Only One in Three American Millionaires Feel “Wealthy” and Nearly Half Say Their Financial Planning Needs Improvement, According to Northwestern Mutual Planning & Progress Study What’s it like to feel like a million bucks? Millionaires indicate it’s less about believing you’re rich and more about having confidence and clarity about the future. Nearly 80% of … [Read more…]
Living in Hawaii offers unique experiences, from stunning landscapes to fascinating culture. Whether you’re looking to rent in Honolulu or searching for an apartment in Hilo, these fun facts about the Aloha State will give you more reasons to appreciate this island paradise.
Hawaii consists of 137 islands, but only eight are considered the main islands. The largest island, Hawai’i (also known simply as the Big Island) is more than twice the size of all the other islands combined. Oahu, home to the capital city Honolulu, is the third-largest island.
The Hawaiian alphabet includes five vowels (A, E, I, O, U) and eight consonants (H, K, L, M, N, P, W, and the ʻokina). The ʻokina, a glottal stop, acts as a letter in the language. Many place names in Hawaii include repetitive sounds, reflecting the language’s simplicity.
Hawaii follows Hawaii-Aleutian Standard Time (HST), which is 10 hours behind Coordinated Universal Time (UTC-10). The state does not observe daylight saving time, so the time difference with the mainland changes throughout the year. In the winter, Hawaii is two hours behind the West Coast, but during the summer, it’s three hours.
While most states have to import their coffee, Hawaiians can enjoy it fresh from the source. The rich volcanic soil and ideal climate make Hawaii perfect for coffee farming. Kona coffee, grown on the Big Island, is famous worldwide for its smooth, rich flavor. Coffee farms can also be found on Maui, Oahu, and Kauai. The industry plays a significant role in the local economy, attracting many tourists. Living in Hawaii means you can enjoy fresh, locally grown coffee daily.
The Hawaiian Islands were formed by volcanic activity, and this process continues today. Kīlauea, one of the world’s most active volcanoes, constantly adds new land to the Big Island. The island’s southeastern coast has seen significant changes in recent years due to lava flows. Volcanic activity also creates black sand beaches, which are unique to the area..
Before becoming a U.S. state, Hawaii was an independent kingdom with its own monarchy. King Kamehameha I united the islands in 1810, establishing the Kingdom of Hawaii. The monarchy lasted until 1893, when it was overthrown by American and European settlers. In 1898, Hawaii was annexed by the United States, and it became the 50th state in 1959.
Surfing, a sport now enjoyed worldwide, originated in Hawaii. Ancient Hawaiians viewed surfing as more than a sport; it was a spiritual experience. The chiefs, or ali‘i, often competed in surfing, showcasing their strength and skill. Today, Hawaii remains a global surfing destination, with famous spots like Waimea Bay (near Pupukea) and the Banzai Pipeline. Living in Hawaii, you can embrace this sport’s deep cultural roots.
Mauna Kea, located on the Big Island, is the world’s largest dormant volcano. Standing over 13,800 feet above sea level, it is taller than Mount Everest when measured from its oceanic base. The summit often receives snowfall in winter, making it a unique spot in tropical Hawaii. The clear skies above Mauna Kea make it a prime location for astronomical observatories.
Due to strict laws and natural barriers, Hawaii remains snake-free. The state takes this seriously, as introducing snakes could harm the delicate ecosystem. The only snakes you might see are in zoos or brought illegally, with severe penalties for smuggling them.
Beyond the usual U.S. holidays, Hawaii celebrates several unique ones. King Kamehameha Day on June 11 honors the first king of the Hawaiian Islands. Prince Kuhio Day on March 26 commemorates the birth of Prince Jonah Kūhiō Kalanianaʻole, a Hawaiian royal. The Aloha Festivals, held annually in September, celebrate Hawaiian culture with parades, music, and hula.
Hawaii consistently ranks as the U.S. state with the highest life expectancy. The combination of a healthy diet, active lifestyle, and strong community ties contributes to this longevity. The state’s natural beauty and relaxed pace also reduce stress, promoting well-being. Residents often enjoy fresh seafood, tropical fruits, and outdoor activities year-round. Living in Hawaii seems to be a key to a long and healthy life.
Hawaii’s unique climate and topography create prime conditions for rainbows. The islands’ frequent rain showers and abundant sunshine result in vibrant rainbows, often visible across the sky. Double rainbows are also a regular occurrence, adding to the islands’ natural beauty. The state is also nicknamed the “Rainbow State” for this reason.
Hawaii lies over 2,000 miles from the nearest mainland, making it the most isolated population center on the planet. This remoteness creates a unique culture and lifestyle distinct from the rest of the U.S. Unfortunately, this isolation also affects the cost of living, as many goods must be imported. However, it also fosters a strong sense of community among residents.
Kīlauea, located on the Big Island, is the world’s most active volcano. It has been erupting almost continuously since 1983, creating new land and reshaping the island’s landscape. The eruptions often draw visitors, eager to witness the molten lava flows. Despite the dangers, many people live nearby, drawn by the fertile land and stunning scenery.
To preserve its natural beauty, Hawaii has banned billboards across the state. This law, enacted in 1927, ensures that the islands’ stunning landscapes remain unobstructed. Instead of advertisements, the scenery takes center stage as you travel through the islands. This absence of billboards contributes to the state’s peaceful, unspoiled atmosphere.
Medicare may not seem like a pressing issue for most Americans under the age of 65, but according to a new NerdWallet survey, 65% of Americans have interacted with the Medicare system in some way — whether that means being an enrollee, helping someone else figure out their coverage or needing to understand the system as part of job responsibilities.
The survey of over 2,000 U.S. adults — among whom 779 are enrolled in Medicare — commissioned by NerdWallet and conducted online in July 2024 by The Harris Poll, asked Medicare enrollees about their satisfaction with their health plan and whether they have concerns about Medicare benefits being reduced in their lifetime.
This survey is particularly timely in light of this year’s Social Security and Medicare Trustees reports that estimate the Medicare trust fund will be depleted by the year 2036 and the Social Security fund by 2035. Perhaps unsurprisingly, our survey found that some younger Americans aren’t confident Medicare benefits will still be available when they turn 65.
Medicare satisfaction is high, but some still question their choice: Most Americans enrolled in Medicare (86%) are satisfied with their coverage. Still, 35% of Medicare enrollees aren’t sure if they chose the right Medicare coverage for them.
Many are concerned about Medicare’s longevity: Nearly three-quarters of Americans enrolled in Medicare (74%) say they are concerned about Medicare benefits being reduced in their lifetime. And 35% of Americans under age 65 don’t believe Medicare benefits will still be available when they turn 65.
Some are relying on Social Security for their retirement plans: The survey finds that 30% of Americans believe Social Security alone will provide enough income for them to live comfortably throughout their retirement. Around the same proportion (31%) say they don’t/won’t have a retirement account to draw from when they leave the workforce.
“Having adequate health insurance coverage is essential, especially during retirement when your income is likely to change,” says Elizabeth Ayoola, personal finance writer at NerdWallet. “Medicare Advantage and Medicare Part D plans aren’t static and can change each year. It’s important to shop around during open enrollment and make sure your doctors and prescriptions will be covered.”
According to our survey, 88% of Americans ages 65 and older say they have Medicare coverage. Nearly half of this age group have Original Medicare (49%), while 32% have Medicare Advantage, 25% have Medicare Part D and 24% have Medigap coverage.
Medicare is a health insurance program for Americans age 65 and up, as well as some younger Americans who have certain disabilities or health conditions. Original Medicare, also known as Medicare Parts A and B, is managed by the federal government. Medicare Advantage, or Medicare Part C, is offered by private insurance companies but has the benefits of Original Medicare as well as Medicare Part D — prescription drug coverage — in some cases.
