From Bitcoin to GameStop to SPACs: 8 Tips for Mania Investing

Market speculation is seemingly everywhere.  From new SPACs being issued, to the prevalence of Reddit stocks such as GameStop to the popularity of electric vehicle stocks and the rise of cryptocurrency – speculation is alive and well in the markets today. 

“Mania” is a good word to describe the energy surrounding these types of investments.  Dramatic daily swings are the new normal in these holdings.  Hollywood elites and business moguls are attaching their names to crypto and the latest SPAC investments. 

The top mania investment areas are electric vehicles, cryptocurrency, Reddit stocks, space, SPACs, precious metals and pot stocks.  The dictionary definition of mania describes “excessive or unreasonable enthusiasm.”  That seems about right.  The result has been a meteoric rise in value not tied to business fundamentals but tied to hype, expectations or projections. 

Investors looking to boost performance often wonder how much exposure to these types of investments should they have.  With strong appreciation in some of the holdings, it is tempting to get into the game.  Here are our top eight tips for mania investing. 

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1. Admit that it is a mania

A woman is swept away on waves of water.A woman is swept away on waves of water.

Have some honest reflection about the investment environment you are in.  Mania investing can be fun, it can be thrilling and, ultimately, it can be painful.  But mania investing is not your conventional long-term investing strategy.  Admit you are being swept up in a mania and acknowledge what that might mean regarding your tactics.  It’s impossible to explain to yourself or your friends the fundamentals of a company with no earnings, so stop trying to make sense of it.  It is a mania, not an investment based on fundamentals. 

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2. Have an exit strategy & set a price target

Price tags.Price tags.

How far are you willing to watch your investment drop before you pull out?  Set a price target and stick to it.  Some of the biggest mistakes happen with investors who fall in love with a company or a product and hold it while closing their eyes.  Mania investments are not typically long-term plays, and you must plan for how much risk you are willing to take.  Set a target to get out and limit your downside exposure.

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3. Limit your overall portfolio exposure

A colorful pie chart.A colorful pie chart.

If you are going to be a mania investor, maybe you limit your exposure to 3%, 5% or 10% of your total portfolio.  Understand it is the high-risk portion of your portfolio and do not allocate more than you are willing to lose.  The older you are and the closer to retirement, the less you can afford to lose.  The younger you are, the more you might be willing to allocate to more aggressive strategies. 

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4. Diversify your manias 

A woman balances a bitcoin on a red tightrope.A woman balances a bitcoin on a red tightrope.

Maybe you like cryptocurrency — go ahead and invest in it, but buy into three different types, instead of just one, to diversify.  Maybe you like electric vehicles. If so, consider adding some exposure to space or precious metals as well.  Even in your mania investing, you do not want to concentrate all that allocation to just one mania strategy.  Diversification can help reduce risk even in a risky space.  Although, be careful of too much diversification.  In a world like electric vehicles, there is a possibility of there being few winners and many losers. 

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5. Understand performance in context 

Woman standing under an orange umbrella in the rainWoman standing under an orange umbrella in the rain

The S&P 500 10-year average over the past 100 years is around a 10% return per year.  Warren Buffett has averaged about 15% per year.  If your mania investments have made 100% in a year, understand how rare that is and that the odds of duplicating that performance year after year are incredibly remote.  Part of good investment performance is not just making money in good times, but also weathering losses during challenging times. 

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5. Know the difference between investing and speculating

A stack of gambling chips tumbles over.A stack of gambling chips tumbles over.

Investing for the long term carries its own set of disciplines and rules and expectations.  Mania investing is more akin to speculating or even gambling.  It often has dramatic movements in price over a short period of time.  It might include hype in the media, memes on social networks and inexperienced people giving investment advice.  Be careful and realize speculating is a high-risk game — it is not the same as sound investment on fundamentals.   

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6. Take some winnings off the table

A man cashes in his gambling pot.A man cashes in his gambling pot.

Maybe you own one of the stock names that have doubled or tripled in value over the past year.  Consider selling some of the holdings and locking in your gains.  Maybe reduce your exposure by 50%.  Keep some of the holdings a bit longer, but diversify into something more stable or consistent.  Setting a price target on the upside can be just as important as setting one on the downside. 

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7. Do not gamble the farm

The sun sets over the red barn of a farm.The sun sets over the red barn of a farm.

A smart gambler, if they go to Vegas, will set their own personal limit on what they are willing to lose.  Whether that is $100, or $10,000 — set a limit when it comes to mania investing.  Also, do not raid all your retirement money on a whim to chase manias.  While a portion could make sense, the lion’s share of your retirement should be focused on fundamental investment strategies that are consistent.  Pulling all your retirement money to buy into different manias would likely be a crazy idea, just like putting your house keys in the pot of a poker table would be ill advised. 

Investing in some of these sexy stocks and industries has appeal, and there is money to be made.  But there is also money to be lost, and it is important to have a rule set for investing even if you are investing in mania stocks.  Finally, know how risk taking can fit in your overall financial plan and realize that the risk you are willing to tolerate is likely to be different from someone else. 

Investing carries an inherent element of risk, and it is possible to lose principal and interest when investing in securities. Strategies are used to assist in the management of your account. Even with these strategies applied to the account, it is possible to lose money. No strategy can guarantee a profit or prevent against a loss. There may be times when the strategy switches between equities or fixed income at an inopportune time, causing the account to forfeit potential gains.

CEO – Senior Wealth Adviser, Sterling Wealth Partners

Scot Landborg has over 17 years of experience advising clients on retirement planning strategies. Scot is CEO and Senior Wealth Adviser for Sterling Wealth Partners. He is host of the retirement planning podcast Retire Eyes Wide Open. Scot is a regular contributor to Kiplinger.com and has been quoted in “U.S. News & World Report,” Market Watch, Yahoo Finance, Nasdaq and Investopedia. He also formally hosted the nationally syndicated radio show “Smart Money Talk Radio.”

Investment Adviser Representative of USA Financial Securities. Member FINRA/SIPC A Registered Investment Advisor. CA license # 0G89727 https://brokercheck.finra.org/

Source: kiplinger.com

Stock Market Today: Dow Leads in a Mixed May Start for Stocks

The Dow Jones Industrial Average kicked off the month with a 0.7% gain to 34,113 on Monday that came despite a weaker-than-expected Institute of Supply Management manufacturing report.

Supply bottlenecks resulted in an April reading of 60.7 – a slower rate of expansion than March’s 64.7 reading indicated, but expansion nonetheless.

“Although the composite was a fair bit below expectations (Barclays 64.5; consensus 65.0), the decline comes off of a robust March reading that was the highest since 1983,” says Barclays economist Jonathan Millar. “Indeed, components of the composite continue to point to very strong growth, which comes as no surprise, given highly favorable demand conditions amid fiscal stimulus, easing of social distancing restrictions, and ongoing progress in vaccinations.”

We’re glad to see that at least some investors heeded our advice to ignore the urge to “sell in May and go away.” But stocks weren’t exactly up across the board. The Nasdaq Composite (-0.5% to 13,895) struggled, thanks to weakness in mega-cap tech and tech-esque names such as Tesla (TSLA, -3.5%), Amazon.com (AMZN, -2.3%) and Salesforce.com (CRM, -2.9%).

“For the first time in a while there is a clear value/cyclical bias while growth/tech is under pressure,” says Michael Reinking, senior market strategist for the New York Stock Exchange. “Tech wobbled last week despite blowout numbers from the mega-cap stocks. This is especially concerning as the rate environment remains in check.”

