retirement Archives - Page 126 of 585

Apache is functioning normally

May 26, 2023 by Brett Tams

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

When it comes to your financial health, what you don’t know can cost you. Just like the annual physical with your doctor keeps your body’s health on track, knowing your financial vital signs can save you money and help you keep fiscally fit. Match your financial knowledge in the categories below to see where you can shape up!

Net Worth

Do you know what your net worth is? If the answer is no, you’re not alone: most Americans don’t! But knowing your net worth, the value of your assets (your savings and retirement accounts, your house, collectibles, your car) minus your total debts (including house payments and car payments) – is key to tracking your financial health. Knowing your net worth offers a clear picture of your financial state, showing you how you spend your money. Calculate your net worth regularly—ideally once a quarter—to identify areas where there’s room for improvement.

Mortgage Rate

According to a new Bankrate.com report, a whopping 35% of Americans don’t know their mortgage interest rate. How about you? Rates have bounced around historical lows for years, yet many homeowners who could benefit from refinancing haven’t taken advantage of the potential savings because they were unaware of their current rate. With rates expected to rise from 4.2% to over 5% in 2015, now is the time to do some easy research and stop leaving thousands of dollars on the table.

Credit Score

Your credit score – a three-digit number that represents your credit risk with a number that ranges from about 300 to 850 – is looked at by everyone from lenders to landlords. The National Foundation for Credit Counseling recently found that 60% of adults hadn’t reviewed their credit score within the previous 12 months. Big mistake, particularly if you’re in the market for a loan. Why is this number so important? Score high (mid 700s) and you could save thousands of dollars in low interest rates. Score low (below 620) and when you apply for a loan you’ll be offered a higher rate, favorable terms or even worse, you may not be able to obtain financing at all. Want to know where you stand? You can get your score for free from any number of providers including Mint.com. If your score is low, work on improving it by making your payments on time (try Mint Bills to get reminders when bills are due, stay organized, and pay on the spot). Also, cut back on using credit cards; a good rule of thumb is to avoid using more than 10% of your available credit on any card.

Make Friends with Your Credit Report

Your credit report contains detailed information about your credit history including things like credit-card use, auto loans and debts that were sent for collection. For such important information, an alarming number of credit reports contain mistakes. In fact, an FTC study indicates that as many as 40 million Americans have a mistake on their credit report. Since fewer than one-in-five consumers check their reports, chances are most people don’t know about the errors. Yet if a mistake is serious, it can lower your credit score and possibly result in your being denied credit. Get a free copy of your credit report on AnnualCreditReport.com and review it carefully.

–Vera Gibbons, Mint Contributor and Personal Finance expert

This post was corrected on March 6, 2015.

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

Previous Post
Don’t Let a Fender Bender Break the Bank
Next Post
Money Mindset: Becoming a Financially Wise Woman

Source: mint.intuit.com

Apache is functioning normally

May 26, 2023 by Brett Tams

In the past, you had to drive to your bank and work with a teller to manage your deposit accounts. These days, however, you have the option to complete virtually any banking need with any device that has internet access. You can pull out your smartphone and deposit a check. Or you may use your laptop to check your account balance.

That’s where banks called neobanks come in. It’s no surprise that neobanks are more popular than ever before. Let’s take a closer look at what they are and how they work so you can decide whether a neobank makes sense for your particular situation.

20 Best Neobanks

While traditional banks take up more market share than neobanks, you can still find a good amount of them if you do your research and shop around. The right neobank for you will depend on your unique lifestyle, needs, and preferences. To help you hone in on the ideal option, here’s our list of the top neobanks of 2023.

1. Chime

Founded in 2012, Chime is a financial technology company that offers banking services from The Bancorp Bank, N.A. and Stride Bank N.A. The Chime Checking Account is free of monthly maintenance fees and no minimum balance requirements.

Its perks include early direct deposit, automated savings features, access to over 60,000 or more fee-free ATMs, and free debit card replacement. In addition, you can take advantage of SpotMe and get up to $200 in fee-free overdrafts.

There’s also a Chime’s Savings Account, which offers a competitive interest rate with no cap on the amount of interest you can earn. Other services include Secured Chime Credit Builder Visa® Credit Card that doesn’t require a credit check, making it a suitable option if you have limited credit. Chime should be on your radar if you prefer a one-stop-shop for all of your banking needs.

You can read our full Chime review to learn more.

2. GO2bank

For more than a decade, Green Dot Corporation has specialized in alternative banking products. In 2013, GoBank made its debut as the first digital bank offering digital financial services. Then, in 2021, the company launched GO2bank, its second online bank.

GO2bank stands out from other neobanks which require you to sign up online because you can pick up their debit cards in person at Walmart and other popular retailers. GO2bank’s bank account tends to be a popular product in addition to its secured credit card that can help you build credit.

For a comprehensive overview, read our full GO2bank review.

3. Current

Since its inception in 2015, Current, which is not a bank, but a fintech company based in New York City, has partnered with Choice Financial Group and Metropolitan Commercial Bank to offer banking services. Its flagship products are a personal checking and debit card you can access via a mobile app on any iOS or Android device.

Even though Current’s product line is limited, the neobank prides itself on no shortage of perks and benefits. You can get your deposit up to two days early and earn cash back for debit card spending from more than 14,000 merchants. Additionally, Current doesn’t charge minimum balance fees or bank transfer fees and offers fee-free ATM withdrawals from ATMs in the Allpoint network.

If you would like to learn more, take a look at our Current review.

4. Revolut

Founded in 2015, Revolut is one of the largest European neobanks, serving more than 16 million customers. It has expanded its footprint to the U.S. market and has plans to become one of the most reputable neobanks in the world.

Revolut is unique in that it offers a wide array of financial services, such as bank accounts, debit cards, peer-to-peer payments, cryptocurrency, and currency exchange. It supports both individual consumers and businesses with more than 30 currencies. For a neobank with a diverse lineup of offerings, Revolut has you covered.

To learn more, read our full Revolut review.

5. Quontic Bank

Quontic Bank is a full-service, FDIC-insured online bank that was founded in 2002. It offers a range of banking products and services, including checking and savings accounts, credit cards, mortgages, and business banking solutions.

They offer some of the best annual percentage yields (APYs) in the industry. Quontic accounts come equipped with no overdraft fees, no incoming wire transfer fees, no monthly service fees, and access to over 90,000 surcharge-free ATMs.

Quontic also has a savings accounts feature called “Roundup”, which makes saving money simple and easy. In addition, they have a responsive U.S. based customer service team available to assist with any questions or concerns.

Read our full Quontic review for more information.

6. Dave

When Dave began in 2017, its sole focus was paycheck advances. Over time, it evolved to offer a checking account with no minimum balance requirements. If you become a Dave customer, you can receive early access to your paycheck, without a credit check or interest charges.

Dave also offers handy built-in budgeting features and doesn’t charge overdraft fees or ATM fees, as long as you use an ATM from the MoneyPass network. Dave may make sense if you’d like the option for small cash advances to get you through a financial hiccup from time to time.

See also: Free Online Checking Accounts: No Opening Deposit Required

7. Albert

Albert began as a money management app in 2016, but is now a personalized banking service that has attracted over 6 million customers. This digital banking account offers cash back and a range of benefits.

These including no-interest cash advances of up to $250, integrated budgeting and savings tools, and annual savings bonuses of up to 0.10%. There are no minimum balance requirements or overdraft fees. However, there is a minimum monthly fee of $4. Keep in mind that you’ll need to have an external bank account to open an account with Albert.

8. Varo

Varo Bank began in 2015 as a fintech company that partnered with The Bancorp Bank. In 2020, it acquired its own national banking charter, making it different from other neobanks you might come across. Even though Varo operates as an actual bank, it focuses on online banking via its website and mobile app.

Its checking account is free of monthly fees and there’s no minimum balance requirement. Plus it comes with a debit card. In addition, Varo partners with more than 55,000 ATMs through the Allpoint ATM network.

We can’t forget its other perks, such as contactless payments, credit cards with reporting to the major credit bureaus, early direct deposits, and no foreign transaction fee or transfer fees. Varo might be worthwhile if you’re looking for a checking account with all the bells and whistles.

Read our Varo Bank review to learn more.

9. Aspiration

Aspiration was founded in 2013 under the motto “Do Well. Do Good.” It partners with financial institutions like Coastal Community Bank and Beneficial State Bank to offer cash accounts, savings accounts, and a few investment accounts.

Aspiration’s most popular product is the Aspiration Spend & Save Account, which is a hybrid of a checking account and savings account. There’s also the Zero credit card, which offers cash back and plants a tree every time you make a transaction. Aspiration can be a good fit if you’d like to get rewarded for your spending and like the idea of one account for your checking and savings goals.

Read our full review of Aspiration to learn more.

10. Bluevine

Bluevine made its debut in 2013 as a fintech company with a mission to improve banking for small and mid-sized business owners. Its flagship product is the Bluevine Business Checking. It’s completely free and comes with a competitive annual percentage yield and unlimited transactions. This is rarely seen in the world of business checking.

In addition to the business checking account, Bluevine offers financing products, such as lines of credit of up to $250,000. Bluevine should be on your radar if you’re a business owner in search of fast, convenient startup banking and financing.

11. SoFi

Social Finance or SoFi entered the market as a student loan refinance company. Recently, however, the fintech company received its own bank charter to offer digital banking services. You can use the SoFi Checking and Savings combo account to manage your spending and saving needs in one place.

Fortunately, SoFi doesn’t charge monthly maintenance fees, overdraft fees, and ATM fees. Additional perks and extras include no-fee overdraft coverage, sub accounts for various savings goals, and additional products like credit cards, cryptocurrency trading, and retirement accounts, like an individual retirement account.

Read our full review of SoFi to learn more.

12. Acorns

Acorns has a reputation as an easy-to-use micro investing app. Since 2012, many people have downloaded it on their iOS or Android devices to invest their spare change. Over time, Acorns has expanded to offer a checking account.

You can open Acorns Checking for free and enjoy perks such as no monthly or overdraft fees, early direct deposit, mobile check deposit, and access to a network of 55,000 ATMs.

The checking account seamlessly integrates into the Acorns micro investing feature. Plus when you use your Acorns debit card, you can earn cash back at participating retailers and use it to invest, along with your spare change. If you’d like to get started with investing, Acorns is worth considering.

13. One

One is a neobank owned by Walmart. It offers a budget-friendly overdraft program with customized budgeting and savings options for its customers. One’s banking account allows users to organize their money into subaccounts called Pockets.

Pockets offer saving rates of 1% on up to $5,000 for any customer and 1% on up to $25,000 for customers with direct deposit. Additionally, One provides fee-free overdraft coverage of up to $200 for customers with direct deposits of at least $500 per month.

14. Cheese

Cheese is a digital banking platform that was launched in March 2021 and caters specifically to the immigrant and Asian American communities. It offers up to 10% cash back at 10,000 businesses, including Asian-owned businesses and restaurants.

Cheese’s customer support is available in English and Chinese, with more languages to be added in the future. One of the benefits of opening an account with Cheese is that accounts earn interest and do not have monthly fees or ATM fees when using the national MoneyPass ATM network.

15. Unifimoney

Unifimoney is a money management and investment app that helps you manage your banking, investing, and borrowing needs all in one place. It caters to account holders who earn at least $100,000 per year but have significant amounts of student debt. You can download Unifimoney to pay bills, deposit checks, and write checks.

It’s unique in that it also allows you to refinance student loan debt and can create a diverse investment portfolio with particular stocks, cryptocurrencies, precious metals, stocks, and exchange-traded funds (ETFs).

In addition, you can turn to Unifimoney for insurance products, like car insurance and health savings accounts (HSAs). If you’d like to get started with Unifimoney, open the Unifimoney high-yield checking account with as little as $100.

16. NorthOne

Headquartered in New York and founded in 2016, NorthOne offers digital business banking services. If you’re a startup, entrepreneur, or small business owner, NorthOne can be a good fit. It differs from other banks that serve businesses in that there are no transaction limits that require premium upgrades.

You can open a business bank account for a flat $10 monthly fee and won’t have to worry about additional fees for deposits, transfers, ACH payments, or app integrations. In addition, you’ll get to create as many “Envelopes” or sub accounts as you want so you can save for payroll, taxes, and other business needs.

17. Oxygen

San-Francisco based Oxygen focuses on two accounts: the free thinker account for individuals and the pioneer account for business users. Even though it doesn’t charge fees, like monthly fees, ACH fees, and overdraft fees, you will have to pay an annual fee that can go up to a few hundred dollars.

