashup of two classic (and inexpensive) sandwich toppers: egg salad and tuna. You can splurge on your favorite veggie toppings. Use low-fat mayonnaise or Greek yogurt and hearty whole grain bread to make this an even healthier option.

“Carbs provide us with the only source of fuel for our brains,” Alp says. “If you eat enough high-quality carbs like whole grains, fruits and vegetables—that’s going to be your brain food,” she adds.

Friday

DIY Fresh Spring Rolls

These are a little bit more time consuming to prepare, but totally worth it if you’re looking for healthy meals for college students. Simply roll up vegetables and your favorite protein in rice paper, and serve with your favorite dipping sauce. You can use any filling you like including chicken breasts, avocado, or cherry tomatoes. Tofu is a great alternative because it can be cheaper than meat and can absorb any flavor, making it very versatile.

Daily Snacks

When learning how to eat on a college budget, it’s important to curb your hunger with healthy snacks throughout the day. For a well-balanced snack, Alp recommends including a food high in protein or fiber combined with carbs from fruits or vegetables. Need a few ideas to get you going? Get started with these:

Healthy Granola Cookies

Granola-based cookies can be tailored to all taste buds. Make them sweet by adding cacao nibs and plenty of dried fruit like cranberries, blueberries, and raisins, or opt for higher protein with peanut butter, coconut flakes, slivered almonds and pumpkin seeds. Buying the dried fruit, nuts and seeds at your nearest bulk store can make them more affordable.

Overnight Oats

Make this delicious and inexpensive snack in a mason jar and leave it in your fridge overnight. You can get creative with this one and add anything from cocoa to pumpkin puree to fresh fruit and peanut butter.

Homemade White Bean Dip

Make this dip in a big batch in advance and store it in sealed containers for up to three days. Serve with pita, sliced veggies or crackers.

Ants on a Log

Nope, it’s not just for kids. This one is a fun, easy meal for college students. Top celery stalks with peanut butter and raisins the good old fashioned way or experiment with other toppings.

If eating on campus is your only option, keep these tips in mind for eating well in a pinch…

Alp says there is one key area where college students often slip up. “Drinking your calories. If I could tell everyone to quit juice, I would,” she says.

Alp suggests avoiding soda or juice because these drinks can contain added sugar that can slow you down over the course of the day. Even so-called “sports drinks” can pack a lot of sugar into just one bottle.

And when you need an extra caffeine kick, consider avoiding energy drinks or sweet coffee drinks. Not only do these drinks cost a pretty penny, many pre-made coffee drinks have more sugar than a can of soda.

“If students choose water over juice, extra sugar in their coffee, energy drinks or pop they would be cutting quite a lot of calories out of their diet,” Alp says.

Because sometimes it’s impossible to avoid the food court when you’re stuck on campus all day, Alp has some guidance for choosing the healthiest option from fast food restaurants.

“Choose tomato-based sauces over cream sauces. Choose the grilled option over the fried option. And choose the whole wheat option whenever possible,” she says.

Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

Source: discover.com

Apache is functioning normally

November 7, 2023 by Brett Tams

If you’re wondering if remote work might be right for you but don’t know where to start, make this guide your first step.

November 7, 2023

Remote work has progressed from a dream to a distinct possibility for many people, a shift fueled by pandemic-era necessity and technological breakthroughs. In fact, about one-third of U.S. workers who can work from home now do so all the time, according to the Pew Research Center.¹

That’s great news for job seekers who want to work remotely—the ranks of whom are still robust. What’s driving the continued interest in remote positions? For employees, the benefits can range from greater job satisfaction and significant financial savings to increased productivity and improved work-life balance. In fact, the same 2023 Pew survey cited above found that 56% of employees felt they could get more work done and better meet deadlines when working remotely.¹

“Working from home often allows you to plan your work around your life, rather than your life around your work,” says Kyle Elliott, a career and executive coach in Santa Barbara, California. “You’re able to create more flexible schedules that allow you to more easily attend to being a modern human—like running errands, going to appointments, or caring for a child or parent.”

Of course, what works for most might not necessarily be what’s ideal for you. So how do you determine if remote work might be a good fit? And what are work-from-home careers that pay well? Don’t worry—we’ve got insights to help you answer those questions and several more.

Is a work-from-home career right for you?

Real talk: Even if you’re hoping to find a new job, not every person thrives in a remote work environment. These questions can help you determine your potential fit—before you put a ton of energy into the job search.

What are your career interests and dreams?

Tech, finance, and professional and business services are the sectors in which remote work is most common, but don’t assume remote work is a no-go if your industry falls somewhere outside of those categories. It’s possible to find work-from-home careers in a staggering number of fields, including manufacturing and food services. The biggest fit factor isn’t industry but rather the type of work you want to do. Hands-on work is impossible to do remotely, for example, and spans across industries. Think: surgeon, construction foreman, hair stylist, airline pilot.

How would you rate your ability to manage yourself?

Though digital tools can make it easy to collaborate with coworkers from anywhere, working remotely may mean less management overseeing how you spend your time on tasks and fewer informal opportunities to ask clarifying questions. That’s why employers that allow remote work tend to look for self-starters who are well organized and proactive about seeking guidance if they get stuck on a task or want to stretch into new responsibilities.