There’s also Medicare Supplement Insurance, or Medigap, which is supplemental coverage to Original Medicare. It covers the “gaps,” hence the name, in Medicare Parts A and B. It’s not an option for those with Medicare Advantage.
Overall, most Medicare enrollees (86%) say they’re satisfied with their current Medicare coverage, and nearly as many (82%) are confident they’re getting the most out of the Medicare benefits. Still, more than a third of Americans enrolled in Medicare (35%) are unsure if they chose the right Medicare coverage for them.
If you’re part of the 35% of those enrolled in Medicare who aren’t sure if they chose the right Medicare coverage, check out the other coverage options to see if they fit your health needs and preferences better. If you decide to make a change in your Medicare coverage, open enrollment goes from Oct. 15 to Dec. 7 each year.
Original Medicare might be a good option for those who need nationwide coverage — like if you travel frequently — as well as those who want to be able to choose their providers without many limitations. It also often allows you to go to specialists without referrals, which may be useful for those with more complex health issues who might seek out second opinions. However, if you opt for Original Medicare, you’ll want to purchase a Medigap plan to cover certain out-of-pocket expenses like deductibles, copays and coinsurance, and a Medicare Part D plan to cover prescription drugs.
Medicare Advantage could be the ideal plan for healthy individuals who don’t need frequent access to specialists or nationwide coverage. Medicare Advantage plans often have some vision, dental and hearing coverage, prescription drug coverage and extra benefits, like gym memberships. It’s a bundled alternative to Original Medicare often with low premiums, but you’re limited to a network of providers.
“When weighing your options, think about factors like your current health status, lifestyle, potential risk factors to your health and how much you can afford to spend on health care,” Ayoola says. “These factors can give you insight into which Medicare options are most suitable for you and potentially minimize out-of-pocket costs.”
Whether you currently have Medicare coverage, or hope to in the future, you may have questions about the longevity of the program. Nearly three-quarters of Medicare enrollees (74%) say they’re concerned about Medicare benefits being reduced in their lifetime. And more than a third of Americans under age 65 (35%) don’t believe Medicare benefits will still be available when they turn 65.
The concern isn’t unwarranted. According to the 2024 annual report from the Board of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds, it’s projected that funds in the Medicare Part A trust will be depleted in 2036, which would result in an inability to pay full benefits. Further, funds in the Social Security trust are estimated to run out the year prior, again resulting in an inability to pay out full benefits. Neither of these dates are set in stone; they’re updated annually based on projections of a variety of things including prices and healthcare needs.
Social Security provides retirement benefits for Americans as young as 62 — as well as some disabled Americans and survivors of beneficiaries — so they continue to receive a regular income after leaving the workforce. The average monthly Social Security retirement benefit is $1,907, according to the Social Security Administration. This equates to an annual income of less than $23,000.
According to our survey, 3 in 10 Americans (30%) think Social Security alone will provide enough income for them to live comfortably throughout their retirement, including 46% of Generation Z (ages 18-27) and 44% of millennials (ages 28-43). Furthermore, less than 7 in 10 Americans (69%) say they do or will have at least one retirement account to draw from in retirement. Not having at least one other retirement account is a risky position, especially because Social Security and Medicare benefits — particularly at their current level — aren’t a guarantee long-term.
The good news is that Medicare and Social Security are popular programs across the political spectrum, and are unlikely to be done away with entirely. However, in the event that these benefits are reduced in your lifetime, it’s a good idea to shore up your personal finances to put yourself in a better position for an uncertain future.
Start by putting something away for retirement, regardless of your age or even whether or not you plan to retire. You can use a retirement calculator to figure out how much you should aim to save, but keep in mind that falling short of your target retirement savings is better than not saving anything at all. Also, while it’s often referred to as “retirement savings,” this money can be invested in order to supercharge your retirement funds.
In addition to saving for retirement, it’s a good idea to get the rest of your financial house in order. Take steps to pay off your consumer debt, and save up an emergency fund. It’s OK if this takes years, the goal is to reduce your financial stress and commitments as you approach retirement age, or well in advance of it.
“Diversifying your options when it comes to paying for health care expenses in retirement can help hedge against any unforeseen turn of events like changes in Medicare or Social Security,” Ayoola adds. “Funding health savings accounts, saving extra money for health care costs in retirement accounts or investing in long-term care insurance are a few options to consider.”
METHODOLOGY
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from July 11-15, 2024, among 2,096 U.S. adults ages 18 and older, among whom 779 are enrolled in Medicare. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Disclaimer
NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.
Source: nerdwallet.com
The typical cost of residential solar panels in Florida, before the federal solar tax credit, was $33,673 in the second half of 2023. This is lower than the national average of $34,122. The average system size is 14.3 kWs, compared to the national average of 11.6 kWs.
Florida’s primarily humid subtropical climate requires a lot of energy for air conditioning. Installing larger systems makes sense in a state that has one-to-one net metering, which allows customers to offset more of their energy bills with solar. The state’s net metering policies and abundant year-round sunshine have fueled strong adoption of residential solar. Florida has few state tax rebates and solar incentives compared to other states, but customers there may still qualify for the federal tax credit
.
|
Typical cost of home solar system before federal solar tax credit |
||
|
Typical cost of home solar system after federal solar tax credit |
||
|
Median cost per watt |
||
|
Average system size |
||
|
Source: EnergySage, a solar and home energy product comparison marketplace founded in 2012. Data is from the second half of 2023. |
||
Solar has been having a moment in Florida, part of a general upward trend in interest and installations.
“Florida is ranked third nationally in solar growth, and it is continuing to grow in popularity,” said Wendy Parker, executive director of the Florida Solar Energy Industries Association (FLASEIA), in an email
. “Most of the state still has net metering, which makes it very favorable to homeowners.”
System sizes are high in Florida compared to other states, at 14.3 kW on average in the second half of 2023. A contributing factor is the falling cost of solar installations, which went from $2.45 per watt in Florida in early 2023 to $2.35 per watt in the second half of 2023.
System size is also often tied to average monthly energy consumption, which is comparatively high at 883kWh per month in Florida.
“In the past year, prices have been trending down, and levelizing some. Certain equipment has come down in price, and extra competition in Florida has driven costs down from some companies. We’ll have to see what the tariffs do, potentially driving prices back up,” says Dan Massaad, CEO of Guardian Home, an energy-efficient home services and solar installation business in Florida.
Florida established statewide renewable energy goals in 2022 but repealed them in May 2024
,. Legislation and incentives may vary with the future priorities of new political administrations.
Net metering. Florida adopted net metering in 2008, as well as guidelines to allow residential solar to interconnect with utility grids. Net metering allows homeowners to sell excess electricity to the local utility.
Property tax breaks. Florida has a property tax incentive for renewable technologies. It ignores the increase in property value due to the installation of solar panels. This savings can add up over time
.
Tax credits. Florida doesn’t offer state and local rebates or incentives on rooftop solar panels. However, customers may qualify for the federal tax credit.
Low-cost loans. Some cities offer solar loan programs. For instance, the City of Tallahassee Utilities offered a 5% loan with a 10-year term for solar panel installations, with a maximum loan amount of $20,000
.
Related equipment rebates. Providers like the Fort Pierce Utilities Authority also offer flat rebates on solar water heaters. If you intend to include a solar water heater in addition to a solar panel system, check for this type of incentive in your area
.
“Florida is a net metering friendly state,” Massaad says. “A lot of the big utility companies give you a true 1-to-1 credit on whatever you overproduce, so it makes a lot of sense for many clients to go solar.”
Floridians often use the grid as their backup, but interest in battery storage is on the rise.
“In Florida, the battery storage is often for clients who are more concerned with power outages, like with hurricanes, and those clients have some control to either operate a room or a few circuits, or a whole home backup,” Massaad says.
The average cost of battery backup was $16,887 in Florida in June 2024 before the federal tax credit. However, a small battery for key circuits in one part of the house may cost less and can help cool one part of a home during extreme heat or keep important medical equipment running during a power outage.
