Free Money Finance

Top 10 Things Americans Wasted Money on in 2016

Dave Ramsey lists the top 10 things Americans wasted money on in 2016 as follows:

1. Student loans.
2. Smartphone apps.
3. Gym memberships.
4. Daily coffee trips.
5. Car payments.
6. Car leases.
7. Car wash upgrades.
8. Lottery tickets.
9. Timeshares.
10. Shipping charges.

Here's where I net out on these:

1. I borrowed $5k from my grandmother which got me all the way through to my MBA. I paid it off a couple years after I graduated. My kids won't have debt at all given the college incentive we've set up.

2. I buy maybe two or three apps a year. Aren't many of the good ones free?

3. I do spend a good amount on a gym membership, but I USE it. I hit the gym five or six times per week and it's made a dramatic improvement in my quality of life.

4. Yes, I've battled the coffee demons and have (finally) won. I now make my own lattes for around 30 cents each.

5. We buy cars new and drive them forever. And we get great deals on cars by using my tried and true formula for saving on a new car. Here's an example.

6. No. We do NOT lease cars.

7. Ha! I hardly ever wash my car. :)

8. Nope, we don't buy lottery tickets.

9. Yikes! I'm surprised timeshares aren't higher up on the list. They are HUGE money sucks!

10. I don't pay to have things over-nighted to me. If I need it that quickly I can run to a local store. I do have Amazon Prime ($100 a year), so I pay my shipping upfront, but the time savings is well worth it to me.

So that's my list. How do you stack up against these?

Star Money Articles for the Week of February 20

Welcome to this week's edition of Star Money Articles.

Equities suggests we buy a house under our price cap.

Centsibly Rich asks if frugal living is a sacrifice.

Money Boss tells how to set good goals.

The Green Swan says the government doesn't want you to retire early.

ESI Money says that many "experts" aren't really experts.

Finally, my book of the week is The Richest Man in Babylon One of the only five money books you'll ever need.

Have a GREAT weekend!!!

Best Cities to Buy a Home

Go Banking Rates lists the best cities in each state to buy a home.

You can browse the list to see which ones you like, but I want to note that I've lived in three of them:

• Colorado Springs, CO
• Cincinnati, OH
• Pittsburgh, PA

Not only were these great places to live, but they were relatively inexpensive. As we know, where you live can make a big impact on your finances.

So we were able to live in wonderful places, make a large income, and save a ton on expenses. That's a pretty good deal, right?

How about you? Have you lived in any of the "best cities" on this list?

Some Things to Do When You Retire

Racing toward Retirement suggests some things you could do during retirement including:

• Hobbies
• Exercise
• Travel
• Volunteer
• New Career
• Learn something new

As a relatively new retiree, here are my thoughts on these:

• I am spending some time on hobbies/fun activities. I'm playing video games I wouldn't have the chance to play otherwise, watching lots of movies with family, and have time to hike trails in Colorado (where I live) when I want.
• Exercise is an awesome perk of retiring. I go to the gym five times a week and walk a ton every day to boot. My physical fitness is the best it's been in years -- maybe in my lifetime.
• We haven't traveled a ton yet during retirement though I did get two trips home to Iowa this past fall. In 2017 we have trips planned to Seattle, Destin, FL, Virginia, Yellowstone, and maybe one or two other places.
• I work on the board of a non-profit helping them to raise money. It's a nice way to spend some of my retirement time.
• I've had the chance to take many jobs since retiring but so far have sidestepped them all. Not sure if one will snag me or not.
• I'm learning something new all the time, especially as it pertains to blogging and related software/tools. Also learning a lot about cooking as I now have the time to pursue it.

How about you? What would you like to do when you retire?

Star Money Articles for the Week of February 13

Welcome to this week's edition of Star Money Articles.

Retire by 40 prefers DIY retirement planning.

Mustard Seed Money budgets for a vacation.

Lauren Greutman lists the five best ways to spend a tax refund. 

Debt Roundup says to stop trying to take the easy road.

A Wealth of Common Sense covers consistency and self-delusion.

Finally, my book of the week is The Millionaire Next Door: The Surprising Secrets of America's Wealthy. One of the only five money books you'll ever need.

Have a GREAT weekend!!!

Nine Resume Killers

Business Insider lists nine resume killers as follows:

• Hobbies -- No one cares and they are a waste of time and space.
• Objective -- It's obvious what your objective it - to get the job you're applying for.
• Personal pronouns (I, me, my) -- It's understood the resume is about you.
• Irrelevant experience -- Just adds clutter.
• Images -- Tacky and distracting.
• Professional contact information -- Do not use your current office number or email.
• Buzzwords -- Turn-off for hiring managers.
• Present tense for a past job -- Only use this for current job.
• Unnecessary words -- Wastes valuable space.