“Work-from-home careers require significant dedication and self-motivation,” says Elliott. “You have to be honest with yourself and decide if you can be productive in an entirely remote job.”

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Do you have the right setup to work remotely?

Those with a spare room or already established home office will have an easier time operating in careers where you can work from home than someone sharing space with multiple roommates and a yelping dog. Also, consider that working from home may mean losing a lot of office-based infrastructure—like access to a printer, endless pens and paper clips, and free breakroom snacks. While some employers might offer a home office stipend or an initial flat sum to help you get your home office up and running, usually you’ll have to purchase extras like supplies and snacks on your own.

Tip: Many companies allow you to split your direct deposit between savings and checking accounts, providing an effortless way to save with each paycheck.

Can you draw a clear line between work and life?

Toni Frana, lead career expert at FlexJobs, points out that it’s crucial for remote workers to stay vigilant about the hours devoted to work versus their personal time—or else they risk letting their professional pursuits swallow up their day. “From a life balance perspective, remote employees must understand the importance of setting boundaries between work time and nonwork time because it can be easy to blur the lines when working from a home office,” says Frana.

Even with a calendar full of virtual meetings, some people prefer social interactions to take place in real life. In fact, feelings of loneliness and isolation are a notable drawback of careers you can do at home. If you’re more extroverted, staving off such loneliness might require seeking out more off-the-clock social opportunities.

7 work-from-home careers that pay well

(Salary estimates provided by Glassdoor as of September 2023)

Average annual salary: $57,099
How it’s growing: The overall field of advertising, promotions, and marketing managers is expected to grow 6% (faster than average) between 2022 and 2032, according to the U.S. Bureau of Labor Statistics. And with social media now a business necessity across industries, it’s fair to say that this niche represents a healthy slice of that projected growth.
What the gig involves: Social media marketers use platforms on behalf of companies to attract and engage with potential and current customers. The role can include everything from writing posts and responding to customer comments to cultivating an audience and analyzing social media metrics to determine a marketing campaign’s success and help shape future efforts.
Why it’s doable from home: Social media, by definition, takes place online.

Project Manager

Average annual salary: $96,460
How it’s growing: The U.S. Bureau of Labor Statistics estimates 6% job growth in the project management industry through 2032. Industry experts say the looming retirement of a sizable swath of current project managers means plenty of demand for fresh faces in the field.
What the gig involves: Project managers flex organizational and people skills to help teams execute initiatives smoothly and efficiently while ensuring projects stay on time and on budget. Though you can find project manager positions in almost any industry, the role is prevalent in project-intensive fields, such as IT, construction, energy, transportation, and health care.
Why it’s doable from home: Digital tools make remotely coordinating and managing teams easier than ever. Even in industries like construction—where much of the work is done on-site—technology can help to lessen the frequency of on-site visits.

Data Analyst

Average annual salary: $80,115
How it’s growing: The need for operations and research analysts (which includes data analysts) is expected to grow a stunning 23% from 2022 to 2032, according to the U.S. Bureau of Labor Statistics.
What the gig involves: As the volume and velocity of business data grow, companies need assistance making sense of it all. Data analysts help by collecting, cleaning, and interpreting data to answer questions and solve problems for organizations in a wide variety of industries.
Why it’s doable from home: Even in industries where data is related to on-site operations (say, manufacturing or retail), analyzing that data requires digital tools.

Virtual Assistant

Average annual salary: $44,540
How it’s growing: The job outlook for the overall field of secretaries and administrative assistants is expected to shrink by 10% between 2022 and 2032, according to the U.S. Bureau of Labor Statistics. However, demand for virtual assistants seems to be bucking that trend.
What the gig involves: From freelance virtual assistants who juggle multiple clients to full-time staff positions dedicated to assisting one executive, this role can take a lot of forms. But at its core, being a virtual assistant means helping companies or business leaders with office-related tasks—which might mean anything from scheduling meetings and coordinating work travel to proofreading presentations and managing social media accounts.
Why it’s doable from home: With everything from board meetings to team brainstorm sessions increasingly taking place online, digitally supporting such work can be seamless.

Web Developer

Average annual salary: $81,756
How it’s growing: Demand for web developers and digital designers is expected to grow 16% (much faster than average) between 2022 and 2032, according to the U.S. Bureau of Labor Statistics.
What the gig involves: Web developers create and maintain websites: Front-end developers focus more on the site’s visual design and navigation, while back-end developers focus more on coding and managing site access. (Full-stack web developers, as you might guess, span both front- and back-end responsibilities.) Day-to-day duties can vary considerably, depending on whether you’re building sites for multiple clients as part of an agency or working at a larger company. But typical responsibilities include designing user interfaces, writing and reviewing code (such as HTML or JavaScript), testing web applications, and posting site content.
Why it’s doable from home: The online nature of the work makes it an easy fit for working from home.