How should you pick a solar panel installer in Florida?
In addition to installation price, find out how long a solar panel company has been in business and read reviews. “The absolute cheapest company may not be building a sustainable, service business for the client, so do your research and make sure you’re asking questions about longevity,” Massaad says.
What kind of roof makes installing solar panels more complex?
Most roof types can work with standard solar panel mounting, but clay tile roofs are occasionally used in Florida. The solar mounting supplies can break the fragile tiles, so prepare to pay for additional labor to keep the roof tile safe.
Source: nerdwallet.com
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.
“What’s the first thing that comes to mind when thinking of how you can improve your financial situation?”
Many people would say “spend less money.”
One way to do this is by buying something used. In fact, a study found that Americans buy 10% more new items than they did in 2008 because we have so many promotional offers available. Not only should you be trying to save some money on your purchases, but also cut all kinds of other expenses from your lifestyle and keep them at a minimum.
Usually, people spend more money than they need.
This can lead them to have less money saved or be able to afford the things they want.
However, with a few simple changes in your spending habits, you will be able to make more of what you earn and feel more satisfied.
In today’s world, it is easy to be overwhelmed by the amount of information available on how you should spend your money.
With more and more people struggling with their finances, I would like to share a few hacks that have helped me spend money wisely and simplify my life.
Also, I am going to include some simple money saving tips on how to spend less money! Do not get duped into buying things you did not plan on purchasing or spending more money than you needed to.
As you can see shortly, there are many ways to spend money wisely. Whether it be through saving, investing, or taking care of your health; with this article as a guide, you won’t have to worry about your money any longer.
This is meant to inspire people on how they can better manage their finances and live more efficiently, while still being able to get the things that they want.
Spending money wisely is a way of life, but it can be tough to know where exactly you should start.
Luckily for you, we will break down ten hacks for you to follow so that your money does not go to waste.
You are probably wondering, why is saving money about how to spend money.
The first thing you should do to spend money wisely is to pay yourself first.
This could be saving for the future with an emergency fund, which can be used in case of emergencies or downturns in your financial situation. This can be done by contributing to a high-interest savings account and saving up to $1,000 or more for emergencies.
Or choose one of our money saving challenges to match your financial goals.
You need to take care of your health, as that will improve the quality and longevity of your life.
Making wise choices on choosing quality food and healthcare may cost more money upfront, but in the long run, it will save you money on huge medical expenses.
You spend your money wisely by taking care of your health. Money spent on a gym membership, healthy food, and other medical expenses can save you even more money in the long run.
Many people love the idea of time freedom for this reason.
One way to spend money wisely is by investing in your future. This might be done through a 401(k) or Roth IRA, which lets you invest pre-tax dollars and then withdraw them tax-free once you retire.
This can be a great way to save on taxes, but the money needs to stay invested for at least five years before you’re able to withdraw it without a penalty.
We live in a society that prizes material purchases and spending. Remember to prioritize experiences by getting outside. Not just for your health, but also on the mental and emotional levels, as well as the personal and even family levels.
Also, a plethora of benefits to spending money on experiences, not all materialism related.
Try to spend less on electronics and materialistic items that fill your home and more on experiences like travel or going out with friends.
This is a great way to spend time with your family and friends instead of buying things for them.
Related Reading: Overcome Gift Regret: Experience Gift Ideas That Do Not Go To Waste
Many of us, regardless of financial status, know that if we want to live on the right path without having our finances stress us out, then there are good habits to be followed.
Think about how much money you want to make in the next five years or ten years and make up how to get there.
Now, you need to line up your spending to make that happen.
Not sure how to set goals? Start here with making smart financial goals.
The next hack is to make a budget and stick to it, which will help you spend your money wisely by only spending what you have available in each category.
A budgeting strategy helps you develop better financial skills. These strategies are practiced in order to help prevent overspending and create a set spending plan for you.
Create a budget that includes all your expenses and then each time you get paid, put a little bit of your paycheck into each category.
Oftentimes, we find ourselves buying items that are not necessary and just a waste of money. This hack is to evaluate what you’re spending your money on and think about whether or not you want to continue this habit.
For every purchase ask yourself if the item is worth it and what will happen if you don’t buy it.
By completing a no spend challenge, you will be amazed at the things you find out are not worth spending the money on.
Next, you should try to spend less time with people who are going to make you feel bad about yourself.
This is a hard one but just think of the good things that will happen when you stop hanging out with people who make you feel bad.
If you are constantly around people you need to learn how to not spend money, then you will be battling upstream battle. Look for those who have the same mindset and are determined to spend money wisely.
The best way to buy quality items is to spend more money on them. Buying cheaper items has its risks, but over time it will lead to dissatisfaction with the product and waste of money.
If possible try to spend money on things that will last a long time and not just stuff like food or rent.
This concept of quality of quantity is not difficult to understand. For example, instead of owning 10 pairs of jeans that you think you need, you spend money on the two pairs of quality jeans that you love.
Because items are so cheap to pick up, it is easy to quickly fill our homes with quantity and excess stuff (plus we are spending more in the process). Instead, spend a little more and buy less of what you truly need or want.
One way to save money is by cooking more at home and not going out to eat. You can also cut down on the amount of food you purchase, which will help you save a ton of money in the long run.
Instead of buying food that will go bad quickly or ruin your health, buy more expensive food. This way you are spending less money on the product but it is going to last longer and be better for you.
By spending money wisely, you must learn how to spend less money on food.
Specifically, I am talking about FSA or HSA, or dependent care FSA. This is when you set aside money each year for these purposes. Money goes into these accounts tax-free, so you are lowering your taxable income.
On how to spend FSA money, you must have the proper documentation on your plan. The same is true for how to spend HSA money.
The limits change each year on how much you can contribute to each of these plans, but the maximum you can spend tax-free is over $20,000 for a family.
This is a great trick to spend money wisely and lower the amount you owe in taxes. Just make sure to spend the amounts in the FSA each year!
Personally, I have a hard time spending money. Period. This is something I am working on as we progress through our financial journey. Now, I look to spend money on ways that will improve our life or bring smiles to our faces.
Spend on things that add happiness to your life.
For example, if you’re happy with the new shoes you’ve just bought, then it’s worth spending money on them! If you love to travel, spend on travel. If you like reading fiction novels, spend on fiction novels.
Spend your money on things you enjoy and make the most of the disposable income you have.
One of the best ways to make money is to give back. However, it takes some money to make money, which is typically frustrating to those who constantly want to make more money per year.
By selling a product or service, you are supplying them with your knowledge, advice, and understanding. Another way is through investments. Investing, while not always profitable, has companies that adhere to companies of all kinds.
One of the best ways to spend money wisely is to invest in ways to make money.
There are plenty of ways to make money and start your own business.
Here is a great book to open you up to the idea of starting your own business and the freedom with money it can bring.
Here are great ways to make money on the side:
It is possible to make more money on your business than you make more money in your current job or career.
Many of us spend too much on material items that are not actively used. This creates a situation where we have to make more purchases in order to get the same level of happiness.
The first step towards becoming frugal is deciding what you want out of your possessions, and then only buying those things which will provide you with this goal.
Here are 32 easy ways to do that!
There is a lot of conflicting information on how much money should be allocated to needs vs. wants, but this takes into account what percentage of take-home pay should be spent on necessities.
Here is the Cents Plan Formula we Use at Money Bliss:
So, the average person should spend 50% of their take-home pay towards needs. That means you must spend your money wisely.
Keep a list of what you spend and how much it cost.
You should have some idea of how much money you are able to spend on what. This will help you decide whether it is worth buying a thing or not before purchasing it.
Use the list to see where you can make adjustments, for example spending more time with your family or finding fun things to do with no money.
Spending money wisely can seem complicated at times.
