If you draw a paycheck, you’re due an extra $160 in January and February thanks to the Temporary Payroll Tax Cut Continuation Act of 2011.
What’re you gonna do with your windfall? Maybe not much. It’s pretty easy to miss $20 more in salary, especially if fixed expenses (groceries, insurance, child care, gasoline) keep going up.
Note: This is not a political column. I repeat: This is not a political column. I really don’t care what you think about the payroll tax cut. Please keep all your #$@!# dumb-o-crat policies or #$@!# con-man-servative hatefulness comments until a later date. Like, um, never. Get Rich Slowly is a personal finance site, not a flame-throwing political forum. Thank you for not foaming.
Technically you have two choices: Save it or spend it. I’d like to suggest a third: Save it or spend it intentionally.
You could go out to lunch a couple of times each week. You could treat yourself to $20 worth of cupcakes or ceramic clowns from the dollar store. Or you could convince yourself that each double sawbuck represents an opportunity to improve your life.
Which it does — if you look at it the right way.
If someone offered you $160 in cash, you’d probably grab it. (And if you didn’t, can I have yours?) But to some people, an “extra” $20 a week seems penny-ante.
Thanks to rampant ATM use, $20 bills have become the coin of the realm. I believe this has devalued them in the popular imagining — and there’s no denying that $20 doesn’t go very far these days.
True and Cumulative Costs
In particular, it doesn’t go very far if we fail to pay attention to spending. We grab a soda and some chips when we go in to pay for gas. We add a magazine and a few packs of gum at the grocery checkout counter. We always get popcorn at the movies because, well, we just do, that’s all.
It’s only $3, or $5, or $7. Besides, we deserve it.
That’s how some people get into trouble in the first place: By neglecting to frame expenses in terms of their true and cumulative costs. Dropping a few hundred dollars on a spur-of-the-moment weekend getaway is great fun at the time, but you may regret it if you can’t pay the balance in full.
The money you spent (and continue to spend, in the form of credit card interest) also is cash that can no longer be used in a smarter way, such as retirement or a pay-cash-for-a-car fund.
Let me be clear: I am not saying that you can never have any of the things you want. In fact, I am learning — slowly! — to spend a little money on myself. So if you’re in a position to drop that extra $20 per week on chai tea or sheet music, by all means drop it.
And if not? Make those temporary twenties work damned hard for you — and incidentally, their job might be to pay for something fun, such as frugal entertainment.
Pay It Down, or Pay It Forward
How can you put that money to work? Use it for the following:
Emergency fund. Not to belabor the obvious, but that $160 is a nice fund-plumper. And if you’re brand new at this, the sum is nearly one-third of the $500 that Liz Weston says you need in the bank.
Retirement. Put the money into your Roth IRA or whatever other fund you have. (Don’t have one? Let this be the seed money.)
College fund. Add an extra $160 to Junior’s post-secondary plan.
Pay down debt. One hundred and sixty dollars = a nice debt snowflake.
Shopping, if you must:
Nonperishables. Flour, sugar, dry beans, tuna, rice, canned goods, pasta, your favorite cereals — and give yourself bonus points for buying on sale with coupons. Your grocery bill will drop a bit for the next month or two as you eat your way through the storehouse. And if something unexpected happens (illness, car repairs, job loss), you’ll congratulate yourself on having a well-stocked pantry.
Pet supplies. When you see a screamin’ deal on food or litter at PetSmart or PETCO, stock up. Improve the sale price by paying with plastic scrip from a discounted gift card site.
Cut-rate couture. Watch for end-of-season sales on wardrobe basics you know to be durable and comfortable. You might not have to buy work slacks for a year or two. Or browse a thrift store or consignment shop — again, looking for clothing that’s well-made and flattering. What fun to see how far a $20 bill will go, especially on 50-Cent Day. (I’m referring to the price tag, not the rap star.)
Shoes. Use price-comparison and cash-back sites as noted above to find sale prices on your favorite make and model. I recently ordered three pairs of my favorite old-lady comforts for about $153 (minus the nearly $11 cash-back rebate).
Socks and undies. Bor-ing? You betcha. But elastic isn’t forever and your socks will eventually develop holes. When crew socks and tighty-whities go on sale, buy half a dozen or more of each.
For the health of it:
New glasses/contacts. Still squinting through those three-year-old specs? Discount eyewear emporia regularly offer coupons in newspapers and Valpak envelopes, and through online coupon sites like Savings.com and Retail Me Not. Oh, and stock up on contact lens solution when it goes on sale.
Vitamins. Aim for a three- or six-month stash of your favorite supplements. Use a price comparison website like Price Grabber or Cheap Uncle to find the best deals, and see if the lowest-priced merchant can be accessed through a cash-back shopping site like Mr. Rebates, Extrabux or FatWallet.
OTC meds. Restock your medicine cabinet with analgesics, bandages, antibacterial ointments, allergy meds and the like. You may be able to get these free or nearly so by combing coupons and rebates.
Dental work. Don’t have dental insurance? Me neither. But I regularly see social commerce vouchers and Valpak coupons for X-rays and cleanings. They cost $30 or less. A professional cleaning and a big-picture look at incipient problems may even save your life.
That’s entertainment:
Discounted movie tickets. Warehouse clubs sell them. However, you might get a much better deal through — yep — a discounted gift card site.
Annual pass. Museums, zoos, botanical gardens, opera, the orchestra — whatever floats your boat.
The Entertainment Book. It’s full of BOGOs for city attractions from art to boat tours. Buy it through a cash-back site for a rebate of up to 35% plus free shipping.
Condoms. Go ahead and snicker. But not having protection can be pretty damned expensive in the long run. I know a couple whose second child is on planet Earth because “we were out of birth control and decided to take a chance.” No, I couldn’t believe it, either.
Thinking ahead:
Warehouse club membership. Even studio dwellers might be able to buy in bulk if they’re creative about storage.
Go green. Replace some incandescent bulbs with LED or compact fluorescent bulbs and trim your electric bill. Faucet aerators and low-flow showerheads reduce both energy and water/sewer bills. If the commode in your abode is really old, consider a water-saving toilet.
Car care. Watch for sales on fluids (antifreeze, windshield washer, a case of motor oil, et al.), filters and replacement wiper blades. If your tires have receding treadlines watch for sales on those, too. (Don’t forget Craigslist. A friend bought four high-quality, nearly new tires for $100.)
Ant or Grasshopper?
The grasshopper generally has a swell summer: long days at the beach, trips to amusement parks, ice cream for breakfast. Meanwhile, the ant is weeding the garden, clipping coupons and hanging all his laundry to dry outside.
Once the temperature drops, the grasshopper is likely to regret his profligacy. The ant, meanwhile, has a storeroom full of pinto beans and tube socks. All the windows have been caulked, too.
Of course, it’s your money and therefore your decision. But try thinking of your $160 in ways like these:
One night at a nice hotel, or an extra chunk of fundage into your Roth. (Oh, compound interest, I’ve missed you so! Let’s never fight again!)
A couple of months’ worth of cable vs. new glasses. (What good is TV anyway if you can’t see it?)
Dinner for two at a nice restaurant, or some depth to your pantry.
One more suggestion: Split the difference. Get yourself $80 worth of truffles and apps and $80 worth of something less than sexy but ultimately beneficial, such as cat litter or dental X-rays. Even $40 will pay for a fair amount of decadence, especially if you use a coupon.
You may have noticed that we’ve had a little bit of a love affair with Seattle lately. Did you catch our list of the city’s top 10 neighborhoods? Or how about the Seattle blogs we highly suggest for locals?
Today we’re taking it up a notch by connecting with a Seattle expert for some insider knowledge about what it’s like to live in the Emerald City.
That’s where Mollie in Seattle comes in.
We spoke with this local fashionista (who resides in the happening neighborhood of Belltown) about life in northwest. Here’s what she had to say:
Our internal research shows that Belltown is a hot neighborhood among renters. Any idea why this area is in such high demand right now? “There’s a lot to do here. I’ve lived in Belltown for a few years, and I’ve lived in different buildings. I love being close to the water. I can actually see water from my apartment. That’s really important to me. I’m in the middle of downtown. I’m close to Olympic Sculpture Park and Pike Place Market is only about a half mile south. I like that it’s a community of people like me – working young professionals in their 20s. And I’m close to so many things! I do drive to work, but on weekends there’s so many options. I can walk to the market and get fresh fish that was just caught and make a good dinner. I’m within walking distance of tons of amazing restaurants. There’s also parks for running and exercising which I’m really into.”
We also hear that Capitol Hill is a hot neighborhood in the city.
“Yes, Capitol Hill has tons of restaurants and cool bars popping up. It’s a great area for foodies or people who get really excited about craft cocktails. If I ever give anyone restaurant recommendations, I’ll usually include places in Capitol Hill. It’s more of a hipster scene. There’s a university there, so there’s a lot of students. It can be a bit chaotic. I prefer to be somewhere that’s a little more quiet.”
In your opinion, what makes a neighborhood stylish, trendy or hip?
“From where I live, I have a lot of options. I can go to the gym for boxing. There’s a nearby trail for running. There’s plenty of restaurants and speakeasies. Having lots of options I think is important. I can go to fancy dinners, or have takeout delivered to my apartment. There’s lots of local businesses so I can meet the owners of the restaurants I go to. I know boutique owners. I can support local people who are trying to make this community a great place.”
We know that you love living in Belltown. But if you could pack up and move to any other Seattle neighborhood tomorrow, which one would you choose and why? “That’s a tough question! I actually see myself here for quite a while. But if I had to move, perhaps I’d consider Madison Park. It’s a little past Capitol Hill and it’s near the water – Lake Washington. There’s more houses and families. It’s a beautiful neighborhood with homes built in the 1900s. There’s tons of history there and it’s only about a 10-15 minute drive into the city.”