Sales Representative

Average annual salary: $93,041 (includes commissions).
How it’s growing: The U.S. Bureau of Labor Statistics projects 1% employment growth for sales representatives between 2022 and 2032, slightly below average compared to the expected 3% growth for the overall job market.
What the gig involves: Armed with a combo of strong interpersonal skills and deep product knowledge, sales representatives work to understand customers’ needs and then sell them solutions—which can include anything from complex tech products to baby bottles, depending on where they work. You might focus on wholesale, business-to-business, or consumer accounts, implementing day-to-day sales activities to achieve established sales targets.
Why it’s doable from home: Though some sales representative roles demand extensive travel and in-person client meetings, digitally native brands can be successfully handled from anywhere with a strong Wi-Fi connection and other digital tools.

IT Support Specialist

Average annual salary: $48,253
How it’s growing: Job growth for computer support specialists is expected to grow 5% between 2022 and 2032, according to the U.S. Bureau of Labor Statistics.
What the gig involves: IT support specialists troubleshoot common tech issues for end users, whether that means internal employees struggling to access a server or external customers who can’t get the company’s app to work properly. Robust knowledge of standard computer systems is a must, as is the ability to communicate clearly (and patiently!) with people across all levels of tech know-how. In addition to fielding help requests, IT support specialists may manage systems to keep them operating effectively and make recommendations to improve those systems.
Why it’s doable from home: The rise of remote work means there’s less need for in-office IT support staff. And specialized digital tools make it easy to effectively handle everything from customer ticket management to remotely accessing company devices.

How to Start Your Work-From-Home Career Search

Step 1: Tailor your job search terms.

While remote-only job boards and social media groups can be incredibly useful, hunting through the haystack of large, general job boards is worthwhile as well. Include search terms like “remote,” “virtual,” or “telecommuting” alongside job titles in your search queries (e.g., “remote IT support specialist”). On websites dedicated to job postings, for example, you can also search for the job title that interests you and list the location as “remote” to filter the findings. Note: Not all could-be-remote job openings will trumpet that fact in the job listing. Look for clues like “flexibility” and “work-life balance,” indicating that an employer may be open to remote or hybrid work models.

Step 2: Put the word out.

Even without decades of work experience under your belt, your network can be a powerful way to find your next great gig—but only if people know what you’re looking for. Don’t just say you’re open to new opportunities on your professional profile; adjust your settings to enable the “open to work remotely” feature. And if your job search comes up at networking events (whether that means an alum mixer at your college or an industry message board), don’t be shy about specifying that you’re looking for a remote role.

How to Get a Remote Job

1. Highlight your remote qualifications (even if you’ve never worked remotely).

If you have experience working remotely, you’ll want to state that clearly in your resume and cover letter. But even without such experience, you’ll want to show potential employers that you have the skills—such as self-direction, strong communication, and problem-solving—that align with remote work. Did you lead a big group project in college where everyone worked asynchronously? Or maybe you broke down larger deadlines into daily tasks in your last role? Do you have experience coordinating with team members spread out across geographies and time zones? Now is the time to highlight such skills. You might also want to add a technology section to your resume to specifically highlight your experience with digital collaboration tools and software.

Finding a quiet, tidy, and well-lit spot is a smart move for any virtual meeting, but when interviewing for a remote position, that backdrop can reassure potential employers that you have an environment conducive to remote work. It’s important to test any tech you might use in the interview (such as headsets and cameras) ahead of time. You could even ask a friend to join you for a brief video meeting to give feedback on your audio and lighting.

3. Get prepped to answer questions about remote work.

What interests you about a remote position? Why do you think you’re well suited for remote work if you don’t have remote experience? What do you think will be your biggest challenge in working remotely? Though career experts generally advise job hunters not to introduce the topic of remote work during an interview, you may be asked about it at some point. To avoid being put on the spot (or blurting out a cringe-worthy answer you’ll regret later), think through potential responses beforehand. Another thing to be ready for—negotiating your salary. Hint: Just because you’re asking to work remotely doesn’t mean you have to settle for less than you’re worth.

Ready, set, go! Start exploring careers you can do at home

There’s no time like the present to look for one of the work-from-home careers described above, especially given how dramatically attitudes about remote work have changed in recent years. If you’ve ever dreamed of cutting your commute time to zero minutes, consider this a sign to investigate the opportunities that await.

Landed that dream remote job you’ve been hoping for? Set up your direct deposit with a new Discover Cashback Debit account.

¹ “About a third of U.S. workers who can work from home now do so all the time.” Pew Research Center, Washington, D.C. (March 30, 2023) https://www.pewresearch.org/short-reads/2023/03/30/about-a-third-of-us-workers-who-can-work-from-home-do-so-all-the-time/

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

Source: discover.com

Apache is functioning normally

September 15, 2023 by Brett Tams

Whether you attend a public or private college—in your home state or another—costs are higher than they’ve ever been. In fact, college tuition costs have nearly tripled over the last 40 years, according to Bankrate.

“The cost of college has gotten completely out of control,” agrees Maggie Germano, a financial coach. And it’s not only tuition. “The cost of room and board, books, and other necessary expenses have been going up, too. This can end up putting students and graduates in lots of debt that may make it difficult for them to get ahead in life.”

That’s why earning money as a student in college can be so beneficial to your financial health, both for today and tomorrow. Not only is the money helpful, but it also gives you a chance to build a budget and manage your own finances—critical skills for being financially secure throughout life.

