Everyone knows that raising kids can put a serious squeeze on your budget. Beyond covering day-to-day living expenses, there are all of those extras to considerâsports, after-school activities, braces, a first car. Oh, and don’t forget about college.
Add caring for elderly parents to the mix, and balancing your financial and family obligations could become even more difficult.
“It can be an emotional and financial roller coaster, being pushed and pulled in multiple directions at the same time,” says financial life planner and author Michael F. Kay.
The “sandwich generation”âwhich describes people that are raising children and taking care of aging parentsâis growing as Baby Boomers continue to age.
According to the Center for Retirement Research at Boston College, 17 percent of adult children serve as caregivers for their parents at some point in their lives. Aside from a time commitment, you may also be committing part of your budget to caregiving expenses like food, medications and doctor’s appointments.
When you’re caught in the caregiving crunch, you might be wondering: How do I take care of my parents and kids without going broke?
The answer lies in how you approach budgeting and saving. These money strategies for the sandwich generation and budgeting tips for the sandwich generation can help you balance your financial and family priorities:
Communicate with parents
Quentara Costa, a certified financial planner and founder of investment advisory service POWWOW, LLC, served as caregiver for her father, who was diagnosed with Alzheimer’s disease, while also managing a career and starting a family. That experience taught her two very important budgeting tips for the sandwich generation.
First, communication is key, and a money strategy for the sandwich generation is to talk with your parents about what they need in terms of care. “It should all start with a frank discussion and plan, preferably prior to any significant health crisis,” Costa says.
Second, run the numbers so you have a realistic understanding of caregiving costs, including how much parents will cover financially and what you can afford to contribute.
17 percent of adult children serve as caregivers for their parents at some point in their lives.
Involve kids in financial discussions
While you’re talking over expectations with your parents, take time to do the same with your kids. Caregiving for your parents may be part of the discussion, but these talks can also be an opportunity for you and your children to talk about your family’s bigger financial picture.
With younger kids, for example, that might involve talking about how an allowance can be earned and used. You could teach kids about money using a savings account and discuss the difference between needs and wants. These lessons can help lay a solid money foundation as they as move into their tween and teen years when discussions might become more complex.
If your teen is on the verge of getting their driver’s license, for example, their expectation might be that you’ll help them buy a car or help with insurance and registration costs. Communicating about who will be contributing to these types of large expenses is a good money strategy for the sandwich generation.
The same goes for college, which can easily be one of the biggest expenses for parents and important when learning how to budget for the sandwich generation. If your budget as a caregiver can’t also accommodate full college tuition, your kids need to know that early on to help with their educational choices.
Talking over expectationsâyours and theirsâcan help you determine which schools are within reach financially, what scholarship or grant options may be available and whether your student is able to contribute to their education costs through work-study or a part-time job.
Consider the impact of caregiving on your income
When thinking about how to budget for the sandwich generation, consider that caring for aging parents can directly affect your earning potential if you have to cut back on the number of hours you work. The impact to your income will be more significant if you are the primary caregiver and not leveraging other care options, such as an in-home nurse, senior care facility or help from another adult child.
Costa says taking time away from work can be difficult if you’re the primary breadwinner or if your family is dual-income dependent. Losing some or all of your income, even temporarily, could make it challenging to meet your everyday expenses.
“Very rarely do I recommend putting caregiving ahead of the client’s own cash reserve and retirement.”
When you’re facing a reduced income, how to budget for the sandwich generation is really about getting clear on needs versus wants. Start with a thorough spending review.
Are there expenses you might be able to reduce or eliminate while you’re providing care? How much do you need to earn each month to maintain your family’s standard of living? Keeping your family’s needs in focus and shaping your budget around them is a money strategy for the sandwich generation that can keep you from overextending yourself financially.
“Protect your capital from poor decisions made from emotions,” financial life planner Kay says. “It’s too easy when you’re stretched beyond reason to make in-the-heat-of-the-moment decisions that ultimately are not in anyone’s best interest.”
Keep saving in sight
One of the most important money strategies for the sandwich generation is continuing to save for short- and long-term financial goals.
“Very rarely do I recommend putting caregiving ahead of the client’s own cash reserve and retirement,” financial planner Costa says. “While the intention to put others before ourselves is noble, you may actually be pulling the next generation backwards due to your lack of self-planning.”
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Making regular contributions to your 401(k), an individual retirement account or an IRA CD should still be a priority. Adding to your emergency savings each monthâeven if you have to reduce the amount you normally save to fit new caregiving expenses into your budgetâcan help prepare you for unexpected expenses or the occasional cash flow shortfall. Contributing to a 529 college savings plan or a Coverdell ESA is a budgeting tip for the sandwich generation that can help you build a cushion for your children once they’re ready for college life.
When you are learning how to budget for the sandwich generation, don’t forget about your children’s savings goals. If there’s something specific they want to save for, help them figure out how much they need to save and a timeline for reaching their goal.
A big part of learning how to budget for the sandwich generation is finding resources you can leverage to help balance your family commitments. In the case of aging parents, there may be state or federal programs that can help with the cost of care.
Remember to also loop in your siblings or other family members when researching budgeting tips for the sandwich generation. If you have siblings or relatives, engage them in an open discussion about what they can contribute, financially or in terms of caregiving assistance, to your parents. Getting them involved and asking them to share some of the load can help you balance caregiving for parents while still making sure that you and your family’s financial outlook remains bright.
The post Budgeting Tips for the Sandwich Generation: How to Care for Kids and Parents appeared first on Discover Bank – Banking Topics Blog.
I had a great talk with Millennial Money Man yesterday and my favorite piece of advice he gave me was to âwrite what youâre passionate about.â It took me literally five seconds to think of the one thing Iâm really passionate…
The post Is Being Debt Free Worth it? appeared first on Modern Frugality.
Not everyoneâs career path is a 40+ year marathon working full time until you can finally come up for air in your golden years.
Sometimes you need a little break along the way.
Taking time away from the workforce â whether itâs to travel, take care of loved ones, learn a new skill or whatever â can be a beneficial thing. But money â or the lack thereof â is what stops many people from even considering it.
With some significant planning and budgeting, however, itâs possible to make your career break dreams a reality. Here are five steps you should take when budgeting for a career break.
5 Steps for Career Break Budgeting
1. Think About What Your Career Break Will Look Like
People take career breaks for a number of reasons. Take some time to reflect on why you are planning time away from the workforce and what you intend to do.