Now let’s get a little into your element. What Seattle neighborhoods do you think are best for shopping, especially for renters on a budget? “I’m about a 10-12 minute walk away from Pacific Place which is really popular for shopping. There’s a Nordstrom, Zara and Forever 21. There’s also a TJ Maxx and Ross nearby where you can find brand names for really low prices. In Belltown, there’s lots of cute boutiques for men’s and women’s clothes. There’s even some high-end consignment shops. Actually, I just found a pair of Christian Louboutin shoes for, like, $100. And at Pike Place Market, you can get locally handmade things like jewelry.”
Are there any destinations in Seattle that visually take your breath away? “Yes, a lot of them, actually.
Olympic Sculpture Park is where you can see huge pieces of artwork. It’s on the water so you can see everything – the ocean, Mount Rainier, the city skyline and the Space Needle.”
“Kerry Park is where you go to see a view of Seattle. It’s a huge spot for marriage proposals and photo shoots.
The Fairmont Olympic Hotel has stunning architecture.
At the glass garden [Chihuly Garden and Glass], even if you don’t go inside, you can still see inside the museum. It’s like a jungle of flowers and plants, but it’s all made of glass.”
Tell us a little bit about your apartment renting experience. “I used to live closer to Pike Place Market. But the building I’m in now has more room. It’s further north from the market, but it’s more quiet which I like. There’s tons of other awesome buildings in the neighborhood. It’s safe. They offer concierge service, underground parking, great amenities, rooftops, gyms. It’s great.
I love Seattle. I was born and raised here. I’ve traveled a lot, but it’s always nice to come back home.”
You don’t have to be an environmental scientist to want to help preserve our planet. With a few small changes, you can start making more eco-friendly decisions with your money.
Here are 12 ways to go green with your finances today.
What’s Ahead:
1. Invest in green stocks and funds
Green investing is a popular way to make your money work for the environment. It often includes building a portfolio made up of companies with strong environmental, social, and governance (ESG) values.
You can also invest in green funds or green ETFs, which are portfolios of companies that have a positive environmental impact.
For example, Empower is one of the best robo-advisors for green investing. It has low fees and plenty of socially responsible investing (SRI) portfolios to match your goals and values.
(Personal Capital is now Empower)
Read more:
2. Use a green bank or credit union
Supporting eco-friendly initiatives doesn’t stop at where you invest your money. You can also support the environment by using a bank or credit union that has sustainable practices.
Look for a financial institution that uses paperless banking, funds renewable energy projects, avoids fossil fuels, or has other green policies in place.
And if you want to really up the ante, you can make sure the institution is a Certified B Corporation (which means they’re legally required to follow certain sustainability and diversity requirements).
Some of my favorite green banks are:
Aspiration Bank: Has spending and saving accounts, as well as investment accounts with fossil fuel-free portfolios.
Ando Money: On a mission to fight climate change. Accounts come with unlimited 1.5% cash back on purchases, free overdraft protection, and early paydays.
BankPurely: Plants a tree every time someone opens a SavingPurely account.
Read more:
3. Get an eco-friendly credit card
With a green credit card, you can help the planet while also earning rewards for yourself.
There are now a few different companies that offer eco-friendly credit cards. Most reward you for shopping with green businesses or help offset your carbon footprint.
One of the best green credit cards is the Aspiration Zero Credit Card. It earns 1% cash back and plants a tree every time you make a purchase to help neutralize your carbon footprint.
4. Make your home more energy-efficient
Source: giphy.com
Another way to turn your money green is to make your home more energy-efficient. There are tons of simple ways to do this:
Install LED light bulbs.
Weatherstrip your doors and windows.
Unplug electronics when you’re not using them.
Turn the faucet off when you’re not using it.
Install low-flow fixtures in your home to save even more water.
Always run your dishwasher and washing machine when it’s full.
Air dry your clothes instead of using the dryer.
Install solar panels.
You can even get a tax credit for making certain energy-saving improvements to your home.
5. Consider a green car
If you’re in the market for a new car, look into fuel-efficient or electric models. Not only will you save money on gas, but you’ll also be doing your part to reduce emissions. Plus, you may be eligible for a tax credit if you buy a qualified electric vehicle.
Read more: The cost of driving a hybrid
6. Drive less and drive smart
Speaking of driving…
When you do need to use a car, there are a number of ways to save money and be more eco-friendly. This includes carpooling, using public transportation, and biking or walking when possible, all of which can help reduce your carbon footprint.
And when you do drive, you can save fuel and money by driving the speed limit, keeping your tires inflated, and combining errands into one trip.
7. Replace disposables with reusables
Source: giphy.com
Another easy way to make your money green (and reduce your impact on the environment) is to replace disposables with reusables.
For example, you could:
Use a reusable water bottle instead of buying bottled water.
Bring a reusable mug to the coffee shop.
Carry stainless steel straws with you so you don’t have to use plastic ones.
Bring your own bags to the grocery store.
Invest in reusable menstrual products like cups, cloth pads, and period panties.
These are just a few examples — there are many more ways to reduce your impact by switching to reusables. And the best part is, they often save you money in the long run. So if you’re looking for an eco-friendly budgeting hack, this just might be it!
8. Avoid fast fashion
Source: giphy.com
The fast fashion industry is one of the biggest polluters in the world. The production of clothing uses a lot of resources, and most of it ends up in landfills. When you buy from fast fashion brands, you’re contributing to this cycle of waste.
Use these two alternatives instead:
Switch to slow fashion
Instead, opt for slow fashion brands that focus on sustainable and ethical production.
Some of the best slow fashion brands are Reformation, Everlane, and Girlfriend Collective.
You may pay more upfront for a single item when you shop slow fashion, but these items are built to last. And they often end up being cheaper than fast fashion brands when you factor in cost per wear. (This is an item’s price divided by how many times you plan on wearing it.)
Shop secondhand
You can find high-quality secondhand clothing at thrift stores, consignment shops, and online. It’s a great way to repurpose high-quality items that have already been produced and keep them out of the landfill.
Read more: Conscious consumerism: how to spend your money with intention
9. Minimize your food waste
Source: giphy.com
A four-person family wastes about $1,500 a year on uneaten food. This food then rots in a landfill for decades. (Did you know it takes 25 years for lettuce to decompose?!)
One of the best ways to reduce your impact on the environment — and develop more eco-friendly budgeting habits — is to minimize your food waste.
Plan your meals so you use all the food you buy, and compost any scraps. You can even save money by turning leftovers into new meals.
Read more: How I used local farms to slash my food bill
10. Eat less meat
Meat production is a major contributor to greenhouse gas emissions, so eating less of it can help the environment. If you’re not ready to go completely vegetarian or vegan, try incorporating more meatless meals into your diet.
Read more: The true cost of going vegan
11. Start an eco-friendly side hustle
There are a number of ways to make extra income while also helping the environment. You could start a composting business, offer carpooling services, or sell eco-friendly products. If you’re passionate about sustainability, there are plenty of opportunities to make a difference — and a profit.
Read more: Side hustle ideas: 35+ ways anyone can earn more money on the side
12. Donate to environmental charities
Last but not least, you can make your money green by donating some of it to environmental charities. There are a number of organizations working to protect our planet, and your donation can help them continue their work.
Some of the top environmental charities include the Nature Conservancy, the Sierra Club, and the Environmental Defense Fund.
When you donate to these organizations, you’ll be supporting their efforts to protect our planet. And you’ll be making a difference in the fight against climate change.
Read more: You’re not too broke to give to charity (and 4 other reasons to give)
Summary
Making even just a few of these changes can help you live a more eco-friendly lifestyle. And as you start making greener choices with your money, you’ll be doing your part to protect our planet for future generations.
Save more, spend smarter, and make your money go further
If you dream of having a baller bank account and the freedom to kick back without a financial worry in the world, it’s possible to hack your spending habits until you’re sitting on a comfy cushion of cash. And since studies show most of us can adopt new, long-lasting behaviors after just three weeks, you could be well on your way to a richer life by the end of the month.
Let go of any worries about your bank account balance, and start living your best life today. We challenge you to take the next 21 days to establish new spending habits! Which of these money-saving ideas will YOU commit to?
WEEK 1 – Establish a Baseline
Start the 21-Day Challenge by figuring out where you stand financially and which expenses you can temporarily trim without shocking your system.
Identify what’s dragging you down
Take a good look at last month’s expenses to get an idea of how much you spent and what you bought. Budgeting apps like Mint can help you by importing and categorizing your electronic transactions in minutes, making it easy to spot areas where you’re overspending.
Identify Unnecessary Expenses: Keep an eye out for businesses you regularly spend small sums of money with and put them on a blacklist. Keep that list on your phone or in your wallet.
Don’t Tempt Fate: Avoid temptation by not carrying cash or taking a different route to work.
Buy needs, not wants
It’s no secret that the best way to save money is to cut out impulse shopping, and only buy absolute necessities.
Feast Affordably: Go food shopping once a week and stick to the list you brought with you. Eat breakfast at home, pack your lunch for work and prepare dinner in your own oven.
Pass on Premium Products: From clothing to electronics to the type of gas you put in your tank, skip the top-shelf items in favor of their more-affordable alternatives.
Use what you’ve got
Another great way to cut expenses is to be resourceful about what you’ve got lying around the house. You don’t need to start making your own soap like you’re the newest member of Fight Club, but you’ve likely got some stuff you could be putting to good use.
Expand Your Recipe Repertoire: Make homemade meals using sites like MyFridgeFood.com that let you to plug in the ingredients you have before telling you what recipes you’re equipped to cook.
Pay in Other Ways: Don’t eat out anywhere without a coupon or gift card.
Enjoy Entertainment You Own: Skip the theater this week and dust off an old DVD instead. Or start reading a new book if it’s been a while since you cracked one open.
WEEK 2 – Cut Off Some Companies
Making a few quick phone calls during the second week of this 21-Day Challenge might save hundreds on recurring expenses, and save you a mountain of money over the years.
Explore your options
Odds are that a talking gecko and an aproned brunette have been jockeying for your insurance dollars for quite some time. Maybe one of them can save you some scratch?
Inquire about Insurance: Collect quotes from competing insurance companies to see if another company offers you a better deal.
Channel Your Inner De Niro: Test your acting skills by threatening to cancel your cable or cell service because your bill’s too high. Most companies will cut you a deal before letting you leave.