So, how to make money as a college student? The reality is that it can be difficult for students to earn money while keeping up with their studies. But by taking advantage of scholarship opportunities and choosing part-time jobs for students that fit with their schedule, undergrads can enter the next stage of life with a more stable fiscal foundation.

How can students help pay for college?

It’s never too early to begin planning for the cost of college. Even if your parents started a 529 college savings plan for you when you were young, you can look for additional opportunities to lighten the financial load.

The two most common ways to do that, Germano says, are scholarships and financial aid.

Scholarships and grants

“Students should take steps to apply for as many scholarships and grants as they can even before the start of their senior year of high school,” Germano says. “This will help lower the cost burden for them once they begin school.”

Students should speak with their high school guidance counselor to learn about available local, state, and national scholarship programs. Germano also suggests they take the initiative to research online, as new programs are constantly being created.

Financial aid and loans

Many colleges offer financial aid programs for students from lower socioeconomic backgrounds. While it’s important to speak to your university’s financial aid office directly, students should also consider filling out the FAFSA form, as many schools rely on it to assess eligibility for assistance. FAFSA stands for Free Application for Federal Student Aid, and by filling it out, students will learn which federal aid and loan programs they may qualify for.

Even with a scholarship and other types of aid, many students will still need to take out a student loan, Germano says.

Be cautious, though. “Most students take out student loans without understanding the terms or how much it will really cost over time,” she says. “Talk to your parents, guidance counselor, or other trusted adults about this process so that you’re going into it with as much understanding as possible.”

What bank accounts do students need?

Before applying for jobs, students should be sure they have a place to put their money. Germano suggests students open a checking account and a savings account so they can best manage their money in both the near and long term.

Rewards checking account

Opening a rewards checking account is a great place to start because it can provide cash-back benefits similar to credit cards—and offer the flexibility to make purchases online and with your debit card.

Earn cash back with your debit card

Discover Bank, Member FDIC

Just make sure your checking account features overdraft protection in case you accidentally overdraw your account.

High-yield savings account

Many students find it difficult to keep up with their bills, let alone put money away for savings. It’s important to make an effort, however, since any money deposited in a high-yield savings account can earn compound interest, potentially leading to significant growth over time.

You can also use different high-yield savings accounts to save for multiple savings goals, such as buying a car, paying off student loans, and building an emergency fund.

How can you find the best part-time jobs for students?

If you’re wondering how to make money as a student, a smart first step is to see what part-time jobs are available. The right part-time job can provide you with a reliable income without having to sacrifice time for studying and socializing. Check out these ideas for both on-campus and off-campus part-time jobs for students:

On-campus jobs

Finding a job on campus is a convenient option for how to make money as a college student. You won’t have to worry about commuting, and the workplace is designed to accommodate your student schedule.

In addition to searching around your campus, Germano recommends finding out if you qualify for the federal work-study program at your school, based on your FAFSA application.

To get your wheels turning, Germano suggests these on-campus job ideas:

Resident assistant
Administrative assistant for a department office
Campus bookstore associate
Campus café barista
Tour guide
Tutor
IT assistant
Mail room assistant
Research assistant
Dining hall worker

Off-campus jobs

Consider applying for a job off campus. Restaurants, theaters, and stores near campus are often open to hiring students, though these jobs may not be as accommodating as those on campus.

Germano recommends asking upperclassmen what the best part-time jobs for students are. They may point you in the right direction and could even be willing to give you a referral.

You can also look into remote part-time jobs for students that you can do from your dorm room.

What is a good part-time job for students online?

If you’re wondering how to earn money online for students or how to make money from home for students, you can check job boards for part-time remote work.

Translation work, being a digital assistant, and tutoring are some potential online jobs for students to earn money.

If you speak two or more languages, then translation work could be one of the first places to turn when looking for online part-time jobs from home for students. These roles often involve translating videos, podcasts, or documents—and, if you have knowledge in the medical or legal sphere, it can be more lucrative.

Digital assistants can provide a range of services, from social media management to responding to email or scheduling appointments. These jobs may require a certain level of availability, so be certain to discuss the expectations of this job so you know if you can balance the role with your classes and social life.

If there’s one or more subjects where you really excel, online tutoring could be a good way to make extra money without leaving your dorm. It can also be rewarding to help your fellow students find success.

Can side hustles help with earning money as a student?

If you can’t consistently work at a part-time job, consider more convenient ways to make money as a student—like a side hustle.

There are plenty of side hustles to choose from, including driving for a ride-share app, house sitting, and pet sitting.

Many modern side hustles can be managed through an app, offering a lot of flexibility. It means you can adjust your work schedule based on when you’re available, for example pulling back during finals week so you have time to study. It’s how to make money as a college student without having to take on too big a commitment.

How can college students manage their time between work and school?

It’s important to make sure your money-making ventures don’t interfere with your studies.

“Some students need to work in order to live and support themselves in school, so those students will have to work as much as will support them,” Germano says. “But for those who have more flexibility, try to be realistic about how much work you can take on without sacrificing your schooling and other responsibilities.”

She recommends reducing your work hours if your grades are being negatively affected. One tip: Try designating specific blocks of time for your academic tasks. With your work and school time clearly defined, you can then enjoy any free time you have to the fullest, without stressing about how you’ll get everything done.