While most neobanks don’t allow for cash deposits, Oxygen does. As long as you have an Oxygen bank account, you can make deposits at GreenDot locations, which are usually located inside popular retailers, like Walmart, Walgreens, and CVS. If you don’t mind paying an annual fee and like the convenience of being able to deposit cash, Oxygen is worth exploring.

18. Bella

Bella is a fairly new player in the neobanking space. Its partner bank is nbkc bank, which allows it to provide banking services. With Bella’s checking account rewards program, you can receive a random percentage of cash back on randomly selected purchases.

The cash back amount may be anywhere from 5% to 200%. Like most neobanks, Bella doesn’t charge monthly fees, ATM fees, and overdraft fees. You can also opt for a no-fee savings account. Bella accounts are FDIC insured for up to $5,000,000.

19. Lili

Lilli services small business owners and believes that managing two accounts is a hassle. That’s why this neobank offers a single account you can use for both your business and personal transactions.

Come tax time, Lili will eliminate financial stress and let you automatically save a certain percentage of your income into a “tax bucket.” Plus, it produces quarterly and yearly reports instantly, reducing your tax prep costs. While the Lili Standard account is free, Lili Pro will run you a couple dollars per month.

If you upgrade to Lili Pro, you’ll get cashback rewards on all your debit purchases and 1% interest on your savings accounts. Lili could be a solid pick if you’re a freelancer or solopreneur hoping to simplify your finances.

20. Monzo

Monzo is a UK-based neobank that just opened up to the U.S. market in late 2022. All accounts are insured by the FDIC for up to $250,000. Plus fee-free withdrawals are available at more than 38,000 ATMs.

Furthermore, Monzo is similar to Aspiration as it strives to protect the planet. Additionally, this neobank offers budgeting tools that can help you meet various savings goals.

What is a neobank?

Often called challenger banks, neobanks have recently entered the financial services industry and challenged banking norms. Most neobanks are financial technology or fintech companies that offer the same banking services you may find at traditional banks, like Bank of America or PNC.

But they promote innovation and act like digital only banks or online banks as they don’t have any physical branches and operate via apps. Most of these apps are user-friendly and loaded with a variety of handy features, such as early deposit and savings tools to simplify the banking experience. They are specifically designed to give you greater control of how you manage and spend your money.

Also since neobanks don’t have any physical branches, their overhead costs and customer acquisition costs are low and enable them to offer more affordable banking products and services. Many neobanks let you choose from a number of free and paid premium subscription services.

Are neobanks safe?

Since neobanks are fairly new and different from many traditional banks, you might wonder whether they’re safe. Fortunately, most of them are very safe because they operate within a regulated market.

These financial institutions typically work with U.S. banks to offer FDIC-insured accounts, which protect your money from potential bank failures and the losses that come with them. To help determine if a neobank is safe, check out their ratings and reviews on reputable websites like the Better Business Bureau (BBB).

Neobanks vs. Traditional Banks

To further explain neobanks and their modern spin on traditional banking, let’s take a closer look at how they differ from traditional banks.

Neobanks

Neobanks operate without physical branches. To take advantage of their offerings, you’ll likely need to download an app and provide some personal information.

While you can expect fewer banking and credit products than you’d find at traditional banks, you’ll reap the benefits of lower fees and extras that improve the overall banking experience.

Some neobanks have decided to expand their lineup of products and services to create more of a one-stop-shop you’d get from a traditional bank. Since most neobanks don’t earn money from lending, like incumbent banks, their business model depends on interchange fees or transaction fees, which usually come from debit cards. They might also charge for premium accounts and extra features.

Traditional Banks

Traditional banks often have brick-and-mortar locations across the country or in a specific geographic region or area. But many of them also have digital banking divisions in which you can perform banking services online.

Most banks focus on strong customer relationships and earning interest through loans as well as account fees from banking, lending, and investing. They typically target customers who appreciate customer engagement and a traditional in-person banking experience.

See also: Best Alternatives to Traditional Banks

Pros & Cons of Neobanks

Just like all types of financial institutions, neobanks have benefits and drawbacks you should consider, including:

Pros

Lower fees: Compared to traditional banks, neobanks offer lower fees. That’s because they don’t have the high overhead costs associated with the upkeep of physical branches.
Higher rates: Neobanks often pride themselves on higher interest rates on their checking and savings accounts. This can make it easier and faster for you to save money.
Convenience: Perhaps the greatest benefit of neobanks is the convenience they bring. You can perform a variety of banking tasks, like depositing checks or making payments from your smartphone device, round-the-clock.
Easy access: You can manage your banking 24/7 without ever having to leave your home and visit a local branch. All you have to do is download an app from the app store.
Simple setup: It’s usually fast and easy to open an account with neobanks. Many of them will approve you, regardless of your credit score or credit history.
Focused services: While most neobanks don’t offer all the services you might find at traditional banks, the few services they do provide focus on service quality and are typically loaded with perks and benefits. For example, you can get a no fee checking account with cash back rewards.

Cons

No bank charters: Neobanks don’t have bank charters. Instead, they often partner with traditional banks to insure their products. Before you move forward with a neobank, ensure they partner with a Federal Deposit Insurance Corp or FDIC-insured bank and offer their own FDIC insurance.
Customer service restrictions: Since neobanks operate on app instead of through physical branches, customer service can be a downside. You may have to turn to chatbots or social media for basic banking questions and support. If you notice fraud in your account, it may be more difficult to resolve the issue.
Fewer services: Traditional banks usually pride themselves on a long list of services, including loans, wealth management, and brokerage services. Neobanks, however, tend to limit their offerings to checking accounts and savings accounts.
Unproven track record: Neobanks are still in the startup phase as many made their debut within the last few years. This means that they may fail and force you to look elsewhere for your banking needs.
Require knowledge of technology: While most neobank apps are intuitive and designed for the average person to use with ease, they may still be inconvenient for some people. If you don’t consider yourself tech literate, a neobank might not make sense.

Bottom Line

There’s no denying that neobanks have revolutionized the banking industry and financial industry. If your primary goal is convenience and you prefer mobile or online banking, a neobank can be a great alternative to a traditional bank or legacy bank. Just make sure you explore all your options and read the fine print before you choose one.

Source: crediful.com

Apache is functioning normally

May 26, 2023 by Brett Tams

Written by

Reviewed by

Updated Mar 09, 2023

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict
,
this post may contain references to products from our partners. Here’s an explanation of
.
Our content is backed by
Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our
.

At a glance

3.5

Bankrate Score

Caret Down

Auto

3.8

Caret Down

Cost & ratings

4.0

Coverage

3.5

Support

3.5

Home

3.1

Caret Down

Cost & ratings

2.8

Coverage

4.0

Support

2.3

Bottom Line

If you live in Erie’s 12-state service area, the company could be a great choice for robust coverage and affordable premiums. Erie’s digital tools are lacking compared to its competitors, though, so it may not be the best choice for tech-focused customers.

Affordable average premiums for both homeowners and car insurance policies compared to the national average
Strong customer satisfaction rankings from J.D. Power
Erie’s home insurance offers guaranteed replacement for dwelling coverage in most states

Erie auto and home insurance is only available in 12 states and Washington D.C.
No usage-based auto insurance program available
Only a few homeowners endorsements available

Answer a few questions to see personalized rates from top carriers

Info

What’s new with Erie?

In August 2022, Erie Insurance established Erie Strategic Ventures to help fund entrepreneurs who create innovative products and services for customers and Erie’s independent agents. The company also recently announced the addition of optional extended water coverage for homeowners policies.

Erie car insurance

Founded in 1925, Erie Insurance Group started in Pennsylvania but has since expanded to 12 states and Washington D.C. The company offers coverage options that may be difficult to find among its competitors. Its standard auto insurance policies feature a diminishing deductible, first accident forgiveness for eligible policyholders and Erie Rate Lock, depending on the state. Additional coverage options include roadside assistance, auto glass repair and personal item coverage.

Erie car insurance earned a Bankrate Score of 3.8 out of 5. This Score reflects the company’s coverage options, financial strength, customer satisfaction and available discounts. Erie lost points due to its regional availability and limited digital tools (for example, the mobile app doesn’t have a claims filing option). Erie earned an A+ (Superior) AM Best financial strength rating and placed third in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study.

Pros and cons of Erie car insurance

Erie’s coverage options and customer satisfaction scores make it one of the best car insurance companies in states where it writes policies. Comparing pros and cons of Erie auto insurance may help you decide if the company could be a good fit for your needs.

PROS

Checkmark

Roadside assistance and rental car reimbursement available
Checkmark

Erie Rate Lock may help keep rates stable over time
Checkmark

Auto policies include pet coverage

CONS

Close X

Available in just 12 states and the District of Columbia
Close X

No telematics or usage-based insurance program available
Close X

Mobile app does not enable policyholders to file a claim from their mobile devices

Erie car insurance cost

Erie is one of the cheapest car insurance companies based on our research of average premiums analyzed from Quadrant Information Services. Erie’s full coverage car insurance costs an average of $1,356 per year, while minimum coverage averages $486 per year.

Comparatively, the national average cost of car insurance for both coverage levels is higher, at $2,014 per year for full coverage and $622 per year for minimum coverage. Actual rates may vary based on car insurance rating factors, but the premium data below may be a useful comparison tool.

Erie car insurance rates by driving history

Bankrate bases the following average rates on data provided by Quadrant Information Services. This may not represent the price you will pay for car insurance. We do not include average rates for drivers with a history of driving under the influence (DUI) because some insurers may not write policies for motorists with a DUI conviction. If you have a DUI conviction, you may contact your insurance agent to find out how it could impact your car insurance premium.

this.select(this.$id(‘tab’, 1)))
},
select(id)
this.selectedId = id
,
isSelected(id)
return this.selectedId === id
,
whichChild(el, parent)
return Array.from(parent.children).indexOf(el) + 1

}” x-id=”[‘tab’]”>

	Erie average monthly full coverage premium	Erie average annual full coverage premium	National average annual full coverage premium
Clean driving history	$113	$1,356	$2,014
Speeding ticket conviction	$123	$1,476	$2,427
At-fault accident	$134	$1,607	$2,854

	Erie average monthly minimum coverage premium	Erie average annual minimum coverage premium	National average annual minimum coverage premium
Clean driving history	$41	$486	$622
Speeding ticket conviction	$44	$527	$748
At-fault accident	$49	$592	$892

Erie car insurance quotes by age

Young drivers typically pay some of the highest average car insurance rates. Teens and other young drivers may save by remaining on their parents’ auto insurance policy until they’ve established their own households. The following average rates are based on a motorist on their parents’ policy with a clean driving record, as well as drivers listed on their own policies.

Average cost of car insurance for drivers on their parent’s policy

this.select(this.$id(‘tab’, 1)))
},
select(id)
this.selectedId = id
,
isSelected(id)
return this.selectedId === id
,
whichChild(el, parent)
return Array.from(parent.children).indexOf(el) + 1

}” x-id=”[‘tab’]”>

	Erie average monthly full coverage premium	Erie average annual full coverage premium	National average annual full coverage premium
Age 16	$240	$2,876	$4,392
Age 17	$225	$2,700	$4,102
Age 18	$219	$2,630	$3,837
Age 19	$209	$2,512	$3,345
Age 20	$205	$2,456	$3,149

	Erie average monthly minimum coverage premium	Erie average annual minimum coverage premium	National average annual minimum coverage premium
Age 16	$86	$1,035	$1,470
Age 17	$81	$970	$1,362
Age 18	$79	$944	$1,261
Age 19	$74	$892	$1,070
Age 20	$73	$876	$995

Average cost of car insurance for drivers on their own policy

this.select(this.$id(‘tab’, 1)))
},
select(id)
this.selectedId = id
,
isSelected(id)
return this.selectedId === id
,
whichChild(el, parent)
return Array.from(parent.children).indexOf(el) + 1

}” x-id=”[‘tab’]”>

	Erie average monthly full coverage premium	Erie average annual full coverage premium	National average annual full coverage premium
Age 18	$249	$2,988	$6,110
Age 25	$136	$1,630	$2,473
Age 30	$122	$1,461	$2,125
Age 40	$113	$1,356	$2,014
Age 60	$107	$1,279	$1,824

	Erie average monthly minimum coverage premium	Erie average annual minimum coverage premium	National average annual minimum coverage premium
Age 18	$90	$1,081	$1,967
Age 25	$48	$579	$747
Age 30	$43	$520	$647
Age 40	$41	$486	$622
Age 60	$39	$462	$578

Erie car tools and benefits

Erie extends a coverage option for non-owned autos including cars, moving vans and trailers that you use but do not own. This may be ideal for Erie drivers who do not own a vehicle but do drive on occasion.