Chat up Creditors: Got credit card debt? Call up your card issuer and ask for a reduced rate, or transfer your balance if it means long-term savings.
Break up with brands
Why buy the paper towels with the highest thread count or use the same sandwich bags as the Kardashians, when brand XYZ does the same job? Choosing store-brand products is an effective cost-cutting method that can save you a bundle at checkout.
Focus on Price, Not Packaging: From paper towels and cleaning supplies to painkillers, opt for more affordable off-brand products on your next trip to the store.
Ditch some subscriptions
Now that you’ve watched Beyoncé’s Lemonade, do you still need that subscription to Tidal? Canceling your underused memberships could supercharge your savings.
List Your Memberships: Make a list of any subscriptions or memberships that renew on a monthly or annual basis. Only keep the ones you can’t live without.
Flex for Free: Instead of renewing your gym membership, exercise outdoors, or take advantage of free or donation-based classes offered by many yoga studios and gyms.
Opt Out of Annual Fees: If you have a lengthy credit history and not a lot of debt, consider canceling any credit cards with an obligatory annual fee.
WEEK 3 – Hone New Habits
The home stretch of our 21-Day Challenge is all about the little things. Making small, subtle changes in your daily life and routine can lead to big savings over time.
Slay some vampires
Cut your electricity bill by unplugging “vampire appliances” that suck up power even when they’re not being used.
Stop Paying for “Standby”: If you only use your printer, stereo, or video game console a few times a week, don’t leave those bad boys plugged in day and night. The same goes for any appliance with a digital clock or standby mode.
Unplug Your Internet: No one at home surfing the web while you’re at work? Wireless routers rack up kilowatt hours faster than just about any other appliance. Turn off or unplug your modem and router before leaving home and you could save a chunk of change.
Adjust Your Temps: Turn off your heater’s pilot light during warmer months, and learn to use your thermostat’s built-in timer to reduce your bill. Raising your refrigerator temp a few degrees can also make a measureable difference in your electricity usage.
Go swapping, not shopping
Itching for something new in your life? Instead of whipping out your wallet, tap into your network of friends, family and coworkers to find a slew of items you can breathe new life into.
Exchange Entertainment: See if any of your friends are open to trading books, DVDs or video games.
Purge, Not Splurge: Take items you haven’t worn in a year to a thrift store or consignment shop, some of which offer store credit for something new to you.
Trade Your Threads: Rather than hitting up the mall, organize a clothing swap to trade outfits and accessories with your friends.
Financial freedom starts today
Start Mint’s 21-Day Challenge today and see how much of a difference you can make on your bank account’s bottom line. Tweet or comment about your cost-reduction strategies this month, and stay tuned for our recap.
Save more, spend smarter, and make your money go further
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Having children can be rewarding, but thanks to higher rates of inflation, it’s also getting more expensive. Today, parents can expect to spend around $310,000 to raise a child from birth up to age 17, according to a recent Brookings Institution analysis of data from the USDA.
If you’re considering growing your family, understanding all the costs involved can help you prepare financially. Let’s take a closer look at the average annual cost of raising a child in the U.S. and how that figure has changed over the past two decades.
What Is the Cost of Raising a Child in the US in 2022?
Adjusting for higher future inflation, the Brookings Institution estimates it costs $310,605 for a middle-class family to raise a child born in 2015 up to age 17. Of course, the amount you end up spending depends on a number of factors, including household income, the cost of childcare, and where you live.
If you want more personalized insights to help you plan your spending, consider using an online calculator.
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A Comparison of the Cost of Raising in Child in 2000 vs 2022
The average cost of raising a child in 2000 looked much different than it does now, thanks in large part to the recent surge in inflation rates.
In 2000, a typical middle-income family could expect to spend $165,630 to raise a child to the age of 17. In 2022, that same family would spend $310,605, according to the Brookings Institution analysis, which adjusted the USDA’s most recent estimates for higher expected future inflation. Note that this amount doesn’t include extras like summer camp or birthday parties, nor does it factor in the cost of college.
Top Expenses of Raising a Child in 2022
When it comes to the average cost of raising a child from birth to 17, middle-income families can expect to spend around $17,255 per year. The following table shows where that typically money goes.
Cost category
Average percent (%) of spending
Housing
29%
Food
18%
Child care and Education
16%
Transportation
15%
Healthcare
9%
Miscellaneous
7%
Clothing
6%
Source: USDA’s Expenditures on Children by Families, 2015
Top Expenses of Raising a Child in 2000
Average middle-income parents in 2000 spent around $9,201 per year on child-rearing costs. As the chart below shows, housing and food were the biggest expenses. But compared to 2022, parents spent less on other things, like healthcare and child care and education.
Cost category
Average percent (%) of spending
Housing
33%
Food
18%
Transportation
15%
Miscellaneous
11%
Child care and Education
10%
Healthcare
7%
Clothing
6%
Source: USDA Expenditures on Children by Families, 2000
How to Reduce the Cost of Raising a Child Today
No matter when you become a parent, you’ll likely have some major expenses. The good news is, it is possible to save money while raising kids. Here are some tips to consider:
• Look for ways to lower housing expenses. Housing is the number-one expense for families, so finding ways to trim expenses there can really help you save. For instance, if you’re planning to move, you may want to expand your search to include smaller, less expensive homes located in neighborhoods with lower property taxes.
• Purchase secondhand clothes. Kids tend to outgrow their clothing quickly. Rather than spend a lot on new outfits, shop secondhand whenever possible. Tag sales, thrift stores, and consignment sites are all good places to explore.
• Make the most of your local library. Are expensive streaming subscriptions eating away at the family budget? Consider canceling some of those streamers and heading on over the local library. Not only can you check out books and audiobooks for free, you can also rent DVDs and enjoy free events.
• Shop generic. When it comes to basics like diapers, toiletries, and household cleaners, skip the fancy brand names and go for less-expensive generic versions.
Recommended: From One Child to Two: How to Financially Plan
More Financial Tips for Parents
Whether you’re looking to start a family or add to your brood, there are also some smart financial habits you can start today that can make it easier to afford raising children. As a bonus, these habits can also help you teach your child about money management.
• Pay down debt quickly. When a borrower takes on debt, they repay not only the amount they borrowed, they also owe interest and fees to the lender in exchange for borrowing the money. That’s why it’s so important to pay off debt quickly. The sooner you erase your debt, the less interest you’ll have to pay.
• Create a budget that grows with your family. Coming up with a budget — and adapting it to meet your current needs — can help your finances roll with whatever changes life has in store. It’s a good idea to sit down once a month to evaluate what’s working in the budget, what can be improved, and what new expenses are on the horizon. A spending app can also help you keep tabs on where your money is going.
• Prioritize savings. When you’re raising a family, it’s easy to let long-term savings goals fall by the wayside. One way to make saving second nature is to sock away a portion of each paycheck into a savings account or investment account. By paying yourself first, you’re better positioned to reach your financial goals, whether that’s putting multiple children through college, investing, or saving for retirement.
Recommended: Creating an Investment Plan for Your Child
The Takeaway
Having a family can be rewarding — and expensive. The average middle-class family today will pay around $310,000 to raise a child to age 18. Housing, food, and child care/education are among the top three biggest expenses. The good news is, there are ways to manage expenses and still save for long-term financial goals.
If you need help organizing your finances, consider using a money tracker app. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
How much does it cost each year to have a child?
The average middle-class family will spend around $17,255 per year to raise a child.
How much does it cost to raise a child to 18 in 2023?
According to a 2022 Brookings Institution analysis of data from the USDA, a middle-class family will spend $310,605 to raise a child to the age of 18.
How much does a baby cost on average?
The average middle-income household family can expect to spend around $12,680 a year to raise a child from birth to 2 years of age, according to the most recent USDA data.
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Nothing you’ve done up to this point compares to owning a home. Buying a home is often the biggest purchase someone has made in their life, and it’s a big milestone – and financial commitment.
As exciting as moving into your own home is, you shouldn’t get swept up too quickly. Things are going to need attention and you’re going to need to budget for future expenses.
To avoid making your big purchase feel like a big mistake, here are some tips that responsible new homeowners should follow. With a little prep and planning, you can make your purchase a happy, positive experience.
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Budget for new costs
Before moving into a home, the buyer was most likely renting. Mortgage payments aren’t too far from rent payments, so you’ll be ready for that. But there are other costs to be aware of.
Property taxes are not only going to be there the entire time you own your house, but they’re likely going to increase as the value of your home rises. While you don’t need to keep a long-term plan to keep up with rising taxes, you should be prepared to budget for them annually – and expect to pay more each year.
Utilities are also a huge expense, especially for homeowners that aren’t prepared. Heating and cooling can account for nearly half of your total energy costs, so you should track your usage and invest in a smart system that reduces costs while keeping you comfortable.
On top of these, other expenses you should prepare for include:
Homeowners association (HOA) dues
Homeowners’ insurance
Mortgage insurance (not applicable to homeowners with a VA loan)
Add all these up and you’ll likely be paying a bit more than you were with your rental. On the plus side, you’re now paying for a property that you own.
Know what needs maintenance and cleaning
If something is neglected for too long, permanent damage could be caused. This means spending money to fix or replace it.
Keeping your home clean is important, from the carpets to the window screen to the gutters. You should also be checking on your roof, water heaters, furnace and other major appliances. Air conditioning filters will need to be replaced regularly, and lightbulbs are bound to go out eventually.
While spending money on something that isn’t broken can be frustrating, it’s better than waiting until the last minute. If that happens, you may end up spending much more than you could have if you acted earlier.
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Budget for furniture and appliances
Your home is probably going to be a bit bigger than your apartment, which is good. But you probably only have enough furniture to fit your old rental, so you might have to get some more furniture.
Furniture can be expensive, especially when new. Check out consignment stores to find good deals, and ask friends and family if they have old furniture they’re no longer using.
Appliances can also be pricey. If you haven’t bought the home yet, see if you can convince the seller to leave the appliances behind. These are called seller concessions, and they’re negotiated in the contract.