Germano says it’s also important to set realistic goals. If anything, plan for a little more time than you think you might actually need to write an essay or study for a test. Finishing early will be more motivating than failing to accomplish a task in time.

You can also try different time management and finance apps. There are plenty of free apps out there that can help you organize your time and money.

Get ready for a fun, financially secure college experience

While keeping your finances in line and building a strong foundation for the future is essential, you should be enjoying this time of your life.

“Many students who have to work to put themselves through school can have a difficult time balancing work and school in a healthy, sustainable way,” Germano says. Finding time for fun and relaxation is critical and should be top of mind to avoid burnout and maintain positive mental health.

With these tips, you can find the way to make money as a college student that works best for you. Once the cash starts coming in, be sure you know how to budget as a college student and how to save money as a student. Earning extra money is only one part of money management for students. You also want to know that every dollar is being spent wisely.

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.

Discover Bank does not sell non-deposit investment products (“NDIP”) or provide recommendations regarding NDIP. NDIP are NOT FDIC insured.

Source: discover.com

Apache is functioning normally

September 9, 2023 by Brett Tams

For many people, college is the first time they’re truly in charge of their own finances. While it’s often a challenge, creating and maintaining a savings account for students is a foundational lesson for building healthy financial habits that last a lifetime.

And saving money as a student has its short-term, practical benefits, too.

“Life throws a lot of expenses our way that are hard to plan for—like when your car suddenly refuses to start when you’re running late for class,” says Jacqueline DeMarco, a freelance writer specializing in personal finance content. “That’s why building out a solid emergency fund is something that every college student should prioritize.”

So, how can you save money as a student in college? These savings tips can help give you some monetary breathing room and a financially secure start in adulthood.

Can you make your bank accounts work for you?

First things first: Make sure you have a good place to keep your savings. That means finding a bank that’s convenient and offers the features and benefits that work best for you.

DeMarco notes that students may feel limited to banks available on or near campus.

“If they aren’t happy with their on-campus bank options, college students may find that an online bank is a better fit for them,” DeMarco says. “Not only do online-only banks offer all of their services digitally, they also tend to have lower fees and offer higher interest rates than banks with expensive brick-and-mortar locations to pay for.”

Whichever bank you choose, DeMarco says there are two accounts every new student should strongly consider opening: a checking account and a savings account.

Setting up both a savings account and a checking account can be done online within a few hours at the bank of your choice.

How can students save money?

Once you’ve set up your checking and saving accounts, it’s time to take the next step toward financial responsibility. One of the best ways to save money for students is by setting up a budget.

How much should a college student spend per month? To determine that, DeMarco recommends subtracting your monthly expenses (essentials like food, utility bills, etc.) from your monthly income (whether it’s from a part-time job, student loans, or money from a parent). Doing this simple math will help reveal how much you can safely spend each month on fun stuff like new clothes or going to the movies—after you’ve put aside a portion for your savings, of course.

Looking to add more wiggle room to your budget? Try these money-saving tips for students:

Shop at consignment and thrift stores

Consignment and thrift stores offer previously owned clothes and other items at a discount. The primary differences are that thrift stores tend to be nonprofit organizations, accept more donations, and are generally less selective in what they choose to sell. Consignment stores are often more selective about the donations they accept, and they pass a portion of the sale to the person who donated—or consigned—the product.

DeMarco notes that consignment stores are not only a smart option for saving money—they’re also a way for students to make extra money by selling unwanted items.

Buy used textbooks

Textbooks can cost students hundreds of dollars if they’re new. Instead of paying full price, consider buying or renting used textbooks. “Many college bookstores offer used options, and online platforms often provide affordable alternatives,” DeMarco says.

You might also be able to recoup some of the money you spent once you’ve finished a class by reselling your textbooks to a used bookstore or an online vendor. “Sometimes I could even sell a book for more than I bought it,” DeMarco says, referencing her time as a student. Cha-ching!

Think about meal planning

So busy with classes and assignments that you find spending money at vending machines for on-the-go snacks easier than planning ahead? Stop, shop, and save. Set aside a few hours each weekend to prepare all of your meals for the week to come. Or, if you live in a dorm, hoard some extra items from the dining hall so you’re ready when those late-night study session cravings inevitably strike.

“Planning meals in advance gives students the chance to make a shopping list and stick to it,” DeMarco says. “As a bonus, having their meals planned will make it easier to avoid the temptation to dine out after a long day of classes.”

Explore free activities

Who says you need to splurge to have a good time? There are plenty of ways to have fun without spending money. Chances are, multiple free activities are happening on and around your campus on any given night. You can look up event calendars online or keep an eye out for announcements. Groups and clubs are always looking for participants and potential new members, so you can bet they’ll be happy to have you. (Plus, a lot of these events have free food.)

Ask for student discounts

It’s common for stores on and off campus to offer student discounts. To reap the benefits, always keep your student ID in your wallet, purse, or cellphone case so you can flash it and save some money.

“You’d be surprised how many retailers, restaurants, theaters, and entertainment venues offer discounts specifically for students,” says DeMarco, who relied on student discounts to help build her professional wardrobe as she neared graduation. “Plenty of major mall brands offer these discounts.”