Erie also sells boat, class car and motorcycle insurance, along with coverage for ATVs, golf carts and snowmobiles.

Erie home insurance

Erie home insurance receives high customer satisfaction scores from J.D. Power as well as 24/7 support for policyholders and a variety of coverage options. Erie offers guaranteed replacement cost coverage as part of its standard homeowners policies as well as additional living expenses.

Although Erie does not allow policyholders to file a claim through their mobile app, the company has more than 13,000 local agents and advertises a 90 percent customer retention rate year over year.

Pros and cons of Erie homeowners insurance

If you’re considering Erie for your homeowners insurance needs, it may be helpful to compare perks and drawbacks you may experience with the carrier. Here are a few of the key pros and cons Bankrate’s editorial team identified:

PROS

Checkmark

Guaranteed dwelling replacement cost coverage included in standard homeowners policies
Checkmark

Ranked 7th in J.D. Power’s 2022 U.S. Home Insurance Study
Checkmark

Standard home insurance policies include up to $500 in pet coverage

CONS

Close X

Only a few discounts available
Close X

Few optional coverages available
Close X

Not available in all states

Dwelling coverage limit	Erie average annual premium	National average annual premium
$150,000	$659	$975
$250,000	$957	$1,428
$350,000	$1,269	$1,879
$450,000	$1,601	$2,343
$750,000	$2,597	$3,761

Erie home insurance discounts

Home insurance discounts may help you save on your premium. Advertised home insurance discounts with Erie include:

Erie home tools and benefits

Erie’s home insurance coverage comes with unique options not found with other carriers. Its home insurance pet coverage extends coverage to up to $500 for animals, including birds and fish.

Erie offers gift card and gift certificate reimbursement coverage for its ErieSecure Home policies. Customers may receive reimbursement for up to $250 per gift card purchased from businesses within 100 miles of their home, with a maximum of $500 per policy period.

Erie life insurance

Erie offers four life insurance products: term life, whole life, universal life and Erie’s exclusive ERIExpress Life. Erie’s term life insurance may be a good option for those who want a fixed coverage term and intend for the policy to pay for expenses that may be burdensome to loved ones, such as funeral costs and mortgage or credit card debt. Whole and universal life have no fixed terms, but universal life offers the most flexible death benefit. Erie’s unique ERIExpress Life policy may be ideal for people looking for a simplified application and fast approval.

Pros and cons of Erie life insurance

The best life insurance company may be different for everyone, and each policy type serves a different purpose. The following pros and cons may help you decide if Erie life insurance is right for you.

PROS

Checkmark

Multi-policy discounts available for policyholders with a life and home or auto policy.
Checkmark

ERIExpress may be available without a medical exam.
Checkmark

Variety of policy types to choose from

CONS

Close X

Only one rider advertised to customize coverage.
Close X

Online quoting is not available
Close X

Only writes policies in 12 states and the District of Columbia

Erie life insurance endorsements

Life insurance endorsements, also called riders, may modify and extend your life insurance coverage. Erie’s life insurance coverage only offers one rider, a long-term care rider. Erie’s long-term care rider is only available for universal and whole life insurance policies. The long-term care rider provides an accelerated death benefit, which pays a portion of your policy’s death benefit to help pay medical expenses incurred following a covered accident or illness that requires long-term care.

Erie life tools and benefits

Erie provides a life insurance calculator on its website to help customers decide which type of policy may best fit their needs. From there, customers can request to be paired with an independent Erie agent to get a quote.

Erie customer satisfaction

Researching third-party ratings may help you decide which insurer best fits your needs. J.D. Power produces annual car insurance and home insurance studies that rate and rank insurers based on their customer satisfaction. These include the national U.S. Auto Claims Satisfaction Study and more regional U.S. Auto Insurance Study.

Agencies such as AM Best, Moody’s and Standard and Poor’s analyze the financial strength of insurers and produce ratings that may indicate the financial strength of individual companies. Erie has earned an A+ (Superior) AM Best financial strength rating.

Lastly, the National Association of Insurance Commissioners (NAIC) produces an annual complaint index report to track the prevalence of complaints lodged against insurance companies. The index employs a baseline of 1.0. Scores below 1.0 indicate that a provider had fewer complaints than expected for a company its size and vice versa.

Erie auto satisfaction

In J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, Erie ranked third in the market, with an overall customer satisfaction score of 893 out of 1,000. More regionally, Erie came in first for overall customer satisfaction in the mid-Atlantic and North Central regions. Erie has an NAIC Complaint Index of 0.56 for its private passenger policies, indicating fewer customer complaints than expected for a company its size.

Erie homeowners satisfaction

Erie ranked above average in J.D. Power’s 2022 U.S. Home Insurance Study, earning an overall customer satisfaction score of 827 out of 1,000. Erie’s homeowner policies have an impressive NAIC Complaint Index of 0.09, indicating very few complaints from policyholders.

Erie life satisfaction

Erie wasn’t rated in the annual life insurance study conducted by J.D. Power, potentially due to the company’s small size when compared to national life insurance carriers. However, the Erie Family Life company, which underwrites Erie’s life insurance products, has an NAIC Complaint Index of 0.46, which is less than half of the 1.00 baseline. Based on this data, Erie’s life insurance customers may be satisfied with the service they receive, since fewer-than-average complaints were filed.

How to file a claim with Erie

Erie gives auto and home insurance policyholders two ways to file a claim. They can contact their Erie agent or call the 24/7 claims center at 800-367-3743. Life insurance customers can file a claim by contacting their Erie agent or by calling 800-458-0811.

Erie availability

Erie writes car and home insurance policies in the District of Columbia and the following states:

Illinois
Indiana
Kentucky
Maryland
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
West Virginia
Wisconsin

Erie sells life insurance in the District of Columbia and all of the aforementioned states, except New York.

Other Erie perks worth considering

Erie also offers business insurance including business automobile insurance. Business policies may protect a variety of businesses, including breweries, contractors, religious organizations, retailers and veterinarians.

Erie also offers a long list of other insurance and financial products for customers, including:

Financial services: Erie offers Medicare supplemental coverage (Medigap) and retirement accounts, including annuities and individual retirement accounts (IRAs).
Renters, condo and mobile home insurance: Erie offers a variety of insurance policies for other dwellings and living situations.
Flood insurance: Erie sells standalone flood insurance policies for homeowners and business owners.
Personal valuables insurance: This coverage may be purchased to financially protect jewelry, art, sports equipment, collections, musical instruments and more.

Erie corporate sustainability

Through The Giving Network, Erie and its employees volunteer time and money with organizations focussed on community building, environmental responsibility and safety. These initiatives include partnering with United Way and American Red Cross, as well as supporting other culture and arts organizations, entrepreneurship, education and environmental responsibility. In November 2022, the provider’s The Giving Network awarded $50,000 in grants to 10 northwest Pennsylvania environmental organizations.

With the company’s ERIE Service Corps, employees are encouraged to use a full work-day volunteering in their local community. The Corps also has a matching donation program and established the H.O. Hirt Scholarship Fund and the F.W. Hirt Employee Emergency Fund to more immediately meet the financial needs of their community.

Not sure if Erie is right for you?

Erie offers a variety of auto, home and life insurance products, but it does not write policies in all states. If you live outside Erie’s service area or need an insurer that offers a more diverse portfolio of products, you might consider one of these carriers:

Erie vs. Allstate

Allstate sells car and homeowners policies in the District of Columbia, Puerto Rico and all states except New Jersey. While Erie extends a multi-policy discount to policyholders, Allstate offers more ways to potentially reduce your premium. For instance, if you switch to Allstate, you might earn up to a 10 percent discount, plus an additional 10 percent savings each time you renew your policy. Allstate also offers a robust mobile app that allows policyholders to file claims virtually.

Learn more: Allstate insurance review

Erie vs. Travelers

Unlike Erie, Travelers offers optional rideshare coverage and gap insurance. Travelers extends many potential home insurance discounts including potential discounts for purchasing a new home and owning a LEED-certified green home. However, Travelers ranks lower than Erie in the 2022 U.S. Home Insurance Study and does not sell life insurance products.

Learn more: Travelers Insurance review

Erie vs. AAA

AAA Life Insurance Company sells term life, universal life and whole life insurance policies. AAA’s traditional term life policies offer coverage up to $5 million and give you the option to add a child term endorsement, which provides up to $20,000 in coverage for each eligible child. AAA’s roadside assistance program is robust and enables you to request battery, flat tire, emergency fuel delivery, locksmith, mechanical first aid and towing services from the convenience of the AAA mobile app. Bear in mind that AAA coverages, discounts and optional coverages may vary by location.

Learn more: AAA insurance review

Is Erie a good insurance company?

Erie has excellent financial strength ratings and earned high marks in J.D. Power’s customer and claims satisfaction studies. Additionally, the provider has NAIC Complaint Indexes that are far lower than baseline.

While Erie includes some perks in its standard auto insurance policies, like roadside assistance and rental car reimbursement, the carrier falls behind in the market by not offering a comprehensive mobile app or telematics program.

Erie’s standard homeowners policies feature guaranteed dwelling replacement cost coverage, which most insurers only offer as an endorsement, but they extend few optional coverages and discounts. Overall, Erie offers a solid portfolio of auto, home and life insurance products, but the provider only writes policies in a handful of states.

Clock Wait

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

Dollar Coin

1.2M

quotes analyzed

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

The rates for drivers ages 16–20 added to their parent’s policy reflect the good student and driver’s training discounts applied. The rates for drivers aged 16-20 on their own policy do not include the good student and driver’s training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident.

Homeowners

Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company’s true score in each category out of a possible five points.

Source: thesimpledollar.com

Apache is functioning normally

May 25, 2023 by Brett Tams

Are you wondering “How do I get rid of cable and still watch TV?” or “How can I get cable channels without cable?” Are you looking for the best alternatives to cable TV?

More than five years ago, we decided to cut the cord. We have never watched a lot of TV, but we researched some cable TV alternatives anyway. With the best cable alternatives, we knew we could still watch our favorite shows if we wanted to while saving money.

Like many people who are looking for alternatives to cable TV, we decided to go with Netflix. Now that we travel full-time, we often cancel and restart our subscription depending on whether or not we’ll have reliable internet.

Also because we travel full-time, we have met many, many people over the years who go to great lengths to keep their cable/satellite channels. Luckily, in today’s world, there are so many great alternatives to cable TV.

There are options for people who love sports, people who want lots of movies, people who want to watch current seasons of shows, those who prefer premium channels, and more.

We cut the cord and got rid of cable, and we haven’t missed it one bit. Seriously, we haven’t even thought about it!

If you want to save yourself money and cut the cable TV cord, then I want to let you know that it is definitely possible.

Out of all of the ways you can watch TV shows and movies, cable is definitely the most expensive option out there. And, according to USA Today, the average monthly cable bill in 2017 was $100.98.

If you have cable right now, then you are likely spending around $1,200 a year on cable alone.

I know of many people who spend even more on cable TV, many over $150 a month, and I even had someone tell me that they spend over $300 a MONTH on their cable bill. While that may seem crazy to you, I know there are many people who spend that much on cable TV.

If you are paying for cable TV, just think of what else you could do with that money if you found one of the many best cable TV alternatives!

By learning how to cut the cord and get rid of cable, you can learn how to save money (a lot, in fact!) over your lifetime. That money could be better spent on retirement, traveling, family, and more. All you really need is an internet connection.

Even though getting rid of cable seems like an obvious way to save some money, it can still be hard for many people.

But today, I’m going to help you cut the cord and finally get rid of cable so you can start saving money immediately. If you’re wondering “What is the least expensive way to watch TV?” then today you will see many of the different options, such as streaming services, available to you!

Here are 16 alternatives to cable TV.

1. Cutting cable is easy with a digital antenna.

There are many TV options without cable, and one is by using a digital antenna.

When you think about antennas, you probably think about the classic rabbit ears that are big and ugly. You probably also think about how the picture is never perfect and how channels can get blurry and almost completely fade away.

These days, antennas are all digital, and that means they are sleek and allow you to watch your favorite TV shows, even local channels, with crystal clear reception.

This is one of the least expensive alternatives to cable TV because there is no monthly cost – just a small upfront cost to buy the antenna. You pay for the antenna once and then watch local channels as much as you want.

Before we sold our house and started traveling full-time, we bought a digital antenna, like this one. It’s an indoor one that sat behind our TV, it wasn’t ugly, and we sometimes forgot that it was there (and made it one of the great cord cutting options!). Now, that is an affiliate link, but I didn’t even find out that I could be an affiliate until after we had bought and started using the antenna.

For around $20 (just a one-time fee!), you can get all of the local channels plus some extras you didn’t know existed, and they all come in with great picture quality.