When thinking about what your new day-to-day will look like, try to get as detailed as possible. Hone in on aspects that will affect you financially.
How long will your break last? When would you like it to start? Will you be staying at home or traveling the world? What adventures would you like to experience?
While itâs nice to dream about your best life ever, youâve got to be practical too. Ranking what you want to do with your newfound free time will be helpful if you have to cut your list down to fit what you can afford.
2. Explore What Your Costs Will Be During Your Break
After youâve fantasized what your work break will look like, itâs time to focus on the numbers. Youâve got to know what your expenses will be in order to determine whether your plans are realistic.
If you donât already budget your income and track your expenses, nowâs the time to start. Your budget will give you a good idea of how much you spend on essentials and where you can cut costs as you save up for leave.
Research all the additional costs you expect to incur during your break. If youâre taking extended parental leave after the birth of a child, youâll be dealing with a ton of new baby-related expenses. If youâre taking time off to travel, youâve got to pay for transportation and lodging.
The length of your break will also be a big factor here. Obviously, the longer youâre away from the workforce, the more money youâll need saved up.
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3. Set Up a Sinking Fund to Cover Expenses on Your Break
If you havenât heard the term âsinking fund,â thatâs just personal-finance speak for a stash of savings that you regularly contribute to over time to break up a big expense.
Once youâve estimated the overall expenses for your leave, divide that by how many months you have left to come up with your target monthly savings goal.
Pro Tip
Switch to a bare-bones budget or try these other ways to save money fast so you can free up cash to add to your sinking fund.
If you already have existing savings you want to use to fund your career break, that will cut down on how much youâll need to put aside each month â just make sure you donât touch your emergency fund!
Your emergency savings should only be used on an actual emergency â like if you get into a car accident or Fido needs to be rushed to the pet hospital. Being away from work wonât make you immune to emergencies, so do not plan to use your emergency fund to tide you through your break.
In fact, before you focus on building up your sinking fund, you ought to have adequate savings in an emergency fund first.
4. Explore Opportunities to Make Money On Your Break
If youâre able to make money while youâre away from work, youâll be less financially burdened. You wonât have to save up as much or worry about burning through your entire savings.
The first income stream you should explore is your current job. Taking a career break doesnât necessarily mean calling it quits where you work now.
Depending on what type of leave youâre taking, your job may be protected and you might be able to continue collecting your salary â or a percentage of your current pay.
The Family and Medical Leave Act (FMLA) provides eligible workers with up to 12 weeks of leave after the birth or adoption of a child, to deal with a serious health condition or to care for an ill or injured family member. While this type of leave is unpaid, youâll continue to be covered under their workplace health insurance plan and there may be the possibility of coupling this leave with short-term disability pay.
Pro Tip
President Joe Bidenâs proposed coronavirus stimulus package includes extending the expired paid time off policies for sick workers and those needing to care for family members due to COVID-19.
Find out if your employer offers any other paid leave programs â whether thatâs parental leave, unlimited PTO or sabbaticals. According to the Society for Human Resource Managementâs 2019 Employee Benefits Survey, 27% of employers offered paid parental leave, 6% offered unlimited paid leave and 5% offered a paid sabbatical program.
Another 11% of employers surveyed offered an unpaid sabbatical program. While unpaid leave isnât as ideal as paid leave, it gives you peace of mind that youâll have a job to come back to after your break.
Other options to make money during your leave include picking up a side gig, bringing in passive income, renting out rooms (or your entire place) on Airbnb or selling your belongings.
If you need to pick up a little work while youâre on a career break, just make sure it doesnât conflict with the reason you needed to take leave in the first place.
5. Develop a Re-Entry Plan
You need to plan for all aspects of your career break â including your transition back to the workforce.
Your budget needs to not only cover your expenses while youâre backpacking through Europe or nursing your elderly mother back to health. Youâve got to add a cushion for that period at the end where youâre actively seeking your next gig.
While data from the U.S. Bureau of Labor Statistics shows the average length of unemployment is about 23 weeks, how long itâll take you to find new work will vary depending on your industry and the position youâre seeking.
Plan to keep up with contacts in your field and engage in relevant volunteer work or continued education while youâre away to improve your chances of quickly finding a new job.
If your savings run low toward the end of your leave, donât brush off finding a bridge job â a temporary role to help you pay the bills while you search for better opportunities.
Pro Tip
A resume gap isnât the kiss of death it used to be. You can even craft a way to include side gigs on your resume.
A career break should provide you with freedom to pursue something outside of your typical work life. You donât want that freedom to drag you deeper into debt or put you in a worse financial position if you can avoid it.
Do your best to budget for more time than youâll need so you can enjoy your career break stress free.
Nicole Dow is a senior writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
We all have our favorite small businesses, including our go-to date night restaurant and favorite thrift store. These places serve more than great food and looks â they build jobs in the community, put children through school, and are the realization of your neighborâs dream.Â
These stores are built on hard work and love, and supply some of the best quality products you can find. Small businesses are a great sign of a thriving economy, but theyâre also the first to suffer from economic downturns, like 2020âs COVID-19 recession. This is why itâs more important than ever to find ways to support your communityâs businesses.
There are many reasons why small business success is vital. Not just for the economy but for our communities. Thatâs why Small Business Saturday (November 28) is one of our favorite times of the year, and why we collected these ways you can support small businesses without breaking the bank (or leaving the house!).
Shop Small Businesses
Shopping small is the easiest way to support community businesses and clear your holiday list. Shopping locally doesnât have to drain your wallet, either.