The key to using money wisely is understanding how you spend your cash. Spending tends to happen automatically, which can lead people down the path of overspending and debt if not monitored closely.
The affordability of happiness and satisfaction depends intensely on the money we have.
The activities we could do, and expenses we could cut out, can be often atrocious and insufficient for our expectations.
Extreme dissatisfaction and the whole time earning less than we would desire, we may feel that we need to know how to spend money wisely.
The vital hacks elaborated in this post will help to understand caring for a budget, and changing our habits to spend more wisely.
When spending money wisely, people should be aware of their habits so they can change them in order to save more and spend less on things that do not bring happiness or benefit the person’s life.
If you want to save money, spend it on something that will make your life better or more enjoyable.
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Source: moneybliss.org
Inside: In this guide, I reviewed all of the budget apps and compared features and costs to form the best budgeting apps list. Find the best budgeting apps to fit your needs.
The best way to become smart with your money is to actively manage your money.
Make a plan for your money. Some may call it a budget.
At Money Bliss, we like to call it a Cents Plan. This enables you to find financial freedom. Find that place Where Cents Parallel Vision. Today, there are many budgeting apps on the market.
To kick off the new year, I was determined to find the best budgeting app on the market. Guess what?
My list grew each week!! And still growing! There are so many choices.
There are money management apps. Personal finance apps. Budgeting apps. So many apps to choose from! Seriously.
Some are free budgeting apps. Others have a monthly fee. Some have one-time costs.
The key to any budgeting app (free or paid) is to learn to manage your money.
At the very bottom of the post, we will reveal the best budgeting apps available.
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.
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Start Your Free Trial.
A budgeting app is a tool that helps you manage your money and keep track of how much you spend.
There are many different types of apps, and some may be free while others cost money.
However, they all make managing your finances easy by tracking where your money goes each month as well as providing tools for saving cash flow or spending more efficiently on things like groceries or travel expenses.
The end purpose of a budgeting app is to make managing your money easy.
There are many apps out there that can help you with this, including some from big brand names like Mint which just announced it is shutting down, Acorns, and Quicken. This guide will provide a list of the best budgeting apps for 2024 so you can save time and money!
The preferred budget apps are YNAB, Empower, and Quicken.
In order to find the best budgeting apps, you need to know what features and functions you are looking for.
The best budgeting apps are often the simplest and focus on ways to make saving a breeze.
They can help ease financial uncertainty by providing tools that allow users to save more money over time.
What’s more, how can you tell what to look for in a good budgeting app?
The best budgeting apps are easy to use and do not require manual entry. Different ways of creating a budget include handwriting it out, using a spreadsheet, or logging into an app or software program.
You want to find something that is easy for you to use. Even better, if you find the app fun to use!
There are many types of budgeting apps; thus, each person will have budget apps they prefer over others. At the end of the day, you need something that will work for you over the long term.
Some have basic features that simply allow users to view their own spending, while others provide a number of tools for managing finances and saving money. Users should choose an app based on what they want as well as the capabilities it offers.
Many budget apps let you define your categories to track.
When you have an automatic budgeting app, it tracks how money moves in and out of your bank account automatically with ease. In addition to this, the updating process takes place automatically as well which saves more time for individuals who need it most!
Saving time with the least favorite tasks like budgeting is a win-win!
You want your budgeting app that makes managing your money a breeze.
You need a budget app that helps you work towards your smart financial goals. This is important.
You want your budgeting app to help you with achieving your financial goals.
Synchronization is the process of returning data to a master database from one or more secondary databases. You want the budget app to synchronize accounts automatically.
Most offer automatic synchronization but may lack a feature that allows for a reconciliation of accounts such as bank accounts.
Many budgeting apps can synchronize from desktop to mobile. In addition, you can have multiple users on the same platform.
Budgeting apps range in price from free to about $150 per year.
The app that has the most features and options is Quicken, especially given its price point.
Spending $5 a month to manage your finances is cheaper than overdraft fees and the lack of saving money.
Many financial experts and personal finance gurus agree that a budget is necessary to take control of your money.
Look for budgeting apps that have at least 1,000 reviews in both the App Store (for iOS) and on Google Play (for Android), as well as a rating of 4 stars (out of 5) or higher on both platforms.
That will tell you the longevity of the app and user appeal.
Specifically, are budgeting apps secure? Are there any security features in place to protect your data? This is a huge feature you need to verify your personal information will be intact.
On my budgeting apps, financial information is safe because they need to go through vigorous testing and pass banking regulations. There are certain vulnerabilities inherent to operating online in the cloud.
Most budgeting apps go beyond basic budgeting. Some offer advice on debt and investments, while others identify unnecessary expenses.
Most apps can track your spending and organize your expenses into categories.
The savings apps will automate savings, suggestions to save money, bill alerts, access to credit scores, and investing features.
All of the apps have a different feature set, so it’s important to find what you’re looking for.
Before we dig into the list of good budgeting apps, we must discuss key points first.
In order to be successful, with any type of budget app, you must understand three key areas.
You can’t hide under the sheets or with your head in the sand and expect changes.
To be successful with money, you must be active with your personal finance situation.
Take time to understand your vision. Figure out where you stand in building a foundation to the Money Bliss Steps to Financial Freedom. Understand where the pits of money are spent every month.
Not sure, where to start? Stick around here at Money Bliss; we have many resources to help you!
Must Read Help:
While personal finance or money management apps keep you on track, they are incapable of changing habits.
You have to make changes.
Just because the budget app tracks your usage on the credit card doesn’t mean that you should have spent that money. So, be willing to make changes in your spending habits and those emotional purchases to achieve financial freedom.
You must learn to manage your money.
Related Readings:
The first thought is “Wait, I wanted to get away from paper and pen.” Yes, that is the goal for most individuals.
However, it is key to know your net worth over time.
Also, you never know when your favorite budget app will go away. (Ugh!) Personally, I don’t like to be pessimistic, but technology is rapidly changing, and being able to adapt is key.
Keep tracking your personal finance numbers toward financial freedom in a separate place.
Okay without further ado, the full list of budgeting apps on the market.
YNAB
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Start 34 Day Free Trial
The budget apps we selected for this section offer a free trial for users to test out before signing up.
Budget apps are typically inexpensive and start with a free trial.
1. YNAB (You Need a Budget) – A proven method that has helped hundreds of thousands of people break the paycheck to paycheck cycle, get out of debt, and live the life they want to live. YNAB is best for serious budgeters.
2. Simplifi – Manage your money less in 5 minutes each week. Reach your money goals with confidence! Introducing Simplifi by Quicken, the personal finance app that gives you something to look forward to.
3. Tiller Money – Your financial life is in a spreadsheet, automatically updated each day. Track all your accounts in one place, always know where your money goes, and confidently plan your financial future.
4. Rocket Money – Rocket Money is your automated financial assistant and budget tracker designed to put you back in control of your money. Truebill lets you easily track bills, cancel unwanted subscriptions, and proactively request refunds on your behalf, putting real money back in your pocket!
5. Qube Money – The cash envelope system made easy. They invented digital cash envelopes. Real-time financial awareness without the hassle of tracking expenses, updating spreadsheets, and carrying cash.
6. HoneyMoney– HoneyMoney increases your awareness about your money habits.
Being fully aware of your money naturally changes how you spend it. Great way to use cash flow budgeting. Plus uses “envelopes” to budget.
7. Qapital – Free, easy way to save money. Get $5 for your first Goal if you sign up here.
8. Money Patrol – MoneyPatrol actively monitors and analyzes financial transactions, and then alerts insights about the trends, patterns, and anomalies observed.
9. Wallet– Wallet is designed to help you get your finances under control from day one, giving you ongoing insight into your financial situation, and helping you stay in control for the long term.
10. Every Dollar– EveryDollar follows the zero-based budget approach recommended by Dave Ramsey, a top personal money-management expert. Create daily and monthly budgets and track your expenses to manage and save money.