We no longer have the antenna, as we now have a smart TV that has an antenna built in and finds local channels for us – at picture perfect quality, for no additional cost. This is probably the cheapest tv service.

So, if you are wondering how to watch TV without cable or internet, it is definitely possible.

With a digital antenna, you may be able to get local channels and airings such as CBS, NBC, ABC, broadcast channels, MLB, and more.

Other options for devices include:

Roku – This is quite affordable and there are many different Roku devices, some starting as low as around $30. There are no monthly fees for watching free channels or for using a Roku device. You simply just have to pay for what subscription (such as Netflix) that you are wanting to use.
Apple TV – This is similar to a Roku device, but it costs more.
Amazon Fire Stick – This is similar to the others. The Amazon fire stick allows you to watch your subscriptions and download apps straight to your TV.

And more! There are many different devices that you can get so that you can watch TV without paying for an expensive cable TV bill.

2. Netflix – The best cord cutting service.

Netflix is probably one of the most popular options to cable TV as you can watch both movies and TV shows. Netflix makes it easy to get rid of cable or satellite as it is also ad free.

Netflix is what we’ve been using to watch TV mostly, and it’s one of my favorite alternatives to cable TV on this list. It’s probably one of the most popular and best tv service. That’s because Netflix has some of our favorite TV shows that we could watch over and over again.

Netflix has been putting a lot of money into creating their own content, including popular favorites like Stranger Things, Black Mirror, Orange Is the New Black, House of Cards, Arrested Development, and more.

They constantly adds more titles too, which keeps this alternative feeling fresh. It’s also very good at learning the types of shows you watch and making recommendations.

There are three different Netflix plans:

Basic with ads: $6.99 per month
Basic $9.99 per month- You can watch unlimited movies and shows on one streaming device only. You receive unlimited movies, TV shows, and mobile games, get to watch in HD, and there are no ads.
Standard $15.49 per month- Same as Basic, with HD level picture quality, and you can watch on up to two screens at a time. There are no ads.
Premium $19.99 per month- This has HD and Ultra HD and you can watch unlimited Netflix on up to four devices at a time. There are no ads.

They also have a DVD plan which is separate.

Netflix also offers your first month free. The monthly price is quite affordable with Netflix. There is no contract or any other fees, so you can change your Netflix plan whenever you need to.

3. Hulu – The best streaming cable service.

If you want to watch the current season of your favorite network shows, Hulu is one of the best alternatives to cable TV for you. Plus, Hulu has been releasing their own content with Hulu Original series like The Path, The Handmaid’s Tale, and Casual. They also has a growing movie library that they change pretty regularly. Plus, they have HGTV, CNN, MTV, A&E, and other channel lineups.

And, while some of the best streaming services are starting to increase their monthly costs, Hulu has actually lowered the cost of their lowest level of service from $7.99/month to $5.99/month.

Here are Hulu’s plan options and pricing:

Hulu $7.99 per month (or $79.99 per year) – You can stream over 85,000 episode of your favorite shows, movies, and Hulu Originals.
Hulu (No Ads) $14.99/month- Same as the above, but you get a completely ad-free experience.
Hulu + Live TV $69.99/month- You get access to everything in Hulu’s library and streaming live TV.
Hulu (No Ads) + Live TV now with Disney+ and ESPN+: $75.99 per month
Hulu Premium Networks $8.99-$14.99/month- You can pay for premium cable channels when you want them, including HBO, Cinemax, Showtime, and Starz.
If you are a student, you may be able to sign up for Hulu (with ads) for just $1.99 per month.

You can also get premium add-ons, which you can add to any plan, such as HBO Max for $14.99, Cinemax for $9.99 per month, Showtime for $10.99 per month, and Starz for $8.99 per month.

Hulu also lets you customize your plan even more with add-ons like unlimited screens, enhanced cloud DVR, espanol add-on, and more.

Hulu gives new users a 30-day free trial.

4. Sling TV for alternative cable TV options.

The way Sling TV works is by giving you access to shows on some of the most popular networks, including live TV. On Sling, you can watch Disney, AMC, TNT, TBS, Comedy Central, and more.

And, I have been hearing more and more people talking about Sling TV as one of the best alternatives to cable TV for sports lovers because Sling TV has ESPN, ESPN 2, ESPN 3, NFL Network, and add-ons like SEC Network, NHL Network, and NBA TV. I know that it can be hard to get rid of satellite TV due to sports, but there are options these days!

Sling TV also regularly runs promotions for free streaming devices when you sign up and pay for a couple of months of service.

Sling TV has three plan levels:

Sling Orange $35/month (first month of Sling Orange is $25) comes with channels like Disney, Food Network, Comedy Central, and more.
Sling Blue $35/month (first month is $25) comes with channels like Bravo, E!, TLC, and more.
Sling Blue and Orange $50/month (first month is $40) comes with all the channels in Blue and Orange.

If you have Sling TV and are looking for Sling TV alternatives, below is a good, low cost option.

5. Philo

Philo offers simple pricing and gives you access to over 60 channels for live and on-demand TV, unlimited recording, and there is a Philo app to watch it on any of your devices. And, it has some of the most popular channels, like AMC, TLC, HGTV, A&E, History Channel, BET, Nickelodeon, Food Network, and more.

Philo is only $25 a month. There is a 7-day free trial, and you don’t have to enter any billing information for the first 48 hours of your free trial.

Also, if you’re a 90 Day Fiance fan, you can watch it on Philo! That’s what we have done in the past. Another great show available on Philo is Yellowstone.

With a Philo subscription, you also get unlimited DVR, so that you can record an unlimited amount of live TV to your DVR for up to one year.

Supported devices for Philo include Roku, Amazon fire tv, Android tv, Apple TV, Samsung, Web, iPhone & iPad, Android phones & tablets, Roku, Fire TV, Samsung TV, Apple TV, Android TV, and Chromecast via Android.

Also, you can stream on up to three devices at the same time.

6. Amazon Prime Video

If you currently have an Amazon Prime subscription, then you already have access to Amazon Prime Video.

This makes watching through Amazon Prime Video a good way to reduce your number of monthly subscriptions, and is one of the great cable tv alternatives as you can watch both movies and TV shows!

Amazon Prime Video has new releases and classics of your favorite movies and shows, and they continue building their own collection of Amazon Original Series.

Some of the channels that you get with an Amazon prime membership include Paramount+, Starz, Showtime, AMC, Discovery channel, Epix, HBOMax, and more.

You also get Thursday Night Football on Prime Video with your Prime membership.

Amazon Prime Video is included with an Amazon Prime Subscription, which is $139 per year or $14.99 per month. There are also premium channel add-ons like HBO, Showtime, and more. Or, you can get Prime Video membership for $8.99 per month.

7. HBO Now

HBO Now is available through many other streaming services, like Hulu and Amazon Prime, but HBO Now is available on its own if you only want to pay for HBO shows and movies.

The cost is the same whether you purchase it as an add-on or on it’s own, and there is a student discount available:

HBO Now is $14.99 per month.
Comes with a 7-day free trial.
You can cancel and restart whenever you want.
HBO Now can be streamed on multiple devices.

8. YouTube

One of the ways Wes and I watch TV is by going to YouTube and watching sailing or traveling videos. We always end up watching funny, random ones too. And even though you may have to watch ads now and then, those ads keep YouTube free and support the creators who are making entertaining videos.

Due to this, YouTube is one of the best cutting the cord options. It is a great way to cut the cable and watch tv for free!

YouTube has a wide variety of content, and you can find things from your favorite YouTubers, web only content from your favorite TV channels, and clips from comedy series (like SNL) and interviews.

9. YouTube TV for cable alternatives

YouTube now has their own live YouTube TV service, and you can watch shows from 70+ different networks – including ESPN, Bravo, Animal Planet, TLC, National Geographic, FX, and more.

You can watch over 100 live channels, sports (MLB, NFL, and NBA Networks), and many different shows and movies.

YouTube TV costs $64.99 a month, and there are some add-ons available, like:

Showtime $7 month
Fox Soccer Plus $15 month
AMC $5 a month
Starz $9 a month
NBA League Pass $40 a month

While YouTube TV alone is nearly half the cost of the average cable bill, adding too many extras on YouTube TV can easily make this alternative cost almost the same as cable.

Plus, you get unlimited DVR space and it includes 3 streams.

10. The library for best cable TV alternatives

Your local library is my favorite on this list of alternatives to cable TV because it’s completely free!

Libraries have a huge selection of movies (even new releases, blu-ray, and more), complete series of TV shows, and more. Many libraries have partnerships with other libraries in the area, so if you can’t find what you want to watch at one library, it’s probably available at another.

Many libraries now give you digital access with your library card to TV and movies through free services like:

Kanopy
Hoopla

There may be some restrictions on how many shows and movies you can watch a month, but free is a great thing if you’re cutting the cord to save money.

11. ESPN+

Here is another alternative for sports lovers – ESPN+ is one of the lowest cost alternatives to cable TV.

It’s $9.99 per month and you can watch live sporting events, sports networks, live streams, and ESPN+ Originals.

You can watch football, basketball, hockey, soccer, cricket, boxing, and so many other sports. There are also series, shows, and replays that you can enjoy too.

12. fuboTV

fuboTV looks very similar to traditional cable with a heavy focus on sports. You get access to live sports and top TV channels, cloud DVR, and can share your account across multiple devices.

There are also shows you can watch such as Yellowstone, The Voice, The Walking Dead, and more.

fuboTV has four different plans that allows you to watch sports:

fubo Pro $69.99/month. 100+ channels, 100 hours of cloud DVR, sharing on ten devices.
fubo Elite $79.99/month. 200+ channels, 1000 hours of cloud DVR, sharing on ten devices.
fubo Ultimate $99.99/month. 200+ channels, 35 more entertainment channels, Showtime, 1000 hours of cloud DVR, sharing on ten devices, and more
fubo Latino $24.99/month. 46 channels, 250 hours of cloud DVR, and sharing on two devices.

13. Disney+

Disney+ is a new streaming service that is one of the favorite cable TV alternatives. It offers classic Disney movies, original series, short-form content, and documentaries. Because Disney owns a number of franchises and networks, you’ll be able to watch the following things on Disney Plus:

Pixar
Marvel
Star Wars
National Geographic
Fox classics like the Sound of Music and 30 seasons of the Simpsons

This is a great option for families and the cost is relatively low – Disney+ with ads is $7.99 per month and includes unlimited downloads, access across devices, and more.

There is also Disney+ Premium with no ads which is $10.99 per month or $109.99 per year.

14. Go straight to the source for tv options.

For some cable and network channels, you can go straight to their website online and watch their TV shows right there for free.

So, all you need is internet in order to do this! Depending on the channel, you might only be able to watch the most recent episodes or ones that are a little older.

15. Watch Vudu for movies.

Vudu is owned by Fandango, and is a great website to watch movies. This is what we use when we want to watch movies.

They have free movies that come with commercials, but for the most part, you would most likely be paying to watch a movie. Think of it like Blockbuster Video, but you are able to choose exactly what movie you want to watch right from your TV, and you will pay to rent each movie.

According to Vudu, they have over 24,000 titles in their catalog and over 8,000 TV shows that you can watch. That means that there are a ton of options, and probably anything you want to watch can be found on Vudu.

Movie rentals for one time are typically around $0.99 to $5.99. TV show episodes are around $1.99 to $2.99 (for each episode). A season of a TV show is usually around $16.99 to $43.99.

16. Peacock

Peacock TV offers live sports, news, TV shows, movies, and more. If you want to save money and get by with no cable TV, this is a great option.

The price for a Peacock TV plan starts at free and comes with ads. Or, you can pay $4.99 for a limited ads package or $9.99 for the advertising free plan.

Some of the things you can watch include Yellowstone, Below Deck, Parks and Recreation. The Office, and Modern Family. They have 40,000 hours of movies, TV shows, and more on their platform. Plus, you can watch live sports and events, such as the Olympics, Super Bowl, WWE, and more.

17. Paramount+/ Showtime

The Paramount+/Showtime bundle starts at $11.99 per month and you can cancel at anytime.

This is one of the best cable alternatives!

You can stream live TV, sports, and news. You can also watch shows and movies such as Top Gun Maverick, 1923, Everything Everywhere All At Once, Dexter, and more

You can sign up for Paramount+/ Showtime by clicking here.

18. Do anything else for cable TV alternatives!

This might be the best alternative to cable TV, but that’s just my opinion.

And here’s why, the average person watches over 30 hours of TV a week. If you used just half of those hours finding things to do instead of watching TV, you could probably accomplish something great!

Now, I’m not completely hating on TV.