1. Skip the Hallmark Card and Support a Local Artist
Cards are a classic gift for any and all celebrations. Theyâre small, affordable, and easy to personalize. This year skip the grocery store and see what artists you can support while still getting beautiful and unique gifts for your family and friends.Â
Most cities will have galleries, boutiques, and even tourist shops that display locally printed and designed cards to choose from. If you donât have a shop near you, you can browse thousands of creators on Etsy to find the perfect design for each of your loved ones.Â
2. Send Gift Cards
Gift cards are perfect for acquaintances, long-distance giving, and little acts of kindness every now and then. Instead of collecting Amazon and Starbucks cards, see what your local spots have to offer.Â
Most restaurants and stores offer a gift card option, and you donât have to waste the plastic! Send your gift via email to anyone, anywhere. So go ahead and thank your first mentor for their glowing reference with a gift card to their favorite coffee shop.Â
3. Shop Throughout the Year
Itâs true that handmade products can get pricey, but youâre ultimately paying for quality. If youâre already pinching pennies for the holiday season, start thinking about next year. Buying gifts for loved ones as you find them throughout the year is the best way to collect beautiful gifts without using credit. Plus, small businesses can use the boost year-round.Â
Show Support From Home
Most of us have a budget that prevents us from buying a new wardrobe every month and eating out every weekday, so it just isnât feasible to buy from all of our favorite local artisans all of the time. That doesnât mean you donât love them, youâll just have to get creative to show your support from home.Â
4. Share Your Favorite Products
When you do buy something new, take a photo! Sharing your favorite finds online and tagging the store is a great way to promote their products and quality to your friends and family. Even if youâre not buying, sharing a wishlist or their newest product could earn them another sale or new followers.Â
âI think people forget that their voice has influence, whether they are a huge celebrity or a humble stay at home mom. Itâs amazing just what one post can do for small business.â â Autumn Grant, The Kind Poppy
5. Write a Review
You should let the world know when you find a shop you love. From Google and Yelp to a company Facebook page, leave a review to let others know theyâre in good hands. Positive reviews are some of the best tools businesses have to convert sales.Â
âThese types [local] of businesses live and die by word of mouth. Their reviews are everything to them. Now that everyone can look up the average rating of a business or service, it’s vital for businesses to collect positive, honest reviews.â â Dan Bailey, WikiLawn Lawn Care
If you do leave reviews, detailed thoughts and photos perform the best. These give the consumer plenty of information and help your review seem authentic. Plus, reviews can help platforms like Etsy and Google know the business is valued.Â
6. Refer a Friend
Tell your friends when you find a new shop or service and share the love. Your friends trust you and likely have a lot of shared interests, so this word of mouth is a great way for businesses to earn customers.Â
âA referral is the single best compliment to a business owner. Trust me.â â Brian Robben, Robben Media
If you have friends and family from out of town you may also want to keep your favorite businesses in mind for when they visit. Keep a list of local restaurants, cafes, services, and shops that they canât get anywhere else and take your friends on a local tour.Â
Keep in Touch
Businesses have more ways than ever to keep you in the know, so make sure youâre subscribed to keep in touch! Newsletters and social media are a good way to keep your local faves and their promotional offers top of mind.Â
7. Sign-up For Newsletters
Most businesses send regular emails to notify you and other customers of their store details and deals. Newsletters are great ways to find coupons, sales, and new items youâll adore. Just subscribing isnât enough, though. Make sure you actually read their news and whitelist the email so you never miss a thing.Â
8. Follow and Interact With Their Social Channels
Social media is another easy way to stay in the know; it can also organically promote a business. When you follow a business, platforms learn more about who else may be interested in their offers. Stay active and like and comment on their posts, too, to increase their visibility and trust with other shoppers.Â
9. Swing By the Shop
Ultimately, the best way to support a business is to stop by and visit. You never know when something will catch your eye, and itâs a great way to share your find with friends. You may also get the chance to talk with the owner and learn more about the business while sharing your support.Â
âDrop a note to them of encouragement. Tell them why you love them and what they mean to you and the community…We’ve been absolutely floored when people have taken time out of their day to write us a note, telling us how much they like us/our product.â â Meaghan Tomas, Pinch Spice Market
No matter the product or service, small business owners will appreciate hearing that you love their shop and can benefit from your support. Tag a friend, buy a gift card, or write a review to help your favorite stores without busting your budget.Â
Small Business Administration | G1veÂ
The post 9 Ways to Support Small Businesses Without Breaking the Bank appeared first on MintLife Blog.
Love it or hate it, many Americans are spending more time at home. The coronavirus pandemic not only accelerated the work-from-home trend to warp speed, but it also shuttered schools and summer camps, scratched travel plans and canceled brunch and dinner reservations across the country.
Jen Dawson, a certified financial planner and managing director in Chicago, found that the uncertainty and stay-at-home lifestyle created by the pandemic prompted her clients to look at their financial situations in a new light.
âI think it just gives opportunities for people and families to reflect,â Dawson says. ââWhat do we want out of life? What do we want from our money?â Those conversations are really valuable.â
As Dawsonâs clients reflect on their goals, they (and many others) are also wondering, âHow should I adjust my household budget if weâre spending more time at home?â
How to optimize your budget for the stay-at-home economy in 4 steps
Ellen Rogin, a former wealth advisor and now a speaker, author and entrepreneur, notes that people across the country were affected by the pandemic in very different ways. While many workers were able to keep their jobs as they transitioned to working from home, many were not.
âThere are people who have lost their jobs and are being forced to make difficult decisions,â Rogin says. âAnd there are people who are still employed and earning the same income they did before, who have more options as they decide how they’re spending their money now.â
Even if youâve been spared serious financial challenges, you should still consider updating or creating a household budget or spending plan. This will allow you to determine how to save more money in the stay-at-home economy.
Rogin and Dawson encourage you to use this opportunity to ensure youâre at least staying on track to meet your savings goalsâand at best, shortening your savings timelines. Itâs also a chance to make sure that your spending habits, which have likely changed as youâve spent more time at home, are maximizing your happiness.
Below, we break down insights from Rogin and Dawson into four actionable steps you can take to save money in quarantine while living the best life possible. It all starts with taking an objective look at how your spending habits changed as you transitioned to a more domestic lifestyle.
Read on to see how to save more money in the stay-at-home economy by creating a new household budget:
1. Compare your spending trends before and during quarantine
As you set about creating a household budget for an at-home lifestyle and determining how to save more money in the stay-at-home economy, start by reviewing your spending.
âMost people donât really know how much money theyâre spending, whether times are good or bad. But it can really make you feel calmer to know what it takes to run your lifestyle.â
Dawson encourages you to refer to your debit and credit card statements to analyze the differences between your spending before staying home became the norm, and after. âYou can compare it and contrast and have observations and discussions around what changed,â she says. âWhat do you like that you want to keep going, and what do you not like about it?”
All you need, Dawson says, is a spreadsheet to total up your major expenses, such as housing, utilities, transportation, food and dining, travel, shopping and entertainment. Then, subtract the sum of those costs from the money you earned (aka income) over the same timeframe.
Do this exercise for three months of spending before quarantine and then again for three months of spending during quarantine. Youâll be able to compare the data to see whether you have more or less disposable income as a member of the stay-at-home economy.
Rogin notes that it can be a little scary to examine your finances like this, but thereâs no reason to feel anxious.