Sign up for Kiplinger’s FREE Closing Bell e-letter: Our daily look at the stock market’s moves, and what moves investors should make

Other action in the stock market today:

  • The S&P 500 gained 0.3% to 4,192.
  • The small-cap Russell 2000 also finished in the black, up 0.5% to 2,277.
  • Berkshire Hathaway (BRK.B, +1.7%) held its 2021 annual shareholder meeting this weekend. Chairman and CEO Warren Buffett and Executive Vice Chairman Charlie Munger addressed a number of topics, including trimming Berkshire’s stake in Apple (AAPL) in Q4 2020. “It was probably a mistake,” said Buffett, adding that AAPL’s stock price is a “huge, huge bargain” given how “indispensable” the company’s products are to people. Also of note: Berkshire grew fourth-quarter operating income by 20%, to $5.9 billion, while cash grew 5% to $145.4 billion.
  • Domino’s Pizza (DPZ, +2.6%) was a notable winner today. The pizza chain revealed an accelerated stock buyback program, saying in a regulatory filing that it will pay Barclays $1 billion in cash for roughly 2 million DPZ shares.
  • U.S. crude oil futures jumped 1.4% to end at $64.49 per barrel.
  • Gold futures snapped a four-day losing streak, adding 1.4% to settle at $1,791.80 an ounce.
  • The CBOE Volatility Index (VIX) declined 2.3% to 18.18.
  • Bitcoin prices improved by 1.1% to $57,530.32. More impressive was the 18.6% improvement in Ethereum, to $3,300.64 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
stock chart for 050321stock chart for 050321

Another Big Week of Reports … And Dividends

What should investors be looking forward to this week?

On Thursday and Friday, we’ll get the latest weekly unemployment filings and April jobs data, respectively, but throughout the week, another heaping helping of earnings reports, anchored by the likes of General Motors (GM), Pfizer (PFE), Under Armour (UAA) and PayPal (PYPL).

And given that many companies tend to synchronize their dividend and buyback actions with their earnings reports, you also can expect plenty of news on the dividend-growth front.

In some cases, those raises might be token upticks meant to secure current or future membership in the Dividend Aristocrats. But others are bound to compete with this year’s most explosive payout hikes – improvements of 15%, 20% or even 30% that drastically change the income aspect of current shareholders’ investments. Ideally, of course, investors want the best of both worlds: income longevity and generosity.

These 10 dividend stocks just might fit the bill. This group of mostly blue-chip household names offer a strong history of payout increases, a sharp level of recent hikes compared to their peers, and the operational quality to continue affording these annual raises.

Kyle Woodley was long AMZN, CRM, PYPL and Ethereum as of this writing.

Source: kiplinger.com

Tips for Navigating Night Classes

When the sun is setting, happy hour consists of a stiff caffeinated drink or two for some. Their brains are still on the job.

More on liquid stimulants later, but add that sort of choice to the list when it comes to getting an education: Commute or live on campus, study full time or part time, and pick a major, to name but a few.

Once you’ve landed on a college and enrolled, it’s time to sign up for courses and plan your schedule. In many cases, schools offer courses throughout the day and evening to accommodate a broad range of students and their different schedules.

Night classes may be a convenient option for students who have to balance work and school. Given the cost of education, this is a large share of the student body. In 2018, 43% of full-time students and 81% of part-time students were employed during their studies.

Taking night classes can be an adjustment from studying during the traditional 8-to-5 window. Staying focused after a long day of work or rewiring your brain to study at night can be challenging.

Whether you’re gearing up for a degree’s worth of night school or a one-off evening class, take a look at these tips to survive night classes.

Nocturnal Animals

Generally speaking, night classes take place between 5 and 10 p.m. College night classes typically follow the traditional semester schedule, though there may be shorter timelines for special-interest topics or certificate programs.

Because night classes are geared toward nontraditional students with family and work obligations, they typically occur once a week for two to four hours, but it depends on the course credits and subject matter.

Although this condensed format may mean fewer trips to campus, it can also make for much longer days. Students may want to keep the following issues in mind.

Controlling Caffeine Cravings

When feeling tired, it may be a natural inclination to grab a cup of coffee or other caffeinated beverage to get a boost of energy and keep going. While this may help a student get through a night class or hammer out an assignment at the last minute, it can disrupt sleeping patterns, creating further fatigue the next day.

Caffeine can last up to 12 hours in the system after consumption. Even for night owls, a coffee or a Red Bull® or a Monster® after lunch could keep them awake well beyond when they want to go to bed.

If cold turkey seems like too drastic a change, you might want to try experimenting with less caffeinated beverages, such as tea. Everyone is different, and the goal is finding the sweet spot between staying awake and engaged during night classes and not losing precious sleep later on.

Staying Nourished and Hydrated

Staying focused during night classes can take practice and preparation. Packing healthy snacks and water is one way to maintain energy and feel comfortable as class discussions and lectures progress into the later evening hours.

If a professor doesn’t permit eating in the classroom, a student can likely squeeze in a quick bite beforehand or during break time.

Remaining Active

Between work, studying, class time, and other obligations, exercising may seem like a luxury that there isn’t enough time for. This can feel especially true on days when a full day at work is followed by a three-hour night class.

The Department of Health and Human Services recommends that adults complete at least 150 minutes of moderate-intensity exercise a week. Broken down over the whole week, that’s about 20 minutes of exercise a day.

If you’re really in a pinch, fitting in a brisk walk before night classes start or during the midway break in a three-hour seminar can help with your energy and work toward meeting the 150-minute threshold.

Befriending Classmates

Night classes can draw a more diverse student body than traditional college classes. For discussion-oriented classes, this can enrich the conversation with more perspectives.

It is also an opportunity to network and find a study buddy or two. Because night classes usually meet only once a week for a 15-week semester, even one absence could lead to falling behind or missing out on critical information. Classmates can be a resource for sharing notes and staying in the loop on what happened in class.

Also, becoming friends with classmates could make lengthy night classes more fun and add motivation to keep up strong attendance.

Creating a More Flexible Work Schedule

Even full-time students can expect to have at least one or two nights free from scheduled classes. If you have a flexible work schedule, you’re already in a position to craft an ideal balance of work, school, and social life.

However, if you’re working some version of the standard 9-5 schedule five days a week, the days with back-to-back work and class can feel like a marathon. Getting an education takes work, but you may not get the most out of it if it becomes something you dread.

Redistributing work hours to accommodate your night class schedule might prevent burnout. For instance, being able to come in an hour later on mornings after night classes and make them up later in the week can spread out the workload and help in catching up on sleep.

Talking to supervisors may feel intimidating, but if your college night classes are providing skills and knowledge to perform better at your job, you can make a case for getting some wiggle room at work while you finish school.

Avoiding Procrastination

As school traditionally runs from morning to early afternoon, conventional wisdom dictates completing homework and assignments the night before, at the latest. With night classes, the window to procrastinate can be extended later in the day.

Planning can help a student avoid a situation that requires picking between going to work or completing an assignment for class. Mapping out assignment due dates at the onset of the semester is one method to stay on track.

Managing Time

Between exams and papers, college classes often have a steady stream of readings and assignments to keep up with from week to week. Setting aside specific time frames to study for each class may counteract an urge to slack off between major assignments. Repetition can also improve knowledge retention, compared with cramming at the last minute.

After taking care of other responsibilities, such as an internship, job, or team practice, it may be difficult to recall readings and information at the end of a long day. Finding a moment before night class to review your notes could better prepare you to participate in discussion or ace a quiz. Creating a brief study guide covering key themes and topics for each week could help if you’re pressed for time.