Get homeowners insurance
While homeowners insurance might seem like a waste of money, ignoring it could be the worst mistake a homeowner makes. You’ll probably be required to get homeowners insurance when you get a mortgage, but some homeowners drop it after so many years.
Remember, this is the biggest purchase you’ve ever made. You’ll want to keep it protected, even if it means spending a little extra each month.
Cash in on your tax return
Here’s a good part about owning a home: you can deduct a lot of expenses and end up getting a bigger tax return.
You should hire a professional accountant the first year you own a home, even if you do your own taxes. They’ll be able to help save you money, and you’ll be able to see how. There are too many intricacies to taxes and homeownership to go through, so you’re best off spending money on an accountant in year one and using your newfound knowledge in the future.
Keep some money in an emergency fund
The unfortunate reality of life is that things will go wrong at some point. You can avoid making these bad things worse by keeping an emergency fund.
There’s no perfect amount to keep aside, but many financial planners advise that you put aside 3-6 months’ worth of expenses. If you can save more, it’s never a bad idea.
Have you ever wondered how you could double your money with or without the stock market? The reality is, there are a ton of ways you can double your money by investing smartly and giving it enough time. There are also plenty of ways to double your money in a hurry — maybe within a day.
The thing is, it’s a lot easier to double a $300 or $500 initial investment than it is to double, say, $10,000 or $20,000. Either way, we all want our money to grow, and there are lots of ways to achieve a great return-on-investment on both your money and your time.
Let’s Talk Safety vs. ROI
Wouldn’t we all want an investment which gave us a 12% ROI and had no risk? That would be a perfect world.
Sadly, you won’t find an investment with decent returns which doesn’t come with a certain level of risk.
Think of safety and ROI as a seesaw. The more you have of one, the less you’re going to have of the other. As the old adage goes, “more risk, more reward.”
For example, let’s look at investments with low-risk.
Bonds are a common low-risk investment. If you buy a long-term bond, you can get around 4% back on your investment. This means that bonds will give you a modest return (depending on the type of bond) and they have almost zero risk.
At the other end of the spectrum, you’ll find stocks, REITs, and high-yield bonds. These are going to come with a much higher level of risk, but there is a chance you could make a lot more money over the long-term.
For example, you can put some money in a REIT. You could get dividends worth around 15%, but the real estate market can be shaky.
If someone ever tells you they have an investment you can make excellent returns on with ZERO risk, then it’s probably a scam. You will never be able to invest your money without the chance of losing some or all of it.
The Rule of 72
The Rule of 72 is an easy strategy you can use to determine how long it will take for an investment to double based on a fixed rate.
To use this method, all you have to do is take the number 72 and divide it by the rate of return you expect to receive. The number you get back is a rough estimate of how many years it’s going to take for the investment to double.
Here’s a good example: Let’s say you invest in a specific index fund known as the Mid-Cap Growth Fund from T. Rowe Price (RPMGX), which has returned a whopping 14.91% for investors over the last 10 years. Using the Rule of 72, you would find this fund might let you double your money in 4.82 years. That’s pretty amazing if you ask me.
But all funds are not created equal. Imagine for a moment you invested in VanEck Global Hard Assets (GHAAX) instead, which has featured an average return of .67% over the last 15 years. Using the Rule of 72, you would probably be shocked to find that you could double your money with this fund in 107 years. Obviously, that is not going to do you much good!
With all this in mind, one problem with the Rule of 72 is the fact that, the higher the rate of return is, the less accurate it becomes. This is due to the fact that, by and large, short-term investment returns are incredibly volatile and hard to predict. With that in mind, my suggestion is you never use the Rule of 72 as a “hard” rule. Instead, use it as a rough estimate of what you may be able to earn on an investment.
50/50 Approach
The 50/50 investment technique has become one of the most popular through the years.
The idea is simple: Put half of your investments in stocks and the other half in bonds. Ideally, the bonds will give you financial security while the stocks give you an opportunity to achieve much higher returns.
With that being said, my suggestion is to put half of your money into a CD. You will be able to sleep at night knowing you won’t lose the money, but you can still earn a slight return.
Take the other half of the money and put into some higher risk investments. This can be mutual funds or ETFs depending on your goals and your risk tolerance.
These investments can help you earn some extra returns without leaving you high and dry if something were to happen to the investment market.
7 Ways to Double Your Money Fast
If you don’t want to wait a decade or longer to double your money, there are some ways to double smaller initial investments in a hurry. Some of these strategies require more work than others, but at least one of them should work for you. Read over these options, pick one, and get started toward doubling your investment right away.
Get a free stock
When you open an account with Robinhood, you get a free stock. You don’t get to choose which stock since Robinhood randomly chooses from their inventory of settled shares. However, you will get a stock worth something, and you can keep it or sell it down the line.
Better yet, Robinhood will give you a free stock each time you refer a family member or friend who opens an account through your link. You can receive up to $500 in free stock through referrals each calendar year, which is pretty sweet.
Webull is another online brokerage firm that offers free stock when you meet certain conditions. Just remember that the stock you receive will be chosen automatically from their settled shares, so the value of your free stocks can vary. In total, you can receive a stock worth up to $250 for opening your account and another stock worth up to $1,400 with your initial investment of at least $100.
These options are actually better than doubling your money. Robinhood and Webull offer free money, and who wouldn’t want that?
Buy the right IPO
An IPO is an initial public offering, which is basically the first time a stock is being sold to the general public. IPOs can wind up flopping for sure, but you can definitely double your money or better if you buy into the right IPO at the right time.
Case in point: The IPO price for Facebook stock was around $38, yet its trading at over $290 as of this writing. If you had bought a single share at the IPO price point, you would have received a return of over 700 percent so far.
The same is true with Tesla stock, which was originally offered at around $17 per share. Tesla stock was recently trading at well over $2,000 per share, so initial investors basically made bank. The stock went through a five-for-one stock split in August of 2020, and investors in Tesla are still ahead by a lot more than double since just the beginning of 2020.
With all this being said, keep in mind that not all IPOs are created equal and that you can buy the wrong IPO just as easily as you buy the right IPO.
Take the SmileDirect Club Inc. (SDC) I received as a free stock from Robinhood, for example. This stock is currently trading at a little over $11 per share when the original IPO price was $23 per share. This means early investors in Smile Direct Club did not double their money. Instead, they have lost about half of their initial investment so far, provided they bought in at the IPO price and haven’t sold.
When it comes to IPOs, the most important factor to keep in mind is buying into companies positioned for growth. According to Barron’s, IPOs performed really well in 2019 with the average IPO gaining around 20 percent. A few IPOs from 2019 are up huge too, like Karuna Therapeutics (KRTX) and NextCure (NXTC).
Buy and sell sneakers
Shoes are pretty hot right now, and the spoils of their surge in value really does go to those who can put in some time and effort. There are many times in the last few years where I have purchased a pair of “hot” sneakers for around $800 then turned around and sold them for $1,250. That’s not quite doubling my money, but it’s not bad, either. Plus, you can do it over and over again.
My Air Jordan One Chicagos (which are super sweet I might add) were originally purchased for $519. However, they now sell for a little over $1,300. Part of this is due to all the hype surrounding The Last Dance, which is a newer documentary that chronicles the historic rise of basketball legend Michael Jordan.
Crazy enough, one pair of Michael Jordan’s sneakers recently sold at auction for over $500,000. I don’t have any shoes that can sell for anywhere close to that, but you can still check out this video where I share my top 10 Jordan sneakers and more insights into how to make money buying and selling shoes.
If you love sneakers and want to get into the game, you can try buying and flipping shoes using StockX or even eBay.com. You can also download the SNKRS app from Nike, which can help you be the first to know when a popular pair of sneakers is about to drop.
Use Fiverr
Fiverr is an online marketplace that helps connect creatives with people who want to hire them. You can use this site to hire someone to design a logo, build your website, design a video, or work on data entry for you.
On the other side of the spectrum, you can use Fiverr to find almost any kind of work, and usually with little investment or no investment upfront. You don’t have to have an incredibly technical skillset, either. Or you might have a really specific skill set. For example, one time I paid a day trader who was advertising his services on Fiverr to tell me which stocks to invest in for speedy returns. You could watch this video to see how that project turned out, and to find out what happened to the $10,000 in cash I put on the line.
Funny enough, this example actually shows two different ways to make money on Fiverr. First, someone is making money by teaching other people how to become a day trader on Fiverr. Second, you can make money as a day trader, although it’s also just as likely you could lose your initial investment.
Keep in mind there are plenty more additional ways to make money with Fiverr. You could sign up for a service like Canva for $10 per month, for example, then charge people for basic design work they don’t have time for. Heck, you could edit resumes or write blog posts or do other basic tasks without any initial investment at all. Either way, Fiverr is an excellent resource if you need to earn money or double money you have in a hurry.
Garage Sales
Garage sales and consignment shops are a great place to find stuff you can buy and sell. You’ll only get ahead and double your money with this strategy if you buy low and sell high, but this is entirely possible if you know which items to look for.
At garage sales especially, many people price extremely nice clothing and household items for a few bucks, and you can monopolize on this by buying low and reselling these items online at a higher price point.
Heck, a lot of people head to garage sales to buy brand name clothing then resell it for much higher prices using websites like Poshmark.com. This is an easy side hustle that can help you double your money over and over again if you know which brands sell easily and for how much.
While I’m not a garage sale junkie, Gary VaynerChuk is constantly sharing his tips and tricks to help people double their money or better. Gary V. has a ton of blog posts and videos where he talks about buying vintage beer mugs for $5 and reselling them for $20, or how you can sometimes find collectible stuffed animals for $1 or less and resell them on ebay for many multiples of that.
One time he even bought a box of Skylander toys for $7 and sold them for over $180. The key to making money with garage sales is knowing which items can sell for a lot of money, and of course paying as little as possible.
Flip Websites
You can also buy and sell websites, which are basically virtual property. You might be amazed at how much some people are willing to pay for just a simple domain name. For example, my friend Noah Kagan once paid $1.5 million dollars for the domain Sumo.com. He’s made his money back and then some, but whoever bought the domain the first time definitely made a pretty penny.