11. Expensify – Expensify is the perfect tool for anyone who needs to keep track of receipts and automate expense management.
12. Cost Track – Expense Tracker – Cost Track allows you to: use your money wisely, keep track of your personal and family budget, and quickly enter your income and expenses.
13. Easy Spending – It is a simple and convenient finance tracker that provides the most powerful and convenient daily money management for iPhone and iPad, that neatly tracks all your cash flow between different accounts that you can budget.
The budget apps we selected for this ranking are completely free! Free budget apps are good options for users who don’t want to pay monthly or a yearly fee. Just to note, the list of free apps is dwindling with each update.
Finding the best budgeting app the best ones do simple things well.
Free apps are not always better than paid ones.
Typically, the free versions of budget apps provide basic features. Plus there are many free budget apps available on the market.
1. Empower – Empower is the best app for investors. This is one of my favorite ways to analyze investment accounts. See all of your accounts in one place, which helps to see spending. Free budgeting app to use. Read my Empower Review.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
2. PocketSmith – Manage your budget and forecast your finances. There are paid levels of access but you can still get basic options for the casual budgeter.
3. Zeta – AskZeta is a financial planning platform designed to help couples manage their finances collaboratively. It provides tools and guidance for setting joint financial goals, budgeting, and navigating major life events to build a secure financial future together.
4. Honeydue – A financial app designed for couples, facilitating shared money management. It allows partners to track and manage their finances collaboratively, providing insights into spending, budgeting and shared financial goals.
5. GoodBudget – Envelope budgeting for the modern world.
6. Fudget – The budget planner you can actually use.
7. Wally – Personal Finance – It helps you compare your income to your expenses, understand where your money goes and set and achieve goals.
9. CountAbout – CountAbout is an online personal finance solution that surpasses the security and ease of use of the other popular commercial solutions on the market while offering complete privacy, zero advertising, and no selling of your personal data.
10. Daily Budget Original – Daily Budget calculation, planning & saving for big spending, basic categories for expenses, backup.
11. Spending Tracker – The simple fact is, by tracking your spending you will be able to stick to a budget and therefore SAVE MONEY.
12. Money Monitor – You can track and organize all your transactions, accounts, budgets, bills, cash flow, and payees in Money Monitor by easy operation but with powerful functions.
13. Money Box – Set your money goals and track your personal savings with this app. Take control of your saving goals and spend cash wisely.
14. Dollarbird– Track and forecast your money as easily as adding events to a calendar! Dollarbird helps you make sense of your financial situation, plan ahead and manage your money together with those who matter.
15. NerdWallet – Whether you want to maximize credit card rewards, earn extra cashback, track your credit score or make budgeting easier, it’s all here.
16. Buddy – Designed for simplicity and efficiency, helping users easily manage their finances. With intuitive features, it enables users to track expenses, set budget goals, and gain insights into their spending habits for better financial management.
17. Banktivity – Banktivity puts you in the driver’s seat of your finances so you can do both.
18. PocketGuard – With all of your financial accounts in one place, PocketGuard helps you stay on top of your finance and make better financial decisions.
19. Budget Saved – Personal Finance – Budget Saved helps you save money by grouping expenses based on need or want. You input an expense, save it as a need or want, and then you can look back to see which purchases were really necessary. With this information, you can see exactly how much you can save.
20. Albert – Money Management – Combining human guidance with cutting-edge technology, Albert is an intuitive app that automates your financial life — so you can be free to enjoy it. Build savings, meet bills, end the overspending cycle and develop your financial IQ, right from the palm of your hand.
21. Expense IQ – Expense IQ (formerly EasyMoney) is your ultimate money manager app that combines an expense tracker, a budget planner, a checkbook register, integrated bills reminder, and more rolled into one powerful personal finance app!
22. Prism– Never miss a bill or pay late fees again! We automatically track your bills & send due date reminders, for free. See your income, account balances, & monthly expenses at a glance.
23. Coin Keeper– Download CoinKeeper — the handiest way to plan and manage your finances, created especially for smartphones and tablets.
24. Mobills– Mobills is a budget planning app that allows you to create a custom monthly budget that will help you take control of your money. You are able to manage your money, track your spending, and achieve your financial goals all in one place.
25. iSpending – iSpending helps you to track your income and spending. You can add transactions under different categories, such as income, food, and entertainment.
26. Receipt Box – The Receipt Box is a quick app that is conducive to developing a good habit of tracking spending. It indeed performs well on this one.
27. BUDGT – BUDGT will help you keep track of your Expenses in a very simple way and tell you how much money you can spend each day, taking in account what you have already spent during the current month.
A budgeting app is a type of software that helps you track your money to manage your finances. There are several different ways you can use them, including getting paid upfront or by monthly fee.
Some apps offer discounts for people who pay monthly, but this is not always the case. If an app doesn’t have the capabilities you need to better manage your budget, it’s not worth it.
App users want budget capabilities and prefer to handle bill paying on their own schedules.
1. Quicken– Quicken personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more. Read my Quicken Review.
2. Moneyspire – The budget feature is very user friendly and can rollover amounts. All of the reports you need at your fingertips. Also, you can move your data from many of the top budgeting apps and Quicken.
3. PocketSmith – Manage your budget and forecast your finances.
4. MoneyDance – Moneydance is easy to use personal finance software that is loaded with all the features you need: online banking and bill payment, account management, budgeting and investment tracking.
5. CheckBook Pro – An easy & quick way to manage your daily finances, Checkbook Pro keeps track of your credit card charges, cash expenditures…etc.
6. HomeBudget – HomeBudget is an integrated expense tracker designed to help you track your expenses, income, bills due and account balances. It offers support for budgeting and allows analysis of your expenses and income, including charts and graphs.
7. Pennies – Keep track of your spending and save money with Pennies, the award-winning budgeting app for iPhone, iPad and Watch.
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Start Your Free Trial.
Due to security concerns, many budgeters prefer to keep their financial information off the cloud.
Here are the best budgeting software that are off the cloud. And if you want, they can be synced.
1. Quicken– Personally, I have used Quicken – pretty much since it was developed. Way before budgeting apps were even a thing and the cloud didn’t exist. Quicken is great for tracking how your money is being spent. Their internal budget feature is not user-friendly and has quirks. However, the cash flow reports are awesome to compare spending. The #1 reason I still recommend Quicken is because of its long history.
Read my Quicken Review.
2. Moneyspire – For those frustrated with Quicken, Moneyspire is your choice. The budget feature is very user-friendly and can rollover amounts. All of the reports you need are at your fingertips. Also, you can move your data from many of the top budgeting apps and Quicken. Start a free trial here.
3. Tiller Money – Tiller is the only tool that automatically updates Google Sheets and Microsoft Excel with your spending, transactions, and balances each day.
4. Banktivity – Get full control of your personal finance situation with Banktivity. Has all the bells and whistles you would come to expect for personal finance budgeting software. There is the ability to connect to the cloud if you prefer. Only for Mac Users.
5. MoneyDance – Moneydance is easy-to-use personal finance software that is loaded with all the features you need: online banking and bill payment, account management, budgeting, and investment tracking.
6. QuickBooks – QuickBooks is most like Quicken. It is the preferred software for most bookkeepers. The features are very helpful, but the price is significantly higher.
Expense-tracking budgeting apps are becoming more popular as they allow users to connect to financial accounts. They track transactions and group them into categories, making the best ones based on expense tracking systems.
Some of the top expense tracking budgeting apps include:
Learn where to load your Cash App card.
Investment/retirement planning budgeting apps are becoming more popular with consumers as the retirement age is being pushed back.
These types of apps allow users to keep track of their investments and review performance, ensuring that they’re on track to retire at the desired time.
There are numbeous different investment portfolio management tools, but most are designed for average investors looking to make changes or work towards long-term goals. Many double as budgeting apps also enable tracking expenses alongside investments in order to ensure that you’re on track to reach your goal.