Pacing Yourself

Before going full steam ahead with a full course load, you can consider testing the waters with one or two night classes. Education is a financial and career investment, and figuring out what’s right for your work-life balance could be the difference between burning out and graduating.

Keep in mind that whether you study full time or part time could affect financial aid or scholarships.

Exploring Night Class Options

Night classes are offered at community colleges and four-year universities alike. Researching multiple options could help a student find an ideal balance of cost, reputation, student body demographics, and campus environment.

Online courses are another option to consider. Synchronous courses may still have online lectures and discussions but allow students to participate from the comfort of home.

Paying for Night Classes

Education comes at a cost. Beyond tuition, taking night classes may require buying textbooks, paying for a parking pass, and other associated fees.

Work-study programs, scholarships, and grants could cover all or part of these expenses, but some students take out loans to pay the remaining cost for their degree or night classes.

Federal loans can come with protections, flexible repayment benefits, and loan forgiveness in certain cases.

When federal loans and other aid aren’t enough, private student loans are an option to consider. Students enrolled full or half time may qualify for a loan from SoFi, whose no-fee private student loans offer flexible repayment plans, helping students find an option that best meets their needs.

SoFi is here to help you reach your educational goals. It takes only minutes to find out what you’re prequalified for.



SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOPS20049

Source: sofi.com

10 Tips to Detox Your Apartment

These days we’re all trying to live healthier, but you can’t concentrate your efforts merely on your fitness routine and diet. Your apartment might need a cleanse, too!

[find-an-apartment]

Our cozy homes often trap allergens in carpets, linens and other sneaky spots. And to make matters worse, the cleansers we use can be just as toxic as the gunk we’re trying to get rid of.

Try cleaning up your apartment’s act with these tips!

1. Lose the shoes
A great way to start your detox is to prevent dirt and dust from getting into your home in the first place. Start a “no shoes on at home” rule, and make sure all residents and guests leave their footwear at the door. (Provide a cool shoe rack for storage!)

2. Get rid of clutter
The more knick-knacks and clutter you keep around, the more surfaces dust can settle on. One of the most important cleaning tips for keeping your home allergy-friendly is to dust and vacuum often.

3. Change air filters
Here’s a simple one. Change your air-conditioner filter every month or two. You might be lucky enough to live in an apartment community that does this for you. If not, take the extra time and do it yourself — your lungs will thank you.

4. Purify the water
Speaking of filters, your HVAC system isn’t the only place where pollutants hang out. Water sources can bring contaminants into your bathing and drinking water every day. Invest in a water filter for your sink faucets and your shower.

10 Tips to Detox Your Apartment10 Tips to Detox Your Apartment5. Change your cleansers
Many people are allergic to the chemicals in cleaners — the same cleaners that are supposed to remove allergens and dirt from your home. To help avoid irritants, switch to environmentally-friendly cleaning products like Mrs. Meyers and Seventh Generation, or try making your own cleansers from scratch.

More Cleaning and Organizing Tips

6. Open the windows and let fresh air in
Our insulated, comfy apartments are great, but a lack of air circulation can make for a stale, polluted environment. Try airing out your space by opening the windows for a few hours every now and then. It’s like giving your home a chance to take a deep breath. (This might not be the best idea at the height of the spring pollen season. Wait until the coast – achoo! – is clear.)

10 Tips to Detox Your Apartment10 Tips to Detox Your Apartment7. Monitor moisture
Mold isn’t always easy to see, but it’s the cause of many toxic reactions in the body. Keep an eye on the moisture levels in your home to combat mold growth. Make a visual check of areas that stay damp and dry out any areas that appear wet. You can also get a hygrometer to check the general humidity in your apartment. Invest in a dehumidifier if your humidity levels are above 50%.

8. Check for carbon monoxide leaks
Gas stoves, hot water heaters, furnaces and fireplaces should be checked regularly for leaks. You might invest in a carbon monoxide detector. This is especially important for apartment dwellers, as your neighbors could have a leak that you don’t know about.

9. Get expert advice
If all of these detox cleaning tips have overwhelmed you already, don’t worry – there are people who can help! Hiring a professional organizer is a great way to get your detox done quickly from someone who can teach you about the process. The National Association of Professional Organizers has a helpful database to search for “green organizers” in your area.

10. Give it time
Creating a delightfully detoxed apartment might involve many changes, but you don’t have to take them all at once. Just tweaking one thing you do, like switching cleansers, can make a big difference. Move at your own pace and, in time, your environment will be home to fewer irritants.

Like any life change, detoxing your apartment will be more fun if you enlist a buddy to help you. Find a friend to go green with, and you can celebrate your success together. To your health!

Photo credits: Shutterstock / sunsetman, Africa Studio, swinner

Comments

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Source: apartmentguide.com

What is Rent Control?

Did you ever wonder how Monica and Rachel in “Friends” could afford rent in a two-bedroom New York City apartment on a waitress and chef’s salary? Well, the answer is rent control.

Rent control is a rare policy that fixes the price of rent indefinitely and falls under the umbrella term “rent regulations.”

It sounds great, right? Before you get too excited, you need to understand exactly what is rent control.

We’ll talk about the difference between rent control vs. rent stabilization, explain how it really works and give you a few advantages and disadvantages of living in a rent-controlled apartment.

Rent control vs. rent stabilization

Both rent control and rent stabilization are concepts centered around the idea of protecting tenants from major increases in the price of rent. The goal is to keep housing affordable while also enabling landlords to increase rent.

While people often confuse the two, there is a big difference between them.

Rent stabilization

Rent stabilization is the more common practice and means that landlords or property owners can only increase rent by a specific percentage year-over-year. In areas that have rent stabilization in place, the state sets the rate at which landlords can increase rent. Because this is a state issue, not a federal issue, it can vary drastically state-by-state. For example, Oregon limits yearly rent increases to 9.2 percent while Los Angeles County in California limits yearly rent increases to a mere 3 percent.

This is a more common practice and you’ll likely have an easier time finding a rent-stabilized apartment than a rent-controlled apartment.

Rent control

Rent control is a policy that means landlords cannot increase a tenant’s rent. Effectively, rental rates remain set and won’t increase. Rent-controlled apartments have a set price for rent that will not increase whereas rent-stabilized apartments will see price increases but there is a cap on how much the rate can increase each year.

Rent-controlled apartments are incredibly rare, so if you live in or can find a rent-controlled apartment, you’re very lucky.

Friends apartment in NYC.

In fact, there are only 22,000 rent-controlled apartments out there. Even if you can find a rent-controlled apartment on the market, you have to meet a specific set of criteria to qualify for one. This includes:

  • You cannot make more than $200,000 for two years in a row
  • The building must have been built before 1947
  • The apartment must have been lived in by the same family since at least 1971
  • The apartment must be passed from family member to family member
  • The person who inherits the rent-controlled apartment must have lived in it for two years straight before officially inheriting it

Now, it makes sense how Monica had such a great apartment in New York — she lived in the apartment with her grandmother for two years prior to inheriting it from her. This allowed her to take over the rent-controlled apartment and keep it in the family.

Where is rent control most common?

Out of the 50 states, only five have specific rent control policies in place. The other 45 exempt rent control or have no active policies in place.

The five states that have some rent-controlled apartments are California, Maryland, New Jersey, New York and Oregon.

Map of rent control.

Photo source: National Multifamily Housing Council

Pros and cons of rent control

As with everything, there are pros and cons to rent control depending on your perspective and situation.