You can find websites to buy on Flippa.com, including both domains and full websites that already have some content. From there, you can try to improve the sites so you can sell them for more money later on. You can also use them to make long-term, passive income with affiliates or ads.
As an example, I bought a website called FinanceforTeachers.com several years ago. I haven’t sold it, but I have more than doubled my money thanks to the ad revenue it brings in! I might keep it for a while until I feel I have made enough money and sell it for a profit, too.
Buy an Online Course
Sometimes you have to spend money to make money, right? This is exactly how I feel about buying online courses.
I’ve invested up to $30,000 on different courses over the years, and that doesn’t even include mastermind and coaching programs. For example, I bought Brian Dean’s course on how to make money using YouTube videos, which has paid for itself many times over even though the initial cost was over $2,000.
However, there are a ton of other courses out there that can help you double your money. This includes the Facebook side hustle course from LapTop Empires, which can teach you how to set up a Facebook ad company. With your own company, you can get paid to run Facebook ads for other people. Obviously, you’ll need to fork over some money upfront, but with a few clients, the course can pay for itself and you can be on your way to doubling your money over and over again.
Bobby Hoyt of Laptop Empires says the reason that you can get such high return-on-investment from this course is pretty simple. Once you’re trained on how to run Facebook ads, you can realistically charge a $1,500 monthly retainer for your services. The course is less than $500, so you can “double or triple your investment” within the first month of working with a client.
If you’re curious about more ways to earn money by investing in yourself, you should also check out my Passive 1K Income Accelerator Course. My course will help you learn how to grow a passive income business from the ground up — as in, make money while you sleep!
I will provide one final caution about investing in online courses. You should only fork over the cash if you’re willing to do the work. So many people buy courses but never finish them or follow through, which will not help you double your money in the long-term.
New to Investing?
If you’ve never invested your money, you might be worried about getting started. Maybe you clicked on this page to get some advice about doubling your money, but you’re scared to put your money on the stock market or you don’t know where to begin.
Thanks to the internet and some fancy algorithms, investing your money has never been easier. There are plenty of websites where you can start investing and they make it as simple as a few mouse clicks.
Betterment is one of the best. All you have to do is create an account, set your investment and financial goals, and then start contributing money. Betterment will handle the rest for you.
They automatically invest your money and will continue to invest it as you earn returns.
If you are interested in learning more about investing an inheritance, safe places to store your money, and the best places to open up a brokerage or savings account, here are some good reads:
Best Online Brokers for Beginner Investors – Want to get started investing, but don’t know how. Check out our post that outlines the best places online to get going.
Top Places to Invest Your Money for The Short Term – This post outlines 11 different options to put your money for the short-term. Also good options for people that don’t want to take a lot of risk starting out.
Low Risk Investments with High Return – Does investing give you sweaty palms and elevated heart rate? If so, first go out and buy some good deodorant. 🙂 Next, check out our post that lists 10 different safer options for people timid of the stock market.
Inside: Do you want to make quick money? If so, you’ll love this collection of ways to make cash in one day. Start these tasks and start making extra cash fast.
In today’s world, there are many ways to make quick money in one day.
The internet and technology have created opportunities that were non-existent just a few years ago. You can now make money in your PJs from the comfort of your own home! I do!
We all have those times when we need cash fast. Maybe it’s for an emergency car repair, an unexpected medical bill, or a last-minute plane ticket home.
Whatever the reason, there are plenty of ways to make quick money in one day.
We will include some of my personal favorites as well as methods I researched.
In today’s blog post, we will outline the best ways to make quick money in one day.
How can I make immediate money?
If you need immediate money, you need to look for ways to get cash in your hand quickly.
This would be by selling your possessions, participating in focus groups, find a gig job that pays cash tips.
These ideas will get cash in your hand within 24 hours.
How much money can I make in one day?
Many people wonder, “How much money can I make in one day?”
The amount of money you can make in a day depends on a variety of factors, such as your job, side hustles, and financial opportunities.
With a bit of hustle, creativity, and smart financial decisions, it is possible to make up to $1,000 a day.
However, you need to develop a smart strategy for achieving this goal. Investing in education will help you put that money to work growing for you.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
50 best ways to make quick money in one day
Making money quickly is possible with some time and effort.
There are a lot of ways to make quick money in one day. In fact, many ideas center around how to make money online for beginners.
Here are 50 of the best methods that you can use to make some extra cash.
1. Work on freelance projects
Working on freelance projects can help you make quick money in one day by providing you with one-off jobs that can benefit from your skill set.
With the percentage of freelance workers in the workforce climbing steadily, there are many online marketplaces that make it easy to connect with businesses and individuals who need your services.
Sites like Upwork, Fiverr, and Toptal allow you to create a profile and showcase your work, making it easy for you to set your own rates and decide on the length of the project.
Additionally, the more experience you get, the more you can charge and the higher your demand will be, potentially leading to full-time work.
2. Sell items on consignment
Selling items on consignment can help you make quick money by providing an easy, fast way to earn a profit from gently used items.
With consignment shops, you can take your clothes, electronics, jewelry, musical instruments, or even your car to be sold without having to take an active role.
For a cut of the profits, your items will be placed in front of buyers, allowing you to make quick cash.
3. Take on odd jobs
If you’re looking for ways to make money quickly, odd jobs are a great way to do so.
Think of day laborer types of jobs. You can use an app like TaskRabbit to find work in your area.
Some of the common odd jobs you can consider include:
Gardening – you can offer to do gardening work such as weeding, planting, mowing, and trimming.
Furniture Assembly – if you have experience in assembling furniture, you can offer your services to people who need help.
Cleaning – you can offer cleaning services to keep homes and offices tidy.
Painting – you can offer your painting services to those who need help with their walls.
General Handyman Work – if you are good with your hands and have experience in repairing and fixing things, you can offer your services to people who need help.
Moving Gig – people are always looking for help with moving.
4. Trade Options
If done correctly, trading in options can help you make quick money and generate substantial returns in a relatively short period of time.
However, trading options come from experience and should not be taken as a get-rich scheme. Personally, I trade options for a living.
You can make quick money trading options if you know what you’re doing. The key is to identify when the market is going to move in a certain direction and then make the right trades to capitalize on the profits.
Here is the one and only investing course I recommend.
5. Become a rideshare driver
Becoming a rideshare driver can be an easy and convenient way to make money quickly.
All you need to get started is a valid license, active insurance coverage, and an approved vehicle. With Uber and Lyft, you can set your own hours and receive a base rate plus tips and distance or time-based bonuses.
From one of our rideshare drivers, we learned some tricks of the trade such as working in peak hours or in areas with popular nightlife scenes or active airports.
6. Offer house cleaning services
Nowadays, people don’t want to learn their own house, so starting a house cleaning service is a great way to make quick money.
With countless opportunities available online or on local job boards, you can easily find a job that works for you. There are even ways to market yourself so potential customers can find you!
If you have a background in cleaning and don’t mind physical labor, you can make up to $25 an hour or more.
Becoming a housecleaner is a great way to make extra money on the side and you can even make up to $200+ per weekend.
With a bit of effort, you could have a great side-hustle in no time!
7. Rent out your parking spot
If you live in a busy area and have a spot that’s in high demand, you can easily rent out the space for a premium price.
This can be especially profitable if you live near an event center and can offer parking to visitors who don’t want to pay a premium to park in a lot or parking structure. You can put your parking spot to work with services like Just Park or Neighbor.com and earn up to $300 per month.
Renting out your parking spot offers a great way to make extra money while utilizing unused resources or space.
8. Proofread documents
Whether you are a stay-at-home parent, a teacher looking for extra income during summer vacation, or someone with a passion for grammar and punctuation, you can make up to $65,000 a year by proofreading documents.
Make sure to take a Free Training Course: Caitlin Pyle offers a free workshop on how to use the most popular proofreading tool and how to become a work-from-home proofreader.
With some hard work and dedication, you can start earning quick money as a proofreader. Good luck!
9. Walk dogs
Walking dogs can be a great way to make some quick money.
Apps like Rover provide pet owners with a platform to find dog walkers in their area and pay for their services.
A dog walker can make $15-18 per 30 minute walk, with occasional bonuses for boarding or pet-sitting. This is a simple way to get your exercise and make cash.
10. Take an online survey
Companies and websites are always looking for consumer feedback in order to improve their products and services, and offer incentives such as cash, rewards, and gift cards for filling out surveys that can take as little as a few minutes.
Popular survey sites like Survey Junkie and Swagbucks offer these incentives, enabling individuals to make a few quid in just a few minutes of form filling.
Most surveys will only take a few minutes, so you will have to do a bunch to add up to serious cash for your feedback.
Here are the top legit survey platforms:
11. Sell your old junk
Are you looking for an easy way to make some extra money? Why not start by looking around your house and attic/basement for things you no longer use?
You can turn those things into cash by selling them online or having a yard sale.
With a little effort, you can easily make hundreds of dollars by selling your old stuff. It’s a great way to declutter your home and make some extra cash in the process.
Make sure to list your items with attractive descriptions and photos to draw in potential buyers.
12. House sitting
House sitting is a great way to make quick money. It allows you to watch someone’s home while they are away and take care of tasks such as feeding pets, watering plants, and taking out the trash.
You can usually make between $25 to $50 per day depending on the market demand in your area. It’s easy to start, with most sites having a minimum age requirement and a sign-up process that takes only minutes. Payment is typically made when the job is completed.
More importantly, beyond making good money, you are able to housesit in beautiful locations that you may not be able to do otherwise. Personally, this is something I want to start doing.
Build your profile on Trusted Housesitters now.
13. Babysit
Babysitting is a great way to make extra money, especially for those who are looking for flexible jobs that match their availability.
Whether you’re an experienced babysitter or a novice looking to give it a try, there’s no doubt that you’ll find plenty of opportunities available. With a little bit of effort and a lot of dedication, you can make a great living out of babysitting.
Most babysitters earn way more than minimum wage making this a great gig.