âMost people donât really know how much money theyâre spending, whether times are good or bad,â she says. âBut it can really make you feel calmer to know what it takes to run your lifestyle.â
If you see that your disposable income decreased while in quarantine (or that you no longer have disposable income at all), then youâll need to find ways to cut back on spending if you want to keep your savings goals on track. If your extra cash increased and youâre actually saving more money in quarantine, then you can start to consider how you might hit some or all of your savings goals more quickly.
Either way, you still have work to do as you consider how to save more money in the stay-at-home economy. Rather than focusing on external factors that are out of your control, Rogin and Dawson recommend that, as a next step, you ask yourself what matters most to you.
2. Ask yourself how your spending habits impact your happiness
Rogin considers the distanced, more remote way of life as a chance to reflect on whatâs really important in order to create your household budget. One example she points to is how many people have been cooking at home far more often than they once did.
âMaybe youâre spending more on groceries, but thatâs less than you were spending on eating outâand you enjoy it,â she says. âYouâre spending more time with your family. Youâre eating more healthily. So it gives you the opportunity to really assess your budget in a different way.â
Another example is travel. Rogin says that some people have told her that they really miss it, but others have been surprised to find how happy they are to pump the brakes on their jet-setting ways. In addition to saving money in quarantine from reimbursed travel and no more expensive trips, itâs allowed them to slow down and enjoy their time at home with family.
For her part, Rogin found that she wore the same two pairs of shoes during quarantine because theyâre comfortable, and no one can see them when sheâs video conferencing during work. As a result, Rogin cut this expense from her stay-at-home budget.
Whether youâre facing a cash shortage or surplus from more time spent at home, Rogin says that extending this line of thinking into a âvalues-based spending planâ for the stay-at-home economy will allow you to direct your money to what matters most to you, while diverting funds away from what doesnât.
Once you add up the expenses that are no longer necessary in your stay-at-home budget, itâs time to put that money to work.
Tip: When looking at quarantine spending, donât get too granular
Dawson underscores that evaluating spending patterns can be an emotional exercise. If youâre reviewing your finances with a family member, partner or spouse, try to resist the urge to nitpick every purchase. The trends should be easy enough to spot from a birdâs-eye view.
3. Put your stay-at-home savings toward your financial goals
Dawson and Rogin recommend having a plan when youâre trying to figure out how to save more money in the stay-at-home economy. That plan should include what youâre saving for, as well as where youâll keep the funds as they add up.
Rogin recommends framing your financial goals from a positive angle. For example, when you create a household budget, instead of focusing on cutting spending, you can set a goal for how much extra money you want to save.
If you have children or live with a partner or spouse, Dawson notes that this goal-oriented approach can help get them involved. The objective might be to start an emergency fund to ride out unexpected headwinds. Or, the focus could be on saving up for a big vacation to look forward to when travel restrictions ease.
When deciding where to keep your savings, a standard checking account wonât allow your money to grow like a high-yield online savings account will. Rather than pooling the money youâve saved in quarantine into one account, Dawson suggests opening multiple savings accounts, one for each of your savings goals.
âBe really clear about what each savings account is for,â she says. âThen youâre more likely to fund it.â
Of course, luxury savings goals like a vacation should not take priority over your long-term savings goals, such as retirement or college funds.
4. When saving money in quarantine, remember to support those in need if you can
If you are saving money in quarantine, Rogin suggests considering all the benefits of earmarking extra cash for philanthropic causes. It could go directly to the local small businesses you love that are hurting for revenue. Or it could go to any number of nonprofit organizations that are doing good in the world.
âSo many people are in need now,â Rogin says. âThere are so many beautiful ways that can help you feel like youâre making a difference for people by reallocating some of that money towards causes and people that you want to support.â
How will you start saving money in quarantine?
The stay-at home lifestyle may not have been in your plans, but you have the opportunity to gain control of your finances inside your home by creating a household budget that works for you in this new reality.
When you analyze, assess and optimize your spending and consider how to save money in quarantine, youâll be in as strong a financial position as possible when life gets back to normal.
If youâve been fortunate enough to save money in quarantine, consider starting or adding to your emergency fund. Not sure where to store your savings? Check out the four best places to keep your emergency fund.
Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
The post How to Save More Money in the Stay-at-Home Economy by Focusing on What Matters Most appeared first on Discover Bank – Banking Topics Blog.
If you get paid every two weeks, you’ve probably noticed extra money coming your way certain months. Maybe you even thought your company’s payroll made a mistake! But it’s no mistake. You get two magical months like this a year: when you suddenly have a third paycheck andâthe best part isâyour monthly bills stay the same. Yes, it’s appropriate to jump for joyâprovided you have a plan for that extra income.
Why does this happen in the first place? If you’re paid biweekly, you get 26 paychecks throughout the 52-week year. That means two months out of the year, you end up getting three paychecks instead of your regular two.
Those two extra paychecks can go a long way. But without a plan in mind, they can also disappear. Fast. The first budgeting trick to saving two paychecks is to find out when they will hit your account. Grab a calendar and write down your paydays for every month in a given year and highlight the two extras. Maybe even put calendar reminders in your phone so you can track when the additional funds will hit your account. The extra paychecks will fall on different days every year, so tracking them in advance is key.
Samuel Deane, a founding partner of New York City-based wealth management firm Deane Financial, says there isn’t one correct way to budget with an extra paycheck, but that it should depend on your personal situation and financial goals. You could decide to give yourself some extra room in your budget throughout the year, for example, or use the extra money for something specific.
How can I budget for an extra paycheck? Consider these 5 budgeting hacks if you’re paid biweekly:
1. Pay down (mainly) high-interest debt
Once you’re done jumping for joy at the realization of the third paycheck, consider how your budget with an extra paycheck could help you pay down debt. “The first thing I usually tell my clients is to get rid of high-rate debt, which is usually credit card debt,” Deane says.
Before paying off debt with your new budget with an extra paycheck, make a list of all of your debts organized by balance and annual percentage rate (APR). Paying off the debt with the highest APR could save you the most money because you’re paying the most to carry a balance. Paying down a few low-APR, low-balance debts can also help you gain momentum and bring other financial benefits. For instance, if you owe close to your credit limit on a credit card, the high credit utilizationâor card balance to credit limit ratioâcould negatively impact your credit score.
If your budget with an extra paycheck includes debt repayment, you’ll start to owe less and have less interest accruing each month, freeing up even more cash from subsequent paychecks.