Here's my take on these:

• Hobbies -- For the most part, I agree. No one wants to see "video games" listed when you're applying for a business position. However, if your hobbies help in some way, I'd include them. For instance, if you're applying for a marketing job at a video game maker, the fact that you're rated in the top 100 in the world on their main game is a selling point.
• Objective -- I hate objectives and completely ignore them as a hiring manger. As such they are simply space wasters -- and it's usually prime space they waste (at the top).
• Personal pronouns (I, me, my) -- Of course. This is resume writing 101 and when someone uses personal pronouns it screams "amateur!"
• Irrelevant experience -- I would summarize it if it's needed to otherwise cover work gaps.
• Images -- Unless 1) you're a creative of some type (like a graphic designer) or 2) in an industry where it is expected (newscaster, model).
• Professional contact information -- Don't we all have our own private cell numbers and email addresses by now?
• Buzzwords -- Again, it screams "amateur!"
• Present tense for a past job -- Do you know how to write or not? Doing this says "no".
• Unnecessary words -- You need to be short and sweet.

A good list overall. What do you think of it?

There's a Huge Difference Between Average Salary Increases and Top Increases

Here's a piece from Kiplinger's where they ask a compensation expert what 2017 looks like for pay.

They begin by asking what kind of a raise people can expect in 2017. Her response:

Companies are forecasting 3% increases, similar to years past. But how that budget is spent may vary by person. Employees with the highest possible rating could see increases in the range of 4.5% to 5%, while low performers get an increase between 0.7% and 1%. Bonuses for salaried employees are projected to be 11.6% of pay, on average, with rewards for special projects or onetime achievements set at 5.6%, on average.

I've been saying for years that there's a HUGE difference between earning the average increase and a top-level increase. The difference between 3% raises and 4.5% to 5% raises over the course of a career adds up to an additional several million dollars over the course of a working lifetime. That's why I always stress that people need to grow their careers. It's a key step in becoming wealthy.

Next they ask her what workers can do to improve their standing. In other words, how can they get those top raises? Her response:

A lot of companies are making the process more about feedback than about performance rankings. That means there's a real opportunity to sit down with a manager and make sure there's a mutual understanding: What’s really expected of me, how will I be measured, and how will that impact my pay? The pace of work changes quickly, so ask how your goals are changing. Employees can also ask about more-individual approaches to work: Can I work from home or work alternative hours? A lot of times these programs are not communicated as well as they could be. They might not put dollars into your pocket, but they make life easier.

The key is to develop a systematic way to both over-perform and have your boss know that you over-performed. If you can do this, top raises will be more of a way of life for you and your income will take off, helping you make millions more over your career's lifespan.

Star Money Articles for the Week of February 6

Welcome to this week's edition of Star Money Articles.

Money Boss shares the story of a frugal jerk.

The Green Swan says award travel is changing.

Think Save Retire tells us to just stop.

Budgets are Sexy offers the ten crack commandments of finance.

ESI Money lists the only five money books you'll ever need.

Finally, my book of the week is Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School. I heard the author and loved what he had to say. My book is on the way and I can't wait to read it!

Have a GREAT weekend!!!

How Much Do You Pay to Stay Fit?

Last year Money Magazine ran an infographic on the cost of keeping fit.

There are a few facts from the piece that I want to highlight and comment on.

The first one was the median annual health club dues. It was listed as $828.

We pay more than this. Our club runs $149 per month for four of us. But it is top-of-the-line and seems in line with what we get.

Between the four of us we are at the club 60 times or so per month, so on a cost-per-trip basis it's not that expensive.

On top of that I pay a trainer $89 a month for one session. TOTALLY worth it! He's moved me from 28% body fat to 16%. Better yet, he's all but eliminated my back issues.

I've spent thousands on doctors over the years trying to cure my back, so the money I spend on the trainer is well worth it.

The next piece of info Money shares is the earnings boost if a person exercises 3+ hours a week. For men, the boost is 6%. For women, it's 10%.

Assuming the average household makes $50k per year, a 6% boost is $3k and a 10% boost is $5k. So that health club can actually pay off -- as long as you use it.

Finally, Money asked people how much they plan to spend a year on fitness. The outliers are very interesting.

33% said they plan to spend less than $100.

This must be people that do absolutely nothing as even people who participate in low-cost exercise programs (like running) need things like shoes, apparel, etc.