Looking for easy ways to save extra money?? These budgeting apps will do just that.
1. Acorns: Invest Spare Change: This app rounds up any purchase made with a credit card to the nearest dollar and invests it in an exchange traded fund. They have four different investment portfolios from conservative, balanced, growth, and aggressive.
2. Tiller: This app automatically transfers money from any account you connect to it (like your checking or savings) into a fund of your choice every time you make a transaction.
3. Trim – Trim negotiates your cable, internet, phone and medical bills, finds and cancels unwanted subscriptions, can help you lower APRs and bank fees and more.
4. BillShark – Billshark is the easiest way to lower your bills, cancel unwanted subscriptions, and lock in the best rates for insurance.
Budgeting apps are becoming more popular as consumers try to make better financial planning decisions.
Budgeting apps help people with the ability to track spending, create budgets, and save money for retirement or other goals.
Budgeting apps must be paid for because they can be used across all devices and have a variety of features that can really help users save time and money.
As you can tell in this post, there are plenty of options to find your favorite budget apps.
Each of these apps can improve money management.
However, you must be able to make the changes necessary to stay within your means. That is up to you. Don’t try it and give up after a month. Stick with it. Show perseverance.
In the end, you will be happy you are stuck with using a good budgeting app.
These are budgeting app that have been on our list previously. But, when we recently updated the post, realized they are no longer offering the same services.
Mint: Personal Finance & Money – Mint is a free money management and financial tracker app that helps you get ahead and stay ahead. – Mint app shut down in 2024.
Firstly (formerly Honeyfi: Couples Finances) – The first app to help couples team up on everyday and long-term finances.
Opurtun (formerly Digit) – Digit analyzes your spending and automatically saves the perfect amount every day, so you don’t have to think about it.
mvelopes (merged with EveryDollar) – Everyone knows that cash will keep you on budget. Here is a digital option for your cash envelopes. Your first month free is to check out the budgeting system.
Olivia– Whether you identify as someone who is living paycheck to paycheck, or you’d just like to get smarter with your money in general, you’ve come to the right place! I am here to help YOU become the MASTER of your money.
Your Money Wallet – YourMoneyWallet lets you see all your accounts in one place, understand your spending, monitor your everyday spending, and see all your money transactions in a beautiful well crafted design.free
Joy – Money App– Joy is the brand new money app that will change the way you spend and save money to help you find more happiness in your life.
Advent – Budgeting Made Simple – Advent makes budgeting and tracking expenses super easy! With a very minimalistic design, you can easily maneuver around quickly.
Rolling Budget– Rolling Budget is a personal finance tracker that keeps track of your day-to-day expenses, travel, and fuel costs. Track where your money goes, plan your expenses, and create a budget that works for you!
There are many apps available to help people manage their budgets.
The best app for you will depend on the type of budget you want to create and how often you want to make changes. All of these apps are mobile-friendly and work across multiple devices. They also offer additional features like budgeting tasks, reminders, and spending plans.
You can find all of these for iPhone or Android.
You can save time and money by using a good budgeting app.
This is your personal finance journey.
The ultimate goal with any budget app is to learn to manage your money. Not have your money manage you.
Now, make sure you are doing these habits to be successful with budgeting.
Which are your favorite budgeting apps?
Keep on Budgeting:
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Source: moneybliss.org
For many of us, leather has become synonymous with luxury, elegance, and quality.
Famed for its durability as well as its beauty, the material is a staple of high-end interior design, especially when it comes to furnishings. From sofas and ottomans to accent pillows and wall coverings, leather can be an excellent choice for interior furnishing.
However, as with any material or design choice, there can be downsides. Leather may or may not be the best choice for furnishing your luxury space, and here we’ll explore some of its advantages and disadvantages — so you can decide whether it’s a good fit for your space.
Cost: Real leather can be significantly more expensive than fabric. This cost can vary depending on the quality and craftsmanship of the leather, and the brand’s reputation.
Susceptibility to damage: Unfortunately, sharp objects can scratch, tear, or puncture leather surfaces. Thankfully, you can repair leather with household products like shoe glue. To repair a tear with shoe glue, clean the surface of any dust or dirt, apply the adhesive, and tape it into place. Once the glue is dry, the tape can be removed.
Sensitivity to environmental conditions: In warm climates, leather can become hot and sticky, and in cold ones, it can become uncomfortably rigid. When exposed to direct sunlight or moisture, leather can fade or discolor.
Limited style and color options: Although leather furnishings come in various colors and finishes, options may be more limited than with fabric upholstery.
Elegance and sophistication: Leather’s natural texture and color variations can add a touch of elegance to interior spaces. It’s a highly versatile material, suiting classic, contemporary, and even more leftfield design styles.
Comfort: The soft, smooth feeling of leather is one of its most prized features. It also molds to the body over time, so it can get even more comfortable over the years.
Durability: High-quality leather is extremely durable when compared to fabric upholstery. With the right care and maintenance, leather furnishings can last many years or even decades.
Easy maintenance: Compared to other materials used in upholstery, leather is easy to clean and maintain. You can often simply wipe away spills and stains with a damp cloth, and the leather’s smooth surface makes it easy to dust. To prevent damage from light or moisture, you can keep leather furnishings out of direct sunlight and use widely available protective coatings and leather conditioners.
While leather furniture can elevate the look and feel of a space, there are a few very specific potential challenges you need to consider if you have pets. Here are some key points to keep in mind:
Susceptibility to scratches and tears: Pets, particularly cats and dogs, can inadvertently damage leather surfaces with their claws. Scratches can be quite visible on leather, and while some minor damage can add character, deep gouges or tears might require professional repair.
Risk of stains and odors: Pet accidents can stain leather and leave lingering odors. While leather is easier to clean than many fabrics, urine and other liquids can penetrate the surface if not promptly addressed, potentially causing lasting damage.
Comfort for pets: Some pets might find leather to be less comfortable compared to softer fabrics. In cold climates, leather can feel cool to the touch, while in warm climates, it can become sticky. Providing pet blankets or designated pet areas can help mitigate this.
Maintenance: Regular maintenance is crucial to keep leather furniture in good condition when you have pets. This includes routine cleaning to remove pet hair and dander, as well as applying leather conditioners to maintain the material’s suppleness and prevent drying or cracking.
Protective measures: To protect leather furniture, consider using pet-friendly covers or throws. These can be easily removed and washed, providing an extra layer of protection against scratches, spills, and general wear and tear.
There are many categories of furniture where leather upholstery is an option. One of the most popular types of leather furnishing is the leather sofa, due to leather’s comfort and malleability. Leather is also popular for many other types of chairs, such as armchairs, dining chairs, desk chairs, and even bar stools.
Leather ottomans and storage benches are also popular and stylish — not only do they provide a practical purpose in storing possessions, but they can also double as comfortable seats or footrests. Leather poufs can also be versatile accent pieces in lounges, bedrooms, and similar spaces.
Other types of leather furnishings include headboards, accent pillows, and wall coverings. Thinking outside the box, accessories like picture frames, trays, and decorative boxes can add visual interest to tabletops, shelves, and mantels.
Before deciding on a material for the upholstery in your luxury living space, it can be worth considering the different options available. There are many luxurious, elegant materials out there.
If softness and aesthetics are your priorities, a material like velvet can add texture and sophistication and comes in many color variations. Silk, satin, chenille, jacquard, and brocade have similar advantages.
If you’re looking for something more durable for furnishings like sofas and chairs, why not opt for a durable material like leather and pair it with velvet or silk drapery or accent pieces, for example?
For warmth, softness, and durability, cashmere or mohair can be an excellent choice for throws, blankets, and pillows. Alternatively, faux fur can closely replicate the appearance and feel of real fur in a cruelty-free fashion. Last but not least, linen is known for its breathability and understated elegance.