I have my favorite TV shows and can sit in front of a TV for hours on end.

However, for the most part, the average person probably spends way too much time just flipping through channels or watching something that they probably don’t even like.

If you feel like you aren’t accomplishing your goals in life or that you are always pressed for time, then you should first analyze how much time you’re wasting each day, especially when it comes to how much TV you watch.

You may not even realize how much time you spend in front of the TV!

Once you realize how much time you are probably wasting in front of the TV, I want you to start taking back some of that time, stop watching as much TV, and put your time to better use by finding things to do instead of watching TV!

Other things you could do with your time that are alternatives to cable TV include:

Read a book, blog, etc.
Get a book from the library.
Go to a museum.
Do yoga.
Go for a bike ride.
Go for a walk.
Play with your pet.
Go for a swim.
Look at the stars.
Go fishing.
Go camping.
Find free attractions in your city.
Train for a marathon.
Start a garden. Fresh food is the best!
Find a way to make extra money.

Read further at 59 Things To Do Instead of Watching TV So That You Can Take Your Life Back.

How much money are we saving by cutting cable TV?

Like many people, when we had cable, we weren’t watching enough TV enough to get our money’s worth. So, that money was just being wasted on cheap cable tv. It was actually rare for us to watch something that wasn’t on a local channel or Netflix. This was the main reason for why we decided to cut the cord and learn how to watch TV without cable or satellite, and I can’t imagine that we will ever pay for cable again.

The other thing about paying for cable and streaming cable is that our cable company seemed to have a $10 to $20 increase multiple times throughout the year – that’s just insane! I used to have to talk to our cable company once every six months so that I could negotiate our cable bill down. If we would have never negotiated, I’m sure our monthly cable bill would have been well over $100 and near the $200 range.

Now that we have cut the cord and only have Netflix, we are saving over $1,200 per year.

All we pay for now is $15.49 to Netflix each month, and we often turn that off when we feel like there’s nothing good to watch (which is often, haha!).

I can’t believe we ever paid that much for TV when there are so many good cable TV alternatives that exist. Plus, it just keeps getting better and better as more services are being created all the time.

Related: Get Paid To Watch Movies

What is the best alternative to cable? How do I get rid of cable and still watch TV? What is the best streaming service?

The best alternative to cable TV will depend on what you like to watch best. For us, we simply like having Netflix when there is something on there that we like to watch.

We’ll also occasionally pay for Philo and Starz as well when there is a TV show that we want to watch, such as 90 Day Fiance, Outlander, or want live TV streaming services.

There’s no right or wrong answer – simply choose what has the shows and movies that you want to watch. There are many, many different options for cable TV alternatives, as you probably have noticed in the list above. Not everything will fit everyone, so it is all about finding what suits you the best.

What are the worst cable TV alternatives?

The worst cable TV alternatives are simply what you will not use. No need to waste your money even further!

Signing up for each and every single streaming service and option above will end up costing you a lot of money, which will make you go backwards. I know some people who spend hundreds of dollars a month on monthly streaming services because they thought it would be better than cable.

However, that’s a lot of money to spend, and there’s probably some overlap on the various streaming options anyways. You may want to start with just one or two in order to find what is best for you and your family.

Do I need an internet connection for cable TV alternatives?

For many of the options above, you will need an internet connection in order to watch your favorite TV shows and movies.

With a digital antenna, you do not need an internet connection.

But, for streaming services, you will need to have internet.

What is the least expensive way to watch TV? What is the cheapest way to watch TV without cable?

The least expensive way to watch TV is to probably by visiting your library and seeing what services that they offer. Other options may include:

If you already pay for and use Amazon Prime for other reasons (such as quicker shipping), then watching TV through Amazon may be an affordable option for you because it is a service that you are already using.
Netflix is a very popular option due to its low cost and wide selection of movies, documentaries, TV shows, and more. If you are going to go with just one option, then Netflix may be a low cost and easy choice for you.
If you’re looking to spend nearly no money over the years, then finding a digital antenna may be a good option for you. This is because you can spend money by simply buying a digital antenna upfront, and then having to spend no additional money in future months to watch TV.

There are many other great options to save the most money and watch TV without cable or satellite as well.

What equipment do I need to get rid of cable TV?

The equipment that you need will vary depending on what TV service you want to use.

If you just want to use a digital antenna, then that is all that you will need. This is how you can cut the cable and watch TV for free.

For some subscription services, you may need some sort of device. For example, an Amazon FIRE stick, Google Chromecast, a Roku box, a Smart TV, or something else.

For us, we have a Smart TV, so we are able to watch Netflix, YouTube, Hulu, and so on, right from our TV with no issues and no additional devices needed. If you do not have a Smart TV, then simply getting something such as a Roku box or Apple TV can help you get what you need at an affordable price without having to upgrade your TV (because that can be expensive, especially if you do not need one).

Why getting rid of cable and finding cord cutting options will change your life.

As you can see, there are tons of tv options other than cable so that you can find cheap tv service! There are options like going to the library and watching series straight from the source that are completely free. You can also find less expensive options like Hulu, Netflix, and Disney+ and still have on-demand access to the shows you want.

Finding ways to replace cable is easy!

That means that if you want to get rid of cable to save money, it’s very easy to do. No more excuses! There are dozens of channels and hundreds of movies you can save money on.

Paying for one year of cable can easily cost $1,200 or more – this is so much money!

You can find an alternative and use your savings to put towards debt, invest it for retirement, or it can be used to pursue your passions. Putting your money towards these things can cause less stress, and that’s something we all need to reduce.

Or, if you really want to change your life, what if you got rid of TV and cable streaming services altogether?

You can spend more time outside, visit more with friends and family, get more sleep at night, and live healthier both mind and body.

Now, you can still rent a movie or pay for a month of Hulu here and there, but living without TV for longer periods is something you can try if you want to find a way to change your life.

What is best option to replace cable TV?

I hope you enjoyed today’s article on the best alternatives to cable TV and best cable replacement service. As you have learned, there are many, many different options depending on what you are looking for. If you want to learn how to get rid of cable and still watch tv, then it is definitely possible!

There are alternatives to cable TV for sports, ways to watch TV without cable or satellite, and more. Now, there are worst cable TV alternatives, but this just depends on who you are and what you like to typically watch.

Your different options may include things such as Netflix, YouTube TV, Philo, Roku, Sling TV, Hulu, fuboTV, HBO, DirecTV Stream (used to be called AT&T TV), Paramount+, Disney+, HBO Max, Discovery, channels for sports fans, DVDs, and so much more.

Luckily, in today’s world, there are many, many different options for getting rid of cable or satellite and saving money.

Are you thinking about getting rid of cable? What alternatives to cable TV do you have?

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

May 25, 2023 by Brett Tams

Last Updated: July 2, 2017 BY Michelle Schroeder-Gardner – 24 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

A few months ago, Joe from Retire by 40 published the quiz How Serious Are You About Early Retirement? I took the quiz (BudgetsAreSexy did too!) and found it informative and entertaining. I thought it would be fun to share my answers with you and let you know about the early retirement quiz, if you haven’t taken it yet.

Early retirement is a great financial goal to have.

For us, I don’t know when or if we will ever completely stop working, but having the option to is important.

Looking at early retirement as a goal, whether you stop working completely or not, means financial stability is a top priority for you. You just never know what may happen, and that stability is always a great thing to have.

Here are the directions for the quiz: “You need to keep track of your own score for this quiz. The questions are just TRUE/FALSE. You get a point for every TRUE. Then simply put your score in the poll at the end.”

Here’s the quiz:

1. You know your net worth

Yes, I know my net worth!

Tracking your net worth with a platform such as Personal Capital is a great way to stay on track and stay motivated.

2. You have a Roth IRA

Yes!

3. You have no consumer debt – car, credit card, etc…

We have no debt. We do some travel hacking (learn how to get to Hawaii for less than $25) but we pay off our credit cards every single month.

And, yes, even our RV was paid for with cash.

4. You have a “retire by” date

We have a date, but we are not super strict about it. We could retire right now if we wanted to, but we have chosen to keep working because we love what we do so much.

5. You have a side hustle or two

I have many different streams of income. However, I don’t currently have anything outside of my business going on. I think I’ll still give myself a point for this because I used to side hustle like crazy 🙂

Related: How To Make Extra Money

6. You have passive income

Yes, I have passive income through affiliate marketing on my blog. This isn’t considered 100% passive as I do need to do a little bit of work, but I’m still going to count it.

Plus, I also have retirement accounts that pay dividends.

7. Your investments are worth more than your house

Yes, our investments are worth more than our RV.

8. You have a post retirement plan – volunteer, etc…

We currently live a very exciting life and will probably be doing something quite similar even when we retire.

9. You save 50% of your household income

Yes, we currently save over 90%.

10. You have backup plans

Yes, we do have a backup plan. If things go downhill, then I am all about workamping – volunteering at campgrounds at national parks and state parks in return for a free campsite and electricity 🙂

Bonus point – You cut your own hair

Ha, nope! My hair is my one splurge. I like to have it colored different ways (multiple times a year), and I do get a haircut about once a year.

Early Retirement Quiz Scoring:

0-5: Skeptic. Do you believe in early retirement? Perhaps it’s not a goal of yours?
6-7: Novice. You’re on your way to early retirement!
8-9: Committed. You’ll get to early retirement soon.
10+: Driven. Early retirement is definitely on your mind, or you may even already be retired!

I scored 10 points on this early retirement quiz. And, early retirement is definitely something I am aiming for, although it’s just the independence that I’m crazy about because I still do love to work.

Now, even if your score wasn’t what you hoped, you can still work towards early retirement. It probably just means that you need to be aware of where you are at and where you want to be. Remember, being aware of your situation is the first step!

What was your early retirement score? Share in the comments and let’s start a discussion!

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

May 25, 2023 by Brett Tams

Hello! Dividend investing is a very interesting topic. Today, I have an expert who has appeared on Forbes, Motley Fool, MSN Money, TheStreet, and more, and he is going to share tons of great information on this subject. You may remember him from his previous contribution How I Became A Successful Dividend Growth Investor. This is a guest contribution by Ben Reynolds. Ben is the CEO of Sure Dividend. Sure Dividend helps people build high quality dividend growth portfolios for the long run.

Early retirement is the financial state of being where you don’t have to work. You only work if you want to.

Early retirement is reached when your passive income exceeds your expenses. The average retirement age in the United States is 63.

Retiring at any age is an accomplishment, but I think you will agree with me when I say that the earlier you retire, the better.

There are 6 key factors that determine how long it will take for you to reach retirement:

Your income (how much money you make)
Your savings rate (the percentage of your income you save)
Your expenses (how much money you spend)
The size of your investment account (how much you already have saved)
Your investment returns (how fast your investments are growing)
The yield on your investment portfolio (how much your investments pay you)

Making Sense of Cents has phenomenal information on increasing your income and savings rate, and reducing your expenses. These are all vital aspects of retiring early.

The size of your investment account now is based on your past decisions and for some people, being born into a wealthy family. It is what it is; you can’t change it.

How you invest will determine your investment returns and the yield on your investment portfolio when you are (early) retired.

I believe that dividend growth investing is uniquely situated to offer individual investors a way to build a portfolio for rising passive income that will lead to early retirement (depending of course on your income and expenses).

Related: What Are Dividends & How Do They Work? A Beginner’s Guide

What Is Dividend Growth Investing

Dividend growth investing is what it sounds like. The core idea of dividend growth investing is to invest in businesses via the stock market that are likely to pay growing dividends over time.

As an example, Johnson & Johnson’s (JNJ) dividend history over the last 20 years is shown below:

Source: Johnson & Johnson Investor Relations page
Note: The 2017 number shows dividend payments to date. It will be higher than 2016 by the end of the year.

As you can see, Johnson & Johnson shareholders have seen their dividend income grow from $0.43 a share in 1997 to $3.15 a share in 2016. This is a 7.3x increase. More importantly, that 7.3x increase in income came without buying additional shares.

Dividend growth investing has a hidden benefit. It focuses you on the business, and not on the stock price. This means less (and hopefully no) panic selling during recessions. In fact, many dividend investors take advantage of market declines by purchasing into great dividend growth stocks while they are trading at a discount.

The reason dividend growth investing matches up with building an early retirement portfolio so well is because it provides rising income over time. This is a powerful feature that is not a characteristic of investing in bonds, gold, Bitcoin, or stocks that don’t pay dividends.

Reinvesting Dividends and Early Retirement

A portfolio that creates rising income over time is powerful. You can ‘super charge’ growth by reinvesting dividends back into the portfolio.