Get a cheap coffee maker

Relying on caffeine to get through those late-night study sessions—or just to get moving each morning? Save money on java by buying a coffee maker and becoming your own barista. DeMarco says that a cheap or used French press is easy to use and could save you hundreds of dollars over the course of a year.

Rethink the car

It can be tempting to bring a car to college—whether for grocery runs or the occasional road trip. But the costs of gas, maintenance, and parking can add up quickly, DeMarco says. So leaving that set of wheels at home is another way for students to save money. Most college campuses are great for biking and walking. And many also provide shuttle buses and rides to essential off-campus places like grocery stores—as well as safe rides at night.

Track your savings

As you put these ways for students to save money into practice, DeMarco suggests tracking their positive impact on your budget. That way, you can see how your small saving techniques can add up over time. There are even money-saving apps for students you can download to measure your progress.

Where should college students keep their savings?

As you’re finding new ways to trim your budget, where should you put the money you’ve set aside? DeMarco says you’ve got a few options to consider:

Rewards checking account

While there are better places for long-term savings, rewards checking accounts are a valuable tool for college students as they begin to manage their own finances. Certain online checking accounts will provide cash back rewards based on how much you spend. For example, the Discover^® Cashback Debit Account provides a 1% cash back bonus¹ as well as overdraft protection if you overdraw your account.

Checking accounts are an ideal place to keep your spending money, funds for paying bills, and income earnings from part-time jobs or side hustles since they allow you to access the cash you need at any time.

High-yield savings account

Starting a high-yield savings account, like the Discover Online Savings Account, in college can make a dramatically positive impact on the rest of your financial life.

DeMarco recommends a high-yield savings account for any money that students may not immediately need but still want to keep available. “That way, their savings can earn interest, but they can access those funds if needed,” she says.

Call it a sunny day fund—online savings with no monthly fees

Discover Bank, Member FDIC

And putting aside a set amount of money each month into a high-yield savings account can start earning you compound interest. Even depositing a small amount of savings while you’re in college can add up over the years to make a sizable stash down the line.

CD

CDs, or certificates of deposit—especially those with a longer maturity term—can provide a higher return than a savings account. Use CDs for savings that you don’t expect to need over the CD’s term. The term length for CDs can vary widely. For example, Discover Certificate of Deposit terms range between three months and 10 years, with competitive annual percentage yields.

“If a student has a solid chunk of savings they know they won’t touch for a while, they may want to consider keeping their money safe in a CD, where it’s guaranteed to experience growth,” DeMarco suggests.

Retirement account

If you’re ready to start preparing for the more distant future (always a good idea), you can start by contributing money to an IRA, or individual retirement account. While some college students wait until they have a full-time job that offers a 401(k) plan to begin saving for retirement, the sooner you can get a head start, the better.

Discover offers both IRA CDs and IRA savings accounts.

Why not start saving while in college?

There’s really no better time to start saving than in college. To make your savings dreams a reality, set goals at the start of each semester and check your progress periodically. Maybe even reward yourself (nothing too extravagant, of course) for staying on track. Something as small as the occasional special meal or an activity that doesn’t blow your budget can be a fun way to celebrate those financial milestones.

Saving money can also create some amazing memories with the new friends you’ll be making. Ramen might seem dull, but challenging friends to see who can come up with the best recipe using cheap instant noodles can spice up the fun.

College can be a wonderful experience. And weaving these saving tips into that experience can help build the foundation for a comfortable and secure financial future. Just think: It could all start with a high-yield savings account.

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

¹ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), online sports betting and internet gambling transactions, and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal®, who also provide P2P payments) may not be eligible for cash back rewards. Apple Pay® is a trademark of Apple Inc. Venmo and PayPal are registered trademarks of PayPal, Inc. Samsung Pay is a registered trademark of Samsung Electronics Co., Ltd. Google, Google Pay, and Android are trademarks of Google LLC.

Source: discover.com

Apache is functioning normally

September 7, 2023 by Brett Tams

College is an exciting time: You’re surrounded by new people, new opportunities, and a chance to dive into the next chapter of your academic career. But this transition also comes with different financial realities—and the need to develop new skills around spending and saving money.

Along with navigating your new campus and sharpening your study skills, there’s another key lesson to learn: how to create a college student budget. When done right, a budget can help you limit debt, build some savings, and accomplish your goals. Need to make sure you have enough for textbooks, rent, food—and some left over for a little fun? Want to spend a semester abroad? Creating a college student budget can help with these goals and more.

Whatever financial issue is giving you trouble, Katie Waters, CFP®, founder of a financial planning firm, has tips for how to set yourself up for success. Here’s how to get started.

Assess your income and expenses

As you begin building your college student budget, you first need to figure out how much money you have coming in and how much you have going out. You can use anything from a simple spreadsheet to a budgeting app to track your income and expenses.

How should students pay for monthly expenses? Start by writing down all the sources of after-tax money you get each month, Waters says. That includes money from a part-time job, financial aid, stipends, grants, loans, or a monthly allowance from your parents.

Next, figure out how much you’re spending each month. Waters recommends looking back at three months’ worth of your expenses. To do that, refer to your debit and/or credit card statements, plus any record of money sent through payment apps.