Every material has its advantages and disadvantages. When choosing the best material for your upholstery, drapers, and other furnishings, consider what your priorities are.
Some may value longevity and durability, others comfort, others intricate patterns and a wide range of colors. If in doubt, why not visit a store and see (and touch) different materials in person?
More stories
What’s the difference between faux leather and real leather sofas?
Wall paneling kits: The easiest way to add style to your home
How solid wood floors help cultivate a luxury vibe in your home
Source: fancypantshomes.com
Thanks to reader Lynn, who wrote in this week with some specifics about her household’s situation and an overarching question: When should we start taking Social Security?
I’ll provide background information below, and then we’ll discuss a few common “if –> then” heuristics to help you with your Social Security planning.
Social Security is a government program that provides financial support to individuals who are retired, disabled, or survivors of deceased workers, funded primarily through payroll taxes. It aims to ensure economic stability and security for eligible participants by offering benefits to mitigate income loss due to retirement, disability, or death.
Today, we’re talking about retirees.
American retirees each have an “eligible benefit” from Social Security, which is based on the following factors.
Here’s a quick example:
Bob worked the same job from age 22 to age 62. His salary in 1984 was $25,000, and he’s received a 4% raise every year since; he’s earning $120,000 now in 2024 (his final working year).
We’d use the Social Security indexing factors to adjust each of his prior years’ earnings by rates of inflation. We’d then pick the highest 35 years, find the average, and divide by 12 to get Bob’s average indexed monthly earnings, or AIME.
Bob’s AIME is $8717. Here’s the Google sheet with the math. Feel free to make a copy.
Note 1: because only a certain percentage of income is subject to Social Security taxes, only that portion of earnings is considered for AIME. In 2024, the FICA income limit is $168,800. Even if someone earned millions every year for their entire career, their AIME would only include that smaller portion of income that was taxed by FICA. That logic is why the maximum AIME in 2024 is ~$13,100.
Note 2: if you don’t work a full 35 years, you’ll have some “zeroes” in your AIME math. This isn’t ideal. But depending on the rest of your work history, these zeroes could have a major effect or a minor effect. The PIA section below will shed more light.
Next comes PIA, or the Primary Insurance Amounts, aka what you actually receive from Social Security if you retire at “full retirement age,” or FRA. PIA is the real deal. An individual’s Social Security benefits (or PIA) are based on specific percentages of that individual’s AIME. For 2024, the PIA math is:
If we run that math for Bob, whose AIME was $8717…
For a grand total PIA of $3191.73 per month.
You see – not all your AIME dollars count the same! The first dollars matter a lot – they’re counted at 90%! The latter dollars are only counted at 15%. And since high-earners’ latter dollars aren’t factored into AIME at all, we can think of those dollars as being counted at 0%. This concept is dubbed the “Social Security bends” or “bend points” because of how it looks when graphed out.
If you have a “zero year” in your 35 years of earnings, your AIME will certainly decrease. But if you’re already in the 0% or 15% section of the PIA graph, it might have only a tiny effect on your PIA. It’ll have a huge effect if you’re in the 90% section.
Bob had his final ~$1700 of AIME in the 15% section of the PIA graph. I ran a quick test and turned his 35th year into a zero. His AIME dropped from $8717 to $8487 – a $230 drop. His PIA dropped from $3192 per month to $3157 – a $35 drop. $35, you might guess, is 15% of $230.
PIA is Bob’s benefit if collects at “full retirement age.” But what if he collects early?
Social Security uses a concept called “full retirement age” (FRA) to determine how much of your eligible benefit you get to collect. Your personal FRA depends on the year you were born. The chart below shows the details:
FRA is either 66 or 67 years old for today’s new retirees. You can start collecting Social Security benefits before your FRA, but there’s a price to pay. Your benefits will be permanently reduced. But by postponing your benefits until after your FRA, your benefits will be permanently increased. The two charts below show both sides of that coin for both age 67 FRA retirees and age 66 FRA retirees.
Let’s do a quick decoder to make sure you understand how this all fits together.
If Bob was born in 1962 (and therefore is 62 years old today), he could start collecting Social Security right now. His FRA (based on his birth year) is 67, so we’ll consult the blue section of the table above. By collecting at age 62, Bob will only receive 70% of his full benefit. His PIA was $3192 per month; Bob would only collect 70% of that, or $2234 per month.
If Bob waits to collect, a few things will happen.
First, the AIME math and the PIA bends will likely change to account for inflation and other factors. On net, this will increase Bob’s PIA.
Second, Bob’s postponed filing age will increase his benefit amount, per the blue table above. If Bob waits until age 70, he’ll receive 124% of his PIA.
This begs a question: should Bob collect early to get those extra years of income, though at a discounted benefit? Or collect later, for fewer years, but at a much higher rate? When is the breakeven point?
When is the breakeven point for collecting Social Security? I looked at retirees with FRA = 67 years old. Here’s my Google sheet if you want to play around with it yourself.
With the bare eye, you can see the breakevens occur in the upper 70s. The joke in financial planning is, “Tell me when you’ll die, and I’ll tell you when to start collecting Social Security.” But the rough outline is:
But there’s much more to consider than “how long will you live?”
So let’s get to the real meat of the article: what are some applicable thought processes, strategies, and if –> then scenarios to guide you and your family in Social Security decisions?
As Annie Duke says (and I love to repeat), two things determine outcomes in our life:
Or, put another way, there are things in your control and things out of your control.
Whatever decision you make regarding Social Security, you must accept that luck might strike, and your decision won’t have been the optimum one. It’s not because of the quality of your decisions. It’s because of luck. (This is “results-oriented thinking,” a bias worth breaking.)
This is close to a one-way gate.
Once you start collecting Social Security, you do have up to 12 months to 1) change your mind and 2) repay any benefits you’ve received so far. You get one of these “withdrawals” in your lifetime.
Once you delay collecting, though, you can’t go back in time and reclaim those missed benefits.
Ideally, you want to get this decision right.
The most common questions surrounding Social Security revolve around your personal health and family history. We’ve determined that ages in the late 70s to early 80s are the “break even” point. You should ask: does anything in your personal or family history point you toward an early or late death?
If you’re healthy and all your relatives live to 100, it’s reasonable to assume you could have a similar fate. Postponing Social Security as long as possible (age 70) makes sense.
If you’re chronically ill, your relatives have all passed away early, etc., again, you can reasonably assume you could have a similar fate. Collecting Social Security as early as possible would make sense.
Granted, I’m not a doctor. One health phrase worth remembering is, “Genetics loads the gun, environment pulls the trigger.” In other words, you aren’t condemned to your family history. You have dials to control. Don’t forget that.
Do you need to take Social Security early? Will that extra income bridge the gap between cat food and a normal human diet? Because if you don’t need Social Security, why take it early?
Delaying your Social Security will act as “longevity insurance,” protecting against the risk that you will live to 90, 95, or beyond. The longer you wait, the higher your benefit will be, and the better your long-term outcomes will be.
Are you planning to work while also collecting Social Security? Tread carefully! Your work income will actively eat away at your Social Security benefits.
Bob, for example, who is age 62, can only earn $22,320 in ordinary income before he hits trouble. For every $2.00 he earns above that limit, $1.00 will be deducted from his annual Social Security benefit. If Bob earns $125,000 (like he did last year) while also collecting Social Security at age 62, he effectively receives $0.00 in Social Security benefits while being permanently hamstrung by his choice to collect early. Ouch.
That specific income limit increases to $59,520 during the year someone reaches their FRA, and the penalty ratio “lessens” to 3-to-1. The penalty disappears altogether once the FRA has been reached.
There’s always a corner case, so making a concrete rule about working while collecting is hard. That said, it’s like going into credit card debt. You really want to avoid it if you can. You really want to avoid starting Social Security benefits before full retirement age if you plan on working.