When Johnson & Johnson pays its dividend, instead of taking it in cash, you can use that dividend to buy more shares of Johnson & Johnson. You can see how this can greatly increase your passive income stream in the future in the example below.

Johnson & Johnson currently has a dividend yield of 2.6%. The company has grown its dividend at 11% a year from 1997 through 2016. Forecasting 11% a year growth ahead may lead to disappointment; there’s no guarantee Johnson & Johnson will continue such strong growth.

Say the company grows its dividend at ‘just’ 7% a year going forward. If you are reinvesting dividends, your income stream from Johnson and Johnson will grow at 9.6% a year. Your income growth is simply the expected dividend per share growth rate plus the company’s current dividend yield (if dividends are reinvested).

With 9.6% a year compounding, your income from Johnson & Johnson will double about every 8 years. I don’t know many other situations outside of dividend growth investing where you have a high likelihood of doubling your income in under a decade.

Strong income growth over time is why dividend growth investing can help you achieve early retirement. It isn’t instantaneous, but it is achievable.

Where to Find Great Dividend Growth Stocks

Johnson & Johnson is a strong dividend growth stock… But it’s not the only one. There are other great businesses with long histories of increasing their dividend income every year.

My favorite place to find potential dividend growth stocks worthy of an early retirement portfolio is the Dividend Aristocrats Index.

The Dividend Aristocrats are a group of 51 stocks in the S&P 500 with 25+ consecutive years of dividend increases. A few examples of well-known Dividend Aristocrats are below:

Aflac (AFL)
3M (MMM)
Coca-Cola (KO)
Wal-Mart (WMT)
Exxon Mobil (XOM)
Procter & Gamble (PG)
Johnson & Johnson (JNJ)

The Dividend Aristocrats index is made up of businesses with long histories of rising dividends. A company simply cannot pay rising dividends for 25+ consecutive years without a strong and durable competitive advantage.

Why do competitive advantages matter? Warren Buffett himself says they are the key to investing.

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” – Warren Buffett

Not surprisingly, the Dividend Aristocrats Index has outperformed the S&P 500 over the last decade by 2.8 percentage points a year… With lower volatility.

Source: S&P Fact Sheet

To put this into perspective, $1.00 invested in the Dividend Aristocrats index 10 years ago would be worth $2.59 now, versus $2.00 for the S&P 500 (both numbers include dividends). Moreover, your portfolio wouldn’t have had as severe price swings, because the Dividend Aristocrats index has lower volatility than the S&P 500.

Final Thoughts

There’s no question building a portfolio for early retirement can be complicated… But it doesn’t have to be.

By investing in individual great businesses and holding them for their rising income potential (dividend growth investing), you can build a portfolio that is very likely to pay you rising income over time.

And importantly, investing in individual stocks eliminates costly management fees from mutual funds and ETFs so your money is left to compound in your account, where it belongs.

The bottom line is that retirement requires a stream of income in excess of your expenses. That income stream must also grow at least as fast (though preferably much faster) than inflation. Otherwise, you lose purchasing power – and you won’t stay retired for long.

Dividend growth investing can create growing income streams that are likely to rise well in excess of inflation. The unique characteristics of dividend growth investing are a compelling match for those seeking early retirement.

Are you interested in dividend investing? Why or why not?

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

May 25, 2023 by Brett Tams

If you work for a company that has a pension, should you be worried?
What protections do you have?
Will all the money you have been paying into your retirement just be gone?
Recently, American Airlines filed for Chapter 11 bankruptcy leaving many wondering “What happens to their pension?“.
Whether you’re an employee of theirs or any other company that offers a pension, here’s what you need to know.

Insurance On Your Pension Plan

Fortunately, it is not as bad as most people think…maybe. There are safeguards in the United States to prevent you from losing your pension plan.
In the United States, every defined-benefit retirement plan is insured, at least to a point. Most will receive all or at least most of their company pension even if your company goes bankrupt. However, in some cases, it may not be every penny you expected.
(Also, be sure to check out my article on, Should I Roll My Pension Into an IRA for some options on your pension plan.)

What Happens When a Company Goes Bankrupt?

When a company goes bankrupt they have two choices. They can reorganize and try to stay in business by reducing costs and attracting new investors, or they can liquidate.
The pension plan is usually terminated in reorganization and always terminated in liquidation.
So, then what happens? A federal insurance agency called the Pension Benefit Guaranty Corporation (pbgc.gov) takes over the pension payments.
Here’s some information on the PBCG taken from their site:

The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 29,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns.

Only employees with the largest pensions actually take a hit. The Pension Benefit Guaranty Corporation maximum annual payment, which rises with inflation, is $54,000 this year for workers who retire at age 65.
As with any insurer, the PBGC has some restrictions. For example, it prorates recent pension increases.
However, in all, 84 percent of retirees get their full pension even after bankruptcy.

A Few Rare Cases Under Reorganization

In a few rare cases of a company bankruptcy reorganization, the employer maintains his/her pension plan. That normally only happens for one of three reasons.

The benefit is low
Employee turnover is high
The pension plan is new

Avoiding Bankruptcy is Better For The Company

In most cases, however, it is always better for the company to avoid bankruptcy altogether. In December of last year, Congress gave some help in this direction by relaxing the 2006 Pension Protection Act’s strict rules governing pension funding.
As counter-intuitive as it may seem, this is one move that endangered workers should embrace.
As a result of this move, according to Dallas Salisbury, president of the non-partisan Employee Benefit Research Institute, “Given the economic downturn, employees are better off than if the company was forced to make a large pension contribution. It’s better to stay in business than make a pension contribution.”

American Airlines Pension

In American Airline’s case, they are filing for Chapter 11 bankruptcy protection. In this case, the PBGC may need to step in and assist with their pension obligations.
The Pension Benefit Guaranty Corp., created to protect private retirement benefits, may be unable to cover the loss because Congress has limited the size of pensions it can pay, Director Josh Gotbaum said in a statement.

“Unfortunately, when the agency assumed airline plans in the past, many people’s pensions were cut, in some cases dramatically,” Gotbaum said in the statement. The PBGC will encourage American to “fix its financial problems” and keep its pensions intact, he said.

In the meantime, AMR employees seem to be protected. But a quick look at the numbers doesn’t seem too reassuring.
Recent numbers show that they have about $8.3 billion in assets to cover the $18.5 billion in pension liabilities. If AMR has no choice and has to terminate the plan, that would leave the PBGC on the hook for a cool $17 billion.
Chump change for the PBGC, right? Don’t be so sure…

Strength of the Pension Benefit Guaranty Corporation

Just like the FDIC, the financial strength of the PBGC hardly ever gets questioned. Unfortunately, these are unique times and it seems that no entity is out of harm’s way.
Lowering interest rates and rising corporate defaults has led to a $33.5 billion deficit in the first quarter of 2009 for the PBGC. This is the largest deficit for the 35-year-old agency which is an increase from the $11 billion deficit ending fiscal year 2008.
Acting director Vince Snowbarger says,

“The PBGC has sufficient funds to meet its benefit obligations for many years because benefits are paid monthly over the lifetimes of beneficiaries, not as lump sums. Nevertheless, over the long term, the deficit must be addressed.”

The Deficit Continues

For 2011, the PBGC just encountered it’s largest deficit while insuring 1 out of every 7 Americans. The Pension Benefit Guaranty Corp. was quoted as saying it ran a $26 billion imbalance for the budget year that ended Sept. 30.
Their pension obligations rose by $4.5 billion as they currently insure over 44 million Americans. Does it make you nervous? It would make me.

How Does This Affect You?

If your company files for bankruptcy or you fear that it will, I would contact the PBGC and talk to them directly.
Be sure to visit their website frequently and check for updates. You are basically in their hands and you have limited choices.
If you have the option, consider rolling your pension into an IRA to get it out of your company’s hands. I’ve had many clients do this so that they never had to worry about this.
Be sure to consult a financial planner and/or tax advisor before implementing this step.

Source: goodfinancialcents.com

Apache is functioning normally

May 25, 2023 by Brett Tams

Are you wanting to learn how to be productive?

Are you feeling like you aren’t as productive as you usually are? Or, perhaps life is really busy right now and you want to be able to manage it all better.

Many people struggle with how to be productive. We all have lots of things to do and sometimes we can accomplish them all, and other times it is very difficult.

I go through productivity spurts.

At times, I feel like I can accomplish anything and everything, and other days I don’t even know what (if anything) I did all day.

This is an area that I am constantly working on, and perhaps you are too.

Sometimes I am distracted by so many different things that it has caused me to waste a huge amount of time. Therefore, I have not been able to live in the moment like I would really like to.

Currently, though, I am trying to be as productive as I can, and trying to get ahead on as much work as possible. We are about to sail away from Florida after a very busy summer traveling in the van, and being more productive now means I’ll have a better time when we are sailing.

That is one of the best benefits of learning how to be productive – you will have more time to focus on what you really love doing. You won’t be stressed out by things you still need to do, and you can just live in the moment without any distractions.

However, learning how to be productive can be very difficult for some people. It’s easy to get overwhelmed by a long to-do list. Negative thoughts can hold you back from believing you can accomplish your goals or tasks. And, social media can be a huge distraction.

While those things can prevent you from being productive, they are also a huge waste of time.

And, the thing about wasting time is that it can hold you back from reaching your goals.

By learning how to be productive, you may be able to:

Begin a side hustle.
Eliminate your debt.
Spend more time with your those that you love.
Learn a new skill.
Enjoy life more.
Travel more.
Increase your income.
Reach your dreams, and more!

If you start today with just one of the ideas for how to be more productive, you will be that much closer to reaching your goals. So, when you read through this article, pick one idea you’d like to try today. You can try more once you see how well just one of them works.

Related reads:

Hopefully the productivity tips in today’s article will help you find hours in your week, no matter how you lose them.

How to be productive – 17 tips for success

1. Realize how much time you have to work with.

The first step is to be realistic with yourself.

Everyone has the same 24 hours in a day, but others may be more limited with their time. I understand that different situations can make a person quite busy, so you need to be honest with yourself about much available time you have.

You don’t want to run yourself ragged, forget about the things that truly matter in life, hurt your work performance, and more.

However, many people do have extra time in their days but just don’t realize it. For one week, I recommend keeping track of the time you spend on various tasks and see how much time you waste and how you can improve.

You’ll most likely be very surprised!

2. Leave your negative outlook behind and find positivity.

I know what you’re thinking – How is this related to learning how to be productive?!

According to the National Science Foundation, the average person has about 12,000 to 60,000 thoughts per day. Of those, 80% are negative and 95% are repetitive thoughts. (statistic found on Medium)

That is a lot of time wasted on negative thoughts!

Lately, though, I’ve been realizing that I waste a lot of time with negative and repetitive thoughts. It’s been crazy to realize how easy it is to turn something so little and simple into something negative.

This is one of the productivity tips that may be hard to adapt to, but learning to be positive will really help you in the long run.

Instead of focusing on negatives like regret, guilt, comparisons, and more, you can be more productive by using this time for things that actually matter.

When you find that you are thinking in a negative way, take a moment to think of something that makes you happy. Is it your family? Do you love what you do? Did someone do something nice for you today?

A positive outlook can be life changing.

Related articles that will help you learn how to have a productive and positive day:

3. Check your email less. Way less.

This is one area that I have always struggled with. Even though I am guilty of checking my email numerous times throughout the day, I am starting to take my own advice and checking it less often.

I think the problem for me is that I feel obligated to keep checking my email in case something pops up with my business or if a reader has a question. I want to be as available as much possible, but that means I am constantly checking my email.

While it may not feel like you are spending that much time checking your email, the time and focus it takes to switch back and forth can really add up. It can also cause you to lose your train of thought when you should actually be doing something else.

If this is an issue for you and you want to learn how to be productive, I recommend setting time aside throughout the day to check your email. You can even set a rule that you only check after you finish a task. You can also turn off email notifications if they are distracting you.

You may want to work down to only checking your email just a few times a day, or even (EEEK!!!) once a day.

4. Unsubscribe from unnecessary emails.

Subscribing to emails is really easy to do. We’ve all done it to get a coupon code, at the cash register to get a receipt (isn’t that annoying?!), and sometimes you just mysteriously land on an email list.

Over the years, I’ve subscribed to plenty of different websites and companies. I got hundreds of unnecessary emails every day, and even though I set up tabs to organize my email, I was still spending so much time filtering through them.

It was tedious, and they were mostly junk. But, sometimes real emails got lost in the mix as well!

So, I unsubscribed from almost all emails, except for blogs that I enjoy and whatever is absolutely necessary.

Everything else has been removed.

If you find that you are spending too much time everyday checking, reading, and deleting emails that it isn’t allowing you to live in the moment and live your best life, I definitely suggest unsubscribing to the ones that aren’t meaningful to you.