14. Deliver food orders
Delivering food orders can make you money quickly by taking advantage of the increasing trend in the popularity of food delivery apps.
With driver-friendly apps like Instacart, DoorDash, and Uber Eats, all you need is an insured vehicle and a smartphone to start delivering food to customers in need.
The pay per delivery can go even further if you work on busier nights like Friday or Saturday. With many apps, you can also choose your own hours and the flexibility to work as much or as little as you’d like. This can be a great way to make some fast cash on the side.
15. Earn money with eBay
eBay is an amazing platform for anyone looking to make some extra money by selling items they don’t use. Whether you’re looking to get rid of an old phone, clothes, or books, eBay is an easy and accessible way to do so.
You can start by selling items you don’t need or don’t use anymore.
You can also consider buying items at a low price with the intention of selling them at a higher price.
If you’re looking to make a full-time income from home, selling items on eBay could be a perfect way. You can start small by buying a thrifty item for a low price and selling it at a much higher price.
With the right knowledge and resources, you can make money on eBay easily. So get started today and watch your earnings grow!
16. Write articles for websites
Writing articles for websites can be a great way to make quick money in one day.
With the increasing amount of new content created daily, business owners often don’t have the time to create content for their websites themselves.
Freelance writers can fill this gap by providing quality content for clients in exchange for payment. Depending on the complexity and length of the article, writers can make anywhere from $25 to $500+ in a single day.
By specializing in a niche, writers can showcase their work as samples to potential clients. Furthermore, writers can establish relationships with other bloggers in their niche, guest blogging, and approach websites in their niche with their writing services to further increase their chances of finding work.
17. Become a pet sitter
Personally, I have a friend who makes money by being a pet sitter and has help from her kids.
With Rover, pet owners in your area can easily find and hire pet sitters for their pets. Dog sitting is the most popular pet sitting activity, and it can earn you around $20-35 for overnight stays.
Plus, you get to decide when and how you want to work, and you can fit it around your own schedule. With the right amount of communication and excellent service, pet owners may even offer you recurring gigs.
18. Participate in focus groups
Participating in a focus group can be a great way to make quick money in one day.
Focus groups are usually based on interesting products or services, and they can pay participants anywhere from $50 to $400 for their time. Not only is it a great way to make money quickly, I have found many focus groups can also be a lot of fun.
The hardest part with focus groups is it is not a steady stream of income as you may not qualify for each opportunity.
19. Do yard work
Just like housecleaning, this is a popular job to be hired out.
Yard work such as basic gardening and landscaping, shoveling snow or salting walkways, and even cleaning gutters can all be done for a fee. Advertising your services through flyers, door knocking, or posting on local job boards can help you find potential customers.
By doing quality work, you can turn this into a weekly gig for quick money.
20. Shop at thrift stores and buy low and sell high
You buy items for a fraction of the cost and resell them for a higher price. For example, you can find brand-name clothing, electronics, antiques, and children’s toys at thrift stores that you can resell on online platforms such as eBay, and Facebook Marketplace.
You can also look for items marked as “free” on the side of the road and spruce them up to sell for a profit.
Shopping at thrift stores can help you make quick money in one day, and with time and experience, you’ll discover which items sell the fastest and for the most money.
To make money flipping items, you must do your research upfront and know how much you can pay for something while still turning a profit. With time and experience, you will learn which items sell the fastest and for the most money.
21. Photography gigs
You can make money with photography in two ways:
Turn your photographs into cash by selling them through stock image websites such as Shutterstock or iStock.
Offer your photography services for family sessions, birthday cake smashes, and even weddings.
Either way, you are able to turn your passionate hobby into a way to easily make a decent income in one day.
22. Participate in sweepstakes
Participating in sweepstakes can help you make quick money in one day by giving you a chance to win big.
Yet, this option comes with a lot of RISK!
There are a variety of competitions and prizes available, ranging from online product giveaways and gift vouchers to big-money TV game shows. You want to look for sweepstakes that are free to participate in and not pay money.
This one ranks up there with the left hand itching principle.
23. Use your Writing Skills
Are you looking to make money with your writing skills? There are lots of opportunities available that pay you to write. From blogging to freelance writing, to reviewing music, you can find the perfect job that allows you to utilize your writing skills and get paid.
You can also make money by helping people refine their writing. If you have a good grasp of grammar and can help people write in a more engaging and structured way, then you can charge for your services.
Publications often hire freelance writers, so that’s another avenue to explore.
No matter what you decide to do, there are plenty of ways to make money with your writing skills – all you have to do is find the right opportunity for you.
24. Become a home staging stylist
Becoming a stylist can help make quick money in one day by offering services to those who are in need of help staging their homes for sale.
Realtors often hire outside help to ensure that the home is presented in an attractive and appealing way, and these services can be provided for an hourly or flat fee.
This is a great part-time gig.
25. Donate plasma
You can make money quickly by donating plasma.
Plasma is the liquid part of the blood that contains antibodies. It can be used to create medications and other medical products. Plasma donation is a safe procedure that can help people in need.
Typically, you walk out with cash immediately.
Check with your local blood bank or hospital to learn more.
26. Host workshops
Hosting workshops can be a great way to make money in a short period of time. There are endless webinar ideas you can try, such as live-at-home fitness classes, cooking, a writing workshop, an Excel class, nutrition coaching, or even a first-time homebuyer class.
With the rise of video conferencing, it’s easy to set up webinars to teach people your skills and knowledge.
Typically, you will need to build an online presence with a social media following to hold successful workshops.
27. Trade Stocks
Trading stocks can be a lucrative way to make quick money, but it is essential to understand the risks involved.
With the help of online market trading platforms, anyone can start to trade stocks with a minimum amount of money.
Learning how fast you make money with stocks, but realizing you need to learn to trade stocks is like going back to school for a stock trading education.
Although trading stocks has the potential to generate quick money, it is important to note that all trading involves risk and that you should only invest what you can afford.
28. Become a courier
Being a courier is a great option for flexible income, as they allow you to set your own hours and work as much or as little as you’d like.
Think outside the box of UberEats or Instacart. This would likely be for a local business that needs to move documents from location to location.
You will need to be reliable and trustworthy.
29. Deliver Pizza
Even today, this is a classic gig to make quick money by delivering pizza!
Businesses are desperate for workers, so finding a job should be fairly easy. However, be prepared to work more than one day.
30. Repurpose your skills
Those skilled in writing, graphic design, coding, bookkeeping, or any other number of computer-based skills, can use these sites to find freelance jobs that require their skills.
Additionally, those with knowledge or experience in a particular field can create and sell an online course via a platform like Teachable or Podia.
Too often, we overlook the things that we are the best at, yet repurposing your skills us a great wat to make money.
31. Dog groomer
The income potential as a dog groomer is considerable.
According to the American Pet Products Association (APPA), pet owners spent $136.8 billion on their pets in 2022.
Dog grooming is a easy way to make money.
Over to pick up dog poop and you can double how much money you make.
32. Sell your unwanted items
Selling unwanted items on eBay and Amazon can be a great way to make quick money.
By scouring online retailers, local thrift stores, and yard sales for hidden treasures, individuals can find consumer goods for cheap and then resell them for extra profit.
Selling on Amazon also provides an opportunity to source products for fulfillment.
Additionally, apps like LetGo, OfferUp, and Facebook Marketplace make it even easier to make extra money, as people jump on items quickly.
For those with a strong entrepreneurial spirit, buying items at a low price and then reselling them at a higher price can generate a decent side income.
33. Sell Printables
If you’re creative, you can create and sell digital products like ebooks, courses, templates, and graphics.
Digital downloads are also becoming increasingly popular, as they require no shipping or fulfillment costs and you can easily make them once and sell them hundreds of times over. Depending on the craft and the demand, your potential earning potential can be quite high.
In fact, selling printables is a popular summer jobs for teachers!
So why not give it a shot? With the right strategies, you could start making a few hundred dollars a month with very little effort.
34. Crafts and handmade goods
One of the best ways to make money quickly is by selling crafts and handmade goods on websites like Etsy.
From jewelry and candles to sourdough bread to quilts and custom T-shirts, there is a huge variety of items that you can make and sell. You can also design and sell custom stationery, pillows, tote bags, coasters, cosmetics, and more.
35. Dropshipping
Dropshipping is an online business model that allows entrepreneurs to start an online shop without having to keep a product in stock. Instead, a business makes a sale and then passes the order along to a third party, known as the dropshipper, who ships the product directly to the buyer.
Dropshipping is a great way to make money quickly, as it requires minimal upfront investment and overhead.
With dropshipping, you can add products to your store without having to buy them in bulk, and you don’t need to worry about shipping or fulfilling orders.
36. Affiliate Marketing
Renting out your property can help you make quick money in one day by taking advantage of the services offered by websites like Airbnb.
Affiliate marketing is a way to earn money by promoting other companies’ products or services. You can do this without a website, by sharing affiliate links on social media, a blog, online forums, post comments, and with friends or family.
When someone buys a product or service via unique affiliate link you provide, you get paid a commission.
It is possible to make money quickly if you have a social media following or a website, as you can start promoting all sorts of companies, products, services and offers online.
37. Work for tips
Making money quickly by working for tips may sound intimidating, but it is actually very achievable with a bit of hard work and determination.
Tips are normally paid in cash, which is exactly what you need.
Jobs that pay tips:
Waitstaff
Bartender
Bellman
Drivers
Casino dealer
Golf caddy
Babysitters
Also, many jobs that pay weekly work for tips.
38. Rent out your property
These services allow you to rent out a room, a condo, or your own home if you’re away on vacation.
Airbnb has revolutionized the hotel industry by allowing everyday property owners to lease their place to travelers. By creating an account and listing your property, you can immediately start earning passive income.
With the right location, you can create a steady stream of income that can help you make quick money in one day.
39. Join a MLM
Joining a Multi-Level Marketing (MLM) company is one of the most popular ways to make money these days. With an MLM, you can potentially make a lot of money by building a team and earning commissions from their sales.
But you need to be careful and do your research to make sure it’s an opportunity worth pursuing.