23% said they plan to spend more than $1,000.

This is likely due to people like me who go to higher-end gyms as well as people who cycle, run triathlons, and are fitness fanatics in one way or another.

How about you? How do you fit into these stats?

Another Vote for Attractiveness

Last year Money Magazine ran a feature article called Help! I Want a Career Makeover.

Some of it had a few career tips here and there, but much of the piece was doing a real makeover -- changing hair, make-up, what a person wore, etc. to make them more appealing at their job.

In other words, Money was recognizing that making yourself more attractive is a key part of growing your career. Of course it is.

I've covered this topic several times in the past. Some highlights:

• Make More Money by Being Attractive
• Is Your Image at Work Killing Your Career?
• Using Your Looks for Career Success
• How to Make Up for Being Ugly

As I said in those posts, you don't have to be the next Brad Pitt or Jennifer Aniston to get ahead. But you do need to take care of the basics that make people more attractive: proper hygiene, dress nicely, groom yourself properly, no crazy hair-dos, piercings, and tattoos, etc.

It's stuff that should come fairly naturally but unfortunately doesn't for many people.

So consider this a public service reminder to check what you do to maximize your attractiveness. Your career (and your wallet) will thank you.

Star Money Articles for the Week of January 30

Welcome to this week's edition of Star Money Articles.

Gen Y Finance Guy says a high income is the road to a high net worth.

Luke 1428 lists three principles from the Bible that help you build wealth.

New Retirement offers thoughts on how to transition to retirement.

Retire in Progress suggests early to bed and early to rise.

Hope and Cents gives 18 money quotes you haven't heard yet.

ESI Money tells how to work the ESI Scale to financial independence.

Finally, my book of the week is The One-Minute Workout: Science Shows a Way to Get Fit That's Smarter, Faster, Shorter. I heard the author interviewed on Tim Ferriss' show and he was quite compelling. Can't wait to read the book!

Have a GREAT weekend!!!

Do You Have Any 2017 Vacation Plans?

This is the time of year when I've had enough of winter and begin thinking of getting away.

We had originally planned to take a cruise last month, but both of our kids got new jobs and couldn't afford the time off.

So instead, we're staying home.

We do live in Colorado and hope to hit the ski slopes sometime this month, but other than that, we have no winter vacation plans.

Somewhat on the radar for trips this year include:

• My daughter's senior trip (looks like Seattle)
• Trip to Iowa to see family around Easter
• A late spring trip to Destin, FL with my family and my parents
• Moving my daughter to college in Virginia in late summer
• Fall/late fall trip to Yellowstone that we put off last year

We're also thinking of renting a place on a beach in the Caribbean in January of 2018, but that's pretty far away to lock in at this point.

We live in a tourist area so there's always a lot to do in between "official" vacations.

One great thing about retirement is that time (when to go) is mostly taken out of the equation. This freedom allows us to go places at off-peak times which usually means lower prices and fewer crowds.

How about you? What are your vacation plans this year?

Mobile Moolah: How to Make Money Using Your Mobile Phone

This post is from FMF contributor Peter Shannon.

With the ringing in of a New Year, people are setting their resolutions for 2017 with many focusing their efforts on improving upon their financial outlook. One way in which they can increase their income is to use their mobile phones.

Locket

This app pays you for using your phone’s home screen as an advertising space. Anytime you unlock your phone, an ad will appear. You can opt to interact with the ad or simply continue on to your phone. In both situations you still get paid from Locket depending upon how many times you unlock your phone over the course of a day. Currently only available for use on Android phones, Locket pays out via PayPal.

Receipt Hog

Everyone shops so this particular app can pay your back for doing so. Also, users may be paid to take surveys. Simply download the app and scan in your receipts. The app will provide you with virtual coins that can be converted into cash. Receipt Hog uses this information in its market research. Users can submit as many as 20 receipts each week.

Mobile and Online Casino Sites

Online gaming has long been a fun way to earn some extra cash. Many casinos also have developed mobile versions of their sites to make it easier to play on the go. If you commute to work this can be a great time to earn some money from playing your favorite casino game or trying your hand at poker to pass the time. Take advantage of promotions and bonuses to further stretch your playing dollar.

Be an Uber Driver

Uber is becoming a popular transportation method in need of drivers. After signing up with Uber, you would consent to a background check. Once approved, you can begin receiving ride requests through the Uber app. The best thing about this is you can do it when it fits your schedule. Turn the app on when you’re willing to accept ride requests and turn it off when you aren’t.

Consider one of these options for improving upon your personal financial situation in 2017.