Pro: Cheaper for tenants

Because rent-controlled apartments have a fixed price for rent, they are very affordable. You will pay the same price for rent year after year, even as your neighbors experience price increases. Rent-controlled apartments are cheap.

Pro: Affordable even when wages don’t increase

It’s common knowledge that rent prices are rising faster than wages are. So, you can live in the same apartment at the same price and still afford it, even if you don’t see a pay bump on your paycheck very often.

Pro: Foster safe neighborhoods

Rent-controlled apartments offer renters financial stability because they know that they can live on a fixed income. When there is financial stability, people will stay in the same location, develop relationships with neighbors and decrease renter turnover. All of these factors contribute to a safer neighborhood and environment.

Pro: Automatic lease renewals

When you live in a rent-controlled apartment, you automatically get the first right of renewal on your lease. Basically, you always have a place to live and can always re-sign your lease at the same rate.

Con: Not always well-maintained

Because of the fixed rent price in a rent-controlled apartment, landlords don’t maintain, update or refurbish them as often because it isn’t profitable for them. At times, rent-controlled apartments have outdated appliances because no one invests in them.

Con: Hard to come by

As we mentioned earlier, there are roughly 22,000 rent-controlled apartments in the wild, so they are incredibly rare and hard to come by. As such, you’ll be frustrated looking for one as the supply is so low.

Con: Landlords often lose money on rent-controlled apartments

If you’re a landlord of a rent-controlled apartment, you’re likely losing money compared to other landlords who can increase the price of rent each year. If you’re a tenant, this is great. But, it’s a con for the property owner.

Reviewing and signing a lease.

How to find a rent-controlled apartment

Rent-controlled apartments are a unicorn in the real estate world. When you have one, hold onto it as they are very rare and you likely won’t have a better deal anywhere, especially in an expensive metro like New York City.

If you want a rent-controlled apartment, you have two ways to find one.

  1. You can inherit a rent-controlled apartment
  2. Research the city or state’s database of rent-controlled apartments

If you can’t find or qualify for a rent-controlled apartment, don’t fret. Rent.com has thousands of affordable apartments all across the country that would be perfect for you. Start your search today!

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.

Source: rent.com

Cheap Green Cleaning: The Only 5 Products You Need

When it comes to spring cleaning, the only way to do it right is to go green. Not only are non-toxic cleaning products better for your health, there’s another bonus: This is one of those times when going green also saves you money! Not only are the following five green cleaning products good for your health and your home’s cleanliness, but they also cost way less to keep on hand than commercial cleaners.

Ready to start scrubbing? Read on to learn about the only five weapons you’ll need in your cleaning arsenal:

1. Baking soda

This simple white powder is as versatile as it is cheap – a 16-oz. box costs only about a dollar, and you can use it in all sorts of ways around the home. For example:

  • On your carpet: If your pet or kid had an accident on the rug, sprinkle baking soda over the area and let it absorb the moisture. Vacuum the carpet when it’s dry. If a spot remains, gently brush a baking soda and water mixture into the carpet, let it dry, then vacuum.
  • On your walls: Remove marks from walls by wiping with a damp sponge dipped in baking soda.
  • On your stainless steel appliances: Sprinkle baking soda onto a damp sponge and wipe down your appliances. Then rinse the sponge and wipe again to get rid of the residue.

Read more: 17 Cleaning Essentials for Your Apartment

2. Vinegar

When it comes to green cleaning, vinegar is your go-to wonder product. Here are just a few ways you can use vinegar to clean:

  • For your windows: Mix vinegar and water in a 1:1 ratio in a spray bottle. To get extra shine with no streaks –  plus cut down on waste – wipe with a microfiber cloth instead of paper towels.
  • For your floors: Mix one cup of vinegar, one cup of hot water, and a couple drops of dish soap in a spray bottle. Just spray it on the floor – hardwood, tile, linoleum or any other non-carpeted surface will do – and mop. No rinsing needed!
  • For your sink drains: If you have a clogged drain, remove the stopper and pour half a cup of baking soda into it, followed by a cup of vinegar. Let it bubble away for about half an hour, then flush the drain with boiling water.

A gallon of vinegar will cost you less than $10.

Read more: How to Keep Your Apartment Cleaning Earth-Friendly

3. Castile soap

When you’re cleaning hard surfaces, sometimes you need some suds. Paired with some water and a stiff-bristled brush, castile soap will be your best friend for bathroom cleaning.

  • In your tub: Combine water and castile soap in a 2:1 ratio in a spray bottle. Spray liberally in your tub, then scrub with the brush to get rid of mildew and soap scum. Rinse with warm water.
  • In your sink: Spray the same mixture all over the surface of your sink, then scrub with the brush until the sink shines.

A 16-oz. bottle of Dr. Bronner’s castile soap costs about $10.

Read more: Clean Green: Eco-Friendly Cleaning Products

4. Hydrogen peroxide

A brown bottle of 3% hydrogen peroxide is a green alternative to bleach – it has all the whitening power without harming the environment. And, at less than a buck for a 16-oz. bottle, it’s ultra-cheap as well.

  • In your toilet: Pour about half a cup of hydrogen peroxide into your toilet bowl and let it sit for about 20 minutes, then scrub clean with a brush.
  • On your grout: If you’ve got moldy or discolored grout, first dry the surface thoroughly, then spray with hydrogen peroxide. Let it sit for about half an hour and then scrub with an old toothbrush. If you have a lot of mildew, you might have to repeat the process several times to get white grout again.
  • In your kitchen: Because it’s non-toxic, you can use hydrogen peroxide to clean surfaces around your food. Use it to wipe out your refrigerator and dishwasher, disinfect cutting boards, and clean your sponges.

Tip: If you’re pouring hydrogen peroxide into a spray bottle, make sure the bottle is opaque – exposure to light will kill the solution’s effectiveness.

Read more: How to Clean Your Kitchen Appliances

Wood cleaners are difficult to make yourself, so buy an eco-friendly furniture cleaning product.Wood cleaners are difficult to make yourself, so buy an eco-friendly furniture cleaning product.
Wood cleaners are difficult to make yourself, so buy an eco-friendly furniture cleaning product.

5. Wood cleaner

Your furniture needs cleaning, too, but not all cleaners are easy to DIY. To avoid damaging or leaving a residue on your wood pieces, we recommend buying an eco-friendly wood cleaner.

  • Method’s Wood for Good cleaner costs about $7 for a 28-oz. spray bottle.
  • Seventh Generation’s Wood Cleaner costs about $5 for an 18-oz. spray bottle.

Read more: Go Green in Your Apartment Month-by-Month (Infographic)

Your turn! What are your favorite green cleaning products?

Photo credits: Shutterstock / Gita Kulinitch Studio, Daleen Loest

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Source: apartmentguide.com

5 Strategies to Teach Kids Financial Independence

It’s been said that every crisis has a silver lining. For many, today’s challenging environment presents a unique opportunity to get creative in how we teach the next generation about wealth and the strategies to manage it.

Just as you work hard to secure your own financial future and legacy, it’s also important to ensure that your loved ones can navigate their own financial independence. In my career, I have used quite a few tactics to help prepare the next generation, and I have found the following five strategies to be most effective. But before digging into each strategy, let’s review the basics.

Understanding the Basics

Financial literacy can mean different things to different people, so it’s important to meet the next generation where they are – not where you would like them to be. My clients often have many personal and professional milestones under their belt, so they may have different perspectives from those who are just starting out.

But some financial literacy concepts are universally important, perhaps none more so than this: Understanding the connection between what you do and what you have. Oftentimes, this relationship isn’t clear. For example, many younger members of my clients’ families have a habit of spending money without knowing how money is earned. Regardless of age or circumstances, proper financial preparation requires a steady focus on the future.