“The first thing I usually tell my clients is to get rid of high-rate debt, which is usually credit card debt.”
2. Build an emergency fund
Paying down debt isn’t the only way to budget with an extra paycheck. “Taking a look at whether you have a sufficient emergency fund is pretty important,” says Dan Stous, director of financial planning at Flagstone Financial Management.
An emergency fund of three to six months of your regular expenses can help you weather financial setbacks, such as a lost job or medical emergency, without having to take on new debt. Keeping these funds separate from your regular checking and savings accounts can help you keep them earmarked for the unexpected (and reduce the temptation to dip into them for non-emergency expenses). Places to keep your emergency fund include a high-yield savings account, certificate of deposit or money market account.
Sunny skies are the right time to save for a rainy day.
Start an emergency fund with no minimum balance.
Start Saving
Online Savings
Discover Bank, Member FDIC
If creating an emergency fund or adding to an existing one is on your to-do list, a budgeting trick to save two paychecks is to automatically transfer your extra paychecks into your emergency fund account.
3. Save for a big goal
If you want to save for a goal like a new car or home, or contribute to tax-advantaged retirement accounts, contributing two full paychecks out of 26 can be a good start. “If a client is debt-free and doing well, they might be able to focus on other goals,” Deane says. If you’ve got a financial goal in mind, a budgeting hack if you’re paid biweekly is to transfer your two extra paychecks from your checking account to a savings or retirement account right away.
If you have a 401(k) through an employer and already contribute enough to get your maximum annual match, Deane says you may want to consider a Roth IRA. A Roth IRA is for retirement, but it also allows first-time homebuyers who have held their account for at least five years to withdraw up to $10,000 to buy a home, Deane says. Your budget with an extra paycheck could then go to either major goal.
Even loftier, “you could put aside money to start a business,” Deane says. If you plan on starting a business someday you could put away the paychecks annually and let those savings build as start-up capital.
4. Get ahead on bills
If you already have an emergency fund, are currently debt-free and are making good progress on your savings goals, try this budgeting hack if you’re paid biweekly and get a third paycheck: Pay certain monthly bills ahead of time.
“If you have the ability to prepay some of your bills, it can ease anxiety in the coming months,” Deane says.
Before using this budgeting hack if you’re paid biweekly, check with your providers to confirm that you will not be met with a prepayment penalty, and get up to speed on any prepayment limitations. Some providers may even offer a discount or incentive if you pay something like a car insurance bill all at once. You could also explore whether or not prepaying your bills makes sense for utilities, your cellphone or rent.
If you’re looking for budgeting hacks if you’re paid biweekly, consider that managing money isn’t only about dollars and cents. Emotions often play an important part in personal finance, and they’re often the root cause of people’s decisions. Accepting this fact could be an important part of successfully managing your money.
“From an emotional and behavioral standpoint, people should reward themselves for being responsible,” Stous says. “Basically, treat yourself.”
Perhaps you need a vacation from the daily grind, want to enrich or educate yourself or your family or simply want to get a date night at your favorite restaurant on the calendar. A budgeting trick to save two paychecks could be supplemented with some spending on yourself.
“If you have an extra paycheck and a debt reduction goal, then maybe you apply the whole thing toward that goal. On the other hand, maybe you have a goal to retire in 10 years and you’re off track. Then, it’d be wise to put that money, or at least a portion of it, toward that goal.”
There’s no one-size-fits-all budgeting trick to save two paychecks
When you’re deciding how to budget with an extra paycheck, you might find yourself going back and forth between options.
“If you have an extra paycheck and a debt-reduction goal, then maybe you apply the whole thing toward that goal,” Stous says. “On the other hand, maybe you have a goal to retire in 10 years and you’re off track. Then, it’d be wise to put that money, or at least a portion of it, toward that goal.”
Even though budgeting solutions are not the same for everyone, being disciplined and proactive about the savings opportunity of a third paycheck can help you form a strong foundation for your financial future.
The post The Magical Third Paycheck: 5 Budgeting Hacks If You’re Paid Biweekly appeared first on Discover Bank – Banking Topics Blog.
When you create a budget that works for you, you gain a sense of peace and freedom that comes with taking ownership of your finances. Although there are many approaches to budgeting, certain systems prove to be more effective than others. Zero-based budgeting is an easy and reliable method to achieve your financial goals. The concept of zero-based budgeting is simple: When you create your budget, you assign a role for every single dollar of your income.
By knowing exactly where your hard-earned cash is going, zero-based budgeting eliminates uncertainty and increases confidence in your financial decisions. Could a zero-sum approach to budgeting be the key to helping you regain your financial freedom? Weâll walk you through the specifics of this detail-oriented budgeting method so you can decide if itâs the right choice for your situation.
What Is Zero-Based Budgeting?
In short, zero-based budgeting is when you allocate every dollar you earn so that your income minus your expenses equals zero. If you earn $3,000 a month, the entirety of that $3,000 is accounted for in a zero-based budget. The goal is to avoid having extra money at the end of the month so you make wise spending choices.
Your budget should allow for spending money on monthly expenses like groceries and utilities, as well as âfun money.â Rather than waiting to see whatâs left over after taking care of bills and other essentials, a zero-based budget forces you to make financial decisions in advance. If you truly want to align your actions with your financial goals, youâll realize that every penny needs a purpose to make the most of it.
By forcing you to decide how much of your income will go towards goals like paying off debt or saving for a house before you even receive your check, zero-based budgeting encourages you to stick to your goals.
Is Zero-Based Budgeting Right For You?
Zero-based budgeting can be for everyone. A damaging myth of budgeting is that itâs only for people who lack the discipline to hold themselves accountable. No matter how much youâre struggling or thriving financially, you can benefit from taking control of your money with a zero-based budget. If youâre still skeptical about zero-based budgeting, take a look below at how it compares to the four other most popular budgeting alternatives, including the 50/30/20 method:
Zero-Based Budget: Make sure your expenses match your income each month so that your earnings minus your costs equal zero.
âPay Yourself Firstâ Budget: Dedicate money to savings and then the remainder is free to be spent how you choose.
Envelope Budget: Divide cash into physical envelopes filled with the exact amount of money you can spend on that category.
50/30/20 Budget: 50% of your income is for essentials, 30% is for personal expenses, and 20% goes towards savings.
Value-Based Budget: Calculate the monthly cost of each need based on your values, then choose how to stretch your income to meet those needs.