MLMs can be profitable, but it can take a lot of time and effort to get them off the ground and make them successful. You need to be prepared to take the time to build your team, train and support them, and provide them with the resources they need to succeed.
Personally, I have tried making money with an MLM and found out that it was not worth the time or effort.
40. Collect and sell scrap metal
Collecting metal items such as old swing set parts, metal toys, and other bits of metal can be sold at scrap yards or redemption centers for a small sum of money.
Iron, steel, aluminum, brass, and copper are the most commonly traded types of scrap metal, and the prices vary depending on the type and amount of metal.
This is a simple way to make money if you put in the resources. Just don’t steal metal because that can get you in severe trouble.
41. Deliver for Food Delivery Apps
This industry is booming with no signs of slowing down. You can easily make $100 a shift by delivering food!
Sign up for driver-friendly apps such as Instacart, DoorDash, and Uber Eats. These apps allow you to set your own hours and work as much or as little as you’d like.
Make sure you have an insured car, truck, bike, scooter, or motorcycle. Depending on what you choose to use, certain apps may have different requirements.
Go to the restaurant and pick up the order. You’ll be paid a flat delivery fee, an additional fee per item ordered, and 100% of the tips customers choose to give you.
Deliver the food to the customer.
Get paid instantly, usually within the same day.
Maximize your earnings by delivering for multiple apps at once. This will give you access to more orders, and a larger area to deliver in.
42. Become A Virtual Assistant
Virtual assistants are in demand right now.
Consider becoming a virtual assistant with no experience to help small businesses with tasks like scheduling appointments and managing emails.
Typically, small businesses are looking for someone to take a short-term 3-month stint or a long-term relationship.
If you have marketable skills, you will make an outstanding virtual assistant.
43. Cook and deliver food
Cooking and delivering food can make you money in one day, especially since the demand for convenient delivery is increasing.
If you are cooking food on your own, you need to check with your local state and city regulations to see if you are allowed to sell food from a home kitchen. These food regulations are tough, so make sure you comply with these regulations.
However, many busy families are looking for a personal chef and are willing to pay for the service.
44. Trade-In Programs
Trade-in programs are a way for people to get quick money by selling their old phones, tablets, and other electronics. These programs give customers the opportunity to receive cash or gift cards in exchange for their unwanted devices.
You can trade in your own unused or unwanted electronics or for neighbors who don’t want to deal with the hassle themselves.
When selling through a trade-in program, customers are usually asked to provide a description of the device and its condition. The amount of money received depends on the device and its condition.
Plus you are helping the environment by keeping old devices out of landfills.
45. Become a social media influencer
If you have a large following on social media, you can make money by becoming a social media influencer and promoting products or services.
There are a number of ways to make quick money as an influencer. You can promote products or services by posting about them on your social media account.
Obviously, you must thrive using social media.
46. Flipping items on Poshmark
Making money on Poshmark by flipping items can be a great way to make cash.
You can find items to resell from big box retailers, online retailers, local thrift stores, yard sales, flea markets, eBay, Facebook Marketplace, and Craigslist. Potential items you can flip for profit include brand-name sneakers, clothing, and purses.
You should also figure out which items sell the quickest and for the most money.
Poshmark also has a “bundling” function which allows you to group similar items together for a discounted amount. This is a great way to make more money as you can sell multiple items in one go.
This platform allows followers, so it is easy to build return buyers.
47. Start a small business or side hustle
Small businesses and side hustles can be a great way to make money quickly. Consider your skills and interests and start something that can help you turn a profit.
No matter how you do it, starting a business can be a great way to make money and meet new people.
Building your side hustle to a full-time income will not happen overnight, but you will make progress with hard work and dedication.
48. Take advantage of Swagbucks
Swagbucks is an online rewards and survey platform that provides numerous opportunities to make money.
With Swagbucks, you can earn money by completing surveys, watching videos, playing games, and even shopping online. With each task, you can earn anywhere from $0.40 to $2.00 in SB points which can be redeemed for cash back or gift cards.
Plus, when you sign up, you get a $10 bonus and can even get 500 SBs for referring a friend.
49. Tutoring
Tutoring is a great way to make quick money while using your knowledge and expertise to help others. It involves providing instruction to an individual or a small group on a particular subject, usually to help them improve their understanding.
Tutors can work with students in person or online, depending on the subject and their availability.
No matter your educational background, you can make money tutoring as long as you have a deep knowledge of a subject. With the right resources and platform, you can find tutoring gigs in your area and start making quick money today.
50. Make money with your phone
Making money with your phone is possible with a little bit of effort. You can sign up for apps to complete small tasks and earn money quickly.
Alternatively, there are plenty of mobile apps such as Ibotta, Rakuten, Shopkick, Swagucks, or Receipt Hog which can help you make some extra money with simple tasks.
You can also take on odd jobs through apps like TaskRabbit to make cash.
Finally, you can trade stocks on your phone.
There are so many ways to make money with your phone today.
FAQ
Yes, it is possible to make passive income. This type of income is earned with little effort or direct work.
It can come from investments such as returns and dividends, as well as from sources like stocks, rental properties, and online businesses.
With some creativity and diligence, anyone can create multiple sources of passive income. It may take months or even years to build up these streams of income, but the potential rewards are worth the effort.
Many of the statistics are leaning on the fact that you need a side hustle to make ends meet or get ahead financially.
I started a side hustle to make money to afford what we wanted to do. Personally, my side hustles are blogging and day trading stocks.
The best side hustles are the ones that you are passionate about. More than likely, you will be spending time on them in your free time, so you want to enjoy them.
Regardless of what type of side hustle you choose, you can make extra money on the side. To maximize your earnings, you can even combine several different side hustles together to create multiple income streams.
I always say, if I can make $100 a day, then I am making $3000 a month. That will make a difference in my personal finance situation.
Before you can make $100 a day, you need to find out how you will make money. Look for opportunities that match your skills and interests. Some examples of this include driving for Uber, selling your skills on freelancing sites, creating an online store, or even starting your own blog.
Learn how to invest 100 to make 1000 a day.
When looking to make $1000 fast, you need to up your game – specifically, the time and energy to make your goal happen.
You could start by looking for high-paying side hustles such as trading stocks or options, becoming a freelance writer, setting off as a virtual assistant, or by selling products online.
The key is to make $1k a day consistently. Then, you will be working on how to turn 10k into 100k.
Which Quickest Way to Make Money in a Day Will You Choose?
There are many ways that you can make quick money in one day.
Whether you want to start a side hustle, do some odd jobs, or make money online, which option is best for you?
Whichever option you choose, make sure that you choose something you will enjoy doing as well as the quickest way to make money.
We covered fifty options to make cash and start making extra money today!
Which one is your favorite?
Mine are trading and writing. Comment below on which method you will choose.
Know someone else that needs this, too? Then, please share!!
Today we bring back the ever-popular reader case study series with an interesting twist.
First of all, our subject is a new reader, with sizable financial baggage from earlier decades, but plenty of potential for improvement. Equally notable is the fact that I have enlisted some outside help for the research and analysis.
During a recent trip, I ran into another blogger named Jacob Wade who, quite amazingly, actually likes budgets. In fact, he feels so strongly about it that he named his financial blog iheartbudgets.net. We got to talking, and he enthused about how much he likes analyzing and solving detailed financial problems for other people.
“Oh boy, do I have a job for you”, I said. “I get emails from people with detailed financial problems every day, and although I still read every one, it pains me not to have time to respond to many of them.”
Could Jacob’s enthusiasm be used to all of our advantage? I sent him a sample case study to test out his chops. I was pleasantly stunned by the results – he did a great job, and offers advice that even I would consider hard-hitting. Let’s dig into our dear reader’s story, then you’ll see the analysis with some joint recommendations by Jacob and myself.
[contents edited for length]
Dear Mr. Money Mustache,
I’m a recent reader of your blog, courtesy of your interview with Jesse at You Need A Budget, which is the budgeting software I’ve been using. I know that you’re all about retiring early, but I’m wondering what advice you’ve got for someone who wonders if they’re ever going to be able to retire at all! Much of what you recommend we can still put into place, I know, and we are in the process, but I am unsure if our advanced age changes any of those tactics and strategies.
I’m not going to bother to tell you all the mistakes we’ve made in 27+ years of marriage and raising five kids. I’m sure you know the drill, since we lived the basic “American Dream.” We are now 53 years old. My question now is “What’s the best we can do at this point?”
This is where we are:
We have a home with a mortgage/equity loan that’s about $20,000 less than the list value of the house.
Our credit scores are low, partly due to not having any credit cards for the last ten years to show a history, and partly due to having late payments due to temporary unemployment, among other things.
We are the “OMG your hair is on fire” commuters; 45 minute commute for me, 55 for husband, we live in the middle of nowhere, and real estate in our area is not selling.
4 of 5 of our kids are still in college, two live with us and commute, the (recent) graduate lives with us and has an entry-level job since he can’t find work with his degree. Our commuters travel by bus 30 minutes to the WEST of us to go to school, we travel EAST to go to our jobs. Our employed graduate also travels west to his job, in the same town where the other two go to college. This makes moving a little bit more complicated.
Retirement: We both qualify for Social Security; however, I have met only the minimum number of quarters since I took 17 years off to home school our five kids, and my estimated benefit at age 67 is $524 a month. I have now been teaching at a charter school since 2006, and contribute to Massachusetts Teachers’ Retirement. I would need to work and contribute to that fund until the spring of 2026 to be fully vested.
My husband’s estimated Social Security benefit at age 67 is about $2000 a month. He has $20,000 in a 401K with his current employer, and two smaller accounts with former employers, one with a balance of about $4000, and one with roughly $500. I contributed briefly at work to a TIAA-CREF fund, and the balance is about $1000.
I have a newly minted Master’s Degree, which I was required to get in order to keep my teaching license, leaving me with loans of about 22,000.
Commuter son and husband have a Nissan Sentra and a Toyota Yaris, both paid for. I am driving our 2005 Dodge Caravan, which is on its last legs at 180K miles with beaucoup mechanical issues.
We live in Massachusetts, so are among those few who still use oil for heat and hot water; we have electric appliances.