You should account for every dollar you’ve spent, Waters says, separating expenses into common categories such as:

Cell phone
Food
Entertainment (movies, fun with friends, streaming services)
Clothing
Internet
Transportation (airfare, bus tickets, car insurance, gas)
Tuition
Room and board or rent
Textbooks and school supplies

The point is to add up everything, Waters says. “We want a line item for it all.”

If you’ve gotten this far and you already realize that your expenses weigh in heavier than your income, consider ways you could start giving your income a leg up. Check out these tips to help you make money as a college student.

Create your college student budget

Making and following a college student budget is the best way to ensure you have enough money to pay for the things you need while still having some money left over for the things you want. Here’s how to budget as a college student:

1. Create your spending categories.

Your budget should contain categories for all your major spending groups. (Refer to the list of expenses you created when assessing your expenses.) Then decide how much you must spend for each and assign a dollar amount or percentage to that category.

2. Choose a type of budget.

There are different budgeting styles, and Waters notes that one might fit your specific situation better than another. You could try the 50/30/20 rule, which allocates 50% of your money toward needs (food, textbooks, tuition); 30% toward wants (entertainment, clothing); and 20% toward savings.

You can also go with the envelope system, which involves setting aside a limited amount of money for each spending category. Once you hit the limit in a given category by running through money in its envelope—whether literal or digital—you can’t spend any more in that category until the next budget period begins.

3. Optimize your budget regularly.

Once you’ve set a budget, keep track of it. If you’re consistently under or over, see if there are areas where you can save more or spend less. As your needs change, so should your budget.

Checking with cash back and no monthly fees

Discover Bank, Member FDIC

Prioritize essential expenses

Whichever kind of college student budget you choose, make sure necessities such as your tuition payment (if you’re paying for school yourself) or things like bus fare to get to your part-time job are covered. To make that easier, Waters says you can find ways to reduce your expenses, such as:

Renting, borrowing, or buying used textbooks
Buying snacks in bulk or cooking meals that are large enough that you’ll have leftovers
Asking for student discounts when shopping in person or looking for online discounts
Opening a cash back checking account or using a cash back rewards credit card to earn rewards¹ for purchases you already make.

Focusing on what you must pay for first can help to lessen the debt you acquire, Waters says. Bonus: If you can do that, you’ll also reduce the amount of interest you’ll have to pay while in school or after you graduate.

Manage your fixed and variable expenses

Certain expenses, such as your cell phone or car insurance bill, typically stay the same every month. Those are fixed expenses. Variable expenses include costs that can change from month to month, like food, gas, or entertainment, depending on your behavior. Variable expenses can be tougher to budget for, but they can also provide more flexibility to your budget.

The envelope budget method can help you learn to budget more accurately for variable expenses when making a college student budget. For example, let’s say you spent $140 dining out in month one, $175 in month two, and $120 in month three. Take the average of the three—$145—and set that as your “dining out” monthly line item that you shouldn’t exceed.

“The biggest ‘don’t’ for college students is saying yes to everything,” according to Waters. Instead, it’s important to set limits. “Get to know your town and find ways to hang out that are free or low cost.”

Save for emergencies

College might not seem like a natural time to save money, especially if you’re not making much to begin with—but it can be done. And saving money will be a critical skill you can continue to use throughout your life.

Often, the easiest way to save is to make it automatic, Waters says. You can automate your savings by opening a savings account and setting up regular transfers from your checking to your savings account. You can choose how much is socked away based on a percentage of your income, as with the 50/30/20 rule, or you can set aside a chunk of your remaining balance at the end of each month.

It’s also important to try and build an emergency fund, even if it’s small, Waters says. An emergency fund is money you use for unexpected expenses—think paying to fix a flat tire, covering medical bills, or repairing a malfunctioning laptop. A good goal for the amount to save in an emergency fund is three to six months of your expenses. That might sound like a lot, but you can build your savings slowly over time.

Waters notes that a savings account or emergency fund is also a great place to stash cash you weren’t expecting to receive—like birthday money from Grandma. Think of it this way: If you save $25 a week, in just six months, you’ll have saved $600. This is also a great chance to learn how to invest as a college student. By keeping your savings or emergency fund money in a high-yield savings account, you can watch how your savings grows over time with interest.

Start building your financial foundation today

Once you’ve set a budget that you feel comfortable with, make sure to regularly check in with yourself about your spending. One trick that’s great for budgeting for college students is a financial checklist, which helps you look closely at your spending habits and whether your needs have changed. Earning more or less money, a change in your rent, or a tuition hike can make it necessary to reassess your budget and tweak as needed, Waters says.

College can be the perfect time to start your financial future off on the right foot. Things like building credit, saving for retirement, and creating a thriving savings account all come from making the right choices early—and regularly. Getting a handle on your finances in college with a college student budget is one of the best first steps you can take.

Creating a budget and learning to manage your finances as a college student can put you in a stronger financial position when you graduate. Here are some of the first steps you can take to ensure your long-term financial wellness.

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), online sports betting and internet gambling transactions, and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal®, who also provide P2P payments) may not be eligible for cash back rewards. Apple Pay® is a trademark of Apple Inc. Venmo and PayPal are registered trademarks of PayPal, Inc. Samsung Pay is a registered trademark of Samsung Electronics Co., Ltd. Google, Google Pay, and Android are trademarks of Google LLC.