When you donât know exactly how you intend to divide your money each month, itâs easy to fall into spending traps. A zero-based budget using a digital budgeting tool is a great way to set yourself up for success and stick to your plan.
How to Create a Zero-Based Budget
Develop a zero-based budgeting plan by making it as simple as possible. Your main objective is ensuring your expenses match your income during the month. Donât overcomplicate the process by stressing about making the âperfectâ plan. The best part about creating a zero-based budget is that itâs easy to adjust month-over-month.
1. Record Your Monthly Income and Expenses
Write down every single monthly and seasonal expense to set yourself up for success. If you donât know where to start, you know youâll always have to factor in the cost of housing, utilities, transportation, and groceries.
Next, consider expenses youâre saving for, like a new car, a birthday or anniversary gift, etc. With a little bit of forethought, there shouldnât be any surprises. Itâs wise to set aside cash for unexpected or one-off expenses so youâre not immediately dipping into your emergency fund.
2. Adjust Your Budget Until Income Minus Expenses Equals Zero
When youâre new to zero-based budgeting, donât worry if your income and expenses donât balance each other out at first. Itâs likely that youâll have to reduce recurring costs or increase your earnings to reach a zero-sum. Canceling unnecessary subscriptions, packing your own lunch, skipping Starbucks, and starting a passive income-generating side hustle are all helpful.
Using an app with a budget categorization feature is particularly useful when youâre in the trial and error phase. Otherwise, it can be tedious and discouraging to manually re-adjust your budgeting strategy.
3. Track and Optimize Your Monthly Spending Accordingly
A zero-based budget is rarely flawless the first time around. Thankfully, you can optimize your spending by reallocating your funds as often as you need to during the month. Be sure to set yourself calendar reminders to have budget check-ins on a weekly or bi-weekly basis, especially if youâre working on budgeting as a family.
There are countless ways to increase and decrease your dollar allocations according to what makes the most sense for your circumstances. Oftentimes, three to six months are required to master zero-based budgeting. Once you get the hang of it, chances are that youâll enjoy reaping the rewards so much that youâll wonder why you didnât start sooner.
Pros and Cons of Zero-Based Budgeting
Thereâs no right or wrong answer to how you choose to manage your finances, but the key is that you need some kind of systematic approach to handling your money. Budgets are essential to help you build an emergency fund, save for retirement, pay off loans, or grow wealth through investing. If you arenât sure that zero-based budgeting is the best strategy for you, weâve outlined the pros and cons below.
Business management expert Peter Drucker is well-known for saying, âyou can’t improve what you can’t measure.â If you want to make progress towards your financial goals, you need a way to define and track where your money will go. If youâre not convinced that a zero-based budget will work for you, donât force it. You can always give it a try for a month or two and fall back on a different budgeting solution.
In Summary…
Zero-based budgeting is an easy and effective method to help you achieve your financial dreams. Donât miss the chance to get the most value from your money by budgeting. Weâve summed up our main points below.
Zero-based budgeting is when all of your income minus all your expenses equals zero. Every dollar of your hard-earned cash has a specific, purpose-driven role.
Having a zero-based budget allows you to make your income go further by proactively allocating your funds to different areas of spending and saving.
Using a digital budgeting tool like Mint helps to set yourself up for success and hold you accountable in your zero-based budgeting goals.
The post Zero-Based Budgeting: The Ultimate Guide appeared first on MintLife Blog.
Adults often feel the pressure to act responsibly with everything related to their well-being and their wallets. And nothing says âadulting” quite like budgeting for medical expenses. It’s easy to think that health insurance will cover the majority of medical-related costs and thus can be overlooked in your budgetâa copay here, a deductible there… all can be handled without much ado, right?
Not so fast. Medical expenses should be a top budgeting priority, with out-of-pocket costs on the rise and the always-present risk that an unexpected medical expense could put a ding in your spending plans. Consider this: On average, healthcare costs account for about 8 percent of annual household spending, or nearly 7 percent of pretax income, according to the Bureau of Labor Statistics. Even if your health insurance kicks in to cover an expense, your budget for healthcare costs still needs to include your premiums (AKA the amount you pay for your health plan).
How do I budget for healthcare costs, you ask? Fair question. This can sound like a lot. To better plan for healthcare costs, consider these five steps:
1. Determine your total healthcare budget
When budgeting for medical expenses, it may be helpful to bucket your healthcare costs into three categories:
Fixed Premium: This is the set amount you pay for your health insurance. If you get health insurance through work, this expense may be deducted automatically from your paycheck.
Routine: These are your anticipated healthcare costs, even if they fluctuate. Think your copay for your annual checkup or the cost of a regular prescription.
Unexpected: These costs can be difficult to predict, like an unplanned trip to the emergency room or an urgent medical procedure.
When it comes to planning for healthcare costs, your medical and spending history is key. âThe best place to start in determining how much to budget for healthcare costs is to look at how much you actually spent on healthcare previously,” suggests CPA and personal finance blogger Logan Allec.
You can start by reviewing all of your receipts from your insurance company and healthcare providers and going through your bank and credit card statements to flag any healthcare costs you paid out of pocket over the past year, Allec says. (If you didn’t save all of last year’s receipts, don’t stress. You can contact your insurance and healthcare providers for documentation.) The final number you come up with is a good start for determining your annual fixed and routine healthcare expenses. (Those unexpected curveballs mentioned earlier? See tip 3.)
When budgeting for healthcare costs, Allec also says to anticipate if you’ll have any extra costs this year that you didn’t encounter last year. For example, are you scheduling a surgical procedure or expecting a child? Make sure you understand how much you will have to pay out of pocket by reviewing exactly what your insurance covers annually, and factor that into your plan for healthcare costs.
2. Put your health at the top of your priority list
Once you’ve estimated your annual healthcare costs, consider how you prioritize them against your other essential expenses, says Todd Christensen, blogger and financial educator from Money Fit.
As a guide, Christensen says that healthcare expenses should fall between necessities like your mortgage or rent, taxes, food, transportation and phone. âIf you have a hard time paying for prescriptions but make monthly payments to your cell phone provider, then you have prioritized your personal communications over your health,” he adds.
From budgeting for your insurance premiums to preparing for doctor visits and ordering prescriptions, think of paying for healthcare expenses as a “need” instead of a “want,” Christensen says. By adjusting your mindset to give your health the significance it deserves, budgeting for medical expenses will become second nature.