You can find an unsubscribe button on the bottom of most emails, and it just takes a couple of clicks to get off an email list.

5. Wake up earlier.

Some say that they are most productive early in the morning. If this is the case, then use this to your advantage!

When I had my day job, I would usually wake up around one to two hours before I had to start getting ready for work. I would use this time to work on my side hustles, which included replying to emails, brainstorming ideas, managing my blog, finding mystery shop jobs, and more.

Sometimes, waking up early was extremely rough, but it was nice to get everything done before I went to work. This was also one of the ways I learned how to be productive at home, because I could also use this time to straighten things up around the house or clean.

If you’re not a morning person, you can always try to fit in time before you go to bed. Often I would even work on my side hustles for a few hours before I went to bed.

Related: 9 Tips To Wake Up Early & Why It Feels So Good

6. Organization is your friend.

Your productivity can be greatly influenced by how organized you are.

Here are some surprising statistics I found from Simply Orderly about being unorganized:

The average person spends 12 days per year looking for things they can’t find.
Every day, the average office worker spends 1.5 hours looking for things.
In a recent survey, 55% of consumers stated they would save anywhere from 16 to 60 minutes a day if they were organized.
23% of people pay bills late and have to pay late fees because they are unable to find their bills.

Becoming more organized can be hard at first, but it can really help you reclaim time in your day. If you want to learn how to be productive by organizing your life, here are several helpful tips:

Put things away when you are finished using them.
Make a schedule and stick to it.
Write things down in a notebook or planner so you don’t forget anything.
Regularly tidy things up.
Switch to a minimalist lifestyle.

Like I said, learning good organizational skills can be difficult, and you will have to commit if you really want to take part in this tip. But, being organized will ensure that your living and working spaces are functional, and it will probably even clear some mental clutter.

Posts related to minimalist living:

Also, organize your finances!

This is one of the tips that won’t just help you learn how to be productive with your time, it will help you gain control of your financial situation. Organizing your finances includes things like setting up auto pay on your bills, creating a budget, and using an online platform to show you all of your accounts.

My favorite online tool for keeping track of my finances is Personal Capital. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation. You can connect accounts such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more. And, it is FREE.

7. Use short gaps in your day wisely.

Everyone has gaps of time in their day. This could be a gap before you have a meeting, a gap between your day job and night classes, a gap before you have to pick up the kids from school, or something else.

Maybe you have 15 to 30 minutes or an hour. Most people will just plunk down on the couch and watch TV or browse Facebook.

However, if you want to learn how to be productive, find ways to wisely use these gaps in your day.

Here are some examples of how you can take advantage of short gaps in your day:

You can use a gap to write out tomorrow’s to do list.
You can pay a bill or two.
If you’re a freelancer, you can use this time to bill your clients.
Use this time to schedule appointments.
Make a meal plan and grocery list.

8. Watch less TV.

Fun fact: I haven’t watched TV in over a month!

Less fun fact: I’m not perfect and often binge watch TV shows when I happen to find a good one.

TV absolutely kills my productivity level. I know how easily I can get sucked into the world of Netflix, so I haven’t even tried watching anything lately.

I love a good TV show, and I can honestly say that I once wasted a lot of time by watching too much TV. The average person watches TV for over 35 hours per week! I’m not sure if I was watching that much, but I know I was close.

Can you imagine what you could do by reclaiming just half of those hours each week?

Cutting out the amount of TV you watch will really help you if you want to learn how to be more productive. By cutting back on TV, you will have a few more hours everyday to focus on more important things.

Related: 16 Alternatives To Cable TV That WILL Save You Money

9. Spend less time getting ready.

Being more productive often involves saving time on littles aspects of your daily life. These things are often overlooked and can add up to a lot of wasted time, like taking forever to get ready. There are lots of people who spend way too much time picking out outfits and trying to get ready, and I was once one of them.

Since we had to downsize to travel full-time, I had to get rid of a lot of my clothes. It was a little hard at first because I had so many! But, by having less clothing options and/or choosing your outfit the night before, you can save valuable minutes each day.

Before we downsized, I couldn’t even remember all of the clothes I had, but now I save time each day because I know what I have and what looks good together.

For more information, I recommend checking out Becoming Minimalist’s blog post, Capsule Wardrobe: Why Some Are Wearing the Same Thing Every Day.

10. Have a to do list and use your calendar.

I love my constant to do list and having a full calendar.

Without these two things in my life, I would feel lost, unorganized, and probably even confused about what to do!

Yes, I rely heavily on my to do list, but putting a to do list together doesn’t have to be hard. I keep my to do list on my phone, and it’s just a simple list of things I need to do throughout the day, week, month, and year. I can even set reminders so I don’t forget when things need to be done. Others find that planners work for well for them too.

This is a tip that will help you learn how to be productive in every aspect of your life, as you can have a to do list for work, home, etc. Your to do list will keep you on track so you don’t forget what needs to be done on a daily, weekly, or monthly basis. This will keep you motivated and working towards your goals.

Related: 15 Of My Best Working From Home Tips So You Can Succeed

11. Make sure your to do list is doable.

Even though I have an on-going to do list, many people benefit from having a smaller and more approachable list.

You can start by asking yourself, “is this something I can really do today?” If the answer is “yes,” then add it to your list. If you are unsure, you might want to break it down into smaller tasks or save it for another day.

By having a smaller list, you may feel a greater sense of accomplishment knowing that you’ve crossed everything off your list for the day, even if it is just a couple of things. This can motivate you to work on bigger tasks and goals over time.

12. Practice self-care.

Yes, self-care is important for your productivity levels!

Self-care is simply doing something to protect your mental or physical health. It can be something like taking a nice long bath, meditating, drinking more water, etc.

It’s spending a little bit of time to put yourself first.

When you are busy or overwhelmed with other aspects of your life, self-care is one of the last things you think you should do. But, when you take a small break to take care of yourself, the effects can ripple out through the rest of your life.

You may find that your stress is reduced, you’re more productive, happier, and more.

This tip is often overlooked when people want to learn how to be productive, but it’s always important to take care of yourself.

13. Procrastinating doesn’t help anyone.

Procrastination can waste time and kill your productivity as you may find anything else you can possibly do before completing a certain task.

Then, you might do things that waste even more time, such as just standing around, watching TV, cleaning the same area you’ve already cleaned 10 times that day, and more.

People procrastinate for all sorts of reasons, like anxiety, avoidance, etc. When you figure out why you are procrastinating, you can then create an action plan. By focusing on what you need to do, you will stop wasting time!

14. Get off social media.

Okay, you’re probably thinking, “there’s no way that I can cut out social media!” I’m not saying that you need to cut it out entirely, but if you spend a little less time everyday on social media, you will find valuable hours each week.

Social Media Today found that the average person spends nearly two hours a day on social media. When you add all of that time up, it equals to wasting over 5 YEARS of your life on social media. That’s shocking!

If you find that you are spending too much time on social media and that it’s preventing you from being productive, you may want to close the accounts you are spending too much time on. You can even create a time block so you cannot access your accounts during certain periods of the day, and so on.

15. Singletask more.

There are some people who say that learning to multitask can help you learn how to be productive, but I don’t 100% agree with that.

Now, some people can multitask successfully, but many people cannot with the large amount of time it takes to refocus on a new task. So, when you are constantly switching back and forth, you waste time refocusing.

This is one tip that is helpful if you want to learn how to be more productive at work.

It’s best to realize your strengths and weaknesses to know whether or not multitasking actually helps you save time. For myself, I’ve found that focusing on one thing at a time is actually how I save the most time when working.

16. The snooze button is probably hurting you.

Getting an extra five minutes of sleep after your alarm goes off isn’t going to change your life. There are many scientific studies proving that hitting the snooze button does nothing good for you.

I know many people who set their alarms to go off anywhere from 30 minutes to an hour before they actually want to wake up.

I’m not going to lie. I used to do this as well and thought it was the only way I could get up. It definitely did not work, as I always felt extremely groggy and sometimes even more tired!

If you want to learn how to be productive, wake up when your alarm first goes off to use those minutes valuably. If you are so tired in the morning that you feel you need to hit the snooze button, then you should either start going to sleep earlier in the evening or set your alarm for when you actually need to get out of bed.

17. Know your peak hours.

Each of us has certain hours of the day that we work more efficiently. For some people, it’s in the morning, while others work well late at night. I’ve even read that many people are the most productive right before lunch because they are hungry.

You can learn how to be productive by spending a week paying attention to the times of the day when you are most focused. Those are your peak hours, and most people have two peak hours per day.

Knowing your peak hours will help you learn how to concentrate and complete high-priority tasks. This will help you get the most important or complicated things done.

What are your top tips on how to be productive? Do you think you waste time each day?

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

May 25, 2023 by Brett Tams

72 is a very good number

Ask any financial advisor about 72t and I’ll bet you’ll see them cringe.

It’s not a popular planning method, mostly because it comes with lengthy restrictions that, if violated, can lead to severe penalties.

Clients don’t like paying penalties. Advisors don’t like when their clients pay penalties. 72(t) has the potential if done wrong, for the clients to pay a huge chunk of penalties. See why we cringe about 72(t)?

Some of you may have no clue what 72(t) is. If you are not planning on retiring early (before the age of 60), then skip this post and come back another day. 🙂

If you are in the financial position to retire early and have a bulk of your assets in retirement accounts, then 72(t) may be of help to you. Let’s take a look at the 72(t) early distribution rules.

What in the Heck is 72(t)?

Most often when you take money from your retirement account before you turn 59 ½, you are assessed a 10% penalty on the top of ordinary income tax. One exception (others include: first-time home purchase, college tuition payments, disability) to that is a 72(t) distribution that is a “substantially equal periodic payments”.

Clear as mud? I thought so. Moving on……

Read more on How to Withdraw From Your IRA Penalty Free

How Does the IRS Consider 72(t)?

The IRS calculates your “substantially equal periodic payments” by using one of the three methods that the IRS has determined and then take your payment on a set schedule for a specific time period.

It is required that you take those payments for either 5 years or when you turn 59 1/2, whichever comes later.

For example, if you start taking your payments at the age of 52, then you must do so for 8 years. Someone who starts at 57, must do so till the age of 62.

72t tables

72(t) Real Life Example

In the 10 years I’ve been a financial planner, I’ve only executed 72(t) a handful of times. The concern is having to lock in your withdrawal rate for a minimum of 5 years is longer than most advisors are comfortable with- myself included.

Recently, I had a potential new client that was getting an early buyout from his job and was considering using 72(t) for a portion of his IRA. Here’s are some of the details (name and some of the data have been changed for privacy concerns).

Paul born 8/21/55 and $720,000 that he will receive in a lump sum distribution from his employer. He would like to do a 72(t) from age 57.3-62.3. He needs about $2,000 a month until 63.5 where he will have the remainder in an IRA. Paul also had $140k in his 401k.

How 72(t) Distributions Work

The 72(t) plan must not be modified until 5 years have passed from the date of the first distribution for those who will reach 59.5 before the 5 year period is completed. However, it is not clear whether Paul plans to take the 72t distributions from the employer plan or from a rollover IRA.

If the 72(t) plan is needed, the best approach is to do a direct rollover from the plan to a rollover IRA, determine what IRA balance is needed to generate 24k per year using the amortization plan, and then transfer that amount to a second IRA and start the plan.

The original rollover IRA can be used for emergency needs to prevent the 72t plan from being broken if he needs more money. Employer plans do not provide 72(t) support and may not offer flexible distributions. They also will not allow funds to be rolled back in the event too much is taken out due to an administrative error.

Note: that if Paul separated from service from the employer sponsoring the qualified plan in the year he would reach 55 or later, distributions taken directly from the plan are not subject to penalty, and a 72t plan could be avoided.

But for that to be practical the plan must allow flexible distributions until the 5 year period ends. If the plan required a lump sum distribution, even though the penalty would not apply, a distribution of 120,000 in a single year would inflate his marginal tax rate and that might well cost more than the 10% penalty.

If a lump sum is required, then a direct rollover to an IRA should be done before starting a 72(t) plan.

Some of you may be considering initiating 72(t) distributions. 72(t) distributions take careful planning and consideration.

Before you lock in those payments, there are some alternatives that you may want to explore:

72(t) Distribution Alternatives

Just because you can, doesn’t mean you should. Definitely look to see if there are other things you can (should) do first.

Here are a few examples.

Leave Your Job Early

If you leave your job January 1st of the year you turn 55 (50 for certain government agencies), you are allowed to pull out lump sum distributions out of your company retirement plan penalty free.