Preparation also means having conversations with loved ones about finances, which may be uncomfortable or challenging. This might make you a bit hesitant to begin the process. Below are five strategies you may find useful when teaching the next generation about money.

1. Communicate and Collaborate on Money Matters

Engaging your loved ones in frequent, quick and high-level conversations about finances helps keep the topic on their radar and often eases many of the anxieties that exist around these topics. For example, questions can start as simple as what’s something you want to buy that you’d like to begin saving for? Or, do you think your allowance or income is enough? Why or why not? The good thing about these conversations is that you can begin to have them even when your child is young.

Once they are comfortable with these quick chats, begin including them in larger discussions about spending, saving and philanthropy, which can make them feel more involved.

2. Turn Abstract Ideas into Tangible Reality

Children tend to be more engaged in learning when there is an emotional component. Telling the next generation to save more or donate to good causes without explaining why can make it hard for them to understand. Explain your own “why” behind your financial decisions to make these concepts more personal and, therefore, more memorable.

 Many clients I work with are motivated to save or give because of something they’ve experienced before, and even if it’s not something your child will experience themselves, it doesn’t mean that you can’t help them see from another’s perspective. Making sure to point out the lessons — such as wanting to preserve a beautiful environment or to help someone in need or to appreciate beautiful craftsmanship — can drive the deeper value of money home.

3. Highlight the Advantages of Thoughtful Planning

It’s not easy for young children — and many teenagers — to understand that delayed gratification can make them happier. Helping them recognize that disciplined saving and investing will allow them to acquire a toy, vehicle or lifestyle they really want can reinforce the benefits of acting responsibly. Make a vision board or other visual representation of goals to create a concrete reminder of the future they are trying to create.

4. Help them Learn Better with Incentives

A central tenet of economic theory is that incentives influence behavior. This helps explain why, as research firm Cerulli Associates found, the majority of employees say an employer 401(k) match was the reason they started saving for retirement. By offering your loved ones a similar way to grow their savings faster, they can learn good behavior that will hopefully stick with them for life.

 This is simultaneously a way to instill appreciation for hard work as well. You can choose to give your kids a way to earn money by doing certain household chores rather than giving them a free allowance. You can also reward them more for a job well done.

5. Transform Mistakes into ‘Teachable Moments’

We all make mistakes, but when we see our loved ones falter, it’s only natural to want to fix things. However, it’s better for all involved if they understand that actions have consequences. Be sure to discuss the situation clearly and calmly with your loved one. If they don’t get “bailed out” after blowing an allowance or what they have in savings, they will likely think long and hard before doing it again.

The Path to Financial Literacy

Of course, there’s more to teaching the next generation about money than the five strategies above. For those who would prefer to work with standardized curricula tailored to different ages — from kindergarten to 12th grade —  and learning styles, the resources from Maryville University are a great place to start. Other helpful information can be found at WNET Education.

Financial education is a journey – and the most important step is the first one.

Senior Wealth Adviser, Boston Private

Kathleen Kenealy, CFP®, CPWA® is the Director of Financial Planning and a senior wealth adviser for Boston Private. She specializes in working with successful individuals and families to manage, protect and grow their assets. Kenealy provides guidance on investment, retirement, philanthropic, estate and tax-planning strategies.

Source: kiplinger.com

How to Make Your Apartment More Eco-Friendly | Apartminty

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There are a lot of perks to apartment living. They’re generally easier to maintain, can be more affordable than a house, and are great short-term commitments for those always on the go. However, one of the drawbacks to apartment-dwelling, particularly if you’re an environmentalist, is often the limited green actions available. Whether you rent or own your apartment, it can be difficult knowing how to get involved in sustainability efforts. However, eco-friendly changes can be applied everywhere, including apartments.

It’s important for the sake of our future here on Earth to begin taking green actions to help minimize the negative impacts on the environment. For those living in apartments, getting started on making your living space more eco-friendly is easier than you think:  

Construct with Mother Nature in Mind

The best place to start is at the beginning, right? If you’re an apartment owner or landlord, it’s important to prioritize constructing any new apartments with the right materials. Some of the best sustainable building materials to use include:

  • Reclaimed Wood: Reusing materials like reclaimed wood is a perfect way to cut down on waste and reduce production costs. Reclaimed wood also typically has a lot of character which only helps make each of your apartments more unique while also being sustainable.
  • Bamboo: The thing that makes bamboo a great sustainable material choice is its rapid growth rate. Bamboo is ready to be used in just six years and when it’s of high quality and sold by reputable dealers, it’s extremely durable and long-lasting. It’s also one of the more affordable options to pick from. 
  • Green Insulation: Unlike traditional insulation that’s made from synthetic materials, which can be damaging to the environment, green insulation is made from recycled materials. From old denim to sheep’s wool, green insulation is a great substitute for fiberglass insulation and more.

Making the initial decision to build with sustainable materials benefits the environment long-term by reducing the overall negative impacts. It also can help save future tenants money on utilities thanks to sustainable building materials like green insulation helping to reduce energy use. It may be more expensive at times to pick the sustainable option over the non-sustainable counterpart, but it’s worth the cost.  

Don’t Shy Away from Pre-Owned Appliances

Appliances breaking down or not working properly is a common issue for tenants and owners alike. Moreover, many apartments still have the same appliances they were built with decades ago. While certain types of appliances were definitely built to last regardless of age, for the most part, many are now inefficient and that can be costly. As pointed out by General Contractors License Guide, “Not only do inefficient appliances waste energy, but they can also cost you extra money. A 21-cubic foot refrigerator using 750 watts of power costs an average of $27 each month to run, which can add up fast when you factor in additional energy use each month.” With that being said though, don’t be temped quite yet to toss out your old appliances. 

While it may depend on where you live, there is likely a used appliance business you can and should utilize. Organizations such as Habitat for Humanity have numerous stores you can contact. They will not only replace broken appliances with functioning ones but will also take your old ones away and repurpose them. The appliances these types of businesses have are typically lightly used and worked on to be good as new. This reduces the overall impact on the environment by increasing better energy usage functions, minimizing waste, and providing more materials to be re-used.

Small Changes Have Big Impacts

Wanting to make some green changes to your apartment is understandable as we begin learning more and more about serious environmental threats and problems. However, it’s worth keeping in mind that it’s easy to overload yourself when taking on major eco-friendly projects and renovations. Furthermore, it’s not always possible to make those apartment-altering changes. While big green actions are certainly important, small, everyday green actions are just as essential in regards to the planet’s health. Try incorporating some of the simple green actions found in things like eco-friendly apartment guides if you’re unsure where to start. It may feel perhaps ineffectual, but changing your habits to be more conscious of the environment is a great way to make a difference, regardless of where you live. 

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Source: blog.apartminty.com

How to DIY a Citrus Vinegar Cleaning Spray

If you’ve made the switch to green cleaners, you’ve made a smart, healthy choice for yourself and your household. And if you choose to DIY your own cleaning solutions, even better! Making your own cleaners is cheaper, healthier and better for the environment than buying toxic commercial cleaners.

Even if you’re not crafty, don’t be daunted by the DIY process. In fact, there’s only one ingredient you really need to make most DIY cleaners: Vinegar. It’s a wonder solution for killing germs and removing odors. But let’s be honest: It doesn’t smell great. Fortunately, you can take advantage of vinegar’s cleaning power without that pickled smell. Here’s how to make your own citrus vinegar cleaning spray.