3. Set up an emergency fund
Remember those unexpected healthcare costs that are tricky to plan for? When creating a budget for healthcare costs, Christensen suggests creating an emergency fund. An emergency fund is an account that is set aside to help cover an unexpected financial or medical emergency, such as a procedure or medication that is not fully covered by your insurance plan.
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Experts typically recommend saving at least three to six months of living expenses in your emergency fund so you can pay for unexpected expenses without having to take on debt or dip into savings earmarked for other financial goals. But, according to Christensen, if you’re starting an emergency fund from scratch, it’s best to start small and focus on a goal that’s attainable for you.
“Initially, the amount is less important than the commitment to just do it,” Christensen says. Managing the account, however, does require some discipline. For example, going on a 10-day wellness retreat, however therapeutic the massage sessions may seem, probably does not qualify as an emergency.
On average, healthcare costs account for about 8 percent of annual household spending, or nearly 7 percent of pretax income.
4. Take advantage of health savings accounts
In addition to your emergency fund, there are also special health savings accountsâfunded by you or your employerâthat can help you cover your health expenses and plan for healthcare costs. Here are three common health savings tools to consider:
A Health Savings Account (HSA) can be for you if you’re enrolled in a high-deductible health insurance plan (HDHP), which is a plan that offers lower premiums in exchange for a higher deductible. An HSA lets you put money away on a pre-tax basis for eligible healthcare expenses, including certain dental work, eyeglasses and prescriptions. Contributions can come from you, your employer, a relativeâanyone who wants to fund the account. Also, the funds roll over from year to year with an HSA, which makes it a great long-term tool for budgeting for medical expenses. Note there is an annual limit for how much you can contribute.
Whereas an HSA can be funded by you and your employer, a Health Reimbursement Arrangement or a Health Reimbursement Account (HRA), is funded solely by your employer, and funds can be spent on predetermined medical expenses. What’s left over in the account can be rolled over to the next year. If you leave the company, however, you can’t take the funds with you.
With a Flexible Spending Account (FSA), you can have a certain amount of money taken from your paycheck, pre-taxed, and deposited into an account that’s used for qualified healthcare expenses. Both you and your employer may contribute to this plan, with a maximum contribution allowed by law. Unlike the accounts above, FSAs don’t generally roll over at the end of each year. Check with your employer for your plan’s specifics.
5. Evaluate health insurance choices carefully
To budget for healthcare costs effectively, consumer finance leader Trae Bodge suggests you take the time to evaluate your health insurance options to find the best plan for you and your family. For each plan, you’ll want to carefully consider the type of plan (are your preferred doctors, hospitals and pharmacies covered?), as well as the cost of premiums, deductibles, copays and prescriptions. Your health history may also be an important factor when considering different coverage options.
âIf family members go to the doctor frequently or have multiple prescriptions, it may be better for your budget to opt for a more expensive plan, given the coverage provided,” Bodge says.
If you’re an entrepreneur or self-employed, you can shop the Health Insurance Marketplace at healthcare.gov. But also look at comparable plans directly through insurance providers to better budget for healthcare costs, Bodge says. You might be able to save by choosing a smaller insurance company over a larger one or by signing up directly with the provider, Bodge adds.
Plan for healthcare costs today
When it comes to budgeting for medical expenses, a little planning today can go a long way toward providing for a more financially secure tomorrow. With a healthcare budget firmly in place, you’ll be better empowered to make decisions that are good for your healthâand your wallet.
The post Your Guide to Budgeting for Healthcare Costs appeared first on Discover Bank – Banking Topics Blog.
As a parent, one of the scariest things to think about is what your children will do if something happens to you someday. This can be even scarier if youâre a single parent without a partner to fall back on.
But hereâs the thing: you are the sole provider for your children. Itâs even more important that you take time to consider all the future possibilities. Hereâs what you need to know about life insurance, including how much coverage to get and how much itâs likely to cost.
How Much Coverage Do You Need?
The biggest life insurance question is usually about how much coverage you need. There are all sorts of rules of thumb for this issue. Some say you need seven times your current annual income, while others say more or less.
But how much coverage you need really depends on how the benefit would need to be used if you were to pass away. Ultimately, this depends on a few factors, including the following:
How old your children are right now
Who would care for them if you were to pass away
What that caregiver would need to be able to care for your children
How much debt you currently have
Whether or not you want to pay for your childrenâs college costs
Letâs break this down, then, into the five things youâll need to consider to get the most out of your life insurance policy.
1. Talk to Potential Caregivers
If you donât already have plans for alternative caregivers for your children, now is the time to make them. Your life insurance decisions will largely hinge on the circumstances of those who would care for your children in the event of your death.
For instance, letâs say you have four kids who would live with your parents if you passed away. If your parents have already downsized into a retirement home, theyâd probably need to move to care for your children. In this case, you need to account for their additional moving and housing expenses in your life insurance policy. If theyâve already retired, you may need to consider the other ways that caring for your children would impact their ability to cover their own living expenses.
But what if you have only one child who would move in with family friends if you passed away? If your friends already have a few kids of their own, they may not need to move or add on to their home to accommodate your child. In this case, you may not need quite as much life insurance coverage.
Itâs a good idea to have an up-front conversation with potential caregivers. What would they need in order to care for your children appropriately? These are difficult conversations to have, but theyâre an essential part of this equation.
2. Think about Your Kidsâ Needs
How much insurance you require also depends on your kidsâ ages and needs. If you have younger children, youâll need more coverageâand youâll need it to last longer. If your kids are older, though, you can probably purchase a shorter policy with less coverage.
Beyond just their ages, youâll want to consider your kidsâ particular needs as well. Are they currently attending a private school that youâd want them to continue attending? Or maybe you have a child with special medical needs. Make sure your policy is large enough to cover those costs.
If you want to fund your childrenâs college attendance with your death benefit, youâll need quite a bit more coverage. If you canât afford to cover college tuition right now, you could also look at college funds as the icing on the cake. In a couple of years, if youâre in a better place, consider upping your policy or adding a second one to cover these costs.
3. Consider Your Current Financial Situation
Even those without children should have enough life insurance coverage to tackle leftover debts and other end-of-life expenses, but it can be even more important for single parents. Youâll want to be sure your children arenât dealing with a burden of debt while also grieving your loss. If possible, youâll want to cover the full amount of your debt so they donât need to.
Keep in mind the costs of end-of-life services, like a funeral service and burial, as well. These can run as much as $10,000 and be a real financial burden if you forget to plan for them yourself.