Spousal benefits are one of the many rabbit holes in Social Security planning. There are many paths, they go deep, and it’s easy to get lost. Trust me, Alice.
The upshot for basic Social Security planning is that your decision to collect Social Security not only affects you, but could affect your current spouse, your ex-spouse, and/or your future spouse or future widow.
Remember Bob? His PIA is $3192 per month. Bob is married to Sharon. Her PIA is $1200 per month. Let’s say they both opt to start collecting at FRA, and thus collect exactly 100% of their PIA each.
Sharon also gets to collect a spousal benefit. If she applies for a spousal benefit when she hits her FRA, she is eligible for 50% of Bob’s PIA (or $1596 per month). She’ll collect her $1200 benefit and then an additional $396 per month.
But if Sharon had applied for the spousal benefit at age 62, she’d only be eligible for ~35% of Bob’s PIA, or $1117 per month. Since this number is lower than her own benefit of $1200, Sharon will get no extra spousal benefit.
Now, what if Bob dies?
Bob’s decision doesn’t only affect his benefits. It also affects Sharon, assuming she outlives him.
Some rules of thumb when it comes to spousal benefits:
How does Social Security fit into your total financial plan? Especially in the early years of retirement, where you’re most at risk for a sequence of returns disaster?
“Sequence of returns risk” refers to the potential that a poor-performing portfolio early in your retirement will cascade into long-term pain. If your assets are worth less early on, you’ll be forced to sell more of them than you anticipated. This leaves fewer assets in your portfolio to grow for the long run.
One way to mitigate this risk is to find alternate sources of retirement income. Social Security, perhaps?! If early Social Security is a vital part of your overall plan’s success, the failure risk introduced from delaying Social Security could be too great to bear.
Social Security is taxable (for many retirees). It’s worth considering if your decision to collect Social Security will have taxation impacts and what your net-of-tax benefits are.
While every retirement is a unique adventure, these adventures often rhyme. Your trusted advisor(s) might have seen dozens or hundreds of successful retirements before, all of which rhyme with your plan.
Their counsel might sway you in an optimal direction.
Are you ready for Social Security? It’s not an easy question to answer.
Hopefully, I’ve answered more questions today than created new ones. Still, don’t hesitate to reach out with any questions or concerns.
Thank you for reading! If you enjoyed this article, join 8000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
Looking for a great personal finance book, podcast, or other recommendation? Check out my favorites.
Was this post worth sharing? Click the buttons below to share!
Source: bestinterest.blog
Textiles are at the heart of home furnishings, serving a dual purpose of functionality and fashion as the choice of fabric significantly influences a space, elevating aesthetics and functionality. From robust upholstery fabrics designed for durability to opulent drapery that exudes luxury, textiles can change how a house looks and feels.
In an interview with HT Lifestyle, Saba Kapoor, Co-Founder of Nivasa, advised, “Go for special braids and weaves, showcasing artisanal craftsmanship to elevate interiors. Apart from their practical functions, textiles act as a medium for personal expression, mirroring the homeowner’s individuality and setting the overall ambiance of the space. They have the unique ability to celebrate cultural heritage by incorporating traditional patterns or showcasing expert craftsmanship.”
She further recommended, “Opt for upholstery fabrics that boast dust-proof and spill-resistant properties, ensuring furniture stays pristine with minimal upkeep. This practicality enhances the longevity of furnishings while maintaining aesthetic appeal. Be it elegant throws, rugs or curtains, textiles play a multifaceted role in transforming a house into a home thereby enhancing the functionality and style. More often than not, textiles also also resonate with the individuality and cultural identity of its inhabitants, making the living space truly personal and inviting.”
Bringing his expertise to the same, Sachin Chauhan, Director at Dialogues by Nirmals, said, “Textiles are a way of transforming functionality to become a prominent element in home furnishing fashion. The exploration of this evolution bridges functionality and aesthetics seamlessly. The intrinsic role textiles play in elevating home décor is adding a statement look to any space. As textiles evolve, homeowners and stylists are seeking to incorporate innovative textures, patterns, and materials, turning everyday items into expressions of personal style.”
He concluded, “Textile pieces not only contribute to the overall aesthetic of living space but transform it into a curated and fashionable haven. From luxurious drapes to intricately designed cushions, the broad category of textiles is stealing the spotlight by becoming the ultimate functional source of adding interesting decor and fashion.”
Source: hindustantimes.com
With its cobblestone streets, historic architecture, and vibrant arts scene, Providence, RI offers a unique blend of old-world charm and contemporary allure. From strolling along the scenic Waterplace Park to indulging in the city’s renowned culinary delights, there’s something for everyone. Considered one of the most livable cities in the United States, the city provides a welcoming and diverse community for residents to call home. So whether you’re searching for the perfect apartment in Providence or eyeing a charming rental home in one of the city’s historic neighborhoods, you’ve come to the right place.
In this Apartment Guide article, we’ll cut to the chase, breaking down the pros and cons of moving to Providence. Let’s get started and see what awaits in this dynamic city.
Providence has a rich cultural heritage that is evident in its diverse neighborhoods and thriving arts scene. From the historic architecture of Benefit Street to the eclectic galleries of the West Side, residents can immerse themselves in the city’s artistic and cultural offerings. The renowned Rhode Island School of Design (RISD) and the Providence Performing Arts Center further contribute to the city’s creative atmosphere, making it a haven for artists and art enthusiasts alike.
Providence is a food lover’s paradise, with an outstanding culinary scene that offers a diverse range of dining experiences. From award-winning restaurants like Al Forno and Oberlin to the bustling food markets at Federal Hill, residents can indulge in a variety of cuisines and flavors. Annual food festivals, such as the Charlestown Seafood Festival just outside of Providence in Charlestown, RI further showcase its culinary prowess, making it a haven for foodies.
Providence is home to several prestigious institutions, including Brown University and Johnson & Wales University, providing residents with access to top-tier education and research opportunities. The city’s intellectual atmosphere and proximity to renowned libraries and museums make it an ideal location for lifelong learners and academics.
Providence’s picturesque waterfront offers residents a serene escape from the urban hustle and bustle. The Waterplace Park and Riverwalk provide stunning views of the city skyline and host events like the WaterFire art installation, creating a scenic environment for relaxation, entertainment, and recreation.
Providence prides itself on its strong sense of community, with numerous neighborhood associations and community initiatives that foster a spirit of togetherness and belonging. Residents can participate in local events, volunteer opportunities, and grassroots movements, creating a close-knit and supportive environment.
Despite being a bustling city, Providence offers easy access to nature, with nearby parks, nature reserves, and hiking trails. Residents can escape to places like Roger Williams Park or the Blackstone River Bikeway to enjoy outdoor activities and connect with the natural beauty of the region.
Providence offers a relatively affordable cost of living compared to other major cities in New England, making it an attractive option for those seeking to live on the East Coast. The average rent for a 2 bedroom apartment in Providence is $2,225, much less than rents in nearby Boston ($5,288) or New Haven ($3,200).
With an average of over 30 inches of snow a year, Providence experiences harsh winters with heavy snowfall and cold temperatures. The winter months can bring about travel disruptions and outdoor inconveniences, which can be challenging for residents who are not accustomed to such weather conditions.
Providence’s job market may be limited in certain industries, which can pose challenges for professionals seeking specific career opportunities. While the city offers diverse employment sectors, some residents may find it necessary to explore job prospects in neighboring cities or regions to fulfill their career aspirations.
Providence’s aging infrastructure may present maintenance and upkeep challenges, leading to occasional inconveniences and disruptions for residents. The city’s historic buildings and infrastructure require ongoing attention and investment to ensure their longevity and functionality, which can impact the overall quality of life for residents.
Providence experiences humid summers, with high temperatures and humidity levels that can be uncomfortable for some residents. The summer months may require individuals to adapt to the heat and humidity, seeking ways to stay cool and comfortable during the warmer seasons.