What you’ll need

  • Vinegar
  • Empty jar with a tight-fitting lid
  • Orange

1. Peel the orange, but don’t throw the peel out. Do whatever you like with the inside of the orange; I recommend eating it.

2. Place the orange peels in the jar.

citrus vinegar cleaning spraycitrus vinegar cleaning spray

3. Pour the vinegar into the jar until the jar is full. Screw the lid on tightly.

citrus vinegar cleaning spraycitrus vinegar cleaning spray

4. Give the jar a good shake, then place it in a pantry for two weeks, shaking it every other day or so.

At the end of two weeks, your citrus-infused vinegar will be ready. Just pour it through a strainer into a spray bottle in a 1:1 ratio with tap water, then use it to clean everything from your bathroom to your kitchen countertop. Enjoy the refreshing orange scent as you clean. If you’ve got any left over, store it in the fridge.

sprayingspraying

More expert advice on green cleaning from the AG Blog:

Other ways to use vinegar in your home

  • Place an open dish of vinegar (whether it’s citrus-infused or not; either way will work) in a room to remove the smell of fresh paint or stinky cooking smells, such as fish.
  • Remember how you made a volcano for your second-grade science fair? That same chemical reaction — combining vinegar with baking soda — produces a bubbly substance that’s great for cleaning drains. Just let it fizz for half an hour or so, then flush the drain with boiling water.
  • Clean your stainless steel appliances with a light misting of undiluted vinegar. Wipe with a soft, clean cloth to remove fingerprints and bring out the shine in your appliances again.
  • If you’ve got carpet stains, dissolve two tablespoons of salt in half a cup of white vinegar. Pour it on the stain, lightly rub it in, let it dry for a few hours, then vacuum. For darker stains, add 2 tablespoons of borax to the mix, then use it the same way.

An orange, some vinegar, an empty Mason jar and an empty spray bottle are all you need to make your own citrus vinegar cleaning spray.An orange, some vinegar, an empty Mason jar and an empty spray bottle are all you need to make your own citrus vinegar cleaning spray.

For serious cleanup, skip the vinegar

Vinegar is a mild disinfectant that’s perfectly effective for most household messes, but if you’ve got something that needs serious disinfecting – such as meat juice on your countertop – don’t turn to vinegar.

You don’t need to buy toxic cleaners even for these messes; hot, soapy water will do the trick. First, wipe up the mess with a paper towel and immediately throw it in the trash. Put a few drops of castile soap in a bottle of hot water, spray the area where the juice was, then rub vigorously with a different rag or paper towel. Finally, wash your hands thoroughly.

How do you use vinegar in your home?

Photo by Jessica Lewis on Unsplash

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Source: apartmentguide.com

How to Save Money on Business Travel – 21 Ideas To Reduce Trip Costs

It doesn’t matter if you’re an executive at a large corporation or a small-business owner. It’s likely you sometimes have to travel for work.

Business travel is also becoming more common. According to Statista, worldwide business travel spending has more than doubled since 2000. While spending has recently declined due to the COVID-19 pandemic, traveling for work is still a reality for some and should eventually recover.

Business travel often involves international travel or significant domestic travel. Trade shows, conferences, networking events, and meeting new clients can require you to hop on a flight to do business in a new city or country. With airfare, hotel costs, transportation, and general travel expenses, costs rack up quickly.

If you want to save money on business travel, you’re in luck. There are numerous ways to reduce travel expenses beyond just booking economy.

Saving Money on Business Airfare

Of all business travel expenses, airfare is often the costliest. Booking flights in advance and sticking with economy are the two most straightforward ways to cut travel costs. But there are other ways to find cheap flights and reduce airfare costs.

1. Book Cheap & Discounted Flights

If you’re trying to save on business travel, booking flights early is the best way to find deals. Last-minute flights are usually expensive, and the more time you have to shop around, the better.

But that’s not the only trick you can use to find cheap flight options.

  • Book flights with layovers, provided the savings are worth the extra travel time.
  • Use airline search engines like Expedia, Travelocity, and CheapOair to find low-cost airfare.
  • Try alternate airports to your closest airport if they have lower prices.
  • Book directly through an airline carrier since some airlines don’t appear on airline search engines.
  • Take a red-eye (overnight) flight.

You can also take travel planning a step further and possibly score free flights or serious discounts. One popular strategy is to buy airline miles during a promotion, which is essentially buying a future flight at a discount. You can also earn airline miles without a credit card by opening a Bask Bank account or even participating in focus groups.

As long as you browse travel sites for deals and remain flexible, there’s no reason your next business flight should be full price.

2. Avoid Airline Fees

Finding cheap airline tickets is an effective way to reduce travel costs. However, if you aren’t careful, unnecessary airline fees can turn an otherwise frugal trip into a significant business expense.

The best way to avoid airline fees is to read the fine print carefully and stick with the right carrier. Some airlines, like Southwest and United, are generally lenient with checked bag fees and carry-on luggage, and you can sometimes avoid paying for these conveniences altogether.

If your airline charges for checked baggage, consider traveling light and just bringing a carry-on. If you need a suitcase to pack business attire, use a luggage scale to weigh your bag at home to avoid paying for overweight baggage.

Finally, resist paying for airline fees like early boarding or picking your seat if you aren’t picky about getting the aisle or window seat. These sound like luxuries, but these expenses add up quickly and don’t necessarily improve the quality of your flight.

3. Skip Airport Parking

Another common airport travel expense is parking. If you’re traveling for a week or longer, the daily cost of airport parking adds up. For example, at John F. Kennedy International Airport in New York, 24 hours of parking is $18 in the economy lot, meaning seven days of parking is an additional $126.

Thankfully, you can avoid parking fees entirely. One method is to take an Uber or Lyft to the airport. Alternatively, having a co-worker or family member drop you off is your next best bet. Public transportation is also worth the extra time if it saves you from expensive daily parking fees.

4. Book Through Rewards Websites

Booking your flight and hotel through a rewards website helps you save money on vacation and personal trips. But the right website can also cut business travel expenses.

Rakuten lets you earn cash back for shopping at thousands of partners. Creating an account is free, and once you shop at an eligible partner, you earn cash back in your account. You get paid quarterly as long as your account has $5, which is easy to do if you score cash back on a flight or hotel stay.

Rakuten has numerous travel partners, including:

  • Travelocity
  • CheapOair
  • OneTravel
  • Cheapair
  • Orbitz
  • Priceline
  • Holiday Inn
  • Extended Stay America
  • Hotels.com

Rakuten also has non-travel partners you can use to save even more money. For example, it lets you earn up to 5% cash back at thousands of restaurants, which helps you save if you eat out or take clients out for meals. Additionally, Rakuten partners with office supply companies, print shops, and electronics retailers, so you can save on a variety of business-related expenses.

It might seem strange to use a rewards website for business expenses. But if you’re trying to cut costs, every bit of savings counts.

Read our Rakuten review for more information.

5. Always Use a Travel Rewards Credit Card

If you’re a frequent business traveler, you need a travel rewards credit card. Typically, these cards let you earn points for travel-related expenses like flights and in-flight purchases alongside everyday spending.

You can often redeem points for discounted flights and even free airfare if you stack enough points. Plus, many travel rewards credit cards offer additional perks like hotel discounts, priority boarding, and airport lounge access.