Notice I said retirement plan and not IRA. Once you roll over into an IRA, you lose out on that opportunity.

Consider leaving a portion of money in the retirement plan as a precautionary. Or you can just take a lump sum distribution out of the plan and pay the tax and park it in a high-interest savings account for emergency purposes. Do remember that you will pay ordinary income tax on that distribution.

Don’t Forget About After Tax Contributions

You can also tap into after-tax contributions to your 401k, non-deductible IRA contributions, or after-tax contributions to your Roth IRA. Consider these penalty-free options first prior to locking in your payments.

Net Unrealized Appreciation

Even a bigger secret than 72(t) is NUA. What is Noo-uhh you ask? Well, it is the acronym for Net Unrealized Appreciation. Get it yet? Didn’t think so. NUA pertains to employer stock that you have in your retirement plan that may have an extremely low cost basis.

You may be one of the lucky ones that started working for the company prior to them going public and you’ve seen your company stock double and split more times that you can count.

If you utilize the NUA on your stock you will just be penalized on the basis, not the total value of the stock.

For example, if you have company stock that is valued at $100,000 but your basis in the stock is only $20,000, you would be only penalized on the $20,000 if you took it early if you are under 59 ½.

The remaining gain ($80,000) would be taxed as a long term capital gain when you decided to liquidate it, not ordinary income. That could be the difference between 15% and 35% in taxes, depending on your tax bracket.

Warning! Once you roll over your employer stock into the IRA, you forfeit your NUA.

These are just a few of the alternatives that one can explore before committing to the 72(t) distribution rule.

The Final Call

The verdict is still out whether the client and I are going to do 72(t). Since he has a good amount in his 401k and his wife has a nominal 401k, as well (not mentioned above); I suggested using that money first.

Since he’s retiring early, he can avoid the 10% early withdrawal penalty so as long as the money is distributed from his 401k. Once you do a 401k rollover to an IRA, you lose that option.

Out of curiosity, I went to Bankrate.com and used their 72t calculator to see how much we could get with his retirement account. Below are some of those results.

72t calculator

Here’s a sample amount that one could withdraw from your IRA using 72(t). Note the interest rate of 2.48%. That amount was already entered in on Bankrate’s calculator.

You have the ability to choose your own interest rate but be careful. You want to choose a rate that is normal and sustainable based on current market and economic conditions.

Have you retired early? Would you be comfortable executing 72(t) distributions for 5 years?

Source: goodfinancialcents.com

Apache is functioning normally

May 25, 2023 by Brett Tams

Today, my friend Jillian, from Mini-Retirements Mastered course and Montana Money Adventures, is sharing a guest post about mini retirements. This subject is something I find to be super interesting and she is definitely the expert at it! Below is her story and advice.

Fifteen years ago, I fell in love with my husband and we started planning our life together. But I had this crazy idea. What if we took mini-retirements? Mini-retirements go by many names: Sabbaticals, Gap Years, Time Off.

Essentially, it’s all the same idea: taking time away from the 9-5 to focus on things that really matter to us. It could be for a year or two, or just a month off.

The problem? We were in NO place to be thinking about mini-retirements! That first year we had over $50,000 in debt and only earned 12k. The next year was a little better, but not by much. Still, I held on to that dream.

I just turned 35, and we are currently in our 5th mini-retirement. We have taken a few short ones (month long), some medium (6 months) and this one is going on two years now. Mini-Retirements might seem almost impossible, until you understand how to plan, prepare and execute them. After that, you’ll be able to sprinkle them in every few years and just maybe grow your net worth in the process!

Four common misconceptions about mini retirement

1. You have to be a high-income earner

This just isn’t true! Our combined income averaged between 30k-60k over the last 15 years. Without a high income, you might need to start with shorter one-month mini-retirements. But there is a LOT of really cool things you can do with an extra month off. When I was 24, I took a month off from my job to travel cross country with my best friend. It was an incredible trip! And we did it for under $2,000.

2. You need to be self-employed

All five of our mini-retirements we either negotiated off from a regular employer or walked away from traditional employment. In my free video training, I walk through the exact process to negotiate a month off from an employer, even if your company doesn’t have a sabbatical program. This can be scary if you have never done it, but with a little preparation, it’s totally possible!

3. You can’t take time away if you have debt

It might take you ten years to pay off your student loans, or 30 years to pay off your mortgage. If there is something you are passionate about pursuing, I don’t suggest pushing that off until you turn 65. If you have a lot of credit card debt, it will be really helpful to pay that off first. It will help supercharge your savings rate and lower your monthly expenses once that bill is gone. But there is no reason you can’t have an amazing month-long experience if you still have a mortgage payment.

4. Taking time off will postpone financial independence

Maybe. But it doesn’t have to! During two of our mini-retirements, we also bought and renovated houses. Taking that time away actually greatly increased our net worth and passive income! If you really want to increase your income and net worth, simply add some of those activities to your mini-retirement. There are no rules about what you can or can’t use this time for.

There are so many incredible things you could do if you had a bit of time away from the 9-5. The first step in my full Mini-Retirements Mastered course is to help you narrow down what you really want to focus on in the next mini-retirement! Which things are very time-sensitive and if you don’t tackle it now, the opportunity might pass you by.

Four Mini-Retirement Options

1. Once in a lifetime opportunity

There are a few things in life we just don’t get second chances on. Sometimes because the timing is never right again or life just changes. We had a chance to move overseas when I was in my 20’s for four years. While we were there, we traveled almost every month. I took art classes in Amsterdam and literature classes in Rome. Everything was close by and made it affordable. Because we had made financial sacrifices earlier in our marriage, we had the resources to invest in those experiences.

I have known people who took time off to hike the entire Appalachian Trail or bike along the Croatian coast. In our current mini-retirement, we are traveling in a pop-up camper in the summers with our five kids. They are between two years old to ten. It just wouldn’t be the same if we waited 20 years! Seeing all the US national parks has been an amazing experience and we just didn’t want to miss this time with them.

2. Passion project

People often have that ONE THING they want to do. Maybe it’s volunteer overseas for a year. Design and build a house with minimal help. Start a non-profit. Or adopt a sibling group from foster care. These are the things that, if we do very little else with our life, at least we can look back and say, “But I did that!” And these are the perfect things to fit into a mini-retirement!

By saving an extra 10-15% of your income a year, you would have enough to take a year-long mini-retirement every decade!

3. Build Financial Freedom

When we moved back to the US from Germany, the housing market had crashed and was at an all-time low. We took time off two more times to buy and renovate our primary home and then two rentals. There were other people who might have wanted to do that but didn’t have the free time to make it happen. Taking those two mini-retirements actually helped us build $1,200 in passive rental income and grow our net worth. Instead of derailing our path to financial freedom, it sped it up!

4. Grow a business

This last mini-retirement has been focused around family/travel and growing a creative and entrepreneurial business. We carved out this time, starting with one year as a test. We wanted to lean into our interests. Test some ideas. See if we could find a project that we were passionate about and was a perfect fit for our lifestyle. Something that would leverage our talents and really help people. If there is a business you want to grow and see if you can scale up, a mini-retirement might be exactly what you need!

Of course, there are logistical challenges that scare us. You might be nervous about healthcare. Or scared that you won’t be able to find another job when the time comes. It might simply be the unknown cost! How much would this month-long adventure cost? How much would it cost to start a business, or travel the world for a year?

Once you decide you want to move in this direction, you will find, for every logistical challenge, there are multiple logistical solutions. Then it’s just the matter of finding the courage to live a life that perfectly lines up with everything you value, are passionate about, and meets your goals.

I want to dive into one of the logistical challenges that be top of mind for you. How can I afford this!?! This is the first logistical stumbling block for a lot of people. I want to show you how you can get started with any budget. Even a once-in-a-lifetime experience doesn’t have to break the bank to become one of your most cherished memories in 10 or 20 years.

Let’s start with the idea that you negotiated a month off from your current employer or find yourself between jobs for a month.

How to Budget for a Month Off

Find your Baseline Budget:

If you have been tracking your expenses and budgeting for a while, this might be an easy number to find. Maybe you spend $2,000, $3,000 or $6,000 a month. Now, this won’t include any investing or savings you do. We are going to put that on hold for a month. If you want to take multiple mini-retirements like we have, simply adjust your yearly investing to cover your off times. An extra 1-3% investing a year, could cover your investing during your mini-retirements.

Then subtract any extras from that baseline. Let’s say you normally spend $200 a month on entertainment. If you are going to be traveling for a month, that expense would be put towards your trip entertainment.

Now you have your month off baseline number. Let’s say it’s $2,500. (Even if you earn $4k a month, after taxes, investments and extra expenses, your core expense might only be $2,500.)

Find your Dream Budget:

What is it you want to do with this time? I like to focus on things that could only happen in this season of life. Things that, if I waited another 10 or 20 years, the opportunity might pass me by. I’m 35 now, but the trip I did at 24 isn’t something I could do again. I have five little kids at home. My best friend is now CEO of a large non-profit organization. There is simply no way we could both escape for a month long road trip! Plus, I have given up sleeping on the frozen ground or in the front seat of my Honda Civic. I’m in my thirties, I now require a mattress of some kind!

Once you know what your next month-long adventure will entail, it’s time to figure out the cost.

As I research each cost, I add them to an Excel sheet I name my dream budget.

A dream budget will serve two purposes. First, in the planning, your adventure will get better. You will refine and customize what you really want to do. Second, you will have specific prices for each piece. If you decide to start a side hustle to help save up for your mini-retirement, you will know exactly what your extra $100 earnings will bring you.

Your extra $100 might buy three nights at a youth hostel or national park campground. $20 will pay for food for the day. $80 will pay for a yearly science museum pass for the whole family.

Open up a dream budget checking account, and stash all the extra dollars in there. Each dollar is getting you closer to building that dream experience. Even $1 will buy you a scoop of gelato in Italy.

Let’s say you settle on a US road trip for two people. You plot it all out and come up with a dream budget of $3000 plus baseline expenses of $2500. $5500 is your total cost. If you want to do this in the next 18 months you will need to save about $300 a month between now and then. Maybe that’s in your budget or maybe it’s not.

Then the question becomes how do I hustle for $300 a month to put towards something I really care about? Or maybe you would be willing to give up your eating out budget to make this happen?

Once we narrow down exactly what the challenge is, we can start to problem solve and find solutions for that challenge.

This week I will be hosting a free training on how to take a month off. I’ll be teaching the three essentials to negotiate a month from an employer who doesn’t typically offer that benefit. I’ll also talk about how to pack a mini-retirement go bag for those unexpected opportunities. With all of this leading up to the only time this year my full Mini-Retirement Mastered course will be open.

If you ever want to be able to do something like a mini-retirement, you won’t want to miss it! Now is the perfect time to start laying the foundation!

What do you think of mini-retirements? Do you want to take one?

<!–

–>

Source: makingsenseofcents.com

Net Worth

Mortgage Rate

Credit Score

Make Friends with Your Credit Report

Browse Related Articles

20 Best Neobanks

1. Chime

2. GO2bank

3. Current

4. Revolut

5. Quontic Bank

6. Dave

7. Albert

8. Varo

9. Aspiration

10. Bluevine

11. SoFi

12. Acorns

13. One

14. Cheese

15. Unifimoney

16. NorthOne

17. Oxygen

18. Bella

19. Lili

20. Monzo

What is a neobank?

Are neobanks safe?

Neobanks vs. Traditional Banks

Neobanks

Traditional Banks

Pros & Cons of Neobanks

Pros

Cons

Bottom Line

At a glance

Erie car insurance

Pros and cons of Erie car insurance

PROS

CONS

Erie car insurance cost

Erie car insurance rates by driving history

Erie car insurance quotes by age

Erie car tools and benefits

Erie home insurance

Pros and cons of Erie homeowners insurance

PROS

CONS

Erie home insurance discounts

Erie home tools and benefits

Erie life insurance

Pros and cons of Erie life insurance

PROS

CONS

Erie life insurance endorsements

Erie life tools and benefits

Erie customer satisfaction

Erie auto satisfaction

Erie homeowners satisfaction

Erie life satisfaction

How to file a claim with Erie

Erie availability

Other Erie perks worth considering

Erie corporate sustainability

Not sure if Erie is right for you?

Erie vs. Allstate

Erie vs. Travelers

Erie vs. AAA

Is Erie a good insurance company?

Methodology

Auto

Homeowners

Bankrate Scores

Here are 16 alternatives to cable TV.

1. Cutting cable is easy with a digital antenna.

2. Netflix – The best cord cutting service.

3. Hulu – The best streaming cable service.

4. Sling TV for alternative cable TV options.

5. Philo

6. Amazon Prime Video