We own term life insurance policies, and have health insurance through my husband’s employer (a health insurance company).
We owe back taxes to the IRS and Mass DOR, and have had our paycheck withholdings changed recently to avoid this in the future.
Not necessarily in the same vein, but relevant – I am a Yankee who would love to penny-pinch, and my husband is a free spender who loves to buy things on sale and as little “rewards” for himself and others, and chafes at the yoke of a budget. He is (grudgingly) on board with me now. We rarely disagree about anything except money. 🙂
I guess that’s a grim enough picture for now; as you can see, our situation is a giant Charlie Foxtrot*. I know you get tons of email; perhaps this one will be just different enough to intrigue you – maybe you can Mr. Money Mustache even the old and desperate!
Thanks, CF in MA
Mr. Money Mustache’s Observations:
This story is a great example of what happens when you live a good, honest life, but just don’t get around to doing the math. Other than the $1200 of oil and gas that goes up in flames each month, the rest of this budget looks fairly moderate for a large household. But there is no way to cheat the numbers. Children cost money to raise, and if you want to raise a large number of them on an average income, something else has to give.
And most people don’t realize that car-commuting (even a 10-minute ride) is spectacularly expensive, so your 45-minute double commute is astonishing. A 2005 vehicle that is “on its last legs?”. I bought my 2005 car four years ago with 57,000 miles and it just cracked 80k this year. It is still brand-new and has many decades of life left! Commuting in a VAN? I use my van when I need to carry home 1200 pounds of steel beams I found on Craigslist for my house rebuilding project – not when I need to transport one lightweight human across a vast distance!
Finally, while supporting adult children and “treating” oneself are nice options to have, from a financial perspective you don’t actually have these options. This is what has caused the long-in-the-making financial emergency. The great news is that you can dig out of this hole much more quickly than you sank in.
So let’s move on to Jacob’s analysis:
Assets:
Home – $235,000 Retirement Fund Savings (401k and MTR) – $45,000 Cars – $7,000
Debts (Balances):
Mortgage – $167,000 at 3.5% HELOC – $25,000 at 4% Student Loans – $22,000 at 6.8% Dell Loan – $2,500 at 16.66% Personal Loan – $650 Staples CC – $500
Goals:
To retire ever Budget:
OLD
NEW
Comments
Total Income
$ 7,200.00
$ 7,200.00
Total Expenses
$ 7,161.00
$ 3,504.00
Projected Ending Balance
$ 39.00
$ 3,696.00
— Much better!
Donations
Other
$ 110.00
$ 110.00
Total Donations
$ 110.00
$ 110.00
Bills
Mortgage
$ 1,330.00
$ 1,000.00
The goal is to be able to actually stop working at some point, so aggressive measures need to be taken. I suggest selling the house and moving MUCH closer to work (within 5 miles of both if possible). If possible, find something for $1,000 a month (about $130,000 15-year loan) or less.
Electric
$ 200.00
$ 100.00
You can lower your electric bill if you implement the changes suggested in this MMM article. You stated that you have started hang drying clothes, now it’s time to move on and get all CFL’s bulbs and watch the A/C.
Oil Heating
$ 700.00
$ 200.00
This bill is KILLING your budget. When you re-locate to a location closer to work, look for a natural gas furnace or another home with low heating costs. Otherwise you will literally waste $86,500 over the next 10 years on this. It’s not worth delaying retirement AN ENTIRE YEAR to pay for this inefficient heating method.
Cell Phone Sprint
$ 320.00
$ –
When moving, you are going to need to drop the cell phone family plan. I didn’t see a line for reimbursement for this, and you cannot afford an extra $275 a month to pay for your family’s cell phone usage. Move everyone to Republic Wireless and only pay for the adult plans.
Cell Phone Republic Wireless
$ 23.00
$ 46.00
Looks like you got started with one line, just double it up here.
Netflix/Hulu/Other
$ 40.00
$ 40.00
MMM: Huh? Netflix is $7.99/month. Between library books, learning new skills, and this, you will have plenty of entertainment.
Car Insurance
$ 155.00
$ 90.00
Shop this around. We pay $78 for liability on our two used cars, there’s no reason you need to pay any more than $90 a month for basic coverage. Since you have a used car, all the extra insurance is not necessary to cover scratches and dings and the like. (MMM Note: mine is $30/month for two cars and two drivers)
Internet
$ 70.00
$ 70.00
Also worth shopping around – in your new area the competition might be better.
Land Line
$ 35.00
$ –
Land line is not needed. (unless there’s a business need for this)
Garbage
$ 20.00
$ 20.00
Medical
$ 182.00
$ 182.00
Student Loan 1
$ 293.00
$ 293.00
We’ll address this debt below.
Student Loan 2
$ 130.00
$ 130.00
We’ll address this debt below.
Life Insurance
$ 91.00
$ 91.00
Personal Loan
$ 90.00
$ 90.00
We’ll address this debt below.
Dell Loan
$ 160.00
$ 160.00
We’ll address this debt below.
IRS and State Taxes
$ 700.00
$ –
You stated in email that this balance is now at $0
Paypal Loan
$ 160.00
$ –
You stated in email that this balance is now at $0
ADT Security
$ 50.00
$ –
Not necessary. Here’s a direct quote from MMM: “These are a silly invention – the Timeshare Condos of the suburbs. Drop it, live free, and save $(50)”
Homeowner’s Insurance
$ 55.00
$ 55.00
Total Bills
$ 4,804.00
$ 2,567.00
Other Expenses
Food
$ 900.00
$ 400.00
Check out MMM’s advice here. You can reduce this bill to $400 a month easily and eat VERY well with a though-out meal plan and some smart shopping.
Gas
$ 575.00
$ 150.00
Since we have cut your commute down to only a few miles, your gas bill should be VERY low ($50 a month or less). I padded it a bit to drive out and visit family.
MMM Note – and remember that “Gas” should never be used as an approximation of the true cost of commuting. You need to triple this number at least, just to account for the direct car costs. Adding in life costs, the bill is much higher again.
Eating Out
$ 15.00
$ –
While you’re in debt, this is a luxury that cannot be afforded. Take care of the DEBT EMERGENCY first, and then add this back in.
Spending Cash
$ 25.00
$ –
Same as eating out.
Personal Items
$ 85.00
$ 85.00
Household Items
$ 62.00
$ 62.00
Clothing
$ 60.00
$ 15.00
You don’t need $60 of new clothing a month. $15 a month should take care of any clothing necessities with thrift shops, consignment stores and garage sales. Also leverage family and friends to organize a clothing swap (read: FREE CLOTHES) if additional garb is required.
Misc
$ 40.00
$ 40.00
Car Maintenance
$ 50.00
$ 50.00
Total Other Expenses
$ 1,812.00
$ 802.00
Savings Buckets
Christmas
$ 25.00
$ 25.00
Emergency Fund
$ 410.00
$ –
This will be addressed below.
Total Savings Buckets
$ 435.00
$ 25.00
Total Expenses
$ 7,161.00
$ 3,504.00
Jacob goes on to write,
Dear CF, Thank you for exposing your budget to all of us financial voyeurs.
There is a LOT going on here, and a lot to address below. The goal here is to make every hour of work from now until retirement count. So let’s get to it:
Housing: I won’t pull any face punches here. You need to move. Your heating bill and commute are absolutely killing your financial situation, and you will NOT retire anytime soon if you stay there. There is $980 potential savings PER MONTH or more in this transition (including commute and utilities), as well as cutting your commute time down to almost nothing, saving time and stress. This move is to help you take a sharp exit off the highway of Never Retiring Wastefulness and allow you to not work until you die.
In emails, you stated the house needs about $8,000 of updates to rent or sell. Since you have about $2,000 of other monthly savings lined up in this budget, you should be able to have this taken care of within four months, and be moved out in six or seven months. Savings on mortgage is at least $330 per month.
You also stated needing a replacement car soon. Please read this MMM post and PAY CASH for your next used-car purchase.
Food: If you are feeding a flock of adult children, they are going to have to chip in. There is no reason you two people can’t eat VERY well on $400 per month, and with proper planning, that could be $300. So many people cannot save enough to retire but are actually just eating their retirement meal by meal. For reference, the extra $500 a month spent on food would cost you over $86,000 over the next 10 years, and cause you to work an additional year for that inefficiency. Nothing tastes THAT good. Savings of at least $500 a month.
Debt: This debt is to be treated as a radioactive plutonium. You must neutralize it ASAP, and this will be your first priority. Here’s how I suggest you tackle it with your extra $3,700 a month.
Dell Loan – $2,500 at 16.66% (gone in month 1) Personal Loan – $650 (gone in month 1) Staples CC – $500 (gone in month 1) Student Loans – $22,000 at 6.8% (gone in month 7)
With all the expenses saved from the above changes, you can kill this debt COMPLETELY in 7 months. The first 3 debts will be gone in the first month! Now you have another $673 a month to invest.
Investments: Once your consumer debt is gone, you will have about $4,400 a month to invest in index funds to get you to retirement. Investing this at 7% for the next 12 years with your starting balance of $45,000 puts you at about $1,100,000 at age 66.
Your annual expenses with the above budget are about $42,000 per year, and using the rule of 4%, this money would provide you with $44,000 annually. You can retire!
This quick plan comes with a major safety margin:
the $2,000 per month of Social Security your husband can begin drawing at age 67
whatever you get from the teacher’s Retirement Fund
the fact that your new mortgage will be paid off in 15 years, dropping the future budget
Conclusion: Yes, this is a lot of change. No, moving won’t be easy, and figuring out the details of your kids housing and all that is going to be a challenge. But the status quo is what got you here, and changing the flow of money is what will get you out.
Comments: What would YOU do in CF’s position? Can she recover and earn a solid retirement in a timely manner?
MMM Note: Thanks again to my new friend Jacob for all of the help on this one, and you may see a few more case studies around here if we’re lucky.
*I think this is a witty polite way of saying “CF”, which of course means “Clusterfuck”. I thought this was a skilled use of swearwords, and it is one of the reasons I decided to take this case study.