Popular travel rewards credit cards include:

  • Chase Sapphire Reserve Card: Earn a $750 travel bonus for spending $4,000 in your first three months; $300 annual travel credit; triple points on travel and dining; perks like lost luggage and trip cancellation coverage; $550 annual fee
  • American Express Platinum Card: Earn a $750 bonus for spending $5,000 in your first three months; $200 annual airline fee credit; quintuple points on flights and prepaid hotels; $200 annual savings on Uber rides and food delivery; various hotel upgrades and discounts; $550 annual fee
  • Chase Sapphire Preferred Card: Earn a $750 travel bonus for spending $4,000 in your first three months; double points on travel and dining; quintuple points on Lyft rides; perks like lost luggage and trip cancellation coverage; $95 annual fee

There are other travel credit card options, including lucrative cash-back credit cards. If you’re a business owner, you can also look at small-business credit cards like the Chase Ink Business Preferred credit card. This card has numerous travel perks and an impressive $1,250 account opening bonus if you spend at least $15,000 within the first three months of becoming a cardholder.

Ideally, your credit card should offer enough travel perks and other rewards to help you save money even with the annual fee.


Saving Money on Accommodations

Finding a pleasant hotel or rental can help foster a successful business trip. Ideally, the location is close to clients or any event you need to attend and has ample access to restaurants for client meetings. Ultimately, you want to strike a balance among comfort, convenience, and affordability.

That can be difficult to get right. The worst-case scenario is that employee performance suffers because of location or simply being too cheap when booking. On the flip side, always sticking with 5-star luxury suites isn’t cost-effective.

As with airfare, there are several tips you can use to reduce how much you spend on accommodations.

6. Negotiate With Hotels

As an independent traveler, calling a hotel and negotiating room prices isn’t always feasible. But business travelers have a slight advantage, especially when traveling in larger groups.

Hotel chains want to incentivize visits from business travelers because it’s reliable, repeat business. If you’re heading out of town for a conference or meeting, take time to call nearby hotels to see what they can offer.

If it’s a frequent trip and you plan to return regularly, let the hotel know. You might find the manager is willing to drop your room price or at least give a free upgrade to keep you happy.

7. Try Dosh Travel

Dosh is a popular cash-back reward app that pays you for shopping at hundreds of partners. Once you link a credit or debit card to Dosh, you automatically earn for shopping at eligible retailers. That’s different from apps like Ibotta that require you to preselect offers before shopping.

Dosh works with dozens of companies, including:

  • Walmart
  • Pizza Hut
  • Sephora
  • Macy’s
  • Uber
  • Old Navy

Currently, you can earn with Dosh at over 100,000 stores across the United States. However, Dosh is also a way to save money on your next business trip.

With Dosh Travel, you can earn up to 40% cash back for booking a hotel through the app. Dosh works with more than 600,000 hotels globally, so there’s no shortage of choice.

You need at least $25 to withdraw your balance, but a single hotel stay can easily earn this amount. Additionally, Dosh partners with local restaurants and Uber Eats, so you can save money taking clients out and feeding your employees. With partners like Walmart and Office Depot, you can also earn cash back for buying office supplies, which can help you reach $25 faster.

Read our Dosh app review to learn more.

8. Consider Airbnb

If your company is traveling with multiple employees, it’s likely everyone needs their own room. Ultimately, that means a substantial hotel bill, even if you negotiate prices or find a deal.

Before you spend thousands of dollars on multiple hotel rooms, search Airbnb’s business accommodations. The platform has grown beyond vacation rentals, and you can find top-rated homes and boutique hotels that also have collaborative workspaces. Plus, Airbnb listings also mention nearby activities and attractions you can use for team building.

Airbnb isn’t always cheaper than hotels, but large groups are likely to save money. Even when you factor in cleaning charges and service fees, Airbnb has some remarkably low nightly prices. Plus, you can negotiate with hosts to get a lower price, and your amenities are likely better than a single hotel room.

If you want to save money and increase your comfort, using Airbnb for your next business trip is certainly worth it.


Saving Money on Food

It’s standard practice for employers to pay for employee meals during business trips. And taking clients and potential customers out for food and drinks is common during business travel. But expenses like client dinners and catering for your team add up quickly unless you implement some money-saving tips for food costs.

9. Schedule Breakfast & Lunchtime Meetings

The practice of wining and dining exists for good reason. For existing relationships, taking clients out shows them you appreciate their business. Similarly, taking a prospect out for food and drinks helps establish a more personal relationship and lets you discuss business in a less formal environment.

However, dinner is almost always more expensive than breakfast or lunch. If you treat a client to a nice dinner with a main course and drinks, you could easily spend $100 or more for the meal, depending on where you go and how many diners you have.

For example, at Scarpetta, a popular Italian restaurant in New York City, most dinner entrees range from $30 to $45. If you add two drinks and an appetizer, that’s another $50 or so for your bill. With an 18% tip, you’re paying around $140 for dinner for just you and one client. When you multiply that by several dinners over a business trip, expenses rack up quickly.

To save money on client meals, schedule breakfast or lunch meetings instead. The brunch menu at Scarpetta, which runs until 3pm, is noticeably cheaper than the dinner menu, with most entrees costing $18. Even with drinks, brunch or lunchtime dining likely brings your bill down to around $80, saving you over 40% on your meal with a client.

For breakfast, you can also find trendy restaurants and cafes suitable for client meetings, like La Parisienne, where a breakfast meeting for two costs around $40 to $50.

You don’t have to go to fast-food restaurants to save money on taking clients out. Instead, research several restaurants with affordable lunch and breakfast menus in the city you’re traveling to so you have some options.

10. Use Corporate Meal-Delivery Services

You may also need to feed your team on business trips. For that, you can save even more using corporate food-delivery services instead of catering companies, time-consuming reimbursement, or cash per-diem allowances.

For example, if you’re running a team event, try using DoorDash for Work to order everyone’s food. Perks of DoorDash for Work include:

  • No delivery fees
  • Lower service fees
  • Easy-to-create group orders
  • Spending limits and reimbursement options to let employees expense their meals

Uber Eats also has a corporate option that lets team members place group orders. As an employer, you can create rules like stipends and hours during which you cover employees’ expenses.

11. Scout Ahead for Cheap Food Joints

Often, if you book accommodations in a city’s downtown business district, you’ll find yourself surrounded by expensive restaurants and bars. But if you’re a mile or more out of downtown, you can probably find cheaper restaurants that are still suitable for client meetings and employee dining.

When booking accommodations, scout the area for affordable restaurants and nearby grocery stores. You should also search for quick and cheap restaurants or even food trucks that are nearby. That’s especially handy if you’re attending trade shows or events and only have time for a quick bite during a lull in the day.

12. Book Cooking-Friendly Accommodations

You don’t need a hotel with a complete kitchen for business travel. But having a microwave and small stovetop means you and your employees can cook some meals rather than relying on hotel food services and eating out constantly (a boon for those on special diets or with food allergies or restrictions).

The savings can add up quickly. For example, if you book a room with a stovetop, you can make a quick breakfast of eggs and toast rather than eating out each morning. That means you’re spending $1 to $2 at most for breakfast instead of $10 to $20 going out. However, if the cost of the room is significantly more expensive than a room without a kitchen, the savings likely aren’t worth it, so consider how impactful potential food savings is when booking accommodations.

For long business trips, companies like Extended Stay America have rooms with a full kitchen and let you save up to 31% on nightly rates if you book for 30 nights or longer. Booking an Airbnb is also ideal for saving on food since you typically have access to a full kitchen.


Saving Money on Transportation

While transportation usually doesn’t cost as much as airfare or accommodations, getting around a new city can still be a significant business travel expense. If you want to cut costs, there are several tricks you can try.

13. Use Rideshare Apps

As a business traveler, your first instinct might be to use an airport car rental service or even a higher-end rental company like Silvercar. However, when you consider car rental upsells and various hidden fees, it can be challenging to find a cheap car rental option.