4. Add It All Up, and See What You Need
Now itâs time to determine how much total life insurance coverage you need. Hereâs an example, based on the recommendation that you cover seven times your annual salary.
Sherry is a single mom of a four-year-old and a ten-year-old. She makes about $40,000 per year. If she passed away, her parents would care for the kids, and theyâd need to move into a larger home to do so. She has about $25,000 in debt, outside of her mortgage, and she would want to fund both kidsâ college funds with her life insurance. Hereâs where she stands:
Income Replacement: $280,000
Additional Housing Costs: $50,000
Debt: $25,000
End of Life Expenses: $10,000
College Funds: $200,000
Total Life Insurance Needs: $565,000
That sounds like a lot, right? Before you decide you canât afford insurance, though, take the next step.
5. Check Out Term Life Insurance Coverage
Over half a million dollars in life insurance coverage seems like a lot, but many people actually overestimate the actual costs of such insurance, especially for healthy, relatively young individuals.
The key is to get term insurance (unless you have a good reason to have more expensive whole life insurance coverage) for only as long as you need it. The longer your term, the more expensive your coverage. Sherry should probably have a 15-year policy, which would cover her until her children are both adults. And if Sherry is in good health, a policy like this could cost well under $50 per month. Thatâs much better, right?
Once you know how much coverage you need, itâs time to shop around. Plenty of online quoting systems can get you an estimate on your costs in just a few minutes.
These steps arenât fun to think about. But having an affordable life insurance policy you know will protect your loved ones is worth a bit of discomfort. Check out our Personal Finance Learning Center to ensure youâre on the right track to keep your children safe and secure when youâre no longer here.
Image: Juanmonino
The post The 5 Things Single Parents Need to Consider about Life Insurance appeared first on Credit.com.
Have you ever sat down to go over your budget only to find out that youâve outrageously overspent on food? Local, organic, artisan goods and trendy new restaurant outings with friends make it easy to do. With food being the second highest household expense behind mortgage or rent, our food choices have a huge impact on our budget. Using this monthly budget calculator can also help guide how to budget for food.Â
You may be surprised to find out that the most nutrient-dense foods are often the most budget-friendly. Itâs not only possible, but fun and easy to eat nourishing, delicious food while still sticking to your budget. Here are 11 ways to help you learn how to budget groceries.
1. Track Current Spending
Before you figure out what you should be spending on food, itâs important to figure out what you are spending on food. Keep grocery store receipts to get a realistic picture of your current spending habits. If you feel inclined, create a spreadsheet to break down your spending by category, including beverages, produce, etc. Once youâve done this, you can get an idea of where to trim down spending.
2. Allocate a Percentage of Your Income
How much each household spends on food varies based on income level and how many people need to be fed. Consider using a grocery calculator if youâre not sure where to start. While people spent about 30 percent of their income on food in 1950, this percentage has dropped to 9â12 today. Consider allocating 10 percent of your income to food as a starting point, and increase from there if necessary.
3. Avoid Eating Out
This is the least fun tip, we promise. Eating out is a quick and easy way to ruin your food budget. If youâre actively dating or enjoy going out to eat with friends, be sure to factor restaurants into your food budget â and strictly adhere to your limit. Coffee drinkers, consider making your favorite concoctions at home.
4. Plan Your Meals
Itâs much easier to stick to a budget when you have a plan. Plus, having a purpose for each grocery item you buy will ensure nothing goes to waste or just sits in your pantry unused. Donât be afraid of simple salads or meatless Mondays. Not every meal has to be a gourmet, grandiose experience.
5. Keep a Fridge Grocery List
Keep a magnetized grocery list on your fridge so that you can replace items as needed. This ensures youâre buying food you know youâll eat because youâre already used to buying it. Sticking to a list in the grocery store is an effective way to keep yourself accountable and not spend money on processed or pricey items â thereâs no need to take a stroll down the candy aisle if itâs not on the list.
6. Eat Before You Go to the Store
If your mother gave you this advice growing up, she was onto something: according to a survey, shoppers spend an average of 64 percent more when hungry. Sticking to a budget is all about eliminating temptations, so plan to eat beforehand to eliminate tantalizing foods that will cause you to go over-budget.
7. Be Careful with Coupons
50 percent off ketchup is a great deal â unless you donât need ketchup. Beware of coupons that claim youâll âsaveâ money. If the item isnât on your list, youâre not saving at all, but rather spending on something you donât truly need. This discretion is key to saving money at the grocery store.
8. Embrace the Bulk Section
Not only is the bulk section of your grocery store great for cheap, filling staples, but itâs also the perfect way to discover new foods and bring variety into your diet. Take the time to compare the price of buying pre-packaged goods versus bulk â itâs almost always cheaper to buy in bulk, plus eliminating unnecessary packaging is good for the planet.
Bonus: a diet rich in unprocessed, whole plant foods provides virtually every nutrient, ensuring optimal health and keeping you from spending an excess amount on healthcare costs.
9. Bring Lunch to Work
Picture this: youâre trying to stick to a strict food budget, and one day at work you realize itâs lunchtime and youâre hungry. But alas, you forgot to pack a lunch. All the meal planning and smart shopping in the world wonât solve the work-lunch-dilemma. Brown-bagging your lunch is key to ensuring your food budget is successful. Plus, it can be fun! Think mason jar salads and Thai curry bowls.
10. Love Your Leftovers
Would you ever consider throwing $640 cash into the trash? This is what the average American household does every year â only instead of cash, itâs $640 worth of food thatâs wasted. With millions of undernourished people around the globe, throwing away food not only hurts our budget but is a waste of the worldâs resources. Tossing food is no joke. Eat your leftovers.
11. Freeze Foods That Are Going Bad
To avoid wasting food, freeze things that look like theyâre about to go bad. Fruit thatâs past its prime can be frozen and used in smoothies. Make double batches of soups, sauces, and baked goods so youâll always have an alternative to ordering takeout when you donât feel like cooking.
Sticking to a food budget takes planning and discipline. While it may not seem fun at first, youâll likely find that you enjoy cooking and trying a variety of new foods you wouldnât have thought to use before. Being resourceful and cooking healthfully is a skill that will benefit your wallet and waistline for years to come.
Sources: Turbo | Fool | Forbes | Medical Daily | GO Banking Rates | Value Penguin
The post How to Budget Groceries: 11 Easy Tips appeared first on MintLife Blog.