Source: discover.com

Apache is functioning normally

June 6, 2023 by Brett Tams

Save more, spend smarter, and make your money go further

Ordering from the menu while dining out may not get you the best deal–or even the tastiest meal.

It’s not unusual for restaurants to have hidden menus (some of which, like In-N-Out Burger’s, are not really that secret) and special deals only accessible to those diners who are in the know.

You might even get early access to a popular item—last fall, Starbucks customers who told their barista “PSL 10” could get a pumpkin spice latte a week before the drink’s official addition to menus.

Ferreting out secrets is pretty easy.

Look for the code words on brands’ web sites, Facebook pages and Twitter feeds, and on message boards catering to foodies and deal hunters like Chowhound.com and HacktheMenu.com.

And when in doubt, ask your server if there’s anything they recommend that isn’t necessarily on the menu.

Don’t forget to pay attention to your local restaurants, too—they also have secrets.

At FIGat7th in Los Angeles, there’s “3 Little Piggies,” what a spokeswoman describes as “Kurobuta pork belly, slow-braised carnitas, and prime applewood smoked bacon with chili aioli, jalapeno relish, avocado puree, provolone, pickled red onions and shredded romaine, on panini grilled ciabatta.”

Time Out New York has tracked secret menu items at local outposts such as Momofuku Milk Bar (a milkshake with mint, cookies and espresso).

In-N-Out

The secret is definitely out when a brand posts its secret menu to its own web site. But that’s just the burgers.

Frugal Foodie is partial to the Neapolitan shake (a mix of strawberry, vanilla and chocolate) and well-done fries (extra crispy).

Starbucks

There’s an entire site—StarbucksSecretMenu.net—devoted to off-the-menu Starbucks drinks.

For example, a Chocolate Covered Raspberry Frappuccino, which adds raspberry syrup, mocha drizzle and java chips to a vanilla bean Frappuccino.

Jamba Juice

Some of the most notable secret combos taste like candy.

Among those Ranker.com lists include Pink Starburst (lemonade, soymilk, raspberry sherbet, frozen yogurt, sorbet and strawberries) and Sourpatch Kid (lemonade, blueberries, lime sherbet, pineapple sherbet, raspberry sherbet and orange sherbet).

Sonic

This chain already brags that its drinks menu allows for a whopping 1,063,953 combos, and menu listings do include a number of the ones you’re less likely to pair (like Purple Sprite, which mixes in cranberry juice, Powerade and a few other ingredients).

A secret food to try: the Frito Pie, which is Fritos topped with chili and nacho cheese.

Panera Bread

Another chain where the secret items are more advertised, Panera has sent out press releases about new additions.

One to try: the Power Chicken Hummus Bowl, a salad with chicken, hummus and a variety of veggies.

McDonalds

SecretMenuholic.com has a good rundown of the stealthy menu items, which include a McFlurry with an apple pie mix-in, and the Mc10:35, a breakfast-lunch crossover of a McMuffin and a McDouble.

Frugal Foodie is a journalist based in New York City who spends her days writing about personal finance and obsessing about what she’ll have for dinner. Chat with her on Twitter through @MintFoodie.

Save more, spend smarter, and make your money go further

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Source: mint.intuit.com

What is a side hustle?

What are some side hustle ideas?

Ride-sharing

Delivery driving

Grocery shopping

Tour guide

Virtual assistant

Babysitting

Pet sitting

House sitting

Studies and focus groups

Translation work

Graphic design

DIY for hire

Data entry

Tutoring

Background acting

How can a side hustle complement a passive income strategy?

Dividend investing

Rental income

Long-term home or apartment rental

Short-term rentals

Other rental spaces

Rent out your car

What can you do with your additional funds?

Savings accounts

CDs

Money market accounts

Retirement accounts

How can you benefit from side hustles and passive income?

1. Taxes for freelancers and the self-employed

Estimating what you’ll owe

Budgeting for what you’ll owe

2. Business expenses for freelancers: Get a handle on two big deductions

Renting or furnishing your workspace

Going digital: freelancing business tools

3. Health insurance for freelancers: Harness an inevitable cost

4. Retirement savings for the self-employed: Learn to “set it and forget it”

5. General business expenses: Update your rates to cover them

Knowing how to manage finances as a freelancer is the key to a successful career

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The Car Loan

Sneak Through the Backdoor

Which House?

The Value of a Basis Point

What’s a “Cash Balance Plan?”

Ugly Annuities

The Power of Financial Planning

Cash Flow Management

Portfolio Complexity

Too Much Cash

Goal Setting

Consolidation

Scary Stuff

Monday

Tuesday

Wednesday

Thursday

Friday

Daily Snacks

Healthy Granola Cookies

Overnight Oats

Homemade White Bean Dip

Ants on a Log

If eating on campus is your only option, keep these tips in mind for eating well in a pinch…

Is a work-from-home career right for you?

What are your career interests and dreams?

How would you rate your ability to manage yourself?

Do you have the right setup to work remotely?

Can you draw a clear line between work and life?

Are you a social butterfly?

7 work-from-home careers that pay well

Social Media Manager

Project Manager

Data Analyst

Virtual Assistant

Web Developer

Sales Representative

IT Support Specialist