Plus, if your trip consists of meetings and conferences, you won’t spend much time behind the wheel, making your rental car a near waste. In that case, you’re better off using rideshare apps like Uber and Lyft to travel.

Uber and Lyft also simplify corporate travel budgeting. For example, companies can set travel stipends and track ride history to ensure employees are only expensing business rides rather than personal.

If you’re responsible for approving reimbursement requests, you can quickly check the time, pickup, and drop-off location of every ride an employee expenses. If a ride seems like it wasn’t for business purposes, ask for clarification so your company doesn’t accidentally pay or attempt to take a tax deduction for personal employee expenses.

14. Book Accommodations in the Right Location

In an ideal world, you can skip renting a car or using rideshare apps altogether by booking accommodations within walking distance to wherever you need to go for your business trip.

If you’re attending a trade show or conference, check to see if they have arrangements with nearby hotels to offer special prices for attendees. Alternatively, book your own accommodations within walking distance. Even if you pay slightly more per night, the savings on a rental car or rideshare apps is probably worth it.

15. Save Money on Gas

For some business trips, renting a car or driving your own vehicle is more economical than taking a flight or using rideshare apps. But if you’re driving, anything you can do to save money on gas helps make your trip cheaper.

For starters, use a gas credit card to earn rewards for refueling. Popular gas credit cards include:

  • CitiBusiness AAdvantage Platinum Select Mastercard: Earn 65,000 bonus miles for spending $4,000 within your first four months; earn 2 AAdvantage miles for every $1 you spend at gas stations and car rental companies; earn unlimited 1 mile per $1 you spend on other categories; $99 annual fee that’s waived for your first year
  • Costco Anywhere Visa Card by Citi: Earn 4% cash back on gas for the first $7,000 per year and then 1% thereafter; 3% cash back on restaurants and travel purchases; 2% cash back on Costco and Costco.com purchases; 1 cash back everywhere else; no annual fee
  • Wells Fargo Propel American Express Card: Earn a $200 bonus for spending $1,000 in your first three months; earn unlimited 3% cash back on gas, restaurants, rideshares, transit, flights, hotels, and car rentals; earn 1% cash back everywhere else; no annual fee

To complement your gas credit card, use apps that help you find cheap gas stations, like GasBuddy. With GasBuddy, you can also get up to $0.25 off per gallon by signing up for Pay With GasBuddy, a free fuel rewards card you use like a debit card to pay at the pump and save.

Finally, when driving, use an app like Waze to avoid traffic and find the most efficient route possible. That’s especially important in an unfamiliar city where you don’t know your way around very well. Driving more efficiently helps reduce fuel consumption, ultimately saving more money.

It’s essential to conduct a cost-benefit analysis of driving versus flying and using rideshare apps or a rental car. But if the savings point toward driving, there’s no reason to pay full price at the pump.


Other Tips to Save on Business Travel

If you can cut down on airfare, accommodation, and transportation costs, you’re already on track to keep business travel more affordable. But there are other tips you can use to save money and keep trip planning simple.

16. Have a Trip-Approval Process

If you want to cut business costs, you need to understand your annual expenses to identify areas of wasteful spending. Therefore, every business budget should have a designated portion for business travel expenses and an approval process for trips.

You don’t need an extensive corporate travel policy to take a client out for lunch or drive across town for a meeting. But for out-of-town trips, it’s worth getting management involved. Ideally, employees should submit a trip summary that includes:

  • The purpose and length of a trip
  • The employees who are attending
  • A rough estimate of cost

The summary should then pass to human resources or management for approval.

While this might seem redundant, this process is useful for tracking costs and whether trips result in business development. Plus, as a business owner, you might find that you can skip certain trips or involve fewer employees after reviewing the details more closely.

17. Create a Travel Stipend

A trip approval process helps an organization budget for business travel expenses and forces teams to put more thought into deciding to travel in the first place.

But your business travel policy should also outline a daily employee stipend.

Creating a travel stipend for business travel benefits everyone. For employers, a travel stipend makes budgeting simpler. For employees, a stipend helps clarify limits and ensures there aren’t any awkward post-trip conversations about expensive restaurant or bar tabs.

You should also decide on a reimbursement method. One option is to open a business credit card for traveling employees. For example, Ramp lets you create unlimited virtual and physical cards for employees and pays 1.5% cash back. Plus, there’s no annual fee, and Ramp also collects and stores receipts automatically to help track spending.

Alternatively, you can let your employees spend with their own cards and submit expenses for reimbursement. However, ensure your employees know they need to provide receipts.

But weigh the pros and cons of leaving it in your employees’ hands. Making employees pay for expenses means they have to front significant costs like hotels and flights. That could put employees having financial issues in a tight spot they’d rather not discuss with their employer. And it also means they get to leverage their own credit card rewards that otherwise would have gone to the business.

18. Look for a Corporate Travel Agency

If you’re booking a simple business trip, working with a travel agency probably isn’t worth it. Travel agents used to be incredibly helpful because they could find exclusive deals and would book your trip for you. These days, booking travel plans online is straightforward, and you can find travel deals with a few searches.

But if you’re planning a complicated business trip with multiple employees and hotel bookings, a corporate travel agency could be worth it. Agencies charge a fee to ensure a smooth journey, but it could pay for itself if it prevents one of your employees from taking time out of their day to plan an entire trip.

19. Always Keep Receipts

Another simple way to save on business travel is to keep receipts for tax season. There are numerous tax deductions for self-employed individuals and small-business owners, but you need to track expenses to claim them accurately.

Business travel expenses are also deductible. Examples of deductible expenses include:

  • Travel by train, airplane, bus, or car between your home and business destination
  • Shipping baggage or business products to other work locations
  • Using your car for business purposes
  • Accommodations and business-related meals
  • Tolls, parking fees, and rental car usage for business purposes
  • Dry cleaning
  • Taxis and shuttle services

Keeping paper receipts is one way to track your spending. Alternatively, personal finance apps like MoneyPatrol let you save receipts on your smartphone to ensure you’re ready for tax season.

20. Plan Ahead

If you leave trip planning until the last minute, it’s almost impossible to find low prices or deals. That means paying more for flights, hotels, and transportation. Plus, feeling rushed is a surefire way to have a worse trip and potentially forget a critical part of planning.

Give your organization more time to plan trips whenever possible. Ideally, your company should have a calendar of upcoming trips throughout the year to help budget and plan business travel.

That responsibility can fall to department heads or relevant employees, but it needs to be prioritized if employees regularly travel for work.

21. Prioritize Impactful Savings

One of the worst ways to reduce business travel spending is to save money in a way that hurts your business’s image. For example, if you take a client out for lunch, choose a decent restaurant instead of a fast-food joint and cover the bill.

Similarly, there’s little point in nickel-and-diming your way toward a cheaper travel budget. If you spend hours agonizing over rental car prices to save $15, that’s hardly worth your time as an employee.

Ultimately, you should focus on efficient trip planning and tackling major expenses. Find cheap airfare and accommodations, consider sending fewer employees on trips, and always maximize rewards with the right business credit card.


Final Word

Business travel can be a significant expense. But as long as you plan and budget accordingly, there’s no reason for business trips to hurt your bottom line. In fact, business trips are an excellent way to increase business revenue if they create new opportunities.

Just remember to factor upcoming trips into your annual budget and create a trip-approval process and travel stipend. You can also conduct a yearly business checkup to review whether business travel costs have paid for themselves with new opportunities.

Source: moneycrashers.com